UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21153
---------------------
Nuveen Maryland Dividend Advantage Municipal Fund 3
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: May 31
------------------
Date of reporting period: November 30, 2006
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT November 30, 2006
Nuveen Investments
Municipal Closed-End Funds
NUVEEN MARYLAND
PREMIUM INCOME
MUNICIPAL FUND
NMY
NUVEEN MARYLAND
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NFM
NUVEEN MARYLAND
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NZR
NUVEEN MARYLAND
DIVIDEND ADVANTAGE
MUNICIPAL FUND 3
NWI
NUVEEN VIRGINIA
PREMIUM INCOME
MUNICIPAL FUND
NPV
NUVEEN VIRGINIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NGB
NUVEEN VIRGINIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NNB
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six-month period covered
by this report your Fund continued to provide you with attractive monthly
tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well balanced investment portfolio.
In addition to providing attractive tax-free monthly income, a municipal
bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with investing.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the Internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues to
be to assist you and your financial advisor by offering investment services
and products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
January 15, 2007
Nuveen Investments Maryland and Virginia Municipal Closed-End Funds
NMY, NFM, NZR, NWI, NPV, NGB, NNB
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves discusses key investment strategies and the
six-month performance of these seven Funds. Cathryn, who joined Nuveen in 1996,
assumed portfolio management responsibility for the Maryland and Virginia Funds
in July 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
As the yield curve flattened during this six-month period, we continued to
emphasize careful management of the Funds' underlying portfolios in line with
our established targets. This included a disciplined approach to duration1
management and yield curve positioning. In selecting new additions for our
portfolios, our purchase activity focused mainly on attractively priced bonds in
the longer range of the yield curve. We believed that bonds in this part of the
curve generally offered better value and reward opportunities more commensurate
with their risk levels. To help us maintain the Funds' durations within our
preferred strategic range, we were also selectively selling holdings with
shorter durations.
In all of the Maryland Funds, we used inverse floaters, a type of derivative
financial instrument, to lengthen their durations. Our objective was to manage
the durations (and price sensitivity) of these Funds without having a negative
impact on their income streams or common share dividends over the short term. In
addition, NWI, whose duration was on the longer end of our target range used a
forward swap to shorten the duration.
In the Maryland Funds, we purchased single family housing bonds, which we
thought generally had good supply and attractive prices. At the same time, we
continued to maintain the Funds' weightings of lower-quality bonds. While these
types of bonds performed well over this period, we generally found fewer
attractive lower quality opportunities in the market place.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
4
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen Maryland and Virginia Funds, as well as
relevant benchmark and peer group information, are presented in the accompanying
table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 11/30/06
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
MARYLAND FUNDS
--------------------------------------------------------------------------------
NMY 6.28% 7.98% 7.46% 6.62%
--------------------------------------------------------------------------------
NFM 6.10% 7.97% 7.28% NA
--------------------------------------------------------------------------------
NZR 5.93% 7.23% 7.54% NA
--------------------------------------------------------------------------------
NWI 6.23% 8.05% NA NA
--------------------------------------------------------------------------------
VIRGINIA FUNDS
--------------------------------------------------------------------------------
NPV 5.60% 6.95% 6.92% 6.77%
--------------------------------------------------------------------------------
NGB 5.79% 7.41% 7.87% NA
--------------------------------------------------------------------------------
NNB 5.73% 7.43% 7.82% NA
--------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index2 4.53% 6.12% 5.40% 5.75%
--------------------------------------------------------------------------------
Lipper Other States
Municipal Debt Funds Average3 5.93% 7.95% 7.29% 6.59%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one, five and ten years are
annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended November 30, 2006, the total return on NAV for all the
Funds exceeded the average return for the Lehman Brothers Municipal Bond Index.
NMY, NFM, NWI outperformed the Lipper Other States peer group, NZR matched while
the rest of the Funds trailed this group average. Shareholders should note that
the performance of the Lipper Other States category represents the overall
average of returns for funds from 10 different states with a wide variety of
municipal market conditions, making direct comparisons less meaningful.
2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment- grade municipal
bonds. Results for the Lehman indexes do not reflect any expenses.
3 The Lipper Other States Municipal Debt Funds category average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 1 year, 46; 5 years, 27; and 10 years, 18. Fund and Lipper
returns assume reinvestment of dividends.
5
As the yield curve continued to flatten over the course of this period, bonds
with shorter durations and maturities generally underperformed longer term
bonds. As a result, the Funds generally benefited over the six months from their
yield curve positioning. The Funds had limited exposure to the shortest
maturities, which was a positive, and generally had an emphasis on intermediate
duration bonds, which was also favorable. On the other hand, the Funds had
limited exposure to the very longest part of the yield curve, which had a slight
countervailing negative impact on their six-month performance.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, all of these Funds benefited from
their allocations of lower-quality credits. The performance of this sector was
largely the result of investor demand for the higher yields typically associated
with lower-quality bonds, which drove up their value. As noted, we continued to
maintain the Funds' weightings of lower-quality bonds, with allocations to BBB,
lower rated bonds and non-rated bonds ranging from 11% in NPV, 16% in NMY, 17%
in NNB, 18% in NZR, 19% in NGB, 20% in NFM and 21% in NWI.
Another factor in the six-month performance of these Funds, especially relative
to that of the unleveraged Lehman Brothers Municipal Bond Index, was their use
of financial leverage. While leveraging can add volatility to a Fund's NAV and
share price, this strategy can also provide opportunities for additional income
and total return for common shareholders. The Funds' leveraging strategy
positively impacted their results over this period, although not to the same
extent as in the past.
6
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AS OF NOVEMBER 30,
2006?
We continued to believe that maintaining overall strong credit quality was an
important technique. As of November 30, 2006, all seven of these Funds continued
to offer excellent overall credit quality, with allocations of bonds rated
AAA/U.S. guaranteed AA ranging from 65% in NFM, 72% in NWI, 73% in NZR, 75% in
NGB, 76% in NMY, 77% in NNB and 84% in NPV.
7
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. While the
Fund's leveraging strategy continued to produce incremental income, the extent
of this benefit was reduced during this period as short-term interest rates
rose, causing the Funds' borrowing costs to rise, reducing some of the benefits
of leveraging. The Funds' income streams were also impacted as the proceeds from
older, higher-yielding bonds that matured or were called were reinvested into
bonds generally offering lower yields, especially in the older Funds. These
factors resulted in one monthly dividend reduction in NMY, NFM and NGB over the
six-month period ended November 30, 2006. NZR, NWI, NPV and NNB had no changes
to their dividends.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of November 30, 2006, NMY,
NZR, NPV, NGB and NNB had positive UNII balances for financial statement
purposes and positive UNII balances, based on our best estimates, for tax
purposes. NFM and NWI had negative UNII balances for financial statement
purposes and positive UNII balances, based on our best estimates, for tax
purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
11/30/06 12-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NMY -2.59% -0.09%
--------------------------------------------------------------------------------
NFM 4.71% 7.36%
--------------------------------------------------------------------------------
NZR 5.64% 5.51%
--------------------------------------------------------------------------------
NWI -2.62% -2.81%
--------------------------------------------------------------------------------
NPV -0.39% 1.59%
--------------------------------------------------------------------------------
NGB 14.91% 11.71%
--------------------------------------------------------------------------------
NNB 5.23% 7.36%
--------------------------------------------------------------------------------
8
Nuveen Maryland Premium Income Municipal Fund
NMY
Performance
OVERVIEW As of November 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 50%
AA 26%
A 8%
BBB 9%
BB or Lower 5%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.062
Jan 0.062
Feb 0.062
Mar 0.062
Apr 0.062
May 0.062
Jun 0.058
Jul 0.058
Aug 0.058
Sep 0.055
Oct 0.055
Nov 0.055
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/01/05 14.4
14.25
14.01
14
14.07
13.96
13.93
13.96
13.75
13.73
13.88
13.94
13.9599
13.8
13.77
13.84
13.95
13.98
14.09
14.11
14.18
14.18
14.16
14.25
14.35
14.48
14.46
14.63
14.7
14.73
14.97
14.74
14.72
14.96
14.96
14.9
15.26
15.1
14.99
14.83
15.05
15.04
15.09
15
14.88
14.9
14.85
14.85
14.91
14.83
14.6799
14.62
14.6
14.61
14.64
14.51
14.65
14.63
14.78
14.76
14.8
14.98
15.05
14.98
15.01
15.1
14.96
14.97
15
15
15.09
14.98
15.16
15.16
15.15
15.21
15.16
15.21
15.29
15.28
15.21
15.27
15.12
15.22
15.24
15.25
15.22
15.2
14.91
14.83
14.71
14.6801
14.95
15
14.85
14.85
14.71
14.8899
14.88
14.81
14.78
14.86
14.9499
14.9499
14.76
14.7501
14.5
14.6799
14.67
14.62
14.52
14.52
14.53
14.54
14.65
14.65
14.67
14.59
14.56
14.6
14.54
14.57
14.5701
14.47
14.42
14.52
14.57
14.6
14.48
14.6001
14.46
14.51
14.56
14.5
14.45
14.28
14.34
14.24
14.2
14.25
14.3
14.38
14.39
14.29
14.41
14.2
14.4
14.65
14.6
14.5
14.5
14.42
14.34
14.38
14.38
14.31
14.22
14.29
14.24
14.2
14.19
14.15
14.32
14.28
14.27
14.3
14.45
14.44
14.6
14.9
14.81
14.76
14.72
14.84
14.7301
14.82
14.65
14.7
14.68
14.72
14.67
14.73
14.8499
14.85
14.86
14.9025
14.9
14.88
14.91
14.93
15.11
14.92
15.1
14.91
14.82
14.69
14.66
14.75
14.78
14.8
14.78
14.65
14.67
14.59
14.6
14.74
14.74
14.58
14.75
14.66
14.61
14.61
14.6
14.68
14.64
14.6
14.64
14.58
14.4
14.33
14.38
14.31
14.34
14.5
14.41
14.42
14.31
14.31
14.29
14.32
14.44
14.47
14.4
14.39
14.6
14.66
14.61
14.63
14.63
14.6
14.59
14.66
14.58
14.5
14.5
14.56
14.59
14.63
14.53
14.6
14.7
14.63
14.61
14.6
11/30/06 14.64
FUND SNAPSHOT
------------------------------------
Common Share Price $14.64
------------------------------------
Common Share
Net Asset Value $15.03
------------------------------------
Premium/(Discount) to NAV -2.59%
------------------------------------
Market Yield 4.51%
------------------------------------
Taxable-Equivalent Yield1 6.58%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $159,856
------------------------------------
Average Effective Maturity
on Securities (Years) 16.01
------------------------------------
Leverage-Adjusted Duration 8.21
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.18% 6.28%
------------------------------------
1-Year 6.54% 7.98%
------------------------------------
5-Year 4.37% 7.46%
------------------------------------
10-Year 6.63% 6.62%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.2%
------------------------------------
Health Care 16.7%
------------------------------------
Education and Civic
Organizations 14.8%
------------------------------------
U.S. Guaranteed 13.5%
------------------------------------
Tax Obligation/Limited 11.7%
------------------------------------
Housing/Multifamily 9.0%
------------------------------------
Other 11.1%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0314 per share.
9
Nuveen Maryland Dividend Advantage Municipal Fund
NFM
Performance
OVERVIEW As of November 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 45%
AA 20%
A 15%
BBB 13%
BB or Lower 2%
N/R 5%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec .0715
Jan .0715
Feb .0715
Mar .068
Apr .068
May .068
Jun .0645
Jul .0645
Aug .0645
Sep .0615
Oct .0615
Nov .0615
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/01/05 15
14.93
14.8
14.7
14.92
14.92
14.85
14.71
14.75
14.7
14.6901
14.6901
14.85
15.14
15.5
15.16
15
15.2799
15.42
15.5
15.25
15.25
15.17
15.7
15.65
15.7
15.78
15.85
15.73
15.9
16
15.95
15.75
16.1
15.95
16.04
15.95
15.9
15.8501
16.17
16.5
16.49
16.45
16.42
16.39
16.5
16.35
16.4999
16.77
16.7
16.7001
16.77
16.99
16.73
16.67
16.69
16.8
16.72
16.75
16.72
17
16.86
17
16.67
16.67
16.55
16.6
16.6
16.73
16.85
16.8
16.8
16.87
17.0899
16.6
16.35
16.15
16.15
16.05
16.3
16.36
16.36
16.25
16.05
16.05
16.15
16.2
15.9
15.9
15.65
15.6
15.7
15.65
15.9
15.95
15.95
15.65
16
15.9
15.75
15.8
15.81
15.83
15.83
15.8199
15.83
15.75
15.9
15.85
15.95
15.98
15.9
15.5
15.46
15.35
15.29
15.39
15.26
15.33
15.33
15.23
15.2
15.33
15.21
15.27
15.19
15.44
15.52
15.45
15.4501
15.21
15.1
15.19
15.25
15.27
15.18
15.35
15.2
15.33
15.36
15.43
15.3801
15.3801
15.5
15.39
15.69
15.69
15.7
15.94
15.89
15.89
15.91
16.03
16.02
16.02
15.8
15.6
15.6
15.5
15.65
15.55
15.62
15.71
15.58
15.58
15.65
15.61
15.61
15.75
15.84
15.79
15.8
15.6
15.6
15.62
15.7
15.62
15.48
15.85
15.85
15.7
15.5
15.48
15.55
15.79
15.89
15.88
15.88
15.99
16.08
15.95
16.2
16.15
16.1
16.18
16.13
16.15
16.1
15.9
15.92
15.92
15.99
15.99
16.1
16.1
16.15
15.9616
15.8
15.62
15.91
15.85
15.85
15.89
15.9
15.8
15.75
15.79
15.6
15.494
15.45
15.47
15.47
15.47
15.52
15.52
15.56
15.56
15.54
15.6
15.6
15.68
15.6207
15.73
15.72
15.72
15.6875
15.73
15.66
15.75
15.84
15.66
15.55
15.65
15.66
15.71
15.71
15.78
15.88
15.66
15.56
15.59
15.6
15.6
15.6
11/30/06 15.78
FUND SNAPSHOT
------------------------------------
Common Share Price $15.78
------------------------------------
Common Share
Net Asset Value $15.07
------------------------------------
Premium/(Discount) to NAV 4.71%
------------------------------------
Market Yield 4.68%
------------------------------------
Taxable-Equivalent Yield1 6.83%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $62,925
------------------------------------
Average Effective Maturity
on Securities (Years) 18.49
------------------------------------
Leverage-Adjusted Duration 7.21
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/23/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 6.38% 6.10%
------------------------------------
1-Year 12.31% 7.97%
------------------------------------
5-Year 6.44% 7.28%
------------------------------------
Since
Inception 6.49% 6.88%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 20.4%
------------------------------------
Tax Obligation/General 17.1%
------------------------------------
U.S. Guaranteed 16.3%
------------------------------------
Housing/Multifamily 12.6%
------------------------------------
Tax Obligation/Limited 10.9%
------------------------------------
Education and Civic
Organizations 10.3%
------------------------------------
Other 12.4%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
10
Nuveen Maryland Dividend Advantage Municipal Fund 2
NZR
Performance
OVERVIEW As of November 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 47%
AA 26%
A 9%
BBB 10%
BB or Lower 3%
N/R 5%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0695
Jan 0.0695
Feb 0.0695
Mar 0.066
Apr 0.066
May 0.066
Jun 0.064
Jul 0.064
Aug 0.064
Sep 0.064
Oct 0.064
Nov 0.064
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/01/05 15.97
15.63
15.68
15.51
15.65
15.53
15.52
15.59
15.66
16
16.05
16.0601
16.05
16.05
16.3
16.24
16.08
16.34
16.37
16.22
16.33
16.33
16.38
16.19
16.28
16.42
16.42
16.55
16.55
16.5
16.5
16.3336
16.5
16.23
16.14
16.21
16.15
16.05
16.15
15.95
16.2
16.05
16.5
16.6
16.48
16.5
16.15
16.45
16.8
16.5
16.311
16.43
16.6
16.69
16.52
16.42
16.35
16.15
16.25
16.2
16.39
16.65
16.8
16.67
16.3
16.3
16.3
16.05
15.92
15.9
16.2
16.05
15.84
15.84
15.65
15.4
15.2
15.2
14.95
14.99
15.03
14.93
14.92
15.05
15.28
15.15
15.12
15.3
15.12
15.3
15.13
15.4
15.38
15.41
15.36
15.26
14.95
15
15.03
15.23
15.05
14.9
15.15
15.15
14.9499
14.9799
14.7
14.88
14.9
15
15.12
15.17
15.23
15.2001
15.15
15
14.97
15.02
14.95
15.05
14.95
14.98
14.94
14.9
14.98
14.76
15.02
15.15
15
15
14.9
14.99
15.07
14.87
14.9
15.02
15.45
15.35
15.25
15.05
14.9301
14.8
15.04
15.25
15.39
15.65
15.6
15.8
16.3
16.15
16.14
16.14
16.17
16.16
16.11
15.99
15.95
15.87
15.6
15.56
15.56
15.62
15.89
15.85
15.85
15.66
15.66
15.52
15.52
15.73
15.75
15.7801
15.8
15.83
15.8
15.8
15.63
15.7376
15.73
15.7
15.65
15.6
15.6
15.78
15.62
15.68
15.9
15.85
15.7136
15.8
15.8
15.85
15.89
15.68
15.67
15.72
15.82
15.72
15.72
15.85
15.8
15.6
15.62
15.6
15.65
15.92
15.95
15.96
15.95
16.04
16.13
16.13
16.15
16.25
15.82
15.6
15.76
15.79
15.7
15.64
15.72
15.74
15.79
15.65
15.65
15.8
15.83
15.43
15.48
15.55
15.7
15.7
15.89
16.06
16.15
16.28
16.15
16.46
16.3
16.35
16.16
16.32
16.32
16.22
16.15
16.02
15.9
15.83
16.03
15.91
15.8
15.71
15.75
16
11/30/06 16.1
FUND SNAPSHOT
------------------------------------
Common Share Price $16.10
------------------------------------
Common Share
Net Asset Value $15.24
------------------------------------
Premium/(Discount) to NAV 5.64%
------------------------------------
Market Yield 4.77%
------------------------------------
Taxable-Equivalent Yield1 6.96%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $63,790
------------------------------------
Average Effective Maturity
on Securities (Years) 17.52
------------------------------------
Leverage-Adjusted Duration 7.64
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 11.72% 5.93%
------------------------------------
1-Year 7.81% 7.23%
------------------------------------
5-Year 7.17% 7.54%
------------------------------------
Since
Inception 7.08% 7.01%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.7%
------------------------------------
Health Care 16.1%
------------------------------------
U.S. Guaranteed 15.0%
------------------------------------
Education and Civic
Organizations 13.6%
------------------------------------
Tax Obligation/Limited 11.2%
------------------------------------
Housing/Multifamily 6.3%
------------------------------------
Other 14.1%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0276 per share.
11
Nuveen Maryland Dividend Advantage Municipal Fund 3
NWI
Performance
OVERVIEW As of November 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 40%
AA 32%
A 7%
BBB 13%
BB or Lower 3%
N/R 5%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0595
Jan 0.0595
Feb 0.0595
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0555
Jul 0.0555
Aug 0.0555
Sep 0.0555
Oct 0.0555
Nov 0.0555
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/01/05 13.84
14.01
13.84
13.85
14.05
14.15
14.11
13.75
13.6
13.55
13.59
13.56
13.56
13.57
13.7
13.73
13.76
13.7901
13.979
14
14.35
14.35
14.34
14.11
14.2
14.29
14.1
14.27
14.2
14.31
14.35
14.1901
14.09
14.19
14.35
14.3
14.18
14.35
14.62
14.39
14.53
14.45
14.34
14.29
14.27
14.22
14.19
14.15
14.13
14.24
14.43
14.5799
14.24
14.45
14.56
14.39
14.65
14.34
14.65
14.55
14.6
14.35
14.36
13.98
14
14.2001
14.51
14.4
14.15
14.38
14.54
14.51
14.65
14.4
14.4
14.04
14.01
14.02
14
14.07
14
14.04
13.96
14.0699
14
14.08
14.55
14.38
14.08
13.99
13.9
13.9
14.1
14.2
14.2
14.25
14.3
14.3
14.24
14.1101
13.98
14.14
14.4
14.4
14.4
13.98
14
13.95
13.95
13.93
13.93
13.98
13.98
13.91
13.8
14
13.82
13.7
13.7
13.7
13.64
13.76
13.78
13.81
13.77
13.8501
14.04
14.13
14.16
14.01
13.92
13.86
13.8701
13.86
13.65
13.52
13.48
13.45
13.5
13.46
13.39
13.27
13.37
13.37
13.39
13.3
13.43
13.4
13.51
13.53
13.5
13.63
13.67
13.54
13.5
13.51
13.5
13.4501
13.23
13.46
13.35
13.44
13.66
13.7
13.69
13.65
13.8
13.78
13.99
14
14
13.98
13.89
14.02
13.9501
13.9
13.8401
13.74
13.79
13.89
13.99
14.05
14.1
14.05
13.95
13.85
14
13.89
13.89
14.11
14.35
14.31
14.15
13.97
14.24
13.92
13.89
14.08
14.17
14.15
14.22
14.14
14.03
14
13.96
14.066
14.07
14.19
14.24
14.25
14.32
14.32
14.39
14.38
14.38
14.26
14.3
14.25
14.33
14.38
14.5
14.5
14.31
14.31
14.16
14.15
14.1
14.34
14.44
14.38
14.34
14.56
14.55
14.55
14.55
14.46
14.45
14.66
14.45
14.55
14.8
14.59
14.53
14.51
14.8
14.64
14.64
14.58
14.46
14.44
14.48
14.5
14.4401
14.48
11/30/06 14.49
FUND SNAPSHOT
------------------------------------
Common Share Price $14.49
------------------------------------
Common Share
Net Asset Value $14.88
------------------------------------
Premium/(Discount) to NAV -2.62%
------------------------------------
Market Yield 4.60%
------------------------------------
Taxable-Equivalent Yield1 6.72%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $79,744
------------------------------------
Average Effective Maturity
on Securities (Years) 17.60
------------------------------------
Leverage-Adjusted Duration 8.20
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 7.10% 6.23%
------------------------------------
1-Year 8.80% 8.05%
------------------------------------
Since
Inception 4.45% 6.17%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 21.1%
------------------------------------
Tax Obligation/General 15.6%
------------------------------------
Health Care 14.5%
------------------------------------
U.S. Guaranteed 13.3%
------------------------------------
Education and Civic
Organizations 10.5%
------------------------------------
Housing/Multifamily 9.8%
------------------------------------
Utilities 4.7%
------------------------------------
Other 10.5%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
12
Nuveen Virginia Premium Income Municipal Fund
NPV
Performance
OVERVIEW As of November 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 55%
AA 29%
A 5%
BBB 7%
BB or Lower 1%
N/R 3%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0655
Jan 0.0655
Feb 0.0655
Mar 0.062
Apr 0.062
May 0.062
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.059
Oct 0.059
Nov 0.059
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/01/05 16.28
16.34
16.34
16.29
16.06
16.09
16.01
16.17
15.8
15.65
15.82
15.76
15.54
15.22
15.22
15.26
15.37
15.75
15.8
15.9
15.97
15.97
15.98
16.18
15.93
15.85
16.14
16.09
15.6
15.7499
15.76
15.78
15.79
16.05
16
15.85
16.1
16.27
16.4
16.5
16.1
15.9
15.8
15.76
15.61
15.51
15.57
15.55
15.71
15.75
15.76
15.95
16.08
16.11
15.66
15.86
15.76
15.95
16.18
16.15
16.4
16.5
16.3
15.8
15.83
15.72
15.4
15.45
15.75
15.75
16.15
16.19
16.18
16
15.85
16.14
15.54
15.5
15.5
15.41
15.5
15.41
15.41
15.44
15.27
15.5
15.55
15.48
15.19
15.35
15.1
14.95
15.05
14.9001
15.21
15.28
15.27
15.5
15.39
15.6
15.75
15.65
15.3
15.3
15.51
15.87
15.78
15.35
15.37
15.1
15.19
15.11
14.91
14.99
15.11
15.12
14.9
15.15
14.98
14.92
14.85
15.1
15.1
15.19
15.05
14.91
15
15
14.81
14.83
14.83
14.82
14.84
14.88
14.69
14.53
14.51
14.49
14.5
14.53
14.5
14.38
14.24
14.26
14.34
14.29
14.29
14.3
14.45
14.69
14.39
14.48
14.5
14.54
14.35
14.42
14.41
14.31
14.42
14.35
14.46
14.59
14.65
14.62
14.67
14.7399
14.7
14.8
15.02
14.97
14.8
14.94
14.96
15.07
14.968
14.926
14.9
15
14.92
14.82
14.99
14.82
14.78
14.82
14.8
14.8099
14.7101
14.76
14.84
14.88
14.84
14.91
14.89
14.8
14.7
14.89
14.89
14.9
14.94
14.9499
14.91
14.99
15.12
14.97
15.02
15.08
15.3001
15.47
15.36
15.5
15.51
15.51
15.49
15.56
15.5
15.53
15.47
15.52
15.52
15.5
15.5
15.29
15.58
15.41
15.47
15.3699
15.28
15.44
15.29
15.45
15.5
15.41
15.27
15.09
15.22
15.2
15.13
15.08
15.12
15.0801
15.05
15.14
15.1
15.16
15.16
15.21
15.19
15.16
15.13
15.2
15.2
15.12
15.2
15.15
11/30/06 15.3
FUND SNAPSHOT
------------------------------------
Common Share Price $15.30
------------------------------------
Common Share
Net Asset Value $15.36
------------------------------------
Premium/(Discount) to NAV -0.39%
------------------------------------
Market Yield 4.63%
------------------------------------
Taxable-Equivalent Yield1 6.81%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $136,964
------------------------------------
Average Effective Maturity
on Securities (Years) 14.71
------------------------------------
Leverage-Adjusted Duration 7.30
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.06% 5.60%
------------------------------------
1-Year 1.20% 6.95%
------------------------------------
5-Year 4.87% 6.92%
------------------------------------
10-Year 6.74% 6.77%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 19.6%
------------------------------------
Tax Obligation/General 18.0%
------------------------------------
U.S. Guaranteed 13.1%
------------------------------------
Health Care 11.6%
------------------------------------
Transportation 9.0%
------------------------------------
Utilities 7.9%
------------------------------------
Education and Civic
Organizations 4.8%
------------------------------------
Water and Sewer 4.6%
------------------------------------
Other 11.4%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2005 of
$0.2431 per share.
13
Nuveen Virginia Dividend Advantage Municipal Fund
NGB
Performance
OVERVIEW As of November 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 49%
AA 26%
A 6%
BBB 8%
BB or Lower 3%
N/R 8%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.072
Apr 0.072
May 0.072
Jun 0.0685
Jul 0.0685
Aug 0.0685
Sep 0.0655
Oct 0.0655
Nov 0.0655
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/01/05 15.8
16.27
16.26
16.55
16.05
15.9
15.98
15.95
15.79
16
15.9901
15.65
15.84
16.05
16.04
16
16
16
16.15
16.25
16.3
16.3
16.35
16.52
16.75
16.55
17
16.99
17
17
17
17.17
17.55
17.55
17.74
17.75
17.65
17.8801
17.86
17.95
18
18
17.92
17.35
17.2
17.1
17.41
17.45
17.4
17.11
17.3
17.3
17.3
17.339
16.83
16.73
16.69
16.95
17
17.3
17.3
17.25
17.45
17.19
17.19
17.19
17.24
17
17.01
17.05
17.29
17.29
17.4
17.5
17.6744
17.75
17.16
17.16
16.75
16.95
17.09
17.09
16.8
16.9
17.16
17.27
17.28
17.28
17.27
17.43
17.43
17.3
17.12
17.12
16.96
16.88
16.95
17.2
17.04
17.13
17.06
17.2
17.25
17.25
17.4
17.66
17.8
17.61
17.51
17.55
17.35
17.35
17.4
17.4
17.25
17.25
17.25
17.12
17.45
17.55
17.55
17.05
17.07
17.05
17.1
17.1
17.18
17.34
17.21
17.34
17.15
17.07
17.3
17.2
17.1
17.18
17.18
16.99
16.78
16.78
16.75
16.75
16.74
16.7
16.61
16.7
16.77
16.77
16.8
16.93
16.56
16.19
16.24
16.25
16.31
16.35
16.05
15.9
15.92
16.1
16.1
15.88
15.96
15.96
15.95
15.96
15.96
15.96
15.96
15.95
16
16.08
16.17
16.1
16.3
16.2
16.25
16.35
16.61
16.59
16.59
16.59
16.8
16.71
16.71
16.71
17
17
17.07
17.07
17.17
17.17
17.05
16.55
16.55
16.73
16.52
16.52
16.5
16.5
16.53
16.53
16.47
16.44
16.33
16.3999
16.28
16.3
16.39
16.5
16.7
16.7
16.76
16.7801
16.8
16.8012
16.75
16.75
16.8
16.8
16.8
16.65
16.65
16.6454
16.7093
16.7093
16.6
16.6
16.6
16.5611
16.52
16.63
16.5
16.51
16.54
16.8
16.75
16.75
16.8
16.8
16.8
16.75
16.75
16.75
16.55
16.68
16.62
16.69
16.75
16.79
16.84
16.93
17.45
17.4
11/30/06 17.65
FUND SNAPSHOT
------------------------------------
Common Share Price $17.65
------------------------------------
Common Share
Net Asset Value $15.36
------------------------------------
Premium/(Discount) to NAV 14.91%
------------------------------------
Market Yield 4.45%
------------------------------------
Taxable-Equivalent Yield1 6.54%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $48,052
------------------------------------
Average Effective Maturity
on Securities (Years) 16.47
------------------------------------
Leverage-Adjusted Duration 7.38
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.71% 5.79%
------------------------------------
1-Year 19.74% 7.41%
------------------------------------
5-Year 8.43% 7.87%
------------------------------------
Since
Inception 8.42% 7.27%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 19.4%
------------------------------------
Transportation 16.2%
------------------------------------
Tax Obligation/Limited 16.0%
------------------------------------
U.S. Guaranteed 11.3%
------------------------------------
Education and Civic
Organizations 8.1%
------------------------------------
Health Care 7.3%
------------------------------------
Long-Term Care 6.9%
------------------------------------
Other 14.8%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14
Nuveen Virginia Dividend Advantage Municipal Fund 2
NNB
Performance
OVERVIEW As of November 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 48%
AA 29%
A 6%
BBB 8%
BB or Lower 2%
N/R 7%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0715
Jan 0.0715
Feb 0.0715
Mar 0.068
Apr 0.068
May 0.068
Jun 0.065
Jul 0.065
Aug 0.065
Sep 0.065
Oct 0.065
Nov 0.065
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/01/05 16
16.14
16.46
16.5
16.44
16.6
16.62
16.55
16.5
16.5
16.26
16.09
16.09
16.25
16.26
16.39
16.39
16.6
16.63
16.65
16.64
16.64
16.95
17.4
17.25
16.9
17.07
17
16.9
16.81
16.8
16.8
16.85
16.7
16.9
16.8
17
17.01
16.9
16.89
16.89
17.15
17.3
17.27
16.9
17.15
17.35
17.37
17.11
17.25
17.05
17.05
17.05
17
17
17.05
16.91
16.95
17.15
17
16.91
16.85
16.55
16.4
16.4
16.6
16.45
16.49
16.94
16.94
17.09
17.09
17.11
16.75
16.46
16.55
16.11
16.12
16.5
16.49
16.46
16.75
16.65
16.85
16.75
17.04
17.04
17.04
17.18
16.88
16.6
16.21
16.201
16.182
16.05
16.02
16.1
16
15.75
15.91
15.94
15.94
15.97
15.97
15.95
16.1
16.15
16.3
16.15
16.22
16.45
16.35
16.45
16.4
16.42
16.21
16.3
16.38
16.1601
16.15
16.15
16.3
16.45
16.4
16.13
16.4
16.45
16.66
16.6
16.1
15.96
16.02
16
15.98
15.84
16
15.9401
15.9
15.95
15.85
15.8
15.5
15.7
15.79
15.6
15.73
15.85
15.76
15.94
16.15
16.11
16.05
15.9501
15.83
15.72
15.9
15.9
15.8
15.95
15.85
15.95
15.85
15.95
15.75
15.7
15.82
15.74
15.66
15.79
15.65
15.79
15.79
15.79
15.75
15.79
15.8
15.8399
15.8399
15.82
15.77
15.8
15.78
15.8
15.85
15.98
16.03
15.9301
15.99
16.06
16
16.0801
16.09
16.1
15.82
15.9
16.14
16.09
16
16
15.99
15.85
15.95
15.87
15.71
15.78
15.88
15.9
15.93
15.95
15.99
16.08
16.08
16.11
16.2
16.2
16.15
15.9713
15.94
15.97
15.9
15.94
15.85
15.8
15.84
15.85
15.88
15.87
15.85
15.7501
15.95
15.91
16.06
16.06
16.14
16.08
16.19
16.25
16.34
16.3
16.28
16.15
16.1
16.0101
16.19
16.35
16.28
16.26
16.3
16.53
16.45
16.41
16.25
16.36
16.16
11/30/06 16.29
FUND SNAPSHOT
------------------------------------
Common Share Price $16.29
------------------------------------
Common Share
Net Asset Value $15.48
------------------------------------
Premium/(Discount) to NAV 5.23%
------------------------------------
Market Yield 4.79%
------------------------------------
Taxable-Equivalent Yield1 7.04%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $88,611
------------------------------------
Average Effective Maturity
on Securities (Years) 16.61
------------------------------------
Leverage-Adjusted Duration 7.47
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.77% 5.73%
------------------------------------
1-Year 7.59% 7.43%
------------------------------------
5-Year 7.52% 7.82%
------------------------------------
Since
Inception 7.48% 7.69%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.0%
------------------------------------
Tax Obligation/Limited 13.8%
------------------------------------
Health Care 11.9%
------------------------------------
U.S. Guaranteed 11.5%
------------------------------------
Water and Sewer 10.3%
------------------------------------
Housing/Single Family 6.4%
------------------------------------
Long-Term Care 6.2%
------------------------------------
Education and Civic
Organizations 5.1%
------------------------------------
Other 11.8%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2005 of
$0.0666 per share.
15
Shareholder
MEETING REPORT
The shareholder meeting was held in the offices of
Nuveen Investments on November 14, 2006.
NMY NFM NZR
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 9,927,423 -- 3,999,696 -- 4,108,086 --
Withhold 115,361 -- 45,542 -- 34,707 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,042,784 -- 4,045,238 -- 4,142,793 --
====================================================================================================================================
Lawrence H. Brown
For 9,922,483 -- 3,998,526 -- 4,108,286 --
Withhold 120,301 -- 46,712 -- 34,507 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,042,784 -- 4,045,238 -- 4,142,793 --
====================================================================================================================================
Jack B. Evans
For 9,910,907 -- 3,996,507 -- 4,108,286 --
Withhold 131,877 -- 48,731 -- 34,507 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,042,784 -- 4,045,238 -- 4,142,793 --
====================================================================================================================================
William C. Hunter
For 9,923,082 -- 3,988,502 -- 4,108,086 --
Withhold 119,702 -- 56,736 -- 34,707 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,042,784 -- 4,045,238 -- 4,142,793 --
====================================================================================================================================
David J. Kundert
For 9,923,440 -- 3,997,007 -- 4,108,086 --
Withhold 119,344 -- 48,231 -- 34,707 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,042,784 -- 4,045,238 -- 4,142,793 --
====================================================================================================================================
William J. Schneider
For -- 3,106 -- 1,254 -- 1,261
Withhold -- -- -- 1 -- 8
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,106 -- 1,255 -- 1,269
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,106 -- 1,254 -- 1,261
Withhold -- -- -- 1 -- 8
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,106 -- 1,255 -- 1,269
====================================================================================================================================
Judith M. Stockdale
For 9,927,417 -- 3,999,196 -- 4,108,086 --
Withhold 115,367 -- 46,042 -- 34,707 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,042,784 -- 4,045,238 -- 4,142,793 --
====================================================================================================================================
Eugene S. Sunshine
For 9,912,244 -- 3,988,502 -- 4,108,086 --
Withhold 130,540 -- 56,736 -- 34,707 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,042,784 -- 4,045,238 -- 4,142,793 --
====================================================================================================================================
16
NWI NPV NGB
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 5,248,023 -- 7,792,179 -- 2,751,798 --
Withhold 35,764 -- 68,668 -- 23,463 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,283,787 -- 7,860,847 -- 2,775,261 --
====================================================================================================================================
Lawrence H. Brown
For 5,243,023 -- 7,782,045 -- 2,748,919 --
Withhold 40,764 -- 78,802 -- 26,342 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,283,787 -- 7,860,847 -- 2,775,261 --
====================================================================================================================================
Jack B. Evans
For 5,243,833 -- 7,793,413 -- 2,750,744 --
Withhold 39,954 -- 67,434 -- 24,517 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,283,787 -- 7,860,847 -- 2,775,261 --
====================================================================================================================================
William C. Hunter
For 5,250,033 -- 7,793,413 -- 2,750,744 --
Withhold 33,754 -- 67,434 -- 24,517 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,283,787 -- 7,860,847 -- 2,775,261 --
====================================================================================================================================
David J. Kundert
For 5,249,733 -- 7,795,467 -- 2,750,544 --
Withhold 34,054 -- 65,380 -- 24,717 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,283,787 -- 7,860,847 -- 2,775,261 --
====================================================================================================================================
William J. Schneider
For -- 1,536 -- 1,994 -- 774
Withhold -- -- -- 51 -- 40
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,536 -- 2,045 -- 814
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,536 -- 1,994 -- 774
Withhold -- -- -- 51 -- 40
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,536 -- 2,045 -- 814
====================================================================================================================================
Judith M. Stockdale
For 5,250,333 -- 7,797,467 -- 2,752,244 --
Withhold 33,454 -- 63,380 -- 23,017 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,283,787 -- 7,860,847 -- 2,775,261 --
====================================================================================================================================
Eugene S. Sunshine
For 5,248,533 -- 7,791,213 -- 2,750,544 --
Withhold 35,254 -- 69,634 -- 24,717 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,283,787 -- 7,860,847 -- 2,775,261 --
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NNB
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
====================================================================================================================================
Robert P. Bremner
For 5,184,088 --
Withhold 29,233 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,213,321 --
====================================================================================================================================
Lawrence H. Brown
For 5,175,343 --
Withhold 37,978 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,213,321 --
====================================================================================================================================
Jack B. Evans
For 5,180,368 --
Withhold 32,953 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,213,321 --
====================================================================================================================================
William C. Hunter
For 5,181,938 --
Withhold 31,383 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,213,321 --
====================================================================================================================================
David J. Kundert
For 5,183,079 --
Withhold 30,242 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,213,321 --
====================================================================================================================================
William J. Schneider
For -- 1,339
Withhold -- 44
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,383
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,338
Withhold -- 45
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,383
====================================================================================================================================
Judith M. Stockdale
For 5,182,048 --
Withhold 31,273 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,213,321 --
====================================================================================================================================
Eugene S. Sunshine
For 5,183,749 --
Withhold 29,572 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,213,321 --
====================================================================================================================================
18
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio of
INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.4% (1.0% OF TOTAL INVESTMENTS)
$ 2,100 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA $ 2,312,814
Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0% (1.4% OF TOTAL INVESTMENTS)
3,075 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 3,240,497
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.1% (14.8% OF TOTAL INVESTMENTS)
1,250 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 1,353,775
Bonds, Mount Saint Mary's College, Series 2006,
5.625%, 9/01/38
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
200 5.750%, 9/01/25 3/10 at 101.00 BBB- 209,758
200 5.800%, 9/01/30 3/10 at 101.00 BBB- 209,996
1,000 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 1,072,170
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
Maryland Economic Development Corporation, Utility
Infrastructure Revenue Bonds, University of Maryland - College
Park, Series 2001:
1,000 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 AAA 1,074,830
1,000 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,074,830
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Bullis School, Series 2000:
750 5.250%, 7/01/25 - FSA Insured 1/11 at 101.00 AAA 799,260
500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 532,840
1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,319,838
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
1,460 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,539,351
Revenue Bonds, Maryland Institute College of Art, Series 2001,
5.625%, 6/01/36
1,500 Maryland Health and Higher Educational Facilities Authority, 7/07 at 102.00 AA 1,546,080
Revenue Refunding Bonds, Johns Hopkins University,
Series 1997, 5.625%, 7/01/27
1,365 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 1,479,182
Revenue Bonds, Montgomery College Arts Center Project,
Series 2005A, 5.000%, 5/01/19
9,445 Morgan State University, Maryland, Student Tuition and Fee No Opt. Call AAA 11,670,808
Revenue Refunding Bonds, Academic Fees and Auxiliary
Facilities, Series 1993, 6.100%, 7/01/20 - MBIA Insured
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A:
4,000 5.000%, 4/01/15 4/13 at 100.00 AA 4,316,920
2,680 5.000%, 4/01/19 4/13 at 100.00 AA 2,880,544
1,685 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 1,847,400
Bonds, Series 2006A, 5.000%, 10/01/22
Westminster, Maryland, Educational Facilities Revenue Bonds,
McDaniel College, Series 2006:
1,400 5.000%, 11/01/31 11/16 at 100.00 BBB+ 1,485,960
850 4.500%, 11/01/36 11/16 at 100.00 BBB+ 853,689
------------------------------------------------------------------------------------------------------------------------------------
31,535 Total Education and Civic Organizations 35,267,231
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.9% (16.7% OF TOTAL INVESTMENTS)
1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,648,998
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 3,515,298
Revenue Bonds, Carroll County General Hospital, Series 2002,
5.800%, 7/01/32
19
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,665 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA $ 1,749,049
Revenue Bonds, Civista Medical Center, Series 2005,
5.000%, 7/01/37 - RAAI Insured
1,400 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,459,234
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 1,548,585
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,028,080
Revenue Bonds, Johns Hopkins Hospital, Howard County
General Hospital Acquisition, Series 1998, 5.000%, 7/01/19 -
MBIA Insured
2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,092,480
Revenue Bonds, Kaiser Permanente System, Series 1998A,
5.375%, 7/01/15
3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 4,033,244
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
2,040 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 2,156,668
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
1,750 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 1,882,895
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,497,618
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A 1,650,765
Revenue Bonds, University of Maryland Medical System,
Series 2002, 6.000%, 7/01/22
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 1,065,710
Revenue Bonds, University of Maryland Medical System,
Series 2004B, 5.000%, 7/01/24 - AMBAC Insured
4,200 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 4,517,709
Revenue Bonds, Western Maryland Health, Series 2006A,
5.000%, 7/01/34 - MBIA Insured (UB)
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
3,080 5.375%, 7/01/14 1/07 at 100.00 B3 2,848,784
6,000 5.300%, 7/01/24 1/07 at 100.00 B3 5,167,080
------------------------------------------------------------------------------------------------------------------------------------
38,960 Total Health Care 39,862,197
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 13.4% (9.0% OF TOTAL INVESTMENTS)
1,450 Maryland Community Development Administration, FNMA 2/11 at 101.00 Aaa 1,532,940
Multifamily Development Revenue Bonds, Edgewater Village
Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative
Minimum Tax)
2,500 Maryland Community Development Administration, Housing 1/09 at 101.00 Aa2 2,560,675
Revenue Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative
Minimum Tax)
880 Maryland Community Development Administration, Housing 1/10 at 100.00 Aa2 919,362
Revenue Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative
Minimum Tax)
1,000 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B1 1,008,940
Student Housing Revenue Bonds, University of Maryland -
Baltimore, Series 2003A, 5.625%, 10/01/23
1,000 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa3 1,047,800
Housing Revenue Bonds, Collegiate Housing Foundation -
Salisbury State University, Series 1999A, 6.000%, 6/01/19
1,145 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 1,234,310
Revenue Refunding Bonds, University of Maryland College
Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured
3,830 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 3,912,690
Maryland, FNMA/FHA-Insured Multifamily Housing
Development Bonds, Series 1998A, 5.200%, 7/01/30
360 Montgomery County Housing Opportunities Commission, 1/07 at 101.00 Aa2 363,996
Maryland, GNMA/FHA-Insured Multifamily Housing
Revenue Bonds, Series 1995A, 5.900%, 7/01/15
1,500 Montgomery County Housing Opportunities Commission, 1/07 at 102.00 Aaa 1,531,710
Maryland, Multifamily Housing Development Bonds,
Series 1996B, 5.900%, 7/01/26
2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,111,900
Maryland, Multifamily Housing Development Bonds,
Series 2000A, 6.100%, 7/01/30
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 540 Prince George's County Housing Authority, Maryland, 9/09 at 102.00 AAA $ 568,798
GNMA Collateralized Mortgage Revenue Bonds, University
Landing Apartments, Series 1999, 6.100%, 3/20/41
(Alternative Minimum Tax)
860 Prince George's County Housing Authority, Maryland, GNMA 5/07 at 100.00 AAA 860,714
Collateralized Mortgage Revenue Refunding Bonds, Foxglenn
Apartments, Series 1998A, 5.450%, 11/20/14 (Alternative
Minimum Tax)
Prince George's County Housing Authority, Maryland, GNMA
Collateralized Mortgage Revenue Refunding Bonds, Overlook
Apartments, Series 1995A:
2,000 5.700%, 12/20/15 12/06 at 101.00 AAA 2,022,680
1,670 5.750%, 12/20/19 12/06 at 101.00 AAA 1,688,804
------------------------------------------------------------------------------------------------------------------------------------
20,735 Total Housing/Multifamily 21,365,319
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.1% (3.4% OF TOTAL INVESTMENTS)
1,195 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 1,234,865
of Housing and Community Development, Residential
Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative
Minimum Tax)
4,100 Maryland Community Development Administration, Department 3/16 at 100.00 Aa2 4,235,423
of Housing and Community Development, Residential Revenue
Bonds, Series 2006I, 4.875%, 9/01/26 (Mandatory put 9/13/24)
(Alternative Minimum Tax)
1,630 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 1,682,339
of Housing and Community Development, Residential Revenue
Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative
Minimum Tax)
600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 613,110
Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative
Minimum Tax)
15 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 15,582
FHLMC/FNMA/GNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 2000A, 6.150%, 8/01/19
(Alternative Minimum Tax)
320 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 322,429
Securities Program Home Mortgage Revenue Bonds,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,860 Total Housing/Single Family 8,103,748
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,000 Carroll County, Maryland, Revenue Refunding Bonds, EMA 1/09 at 101.00 AA 1,044,760
Obligated Group, Series 1999A, 5.625%, 1/01/25 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 34.6% (23.2% OF TOTAL INVESTMENTS)
2,030 Anne Arundel County, Maryland, General Obligation Bonds, 4/14 at 100.00 AA+ 2,213,065
Series 2004, 5.000%, 4/01/16
Anne Arundel County, Maryland, General Obligation Bonds,
Series 2006:
1,310 5.000%, 3/01/21 3/16 at 100.00 AA+ 1,436,415
1,000 5.000%, 3/01/21 3/16 at 100.00 AA+ 1,096,500
685 Anne Arundel County, Maryland, Water and Sewer Revenue 3/16 at 100.00 AA+ 758,274
Bonds, Series 2006, 5.000%, 3/01/17
Baltimore County, Maryland, Metropolitan District Special
Assessment Bonds, 67th Issue:
2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,643,125
3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,695,895
1,000 Baltimore, Maryland, Consolidated General Obligation No Opt. Call A+ 1,064,840
Public Improvement Bonds, Series 1989B, 7.150%, 10/15/08
1,540 Baltimore, Maryland, General Obligation Consolidated 10/14 at 100.00 AAA 1,667,420
Public Improvement Bonds, Series 2004A, 5.000%, 10/15/22 -
AMBAC Insured
700 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 773,486
Bonds, Series 2005A, 5.000%, 12/01/16
Charles County, Maryland, Consolidated General Obligation
Public Improvement Bonds, Series 2006:
2,185 5.000%, 3/01/14 No Opt. Call AA 2,390,587
820 5.000%, 3/01/16 No Opt. Call AA 909,077
1,500 Frederick County, Maryland, General Obligation Public No Opt. Call AA 1,702,710
Facilities Bonds, Series 2006, 5.000%, 11/01/20
615 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 663,800
Villages of Lake Linganore Community Development
Authority, Series 2001A, 5.700%, 7/01/29 - RAAI Insured
21
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Howard County, Maryland, Consolidated Public Improvement
Bonds, Series 2004B:
$ 735 5.000%, 8/15/16 2/14 at 100.00 AAA $ 801,393
1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,767,464
1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,278,471
1,725 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 1,861,103
Bonds, Series 2002A, 5.250%, 8/15/18
1,190 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,290,258
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
2,500 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 2,757,175
5.000%, 8/01/17
3,520 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 3,901,674
Obligation Public Improvement Bonds, Series 2005A,
5.000%, 7/01/15
Montgomery County, Maryland, Consolidated General
Obligation Public Improvement Refunding Bonds, Series 2001:
1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,899,870
2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,159,700
925 Northern Mariana Islands General Obligation Bonds, 6/10 at 100.00 A 979,177
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,084,960
Consolidated Public Improvement Bonds, Series 2001,
5.250%, 12/01/20 - FGIC Insured
2,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA+ 2,027,640
Consolidated Public Improvement Bonds, Series 2002,
4.100%, 9/15/19
5,770 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA+ 6,231,773
Consolidated Public Improvement Bonds,
Series 2003A, 5.000%, 10/01/18
Washington Suburban Sanitary District, Montgomery and
Prince George's Counties, Maryland, Sewerage Disposal Bonds,
Series 2005:
2,000 5.000%, 6/01/16 6/15 at 100.00 AAA 2,209,240
1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,346,039
1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,344,162
1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,342,284
------------------------------------------------------------------------------------------------------------------------------------
51,010 Total Tax Obligation/General 55,297,577
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.4% (11.7% OF TOTAL INVESTMENTS)
Baltimore Board of School Commissioners, Maryland, Revenue
Bonds, City Public School System, Series 2003A:
1,500 5.000%, 5/01/16 5/13 at 100.00 AA+ 1,622,940
1,000 5.000%, 5/01/18 5/13 at 100.00 AA+ 1,076,910
2,900 Baltimore, Maryland, Project Revenue Bonds, Series 2006, 7/16 at 100.00 AAA 3,144,557
5.000%, 7/01/31 - AMBAC Insured
300 Baltimore, Maryland, Special Obligation Bonds, North Locust 9/15 at 101.00 N/R 316,059
Point Project, Series 2005, 5.500%, 9/01/34
900 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 963,252
Town Center Project, Series 2004, 5.750%, 7/01/34
Maryland Department of Transportation, Certificates of
Participation, Mass Transit Administration Project, Series 2000:
875 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 931,901
925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 985,153
4,250 Maryland Department of Transportation, Consolidated No Opt. Call AA 4,865,995
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,875 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,044,087
Bonds, Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
1,700 Maryland Stadium Authority, Lease Revenue Bonds, 6/13 at 100.00 AA+ 1,811,061
Montgomery County Conference Center Facilities,
Series 2003, 5.000%, 6/15/24
2,455 Maryland Stadium Authority, Lease Revenue Bonds, Sports 3/07 at 100.00 AAA 2,468,429
Facilities, Series 1996, 5.750%, 3/01/18 - AMBAC Insured
1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,066,500
Metrorail Garage, Series 2002, 5.000%, 6/01/21
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA $ 729,101
West Germantown Development District, Senior
Series 2002A, 5.500%, 7/01/27 - RAAI Insured
635 New Baltimore City Board of School Commissioners, 11/10 at 100.00 AA+ 670,084
Maryland, School System Revenue Bonds,
Series 2000, 5.125%, 11/01/15
2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,270,562
5.250%, 8/01/21 - FSA Insured
1,000 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 BBB+ 1,120,540
Transportation Authority, Series 1996Y, 5.500%, 7/01/36
1,500 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,757,280
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,590 Total Tax Obligation/Limited 27,844,411
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.1% (1.4% OF TOTAL INVESTMENTS)
1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,199,326
System Facilities, Series 1998A, 5.250%, 7/01/17 - FGIC Insured
2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/06 at 102.00 CCC+ 2,094,920
American Airlines Inc., Series 1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,135 Total Transportation 3,294,246
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 20.1% (13.5% OF TOTAL INVESTMENTS) (4)
2,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 2,670,650
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded 8/01/12)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 2,241,400
Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AAA 2,282,160
Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured (ETM)
3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 3,157,980
Bonds, Series 1999, 5.250%, 7/01/18 (Pre-refunded 7/01/09)
1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA (4) 1,086,290
Bonds, Series 2002, 5.000%, 11/01/22 (Pre-refunded 11/01/12)
2,550 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 2,793,041
and Improvement Bonds, Shady Grove Adventist Hospital,
Series 1995, 6.500%, 9/01/12 - FSA Insured (ETM)
575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 622,357
Refunding Bonds, Series 2002A, 5.250%, 8/15/18
(Pre-refunded 2/15/12)
1,000 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 1,076,690
Refunding Bonds, Series 2003A, 5.000%, 8/15/22
(Pre-refunded 8/15/12)
Maryland Economic Development Corporation, Health and
Mental Hygiene Providers Revenue Bonds, Series 1996A:
935 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 1,058,729
710 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 809,556
2,250 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa2 (4) 2,406,780
Housing Revenue Bonds, Collegiate Housing Foundation -
College Park, Series 1999A, 5.750%, 6/01/24
(Pre-refunded 6/01/09)
3,200 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 3,620,736
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 -
AMBAC Insured (ETM)
3,125 Maryland Health and Higher Educational Facilities Authority, 1/07 at 100.00 Aaa 3,179,281
Revenue Bonds, Howard County General Hospital, Series 1993,
5.500%, 7/01/25 (ETM)
760 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101.00 A3 (4) 847,202
Revenue Bonds, University of Maryland Medical System,
Series 2000, 6.750%, 7/01/30 (Pre-refunded 7/01/10)
230 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 265,537
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16 (ETM)
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,081,600
Obligation Bonds, Series 2000A, 5.500%, 10/01/20 (ETM)
635 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 663,232
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
23
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) $ 2,223,020
Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
29,470 Total U.S. Guaranteed 32,086,241
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.9% (2.6% OF TOTAL INVESTMENTS)
2,500 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 2,519,375
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/14 at 100.00 AAA 3,778,040
Series 2004PP, 5.000%, 7/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total Utilities 6,297,415
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AAA 1,185,260
Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
860 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 953,886
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
1,905 Total Water and Sewer 2,139,146
------------------------------------------------------------------------------------------------------------------------------------
$ 222,375 Total Investments (cost $226,062,934) - 149.0% 238,155,602
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (2,800,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 3,600,609
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.5)% (79,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 159,856,211
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
24
Nuveen Maryland Dividend Advantage Municipal Fund (NFM)
Portfolio of
INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 3.7% (2.5% OF TOTAL INVESTMENTS)
$ 205 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call B- $ 204,541
Motors Corporation, Series 1993, 5.350%, 4/01/08
1,000 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,101,340
Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured
310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 330,931
Revenue Bonds, Series 2006B, 5.875%, 9/01/39
650 Maryland Economic Development Corporation, Revenue 12/16 at 100.00 N/R 660,491
Bonds, Chesapeake Bay Hyatt Conference Center,
Series 2006A, 5.000%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
2,165 Total Consumer Discretionary 2,297,303
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,535 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,617,614
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.3% (10.3% OF TOTAL INVESTMENTS)
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
465 5.700%, 9/01/20 3/10 at 101.00 BBB- 487,455
500 5.750%, 9/01/25 3/10 at 101.00 BBB- 524,395
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 691,550
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,000 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,056,720
Infrastructure Revenue Bonds, University of Maryland -
College Park, Series 2001, 5.000%, 7/01/19 - AMBAC Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 1,559,490
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School, Series 2001, 6.000%, 7/01/31
500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 527,935
Revenue Bonds, Goucher College, Series 2004,
5.125%, 7/01/34
625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 656,581
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
475 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 514,587
Bonds, Our Lady of Good Counsel High School, Series 2005A,
6.000%, 5/01/35
615 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 665,202
Revenue Bonds, Montgomery College Arts Center Project,
Series 2005A, 5.000%, 5/01/20
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999:
215 5.375%, 2/01/19 2/09 at 101.00 BBB- 220,667
410 5.375%, 2/01/29 2/09 at 101.00 BBB- 420,902
500 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 537,415
Bonds, Series 2003A, 5.000%, 4/01/19
800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 877,104
Bonds, Series 2006A, 5.000%, 10/01/22
900 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 903,906
McDaniel College, Series 2006, 4.500%, 11/01/36
------------------------------------------------------------------------------------------------------------------------------------
9,150 Total Education and Civic Organizations 9,643,909
------------------------------------------------------------------------------------------------------------------------------------
25
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 30.2% (20.4% OF TOTAL INVESTMENTS)
$ 1,325 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 1,396,656
Revenue Bonds, University of Maryland Medical System,
Series 2006, 5.000%, 7/01/36
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,030,220
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/28 - FSA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 A2 1,028,520
Revenue Bonds, Calvert Memorial Hospital, Series 1998,
5.000%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,097,360
Revenue Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 787,860
Revenue Bonds, Civista Medical Center, Series 2005,
5.000%, 7/01/37 - RAAI Insured
500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 521,155
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 671,054
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,302,887
Revenue Bonds, Johns Hopkins Hospital, Series 2001,
5.000%, 5/15/21
2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,327,884
Revenue Bonds, Kaiser Permanente System, Series 1998A,
5.375%, 7/01/15
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 1,061,380
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 618,456
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 753,158
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,053,090
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 2,093,060
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28
1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 1,828,597
Revenue Bonds, Western Maryland Health, Series 2006A,
5.000%, 7/01/34 - MBIA Insured (UB)
570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 A3 583,201
Revenue Refunding Bonds, Union Hospital of Cecil County,
Series 1998, 5.100%, 7/01/22
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
290 5.375%, 7/01/14 1/07 at 100.00 B3 268,230
700 5.300%, 7/01/24 1/07 at 100.00 B3 602,826
------------------------------------------------------------------------------------------------------------------------------------
18,245 Total Health Care 19,025,594
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 18.6% (12.6% OF TOTAL INVESTMENTS)
750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA 771,307
Refunding Bonds, Cross Creek Apartments, Series 1998A,
5.250%, 10/20/33
2,000 Maryland Community Development Administration, Housing 7/08 at 101.00 Aa2 2,048,860
Revenue Bonds, Series 1998A, 5.625%, 1/01/40
(Alternative Minimum Tax)
1,000 Maryland Community Development Administration, 12/11 at 100.00 Aaa 1,043,090
Multifamily Housing Revenue Bonds, Princess Anne
Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative
Minimum Tax)
Maryland Economic Development Corporation, Senior Lien Student
Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A:
215 4.250%, 10/01/10 No Opt. Call B1 207,858
50 5.000%, 10/01/15 10/13 at 100.00 B1 49,070
210 5.625%, 10/01/23 10/13 at 100.00 B1 211,877
1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 A 1,947,510
Revenue Bonds, Sheppard Pratt University Village,
Series 2001, 6.000%, 7/01/33 - ACA Insured
475 Maryland Economic Development Corporation, Student 6/16 at 100.00 AAA 512,050
Housing Revenue Refunding Bonds, University of Maryland
College Park Projects, Series 2006, 5.000%, 6/01/33 -
CIFG Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 750 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa $ 766,462
Maryland, FNMA/FHA-Insured Multifamily Housing
Development Bonds, Series 1998A, 5.250%, 7/01/29
(Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,094,700
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, 7/11 at 100.00 Aaa 2,082,340
Maryland, Multifamily Housing Development Bonds,
Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,250 Total Housing/Multifamily 11,735,124
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.7% (4.5% OF TOTAL INVESTMENTS)
300 Maryland Community Development Administration, 9/15 at 100.00 Aa2 310,008
Department of Housing and Community Development,
Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26
(Alternative Minimum Tax)
1,200 Maryland Community Development Administration, 3/16 at 100.00 Aa2 1,239,636
Department of Housing and Community Development,
Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26
(Mandatory put 9/13/24) (Alternative Minimum Tax)
815 Maryland Community Development Administration, 9/16 at 100.00 Aa2 841,170
Department of Housing and Community Development,
Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31
(Alternative Minimum Tax)
550 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 567,567
Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative
Minimum Tax)
535 Maryland Community Development Administration, Residential 3/11 at 100.00 Aa2 557,443
Revenue Bonds, Series 2001F, 5.600%, 9/01/28 (Alternative
Minimum Tax)
600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 613,110
Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative
Minimum Tax)
75 Maryland Community Development Administration, Single 10/10 at 100.00 Aa2 75,351
Family Program Bonds, First Series 2001, 5.000%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
4,075 Total Housing/Single Family 4,204,285
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6% (1.2% OF TOTAL INVESTMENTS)
1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,017,470
Resource Recovery Revenue Bonds, RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6% (0.3% OF TOTAL INVESTMENTS)
300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 319,020
Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.3% (17.1% OF TOTAL INVESTMENTS)
Anne Arundel County, Maryland, General Obligation Bonds,
Series 2006:
730 5.000%, 3/01/21 3/16 at 100.00 AA+ 800,445
565 5.000%, 3/01/21 3/16 at 100.00 AA+ 619,523
3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,695,896
Assessment Bonds, 67th Issue, 5.000%, 6/01/27
300 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 331,494
Bonds, Series 2005A, 5.000%, 12/01/16
500 Frederick County, Maryland, General Obligation Public No Opt. Call AA 567,570
Facilities Bonds, Series 2006, 5.000%, 11/01/20
Frederick, Maryland, General Obligation Bonds, Series 2005:
600 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 661,254
500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 549,480
1,360 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,401,181
Bonds, Series 2001A, 4.750%, 2/15/21
1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,084,250
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
1,360 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,507,465
Obligation Public Improvement Bonds, Series 2005A,
5.000%, 7/01/15
430 Northern Mariana Islands General Obligation Bonds, 6/10 at 100.00 A 455,185
Series 2000A, 6.000%, 6/01/20 - ACA Insured
740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 AAA 782,165
4.875%, 3/01/19 - FGIC Insured
27
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA $ 1,627,440
Consolidated Public Improvement Bonds, Series 2001,
5.250%, 12/01/20 - FGIC Insured
1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA+ 1,080,660
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
700 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 773,234
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2005, 5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
14,785 Total Tax Obligation/General 15,937,242
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.1% (10.9% OF TOTAL INVESTMENTS)
625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 649,813
Project, Series 2005A, 5.350%,7/01/34
605 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 615,261
Revenue Bonds, Parole Town Center Project, Series 2002,
5.000%, 7/01/12
500 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 538,455
Bonds, City Public School System, Series 2003A,
5.000%, 5/01/18
500 Baltimore, Maryland, Project Revenue Bonds, Series 2006, 7/16 at 100.00 AAA 542,165
5.000%, 7/01/31 - AMBAC Insured
350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 374,598
Town Center Project, Series 2004, 5.750%, 7/01/34
1,500 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,717,410
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,531,703
Bonds, Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
370 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 398,668
Bonds, Montgomery County Town Square Parking Garage,
Series 2002A, 5.000%, 9/15/13
740 Prince George's County, Maryland, Lease Revenue Bonds, 6/13 at 100.00 AAA 800,895
Upper Marlboro Justice Center, Series 2003A,
5.000%, 6/30/14 - MBIA Insured
270 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 278,340
National Harbor Project, Series 2005, 5.200%, 7/01/34
450 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 460,917
Victoria Falls Project, Series 2005, 5.250%, 7/01/35
700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 820,064
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,290 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,419,348
Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
9,305 Total Tax Obligation/Limited 10,147,637
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.1% (0.7% OF TOTAL INVESTMENTS)
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 AAA 679,601
Parking Facilities Revenue Bonds, Johns Hopkins Hospital,
Series 2001, 5.000%, 7/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.2% (16.3% OF TOTAL INVESTMENTS) (4)
Anne Arundel County, Maryland, Various Purpose General
Obligation Bonds, Series 2001:
580 4.800%, 2/15/18 (Pre-refunded 2/15/11) 2/11 at 101.00 AA+ (4) 613,901
500 5.000%, 2/15/28 (Pre-refunded 2/15/11) 2/11 at 101.00 AA+ (4) 533,105
1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 1,137,510
Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM)
500 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 560,220
Revenue Bonds, Collington Episcopal Life Care Community
Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11)
835 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 964,016
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16 (ETM)
2,300 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,487,680
Obligation Bonds, Series 2000A, 5.500%, 10/01/32 (ETM)
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,700 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA $ 1,836,170
Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
1,590 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,660,691
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
Washington Suburban Sanitary District, Montgomery and
Prince George's Counties, Maryland, General Obligation
Construction Bonds, Series 2001:
895 5.000%, 6/01/22 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 949,908
935 5.000%, 6/01/23 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 992,362
985 5.000%, 6/01/24 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 1,045,430
1,035 5.000%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 1,098,497
1,290 Washington Suburban Sanitary District, Montgomery and 6/11 at 100.00 AAA 1,355,816
Prince George's Counties, Maryland, Water Supply Bonds,
Series 2001, 4.750%, 6/01/20 (Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
14,160 Total U.S. Guaranteed 15,235,306
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,007,750
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS)
355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 393,755
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 87,975 Total Investments (cost $88,986,449) - 148.2% 93,261,610
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (1,133,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.5% 2,795,917
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.9)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 62,924,527
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
29
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR)
Portfolio of
INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 3.9% (2.6% OF TOTAL INVESTMENTS)
$ 190 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call B- $ 189,574
Motors Corporation, Series 1993, 5.350%, 4/01/08
1,200 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,321,608
Revenue Bonds, Series 2006A, 5.250%, 9/01/39 -
XLCA Insured
310 Baltimore, Maryland, Subordinate Lien Convention Center 9/16 at 100.00 Ba1 330,931
Hotel Revenue Bonds, Series 2006B, 5.875%, 9/01/39
650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 660,491
Chesapeake Bay Hyatt Conference Center, Series 2006A,
5.000%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
2,350 Total Consumer Discretionary 2,502,604
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.5% (1.7% OF TOTAL INVESTMENTS)
770 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 811,441
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
800 Tobacco Settlement Financing Corporation, Virgin Islands, 5/11 at 100.00 Baa3 813,880
Tobacco Settlement Asset-Backed Bonds, Series 2001,
5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
1,570 Total Consumer Staples 1,625,321
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.4% (13.6% OF TOTAL INVESTMENTS)
1,100 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 1,175,295
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
500 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 541,510
Bonds, Mount Saint Mary's College, Series 2006,
5.625%, 9/01/38
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
100 5.750%, 9/01/25 3/10 at 101.00 BBB- 104,879
100 5.800%, 9/01/30 3/10 at 101.00 BBB- 104,998
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 691,550
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 259,915
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School, Series 2001, 6.000%, 7/01/31
415 Maryland Health and Higher Educational Facilities Authority, 1/11 at 101.00 AAA 442,257
Revenue Bonds, Bullis School, Series 2000, 5.250%, 7/01/30 -
FSA Insured
500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 527,935
Revenue Bonds, Goucher College, Series 2004,
5.125%, 7/01/34
1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,313,163
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
500 Maryland Industrial Development Financing Authority, 5/15 at 100.00 N/R 541,670
Revenue Bonds, Our Lady of Good Counsel High School,
Series 2005A, 6.000%, 5/01/35
590 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 641,566
Revenue Bonds, Montgomery College Arts Center Project,
Series 2005A, 5.000%, 5/01/18
500 Morgan State University, Maryland, Student Tuition and Fee 7/12 at 100.00 AAA 532,950
Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2001, 4.900%, 7/01/21 - FGIC Insured
500 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AAA 538,730
Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2003A, 5.000%, 7/01/20 - FGIC Insured
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2001B:
1,580 4.375%, 4/01/17 4/11 at 100.00 AA 1,621,017
1,140 4.500%, 4/01/19 4/11 at 100.00 AA 1,169,879
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA $ 1,074,830
Bonds, Series 2003A, 5.000%, 4/01/19
650 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 712,647
Bonds, Series 2006A, 5.000%, 10/01/22
950 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 1,008,330
McDaniel College, Series 2006, 5.000%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
12,270 Total Education and Civic Organizations 13,003,121
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.1% (16.1% OF TOTAL INVESTMENTS)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,030,220
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 838,015
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,097,360
Revenue Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 787,860
Revenue Bonds, Civista Medical Center, Series 2005,
5.000%, 7/01/37 - RAAI Insured
500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 521,155
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 671,054
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 1,061,380
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 555,025
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 753,158
Revenue Bonds, MedStar Health, Series 2004,
5.375%, 8/15/24
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,579,635
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 2,093,060
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28
1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 1,828,597
Revenue Bonds, Western Maryland Health, Series 2006A,
5.000%, 7/01/34 - MBIA Insured (UB)
1,610 Montgomery County, Maryland, Economic Development 12/11 at 100.00 Aa2 1,691,015
Revenue Bonds, Trinity Healthcare Group, Series 2001,
5.125%, 12/01/22
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
300 5.375%, 7/01/14 1/07 at 100.00 B3 277,479
700 5.300%, 7/01/24 1/07 at 100.00 B3 602,826
------------------------------------------------------------------------------------------------------------------------------------
14,710 Total Health Care 15,387,839
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.5% (6.3% OF TOTAL INVESTMENTS)
50 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 51,490
Multifamily Housing Mortgage Loan Revenue Bonds,
Series 2001A, 5.100%, 5/15/28
3,145 Maryland Community Development Administration, 12/11 at 100.00 Aaa 3,280,518
Multifamily Development Revenue Bonds, Waters Towers
Senior Apartments, Series 2001F, 5.450%, 12/15/33
(Alternative Minimum Tax)
1,110 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,157,830
Housing Revenue Bonds, Princess Anne Apartments,
Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax)
1,000 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B1 1,008,940
Student Housing Revenue Bonds, University of Maryland -
Baltimore, Series 2003A, 5.625%, 10/01/23
520 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 560,560
Revenue Refunding Bonds, University of Maryland College
Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
5,825 Total Housing/Multifamily 6,059,338
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.8% (3.9% OF TOTAL INVESTMENTS)
$ 300 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 $ 310,008
of Housing and Community Development, Residential Revenue
Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative
Minimum Tax)
1,000 Maryland Community Development Administration, Department 3/16 at 100.00 Aa2 1,033,030
of Housing and Community Development, Residential Revenue
Bonds, Series 2006I, 4.875%, 9/01/26 (Mandatory put 9/13/24)
(Alternative Minimum Tax)
815 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 841,170
of Housing and Community Development, Residential Revenue
Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative
Minimum Tax)
880 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 905,159
Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative
Minimum Tax)
600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 613,110
Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,595 Total Housing/Single Family 3,702,477
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,150 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,170,091
Resource Recovery Revenue Bonds, RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.5% (0.3% OF TOTAL INVESTMENTS)
300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 319,020
Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 35.6% (23.7% OF TOTAL INVESTMENTS)
750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AA+ 769,935
Consolidated Water and Sewerage, Series 1999,
4.500%, 8/01/19
Anne Arundel County, Maryland, General Obligation Bonds,
Series 2006:
845 5.000%, 3/01/21 3/16 at 100.00 AA+ 926,543
650 5.000%, 3/01/21 3/16 at 100.00 AA+ 712,725
750 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AAA 812,055
Improvement Bonds, Series 2004A, 5.000%, 10/15/22 -
AMBAC Insured
300 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 331,494
Bonds, Series 2005A, 5.000%, 12/01/16
Cecil County, Maryland, Consolidated General Obligation Public
Improvement Bonds, Series 2001B:
975 4.600%, 8/01/18 8/11 at 101.00 AA- 1,017,705
1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,062,452
750 Frederick County, Maryland, General Obligation Public Facilities No Opt. Call AA 851,355
Bonds, Series 2006, 5.000%, 11/01/20
200 Frederick County, Maryland, Special Obligation Bonds, Villages 7/10 at 102.00 AA 215,870
of Lake Linganore Community Development Authority,
Series 2001A, 5.700%, 7/01/29 - RAAI Insured
Frederick, Maryland, General Obligation Bonds, Series 2005:
600 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 661,254
500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 549,480
510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 538,856
Improvement Bonds, Series 2001, 4.750%,12/01/19
1,000 Howard County, Maryland, Consolidated Public Improvement 2/14 at 100.00 AAA 1,090,330
Bonds, Series 2004B, 5.000%, 8/15/16
1,000 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 1,102,870
5.000%, 8/01/17
4,730 Montgomery County, Maryland, Consolidated General Obligation 10/11 at 101.00 AAA 5,107,688
Public Improvement Refunding Bonds, Series 2001,
5.250%, 10/01/18
Prince George's County, Maryland, General Obligation
Consolidated Public Improvement Bonds, Series 2001:
1,000 5.250%, 12/01/20 - FGIC Insured 12/11 at 101.00 AAA 1,084,960
2,820 5.250%, 12/01/21 - FGIC Insured 12/11 at 101.00 AAA 3,044,105
770 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 809,524
Bonds, Series 2001, 5.000%, 7/01/24 - FSA Insured
800 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 883,696
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2005, 5.000%, 6/01/16
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA $ 1,104,620
Prince George's Counties, Maryland, Water Supply Bonds,
Series 2005, 5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
20,970 Total Tax Obligation/General 22,677,517
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.8% (11.2% OF TOTAL INVESTMENTS)
625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 649,813
Project, Series 2005A, 5.350%, 7/01/34
605 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 615,261
Revenue Bonds, Parole Town Center Project, Series 2002,
5.000%, 7/01/12
530 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 573,439
Bonds, City Public School System, Series 2003A, 5.000%, 5/01/15
Baltimore County, Maryland, Certificates of Participation,
Health and Social Services Building Project, Series 2001:
1,580 5.000%, 8/01/20 8/11 at 101.00 AA+ 1,666,995
1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,748,495
500 Baltimore, Maryland, Project Revenue Bonds, Series 2006, 7/16 at 100.00 AAA 542,165
5.000%, 7/01/31 - AMBAC Insured
350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 374,598
Town Center Project, Series 2004, 5.750%, 7/01/34
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,144,940
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,531,703
Bonds, Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
1,000 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 1,080,150
West Germantown Development District, Senior Series 2002A,
5.500%, 7/01/27 - RAAI Insured
270 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 278,340
National Harbor Project, Series 2005, 5.200%, 7/01/34
475 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 486,524
Victoria Falls Project, Series 2005, 5.250%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Tax Obligation/Limited 10,692,423
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.7% (1.8% OF TOTAL INVESTMENTS)
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series
2001:
650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 679,601
1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 1,042,980
------------------------------------------------------------------------------------------------------------------------------------
1,650 Total Transportation 1,722,581
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.5% (15.0% OF TOTAL INVESTMENTS) (4)
1,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,602,390
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded 8/01/12)
3,000 Frederick County, Maryland, General Obligation Public Facilities 12/10 at 101.00 AAA 3,215,640
Bonds, Series 2000, 5.200%, 12/01/19 (Pre-refunded 12/01/10)
1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA (4) 1,086,290
Bonds, Series 2002, 5.000%, 11/01/20 (Pre-refunded 11/01/12)
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Collington Episcopal Life Care Community Inc.,
Series 2001A:
31 6.750%, 4/01/20 (Pre-refunded 4/01/09) 4/09 at 100.00 N/R (4) 32,814
25 6.750%, 4/01/23 (Pre-refunded 4/01/11) 4/11 at 101.00 N/R (4) 28,011
1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 1,367,831
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 -
AMBAC Insured (ETM)
1,175 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,356,549
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16 (ETM)
3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,240,300
Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
33
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,230 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA $ 1,308,855
Bonds, Series 2001, 5.000%, 7/01/24 (Pre-refunded 7/01/11) -
FSA Insured
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,085,110
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded 7/01/10)
------------------------------------------------------------------------------------------------------------------------------------
13,221 Total U.S. Guaranteed 14,323,790
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.2% (2.2% OF TOTAL INVESTMENTS)
1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 1,049,230
5.250%, 10/01/34 - MBIA Insured
1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,007,750
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Utilities 2,056,980
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS)
355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 393,755
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 89,966 Total Investments (cost $91,244,008) - 149.9% 95,636,857
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (1,133,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,286,298
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.2)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 63,790,155
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
34
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI)
Portfolio of
INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 3.1% (2.0% OF TOTAL INVESTMENTS)
$ 220 Baltimore, Maryland, Pollution Control Revenue Bonds, No Opt. Call B- $ 219,507
General Motors Corporation, Series 1993, 5.350%, 4/01/08
1,000 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,101,340
Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured
380 Baltimore, Maryland, Subordinate Lien Convention Center 9/16 at 100.00 Ba1 405,658
Hotel Revenue Bonds, Series 2006B, 5.875%, 9/01/39
700 Maryland Economic Development Corporation, Revenue 12/16 at 100.00 N/R 711,298
Bonds, Chesapeake Bay Hyatt Conference Center,
Series 2006A, 5.000%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
2,300 Total Consumer Discretionary 2,437,803
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.5% (2.4% OF TOTAL INVESTMENTS)
2,680 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,824,238
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.6% (10.5% OF TOTAL INVESTMENTS)
225 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 240,401
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
625 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 676,888
Bonds, Mount Saint Mary's College, Series 2006,
5.625%, 9/01/38
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
100 5.750%, 9/01/25 3/10 at 101.00 BBB- 104,879
100 5.800%, 9/01/30 3/10 at 101.00 BBB- 104,998
690 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 739,797
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 659,919
Revenue Bonds, Goucher College, Series 2004,
5.125%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 1,053,680
Revenue Bonds, Johns Hopkins University, Series 2002A,
5.000%, 7/01/32
625 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 677,087
Bonds, Our Lady of Good Counsel High School, Series 2005A,
6.000%, 5/01/35
710 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 772,054
Revenue Bonds, Montgomery College Arts Center Project,
Series 2005A, 5.000%, 5/01/18
1,000 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AAA 1,066,610
Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2003A, 5.000%, 7/01/32 - FGIC Insured
985 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA 1,012,590
Bonds, Series 2001B, 4.625%, 4/01/21
2,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/12 at 100.00 AA 2,125,800
Bonds, Series 2002A, 5.125%, 4/01/22
1,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 1,074,830
Bonds, Series 2003A, 5.000%, 4/01/19
800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 877,104
Bonds, Series 2006A, 5.000%, 10/01/22
1,150 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 1,220,610
McDaniel College, Series 2006, 5.000%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
11,635 Total Education and Civic Organizations 12,407,247
------------------------------------------------------------------------------------------------------------------------------------
35
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.5% (14.5% OF TOTAL INVESTMENTS)
$ 700 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 741,804
Revenue Bonds, University of Maryland Medical System,
Series 2006, 5.000%, 7/01/31
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,030,220
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 838,015
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
1,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,352,038
Revenue Bonds, Carroll County General Hospital, Series 2002,
5.800%, 7/01/32
870 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 913,918
Revenue Bonds, Civista Medical Center, Series 2005,
5.000%, 7/01/37 - RAAI Insured
700 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 729,617
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
800 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 825,912
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,042,310
Revenue Bonds, Johns Hopkins Hospital, Series 2001,
5.000%, 5/15/21
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 1,061,380
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
725 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 766,463
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
900 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 968,346
Revenue Bonds, MedStar Health, Series 2004,
5.375%, 8/15/24
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 684,509
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
1,845 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,985,571
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
2,100 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,258,855
Revenue Bonds, Western Maryland Health, Series 2006A,
5.000%, 7/01/34 - MBIA Insured (UB)
775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa2 842,952
Revenue Refunding Bonds, Adventist Healthcare,
Series 2003A, 5.750%, 1/01/25
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
350 5.375%, 7/01/14 1/07 at 100.00 B3 323,726
900 5.300%, 7/01/24 1/07 at 100.00 B3 775,062
------------------------------------------------------------------------------------------------------------------------------------
16,340 Total Health Care 17,140,698
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 14.5% (9.8% OF TOTAL INVESTMENTS)
980 Maryland Community Development Administration, Housing 7/12 at 100.00 Aa2 999,737
Revenue Bonds, Series 2002B, 4.950%, 7/01/32 (Alternative
Minimum Tax)
1,250 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B1 1,261,175
Student Housing Revenue Bonds, University of Maryland -
Baltimore, Series 2003A, 5.625%, 10/01/23
Maryland Economic Development Corporation, Student Housing
Revenue Bonds, Sheppard Pratt University Village, Series 2001:
20 5.875%, 7/01/21 - ACA Insured 7/11 at 101.00 A 21,553
150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 A 162,292
475 Maryland Economic Development Corporation, Student 6/16 at 100.00 AAA 512,050
Housing Revenue Refunding Bonds, University of Maryland
College Park Projects, Series 2006, 5.000%, 6/01/33 -
CIFG Insured
Montgomery County Housing Opportunities Commission,
Maryland, Multifamily Housing Development Bonds,
Series 2002B:
515 5.100%, 7/01/33 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 530,476
3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,099,000
4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 5,011,729
Collateralized Mortgage Revenue Bonds, Fairview and Hillside
Projects, Series 2002A, 4.700%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
11,250 Total Housing/Multifamily 11,598,012
------------------------------------------------------------------------------------------------------------------------------------
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS)
$ 595 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 $ 614,849
of Housing and Community Development, Residential
Revenue Bonds, Series 2006F, 4.900%, 9/01/26
(Alternative Minimum Tax)
1,200 Maryland Community Development Administration, Department 3/16 at 100.00 Aa2 1,239,636
of Housing and Community Development, Residential
Revenue Bonds, Series 2006I, 4.875%, 9/01/26
(Mandatory put 9/13/24) (Alternative Minimum Tax)
815 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 841,170
of Housing and Community Development, Residential
Revenue Bonds, Series 2006L, 4.900%, 9/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,610 Total Housing/Single Family 2,695,655
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.8% OF TOTAL INVESTMENTS)
1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,017,470
Resource Recovery Revenue Bonds, RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.5% (0.3% OF TOTAL INVESTMENTS)
400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 425,360
Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.2% (15.6% OF TOTAL INVESTMENTS)
1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,040,590
Refunding Bonds, Series 2002, 4.375%, 4/01/17
Anne Arundel County, Maryland, General Obligation Bonds,
Series 2006:
845 5.000%, 3/01/21 3/16 at 100.00 AA+ 926,543
650 5.000%, 3/01/21 3/16 at 100.00 AA+ 712,725
1,000 Calvert County, Maryland, General Obligation Public Improvement 1/12 at 101.00 AA 1,048,610
Bonds, Series 2002, 4.500%, 1/01/16
380 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 419,892
Bonds, Series 2005A, 5.000%, 12/01/16
1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 AA 1,315,679
Public Improvement Bonds, Series 2002, 4.400%, 1/15/16
500 Frederick County, Maryland, General Obligation Public No Opt. Call AA 567,570
Facilities Bonds, Series 2006, 5.000%, 11/01/20
245 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 264,142
Villages of Lake Linganore Community Development
Authority, Series 2001A, 5.600%, 7/01/20 - RAAI Insured
Frederick, Maryland, General Obligation Bonds, Series 2005:
710 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 782,484
535 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 587,944
1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,084,250
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
1,500 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 1,654,305
5.000%, 8/01/17
1,440 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,596,139
Obligation Public Improvement Bonds, Series 2005A,
5.000%, 7/01/15
1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA+ 1,080,660
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
1,000 Prince George's County, Maryland, General Obligation No Opt. Call AA+ 1,069,480
Consolidated Public Improvement Bonds, Series 2004C,
5.000%, 12/01/11
1,000 St. Mary's County, Maryland, General Obligation Hospital No Opt. Call AA- 1,078,240
Bonds, Series 2002, 5.000%, 10/01/12
1,000 Washington Suburban Sanitary District, Montgomery and No Opt. Call AAA 1,089,290
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2004, 5.000%, 6/01/13
1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,104,620
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2005, 5.000%, 6/01/16
1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,104,620
Prince George's Counties, Maryland, Water Supply Bonds,
Series 2005, 5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
17,065 Total Tax Obligation/General 18,527,783
------------------------------------------------------------------------------------------------------------------------------------
37
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.3% (21.1% OF TOTAL INVESTMENTS)
$ 750 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R $ 779,775
Project, Series 2005A, 5.350%, 7/01/34
1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,081,960
Bonds, City Public School System, Series 2003A,
5.000%, 5/01/15
600 Baltimore, Maryland, Project Revenue Bonds, Series 2006, 7/16 at 100.00 AAA 650,598
5.000%, 7/01/31 - AMBAC Insured
450 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 481,626
Town Center Project, Series 2004, 5.750%, 7/01/34
5,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 5,724,697
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
2,200 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,290,178
Bonds, Department of Transportation Headquarters Building,
Series 2002, 4.750%, 6/01/22
450 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 484,866
Bonds, Montgomery County Town Square Parking Garage,
Series 2002A, 5.000%, 9/15/13
2,935 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 3,174,819
Bonds, Montgomery County Wayne Avenue Parking Project,
Series 2002A, 5.250%, 9/15/16
Maryland Stadium Authority, Lease Revenue Bonds, Montgomery
County Conference Center Facilities, Series 2003:
1,465 5.000%, 6/15/21 6/13 at 100.00 AA+ 1,577,820
1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,725,835
460 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 474,209
National Harbor Project, Series 2005, 5.200%, 7/01/34
575 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 588,950
Victoria Falls Project, Series 2005, 5.250%, 7/01/35
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002G:
1,000 5.250%, 7/01/17 7/12 at 100.00 BBB 1,065,330
1,205 5.250%, 7/01/20 7/12 at 100.00 BBB 1,286,844
1,275 5.250%, 7/01/21 7/12 at 100.00 BBB 1,360,272
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,141,310
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
235 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 250,736
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 820,064
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,920 Total Tax Obligation/Limited 24,959,889
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.8% (13.3% OF TOTAL INVESTMENTS) (4)
10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AA+ (4) 10,448
Consolidated General Improvements, Series 1999,
5.000%, 5/15/19 (Pre-refunded 5/15/09)
100 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 105,266
Bonds, Series 1999, 5.250%, 7/01/17 (Pre-refunded 7/01/09)
Frederick County, Maryland, General Obligation Public Facilities
Bonds, Series 2002:
2,035 5.000%, 11/01/21 (Pre-refunded 11/01/12) 11/12 at 101.00 AA (4) 2,210,600
2,500 5.000%, 11/01/22 (Pre-refunded 11/01/12) 11/12 at 101.00 AA (4) 2,715,725
1,210 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,253,935
Bonds, Series 2001A, 4.750%, 2/15/19 (Pre-refunded 2/15/09)
280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 313,723
Revenue Bonds, Collington Episcopal Life Care Community
Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11)
285 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 309,390
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 -
AMBAC Insured (ETM)
1,010 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,166,055
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16 (ETM)
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,000 Montgomery County, Maryland, Consolidated General Obligation 2/12 at 101.00 AAA $ 2,156,860
Public Improvement Bonds, Series 2002A, 5.000%, 2/01/20
(Pre-refunded 2/01/12)
3,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 3,780,350
Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
700 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 764,778
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
880 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 941,037
Series 2001, 5.125%, 7/01/30 (Pre-refunded 7/01/11) -
FSA Insured
25 Washington Suburban Sanitary District, Montgomery and 6/11 at 101.00 AAA 26,747
Prince George's Counties, Maryland, General Obligation
Construction Bonds, Second Series 2001, 5.000%, 6/01/17
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
14,535 Total U.S. Guaranteed 15,754,914
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.9% (4.7% OF TOTAL INVESTMENTS)
1,250 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,259,688
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
4,025 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 4,270,686
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,275 Total Utilities 5,530,374
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.0% (2.7% OF TOTAL INVESTMENTS)
2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AAA 2,726,564
Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured
430 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 476,943
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Water and Sewer 3,203,507
------------------------------------------------------------------------------------------------------------------------------------
$ 111,010 Total Investments (cost $114,205,469) - 148.6% 118,522,950
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (1,400,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,621,147
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.9)% (39,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 79,744,097
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
39
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio of
INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.2% (2.9% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset-Backed Bonds, Series 2005:
$ 1,575 5.250%, 6/01/19 6/15 at 100.00 BBB $ 1,660,538
3,850 5.500%, 6/01/26 6/15 at 100.00 BBB 4,109,991
------------------------------------------------------------------------------------------------------------------------------------
5,425 Total Consumer Staples 5,770,529
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.0% (4.8% OF TOTAL INVESTMENTS)
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,072,000
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
500 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 531,830
Revenue Refunding and Improvement Bonds, Series 1999,
6.000%, 10/15/28
700 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 746,585
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez University
System, Series 2002, 5.375%, 12/01/21
490 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 501,015
Horse Center Revenue Refunding Bonds, Series 2001C,
6.850%, 7/15/21
475 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 520,457
Revenue Bonds, Series 2005, 5.000%, 6/01/18
2,120 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,219,682
Revenue Bonds, Public Higher Education Financing Program,
Series 2001A, 5.000%, 9/01/26
2,000 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 2,176,680
Revenue Bonds, Public Higher Education Financing Program,
Series 2004B, 5.000%, 9/01/13
1,635 Virginia Commonwealth University, Revenue Bonds, 5/14 at 101.00 AAA 1,785,109
Series 2004A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,920 Total Education and Civic Organizations 9,553,358
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.9% (11.6% OF TOTAL INVESTMENTS)
2,000 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 2,095,760
Hospital Revenue Bonds, Martha Jefferson Hospital,
Series 2002, 5.250%, 10/01/35
4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 5,339,899
Hospital Revenue Refunding Bonds, Inova Health System,
Series 1993A, 5.000%, 8/15/23
1,250 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,299,413
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AAA 1,187,010
Hospital Revenue Bonds, Memorial Regional Medical Center,
Series 1995, 6.375%, 8/15/18 - MBIA Insured
1,500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,608,915
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
1,500 Henrico County Industrial Development Authority, Virginia, No Opt. Call AAA 1,863,285
Healthcare Revenue Bonds, Bon Secours Health System,
Series 1996, 6.250%, 8/15/20 - MBIA Insured
1,500 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,587,165
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
4,750 Medical College of Virginia Hospital Authority, General Revenue 7/08 at 102.00 AAA 4,922,378
Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured
3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 3,243,420
Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
21,350 Total Health Care 23,147,245
------------------------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.5% (2.4% OF TOTAL INVESTMENTS)
$ 1,425 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa $ 1,555,074
Multifamily Housing Revenue Bonds, Patrick Henry Apartments,
Series 2000, 6.050%, 11/01/32 (Mandatory put 11/01/20)
(Alternative Minimum Tax)
Danville Industrial Development Authority, Virginia, Student
Housing Revenue Bonds, Collegiate Housing Foundation, Averett
College, Series 1999A:
500 6.875%, 6/01/20 6/09 at 102.00 N/R 530,880
1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,592,070
1,000 Lynchburg Redevelopment and Housing Authority, Virginia, 4/10 at 102.00 AAA 1,047,940
Vistas GNMA Mortgage-Backed Revenue Bonds, Series 2000A,
6.200%, 1/20/40 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,425 Total Housing/Multifamily 4,725,964
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.1% (1.5% OF TOTAL INVESTMENTS)
335 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 337,543
Securities Program Home Mortgage Revenue Bonds,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,043,370
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
1,500 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA 1,521,570
Mortgage Bonds, Series 2005C-C2, 4.750%, 10/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,835 Total Housing/Single Family 2,902,483
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.4% (1.0% OF TOTAL INVESTMENTS)
2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,031,340
Solid Waste Disposal Facility Revenue Refunding Bonds,
USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5% (1.7% OF TOTAL INVESTMENTS)
800 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 825,512
Retirement Center Revenue Bonds, Greenspring Village,
Series 2006A, 4.875%, 10/01/36
1,495 Henrico County Economic Development Authority, Virginia, 7/09 at 102.00 AAA 1,600,861
GNMA Mortgage-Backed Securities Program Assisted Living
Revenue Bonds, Beth Sholom, Series 1999A, 5.900%, 7/20/29
Henrico County Economic Development Authority, Virginia,
Residential Care Facility Revenue Bonds, Westminster Canterbury
of Richmond, Series 2006:
100 5.000%, 10/01/27 10/11 at 103.00 BBB- 104,377
800 5.000%, 10/01/35 No Opt. Call BBB- 831,336
------------------------------------------------------------------------------------------------------------------------------------
3,195 Total Long-Term Care 3,362,086
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.3% OF TOTAL INVESTMENTS)
500 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 506,025
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax) (5)
1,000 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 1,014,810
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (5)
1,000 Isle of Wight County Industrial Development Authority, 5/07 at 102.00 BBB 1,026,270
Virginia, Solid Waste Disposal Facilities Revenue Bonds,
Union Camp Corporation, Series 1997, 6.100%, 5/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,500 Total Materials 2,547,105
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.3% (18.0% OF TOTAL INVESTMENTS)
900 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 981,333
5.000%, 6/15/13
1,500 Arlington County, Virginia, General Obligation Bonds, 8/16 at 100.00 AAA 1,659,150
Series 2006, 5.000%, 8/01/20
Chesapeake, Virginia, General Obligation Water and Sewerage
Bonds, Series 2003B:
1,880 5.000%, 6/01/21 6/13 at 100.00 AA 2,003,892
2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,188,441
41
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,355 Harrisonburg, Virginia, General Obligation Bonds, Public Safety 7/12 at 101.00 AAA $ 1,455,758
and Steam Plant, Series 2002, 5.000%, 7/15/19 - FGIC Insured
1,390 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 1,537,910
Series 2005, 5.000%, 7/15/16
2,105 Loudoun County, Virginia, General Obligation Bonds, 12/16 at 100.00 AAA 2,314,490
Series 2006, 5.000%, 12/01/25
105 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 112,976
Bonds, Series 2002A, 5.250%, 5/01/22
1,435 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 1,577,826
Bonds, Series 2005B, 5.000%, 6/01/18
1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,279,077
5.000%, 6/01/21
Newport News, Virginia, General Obligation Bonds, General
Improvement and Water Projects, Series 2002A:
2,770 5.000%, 7/01/19 7/13 at 100.00 AA 2,981,213
1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,076,250
1,350 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 1,479,465
Series 2004C, 5.000%, 5/01/16
1,400 Northern Mariana Islands General Obligation Bonds, 6/10 at 100.00 A 1,481,998
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call AAA 1,411,878
5.000%, 4/01/15 - MBIA Insured
1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,600,117
5.000%, 7/15/21 - FSA Insured
Richmond, Virginia, General Obligation Bonds, Series 2005A:
1,500 5.000%, 7/15/17 - FSA Insured 7/15 at 100.00 AAA 1,650,255
1,215 5.000%, 7/15/20 - FSA Insured 7/15 at 100.00 AAA 1,327,388
1,430 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,544,901
Bonds, Series 2002A, 5.000%, 10/01/17
1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa2 1,256,910
5.000%, 12/01/15
2,155 Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AA+ 2,329,059
Series 2003B, 5.000%, 5/01/15
1,100 Virginia Beach, Virginia, General Obligation Bonds, 1/16 at 100.00 AA+ 1,203,158
Series 2005, 5.000%, 1/15/20
1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,514,789
Bonds, Series 2001, 5.000%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
33,155 Total Tax Obligation/General 35,968,234
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.6% (19.6% OF TOTAL INVESTMENTS)
Buena Vista Public Recreational Facilities Authority, Virginia,
Lease Revenue Bonds, Golf Course Project, Series 2005A:
335 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 358,339
260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 280,038
2,400 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 2,653,968
Highway Reimbursement Anticipation Notes, Series 2005,
5.000%, 9/28/15
1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AAA 1,445,672
Revenue Bonds, School Facilities Project, Series 2005,
5.000%, 1/01/20 - MBIA Insured
Cumberland County, Virginia, Certificates of Participation,
Series 1997:
1,075 6.200%, 7/15/12 No Opt. Call N/R 1,139,500
1,350 6.375%, 7/15/17 No Opt. Call N/R 1,529,118
500 Dinwiddie County Industrial Development Authority, Virginia, 2/07 at 102.00 N/R 511,115
Lease Revenue Bonds, Dinwiddie County School Facilities,
Series 1997A, 6.000%, 2/01/18
1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 AAA 1,089,580
Lease Revenue Bonds, Series 2004B, 5.125%, 2/15/16 -
MBIA Insured
1,000 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 1,098,830
Lease Revenue Bonds, Joint Public Uses Community Project,
Series 2006, 5.000%, 5/15/18
Fairfax County Economic Development Authority, Virginia, Lease
Revenue Bonds, Laurel Hill Public Facilities Projects, Series
2003:
2,260 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,462,247
2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,321,984
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,660 Front Royal and Warren County Industrial Development 4/14 at 100.00 AAA $ 1,788,949
Authority, Virginia, Lease Revenue Bonds, Series 2004B,
5.000%, 4/01/18 - FSA Insured
1,270 James City County Economic Development Authority, Virginia, 7/15 at 100.00 AA- 1,378,217
Revenue Bonds, County Government Projects, Series 2005,
5.000%, 7/15/19
1,930 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aaa 2,095,613
County Facilities, Series 2005, 5.000%, 6/01/18 -
AMBAC Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 2,108,900
Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Refunding Bonds, Series 2002D:
265 5.250%, 7/01/27 7/12 at 100.00 BBB 281,767
320 5.250%, 7/01/36 7/12 at 100.00 BBB 339,098
1,110 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,139,004
Lease Revenue Bonds, School Facilities, Series 2003B,
4.375%, 8/01/20 - AMBAC Insured
1,600 Stafford County and Staunton Industrial Development 8/16 at 100.00 AAA 1,742,576
Authority, Virginia, Revenue Bonds, Virginia Municipal League
and Virginia Association of Counties Finance Program,
Series 2006A, 5.000%, 8/01/23 - MBIA Insured
1,400 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA 1,514,282
Bonds, Series 2005A, 5.000%, 5/01/22
2,000 Virginia College Building Authority, Educational Facilities Revenue 2/12 at 100.00 AA+ 2,107,740
Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
2,000 Virginia Public School Authority, School Financing Bonds, 8/10 at 101.00 AA+ 2,106,880
1997 Resolution, Series 2000B, 5.000%, 8/01/18
1,625 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 1,783,275
1997 Resolution, Series 2005C, 5.000%, 8/01/17
Virginia Resources Authority, Infrastructure Revenue Bonds,
Pooled Loan Bond Program, Series 2000B:
755 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA 806,793
935 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 997,121
1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,848,019
Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19
2,000 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 2,184,160
U.S. Route 58 Corridor Development Program, Series 2004B,
5.000%, 5/15/15
------------------------------------------------------------------------------------------------------------------------------------
36,295 Total Tax Obligation/Limited 39,112,785
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.1% (9.0% OF TOTAL INVESTMENTS)
1,440 Metropolitan Washington D.C. Airports Authority, Airport 10/16 at 100.00 AAA 1,544,328
System Revenue Bonds, Series 2006, 5.000%, 10/01/36
(WI/DD, Settling 12/06/06) - FGIC Insured (Alternative
Minimum Tax)
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 4,189,800
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
1,000 Norfolk, Virginia, Parking System Revenue Bonds, 2/15 at 100.00 AAA 1,077,360
Series 2005A, 5.000%, 2/01/23 - MBIA Insured
2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 2,899,975
Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 -
FGIC Insured
6,065 Virginia Port Authority, Revenue Bonds, Port Authority Facilities, 7/07 at 101.00 AAA 6,187,330
Series 1997, 5.600%, 7/01/27 - MBIA Insured (Alternative
Minimum Tax)
2,000 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 2,107,580
Bonds, Series 2001A, 5.250%, 8/01/23
------------------------------------------------------------------------------------------------------------------------------------
17,005 Total Transportation 18,006,373
------------------------------------------------------------------------------------------------------------------------------------
43
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.1% (13.1% OF TOTAL INVESTMENTS) (4)
$ 3,500 Alexandria Industrial Development Authority, Virginia, Fixed 10/10 at 101.00 AAA $ 3,830,190
Rate Revenue Bonds, Institute for Defense Analyses,
Series 2000A, 5.900%, 10/01/30 (Pre-refunded 10/01/10) -
AMBAC Insured
750 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA 850,950
Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM)
Fairfax County Water Authority, Virginia, Water Revenue
Refunding Bonds, Series 2002:
925 5.375%, 4/01/19 (Pre-refunded 4/01/12) 4/12 at 100.00 AAA 1,007,066
200 5.000%, 4/01/27 (Pre-refunded 4/01/12) 4/12 at 100.00 AAA 214,126
Greater Richmond Convention Center Authority, Virginia, Hotel
Tax Revenue Bonds, Convention Center Expansion Project, Series
2000:
600 6.125%, 6/15/25 (Pre-refunded 6/15/10) 6/10 at 101.00 AAA 656,070
2,000 6.125%, 6/15/29 (Pre-refunded 6/15/10) 6/10 at 101.00 AAA 2,186,900
2,000 Hampton, Virginia, General Obligation Public Improvement 2/10 at 102.00 AA (4) 2,184,800
Bonds, Series 2000, 6.000%, 2/01/20 (Pre-refunded 2/01/10)
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
375 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (4) 422,749
800 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (4) 905,648
480 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 520,757
Bonds, Series 2002A, 5.250%, 5/01/22 (Pre-refunded 5/01/12)
755 Metropolitan District of Columbia Airports Authority, Virginia, 10/07 at 101.00 AA- (4) 773,769
Airport System Revenue Bonds, Series 1997A,
5.375%, 10/01/23 (Pre-refunded 10/01/07)
530 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 102.00 AAA 557,618
Bonds, Route 895 Connector Toll Road, Series 1998A,
5.500%, 8/15/28 (Pre-refunded 8/15/08)
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,700,250
Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Refunding Bonds, Series 2002D:
735 5.250%, 7/01/27 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB (4) 797,982
880 5.250%, 7/01/36 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB (4) 955,407
1,035 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,081,016
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 2,223,020
Loan Note, Series 1999A, 6.500%, 10/01/24
(Pre-refunded 10/01/10)
1,000 Virginia College Building Authority, Educational Facilities 4/10 at 101.00 A+ (4) 1,085,110
Revenue Bonds, Hampton University, Series 2000,
6.000%, 4/01/20 (Pre-refunded 4/01/10)
500 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 537,900
Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22
(Pre-refunded 10/01/10)
Virginia Resources Authority, Infrastructure Revenue Bonds,
Pooled Loan Bond Program, Series 2000B:
365 5.500%, 5/01/20 (Pre-refunded 5/01/10) - FSA Insured 5/10 at 101.00 Aaa 391,627
2,125 5.500%, 5/01/30 (Pre-refunded 5/01/10) - FSA Insured 5/10 at 101.00 Aaa 2,280,019
------------------------------------------------------------------------------------------------------------------------------------
24,055 Total U.S. Guaranteed 26,162,974
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.6% (7.9% OF TOTAL INVESTMENTS)
Bristol, Virginia, Utility System Revenue Refunding Bonds,
Series 2003:
1,705 5.250%, 7/15/14 - MBIA Insured 7/13 at 100.00 AAA 1,875,125
1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 1,975,824
2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 3,013,678
2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 Baa1 2,809,600
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP,
Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
3,500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/08 at 101.00 AAA 3,584,385
Series 1998A, 5.125%, 1/15/28 - FGIC Insured
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
Richmond, Virginia, Public Utility Revenue Refunding Bonds,
Series 2002:
$ 750 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA $ 788,310
1,700 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,786,836
------------------------------------------------------------------------------------------------------------------------------------
14,730 Total Utilities 15,833,758
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.7% (4.6% OF TOTAL INVESTMENTS)
Fairfax County Water Authority, Virginia, Water Revenue
Refunding Bonds, Series 2002:
105 5.375%, 4/01/19 4/12 at 100.00 AAA 113,943
800 5.000%, 4/01/27 4/12 at 100.00 AAA 841,592
1,770 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,848,818
Refunding Bonds, Series 1999, 5.000%, 5/01/28
1,000 Loudoun County Sanitation Authority, Virginia, Water and 1/15 at 100.00 AA+ 1,075,270
Sewerage System Revenue Bonds, Series 2004,
5.000%, 1/01/26
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,387,434
1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,451,732
2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,454,188
Series 2000, 6.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
8,615 Total Water and Sewer 9,172,977
------------------------------------------------------------------------------------------------------------------------------------
$ 184,505 Total Long-Term Investments (cost $187,293,193) - 144.8% 198,297,211
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,200 Puerto Rico Government Development Bank, Adjustable Refunding Bonds, A-1+ 1,200,000
Variable Rate Demand Obligations, Series 1985, 3.290%, 12/01/15 -
MBIA Insured (6)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $188,493,193) - 145.7% 199,497,211
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 1,266,308
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.6)% (63,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 136,963,519
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The issuer has received a formal adverse determination
from the Internal Revenue Service (the "IRS") regarding
the tax-exempt status of the bonds' coupon payments.
The Fund will continue to treat coupon payments as
tax-exempt income until such time that it is formally
determined that the interest on the bonds should be
treated as taxable.
(6) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
45
Nuveen Virginia Dividend Advantage Municipal Fund (NGB)
Portfolio of
INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.8% (3.2% OF TOTAL INVESTMENTS)
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
$ 65 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 65,855
850 5.400%, 5/15/31 5/11 at 100.00 Baa3 878,322
Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset-Backed Bonds, Series 2005:
550 5.250%, 6/01/19 6/15 at 100.00 BBB 579,871
725 5.500%, 6/01/26 6/15 at 100.00 BBB 773,959
------------------------------------------------------------------------------------------------------------------------------------
2,190 Total Consumer Staples 2,298,007
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.1% (8.1% OF TOTAL INVESTMENTS)
500 Danville Industrial Development Authority, Virginia, Educational 3/11 at 102.00 N/R 520,505
Facilities Revenue Bonds, Averett University, Series 2001,
6.000%, 3/15/22
500 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 536,000
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
850 Prince William County Park Authority, Virginia, Park 10/09 at 101.00 A3 904,111
Facilities Revenue Refunding and Improvement Bonds,
Series 1999, 6.000%, 10/15/28
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999:
160 5.375%, 2/01/19 2/09 at 101.00 BBB- 164,218
320 5.375%, 2/01/29 2/09 at 101.00 BBB- 328,509
280 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 281,652
Horse Center Revenue Refunding Bonds, Series 2001B,
6.125%, 7/15/11
980 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 1,002,030
Horse Center Revenue Refunding Bonds, Series 2001C,
6.850%, 7/15/21
160 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 175,312
Revenue Bonds, Series 2005, 5.000%, 6/01/18
1,325 Virginia College Building Authority, Educational Facilities 9/10 at 100.00 AA+ 1,384,996
Revenue Bonds, Public Higher Education Financing Program,
Series 2000A, 5.000%, 9/01/17
500 Virginia College Building Authority, Educational Facilities 7/08 at 101.00 AA 513,285
Revenue Refunding Bonds, Marymount University,
Series 1998, 5.100%, 7/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
5,575 Total Education and Civic Organizations 5,810,618
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.8% (7.3% OF TOTAL INVESTMENTS)
100 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 110,101
Hospital Revenue Refunding Bonds, Inova Health System,
Series 1993A, 5.000%, 8/15/23
1,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 1,078,950
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25 - RAAI Insured
1,500 Fredericksburg Industrial Development Authority, Virginia, 6/07 at 102.00 AAA 1,541,325
Hospital Facilities Revenue Refunding Bonds, MediCorp
Health System Obligated Group, Series 1996,
5.250%, 6/15/16 - AMBAC Insured
500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 519,765
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 536,305
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
525 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 555,508
Revenue Bonds, Prince William Hospital, Series 2002,
5.250%, 4/01/33
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A $ 867,288
Revenue Refunding and Improvement Bonds, Norton Community
Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,925 Total Health Care 5,209,242
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.3% (2.9% OF TOTAL INVESTMENTS)
1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA 1,041,560
Multifamily Housing Mortgage Revenue Bonds, Arlington
View Terrace Apartments, Series 2001, 5.150%, 11/01/31
(Mandatory put 11/01/19) (Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, Rental Housing 10/10 at 100.00 AA+ 1,041,130
Bonds, Series 2000G, 5.625%, 10/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Housing/Multifamily 2,082,690
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS)
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,043,370
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
600 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA 608,628
Mortgage Bonds, Series 2005C-C2, 4.750%, 10/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,600 Total Housing/Single Family 1,651,998
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.2% (0.1% OF TOTAL INVESTMENTS)
50 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 50,783
Solid Waste Disposal Facility Revenue Refunding Bonds,
USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 10.2% (6.9% OF TOTAL INVESTMENTS)
500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R 531,765
Residential Care Facility Revenue Bonds, Westminster
Canterbury of the Blue Ridge First Mortgage, Series 2001,
6.200%, 1/01/31
350 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 356,104
Mortgage Revenue Bonds, Lucy Corr Village, Series 2005,
5.625%, 12/01/39
500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 512,820
Retirement Center Revenue Bonds, Greenspring Village,
Series 2006A, 4.750%, 10/01/26
350 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 363,710
Residential Care Facility Revenue Bonds, Westminster
Canterbury of Richmond, Series 2006, 5.000%, 10/01/35
700 Industrial Development Authority of the County of 1/17 at 100.00 N/R 728,504
Prince William, Virginia, Residential Care Facility Revenue
Bonds, Westminster at Lake, First Mortgage, Series 2006,
5.125%, 1/01/26
650 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 693,966
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamsburg Landing Inc., Series 2003A,
6.000%, 3/01/23
830 Roanoke Industrial Development Authority, Virginia, 12/16 at 100.00 N/R 838,267
Residential Revenue Bonds, Virginia Lutheran Homes
Incorporated, Series 2006, 5.000%, 12/01/39
350 Suffolk Industrial Development Authority, Virginia, Retirement 9/16 at 100.00 N/R 359,849
Facilities First Mortgage Revenue Bonds, Lake Prince
Center, Series 2006, 5.300%, 9/01/31
350 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 356,290
Care Facility Mortgage Revenue Bonds, Westminster
Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22
175 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 179,202
Residential Care Facility Revenue Bonds, Westminster-
Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
4,755 Total Long-Term Care 4,920,477
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.9% (1.1% OF TOTAL INVESTMENTS)
100 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 101,205
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax) (5)
20 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 B2 20,910
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1999A, 6.550%, 12/01/25
(Alternative Minimum Tax) (5)
47
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS (continued)
$ 220 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 $ 223,258
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (5)
500 Hopewell Industrial Development Authority, Virginia, No Opt. Call CCC+ 512,890
Environmental Improvement Revenue Bonds, Smurfit Stone
Container Corporation, Series 2005, 5.250%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
840 Total Materials 858,263
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.9% (19.4% OF TOTAL INVESTMENTS)
330 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 359,822
5.000%, 6/15/13
600 Arlington County, Virginia, General Obligation Bonds, 8/16 at 100.00 AAA 663,660
Series 2006, 5.000%, 8/01/20
2,000 Chesterfield County, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,091,520
Improvement Bonds, Series 2001, 5.000%, 1/15/21
500 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 553,205
Series 2005, 5.000%, 7/15/16
3,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AAA 3,510,685
Bonds, Series 2000, 5.125%, 1/15/21 - FGIC Insured
700 Loudoun County, Virginia, General Obligation Bonds, 12/16 at 100.00 AAA 769,664
Series 2006, 5.000%, 12/01/25
500 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 549,765
Improvement Bonds, Series 2005B, 5.000%, 6/01/18
845 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 926,036
Series 2004C, 5.000%, 5/01/16
320 Northern Mariana Islands General Obligation Bonds, 6/10 at 100.00 A 338,742
Series 2000A, 6.000%, 6/01/20 - ACA Insured
620 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 682,105
5.000%, 7/15/17 - FSA Insured
400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa2 442,964
5.000%, 12/01/15
400 Virginia Beach, Virginia, General Obligation Bonds, 1/16 at 100.00 AA+ 437,512
Series 2005, 5.000%, 1/15/20
2,425 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 2,577,799
Improvement Bonds, Series 2001, 5.000%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
12,950 Total Tax Obligation/General 13,903,479
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.8% (16.0% OF TOTAL INVESTMENTS)
171 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 174,784
Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22
500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 559,185
Revenue Bonds, Series 2003, 7.500%, 6/01/33
Buena Vista Public Recreational Facilities Authority, Virginia,
Lease Revenue Bonds, Golf Course Project, Series 2005A:
120 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 128,360
95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 102,322
800 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 884,656
Highway Reimbursement Anticipation Notes, Series 2005,
5.000%, 9/28/15
1,000 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AAA 1,075,270
Revenue Bonds, School Facilities Project, Series 2005,
5.000%, 1/01/22 - MBIA Insured
500 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 549,415
Lease Revenue Bonds, Joint Public Uses Community Project,
Series 2006, 5.000%, 5/15/18
580 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aaa 626,446
County Facilities, Series 2005, 5.000%, 6/01/20 -
AMBAC Insured
1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,076,140
Lease Revenue Bonds, School Facilities, Series 2003B,
5.125%, 8/01/23 - AMBAC Insured
600 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AAA 653,466
Virginia, Revenue Bonds, Virginia Municipal League and
Virginia Association of Counties Finance Program, Series 2006A,
5.000%, 8/01/23 - MBIA Insured
960 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB+ 1,056,259
Taxes Loan Note, Series 1999A, 6.375%, 10/01/19
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 500 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA $ 540,815
Bonds, Series 2005A, 5.000%, 5/01/22
500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 526,935
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
350 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 384,846
Prince William County, Special Assessment Bonds,
Series 2003, 6.375%, 3/01/30
2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,129,520
1997 Resolution, Series 2001A, 5.000%, 8/01/19
345 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 378,603
1997 Resolution, Series 2005C, 5.000%, 8/01/17
560 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 611,565
U.S. Route 58 Corridor Development Program, Series 2004B,
5.000%, 5/15/15
------------------------------------------------------------------------------------------------------------------------------------
10,581 Total Tax Obligation/Limited 11,458,587
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.2% (16.2% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Richmond, Virginia, Revenue 7/15 at 100.00 AAA 1,085,650
Bonds, Richmond International Airport, Series 2005A,
5.000%, 7/01/18 - FSA Insured
1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 1,209,360
General Resolution Revenue Refunding Bonds, Series 1998,
5.500%, 7/01/25 - MBIA Insured
3,000 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 3,236,490
System Revenue Bonds, Series 2001A, 5.500%, 10/01/27 -
MBIA Insured (Alternative Minimum Tax)
250 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 263,905
System Revenue Bonds, Series 2001B, 5.000%, 10/01/21 -
MBIA Insured
510 Metropolitan Washington D.C. Airports Authority, Airport 10/16 at 100.00 AAA 546,950
System Revenue Bonds, Series 2006, 5.000%, 10/01/36
(WI/DD, Settling 12/06/06) - FGIC Insured (Alternative
Minimum Tax)
1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 1,571,175
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
500 Norfolk, Virginia, Parking System Revenue Bonds, 2/15 at 100.00 AAA 538,680
Series 2005A, 5.000%, 2/01/23 - MBIA Insured
500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 579,995
Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 -
FGIC Insured
1,225 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,290,893
Bonds, Series 2001A, 5.250%, 8/01/23
1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,294,650
Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,735 Total Transportation 11,617,748
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.9% (11.3% OF TOTAL INVESTMENTS) (4)
1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,104,960
Series 2001, 5.000%, 7/15/21 - FSA Insured (ETM)
425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB (4) 479,115
Hospital Revenue Bonds, Loudoun Hospital Center,
Series 2002A, 6.000%, 6/01/22 (Pre-refunded 6/01/12)
1,000 Loudoun County, Virginia, General Obligation Public 1/11 at 101.00 AAA 1,074,940
Improvement Bonds, Series 2001B, 5.250%, 1/01/20
(Pre-refunded 1/01/11)
200 Pocahontas Parkway Association, Virginia, Senior Lien No Opt. Call AAA 202,430
Revenue Bonds, Route 895 Connector Toll Road,
Series 1998A, 5.250%, 8/15/07 (ETM)
200 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 102.00 AAA 210,422
Bonds, Route 895 Connector Toll Road, Series 1998A,
5.500%, 8/15/28 (Pre-refunded 8/15/08)
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,622,400
Obligation Bonds, Series 2000A, 5.500%, 10/01/32 (ETM)
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,620,150
Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
49
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 415 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 433,451
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
1,300 Richmond, Virginia, General Obligation Refunding and 1/10 at 101.00 AAA 1,373,827
Public Improvement Bonds, Series 1999A, 5.125%, 1/15/24
(Pre-refunded 1/15/10) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,540 Total U.S. Guaranteed 8,121,695
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.5% (2.3% OF TOTAL INVESTMENTS)
1,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 Baa1 1,123,840
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP,
Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/12 at 100.00 AAA 525,540
Series 2002, 5.000%, 1/15/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Utilities 1,649,380
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.3% (2.9% OF TOTAL INVESTMENTS)
2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 2,087,640
Refunding Bonds, Series 1999, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 67,241 Total Investments (cost $67,981,694) - 149.3% 71,720,607
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 331,109
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 48,051,716
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The issuer has received a formal adverse determination
from the Internal Revenue Service (the "IRS") regarding
the tax-exempt status of the bonds' coupon payments.
The Fund will continue to treat coupon payments as
tax-exempt income until such time that it is formally
determined that the interest on the bonds should be
treated as taxable.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
50
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB)
Portfolio of
INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5% (3.1% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset-Backed Bonds, Series 2005:
$ 1,050 5.250%, 6/01/19 6/15 at 100.00 BBB $ 1,107,026
2,700 5.500%, 6/01/26 6/15 at 100.00 BBB 2,882,331
------------------------------------------------------------------------------------------------------------------------------------
3,750 Total Consumer Staples 3,989,357
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.5% (5.1% OF TOTAL INVESTMENTS)
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,052,170
Revenue Bonds, National Wildlife Federation, Series 1999,
5.375%, 9/01/29 - MBIA Insured
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,072,000
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 1,599,825
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.375%, 12/01/21
490 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 501,015
Horse Center Revenue Refunding Bonds, Series 2001C,
6.850%, 7/15/21
275 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 301,317
Revenue Bonds, Series 2005, 5.000%, 6/01/18
2,000 Winchester Industrial Development Authority, Virginia, 10/08 at 102.00 AAA 2,090,740
Educational Facilities First Mortgage Revenue Bonds,
Shenandoah University, Series 1998, 5.250%, 10/01/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,265 Total Education and Civic Organizations 6,617,067
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 17.4% (11.9% OF TOTAL INVESTMENTS)
1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 1,571,820
Hospital Revenue Bonds, Martha Jefferson Hospital,
Series 2002, 5.250%, 10/01/35
3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 3,236,850
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25 - RAAI Insured
675 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 701,683
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
1,000 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,072,610
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
1,155 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,222,117
Hospital Revenue Bonds, Prince William Hospital, Series 2002,
5.250%, 4/01/33
1,000 Medical College of Virginia Hospital Authority, General Revenue 7/08 at 102.00 AAA 1,042,740
Bonds, Series 1998, 5.250%, 7/01/14 - MBIA Insured
1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 1,300,932
Revenue Refunding and Improvement Bonds, Norton
Community Hospital, Series 2001, 6.000%, 12/01/22 -
ACA Insured
1,000 Prince William County Industrial Development Authority, 10/08 at 102.00 Aaa 1,038,890
Virginia, Hospital Facility Revenue Refunding Bonds,
Potomac Hospital Corporation of Prince William, Series 1998,
5.000%, 10/01/18 - FSA Insured
3,915 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 4,229,609
Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,445 Total Health Care 15,417,251
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.4% (6.4% OF TOTAL INVESTMENTS)
7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 7,809,624
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
51
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 500 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA $ 507,190
Mortgage Bonds, Series 2005C-C2, 4.750%, 10/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,985 Total Housing/Single Family 8,316,814
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.2% (6.2% OF TOTAL INVESTMENTS)
165 Albemarle County Industrial Development Authority, 1/12 at 100.00 N/R 175,482
Virginia, Residential Care Facility Revenue Bonds,
Westminster Canterbury of the Blue Ridge First Mortgage,
Series 2001, 6.200%, 1/01/31
650 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 661,336
Mortgage Revenue Bonds, Lucy Corr Village, Series 2005,
5.625%, 12/01/39
500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 512,820
Retirement Center Revenue Bonds, Greenspring Village,
Series 2006A, 4.750%, 10/01/26
600 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 623,502
Residential Care Facility Revenue Bonds, Westminster
Canterbury of Richmond, Series 2006, 5.000%, 10/01/35
1,300 Industrial Development Authority of the County of 1/17 at 100.00 N/R 1,352,936
Prince William, Virginia, Residential Care Facility Revenue
Bonds, Westminster at Lake, First Mortgage, Series 2006,
5.125%, 1/01/26
1,350 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 1,441,314
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamsburg Landing Inc., Series 2003A,
6.000%, 3/01/23
1,670 Roanoke Industrial Development Authority, Virginia, 12/16 at 100.00 N/R 1,686,633
Residential Revenue Bonds, Virginia Lutheran Homes
Incorporated, Series 2006, 5.000%, 12/01/39
650 Suffolk Industrial Development Authority, Virginia, 9/16 at 100.00 N/R 668,291
Retirement Facilities First Mortgage Revenue Bonds,
Lake Prince Center, Series 2006, 5.300%, 9/01/31
650 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 661,681
Care Facility Mortgage Revenue Bonds, Westminster
Canterbury on Chesapeake Bay, Series 2005,
5.000%, 11/01/22
325 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 332,803
Residential Care Facility Revenue Bonds, Westminster-
Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
7,860 Total Long-Term Care 8,116,798
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.3% OF TOTAL INVESTMENTS)
165 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 166,988
Industrial Development Revenue Refunding Bonds,
Nekoosa Packaging Corporation, Series 1998,
5.600%, 12/01/25 (Alternative Minimum Tax) (5)
460 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 466,813
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (5)
1,000 Hopewell Industrial Development Authority, Virginia, No Opt. Call CCC+ 1,025,780
Environmental Improvement Revenue Bonds, Smurfit Stone
Container Corporation, Series 2005, 5.250%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
1,625 Total Materials 1,659,581
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.8% (23.0% OF TOTAL INVESTMENTS)
600 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 654,222
5.000%, 6/15/13
500 Arlington County, Virginia, General Obligation Bonds, 8/16 at 100.00 AAA 553,050
Series 2006, 5.000%, 8/01/20
1,750 Chesapeake, Virginia, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA 1,905,155
5.500%, 12/01/16
1,000 Loudoun County, Virginia, General Obligation Bonds, Series 2006, 12/16 at 100.00 AAA 1,099,520
5.000%, 12/01/25
1,730 Loudoun County, Virginia, General Obligation Public Improvement 11/11 at 101.00 AAA 1,807,417
Bonds, Series 2001C, 4.500%, 11/01/17
95 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 102,216
Bonds, Series 2002A, 5.250%, 5/01/22
1,000 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 1,099,530
Bonds, Series 2005B, 5.000%, 6/01/18
1,840 Newport News, Virginia, General Obligation Bonds, General 7/13 at 100.00 AA 1,980,300
Improvement and Water Projects, Series 2002A,
5.000%, 7/01/20
1,000 Newport News, Virginia, General Obligation Bonds, 11/13 at 100.00 AA 1,068,620
Series 2003B, 5.000%, 11/01/22
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 40 Portsmouth, Virginia, General Obligation Public Utility Refunding 6/08 at 100.00 AAA $ 40,762
Bonds, Series 2001B, 5.000%, 6/01/21 - FGIC Insured
Powhatan County, Virginia, General Obligation Bonds, Series 2001:
660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 AAA 694,822
1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,048,270
1,000 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,081,160
5.000%, 7/15/21 - FSA Insured
Roanoke, Virginia, General Obligation Public Improvement Bonds,
Series 2002A:
2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,591,520
2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,629,313
1,280 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AAA 1,378,650
Bonds, Series 2002B, 5.000%, 10/01/15 - FGIC Insured
(Alternative Minimum Tax)
Salem, Virginia, General Obligation Public Improvement Bonds,
Series 2002:
1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 1,235,066
1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,290,072
1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,354,576
1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,424,455
1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 AAA 1,164,860
6.250%, 2/01/25 - AMBAC Insured
600 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AA+ 656,268
5.000%, 1/15/20
1,500 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,594,515
Bonds, Series 2001, 5.000%, 6/01/19
1,420 Virginia Beach, Virginia, General Obligation Refunding and 3/12 at 100.00 AA+ 1,501,749
Public Improvement Bonds, Series 2002, 5.000%, 3/01/21
------------------------------------------------------------------------------------------------------------------------------------
27,780 Total Tax Obligation/General 29,956,088
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.3% (13.8% OF TOTAL INVESTMENTS)
315 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 321,971
Assessment Bonds, Series 2003A, 6.750%, 3/01/22
1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 1,118,370
Revenue Bonds, Series 2003, 7.500%, 6/01/33
Buena Vista Public Recreational Facilities Authority, Virginia,
Lease Revenue Bonds, Golf Course Project, Series 2005A:
210 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 224,631
165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 177,717
800 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 884,656
Highway Reimbursement Anticipation Notes, Series 2005,
5.000%, 9/28/15
800 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 879,064
Lease Revenue Bonds, Joint Public Uses Community Project,
Series 2006, 5.000%, 5/15/18
1,800 Loudoun County Industrial Development Authority, Virginia, 3/13 at 100.00 AA+ 1,931,022
Lease Revenue Refunding Bonds, Public Facility Project,
Series 2003, 5.000%, 3/01/19
400 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB 425,308
Facilities Revenue Refunding Bonds, Series 2002D,
5.250%, 7/01/27
455 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 485,467
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,076,140
Lease Revenue Bonds, School Facilities, Series 2003B,
5.125%, 8/01/23 - AMBAC Insured
1,000 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AAA 1,089,110
Virginia, Revenue Bonds, Virginia Municipal League and
Virginia Association of Counties Finance Program, Series 2006A,
5.000%, 8/01/23 - MBIA Insured
800 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA 865,304
Revenue Bonds, Series 2005A, 5.000%, 5/01/22
1,790 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 1,886,427
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
53
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS November 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 690 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R $ 758,696
Prince William County, Special Assessment Bonds,
Series 2003, 6.375%, 3/01/30
2,540 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,704,490
1997 Resolution, Series 2001B, 5.000%, 8/01/19
570 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 625,518
1997 Resolution, Series 2005C, 5.000%, 8/01/17
1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,318,332
Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26
1,100 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 1,201,288
U.S. Route 58 Corridor Development Program, Series 2004B,
5.000%, 5/15/15
------------------------------------------------------------------------------------------------------------------------------------
16,700 Total Tax Obligation/Limited 17,973,511
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.5% (3.1% OF TOTAL INVESTMENTS)
1,000 Metropolitan Washington D.C. Airports Authority, Airport 10/12 at 100.00 AAA 1,049,970
System Revenue Bonds, Series 2002A, 5.125%, 10/01/26 -
FGIC Insured (Alternative Minimum Tax)
940 Metropolitan Washington D.C. Airports Authority, Airport 10/16 at 100.00 AAA 1,008,103
System Revenue Bonds, Series 2006, 5.000%, 10/01/36
(WI/DD, Settling 12/06/06) - FGIC Insured (Alternative
Minimum Tax)
1,500 Norfolk, Virginia, Parking System Revenue Bonds, 2/15 at 100.00 AAA 1,616,040
Series 2005A, 5.000%, 2/01/23 - MBIA Insured
300 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 317,859
Bonds, Series 2001A, 5.250%, 8/01/17
------------------------------------------------------------------------------------------------------------------------------------
3,740 Total Transportation 3,991,972
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.9% (11.5% OF TOTAL INVESTMENTS) (4)
1,000 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA 1,134,600
Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM)
195 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 208,773
Refunding Bonds, Series 2002, 5.000%, 4/01/27
(Pre-refunded 4/01/12)
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
250 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (4) 281,833
600 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (4) 679,236
445 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AAA 482,785
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
(Pre-refunded 5/01/12)
300 Pocahontas Parkway Association, Virginia, Senior Lien Revenue No Opt. Call AAA 303,645
Bonds, Route 895 Connector Toll Road, Series 1998A,
5.250%, 8/15/07 (ETM)
325 Pocahontas Parkway Association, Virginia, Senior Lien 8/08 at 102.00 AAA 341,936
Revenue Bonds, Route 895 Connector Toll Road, Series 1998A,
5.500%, 8/15/28 (Pre-refunded 8/15/08)
525 Portsmouth, Virginia, General Obligation Public Utility Refunding 6/08 at 100.00 AAA 536,624
Bonds, Series 2001B, 5.000%, 6/01/21 (Pre-refunded 6/01/08) -
FGIC Insured
2,750 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,970,275
Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
1,100 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB (4) 1,194,259
Facilities Revenue Refunding Bonds, Series 2002D,
5.250%, 7/01/27 (Pre-refunded 7/01/12)
1,345 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 1,469,466
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
1,710 Virginia Transportation Board, Transportation Revenue Bonds, 5/11 at 100.00 AA+ (4) 1,813,558
Northern Virginia Transportation District Program,
Series 2001A, 5.000%, 5/15/26 (Pre-refunded 5/15/11)
Virginia Transportation Board, Transportation Revenue Bonds,
U.S. Route 58 Corridor Development Program, Series 2001B:
1,705 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 AA+ (4) 1,808,255
1,665 5.000%, 5/15/23 (Pre-refunded 5/15/11) 5/11 at 100.00 AA+ (4) 1,765,832
------------------------------------------------------------------------------------------------------------------------------------
13,915 Total U.S. Guaranteed 14,991,077
------------------------------------------------------------------------------------------------------------------------------------
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.3% (4.3% OF TOTAL INVESTMENTS)
$ 2,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 $ 2,247,680
Revenue Bonds, UAE Mecklenburg Cogeneration LP,
Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
3,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,315,750
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,125 Total Utilities 5,563,430
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.2% (10.3% OF TOTAL INVESTMENTS)
805 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 846,852
Refunding Bonds, Series 2002, 5.000%, 4/01/27
Henry County Public Service Authority, Virginia, Water and
Sewerage Revenue Refunding Bonds, Series 2001:
1,000 5.500%, 11/15/17 - FSA Insured No Opt. Call AAA 1,151,970
3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,502,920
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA 1,196,794
1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,260,341
1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,525,371
1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,604,269
2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA 2,356,808
Revenue Bonds, Caroline County Public Improvements
Project, Series 2001, 5.000%, 5/01/32
------------------------------------------------------------------------------------------------------------------------------------
12,350 Total Water and Sewer 13,445,325
------------------------------------------------------------------------------------------------------------------------------------
$ 121,540 Total Investments (cost $122,330,198) - 146.8% 130,038,271
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 572,730
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.4)% (42,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 88,611,001
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The issuer has received a formal adverse determination
from the Internal Revenue Service (the "IRS") regarding
the tax-exempt status of the bonds' coupon payments.
The Fund will continue to treat coupon payments as
tax-exempt income until such time that it is formally
determined that the interest on the bonds should be
treated as taxable.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
55
Statement of
ASSETS AND LIABILITIES November 30, 2006 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $226,062,934, $88,986,449,
$91,244,008 and $114,205,469, respectively) $238,155,602 $93,261,610 $95,636,857 $118,522,950
Cash -- 778,745 -- --
Receivables:
Interest 3,984,160 1,572,745 1,532,908 1,712,479
Investments sold 10,061 496,866 -- 5,061
Other assets 13,712 3,297 842 996
------------------------------------------------------------------------------------------------------------------------------------
Total assets 242,163,535 96,113,263 97,170,607 120,241,486
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 207,973 -- 191,999 36,466
Floating rate obligations 2,800,000 1,133,000 1,133,000 1,400,000
Payable for investments purchased -- -- -- --
Accrued expenses:
Management fees 122,914 29,891 30,166 30,577
Other 47,785 19,925 17,393 24,043
Preferred share dividends payable 28,652 5,920 7,894 6,303
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,207,324 1,188,736 1,380,452 1,497,389
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $159,856,211 $62,924,527 $63,790,155 $ 79,744,097
====================================================================================================================================
Common shares outstanding 10,633,842 4,176,700 4,186,831 5,360,346
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 15.03 $ 15.07 $ 15.24 $ 14.88
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 106,338 $ 41,767 $ 41,868 $ 53,603
Paid-in surplus 147,703,070 59,264,027 59,399,717 75,655,769
Undistributed (Over-distribution of) net investment income 151,171 (12,612) 83,807 (97,500)
Accumulated net realized gain (loss) from investments and
derivative transactions (197,036) (643,816) (128,086) (185,256)
Net unrealized appreciation (depreciation) of investments 12,092,668 4,275,161 4,392,849 4,317,481
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $159,856,211 $62,924,527 $63,790,155 $ 79,744,097
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
56
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $188,493,193, $67,981,694
and $122,330,198, respectively) $199,497,211 $71,720,607 $130,038,271
Cash -- -- --
Receivables:
Interest 3,083,912 1,067,669 1,732,544
Investments sold 5,000 -- --
Other assets 15,327 3,186 1,844
------------------------------------------------------------------------------------------------------------------------------------
Total assets 202,601,450 72,791,462 131,772,659
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 145,906 157,345 102,761
Floating rate obligations -- -- --
Payable for investments purchased 1,523,506 539,575 994,511
Accrued expenses:
Management fees 103,510 22,700 35,747
Other 35,088 18,416 18,977
Preferred share dividends payable 29,921 1,710 9,662
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,837,931 739,746 1,161,658
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $136,963,519 $48,051,716 $ 88,611,001
====================================================================================================================================
Common shares outstanding 8,917,736 3,129,032 5,722,392
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 15.36 $ 15.36 $ 15.48
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 89,177 $ 31,290 $ 57,224
Paid-in surplus 125,552,722 44,375,391 81,218,087
Undistributed (Over-distribution of) net investment income 230,245 6,672 768
Accumulated net realized gain (loss) from investments and
derivative transactions 87,357 (100,550) (373,151)
Net unrealized appreciation (depreciation) of investments 11,004,018 3,738,913 7,708,073
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $136,963,519 $48,051,716 $ 88,611,001
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
57
Statement of
OPERATIONS Six Months Ended November 30, 2006 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $5,635,760 $2,254,459 $2,225,590 $2,633,450
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 742,984 298,274 301,161 372,576
Preferred shares - auction fees 99,146 40,110 40,110 48,883
Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014 5,014
Shareholders' servicing agent fees and expenses 11,375 977 569 508
Interest expense and fees 4,367 1,767 1,767 2,183
Custodian's fees and expenses 53,489 17,320 18,794 18,332
Trustees' fees and expenses 3,060 1,197 1,163 1,528
Professional fees 9,852 6,660 7,103 7,913
Shareholders' reports - printing and mailing expenses 20,520 7,680 8,447 9,283
Stock exchange listing fees 4,963 178 178 229
Investor relations expense 16,926 6,328 6,478 8,040
Other expenses 10,151 7,709 7,912 7,412
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 986,860 393,214 398,696 481,901
Custodian fee credit (11,786) (5,965) (6,550) (7,249)
Expense reimbursement -- (117,112) (133,949) (187,245)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 975,074 270,137 258,197 287,407
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,660,686 1,984,322 1,967,393 2,346,043
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 128,346 101,335 17,494 56,940
Net realized gain (loss) from forward swaps -- -- -- 33,256
Change in net unrealized appreciation (depreciation)
of investments 5,977,199 2,045,311 2,070,596 3,069,241
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- (211,923)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 6,105,545 2,146,646 2,088,090 2,947,514
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,171,295) (471,362) (464,618) (573,692)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,171,295) (471,362) (464,618) (573,692)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $9,594,936 $3,659,606 $3,590,865 $4,719,865
====================================================================================================================================
See accompanying notes to financial statements.
58
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 4,703,384 $1,717,135 $3,077,360
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 626,665 226,832 410,689
Preferred shares - auction fees 79,969 30,082 52,644
Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014
Shareholders' servicing agent fees and expenses 8,083 461 557
Interest expense and fees -- -- --
Custodian's fees and expenses 32,986 15,406 20,595
Trustees' fees and expenses 2,504 950 1,915
Professional fees 8,739 6,148 7,080
Shareholders' reports - printing and mailing expenses 16,539 6,656 9,918
Stock exchange listing fees 4,977 133 244
Investor relations expense 14,060 4,740 8,407
Other expenses 8,482 7,887 8,434
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 813,031 304,309 525,497
Custodian fee credit (9,621) (3,165) (4,349)
Expense reimbursement -- (89,061) (193,609)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 803,410 212,083 327,539
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,899,974 1,505,052 2,749,821
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (141,795) (29,112) (116,887)
Net realized gain (loss) from forward swaps -- -- --
Change in net unrealized appreciation (depreciation)
of investments 4,630,860 1,540,989 2,926,013
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 4,489,065 1,511,877 2,809,126
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,015,415) (373,509) (681,588)
From accumulated net realized gains -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,015,415) (373,509) (681,588)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 7,373,624 $2,643,420 $4,877,359
====================================================================================================================================
See accompanying notes to financial statements.
59
Statement of
CHANGES IN NET ASSETS (Unaudited)
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/06 5/31/06 11/30/06 5/31/06 11/30/06 5/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,660,686 $ 9,509,021 $ 1,984,322 $ 3,981,268 $ 1,967,393 $ 3,928,931
Net realized gain (loss) from
investments 128,346 83,005 101,335 (25,376) 17,494 (1,124)
Net realized gain (loss) from
forward swaps -- -- -- (62,612) -- (77,385)
Net realized gain (loss) from futures -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments 5,977,199 (6,030,163) 2,045,311 (2,009,294) 2,070,596 (2,456,188)
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- 64,747 -- 98,762
Distributions to
Preferred Shareholders:
From net investment income (1,171,295) (1,920,310) (471,362) (790,032) (464,618) (772,031)
From accumulated net
realized gains -- (31,400) -- -- -- (14,225)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 9,594,936 1,610,153 3,659,606 1,158,701 3,590,865 706,740
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,604,501) (8,311,346) (1,578,014) (3,532,953) (1,606,958) (3,484,393)
From accumulated net realized gains -- (260,035) -- -- -- (115,219)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (3,604,501) (8,571,381) (1,578,014) (3,532,953) (1,606,958) (3,599,612)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Offering costs adjustments -- -- -- -- -- --
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions 31,919 298,649 80,989 84,704 80,034 119,407
Preferred shares offering costs
adjustments -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 31,919 298,649 80,989 84,704 80,034 119,407
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares 6,022,354 (6,662,579) 2,162,581 (2,289,548) 2,063,941 (2,773,465)
Net assets applicable to Common
shares at the beginning
of period 153,833,857 160,496,436 60,761,946 63,051,494 61,726,214 64,499,679
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $159,856,211 $153,833,857 $62,924,527 $60,761,946 $63,790,155 $61,726,214
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 151,171 $ 266,281 $ (12,612) $ 52,442 $ 83,807 $ 187,990
====================================================================================================================================
See accompanying notes to financial statements.
60
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/06 5/31/06 11/30/06 5/31/06 11/30/06 5/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,346,043 $ 4,610,127 $ 3,899,974 $ 7,868,441 $ 1,505,052 $ 3,037,231
Net realized gain (loss) from
investments 56,940 163,785 (141,795) 1,639,045 (29,112) 255,078
Net realized gain (loss)
from forward swaps 33,256 (75,241) -- -- -- --
Net realized gain (loss)
from futures -- (156) -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 3,069,241 (2,948,764) 4,630,860 (7,073,360) 1,540,989 (1,918,503)
Change in net unrealized
appreciation (depreciation)
of forward swaps (211,923) 406,799 -- -- -- --
Distributions to
Preferred Shareholders:
From net investment income (573,692) (978,804) (1,015,415) (1,304,947) (373,509) (541,517)
From accumulated
net realized gains -- -- -- (231,433) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 4,719,865 1,177,746 7,373,624 897,746 2,643,420 832,289
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,784,995) (3,826,714) (3,155,514) (7,081,332) (1,257,476) (2,732,873)
From accumulated net realized gains -- -- -- (2,160,808) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,784,995) (3,826,714) (3,155,514) (9,242,140) (1,257,476) (2,732,873)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Offering costs adjustments -- -- -- -- -- --
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- 15,363 118,911 630,496 40,261 52,481
Preferred shares offering costs
adjustments -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions -- 15,363 118,911 630,496 40,261 52,481
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,934,870 (2,633,605) 4,337,021 (7,713,898) 1,426,205 (1,848,103)
Net assets applicable to Common
shares at the beginning
of period 76,809,227 79,442,832 132,626,498 140,340,396 46,625,511 48,473,614
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $79,744,097 $76,809,227 $136,963,519 $132,626,498 $48,051,716 $46,625,511
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (97,500) $ (84,856) $ 230,245 $ 501,200 $ 6,672 $ 132,605
====================================================================================================================================
See accompanying notes to financial statements.
61
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
----------------------------
SIX MONTHS YEAR
ENDED ENDED
11/30/06 5/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,749,821 $ 5,449,719
Net realized gain (loss) from
investments (116,887) 147,265
Net realized gain (loss) from forward swaps -- (161,404)
Net realized gain (loss) from futures -- --
Change in net unrealized appreciation
(depreciation) of investments 2,926,013 (3,264,225)
Change in net unrealized appreciation
(depreciation) of forward swaps -- 216,228
Distributions to Preferred Shareholders:
From net investment income (681,588) (1,029,859)
From accumulated net realized gains -- (42,756)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 4,877,359 1,314,968
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,230,988) (4,841,986)
From accumulated net realized gains -- (380,508)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,230,988) (5,222,494)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Offering costs adjustments -- 10,292
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions 77,624 148,139
Preferred shares offering costs
adjustments -- 10,038
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 77,624 168,469
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,723,995 (3,739,057)
Net assets applicable to Common
shares at the beginning of period 85,887,006 89,626,063
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $88,611,001 $85,887,006
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 768 $ 163,523
====================================================================================================================================
See accompanying notes to financial statements.
62
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen Maryland Premium Income Municipal Fund
(NMY), Nuveen Maryland Dividend Advantage Municipal Fund (NFM), Nuveen Maryland
Dividend Advantage Municipal Fund 2 (NZR), Nuveen Maryland Dividend Advantage
Municipal Fund 3 (NWI), Nuveen Virginia Premium Income Municipal Fund (NPV),
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) and Nuveen Virginia
Dividend Advantage Municipal Fund 2 (NNB). Common shares of Maryland Premium
Income (NMY) and Virginia Premium Income (NPV) are traded on the New York Stock
Exchange while Common shares of Maryland Dividend Advantage (NFM), Maryland
Dividend Advantage 2 (NZR), Maryland Dividend Advantage 3 (NWI), Virginia
Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) are traded on
the American Stock Exchange. The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service may establish fair value based on yields or
prices of municipal bonds of comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities dealers, evaluations of
anticipated cash flows or collateral and general market conditions. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Trustees. Futures contracts are valued using
the closing settlement price, or, in the absence of such a price, at the mean of
the bid and asked prices. If the pricing service is unable to supply a price for
a municipal bond, forward swap contract or futures contract, each Fund may use a
market price or fair market value quote provided by a major broker/dealer in
such investments. If it is determined that the market price or fair market value
for an investment is unavailable or inappropriate, the Board of Trustees of the
Funds, or its designee, may establish a fair value for the investment.
Exchange-listed securities are generally valued at the last sales price on the
securities exchange on which such securities are primarily traded. Securities
traded on a securities exchange for which there are no transactions on a given
day or securities not listed on a securities exchange are valued at the mean of
the closing bid and asked prices. Securities traded on Nasdaq are valued at the
Nasdaq Official Closing Price. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term investments are
valued at amortized cost, which approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At November 30, 2006,
Virginia Premium Income (NPV), Virginia Dividend Advantage (NGB) and Virginia
Dividend Advantage 2 (NNB) had outstanding when-issued/delayed delivery purchase
commitments of $1,523,506, $539,575 and $994,511, respectively. There were no
such outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
63
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- 1,280 -- --
Series T -- -- -- 1,560
Series W 1,404 -- -- --
Series TH 1,760 -- -- --
Series F -- -- 1,280 --
---------------------------------------------------------------------------------------------------------
Total 3,164 1,280 1,280 1,560
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- -- 1,680
Series T 832 -- --
Series W -- 960 --
Series TH 1,720 -- --
Series F -- -- --
---------------------------------------------------------------------------------------------------------
Total 2,552 960 1,680
=========================================================================================================
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
64
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investments in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense and fees" in the Statement of Operations.
During the six months ended November 30, 2006, Maryland Premium Income (NMY),
Maryland Dividend Advantage (NFM), Maryland Dividend Advantage 2 (NZR) and
Maryland Dividend Advantage 3 (NWI) invested in externally deposited inverse
floaters and/or self-deposited inverse floaters. Virginia Premium Income (NPV),
Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) did
not invest in any such instruments during the six months ended November 30,
2006.
The average floating rate obligations outstanding and average annual interest
rate related to self-deposited inverse floaters during the six months ended
November 30, 2006, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
---------------------------------------------------------------------------------------------------------
Average floating rate obligations $228,261 $92,364 $92,364 $114,130
Average annual interest rate 3.80% 3.80% 3.80% 3.80%
=========================================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. At November 30, 2006, the
Funds did not have any forward swap contracts outstanding.
Futures Contracts
The Funds are authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is noted in the
Statement of Assets and Liabilities. Additionally, the Statement of Assets and
Liabilities reflects a receivable or payable for the variation margin when
applicable. As of November 30, 2006, there were no outstanding futures contracts
in any of the Funds.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
65
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
------------------------ ------------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/06 5/31/06 11/30/06 5/31/06 11/30/06 5/31/06
-----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due
to reinvestment
of distributions 2,140 19,420 5,121 5,298 5,063 7,521
=================================================================================================================
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
----------------------- ----------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/06 5/31/06 11/30/06 5/31/06 11/30/06 5/31/06
-----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due
to reinvestment
of distributions -- 1,071 7,806 38,319 2,408 3,038
=================================================================================================================
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-----------------------
SIX MONTHS YEAR
ENDED ENDED
11/30/06 5/31/06
-----------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to reinvestment
of distributions 4,827 8,839
=================================================================================================================
66
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended November 30, 2006, were
as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------------------------------------
Purchases $18,348,804 $ 7,870,168 $6,477,111 $ 8,140,950
Sales and maturities 15,132,002 7,421,379 4,706,048 6,077,889
==============================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------------------------------------
Purchases $8,592,834 $5,164,702 $8,655,661
Sales and maturities 7,705,934 4,658,005 7,311,093
==============================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No. 140. To
the extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their Federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At November 30, 2006, the cost of investments was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------------------------------------
Cost of investments $223,025,180 $87,913,169 $90,156,535 $112,893,720
==============================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------------------------------------
Cost of investments $188,203,063 $67,946,526 $122,343,252
==============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2006, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,481,480 $4,326,658 $4,444,025 $4,424,556
Depreciation (151,051) (111,139) (96,625) (195,323)
--------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $12,330,429 $4,215,519 $4,347,400 $4,229,233
==============================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,302,549 $3,774,403 $7,798,292
Depreciation (8,401) (322) (103,273)
--------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $11,294,148 $3,774,081 $7,695,019
==============================================================================================================
67
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at May 31, 2006, the Funds' last tax year end,
were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $611,838 $310,415 $423,460 $209,736
Undistributed net ordinary income ** -- -- -- 787
Undistributed net long-term capital gains -- -- -- --
==============================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $811,454 $338,785 $496,256
Undistributed net ordinary income ** -- 2,254 --
Undistributed net long-term capital gains 229,152 -- --
==============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 1, 2006, paid on June 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
May 31, 2006, was designated for purposes of the dividends paid deduction as
follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,253,086 $4,350,733 $4,281,497 $4,833,094
Distributions from net ordinary income ** 82,432 -- 641 --
Distributions from net long-term capital gains 291,303 -- 114,999 --
==============================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $8,481,521 $3,279,786 $5,886,854
Distributions from net ordinary income ** -- -- 2,260
Distributions from net long-term capital gains 2,392,241 -- 354,292
==============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
68
At May 31, 2006, the Funds' last tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
MARYLAND MARYLAND MARYLAND VIRGINIA
DIVIDEND DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE
(NFM) (NZR) (NWI) (NGB)
-----------------------------------------------------------------------------------------------------------
Expiration year:
2009 $ 7,580 $ -- $ -- $ --
2010 37,159 -- -- --
2011 -- -- -- --
2012 430,282 -- -- 71,775
2013 15,613 -- 28,210 --
2014 62,054 35,791 130,041 --
-----------------------------------------------------------------------------------------------------------
Total $552,688 $35,791 $158,251 $71,775
===========================================================================================================
The following Funds elected to defer net realized losses from investments
incurred from November 1, 2005 through May 31, 2006 ("post-October losses") in
accordance with Federal income tax regulations. Post-October losses were treated
as having arisen on the first day of the current fiscal year:
MARYLAND MARYLAND MARYLAND VIRGINIA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 2
(NMY) (NFM) (NZR) (NNB)
-----------------------------------------------------------------------------------------------------------
$204,066 $95,072 $17,928 $169,715
===========================================================================================================
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., ("Nuveen"), and a specific fund-level component, based only
on the amount of assets within each individual fund. This pricing structure
enables Nuveen fund shareholders to benefit from growth in the assets within
each individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
AVERAGE DAILY NET ASSETS MARYLAND PREMIUM INCOME (NMY)
(INCLUDING NET ASSETS VIRGINIA PREMIUM INCOME (NPV)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
MARYLAND DIVIDEND ADVANTAGE (NFM)
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
AVERAGE DAILY NET ASSETS VIRGINIA DIVIDEND ADVANTAGE (NGB)
(INCLUDING NET ASSETS VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
69
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of November 30, 2006, the complex-level fee rate was .1845%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Trustees has
adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
For the first ten years of Maryland Dividend Advantage's (NFM) and Virginia
Dividend Advantage's (NGB) operations, the Adviser has agreed to reimburse the
Funds, as a percentage of average daily net assets (including net assets
attributable to Preferred shares), for fees and expenses in the amounts and for
the time periods set forth below:
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage (NFM) and
Virginia Dividend Advantage (NGB) for any portion of its fees and expenses
beyond January 31, 2011.
70
For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for
any portion of its fees and expenses beyond September 30, 2011.
For the first eight years of Maryland Dividend Advantage 3's (NWI) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for
any portion of its fees and expenses beyond September 30, 2010.
For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for
any portion of its fees and expenses beyond November 30, 2011.
71
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of November 30, 2006, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 29, 2006, to shareholders of
record on December 15, 2006, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------------------------------------
Dividend per share $.0550 $.0615 $.0640 $.0555
==============================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------------------------------------
Dividend per share $.0590 $.0655 $.0650
==============================================================================================================
At the same time, the following Funds declared capital gains and/or ordinary
income distributions as follows:
MARYLAND VIRGINIA
DIVIDEND PREMIUM
ADVANTAGE 2 INCOME
(NZR) (NPV)
--------------------------------------------------------------------------------------------------------------
Capital gains distributions per share $ -- $.0215
Ordinary income distributions per share* .0014 --
==============================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
72
Financial
HIGHLIGHTS (Unaudited)
73
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) $14.47 $ .44 $ .57 $(.11) $ -- $ .90 $(.34) $ -- $(.34)
2006 15.12 .89 (.56) (.18) -- .15 (.78) (.02) (.80)
2005 14.28 .92 .92 (.10) -- 1.74 (.90) -- (.90)
2004 15.10 .96 (.81) (.06) -- .09 (.91) -- (.91)
2003 14.04 1.02 1.00 (.07) -- 1.95 (.89) -- (.89)
2002 13.83 1.03 .14 (.13) -- 1.04 (.83) -- (.83)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) 14.57 .48 .51 (.11) -- .88 (.38) -- (.38)
2006 15.13 .95 (.47) (.19) -- .29 (.85) -- (.85)
2005 14.43 .98 .75 (.10) -- 1.63 (.93) -- (.93)
2004 15.47 1.01 (1.07) (.05) -- (.11) (.93) -- (.93)
2003 14.18 1.04 1.18 (.08) -- 2.14 (.86) -- (.86)
2002 13.90 1.04 .22 (.14) -- 1.12 (.84) -- (.84)
====================================================================================================================================
Total Returns
---------------------
Offering Based on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
======================================================================================
MARYLAND PREMIUM
INCOME (NMY)
--------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) $ -- $15.03 $14.64 3.18% 6.28%
2006 -- 14.47 14.52 (2.94) 1.08
2005 -- 15.12 15.78 15.64 12.52
2004 -- 14.28 14.45 (10.77) .64
2003 -- 15.10 17.15 15.22 14.33
2002 -- 14.04 15.73 4.77 7.71
MARYLAND DIVIDEND
ADVANTAGE (NFM)
--------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) -- 15.07 15.78 6.38 6.10
2006 -- 14.57 15.19 2.51 1.95
2005 -- 15.13 15.63 6.22 11.60
2004 -- 14.43 15.62 2.99 (.69)
2003 .01 15.47 16.08 9.98 15.55
2002 -- 14.18 15.44 1.98 8.21
======================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) $159,856 1.27%* 1.26%* 5.95%* 1.25%* 1.24%* 5.96%* 6%
2006 153,834 1.23 1.23 6.05 1.21 1.21 6.07 13
2005 160,496 1.24 1.24 6.22 1.23 1.23 6.22 10
2004 151,107 1.24 1.24 6.54 1.23 1.23 6.55 16
2003 159,415 1.26 1.26 7.00 1.25 1.25 7.01 16
2002 147,795 1.32 1.32 7.33 1.31 1.31 7.34 13
MARYLAND DIVIDEND
ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) 62,925 1.28* 1.27* 6.04* .88* .87* 6.44* 8
2006 60,762 1.26 1.26 5.99 .81 .81 6.44 14
2005 63,051 1.26 1.26 6.11 .79 .79 6.57 11
2004 60,041 1.24 1.24 6.34 .78 .78 6.80 10
2003 64,338 1.26 1.26 6.54 .79 .79 7.01 12
2002 58,925 1.35 1.35 6.81 .82 .82 7.34 36
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
MARYLAND PREMIUM
INCOME (NMY)
--------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) $79,100 $25,000 $75,523 $2,800 $86,342
2006 79,100 25,000 73,620 -- --
2005 79,100 25,000 75,726 -- --
2004 79,100 25,000 72,758 -- --
2003 79,100 25,000 75,384 -- --
2002 79,100 25,000 71,712 -- --
MARYLAND DIVIDEND
ADVANTAGE (NFM)
--------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) 32,000 25,000 74,160 1,133 84,782
2006 32,000 25,000 72,470 -- --
2005 32,000 25,000 74,259 -- --
2004 32,000 25,000 71,907 -- --
2003 32,000 25,000 75,264 -- --
2002 32,000 25,000 71,035 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2006.
See accompanying notes to financial statements.
74-75 spread
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(d) $14.76 $.47 $ .50 $ (.11) -- $ .86 $(.38) $ -- $(.38)
2006 15.45 .94 (.59) (.18) -- .17 (.83) (.03) (.86)
2005 14.64 .94 .90 (.09) -- 1.75 (.88) (.06) (.94)
2004 15.71 .96 (1.08) (.06) -- (.18) (.87) (.02) (.89)
2003 14.01 .97 1.62 (.09) -- 2.50 (.81) -- (.81)
2002(b) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46)
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(d) 14.33 .44 .55 (.11) -- .88 (.33) -- (.33)
2006 14.82 .86 (.46) (.18) -- .22 (.71) -- (.71)
2005 13.88 .86 .97 (.10) -- 1.73 (.78) (.01) (.79)
2004 14.89 .87 (1.03) (.06) -- (.22) (.79) -- (.79)
2003(c) 14.33 .52 .75 (.05) -- 1.22 (.46) -- (.46)
====================================================================================================================================
Total Returns
---------------------
Offering Based on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===================================================================================
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
-----------------------------------------------------------------------------------
Year Ended 5/31:
2007(d) $ -- $15.24 $16.10 11.72% 5.93%
2006 -- 14.76 14.76 1.13 1.14
2005 -- 15.45 15.41 14.71 12.22
2004 -- 14.64 14.28 (2.90) (1.16)
2003 .01 15.71 15.60 12.71 18.39
2002(b) (.15) 14.01 14.61 .52 1.01
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
-----------------------------------------------------------------------------------
Year Ended 5/31:
2007(d) -- 14.88 14.49 7.10 6.23
2006 -- 14.33 13.85 1.09 1.55
2005 -- 14.82 14.40 14.98 12.67
2004 -- 13.88 13.24 (5.97) (1.51)
2003(c) (.20) 14.89 14.90 2.53 7.31
===================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(d) $63,790 1.28%* 1.27%* 5.84%* .83%* .82%* 6.29%* 5%
2006 61,726 1.25 1.25 5.76 .77 .77 6.23 15
2005 64,500 1.23 1.23 5.74 .77 .77 6.20 10
2004 61,064 1.24 1.24 5.90 .78 .78 6.36 11
2003 65,490 1.26 1.26 6.07 .80 .80 6.53 12
2002(b) 58,370 1.22* 1.22* 5.55* .79* .79* 5.99* 21
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(d) 79,744 1.24* 1.23* 5.52* .74* .73* 6.02* 5
2006 76,809 1.23 1.23 5.41 .73 .73 5.91 14
2005 79,443 1.23 1.23 5.40 .74 .74 5.89 12
2004 74,369 1.22 1.22 5.59 .73 .73 6.08 15
2003(c) 79,700 1.18* 1.18* 5.01* .70* .70* 5.50* 13
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
--------------------------------------------------------------------------------
Year Ended 5/31:
2007(d) $32,000 $25,000 $74,836 $1,133 $85,546
2006 32,000 25,000 73,224 -- --
2005 32,000 25,000 75,390 -- --
2004 32,000 25,000 72,706 -- --
2003 32,000 25,000 76,164 -- --
2002(b) 32,000 25,000 70,601 -- --
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
--------------------------------------------------------------------------------
Year Ended 5/31:
2007(d) 39,000 25,000 76,118 1,400 85,817
2006 39,000 25,000 74,237 -- --
2005 39,000 25,000 75,925 -- --
2004 39,000 25,000 72,672 -- --
2003(c) 39,000 25,000 76,090 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the period September 25, 2001 (commencement of operations) through May
31, 2002.
(c) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
(d) For the six months ended November 30, 2006.
See accompanying notes to financial statements.
76-77 spread
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-----------------------------------------------------------------------------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) $14.89 $ .44 $ .49 $(.11) $ -- $ .82 $(.35) $ -- $ (.35)
2006 15.82 .88 (.59) (.15) (.03) .11 (.80) (.24) (1.04)
2005 14.95 .93 .93 (.09) -- 1.77 (.90) -- (.90)
2004 15.93 .97 (.99) (.05) -- (.07) (.91) -- (.91)
2003 14.69 1.00 1.21 (.07) -- 2.14 (.90) -- (.90)
2002 14.59 1.04 .03 (.11) -- .96 (.86) -- (.86)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) 14.91 .48 .49 (.12) -- .85 (.40) -- (.40)
2006 15.52 .97 (.54) (.17) -- .26 (.87) -- (.87)
2005 14.42 .99 1.13 (.09) -- 2.03 (.93) -- (.93)
2004 15.43 1.02 (1.05) (.05) -- (.08) (.93) -- (.93)
2003 14.23 1.02 1.10 (.07) -- 2.05 (.86) -- (.86)
2002 13.87 1.02 .32 (.13) -- 1.21 (.85) -- (.85)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) 15.02 .48 .49 (.12) -- .85 (.39) -- (.39)
2006 15.70 .95 (.52) (.18) (.01) .24 (.85) (.07) (.92)
2005 14.79 .96 1.13 (.09) (.01) 1.99 (.89) (.19) (1.08)
2004 16.02 .99 (1.22) (.06) -- (.29) (.89) (.05) (.94)
2003 14.31 .97 1.69 (.08) -- 2.58 (.84) (.03) (.87)
2002(a) 14.33 .41 .09 (.04) -- .46 (.35) -- (.35)
====================================================================================================================================
Total Returns
---------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=======================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
---------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) $ -- $15.36 $15.30 5.06% 5.60%
2006 -- 14.89 14.91 (9.98) 0.71
2005 -- 15.82 17.65 24.54 12.13
2004 -- 14.95 14.95 (10.70) (.42)
2003 -- 15.93 17.67 15.27 14.99
2002 -- 14.69 16.17 6.64 6.71
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
---------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) -- 15.36 17.65 5.71 5.79
2006 -- 14.91 17.10 5.86 1.74
2005 -- 15.52 16.99 19.11 14.46
2004 -- 14.42 15.07 (8.11) (.50)
2003 .01 15.43 17.35 21.45 14.92
2002 -- 14.23 15.09 5.10 8.89
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
---------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) -- 15.48 16.29 1.77 5.73
2006 -- 15.02 16.40 3.45 1.53
2005 -- 15.70 16.74 21.96 13.75
2004 -- 14.79 14.65 (3.81) (1.84)
2003 -- 16.02 16.14 14.58 18.51
2002(a) (.13) 14.31 14.90 1.71 2.30
=======================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- -----------------------------
Ending
Net
Assets
Applicable Net Portfolio
to Common Investment Investment Turnover
Shares (000) Expenses++ Income++ Expenses++ Income++ Rate
==============================================================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) $136,964 1.21%* 5.79%* 1.20%* 5.81%* 4%
2006 132,626 1.19 5.75 1.17 5.77 16
2005 140,340 1.20 5.98 1.19 5.99 17
2004 132,122 1.20 6.33 1.19 6.34 14
2003 140,223 1.25 6.61 1.24 6.62 17
2002 128,655 1.28 7.01 1.27 7.02 14
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) 48,052 1.29* 5.99* .90* 6.38* 7
2006 46,626 1.26 5.93 .82 6.38 16
2005 48,474 1.28 6.13 .81 6.59 15
2004 44,988 1.24 6.39 .77 6.86 7
2003 48,102 1.28 6.45 .81 6.92 10
2002 44,308 1.37 6.68 .84 7.21 21
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2007(b) 88,611 1.21* 5.87* .75* 6.32* 6
2006 85,887 1.19 5.75 .73 6.21 10
2005 89,626 1.19 5.74 .74 6.19 13
2004 84,248 1.20 5.99 .74 6.44 16
2003 91,065 1.21 6.01 .75 6.47 15
2002(a) 81,325 1.14* 5.00* .70* 5.44* 12
==============================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=============================================================
VIRGINIA PREMIUM
INCOME (NPV)
-------------------------------------------------------------
Year Ended 5/31:
2007(b) $63,800 $25,000 $78,669
2006 63,800 25,000 76,970
2005 63,800 25,000 79,992
2004 63,800 25,000 76,772
2003 63,800 25,000 79,946
2002 63,800 25,000 75,413
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
-------------------------------------------------------------
Year Ended 5/31:
2007(b) 24,000 25,000 75,054
2006 24,000 25,000 73,568
2005 24,000 25,000 75,493
2004 24,000 25,000 71,863
2003 24,000 25,000 75,106
2002 24,000 25,000 71,154
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-------------------------------------------------------------
Year Ended 5/31:
2007(b) 42,000 25,000 77,745
2006 42,000 25,000 76,123
2005 42,000 25,000 78,349
2004 42,000 25,000 75,148
2003 42,000 25,000 79,206
2002(a) 42,000 25,000 73,408
=============================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period November 15, 2001 (commencement of operations) through May
31, 2002.
(b) For the six months ended November 30, 2006.
See accompanying notes to financial statements.
78-79 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
80
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the "Plan") as further described below effective with the
close of business on March 1, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares
on the open market while shares are trading below net asset value, but the
Fund's shares subsequently trade at or above their net asset value before the
Plan Agent is able to complete its purchases, the Plan Agent may cease
open-market purchases and may invest the uninvested portion of the distribution
in newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
81
Notes
82
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com. You may also obtain this and other Fund information directly
from the Securities and Exchange Commission ("SEC"). The SEC may charge a
copying fee for this information. Visit the SEC on-line at http://www.sec.gov or
in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at
1-202-942-8090 for room hours and operation. You may also request Fund
information by sending an e-mail request to publicinfo@sec.gov or by writing to
the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C.
20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
83
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $160 billion in assets, as of December 2006, Nuveen
Investments offers access to a number of different asset classes and investing
solutions through a variety of products. Nuveen Investments markets its
capabilities under four distinct brands: Nuveen, a leader in fixed-income
investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in
growth-style equities; and Symphony, a leading institutional manager of
market-neutral alternative investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-A-1106D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Maryland Dividend Advantage Municipal Fund 3
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: February 8, 2007
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: February 8, 2007
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 8, 2007
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.