NUVEEN Exchange-Traded Funds
MAY 31, 1999
ANNUAL REPORT
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NPG
Georgia
NMY
Maryland
NNC
North Carolina
NPV
Virginia
Photo of: Men standing by horses.
<PAGE>
Highlights
As of May 31, 1999
CONTENTS
1 Dear Shareholder
4 NPG's Portfolio Manager's Comments and Performance Overview
6 NMY's Portfolio Manager's Comments and Performance Overview
8 NNC's Portfolio Manager's Comments and Performance Overview
10 NPV's Portfolio Manager's Comments and Performance Overview
12 Shareholder Meeting Report
14 Report of Independent Auditors
15 Portfolio of Investments
28 Statement of Net Assets
29 Statement of Operations
30 Statement of Changes in Net Assets
32 Notes to Financial Statements
37 Financial Highlights
40 Build Your Wealth Automatically
41 Fund Information
CREDIT QUALITY PERFORMANCE HIGHLIGHTS
Nuveen Georgia Premium Income Municipal Fund (NPG)
o Outperformed the one-year total return of
its Lipper Peer Group and paralleled the
one-year total return performance of the
Lehman Brothers Municipal Bond Index *
o After a dividend increase in August 1998,
NPG has provided shareholders with a stable
tax-free dividend for 10 consecutive months
Pie Chart:
AAA/U.S. Guaranteed 68%
AA 17%
A 15%
Nuveen Maryland Premium Income Municipal Fund (NMY)
o Outperformed the one-year total return of
its Lipper Peer Group *
o Increased its dividend in February 1999
Pie Chart:
AAA/U.S. Guaranteed 66%
AA 15%
A 12%
BBB/NR 7%
Nuveen North Carolina Premium Income Municipal Fund (NNC)
o Has provided steady or increasing dividends
for 52 consecutive months
o Taxable-equivalent yield of 7.95% **
Pie Chart:
AAA/U.S. Guaranteed 41%
AA 34%
A 16%
BBB/NR 9%
Nuveen Virginia Premium Income Municipal Fund (NPV)
o Outperformed the one-year total return of
its Lipper Peer Group and the Lehman
Brothers Municipal Bond Index *
o Increased its dividend in May 1999
Pie Chart:
AAA/U.S. Guaranteed 42%
AA 31%
A 19%
BBB/NR 8%
* The Lipper Peer Group return represents the average annualized returns of
the funds in the Lipper Other States Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charge. The Lehman Brothers Municipal Bond Index is an unleveraged index
covering a broad range of investment grade municipal bonds. The return for
the index does not reflect any initial or ongoing expenses.
** For investors in the combined 31% federal and applicable state income tax
bracket. See your fund's Performance Overview in this report for more
information.
<PAGE>
Photo of: TIMOTHY R. SCHWERTFEGER
CHAIRMAN OF THE BOARD
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Dear Shareholder
It's a pleasure to report to you on the performance of your Nuveen
Exchange-Traded Fund. This type of fund - with its exceptional history of stable
tax-free income and its competitive market yield - offers investors an ideal way
to achieve balance in their overall investment programs while fulfilling its
primary objective of providing stable tax-free income.
Over the period covered by this report, we have seen some shifts in U.S.
economic trends and the fixed-income market environment in which your Nuveen
fund operates. I appreciate the opportunity to discuss these changes with you.
A CHALLENGING INVESTMENT ENVIRONMENT
Over the past 12 months, the U.S. economy has continued to be characterized by
robust growth, generally low interest rates, and unemployment levels that remain
among the lowest in three decades. However, concerns about the continued
persistent pace of the economy's expansion have tested the new paradigm that
says improvements in productivity enable us to have both economic growth and low
inflation at the same time. With investors and the various markets watching -
and reacting to - every announcement concerning economic statistics, volatility
has increased, especially in the equity markets.
While most current indicators continue pointing to a relatively strong
economy, we have entered a different environment from what we saw 12 months ago.
It is a more uncertain environment, where confidence in a continued positive
economic outlook is less assured. This shift has occurred primarily in response
to two factors: First, the Asian financial crisis of 1998 did not produce the
slowdown that was widely expected to keep economic growth from becoming too
robust. Second, evidence of accelerating prices, most obvious in the sudden
spike in April's Consumer Price Index, contributed to the reemergence of the
specter of inflation, accompanied by the likelihood of higher interest rates. In
fact, the Fed raised interest rates by 0.25% on June 30, 1999 to combat the
threat of inflation. This adjustment to the federal funds rate, which is the
rate that banks charge each other on overnight loans, is a stark con-trast to
the three reductions to interest rates made last fall. The fed funds rate now
stands at 5%, as of this report.
MUNICIPAL BOND PERFORMANCE
Over the past year, our exchange-traded municipal bond funds continued to offer
attractive, stable income in a market that places a high premium on yield. At
the end of May 1999, the ratio between long-term municipal yields and 30-year
Treasury yields stood at 93%, compared with the historical average of 86%
between 1986-1999. For investors, this meant that quality long-term municipal
bonds offered yields comparable to those of long Treasury bonds - even before
the tax advantages of municipal bonds were taken into account. On an after-tax
basis, municipal bonds continued to present an exceptionally attractive
investment option relative to Treasuries.
In the coming months, we expect to see a healthy supply of new municipal bonds,
although total volume is expected to drop from the near-record levels of 1998.
This is due to the dramatic decrease in the refunding of existing bonds in the
wake of higher interest rates. To date, municipal supply has declined by
approximately 25% from the levels of a year ago. This, in turn, has enhanced the
attractiveness of the municipal bonds that are brought to market, as demand -
especially from individual investors - remains strong. We anticipate that this
demand will continue to strengthen as investors increasingly look at rebalancing
their portfolios. With the outlook for tighter supply and continued demand in
the months ahead, Nuveen's established market position as the leading sponsor of
exchange-traded municipal bond funds ensures that we will have exceptional
access to the bond offerings that have the potential to add value for our
shareholders.
A BALANCING ACT
Volatility and uncertain markets highlight the importance of maintaining balance
in your investment portfolio. With a properly balanced portfolio of equities,
bonds, and cash, your assets will be better positioned to weather the markets'
ups and downs. A balanced portfolio can also help you increase your
opportunities for capital growth while reducing risk. Your Nuveen
Exchange-Traded Fund, with its holdings of quality tax-free municipal bonds,
represents an excellent counterpart to your equity holdings and provides
diversity in your quest to achieving a balanced portfolio.
Like most investors in the marketplace today, your goal is to capture the
highest returns possible while minimizing risk. According to Nuveen research,
balanced portfolios that combine equities with municipal bonds are the most
successful in achieving that goal, providing both superior after-tax total
returns and lower levels of risk. Over the past 20 years, portfolios containing
both equities and municipal bonds produced better results with lower volatility
than similar blends of equities with either Treasury or corporate bonds.
Incorporating even a 20% allocation of municipal bonds into an all-equity
port-folio cuts risk substantially, with only a small reduction in return.
Purchasing shares of a Nuveen Exchange-Traded Fund provides an easy way to
incorporate the benefits of municipal bonds into a balanced portfolio.
NUVEEN FUNDS: AN ANSWER TO YOUR INVESTMENT NEEDS
In light of the recent shifts in the economic environment, you may want to
discuss your current asset allocation with your financial adviser to determine
if adjustments are needed in your portfolio. As part of this process, your
financial adviser can set up a reinvestment plan designed to purchase additional
shares of your Nuveen Exchange-Traded Fund. Additionally, your financial adviser
can also help you invest in Nuveen Defined Portfolios to give you the proper
equity exposure needed to potentially enhance your opportunities for success. A
Nuveen Defined Portfolio is a fixed portfolio of securities designed to
accomplish a specific investment objective. Unlike a mutual fund which is
actively managed, the stocks or bonds in a defined portfolio do not change over
the life of the investment.
Nuveen's Defined Portfolios provide the benefits of an individual equity
security enhanced by diversification and professional selection. These
specialized equity portfolios concentrate on specific sectors of the market and
invest in stocks we consider to have the best potential for capital appreciation
within each sector. Whether the objective for your equity investment is growth,
aggressive growth, or growth and income, you'll find a Nuveen Defined Portfolio
designed to meet your needs. Our defined portfolios provide an excellent
complement to your Nuveen Exchange-Traded Fund in structuring a balanced
portfolio designed to build and sustain long-term financial security. For more
information on any of the Nuveen funds, contact your adviser for a prospectus,
or call Nuveen at (800) 621-7227. Please read the prospectus carefully before
you invest or send money.
Since 1898, Nuveen has been synonymous with investments that stand the test of
time. As we look ahead to a new millennium, we are committed to maintaining that
reputation and finding the best ways to serve your evolving investment needs.
Thank you for your continued confidence.
Sincerely,
/s/ TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
July 15, 1999
Sidebar text: "Volatility and uncertain markets highlight the importance of
maintaining balance in your investment portfolio."
<PAGE>
Nuveen Georgia Premium Income Municipal Fund (NPG)
Portfolio Manager's Comments
PORTFOLIO MANAGER TOM O'SHAUGHNESSY DISCUSSES THE GEORGIA MUNICIPAL MARKET,
RECENT FUND PERFORMANCE, AND THE OUTLOOK FOR THE NUVEEN GEORGIA PREMIUM INCOME
MUNICIPAL FUND. A 16-YEAR VETERAN OF NUVEEN, TOM HAS MANAGED NPG SINCE JULY
1998.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE GEORGIA MUNICIPAL MARKET
DURING THE PAST 12 MONTHS?
Once reliant on agriculture, Georgia's economy has remained stable as it
diversifies into a broad base of trade, service, and transportation industries.
The state's population growth rate is among the highest in the U.S., partially
as the result of Atlanta's success in attracting a large number of recent
college graduates. Another reason for the population increase is the growing
number of high-tech jobs, which has made Georgia one of the fastest-growing
technology states in the country, currently ranking tenth. This has been
beneficial for the state's economy in terms of per capita income, as the state's
high-tech workers earned 79% more than its private sector employees, according
to a recent study. Unemployment in the state remains low at 3.7% as of May 31,
1999, versus current national levels of 4.2% and the 4.3% reported by the state
in May 1998.
For the fiscal year ended May 31, 1999, issuance in the Georgia municipal
market was up 20% over the previous 12 months, countering the national trend
toward declining municipal issuance. The state's total supply was boosted by the
$1.1 billion in new insured Atlanta water and sewer bonds brought to market in
March. With this issue, the city completely refunded all of its previous debt
and also issued new bonds to fund water and sewer improvements. The issue
attracted attention both for its size and for the fact that Atlanta was also
privatizing the management and operation of its water system, becoming the
largest U.S. city to do so. The new Atlanta bonds also marked the beginning of a
flood of new issues, ending a drought of several months. Demand in the state has
remained strong, especially among individual investors.
HOW DID THE NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND (NPG) PERFORM IN THIS
ENVIRONMENT?
For the 12 months ended May 31, 1999, NPG produced a total return on net
asset value (NAV) of 4.64%, providing a taxable-equivalent total return(1) of
7.68% for shareholders in the combined 35% federal and state income tax bracket.
The Fund's total return outperformed the 4.33% average total return for the
Fund's Lipper peer group(2) and compared favorably with the annual total return
of 4.67% for the Lehman Brothers Municipal Bond Index(3).
Over the past year, active demand for NPG - bolstered by the Fund's
competitive yield and outstanding dividend record - resulted in solid share
price performance. NPG's one-year total return on share price, as of May 31,
1999, was 13.42%, providing a taxable-equivalent total return of 16.36% for
investors in the combined federal and state income tax bracket of 35%. At the
same time, however, the Fund's NAV was lower than it was a year ago due to the
prevailing economic environment of relatively higher interest rates compared to
May 1998. As a result of these factors, NPG saw its premium (share price over
NAV) widen by more than 9% over the past 12 months. At the end of May 1999, NPG
was trading at a premium of 12.46%.
HOW WAS THE FUND'S DIVIDEND AFFECTED?
Good call protection helped support the dividend of NPG and shield the income
of this fund from erosion. In addition, excellent dividend management strategies
over this period, including the prudent use of leverage, enabled us to increase
the Fund's dividend effective August 1998, enhancing the competitiveness of the
Fund's market yield. As a leveraged fund, NPG issues preferred shares that pay
short-term rates to investors seeking short-term liquidity. The proceeds from
the preferred shares are used to buy additional long-term bonds for the Fund's
portfolio. When short-term interest rates remain below long-term interest rates,
common shareholders have the potential to earn extra income from the difference
between the rate earned on the Fund's long-term portfolio and the short-term
rate paid to preferred shareholders.
As of May 31, 1999, NPG had provided shareholders with 52 consecutive months
of steady or increasing income. The market yield for the Fund was 4.95%,
equivalent to a taxable yield(4) of 7.62% for investors in the combined 35%
federal and state income tax bracket.
WHAT KEY STRATEGIES WERE USED TO MANAGE NPG DURING THE PAST 12 MONTHS?
Our management strategies for the Fund over the past year included taking
advantage of the supply/demand situation in the Georgia market. As mentioned
earlier, the supply of Georgia paper was very tight prior to March's large
Atlanta water and sewer issue. During that time, we bought general and limited
obligation bonds issued by Puerto Rico, which are also tax-exempt and because
they were plentiful, they offered attractive prices. Later, when Georgia bonds
began to flood the market, we were able to sell the Puerto Rico bonds at a
profit and replace them with state bonds, taking advantage of the temporary
decline in prices due to over-supply. We also capitalized on the supply scenario
to help us maximize the tax efficiency of the Fund. To maintain a degree of
liquidity in the portfolio, we emphasized bonds where we saw potential demand by
the retail sector. This liquidity enhanced our ability to move quickly and
capture market opportunities as they arose. One such situation was the
opportunity to add quality housing bonds offering above-market yields.
Overall, the Fund continues to offer excellent credit quality. At the end of
May 1999, NPG had 85% of its portfolio invested in bonds rated AAA and AA. In
the area of bond calls, the Fund currently provides very good levels of call
protection, with only 5% of its portfolio subject to calls prior to 2002. This
should offer some protection for the Fund's dividend over this period. To
minimize the impact of future calls, we are already at work on strategies for
managing through this period.
WHAT IS NUVEEN'S OUTLOOK FOR NPG?
Looking ahead for the Fund, we believe that the supply of Georgia paper will
drop off substantially after the recent spate in supply. To anticipate this
situation, we plan to minimize our holdings of non-Georgia and territorial bonds
(e.g., Puerto Rico) to position the portfolio for a low-supply environment. Our
focus will remain on supporting the income stream of this fund at the highest
level consistent with capital preservation. These strategies demonstrate the
value that can be added by an active bond manager such as Nuveen. As an
experienced investment manager knowledgeable about the unique aspects of the
Georgia municipal market, we are in the marketplace every day, monitoring market
dynamics, looking for opportunities, and capitalizing on them to the benefit of
shareholders.
1 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 35%. It represents the return on
a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
2 The Lipper Peer Group return represents the average annualized return of the
18 funds in the Lipper Other States Municipal Debt category. The return
assumes reinvestment of divi-dends and does not reflect any applicable sales
charges.
3 NPG is compared with the Lehman Brothers Municipal Bond Index, an unleveraged
index comprising a broad range of investment-grade municipal bonds. The return
for the Lehman index does not reflect any initial or ongoing expenses.
4 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
rate is based on a combined federal and state income tax rate of 35%.
<PAGE>
Nuveen Georgia Premium Income Municipal Fund
Performance Overview
As of May 31, 1999
NPG
PORTFOLIO STATISTICS
Inception Date 5/93
- --------------------------------------------------
Share Price $16 1/4
- --------------------------------------------------
Net Asset Value $14.45
- --------------------------------------------------
Market Yield 4.95%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 7.17%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 7.62%
- --------------------------------------------------
Fund Net Assets ($000) $81,822
- --------------------------------------------------
Effective Maturity (Years) 20.17
- --------------------------------------------------
Leverage-Adjusted Duration 10.78
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 13.42% 4.64%
- --------------------------------------------------
5-Year 11.26% 9.31%
- --------------------------------------------------
Since Inception 6.99% 6.21%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 16.36% 7.68%
- --------------------------------------------------
5-Year 14.52% 12.47%
- --------------------------------------------------
Since Inception 10.05% 9.24%
- --------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 13%
- --------------------------------------------------
Housing/Multifamily 13%
- --------------------------------------------------
Utilities 13%
- --------------------------------------------------
Tax Obligation/Limited 11%
- --------------------------------------------------
Healthcare 10%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
FEDERAL ONLY rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for FEDERAL AND STATE highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 35%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 35%. It represents the return on
a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
6/98 0.066
7/98 0.066
8/98 0.067
9/98 0.067
10/98 0.067
11/98 0.067
12/98 0.067
1/99 0.067
2/99 0.067
3/99 0.067
4/99 0.067
5/99 0.067
Line Chart:
Share Price Performance
6/5/98 14.813
14.75
14.5
15
14.875
15.438
15.438
15.5
15.75
15.813
15.5
15.625
15.5
15.688
15.5
15.75
15.813
16.5
16.875
16.188
15.75
16.25
16.63
16.13
16.31
16.31
16.19
16.19
16.13
16.13
16
16
15.94
16.06
16.19
16.19
16.31
16.25
16.38
16.25
16.25
16.3125
16.31
16.5
16.63
16.5
16.25
16.13
5/31/99 16.25
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio Manager's Comments
PORTFOLIO MANAGER TOM FUTRELL REVIEWS THE MARYLAND MUNICIPAL MARKET, FUND
PERFORMANCE, AND KEY STRATEGIES FOR THE NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL
FUND. A 16-YEAR VETERAN OF NUVEEN, TOM MANAGES A RANGE OF NUVEEN NATIONAL AND
STATE MUNICIPAL BOND FUNDS.
HE ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY FOR NMY IN EARLY 1999.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE MARYLAND MUNICIPAL MARKET
DURING THE PAST 12 MONTHS?
Maryland's economy continues to recover from the recession of the early
1990s. This recovery has been aided by good job growth in the services sector,
primarily business services, computers, data processing, and security services.
Because of its proximity to Washington D.C., Maryland has traditionally had a
higher concentration of federal employment than other states. While the federal
employment currently accounts for 20% of the state's jobs, this represents a
decline from previous years due to downsizing at the federal level. This, in
turn, has impacted the state's per capita income levels, as higher-paying
federal jobs were replaced by lower-paying jobs in the services sector. However,
Maryland's per capita income continues to outpace the national average, and the
state remains one of the wealthiest in the country, ranking fifth in terms of
per capita income. In May 1999, unemployment in the state was 3.8%, below the
national level of 4.2% and an improvement over May 1998's 4.8%.
Issuance in the Maryland municipal market for the fiscal year ended May 31,
1999 totaled $3.2 billion, down 10% from the prior period. This decline, which
follows the national trend toward lower levels of issuance, helped to create a
tight bond supply situation in the state, though demand for Maryland paper
remains strong.
HOW DID THE NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND (NMY) PERFORM IN THIS
ENVIRONMENT?
For the 12 months ended May 31, 1999, NMY produced a total return on net
asset value (NAV) of 4.44%, providing a taxable-equivalent total return(1) of
7.30% for shareholders in the combined 34.5% federal and state income tax
bracket. The Fund's total return outperformed the 4.33% average total return for
the Fund's Lipper peer group(2), while trailing the annual total return of 4.67%
for the Lehman Brothers Municipal Bond Index(3).
Over the past year, active demand for NMY - bolstered by the Fund's
competitive yield and outstanding dividend record - resulted in solid share
price performance. NMY's one-year total return on share price, as of May 31,
1999, was 5.47%, providing a taxable-equivalent total return of 8.23% for
investors in the combined federal and state income tax bracket of 34.5%. At the
same time, however, the Fund's NAV was lower than it was a year ago due to the
prevailing economic environment of relatively higher interest rates compared to
May 1998. As a result of these factors, NMY saw its premium (share price over
NAV) widen by 1.36% over the past 12 months. At the end of May 1999, NMY was
trading at a premium of 4.96%.
HOW WAS THE FUND'S DIVIDEND AFFECTED?
Good call protection helped support the dividend of NMY and shield the income
of this fund from erosion. In addition, excellent dividend management strategies
over this period, including the prudent use of leverage, enabled us to increase
the Fund's dividend effective February 1999, enhancing the competitiveness of
the Fund's market yield. As a leveragedfund, NMY issues preferred shares that
pay short-term rates to investors seeking short-term liquidity. The proceeds
from the preferred shares are used to buy additional long-term bonds for the
Fund's portfolio. When short-term interest rates remain below long-term interest
rates, common shareholders have the potential to earn extra income from the
difference between the rate earned on the Fund's long-term portfolio and the
short-term rate paid to preferred shareholders.
As of May 31, 1999, NMY had provided shareholders with 64 consecutive months
of steady or increasing dividends. The market yield for the Fund was 5.16%,
equivalent to a taxable yield(4) of 7.88% for investors in the combined 34.5%
federal and state income tax bracket.
WHAT KEY STRATEGIES WERE USED TO MANAGE NMY DURING THE PAST 12 MONTHS?
The focus of our management strategies for NMY over the past year was on
adding above-market levels of income to support and enhance the Fund's dividend.
Several individual bond purchases helped us achieve that goal. One of these
purchases involved a AAA rated FNMA multifamily housing issue for Auburn Manor
that enabled us to pick up about 25 basis points of incremental yield. We also
purchased some insured AAA rated City of Baltimore water project bonds that
offered attractive yields and, as noncallable bonds, enhanced NMY's structure by
adding to the Fund's call protection.
Overall, the Fund continues to offer excellent credit quality. At the end of
May 1999, NMY had 81% of its portfolio invested in bonds rated AAA and AA, with
an allocation of 7% in BBB and non-rated bonds, which generally provide higher
yields. In the area of bond calls, the Fund currently offers good levels of call
protection, with only 7% of its portfolio subject to calls prior to 2003. This
should provide some protection for the Fund's dividend over this period. To
minimize the impact of any future calls, we are already at work on strategies
for managing through this period.
WHAT IS NUVEEN'S OUTLOOK FOR NMY?
In the coming months, our focus will remain on supporting the income stream
of this fund at the highest level consistent with capital preservation. As part
of our strategies for achieving this goal, we will continue searching for
opportunities to purchase investments that add incremental yield. This
demonstrates the value that can be added by an active bond manager such as
Nuveen. As an experienced investment manager knowledgeable about the unique
aspects of the Maryland municipal market, we are in the marketplace every day,
monitoring market dynamics, looking for opportunities, and capitalizing on them
to the benefit of shareholders.
1 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 34.5%. It represents the return
on a taxable investment neces-sary to equal the return of the Nuveen fund on
an after-tax basis.
2 The Lipper Peer Group return represents the average annual-ized total return
of the 18 funds in the Lipper Other States Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charges.
3 NMY is compared with the Lehman Brothers Municipal Bond Index, an unleveraged
index comprising a broad range of investment-grade municipal bonds. The return
for the Lehman index does not reflect any initial or ongoing expenses.
4 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
rate is based on a combined federal and state income tax rate of 34.5%.
<PAGE>
Nuveen Maryland Premium Income Municipal Fund
Performance Overview
As of May 31, 1999
NMY
PORTFOLIO STATISTICS
Inception Date 3/93
- --------------------------------------------------
Share Price $15 1/8
- --------------------------------------------------
Net Asset Value $14.41
- --------------------------------------------------
Market Yield 5.16%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 7.48%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 7.88%
- --------------------------------------------------
Fund Net Assets ($000) $229,520
- --------------------------------------------------
Effective Maturity (Years) 18.30
- --------------------------------------------------
Leverage-Adjusted Duration 10.89
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 5.47% 4.44%
- --------------------------------------------------
5-Year 9.82% 8.43%
- --------------------------------------------------
Since Inception 5.61% 5.89%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 8.23% 7.30%
- --------------------------------------------------
5-Year 12.91% 11.45%
- --------------------------------------------------
Since Inception 8.53% 8.79%
- --------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
Utilities 21%
- --------------------------------------------------
Healthcare 19%
- --------------------------------------------------
Housing/Multifamily 16%
- --------------------------------------------------
Tax Obligation/Limited 10%
- --------------------------------------------------
U.S. Guaranteed 6%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
FEDERAL ONLY rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for FEDERAL AND STATE highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 34.5%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 34.5%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
6/98 0.064
7/98 0.064
8/98 0.064
9/98 0.064
10/98 0.064
11/98 0.064
12/98 0.064
1/99 0.064
2/99 0.065
3/99 0.065
4/99 0.065
5/99 0.065
Line Chart:
Share Price Performance
6/5/98 15.125
15.25
15
14.938
15.438
15.438
15.5
15.438
15.313
15.688
15.563
15.688
15.563
15.375
15.313
15.125
15.813
15.938
16
16
16
16.06
16.06
16.19
16.25
16.31
16.25
16.38
16.31
16
15.69
15.44
15.5
15.75
15.63
15.88
15.81
15.94
15.94
15.75
15.75
16
16
15.69
15.69
15.63
15
14.75
5/31/99 15.13
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen North Carolina Premium Income Municipal Fund (NNC)
Portfolio Manager's Comments
PORTFOLIO MANAGER TOM O'SHAUGHNESSY TALKS ABOUT THE NORTH CAROLINA MUNICIPAL
MARKET, FUND PERFORMANCE, AND THE OUTLOOK FOR THE NUVEEN NORTH CAROLINA PREMIUM
INCOME MUNICIPAL FUND. TOM, WHO JOINED NUVEEN IN 1983, HAS MANAGED NNC SINCE
JULY 1998.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE NORTH CAROLINA MUNICIPAL
MARKET DURING THE PAST 12 MONTHS?
Economic growth in the state during the past 12 months has been helped by
continued population and job growth. North Carolina's unemployment level remains
extremely low, reaching 3.1% in May 1999, compared with the current national
average of 4.2% and a state level of 3.4% one year ago. In North Carolina, the
disadvantages associated with an overly tight job market have been offset by the
continuing influx of new residents. Job growth in the high-tech and
pharmaceutical sectors continues to outpace losses in the textile, apparel, and
furniture industries, with the additional benefit of providing greater
diversification in the state's economy.
One of the more significant events in the North Carolina market over the past
year was Moody's downgrade of bonds issued by the North Carolina Eastern
Municipal Power Agency, one of the state's larger issuers, from Baa1 to Baa3.
Moody's took this action based on concerns about Eastern's ability to perform in
a deregu-lated environment following the failure of legislation aimed at helping
the agency cover costs. It is important to note that NNC had no uninsured
exposure to these Eastern issues.
For the 12 months ended May 31, 1999, total issuance in the state reached
$4.3 billion, an increase of only 2% over the previous 12-month period. For the
most recent six months, however, issuance actually fell 17%, reflecting the
tighter supply in the overall municipal market. Demand in the state, especially
from individual investors, continues to outpace supply, largely due to the high
level of North Carolina's taxes.
HOW DID THE NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND (NNC) PERFORM IN
THIS ENVIRONMENT?
For the 12 months ended May 31, 1999, NNC produced a total return on net
asset value (NAV) of 4.11%, providing a taxable-equivalent total return(1) of
7.33% for shareholders in the combined 36.5% federal and state income tax
bracket. The Fund's total return compares with the 4.33% average total return
for the Fund's Lipper peer group(2), while trailing the annual total return of
4.67% for the Lehman Brothers Municipal Bond Index(3).
The major factor in the Fund's performance over the past 12 months was the
continued tight supply of North Carolina bonds, which limited trading for the
Fund. As mentioned earlier, new issuance in the state has been tight, making it
a challenge to actively buy and sell the bonds needed to implement new
strategies designed to add value or capture additional yield. Over the past
year, active demand for NNC - bolstered by the Fund's competitive yield and
outstanding dividend record - resulted in solid share price performance. NNC's
one-year total return on share price, as of May 31, 1999, was 9.87%, providing a
taxable-equivalent total return of 12.98% for investors in the combined federal
and state income tax bracket of 36.5%. At the same time, however, the Fund's NAV
was lower than it was a year ago due to the prevailing economic environment of
relatively higher interest rates compared to May 1998. As a result of these
factors, NNC saw its premium (share price over NAV) widen by more than 6% over
the past 12 months. At the end of May 1999, NNC was trading at a premium of
9.86%.
HOW WAS THE FUND'S DIVIDEND AFFECTED?
Good call protection and the prudent use of leverage helped support the
dividend of NNC and shield the income of this fund from erosion. As a leveraged
fund, NNC issues preferred shares that pay short-term rates to investors seeking
short-term liquidity. The proceeds from the preferred shares are used to buy
additional long-term bonds for the Fund's portfolio. When short-term interest
rates remain below long-term interest rates, common shareholders have the
potential to earn extra income from the difference between the rate earned on
the Fund's long-term portfolio and the short-term rate paid to preferred
shareholders.
As of May 31, 1999, NNC had provided shareholders with 52 consecutive months
of stable or increasing dividends. The market yield for the Fund was 5.05%,
equivalent to a taxable yield(4) of 7.95% for investors in the combined 36.5%
federal and state tax income bracket.
WHAT KEY STRATEGIES WERE USED TO MANAGE NNC DURING THE PAST 12 MONTHS?
Given the tight supply in the North Carolina market, the focus of our
management strategies over the past year was on taking advantage of every
opportunity to purchase well-structured bonds that added yield to the portfolio.
We were recently able to purchase both hospital bonds for Duke University's
Medical Center and housing bonds that accomplished this goal.
Overall, the Fund continues to offer excellent credit quality. At the end of
May 1999, NNC had 75% of its portfolio invested in bonds rated AAA and AA, with
a 9% allocation of BBB and non-rated bonds, which generally provide enhanced
levels of yield. In the area of bond calls, the Fund currently offers very good
levels of call protection, with only 2% of its portfolio subject to calls prior
to 2002. This should provide additional protection for the Fund's dividend over
this period. To minimize the impact of future calls, we are already at work on
strategies for managing through this period.
WHAT IS NUVEEN'S OUTLOOK FOR NNC?
Looking ahead for the Fund, our focus will remain on supporting the income
stream of this fund at the highest level consistent with capital preservation.
As part of our strategies for achieving this goal, we intend to keep the Fund
fully invested. With projections that municipal issuance in the state may
dwindle even further from current tight levels, we will be poised to take
advantage of all opportunities to increase yield. To enhance our ability to move
quickly when market opportunities appear, we plan to keep adequate assets in
more liquid issues, i.e., bonds that can be sold easily into retail demand, in
order to give us the cash necessary to make advantageous purchases. These
strategies demonstrate the value that can be added by an active bond manager
such as Nuveen. As an experienced investment manager knowl-edgeable about the
unique aspects of the North Carolina municipal market, we are in the marketplace
every day, monitoring market dynamics, looking for opportunities, and
capitalizing on them to the benefit of shareholders.
1 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 36.5%. It represents the return
on a taxable investment neces-sary to equal the return of the Nuveen fund on
an after-tax basis.
2 The Lipper Peer Group return represents the average annual-ized return of the
18 funds in the Lipper Other States Municipal Debt category. The return
assumes reinvestment of divi-dends and does not reflect any applicable sales
charges.
3 NNC is compared with the Lehman Brothers Municipal Bond Index, an unleveraged
index comprising a broad range of investment-grade municipal bonds. The return
for the Lehman index does not reflect any initial or ongoing expenses.
4 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
rate is based on a combined federal and state income tax rate of 36.5%.
<PAGE>
Nuveen North Carolina Premium Income Municipal Fund
Performance Overview
As of May 31, 1999
NNC
PORTFOLIO STATISTICS
Inception Date 5/93
- --------------------------------------------------
Share Price $15 11/16
- --------------------------------------------------
Net Asset Value $14.28
- --------------------------------------------------
Market Yield 5.05%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 7.32%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 7.95%
- --------------------------------------------------
Fund Net Assets ($000) $136,177
- --------------------------------------------------
Effective Maturity (Years) 19.92
- --------------------------------------------------
Leverage-Adjusted Duration 10.27
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 9.87% 4.11%
- --------------------------------------------------
5-Year 10.57% 8.92%
- --------------------------------------------------
Since Inception 6.23% 5.87%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 12.98% 7.33%
- --------------------------------------------------
5-Year 13.91% 12.29%
- --------------------------------------------------
Since Inception 9.39% 9.08%
- --------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
Healthcare 19%
- --------------------------------------------------
Tax Obligation/Limited 17%
- --------------------------------------------------
Housing/Single Family 12%
- --------------------------------------------------
U.S. Guaranteed 10%
- --------------------------------------------------
Water and Sewer 10%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
FEDERAL ONLY rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for FEDERAL AND STATE highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 36.5%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 36.5%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
6/98 0.066
7/98 0.066
8/98 0.066
9/98 0.066
10/98 0.066
11/98 0.066
12/98 0.066
1/99 0.066
2/99 0.066
3/99 0.066
4/99 0.066
5/99 0.066
Line Chart:
Share Price Performance
6/5/98 15.625
15.5
15.563
15.75
16
15.813
15.75
15.688
15.688
15.625
15.688
15.625
15.813
15.813
16.688
16.063
16.063
16.25
16.375
16.188
16.5
16.19
16.38
16.63
16.69
16.75
16.44
16.38
16.63
16.5
16.19
15.94
15.94
16.13
15.94
15.94
16.06
16.13
15.94
16.25
16.25
16.25
16.06
16.19
16.25
16.25
15.94
15.69
5/31/99 15.69
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio Manager's Comments
PORTFOLIO MANAGER BILL FITZGERALD DESCRIBES THE VIRGINIA MUNICIPAL MARKET,
RECENT FUND PERFORMANCE, AND MANAGEMENT STRATEGIES FOR THE NUVEEN VIRGINIA
PREMIUM INCOME MUNICIPAL FUND. BILL, WHO HAS MORE THAN 11 YEARS OF EXPERIENCE AS
AN INVESTMENT PROFESSIONAL AT NUVEEN, MANAGES A RANGE OF NUVEEN NATIONAL AND
STATE MUNICIPAL BOND FUNDS. HE ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY FOR
NPV IN EARLY 1999.
WHAT FACTORS CONTRIBUTED TO THE PERFORMANCE OF THE VIRGINIA MUNICIPAL MARKET
DURING THE PAST 12 MONTHS?
Over the past year, the Virginia economy continued to perform well, with low
unemployment and strong job growth. In May 1999, the commonwealth's unemployment
figure was 3.0%, compared to 2.9% from May 1998, versus 4.2% for the national
average. Job growth in the state continues to outpace the national rate, with
the majority of new jobs added in the northern part of Virginia. Virginia's
economy, which has historically relied on federal government employment, is now
more diversified, with strong growth in business services, retail and whole-sale
trade, and the construction sector.
Overall, the Virginia municipal market remains very stable, with no apparent
volatility in any sector. For the 12 months ended May 31, 1999, municipal
issuance in the commonwealth declined 15% from the prior year, totaling $4.4
billion for the year. This decrease mirrors the national trend toward lower
municipal issuance. Demand for Virginia municipal bonds remains on par with that
of previous years.
HOW DID THE NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND (NPV) PERFORM IN THIS
ENVIRONMENT?
For the 12 months ended May 31, 1999, NPV produced a total return on net
asset value (NAV) of 5.09%, providing a taxable-equivalent total return(1) of
8.13% for shareholders in the combined 35% federal and state income tax bracket.
The Fund's total return outperformed both the annual total return of 4.67% for
NPV's benchmark, the Lehman Brothers Municipal Bond Index(2) and the 4.33%
average total return for the Fund's Lipper peer group(3). The Lipper result
placed the Fund second among the peer group's 18 funds.
Over the past year, NPV saw its share price fall slightly, while the Fund's
NAV was lower than it was a year ago. This is due to the prevailing economic
environment of relatively higher interest rates compared to May 1998. As a
result of these factors, NPV's premium (share price over NAV) widened slightly
over the past 12 months. As of May 31, 1999, NPV was trading at a premium of
7.87%, and the Fund's one-year total return on share price was 4.77%, providing
a taxable-equivalent total return of 7.59% for investors in the combined federal
and state income tax bracket of 35%.
Two of the Fund's investment decisions helped NPV outperform the Lehman
index: The Fund's 19% allocation of A rated bonds represented an overweighting
compared with the index's 12% exposure, while NPV's 14% investment in the
housing sector (multifamily and single family) was significantly higher than the
index's 4% weighting. Both of these sectors offered higher yields than their
quality and industry sector counterparts and helped the Fund's overall
performance.
HOW WAS THE FUND'S DIVIDEND AFFECTED?
Good call protection helped support the dividend of NPV and shield the income
of this fund from erosion. In addition, excellent dividend management strategies
over this period, including the prudent use of leverage, enabled us to increase
the dividend effective May 1999. As a leveraged fund, NPV issues preferred
shares that pay short-term rates to investors seeking short-term liquidity. The
proceeds from the preferred shares are used to buy additional long-term bonds
for the Fund's portfolio. When short-term interest rates remain below long-term
interest rates, common share-holders have the potential to earn extra income
from the difference between the rate earned on the Fund's long-term portfolio
and the short-term rate paid to preferred shareholders.
As of May 31, 1999, NPV had provided shareholders with steady or increasing
dividends since the Fund's inception in March 1993, or 74 consecutive months.
The market yield for the Fund was a competitive 5.23%, equivalent to a taxable
yield(4) of 8.05% for investors in the combined 35% federal and state income tax
bracket.
WHAT KEY STRATEGIES WERE USED TO MANAGE NPV DURING THE PAST 12 MONTHS?
The focus of our management strategies for the Fund over the past year was on
supporting and enhancing NPV's income stream. During the period under review, we
made a shift from the utilities sector into the healthcare and industrial
development sectors. This was primarily implemented through the purchase of
bonds issued for the Medical College of Virginia and a Goochland County
industrial development revenue issue for Nekoosa Packaging. Both of these
additions to the portfolio enabled us to pick up incremental yield, while
shifting assets to two sectors that we believe will outperform the utilities
sector in the coming months.
Overall, the Fund continues to offer excellent credit quality. At the end of
May 1999, NPV had 73% of its portfolio invested in bonds rated AAA and AA, with
an 8% allocation of BBB and non-rated bonds, which generally provide enhanced
levels of yield. In the area of bond calls, the Fund currently offers good
levels of call protection, with only 8% of its portfolio subject to calls prior
to 2002. This should provide some protection for the Fund's dividend over this
period.
WHAT IS NUVEEN'S OUTLOOK FOR NPV?
In the coming months, our focus will remain on supporting the income stream
of this fund at the highest level consistent with capital preservation. As part
of our strategies for achieving this goal, we will continue searching for
attractive bonds that have the best potential to benefit the shareholders of
NPV. Currently, the Fund has a 6% exposure to transportation, versus 15% in the
Lehman index, and we plan to move our allocation closer to that of the index. We
will also focus our efforts on improving call protection by taking advantage of
opportunities to sell bonds that may be callable within the next five years and
replace them with issues that offer longer protection, including noncallable
bonds. These strategies demonstrate the value that can be added by an active
bond manager such as Nuveen. As an experienced investment manager knowledgeable
about the unique aspects of the Virginia municipal market, we are in the
marketplace every day, monitoring market dynamics, looking for opportunities,
and capitalizing on them to the benefit of shareholders.
1 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 35%. It represents the return on
a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
2 NPV is compared with the Lehman Brothers Municipal Bond Index, an unleveraged
index comprising a broad range of investment-grade municipal bonds. The return
for the Lehman index does not reflect any initial or ongoing expenses.
3 The Lipper Peer Group return represents the average annual-ized total return
of the 18 funds in the Lipper Other States Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charges.
4 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
rate is based on a combined federal and state income tax rate of 35%.
<PAGE>
Nuveen Virginia Premium Income Municipal Fund
Performance Overview
As of May 31, 1999
NPV
PORTFOLIO STATISTICS
Inception Date 3/93
- --------------------------------------------------
Share Price $16 1/16
- --------------------------------------------------
Net Asset Value $14.89
- --------------------------------------------------
Market Yield 5.23%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 7.58%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 8.05%
- --------------------------------------------------
Fund Net Assets ($000) $192,168
- --------------------------------------------------
Effective Maturity (Years) 18.98
- --------------------------------------------------
Leverage-Adjusted Duration 8.98
- --------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 4.77% 5.09%
- --------------------------------------------------
5-Year 10.17% 9.25%
- --------------------------------------------------
Since Inception 6.75% 6.75%
- --------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN(2)
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 7.59% 8.13%
- --------------------------------------------------
5-Year 13.38% 12.50%
- --------------------------------------------------
Since Inception 9.80% 9.87%
- --------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 19%
- --------------------------------------------------
Healthcare 14%
- --------------------------------------------------
Water and Sewer 14%
- --------------------------------------------------
Utilities 10%
- --------------------------------------------------
Housing/Single Family 9%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
FEDERAL ONLY rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for FEDERAL AND STATE highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 35%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 35%. It represents the return on
a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
6/98 0.0685
7/98 0.0685
8/98 0.0685
9/98 0.0685
10/98 0.0685
11/98 0.0685
12/98 0.0685
1/99 0.0685
2/99 0.0685
3/99 0.0685
4/99 0.0685
5/99 0.07
Share Price Performance
6/5/98 16.063
16
16.25
15.875
16
16.188
15.75
15.688
16.125
16.313
16
16.688
16.625
16.375
16.188
16.125
16.625
17
16.75
16.5
16.44
16.44
16.44
16.38
16.38
16.88
16.75
17.13
16.94
16.44
16
15.63
15.88
16
16
16.06
16.06
16.25
16.25
16.19
16.5
16.5625
16.44
16.31
16.25
16.13
15.94
15.88
5/31/99 16.06
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Shareholder Meeting Report
THE SHAREHOLDER MEETING WAS HELD NOVEMBER 18, 1998 IN CHICAGO AT NUVEEN'S
HEADQUARTERS.
<TABLE>
<CAPTION>
NPG NMY
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Common Shares Shares
Shares Series-TH Shares Series-W Series-TH
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Robert P. Bremner
For 3,507,675 1,072 9,689,556 1,384 1,728
Withhold 31,702 -- 65,668 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 3,539,377 1,072 9,755,224 1,384 1,729
====================================================================================================================================
Lawrence H. Brown
For 3,507,675 1,072 9,689,356 1,384 1,728
Withhold 31,702 -- 65,868 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 3,539,377 1,072 9,755,224 1,384 1,729
====================================================================================================================================
Anthony T. Dean*
For 3,508,675 1,072 9,690,878 1,384 1,728
Withhold 30,702 -- 64,346 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 3,539,377 1,072 9,755,224 1,384 1,729
====================================================================================================================================
Anne E. Impellizzeri
For 3,512,675 1,072 9,686,930 1,384 1,728
Withhold 26,702 -- 68,294 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 3,539,377 1,072 9,755,224 1,384 1,729
====================================================================================================================================
Peter R. Sawers
For 3,507,675 1,072 9,689,056 1,384 1,728
Withhold 31,702 -- 66,168 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 3,539,377 1,072 9,755,224 1,384 1,729
====================================================================================================================================
William J. Schneider
For -- 1,072 -- 1,384 1,728
Withhold -- -- -- -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,072 -- 1,384 1,729
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,072 -- 1,384 1,728
Withhold -- -- -- -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,072 -- 1,384 1,729
====================================================================================================================================
Judith M. Stockdale
For 3,507,675 1,072 9,690,462 1,384 1,728
Withhold 31,702 -- 64,762 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total 3,539,377 1,072 9,755,224 1,384 1,729
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 3,521,129 943 9,696,617 1,384 1,729
Against 2,600 129 16,094 -- --
Abstain 15,648 -- 42,513 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 3,539,377 1,072 9,755,224 1,384 1,729
====================================================================================================================================
* Mr. Dean retired from the Board, effective May 1, 1999.
<PAGE>
<CAPTION>
Shareholder Meeting Report
NNC NPV
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE TRUSTEES WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Common Shares Shares
Shares Series-TH Shares Series-T Series-TH
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
Robert P. Bremner
For 5,823,983 1,707 7,759,425 816 1,526
Withhold 24,552 118 44,877 -- 9
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,848,535 1,825 7,804,302 816 1,535
====================================================================================================================================
Lawrence H. Brown
For 5,823,983 1,707 7,759,425 816 1,526
Withhold 24,552 118 44,877 -- 9
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,848,535 1,825 7,804,302 816 1,535
====================================================================================================================================
Anthony T. Dean*
For 5,823,983 1,707 7,759,425 816 1,526
Withhold 24,552 118 44,877 -- 9
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,848,535 1,825 7,804,302 816 1,535
====================================================================================================================================
Anne E. Impellizzeri
For 5,823,573 1,707 7,759,355 816 1,526
Withhold 24,962 118 44,947 -- 9
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,848,535 1,825 7,804,302 816 1,535
====================================================================================================================================
Peter R. Sawers
For 5,823,983 1,707 7,758,887 816 1,526
Withhold 24,552 118 45,415 -- 9
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,848,535 1,825 7,804,302 816 1,535
====================================================================================================================================
William J. Schneider
For -- 1,707 -- 816 1,526
Withhold -- 118 -- -- 9
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,825 -- 816 1,535
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,707 -- 816 1,526
Withhold -- 118 -- -- 9
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,825 -- 816 1,535
====================================================================================================================================
Judith M. Stockdale
For 5,824,878 1,707 7,758,825 816 1,526
Withhold 23,657 118 45,477 -- 9
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,848,535 1,825 7,804,302 816 1,535
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 5,810,822 1,825 7,746,669 816 1,526
Against 3,655 -- 7,461 -- 7
Abstain 34,058 -- 50,172 -- 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,848,535 1,825 7,804,302 816 1,535
====================================================================================================================================
</TABLE>
* Mr. Dean retired from the Board, effective May 1, 1999.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
THE BOARD 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, 1999, 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, 1999, by correspondence with the custodian. 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, 1999, 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.
/s/ Ernst & Young LLP
Chicago, Illinois
July 16, 1999
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND (NPG)
MAY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONSUMER STAPLES - 6.2%
$ 3,000,000 Albany-Dougherty Payroll Development Authority (Georgia), Solid 5/08 at 101 AA $2,963,880
Waste Disposal Revenue Bonds (The Procter & Gamble Paper Products
Company Project), 1998 Series, 5.300%, 5/15/26
(Alternative Minimum Tax)
2,000,000 Development Authority of Cartersville (Georgia), Sewage Facilities 5/07 at 101 A+ 2,138,620
Refunding Revenue Bonds (Anheuser-Busch Project), Series 1997,
6.125%, 5/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.4%
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 1,275,255
1,375,000 5.750%, 12/01/25 12/05 at 102 AAA 1,452,289
1,555,000 Development Authority of DeKalb County, Revenue Bonds (Emory 10/04 at 102 Aa1 1,685,589
University Project), Series 1994-A, 6.000%, 10/01/14
1,550,000 Private Colleges and Universities Authority, Georgia, Revenue Bonds 6/03 at 102 AA 1,604,204
(Agnes Scott College Project), Series 1993, 5.625%, 6/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.1%
3,000,000 Hospital Authority of Albany-Dougherty County, Georgia, Revenue 9/03 at 102 AAA 3,155,580
Bonds (Phoebe Putney Memorial Hospital), Series 1993, 5.700%, 9/01/13
1,965,000 The Hospital Authority of Hall County and the City of Gainsville, 10/05 at 102 AAA 2,089,954
Revenue Anticipation Certificates (Northeast Georgia Healthcare
Project), Series 1995, 6.000%, 10/01/25
3,000,000 The Glynn-Brunswick Memorial Hospital Authority, Revenue 8/06 at 102 AAA 3,053,340
Anticipation Certificates (Southeast Georgia Health Systems Project),
Series 1996, 5.250%, 8/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.9%
1,145,000 Housing Authority of Clayton County, Georgia, Multifamily 12/05 at 102 AAA 1,180,632
Housing Revenue Bonds (The Advantages Project), Series 1995,
5.800%, 12/01/20
3,400,000 Housing Authority of the County of DeKalb, Georgia, Multifamily 1/05 at 102 AAA 3,703,144
Housing Revenue Bonds (The Lakes at Indian Creek Apartments
Project), Series 1994, 7.150%, 1/01/25 (Alternative Minimum Tax)
980,000 Housing Authority of the City of Decatur, Mortgage Revenue Refunding 7/02 at 102 AAA 1,028,363
Bonds (FHA-Insured Mortgage Loan - Park Trace Apartments,
Section 8 Assisted Project), Series 1992A, 6.450%, 7/01/25
3,000,000 Macon-Bibb County Urban Development Authority, Multifamily 1/04 at 103 AAA 3,052,740
Housing Refunding Revenue Bonds, Series 1997A, 5.550%, 1/01/24
1,500,000 Housing Authority of the City of Marietta, Georgia, Multifamily 10/06 at 102 AAA 1,586,475
Housing Revenue Bonds (GNMA Collateralized - Country Oaks
Apartments), Series 1996, 6.150%, 10/20/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.7%
475,000 Housing Authority of Fulton County, Georgia, Single Family 3/05 at 102 AAA 506,716
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), 1995 Series A, 6.550%, 3/01/18 (Alternative Minimum Tax)
2,995,000 Georgia Housing and Finance Authority, Single Family Mortgage 6/04 at 102 AAA 3,183,745
Bonds (FHA-Insured or VA Guaranteed Mortgage Loans),
1994 Series A, 6.500%, 12/01/17 (Alternative Minimum Tax)
420,000 Georgia Housing and Finance Authority, Single Family Mortgage 6/06 at 102 AAA 448,043
Bonds, 1996 Series A, Subseries A-2, 6.450%, 12/01/27
(Alternative Minimum Tax)
2,145,000 Georgia Housing and Finance Authority, Single Family Mortgage 6/08 at 101 AAA 2,175,159
Bonds, 1998 Series A, Subseries A-2, 5.550%, 12/01/26
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL - 6.5%
$ 1,175,000 City of Atlanta, Georgia, General Obligation School Improvement 12/03 at 102 AA $1,225,102
Bonds, Series 1993, 5.600%, 12/01/18
500,000 Fulton County School District, General Obligation Refunding Bonds, No Opt. Call AA 579,765
Series 1991, 6.375%, 5/01/17
3,500,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 7/06 at 101 1/2 A 3,543,715
(General Obligation Bonds), 5.400%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.1%
1,000,000 Downtown Development Authority of the City of Atlanta (Georgia), 10/02 at 102 AA 1,083,080
Refunding Revenue Bonds (Underground Atlanta Project),
Series 1992, 6.250%, 10/01/12
3,000,000 Solid Waste Management Authority of the City of Atlanta, 12/06 at 100 AA 2,998,020
Revenue Bonds (Landfill Closure Project), Series 1996,
5.250%, 12/01/21
1,250,000 Cobb-Marietta Coliseum and Exhibit Hall Authority (Georgia), No Opt. Call AAA 1,337,300
Revenue Refunding Bonds, Series 1993, 5.500%, 10/01/12
2,000,000 The Fulton-DeKalb Hospital Authority (Georgia), Revenue Refunding 7/03 at 102 AAA 2,035,580
Certificates, Series 1993, 5.500%, 1/01/20
1,000,000 Metropolitan Atlanta Rapid Transit Authority (Georgia), Sales No Opt. Call AAA 1,145,360
Tax Revenue Bonds, Refunding Series P, 6.250%, 7/01/20
500,000 Puerto Rico Highway and Transportation Authority, Highway 7/03 at 101 1/2 A 497,765
Revenue Bonds, Series W, 5.250%, 7/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3%
1,500,000 City of Atlanta, Airport Facilities Revenue Bonds, Series 1990, 1/01 at 102 AAA 1,571,670
6.250%, 1/01/21 (Alternative Minimum Tax)
1,000,000 City of Atlanta, Airport Facilities Revenue Refunding Bonds, No Opt. Call AAA 1,140,550
Series 1994A, 6.500%, 1/01/09
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.5%
3,115,000 City of Albany, Georgia, Sewerage System Revenue Bonds, 7/02 at 102 AAA 3,421,360
Series 1992, 6.625%, 7/01/17 (Pre-refunded to 7/01/02)
500,000 City of Atlanta, Georgia, General Obligation Bonds, Public Improvement 12/04 at 102 AA*** 556,460
Bonds, Series 1994A, 6.100%, 12/01/19 (Pre-refunded to 12/01/04)
3,450,000 City of Atlanta, Georgia, Water and Sewerage Revenue Bonds, 1/04 at 100 A+*** 3,626,226
Series 1993, 5.000%, 1/01/15 (Pre-refunded to 1/01/04)
1,000,000 Columbus, Georgia, Medical Center Hospital Authority, No Opt. Call AAA 1,199,100
Revenue Anticipation Certificates, 7.750%, 7/01/10
2,000,000 Fulco Hospital Authority, Revenue Anticipation Certificates 9/02 at 102 Baa1*** 2,183,600
(Georgia Baptist Health Care System Project), Series 1992A,
6.375%, 9/01/22 (Pre-refunded to 9/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.6%
4,500,000 Development Authority of Burke County (Georgia), Pollution Control 5/04 at 102 A 4,373,280
Revenue Bonds (Georgia Power Company - Vogtle Plant Project),
Third Series 1999, 5.450%, 5/01/34 (Alternative Minimum Tax)
1,900,000 Municipal Electric Authority of Georgia, General Power Revenue 1/03 at 100 AAA 1,937,354
Bonds, Series 1992B, 5.500%, 1/01/18
1,750,000 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A 1,966,703
Obligation Bonds, Fifth Crossover Series, 6.400%, 1/01/09
2,000,000 Development Authority of Monroe County (Georgia), Pollution Control 9/99 at 102 AA- 2,049,820
Revenue Bonds (Gulf Power Company Plant - Scherer Project),
First Series 1994, 6.300%, 9/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.5%
2,500,000 City of Albany (Georgia), Sewerage System Revenue Bonds, 7/07 at 102 AAA 2,604,525
Series 1997, 5.600%, 7/01/19
2,000,000 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, 5/09 at 101 AAA 1,886,960
Series 1999A, 5.000%, 11/01/38
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER AND SEWER (continued)
$ 2,000,000 Douglasville-Douglas County (Georgia), Water and Sewer Authority, No Opt. Call AAA $2,144,360
Water and Sewerage Revenue Bonds, Series 1993, 5.625%, 6/01/15
1,000,000 City of Milledgeville (Georgia), Water and Sewerage Revenue and No Opt. Call AAA 1,120,380
Refunding Bonds, Series 1996, 6.000%, 12/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
$ 78,855,000 Total Investments - (cost $77,081,507) - 100.8% 82,511,763
=============
Other Assets Less Liabilities - (0.8)% (690,098)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $81,821,665
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which
ensures the timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND (NMY)
MAY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 6.0%
Maryland Health and Higher Educational Facilities Authority,
Refunding Revenue Bonds, Johns Hopkins University Issue,
Series 1997:
$ 1,000,000 5.625%, 7/01/17 7/07 at 102 Aa2 $1,058,360
2,000,000 5.625%, 7/01/27 7/07 at 102 Aa2 2,082,720
9,445,000 Morgan State University, Maryland, Academic Fees and Auxiliary No Opt. Call AAA 10,675,967
Facilities Fees, Revenue Refunding Bonds, 1993 Series,
6.100%, 7/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.4%
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 2,983,679
6,265,000 5.500%, 9/01/15 9/05 at 102 AAA 6,446,560
1,930,000 Maryland Economic Development Corporation (Health and 4/11 at 102 N/R 1,953,411
Mental Hygiene Providers Facilities Acquisition Program),
Revenue Bonds, Series 1996A, 7.625%, 4/01/21
2,000,000 Maryland Health and Higher Educational Facilities Authority, Kaiser 6/09 at 101 A 2,018,500
Permanente Revenue Bonds, 1998 Series A, 5.375%, 7/01/15
1,855,000 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 AAA 1,852,125
Refunding Revenue Bonds, Francis Scott Key Medical Center Issue,
Series 1993, 5.000%, 7/01/13
2,250,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101 AAA 2,197,530
Revenue Bonds, Johns Hopkins Medicine, Howard County General
Hospital Acquisition Issue, Series 1998, 5.000%, 7/01/29
2,350,000 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 AAA 2,455,445
Project and Refunding Revenue Bonds, Sinai Hospital of Baltimore
Issue, Series 1993, 5.500%, 7/01/13
6,500,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101 AAA 6,393,465
Revenue Bonds, Anne Arundel Medical Center Issue, Series 1998,
5.125%, 7/01/28
6,000,000 Maryland Health and Higher Educational Facilities Authority, 1/08 at 101 Aaa 5,851,980
Revenue Bonds, Upper Chesapeake Hospitals Issue, Series 1998A,
5.125%, 1/01/38
1,670,000 Maryland Health and Higher Educational Facilities Authority, Hospital 7/08 at 101 A3 1,573,791
Refunding and Revenue Bonds, Union Hospital of Cecil County Issue,
Series 1998, 5.100%, 7/01/22
Prince George's County, Maryland, Project and Refunding Revenue
Bonds (Dimensions Health Corporation Issue), Series 1994:
3,080,000 5.375%, 7/01/14 7/04 at 102 Baa1 2,912,356
6,000,000 5.300%, 7/01/24 7/04 at 102 Baa1 5,505,660
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 16.2%
4,000,000 Anne Arundel County (Maryland), Multifamily Housing Revenue No Opt. Call BBB 4,345,880
Bonds (Woodside Apartments Project), Series 1994,
7.450%, 12/01/24 (Alternative Minimum Tax)
(Mandatory put 12/01/03)
1,795,000 County Commissioners of Charles County, Maryland Mortgage 5/05 at 102 AAA 1,932,641
Revenue Refunding Bonds, Series 1995A (Holly Station IV
Townhouses Project - FHA-Insured Mortgage Loan),
6.450%, 5/01/26
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 738,052
2,000,000 6.100%, 7/01/25 7/06 at 102 AAA 2,108,240
1,000,000 Community Development Administration, Department of 5/02 at 102 Aa2 1,062,220
Housing and Community Development (Maryland), Multifamily
Housing Revenue Bonds (Insured Mortgage Loans), 1992 Series A,
6.850%, 5/15/33 (Alternative Minimum Tax)
1,150,000 Community Development Administration, Department of Housing 5/03 at 102 Aa2 1,224,198
and Community Development (Maryland), Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), 1993 Series B,
6.625%, 5/15/23
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/MULTIFAMILY (continued)
$ 2,500,000 Community Development Administration, Department of Housing 1/09 at 101 Aa2 $2,466,900
and Community Development (Maryland), Housing Revenue Bonds,
1999 Series A, 5.350%, 7/01/41 (Alternative Minimum Tax)
3,075,000 Community Development Administration, Department of Housing 5/03 at 102 Aa 3,212,299
and Community Development (Maryland), Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), 1993 Series D,
6.050%, 5/15/24
2,000,000 Housing Opportunities Commission of Montgomery County 7/05 at 102 Aaa 2,102,180
(Maryland), Multifamily Housing Revenue Bonds, 1995 Series A,
5.900%, 7/01/15
1,500,000 Housing Opportunities Commission of Montgomery County 7/06 at 102 Aaa 1,568,580
(Maryland), Multifamily Housing Revenue Bonds, 1996 Series B,
5.900%, 7/01/26
3,830,000 Housing Opportunities Commission of Montgomery County 7/08 at 101 Aaa 3,777,491
(Maryland), Multifamily Housing Revenue Bonds, 1998 Series A,
5.200%, 7/01/30
1,000,000 Housing Authority of Prince George's County (Maryland), Mortgage 1/03 at 102 AAA 1,050,560
Revenue Refunding Bonds, Series 1993A (GNMA Collateralized -
Stevenson Apartments Project), 6.350%, 7/20/20
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 1,141,840
1,930,000 6.000%, 9/20/15 9/03 at 102 AAA 2,005,695
1,500,000 Housing Authority of Prince George's County (Maryland), Mortgage 12/04 at 102 AAA 1,620,855
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 2,066,920
1,670,000 5.750%, 12/20/19 12/05 at 102 AAA 1,725,761
1,000,000 Housing Authority of Prince George's County (Maryland), Mortgage 11/99 at 101 AAA 1,003,270
Revenue Refunding Bonds, Series 1998A (GNMA Collateralized -
Foxglenn Apartments Project), 5.450%, 11/20/14
(Alternative Minimum Tax)
835,000 The Mayor and Council of Rockville (Maryland), Mortgage Revenue 1/04 at 102 AAA 859,307
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 Refunding Bonds, 12/04 at 102 AAA 1,071,920
Series 1995A (FHA-Insured Mortgage Loan - College Lane
Apartments Project), 6.600%, 12/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.2%
1,465,000 Community Development Administration, Department of Housing 4/04 at 102 Aa2 1,537,898
and Community Development (Maryland), Single Family Program
Bonds, 1994 First Series, 5.900%, 4/01/11
1,000,000 Community Development Administration, Department of Housing 4/04 at 102 Aa 1,063,980
and Community Development (Maryland), Single Family Program
Bonds, 1994 Fourth Series, 6.450%, 4/01/14
2,650,000 Community Development Administration, Department of Housing 4/04 at 102 Aa 2,829,644
and Community Development (Maryland), Single Family Program
Bonds, 1994 Fifth Series, 6.750%, 4/01/26
(Alternative Minimum Tax)
850,000 Community Development Administration, Department of Housing 4/03 at 102 Aa2 903,040
and Community Development (Maryland), Single Family Program
Bonds, 1992 Fourth Series, 6.800%, 4/01/22
(Alternative Minimum Tax)
1,750,000 Community Development Administration, Department of Housing 4/04 at 102 Aa 1,810,200
and Community Development (Maryland), Single Family Program
Bonds, 1993 Third Series, 4.950%, 4/01/06
1,000,000 Community Development Administration, Department of Housing 4/06 at 102 Aa2 1,058,450
and Community Development (Maryland), Single Family Program
Bonds, 1996 Sixth Series, 6.200%, 4/01/22
(Alternative Minimum Tax)
2,000,000 Housing Opportunities Commission of Montgomery County 7/04 at 102 Aa2 2,136,900
(Maryland), Single Family Mortgage Revenue Bonds,
1994 Series A, 6.600%, 7/01/14
1,060,000 Housing Authority of Prince George's County (Maryland), 6/04 at 102 AAA 1,123,176
GNMA/FNMA Collateralized Single Family Mortgage Revenue
Bonds, Series 1994A, 6.350%, 6/01/11 (Alternative Minimum Tax)
1,710,000 Housing Authority of Prince George's County (Maryland), 8/07 at 102 AAA 1,765,353
FHLMC/FNMA/GNMA Collateralized, Single Family Mortgage
Revenue Bonds, Series 1997, 5.625%, 8/01/17
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TAX OBLIGATION/GENERAL - 5.5%
$ 2,000,000 Baltimore County, Maryland, General Obligation Bonds, Baltimore 8/03 at 102 AAA $2,016,500
County Metropolitan District Bonds (64th Issue), 4.900%, 8/01/11
1,000,000 Mayor and City Council of Baltimore, Maryland, General Obligation No Opt. Call A1 1,185,820
Serial Bonds, Consolidated Public Improvement Bonds,
1989 Series B, 7.150%, 10/15/08
Mayor and City Council of Baltimore, Maryland, General
Obligation Consolidated Public Improvement Refunding Bonds, 1995
Series A:
1,200,000 7.375%, 10/15/03 No Opt. Call AAA 1,360,728
5,000,000 7.250%, 10/15/04 No Opt. Call AAA 5,746,250
1,000,000 Mayor and City Council of Baltimore, Maryland, General Obligation No Opt. Call AAA 1,136,000
Serial Bonds, Consolidated Public Improvement Bonds,
1991 Series C, 6.375%, 10/15/07
1,000,000 Prince George's County, Maryland, General Obligation Bonds, 3/03 at 102 AAA 1,070,600
Consolidated Public Improvement Bonds, Series 1993,
5.750%, 3/15/09
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.1%
2,730,000 Anne Arundel County, General Obligation Bonds, Consolidated 4/03 at 102 AA+ 2,787,248
Water and Sewer, 1993 Refunding Series, 5.250%, 4/15/12
1,000,000 Mayor and City Council of Baltimore, Maryland, Certificates of 10/07 at 102 AAA 999,340
Participation (Emergency Telecommunications Facilities),
Series 1997A, 5.000%, 10/01/17
1,465,000 Maryland Department of Housing and Community Development, 6/08 at 101 Aaa 1,470,479
Community Development Administration, Infrastructure Financing
Bonds (MBIA Insured), 1998 Series B, 5.200%, 6/01/28
4,415,000 Maryland Stadium Authority, Sports Facilities Lease Revenue Bonds, 12/99 at 102 Aa 4,590,982
Series 1989D, 7.500%, 12/15/10 (Alternative Minimum Tax)
4,955,000 Maryland Stadium Authority, Sports Facilities Lease Revenue Bonds, 3/06 at 101 AAA 5,215,534
Series 1996, 5.750%, 3/01/18
2,200,000 Puerto Rico Public Buildings Authority, Public Education and Health 7/03 at 101 1/2 A 2,325,312
Facilities Refunding Bonds, Series M (Guaranteed by the
Commonwealth of Puerto Rico), 5.750%, 7/01/15
1,780,000 Washington County Sanitary District, Refunding Bonds, 1993 Series F 1/03 at 102 AAA 1,810,830
(Guaranteed by the Full Faith and Credit Pledge of the County
Commissioners of Washington County), 5.375%, 1/01/15
1,250,000 Washington Suburban Sanitary District, Maryland (Montgomery and 1/02 at 102 Aa1 1,334,925
Prince George's Counties), General Construction Refunding Bonds,
1991 Second Series, 6.100%, 1/01/04
1,000,000 Washington Suburban Sanitary District, Maryland (Montgomery 12/03 at 102 Aa1 1,031,090
and Prince George's Counties), Water Supply Refunding Bonds,
1993 Series, 5.250%, 12/01/11
1,500,000 Washington Suburban Sanitary District, Maryland (Montgomery 6/03 at 102 Aa1 1,548,105
and Prince George's Counties), Sewage Disposal Bonds,
1993 Series, 5.375%, 6/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.4%
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 5,990,820
1,075,000 6.400%, 7/01/19 (Alternative Minimum Tax) 7/04 at 102 AAA 1,090,921
1,500,000 Maryland Transportation Authority, Transportation Facilities 7/02 at 100 A+ 1,557,210
Projects Revenue Bonds, Series 1992, 5.750%, 7/01/15
Washington D.C. Metropolitan Area Transit Authority, Gross
Revenue Transit Refunding Bonds, Series 1993:
2,000,000 6.000%, 7/01/07 No Opt. Call AAA 2,207,920
1,500,000 5.250%, 7/01/14 1/04 at 102 AAA 1,519,500
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 6.2%
1,875,000 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 AAA 2,010,131
Revenue Bonds, Good Samaritan Hospital Issue, Series 1993,
5.750%, 7/01/19
3,125,000 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 Aaa 3,228,625
Revenue Bonds, Howard County General Hospital Issue,
Series 1993, 5.500%, 7/01/25
2,500,000 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 2,464,250
Revenue Bonds, Helix Health Issue, Series 1997, 5.000%, 7/01/27
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S.GUARANTEED (continued)
$ 3,000,000 Maryland Transportation Authority, Transportation Facilities Projects 7/01 at 102 A+*** $3,219,540
Revenue Bonds, Series 1991, 6.500%, 7/01/06
(Pre-refunded to 7/01/01)
1,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds, 7/07 at 101 1/2 AAA 1,124,630
Series 1997, 6.000%, 7/01/26 (Pre-refunded to 7/01/07)
1,010,000 Puerto Rico Telephone Authority, Revenue Bonds, Series N, 1/03 at 101 1/2 AAA 1,077,347
5.500%, 1/01/22 (Pre-refunded to 1/01/03)
1,115,000 Washington Suburban Sanitary District, Maryland (Montgomery 6/02 at 102 Aa1*** 1,208,147
and Prince George's Counties), Water Supply Bonds, Series 1992,
6.200%, 6/01/09 (Pre-refunded to 6/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 20.1%
6,000,000 Anne Arundel County, Maryland, Pollution Control Revenue 4/04 at 102 A 6,396,000
Refunding Bonds (Baltimore Gas and Electric Company Project),
Series 1994, 6.000%, 4/01/24
7,000,000 Calvert County, Maryland, Pollution Control Revenue Refunding 7/04 at 102 A 7,209,020
Bonds (Baltimore Gas and Electric Company Project),
Series 1993, 5.550%, 7/15/14
9,600,000 Montgomery County, Maryland, Solid Waste System Revenue 6/03 at 102 AAA 10,161,696
Bonds, 1993 Series A, 5.875%, 6/01/13 (Alternative Minimum Tax)
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 1,659,060
3,000,000 7.150%, 1/01/04 No Opt. Call AAA 3,363,810
4,675,000 7.200%, 1/01/05 1/04 at 102 AAA 5,303,367
5,000,000 Prince George's County, Maryland, Pollution Control Revenue 1/03 at 102 A1 5,405,200
Refunding Bonds (Potomac Electric Project), Series 1993,
6.375%, 1/15/23
5,750,000 Prince George's County, Maryland, Solid Waste Management 6/03 at 102 AAA 5,858,614
System Revenue Bonds, Series 1993, 5.250%, 6/15/13
1,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/04 at 100 BBB+ 1,017,460
Series T, 5.500%, 7/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.3%
3,000,000 Mayor and City Council of Baltimore, Maryland, Project No Opt. Call AAA 2,963,940
and Refunding Revenue Bonds (Water Projects), Series 1994 A,
5.000%, 7/01/24
6,000,000 Mayor and City Council of Baltimore, Maryland, Project and 7/08 at 101 AAA 5,851,500
Refunding Revenue Bonds (Water Projects), Series 1998 A,
5.000%, 7/01/28
1,000,000 Mayor and City Council of Baltimore, Maryland, Project and 7/06 at 101 AAA 1,033,540
Refunding Revenue Bonds (Water Projects), Series 1996 A,
5.500%, 7/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
$ 216,300,000 Total Investments - (cost $215,103,022) - 98.4% 225,826,990
=============
Other Assets Less Liabilities - 1.6% 3,692,569
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $229,519,559
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which
ensures the timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND (NNC)
MAY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION AND CIVIC ORGANIZATIONS - 9.5%
$ 3,300,000 Appalachian State University, Utilities System Revenue Refunding 5/08 at 102 AAA $3,250,269
Bonds (The Board of Governors of the University of North Carolina),
Series 1998, 5.000%, 5/15/18
State of North Carolina, State Education Assistance Authority,
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 1,042,430
2,400,000 6.300%, 7/01/15 (Alternative Minimum Tax) 7/05 at 102 A 2,515,104
5,875,000 State of North Carolina, State Education Assistance Authority, 7/06 at 102 A 6,183,085
Guaranteed Student Loan Revenue Bonds, 1996 Series C
(Subordinate Lien), 6.350%, 7/01/16 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
FOREST AND PAPER PRODUCTS - 4.1%
3,500,000 Haywood County Industrial Facilities and Pollution Control Financing 12/05 at 102 Baa1 3,505,810
Authority (North Carolina), Environmental Improvement Revenue
Bonds (Champion International Corporation Project),
Series 1995A, 5.750%, 12/01/25 (Alternative Minimum Tax)
2,000,000 Haywood County Industrial Facilities and Pollution Control Financing 3/06 at 102 Baa1 2,069,480
Authority (North Carolina), Pollution Control Refunding Revenue
Bonds (Champion International Corporation Project),
Series 1995, 6.000%, 3/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.3%
The Charlotte-Mecklenburg Hospital Authority (North Carolina),
Health Care System Revenue Bonds, Series 1992:
1,500,000 5.750%, 1/01/12 1/02 at 102 AA 1,583,205
2,150,000 6.250%, 1/01/20 1/02 at 102 AA 2,284,461
3,000,000 Craven Regional Medical Authority (North Carolina), Insured Health 10/03 at 102 AAA 3,073,590
Care Facilities Revenue Bonds, Series 1993, 5.625%, 10/01/17
2,725,000 County of New Hanover (North Carolina), Hospital Revenue Bonds 10/03 at 102 AAA 2,498,553
(New Hanover Regional Medical Center Project), Series 1993,
4.750%, 10/01/23
1,000,000 North Carolina Medical Care Commission, Hospital Revenue 6/02 at 102 AA 1,046,990
Refunding Bonds (North Carolina Baptist Hospitals Project),
Series 1992A, 6.000%, 6/01/22
3,000,000 North Carolina Medical Care Commission, Hospital Revenue 5/02 at 102 AA 3,040,470
Refunding Bonds (Carolina Medicorp Project), Series 1992,
5.500%, 5/01/15
2,275,000 North Carolina Medical Care Commission, Hospital Revenue 10/07 at 102 AAA 2,290,971
Bonds (Wake County Hospital System), Series 1997,
5.375%, 10/01/26
5,615,000 North Carolina Medical Care Commission, Hospital Revenue 10/08 at 101 AA- 5,033,567
Bonds (First Health of the Carolinas Project), Series 1998,
4.750%, 10/01/26
4,090,000 Board of Governors of the University of North Carolina, 2/06 at 102 AA 4,023,292
University of North Carolina Hospitals at Chapel Hill Revenue
Bonds, Series 1996, 5.250%, 2/15/26
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.8%
1,000,000 Housing Authority of the City of Asheville (North Carolina), 11/07 at 102 AAA 1,034,100
Multifamily Housing Revenue Bonds (GNMA Collateralized -
Woodridge Apartments), Series 1997, 5.800%, 11/20/39
(Alternative Minimum Tax)
1,000,000 City of Charlotte (North Carolina), Mortgage Revenue Refunding 1/03 at 105 AAA 1,042,720
Bonds (FHA-Insured Mortgage Loan - Tryon Hills Apartments
Project), Series 1993A, 5.875%, 1/01/25
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 670,586
1,000,000 5.900%, 7/01/26 1/03 at 102 AA 1,031,090
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY - 11.5%
$ 5,635,000 North Carolina Housing Finance Agency, Single Family Revenue 3/04 at 102 AA $5,993,837
Bonds, Series X (1985 Resolution), 6.700%, 9/01/26
(Alternative Minimum Tax)
3,025,000 North Carolina Housing Finance Agency, Single Family Revenue 9/02 at 102 AA 3,192,131
Bonds, Series V (1985 Resolution), 6.800%, 9/01/25
(Alternative Minimum Tax)
520,000 North Carolina Housing Finance Agency, Single Family Revenue 3/00 at 102 AA 537,300
Bonds, Series M (1985 Resolution), 7.850%, 9/01/28
(Alternative Minimum Tax)
4,220,000 North Carolina Housing Finance Agency, Single Family Revenue 3/06 at 102 AA 4,463,747
Bonds, Series HH (1985 Resolution), 6.300%, 3/01/26
(Alternative Minimum Tax)
1,500,000 North Carolina Housing Finance Agency, Home Ownership Revenue 1/09 at 101 AA 1,484,865
Bonds, Series 3-A (1998 Trust Agreement),
5.200%, 7/01/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.2%
2,000,000 Orange County, General Obligation School Bonds, Series 1994, 2/04 at 102 AA+ 2,128,940
5.500%, 2/01/11
6,250,000 Commonwealth of Puerto Rico, Public Improvement Bonds, 7/06 at 101 1/2 A 6,328,063
Series 1996 (General Obligation Bonds), 5.400%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.7%
2,500,000 Centennial Authority, North Carolina, Hotel Tax Revenue Bonds 9/07 at 102 AAA 2,484,225
(Arena Project), Series 1997, 5.125%, 9/01/19
6,000,000 City of Charlotte, North Carolina, Refunding Certificates of 12/03 at 102 AAA 6,008,160
Participation (Convention Facility Project), Series 1993C,
5.250%, 12/01/20
2,180,000 City of Concord, North Carolina, Certificates of Participation, 6/06 at 102 AAA 2,361,747
Series 1996A, 6.125%, 6/01/21
2,390,000 County of Duplin, North Carolina, Certificates of Participation 8/03 at 102 AAA 2,435,840
(Law Enforcement Project and Public Schools Project),
Series 1993, 5.250%, 8/01/14
3,970,000 Durham, North Carolina, Certificates of Participation, Water Utility 7/02 at 102 AA 4,331,389
Improvements, 6.375%, 7/15/12
5,000,000 Puerto Rico Highway and Transportation Authority, Highway 7/06 at 101 1/2 A 5,109,150
Revenue Bonds, Series 1996Y, 5.500%, 7/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.3%
The Charlotte-Mecklenburg Hospital Authority (North Carolina),
Health Care System Revenue Bonds, Series 1992:
1,000,000 5.750%, 1/01/12 (Pre-refunded to 1/01/02) 1/02 at 102 AA*** 1,064,130
2,940,000 6.250%, 1/01/20 (Pre-refunded to 1/01/02) 1/02 at 102 AA*** 3,164,469
2,855,000 North Carolina Municipal Power Agency Number 1, Catawba Electric No Opt. Call AAA 3,816,450
Revenue Bonds, Series 1980, 10.500%, 1/01/10
2,400,000 Puerto Rico Commonwealth Highway Authority, Highway Revenue 7/00 at 100 A*** 2,468,448
Bonds, Series 1990-Q, 6.000%, 7/01/20 (Pre-refunded to 7/01/00)
2,280,000 Board of Governors of the University of North Carolina, University of 2/02 at 102 AA*** 2,445,209
North Carolina Hospitals at Chapel Hill Revenue Bonds, Series 1992,
6.000%, 2/15/24 (Pre-refunded to 2/15/02)
1,035,000 County of Wake (North Carolina), Hospital System Revenue Bonds, 10/03 at 102 AAA 1,042,825
Series 1993, 5.125%, 10/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.2%
5,250,000 City of Fayetteville (North Carolina), Public Works Commission 3/03 at 100 AAA 5,127,150
Revenue Refunding Bonds, Series 1993, 4.750%, 3/01/14
5,000,000 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 102 BBB 4,943,850
Revenue Bonds, Series 1993-D, 5.600%, 1/01/16
1,500,000 North Carolina Eastern Municipal Power Agency, Power System 9/03 at 102 1/2 BBB 1,503,585
Revenue Bonds, Series 1985-G, 5.750%, 12/01/16
1,000,000 North Carolina Municipal Power Agency Number 1, Catawba 1/03 at 100 A- 1,013,350
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>
WATER AND SEWER - 9.8%
$ 1,000,000 City of Asheville, North Carolina, Water System Revenue Bonds, 8/06 at 102 AAA $1,051,460
Series 1996, 5.700%, 8/01/25
4,250,000 Metropolitan Sewer District of Buncombe County, North Carolina, 7/03 at 102 AAA 4,341,205
Sewer System Revenue Refunding Bonds, Series 1993A,
5.500%, 7/01/22
1,000,000 City of Greensboro, North Carolina, Combined Enterprise System 6/05 at 102 AA- 1,016,900
Revenue Bonds, Series 1995A, 5.375%, 6/01/19
1,280,000 City of Lincolnton, North Carolina, Combined Enterprise System 11/06 at 102 AAA 1,309,389
Revenue Bonds, Series 1996, 5.375%, 5/01/16
3,400,000 Orange Water and Sewer Authority, North Carolina, Water and 7/03 at 102 AA 3,421,860
Sewer System Revenue and Revenue Refunding Bonds,
Series 1993, 5.200%, 7/01/16
2,180,000 County of Union, North Carolina, Enterprise Systems Revenue 6/06 at 102 AAA 2,249,498
Bonds, Series 1996, 5.500%, 6/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
$ 130,640,000 Total Investments - (cost $128,125,703) - 98.4% 134,058,945
=============
Other Assets Less Liabilities - 1.6% 2,117,681
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $136,176,626
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independentauditors): 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.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which
ensures the timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND (NPV)
MAY 31, 1999
<TABLE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BASIC MATERIALS - 1.0%
$ 2,000,000 Virginia Small Business Financing Authority, Industrial Development 1/03 at 102 N/R $1,969,720
Revenue Bonds (Albion Enterprises, L.L.C. Project), Series 1998A,
6.400%, 1/01/14 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2%
Industrial Development Authority of the City of Lynchburg, Virginia,
Educational Facilities Revenue Bonds (Randolph-Macon Women's
College), Series 1993:
2,940,000 5.875%, 9/01/13 9/03 at 102 A- 3,074,123
3,000,000 5.875%, 9/01/23 9/03 at 102 A- 3,102,690
2,500,000 The Rector and Visitors of the University of Virginia, General 6/08 at 101 AA+ 2,420,625
Revenue Pledge Bonds, Series 1998A, 5.000%, 6/01/24
3,000,000 Virginia College Building Authority, Educational Facilities Revenue 11/04 at 100 AA 3,182,610
Bonds (University of Richmond Project), Series of 1994,
5.550%, 11/01/19 (Optional put 11/01/04)
2,000,000 Virginia College Building Authority, Educational Facilities Revenue No Opt. Call AAA 2,016,880
Bonds (The Washington and Lee University Project), Series 1998,
5.250%, 1/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
FOREST AND PAPER PRODUCTS - 0.8%
1,500,000 Industrial Development Authority of Goochland County, Virginia, 12/08 at 101 Baa2 1,505,535
Industrial Development Refunding Revenue Bonds (Nekoosa
Packaging Corporation Project), Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.1%
4,850,000 Industrial Development Authority of Fairfax County, Virginia, Hospital No Opt. Call AA 4,726,665
Revenue Refunding Bonds (Inova Health System Hospitals Project),
Series 1993A, 5.000%, 8/15/23
1,440,000 Industrial Development Authority of Fairfax County, Virginia, 8/06 at 102 AA 1,542,413
Health Care Revenue Bonds (Inova Health System Project),
Series 1996A, 6.000%, 8/15/26
1,000,000 Industrial Development Authority of Fairfax County, Virginia, 2/08 at 101 AA 943,500
Health Care Revenue Refunding Bonds (Inova Health System
Project), Series 1998A, 5.000%, 8/15/25
4,650,000 Bon Secours Health System Obligated Group, Industrial 8/05 at 102 AAA 4,740,350
Development Authority of Hanover County, Virginia, Hospital
Revenue Bonds, Series 1995 (Bon Secours Health System
Projects), 5.500%, 8/15/25
1,500,000 Industrial Development Authority of Henrico County, Virginia, No Opt. Call AAA 1,706,040
Health Care Revenue Bonds (Bon Secours Health System),
Series 1996, 6.250%, 8/15/20
5,500,000 Medical College of Virginia Hospitals Authority, General Revenue 7/08 at 102 AAA 5,351,390
Bonds, Series 1998, 5.125%, 7/01/23
2,500,000 Industrial Development Authority of the City of Norfolk, Virginia, 11/04 at 102 AA 2,779,400
Hospital Revenue and Refunding Bonds (Sentara Hospitals-Norfolk),
Series 1994A, 6.500%, 11/01/13
5,000,000 City of Virginia Beach Development Authority, Virginia, Hospital 11/01 at 102 AA 5,382,300
Revenue Bonds (Sentara Bayside Hospital), Series 1991,
6.300%, 11/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.3%
990,000 Industrial Development Authority of Arlington County, Virginia, 7/05 at 102 A 1,042,331
Multifamily Housing Mortgage Revenue Bonds (Arlington
Housing Corporation), 1995 Series, 5.700%, 7/01/07
4,445,000 Hampton Redevelopment and Housing Authority, Multifamily 7/02 at 104 Baa2 4,835,849
Housing Revenue Refunding Bonds, Series 1994 (Chase Hampton II
Apartments), 7.000%, 7/01/24 (Mandatory put 7/01/04)
2,355,000 Suffolk Redevelopment and Housing Authority, Mortgage Revenue 1/01 at 100 AAA 2,401,252
Refunding Bonds, Series 1993 (FHA- Insured Mortgage Loan -
Wilson Pines Apartments, Section 8 Assisted Project),
6.125%, 1/01/23
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING/SINGLE FAMILY - 9.3%
$ 95,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ $ 99,336
Mortgage Bonds, 1992 Series B, Subseries B-3, 6.750%, 7/01/21
(Alternative Minimum Tax)
5,000,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ 5,214,250
Bonds, 1992 Series B, Subseries B-4, 6.550%, 1/01/27
(Alternative Minimum Tax)
3,240,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ 3,354,340
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 AA+ 4,133,280
2,945,000 6.250%, 1/01/27 (Alternative Minimum Tax) 1/02 at 102 AA+
2,000,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/08 at 102 AA+ 1,993,380
Bonds, 1996 Series G, Subseries G-1, 5.300%, 1/01/22
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
Industrial Development Authority of the City of Winchester,
Residential Care Facility First Mortgage Revenue Bonds
(Westminster-Canterbury of Winchester Inc.), Series 1998:
1,350,000 5.750%, 1/01/18 1/03 at 102 N/R 1,340,779
2,000,000 5.750%, 1/01/27 1/03 at 102 N/R 1,961,920
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.3%
2,500,000 City of Portsmouth, Virginia, General Obligation Bonds, Public 8/03 at 102 AA- 2,554,200
Utility Refunding Bonds, Series 1993, 5.500%, 8/01/19
5,700,000 Commonwealth of Puerto Rico, Public Improvement Bonds, 7/06 at 101 1/2 A 5,771,193
Series 1996 (General Obligation Bonds), 5.400%, 7/01/25
1,700,000 City of Richmond, Virginia, General Obligation Public Improvement 7/03 at 102 AA 1,736,652
Bonds, Series 1993B, 5.500%, 7/15/23
2,000,000 City of Winchester, Virginia, General Obligation Public Improvement 1/04 at 102 AA 2,082,620
and Refunding Bonds, Series 1994, 5.500%, 1/15/14
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 6.0%
County of Cumberland, Virginia, Certificates of Participation,
Series 1997:
1,075,000 6.200%, 7/15/12 No Opt. Call N/R 1,111,550
1,350,000 6.375%, 7/15/17 No Opt. Call N/R 1,431,554
500,000 Industrial Development Authority of Dinwiddie County, Virginia, 2/07 at 102 N/R 516,055
Lease Revenue Bonds (Dinwiddie County School Facilities
Project), Series 1997A, 6.000%, 2/01/18
5,000,000 Hampton Roads, Virginia, Regional Jail Authority, Regional Jail 7/06 at 102 AAA 5,141,950
Facility Revenue Bonds, Series 1996A, 5.500%, 7/01/24
3,000,000 Prince William County Park Authority, Virginia, Revenue Bonds, 10/04 at 102 A- 3,348,240
Series 1994, 6.875%, 10/15/16
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.7%
1,000,000 Capital Region Airport Commission, Richmond, Virginia, 7/05 at 102 AAA 1,038,770
International Airport Projects, Airport Revenue Bonds,
Series 1995A, 5.625%, 7/01/25
1,900,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/02 at 102 AAA 2,070,525
Revenue Bonds, Series 1992A, 6.625%, 10/01/19
(Alternative Minimum Tax)
1,400,000 Metropolitan Washington D.C. Airports Authority, Airport 10/07 at 101 AA- 1,414,280
System Revenue Bonds, Series 1997A, 5.375%, 10/01/23
6,315,000 Virginia Port Authority, Port Facilities Revenue Bonds, Series 1997, 7/07 at 101 AAA 6,488,599
5.600%, 7/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.9%
5,250,000 Chesapeake Bay Bridge and Tunnel District, General Resolution 7/01 at 102 AAA 5,629,943
Revenue Bonds, Refunding Series 1991, 6.375%, 7/01/22
(Pre-refunded to 7/01/01)
4,085,000 Fairfax County, Virginia, Water Authority, Water Refunding 4/02 at 100 AAA 4,293,498
Revenue Bonds, Series 1992, 5.750%, 4/01/29
(Pre-refunded to 4/01/02)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. GUARANTEED (continued)
$ 395,000 Henrico County, Virginia, Water and Sewer System Refunding 5/02 at 100 Aa2*** $ 420,691
Revenue Bonds, Series 1992, 6.250%, 5/01/13
(Pre-refunded to 5/01/02)
3,500,000 Puerto Rico Highway and Transportation Authority, Highway 7/02 at 101 1/2 AAA 3,824,625
Revenue Bonds, Series T, 6.500%, 7/01/22 (Pre-refunded to 7/01/02)
125,000 Richmond Metropolitan Authority, Virginia, Expressway Revenue 7/02 at 100 AAA 131,991
and Refunding Bonds, Series 1992-A, 5.750%, 7/15/22
(Pre-refunded to 7/15/02)
10,300,000 Valley Resource Authority of the City of Roanoke, Virginia, 9/02 at 102 A+*** 11,050,458
Solid Waste System Revenue Bonds, Series 1992,
5.750%, 9/01/12 (Pre-refunded to 9/01/02)
2,750,000 Virginia College Building Authority, Educational Facilities 1/04 at 102 AAA 2,987,573
Revenue Bonds (The Washington and Lee University Project),
Series of 1994, 5.800%, 1/01/24
7,035,000 Commonwealth Transportation Board, Commonwealth of Virginia, 5/04 at 101 AA*** 7,760,520
Transportation Revenue Bonds (Northern Virginia Transportation
District Program), Series 1995A, 6.250%, 5/15/17 (Pre-refunded
to 5/15/04)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.8%
5,060,000 Halifax County Industrial Development Authority (Old Dominion 12/02 at 102 A+ 5,392,442
Electric Cooperative), 6.350%, 12/01/07 (Alternative Minimum Tax)
2,250,000 Industrial Development Authority of the Town of Louisa, Virginia, 1/04 at 102 A 2,261,610
Pollution Control Revenue Bonds (Virginia Electric and Power
Company Project), Series 1994, 5.450%, 1/01/24
5,000,000 City of Richmond, Virginia, Public Utility Revenue and Refunding 1/08 at 101 A+ 4,846,450
Bonds, Series 1998A, 5.125% 1/15/28
6,150,000 Southeastern Public Service Authority of Virginia, Senior 7/03 at 102 A- 6,321,401
Revenue Bonds (Regional Solid Waste System), Series 1993,
6.000%, 7/01/17 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.4%
1,500,000 Albemarle County Service Authority, Virginia, Water and Sewer 8/02 at 102 Aa3 1,597,860
System Revenue Refunding Bonds, Series of 1993,
5.750%, 8/01/11
5,880,000 Fairfax County, Virginia, Water Authority, Water Refunding Revenue 4/02 at 100 AA 6,052,284
Bonds, Series 1992, 5.750%, 4/01/29
605,000 Henrico County, Virginia, Water and Sewer System Refunding 5/02 at 100 Aa2 637,162
Revenue Bonds, Series 1992, 6.250%, 5/01/13
1,500,000 Henry County Public Service Authority, Water and Sewer Refunding 11/01 at 101 AAA 1,592,970
Revenue Bonds, Series 1991, 6.250%, 11/15/19
City of Norfolk, Virginia, Water Revenue Bonds, Series 1995:
6,200,000 5.875%, 11/01/20 11/05 at 102 AAA 6,607,154
2,365,000 5.900%, 11/01/25 11/05 at 102 AAA 2,537,645
2,595,000 Upper Occoquan Sewage Authority, Virginia, Regional Sewer 1/04 at 102 AAA 2,508,976
System Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/21
3,955,000 Virginia Resources Authority, Water and Sewer System Revenue 10/05 at 102 AA 4,281,680
Bonds, 1995 Series A (Sussex County Project), 5.600%, 10/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
$ 181,740,000 Total Investments - (cost $178,597,862) - 98.5% 189,305,881
=============
SHORT-TERM INVESTMENTS - 0.3%
$ 600,000 Roanoke Industrial Development Authority, Hospital Revenue VMIG-1 600,000
Bonds (Carilion Health System), Variable Rate Demand Bonds,
Series B, 3.250%, 7/01/19+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,261,961
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $192,167,842
====================================================================================================================
* 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.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which
ensures the timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term
security. The rate disclosed is that currently in effect. This
rate changes periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENT OF NET ASSETS
May 31, 1999
<TABLE>
<CAPTION>
GEORGIA MARYLAND NORTH CAROLINA VIRGINIA
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $82,511,763 $225,826,990 $134,058,945 $189,305,881
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value (note 1) -- -- -- 600,000
Cash -- -- 151,384 --
Receivables:
Interest 1,589,105 4,580,116 2,558,934 3,292,528
Investments sold -- 80,000 -- --
Other assets 2,921 20,982 15,012 708
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 84,103,789 230,508,088 136,784,275 193,199,117
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,895,252 2,693 -- 158,900
Accrued expenses:
Management fees (note 6) 45,372 126,104 75,378 105,729
Other 80,951 148,548 105,258 140,700
Preferred share dividends payable 10,053 32,739 13,852 22,641
Common share dividends payable 250,496 678,445 413,161 603,305
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,282,124 988,529 607,649 1,031,275
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $81,821,665 $229,519,559 $136,176,626 $192,167,842
====================================================================================================================================
Preferred shares, at liquidation value $27,800,000 $ 79,100,000 $ 46,800,000 $ 63,800,000
====================================================================================================================================
Preferred shares outstanding 1,112 3,164 1,872 2,552
====================================================================================================================================
Common shares outstanding 3,739,502 10,438,466 6,261,004 8,619,148
====================================================================================================================================
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by Common shares
outstanding) $ 14.45 $ 14.41 $ 14.28 $ 14.89
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENT OF OPERATIONS
YEAR ENDED MAY 31, 1999
<TABLE>
<CAPTION>
GEORGIA MARYLAND NORTH CAROLINA VIRGINIA
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME (NOTE 1) $4,512,017 $12,354,706 $ 7,545,397 $10,661,865
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees (note 6) 537,993 1,495,842 895,611 1,250,659
Preferred shares - auction fees 69,500 197,750 117,001 159,501
Preferred shares - dividend disbursing agent fees 10,001 19,998 10,001 19,998
Shareholders' servicing agent fees and expenses 10,191 32,496 15,994 30,052
Custodian's fees and expenses 37,638 70,072 45,356 54,337
Trustees' fees and expenses (note 6) 777 2,183 1,296 1,807
Professional fees 17,189 17,597 17,338 17,484
Shareholders' reports - printing and mailing expenses 32,499 75,691 45,169 61,155
Stock exchange listing fees 3,468 24,276 16,188 16,305
Investor relations expense 7,099 21,174 12,045 17,658
Other expenses 8,326 13,872 10,392 12,368
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 734,681 1,970,951 1,186,391 1,641,324
Custodian fee credit (note 1) (2,044) (17,391) (4,435) (7,606)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 732,637 1,953,560 1,181,956 1,633,718
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,779,380 10,401,146 6,363,441 9,028,147
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment
transactions (notes 1 and 4) (19,285) 793,902 39,751 292,180
Net change in unrealized appreciation or
depreciation of investments (519,051) (2,181,086) (1,441,296) (1,006,799)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (538,336) (1,387,184) (1,401,545) (714,619)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $3,241,044 $ 9,013,962 $ 4,961,896 $ 8,313,528
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GEORGIA MARYLAND
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/99 5/31/98 5/31/99 5/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 3,779,380 $ 3,782,398 $ 10,401,146 $ 10,294,731
Net realized gain (loss) from
investment transactions (notes 1 and 4) (19,285) 262,947 793,902 209,020
Net change in unrealized appreciation or
depreciation of investments (519,051) 3,091,525 (2,181,086) 7,993,591
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 3,241,044 7,136,870 9,013,962 18,497,342
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (2,994,577) (2,940,684) (8,043,917) (7,965,280)
Preferred shareholders (781,355) (910,706) (2,336,752) (2,466,134)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (3,775,932) (3,851,390) (10,380,669) (10,431,414)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions 204,645 169,532 698,387 643,736
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (330,243) 3,455,012 (668,320) 8,709,664
Net assets at the beginning of year 82,151,908 78,696,896 230,187,879 221,478,215
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $81,821,665 $82,151,908 $229,519,559 $230,187,879
====================================================================================================================================
Balance of undistributed net investment income at
the end of year $ 184,495 $ 181,047 $ 383,882 $ 363,405
====================================================================================================================================
See accompanying notes to financial statements.
<PAGE>
<CAPTION>
NORTH CAROLINA VIRGINIA
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/99 5/31/98 5/31/99 5/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 6,363,441 $ 6,359,194 $ 9,028,147 $ 9,024,501
Net realized gain (loss) from investment
transactions (notes 1 and 4) 39,751 105,277 292,180 815,729
Net change in unrealized appreciation or
depreciation of investments (1,441,296) 6,157,216 (1,006,799) 7,074,942
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 4,961,896 12,621,687 8,313,528 16,915,172
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 1)
From undistributed net investment income:
Common shareholders (4,954,259) (4,942,333) (7,077,141) (7,014,079)
Preferred shareholders (1,310,119) (1,588,477) (1,918,811) (2,065,746)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (6,264,378) (6,530,810) (8,995,952) (9,079,825)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 2)
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 208,763 250,831 927,907 990,319
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (1,093,719) 6,341,708 245,483 8,825,666
Net assets at beginning of year 137,270,345 130,928,637 191,922,359 183,096,693
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $136,176,626 $137,270,345 $192,167,842 $191,922,359
====================================================================================================================================
Balance of undistributed net investment income
at end of yea $ 317,242 $ 218,179 $ 429,057 $ 396,862
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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). Maryland, North Carolina and Virginia are traded on the New York
Stock Exchange while Georgia 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 the when-issued and delayed delivery purchase commitments. At May
31, 1999, the Funds had no such outstanding purchase commitments.
INVESTMENT 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 monthly tax-exempt income dividends paid during the fiscal year ended
May 31, 1999, 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 monthly as a dividend 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 carryforwards.
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, for each of the Funds is
as follows:
NORTH
GEORGIA MARYLAND CAROLINA VIRGINIA
- --------------------------------------------------------------------------------
Number of shares:
Series T -- -- -- 832
Series W -- 1,404 -- --
Series TH 1,112 1,760 1,872 1,720
- --------------------------------------------------------------------------------
Total 1,112 3,164 1,872 2,552
================================================================================
DERIVATIVE FINANCIAL INSTRUMENTS
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, 1999.
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. Actual results may differ
from those estimates.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
2. FUND SHARES
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
GEORGIA MARYLAND
- ----------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/99 5/31/98 5/31/99 5/31/98
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 12,929 11,603 44,630 44,290
==================================================================================
NORTH CAROLINA VIRGINIA
- ----------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/99 5/31/98 5/31/99 5/31/98
- ----------------------------------------------------------------------------------
Shares issued to shareholders
due to reinvestment of
distributions 13,084 16,963 56,927 64,943
==================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on July 1, 1999, to shareholders of record on
June 15, 1999, as follows:
NORTH
GEORGIA MARYLAND CAROLINA VIRGINIA
- --------------------------------------------------------------------------------
Dividend per share $.0670 $.0650 $.0660 $.0700
================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the fiscal year ended May 31,
1999, were as follows:
<TABLE>
<CAPTION>
NORTH
GEORGIA MARYLAND CAROLINA VIRGINIA
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $13,608,280 $38,323,866 $11,520,220 $16,978,815
Short-term municipal securities 6,300,000 13,800,000 7,700,000 1,500,000
Sales and maturities:
Long-term municipal securities 11,811,059 36,140,868 11,099,084 15,618,886
Short-term municipal securities 6,800,000 14,200,000 7,800,000 1,900,000
=========================================================================================================
</TABLE>
At May 31, 1999, 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, 1999, the Funds' had unused capital loss carryforwards available for
federal income tax purposes to be applied against future capital gains, if any.
If not applied, the carryforwards will expire as follows:
NORTH
GEORGIA MARYLAND CAROLINA VIRGINIA
- -----------------------------------------------------------------------
Expiration year:
2002 $ -- $2,202,413 $ -- $ 917,970
2003 1,088,659 1,019,929 2,344,091 1,577,464
2004 1,842,885 2,660,424 1,137,399 1,579,895
2005 340,685 454,351 131,993 140,749
- -----------------------------------------------------------------------
Total $3,272,229 $6,337,117 $3,613,483 $4,216,078
=======================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 1999, were as follows:
<TABLE>
<CAPTION>
NORTH
GEORGIA MARYLAND CAROLINA VIRGINIA
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $5,585,504 $11,033,218 $6,111,477 $10,944,319
depreciation (155,248) (309,250) (178,235) (236,300)
- ------------------------------------------------------------------------------------
Net unrealized appreciation $5,430,256 $10,723,968 $5,933,242 $10,708,019
===================================================================================
</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 assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
- --------------------------------------------------------------------------------
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
================================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
<TABLE>
7. COMPOSITION OF NET ASSETS
At May 31, 1999, net assets consisted of:
<CAPTION>
NORTH
GEORGIA MARYLAND CAROLINA VIRGINIA
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $27,800,000 $ 79,100,000 $ 46,800,000 $ 63,800,000
Common shares, $.01 par value per share 37,395 104,385 62,610 86,191
Paid-in surplus 51,683,840 145,665,757 86,677,015 121,367,489
Balance of undistributed net investment income 184,495 383,882 317,242 429,057
Accumulated net realized gain (loss) from
investment transactions (3,314,321) (6,458,433) (3,613,483) (4,222,914)
Net unrealized appreciation of investments 5,430,256 10,723,968 5,933,242 10,708,019
- -------------------------------------------------------------------------------------------------------------
Net assets $81,821,665 $229,519,559 $136,176,626 $192,167,842
============================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
============================================================================================================
</TABLE>
<TABLE>
Financial Highlights
Selected data for a Common share outstanding throughout each year is as follows:
<CAPTION>
Investment Operations
-----------------------------
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
Georgia
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 $14.58 $1.01 $ (.13) $ .88
1998 13.70 1.01 .90 1.91
1997 13.00 1.01 .69 1.70
1996 13.35 1.00 (.38) .62
1995 12.26 .98 1.09 2.07
<CAPTION>
Maryland
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.54 1.00 (.14) .86
1998 13.76 .99 .80 1.79
1997 13.21 1.00 .55 1.55
1996 13.36 .99 (.14) .85
1995 12.67 .99 .70 1.69
<CAPTION>
North Carolina
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.48 1.02 (.22) .80
1998 13.50 1.02 1.00 2.02
1997 12.77 1.02 .72 1.74
1996 13.19 .98 (.44) .54
1995 12.34 .97 .85 1.82
<CAPTION>
Virginia
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.96 1.05 (.08) .97
1998 14.04 1.06 .92 1.98
1997 13.35 1.06 .68 1.74
1996 13.61 1.04 (.26) .78
1995 12.79 1.04 .84 1.88
<PAGE>
<CAPTION>
Less Distributions
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
Georgia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 $(.80) $(.21) $-- $-- $(1.01)
1998 (.79) (.24) -- -- (1.03)
1997 (.77) (.23) -- -- (1.00)
1996 (.73) (.24) -- -- (.97)
1995 (.73) (.25) -- -- (.98)
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (.77) (.22) -- -- (.99)
1998 (.77) (.24) -- -- (1.01)
1997 (.76) (.24) -- -- (1.00)
1996 (.74) (.26) -- -- (1.00)
1995 (.74) (.26) -- -- (1.00)
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (.79) (.21) -- -- (1.00)
1998 (.79) (.25) -- -- (1.04)
1997 (.77) (.24) -- -- (1.01)
1996 (.70) (.26) -- -- (.96)
1995 (.73) (.24) -- -- (.97)
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (.82) (.22) -- -- (1.04)
1998 (.82) (.24) -- -- (1.06)
1997 (.81) (.24) -- -- (1.05)
1996 (.79) (.25) -- -- (1.04)
1995 (.80) (.26) -- -- (1.06)
<PAGE>
<CAPTION>
Total Returns
----------------------
Based
Ending Based on
Net Ending on Net
Asset Market Market Asset
Value Value Value* Value*
Georgia
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 $14.45 $16.2500 13.42% 4.64%
1998 14.58 15.0625 14.56 12.43
1997 13.70 13.8750 19.95 11.53
1996 13.00 12.2500 12.88 2.81
1995 13.35 11.5000 (3.00) 15.78
<CAPTION>
Maryland
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.41 15.1250 5.47 4.44
1998 14.54 15.0625 16.54 11.47
1997 13.76 13.6250 13.07 10.08
1996 13.21 12.7500 10.22 4.41
1995 13.36 12.2500 4.36 12.07
<CAPTION>
North Carolina
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.28 15.6875 9.87 4.11
1998 14.48 15.0000 8.17 13.38
1997 13.50 14.6250 22.60 12.01
1996 12.77 12.6250 10.13 2.11
1995 13.19 12.1250 3.04 13.64
<CAPTION>
Virginia
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 14.89 16.0625 4.77 5.09
1998 14.96 16.1250 17.30 12.66
1997 14.04 14.5000 13.81 11.49
1996 13.35 13.5000 11.04 3.86
1995 13.61 12.8750 4.66 13.58
<PAGE>
<CAPTION>
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Before Credit
----------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
<S> <C> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
1999 $ 81,822 1.34% 6.87% .89% 4.57%
1998 82,152 1.33 7.10 .87 4.66
1997 78,697 1.40 7.52 .90 4.83
1996 76,026 1.42 7.53 .91 4.82
1995 77,334 1.54 8.14 .95 5.01
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 229,520 1.29 6.78 .85 4.47
1998 230,188 1.29 6.93 .84 4.52
1997 221,478 1.32 7.28 .85 4.72
1996 215,690 1.36 7.33 .87 4.68
1995 217,162 1.59 8.02 .97 4.92
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 136,177 1.30 6.97 .86 4.61
1998 137,270 1.30 7.17 .85 4.70
1997 130,929 1.37 7.72 .87 4.92
1996 126,196 1.38 7.49 .88 4.75
1995 128,815 1.45 8.09 .89 4.96
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 192,168 1.26 6.95 .85 4.65
1998 191,922 1.27 7.20 .84 4.77
1997 183,097 1.33 7.65 .86 4.95
1996 176,649 1.35 7.64 .87 4.92
1995 178,394 1.58 8.25 .98 5.13
<PAGE>
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------------------------
After Credit**
-------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets Portfolio
to Common to Common Including Including Turnover
Shares++ Shares++ Preferred++ Preferred++ Rate
<S> <C> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
1999 1.33% 6.88% .89% 4.57% 14%
1998 1.33 7.10 .87 4.66 17
1997 1.40 7.52 .90 4.83 30
1996 1.42 7.53 .91 4.82 14
1995 1.54 8.14 .95 5.01 35
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 1.28 6.79 .84 4.48 16
1998 1.29 6.93 .84 4.52 6
1997 1.32 7.28 .85 4.72 6
1996 1.36 7.33 .87 4.68 18
1995 1.59 8.02 .97 4.92 25
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 1.30 6.97 .86 4.61 8
1998 1.30 7.17 .85 4.70 9
1997 1.37 7.72 .87 4.92 19
1996 1.38 7.49 .88 4.75 39
1995 1.45 8.09 .89 4.96 32
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 1.26 6.95 .84 4.66 8
1998 1.27 7.20 .84 4.77 19
1997 1.33 7.65 .86 4.95 16
1996 1.35 7.64 .87 4.92 27
1995 1.58 8.25 .98 5.13 45
* Total Return on Market Value is the combination of reinvested dividend
income, reinvested capital gain 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 gain distributions, if any,
and changes in net asset value per share. Total returns are not annualized.
** After custodian fee credit, where applicable (note 1).
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
</TABLE>
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Build Your Wealth Automatically
sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to
set up your reinvestment account.
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 invest 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.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
Flexibility
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 at (800)
257-8787.
<PAGE>
Fund Information
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
YEAR 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, we have updated or replaced our trading, fund
management, and pricing systems at Nuveen - systems that directly affect our
investors and their financial advisers - to address Year 2000 concerns.
We continue to work closely with our transfer agent, custodian, firms through
whom we buy and sell portfolio securities, and other service partners to monitor
the Year 2000 readiness of their systems, while addressing other remaining
systems issues.
In addition, the Funds hold securities of issuers whose business operations
leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's
Year 2000 readiness as part of our initial and ongoing research of these
issuers. This is only one of the many factors considered in determining whether
to buy, sell, or continue holding a particular security.
We anticipate that all significant components of our Year 2000 review, repair,
and testing program will be complete by mid-1999. This includes appropriate
industry-wide testing of critical systems and receipt of satisfactory assurances
from critical service providers, vendors, and issuers regarding their Year 2000
readiness. We are also making Year 2000 contingency plans to guide recovery
efforts in the event that, despite our remediation attempts, Year 2000 issues
adversely affect the Funds. Although we cannot give complete assurance at this
time that the steps we take will be sufficient to prevent any problems that
would impact the Nuveen Exchange-Traded Funds, we can assure you that we will
take all reasonable steps to prevent disruption of the services provided by your
Fund.
FUND POLICIES
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund. The Fund was formerly not permitted to invest more than 5% of its
total assets in Municipal Leases that contain "non-appropriation" clauses. In
addition, your Fund was not permitted to invest more than 10% of its total
assets in Municipal Leases and securities that are unmarketable, illiquid or not
readily marketable. The Municipal Lease market has matured since the Fund's
inception, and non-appropriation leases have become more liquid and widely
accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions
noted above, replacing them with requirements that the Funds limit investments
in non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended May 31, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors for Generations
Photo 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
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
LOGO:
NUVEEN
helping investors sustain the wealth of a lifetime(tm).
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FAN-2-5-99
