Nuveen Exchange-Traded Funds
May 31, 1997
Annual Report
Dependable, tax-free income to help you keep more of what you earn.
NPG
Georgia
NMY
Maryland
NNC
North Carolina
NPV
Virginia
Photographic image of woman and man in canoe on lake.
<PAGE>
Build Your Wealth Automatically
Managing your portfolio takes skill, experience, and informed judgment, but our
efforts to help you build your wealth don't stop there. At Nuveen, we offer a
number of convenient ways to add to your tax-free portfolio and earn the
tax-free income you need to achieve your financial goals.
Nuveen exchange-traded funds dividend reinvestment plan
Your Nuveen exchange-traded fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check, or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to set aside money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also benefit from dollar-cost averaging, a technique of
investing at regular intervals, which allows you to build a high-quality,
tax-free portfolio conveniently and cost effectively over time. All
reinvestments are invested in full fractional shares and are kept in
non-certificated form by the Plan Agent, Chase Manhattan Bank.
To make recordkeeping easy and convenient, each month you'll receive a
statement showing your total dividends and distributions, the date of
investment, the shares acquired and the price per share, and the total number of
shares you own. Income or capital gains taxes may be payable on dividends or
distributions that are reinvested.
The shares you acquire by reinvesting will either be purchased on the open
market or be newly issued by the fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will be
invested within 30 days of the dividend payment date; no interest will be paid
on dividends and distributions awaiting reinvestment. Because the market price
of shares may increase
(continued on inside back cover)
<PAGE>
Screen of photo on cover (woman and man in canoe on lake).
Contents
2 Dear Shareholder
4 Answering Your Questions
6 Georgia Premium Income
Fund Overview
7 Maryland Premium Income
Fund Overview
8 North Carolina Premium Income
Fund Overview
9 Virginia Premium Income
Bond Fund Overview
10 Financial Section
47 Shareholder Information
48 Fund Information
<PAGE>
Dear Shareholder
Photographic image of Timothy R. Schwertfeger, CEO.
"In addition to substantial returns, shareholders continue to enjoy very
attractive current yields generated by portfolios of quality bonds."
It's a pleasure to report to you on the performance of Nuveen's exchange-traded
funds. Over the past year, the funds covered in this report posted sizable
gains. For the fiscal year ended May 31, 1997, the value of your investment rose
between 10.08% and 12.01% if you chose to reinvest your tax-free income
dividends.
Over this 12-month period, the total return performance for these funds outpaced
the 8.28% increase (with income reinvested) produced by the Lehman Brothers
Municipal Bond Index, which represents the broad municipal bond market on an
unmanaged basis. Similarly, the leveraged, municipal bond funds tracked
by Lipper Analytical Services rose an average of 7.43% over the past year.
In addition to substantial returns, shareholders in these funds continue to
enjoy very attractive current yields generated by portfolios of quality bonds,
which provide excellent income for investors. As of May 31, 1997, shareholders
in the funds covered in this report were receiving annual tax-free yields on net
asset value that ranged from 5.42% to 5.67%. To match these yields, investors in
the 31% federal income tax bracket would have had to earn at least 7.86% on
taxable alternatives of comparable quality.
These results were produced against a backdrop of continued economic expansion
and the lowest unemployment rates in almost two decades, a combination that in
the past has foreshadowed an increase in inflation. In March, the Federal
Reserve made a preemptive strike by raising short-term interest rates by 0.25%,
but then maintained the status quo at its May and July meetings. Overall market
returns continue to be good, but fear of inflation has hampered the performance
of municipals and led to increased volatility in both the equity and bond
markets.
In the first six months of the year, the markets also focused on fiscal
issues, including the federal budget accord and discussion of plans to reduce
taxes and eliminate the deficit. The economy appeared to be moderating,
corporate earnings reports continued to exhibit strength, and interest rates
fell in the second quarter. All of this was positive news. The net effect is
that the markets are better off now than at the beginning of the year, but the
volatility in getting there has been significant.
<PAGE>
Currently, the need for diversification and a renewed emphasis
on asset allocation - as well as attractive yields - have sparked increased
interest in tax-free investments. The rapid rise in the stock market reminds
investors to re-allocate profits to other segments of the market in order to
limit risk. Nuveen exchange-traded funds provide an excellent alternative, and
their current yields make them very attractive in relation to the rest of the
market. In the past month, these yields have reached 80% of those offered by
Treasuries, a very appealing ratio given the tax advantage provided by municipal
bonds. We have also seen the discounts on many funds narrow dramatically, with
the average state fund now trading at a premium of 1.18%. Consideration of these
factors is leading investors to take another look at tax-free municipal bond
funds and lock in at current rates.
On behalf of everyone at Nuveen, I thank you for your confidence in us and our
family of investments. We will continue to strive to provide you with
high-quality investments that withstand the test of time. We look forward to
reporting to you again in six months.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
July 15, 1997
<PAGE>
Answering Your Questions
Photographic image of Tom Spalding, Portfolio Manager.
Tom Spalding, head of Nuveen's Chicago-based portfolio management team,
talks about the municipal bond market and offers insights into factors that
affected fund performance over the past year.
What are the investment objectives of these funds?
The primary investment objective of these funds is to maintain a high level of
current tax-free income consistent with preservation of capital. Their secondary
objective is to enhance portfolio value through investments in tax-exempt
municipal bonds that are either underrated or undervalued, or that represent
undervalued sectors of the municipal market.
What is your strategy for meeting these objectives?
To meet these funds' objectives of income and enhanced value, our portfolio
management strategy relies on conservative value investing principles, sound
research and credit surveillance activities, and senior management involvement.
At Nuveen, value investing means taking a fundamental approach to finding bonds
that offer the best balance of return with low risk regardless of the direction
of interest rates. This approach focuses on the characteristics of individual
bonds, such as the sector, geographic region, structure and intrinsic credit
quality. The idea behind this philosophy is that we, as investment managers, can
control the selection process, but not the direction of the market overall.
Our goal is to determine whether an issue is undervalued by the market, that is,
whether the bond's current market value, or price, is lower than its long-term
value, as evidenced by yield, maturity and credit quality. We also assess
whether the issue has the potential to reach that intrinsic value. For example,
we may find an opportunity to purchase bonds that offer extended call protection
at prices similar to those with shorter calls. If rates move down, the bonds
with longer call protection will appreciate in value more than those with
shorter calls. Value determinations require in-depth knowl edge and
understanding of the municipal market, the issuers, and the characteristics of
specific issues. Proper implementation of this strategy creates well-constructed
portfolios designed to provide shareholders with a dependable stream of tax-free
income.
What role does research play in helping you achieve the funds' objectives?
As an integral part of our portfolio management strategy, Nuveen Research
provides portfolio managers with objective appraisals of the creditworthiness of
new municipal issues, while maintaining surveillance of the credit performance
for all portfolio holdings. Creditworthiness is evaluated through our research
into factors such as the credit history of the issuer, capital structure, total
debt load, revenue sources and projections, call provisions, and local economic
forecasts. To track the credit performance of individual holdings, each Nuveen
Research analyst is responsible for a specific surveillance portfolio, which is
defined in terms of geography and sector (e.g., healthcare, housing).
Specialization by sector enables our Research team to focus their credit quality
evaluation efforts and complement the vantage point of each portfolio manager.
<PAGE>
What is the current outlook for the municipal market?
As we make our way through the seventh year of the current economic expansion,
some observers believe that a fundamental shift may have occurred in our
economy. Based on past experience and months of reports of economic growth,
especially employment statistics, the markets have long been anticipating an
increase in inflation. However, even with almost full employment, we have not
seen the expected rise in hourly wages that would be considered inflationary.
This change in the traditional economic cause-and-effect relationship has been
variously attributed to the globalization of the economy, to increased use of
technology and to corporations' recent ability to downsize as necessary.
Whatever the cause, inflation has not ignited. Although structural changes in
the economy appear to have suspended the relationship between faster growth and
higher inflation, the risk remains that inflation may reassert itself if
capacity constraints are reached and resources are stretched too thin.
Speculation of Fed tightening may continue. If the Fed does act to increase
rates, it will be perceived as a pre-emptive move against inflation. If the Fed
does not tighten, it will be seen as an indication that the economy is moving at
a moderate, non-inflationary pace.
Nonetheless, for the remainder of 1997, the municipal market will continue to
offer the attractive yields and tax advantages that make it a good alternative
if and when a correction in the stock market occurs. While money continues to
flow into equity mutual funds, investors are also beginning to evaluate the
effect of the huge run-up in stock prices on their asset allocation, and many
are rebalancing their portfolios by shifting some assets into bonds.
<PAGE>
Georgia Premium Income
NPG
NPG
Pie Chart:
Credit Quality
BBB/NR 5%
A 14%
AA 21%
AAA 60%
Pie Chart:
Diversification
Escrowed Bonds 8%
Educational Facilities 8%
General Obligations 20%
Transportation 4%
Housing Facilities 17%
Health Care Facilities 13%
Other 4%
Pollution Control 10%
Water & Sewer 11%
Utilities 5%
Bar Chart:
Dividend History
June 1996 .0635
July 1996 .0635
August 1996 .0635
September 1996 .0635
October 1996 .0635
November 1996 .0635
December 1996 .0635
January 1997 .0635
February 1997 .065
March 1997 .065
April 1997 .065
May 1997 .065
Fund Highlights
- ------------------------------------------------------
Inception Date 5/93
- ------------------------------------------------------
Share Price 13 7/8
- ------------------------------------------------------
Net Asset Value $13.70
- ------------------------------------------------------
Current Yield 5.62%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.14%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.65%
- ------------------------------------------------------
Annualized Total Return at NAV
- ------------------------------------------------------
1-Year 11.53%
- ------------------------------------------------------
3-Year 9.88%
- ------------------------------------------------------
Inception 5.10%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 14.80%
- ------------------------------------------------------
3-Year 13.06%
- ------------------------------------------------------
Inception 8.08%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 35%.
2 Taxable equivalent total return is based on the annualized total return
figures above and a combined federal and state income tax rate of 35%. It
represents the return on a taxable investment necessary to equal the after-tax
return of the Nuveen fund.
<PAGE>
Maryland Premium Income
NMY
NMY
Pie Chart:
Credit Quality
BBB/NR 4%
A 18%
AA 24%
AAA 54%
Pie Chart:
Diversification
Transportation 8%
Housing Facilities 20%
Lease Rental 5%
General Obligations 17%
Health Care Facilities 13%
Educational Facilities 8%
Other 20%
Pollution Control 9%
Bar Chart:
Dividend History
June 1996 .0615
July 1996 .0615
August 1996 .0615
September 1996 .0615
October 1996 .0615
November 1996 .064
December 1996 .064
January 1997 .064
February 1997 .064
March 1997 .064
April 1997 .064
May 1997 .064
Fund Highlights
- ------------------------------------------------------
Inception Date 3/93
- ------------------------------------------------------
Share Price 13 5/8
- ------------------------------------------------------
Net Asset Value $13.76
- ------------------------------------------------------
Current Yield 5.64%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 8.17%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State(1) 8.61%
- ------------------------------------------------------
Annualized Total Return at NAV
- ------------------------------------------------------
1-Year 10.08%
- ------------------------------------------------------
3-Year 8.78%
- ------------------------------------------------------
Inception 4.95%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 13.17%
- ------------------------------------------------------
3-Year 11.86%
- ------------------------------------------------------
Inception 7.82%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 34.5%.
2 Taxable equivalent total return is based on the annualized total return
figures above and a combined federal and state income tax rate of 34.5%. It
represents the return on a taxable investment necessary to equal the after-tax
return of the Nuveen fund.
<PAGE>
North Carolina Premium Income
NNC
NNC
Pie Chart:
Credit Quality
BBB/NR 9%
A 22%
AA 35%
AAA 34%
Pie Chart:
Diversification
Escrowed Bonds 6%
Health Care Facilities 21%
Pollution Control 8%
Lease Rental 12%
Utilities 11%
Other 6%
Water & Sewer 8%
Housing Facilities 13%
Educational Facilities 7%
General Obligations 8%
Bar Chart
Dividend History
June 1996 .06
July 1996 .06
August 1996 .063
September 1996 .063
October 1996 .063
November 1996 .066
December 1996 .066
January 1997 .066
February 1997 .066
March 1997 .066
April 1997 .066
May 1997 .066
Fund Highlights
- ------------------------------------------------------
Inception Date 5/93
- ------------------------------------------------------
Share Price 14 5/8
- ------------------------------------------------------
Net Asset Value $13.50
- ------------------------------------------------------
Current Yield 5.42%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal Only)(1) 7.86%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.54%
- ------------------------------------------------------
Annualized Total Return at NAV
- ------------------------------------------------------
1-Year 12.01%
- ------------------------------------------------------
3-Year 9.11%
- ------------------------------------------------------
Inception 4.51%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 15.57%
- ------------------------------------------------------
3-Year 12.49%
- ------------------------------------------------------
Inception 7.65%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 36.5%.
2 Taxable equivalent total return is based on the annualized total return
figures above and a combined federal and state income tax rate of 36.5%. It
represents the return on a taxable investment necessary to equal the after-tax
return of the Nuveen fund.
<PAGE>
Virginia Premium Income
NPV
NPV
Pie Chart:
Credit Quality
BBB/NR 4%
A 24%
AA 43%
AAA 29%
Pie Chart:
Index Comparison
Pollution Control 5%
Water & Sewer 19%
Educational Facilities 8%
General Obligations 11%
Lease Rental 3%
Health Care Facilities 16%
Escrowed Bonds 5%
Other 14%
Housing Facilities 15%
Transportation 4%
Bar Chart
Dividend History
June 1996 .066
July 1996 .066
August 1996 .067
September 1996 .067
October 1996 .067
November 1996 .0685
December 1996 .0685
January 1997 .0685
February 1997 .0685
March 1997 .0685
April 1997 .0685
May 1997 .0685
Fund Highlights
- ------------------------------------------------------
Inception Date 3/93
- ------------------------------------------------------
Share Price 14 1/2
- ------------------------------------------------------
Net Asset Value $14.04
- ------------------------------------------------------
Current Yield 5.67%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal)(1) 8.22%
- ------------------------------------------------------
Taxable Equivalent Yield (Federal and State)(1) 8.72%
- ------------------------------------------------------
Annualized Total Return at NAV
- ------------------------------------------------------
1-Year 11.49%
- ------------------------------------------------------
3-Year 9.54%
- ------------------------------------------------------
Inception 5.78%
- ------------------------------------------------------
Taxable Equivalent Total Return(2)
- ------------------------------------------------------
1-Year 14.86%
- ------------------------------------------------------
3-Year 12.88%
- ------------------------------------------------------
Inception 8.89%
- ------------------------------------------------------
1 Taxable equivalent rate represents the yield on a taxable investment necessary
to equal the after-tax yield of the Nuveen fund. The federal only rate is
based on the current yield and a federal tax rate of 31%. The rate shown for
federal and state highlights the added value of owning shares that are also
exempt from state taxes. It is based on a combined federal and state tax rate
of 35%.
2 Taxable equivalent total return is based on the annualized total return
figures above and a combined federal and state income tax rate of 35%. It
represents the return on a taxable investment necessary to equal the after-tax
return of the Nuveen fund.
<PAGE>
Photographic image of two people in boat.
Financial Section
Contents
11 Portfolio of Investments
31 Statement of Net Assets
33 Statement of Operations
35 Statement of Changes in Net Assets
37 Notes to Financial Statements
44 Financial Highlights
46 Report of Independent Auditors
Screen of photo on cover (woman and man in canoe on lake).
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Georgia Premium Income Municipal Fund (NPG)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,995,000 Georgia Housing and Finance Authority, Single Family 12/04 at 102 AA+ $ 3,085,419
Mortgage Bonds, 1994 Series A (FHA Insured or VA
Guaranteed Mortgage Loans), 6.500%, 12/01/17
(Alternative Minimum Tax)
500,000 Georgia Housing and Finance Authority, Single Family 6/06 at 102 AA+ 515,090
Mortgage Bonds, 1996 Series A, Subseries A-2,
6.450%, 12/01/27 (Alternative Minimum Tax)
1,900,000 Municipal Electric Authority of Georgia, General Power 1/03 at 100 Aaa 1,846,344
Revenue Bonds, 1992B Series, 5.500%, 1/01/18
3,000,000 Hospital Authority of Albany-Dougherty County, 9/03 at 102 Aaa 3,001,650
Georgia, Revenue Bonds (Phoebe Putney Memorial
Hospital), Series 1993, 5.70%, 9/01/13
3,115,000 City of Albany (Georgia), Sewerage System Revenue 7/02 at 102 Aaa 3,443,695
Bonds, Series 1992, 6.625%, 7/01/17
(Pre-refunded to 7/01/02)
2,500,000 City of Albany (Georgia), Sewerage System Revenue 7/07 at 102 Aaa 2,488,875
Bonds, Series 1997, 5.600%, 7/01/19
1,175,000 City of Atlanta, Georgia, General Obligation School 12/03 at 102 Aa 1,171,358
Improvement Bonds, Series 1993, 5.600%, 12/01/18
500,000 City of Atlanta (Georgia), General Obligation Bonds 12/04 at 102 Aa 519,535
Public Improvement Bonds, Series 1994A,
6.100%, 12/01/19
1,000,000 City of Atlanta, Georgia Airport Facilities Revenue No Opt. Call Aaa 1,120,820
Refunding Bonds, Series 1994A, 6.500%, 1/01/09
1,500,000 City of Atlanta, Airport Facilities Revenue Bonds, 1/01 at 102 Aaa 1,542,870
Series 1990, 6.250%, 1/01/21 (Alternative
Minimum Tax)
1,000,000 Downtown Development Authority of the City of Atlanta 10/02 at 102 Aa 1,053,000
(Georgia), Refunding Revenue Bonds (Underground
Atlanta Project), Series 1992, 6.250%, 10/01/12
3,000,000 Solid Waste Management Authority of the City of 12/06 at 100 Aa 2,882,160
Atlanta Revenue Bonds (Landfill Closure Project),
Series 1996, 5.250%, 12/01/21
Urban Residential Finance Authority of the City of
Atlanta, Georgia, Dormitory Facility Refunding
Revenue Bonds (Morehouse College Project), Series
1995:
1,210,000 5.750%, 12/01/20 12/05 at 102 Aaa 1,219,958
1,375,000 5.750%, 12/01/25 12/05 at 102 Aaa 1,386,316
3,450,000 City of Atlanta, Georgia, Water and Sewerage Revenue 1/04 at 102 A1 3,229,304
Bonds, Series 1993, 5.000%, 1/01/15
3,000,000 Development Authority of Burke County, Pollution 1/03 at 103 Aaa 3,504,480
Control Revenue Refunding Bonds (Oglethorpe Power
Corporation Vogtle Project), Series 1992,
7.700%, 1/01/06
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 2,000,000 Development Authority of Cartersville (Georgia), 5/07 at 102 AA- $ 2,031,540
Sewage Facilities Refunding Revenue Bonds (Anheuser-
Busch Project), Series 1997, 6.125%, 5/01/27 (Alternative
Minimum Tax)
2,000,000 Clayton County Housing Authority, Multifamily Housing No Opt. Call Baa1 2,026,680
Revenue Bonds, Spring Lake Apartments Project,
8.125%, 12/01/05 (Mandatory put 12/01/97)
1,145,000 Housing Authority of Clayton County (Georgia), 12/05 at 102 AAA 1,143,534
Multifamily Housing Revenue Bonds, Series 1995
(The Advantage Project), 5.800%, 12/01/20
1,250,000 Cobb-Marietta Coliseum and Exhibit Hall Authority No Opt. Call Aaa 1,273,950
(Georgia), Revenue Refunding Bonds, Series 1993,
5.500%, 10/01/12
1,000,000 The Medical Center Hospital Authority (Columbus, No Opt. Call AAA 1,204,760
Georgia), Revenue Anticipation Certificates,
Series 1979, 7.750%, 7/01/10
1,555,000 Development Authority of DeKalb County Revenue 10/04 at 102 Aa1 1,625,473
Bonds (Emory University Project), Series 1994-A,
6.000%, 10/01/14
3,400,000 Housing Authority of the County of DeKalb, Georgia, 1/05 at 102 Aaa 3,595,330
Multifamily Housing Revenue Bonds (The Lakes at
Indian Creek Apartments Project), Series 1994,
7.150%, 1/01/25 (Alternative Minimum Tax)
995,000 Housing Authority of the City of Decatur, Mortgage 7/02 at 102 Aaa 1,022,780
Revenue Refunding Bonds, Series 1992A (FHA Insured
Mortgage Loan-Park Trace Apartments, Section 8
Assisted Project), 6.450%, 7/01/25
2,000,000 Douglasville-Douglas County Water and Sewer Authority No Opt. Call Aaa 2,043,280
(Georgia), Water and Sewerage Revenue Bonds,
Series 1993, 5.625%, 6/01/15
1,100,000 Downtown Savannah Authority, Refunding Revenue 1/03 at 102 Aa 1,060,532
Bonds, Chatham County Projects, Series 1993A,
5.000%, 1/01/11
2,000,000 Fulco Hospital Authority, Revenue Anticipation 9/02 at 102 Baa1 2,038,760
Certificates (Georgia Baptist Health Care System
Project), Series 1992A, 6.375%, 9/01/22
540,000 Housing Authority of Fulton County, Georgia, Single 3/05 at 102 AAA 552,026
Family Mortgage Revenue Bonds (GNMA
Mortgage-Backed Securities Program), Series 1995A,
6.550%, 3/01/18 (Alternative Minimum Tax)
500,000 Fulton County School District, General Obligation No Opt. Call Aa 558,690
Refunding Bonds, Series 1991, 6.375%, 5/01/17
2,000,000 The Fulton-DeKalb Hospital Authority (Georgia), 7/03 at 102 Aaa 1,943,260
Revenue Refunding Certificates, Series 1993,
5.500%, 1/01/20
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,965,000 The Hospital Authority of Hall County and the City of 10/05 at 102 Aaa $ 2,011,158
Gainsville, Revenue Anticipation Certificates
(Northeast Georgia Healthcare Project), Series 1995,
6.000%, 10/01/25
3,000,000 The Glynn-Brunswick Memorial Hospital Authority, 8/06 at 102 Aaa 2,918,550
Revenue Anticipation Certificates (Southeast
Georgia Health Systems Project), Series 1996,
5.250%, 8/01/13
1,500,000 Housing Authority of the City of Marietta, Georgia, 10/06 at 102 AAA 1,507,200
Multifamily Housing Revenue Bonds (GNMA
Collateralized - Country Oaks Apartments), Series
1996, 6.150%, 10/20/26 (Alternative Minimum Tax)
1,750,000 Metropolitan Atlanta Rapid Transit Authority 7/98 at 102 Aaa 1,859,532
(Georgia), Sales Tax Revenue Bonds, Series J,
8.000%, 7/01/12 (Pre-refunded to 7/01/98)
1,000,000 Metropolitan Atlanta Rapid Transit Authority No Opt. Call Aaa 1,099,420
(Georgia), Sales Tax Revenue Bonds, Refunding
Series P, 6.250%, 7/01/20
1,000,000 City of Milledgeville (Georgia), Water and Sewerage No Opt. Call Aaa 1,068,960
Revenue and Refunding Bonds, Series 1996,
6.000%, 12/01/21
2,000,000 Development Authority of Monroe County (Georgia), 9/99 at 102 A1 2,050,600
Pollution Control Revenue Bonds (Gulf Power
Company Plant Scherer Project), First Series 1994,
6.300%, 9/01/24
1,750,000 Municipal Electric Authority of Georgia, Project One No Opt. Call A+ 1,914,185
Special Obligation Bonds, Fifth Crossover Series,
6.400%, 1/01/09
1,800,000 Private Colleges and Universities Authority Revenue 6/03 at 102 Aa 1,802,286
Bonds (Georgia) (Agnes Scott College Project),
Series 1993, 5.625%, 6/01/23
3,000,000 County Board of Education of Richmond County (Georgia), 5/98 at 100 Aaa 3,006,870
General Obligation School Bonds, Series 1997,
5.950%, 11/01/26
3,500,000 Commonwealth of Puerto Rico, Public 7/06 at 101 1/2 A 3,337,145
Improvement Bonds of 1996 (General
Obligation Bonds), 5.400%, 7/01/25
500,000 Puerto Rico Highway and Transportation Authority, 7/03 at 101 1/2 A 465,525
Highway Revenue Bonds (Series W), 5.250%, 7/01/20
- ----------------------------------------------------------------------------------------------------------
$ 75,470,000 Total Investments - (cost $74,315,118) - 98.1% 77,172,900
============ -----------
Temporary Investments In Short-Term
Municipal Securities - 0.2%
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 200,000 Development Authority of Burke County (Georgia), VMIG-1 $ 200,000
============ Georgia Power Company Plant Vogtle Project, Second ----------
Series 1994, Variable Rate Demand Bonds, 4.000%, 7/01/24+
Other Assets Less Liabilities - 1.7% 1,323,996
-----------
Net Assets - 100% $78,696,896
===========================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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 (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Maryland Premium Income Municipal Fund (NMY)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
Washington Metropolitan Area Transit Authority (District
of Columbia), Gross Revenue Transit Refunding Bonds,
Series 1993:
$ 1,000,000 4.800%, 1/01/04 No Opt. Call Aaa $ 997,340
2,000,000 6.000%, 7/01/07 No Opt. Call Aaa 2,159,280
1,500,000 5.250%, 7/01/14 1/04 at 102 Aaa 1,459,530
1,500,000 Community Development Administration, Department of 4/99 at 100 Aa 1,533,810
Economic and Community Development, State of
Maryland, Single Family Program Bonds, 1986 Third
Series, 7.250%, 4/01/16
1,150,000 Community Development Administration, Department of 5/03 at 102 Aa 1,189,043
Housing and Community Development, State of
Maryland, Multi-Family Housing Revenue Bonds
(Insured Mortgage Loans), 1993 Series B,
6.625%, 5/15/23
1,000,000 Community Development Administration, Department of 5/02 at 102 Aa 1,036,250
Housing and Community Development, State of
Maryland, Multi-Family Housing Revenue Bonds
(Insured Mortgage Loans), 1992 Series A,
6.850%, 5/15/33 (Alternative Minimum Tax)
1,750,000 Community Development Administration, Department of 4/04 at 102 Aa 1,745,433
Housing and Community Development, State of
Maryland, Single Family Program Bonds, 1993 Third
Series, 4.950%, 4/01/06
940,000 Community Development Administration, Department of 4/03 at 102 Aa 973,304
Housing and Community Development, State of
Maryland, Single Family Program Bonds, 1992 Fourth
Series, 6.800%, 4/01/22 (Alternative Minimum Tax)
1,790,000 Community Development Administration, Department of 4/04 at 102 Aa 1,821,880
Housing and Community Development, State of
Maryland, Single Family Program, 1994 First
Series, 5.900%, 4/01/11
1,000,000 Community Development Administration, Department of 4/04 at 102 Aa 1,039,440
Housing and Community Development, State of
Maryland, Single Family Program Bonds, 1994 Fourth
Series, 6.450%, 4/01/14
2,650,000 Community Development Administration, Department of 4/04 at 102 Aa 2,760,532
Housing and Community Development, State of
Maryland, Single Family Program Bonds, 1994 Fifth
Series, 6.750%, 4/01/26 (Alternative Minimum Tax)
1,000,000 Community Development Administration, Department of 4/99 at 102 Aa 1,031,890
Housing and Community Development, State of
Maryland, Single Family Program Bonds, 1989 Third
Series, 7.375%, 4/01/26 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,075,000 Community Development Administration, Department of 5/03 at 102 Aa $ 3,105,812
Housing and Community Development, State of
Maryland, Multi-Family Housing Revenue Bonds (Insured
Mortgage Loans), 1993 Series D, 6.050%, 5/15/24
25,000 Community Development Administration, Department of 8/97 at 100 Aa 25,104
Economic and Community Development, State of
Maryland, Multi-Family Revenue Bonds, Series 1985-B
(Insured Mortgage Loans), 8.750%, 5/15/05
4,000,000 Department of Transportation of Maryland, County No Opt. Call Aa 3,983,480
Transportation Revenue Bonds, Series 1993,
4.600%, 12/15/02
4,800,000 Department of Transportation of Maryland, Consolidated 9/02 at 102 Aa 4,631,904
Transportation Bonds, Series 1993, 4.625%, 9/15/07
1,990,000 Maryland Economic Development Corporation (Health and 4/11 at 102 N/R 1,935,693
Mental Hygiene Providers Facilities Acquisition
Program), Revenue Bonds, Series 1996A,
7.625%, 4/01/21
1,875,000 Maryland Health and Higher Educational Facilities 7/03 at 102 A1 1,871,400
Authority, Revenue Bonds, Good Samaritan Hospital
Issue, Series 1993, 5.750%, 7/01/19
2,350,000 Maryland Health and Higher Educational Facilities 7/03 at 102 Aaa 2,358,249
Authority, Project and Refunding Revenue Bonds,
Sinai Hospital of Baltimore Issue, Series 1993,
5.500%, 7/01/13
1,855,000 Maryland Health and Higher Educational Facilities 7/03 at 102 Aaa 1,769,114
Authority, Refunding Revenue Bonds, Francis Scott Key
Medical Center Issue, Series 1993, 5.000%, 7/01/13
3,125,000 Maryland Health and Higher Educational Facilities 7/03 at 102 Baa1 2,859,844
Authority, Revenue Bonds, Howard County General
Hospital Issue, Series 1993, 5.500%, 7/01/25
Maryland Health and Higher Educational Facilities
Authority, Refunding Revenue Bonds, John Hopkins
University Authority, Refunding Revenue Bonds, John
Hopkins University Issue, Series 1997:
1,000,000 5.625%, 7/01/17 (WI) 7/07 at 102 Aa2 1,002,550
2,000,000 5.625%, 7/01/27 (WI) 7/07 at 102 Aa2 1,991,260
4,415,000 Maryland Stadium Authority, Sports Facilities Lease 12/99 at 102 Aa 4,797,913
Revenue Bonds, Series 1989D, 7.500%, 12/15/10
(Alternative Minimum Tax)
4,955,000 Maryland Stadium Authority, Sports Facilities Lease 3/06 at 101 Aaa 4,993,104
Revenue Bonds, Series 1996, 5.750%, 3/01/18
Maryland Transportation Authority, Special Obligation
Revenue Bonds, Baltimore/Washington International
Airport Projects, Series 1994-A (Qualified Airport
Bonds):
5,500,000 6.250%, 7/01/14 (Alternative Minimum Tax) 7/04 at 102 Aaa 5,769,500
2,580,000 6.400%, 7/01/19 (Alternative Minimum Tax) 7/04 at 102 Aaa 2,666,275
1,500,000 Maryland Transportation Authority, Transportation 7/02 at 100 A1 1,508,760
Facilities Projects, Revenue Bonds, Series 1992,
5.750%, 7/01/15
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 3,000,000 Maryland Transportation Authority, Transportation 7/01 at 102 A1 $ 3,282,750
Facilities Projects, Revenue Bonds, Series 1991,
6.500%, 7/01/06
2,000,000 State of Maryland, General Obligation Bonds, State and 7/03 at 101 1/2 Aaa 1,940,180
Local Facilities Loan of 1993, Third Series (Capital
Improvement and Refunding Bonds), 4.600%, 7/15/07
The Maryland-National Capital Park and Planning
Commission (Prince George's County, Maryland),
General Obligation Bonds, Park Acquisition and
Development Bonds, Series M-2:
880,000 5.300%, 7/01/09 7/03 at 102 AA 890,516
800,000 5.300%, 7/01/10 7/03 at 102 AA 804,192
2,730,000 Anne Arundel County, General Obligation Bonds, 4/03 at 102 AA+ 2,706,194
Consolidated Water and Sewer, Series 1993, Refunding
Series, 5.250%, 4/15/12
4,000,000 Anne Arundel County, Maryland, Multifamily Housing No Opt. Call BBB+ 4,196,760
Revenue Bonds (Woodside Apartments Project),
Series 1994, 7.450%, 12/01/24 (Alternative Minimum
Tax) (Mandatory put 12/01/03)
6,000,000 Anne Arundel County, Maryland, Pollution Control 4/04 at 102 A 6,108,480
Revenue Refunding Bonds (Baltimore Gas and Electric
Company Project), Series 1994, 6.000%, 4/01/24
2,000,000 Baltimore County, Maryland, General Obligation Bonds, 7/98 at 102 Aaa 2,091,020
Baltimore County Pension Funding Bonds, 1991
Refunding Series, 6.700%, 7/01/11
2,000,000 Baltimore County, Maryland, General Obligation Bonds, 8/03 at 102 Aaa 1,915,660
Baltimore County Metropolitan District Bonds (64th
Issue), 4.900%, 8/01/11
1,000,000 City of Baltimore, Maryland (Mayor and City No Opt. Call A1 1,165,870
Council of Baltimore), General Obligation
Serial Bonds, Consolidated Public Improvement
Bonds of 1989 - Series B, 7.150%, 10/15/08
City of Baltimore, Maryland (Mayor and City Council of
Baltimore), General Obligation Consolidated Public
Improvement Refunding Bonds of 1993 -- Series D:
1,130,000 6.000%, 10/15/03 No Opt. Call Aaa 1,205,880
1,305,000 6.000%, 10/15/05 No Opt. Call Aaa 1,405,811
1,415,000 6.000%, 10/15/06 No Opt. Call Aaa 1,529,134
Mayor and City Council of Baltimore (City of Baltimore,
Maryland), General Obligation Consolidated Public
Improvement Refunding Bonds of 1995 - Series A:
1,200,000 7.375%, 10/15/03 No Opt. Call Aaa 1,366,896
5,000,000 7.250%, 10/15/04 No Opt. Call Aaa 5,733,550
1,000,000 City of Baltimore, Maryland (Mayor and City No Opt. Call Aaa 1,117,050
Council of Baltimore), General Obligation
Serial Bonds, Consolidated Public Improvement
Bonds of 1991 - Series C, 6.375%, 10/15/07
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,750,000 City of Baltimore, Maryland (Mayor and City Council No Opt. Call Aaa $ 1,623,930
of Baltimore), Project and Refunding Revenue Bonds
(Water Projects), Series 1994-A, 5.000%, 7/01/24
1,000,000 City of Baltimore, Maryland (Mayor and City Council 7/06 at 101 Aaa 983,560
of Baltimore), Project and Refunding Revenue Bonds
(Water Projects), Series 1996-A, 5.500%, 7/01/26
3,000,000 Mayor and City Council of Baltimore, Maryland, 7/00 at 100 Aaa 3,178,470
Project and Refunding Revenue Bonds (Wastewater
Projects), Series 1990-A, 6.500%, 7/01/20
(Pre-refunded to 7/01/00)
7,000,000 Calvert County, Maryland Pollution Control Revenue 7/04 at 102 A 6,982,640
Refunding Bonds (Baltimore Gas and Electric
Company Project), Series 1993, 5.550%, 7/15/14
1,795,000 County Commissioners of Charles County, Maryland 5/05 at 102 AAA 1,864,125
Mortgage Revenue Refunding Bonds, Series 1995A
(Holly Station IV Townhouses Project - FHA Insured
Mortgage Loan), 6.450%, 5/01/26
City of Gaithersburg, Maryland, Hospital Facilities
Refunding and Improvement Revenue Bonds (Shady Grove
Adventist Hospital), Series 1995:
2,550,000 6.500%, 9/01/12 No Opt. Call Aaa 2,862,834
6,265,000 5.500%, 9/01/15 9/05 at 102 Aaa 6,246,518
Howard County, Maryland, Mortgage Revenue
Refunding Bonds, Series 1996A (FHA Insured
Mortgage Loan - Normandy Woods III
Apartments Project):
700,000 6.000%, 7/01/17 7/06 at 102 AAA 709,002
2,000,000 6.100%, 7/01/25 7/06 at 102 AAA 2,022,360
2,000,000 Housing Opportunities Commission of Montgomery 7/05 at 102 Aa 2,024,120
County (Montgomery County, Maryland),
Multifamily Housing Revenue Bonds, 1995
Series A, 5.900%, 7/01/15
1,500,000 Housing Opportunities Commission of Montgomery 7/06 at 102 Aaa 1,491,645
County (Montgomery County, Maryland),
Multifamily Housing Revenue Bonds, 1996
Series B, 5.900%, 7/01/26
2,000,000 Housing Opportunities Commission of Montgomery 7/04 at 102 Aa2 2,087,240
County (Montgomery County, Maryland), Single
Family Mortgage Revenue Bonds, 1994
Series A, 6.600%, 7/01/14
815,000 Housing Opportunities Commission of Montgomery 7/97 at 100 Aa2 815,359
County (Maryland), Single Family Mortgage Revenue
Bonds, 1982 Series A, 7.000%, 7/01/14
9,600,000 Montgomery County, Maryland, Solid Waste System 6/03 at 102 Aaa 9,839,904
Revenue Bonds (1993 Series A), 5.875%, 6/01/13
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 9,445,000 Morgan State University, Maryland, Academic Fees No Opt. Call Aaa $10,225,818
and Auxiliary Facilities Fees, Revenue Refunding
Bonds, 1993 Series, 6.100%, 7/01/20
Northeast Maryland Waste Disposal Authority, Resource
Recovery Revenue Refunding Bonds (Southwest Resource
Recovery Facility), Series 1993:
1,625,000 6.900%, 1/01/00 No Opt. Call Aaa 1,716,033
3,000,000 7.150%, 1/01/04 No Opt. Call Aaa 3,365,850
4,675,000 7.200%, 1/01/05 No Opt. Call Aaa 5,377,466
1,000,000 Prince George's County, Maryland, General Obligation 3/03 at 102 Aaa 1,038,350
Bonds, Consolidated Public Improvement Bonds,
Series 1993, 5.750%, 3/15/09
1,500,000 Prince George's County, General Obligation No Opt. Call Aaa 1,614,225
Consolidated Public Improvement Bonds,
Series 1997A, 6.000%, 3/15/05 (WI)
Housing Authority of Prince George's County (Maryland),
Mortgage Revenue Refunding Bonds, Series 1993A
(Cherry Hill Apartments Project):
1,090,000 5.900%, 9/20/10 9/03 at 102 AAA 1,115,735
1,930,000 6.000%, 9/20/15 9/03 at 102 AAA 1,962,598
1,000,000 Housing Authority of Prince George's County 1/03 at 102 AAA 1,024,790
(Maryland), Mortgage Revenue Refunding Bonds,
Series 1993A (GNMA Collateralized - Stevenson
Apartments Project), 6.350%, 7/20/20
1,165,000 Housing Authority of Prince George's County 6/04 at 102 AAA 1,208,618
(Maryland), GNMA/FNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 1994A, 6.350%, 6/01/11
(Alternative Minimum Tax)
1,500,000 Housing Authority of Prince George's County 12/04 at 102 AAA 1,585,500
(Maryland), Mortgage Revenue Refunding Bonds,
Series 1995A (GNMA Collateralized - Riverview
Terrace Apartments Project), 6.700%, 6/20/20
Housing Authority of Prince George's County (Maryland),
Mortgage Revenue Refunding Bonds, Series 1995A (GNMA
Collateralized - Overlook Apartments Project):
2,000,000 5.700%, 12/20/15 12/05 at 102 AAA 1,997,660
1,670,000 5.750%, 12/20/19 12/05 at 102 AAA 1,667,846
5,000,000 Prince George's County, Maryland, Pollution Control 1/03 at 102 A1 5,232,700
Revenue Refunding Bonds (Potomac Electric Project),
1993 Series, 6.375%, 1/15/23
Prince George's County, Maryland, Project and Refunding
Revenue Bonds (Dimensions Health Corporation Issue),
Series 1994:
3,000,000 5.375%, 7/01/14 7/04 at 102 A 2,873,730
6,000,000 5.300%, 7/01/24 7/04 at 102 A 5,550,060
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 5,750,000 Prince George's County, Maryland, Solid Waste 6/03 at 102 Aaa $ 5,556,340
Management System Revenue Bonds, Series 1993,
5.250%, 6/15/13
1,000,000 The Mayor and Council of Rockville (Maryland), 1/04 at 102 Aaa 992,890
Mortgage Revenue Refunding Bonds Series 1994A
(FHA Insured Mortgage Loan - The Summit Apartments
Project), 5.250%, 7/01/09
1,000,000 City of Salisbury, Maryland, Mortgage Revenue 12/04 at 102 AAA 1,041,510
Refunding Bonds, Series 1995A (FHA Insured
Mortgage Loan - College Lane Apartments Project),
6.600%, 12/01/26
3,000,000 University of Maryland System, Auxiliary Facility 10/03 at 101 AA+ 2,918,700
and Tuition Revenue Bonds, 1993 Refunding
Series C, 5.000%, 10/01/10
1,780,000 Washington County Sanitary District, Refunding 1/03 at 102 Aaa 1,757,999
Bonds of 1993, Series F (Guaranteed by the Full Faith
and Credit Pledge of the County Commissioners of
Washington County), 5.375%, 1/01/15
1,000,000 Washington Suburban Sanitary District, Maryland 12/98 at 102 Aaa 1,062,380
(Montgomery and Prince George's Counties, Maryland),
Water Supply Bonds of 1988 (Third Series),
7.100%, 12/01/02 (Pre-refunded to 12/01/98)
Washington Suburban Sanitary District, Maryland
(Montgomery and Prince George's Counties, Maryland),
General Construction Refunding Bonds of 1991
(Second Series):
1,100,000 8.000%, 1/01/02 No Opt. Call Aa1 1,249,831
1,250,000 6.100%, 1/01/04 1/02 at 102 Aa1 1,338,100
1,115,000 Washington Suburban Sanitary District, Maryland 6/02 at 102 Aa1 1,206,207
(Montgomery and Prince George's Counties, Maryland),
Water Supply Bonds of 1992, 6.200%, 6/01/09
1,000,000 Washington Suburban Sanitary District, Maryland 12/03 at 102 Aa1 989,500
(Montgomery and Prince George's Counties, Maryland),
Water Supply Refunding Bonds of 1993,
5.250%, 12/01/11
1,500,000 Washington Suburban Sanitary District, Maryland 6/03 at 102 Aa1 1,495,410
(Montgomery and Prince George's Counties, Maryland),
Sewage Disposal Bonds of 1993, 5.375%, 6/01/12
1,000,000 Commonwealth of Puerto Rico, Public Improvement 7/07 at 101 1/2 A 1,024,570
Bonds of 1997, 6.000%, 7/01/26
1,000,000 Puerto Rico Aqueduct and Sewer Authority, Revenue 7/98 at 102 AAA 1,062,435
Bonds, Series 1988A, 7.875%, 7/01/17
(Pre-refunded to 7/01/98)
- ----------------------------------------------------------------------------------------------------------
2,200,000 Puerto Rico Public Buildings Authority, 7/03 at 101 1/2 A 2,198,636
Public Education and Health Facilities
Refunding Bonds, Series M, Guaranteed
by the Commonwealth of Puerto Rico,
5.750%, 7/01/15
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,000,000 Puerto Rico Electric Power Authority, Power Revenue 7/04 at 100 Baa1 $ 963,880
Bonds, Series T, 5.500%, 7/01/20
1,010,000 Puerto Rico Telephone Authority, Revenue Bonds, 1/03 at 101 1/2 A+ 993,234
Series N, 5.500%, 1/01/22
$211,065,000 Total Investments - (cost $211,706,482) - 97.8% 216,617,945
============ Temporary Investments In Short-Term
Municipal Securities - 0.2%
$ 500,000 Maryland Health and Higher Educational Facilities VMIG-1 500,000
============ Authority, Kaiser Permanente Revenue Bonds,
1995 Series A, Variable Rate Demand Bonds,
3.850%, 7/01/15+ ------------
Other Assets Less Liabilities - 2.0% 4,360,270
------------
Net Assets - 100% $221,478,215
===========================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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 (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ 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.
(WI) Security purchased on a when-issued basis (see note 1 of the Notes to
Financial Statements).
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen North Carolina Premium Income Municipal Fund (NNC)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,090,000 Board of Governors of The University of North 2/06 at 102 AA $ 3,866,891
Carolina, University of North Carolina Hospitals
at Chapel Hill Revenue Bonds, Series 1996,
5.250%, 2/15/26
1,500,000 North Carolina Eastern Municipal Power 9/03 at 102 1/2 Baa1 1,444,725
Agency, PowerSystem Revenue Bonds,
Series 1985-G, 5.750%, 12/01/16
5,000,000 North Carolina Eastern Municipal Power Agency, Power 1/03 at 102 Baa1 4,732,000
System Revenue Bonds, Series 1993-D,
5.600%, 1/01/16
835,000 North Carolina Housing Finance Agency, Single Family 3/00 at 102 Aa 874,721
Revenue Bonds, Series-M (1985 Resolution), 7.850%,
9/01/28 (Alternative Minimum Tax)
3,145,000 North Carolina Housing Finance Agency, Single Family 9/02 at 102 Aa 3,266,491
Revenue Bonds, Series V (1985 Resolution), 6.800%,
9/01/25 (Alternative Minimum Tax)
North Carolina Housing Finance Agency, Multifamily
Revenue Bonds (1993 FHA Insured Mortgage Loan
Resolution), Series 1993:
650,000 5.800%, 7/01/14 1/03 at 102 Aa 653,127
1,000,000 5.900%, 7/01/26 1/03 at 102 Aa 997,180
5,815,000 North Carolina Housing Finance Agency, Single Family 3/04 at 102 AA 6,036,203
Revenue Bonds, Series X (1985 Resolution), 6.700%,
9/01/26 (Alternative Minimum Tax)
4,220,000 North Carolina Housing Finance Agency, Single Family 3/06 at 102 Aa 4,295,327
Revenue Bonds, Series HH (1985 Resolution), 6.300%,
3/01/26 (Alternative Minimum Tax)
1,000,000 North Carolina Medical Care Commission Hospital 6/02 at 102 AA 1,009,370
Revenue Refunding Series 1992-A (North Carolina
Baptist Hospital Project), Variable Rate Demand Bonds,
6.000%, 6/01/22
3,000,000 North Carolina Medical Care Commission, Hospital 5/02 at 102 AA 2,961,180
Revenue Refunding Bonds (Carolina Medicorp Project)
Series 1992, 5.500%, 5/01/15
3,000,000 North Carolina Medical Care Commission Hospital 8/02 at 102 Aaa 3,189,810
Revenue Refunding Bonds, Series 1992-A (Alamance
Health Services Inc. Project), Variable Rate Demand
Bonds, 6.375%, 8/15/12
2,855,000 North Carolina Municipal Power Agency Number 1, No Opt. Call Aaa 3,942,384
Catawba Electric Revenue Bonds, Series 1980,
10.500%, 1/01/10
1,000,000 North Carolina Municipal Power Agency Number 1, 1/03 at 100 A- 971,420
Catawba Electric Revenue Bonds, Series 1992,
5.750%, 1/01/15
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
State of North Carolina, State Education Assistance
Authority (A Political Subdivision of the State of
North Carolina), Guaranteed Student Loan Revenue
Bonds, 1995 Series A (Subordinate Lien):
$ 1,000,000 6.050%, 7/01/10 (Alternative Minimum Tax) 7/05 at 102 A $ 1,015,390
2,400,000 6.300%, 7/01/15 (Alternative Minimum Tax) 7/05 at 102 A 2,452,824
5,875,000 State of North Carolina, State Education Assistance 7/06 at 102 A 6,017,880
Authority (A Political Subdivision of the State of North
Carolina), Guaranteed Student Loan Revenue Bonds,
1996 Series C (Subordinate Lien), 6.350%, 7/01/16
(Alternative Minimum Tax)
2,280,000 University of North Carolina, Chapel Hill Hospital 2/02 at 102 AA 2,315,545
Revenue Bonds, Series 1992, 6.000%, 2/15/24
1,000,000 City of Asheville, North Carolina, Water System 8/06 at 102 Aaa 1,006,070
Revenue Bonds, Series 1996, 5.700%, 8/01/25
4,250,000 Metropolitan Sewerage District of Buncombe County 7/03 at 102 Aaa 4,156,458
(North Carolina), Sewerage System Revenue Refunding
Bonds, Series 1993A, 5.500%, 7/01/22
The Charlotte-Mecklenburg Hospital Authority (North
Carolina), Health Care System Revenue Bonds, Series 1992:
2,500,000 5.750%, 1/01/12 1/02 at 102 AA 2,520,950
5,090,000 6.250%, 1/01/20 1/02 at 102 AA 5,251,506
6,000,000 City of Charlotte, North Carolina, Refunding 12/03 at 102 Aaa 5,663,820
Certificates of Participation (Convention
Facility Project), Series 1993C, 5.250%, 12/01/20
1,000,000 City of Charlotte, North Carolina, Mortgage Revenue 1/03 at 105 Aaa 1,004,240
Refunding Bonds (FHA Insured Mortgage Loan -
Tryon Hills Apartments Project), Series 1993A,
5.875%, 1/01/25
2,180,000 The City of Concord, North Carolina, Certificates of 6/06 at 102 Aaa 2,273,980
Participation, Series 1996A, 6.125%, 6/01/21
3,000,000 Craven Regional Medical Authority, Insured 10/03 at 102 Aaa 2,988,960
Health Care Facilities Revenue Bonds, Series 1993
5.625%, 10/01/17
3,725,000 County of Duplin, North Carolina, Certificates of 8/03 at 102 Aaa 3,640,294
Participation (Law Enforcement Project and Public
Schools Project), Series 1993, 5.250%, 8/01/14
1,885,000 Local Government Commission of North Carolina, City 2/04 at 102 AAA 1,803,568
of Durham, North Carolina, Public Improvement Bonds,
Series 1994, 4.800%, 2/01/10
3,970,000 Durham, North Carolina, Certificates of Participation, 7/02 at 102 AA 4,118,915
Water Utility Improvements, 6.375%, 7/15/12
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 7,000,000 City of Fayetteville, North Carolina, Public Works 3/03 at 100 Aaa $ 6,418,720
Commission Revenue Refunding Bonds, Series 1993,
4.750%, 3/01/14
1,000,000 City of Greensboro, North Carolina, Combined 6/05 at 102 AA- 973,590
Enterprise System Revenue Bonds, Series 1995A,
5.375%, 6/01/19
3,500,000 The Haywood County Industrial Facilities and 12/05 at 102 Baa1 3,406,340
Pollution Control Financing Authority (North Carolina),
Environmental Improvement Revenue Bonds (Champion
International Corporation Project), Series 1995A,
5.750%, 12/01/25 (Alternative Minimum Tax)
2,000,000 The Haywood County Industrial Facilities and Pollution 3/06 at 102 Baa1 2,016,220
Control Financing Authority, Variable Rate Demand
Pollution Control Refunding Revenue Bonds (Champion
International Corporation Project), Series 1995,
6.000%, 3/01/20
1,300,000 The Mecklenburg County Industrial Facilities and 12/01 at 102 A+ 1,278,381
Pollution Control Financing Authority (North
Carolina), Industrial Revenue Refunding Bonds
(Fluor Corporation Project), 5.250%, 12/01/09
2,975,000 County of New Hanover, North Carolina Hospital 10/03 at 102 Aaa 2,575,458
Revenue Bonds (New Hanover Regional Medical
Center Project), Series 1993, 4.750%, 10/01/23
2,000,000 Orange County, General Obligation School Bonds, 2/05 at 102 Aa1 2,037,420
Series 1994, 5.500%, 2/01/11
3,400,000 Orange Water and Sewer Authority (North Carolina), 7/03 at 102 Aa 3,258,900
Water and Sewer System Revenue and Revenue
Refunding Bonds, Series 1993, 5.200%, 7/01/16
2,180,000 County of Union, North Carolina, Enterprise Systems 6/06 at 102 Aaa 2,144,335
Revenue Bonds, Series 1996, 5.500%, 6/01/21
3,235,000 County of Wake, North Carolina, Hospital System 10/03 at 102 Aaa 3,065,841
Revenue Bonds, Series 1993, 5.125%, 10/01/26
2,750,000 The Wake County Industrial Facilities and Pollution 4/00 at 102 A 2,945,854
Control Financing Authority, Pollution Control Revenue
Bonds (Carolina Power & Light Company Project),
Adjustable Rate Option Bond Series 1983,
6.900%, 4/01/09
6,250,000 Commonwealth of Puerto Rico, Public Improvement 7/06 at 101 1/2 A 5,959,187
Bonds of 1996 (General Obligation Bonds),
5.400%, 7/01/25
5,000,000 Puerto Rico Highway and Transportation Authority, 7/06 at 101 1/2 A 4,834,400
Highway Revenue Bonds, Series Y of 1996,
5.500%, 7/01/26
2,400,000 Puerto Rico Commonwealth Highway Authority, Highway 7/00 at 100 A 2,414,927
Revenue Bonds, Series 1990-Q, 6.000%, 7/01/20
- ----------------------------------------------------------------------------------------------------------
$128,255,000 Total Investments - (cost $126,583,480) - 97.6% 127,800,802
============ ------------
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
Temporary Investments In Short-Term
Municipal Securities - 0.3%
$ 400,000 Raleigh-Durham Airport Authority, Special Facility A-1+ $ 400,000
============ Refunding Revenue Bonds (American Airlines, Inc. ------------
Project), Series 1995B, Variable Rate Demand Bonds,
4.150%, 11/01/15+
Other Assets Less Liabilities - 2.1% 2,727,835
-----------
Net Assets - 100% $130,928,637
===========================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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 (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Virginia Premium Income Municipal Fund (NPV)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,250,000 Metropolitan Washington Airports Authority, Airport 10/03 at 102 Aaa $ 3,965,293
System Revenue and Refunding Bonds, Series 1993A,
5.250%, 10/01/22
1,900,000 Metropolitan Washington Airports Authority, Airport 10/02 at 102 Aaa 2,012,746
System Revenue Bonds, Series 1992A, 6.625%,
10/01/19 (Alternative Minimum Tax)
City of Virginia Beach Development Authority (Virginia),
Hospital Revenue Bonds (Sentara Bayside Hospital),
Series 1991:
2,000,000 6.600%, 11/01/09 11/01 at 102 AA 2,134,920
5,000,000 6.300%, 11/01/21 11/01 at 102 AA 5,223,200
835,000 City of Virginia Beach Development Authority, Multi- 6/03 at 102 AAA 849,412
Family Housing Mortgage Revenue Refunding Bonds,
1993 Series A (GNMA Collateralized - Pembroke Lake
Apartments), 6.200%, 6/20/28
1,000,000 City of Virginia Beach, Virginia, Water and Sewer 2/04 at 102 Aaa 927,130
System Revenue and Refunding Bonds, Series of 1993,
5.125%, 2/01/19
7,035,000 Commonwealth Transportation Board, Commonwealth of 5/04 at 101 Aa 7,390,901
Virginia, Transportation Revenue Bonds, Series 1995A
(Northern Virginia Transportation District Program),
6.250%, 5/15/17
5,500,000 Virginia College Building Authority, Educational 11/04 at 100 Aa2 5,779,235
Facilities Revenue Bonds (University of Richmond
Project), Series of 1994, 5.550%, 11/01/19
(Optional put 11/01/04)
2,750,000 Virginia College Building Authority, Educational 1/04 at 102 AA 2,763,668
Facilities Revenue Bonds (The Washington and
Lee University Project), Series of 1994,
5.800%, 1/01/24
1,000,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 Aa1 1,037,490
Mortgage Bonds, 1992 Series B, Subseries B-3,
6.750%, 7/01/21 (Alternative Minimum Tax)
3,240,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 Aa1 3,288,503
Mortgage Bonds, 1992 Series B, Subseries B-5, 6.300%,
1/01/27 (Alternative Minimum Tax)
Virginia Housing Development Authority, Commonwealth
Mortgage Bonds, 1992 Series B, Subseries B-6:
4,000,000 6.200%, 7/01/21 (Alternative Minimum Tax) 1/02 at 102 Aa1 4,036,240
2,945,000 6.250%, 1/01/27 (Alternative Minimum Tax) 1/02 at 102 Aa1 2,979,604
5,000,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 Aa1 5,101,200
Mortgage Revenue Bonds, 1992 Series B Subseries B-4,
6.550%, 1/01/27 (Alternative Minimum Tax)
3,955,000 Virginia Resources Authority, Water and Sewer System 10/05 at 102 AA 3,858,696
Revenue Bonds, 1995 Series A (Sussex County Project),
5.600%, 10/01/25
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,500,000 Albemarle County Service Authority Virginia), 8/02 at 102 Aa $ 1,534,770
Water and Sewer System Revenue Refunding Bonds,
5.750%, 8/01/11
1,100,000 Industrial Development Authority of Arlington County, 7/05 at 102 A 1,123,628
Virginia, Multi-Family Housing Mortgage Revenue
Bonds (Arlington Housing Corporation), 1995 Series,
5.700%, 7/01/07
1,000,000 Capital Region Airport Commission, Richmond 7/01 at 102 Aaa 990,190
(Virginia), International Airport Projects,
Airport Revenue Bonds, Series 1995A,
5.625%, 7/01/25
5,250,000 Chesapeake Bay Bridge and Tunnel District, General 7/01 at 102 Aaa 5,693,783
Resolution Revenue Bonds, Refunding Series 1991,
6.375%, 7/01/22 (Pre-refunded to 7/01/01)
County of Cumberland, Virginia, Certificates of
Participation, Series 1997:
1,075,000 6.200%, 7/15/12 No Opt. Call N/R 1,080,676
1,350,000 6.375%, 7/15/17 No Opt. Call N/R 1,357,493
1,500,000 Fairfax County Economic Development Authority 2/99 at 103 A1 1,605,060
(Virginia), Resource Recovery Revenue Bonds,
Series 1988-A (Ogden Martin Systems of Fairfax,
Inc. Project),7.750%, 2/01/11 (Alternative
Minimum Tax)
5,850,000 Industrial Development Authority of Fairfax County, No Opt. Call AA 5,321,628
Virginia, Hospital Revenue Refunding Bonds (Inova
Health System Hospitals Project), Series 1993A,
5.000%, 8/15/23
1,250,000 Industrial Development Authority of Fairfax County, 8/06 at 102 Aa 1,275,950
Virginia, Health Care Revenue Bonds (Inova Health
System Project), Series 1996A, 6.000%, 8/15/26
500,000 Fairfax County (Virginia), Redevelopment and Housing 8/03 at 102 Aaa 491,060
Authority, Mortgage Revenue Refunding Bonds,
Series 1993A (FHA Insured Mortgage Loan - Burke
Centre Station), 5.750%, 8/01/25
Fairfax County (Virginia) Water Authority, Water
Refunding Revenue Bonds, Series 1992:
1,640,000 6.000%, 4/01/22 4/07 at 102 Aa 1,698,220
9,965,000 5.750%, 4/01/29 4/02 at 100 Aa 10,020,405
5,060,000 Halifax County Industrial Development Authority 12/02 at 102 A+ 5,364,511
(Old Dominion Electric Cooperative),
6.350%, 12/01/07 (Alternative Minimum Tax)
1,500,000 Hampton Roads Sanitation District, Virginia, 10/03 at 102 Aa 1,360,440
Wastewater Refunding and Capital Improvement
Revenue Bonds, Series 1993, 5.000%, 10/01/23
5,000,000 Hampton Roads Regional Jail Authority, Regional Jail 7/06 at 102 Aaa 4,892,950
Facility Revenue Bonds, Series 1996A,
5.500%, 7/01/24
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 4,445,000 Hampton Redevelopment and Housing Authority 7/02 at 104 Baa2 $ 4,772,374
Multifamily Housing Revenue Refunding Bonds,
Series 1994 (Chase Hampton II Apartments),
7.000%, 7/01/24 (Mandatory put 7/01/04)
4,650,000 Bon Secours Health System Obligated Group Revenue 8/05 at 102 Aaa 4,478,834
Bonds, Industrial Development Authority of the
County of Hanover (Virginia), Hospital Revenue Bonds,
Series 1995 (Bon Secours Health System Projects),
5.500%, 8/15/25
3,250,000 Industrial Development Authority of the City of 12/02 at 102 Aaa 3,011,483
Harrisonburg, Virginia, Hospital Revenue Bonds
Rockingham Memorial Hospital), Series 1993,
5.250%, 12/01/22
1,500,000 Industrial Development Authority of Henrico, No Opt. Call Aaa 1,647,375
Virginia, Health Care Revenue Bonds (Bon
Secours Health), Series 1996, 6.250%, 8/15/20
1,000,000 Henrico County, Virginia, Water and Sewer System 5/02 at 100 AA- 1,041,400
Refunding Revenue Bonds, Series 1992, 6.250%, 5/01/13
1,500,000 Henry County Public Service Authority, Water 11/01 at 101 Aaa 1,568,535
and Sewer Refunding Revenue Bonds, Series 1991,
6.250%, 11/15/19
3,000,000 Industrial Development Authority of the Town of 1/04 at 102 A 2,915,790
Louisa, Virginia, Pollution Control Revenue Bonds
(Virginia Electric and Power Company Project), Series 1994,
5.450%, 1/01/24
Industrial Development Authority of the City of
Lynchburg, Virginia, Educational Facilities Revenue
Bonds (Randolph-Macon Woman's College), Series 1993:
2,940,000 5.875%, 9/01/13 9/03 at 102 A- 2,976,103
3,000,000 5.875%, 9/01/23 9/03 at 102 A- 3,019,170
2,500,000 Hospital Revenue and Refunding Bonds, Industrial 11/04 at 102 AA 2,665,650
Development Authority of the City of Norfolk, Hospital
Revenue and Refunding Bonds (Sentara Hospitals -
Norfolk), Series 1994A, 6.500%, 11/01/13
City of Norfolk, Virginia, Water Revenue Bonds,
Series 1995:
6,200,000 5.875%, 11/01/20 11/05 at 102 Aaa 6,296,224
2,500,000 5.900%, 11/01/25 11/05 at 102 Aaa 2,545,625
2,500,000 City of Portsmouth, Virginia, General Obligation 8/03 at 102 AA - 2,463,575
Bonds, Public Utility Refunding Bonds, Series 1993,
5.500%, 8/01/19
3,000,000 Prince William County Park Authority 10/04 at 102 A- 3,242,610
(Virginia), Revenue Bonds, Series 1994,
6.875%, 10/15/16
1,740,000 Prince William County Service Authority 7/03 at 102 Aaa 1,580,355
(Virginia), Water and Sewer System Refunding
Revenue Bonds, Series 1993, 5.000%, 7/01/21
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
$ 1,700,000 City of Richmond, Virginia, General Obligation Public 7/03 at 102 AA $ 1,652,838
Improvement Bonds, Series 1993B, 5.500%, 7/15/23
125,000 Richmond Metropolitan Authority (Virginia), Expressway 7/02 at 100 Aaa 125,513
Revenue and Refunding Bonds, Series 1992-A,
5.750%, 7/15/22
3,800,000 County of Roanoke, Virginia, General Obligation Public 6/03 at 100 Aa 3,484,600
Improvement and Refunding Bonds, Series 1993,
5.000%, 6/01/21
10,300,000 Valley Resource Authority of the City of Roanoke, 9/02 at 102 A+ 10,283,417
Virginia, Solid Waste System Revenue Bonds,
Series 1992, 5.750%, 9/01/12
3,000,000 Industrial Development Authority of the City of 7/03 at 102 Aaa 2,679,630
Roanoke, Virginia, Hospital Revenue Refunding Bonds
(Roanoke Memorial Hospitals, Community Hospital of Roanoke
Valley, Franklin Memorial Hospital and Saint Albans
Psychiatric Hospital Project), Series 1993A,
5.000%, 7/01/24
Southeastern Public Service Authority of Virginia,
Senior Revenue Bonds, Series 1993 (Regional Solid
Waste System):
500,000 5.875%, 7/01/08 (Alternative Minimum Tax) 7/03 at 102 A- 507,030
6,150,000 6.000%, 7/01/17 (Alternative Minimum Tax) 7/03 at 102 A- 6,146,064
2,355,000 Suffolk Redevelopment and Housing Authority, Mortgage 1/01 at 100 Aaa 2,373,840
Revenue Refunding Bonds, Series 1993 (FHA Insured
Mortgage Loan - Wilson Pines Apartments Section 8
Assisted Project), 6.125%, 1/01/23
2,595,000 Upper Occoquan Sewage Authority (Virginia), Regional 1/04 at 102 Aaa 2,353,769
Sewerage System Revenue Refunding Bonds, Series
of 1993, 5.000%, 7/01/21
2,000,000 City of Winchester, Virginia, General Obligation 1/04 at 102 Aa 2,001,900
Public Improvement and Refunding Bonds,
Series of 1994, 5.500%, 1/15/14
5,700,000 Commonwealth of Puerto Rico, Public Improvement 7/06 at 101 1/2 A 5,434,779
Bonds of 1996 (General Obligation Bonds),
5.400%, 7/01/25
3,500,000 Puerto Rico Highway and Transportation Authority, 7/02 at 101 1/2 AAA 3,855,915
Highway Revenue Bonds (Series T), 6.500%, 7/01/22
(Pre-refunded to 7/01/02)
- ----------------------------------------------------------------------------------------------------------
$179,400,000 Total Investments - (cost $175,643,524) - 98.5% 180,283,400
============ -------------
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
<S> <C> <C> <C> <C>
Temporary Investments In Short-Term
Municipal Securities - 0.2%
$ 400,000 Peninsula Ports Authority of Virginia Refunding Bonds P-1 $ 400,000
============ (Dominion Terminal Associates Project - Series 1987C), ------------
Variable Rate Demand Bonds, 3.950%, 7/01/16+
Other Assets Less Liabilities - 1.3% 2,413,293
------------
Net Assets - 100% $183,096,693
===========================================================================================
<FN>
* Optional Call Provisions (not covered by the report of independent
auditors): 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 (not covered by the report of independent auditors): Using the
higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
May 31, 1997
<CAPTION>
Georgia Maryland North Carolina
Premium Income Premium Income Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in municipal securities,
at market value (note 1) $77,172,900 $216,617,945 $127,800,802
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) 200,000 500,000 400,000
Cash -- 96,354 600,384
Receivables:
Interest 1,709,281 4,313,832 2,650,962
Investments sold -- 5,408,054 45,883
Other assets 5,658 20,172 13,295
- ---------------------------------------------------------------------------------------------------------
Total assets 79,087,839 226,956,357 131,511,326
- ---------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 33,967 -- --
Payable for investments purchased -- 4,564,745 --
Accrued expenses:
Management fees (note 6) 43,228 120,660 71,764
Other 66,334 113,761 90,071
Preferred share dividends payable 5,941 16,605 9,611
Common share dividends payable 241,473 662,371 411,243
- ---------------------------------------------------------------------------------------------------------
Total liabilities 390,943 5,478,142 582,689
- ---------------------------------------------------------------------------------------------------------
Net assets (note 7) $78,696,896 $221,478,215 $130,928,637
=========================================================================================================
Preferred shares, at liquidation value $27,800,000 $ 79,100,000 $ 46,800,000
=========================================================================================================
Preferred shares outstanding 1,112 3,164 1,872
=========================================================================================================
Common shares outstanding 3,714,970 10,349,546 6,230,957
=========================================================================================================
Net asset value per Common share outstanding (net
assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 13.70 $ 13.76 $ 13.50
=========================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
May 31, 1997
<CAPTION>
Virginia
Premium Income
- -------------------------------------------------------------------
<S> <C>
Assets
Investments in municipal securities,
at market value (note 1) $180,283,400
Temporary investments in short-term municipal
securities, at amortized cost, which approximates
market value (note 1) 400,000
Cash 186,251
Receivables:
Interest 3,031,263
Investments sold --
Other assets 13,804
- ------------------------------------------------------------------
Total assets 183,914,718
- ------------------------------------------------------------------
Liabilities
Cash overdraft --
Payable for investments purchased --
Accrued expenses:
Management fees (note 6) 99,904
Other 120,069
Preferred share dividends payable 15,988
Common share dividends payable 582,064
- ------------------------------------------------------------------
Total liabilities 818,025
- ------------------------------------------------------------------
Net assets (note 7) $183,096,693
==================================================================
Preferred shares, at liquidation value $ 63,800,000
==================================================================
Preferred shares outstanding 2,552
==================================================================
Common shares outstanding 8,497,278
==================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation
value, divided by Common shares outstanding) $ 14.04
==================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year Ended May 31, 1997
<CAPTION>
Georgia Maryland North Carolina
Premium Income Premium Income Premium Income
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
Investment Income
Tax-exempt interest income (note 1) $4,447,612 $12,236,612 $ 7,485,319
- ---------------------------------------------------------------------------------------------------------
Expenses:
Management fees (note 6) 504,705 1,415,544 838,964
Preferred shares - auction fees 69,501 197,751 117,001
Preferred shares - dividend disbursing agent fees 12,038 22,408 12,038
Shareholders' servicing agent fees and expenses 8,174 33,906 17,058
Custodian's fees and expenses 35,629 48,948 40,193
Trustees' fees and expenses (note 6) 1,233 2,642 1,740
Professional fees 17,263 17,892 17,483
Shareholders' reports - printing and mailing expenses 28,708 70,848 40,223
Stock exchange listing fees 3,255 18,822 16,184
Investor relations expense 5,845 16,585 9,548
Other expenses 13,193 15,410 14,543
- ---------------------------------------------------------------------------------------------------------
Total expenses 699,544 1,860,756 1,124,975
- ---------------------------------------------------------------------------------------------------------
Net investment income 3,748,068 10,375,856 6,360,344
- ---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss)from investment transactions
(notes 1 and 4) (252,801) (222,999) 400,003
Net change in unrealized appreciation or depreciation
of investments 2,814,265 5,782,311 4,073,182
- ---------------------------------------------------------------------------------------------------------
Net gain from investments 2,561,464 5,559,312 4,473,185
- ---------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $6,309,532 $15,935,168 $10,833,529
=========================================================================================================
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Year Ended May 31, 1997
<CAPTION>
Virginia
Premium Income
- ------------------------------------------------------------------------------
<S> <C>
Investment Income
Tax-exempt interest income (note 1) $10,498,170
Expenses:
Management fees (note 6) 1,167,585
Preferred shares - auction fees 159,500
Preferred shares - dividend disbursing agent fees 23,241
Shareholders' servicing agent fees and expenses 31,826
Custodian's fees and expenses 46,067
Trustees' fees and expenses (note 6) 2,252
Professional fees 16,272
Shareholders' reports - printing and mailing expenses 57,712
Stock exchange listing fees 16,298
Investor relations expense 16,423
Other expenses 17,364
- ------------------------------------------------------------------------------
Total expenses 1,554,540
- ------------------------------------------------------------------------------
Net investment income 8,943,630
- ------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions
(notes 1 and 4) (125,901)
Net change in unrealized appreciation or depreciation
of investments 5,962,001
- ------------------------------------------------------------------------------
Net gain from investments 5,836,100
- ------------------------------------------------------------------------------
Net increase in net assets from operations $14,779,730
==============================================================================
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
<CAPTION>
Georgia Premium Income Maryland Premium Income
- -------------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
5/31/97 5/31/96 5/31/97 5/31/96
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 3,748,068 $ 3,723,256 $ 10,375,856 $ 10,232,761
Net realized gain (loss) from investment transactions
(notes 1 and 4) (252,801) (384,227) (222,999) (647,854)
Net change in unrealized appreciation or depreciation
of investments 2,814,265 (1,053,418) 5,782,311 (870,418)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 6,309,532 2,285,611 15,935,168 8,714,489
- -------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (2,849,902) (2,696,829) (7,813,819) (7,628,394)
Preferred shareholders (863,423) (896,753) (2,462,066) (2,643,435)
- -------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (3,713,325) (3,593,582) (10,275,885) (10,271,829)
- -------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions 74,474 -- 128,815 85,329
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 74,474 -- 128,815 85,329
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 2,670,681 (1,307,971) 5,788,098 (1,472,011)
Net assets at beginning of year 76,026,215 77,334,186 215,690,117 217,162,128
- -------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 78,696,896 $ 76,026,215 $ 221,478,215 $ 215,690,117
===============================================================================================================================
Balance of undistributed net investment income at end of year $ 250,039 $ 215,296 $ 500,088 $ 400,117
===============================================================================================================================
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
- -------------------------------------------------------------------------------------------------------------------------------
North Carolina Premium Income Virginia Premium Income
- -------------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
5/31/97 5/31/96 5/31/97 5/31/96
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 6,360,344 $ 6,102,950 $ 8,943,630 $ 8,798,905
Net realized gain (loss) from investment transactions
(notes 1 and 4) 400,003 (774,668) (125,901) (196,020)
Net change in unrealized appreciation or depreciation
of investments 4,073,182 (2,009,109) 5,962,001 (2,074,130)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 10,833,529 3,319,173 14,779,730 6,528,755
- -------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (4,798,983) (4,353,544) (6,884,682) (6,614,465)
Preferred shareholders (1,461,339) (1,584,092) (2,048,258) (2,137,996)
- -------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (6,260,322) (5,937,636) (8,932,940) (8,752,461)
- -------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions 159,211 -- 600,991 478,269
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital share transactions 159,211 -- 600,991 478,269
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 4,732,418 (2,618,463) 6,447,781 (1,745,437)
Net assets at beginning of year 126,196,219 128,814,682 176,648,912 178,394,349
- -------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $130,928,637 $126,196,219 $183,096,693 $ 176,648,912
===============================================================================================================================
Balance of undistributed net investment income at end of year $ 389,795 $ 289,773 $ 452,186 $ 441,496
===============================================================================================================================
</TABLE>
<PAGE>
Notes to Financial Statements
1. General Information and Significant Accounting Policies
At May 31, 1997, 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.
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities within a single state. The
Funds are registered under the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
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
The prices of municipal bonds in each Fund's investment portfolio are
provided by a pricing service approved by the Fund's Board of Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
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 have extended settlement periods. 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 when-issued and delayed delivery purchase commitments. At
May 31, 1997, NMY had such outstanding purchase commitments of $4,564,745. There
were no such purchase commitments in any of the other 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
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount 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. All income dividends paid during the fiscal year ended May 31, 1997, have
been designated Exempt Interest Dividends. Net realized capital gain and market
discount distributions are subject to federal taxation.
<PAGE>
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryovers.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
Preferred Shares
The 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, were as follows:
<TABLE>
<CAPTION>
Georgia Maryland
Premium Income Premium Income
- ------------------------------------------------------------------------------
<S> <C> <C>
Number of Shares:
Series T -- --
Series W -- 1,404
Series Th 1,112 1,760
- ------------------------------------------------------------------------------
Total 1,112 3,164
==============================================================================
<CAPTION>
North Carolina Virginia
Premium Income Premium Income
- ------------------------------------------------------------------------------
<S> <C> <C>
Number of Shares:
Series T -- 832
Series W -- --
Series Th 1,872 1,720
- ------------------------------------------------------------------------------
Total 1,872 2,552
==============================================================================
</TABLE>
Derivative Financial Instruments
The Funds may invest in 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 fiscal year ended May 31, 1997.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period.
<PAGE>
<TABLE>
2. Fund Shares
Transactions in Common shares were as follow follows:
<CAPTION>
Georgia Premium Income Maryland Premium Income
- ---------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
5/31/97 5/31/96 5/31/97 5/31/96
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment
of distributions 5,440 -- 9,331 4,866
=========================================================================================================
<CAPTION>
North Carolina Premium Income Virginia Premium Income
- ---------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
5/31/97 5/31/96 5/31/97 5/31/96
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders due to reinvestment
of distributions 11,613 -- 42,523 33,946
=========================================================================================================
</TABLE>
3. Distributions to Common Shareholders
On June 2, 1997, the Funds declared Common share dividend distributions from
their tax-exempt net investment income which were paid July 1, 1997, to
shareholders of record on June 15, 1997, as follows:
<TABLE>
<CAPTION>
Georgia Premium Income Maryland Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Dividend per share $.0650 $.0640
=========================================================================================================
<CAPTION>
North Carolina Premium Income Virginia Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Dividend per share $.0660 $.0685
=========================================================================================================
</TABLE>
<PAGE>
4. Securities Transactions
Purchase and sales (including maturities) of investments in municipal securities
and temporary municipal investments during the fiscal year ended May 31, 1997,
were as follows:
<TABLE>
<CAPTION>
Georgia Premium Income Maryland Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
PURCHASES
Investments in municipal securities $23,986,038 $13,145,280
Temporary municipal investments 6,800,000 10,840,000
SALES AND MATURITIES
Investments in municipal securities 23,104,828 13,425,436
Temporary municipal investments 7,200,000 10,740,000
=========================================================================================================
<CAPTION>
North Carolina Premium Income Virginia Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
PURCHASES
Investments in municipal securities $24,577,122 $34,720,863
Temporary municipal investments 4,500,000 6,900,000
SALES AND MATURITIES
Investments in municipal securities 27,620,612 28,354,188
Temporary municipal investments 6,000,000 11,300,000
=========================================================================================================
</TABLE>
At May 31, 1997, 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, 1997, the Funds had unused capital loss carryovers available for
federal income tax purposes to be applied against future capital gains, if any.
If not applied, the carryovers will expire as follows:
<TABLE>
<CAPTION>
Georgia Premium Income Maryland Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Expiration year:
2002 $ -- $3,164,401
2003 1,288,994 1,019,929
2004 1,842,885 2,660,424
2005 340,685 454,351
- ---------------------------------------------------------------------------------------------------------
Total $3,472,564 $7,299,105
=========================================================================================================
<CAPTION>
North Carolina Premium Income Virginia Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Expiration year:
2002 $ 10,562 $1,946,517
2003 2,478,557 1,577,464
2004 1,137,399 1,579,895
2005 131,993 140,749
- ---------------------------------------------------------------------------------------------------------
Total $3,758,511 $5,244,625
=========================================================================================================
</TABLE>
<PAGE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 1997, were as follows:
<TABLE>
<CAPTION>
Georgia Premium Income Maryland Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Gross unrealized:
appreciation $2,958,525 $5,296,850
depreciation (100,743) (385,387)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $2,857,782 $4,911,463
=========================================================================================================
<CAPTION>
North Carolina Premium Income Virginia Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Gross unrealized:
appreciation $2,059,870 $5,391,562
depreciation (842,548) (751,686)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $1,217,322 $4,639,876
=========================================================================================================
</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 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 Management fee
- ---------------------------------------------------------------------------------------------------------
<S> <C>
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
- ---------------------------------------------------------------------------------------------------------
</TABLE>
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.
<PAGE>
7. Composition of Net Assets
At May 31, 1997, net assets consisted of:
<TABLE>
<CAPTION>
Georgia Premium Income Maryland Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $27,800,000 $ 79,100,000
Common shares, $.01 par value per share 37,150 103,495
Paid-in surplus 51,309,908 144,324,524
Balance of undistributed net investment income 250,039 500,088
Accumulated net realized gain (loss) from investment transactions (3,557,983) (7,461,355)
Net unrealized appreciation of investments 2,857,782 4,911,463
- ---------------------------------------------------------------------------------------------------------
Net assets $78,696,896 $221,478,215
=========================================================================================================
Authorized shares:
Common Unlimited Unlimited
Preferred Unlimited Unlimited
=========================================================================================================
<CAPTION>
North Carolina Premium Income Virginia Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 46,800,000 $ 63,800,000
Common shares, $.01 par value per share 62,310 84,973
Paid-in surplus 86,217,722 119,450,481
Balance of undistributed net investment income 389,795 452,186
Accumulated net realized gain (loss) from investment transactions (3,758,511) (5,330,823)
Net unrealized appreciation of investments 1,217,322 4,639,876
- ---------------------------------------------------------------------------------------------------------
Net assets $130,928,637 $183,096,693
=========================================================================================================
Authorized shares:
Common Unlimited Unlimited
Preferred Unlimited Unlimited
=========================================================================================================
</TABLE>
<PAGE>
8. Investment Composition
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At May 31, 1997, the revenue sources by municipal
purpose for these investments, expressed as a percent of total investments, were
as follows:
<TABLE>
<CAPTION>
Georgia Premium Income Maryland Premium Income
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenue Bonds:
Health Care Facilities 13% 13%
Housing Facilities 17 20
Water / Sewer Facilities 11 1
Lease Rental Facilities -- 5
Electric Utilities 5 1
Pollution Control Facilities 10 9
Educational Facilities 8 8
Transportation 4 8
Other 4 16
General Obligation Bonds 20 17
Escrowed Bonds 8 2
- ---------------------------------------------------------------------------------------------------------
100% 100%
=========================================================================================================
<CAPTION>
North Carolina Premium Income Virginia Premium Income
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenue Bonds:
Health Care Facilities 21% 16%
Housing Facilities 13 15
Water / Sewer Facilities 8 19
Lease Rental Facilities 12 3
Electric Utilities 11 --
Pollution Control Facilities 8 5
Educational Facilities 7 8
Transportation -- 4
Other 6 14
General Obligation Bonds 8 11
Escrowed Bonds 6 5
- ---------------------------------------------------------------------------------------------------------
100% 100%
=========================================================================================================
</TABLE>
Certain long-term and intermediate-term investments owned by the Funds are
either 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, both of which ensure the timely payment of principal and interest in
the event of default (55% for NPG, 44% for NMY, 33% for NNC and 29% 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 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>
Financial Highlights
Selected data for a common share outstanding throughout each period is as
follows:
<TABLE>
<CAPTION>
Dividends from tax-exempt
Operating performance net investment income
Net asset Net realized
value Net and unrealized
beginning investment gain (loss) To Common To Preferred
of period income from investments Shareholders Shareholders+
GEORGIA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 $13.000 $1.010 $ .691 $(.768) $(.233)
1996 13.350 1.004 (.385) (.727) (.242)
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>
MARYLAND
PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 13.210 1.003 .541 (.756) (.238)
1996 13.360 .990 (.146) (.738) (.256)
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 -- --
<CAPTION>
NORTH CAROLINA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 12.770 1.022 .714 (.771) (.235)
1996 13.190 .982 (.447) (.700) (.255)
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>
VIRGINIA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 13.350 1.055 .690 (.813) (.242)
1996 13.610 1.042 (.265) (.784) (.253)
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
Organization and
offering costs and Per common
Preferred share Net asset share
To Common To Preferred underwriting value market value
Shareholders Shareholders+ discounts end of period end of period
GEORGIA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 $ -- $ -- $ -- $13.700 $13.875
1996 -- -- -- 13.000 12.250
1995 -- -- -- 13.350 11.500
1994 -- -- (.152) 12.260 12.625
5/20/93 to 5/31/93 -- -- (.091) 13.960 15.000
<CAPTION>
MARYLAND
PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 -- -- -- 13.760 13.625
1996 -- -- -- 13.210 12.750
1995 -- -- -- 13.360 12.250
1994 -- -- (.142) 12.670 12.500
3/18/93 to 5/31/93 -- -- (.062) 14.130 15.250
<CAPTION>
NORTH CAROLINA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 -- -- -- 13.500 14.625
1996 -- -- -- 12.770 12.625
1995 -- -- -- 13.190 12.125
1994 -- -- (.142) 12.340 12.500
5/20/93 to 5/31/93 -- -- (.067) 14.000 15.125
<CAPTION>
VIRGINIA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 -- -- -- 14.040 14.500
1996 -- -- -- 13.350 13.500
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
Ratio of net
Total Ratio of investment
investment Total return Net assets expenses to income to Portfolio
return on on net end of period average average turnover
market value** asset value** (in thousands) net assets++ net assets++ rate
GEORGIA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 19.95% 11.53% $ 78,697 .90% 4.83% 30%
1996 12.88 2.81 76,026 .91 4.82 14
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>
MARYLAND
PREMIUM INCOME
<S> <C> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 13.07 10.08 221,478 .85 4.72 6
1996 10.22 4.41 215,690 .87 4.68 18
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* --
<CAPTION>
NORTH CAROLINA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 22.60 12.01 130,929 .87 4.92 19
1996 10.13 2.11 126,196 .88 4.75 39
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>
VIRGINIA
PREMIUM INCOME
<S> <C> <C> <C> <C> <C> <C>
Year ended 5/31:
1997 13.81 11.49 183,097 .86 4.95 16
1996 11.04 3.86 176,649 .87 4.92 27
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.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</FN>
</TABLE>
<PAGE>
Independent Auditor's Report
The Boards of Trustees and Shareholders
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
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Georgia Premium Income Municipal Fund,
Nuveen Maryland Premium Income Municipal Fund, Nuveen North Carolina Premium
Income Municipal Fund and Nuveen Virginia Premium Income Municipal Fund as of
May 31, 1997, and the related statements of operations, changes in net assets
and the financial highlights for the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of May
31, 1997, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Nuveen Georgia Premium Income Municipal Fund, Nuveen Maryland Premium Income
Municipal Fund, Nuveen North Carolina Premium Income Municipal Fund and Nuveen
Virginia Premium Income Municipal Fund at May 31, 1997, and the results of their
operations, changes in their net assets and financial highlights for the periods
indicated therein in conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
July 14, 1997
<PAGE>
Shareholder Information
Nuveen Family of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
Growth and Income Funds
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
Municipal Bond Funds
National Funds(1)
Long-Term
Insured
Intermediate
State Funds
Alabama Michigan
Arizona Missouri
California(2) New Jersey(3)
Colorado New Mexico
Connecticut New York(2)
Florida(3) North Carolina
Georgia Ohio
Kansas Pennsylvania
Kentucky(4) South Carolina
Louisiana Tennessee
Maryland Virginia
Massachusetts(2) Wisconsin
1. Long-term, insured long-term, intermediate-term and
limited-term portfolios.
2. Long-term and insured long-term portfolios.
3. Long-term and intermediate-term portfolios.
4. Long-term and limited-term portfolios.
To purchase additional shares of your Nuveen Municipal Bond Fund, contact your
financial adviser. If you would like to add to your current investment on a
monthly or semi-annual basis, you can sign up for Nuveen's systematic investing
program, which allows you to invest a fixed dollar amount every month
automatically.
You can also invest automatically through dividend reinvestment. By reinvesting
your fund's dividends back into the fund, you gain the added growth potential of
long-term compounding.
For more information on any of these service options call your adviser, or
Nuveen at (800) 621-7227.
<PAGE>
Fund Information
Board of Directors
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Peter R. Sawers
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Custodian
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004
Legal Counsel
Fried, Frank, Harris
Shriver & Jacobson
Washington, D.C.
Independent Auditors
Ernst &Young LLP
Chicago, IL
<PAGE>
"At Nuveen, we make reinvesting easy. A phone call is all it takes to set
up your reinvestment account."
(continued from inside front cover)
before purchases are completed, the average purchase price per share may
exceed the market price at the time of valuation resulting in the acquisition of
fewer shares than if the dividend or distribution had been paid in shares issued
by the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll
in or withdraw from the Plan, speak with your financial adviser or call us
toll-free at (800) 257-8787.
<PAGE>
Serving Investors for Generations
Photographic image of John Nuveen, Sr.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
trusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach - purchasing securities of strong companies and
communities that represent good long-term value - is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of equity and fixed-income mutual funds,
unit trusts, exchange-traded funds, individual managed account services, and
cash management products, including many that generate tax-free income.
To find out more about how Nuveen investment products and services can help
you preserve your financial security, talk with your financial adviser, or call
us at (800) 621-7227 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Nuveen
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
(800) 621-7227
www.nuveen.com
FAN-2 5-97
