Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND
NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND
SEMIANNUAL REPORT/NOVEMBER 30, 1995
Photographic image of man seated at breakfast table with wife standing behind
him.
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Commonly used terms
13 Shareholder meeting report
14 Portfolio of investments
29 Statement of net assets
30 Statement of operations
31 Statement of changes in net assets
33 Notes to financial statements
40 Financial highlights
<PAGE>
Dear shareholder
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
Photographic image of Richard J. Franke, Chairman of the Board
Since the beginning of 1995, we have enjoyed a rebound in the bond markets--a
welcome change from 1994, which was one of the most volatile periods in bond
market history. In fact, 1995 has unfolded as one of the best years for bonds
in a decade. The juxtaposition of these two contrasting periods serves as a
reminder that weathering the ups and downs of the markets is a normal part of
the investment process. We can gain a better perspective on this process if we
remember one of the basic principles of investing: A financial plan that
focuses on your long-term goals can minimize the impact of any short-term
market volatility.
Municipal bond funds continue to be an attractive way to invest for the long
term. Your Fund offers steady tax-free income and diversification across
market sectors. Throughout the past year, we have kept our sights focused on
successfully meeting these objectives: seeking to provide you with a solid
source of current income and enhanced share price relative to the market as a
whole.
As of November 30, 1995, current annual yields on share prices for the funds
covered in this report ranged from 5.73% to 6.10%. To match these yields, an
investor in the 36% federal income tax bracket would have had to earn at least
8.95% on taxable alternatives. Without question, taxable yields at these
levels on investments of comparable quality are difficult to achieve in
today's markets. The effect of state taxes further enhances the after-tax
yield advantage provided by municipal bonds.
Reflecting the rebound in the bond market, each of these funds reported
gains in net asset value over November 30, 1994, as well as substantial
increases in most share prices. The 12-month total returns on net asset value,
reflecting gains plus reinvested dividend income, ranged from 35.89% to
37.60%, which translates to 40.61% to 42.15% on a tax-equivalent basis. These
performance results remind us of the important role that municipal bonds--and
the tax-free income they provide--can play as part of an investment strategy
focused on diversification and long-term performance.
The value and dependability of your municipal bond investments are enhanced
by the fact that you have chosen tax-free exchange-traded funds managed by
Nuveen. We offer a combination of professional management, award-winning
research, and shareholder service that distinguishes Nuveen as a fund manager.
Our portfolio management strategy, which we call value investing, relies on
a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by emphasizing securities that
are underpriced or undervalued by the market. This approach is supported by
the strength of Nuveen Research, which provides the insights and experience to
assist portfolio managers in identifying and selecting bonds with strong
credit quality. Our research professionals continually monitor our holdings in
order to alert portfolio managers concerning changes that may affect quality.
<PAGE>
Nuveen also prides itself on its exceptional service to shareholders.
Through annual and semiannual reports, regular statements, as well as our
toll-free information lines, our communication programs help us stay in touch
with your needs and concerns. We also provide support to financial advisers
across the nation by supplying them with the information they need to answer
your questions and to recommend products to meet your needs.
As you review the following pages detailing the solid performance of your
funds, we trust you will come away with the feeling that these results,
coupled with Nuveen's continued pledge of premium service, add up to a
rewarding investment experience. We look forward to serving your tax-free
investment needs in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
January 16, 1996
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
the bond market recovery and the outlook for 1996.
How has the recovery of the municipal bond market affected Nuveen funds?
The market recovery has helped most Nuveen funds regain some of the share
price they lost during 1994's market. The setback in the bond market in
1994--which goes on record as one of the most volatile periods in decades--was
the first downturn experienced by many Nuveen exchange-traded fund investors,
and some reacted by selling their shares. This, in turn, drove share prices
down even further. Since the beginning of the recovery in early 1995, however,
municipal bond prices have increased, and most Nuveen funds have seen their
prices rise 12% to 15%.
Because of their capital structure, leveraged funds such as the ones covered
in this report experienced greater price declines in 1994 than unleveraged
funds, and they generally responded more quickly to the stabilizing interest
rate environment with recovering prices in 1995.
Why do these funds continue to trade at a discount despite the recovery?
To understand why this is happening, it may be helpful to remember that each
share has two prices: the net asset value (NAV), which represents the
underlying value of the fund, and the share price, which reflects the market's
assessment of the fund.
<PAGE>
Photographic image of Tom Spalding
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
As the market turned around in 1995, net asset values appreciated more
quickly than share prices. This is typical of a market that sometimes takes
time to recognize underlying value balanced against the various factors that
affect share price, such as interest rates, inflation forecasts, the relative
strength of the stock market, and the legislative and tax outlooks. The fact
that gains in NAVs are currently outpacing the rate of change in share prices
means that the market is lagging in recognizing the value currently offered by
municipal bonds.
Nuveen investors should be aware that the net asset values for the funds
covered in this report remain quite strong. For long-term investors, in fact,
the current period may present a buying opportunity, as shares can be
purchased at prices lower than their underlying value--and at a time when the
bond market is strong.
What does Nuveen see as the impact of the flat tax proposals?
We have been closely monitoring the various flat tax proposals currently being
debated in Congress and their implications for tax-free funds. Four major tax
reform proposals are currently under discussion, all with the common goal of
simplifying the federal tax code and increasing incentives for saving and
investment. It is important to note that none of the proposals has gained a
strong consensus and that implementation of any measure that manages to pass
both houses is at least two years away. We believe that some action on the tax
reform front is likely, as federal tax laws are constantly being reevaluated
and revised, although changes of the magnitude outlined in these proposals are
rare.
As we look at the bond market today, we can see some evidence that the
market is already compensating investors for the uncertainty of the tax reform
situation. Yields on municipal bonds are currently at levels equal to 90% or
more of long-term Treasury bond yields, an historically high position; the
typical yield ratio is 80-85%. Current municipal yields are comparable to
taxable yields in the 10% range, providing good value that is difficult to
match.
Once the tax reform issue is resolved, we're confident that municipal
bonds--because of their high credit quality and attractive yields--will
continue to hold a strategic place in the prudent investor's portfolio. The
importance of municipal bonds is enhanced by the integral role they play in
maintaining our way of life in this country. Our cities, counties, and states
will always have a need for financing to build and upgrade projects such as
roads, hospitals, and water treatment systems, and municipal bonds will
continue to be an essential way to match America's long-term needs for capital
improvements with investors' long-term needs for secure income.
What is Nuveen's outlook as we head into 1996?
Inflation remains low, and the economy seems to be expanding at a reasonable
pace. While both of these factors can change and have an impact on the bond
market, the current environment is favorable for bonds. Although the supply of
municipal bonds is down from past years, demand from institutional investors
such as insurance companies was strong in 1995, contributing to the rebound in
municipal prices. If we experience continued slow and steady economic growth,
combined with low inflation and stable interest rates, that should attract
greater numbers of individual investors as well.
<PAGE>
What does Nuveen mean by "value investing"? Where are Nuveen analysts finding
value today?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction that concentrates on identifying
individual bonds with current yields, prices, credit quality, and future
prospects that are exceptionally attractive in relation to other bonds in the
market.
As we search for value in the market today, our analysts continue to assess
investment potential across the entire spectrum of geographical and sector
opportunities. During 1995, we saw many credit upgrades on portfolio holdings,
meaning that our judgments about credit quality have been rewarded. We
currently favor revenue bonds that offer a dedicated revenue stream (such as
those issued for tollways or recycling plants) over general obligation bonds,
which rely on the taxing power of a state or municipality.
<PAGE>
<TABLE>
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND
NPG
Dividend income remained attractive compared with other fixed income
alternatives. The fund adjusted its monthly level twice during the year,
seeking a level in line with its earnings.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/94 $0.0620
1/95 $0.0620
2/95 $0.0580
3/95 $0.0580
4/95 $0.0580
5/95 $0.0580
6/95 $0.0580
7/95 $0.0580
8/95 $0.0580
9/95 $0.0580
10/95 $0.0580
11/95 $0.0610
<CAPTION>
FUND HIGHLIGHTS 11/30/95
<S> <C>
Yield 6.10%
Taxable-equivalent yield 10.17%
Annual total return on NAV 37.60%
Taxable-equivalent total return 42.15%
Combined federal and state tax rate 40.00%
Share price $12.00
NAV $13.84
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND
NMY
In keeping with the Fund's objective of providing dependable tax-free income,
shareholders enjoyed 12 months of stable dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/94 $0.0615
1/95 $0.0615
2/95 $0.0615
3/95 $0.0615
4/95 $0.0615
5/95 $0.0615
6/95 $0.0615
7/95 $0.0615
8/95 $0.0615
9/95 $0.0615
10/94 $0.0615
11/94 $0.0615
<CAPTION>
FUND HIGHLIGHTS 11/30/95
<S> <C>
Yield 5.73%
Taxable-equivalent yield 9.55%
Annual total return on NAV 36.71%
Taxable-equivalent total return 41.40%
Combined federal and state tax rate 40.00%
Share price $12.875
NAV $13.92
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND
NNC
While the dividend income remained attractive compared with other fixed income
alternatives, the fund adjusted its monthly dividend in February of 1995 to a
level in line with its earnings.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/94 $0.0625
1/95 $0.0625
2/95 $0.0575
3/95 $0.0575
4/95 $0.0575
5/95 $0.0575
6/95 $0.0575
7/95 $0.0575
8/95 $0.0575
9/95 $0.0575
10/95 $0.0575
11/95 $0.0575
<CAPTION>
FUND HIGHLIGHTS 11/30/95
<S> <C>
Yield 5.75%
Taxable-equivalent yield 9.75%
Annual total return on NAV 35.89%
Taxable-equivalent total return 40.61%
Combined federal and state tax rate 41.00%
Share price $12.00
NAV $13.59
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND
NPV
In keeping with the Fund's objective of providing dependable tax-free income,
shareholders enjoyed 12 months of stable dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/94 $0.0650
1/95 $0.0650
2/95 $0.0650
3/95 $0.0650
4/95 $0.0650
5/95 $0.0650
6/95 $0.0650
7/95 $0.0650
8/95 $0.0650
9/95 $0.0650
10/95 $0.0650
11/95 $0.0650
<CAPTION>
FUND HIGHLIGHTS 11/30/95
<S> <C>
Yield 5.89%
Taxable-equivalent yield 9.74%
Annual total return on NAV 36.80%
Taxable-equivalent total return 41.57%
Combined federal and state tax rate 39.50%
Share price $13.25
NAV $14.14
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, November 30, 1995) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor subject to a given state and federal income tax rate
would need to obtain from a fully taxable investment to equal the fund's
stated annualized yield on share price. In this report, these tax rates are
assumed to be 40% for GA and MD, 41% for NC, and 39.5% for VA, based on 1995
incomes of $117,950-$256,500 for investors filing singly, $143,600-$256,500
for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by a
long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value, both up and down, are also magnified by
leverage.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as are deemed advisable. No
shares were repurchased during the 6-month period ended November 30, 1995. Any
future repurchases will be reported to shareholders.
<PAGE>
<TABLE>
SHAREHOLDER MEETING REPORT
On November 16, 1995, the following Nuveen Exchange-Traded Funds held an
Annual Meeting of Shareholders. At the meeting, shareholders voted to elect
directors of the Funds and to ratify the selection of Ernst & Young L.L.P. as
the auditors for the Funds. The directors elected at the meeting include:
Lawrence H. Brown, Richard J. Franke, Anne E. Impellizzeri, and Peter R.
Sawers.
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
Approval of the DIRECTORS
was reached as follows:
Lawrence H. Brown
For 3,384,939 9,517,537 5,672,943 7,525,115
Abstain 113,769 123,937 81,089 88,409
--------- --------- --------- ---------
Total 3,498,708 9,641,474 5,754,032 7,613,524
========= ========= ========= =========
Richard J. Franke
For 3,388,939 9,518,177 5,673,286 7,524,128
Abstain 109,769 123,297 80,746 89,396
--------- --------- --------- ---------
Total 3,498,708 9,641,474 5,754,032 7,613,524
========= ========= ========= =========
Anne E. Impellizzeri
For 3,387,939 9,514,711 5,673,286 7,526,530
Abstain 110,769 126,763 80,746 86,994
--------- --------- --------- ---------
Total 3,498,708 9,641,474 5,754,032 7,613,524
========= ========= ========= =========
Peter R. Sawers
For 3,388,939 9,519,530 5,671,586 7,526,530
Abstain 109,769 121,944 82,446 86,994
--------- --------- --------- ---------
Total 3,498,708 9,641,474 5,754,032 7,613,524
========= ========= ========= =========
Ratification of auditors
was reached as follows:
For 3,427,102 9,438,109 5,692,874 7,502,827
Against 28,310 62,823 26,298 57,769
Abstain 43,296 140,542 34,860 52,928
---------- ---------- ---------- ---------
Total 3,498,708 9,641,474 5,754,032 7,613,524
========= ========= ========= =========
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND (NPG)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 Georgia Housing and Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
6.500%, 12/01/17 12/04 at 102 AA+ $ 3,085,020
Georgia Municipal Electric Authority:
1,750,000 6.400%, 1/01/09 No Opt. Call A+ 1,932,543
1,900,000 5.500%, 1/01/18 1/03 at 100 AAA 1,898,689
1,500,000 Albany-Dougherty County Hospital Authority
(Phoebe Putney Memorial Hospital),
5.000%, 9/01/20 9/03 at 102 Aaa 1,401,990
3,115,000 Albany Sewerage System, 6.625%, 7/01/17 7/02 at 102 Aaa 3,428,899
Atlanta General Obligation:
2,625,000 5.600%, 12/01/18 12/03 at 102 Aa 2,640,173
500,000 6.100%, 12/01/19 12/04 at 102 AA 519,705
1,000,000 Atlanta Airport System, 6.500%, 1/01/09 No Opt. Call Aaa 1,129,870
1,500,000 Atlanta Airport Facilities (Atlanta International
Airport), Alternative Minimum Tax,
6.250%, 1/01/21 1/01 at 102 Aaa 1,564,755
Atlanta Urban Residential Finance Authority
(Morehouse College):
1,210,000 5.750%, 12/01/20 12/05 at 102 Aaa 1,235,785
1,375,000 5.750%, 12/01/25 12/05 at 102 Aaa 1,395,845
3,450,000 Atlanta Water and Sewer System, 5.000%, 1/01/15 1/04 at 102 Aa 3,292,646
3,000,000 Burke County Development Authority, Pollution
Control (Oglethorpe Power Corporation),
7.700%, 1/01/06 1/03 at 103 Aaa 3,600,660
1,150,000 Clayton County and Clayton County Water
Authority, Water and Sewerage System,
5.250%, 5/01/12 5/03 at 102 Aaa 1,140,582
2,000,000 Clayton County Housing Authority (Spring Lake
Apartments), 8.125%, 12/01/05 (Mandatory
put 12/01/97) No Opt. Call Baa1 2,083,320
1,250,000 Cobb-Marietta Coliseum and Exhibition Authority,
5.500%, 10/01/12 No Opt. Call Aaa 1,281,025
1,000,000 Columbus Medical Center Hospital Authority,
7.750%, 7/01/10 No Opt. Call AAA 1,203,140
1,555,000 DeKalb County Development Authority (Emory
University), 6.000%, 10/01/14 10/04 at 102 Aa1 1,626,110
3,400,000 DeKalb County Housing Authority (The Lakes at
Indian Creek Apartments), Alternative Minimum
Tax, 7.150%, 1/01/25 1/05 at 102 Aaa 3,613,860
2,500,000 DeKalb County Hospital Authority (DeKalb Medical
Center), 5.000%, 9/01/14 9/03 at 102 Aaa 2,372,900
2,280,000 Douglasville-Douglas County Water and Sewer
Authority, 5.625%, 6/01/15 No Opt. Call Aaa 2,396,440
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,400,000 Downtown Savannah Authority (Chatham County
Projects), 5.000%, 1/01/11 1/03 at 102 Aa $ 3,303,406
4,000,000 Floyd County Water System, 5.100%, 11/01/13 11/03 at 102 Aaa 3,905,720
2,000,000 Fulton County Hospital Authority (Georgia Baptist
Health Care System), 6.375%, 9/01/22 9/02 at 102 Baa1 2,008,400
3,000,000 Fulton County Housing Authority, Alternative
Minimum Tax, 6.550%, 3/01/18 3/05 at 102 AAA 3,088,680
500,000 Fulton County School District General Obligation,
6.375%, 5/01/17 No Opt. Call Aa 570,755
2,000,000 Fulton-DeKalb Hospital Authority (Grady
Memorial), 5.500%, 1/01/20 7/03 at 102 Aaa 1,988,000
1,965,000 Gainsville and Hall County Hospital Authority,
6.000%, 10/01/25 10/05 at 102 Aaa 2,038,215
Metropolitan Atlanta Rapid Transit Authority:
1,750,000 8.000%, 7/01/12 (Pre-refunded to 7/01/98) 7/98 at 102 AAA 1,950,935
2,150,000 5.125%, 7/01/12 7/03 at 102 AAA 2,102,915
1,000,000 6.250%, 7/01/20 No Opt. Call AAA 1,122,970
2,000,000 Monroe County Development Authority, Pollution
Control (Gulf Power Company), 6.300%, 9/01/24 9/99 at 102 A1 2,046,140
3,435,000 Monroe County Development Authority, Pollution
Control (Georgia Power Company), 5.750%, 9/01/23 9/98 at 102 A1 3,401,748
1,000,000 Paulding County School District, General Obligation,
5.500%, 2/01/15 2/05 at 102 Aaa 1,003,640
3,295,000 Private Colleges and University Facilities Authority
(Agnes Scott College), 5.625%, 6/01/23 6/03 at 102 Aa 3,321,524
1,000,000 Savannah Hospital Authority (Saint Joseph's
Hospital), 6.200%, 7/01/23 7/03 at 102 A 1,009,280
2,000,000 Puerto Rico Highway and Transportation Authority,
5.250%, 7/01/20 7/03 at 101 1/2 A 1,895,560
$75,555,000 Total Investments - (cost $74,589,667) - 98.0% 77,601,845
===========
Other Assets Less Liabilities - 2.0% 1,544,999
Net Assets - 100% $79,146,844
===========
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 22 $44,865,515 57%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 8 18,359,339 24
PORTFOLIO OF A+ A1 3 7,380,431 10
INVESTMENTS: A, A- A, A2, A3 2 2,904,840 4
BBB+, BBB, BBB- Baal, Baa, Baa2, Baa3 2 4,091,720 5
TOTAL 37 $77,601,845 100%
<FN>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND (NMY)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Maryland Community Development Administration,
Multi-Family Housing:
$ 1,150,000 6.625%, 5/15/23 5/03 at 102 Aa $ 1,206,339
3,075,000 6.050%, 5/15/24 5/03 at 102 Aa 3,101,322
5,040,000 5.600%, 5/15/26 5/03 at 102 Aa 4,988,945
1,000,000 6.850%, 5/15/33 5/02 at 102 Aa 1,039,580
Maryland Community Development Administration,
Single Family Mortgage:
1,750,000 4.950%, 4/01/06 4/04 at 102 Aa 1,745,678
1,900,000 5.900%, 4/01/11 4/04 at 102 Aa 1,957,646
1,500,000 7.250%, 4/01/16 4/96 at 103 Aa 1,560,915
Maryland Community Development Administration,
Single Family Mortgage, Alternative Minimum Tax:
970,000 6.800%,4/01/22 4/03 at 102 Aa 1,006,501
1,000,000 7.375%, 4/01/26 4/99 at 102 Aa 1,048,340
2,650,000 6.750%, 4/01/26 4/04 at 102 Aa 2,761,777
Maryland Community Development Administration:
1,000,000 8.750%, 5/15/05 5/96 at 101 Aa 1,024,520
1,000,000 6.450%, 4/01/14 4/04 at 102 Aa 1,042,790
Maryland Department of Transportation:
4,000,000 4.600%, 12/15/02 No Opt. Call Aa 4,039,480
4,800,000 4.625%, 9/15/07 9/02 at 102 Aa 4,651,152
2,000,000 Maryland General Obligation, 4.600%, 7/15/07 7/03 at 101 1/2 Aaa 1,953,960
1,875,000 Maryland Health and Higher Educational Facilities
Authority (Good Samaritan Hospital),
5.750%, 7/01/19 7/03 at 102 A 1,866,506
2,350,000 Maryland Health and Higher Educational Facilities
Authority (Sinai Hospital of Baltimore),
5.500%, 7/01/13 7/03 at 102 Aaa 2,376,931
1,855,000 Maryland Health and Higher Educational Facilities
Authority (Francis Scott Key Medical Center),
5.000%, 7/01/13 7/03 at 102 Aaa 1,782,525
3,125,000 Maryland Health and Higher Educational Facilities
Authority (Howard County General Hospital),
5.500%, 7/01/25 7/03 at 102 Baa1 2,849,563
4,415,000 Maryland Stadium Authority Sports Facility,
Alternative Minimum Tax, 7.500%, 12/15/10 12/99 at 102 Aa 4,909,789
Maryland Transportation Authority (Baltimore/
Washington International Airport), Alternative
Minimum Tax:
5,500,000 6.250%, 7/01/14 7/04 at 102 Aaa 5,893,525
2,930,000 6.400%, 7/01/19 7/04 at 102 Aaa 3,093,553
Maryland Transportation Authority:
3,000,000 6.500%, 7/01/06 7/01 at 102 A1 3,307,950
3,985,000 5.750%, 7/01/15 7/02 at 100 A1 4,018,394
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Anne Arundel County General Obligation:
$ 2,730,000 5.250%, 4/15/12 4/03 at 102 AA+ $ 2,744,879
3,175,000 5.300%, 4/15/15 4/03 at 102 AA+ 3,192,272
1,330,000 5.300%, 4/15/17 4/03 at 102 AA+ 1,332,354
4,000,000 Anne Arundel County Multi-Family Housing
(Woodside Project), Alternative Minimum Tax,
7.450%, 12/01/24 (Mandatory put 12/01/03) No Opt. Call BBB+ 4,249,560
6,000,000 Anne Arundel County Pollution Control (Baltimore
Gas and Electric Company), 6.000%, 4/01/24 4/04 at 102 A2 6,176,400
3,600,000 Baltimore County General Obligation,
7.750%, 7/01/16 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 3,684,672
2,000,000 Baltimore County Metropolitan District General
Obligation, 4.900%, 8/01/11 8/03 at 102 Aaa 1,940,880
2,435,000 Baltimore County Revenue Authority, 5.375%, 7/01/18 7/03 at 102 A 2,391,146
Baltimore General Obligation:
1,200,000 7.375%, 10/15/03 No Opt. Call Aaa 1,423,668
1,130,000 6.000%, 10/15/03 No Opt. Call Aaa 1,244,819
5,000,000 7.250%, 10/15/04 No Opt. Call Aaa 5,944,200
1,305,000 6.000%, 10/15/05 No Opt. Call Aaa 1,442,612
1,415,000 6.000%, 10/15/06 No Opt. Call Aaa 1,563,151
1,000,000 6.375%, 10/15/07 No Opt. Call Aaa 1,135,000
1,000,000 7.150%, 10/15/08 No Opt. Call A1 1,183,560
3,000,000 Baltimore Water System, 5.000%, 7/01/24 No Opt. Call Aaa 2,874,510
2,350,000 Baltimore Parking System, 5.100%, 7/01/13 7/03 at 102 Aaa 2,284,764
3,000,000 Baltimore Wastewater Project, 6.500%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 100 Aaa 3,282,360
1,410,000 Calvert County Sanitary District General Obligation,
5.000%, 7/15/19 7/03 at 102 Aa 1,337,836
4,500,000 Calvert County Pollution Control (Baltimore Gas
and Electric Company), 5.550%, 7/15/14 7/04 at 102 A2 4,522,995
1,795,000 Charles County (Holly Station), FHA, 6.450%, 5/01/26 5/05 at 102 AAA 1,838,601
2,550,000 Gaithersburg Hospital Facilities, 6.500%, 9/01/12 No Opt. Call Aaa 2,876,069
2,000,000 Howard County General Obligation, 5.250%, 8/15/11 8/03 at 102 Aa1 2,006,620
Maryland National Capital Park and Planning
Commission General Obligation:
880,000 5.300%, 7/01/09 7/03 at 102 Aa 892,839
800,000 5.300%, 7/01/10 7/03 at 102 Aa 808,648
2,000,000 Montgomery County Housing Opportunity
Commission, Multi-Family Housing,
5.900%, 7/01/15 7/05 at 102 Aa 2,018,440
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Montgomery County Housing Opportunity
Commission, Single Family Mortgage:
$ 815,000 7.000%, 7/01/14 No Opt. Call Aa $ 817,616
2,000,000 6.600%, 7/01/14 7/04 at 102 Aa 2,102,500
9,600,000 Montgomery County Solid Waste Resource
Recovery Project, 5.875%, 6/01/13 6/03 at 102 Aaa 9,917,472
9,445,000 Morgan State University, 6.100%, 7/01/20 No Opt. Call Aaa 10,400,078
Northeast Maryland Waste Disposal Authority,
Resource Recovery:
1,625,000 6.900%, 1/01/00 No Opt. Call Aaa 1,778,384
3,000,000 7.150%, 1/01/04 No Opt. Call Aaa 3,464,880
4,675,000 7.200%, 1/01/05 No Opt. Call Aaa 5,443,944
1,000,000 Prince George's County General Obligation,
5.750%, 3/15/09 3/03 at 102 Aaa 1,045,660
Prince George's County Housing Authority
(Cherry Hill Apartments):
1,090,000 5.900%, 9/20/10 9/03 at 102 AAA 1,126,777
1,930,000 6.000%, 9/20/15 9/03 at 102 Aaa 1,974,294
1,000,000 Prince George's County Housing Authority
(GNMA), 6.350%, 7/20/20 1/03 at 102 AAA 1,034,920
1,165,000 Prince George's County Housing Authority
(GNMA and FNMA), Single Family Mortgage,
Alternative Minimum Tax, 6.350%, 6/01/11 6/04 at 102 AAA 1,212,078
1,500,000 Prince George's County Housing Authority
(Riverview Terrace), 6.700%, 6/20/20 12/04 at 102 AAA 1,590,120
5,000,000 Prince George's County, Pollution Control
(Potomac Electric Project), 6.375%, 1/15/23 1/03 at 102 A+ 5,321,300
Prince George's County (Dimensions Health
Corporation):
3,000,000 5.375%, 7/01/14 7/04 at 102 A 2,851,050
6,000,000 5.300%, 7/01/24 7/04 at 102 A 5,493,720
5,750,000 Prince George's County, Solid Waste Management
System, 5.250%, 6/15/13 6/03 at 102 Aaa 5,636,898
1,510,000 Rockville General Obligation, 4.600%, 4/15/03 No Opt. Call Aa1 1,518,849
1,030,000 Rockville FHA-Insured Mortgage (Summit
Apartments), 5.250%, 7/01/09 1/04 at 102 Aaa 1,031,545
1,000,000 Salisbury College Lane Apartments (FHA-Insured),
6.600%, 12/01/26 12/04 at 102 AAA 1,047,820
University of Maryland:
3,000,000 5.000%, 10/01/10 10/03 at 101 AA+ 2,951,970
4,500,000 5.000%, 10/01/11 10/03 at 101 AA+ 4,401,000
1,780,000 Washington County Sanitary District, 5.375%, 1/01/15 1/03 at 102 Aaa 1,790,075
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Washington D.C. Metro Area Transit Authority,
Refunding Bonds:
$ 1,000,000 4.800%, 1/01/04 No Opt. Call Aaa $ 1,008,300
2,000,000 6.000%, 7/01/07 No Opt. Call Aaa 2,188,000
1,500,000 5.250%, 7/01/14 1/04 at 102 Aaa 1,485,015
Washington Suburban Sanitary District:
1,100,000 8.000%, 1/01/02 No Opt. Call Aa1 1,307,757
1,000,000 7.100%, 12/01/02 (Pre-refunded to 12/01/98) 12/98 at 102 Aaa 1,104,050
1,250,000 6.100%, 1/01/04 1/02 at 102 Aa1 1,367,100
1,115,000 6.200%, 6/01/09 6/02 at 102 Aa1 1,219,987
1,500,000 5.375%, 6/01/12 6/03 at 102 Aa1 1,513,320
1,000,000 Washington Suburban Sanitary District, Water
Supply System, 5.250%, 12/01/11 12/03 at 102 Aa1 1,003,470
1,000,000 Puerto Rico Aqueduct and Sewer Authority,
7.875%, 7/01/17 7/98 at 102 A 1,111,650
2,200,000 Puerto Rico Public Buildings Authority,
5.750%, 7/01/15 7/03 at 101 1/2 A 2,196,017
1,000,000 Puerto Rico Electric Power Authority,
5.500%, 7/01/20 7/04 at 100 A- 975,600
1,010,000 Puerto Rico Telephone Authority, 5.500%, 1/01/22 1/03 at 101 1/2 A+ 1,005,090
$211,565,000 Total Investments - (cost $212,703,212) - 98.2% 219,059,731
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 600,000 Maryland Energy Financing Administration (Baltimore
============
Ferst Project), Alternative Minimum Tax, Variable
Rate Demand Bonds, 4.500%, 7/01/11t VMIG-1 600,000
Other Assets Less Liabilities - 1.5% 3,357,434
Net Assets - 100% $223,017,165
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 37 $100,917,000 46%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 33 68,622,230 31
PORTFOLIO OF A+ A1 5 14,836,294 7
INVESTMENTS A, A- A, A2, A3 9 27,585,084 13
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 7,099,123 3
TEMPORARY
INVESTMENTS):
TOTAL 86 $219,059,731 100%
<FN>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND (NNC)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
North Carolina Eastern Municipal Power Agency:
$ 5,000,000 5.600%, 1/01/16 1/03 at 102 A $ 4,709,700
1,500,000 5.750%, 12/01/16 9/03 at 102 1/2 A 1,437,435
2,235,000 North Carolina Educational Facilities Finance
Agency (Duke University), 6.750%, 10/01/21 10/01 at 102 Aa1 2,490,192
North Carolina Education Assistance Authority,
Alternative Minimum Tax:
1,000,000 6.050%, 7/01/10 7/05 at 102 A 1,040,090
2,400,000 6.300%, 7/01/15 7/05 at 102 A 2,494,920
North Carolina Housing Finance Agency, Alternative
Minimum Tax:
3,180,000 6.800%, 9/01/25 9/02 at 102 Aa 3,309,172
6,000,000 6.700%, 9/01/26 3/04 at 102 Aa 6,228,960
1,070,000 7.850%, 9/01/28 3/00 at 102 Aa 1,139,882
North Carolina Housing Finance Agency:
650,000 5.800%, 7/01/14 1/03 at 102 Aa 649,227
1,000,000 5.900%, 7/01/26 1/03 at 102 Aa 984,630
3,000,000 North Carolina Medical Care Commission (Carolina
Medicorp), 5.500%, 5/01/15 5/02 at 102 Aa 2,985,690
2,000,000 North Carolina Medical Care Commission (Mercy
Hospital Project), 6.500%, 8/01/15 8/02 at 102 A- 2,081,700
1,000,000 North Carolina Medical Care Commission
(Presbyterian Health Services), 5.500%, 10/01/20 10/03 at 102 Aa 987,910
1,850,000 North Carolina Medical Care Commission (Memorial
Mission Hospital), 5.500%, 10/01/18 10/03 at 102 Aaa 1,839,141
North Carolina Medical Power Agency, No. 1 Catawba:
2,775,000 10.500%, 1/01/10 No Opt. Call Aaa 3,933,923
5,955,000 7.625%, 1/01/14 (Pre-refunded to 1/01/98) 1/98 at 102 Aaa 6,504,885
1,000,000 5.750%, 1/01/15 1/03 at 100 A 978,980
3,000,000 7.000%, 1/01/16 1/98 at 102 A 3,129,750
3,500,000 7.500%, 1/01/17 1/98 at 102 A 3,765,720
2,600,000 University of North Carolina, Chapel Hill Utility
System, 5.000%, 8/01/09 8/02 at 102 Aa 2,573,194
5,250,000 Buncombe County Metropolitan Sewer District,
5.500%, 7/01/22 7/03 at 102 Aaa 5,271,053
2,015,000 Cabarrus County General Obligation,
4.800%, 3/01/09 3/03 at 102 Aaa 1,947,901
Charlotte-Mecklenburg Hospital Authority:
3,500,000 5.750%, 1/01/12 1/02 at 102 Aa 3,535,840
2,490,000 6.250%, 1/01/20 1/02 at 102 Aa 2,597,244
3,000,000 Charlotte Convention Facility, Certificates of
Participation, 5.250%, 12/01/20 12/03 at 102 Aaa 2,936,640
1,000,000 Charlotte FHA-Insured Mortgage (Tryon Hills
Apartments), 5.875%, 1/01/25 1/03 at 105 Aaa 1,003,800
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 3,000,000 Craven Regional Medical Authority,
5.625%, 10/01/17 10/03 at 102 Aaa $ 3,008,730
1,250,000 Cumberland County (Cumberland County Hospital
System), 5.500%, 10/01/14 10/03 at 100 Aaa 1,251,863
4,225,000 Duplin County Certificates of Participation,
5.250%, 8/01/14 8/03 at 102 Aaa 4,177,638
2,885,000 Durham General Obligation, 4.800%, 2/01/10 2/04 at 102 AAA 2,798,508
3,970,000 Durham Certificates of Participation, Water Utility
Improvements, 6.375%, 7/15/12 7/02 at 102 AA 4,165,443
7,000,000 Fayetteville Public Works Commission,
4.750%, 3/01/14 3/03 at 100 Aaa 6,510,000
1,100,000 Greenville General Obligation, 5.000%, 3/01/11 3/03 at 102 Aa 1,082,059
1,300,000 Mecklenberg County Industrial Facilities and
Pollution Control Financing Authority (Fluor
Corporation), 5.250%, 12/01/09 12/01 at 102 A 1,291,095
1,195,000 Morganton General Obligation, 5.700%, 6/01/11 6/05 at 102 Aaa 1,253,567
2,975,000 New Hanover County (New Hanover Regional
Medical Center), 4.750%, 10/01/23 10/03 at 102 Aaa 2,656,764
3,000,000 Orange County General Obligation, 5.500%, 2/01/11 2/05 at 102 Aaa 3,113,790
4,485,000 Orange Water and Sewer Authority, 5.200%, 7/01/16 7/03 at102 Aa 4,431,763
2,010,000 Rutherford County General Obligation,
5.100%, 6/01/11 6/03 at 102 Aaa 2,004,673
3,235,000 Wake County (Wake Medical Center),
5.125%, 10/01/26 10/03 at 102 Aaa 3,076,290
5,750,000 Wake County Industrial Facilities and Pollution
Control Finance Authority (Carolina Power and
Light Company), 6.900%, 4/01/09 4/00 at 102 A2 6,254,102
Puerto Rico Highway and Transportation Authority:
6,550,000 5.500%, 7/01/19 7/03 at 101 1/2 A 6,376,752
5,000,000 5.250%, 7/01/20 7/03 at 101 1/2 Aaa 4,881,700
$126,900,000 Total Investments - (cost $126,996,720) - 98.2% 128,892,316
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 300,000 Craven County Industrial Facilities Pollution Control
============
Finance Authority (Craven Wood Energy Facility),
Alternative Minimum Tax, Variable Rate Demand
Bonds, 3.850%, 5/01/11t Aa-1 300,000
Other Assets Less Liabilities - 1.6% 2,119,440
Net Assets - 100% $131,311,756
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 18 $ 58,170,866 45%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 37,161,206 29
PORTFOLIO OF A, A- A, A2, A3 11 33,560,244 26
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 43 $128,892,316 100%
<FN>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND (NPV)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 5,500,000 Virginia College Building Authority (University of
Richmond Project), 5.550%, 11/01/19 (Mandatory
put 11/01/04) 11/04 at 100 Aa $ 5,693,270
2,750,000 Virginia College Building Authority (The
Washington and Lee University), 5.800%, 1/01/24 1/04 at 102 Aa 2,807,723
2,640,000 Virginia Education Loan Authority, Student Loan,
Alternative Minimum Tax, 5.050%, 9/01/03 No Opt. Call Aaa 2,687,256
Virginia Housing Development Authority, Alternative
Minimum Tax:
1,000,000 6.750%, 7/01/21 1/02 at 102 Aa 1,031,930
4,000,000 6.200%, 7/01/21 1/02 at 102 Aa 3,979,400
5,000,000 6.550%, 1/01/27 1/02 at 102 Aa 5,096,900
3,240,000 6.300%, 1/01/27 1/02 at 102 Aa 3,254,029
2,945,000 6.250%, 1/01/27 1/02 at 102 Aa 2,974,538
7,035,000 Virginia Transportation Board (Northern Virginia
Transportation District), 6.250%, 5/15/17 5/04 at 101 Aa 7,439,653
3,500,000 Virginia Transportation Board (Route 58 Project),
6.000%, 5/15/19 5/98 at 102 Aa 3,577,735
1,500,000 Albemarle County Service Authority, Water and
Sewer System, 5.750%, 8/01/11 8/02 at 102 Aa 1,546,830
1,000,000 Alexandria Industrial Development Authority
(Community Hospital), 5.500%, 7/01/14 7/03 at 102 Aaa 1,001,790
1,100,000 Arlington County Industrial Development Authority,
Multi-Family Housing, 5.700%, 7/01/07 7/05 at 102 A 1,122,385
1,660,000 Bedford Electric System, 5.250%, 6/01/25 6/04 at 102 Aaa 1,619,878
5,250,000 Chesapeake Bay Bridge and Tunnel Commission,
6.375%, 7/01/22 7/01 at 102 Aaa 5,556,495
2,000,000 Cumberland County Certificates of Participation,
5.480%, 7/15/97 No Opt. Call N/R 2,000,000
2,500,000 Fairfax County Economic Development Authority
(Ogden Martin Systems Project), Alternative
Minimum Tax, 7.750%, 2/01/11 2/99 at 103 A1 2,751,425
7,350,000 Fairfax County Industrial Development Authority
(Inova Health System), 5.000%, 8/15/23 No Opt. Call Aa 6,746,859
500,000 Fairfax County Redevelopment and Housing
Authority (Burke Center), 5.750%, 8/01/25 8/03 at 102 Aaa 501,055
2,050,000 Fairfax County Water Authority, 5.750%, 4/01/29 4/02 at 100 Aa 2,053,588
5,060,000 Halifax County Industrial Development Authority
(Old Dominion Electric Cooperative), Alternative
Minimum Tax, 6.350%, 12/01/07 12/02 at 102 A+ 5,369,571
1,500,000 Hampton Roads Sanitation District, Wastewater
System, 5.000%, 10/01/23 10/03 at 102 Aa 1,390,620
4,445,000 Hampton Redevelopment and Housing Authority
(Chase Hampton II Apartments), 7.000%, 7/01/24
(Mandatory put 7/01/04) 7/02 at 104 N/R 4,807,668
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 4,650,000 Hanover County Hospital, 5.500%, 8/15/25 8/05 at 102 Aaa $ 4,619,264
3,250,000 Harrisburg Industrial Development Authority
(Rockingham Memorial Hospital),
5.250%, 12/01/22 12/02 at 102 Aaa 3,143,043
2,000,000 Henrico County General Obligation, 5.350%, 1/15/11 1/03 at 102 Aaa 2,032,340
1,000,000 Henrico County Water and Sewer System,
6.250%, 5/01/13 5/02 at 100 A1 1,042,520
1,500,000 Henry County Public Service Authority, Water and
Sewer, 6.250%, 11/15/19 11/01 at 101 Aaa 1,571,775
3,000,000 King George County Industrial Development
Authority (King George County Elementary
School), 4.875%, 8/01/98 8/96 at 100 N/R 3,000,360
1,800,000 Loudoun County General Obligation,
5.500%, 10/01/13 10/03 at 102 Aa 1,815,498
3,000,000 Louisa Industrial Development Authority, Pollution
Control (Virginia Electric and Power Company),
5.450%, 1/01/24 1/04 at 102 A2 2,932,380
Lynchburg Industrial Development Authority
(Randolph-Macon Women's College):
2,940,000 5.875%, 9/01/13 9/03 at 102 A 2,981,072
3,000,000 5.875%, 9/01/23 9/03 at 102 A 3,008,520
2,500,000 Norfolk Industrial Development Authority (Sentara
Hospitals-Norfolk), 6.500%, 11/01/13 11/04 at 102 Aa 2,706,250
1,500,000 Peninsula Ports Authority of Virginia (Riverside
Health System), 6.625%, 7/01/10 7/02 at 102 Aa 1,622,175
Portsmouth General Obligation:
2,000,000 5.500%, 8/01/13 8/03 at 102 AA- 2,027,540
2,500,000 5.500%, 8/01/19 8/03 at 102 AA- 2,515,625
3,000,000 Prince William County Park Authority,
6.875%, 10/15/16 10/04 at 102 A- 3,280,140
2,740,000 Prince William County Service Authority, Water and
Sewer System, 5.000%, 7/01/21 7/03 at 102 Aaa 2,583,409
Richmond General Obligation:
4,265,000 6.250%, 1/15/18 1/01 at 102 Aa 4,460,081
3,200,000 5.500%, 7/15/23 7/03 at 102 AA 3,170,592
2,125,000 Richmond Metropolitan Authority Expressway,
5.750%, 7/15/22 7/02 at 100 Aaa 2,139,365
1,415,000 Rivanna Water and Sewer Authority,
4.750%, 10/01/07 10/03 at 101 1/2 Aa 1,380,502
3,800,000 Roanoke County General Obligation,
5.000%, 6/01/21 6/03 at 100 Aa 3,583,324
1,825,000 Roanoke County Water System, 5.125%, 7/01/13 7/03 at 102 Aaa 1,783,573
3,000,000 Roanoke Industrial Development Authority (Roanoke
Memorial), 5.000%, 7/01/24 7/03 at 102 Aaa 2,791,080
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,250,000 Rockingham County Industrial Development
Authority (Bridegewater College), 6.000%, 10/01/23 10/03 at 102 Baa1 $ 1,256,788
6,150,000 Southeastern Public Service Authority, Regional
Solid Waste System, Alternative Minimum Tax,
6.000%, 7/01/17 7/03 at 102 A- 6,160,701
2,355,000 Suffolk Redevelopment and Housing Authority
(Wilson Pines Apartments), 6.125%, 1/01/23 1/01 at 100 Aaa 2,385,331
4,345,000 Upper Occoquan Sewer Authority, 5.000%, 7/01/21 1/04 at 102 Aaa 4,090,947
Virginia Beach Development Authority (Sentara
Bayside Hospital):
3,000,000 6.600%, 11/01/09 11/01 at 102 Aa 3,250,170
5,000,000 6.300%, 11/01/21 11/01 at 102 Aa 5,216,250
835,000 Virginia Beach Development Authority, GNMA
(Pembroke Lake Apartments), 6.200%, 6/20/28 6/03 at 102 AAA 849,846
2,000,000 Virginia Beach Water and Sewer System,
5.125%, 2/01/19 2/04 at 102 Aaa 1,921,240
4,250,000 Washington D.C. Airports Authority,
5.250%, 10/01/22 10/03 at 102 Aaa 4,139,330
3,150,000 Washington D.C. Airports Authority, Alternative
Minimum Tax, 6.625%, 10/01/19 10/02 at 102 Aaa 3,391,889
2,000,000 Winchester General Obligation, 5.500%, 1/15/14 1/04 at 102 Aa 2,026,980
Puerto Rico Highway Transportation Authority:
1,700,000 5.500%, 7/01/19 7/03 at 101 1/2 A 1,655,035
3,000,000 5.250%, 7/01/20 7/03 at 101 1/2 Aaa 2,929,020
1,165,000 5.250%, 7/01/20 7/03 at 101 1/2 A 1,104,163
3,500,000 6.500%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 AAA 3,977,085
$177,235,000 Total Investments - (cost $174,269,366) - 98.1% 179,555,801
============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.5%
$ 1,000,000 Peninsula Ports Authority of Virginia (Dominion
============
Terminals Associates), Variable Rate Demand Bonds,
3.800%, 7/01/16t P-1 1,000,000
Other Assets Less Liabilities - 1.4% 2,488,453
Net Assets - 100% $183,044,254
============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 21 $ 55,715,011 31%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 25 81,368,062 46
PORTFOLIO OF A+ A1 3 9,163,516 5
INVESTMENTS A, A- A, A2, A3 8 22,244,396 12
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 1,256,788 1
TEMPORARY Non-rated Non-rated 3 9,808,028 5
INVESTMENTS):
TOTAL 61 $179,555,801 100%
<FN>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $77,601,845 $219,059,731 $128,892,316 $179,555,801
Temporary investments in short-term municipal
securities, at amortized cost (note 1) -- 600,000 300,000 1,000,000
Cash 189,822 8,555 141,945 31,875
Receivables:
Interest 1,686,898 4,208,262 2,507,090 3,213,363
Investments sold -- 20,268 -- --
Other assets 11,878 18,076 2,223 36,470
----------- ------------ ------------ ------------
Total assets 79,490,443 223,914,892 131,843,574 183,837,509
----------- ------------ ------------ ------------
LIABILITIES
Accrued expenses:
Management fees (note 6) 41,658 116,524 69,081 95,744
Other 60,203 116,761 70,568 115,024
Preferred share dividends payable 15,457 28,818 34,557 34,189
Common share dividends payable 226,281 635,624 357,612 548,298
----------- ------------ ------------ ------------
Total liabilities 343,599 897,727 531,818 793,255
----------- ------------ ------------ ------------
Net assets (note 7) $79,146,844 $223,017,165 $131,311,756 $183,044,254
=========== ============ ============ ============
Preferred shares, at liquidation value $27,800,000 $ 79,100,000 $ 46,800,000 $ 63,800,000
=========== ============ ============ ============
Preferred shares outstanding 1,112 3,164 1,872 2,552
=========== ============ ============ ============
Common shares outstanding 3,709,530 10,335,353 6,219,344 8,435,353
=========== ============ ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 13.84 $ 13.92 $ 13.59 $ 14.14
=========== ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended November 30, 1995
(Unaudited)
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $2,210,669 $ 6,046,177 $3,587,570 $5,165,719
---------- ----------- ---------- ----------
Expenses:
Management fees (note 6) 248,998 698,783 413,937 573,145
Preferred shares--auction fees 34,845 99,021 58,660 79,968
Preferred shares--dividend disbursing agent fees 7,521 15,041 7,521 15,041
Shareholders' servicing agent fees and expenses 3,218 19,602 9,427 7,071
Custodian's fees and expenses 17,280 31,254 22,633 21,263
Trustees' fees and expenses (note 6) 895 443 108 364
Professional fees 7,879 33,203 4,955 22,067
Shareholders' reports--printing and mailing expenses 16,415 23,207 14,536 5,366
Stock exchange listing fees 1,097 25,132 8,554 8,264
Investor relations expense 3,877 6,434 6,162 9,876
Other expenses 7,636 8,825 9,129 15,751
---------- ----------- ---------- ----------
Total expenses 349,661 960,945 555,622 758,176
---------- ----------- ---------- ----------
Net investment income 1,861,008 5,085,232 3,031,948 4,407,543
---------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(note 3) (221,663) (463,345) (300,680) (100,083)
Net change in unrealized appreciation or depreciation
of investments 1,915,243 6,356,949 2,742,347 4,534,429
---------- ----------- ---------- ----------
Net gain from investments 1,693,580 5,893,604 2,441,667 4,434,346
---------- ----------- ---------- ----------
Net increase in net assets from operations $3,554,588 $10,978,836 $5,473,615 $8,841,889
========== =========== ========== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPG NMY
6 months ended Year ended 6 months ended Year ended
11/30/95 5/31/95 11/30/95 5/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,861,008 $ 3,618,901 $ 5,085,232 $ 7,783,227
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (221,663) (2,231,213) (463,345) (2,689,366)
Net change in unrealized appreciation or depreciation
of investments 1,915,243 6,282,723 6,356,949 17,300,496
----------- ----------- ------------ ------------
Net increase in net assets from operations 3,554,588 7,670,411 10,978,836 22,394,357
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (1,302,045) (2,696,507) (3,813,749) (5,677,248)
Preferred shareholders (439,885) (913,003) (1,327,798) (2,055,328)
----------- ----------- ------------ ------------
Decrease in net assets from distributions to shareholders (1,741,930) (3,609,510) (5,141,547) (7,732,576)
----------- ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition
of NDM (note 1) -- -- -- 84,880,037
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- 230,989 17,748 114,722
----------- ----------- ------------ ------------
Net increase in net assets derived from capital
share transactions -- 230,989 17,748 84,994,759
----------- ----------- ------------ ------------
Net increase in net assets 1,812,658 4,291,890 5,855,037 99,656,540
Net assets at beginning of period 77,334,186 73,042,296 217,162,128 117,505,588
----------- ----------- ------------ ------------
Net assets at end of period $79,146,844 $77,334,186 $223,017,165 $217,162,128
=========== =========== ============ ============
Balance of undistributed net investment income
at end of period $ 204,700 $ 85,622 $ 382,870 $ 439,185
=========== =========== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NNC NPV
6 months ended Year ended 6 months ended Year ended
11/30/95 5/31/95 11/30/95 5/31/95
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 3,031,948 $ 5,995,934 $ 4,407,543 $ 7,190,608
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (300,680) (2,628,350) (100,083) (2,482,462)
Net change in unrealized appreciation or depreciation
of investments 2,742,347 7,880,370 4,534,429 13,682,593
------------ ------------ ------------ ------------
Net increase in net assets from operations 5,473,615 11,247,954 8,841,889 18,390,739
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (2,145,676) (4,501,634) (3,288,381) (5,490,944)
Preferred shareholders (830,865) (1,487,023) (1,106,288) (1,828,391)
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (2,976,541) (5,988,657) (4,394,669) (7,319,335)
------------ ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Net proceeds from shares issued in acquisition
of NVI (note 1) -- -- -- 49,584,292
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- 373,994 202,685 834,752
------------ ------------ ------------ ------------
Net increase in net assets derived from capital
share transactions -- 373,994 202,685 50,419,044
------------ ------------ ------------ ------------
Net increase in net assets 2,497,074 5,633,291 4,649,905 61,490,448
Net assets at beginning of period 128,814,682 123,181,391 178,394,349 116,903,901
------------ ------------ ------------ ------------
Net assets at end of period $131,311,756 $128,814,682 $183,044,254 $178,394,349
============ ============ ============ ============
Balance of undistributed net investment income
at end of period $ 179,865 $ 124,459 $ 407,926 $ 395,052
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At November 30, 1995, the state Funds (the "Funds") covered in this report and
their corresponding stock exchange symbols are Nuveen Georgia Premium Income
Municipal Fund (NPG), Nuveen Maryland Premium Income Municipal Fund (NMY),
Nuveen North Carolina Premium Income Municipal Fund (NNC) and Nuveen Virginia
Premium Income Municipal Fund (NPV). NMY, NNC and NPV are traded on the New
York Stock Exchange while NPG is traded on the American Stock Exchange.
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
On December 8, 1994, NMY acquired all of the net assets of Nuveen Maryland
Premium Income Municipal Fund 2 (NDM) pursuant to a plan of reorganization
approved by the shareholders of the Funds on November 18, 1994. The
acquisition was accomplished by a tax-free exchange of 4,525,908 shares of NMY
for the 4,616,257 shares of NDM outstanding on December 8, 1994. NDM's net
assets at that date of $84,880,037 included $10,766,392 of unrealized
depreciation and $35,100,000 of preferred shares at liquidation value which
was combined with that of NMY. The combined net assets of NMY immediately
after the acquisition were $192,777,559.
On December 8, 1994, NPV acquired all of the net assets of Nuveen Virginia
Premium Income Municipal Fund 2 (NVI) pursuant to a plan of reorganization
approved by the shareholders of the Funds on November 3, 1994. The acquisition
was accomplished by a tax-free exchange of 2,575,679 shares of NPV for the
2,730,426 shares of NVI outstanding on December 8, 1994. NVI's net assets at
that date of $49,584,292 included $6,920,156 of unrealized depreciation and
$20,800,000 of preferred shares at liquidation value which was combined with
that of NPV. The combined net assets of NPV immediately after the acquisition
were $157,658,536.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Trustees. Temporary investments in securities
that have variable rate and demand features qualifying them as short-term
securities are traded and valued at amortized cost.
<PAGE>
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery
basis may be settled a month or more after the transaction date. The
securities so purchased are subject to market fluctuation during this period.
The Funds have instructed the custodian to segregate assets in a separate
account with a current value at least equal to the amount of their purchase
commitments. At November 30, 1995, there were no such purchase commitments in
any of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities when required for federal income tax purposes.
Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains as amounts in excess of $.01 per Common share.
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.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of net realized capital gains, if
applicable.
<PAGE>
<TABLE>
Preferred Shares
The following Funds have issued and outstanding $25,000 stated value Preferred
shares. Each Fund's Preferred shares are issued in one or more Series. The
dividend rate on each Series may change every seven days, as set by the
auction agent. The number of shares outstanding, by Series and in total, at
November 30, 1995, for each Fund is as follows:
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
Number of Shares:
Series T -- -- -- 832
Series W -- 1,404 -- --
Series Th 1,112 1,760 1,872 1,720
----- ----- ----- -----
Total 1,112 3,164 1,872 2,552
===== ===== ===== =====
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about
Derivative Financial Instruments and Fair Value of Financial Instruments which
prescribes disclosure requirements for transactions in certain derivative
financial instruments including futures, forward, swap, and option contracts,
and other financial instruments with similar characteristics. Although the
Funds are authorized to invest in such financial instruments, and may do so in
the future, they did not make any such investments during the six months ended
November 30, 1995.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<CAPTION>
NPG NMY
6 months ended Year ended 6 months ended Year ended
11/30/95 5/31/95 11/30/95 5/31/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NDM (see note 1) -- -- -- 4,525,908
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment transactions -- 19,021 -- 9,407
---- ------ ---- ---------
Net increase -- 19,021 -- 4,535,315
==== ====== ==== =========
Preferred shares acquired from NDM (see note 1) -- -- -- 1,404
==== ====== ==== =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NNC NPV
6 months ended Year ended 6 months ended Year ended
11/30/95 5/31/95 11/30/95 5/31/95
<S> <C> <C> <C> <C>
Common shares:
Shares issued in acquisition of NVI (see note 1) -- -- -- 2,575,679
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment transactions -- 30,917 14,544 65,082
---- ------ ------ ---------
Net increase -- 30,917 14,544 2,640,761
==== ====== ====== =========
Preferred shares acquired from NVI (see note 1) -- -- -- 832
==== ====== ====== =========
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
November 30, 1995, were as follows:
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $5,218,947 $20,188,075 $18,580,597 $21,132,121
Temporary municipal investments 2,300,000 4,600,000 8,100,000 9,100,000
SALES AND MATURITIES
Investments in municipal securities 4,866,000 19,747,628 18,071,110 20,933,370
Temporary municipal investments 2,700,000 4,800,000 8,200,000 8,800,000
========== =========== =========== ===========
At November 30, 1995, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
</TABLE>
<PAGE>
<TABLE>
At May 31, 1995, the Funds' last fiscal year end, the Funds had unused capital
loss carryovers available for federal income tax purposes to be applied
against future security gains, if any. If not applied, the carryovers will
expire as follows:
<CAPTION>
NPG NMY* NNC NPV**
<S> <C> <C> <C> <C>
Expiration year:
2002 $ -- $3,164,401 $ 10,562 $1,946,517
2003 1,288,994 1,019,929 2,478,557 1,577,464
---------- ---------- ---------- ----------
Total $1,288,994 $4,184,330 $2,489,119 $3,523,981
========== ========== ========== ==========
<FN>
* Effective with the acquisition of NDM by NMY (see note 1), NDM had net
realized losses from investment transactions of $3,164,401 which were carried
forward by NMY, as permitted under applicable tax regulations.
** Effective with the acquisition of NVI by NPV (see note 1), NVI had net
realized losses from investment transactions of $1,890,231 which were carried
forward by NPV, as permitted under applicable tax regulations.
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On December 1, 1995, the Funds declared Common share dividend distributions
from their ordinary income which were paid December 29, 1995, to shareholders
of record on December 15, 1995, as follows:
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
Dividend per share $.0610 $.0615 $.0575 $.0650
====== ====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 1995, were as follows:
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $3,151,477 $6,663,827 $2,443,240 $5,768,680
Depreciation (139,299) (307,308) (547,644) (482,245)
---------- ---------- ---------- ----------
Net unrealized appreciation $3,012,178 $6,356,519 $1,895,596 $5,286,435
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
("the Adviser"), a wholly owned subsidiary of The John Nuveen Company, each
fund pays to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management Fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .5875 of 1
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those Trustees who are affiliated with the Adviser or
to their officers, all of whom receive remuneration for their services to the
Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At November 30, 1995, net assets consisted of:
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share, at
liquidation value $27,800,000 $ 79,100,000 $ 46,800,000 $ 63,800,000
Common shares, $.01 par value per share 37,095 103,354 62,193 84,354
Paid-in surplus 51,235,490 145,128,551 86,058,628 118,574,523
Balance of undistributed net investment income 204,700 382,870 179,865 407,926
Accumulated net realized gain (loss) from investment
transactions (3,142,619) (7,054,129) (3,684,526) (5,108,984)
Net unrealized appreciation or depreciation of
investments 3,012,178 6,356,519 1,895,596 5,286,435
----------- ------------ ------------ ------------
Net assets $79,146,844 $223,017,165 $131,311,756 $183,044,254
=========== ============ ============ ============
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
=========== ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At November 30, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as follows:
<CAPTION>
NPG NMY NNC NPV
<S> <C> <C> <C> <C>
Revenue Bonds:
Health Care Facilities 14% 9% 19% 17%
Housing Facilities 15 19 10 14
Water / Sewer Facilities 18 2 7 11
Electric Utilities 5 1 16 1
Pollution Control Facilities 12 7 6 5
Transportation 4 12 -- 9
Educational Facilities 10 8 7 10
Lease Rental Facilities -- 3 9 3
Other 8 16 9 16
General Obligation Bonds 10 19 9 12
Escrowed Bonds 4 4 8 2
---- ---- ---- ----
100% 100% 100% 100%
==== ==== ==== ====
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency
securities, either of which ensure the timely payment of principal and
interest in the event of default (49% for NPG, 45% for NMY, 41% for NNC and
28% for NPV). Such insurance or escrow, however, does not guarantee the market
value of the municipal securities or the value of any of the Funds' shares.
All of the temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected data for a common share outstanding throughout each period is as
follows:
<CAPTION>
Dividends from net
Operating performance investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income mentstt shareholders shareholderst
NPG
<S> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 $13.350 $.502 $ .458 $(.351) $(.119)
Year ended 5/31,
1995 12.260 .977 1.088 (.728) (.247)
1994 13.960 .775 (1.568) (.620) (.135)
5/20/93 to
5/31/93 14.050 .001 -- -- --
<CAPTION>
NMY
<S> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 13.360 .492 .565 (.369) (.128)
Year ended 5/31,
1995 12.670 .992 .696 (.738) (.260)
1994 14.130 .890 (1.298) (.750) (.160)
3/18/93 to
5/31/93 14.050 .069 .073 -- --
<PAGE>
<CAPTION>
Distributions from
capital gains
Per
Organiza- Common
tion and share
offering costs market
To To and Preferred Net asset value
Common Preferred underwriting value end end of
shareholders shareholderst discounts of period period
NPG
<S> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 $ -- $ -- $ -- $13.840 $12.000
Year ended 5/31,
1995 -- -- -- 13.350 11.500
1994 -- -- (.152) 12.260 12.625
5/20/93 to
5/31/93 -- -- (.091) 13.960 15.000
<CAPTION>
NMY
<S> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 -- -- -- 13.920 12.875
Year ended 5/31,
1995 -- -- -- 13.360 12.250
1994 -- -- (.142) 12.670 12.500
3/18/93 to
5/31/93 -- -- (.062) 14.130 15.250
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets@ net assets@ rate
NPG
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 7.50% 6.46% $ 79,147 .91%* 4.84%* 6%
Year ended 5/31,
1995 (3.00) 15.78 77,334 .95 5.01 35
1994 (12.09) (8.05) 73,042 .97 3.97 31
5/20/93 to
5/31/93 -- (.64) 49,219 1.61* .50* --
<CAPTION>
NMY
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 8.27 7.11 223,017 .88* 4.68* 9
Year ended 5/31,
1995 4.36 12.07 217,162 .97 4.92 25
1994 (13.62) (5.39) 117,506 .92 4.30 19
3/18/93 to
5/31/93 1.67 .57 81,724 .86* 2.74* --
<FN>
See notes on page 42.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected data for a common share outstanding throughout each period is as follows:
<CAPTION>
Dividends from net
Operating performance investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income mentstt shareholders shareholderst
NNC
<S> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 $13.190 $ .488 $ .391 $(.345) $(.134)
Year ended 5/31,
1995 12.340 .966 .849 (.725) (.240)
1994 14.000 .752 (1.535) (.600) (.135)
5/20/93 to
5/31/93 14.050 .002 .015 -- --
<CAPTION>
NPV
<S> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 13.610 .522 .529 (.390) (.131)
Year ended 5/31,
1995 12.790 1.037 .844 (.800) (.261)
1994 14.180 .942 (1.255) (.790) (.148)
3/18/93 to
5/31/93 14.050 .068 .125 -- --
<PAGE>
<CAPTION>
Distributions from
capital gains
Per
Organiza- Common
tion and share
offering costs market
To To and Preferred Net asset value
Common Preferred underwriting value end end of
shareholders shareholderst discounts of period period
NNC
<S> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 $ -- $ -- $ -- $13.590 $12.000
Year ended 5/31,
1995 -- -- -- 13.190 12.125
1994 -- -- (.142) 12.340 12.500
5/20/93 to
5/31/93 -- -- (.067) 14.000 15.125
<CAPTION>
NPV
<S> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 -- -- -- 14.140 13.250
Year ended 5/31,
1995 -- -- -- 13.610 12.875
1994 -- -- (.139) 12.790 13.125
3/18/93 to
5/31/93 -- -- (.063) 14.180 15.125
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
value** value** thousands) net assets@ net assets@ rate
NNC
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 1.83% 5.80% $131,312 .87%* 4.75%* 14%
Year ended 5/31,
1995 3.04 13.64 128,815 .89 4.96 32
1994 (13.81) (7.79) 123,181 .93 3.85 19
5/20/93 to
5/31/93 .83 (.36) 82,449 1.28* 1.41* --
<CAPTION>
NPV
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
11/30/95 6.00 6.94 183,044 .85* 4.96* 12
Year ended 5/31,
1995 4.66 13.58 178,394 .98 5.13 45
1994 (8.35) (4.58) 116,904 .93 4.56 28
3/18/93 to
5/31/93 .83 .93 81,227 .90* 2.70* --
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
t The amounts shown are based on Common share equivalents.
tt Net of taxes, if applicable.
@ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
Your investment partner
Photographic image of John Nuveen, Sr., founder of Nuveen
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships with these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent
financial planners, to bring the benefits of tax-free investing to you. These
advisers are experts at identifying your needs and recommending the best
solutions for your situation. Together we make a powerful team, helping you
create a successful investment plan that meets your needs today and in the
future.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF2-JAN 96
