NUVEEN Exchange-Traded Funds
November 30, 1998
Semiannual 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 November 30, 1998
Contents
1 Dear Shareholder
4 NPG Commentary and Overview
6 NMY Commentary and Overview
8 NNC Commentary and Overview
10 NPV Commentary and Overview
12 Portfolio of Investments
26 Statement of Net Assets
27 Statement of Operations
28 Statement of Changes in Net Assets
29 Notes to Financial Statements
33 Financial Highlights
36 Building Better Portfolios
37 Fund Information
Credit Quality Performance Highlights
================================================================================
Nuveen Georgia Premium Income Municipal Fund (NPG)
o One-year taxable-equivalent total return on
share price of 24.23% for investors in the
combined 35.1% federal and state income tax
bracket
o Outperformed Lipper Peer Group average and
the Lehman Brothers Municipal Bond Index
for the one-year period
o Increased its dividend in August, after
posting 12 consecutive months of stable
income
Pie Chart:
AAA/U.S. Guaranteed 66%
AA 19%
A 15%
Nuveen Maryland Premium Income Municipal Fund (NMY)
o One-year taxable-equivalent total return on
share price of 20.19% for investors in the
combined 34.4% federal and state income tax
bracket
o Outperformed the Lehman Brothers Municipal
Bond Index for the one-year period
o Stable tax-free dividend for 25 months
Pie Chart:
AAA/U.S. Guaranteed 65%
AA 16%
A 16%
BBB/NR 3%
Nuveen North Carolina Premium Income Municipal Fund (NNC)
o One-year taxable-equivalent total return on
share price of 24.79% for investors in the
combined 36.3% federal and state income tax
bracket
o Outperformed the Lehman Brothers Municipal
Bond Index and Lipper Peer Group average
for the one-year period
o Stable tax-free dividend for 25 months
Pie Chart:
AAA/U.S. Guaranteed 42%
AA 31%
A 18%
BBB/NR 9%
Nuveen Virginia Premium Income Municipal Fund (NPV)
o One-year taxable-equivalent total return on
share price of 20.27% for investors in the
combined 35.0% federal and state income tax
bracket
o Outperformed the Lehman Brothers Municipal
Bond Index and Lipper Peer Group average
for the one-year period
o Stable tax-free dividend for 25 months
Pie Chart:
AAA/U.S. Guaranteed 34%
AA 34%
A 25%
BBB/NR 7%
<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
I'm pleased to report that over the past 12 months, the Nuveen Exchange-Traded
Funds covered here have continued to perform well, meeting their primary
objective of providing you with attractive levels of tax-free income and
after-tax total returns. The strong market in fixed-income securities, bolstered
by investor demand for quality investments, benefited these funds and led to
increases in share price. Attractive tax-free income, enhanced by strong share
price performance, illustrates once again that Nuveen's Exchange-Traded Funds
can provide an excellent investment option for income-oriented investors.
The Year in Review
Over the past year, the markets endured bouts of volatility, as the Asian
financial crisis spilled over into emerging markets and affected economies
around the globe. Investors responded by seeking a haven from the uncertainty in
more conservative investments, such as municipal bond funds. To avert a
potential domestic credit crunch and bring some stability to global markets, the
Federal Reserve moved to ease short-term interest rates for the first time in
almost three years. Between the end of September and mid-November, three
successive cuts brought the federal funds rate to 4.75%. As interest rates
continued to trend downward, the competitive yields offered by our
exchange-traded funds stimulated additional investor interest and demand, which
led to improved share prices overall.
In this environment, the market for exchange-traded municipal bond funds has
been exceptionally strong. These funds continue to represent a bright spot among
fixed-income investments, offering attractive income in a market that places a
high premium on yield. In addition, the funds have generally maintained good
levels of call protection, resulting in relatively stable income streams.
In the coming months, we will continue to watch several key factors affecting
the future of the economy, including corporate earnings reports, wage and
employment statistics, U.S. consumer confidence levels, the continuing impact of
foreign financial turmoil, and any further interest rate indications from the
Federal Reserve. These factors will influence the outlook for fixed-income
markets well into 1999.
<PAGE>
Graphic of line chart: Bond Buyer 40
Municipal Bonds: A Compelling Value
Over the past year, rising bond prices drove yields on 30-year Treasuries to
historic lows. With yields on the long Treasury bond pushing below 5% at times,
the yield on the Bond Buyer 40, an unmanaged index of long-term municipal bonds,
fell just 26 basis points - from 5.36% to 5.10% - compared with the 99-point
drop in Treasury yields over the past 12 months. As of November 30, 1998, the
ratio of long-term municipal yields to 30-year Treasury yields stood at more
than 100.8%, compared with the more typical range of 86-87%. Over the past few
months, this ratio has been as high as 104%. For investors, this means that
quality long-term municipal bonds currently offer about the same yield as
Treasury bonds with comparable maturities - even before the tax advantages of
municipal bonds are taken into account. On an after-tax basis in today's market,
municipal bonds present an exceptionally attractive investment option relative
to Treasuries.
The steep decline in Treasury yields during the past year was due to several
factors, including the strong interest in these investments by international
investors. As the financial turmoil in Asia spread to economies worldwide and
the dol lar strengthened against foreign currencies, the demand for U.S.
dollar-denominated Treasury securities increased. Compounding this situation was
the shortage of Treasury issues brought about by the federal budget surplus,
which reversed the multi-billion dollar deficits of the past few years and
reduced the federal government's need to issue bonds. In the municipal market,
where foreign demand was limited by an inability of foreign investors to benefit
from the tax advantages of municipals, low interest rates and a strong economy
combined to generate high levels of new issuance and a dramatic increase in the
refinancing of existing bonds. The first 11 months of 1998 saw over $255
billion of municipal issuance, up 28.4% over the same period in 1997. In terms
of total municipal issuance, this put 1998 on pace as the second largest year on
record.
In addition, the continued strength of the U.S. economy produced improvements in
the fundamental financial health of many municipali ties and boosted the overall
credit quality of municipal bonds. In the third quarter of 1998, issues
upgraded by the two major rating agencies outnumbered downgrades by a margin of
7 to 2.
<PAGE>
Nuveen Expertise Is Key
The key to taking advantage of the exceptional values currently available in the
municipal market is the ability of a proven investment manager. At Nuveen, we
recognize the value of time-tested expertise. The high level of recent municipal
issuance, for example, highlighted the value of Nuveen's in-depth knowledge of
the municipal market, as our portfolio management teams carefully analyzed the
flood of issues to select those securities best suited to help the funds achieve
their investment objectives.
As a further enhancement to our management capabilities, Nuveen has assembled a
strong core of Premier AdvisersSM, a group of managers who are experts in their
particular areas of the market, to provide time-tested experience and insights.
In addition to Nuveen Advisory Corp., our Premier Adviser for tax-free
investing, you can rely on other Premier Advisers to share their wisdom in the
equity market, including Institutional Capital Corporation for value investing
and Rittenhouse Financial Services, Inc. for growth investing. For more
information about the funds managed by these Premier Advisers, including charges
and expenses, contact your finan cial adviser for prospectus, or call Nuveen at
(800) 621-7227. Please read the prospectus carefully before you invest or send
money.
We encourage you to talk with your financial adviser about the ways Nuveen's
expanding selection of investments can assist you in establishing a diversified
portfolio designed to help you build and sustain long-term financial security.
Over the past 100 years, Nuveen has evolved from a company that dealt with only
municipal bonds into a well respected firm that handles a variety of investment
options. I look forward to continuing this exciting journey. We are grateful
for the confidence you have placed in us, and we intend to continue earning your
trust in the years ahead.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
January 15, 1999
Sidebar text: "The key to taking advantage of the exceptional values currently
available in the municipal market is the ability of a proven investment
manager."
<PAGE>
Nuveen Georgia Premium Income Municipal Fund (NPG)
Portfolio Manager's Comments
Portfolio manager Tom O'Shaughnessy talks about fund performance, key investment
strategies, and the outlook for the Georgia fund. Tom assumed management
responsibility for NPG on July 1, 1998, as part of Nuveen's efforts to maximize
the efficient use of staff resources and portfolio manager expertise. Tom is a
15-year veteran of Nuveen and manages a range of state municipal bond funds,
primarily in the southeastern U.S.
1 The Lehman Brothers Municipal Bond Index is an unleveraged index comprising a
broad range of investment-grade municipal bonds and does not reflect any
initial or ongoing expenses.
2 The Lipper Peer Group return represents the average annualized returns of the
18 funds in the Lipper State Leveraged Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charges.
3 Leverage-adjusted duration, also known as fund duration, takes into account
the leveraging process for each fund and therefore differs from the duration
of the actual portfolio of individual bonds that make up the fund. Unless
otherwise noted, references to duration in this commentary are intended to
indicate fund duration.
WHERE DID GEORGIA RANK IN TERMS OF MUNICIPAL ISSUANCE SINCE THE BEGINNING OF
THE YEAR? WHAT ECONOMIC FACTORS AFFECTED THE STATE?
Georgia's total issuance was $5.5 billion, a 39.1% increase over the first 11
months of 1997 and greater than the national average. Georgia ranked 12th in the
nation in terms of total municipal issuance for the 11 months ended November 30,
1998.
There has been significant growth in the number of public school
enrollments in Georgia, particularly in the Atlanta area. This has resulted in
an increased use of a special option sales tax to fund new school construction
and increased operating costs. Several school districts in the Atlanta metro
area have adopted this tax to help finance these increased costs and to help
ease the burden on property taxes.
Georgia's economy is no longer dependent on agriculture as its main
focus. While agriculture is still an important facet, Georgia has a stable and
broad based economy, centering on trade, service, and transportation. Atlanta,
where much of the service sector is located, serves as the hub for the
aforementioned sectors for the Southeast region of the United States. Hartsfield
International Airport, in Atlanta, is one of the world's busiest airports and is
a prime example of Georgia's well balanced economy.
HOW DID THE FUND PERFORM OVER THE PAST YEAR?
For the 12 months ended November 30, 1998, the Nuveen Georgia Premium Income
Municipal Fund (NPG) produced a total return on net asset value of 9.40%,
providing a taxable-equivalent return of 12.48% for investors in the combined
35.1% federal and state income tax bracket. The total return com pares with the
Lehman Brothers Municipal Bond Index's(1) annual return of 7.76%. The fund also
outperformed the relevant Lipper peer group(2) average return of 8.86%, ranking
fifth among the group's 18 funds.
Much of the fund's performance over the past 12 months can be tied to its
duration. As of November 30, 1998, NPG had a leverage-adjusted duration(3) of
9.80 years, compared with the unleveraged Lehman index's duration of 7.22 years.
Fund duration measures a bond fund's price volatility, or reaction to interest
rate movements. The longer the duration, the more sensitive the fund is to
changes in interest rates. During a period of falling interest rates, longer
duration enables a fund to participate more fully in market gains. However, when
rates rise, longer duration can make the fund more vulnerable to potential price
declines. Over the past year, as interest rates trended downward, funds with
durations longer than that of the index generally tended to outperform the
market.
HOW WERE THE FUND'S DIVIDEND AND SHARE PRICE AFFECTED?
In the current low interest rate environment, good call protection helped
support NPG's dividend and protect the income of this fund from erosion. In
addition, good dividend management strategies allowed us to increase the
dividend effective August 1998. As of November 30, 1998, the fund offered a
competitive market yield of 4.93%, equivalent to a taxable yield of 7.60% for
investors in the combined 35.1% federal and state income tax bracket.
As Tim mentioned in his letter to shareholders, share price performance among
the Nuveen Exchange-Traded Funds has been strong over the past 12 months. As
interest rates fell, active demand for these funds increased NPG's share price
and eliminated the slight discount of a year ago. As of November 30, 1998, NPG
was trading at a premium of 9.85% to its net asset value and also had a one-year
total return on its share price of 21.12%.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUND DURING THE PAST YEAR?
Over the past year, our primary focus has been on keeping the fund
fully invested and working for shareholders. Although municipal supply was up
39.1%, this increase was somewhat misleading due to the low amount of issuance
in Georgia the previous year. As a result, municipal issuance was up but still
relatively low. The limited supply of new municipal issuance in the state
restricted our ability to buy and sell bonds to take advantage of market
opportunities. Most recently, the majority of new issuance has been hospital
bonds, and the fund had 13% of its holdings in the healthcare sector, as of
November 30, 1998. Nuveen's excellent surveillance and research enable us to
understand the unique aspects of these credits and take advantage of the
competitive environment created by consolidation in this sector. The heavier
volume in this sector also created additional opportunities, as hospital bonds
often offered above-market yields and special call provisions to attract buyers.
Overall, the credit quality of the fund continued to be high, with 85% of the
fund invested in bonds rated AAA and AA, as of November 30, 1998.
WHAT IS NUVEEN'S OUTLOOK FOR THE FUTURE?
Looking ahead for NPG, our focus will remain on strategies that support the
income stream of this fund. We will continue to monitor the new issuance market,
taking advantage of the buy opportunities that can arise as issues come to
market, especially when they would allow us to enhance the fund's yield.
Another strategy will be to sell bonds that are not state-specific - for
example, those issued by Puerto Rico - and reinvest the proceeds into additional
Georgia bonds as issue supply allows. The Puerto Rican bonds should bring a high
price, and we plan to use the proceeds to diversify the fund and pick up
incremental yield. These are areas where Nuveen's expertise - as an experienced
investment manager knowledgeable about the unique aspects of the Georgia
municipal market - can result in added value for our investors.
The current market environment - influenced by declining interest rates, benign
inflation, and strong municipal supply - has helped to position municipal bonds
as one of the most compelling values in today's marketplace. We expect that the
excellent municipal-to-Treasury ratio, combined with continued volatility in
the equity markets and investors' increasing awareness of the need for asset
allocation rebalancing, will result in growing demand for municipal bond funds.
We believe that investors who take advantage of current opportunities in the
municipal market should be rewarded with healthy returns and attractive yields
in the months ahead, as the market recognizes the value of these quality
investments.
<PAGE>
Nuveen Georgia Premium Income Municipal Fund Performance
Overview As of November 30, 1998
NPG
Portfolio Statistics
==================================================
Inception Date 5/93
- --------------------------------------------------
Share Price $16 5/16
- --------------------------------------------------
Net Asset Value Per Share $14.85
- --------------------------------------------------
Market Yield 4.93%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 7.14%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 7.60%
- --------------------------------------------------
Fund Net Assets ($000) $83,262
- --------------------------------------------------
Effective Maturity (Years) 20.18
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 9.80
- --------------------------------------------------
Annualized Total Return
==================================================
On Share Price On NAV
- --------------------------------------------------
1-Year 21.12% 9.40%
- --------------------------------------------------
3-Year 17.05% 8.22%
- --------------------------------------------------
5-Year 8.37% 7.42%
- --------------------------------------------------
Since Inception 7.20% 6.76%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
==================================================
On Share Price On NAV
- --------------------------------------------------
1-Year 24.23% 12.48%
- --------------------------------------------------
3-Year 20.33% 11.30%
- --------------------------------------------------
5-Year 11.64% 10.61%
- --------------------------------------------------
Since Inception 10.30% 9.81%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
==================================================
Housing (Multifamily) 13%
- --------------------------------------------------
Water and Sewer 13%
- --------------------------------------------------
Health Care 13%
- --------------------------------------------------
Tax Obligation (Limited) 11%
- --------------------------------------------------
U.S. Guaranteed 9%
- --------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment nec
essary 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 35.1%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 35.1%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends Per Share
12/97 0.066
1/98 0.066
2/98 0.066
3/98 0.066
4/98 0.066
5/98 0.066
6/98 0.066
7/98 0.066
8/98 0.067
9/98 0.067
10/98 0.067
11/98 0.067
Line Chart:
Share Price Performance
12/5/97 14.5
14.563
14.625
14.813
14.938
14.813
15
15
14.938
15.188
15.25
15.125
15.313
15.438
14.938
15.25
14.25
14.375
14.5
14.313
14.25
14.563
14.5
14.25
15.063
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
11/30/98 16.3125
Weekly Closing Cost
Past Performance is not predictive of future results.
<PAGE>
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio Manager's Comments
Portfolio manager Dan Solender reviews the municipal market, fund performance,
and key investment strategies for the Maryland fund. Dan assumed management
responsibility for the fund on July 1, 1998, as part of Nuveen's efforts to
maximize the efficient use of staff resources and portfolio manager expertise. A
six-year veteran of Nuveen, Dan has 11 years of investment experience and
currently manages a range of state municipal bond funds.
1 The Lehman Brothers Municipal Bond Index is an unleveraged index comprising a
broad range of investment-grade municipal bonds and does not reflect any
initial or ongoing expenses.
2 The Lipper Peer Group return represents the average annualized returns of the
18 funds in the Lipper State Leveraged Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charges.
3 Leverage-adjusted duration, also known as fund duration, takes into account
the leveraging process for each fund and therefore differs from the duration
of the actual portfolio of individual bonds that make up the fund. Unless
otherwise noted, references to duration in this commentary are intended to
indicate fund duration.
WHERE DID MARYLAND RANK IN TERMS OF MUNICIPAL ISSUANCE SINCE THE BEGINNING OF
THE YEAR? WHAT ECONOMIC FACTORS AFFECTED THE STATE?
Although total municipal issuance was up 28.3% compared to a year ago, Maryland
is a relatively quiet participant in the municipal market, ranking 24th in
total issuance for the year ended November 30, 1998. Its total issuance was
just over $3 billion since the start of 1998, compared to the $34 billion that
New York issued.
The state's economy continues to recover from the recession of the early 1990's
with good job growth coming from business services, non-banking financial
services (credit card companies), construction, and technology. Maryland's per
capita income ranked sixth in the nation.
Maryland is currently implementing a 10% tax cut that is being phased in over
multiple years. It was originally scheduled to be enacted at 2% per year for
five years, but the cut was accelerated so that a cumulative 5% cut became
effective in 1998. The cut will increase to 6% (cumulative) in 1999. It will
remain unchanged in the year 2000, with an increase of 2% for the two
subsequent years.
HOW DID THE FUND PERFORM OVER THE PAST YEAR?
For the 12 months ended November 30, 1998, the Nuveen Maryland Premium Income
Municipal Fund (NMY) produced a total return on net asset value of 8.84%,
providing a taxable-equivalent total return of 11.72% for investors in the
combined 34.4% federal and state income tax bracket. The fund's total return
outperformed the Lehman Brothers Municipal Bond Index's(1) annual return of
7.76% and also compared favorably with the relevant Lipper Peer Group(2)
average return of 8.86%.
Much of the fund's performance over the past 12 months can be tied to
its duration. As of November 30, 1998, NMY had a leverage-adjusted duration(3)
of 9.59 years, compared with the unleveraged Lehman index's duration of 7.22
years. Fund duration measures a bond fund's price volatility, or reaction to
interest rate movements. The longer the duration, the more sensitive the fund is
to changes in interest rates. During a period of falling interest rates, longer
duration enables a fund to participate more fully in market gains. However, when
rates rise, longer duration can make the fund more vulnerable to potential price
declines. Over the past year, as interest rates trended downward, funds with
durations longer than that of the index generally tended to outperform the
market.
HOW WERE THE FUND'S DIVIDEND AND SHARE PRICE AFFECTED?
In the current low interest rate environment, good call protection helped
support NMY's dividend and protect the income of this fund from erosion. As of
November 30, 1998, NMY had provided shareholders with 25 consecutive months of
steady income and offered a competitive market yield of 4.73%, equivalent to a
taxable yield of 7.21% for investors in the combined 34.4% federal and state
income tax bracket.
As Tim mentioned in his letter to shareholders, share price performance among
the Nuveen Exchange-Traded Funds has been strong over the past 12 months. As
interest rates fell, active demand for these funds increased share prices,
further widening the spread between NMY's share price and its net asset
value. In addition, Maryland has seen strong demand for individual bonds on the
part of individual investors, which also contributed to this fund's premium. As
of November 30, 1998, NMY was trading at a pre mium of 9.72% to its net asset
value and also had a one-year total return on its share price of 17.36%.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUND DURING THE PAST YEAR?
Over the past year, supply in the Maryland municipal market has been
sporadic, with most of the new issuance in healthcare and housing bonds.
Nuveen's excellent access to the new issue market and our ability to obtain
good allocations in attractive new deals allowed the fund to take advantage of
this situation and find value in these two sectors. We particularly liked the
housing sector, which provided us with opportunities to pick up additional yield
with low risk of prepayment, given the current interest rate environment. As of
November 30, 1998, housing represented 15% of the fund's holdings. The state's
concentration of high-quality hospitals also produced a large number of issues,
most of which came to market insured. This enabled us to add hospital bonds that
offered both attractive prices and reduced credit risk; with 19% of the
portfolio being allocated to the healthcare sector as of November 30, 1998. We
also maintained our 21% weighting in utilities issues that were added to the
portfolio several years ago; the yields on these bonds helped provide support
for the fund's income stream. During the year, we took advantage of
opportunities to sell serial bonds with shorter maturities with attractive bids
from brokers.
Credit spreads remained tight in Maryland, with most new bonds insured
or rated AA or better. Basically, a tight credit spread occurs when the
difference in yield between high and low rated securities is minimal. As of
NMY's fiscal year end, 81% of the fund was invested in bonds rated AAA and AA.
Most of the bonds added to the portfolio in the past year were in the longer
part of yield curve, with a maturity range of 25-30 years, which acted to extend
the fund's duration.
WHAT IS NUVEEN'S OUTLOOK FOR THE FUTURE?
Looking ahead for NMY, we will continue to monitor the new issuance
market, taking advantage of the buying opportunities that can arise as issues
come to market. Issuance in the Maryland municipal market is expected to remain
reasonably high over the next year. While we believe that NMY is currently
well-positioned, we may consider reducing our holdings in the healthcare sector
if attractive new opportunities enable us to enhance the fund's diversification.
Finding such opportunities is an area where Nuveen's expertise - as an
experienced investment manager knowledgeable about the unique aspects of the
Maryland municipal market - can result in added value for our investors.
The current market environment - influenced by declining interest
rates, benign inflation, and strong municipal supply - has helped to position
municipal bonds as one of the most com-pelling values in today's marketplace. We
expect that the excellent municipal-to-Treasury ratio, combined with continued
volatility in the equity markets and investors' increasing awareness of the need
for asset allocation rebalancing, will result in growing demand for municipal
bond funds. We believe that investors who take advantage of current
opportunities in the municipal market should be rewarded with healthy returns
and attractive yields in the months ahead, as the market recognizes the value of
these quality investments.
<PAGE>
Nuveen Maryland Premium Income
Municipal Fund Performance Overview As of November 30, 1998
NMY
Portfolio Statistics
==================================================
Inception Date 3/93
- --------------------------------------------------
Share Price $16 1/4
- --------------------------------------------------
Net Asset Value Per Share $14.81
- --------------------------------------------------
Market Yield 4.73%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 6.86%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 7.21%
- --------------------------------------------------
Fund Net Assets ($000) $233,451
- --------------------------------------------------
Effective Maturity (Years) 18.43
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 9.59
- --------------------------------------------------
Annualized Total Return
==================================================
On Share Price On NAV
- --------------------------------------------------
1-Year 17.36% 8.84%
- --------------------------------------------------
3-Year 14.05% 7.74%
- --------------------------------------------------
5-Year 8.78% 6.58%
- --------------------------------------------------
Since Inception 7.00% 6.44%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
==================================================
On Share Price On NAV
- --------------------------------------------------
1-Year 20.19% 11.72%
- --------------------------------------------------
3-Year 17.07% 10.63%
- --------------------------------------------------
5-Year 11.86% 9.62%
- --------------------------------------------------
Since Inception 9.91% 9.36%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
==================================================
Utilities 21%
- --------------------------------------------------
Health Care 19%
- --------------------------------------------------
Housing (Multifamily) 15%
- --------------------------------------------------
Tax Obligation (Limited) 10%
- --------------------------------------------------
Tax Obligation (General) 8%
- --------------------------------------------------
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 34.4%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 34.4%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends Per Share
12/97 0.064
1/98 0.064
2/98 0.064
3/98 0.064
4/98 0.064
5/98 0.064
6/98 0.064
7/98 0.064
8/98 0.064
9/98 0.064
10/98 0.064
11/98 0.064
Line Chart:
Share Price Performance
12/5/97 14.875
14.375
14.563
14.625
14.813
15.063
15.063
14.938
14.75
14.813
14.875
14.938
15
14.938
15
15.188
14.938
15.063
15.188
14.938
14.813
14.5
14.438
14.875
15.063
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
11/30/98 16.25
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 discusses the municipal market, fund
performance, and key investment strategies for the North Carolina fund. Tom
assumed management responsibility for NNC on July 1, 1998, as part of Nuveen's
efforts to maximize the efficient use of staff resources and portfolio manager
expertise. Tom is a 15-year veteran of Nuveen and manages a range of state
municipal bond funds, primarily in the south eastern U.S.
1 The Lehman Brothers Municipal Bond Index is an unleveraged index comprising a
broad range of investment-grade municipal bonds and does not reflect any
initial or ongoing expenses.
2 The Lipper Peer Group return represents the average annualized returns of the
18 funds in the Lipper State Leveraged Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charges.
3 Leverage-adjusted duration, also known as fund duration, takes into account
the leveraging process for each fund and therefore differs from the duration
of the actual portfolio of individual bonds that make up the fund. Unless
otherwise noted, references to duration in this commentary are intended to
indicate fund duration.
WHERE DID NORTH CAROLINA RANK IN TERMS OF MUNICIPAL ISSUANCE SINCE THE BEGINNING
OF THE YEAR? WHAT ECONOMIC FACTORS AFFECTED THE STATE?
North Carolina's total issuance was $4.7 billion, a 50.3% increase over the
first 11 months of 1997 and greater than the national average. Virginia ranked
16th in the nation in terms of total municipal issuance for the 11 months ended
November 30, 1998.
High-tech and pharmaceutical sectors have replaced the traditional
manufacturing sectors (furniture and textiles) as the most prominent in the
state, due in large part to the job losses suffered in the manufacturing
sectors. With a decreased reliance on textile and apparel manufacturing, the
diversification into service, finances, and trade sectors should help the state
fare better than it has in years past if an economic downturn occurs.
HOW DID THE FUND PERFORM OVER THE PAST YEAR?
For the 12 months ended November 30, 1998, the Nuveen North Carolina
Premium Income Municipal Fund (NNC) produced a total return on net asset value
of 9.30%, providing a taxable-equivalent total return of 12.55% for investors in
the combined 36.3% federal and state income tax bracket. The total return
compares with the Lehman Brothers Municipal Bond Index's(1) annual return of
7.76%. The fund also outper formed the relevant Lipper Peer Group(2) average
return of 8.73%, ranking seventh among the group's 18 funds.
Much of the fund's performance over the past 12 months can be tied to its
duration. As of November 30, 1998, NNC had a leverage-adjusted duration(3) of
8.73 years, compared with the unleveraged Lehman index's duration of 7.22 years.
Fund duration measures a bond fund's price volatility, or reaction to interest
rate movements. The longer the duration, the more sensitive the fund is to
changes in interest rates. During a period of falling interest rates, longer
duration enables a fund to participate more fully in market gains. However, when
rates rise, longer duration can make the fund more vulnerable to potential price
declines. Over the past year, as interest rates trended downward, funds with
durations longer than that of the index generally tended to outperform the
market.
HOW WERE THE FUND'S DIVIDEND AND SHARE PRICE AFFECTED?
In the current low interest rate environment, good call protection
helped support NNC's dividend and protect the income of this fund from erosion.
As of November 30, 1998, NNC had provided shareholders with 25 consecutive
months of steady income. The fund continued to provide a competitive market
yield of 4.75%, equivalent to a taxable yield of 7.46% for investors in the
combined 36.3% federal and state income tax bracket.
As Tim mentioned in his letter to shareholders, share price performance
among the Nuveen Exchange-Traded Funds has been strong over the past 12 months.
As interest rates fell, active demand for funds such as NNC boosted share
prices, further widening the spread between the fund's share price and its net
asset value. As of November 30, 1998, NNC was trading at a premium of 13.37% to
its net asset value and also had a one-year total return on its share price of
21.59%.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUND DURING THE PAST YEAR?
Over the past year, our primary focus has been on keeping the fund fully
invested and working for shareholders. Although municipal supply was up 50.3%,
this increase was somewhat misleading due to the low amount of issuance in North
Carolina the previous year. As a result, municipal issuance was up but still
relatively low. The limited supply of new municipal issuance in the state
restricted our ability to buy and sell to take advantage of market
opportunities. Most recently, the majority of new issuance has been hospital
bonds, and the fund had invested 17% of its holdings in the healthcare sector,
as of November 30, 1998. Nuveen's excellent surveillance and research enable us
to understand the unique aspects of these credits and take advantage of the
competitive environment created by consolidation in the sector. The heavier
volume in this sector also created additional opportunities, as hospital bonds
often offered above-market yields and special call provisions to attract buyers.
Overall, the credit quality of the fund continued to be high, with 73% of the
fund invested in bonds rated AAA and AA, as of November 30, 1998.
WHAT IS NUVEEN'S OUTLOOK FOR THE FUTURE?
Looking ahead for NNC, our focus will remain on strategies that support the
income stream of this fund. We will continue to monitor the new issuance market,
taking advantage of the buy opportunities that can arise as issues come to
market, especially when they would allow us to enhance the fund's yield. Another
strategy will be to sell bonds that are not state-specific - for example, those
issued by Puerto Rico - and reinvest the proceeds into additional North Carolina
bonds. The Puerto Rican bonds should bring a high price, and we plan to use the
proceeds to diversify the fund and pick up incremental yield. These are areas
where Nuveen's expertise - as an experienced investment manager knowledgeable
about the unique aspects of the North Carolina municipal market - can result in
added value for our investors.
The current market environment - influenced by declining interest rates, benign
inflation, and strong municipal supply - has helped to position municipal bonds
as one of the most compelling values in today's marketplace. We expect that the
excellent municipal-to-Treasury ratio, combined with con tinued volatility in
the equity markets and investors' increasing awareness of the need for asset
allocation rebalancing, will result in growing demand for municipal bond funds.
We believe that investors who take advantage of current opportunities in the
municipal market should be rewarded with healthy returns and attractive yields
in the months ahead, as the market recognizes the value of these quality
investments.
<PAGE>
Nuveen North Carolina Premium Income Municipal Fund
Performance Overview As of November 30, 1998
NNC
Portfolio Statistics
==================================================
Inception Date 5/93
- --------------------------------------------------
Share Price $16 11/16
- --------------------------------------------------
Net Asset Value Per Share $14.72
- --------------------------------------------------
Market Yield 4.75%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 6.88%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 7.46%
- --------------------------------------------------
Fund Net Assets ($000) $138,863
- --------------------------------------------------
Effective Maturity (Years) 19.94
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 8.73
- --------------------------------------------------
Annualized Total Return
==================================================
On Share Price On NAV
- --------------------------------------------------
1-Year 21.59% 9.30%
- --------------------------------------------------
3-Year 17.83% 8.58%
- --------------------------------------------------
5-Year 10.47% 7.16%
- --------------------------------------------------
Since Inception 7.49% 6.45%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
==================================================
On Share Price On NAV
- --------------------------------------------------
1-Year 24.79% 12.55%
- --------------------------------------------------
3-Year 21.24% 11.83%
- --------------------------------------------------
5-Year 13.87% 10.51%
- --------------------------------------------------
Since Inception 10.68% 9.64%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
==================================================
Tax Obligation (Limited) 17%
- --------------------------------------------------
Health Care 17%
- --------------------------------------------------
Housing (Single Family) 11%
- --------------------------------------------------
U.S. Guaranteed 11%
- --------------------------------------------------
Utilities 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 36.3%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 36.3%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends Per Share
12/97 0.066
1/98 0.066
2/98 0.066
3/98 0.066
4/98 0.066
5/98 0.066
6/98 0.066
7/98 0.066
8/98 0.066
9/98 0.066
10/98 0.066
11/98 0.066
Line Chart:
Share Price Performance
12/5/97 14.375
14.5
14.5
14.625
14.875
15.25
15.75
16
15.813
15.625
15.813
15.5
15.063
15.063
15.563
15
15
15.125
15.5
15.5
15.563
14.875
14.625
14.938
15
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
15.688
16.063
16.063
16.25
16.375
16.188
16.5
16.19
16.38
16.63
16.69
11/30/98 16.6875
<PAGE>
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio Manager's Comments
Portfolio manager Dan Solender discusses the municipal market, fund performance,
and key investment strategies for the Virginia fund. Dan assumed management
responsibility for the fund on July 1, 1998, as part of Nuveen's efforts to
maximize the efficient use of staff resources and portfolio manager expertise. A
six-year veteran of Nuveen, Dan has 1 years of investment experience and
currently manages a range of state municipal bond funds.
1 The Lehman Brothers Municipal Bond Index is an unleveraged index comprising a
broad range of investment-grade municipal bonds and does not reflect any
initial or ongoing expenses.
2 The Lipper Peer Group return represents the average annualized returns of the
18 funds in the Lipper State Leveraged Municipal Debt category. The return
assumes reinvestment of dividends and does not reflect any applicable sales
charges.
3 Leverage-adjusted duration, also known as fund duration, takes into account
the leveraging process for each fund and therefore differs from the duration
of the actual portfolio of individual bonds that make up the fund. Unless
otherwise noted, references to duration in this commentary are intended to
indicate fund duration.
WHERE DID VIRGINIA RANK IN TERMS OF MUNICIPAL SSUANCE SINCE THE BEGINNING OF THE
YEAR? WHAT ECONOMIC FACTORS AFFECTED THE STATE?
Virginia's total issuance was $5.3 billion, a 50.1% increase over the first 11
months of 1997 and greater than the national average. Virginia ranked 13th in
the nation in terms of total municipal issuance for the 11 months ended
November 30, 1998.
One particular issue of note involves the Pocahontas Parkway Tollway, which is
going to be built south of Richmond. It will open in 2002 and will represent the
first public-private road built under new legislation. The road will be the only
crossing of the James River for a 14-mile stretch, linking the fairly well
developed areas of Chesterfield County with an area of Henrico County. It has
received good support from the state and private sectors. If this protoype is
successful, more roads could be built with this type of financing.
Virginia's unemployment figures are lower than the national average while its
population growth was higher. The state continues to diversify its economy away
from the federal government by focusing on sectors such as: business services,
retail and trade, and construction.
HOW DID THE FUND PERFORM OVER THE PAST YEAR?
For the 12 months ended November 30, 1998, the Nuveen Virginia Premium Income
Municipal Fund (NPV) produced a total return on net asset value of 9.56%,
providing a taxable-equivalent total return of 12.65% for investors in the
combined 35% federal and state income tax bracket. The total return compares
with the Lehman Brothers Municipal Bond Index's(1) annual return of 7.76%. The
fund also outperformed the relevant Lipper Peer Group(2) average return of
8.86%, ranking second among the group's 18 funds.
Much of the fund's performance over the past 12 months can be tied to
its duration. As of November 30, 1998, NPV had a leverage-adjusted duration(3)of
8.45 years, compared with the unleveraged Lehman index's duration of 7.22 years.
Fund duration measures a bond fund's price volatility, or reaction to interest
rate movements. The longer the duration, the more sensitive the fund is to
changes in interest rates. During a period of falling interest rates, longer
duration enables a fund to participate more fully in market gains. However, when
rates rise, longer duration can make the fund more vulnerable to potential price
declines. Over the past year, as interest rates trended downward, funds with
durations longer than that of the index generally tended to outperform the
market.
HOW WERE THE FUND'S DIVIDEND AND SHARE PRICE AFFECTED?
In the current low interest rate environment, good call protection
helped support NPV's dividend and protect the income of this fund from erosion.
As of November 30, 1998, NPV had provided shareholders with 25 consecutive
months of steady income and offered a competitive mar ket yield of 4.98%,
equivalent to a taxable yield of 7.66% for investors in the combined 35% federal
and state income tax bracket.
As Tim mentioned in his letter to shareholders, share price performance
among the Nuveen Exchange-Traded Funds has been strong over the past 12 months.
As interest rates fell, active demand for these funds increased share prices,
further widening the spread between NPV's share price and its net asset value.
As of November 30, 1998, NPV was trading at a premium of 8.20% to its net asset
value and also had a one-year total return on its share price of 17.21%.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUND DURING THE PAST YEAR?
Over the past year, supply in the Virginia municipal market has been
sporadic. Most of the bonds we added to the portfolio were in the long part of
the yield curve, with maturities in the 25- to 30-year range. We also held more
than 30% of the fund in the utilities and water and sewer sectors, which we
bought several years ago in good deals. During the past year, we sold selected
par bonds at attractive prices as well as noncallable bonds that were trading at
prices above their intrinsic value. The proceeds from these sales were
reinvested in bonds that enabled us to pick up additional yield for
shareholders. Currently, the fund is very well positioned, offering excellent
levels of call protection. The earliest scheduled calls are still at least four
years away. Overall, the credit quality of the fund is high, with 68% of the
portfolio invested in bonds rated AAA and AA.
WHAT IS NUVEEN'S OUTLOOK FOR THE FUTURE?
As we stated above, NPV is currently well positioned, particularly in
terms of duration, and we do not anticipate making many changes. We will
continue to monitor the new issuance market, taking advantage of the buy
opportunities that can arise as issues come to market, especially when they
would allow us to enhance the fund's yield. We will also watch for opportunities
to sell selected bonds at attractive prices and reinvest the proceeds in
securities that will provide additional yield and add diversification. Finding
such bonds is an area where Nuveen's expertise - as an experienced investment
manager knowledgeable about the unique aspects of the Virginia municipal market
- - can result in added value for our investors.
The current market environment - influenced by declining interest rates, benign
inflation, and strong municipal supply - has helped to position municipal bonds
as one of the most compelling values in today's marketplace. We expect that the
excellent municipal-to-Treasury ratio, combined with continued volatility in the
equity markets and investors' increasing awareness of the need for asset
allocation rebalancing, will result in growing demand for municipal bond funds.
We believe that investors who take advantage of current opportunities in the
municipal market should be rewarded with healthy returns and attractive yields
in the months ahead, as the market recognizes the value of these quality
investments.
<PAGE>
Nuveen Virginia Premium Income Municipal Fund
Performance Overview
As of November 30, 1998
NPV
Portfolio Statistics
==================================================
Inception Date 3/93
- --------------------------------------------------
Share Price $16 1/2
- --------------------------------------------------
Net Asset Value Per Share $15.25
- --------------------------------------------------
Market Yield 4.98%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 7.22%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State)(1) 7.66%
- --------------------------------------------------
Fund Net Assets ($000) $194,820
- --------------------------------------------------
Effective Maturity (Years) 19.90
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 8.45
- --------------------------------------------------
Annualized Total Return
==================================================
On Share Price On NAV
- --------------------------------------------------
1-Year 17.21% 9.56%
- --------------------------------------------------
3-Year 13.65% 8.52%
- --------------------------------------------------
5-Year 9.22% 7.43%
- --------------------------------------------------
Since Inception 7.39% 7.29%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
==================================================
On Share Price On NAV
- --------------------------------------------------
1-Year 20.27% 12.65%
- --------------------------------------------------
3-Year 16.88% 11.65%
- --------------------------------------------------
5-Year 12.57% 10.73%
- --------------------------------------------------
Since Inception 10.56% 10.46%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
==================================================
Utilities 16%
- --------------------------------------------------
Water and Sewer 15%
- --------------------------------------------------
Health Care 13%
- --------------------------------------------------
U.S. Guaranteed 11%
- --------------------------------------------------
Housing (Single Family) 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:
1997-1998 Monthly Tax-Free Dividends Per Share
12/97 0.0685
1/98 0.0685
2/98 0.0685
3/98 0.0685
4/98 0.0685
5/98 0.0685
6/98 0.0685
7/98 0.0685
8/98 0.0685
9/98 0.0685
10/98 0.0685
11/98 0.0685
Share Price Performance
12/5/97 15
15.438
15.563
15.625
15.938
16.125
16.188
16.625
16.313
16.125
15.625
15.5
15.5
15.625
16.063
16.063
16.125
16
15.938
16
15.5
15.688
15.813
16.25
16.125
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
11/30/98 16.5
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Georgia Premium Income Municipal Fund (NPG)
November 30, 1998
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples - 6.3%
$ 3,000,000 Albany - Dougherty Payroll Development Authority (Georgia), Solid Waste
Disposal Revenue Bonds (The Procter & Gamble Paper Products Company
Project), 1998 Series, 5.300%, 5/15/26 (Alternative Minimum Tax) 5/08 at 101 AA $3,045,000
2,000,000 Development Authority of Cartersville (Georgia), Sewage Facilities
Refunding Revenue Bonds (Anheuser-Busch Project), Series 1997,
6.125%, 5/01/27 (Alternative Minimum Tax) 5/07 at 101 A+ 2,178,260
- ------------------------------------------------------------------------------------------------------------------------------------
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 1,306,086
1,375,000 5.750%, 12/01/25 12/05 at 102 AAA 1,485,055
1,555,000 Development Authority of DeKalb County Revenue Bonds (Emory
University Project), Series 1994-A, 6.000%, 10/01/14 10/04 at 102 Aa1 1,727,543
1,550,000 Private Colleges and Universities Authority, Revenue Bonds (Agnes Scott
College Project), Series 1993, 5.625%, 6/01/23 6/03 at 102 AA- 1,637,978
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 12.6%
3,000,000 Hospital Authority of Albany - Dougherty County, Georgia, Revenue Bonds
(Phoebe Putney Memorial Hospital), Series 1993, 5.700%, 9/01/13 9/03 at 102 AAA 3,195,300
2,000,000 Fulco Hospital Authority (Georgia), Health System Revenue Anticipation
Certificates, Catholic Health East Issue, Series 1998A, 5.000%, 11/15/28 11/08 at 102 AAA 1,970,920
1,965,000 The Hospital Authority of Hall County and the City of Gainsville, Revenue
Anticipation Certificates (Northeast Georgia Healthcare Project),
Series 1995, 6.000%, 10/01/25 10/05 at 102 AAA 2,166,255
3,000,000 The Glynn - Brunswick Memorial Hospital Authority, Revenue Anticipation
Certificates (Southeast Georgia Health Systems Project), Series 1996,
5.250%, 8/01/13 8/06 at 102 AAA 3,130,380
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 12.7%
1,145,000 Housing Authority of Clayton County (Georgia), Multifamily Housing
Revenue Bonds, Series 1995 (The Advantages Project), 5.800%, 12/01/20 12/05 at 102 AAA 1,194,727
3,400,000 Housing Authority of the County of DeKalb, Georgia, Multifamily
Housing Revenue Bonds (The Lakes at Indian Creek Apartments
Project), Series 1994, 7.150%, 1/01/25 (Alternative Minimum Tax) 1/05 at 102 AAA 3,748,500
985,000 Housing Authority of the City of Decatur, Mortgage Revenue Refunding
Bonds, Series 1992A (FHA Insured Mortgage Loan - Park Trace Apartments,
Section 8 Assisted Project), 6.450%, 7/01/25 7/02 at 102 AAA 1,043,470
3,000,000 Macon - Bibb County Urban Development Authority, Multifamily Housing
Refunding Revenue Bonds, Series 1997A, 5.550%, 1/01/24 1/04 at 103 AAA 3,092,580
1,500,000 Housing Authority of the City of Marietta, Georgia, Multifamily Housing
Revenue Bonds (GNMA Collateralized - Country Oaks Apartments), Series 1996,
6.150%, 10/20/26 (Alternative Minimum Tax) 10/06 at 102 AAA 1,605,390
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 7.7%
475,000 Housing Authority of Fulton County, Georgia, Single Family Mortgage Revenue
Bonds (GNMA Mortgage-Backed Securities Program), Series 1995A,
6.550%, 3/01/18 (Alternative Minimum Tax) 3/05 at 102 AAA 511,732
2,995,000 Georgia Housing and Finance Authority, Single Family Mortgage Bonds,
1994 Series A (FHA Insured or VA Guaranteed Mortgage Loans), 6.500%, 12/01/17
(Alternative Minimum Tax) 12/04 at 102 AAA 3,216,959
420,000 Georgia Housing and Finance Authority, Single Family Mortgage Bonds,
1996 Series A, Subseries A-2, 6.450%, 12/01/27 (Alternative Minimum Tax) 6/06 at 102 AAA 453,898
2,145,000 Georgia Housing and Finance Authority, Single Family Mortgage Bonds,
1998 Series A, Subseries A-2, 5.550%, 12/01/26 (Alternative Minimum Tax) 6/08 at 101 AAA 2,192,598
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/General - 7.8%
$ 1,175,000 City of Atlanta, Georgia, General Obligation School Improvement Bonds,
Series 1993, 5.600%, 12/01/18 12/03 at 102 AA $1,254,136
500,000 Fulton County School District, General Obligation Refunding Bonds,
Series 1991, 6.375%, 5/01/17 No Opt. Call AA 597,950
1,000,000 Hall County School District (Georgia), General Obligation Refunding
School Bonds, 4.500%, 11/01/14 11/07 at 101 Aa3 969,540
3,500,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 (General
Obligation Bonds), 5.400%, 7/01/25 7/06 at 101 1/2 A 3,647,385
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 11.2%
1,000,000 Downtown Development Authority of the City of Atlanta (Georgia), Refunding
Revenue Bonds (Underground Atlanta Project), Series 1992,
6.250%, 10/01/12 10/02 at 102 AA 1,096,960
3,000,000 Solid Waste Management Authority of the City of Atlanta, Revenue Bonds
(Landfill Closure Project), Series 1996, 5.250%, 12/01/21 12/06 at 100 AA 3,047,970
1,250,000 Cobb - Marietta Coliseum and Exhibit Hall Authority (Georgia), Revenue
Refunding Bonds, Series 1993, 5.500%, 10/01/12 No Opt. Call AAA 1,376,950
2,000,000 The Fulton - DeKalb Hospital Authority, (Georgia), Revenue Refunding
Certificates, Series 1993, 5.500%, 1/01/20 7/03 at 102 AAA 2,081,020
1,000,000 Metropolitan Atlanta Rapid Transit Authority (Georgia), Sales Tax
Revenue Bonds, Refunding Series P, 6.250%, 7/01/20 No Opt. Call AAA 1,186,760
500,000 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds
(Series W), 5.250%, 7/01/20 7/03 at 101 1/2 A 507,060
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 3.3%
1,500,000 City of Atlanta, Georgia, Airport Facilities Revenue Bonds, Series 1990,
6.250%, 1/01/21 (Alternative Minimum Tax) 1/01 at 102 AAA 1,590,570
1,000,000 City of Atlanta, Georgia, Airport Facilities Revenue Refunding Bonds,
Series 1994A, 6.500%, 1/01/09 No Opt. Call AAA 1,171,750
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 9.0%
3,115,000 City of Albany (Georgia), Sewerage System Revenue Bonds, Series 1992,
6.625%, 7/01/17 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 3,472,322
500,000 City of Atlanta (Georgia), General Obligation Bonds Public Improvement
Bonds, Series 1994A, 6.100%, 12/01/19 (Pre-refunded to 12/01/04) 12/04 at 102 AA*** 565,865
1,000,000 Columbus, Georgia, Medical Center Hospital Authority, Revenue Anticipation
Certificates, 7.750%, 7/01/10 No Opt. Call AAA 1,228,660
2,000,000 Fulco Hospital Authority, Revenue Anticipation Certificates (Georgia Baptist
Health Care System Project), Series 1992A, 6.375%, 9/01/22
(Pre-refunded to 9/01/02) 9/02 at 102 Baa1*** 2,215,720
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 7.3%
1,900,000 Municipal Electric Authority of Georgia, General Power Revenue Bonds,
1992B Series, 5.500%, 1/01/18 1/03 at 100 AAA 1,969,749
1,750,000 Municipal Electric Authority of Georgia, Project One Special Obligation
Bonds, Fifth Crossover Series, 6.400%, 1/01/09 No Opt. Call A+ 2,011,748
2,000,000 Development Authority of Monroe County, (Georgia), Pollution Control
Revenue Bonds (Gulf Power Company Plant Scherer Project), First
Series 1994, 6.300%, 9/01/24 9/99 at 102 AA- 2,061,700
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 12.6%
2,500,000 City of Albany (Georgia), Sewerage System Revenue Bonds, Series 1997,
5.600%, 7/01/19 7/07 at 102 AAA 2,667,575
3,450,000 Atlanta Water and Sewerage System, 5.000%, 1/01/15 1/04 at 102 A+ 3,491,918
1,000,000 Cherokee County Water and Sewerage Authority (Georgia), Revenue Bonds,
Series 1997, 5.000%, 8/01/27 8/08 at 102 AAA 994,650
2,000,000 Douglasville - Douglas County Water and Sewer Authority (Georgia), Water
and Sewerage Revenue Bonds, Series 1993, 5.625%, 6/01/15 No Opt. Call AAA 2,211,240
1,000,000 City of Milledgeville (Georgia), Water and Sewerage Revenue and Refunding
Bonds, Series 1996, 6.000%, 12/01/21 No Opt. Call AAA 1,162,189
- ------------------------------------------------------------------------------------------------------------------------------------
$ 76,360,000 Total Investments - (cost $74,530,047) - 97.9% 81,484,018
=============
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Temporary Investments in Short-Term Municipal Securities - 2.2%
$ 200,000 Burke County Development Authority (Georgia), Pollution Control Revenue
Bonds (Georgia Power Company Plant - Vogtle Project), Variable Rate
Demand Bonds, 3.350%, 7/01/24+ VMIG-1 $ 200,000
1,600,000 Burke County Development Authority (Georgia), Pollution Control Revenue Bonds
(Georgia Power Company Plant - Vogtle Project), Second Series 1997, Variable
Rate Demand Bonds, 3.350%, 9/01/34+ (Alternative Minimum Tax) VMIG-1 1,600,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,800,000 Total Temporary Investments - 2.2% 1,800,000
=============
Other Assets Less Liabilities - (0.1)% (22,336)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $83,261,682
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** 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.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Maryland Premium Income Municipal Fund (NMY)
November 30, 1998
(Unaudited)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 7.3%
$ 2,700,000 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds,
Maryland Institute, College of Art Issue, Series 1998, 5.000%, 6/01/29 6/08 at 101 Aaa $2,705,454
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 1,074,250
2,000,000 5.625%, 7/01/27 7/07 at 102 Aa2 2,141,600
9,445,000 Morgan State University, Maryland, Academic Fees and Auxiliary Facilities
Fees, Revenue Refunding Bonds, 1993 Series, 6.100%, 7/01/20 No Opt. Call AAA 11,062,645
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 18.7%
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 3,081,726
6,265,000 5.500%, 9/01/15 9/05 at 102 AAA 6,600,115
1,960,000 Maryland Economic Development Corporation (Health and Mental Hygiene Providers
Facilities Acquisition Program), Revenue Bonds, Series 1996A,
7.625%, 4/01/21 4/11 at 102 N/R 2,027,934
1,855,000 Maryland Health and Higher Educational Facilities Authority, Refunding Revenue
Bonds, Francis Scott Key Medical Center Issue, Series 1993, 5.000%, 7/01/13 7/03 at 102 AAA 1,885,608
1,875,000 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds,
Good Samaritan Hospital Issue, Series 1993, 5.750%, 7/01/19 7/03 at 102 AAA 1,986,788
2,250,000 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds,
Johns Hopkins Medicine, Howard County General Hospital Acquisition Issue,
Series 1998, 5.000%, 7/01/29 7/08 at 101 AAA 2,254,478
2,350,000 Maryland Health and Higher Educational Facilities Authority, Project and
Refunding Revenue Bonds, Sinai Hospital of Baltimore Issue, Series 1993,
5.500%, 7/01/13 7/03 at 102 AAA 2,490,107
6,500,000 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds,
Anne Arundel Medical Center Issue, Series 1998, 5.125%, 7/01/28 7/08 at 101 AAA 6,553,430
6,000,000 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds
Upper Chesapeake Hospitals Issue, Series 1998A, 5.125%, 1/01/38 1/08 at 101 Aaa 6,009,120
1,670,000 Maryland Health and Higher Educational Facilities Authority, Hospital Refunding
and Revenue Bonds, Union Hospital of Cecil County Issue, Series 1998,
5.100%, 7/01/22 7/08 at 101 A3 1,641,810
Prince Georges 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 A 3,137,442
6,000,000 5.300%, 7/01/24 7/04 at 102 A 5,945,760
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 14.9%
4,000,000 Anne Arundel County, Maryland, Multifamily Housing Revenue Bonds (Woodside
Apartments Project), Series 1994, 7.450%, 12/01/24
(Alternative Minimum Tax) No Opt. Call BBB 4,251,040
1,795,000 County Commissioners of Charles County, Maryland, Mortgage Revenue
Refunding Bonds, Series 1995A (Holly Station IV Townhouses Project -
FHA Insured Mortgage Loan), 6.450%, 5/01/26 5/05 at 102 AAA 1,944,936
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 748,909
2,000,000 6.100%, 7/01/25 7/06 at 102 AAA 2,139,100
1,000,000 Community Development Administration, Department of Housing and Community
Development, State of Maryland, Multi-Family Housing Revenue Bonds (Insured
Mortgage Loans), 1992 Series A, 6.850%, 5/15/33 (Alternative Minimum Tax) 5/02 at 102 Aa2 1,065,710
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Multifamily (continued)
$ 1,150,000 Community Development Administration, Department of Housing and
Community Development, State of Maryland, Multi-Family Housing Revenue
Bonds (Insured Mortgage Loans), 1993 Series B, 6.625%, 5/15/23 5/03 at 102 Aa2 $1,236,538
3,075,000 Community Development Administration, Department of Housing and
Community Development, State of Maryland, Multi-Family Housing
Revenue Bonds (Insured Mortgage Loans), 1993 Series D, 6.050%, 5/15/24 5/03 at 102 Aa 3,246,062
2,000,000 Housing Opportunities Commission of Montgomery County (Montgomery
County, Maryland), Multifamily Housing Revenue Bonds, 1995 Series A ,
5.900%, 7/01/15 7/05 at 102 Aa 2,121,440
1,500,000 Housing Opportunities Commission of Montgomery County (Montgomery
County, Maryland), Multifamily Housing Revenue Bonds, 1996 Series B,
5.900%, 7/01/26 7/06 at 102 Aaa 1,579,560
3,830,000 Housing Opportunities Commission of Montgomery County (Montgomery
County, Maryland), Multifamily Housing Development Bonds, 1998 Series A,
5.200%, 7/01/30 (WI) 7/08 at 101 Aaa 3,846,354
1,000,000 Housing Authority of Prince Georges County (Maryland), Mortgage Revenue
Refunding Bonds, Series 1993A (GNMA Collateralized - Stevenson Apartments
Project), 6.350%, 7/20/20 1/03 at 102 AAA 1,059,960
Housing Authority of Prince Georges 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 1,149,765
1,930,000 6.000%, 9/20/15 9/03 at 102 AAA 2,024,126
1,500,000 Housing Authority of Prince Georges County (Maryland), Mortgage Revenue
Refunding Bonds, Series 1995A (GNMA Collateralized - Riverview Terrace
Apartments Project), 6.700%, 6/20/20 12/04 at 102 AAA 1,639,170
Housing Authority of Prince Georges 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 2,086,100
1,670,000 5.750%, 12/20/19 12/05 at 102 AAA 1,741,727
1,000,000 Housing Authority of Prince Georges County (Maryland), Mortgage Revenue
Refunding Bonds (Collateralized - Foxglenn Apartments Project),
Series 1998A, 5.450%, 5/20/14 (Alternative Minimum Tax) 5/00 at 100 AAA 1,004,450
905,000 The Mayor and Council of Rockville (Maryland), Mortgage Revenue Refunding
Bonds, Series 1994A (FHA Insured Mortgage Loan - The Summit Apartments
Project), 5.250%, 7/01/09 1/04 at 102 AAA 930,820
1,000,000 City of Salisbury, Maryland, Mortgage Revenue Refunding Bonds, Series 1995A
(FHA Insured Mortgage Loan - College Lane Apartments Project),
6.600%, 12/01/26 12/04 at 102 AAA 1,085,010
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 6.7%
1,465,000 Community Development Administration, Department of Housing and
Community Development, State of Maryland, Single Family Program Bonds,
1994 First Series, 5.900%, 4/01/11 4/04 at 102 Aa2 1,556,108
1,000,000 Community Development Administration, Department of Housing and
Community Development, State of Maryland, Single Family Program Bonds,
1994 Fourth Series, 6.450%, 4/01/14 4/04 at 102 Aa 1,075,140
2,650,000 Community Development Administration, Department of Housing and Community
Development, State of Maryland, Single Family Program Bonds, 1994 Fifth Series,
6.750%, 4/01/26 (Alternative Minimum Tax) 4/04 at 102 Aa 2,861,285
1,000,000 Community Development Administration, Department of Housing and Community
Development, State of Maryland, Single Family Program Bonds, 1989 Third Series,
7.375%, 4/01/26 (Alternative Minimum Tax) 4/99 at 102 Aa2 1,025,470
885,000 Community Development Administration, Department of Housing and Community
Development, State of Maryland, Single Family Program Bonds, 1992 Fourth Series,
6.800%, 4/01/22 (Alternative Minimum Tax) 4/03 at 102 Aa2 950,207
1,750,000 Community Development Administration, Department of Housing and Community
Development, State of Maryland, Single Family Program Bonds, 1993 Third Series,
4.950%, 4/01/06 4/04 at 102 Aa 1,806,368
1,000,000 Community Development Administration, Department of Housing and Community
Development, State of Maryland, Single Family Program Bonds, 1996 Sixth Series,
6.200%, 4/01/22 (Alternative Minimum Tax) 4/06 at 102 Aa2 1,073,140
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 2,000,000 Housing Opportunities Commission of Montgomery County (Montgomery County,
Maryland), Single Family Mortgage Revenue Bonds, 1994 Series A,
6.600%, 7/01/14 7/04 at 102 Aa2 $2,160,100
1,165,000 Housing Authority of Prince Georges County (Maryland), GNMA/FNMA Collateralized
Single Family Mortgage Revenue Bonds, Series 1994A, 6.350%, 6/01/11
(Alternative Minimum Tax) 6/04 at 102 AAA 1,246,550
1,725,000 Housing Authority of Prince Georges County (Maryland), FHLMC/FNMA/GNMA
Collateralized, Single Family Mortgage Revenue Bonds, Series 1997,
5.625%, 8/01/17 (Alternative Minimum Tax) 8/07 at 102 AAA 1,801,573
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 8.5%
2,000,000 Baltimore County, Maryland, General Obligation Bonds, Baltimore County
Pension Funding Bonds, 1998 Refunding Series, 5.000%, 8/01/10 8/08 at 101 AAA 2,123,760
2,000,000 Baltimore County, Maryland, General Obligation Bonds, Baltimore County
Metropolitan District Bonds (64th Issue), 4.900%, 8/01/11 8/03 at 102 AAA 2,052,380
City of Baltimore, Maryland (Mayor and City Council of
Baltimore), General Obligation Bonds, Consolidated Public
Improvement Refunding Bonds of 1993 - Series D:
1,305,000 6.000%, 10/15/05 No Opt. Call AAA 1,459,212
1,415,000 6.000%, 10/15/06 No Opt. Call AAA 1,595,823
1,000,000 City of Baltimore, Maryland (Mayor and City Council of Baltimore), General
Obligation Serial Bonds, Consolidated Public Improvement Bonds of 1989 -
Series B, 7.150%, 10/15/08 No Opt. Call A1 1,220,430
City of Baltimore, Maryland (Mayor and City Council of Baltimore), General
Obligation Bonds, Consolidated Public Improvement Bonds of 1995 -
Series Series A:
1,200,000 7.375%, 10/15/03 No Opt. Call AAA 1,384,644
5,000,000 7.250%, 10/15/04 No Opt. Call AAA 5,849,300
1,000,000 City of Baltimore, Maryland (Mayor and City Council of Baltimore), General
Obligation Serial Bonds, Consolidated Public Improvement Bonds of 1991 -
Series C, 6.375%, 10/15/07 No Opt. Call AAA 1,164,130
The Maryland - National Capital Park and Planning Commission (Prince Georges
County, Maryland), General Obligation Bonds, Park Acquisition and Development
Bonds, Series M-2:
880,000 5.300%, 7/01/09 7/03 at 102 AA 945,226
800,000 5.300%, 7/01/10 7/03 at 102 AA 859,296
1,000,000 Prince Georges County, Maryland, General Obligation Bonds, Consolidated Public
Improvement Bonds, Series 1993, 5.750%, 3/15/09 3/03 at 102 AAA 1,084,360
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 10.1%
2,730,000 Anne Arundel County, General Obligation Bonds, Consolidated Water and
Sewer Refunding, Series 1993, Series, 5.250%, 4/15/12 4/03 at 102 AA+ 2,852,222
1,000,000 Mayor and City Council of Baltimore (Maryland), Certificates of Participation
(Emergency Telecommunications Facilities), Series 1997A, 5.000%, 10/01/17 10/07 at 102 AAA 1,017,100
1,465,000 Maryland Department of Housing and Community Development, Community Development
Administration, Infrastructure Financing Bonds (MBIA Insured), 1998 Series B,
5.200%, 6/01/28 6/08 at 101 Aaa 1,492,322
4,415,000 Maryland Stadium Authority, Sports Facilities Lease Revenue Bonds, Series 1989D,
7.500%, 12/15/10 (Alternative Minimum Tax) 12/99 at 102 Aa 4,672,836
4,955,000 Maryland Stadium Authority, Sports Facilities Lease Revenue Bonds,
Series 1996, 5.750%, 3/01/18 3/06 at 101 AAA 5,323,999
2,200,000 Puerto Rico Public Buildings Authority, Public Education and Health
Facilities Refunding Bonds, Series M, Guaranteed by the Commonwealth
of Puerto Rico, 5.750%, 7/01/15 7/03 at 101 1/2 A 2,339,150
1,780,000 Washington County Sanitary District, Refunding Bonds of 1993, Series F
(Guaranteed by the Full Faith and Credit Pledge of the County Commissioners
of Washington County), 5.375%, 1/01/15 1/03 at 102 AAA 1,838,598
1,250,000 Washington Suburban Sanitary District, Maryland (Montgomery and Prince
Georges Counties, Maryland), General Construction Refunding Bonds of 1991
(Second Series), 6.100%, 1/01/04 1/02 at 102 Aa1 1,352,900
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 1,000,000 Washington Suburban Sanitary District, Maryland (Montgomery and Prince Georges
Counties, Maryland), Water Supply Refunding Bonds of 1993, 5.250%, 12/01/11 12/03 at 102 Aa1 $1,038,840
1,500,000 Washington Suburban Sanitary District, Maryland (Montgomery and Prince Georges
Counties, Maryland), Sewage Disposal Bonds of 1993, 5.375%, 6/01/12 6/03 at 102 Aa1 1,573,710
- ------------------------------------------------------------------------------------------------------------------------------------
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 6,046,260
1,075,000 6.400%, 7/01/19 (Alternative Minimum Tax) 7/04 at 102 AAA 1,146,552
1,500,000 Maryland Transportation Authority, Transportation Facilities Projects
Revenue Bonds, Series 1992, 5.750%, 7/01/15 7/02 at 100 A+ 1,569,225
Washington Metropolitan Area Transit Authority (District of
Columbia), Gross Revenue Transit Refunding Bonds, Series 1993:
2,000,000 6.000%, 7/01/07 No Opt. Call AAA 2,261,020
1,500,000 5.250%, 7/01/14 1/04 at 102 AAA 1,549,620
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 3.8%
3,125,000 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds,
Howard County General Hospital Issue, Series 1993, 5.500%, 7/01/25 7/03 at 102 Baa2*** 3,307,000
3,000,000 Maryland Transportation Authority, Transportation Facilities Projects,
Revenue Bonds, Series 1991, 6.500%, 7/01/06 (Pre-refunded to 7/01/01) 7/01 at 102 A+*** 3,263,310
1,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1997,
6.000%, 7/01/26 (Pre-refunded to 7/01/07) 7/07 at 101 1/2 AAA 1,151,220
1,115,000 Washington Suburban Sanitary District, Maryland (Montgomery and Prince Georges
Counties, Maryland), Water Supply Bonds of 1992, 6.200%, 6/01/09
(Pre-refunded to 6/01/02) 6/02 at 102 Aa1*** 1,224,828
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 20.5%
6,000,000 Anne Arundel County, Maryland, Pollution Control Revenue Refunding Bonds
(Baltimore Gas and Electric Company Project), Series 1994, 6.000%, 4/01/24 4/04 at 102 A 6,459,060
7,000,000 Calvert County, Maryland, Pollution Control Revenue Refunding Bonds
(Baltimore Gas and Electric Company Project), Series 1993, 5.550%, 7/15/14 7/04 at 102 A 7,459,830
9,600,000 Montgomery County, Maryland, Solid Waste System Revenue Bonds
(1993 Series A), 5.875%, 6/01/13 (Alternative Minimum Tax) 6/03 at 102 AAA 10,222,84
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 1,685,661
3,000,000 7.150%, 1/01/04 No Opt. Call AAA 3,422,730
4,675,000 7.200%, 1/01/05 No Opt. Call AAA 5,404,253
5,000,000 Prince Georges County, Maryland, Pollution Control Revenue Refunding Bonds
(Potomac Electric Project), 1993 Series, 6.375%, 1/15/23 1/03 at 102 A1 5,451,100
5,750,000 Prince Georges County, Maryland, Solid Waste Management System Revenue Bonds,
Series 1993, 5.250%, 6/15/13 6/03 at 102 AAA 5,947,455
1,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series T,
5.500%, 7/01/20 7/04 at 100 BBB+ 1,028,720
1,010,000 Puerto Rico Telephone Authority, Revenue Bonds, Series N, 5.500%, 1/01/22 1/03 at 101 1/2 A+ 1,047,693
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 3.8%
1,750,000 City of Baltimore, Maryland (Mayor and City Council of Baltimore), Project and
Refunding Revenue Bonds (Water Projects), Series 1994-A, 5.000%, 7/01/24 No Opt. Call AAA 1,797,266
6,000,000 City of Baltimore, Maryland (Mayor and City Council of Baltimore), Project and
Refunding Revenue Bonds (Water Projects), Series 1998-A, 5.000%, 7/01/28 7/08 at 101 AAA 6,018,059
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer (continued)
$ 1,000,000 City of Baltimore, Maryland (Mayor and City Council of Baltimore), Project and
Refunding Revenue Bonds (Water Projects), Series 1996-A, 5.500%, 7/01/26 7/06 at 101 AAA $1,055,898
- ------------------------------------------------------------------------------------------------------------------------------------
$ 218,405,000 Total Investments - (cost $217,505,022) - 99.7% 232,814,831
=============
Other Assets Less Liabilities - 0.3% 636,507
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $233,451,338
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** 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.
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen North Carolina Premium Income Municipal Fund (NNC)
November 30, 1998
(Unaudited)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 9.6%
$ 3,300,000 Appalachian State University, Utilities System Revenue Refunding Bonds
(Series 1998 of The Board of Governors of The University of
North Carolina), 5.000%, 5/15/18 5/08 at 102 AAA $ 3,335,805
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 1,060,700
2,400,000 6.300%, 7/01/15 (Alternative Minimum Tax) 7/05 at 102 A 2,569,680
5,875,000 State of North Carolina, State Education Assistance Authority, Guaranteed
Student Loan Revenue Bonds, 1996 Series C (Subordinate Lien),
6.350%, 7/01/16 (Alternative Minimum Tax) 7/06 at 102 A 6,326,788
- ------------------------------------------------------------------------------------------------------------------------------------
Forest and Paper Products - 4.1%
3,500,000 The Haywood County Industrial Facilities and Pollution Control Financing
Authority (North Carolina), Environmental Improvement Revenue Bonds
(Champion International Corporation Project), Series 1995A,
5.750%, 12/01/25 (Alternative Minimum Tax) 12/05 at 102 Baa1 3,562,720
2,000,000 The Haywood County Industrial Facilities and Pollution Control Financing
Authority (North Carolina), Variable Rate Demand Pollution Control
Refunding Revenue Bonds (Champion International Corporation Project),
Series 1995, 6.000%, 3/01/20 3/06 at 102 Baa1 2,094,720
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 16.6%
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 1,602,675
2,150,000 6.250%, 1/01/20 1/02 at 102 AA 2,317,636
3,000,000 Craven Regional Medical Authority (North Carolina), Insured Health Care
Facilities Revenue Bonds, Series 1993, 5.625%, 10/01/17 10/03 at 102 AAA 3,143,460
2,725,000 County of New Hanover, North Carolina, Hospital Revenue Bonds (New Hanover
Regional Medical Center Project), Series 1993, 4.750%, 10/01/23 10/03 at 102 AAA 2,593,192
1,000,000 North Carolina Medical Care Commission, Hospital Revenue Refunding Bonds
(North Carolina Baptist Hospitals Project), Series 1992A, 6.000%, 6/01/22 6/02 at 102 AA 1,065,060
3,000,000 North Carolina Medical Care Commission, Hospital Revenue Refunding Bonds
(Carolina Medicorp Project), Series 1992, 5.500%, 5/01/15 5/02 at 102 AA 3,082,470
2,275,000 North Carolina Medical Care Commission, Hospital Revenue Bonds (Wake
County Hospital System), Series 1997, 5.375%, 10/01/26 10/07 at 102 AAA 2,342,659
375,000 North Carolina Medical Care Commission Hospital Revenue Refunding Bonds
(Annie Penn Memorial Hospital), Series 1998, 5.375%, 1/01/22 1/08 at 102 Baa3 374,243
2,280,000 Board of Governors of the University of North Carolina, University of
North Carolina Hospitals at Chapel Hill Revenue Bonds, Series 1992,
6.000%, 2/15/24 2/02 at 102 AA 2,436,385
4,090,000 Board of Governors of The University of North Carolina, University of
North Carolina Hospitals at Chapel Hill Revenue Bonds, Series 1996,
5.250%, 2/15/26 2/06 at 102 AA 4,126,810
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.8%
1,000,000 Housing Authority of the City of Asheville (North Carolina), Multifamily Housing
Revenue Bonds (GNMA - Collateralized - Woodridge Apartments), Series 1997,
5.800%, 11/20/39 (Alternative Minimum Tax) 11/07 at 102 AAA 1,046,260
1,000,000 City of Charlotte, North Carolina, Mortgage Revenue Refunding Bonds
(FHA Insured Mortgage Loan - Tryon Hills Apartments Project), Series 1993A,
5.875%, 1/01/25 1/03 at 105 AAA 1,052,030
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 678,002
1,000,000 5.900%, 7/01/26 1/03 at 102 AA 1,041,360
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family - 10.7%
$ 5,815,000 North Carolina Housing Finance Agency, Single Family Revenue Bonds, Series X
(1985 Resolution), 6.700%, 9/01/26 (Alternative Minimum Tax) 3/04 at 102 AA $6,252,346
3,145,000 North Carolina Housing Finance Agency, Single Family Revenue Bonds, Series V
(1985 Resolution), 6.800%, 9/01/25 (Alternative Minimum Tax) 9/02 at 102 AA 3,351,658
700,000 North Carolina Housing Finance Agency, Single Family Revenue Bonds, Series-M
(1985 Resolution), 7.850%, 9/01/28 (Alternative Minimum Tax) 3/00 at 102 AA 730,576
4,220,000 North Carolina Housing Finance Agency, Single Family Revenue Bonds, Series HH
(1985 Resolution), 6.300%, 3/01/26 (Alternative Minimum Tax) 3/06 at 102 AA 4,525,064
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 7.0%
2,000,000 Orange County, General Obligation School Bonds, Series 1994,
5.500%, 2/01/11 2/05 at 102 AA+ 2,158,140
6,250,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 (General
Obligation Bonds), 5.400%, 7/01/25 7/06 at 101 1/2 A 6,513,188
1,100,000 County of Transylvania, North Carolina, Refunding Bonds, Series 1998
(General Obligation), 4.750%, 2/01/16 2/08 at 102 AAA 1,092,916
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 16.7%
2,500,000 Centennial Authority, North Carolina, Hotel Tax Revenue Bonds (Arena Project),
Series 1997, 5.125%, 9/01/19 9/07 at 102 AAA 2,545,550
6,000,000 City of Charlotte, North Carolina, Refunding Certificates of Participation
(Convention Facility Project), Series 1993C, 5.250%, 12/01/20 12/03 at 102 AAA 6,100,080
2,180,000 The City of Concord, North Carolina, Certificates of Participation,
Series 1996A, 6.125%, 6/01/21 6/06 at 102 AAA 2,439,878
2,390,000 County of Duplin, North Carolina, Certificates of Participation (Law
Enforcement Project and Public Schools Project), Series 1993,
5.250%, 8/01/14 8/03 at 102 AAA 2,471,953
3,970,000 Durham, North Carolina, Certificates of Participation, Water Utility
Improvements, 6.375%, 7/15/12 7/02 at 102 AA 4,394,353
5,000,000 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds,
Series Y of 1996, 5.500%, 7/01/26 7/06 at 101 1/2 A 5,240,700
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 10.9%
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*** 1,077,250
2,940,000 6.250%, 1/01/20 (Pre-refunded to 1/01/02) 1/02 at 102 AA*** 3,209,598
3,000,000 North Carolina Medical Care Commission, Hospital Revenue Refunding Bonds,
Series 1992-A (Alamance Health Services Inc Project), 6.375%, 8/15/12
(Pre-refunded to 8/15/02) 8/02 at 102 AAA 3,326,220
2,855,000 North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue
Bonds, Series 1980, 10.500%, 1/01/10 No Opt. Call AAA 3,928,451
2,400,000 Puerto Rico Commonwealth Highway Authority, Highway Revenue Bonds,
Series 1990-Q, 6.000%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 100 A*** 2,495,664
1,035,000 County of Wake, North Carolina, Hospital System Revenue Bonds, Series 1993,
5.125%, 10/01/26 10/03 at 102 AAA 1,075,417
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 10.1%
5,250,000 City of Fayetteville, North Carolina, Public Works Commission Revenue
Refunding Bonds, Series 1993, 4.750%, 3/01/14 3/03 at 100 AAA 5,254,620
5,000,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds,
Series 1993-D, 5.600%, 1/01/16 1/03 at 102 Baa1 5,078,200
1,500,000 North Carolina Eastern Municipal Power Agency, Power System Revenue Bonds,
Series 1985-G, 5.750%, 12/01/16 9/03 at 102 1/2 Baa1 1,562,940
North Carolina Municipal Power Agency Number 1, Catawba Electric
Revenue Bonds, Series 1992:
1,000,000 6.000%, 1/01/04 1/03 at 102 A- 1,078,770
1,000,000 5.750%, 1/01/15 1/03 at 100 A- 1,031,270
<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, Series 1996,
5.700%, 8/01/25 8/06 at 102 AAA $1,076,680
4,250,000 Metropolitan Sewerage District of Buncombe County (North Carolina),
Sewerage System Revenue Refunding Bonds, Series 1993A,
5.500%, 7/01/22 7/03 at 102 AAA 4,444,140
1,000,000 City of Greensboro, North Carolina, Combined Enterprise System Revenue Bonds,
Series 1995A, 5.375%, 6/01/19 6/05 at 102 AA- 1,042,240
1,280,000 City of Lincolnton, North Carolina, Combined Enterprise System Revenue Bonds,
Series 1996, 5.375%, 5/01/16 11/06 at 102 AAA 1,343,168
3,400,000 Orange Water and Sewer Authority (North Carolina), Water and Sewer System
Revenue and Revenue Refunding Bonds, Series 1993, 5.200%, 7/01/16 7/03 at 102 AA 3,461,470
2,180,000 County of Union, North Carolina, Enterprise Systems Revenue Bonds,
Series 1996, 5.500%, 6/01/21 6/06 at 102 AAA 2,306,440
- ------------------------------------------------------------------------------------------------------------------------------------
$ 129,480,000 Total Investments - (cost $127,611,644) - 98.3% 136,461,595
=============
Temporary Investments in Short-Term Municipal Securities - 0.2%
$ 300,000 Raleigh - Durham Airport Authority, Special Facility Refunding Revenue Bonds
============= (American Airlines Project), Series 1995B, Variable Rate Demand Bonds,
3.350%, 11/01/05+ A-1+ 300,000
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 2,101,742
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $138,863,337
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** 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.
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
Nuveen Virginia Premium Income Municipal Fund (NPV)
November 30, 1998
(Unaudited)
<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 Revenue
Bonds (Albion Enterprises, L.L.C. Project), Series 1998A, 6.400%, 1/01/14
(Alternative Minimum Tax) 1/03 at 102 N/R $2,005,640
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 8.2%
Industrial Development Authority of the City of Lynchburg,
Virginia, Educational Facilities Revenue Bonds (Randolph - Macon
Womens College), Series 1993:
2,940,000 5.875%, 9/01/13 9/03 at 102 A- 3,125,396
3,000,000 5.875%, 9/01/23 9/03 at 102 A- 3,158,250
3,500,000 The Rector and Visitors of The University of Virginia, General Revenue
Pledge Bonds, Series 1998A, 5.000%, 6/01/24 6/08 at 101 AA+ 3,514,595
2,750,000 Virginia College Building Authority, Educational Facilities Revenue Bonds
(The Washington and Lee University Project), Series of 1994, 5.800%, 1/01/24 1/04 at 102 AAA 3,032,013
3,000,000 Virginia College Building Authority, Educational Facilities Revenue Bonds,
(University of Richmond Project), Series of 1994, 5.550%, 11/01/19 11/04 at 100 AA 3,233,010
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 13.0%
4,850,000 Industrial Development Authority of Fairfax County, Virginia, Hospital Revenue
Refunding Bonds (Inova Health System Hospitals Project), Series 1993A,
5.000%, 8/15/23 No Opt. Call AA 4,943,169
1,440,000 Industrial Development Authority of Fairfax County, Virginia, Health Care
Revenue Bonds (Inova Health System Project), Series 1996A,
6.000%, 8/15/26 8/06 at 102 AA 1,580,386
1,000,000 Industrial Development Authority of Fairfax County, Virginia, Health Care
Revenue Refunding Bonds (Inova Health System Project), Series 1998A,
5.000%, 8/15/25 2/08 at 101 AA 980,420
4,650,000 Bon Secours Health System Obligated Group, Industrial Development
Authority of the County of Hanover (Virginia), Hospital Revenue Bonds,
Series 1995 (Bon Secours Health System Projects), 5.500%, 8/15/25 8/05 at 102 AAA 4,857,204
1,500,000 Industrial Development Authority of the County of Henrico, Virginia,
Health Care Revenue Bonds (Bon Secours Health System Projects),
Series 1996, 6.250%, 8/15/20 No Opt. Call AAA 1,774,230
3,000,000 Medical College of Virginia Hospitals Authority, General Revenue Bonds,
Series 1998, 5.125%, 7/01/23 7/08 at 102 AAA 3,005,070
2,500,000 Industrial Development Authority of the City of Norfolk (Virginia), Hospital
Revenue and Refunding Bonds (Sentara Hospitals - Norfolk), Series 1994A,
6.500%, 11/01/13 11/04 at 102 AA 2,825,625
5,000,000 City of Virginia Beach Development Authority (Virginia), Hospital Revenue
Bonds (Sentara Bayside Hospital), Series 1991, 6.300%, 11/01/21 11/01 at 102 AA 5,404,950
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.3%
1,040,000 Industrial Development Authority of Arlington County, Virginia, Multi-Family
Housing Mortgage Revenue Bonds (Arlington Housing Corporation),
1995 Series, 5.700%, 7/01/07 7/05 at 102 A 1,108,193
4,445,000 Hampton Redevelopment and Housing Authority, Multifamily Housing
Revenue Refunding Bonds, Series 1994 (Chase Hampton II Apartments),
7.000%, 7/01/24 7/02 at 104 Baa2 4,823,847
2,355,000 Suffolk Redevelopment and Housing Authority, Mortgage Revenue Refunding
Bonds, Series 1993 (FHA Insured Mortgage Loan - Wilson Pines Apartments
Section 8 Assisted Project), 6.125%, 1/01/23 1/01 at 100 AAA 2,421,270
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 9.7%
1,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds,
1992 Series B, Subseries B-3, 6.750%, 7/01/21 (Alternative Minimum Tax) 1/02 at 102 AA+ 1,054,810
5,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds,
1992 Series B, Subseries B-4, 6.550%, 1/01/27 (Alternative Minimum Tax) 1/02 at 102 AA+ 5,257,650
3,240,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds,
1992 Series B, Subseries B-5, 6.300%, 1/01/27 (Alternative Minimum Tax) 1/02 at 102 AA+ 3,388,489
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
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+ $4,174,720
2,945,000 6.250%, 1/01/27 (Alternative Minimum Tax) 1/02 at 102 AA+ 3,072,136
2,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds,
1996 Series, Subseries G-1, 5.300%, 1/01/22 (Alternative Minimum Tax) 1/08 at 102 AA+ 2,022,480
- ------------------------------------------------------------------------------------------------------------------------------------
Long Term Care - 1.8%
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 1,358,870
2,000,000 5.750%, 1/01/27 1/03 at 102 N/R 2,008,020
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 6.4%
2,500,000 City of Portsmouth, Virginia, General Obligation Bonds, Public Utility
Refunding Bonds, Series 1993, 5.500%, 8/01/19 8/03 at 102 AA- 2,590,750
5,700,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996
(General Obligation Bonds), 5.400%, 7/01/25 7/06 at 101 1/2 A 5,940,027
1,700,000 City of Richmond, Virginia, General Obligation Public Improvement Bonds,
Series 1993B, 5.500%, 7/15/23 7/03 at 102 AA 1,764,311
2,000,000 City of Winchester, Virginia, General Obligation Public Improvement and
Refunding Bonds, Series of 1994, 5.500%, 1/15/14 1/04 at 102 AA 2,127,540
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 6.1%
County of Cumberland, Virginia, Certificates of Participation, Series 1997:
1,075,000 6.200%, 7/15/12 No Opt. Call N/R 1,161,978
1,350,000 6.375%, 7/15/17 No Opt. Call N/R 1,477,346
500,000 Industrial Development Authority of Dinwiddie County, Virginia, Lease
Revenue Bonds (Dinwiddie County School Facilities Project), Series 1997A,
6.000%, 2/01/18 2/07 at 102 N/R 525,395
5,000,000 Hampton Roads (Virginia), Regional Jail Authority, Regional Jail Facility
Revenue Bonds, Series 1996A, 5.500%, 7/01/24 7/06 at 102 AAA 5,279,950
3,000,000 Prince William County Park Authority (Virginia), Revenue Bonds, Series 1994,
6.875%, 10/15/16 10/04 at 102 A- 3,406,080
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 6.3%
1,000,000 Capital Region Airport Commission, Richmond (Virginia), International
Airport Projects, Airport Revenue Bonds, Series 1995A, 5.625%, 7/01/25 7/05 at 102 AAA 1,063,600
1,900,000 Metropolitan Washington (D.C.) Airports Authority, Airport System Revenue
Bonds, Series 1992A, 6.625%, 10/01/19 (Alternative Minimum Tax) 10/02 at 102 AAA 2,098,588
2,400,000 Metropolitan Washington (D.C.) Airports Authority, Airport System Revenue
Bonds, Series 1997A, 5.375%, 10/01/23 10/07 at 101 AA- 2,487,648
6,315,000 Virginia Port Authority, Port Facilities Revenue Bonds, Series 1997,
5.600%, 7/01/27 (Alternative Minimum Tax) 7/07 at 101 AAA 6,629,171
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 11.3%
5,250,000 Chesapeake Bay Bridge and Tunnel District, General Resolution Revenue Bonds,
Refunding Series 1991, 6.375%, 7/01/22 (Pre-refunded to 7/01/01) 7/01 at 102 AAA 5,701,553
4,085,000 Fairfax County (Virginia), Water Authority, Water Refunding Revenue Bonds,
Series 1992, 5.750%, 4/01/29 (Pre-refunded to 4/01/02) 4/02 at 100 AAA 4,344,683
3,500,000 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds
(Series T), 6.500%, 7/01/22 (Pre-refunded to 7/01/02) 7/02 at 101 1/2 AAA 3,885,315
125,000 Richmond Metropolitan Authority (Virginia), Expressway Revenue and
Refunding Bonds, Series 1992-A, 5.750%, 7/15/22
(Pre-refunded to 7/15/02) 7/02 at 100 AAA 133,591
7,035,000 Commonwealth Transportation Board, Commonwealth of Virginia Transportation
Revenue Bonds, Series 1995A (Northern Virginia Transportation District
Program), 6.250%, 5/15/17 (Pre-refunded to 5/15/04) 5/04 at 101 AA*** 7,892,074
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities - 15.8%
$ 750,000 Fairfax County Economic Development Authority (Virginia), Resource Recovery
Revenue Bonds, Series 1988-A (Ogden Martin Systems of Fairfax Inc. Project),
7.750%, 2/01/11 (Alternative Minimum Tax) 2/99 at 103 A+ $ 777,795
5,060,000 Halifax County Industrial Development Authority (Old Dominion
Electric Cooperative), 6.350%, 12/01/07 (Alternative Minimum Tax) 12/02 at 102 A+ 5,465,306
2,250,000 Industrial Development Authority of the Town of Louisa, Virginia, Pollution
Control Revenue Bonds (Virginia Electric and Power Company Project),
Series 1994, 5.450%, 1/01/24 1/04 at 102 A 2,292,210
5,000,000 City of Richmond, Virginia, Public Utility Revenue and Refunding Bonds,
Series 1998A, 5.125%, 1/15/28 1/08 at 101 A+ 4,969,750
10,300,000 Valley Resource Authority of the City of Roanoke, Virginia, Solid Waste
System Revenue Bonds, Series 1992, 5.750%, 9/01/12 9/02 at 102 A+ 10,893,38
6,150,000 Southeastern Public Service Authority of Virginia, Senior Revenue Bonds,
Series 1993 (Regional Solid Waste System), 6.000%, 7/01/17
(Alternative Minimum Tax) 7/03 at 102 A- 6,447,291
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 14.7%
1,500,000 Albemarle County Service Authority (Virginia), Water and Sewer System
Revenue Refunding Bonds, Series of 1993, 5.750%, 8/01/11 8/02 at 102 Aa 1,602,105
5,880,000 Fairfax County (Virginia), Water Authority, Water Refunding Revenue Bonds,
Series 1992, 5.750%, 4/01/29 4/02 at 100 AA 6,122,491
1,000,000 Henrico County, Virginia, Water and Sewer System Refunding Revenue Bonds,
Series 1992, 6.250%, 5/01/13 5/02 at 100 Aa2 1,060,640
1,500,000 Henry County Public Service Authority, Water and Sewer Refunding Revenue
Bonds, Series 1991, 6.250%, 11/15/19 11/01 at 101 AAA 1,609,680
City of Norfolk, Virginia, Water Revenue Bonds, Series 1995:
6,200,000 5.875%, 11/01/20 11/05 at 102 AAA 6,741,508
2,365,000 5.900%, 11/01/25 11/05 at 102 AAA 2,583,857
2,595,000 Upper Occoquan Sewage Authority (Virginia), Regional Sewerage System Revenue
Refunding Bonds, Series of 1993, 5.000%, 7/01/21 1/04 at 102 AAA 2,572,346
1,920,000 Virginia Resources Authority, Sewer System Revenue Refunding Bonds,
Series 1998 (Harrisonburg - Rockingham Regional Sewer Authority),
5.000%, 5/01/18 5/08 at 101 AA 1,911,648
3,955,000 Virginia Resources Authority, Water and Sewer System Revenue Bonds,
1995 Series A (Sussex County Project), 5.600%, 10/01/25 10/05 at 102 AA 4,383,088
- ------------------------------------------------------------------------------------------------------------------------------------
$ 181,365,000 Total Investments - (cost $178,158,572) - 98.6% 192,073,141
=============
Other Assets Less Liabilities - 1.4% 2,746,903
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $194,820,044
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** 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>
<TABLE>
Statement of Net Assets
November 30, 1998
(Unaudited)
<CAPTION>
Georgia Maryland North Carolina Virginia
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in municipal securities, at market value
(note 1) $81,484,018 $232,814,831 $136,461,595 $192,073,141
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value
(note 1) 1,800,000 -- 300,000 --
Cash -- -- 64,047 382,506
Receivables:
Interest 1,591,713 4,499,712 2,604,989 3,168,151
Investments sold -- 1,020,000 -- --
Other assets 8,969 15,439 10,215 16,240
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 84,884,700 238,349,982 139,440,846 195,640,038
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 1,261,090 110,456 -- --
Payable for investments purchased -- 3,851,576 -- --
Accrued expenses:
Management fees (note 6) 44,324 123,163 73,786 103,042
Other 53,595 111,793 77,559 108,139
Preferred share dividends payable 13,862 34,862 13,340 20,279
Common share dividends payable 250,147 666,794 412,824 588,534
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,623,018 4,898,644 577,509 819,994
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $83,261,682 $233,451,338 $138,863,337 $194,820,044
====================================================================================================================================
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 3,733,544 10,418,655 6,254,913 8,591,739
====================================================================================================================================
Netasset value per Common share outstanding (net assets less
Preferred shares at liquidation value, divided by
Common shares outstanding) $ 14.85 $ 14.81 $ 14.72 $ 15.25
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Six Months Ended November 30, 1998
(Unaudited)
<CAPTION>
Georgia Maryland North Carolina Virginia
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (note 1) $2,242,850 $6,166,170 $3,754,337 $5,330,256
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 269,439 748,723 449,025 625,897
Preferred shares - auction fees 34,845 99,146 58,661 79,969
Preferred shares - dividend disbursing agent fees 5,014 10,027 5,014 10,027
Shareholders' servicing agent fees and expenses 3,914 16,478 8,099 15,246
Custodian's fees and expenses 17,846 26,412 20,516 23,429
Trustees' fees and expenses (note 6) 390 1,094 650 906
Professional fees 8,617 8,822 8,692 8,765
Shareholders' reports - printing and mailing expenses 15,115 38,056 22,507 30,462
Stock exchange listing fees 1,739 12,171 8,116 8,175
Investor relations expense 3,559 10,616 6,039 8,854
Other expenses 4,091 7,422 5,153 6,549
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 364,569 978,967 592,472 818,279
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 1,878,281 5,187,203 3,161,865 4,511,977
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment
transactions (notes 1 and 4) 22,808 432,341 (3,441) 234,657
Net change in unrealized appreciation or depreciation
of investments 1,004,664 2,404,755 1,475,413 2,199,751
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 1,027,472 2,837,096 1,471,972 2,434,408
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $2,905,753 $8,024,299 $4,633,837 $6,946,385
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
(Unaudited)
<CAPTION>
Georgia Maryland
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
11/30/98 5/31/98 11/30/98 5/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 1,878,281 $ 3,782,398 $ 5,187,203 $ 10,294,731
Net realized gain (loss) from investment
transactions (notes 1 and 4) 22,808 262,947 432,341 209,020
Net change in unrealized appreciation or depreciation
of investments 1,004,664 3,091,525 2,404,755 7,993,591
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 2,905,753 7,136,870 8,024,299 18,497,342
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (1,492,268) (2,940,684) (3,996,901) (7,965,280)
Preferred shareholders (411,555) (910,706) (1,146,643) (2,466,134)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (1,903,823) (3,851,390) (5,143,544) (10,431,414)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions 107,844 169,532 382,704 643,736
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 1,109,774 3,455,012 3,263,459 8,709,664
Net assets at beginning of period 82,151,908 78,696,896 230,187,879 221,478,215
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $83,261,682 $82,151,908 $ 233,451,338 $230,187,879
===================================================================================================================================
Balance of undistributed net investment income
at end of period $ 155,505 $ 181,047 $ 407,064 $ 363,405
===================================================================================================================================
<PAGE>
<CAPTION>
North Carolina Virginia
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
11/30/98 5/31/98 11/30/98 5/31/98
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 3,161,865 $ 6,359,194 $ 4,511,977 $ 9,024,501
Net realized gain (loss) from investment
transactions (notes 1 and 4) (3,441) 105,277 234,657 815,729
Net change in unrealized appreciation or depreciation
of investments 1,475,413 6,157,216 2,199,751 7,074,942
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 4,633,837 12,621,687 6,946,385 16,915,172
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (2,475,894) (4,942,333) (3,526,226) (7,014,079)
Preferred shareholders (675,110) (1,588,477) (1,003,459) (2,065,746)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (3,151,004) (6,530,810) (4,529,685) (9,079,825)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions 110,159 250,831 480,985 990,319
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 1,592,992 6,341,708 2,897,685 8,825,666
Net assets at beginning of period 137,270,345 130,928,637 191,922,359 183,096,693
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $138,863,337 $137,270,345 $194,820,044 $191,922,359
====================================================================================================================================
Balance of undistributed net investment income
at end of period $ 229,040 $ 218,179 $ 379,154 $ 396,862
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
(Unaudited)
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
November 30, 1998, Maryland had a when-issued purchase commitment of $3,851,576.
There were no such outstanding purchase commitments in any of the other Funds.
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. Net realized capital gain and market discount distributions are subject
to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss 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.
<PAGE>
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:
<TABLE>
<CAPTION>
Georgia Maryland North Carolina Virginia
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Number of shares:
Series T -- -- -- 832
Series W -- 1,404 -- --
Series Th 1,112 1,760 1,872 1,720
- --------------------------------------------------------------------------------
Total 1,112 3,164 1,872 2,552
================================================================================
</TABLE>
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the six months ended November 30, 1998.
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.
2. Fund Shares
Transactions in Common shares were as follows:
<TABLE>
<CAPTION>
Georgia Maryland
- -------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
11/30/98 5/31/98 11/30/98 5/31/98
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 6,971 11,603 24,819 44,290
=============================================================================================================
<CAPTION>
North Carolina Virginia
- -------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
11/30/98 5/31/98 11/30/98 5/31/98
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 6,993 16,963 29,518 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 December 28, 1998, to shareholders of
record on December 15, 1998, as follows:
<TABLE>
<CAPTION>
Georgia Maryland North Carolina Virginia
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share $.0670 $.0640 $.0660 $.0685
================================================================================
</TABLE>
<PAGE>
4. Securities Transactions
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments for the six months ended November
30, 1998, were as follows:
<TABLE>
<CAPTION>
North
Georgia Maryland Carolina Virginia
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Investments in municipal securities $2,181,508 $29,997,876 $ -- $10,952,270
Temporary municipal investments 4,100,000 3,300,000 3,100,000 500,000
Sales and Maturities:
Investments in municipal securities 2,983,390 25,244,231 75,000 9,972,855
Temporary municipal investments 2,800,000 3,700,000 2,900,000 1,500,000
=========================================================================================================
</TABLE>
At November 30, 1998, 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, 1998, the Funds' last fiscal year end, 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:
<TABLE>
<CAPTION>
North
Georgia Maryland Carolina Virginia
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
2002 $ -- $2,996,315 $ -- $1,211,877
2003 1,111,467 1,019,929 2,383,842 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 $3,295,037 $7,131,019 $3,653,234 $4,509,985
=========================================================================================================
</TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 1998, were as follows:
<TABLE>
<CAPTION>
North
Georgia Maryland Carolina Virginia
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $6,953,971 $15,310,822 $8,849,951 $13,914,569
depreciation -- (1,013) -- --
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $6,953,971 $15,309,809 $8,849,951 $13,914,569
=========================================================================================================
</TABLE>
6. Management Fee and Other Transactions with Affiliates
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net asset value of each Fund:
Average Daily Net Asset Value 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.
<PAGE>
7. Composition of Net Assets At November 30, 1998, net assets consisted of:
<TABLE>
<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 37,335 104,187 62,549 85,917
Paid-in surplus 51,587,099 145,350,272 86,578,472 120,920,841
Balance of undistributed net investment income 155,505 407,064 229,040 379,154
Accumulated net realized gain (loss) from
investment transactions (3,272,228) (6,819,994) (3,656,675) (4,280,437)
Net unrealized appreciation of investments 6,953,971 15,309,809 8,849,951 13,914,569
- ---------------------------------------------------------------------------------------------------------
Net assets $83,261,682 $233,451,338 $138,863,337 $194,820,044
=========================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
=========================================================================================================
</TABLE>
<PAGE>
<TABLE>
Financial Highlights
(Unaudited)
Selected data for a Common share outstanding throughout each
period is as follows:
<CAPTION>
Investment Operations
----------------------------
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
<S> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
1999 (a) $14.58 $ .50 $ .28 $ .78
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
1994 13.96 .78 (1.57) (.79)
<CAPTION>
Maryland
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) 14.54 .50 .26 .76
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
1994 14.13 .89 (1.30) (.41)
<CAPTION>
North Carolina
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) 14.48 .51 .24 .75
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
1994 14.00 .75 (1.53) (.78)
<CAPTION>
Virginia
<S> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) 14.96 .53 .29 .82
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
1994 14.18 .94 (1.25) (.31)
<PAGE>
<CAPTION>
Less Distributions
-------------------------------------------------------------------------
Net Net
Investment Investment Capital Capital
Income Income Gain Gain
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
<S> <C> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
1999 (a) $ (.40) $(.11) $-- $-- $ (.51)
1998 (.79) (.24) -- -- (1.03)
1997 (.77) (.23) -- -- (1.00)
1996 (.73) (.24) -- -- (.97)
1995 (.73) (.25) -- -- (.98)
1994 (.62) (.14) -- -- (.76)
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) (.38) (.11) -- -- (.49)
1998 (.77) (.24) -- -- (1.01)
1997 (.76) (.24) -- -- (1.00)
1996 (.74) (.26) -- -- (1.00)
1995 (.74) (.26) -- -- (1.00)
1994 (.75) (.16) -- -- (.91)
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) (.40) (.11) -- -- (.51)
1998 (.79) (.25) -- -- (1.04)
1997 (.77) (.24) -- -- (1.01)
1996 (.70) (.26) -- -- (.96)
1995 (.73) (.24) -- -- (.97)
1994 (.60) (.14) -- -- (.74)
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) (.41) (.12) -- -- (.53)
1998 (.82) (.24) -- -- (1.06)
1997 (.81) (.24) -- -- (1.05)
1996 (.79) (.25) -- -- (1.04)
1995 (.80) (.26) -- -- (1.06)
1994 (.79) (.15) -- -- (.94)
<PAGE>
<CAPTION>
Total Returns
--------------------------------
Organization and
Offering Costs and
Preferred Share Ending
Underwriting Net Asset Ending Based on Based on Net
Discounts Value Market Value Market Value** Asset Value**
<S> <C> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
1999 (a) $-- $14.85 $16.3125 11.08% 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
1994 (.15) 12.26 12.6250 (12.09) (8.05)
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) -- 14.81 16.2500 10.56 4.54
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
1994 (.14) 12.67 12.5000 (13.62) (5.39)
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) -- 14.72 16.6875 14.03 4.44
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
1994 (.14) 12.34 12.5000 (13.81) (7.79)
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) -- 15.25 16.5000 4.93 4.73
1998 -- 14.96 16.1250 17.30 12.66
199 -- 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
1994 (.14) 12.79 13.1250 (8.35) (4.58)
<PAGE>
<CAPTION>
Ratios/Supplemental Data
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses to Income to Expenses to Income to
Average Average Average Total Average Total
Ending Net Assets Net Assets Net Assets Net Assets Portfolio
Net Assets Applicable to Applicable to Including Including Turnover
(000) Common Shares++ Common Shares++ Preferred++ Preferred++ Rate
<S> <C> <C> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
1999 (a) $ 83,262 1.32%* 6.83%* .88%* 4.53%* 3%
1998 82,152 1.33 7.10 .87 4.66 17
1997 78,697 1.40 7.52 .90 4.83 30
1996 76,026 1.42 7.53 .91 4.82 14
1995 77,334 1.54 8.14 .95 5.01 35
1994 73,042 1.39 5.68 .97 3.97 31
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) 233,451 1.28* 6.77* .84* 4.46* 12
1998 230,188 1.29 6.93 .84 4.52 6
1997 221,478 1.32 7.38 .85 4.72 6
1996 215,690 1.36 7.33 .87 4.68 18
1995 217,162 1.59 8.02 .97 4.92 25
1994 117,506 1.36 6.34 .92 4.30 19
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) 138,863 1.30* 6.91* .86* 4.57*--
1998 137,270 1.30 7.17 .85 4.70 9
1997 130,929 1.37 7.72 .87 4.92 19
1996 126,196 1.38 7.49 .88 4.75 39
1995 128,815 1.45 8.09 .89 4.96 32
1994 123,181 1.34 5.52 .93 3.85 19
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C> <C>
Year Ended 5/31:
1999 (a) 194,820 1.26* 6.94* .84* 4.65* 5
1998 191,922 1.27 7.20 .84 4.77 19
1997 183,097 1.33 7.65 .86 4.95 16
1996 176,649 1.35 7.64 .87 4.92 27
1995 178,394 1.58 8.25 .98 5.13 45
1994 116,904 1.37 6.67 .93 4.56 28
* Annualized.
** 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.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended November 30, 1998.
</TABLE>
<PAGE>
Building a Better Portfolio Can Make You a Successful Investor
Nuveen Family of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
Growth
Nuveen Rittenhouse Growth Fund
Growth and Income
European Value Fund
Growth and
Income Stock Fund
Balanced Stock
and Bond Fund
Balanced Municipal
and Stock Fund
Tax-Free Income
National Funds
Long-Term
Insured
Intermediate-Term
Limited-Term
State Funds
Arizona
California
Colorado
Connecticut
Florida
Georgia
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
Wisconsin
Successful investors know that a well-diversified portfolio - one that balances
different types of investments, levels of risk and tax management - can be the
foundation for building and sustaining wealth. That's why Nuveen offers you and
your financial adviser a wide range of quality investments that can help you
build a better portfolio in the pursuit of your financial goals
Exchange-Traded Funds
Nuveen Exchange-Traded Funds offer investors actively managed portfolios of
investment-grade quality municipal bonds. The fund shares are listed and traded
on the New York and American stock exchanges. Exchange-traded funds provide the
investment convenience, price visibility and liquidity of common stocks.
MuniPreferred(R)
Nuveen MuniPreferred offers investors a AAA rated investment with an attractive
tax-free yield for the cash reserves portion of an investment portfolio.
MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen
dual-class exchange-traded funds and are available for national as well as a
wide variety of state-specific portfolios.
Mutual Funds
Nuveen offers a family of equity, balanced and municipal bond funds featuring
Premier Advisers(SM) including Institutional Capital Corporation, Rittenhouse
Financial Services, and Nuveen Advisory Corp. Each brings a specialized
expertise in a particular investment style or asset class, time-tested
investment strategies and a focus on consistent, long-term performance. With
Nuveen's Premier Adviser funds, you have all the advantages of a family of funds
plus the benefits of specialized investment expertise.
Private Asset Management
Rittenhouse Financial Services and Nuveen Asset Management offer comprehensive,
customized investment management solutions to investors with assets of $250,000
or more to invest. A range of actively managed growth, balanced and municipal
income-oriented portfolios are available, all based upon a disciplined
investment philosophy.
Defined Portfolios
Nuveen Defined Portfolios are fixed portfolios of quality securities that are a
convenient, attractive alternative to purchasing individual securities. They
provide low-cost diversification to reduce risk, while also offering
experienced, professional security selection and surveillance. In addition,
Nuveen Defined Portfolios provide daily liquidity at that day's net asset value
for quick access to your assets.
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
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, our trading, fund management and pricing systems at
Nuveen - the systems that directly affect our investors and their financial
advisers - have been updated or replaced to address the Year 2000 concerns.
We continue to work closely with our transfer agent, custodian and other service
partners to monitor readiness and address other remaining systems issues. Our
initial testing indicates we are on schedule, and we have targeted year-end 1998
to complete verification of vendor compliance and service partner readiness.
However, we can give no complete assurance at this time that the steps we have
taken will be sufficient to prevent any problems that would impact the Nuveen
Exchange-Traded Funds.
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 six-months ended November 30, 1998. 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
1898 1998
OUR SECOND CENTURY
helping investors sustain the wealth of a lifetime.(TM)
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FSA-2-11-98
