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 MARYLAND PREMIUM
INCOME MUNICIPAL FUND 2
NUVEEN NORTH CAROLINA PREMIUM
INCOME MUNICIPAL FUND
NUVEEN VIRGINIA PREMIUM
INCOME MUNICIPAL FUND
NUVEEN VIRGINIA PREMIUM
INCOME MUNICIPAL FUND 2
SEMIANNUAL REPORT/NOVEMBER 30, 1994
Man reading statement on porch
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CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
12 Getting to know your fund
14 Portfolio of investments
32 Statement of net assets
34 Statement of operations
36 Statement of changes in net assets
39 Notes to financial statements
50 Financial highlights
<PAGE>
<PAGE>
Dear shareholder
"Providing secure income remains our top priority"
Photo of Richard J. Franke, Chairman of the Board
Over the past year the municipal market experienced the most dramatic
volatility we have seen in more than a decade. During the period, the Federal
Reserve Board undertook one of the most aggressive inflation-fighting efforts
in its history, raising interest rates six times from February through
November.
The prices of all bonds and bond funds were affected by the Fed's actions,
and the Funds covered in this report were not exceptions. In fact, because
they are newer funds, holding bonds issued when interest rates were moving
lower and bond prices were correspondingly high, these Funds were especially
sensitive to changing interest rates. The fact that your Fund is leveraged
means that it will be more sensitive to changes in interest rates--both up and
down--than unleveraged funds. Our conservative approach to portfolio
management, focused on quality and income dependability, continued throughout
this period.
Importantly, your Nuveen Fund continued to provide an attractive level of
income free from federal, state, and in some cases, local taxes. On November
30, 1994, current yields on share prices for the Funds covered in this report
ranged from 6.45% to 6.93%. To equal these yields, an investor in the 36%
federal income tax bracket would need to earn at least 10.08% on taxable
alternatives. This taxable yield is extremely difficult to achieve on
investments of comparable quality.
Of course, in investing as in any endeavor, looking back is never as
important as looking ahead. And when we take a long term view of the municipal
market, we believe the outlook for your Fund is positively supported by
several considerations.
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The Federal Reserve's attempt to hold inflation in check seems to be having
its desired effect. At this writing, the economy continues to expand at a
moderate pace and inflation remains under control.
The municipal market's supply and demand characteristics continue to be
positive. In 1994, the supply of new municipal bonds fell by approximately 40%
from 1993, a trend expected to continue in 1995. At the same time, demand for
tax-free bonds, which was subdued over the past 12 months by the market's
extraordinary volatility, is likely to resume its long-term upward trend.
This combination of lower supply--which may be reduced further by the high
volume of bond calls expected in 1995--and rising demand should help support
municipal bond prices in the long term.
Also, the financial strength of most municipal issuers continues to improve.
We are taking steps to provide even greater value to our shareholders, as
reflected in the merger of Nuveen Maryland Premium Income Municipal Fund 2
(NDM) into Nuveen Maryland Premium Income Municipal Fund (NMY) and of Nuveen
Virginia Premium Income Municipal Fund 2 (NVI) into Nuveen Virginia Premium
Income Municipal Fund (NPV). Through the merger of these funds, we are
achieving management efficiencies and improving fund-share liquidity.
Combined with our value approach to investing--a disciplined approach to
security selection and portfolio construction supported by one of the largest
and most respected research teams in the municipal industry--these factors
suggest that the prospects for the municipal market and your Fund remain
attractive.
In closing, I want to welcome new investors to these Funds and thank those
who have been with us for some time.
All of us at Nuveen appreciate your confidence in our family of municipal
bond funds, and we look forward to helping you reach your tax-free investment
objectives in the future.
Sincerely,
Richard J. Franke
Chairman of the Board
January 16, 1995
<PAGE>
<PAGE>
Answering your questions
In January, we spoke with Tom Spalding, head of Nuveen's portfolio management
team, and asked him about recent developments in the municipal market and the
outlook for Nuveen Funds.
Why has my Fund's net asset value dropped so sharply in such a short time?
These have been difficult times for all fixed-income investors. The Bond Buyer
40 index--a measure of municipal market performance--declined by 7.4% over the
past six months. Even 30-year Treasury bonds declined by 6.3% over this
period.
These Funds are down somewhat further for two reasons. First, they are
relatively new, and their portfolios hold bonds issued when interest rates
were lower than they are today. As a result, their net asset values were
affected by interest rate changes.
Leverage increases the impact of interest rate changes on the Fund's net
asset values per common share. Leverage also enables these funds to generate a
higher level of tax-free income than unleveraged funds.
Since my Fund is leveraged, will rising short-term interest rates affect my
dividends?
With long-term bonds yielding around 6.50% and the average 7-day rate on our
short-term preferred shares just over 3.4% at November 30, leverage has
provided an important income benefit to our shareholders over the past year.
Although the Funds' dividends are set to provide relatively stable income,
steady increases in short-term interest rates will affect dividends over time.
Our leveraged funds' dividends have been highly attractive compared with both
unleveraged and taxable alternatives over the past year. We expect an income
advantage to persist over the long term despite short-term fluctuations.
All things considered, leverage continues to provide attractive returns in a
variety of market conditions to investors who understand the uses, benefits,
and characteristics of leverage, and are willing to accept somewhat higher
short-term NAV fluctuations in anticipation of greater long-range returns.
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Will bond calls affect my income or the stability of the net asset value of my
shares?
Since the Funds covered in this report are relatively new and primarily hold
bonds that can't be called for several years, calls shouldn't significantly
affect their income in the near future.
In general, bond calls can mean some reduction in income for investors in
both individual bonds and bond funds, because bonds issued when interest rates
were higher need to be replaced with today's lower yielding bonds.
Older funds often hold bonds priced at premiums to their par values, which
can soften the effect of rising interest rates. However, as these bonds
approach their call dates the premiums gradually decline to the bonds' par
values, reducing net asset values. These Funds primarily hold bonds priced at
discounts to their par values, so though they are more sensitive to interest
rate changes both up and down, they are unaffected by declining premium values
as bonds approach call dates.
Of course, we're continuing to manage all of our portfolios with calls in
mind. As part of our basic management process, we continually evaluate
opportunities to sell bonds approaching their call dates and to reinvest the
proceeds in bonds we think have high potential to provide above-market
returns.
What's the outlook for bonds issued by the states covered in this report?
Our outlook is optimistic for reasons related both to the municipal market in
general and to the economies of these states.
Looking first at the municipal market overall, inflation remains under
control, the financial condition of issuers across the country is generally
strengthening, and the market's supply and demand characteristics are
positive. That is all good news for tax-free investors.
For the states covered in this report, the outlook is also positive. Not
only are the states' financial conditions generally strengthening, the supply
of investment-grade quality bonds also is beginning to shrink while demand is
increasing.
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NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND
NPG
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
<TABLE>
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/93 $0.0620
1/94 $0.0620
2/94 $0.0620
3/94 $0.0620
4/94 $0.0620
5/94 $0.0620
6/94 $0.0620
7/94 $0.0620
8/94 $0.0620
9/94 $0.0620
10/94 $0.0620
11/94 $0.0620
<CAPTION>
FUND HIGHLIGHTS 11/30/94
<S> <C>
Yield 6.92%
Taxable-equivalent yield 11.53%
Annual total return on NAV -17.95%
Taxable-equivalent total return -14.25%
Share price $10.75
NAV $10.64
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND
NMY
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 10 months of steady dividends, following a modest
reduction in February.
<TABLE>
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/93 $0.0630
1/94 $0.0630
2/94 $0.0615
3/94 $0.0615
4/94 $0.0615
5/94 $0.0615
6/94 $0.0615
7/94 $0.0615
8/94 $0.0615
9/94 $0.0615
10/94 $0.0615
11/94 $0.0615
<CAPTION>
FUND HIGHLIGHTS 11/30/94
<S> <C>
Yield 6.49%
Taxable-equivalent yield 10.82%
Annual total return on NAV -19.54%
Taxable-equivalent total return -15.97%
Share price $11.375
NAV $10.79
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND 2
NDM
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
<TABLE>
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/93 $0.0570
1/94 $0.0570
2/94 $0.0570
3/94 $0.0570
4/94 $0.0570
5/94 $0.0570
6/94 $0.0570
7/94 $0.0570
8/94 $0.0570
9/94 $0.0570
10/94 $0.0570
11/94 $0.0570
<CAPTION>
FUND HIGHLIGHTS 11/30/94
<S> <C>
Yield 6.59%
Taxable-equivalent yield 10.98%
Annual total return on NAV -18.35%
Taxable-equivalent total return -14.95%
Share price $10.375
NAV $10.62
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND
NNC
Shareholders in this Fund enjoyed four months of steady dividends, following
an increase in August.
<TABLE>
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/93 $0.0600
1/94 $0.0600
2/94 $0.0600
3/94 $0.0600
4/94 $0.0600
5/94 $0.0600
6/94 $0.0600
7/94 $0.0600
8/94 $0.0625
9/94 $0.0625
10/94 $0.0625
11/94 $0.0625
<CAPTION>
FUND HIGHLIGHTS 11/30/94
<S> <C>
Yield 6.45%
Taxable-equivalent yield 10.93%
Annual total return on NAV -18.75%
Taxable-equivalent total return -14.98%
Share price $11.625
NAV $10.58
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND
NPV
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends, plus supplemental
dividends totaling 3 cents per share.
<TABLE>
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/93 $0.0650
1/94 $0.0650
2/94 $0.0650
3/94 $0.0650
4/94 $0.0650
5/94 $0.0650 $0.0100
6/94 $0.0650
7/94 $0.0650
8/94 $0.0650 $0.0100
9/94 $0.0650
10/94 $0.0650
11/94 $0.0650 $0.0100
<CAPTION>
FUND HIGHLIGHTS 11/30/94
<S> <C>
Yield 6.93%
Taxable-equivalent yield 11.45%
Annual total return on NAV -18.10%
Taxable-equivalent total return -14.30%
Share price $11.25
NAV $10.98
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND 2
NVI
In line with the Fund's objective of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
<TABLE>
12 MONTH DIVIDEND HISTORY
<CAPTION>
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
12/93 $0.0570
1/94 $0.0570
2/94 $0.0570
3/94 $0.0570
4/94 $0.0570
5/94 $0.0570
6/94 $0.0570
7/94 $0.0570
8/94 $0.0570
9/94 $0.0570
10/94 $0.0570
11/94 $0.0570
<CAPTION>
FUND HIGHLIGHTS 11/30/94
<S> <C>
Yield 6.67%
Taxable-equivalent yield 11.02%
Annual total return on NAV -19.14%
Taxable-equivalent total return -15.77%
Share price $10.25
NAV $10.39
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
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Getting to know your fund
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, November 30, 1994) divided by its closing price per share
on that date.
Taxable equivalent yield
The return an investor who is subject to a given 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, those tax rates are assumed to be 40%
for GA and MD, 41% for NC, and 39.5% for VA, based on incomes of
$115,000-$250,000 for investors filing singly, $140,000-$250,000 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.
Annual total return on NAV
The percentage change in a fund's NAV per share over the previous 12 months,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor, who is subject to a given income tax rate would
need to obtain from a fully taxable investment to equal the Fund's stated
total return on NAV.
Leverage
A Fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders. Changes in net asset value per
common share, both up and down, are also magnified.
Each Fund intends to repurchase shares of its common or preferred stock in the
future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 6-month period ended November 30, 1994. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
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PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
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+ $ 2,778,270
1,900,000 Georgia Municipal Electric Authority, 5.500%, 1/01/18 1/03 at 100 A+ 1,510,215
1,500,000 Albany-Dougherty County Hospital Authority (Phoebe
Putney Memorial Hospital), 5.000%, 9/01/20 9/03 at 102 Aaa 1,125,480
3,115,000 Albany Sewerage System Revenue, 6.625%, 7/01/17 7/02 at 102 Aaa 3,045,255
Atlanta General Obligation:
2,625,000 5.600%, 12/01/18 12/03 at 102 AA 2,195,340
500,000 6.100%, 12/01/19 12/04 at 102 AA 448,300
1,000,000 Atlanta Airport System, 6.500%, 1/01/09 No Opt. Call Aaa 990,840
1,500,000 Atlanta Airport Facilities (Atlanta International
Airport), Alternative Minimum Tax, 6.250%, 1/01/21 1/01 at 102 Aaa 1,333,230
3,000,000 Burke County Development Authority, Pollution
Control (Oglethorpe Power Corporation),
7.700%, 1/01/06 1/03 at 103 Aaa 3,305,070
1,150,000 Clayton County and Clayton County Water Authority,
Water and Sewer System, 5.250%, 5/01/12 5/03 at 102 Aaa 956,225
1,540,000 Cobb County and Marietta Water Authority,
8.800%, 11/01/98 (Pre-refunded to 11/01/95) 11/95 at 102 Aaa 1,628,596
1,000,000 Columbus Medical Center Hospital Authority,
7.750%, 7/01/10 No Opt. Call AAA 1,081,290
DeKalb County Hospital Authority (DeKalb
Medical Center):
1,325,000 5.400%, 9/01/10 9/03 at 102 Aaa 1,128,940
2,500,000 5.000%, 9/01/14 9/03 at 102 Aaa 1,953,300
1,250,000 DeKalb County School District, General Obligation,
6.250%, 7/01/11 No Opt. Call AA 1,192,888
2,280,000 Douglasville-Douglas County Water and Sewer
Authority, 5.625%, 6/01/15 No Opt. Call Aaa 1,941,397
3,400,000 Downtown Savannah Authority (Chatham County
Projects), 5.000%, 1/01/11 1/03 at 102 AA 2,752,334
580,000 Downtown Savannah Authority, Board of Public
Education, 5.200%, 8/01/08 8/02 at 102 Aaa 490,384
2,000,000 Floyd County Hospital Authority, 5.200%, 7/01/11 7/03 at 102 Aaa 1,648,160
4,000,000 Floyd County Water System, 5.100%, 11/01/13 11/03 at 102 Aaa 3,220,160
2,000,000 Fulton County Hospital Authority (Georgia Baptist
Health Care System), 6.375%, 9/01/22 9/02 at 102 Baa1 1,609,700
750,000 Fulton County Building Authority (Judicial Center
Facilities), 6.500%, 1/01/15 1/01 at 102 AA 717,593
500,000 Fulton County School District, General Obligation,
6.375%, 5/01/17 No Opt. Call AA 478,455
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<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 750,000 Fulton-DeKalb Hospital Authority (Grady
Memorial), 5.500%, 1/01/20 7/03 at 102 Aaa $ 611,040
Metropolitan Atlanta Rapid Transit Authority:
1,750,000 8.000%, 7/01/12 (Pre-refunded to 7/01/98) 7/98 at 102 Aaa 1,925,928
2,150,000 5.125%, 7/01/12 7/03 at 102 Aaa 1,741,952
1,000,000 6.250%, 7/01/20 No Opt. Call Aaa 917,850
2,000,000 Monroe County Development Authority, Pollution
Control (Gulf Power Company), 6.300%, 9/01/24 9/99 at 102 A2 1,747,360
5,935,000 Monroe County Development Authority, Pollution
Control (Georgia Power Company), 5.750%, 9/01/23 9/98 at 102 A2 4,789,486
1,750,000 Municipal Electric Authority of Georgia,
6.400%, 1/01/09 No Opt. Call A+ 1,674,855
Private Colleges and University Facilities Authority
(Agnes Scott College):
805,000 5.500%, 6/01/13 6/03 at 102 AA- 680,789
2,400,000 5.625%, 6/01/23 6/03 at 102 AA- 1,979,687
1,000,000 Savannah Hospital Authority (Saint Joseph's Hospital),
6.200%, 7/01/23 7/03 at 102 A 847,710
3,410,000 Savannah Water and Sewer System, 5.100%, 12/01/10 12/02 at 102 AA- 2,777,990
2,350,000 Valdosta Housing Authority, Multi-Family Mortgage,
6.050%, 8/01/24 8/03 at 102 Aaa 1,985,350
2,000,000 Puerto Rico Highway and Transportation Authority,
5.250%, 7/01/20 7/03 at 101 1/2 A 1,533,540
2,250,000 Puerto Rico Public Buildings Authority,
5.750%, 7/01/15 7/03 at 101 1/2 A 1,887,547
$71,965,000 Total Investments - (cost $72,941,758) - 93.2% 62,632,506
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 4.9%
$ 2,058,000 Georgia Hospital Financing Authority, Pooled
Hospital Program, Variable Rate Demand Bonds,
3.650%, 3/01/01t VMIG-1 2,058,000
1,200,000 Georgia Health and Education Finance Authority,
Hospital Equipment Loan Program, Variable Rate
Demand Bonds, 3.650%, 12/01/95t Aaa 1,200,000
$ 3,258,000 Total Temporary Investments - 4.9% 3,258,000
===========
Other Assets Less Liabilities - 1.9% 1,290,998
Net Assets - 100% $67,181,504
===========
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<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 19 $31,030,447 49%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 10 16,001,646 26%
PORTFOLIO OF A+ A1 2 3,185,070 5%
INVESTMENTS A, A- A, A2, A3 5 10,805,643 17%
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 1,609,700 3%
TEMPORARY
INVESTMENTS):
TOTAL 37 $62,632,506 100%
<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>
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PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND (NMY)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,750,000 Maryland Community Development Administration,
Single Family Mortgage, 4.950%, 4/01/06 4/04 at 102 Aa $ 1,521,888
Maryland Community Development Administration,
Single Family Mortgage, Alternative Minimum Tax:
1,000,000 7.375%, 4/01/26 4/99 at 102 Aa 1,001,100
2,650,000 6.750%, 4/01/26 4/04 at 102 Aa 2,468,025
Maryland Community Development Administration,
Multi-Family Housing:
3,075,000 6.050%, 5/15/24 5/03 at 102 Aa 2,625,066
3,585,000 5.600%, 5/15/26 5/03 at 102 Aa 2,844,769
1,000,000 6.850%, 5/15/33 5/02 at 102 Aa 934,950
4,800,000 Maryland Department of Transportation,
4.625%, 9/15/07 9/02 at 102 AA 3,870,864
3,000,000 Maryland Health and Higher Educational Facilities
Authority (Anne Arundel Medical Center),
5.000%, 7/01/23 7/03 at 102 Aaa 2,233,230
1,875,000 Maryland Health and Higher Educational Facilities
Authority (Good Samaritan Hospital),
5.750%, 7/01/19 7/03 at 102 A 1,535,888
4,500,000 Maryland Health and Higher Educational Facilities
Authority (Johns Hopkins Hospital), 5.000%, 7/01/23 7/03 at 100 AA- 3,315,285
3,050,000 Maryland Health and Higher Educational Facilities
Authority (University of Maryland Medical System),
5.000%, 7/01/20 7/03 at 100 Aaa 2,301,927
Maryland Health and Higher Educational Facilities
Authority (Sinai Hospital of Baltimore):
1,480,000 5.500%, 7/01/13 7/03 at 102 Aaa 1,253,752
4,000,000 5.250%, 7/01/23 7/03 at 100 Aaa 3,099,320
1,750,000 Maryland Health and Higher Educational Facilities
Authority (Greater Baltimore Medical Center),
5.000%, 7/01/19 7/03 at 100 Aaa 1,327,043
3,125,000 Maryland Health and Higher Educational Facilities
Authority (Howard County General Hospital),
5.500%, 7/01/25 7/03 at 102 Baa1 2,215,406
Maryland National Capital Park and Planning
Commission, General Obligation:
880,000 5.300%, 7/01/09 7/03 at 102 AA 754,644
800,000 5.300%, 7/01/10 7/03 at 102 AA 680,576
950,000 5.300%, 7/01/11 7/03 at 102 AA 801,981
950,000 5.300%, 7/01/12 7/03 at 102 AA 796,461
2,915,000 Maryland Stadium Authority Sports Facility,
Alternative Minimum Tax, 7.500%, 12/15/10 12/99 at 102 AA- 3,004,578
1,500,000 Maryland Transportation Authority (Baltimore/
Washington International Airport), Alternative
Minimum Tax, 6.250%, 7/01/14 7/04 at 102 Aaa 1,373,475
<PAGE>
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,985,000 Maryland Transportation Authority, 5.750%, 7/01/15 7/02 at 100 A1 $ 2,537,907
Anne Arundel County General Obligation:
2,730,000 5.250%, 4/15/12 4/03 at 102 AA+ 2,280,233
3,175,000 5.300%, 4/15/15 4/03 at 102 AA+ 2,614,295
6,000,000 Anne Arundel County, Pollution Control (Baltimore
Gas and Electric Company), 6.000%, 4/01/24 4/04 at 102 A2 5,173,380
3,600,000 Baltimore County General Obligation, 7.750%, 7/01/16
(Pre-refunded to 1/01/96) 1/96 at 102 Aaa 3,780,396
2,435,000 Baltimore County Revenue Authority, 5.375%, 7/01/18 7/03 at 102 A 1,936,312
Baltimore General Obligation:
1,210,000 5.375%, 10/15/08 10/03 at 100 Aaa 1,042,911
1,000,000 5.375%, 10/15/09 10/03 at 100 Aaa 854,490
1,250,000 5.375%, 10/15/10 10/03 at 100 Aaa 1,058,113
2,500,000 Montgomery County General Obligation,
5.000%, 10/01/08 10/03 at 102 Aaa 2,108,300
6,100,000 Montgomery County Solid Waste Resource Recovery
Project, 5.875%, 6/01/13 6/03 at 102 Aaa 5,348,297
5,695,000 Morgan State University, 6.100%, 7/01/20 No Opt. Call Aaa 5,094,462
1,000,000 Prince George's County General Obligation,
5.750%, 3/15/09 3/03 at 102 Aaa 898,520
2,250,000 Prince George's County Housing Authority (GNMA
and FNMA), Single Family Mortgage, Alternative
Minimum Tax, 6.500%, 12/01/15 6/02 at 100 AAA 2,051,370
3,750,000 Prince George's County, Pollution Control (Potomac
Electric Project), 6.375%, 1/15/23 1/03 at 102 A1 3,450,263
3,750,000 Prince George's County, Solid Waste Management
System, 5.250%, 6/15/13 6/03 at 102 A 3,001,313
1,510,000 Rockville General Obligation, 4.600%, 4/15/03 No Opt. Call Aa1 1,330,401
1,030,000 Rockville FHA-Insured Mortgage (Summit
Apartments), 5.250%, 7/01/09 1/04 at 102 Aaa 902,713
University of Maryland:
900,000 5.375%, 4/01/08 4/03 at 102 AA+ 787,184
4,500,000 5.000%, 10/01/11 10/03 at 101 AA+ 3,568,500
1,000,000 5.500%, 4/01/12 4/03 at 102 AA+ 852,400
1,780,000 Washington County Sanitary District, 5.375%, 1/01/15 1/03 at 102 Aaa 1,473,732
2,000,000 Washington Metropolitan Area Transit Authority,
6.000%, 7/01/07 No Opt. Call Aaa 1,918,100
Washington Suburban Sanitary District:
1,250,000 6.100%, 1/01/04 1/02 at 102 Aa1 1,249,050
1,115,000 6.200%, 6/01/09 6/02 at 102 Aa1 1,073,766
1,000,000 Washington Suburban Sanitary District, Water Supply
System, 5.250%, 12/01/11 12/03 at 102 Aa1 829,330
4,700,000 Puerto Rico Highway and Transportation Authority,
5.250%, 7/01/20 7/03 at 101 1/2 A 3,603,818
<PAGE>
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,200,000 Puerto Rico Public Buildings Authority,
5.750%, 7/01/15 7/03 at 101 1/2 A $ 1,845,601
1,010,000 Puerto Rico Telephone Authority, 5.500%, 1/01/22 1/03 at 101 1/2 A+ 813,646
$122,060,000 Total Investments - (cost $120,372,423) - 97.0% 103,439,031
============
Other Assets Less Liabilities - 3.0% 3,211,039
Net Assets - 100% $106,650,070
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 18 $ 38,120,151 37%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 22 39,205,346 38%
PORTFOLIO OF A+ A1 3 6,801,816 6%
INVESTMENTS: A, A- A, A2, A3 6 17,096,312 17%
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 2,215,406 2%
TOTAL 50 $103,439,031 100%
<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>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND 2 (NDM)
<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 $ 1,060,001
3,455,000 5.600%, 5/15/26 5/03 at 102 Aa 2,741,612
995,000 Maryland Community Development Administration,
Single Family Mortgage, Alternative Minimum Tax,
6.800%, 4/01/22 4/03 at 102 Aa 939,668
Maryland Community Development Administration,
Single Family Mortgage:
1,900,000 5.900%, 4/01/11 4/04 at 102 Aa 1,684,730
1,000,000 5.350%, 4/01/17 4/04 at 102 Aa 801,510
1,000,000 Maryland Community Development Administration,
6.450%, 4/01/14 4/04 at 102 Aa 932,080
1,330,000 Maryland Community Development Administration,
Multi-Family Housing, Alternative Minimum Tax,
5.750%, 5/15/24 5/03 at 102 Aa 1,084,429
4,000,000 Maryland Department of Transportation,
4.600%, 12/15/02 No Opt. Call AA 3,520,520
3,000,000 Maryland General Obligation, 4.600%, 7/15/07 7/03 at 101 1/2 Aaa 2,455,290
870,000 Maryland Health and Higher Educational Facilities
Authority (Sinai Hospital of Baltimore),
5.500%, 7/01/13 7/03 at 102 Aaa 737,003
2,000,000 Maryland Health and Higher Educational Facilities
Authority (Peninsula Medical Center),
5.000%, 7/01/23 7/03 at 102 A 1,423,420
3,000,000 Maryland Health and Higher Educational Facilities
Authority (Frederick Memorial Hospital),
5.000%, 7/01/18 7/03 at 102 Aaa 2,289,240
1,500,000 Maryland Stadium Authority, Sports Facility,
Alternative Minimum Tax, 7.500%, 12/15/10 12/99 at 102 AA- 1,546,095
Maryland Transportation Authority (Baltimore/
Washington International Airport), Alternative
Minimum Tax:
4,000,000 6.250%, 7/01/14 7/04 at 102 Aaa 3,662,600
3,000,000 6.400%, 7/01/19 7/04 at 102 Aaa 2,830,110
Anne Arundel County General Obligation:
1,330,000 5.300%, 4/15/17 4/03 at 102 AA+ 1,082,593
1,435,000 5.300%, 4/15/18 4/03 at 102 AA+ 1,161,762
2,000,000 Baltimore County Metropolitan District, General
Obligation, 4.900%, 8/01/11 8/03 at 102 Aaa 1,597,080
<PAGE>
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Baltimore General Obligation:
$ 1,130,000 6.000%, 10/15/03 No Opt. Call Aaa $ 1,136,068
1,305,000 6.000%, 10/15/05 No Opt. Call Aaa 1,289,523
1,415,000 6.000%, 10/15/06 No Opt. Call Aaa 1,371,135
1,000,000 7.150%, 10/15/08 No Opt. Call A1 1,046,590
3,000,000 Baltimore Water System, 5.000%, 7/01/24 No Opt. Call Aaa 2,222,190
2,350,000 Baltimore Parking System, 5.100%, 7/01/13 7/03 at 102 Aaa 1,863,738
3,000,000 Baltimore Wastewater Project, 6.500%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 100 Aaa 3,104,550
2,410,000 Calvert County Sanitary District, General Obligation,
5.000%, 7/15/19 7/03 at 102 Aa 1,818,080
4,500,000 Calvert County Pollution Control (Baltimore Gas and
Electric Company), 5.550%, 7/15/14 7/04 at 102 A2 3,742,110
1,525,000 Frederick FHA-Insured Mortgage (Carrollton
Fiedpointe Apartments), 5.800%, 9/01/24 3/03 at 102 AAA 1,261,221
2,000,000 Howard County General Obligation, 5.250%, 8/15/11 8/03 at 102 Aa1 1,682,480
3,000,000 Montgomery County General Obligation,
5.000%, 10/01/11 10/03 at 102 Aaa 2,476,290
500,000 Montgomery County Housing Opportunities
Commission, 6.000%, 7/01/14 7/04 at 102 Aa 437,480
Montgomery County Housing Opportunity
Commission, Single Family Mortgage:
815,000 7.000%, 7/01/14 1/95 at 100 Aa 800,460
2,000,000 6.600%, 7/01/14 7/04 at 102 Aa 1,868,900
3,500,000 Montgomery County, Solid Waste Resource Recovery
Project, 5.875%, 6/01/13 6/03 at 102 Aaa 3,068,695
3,750,000 Morgan State University, 6.100%, 7/01/20 No Opt. Call Aaa 3,354,563
3,000,000 Northeast Maryland Waste Disposal Authority,
Resource Recovery, 7.150%, 1/01/04 No Opt. Call Aaa 3,158,250
Prince George's County Housing Authority (Cherry
Hill Apartments):
1,500,000 5.900%, 3/20/10 9/03 at 102 AAA 1,362,180
2,500,000 6.000%, 9/20/15 9/03 at 102 Aaa 2,212,950
1,000,000 Prince George's County Housing Authority (GNMA),
6.350%, 7/20/20 1/03 at 102 AAA 898,940
1,250,000 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 1,170,050
1,250,000 Prince George's County Pollution Control (Potomac
Electric Project), 6.375%, 1/15/23 1/03 at 102 A1 1,150,086
3,000,000 University of Maryland, 5.000%, 10/01/10 10/03 at 101 AA+ 2,400,210
Washington Metropolitan Area Transit Authority:
1,000,000 4.800%, 1/01/04 No Opt. Call Aaa 856,870
1,500,000 5.250%, 7/01/14 1/04 at 102 Aaa 1,219,605
<PAGE>
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
Washington Suburban Sanitary District:
$ 1,000,000 7.100%, 12/01/02 12/98 at 102 Aaa $ 1,078,490
1,500,000 5.375%, 6/01/12 6/03 at 102 Aa1 1,260,210
$92,665,000 Total Investments - (cost $92,853,885) - 96.1% 80,861,657
===========
Other Assets Less Liabilities - 3.9% 3,244,048
Net Assets - 100% $84,105,705
===========
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 24 $46,676,631 58%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 18 26,822,820 33%
PORTFOLIO OF A+ A1 2 2,196,676 3%
INVESTMENTS: A, A- A, A2, A3 2 5,165,530 6%
TOTAL 46 $80,861,657 100%
<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>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
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- $ 4,010,050
1,500,000 5.750%, 12/01/16 9/03 at 102 1/2 A- 1,222,005
North Carolina Housing Finance Agency, Alternative
Minimum Tax:
3,185,000 6.800%, 9/01/25 9/02 at 102 Aa 2,939,500
6,000,000 6.700%, 9/01/26 3/04 at 102 Aa 5,460,960
1,075,000 7.850%, 9/01/28 3/00 at 102 Aa 1,100,370
North Carolina Housing Finance Agency:
650,000 5.800%, 7/01/14 1/03 at 102 AA 557,616
1,000,000 5.900%, 7/01/26 1/03 at 102 AA 827,010
North Carolina Medical Care Commission
(Mercy Hospital):
3,300,000 9.625%, 8/01/15 (Pre-refunded to 8/01/95) 8/95 at 102 AAA 3,473,283
2,500,000 6.500%, 8/01/15 8/02 at 102 A- 2,275,575
3,000,000 North Carolina Medical Care Commission (Carolina
Medicorp), 5.500%, 5/01/15 5/02 at 102 AA 2,464,080
1,000,000 North Carolina Medical Care Commission
(Presbyterian Health Services), 5.500%, 10/01/20 10/03 at 102 AA 789,100
1,850,000 North Carolina Medical Care Commission (Memorial
Mission Hospital), 5.500%, 10/01/18 10/03 at 102 Aaa 1,528,415
3,650,000 North Carolina Medical Care Commission (Moore
Regional Hospital), 5.000%, 10/01/18 10/03 at 102 A+ 2,662,420
North Carolina Municipal Power Agency,
Number 1 Catawba:
1,935,000 10.500%, 1/01/10 No Opt. Call Aaa 2,566,120
5,955,000 7.625%, 1/01/14 (Pre-refunded to 1/01/98) 1/98 at 102 Aaa 6,425,862
4,000,000 5.750%, 1/01/15 1/03 at 100 A 3,329,560
2,750,000 8.500%, 1/01/17 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 2,909,363
5,250,000 Buncombe County Metropolitan Sewer District,
5.500%, 7/01/22 7/03 at 102 Aaa 4,359,495
Cabarrus County General Obligation:
1,740,000 4.600%, 3/01/07 3/03 at 102 Aaa 1,411,175
1,075,000 4.600%, 3/01/08 3/03 at 102 Aaa 847,304
2,015,000 4.800%, 3/01/09 3/03 at 102 Aaa 1,603,517
Catawba County General Obligation:
1,240,000 4.600%, 6/01/03 No Opt. Call AA- 1,090,902
1,150,000 4.600%, 6/01/04 No Opt. Call AA- 989,529
3,500,000 Charlotte-Mecklenburg Hospital Authority,
5.750%, 1/01/12 1/02 at 102 AA 3,064,495
Charlotte General Obligation:
2,600,000 5.250%, 2/01/17 2/03 at 102 Aaa 2,121,236
2,755,000 5.250%, 2/01/18 2/03 at 102 Aaa 2,235,435
<PAGE>
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,000,000 Charlotte Mortgage Revenue Refunding Bonds (Tryon
Hills Apartments Project), 5.875%, 1/01/25 1/03 at 105 Aaa $ 831,470
3,000,000 Craven Regional Medical Authority, 5.625%, 10/01/17 10/03 at 102 Aaa 2,532,840
1,250,000 Cumberland County (Cumberland County Hospital
System), 5.500%, 10/01/14 10/03 at 100 Aaa 1,056,325
4,225,000 Duplin County Certificates of Participation,
5.250%, 8/01/14 8/03 at 102 Aaa 3,406,575
2,885,000 Durham General Obligation, 4.800%, 2/01/10 2/04 at 102 AAA 2,318,126
7,000,000 Fayetteville Public Works Commission,
4.750%, 3/01/14 3/03 at 100 Aaa 5,329,310
Greenville General Obligation:
1,100,000 5.000%, 3/01/10 3/03 at 102 Aa 893,849
1,100,000 5.000%, 3/01/11 3/03 at 102 Aa 884,653
Lincoln County General Obligation:
1,430,000 5.100%, 6/01/07 6/04 at 101 1/2 Aaa 1,231,773
1,900,000 5.100%, 6/01/08 6/04 at 102 Aaa 1,605,614
1,170,000 5.100%, 6/01/09 6/04 at 102 Aaa 969,497
1,300,000 Mecklenberg County Industrial Facilities and
Pollution Control Financing Authority (Fluor
Corporation), 5.250%, 12/01/09 12/01 at 102 A 1,093,963
2,975,000 New Hanover County (New Hanover Regional
Medical Center), 4.750%, 10/01/23 10/03 at 102 Aaa 2,099,547
Orange County General Obligation:
1,200,000 5.100%, 6/01/10 6/03 at 102 Aa1 997,308
3,000,000 5.500%, 2/01/11 2/05 at 102 Aaa 2,623,350
4,485,000 Orange Water and Sewer Authority, 5.200%, 7/01/16 7/03 at 102 AA 3,596,791
2,010,000 Rutherford County General Obligation,
5.100%, 6/01/11 6/03 at 102 Aaa 1,637,989
3,235,000 Wake County (Wake Medical Center), 5.125%, 10/01/26 10/03 at 102 Aaa 2,429,194
3,000,000 Wake County Industrial Facilities and Pollution
Control Finance Authority (Carolina Power and
Light Company), 6.900%, 4/01/09 4/00 at 102 A2 2,996,910
Wilmington General Obligation:
1,365,000 4.800%, 3/01/07 3/03 at 102 A1 1,134,329
1,500,000 5.600%, 6/01/07 6/04 at 101 1/2 A1 1,370,654
1,335,000 4.800%, 3/01/08 3/03 at 102 A1 1,087,864
6,550,000 Puerto Rico Highway and Transportation Authority,
5.500%, 7/01/19 7/03 at 101 1/2 A 5,242,947
$127,690,000 Total Investments - (cost $127,654,353) - 97.4% 109,635,255
============
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.8%
$ 900,000 North Carolina Educational Facilities Finance Agency
============
(Guilford College), Variable Rate Demand Bonds,
3.550%, 9/01/23t A-1+ $ 900,000
Other Assets Less Liabilities - 1.8% 1,972,871
Net Assets - 100% $112,508,126
============
<PAGE>
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 24 $ 57,552,815 53%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 25,656,163 23%
PORTFOLIO OF A+ A1 4 6,255,267 6%
INVESTMENTS A, A- A, A2, A3 7 20,171,010 18%
(EXCLUDING
TEMPORARY
INVESTMENTS):
TOTAL 49 $109,635,255 100%
<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>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND (NPV)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 5,000,000 Virginia College Building Authority (University of
Richmond Project), 5.550%, 11/01/19
(Mandatory put 11/01/04) 11/04 at 100 Aa $ 4,636,650
2,750,000 Virginia College Building Authority (The Washington
and Lee University), 5.800%, 1/01/24 1/04 at 102 AA 2,315,390
Virginia Housing Development Authority, Alternative
Minimum Tax:
4,000,000 6.200%, 7/01/21 1/02 at 102 Aa 3,412,320
3,400,000 6.550%, 1/01/27 1/02 at 102 Aa 3,024,504
3,240,000 6.300%, 1/01/27 1/02 at 102 Aa 2,783,970
2,945,000 6.250%, 1/01/27 1/02 at 102 Aa 2,512,615
1,750,000 Virginia Transportation Board, 5.500%, 5/15/18 5/03 at 102 AA 1,439,183
1,595,000 Albemarle County Industrial Development Authority
(Martha Jefferson Hospital), 5.800%, 10/01/09 10/03 at 102 A 1,405,179
1,500,000 Albemarle County Service Authority, Water and
Sewer System, 5.750%, 8/01/11 8/02 at 102 Aa 1,329,165
1,000,000 Alexandria Industrial Development Authority
(Community Hospital), 5.500%, 7/01/14 7/03 at 102 Aaa 837,590
5,750,000 Chesapeake Bay Bridge and Tunnel Commission,
5.750%, 7/01/25 7/01 at 100 Aaa 4,860,590
1,000,000 Chesapeake General Obligation, 5.650%, 12/01/10 12/02 at 102 AA 896,960
1,000,000 Fairfax County General Obligation, 5.400%, 5/01/11 5/03 at 102 Aaa 862,720
3,750,000 Fairfax County Economic Development Authority
(Ogden Martin Systems Project), Alternative
Minimum Tax, 7.750%, 2/01/11 2/99 at 103 Aa 3,893,063
4,500,000 Fairfax County Industrial Development Authority
(Inova Health System), 5.000%, 8/15/23 No Opt. Call AA- 3,180,645
Fairfax County Water Authority:
2,200,000 6.125%, 1/01/29 (Pre-refunded to 1/01/00) 1/00 at 100 Aaa 2,234,826
3,050,000 5.750%, 4/01/29 4/02 at 100 AA- 2,542,724
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+ 4,811,099
2,445,000 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 2,478,912
3,250,000 Harrisburg Industrial Development Authority
(Rockingham Memorial Hospital), 5.250%, 12/01/22 12/02 at 102 Aaa 2,507,115
2,000,000 Henrico County General Obligation, 5.350%, 1/15/11 1/03 at 102 Aaa 1,716,680
1,000,000 Henrico County Water and Sewer System,
6.250%, 5/01/13 5/02 at 100 A1 925,870
<PAGE>
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,800,000 Loudoun County General Obligation,
5.500%, 10/01/13 10/03 at 102 AA- $ 1,527,966
3,250,000 Louisa Industrial Development Authority, Pollution
Control (Virginia Electric and Power Company),
5.450%, 1/01/24 1/04 at 102 A2 2,493,660
Lynchburg Industrial Development Authority
(Randolph-Macon Women's College):
2,940,000 5.875%, 9/01/13 9/03 at 102 A 2,583,231
3,000,000 5.875%, 9/01/23 9/03 at 102 A 2,513,460
2,185,000 Newport News General Obligation, 5.250%, 6/01/11 6/03 at 102 AA- 1,803,062
Portsmouth General Obligation:
1,000,000 5.500%, 8/01/13 8/03 at 102 AA- 844,000
2,500,000 5.500%, 8/01/19 8/03 at 102 AA- 2,037,100
2,290,000 Prince William County, General Obligation,
5.100%, 8/01/09 8/03 at 102 AA- 1,905,807
1,500,000 Prince William County Industrial Development
Authority (Prince William Hospital), 5.625%, 4/01/12 4/03 at 102 A 1,231,980
3,500,000 Prince William County Park Authority,
6.875%, 10/15/16 10/04 at 102 A- 3,301,935
4,050,000 Richmond General Obligation, 5.500%, 7/15/23 7/03 at 102 AA 3,231,900
2,125,000 Richmond Metropolitan Authority Expressway,
5.750%, 7/15/22 7/02 at 100 Aaa 1,808,885
3,800,000 Roanoke County General Obligation, 5.000%, 6/01/21 6/03 at 100 AA 2,882,186
1,825,000 Roanoke County Water System, 5.125%, 7/01/13 7/03 at 102 Aaa 1,475,367
3,000,000 Roanoke Industrial Development Authority (Roanoke
Memorial), 5.000%, 7/01/24 7/03 at 100 Aaa 2,210,580
4,500,000 Southeastern Public Service Authority, Regional
Solid Waste System, Alternative Minimum Tax,
6.000%, 7/01/17 7/03 at 102 A- 3,896,955
2,355,000 Suffolk Redevelopment and Housing Authority
(Wilson Pines Apartments), 6.125%, 1/01/23 1/01 at 100 Aaa 2,061,591
2,595,000 Upper Occoquan Sewer Authority, 5.000%, 7/01/21 1/04 at 102 Aaa 1,947,391
4,250,000 Washington D.C. Airports Authority, 5.250%, 10/01/22 10/03 at 102 Aaa 3,275,815
3,500,000 Puerto Rico Highway Transportation Authority,
6.500%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 AAA 3,651,725
3,665,000 Puerto Rico Highway and Transportation Authority,
5.250%, 7/01/20 7/03 at 101 1/2 A 2,810,211
$121,815,000 Total Investments - (cost $119,637,980) - 97.4% 104,102,577
============
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.8%
$ 800,000 Henrico County Industrial Development Health
============ Facility, Series 1994 (The Hermitage at Cedarfield),
Variable Rate Demand Bonds, 3.600%, 5/01/24t VMIG-1 $ 800,000
Other Assets Less Liabilities - 1.8% 1,931,855
Net Assets - 100% $106,834,432
===========
<PAGE>
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 13 $ 29,450,875 28%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 19 46,199,210 44%
PORTFOLIO OF A+ A1 2 5,736,969 6%
INVESTMENTS A, A- A, A2, A3 8 20,236,611 20%
(EXCLUDING Non-rated Non-rated 1 2,478,912 2%
TEMPORARY
INVESTMENTS):
TOTAL 43 $104,102,577 100%
<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>
<PAGE>
<TABLE>
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND 2 (NVI)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 2,500,000 Virginia College Building Authority (University of
Richmond Project), 5.550%, 11/01/19 (Mandatory
put 11/01/04) 11/04 at 100 Aa $ 2,318,325
1,250,000 Virginia College Building Authority (Hampton
University), 5.750%, 4/01/14 4/03 at 102 A+ 1,062,238
2,640,000 Virginia Education Loan Authority, Student Loan,
Alternative Minimum Tax, 5.050%, 9/01/03 No Opt. Call Aaa 2,340,281
Virginia Housing Development Authority, Alternative
Minimum Tax:
1,000,000 6.750%, 7/01/21 1/02 at 102 Aa 916,170
1,600,000 6.550%, 1/01/27 1/02 at 102 Aa 1,423,296
1,660,000 Bedford Electric System, 5.250%, 6/01/25 6/04 at 102 Aaa 1,278,947
1,750,000 Fairfax County General Obligation, 5.400%, 5/01/11 5/03 at 102 Aaa 1,509,760
1,750,000 Fairfax County Economic Development Authority
(Ogden Martin Systems Project), Alternative
Minimum Tax, 7.750%, 2/01/11 2/99 at 103 Aa 1,816,763
2,850,000 Fairfax County Industrial Development Authority
(Inova Health System), 5.000%, 8/15/23 No Opt. Call AA- 2,014,409
1,000,000 Fairfax County Redevelopment and Housing
Authority, 5.750%, 8/01/25 8/03 at 102 Aaa 828,910
1,500,000 Hampton Roads Sanitation District, Wastewater
System, 5.000%, 10/01/23 10/03 at 102 AA 1,106,850
2,000,000 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 2,027,740
Norfolk General Obligation:
3,200,000 5.375%, 2/01/07 2/03 at 102 AA 2,872,768
1,180,000 5.500%, 2/01/08 2/03 at 102 AA 1,058,212
1,000,000 Portsmouth General Obligation, 5.500%, 8/01/13 8/03 at 102 AA- 844,000
1,750,000 Prince William County General Obligation,
5.250%, 8/01/10 8/03 at 102 AA- 1,472,940
Prince William County Service Authority, Water
and Sewer System:
1,250,000 6.500%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 1,308,800
2,740,000 5.000%, 7/01/21 7/03 at 102 Aaa 2,056,206
1,000,000 Richmond General Obligation, 6.500%, 7/15/21
(Pre-refunded to 7/15/02) 7/02 at 102 Aaa 1,044,760
1,415,000 Rivanna Water and Sewer Authority, 4.750%, 10/01/07 10/03 at 101 1/2 Aa 1,159,593
3,000,000 Roanoke Industrial Development Authority (Roanoke
Memorial Hospitals), 6.500%, 7/01/25
(Pre-refunded to 7/01/00) 7/00 at 100 Aaa 3,091,590
1,250,000 Rockingham County Industrial Development
Authority (Bridgewater College), 6.000%, 10/01/23 10/03 at 102 Baa1 1,024,750
<PAGE>
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
$ 1,650,000 Southeastern Public Service Authority, Regional Solid
Waste System, Alternative Minimum Tax,
6.000%, 7/01/17 7/03 at 102 A- $ 1,428,884
1,750,000 Upper Occoquan Sewer Authority, 5.000%, 7/01/21 1/04 at 102 Aaa 1,313,270
1,000,000 Virginia Beach Development Authority (Sentara
Bayside Hospital), 6.600%, 11/01/09 11/01 at 102 AA 957,020
Virginia Beach Development Authority, GNMA
(Pembroke Lake Apartments):
500,000 6.125%, 6/20/13 6/04 at 102 AAA 452,505
835,000 6.200%, 6/20/28 6/03 at 102 AAA 723,244
2,000,000 Virginia Beach Water and Sewer System,
5.125%, 2/01/19 2/04 at 102 Aaa 1,565,640
2,000,000 Washington D.C. Airports Authority, 5.250%, 10/01/22 10/03 at 102 Aaa 1,541,560
1,500,000 Washington D.C. Airports Authority, Alternative
Minimum Tax, 6.625%, 10/01/19 10/02 at 102 Aaa 1,407,255
2,000,000 Winchester General Obligation, 5.500%, 1/15/14 1/04 at 102 AA 1,697,379
Puerto Rico Highway and Transportation Authority:
1,700,000 5.500%, 7/01/19 7/03 at 101 1/2 A 1,360,764
1,000,000 5.250%, 7/01/20 7/03 at 101 1/2 A 766,769
$55,220,000 Total Investments - (cost $55,394,097) - 97.2% 47,791,598
===========
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.2%
$ 200,000 Henrico County Industrial Development Health
Facility, Series 1994 (The Hermitage at Cedarfield),
Variable Rate Demand Bonds, 3.600%, 5/01/24t VMIG-1 200,000
400,000 Peninsula Port Authority of Virginia (Shell Coal and
Terminal Company), Variable Rate Demand Bonds,
3.450%, 12/01/05t AAA 400,000
$ 600,000 Total Temporary Investments - 1.2% 600,000
===========
Other Assets Less Liabilities - 1.6% 760,745
Net Assets - 100% $49,152,343
===========
<PAGE>
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 14 $20,462,728 43%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 19,657,725 41%
PORTFOLIO OF A+ A1 1 1,062,238 2%
INVESTMENTS A, A- A, A2, A3 3 3,556,417 8%
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 1,024,750 2%
TEMPORARY Non-rated Non-rated 1 2,027,740 4%
INVESTMENTS):
TOTAL 33 $47,791,598 100%
<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>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPG NMY NDM NNC
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $62,632,506 $103,439,031 $80,861,657 $109,635,255
Temporary investments in short-term municipal
securities, at market value which equals cost (note 1) 3,258,000 -- -- 900,000
Cash 53,393 1,450,143 1,596,594 55,062
Receivables:
Interest 1,571,928 2,203,894 1,613,840 2,486,802
Investments sold -- -- 454,406 --
Other assets 15,450 18,630 -- 6,816
----------- ------------ ----------- ------------
Total assets 67,531,277 107,111,698 84,526,497 113,083,935
----------- ------------ ----------- ------------
LIABILITIES
Accrued expenses:
Management fees (note 6) 35,804 56,912 44,965 59,954
Other 71,871 21,327 84,999 104,625
Preferred share dividends payable 12,524 26,325 27,701 23,074
Common share dividends payable 229,574 357,064 263,127 388,156
----------- ------------ ----------- ------------
Total liabilities 349,773 461,628 420,792 575,809
----------- ------------ ----------- ------------
Net assets (note 7) $67,181,504 $106,650,070 $84,105,705 $112,508,126
=========== ============ =========== ============
Preferred shares, at liquidation value $27,800,000 $ 44,000,000 $35,100,000 $ 46,800,000
=========== ============ =========== ============
Preferred shares outstanding 1,112 1,760 1,404 1,872
=========== ============ =========== ============
Common shares outstanding 3,702,804 5,805,923 4,616,257 6,210,502
=========== ============ =========== ============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 10.64 $ 10.79 $ 10.62 $ 10.58
=========== ============ =========== ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPV NVI
<S> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $104,102,577 $47,791,598
Temporary investments in short-term municipal
securities, at market value which equals cost (note 1) 800,000 600,000
Cash 45,284 18,371
Receivables:
Interest 2,462,130 995,697
Investments sold -- --
Other assets 18,226 8,339
------------ -----------
Total assets 107,428,217 49,414,005
------------ -----------
LIABILITIES
Accrued expenses:
Management fees (note 6) 56,972 26,234
Other 74,041 77,816
Preferred share dividends payable 26,655 2,137
Common share dividends payable 436,117 155,475
------------ -----------
Total liabilities 593,785 261,662
------------ -----------
Net assets (note 7) $106,834,432 $49,152,343
============ ===========
Preferred shares, at liquidation value $ 43,000,000 $20,800,000
============ ===========
Preferred shares outstanding 1,720 832
============ ===========
Common shares outstanding 5,814,897 2,727,625
============ ===========
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 10.98 $ 10.39
============ ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended November 30, 1994
(Unaudited)
<CAPTION>
NPG NMY NDM NNC
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $ 2,135,573 $ 3,402,962 $ 2,642,239 $ 3,550,691
----------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 233,347 373,069 293,246 390,977
Preferred shares--auction fees 34,845 55,151 43,995 58,660
Preferred shares--dividend disbursing agent fees 7,521 7,521 7,521 7,521
Shareholders' servicing agent fees and expenses 6,289 9,043 9,108 8,282
Custodian's fees and expenses 21,629 24,181 22,150 24,336
Trustees' fees and expenses (note 6) 876 1,847 1,597 1,847
Professional fees 10,300 9,992 9,119 6,365
Shareholders' reports--printing and mailing expenses 14,947 14,098 14,003 15,806
Stock exchange listing fees 1,337 11,284 2,306 9,807
Investor relations expense 3,735 6,494 3,068 3,486
Other expenses 6,639 9,753 8,599 7,080
----------- ----------- ----------- -----------
Total expenses 341,465 522,433 414,712 534,167
----------- ----------- ----------- -----------
Net investment income 1,794,108 2,880,529 2,227,527 3,016,524
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (918,521) (644,711) (2,337,282) (1,734,412)
Net change in unrealized appreciation or depreciation
of investments (5,123,464) (10,398,858) (5,927,168) (9,291,977)
----------- ----------- ----------- -----------
Net gain (loss) from investments (6,041,985) (11,043,569) (8,264,450) (11,026,389)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from operations $(4,247,877) $ (8,163,040) $ (6,036,923) $(8,009,865)
=========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended November 30, 1994
(Unaudited)
<CAPTION>
NPV NVI
<S> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $ 3,501,381 $ 1,544,548
----------- ----------
Expenses:
Management fees (note 6) 371,790 170,378
Preferred shares--auction fees 53,897 26,071
Preferred shares--dividend disbursing agent fees 7,521 7,521
Shareholders' servicing agent fees and expenses 7,967 6,351
Custodian's fees and expenses 23,493 19,535
Trustees' fees and expenses (note 6) 1,089 788
Professional fees 5,900 9,895
Shareholders' reports--printing and mailing expenses 17,334 14,830
Stock exchange listing fees 9,532 2,758
Investor relations expense 5,645 2,626
Other expenses 10,347 3,827
----------- ----------
Total expenses 514,515 264,580
----------- ----------
Net investment income 2,986,866 1,279,968
----------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 3) (997,541) (886,821)
Net change in unrealized appreciation or depreciation
of investments (9,524,971) (3,642,750)
----------- ----------
Net gain (loss) from investments (10,522,512) (4,529,571)
----------- ----------
Net increase (decrease) in net assets from operations $ (7,535,646) $(3,249,603)
=========== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPG NMY
6 months ended Year ended 6 months ended Year ended
11/30/94 5/31/94 11/30/94 5/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,794,108 $ 2,848,507 $ 2,880,529 $ 5,151,818
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (918,521) (689,743) (644,711) (608,585)
Net change in unrealized appreciation or depreciation
of investments (5,123,464) (5,200,904) (10,398,858) (6,980,805)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets from
operations (4,247,877) (3,042,140) (8,163,040) (2,437,572)
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From net investment income:
Common shareholders (1,376,291) (2,281,188) (2,141,843) (4,342,608)
Preferred shareholders (391,055) (493,811) (625,778) (926,651)
----------- ----------- ------------ ------------
Decrease in net assets from distributions
to shareholders (1,767,346) (2,774,999) (2,767,621) (5,269,259)
----------- ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares -- 2,102,933 -- --
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 154,431 296,717 75,143 311,250
Preferred shares--net proceeds from sale of shares -- 27,241,063 -- 43,177,256
----------- ----------- ------------ ------------
Net increase in net assets derived from capital
share transactions 154,431 29,640,713 75,143 43,488,506
----------- ----------- ------------ ------------
Net increase (decrease) in net assets (5,860,792) 23,823,574 (10,855,518) 35,781,675
Net assets at beginning of period 73,042,296 49,218,722 117,505,588 81,723,913
----------- ----------- ------------ ------------
Net assets at end of period $67,181,504 $73,042,296 $106,650,070 $117,505,588
=========== =========== ============ ============
Balance of undistributed net investment income at
end of period $ 102,993 $ 76,231 $ 394,352 $ 281,444
=========== =========== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NDM NNC
6 months ended 7/23/93 to 6 months ended Year ended
11/30/94 5/31/94 11/30/94 5/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,227,527 $ 2,759,640 $ 3,016,524 $ 4,638,798
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (2,337,282) (948,436) (1,734,412) (755,496)
Net change in unrealized appreciation or depreciation
of investments (5,927,168) (6,065,060) (9,291,977) (8,844,390)
----------- ----------- ------------ ------------
Net increase (decrease) in net assets from
operations (6,036,923) (4,253,856) (8,009,865) (4,961,088)
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From net investment income:
Common shareholders (1,578,444) (2,102,284) (2,294,275) (3,706,157)
Preferred shareholders (479,801) (461,616) (637,424) (828,176)
----------- ----------- ------------ ------------
Decrease in net assets from distributions
to shareholders (2,058,245) (2,563,900) (2,931,699) (4,534,333)
----------- ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares -- 64,412,941 -- 3,934,000
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 62,192 52,695 268,299 361,480
Preferred shares--net proceeds from sale of shares -- 34,390,793 -- 45,932,337
----------- ----------- ------------ ------------
Net increase in net assets derived from capital
share transactions 62,192 98,856,429 268,299 50,227,817
----------- ----------- ------------ ------------
Net increase (decrease) in net assets (8,032,976) 92,038,673 (10,673,265) 40,732,396
Net assets at beginning of period 92,138,681 100,008 123,181,391 82,448,995
----------- ----------- ------------ ------------
Net assets at end of period $84,105,705 $92,138,681 $112,508,126 $123,181,391
=========== =========== ============ ============
Balance of undistributed net investment income at
end of period $ 365,022 $ 195,740 $ 202,007 $ 117,182
=========== =========== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPV NVI
6 months ended Year ended 6 months ended 7/23/93 to
11/30/94 5/31/94 11/30/94 5/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,986,866 $ 5,420,819 $ 1,279,968 $ 1,643,046
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (997,541) (636,209) (886,821) (1,003,410)
Net change in unrealized appreciation or depreciation
of investments (9,524,971) (6,740,245) (3,642,750) (3,959,749)
------------ ------------ ----------- -----------
Net increase (decrease) in net assets from
operations (7,535,646) (1,955,635) (3,249,603) (3,320,113)
------------ ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From net investment income:
Common shareholders (2,379,465) (4,545,450) (932,270) (1,241,400)
Preferred shareholders (606,597) (853,540) (274,842) (253,772)
------------ ------------ ----------- -----------
Decrease in net assets from distributions
to shareholders (2,986,062) (5,398,990) (1,207,112) (1,495,172)
------------ ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from sale of Common shares -- -- -- 37,900,597
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 452,239 833,955 55,613 18,691
Preferred shares--net proceeds from sale of shares -- 42,197,835 -- 20,349,434
------------ ------------ ----------- -----------
Net increase in net assets derived from capital
share transactions 452,239 43,031,790 55,613 58,268,722
------------ ------------ ----------- -----------
Net increase (decrease) in net assets (10,069,469) 35,677,165 (4,401,102) 53,453,437
Net assets at beginning of period 116,903,901 81,226,736 53,553,445 100,008
------------ ------------ ----------- -----------
Net assets at end of period $106,834,432 $116,903,901 $49,152,343 $53,553,445
============ ============ =========== ===========
Balance of undistributed net investment income at
end of period $ 413,548 $ 412,744 $ 220,730 $ 147,874
============ ============ =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At November 30, 1994, 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 Maryland Premium Income Municipal Fund 2 (NDM), Nuveen North
Carolina Premium Income Municipal Fund (NNC), Nuveen Virginia Premium Income
Municipal Fund (NPV) and Nuveen Virginia Premium Income Municipal Fund 2
(NVI). NMY, NNC and NPV are traded on the New York Stock Exchange while NPG,
NDM, and NVI are traded on the American Stock Exchange.
The Funds are registered under the Investment Company Act of 1940 as
closed-end, diversified management investment companies.
Prior to commencement of their investment operations, each Fund had no
operations other than those relating to organizational matters and the initial
capital contributions from Nuveen Advisory Corp. (the "Adviser"), a wholly
owned subsidiary of The John Nuveen Company.
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 principal amount.
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, 1994, there were no such purchase commitments in
any of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued and discount
earned, adjusted for amortization of premiums or discounts on long-term debt
securities when required for federal income tax purposes.
<PAGE>
<PAGE>
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 investment 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 gains
from investment transactions 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
gains from investment transactions, if applicable.
<PAGE>
<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 Series. The dividend
rate on each Series may change every 7 days, as set by the auction agent. The
number of shares outstanding by Series at November 30, 1994, for each Fund is
as follows:
<CAPTION>
NPG NMY NDM NNC
<S> <C> <C> <C> <C>
Number of Shares:
Series T -- -- -- --
Series W -- -- 1,404 --
Series Th 1,112 1,760 -- 1,872
===== ===== ===== =====
<CAPTION>
NPV NVI
<S> <C> <C>
Number of Shares:
Series T -- 832
Series W -- --
Series Th 1,720 --
===== ===
Organization and Offering Costs
Costs incurred by the Funds in connection with the organization and offerings
of both the Common and Preferred shares were as follows:
<CAPTION>
NDM NVI
<S> <C> <C>
$931,197 $688,427
======== ========
These costs were recorded as a reduction of the proceeds from the sale of
the shares.
</TABLE>
Proposed Reorganization
As approved by shareholders on November 18, 1994, NMY will acquire
substantially all of the assets of NDM in exchange for newly issued shares of
NMY and the assumption by NMY of substantially all of the liabilities of NDM.
Following receipt of the NMY shares, NDM will be liquidated and the NMY shares
will be distributed to the shareholders of NDM. As a result of this
reorganization, the assets and liabilities of both Funds will be combined and
the shareholders of NDM will thus become shareholders of NMY. This
reorganization is expected to be completed on or about December 8, 1994. The
investment objectives and policies of the larger combined Fund will be
virtually identical to that of each of the separate Funds.
As approved by shareholders on November 3, 1994, NPV will acquire
substantially all of the assets of NVI in exchange for newly issued shares of
NPV and the assumption by NPV of substantially all of the liabilities of NVI.
Following receipt of the NPV shares, NVI will be liquidated and the NPV shares
will be distributed to the shareholders of NVI. As a result of this
reorganization, the assets and liabilities of both Funds will be combined and
the shareholders of NVI will thus become shareholders of NPV. This
reorganization is expected to be completed on or about December 8, 1994. The
investment objectives and policies of the larger combined Fund will be
virtually identical to that of each of the separate Funds.
<PAGE>
<TABLE>
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
11/30/94 5/31/94 11/30/94 5/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares sold -- 145,000* -- --
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment transactions 12,295 20,891 5,889 17,916
------ -------- ----- ------
Net increase 12,295 165,891 5,889 17,916
====== ======= ===== ======
Preferred shares sold -- 1,112 -- 1,760
====== ======= ===== ======
<FN>
*Amounts shown reflect overallotments for shares sold in the initial public
offering, which occurred during the Fund's initial period ended 5/31/93.
<CAPTION>
NDM NNC
6 months ended 7/23/93 to 6 months ended Year ended
11/30/94 5/31/94 11/30/94 5/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares sold -- 4,600,000 -- 280,000*
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment transactions 5,536 3,603 22,075 21,309
----- --------- ------ -------
Net increase 5,536 4,603,603 22,075 301,309
===== ========= ====== =======
Preferred shares sold -- 1,404 -- 1,872
===== ========= ====== =======
<CAPTION>
NPV NVI
6 months ended Year ended 6 months ended 7/23/93 to
11/30/94 5/31/94 11/30/94 5/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares sold -- -- -- 2,714,130
Shares issued to shareholders due to reinvestment
of distributions from net investment income and
from net realized gains from investment transactions 34,849 52,930 5,099 1,278
------ ------ ----- ---------
Net increase 34,849 52,930 5,099 2,715,408
====== ====== ===== =========
Preferred shares sold -- 1,720 -- 832
====== ====== ===== =========
<FN>
*Amounts shown reflect overallotments for shares sold in the initial public
offering, which occurred during the Fund's initial period ended 5/31/93.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
November 30, 1994, were as follows:
<CAPTION>
NPG NMY NDM NNC
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $6,508,360 $6,599,000 $12,185,780 $21,807,168
Temporary municipal investments 7,858,000 5,400,000 2,300,000 4,500,000
SALES AND MATURITIES
Investments in municipal securities 9,534,321 6,694,517 13,631,109 22,072,504
Temporary municipal investments 4,600,000 5,900,000 3,350,000 3,600,000
========== ========== =========== ===========
<CAPTION>
NPV NVI
<S> <C> <C>
PURCHASES
Investments in municipal securities $24,399,355 $10,141,590
Temporary municipal investments 14,400,000 6,500,000
SALES AND MATURITIES
Investments in municipal securities 23,062,921 10,519,954
Temporary municipal investments 13,600,000 5,900,000
=========== ===========
At November 30, 1994, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting purposes
for each Fund.
At May 31, 1994, the Funds last fiscal year end, the following 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 NDM NNC
<S> <C> <C> <C> <C>
Expiration Year:
2002 $689,743 $608,585 $948,436 $755,496
======== ======== ======== ========
<CAPTION>
NPV NVI
Expiration Year:
<S> <C> <C>
2002 $636,209 $1,003,410
======== ==========
</TABLE>
<PAGE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On November 25, 1994, the following Funds declared Common share dividend
distributions from their ordinary income and supplemental dividend
distributions from their undistributed net investment income which were paid
December 30, 1994, to shareholders of record on December 8, 1994, as follows:
<CAPTION>
NMY NDM NPV NVI
<S> <C> <C> <C> <C>
Dividend per share $.0615 $.0570 $.0650 $.0570
====== ====== ====== ======
Supplemental dividend per share $ -- $.0375 $ -- $.0386
====== ====== ====== ======
On December 1, 1994, NPG and NNC declared Common share dividend
distributions of $.0620 and $.0625, respectively, from their ordinary income
which were paid December 30, 1994, to shareholders of record on December 15,
1994.
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of
investments at November 30, 1994, were as follows:
<CAPTION>
NPG NMY NDM NNC
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ -- $ -- $ -- $ --
Depreciation (10,309,252) (16,933,392) (11,992,228) (18,019,098)
------------ ------------ ------------ ------------
Net unrealized appreciation (depreciation) $(10,309,252) $(16,933,392) $(11,992,228) $(18,019,098)
=========== =========== =========== ============
<CAPTION>
NPV NVI
<S> <C> <C>
Gross unrealized:
Appreciation $ 81,822 $ 27,740
Depreciation (15,617,225) (7,630,239)
------------ -----------
Net unrealized appreciation (depreciation) $(15,535,403) $(7,602,499)
=========== ===========
</TABLE>
<PAGE>
<PAGE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements with the Adviser, 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:
<TABLE>
<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.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At November 30, 1994, net assets consisted of:
<CAPTION>
NPG NMY NDM NNC
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $27,800,000 $ 44,000,000 $35,100,000 $ 46,800,000
Common shares, $.01 par value per share 37,028 58,059 46,163 62,105
Paid-in surplus 51,158,999 80,391,463 63,872,466 85,953,020
Undistributed net investment income 102,993 394,352 365,022 202,007
Accumulated net realized gain (loss) from
investment transactions, net of taxes, if applicable (1,608,264) (1,260,412) (3,285,718) (2,489,908)
Net unrealized appreciation or depreciation
of investments (10,309,252) (16,933,392) (11,992,228) (18,019,098)
----------- ------------ ----------- ------------
Net assets $67,181,504 $106,650,070 $84,105,705 $112,508,126
=========== ============ =========== ============
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
=========== =========== =========== ============
<CAPTION>
NPV NVI
<S> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 43,000,000 $20,800,000
Common shares, $.01 par value per share 58,149 27,276
Paid-in surplus 80,531,888 37,597,067
Undistributed net investment income 413,548 220,730
Accumulated net realized gain (loss) from
investment transactions, net of taxes, if applicable (1,633,750) (1,890,231)
Net unrealized appreciation or depreciation
of investments (15,535,403) (7,602,499)
------------ -----------
Net assets $106,834,432 $49,152,343
============ ===========
Authorized shares:
Common Unlimited Unlimited
Preferred Unlimited Unlimited
============ ===========
</TABLE>
<PAGE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general
obligation, escrowed and revenue bonds. At November 30, 1994, the
revenue sources by municipal purpose for these investments, expressed
as a percent of total investments, were as follows:
<CAPTION>
NPG NMY NDM NNC
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 8% 14% 24% 11%
Health Care Facilities 14 17 5 19
Water / Sewer Facilities 19 3 3 7
Pollution Control Facilities 16 8 6 4
Transportation 4 15 13 --
Educational Facilities 4 10 7 --
Electric Utilities 5 1 -- 12
Lease Rental Facilities 3 4 2 3
Other 7 8 12 5
General Obligation Bonds 13 16 23 25
Escrowed Bonds 7 4 5 14
----- ----- ----- -----
100% 100% 100% 100%
===== ===== ===== =====
<CAPTION>
NPV NVI
<S> <C> <C>
Revenue Bonds:
Housing Facilities 16% 13%
Health Care Facilities 11 6
Water / Sewer Facilities 8 15
Pollution Control Facilities 7 --
Transportation 9 6
Educational Facilities 11 14
Electric Utilities -- 3
Lease Rental Facilities -- --
Other 15 11
General Obligation Bonds 17 20
Escrowed Bonds 6 12
----- -----
100% 100%
===== =====
</TABLE>
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 (46% for NPG, 33% for NMY, 45% for NDM, 44%
for NNC, 22% for NPV, and 28% for NVI). 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.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected data for a common share outstanding throughout each period is as follows:
<CAPTION>
Operating performance Dividends from net
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
<S> <C> <C> <C> <C> <C>
NPG
6 Mos. ended
11/30/94 $12.260 $.485 $(1.627) $(.372) $(.106)
Year ended
5/31/94 13.960 .775 (1.568) (.620) (.135)
5/20/93 to
5/31/93 14.050 .001 -- -- --
NMY
6 Mos. ended
11/30/94 12.670 .496 (1.899) (.369) (.108)
Year ended
5/31/94 14.130 .890 (1.298) (.750) (.160)
3/18/93 to
5/31/93 14.050 .069 .073 -- --
NDM
6 Mos. ended
11/30/94 12.370 .483 (1.787) (.342) (.104)
7/23/93 to
5/31/94 14.050 .600 (1.517) (.456) (.102)
<PAGE>
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderst offering costs of period period
<S> <C> <C> <C> <C> <C>
NPG
6 Mos. ended
11/30/94 $ -- $ -- $ -- $10.640 $10.750
Year ended
5/31/94 -- -- (.152) 12.260 12.625
5/20/93 to
5/31/93 -- -- (.091) 13.960 15.000
NMY
6 Mos. ended
11/30/94 -- -- -- 10.790 11.375
Year ended
5/31/94 -- -- (.142) 12.670 12.500
3/18/93 to
5/31/93 -- -- (.062) 14.130 15.250
NDM
6 Mos. ended
11/30/94 -- -- -- 10.620 10.375
7/23/93 to
5/31/94 -- -- (.205) 12.370 12.250
<PAGE>
<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
<S> <C> <C> <C> <C> <C> <C>
NPG
6 Mos. ended
11/30/94 (12.12)% (10.42)% $67,182 .95*% 5.00*% 9%
Year ended
5/31/94 (12.09) (8.05) 73,042 .97 3.97 31
5/20/93 to
5/31/93 -- (.64) 49,219 1.61* .50* --
NMY
6 Mos. ended
11/30/94 (6.08) (12.20) 106,650 .91* 5.02* 6
Year ended
5/31/94 (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* --
NDM
6 Mos. ended
11/30/94 (12.61) (11.63) 84,106 .92* 4.94* 14
7/23/93 to
5/31/94 (15.40) (8.90) 92,139 .95* 3.90* 21
</TABLE>
<PAGE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
Selected data for a common share outstanding throughout each period is as follows:
<CAPTION>
Operating performance Dividends from net
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
<S> <C> <C> <C> <C> <C>
NNC
6 Mos. ended
11/30/94 $12.340 $.486 $(1.773) $(.370) $(.103)
Year ended
5/31/94 14.000 .752 (1.535) (.600) (.135)
5/20/93 to
5/31/93 14.050 .002 .015 -- --
NPV
6 Mos. ended
11/30/94 12.790 .514 (1.809) (.410) (.105)
Year ended
5/31/94 14.180 .942 (1.255) (.790) (.148)
3/18/93 to
5/31/93 14.050 .068 .125 -- --
NVI
6 Mos. ended
11/30/94 12.030 .469 (1.666) (.342) (.101)
7/23/93 to
5/31/94 14.050 .605 (1.819) (.456) (.095)
<PAGE>
<PAGE>
<CAPTION>
Distributions from capital gains Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderst offering costs of period period
<S> <C> <C> <C> <C> <C>
NNC
6 Mos. ended
11/30/94 $ -- $ -- $ -- $10.580 $11.625
Year ended
5/31/94 -- -- (.142) 12.340 12.500
5/20/93 to
5/31/93 -- -- (.067) 14.000 15.125
NPV
6 Mos. ended
11/30/94 -- -- -- 10.980 11.250
Year ended
5/31/94 -- -- (.139) 12.790 13.125
3/18/93 to
5/31/93 -- -- (.063) 14.180 15.125
NVI
6 Mos. ended
11/30/94 -- -- -- 10.390 10.250
7/23/93 to
5/31/94 -- -- (.255) 12.030 12.000
<PAGE>
<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
<S> <C> <C> <C> <C> <C> <C>
NNC
6 Mos. ended
11/30/94 (4.10)% (11.59)% $112,508 .89*% 5.02*% 18%
Year ended
5/31/94 (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* --
NPV
6 Mos. ended
11/30/94 (11.40) (11.21) 106,834 .90* 5.23* 21
Year ended
5/31/94 (8.35) (4.58) 116,904 .93 4.56 28
3/18/93 to
5/31/93 .83 .93) 81,227 .90* 2.70* --
NVI
6 Mos. ended
11/30/94 (11.96) (11.03) 49,152 1.01* 4.89* 20
7/23/93 to
5/31/94 (17.18) (11.37) 53,553 1.07* 3.95* 34
<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.
</TABLE>
<PAGE>
The human bond
Photo of John Nuveen
At John Nuveen & Co. Incorporated, where our tax-free municipal bonds have
helped people live their dreams for nearly 100 years, we still believe our
strongest bond is human.TM
For almost a century, John Nuveen & Company has concentrated its resources and
expertise in one area: municipal bonds. We are the oldest and largest
investment banking firm specializing exclusively in municipal securities, and
we strive to be the best.
Our approach to managing our shareholders' investments endures. We maintain
a sharp focus on the needs of prudent investors and their families, offer
investments of quality, and then work to make them better by seeking out
opportunity. We hold to a dedicated belief in the importance of research. And
we sustain a commitment to sound financial management through value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we strive to provide our
shareholders with the attractive level of income they need to achieve their
personal goals and aspirations.
These are the things that matter most, and it's why we say that, at Nuveen,
our strongest bond is human.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF2-JAN 95
