NUVEEN Exchange-Traded Funds
NOVEMBER 30, 1999
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: Two men standing by a horse.
<PAGE>
Highlights
As of November 30, 1999
Credit Quality Performance Highlights
Nuveen Georgia Premium Income Municipal Fund (NPG)
o Taxable-equivalent yield on share price
of 9.08% *
o Has provided steady or increasing tax-free
dividends for 58 consecutive months
Pie Chart:
AAA/U.S. Guaranteed 63%
AA 19%
A 18%
Nuveen Maryland Premium Income Municipal Fund (NMY)
o Taxable-equivalent yield on share price
of 9.25% *
o Has provided steady or increasing tax-free
dividends for 70 consecutive months
Pie Chart:
AAA/U.S. Guaranteed 61%
AA 18%
A 13%
BBB/NR 8%
Nuveen North Carolina Premium Income Municipal Fund (NNC)
o Taxable-equivalent yield on share price
of 9.15% *
o Has provided steady or increasing tax-free
dividends for 58 consecutive months
Pie Chart:
AAA/U.S. Guaranteed 32%
AA 39%
A 17%
BBB/NR 12%
Nuveen Virginia Premium Income Municipal Fund (NPV)
o Taxable-equivalent yield on share price
of 9.11% *
o Has provided steady or increasing tax-free
dividends for 78 consecutive months
Past performance is not predictive of future
results
Pie Chart:
AAA/U.S. Guaranteed 49%
AA 26%
A 17%
BBB/NR 8%
Contents
1 Dear Shareholder
4 NPG Commentary and Overview
7 NMY Commentary and Overview
10 NNC Commentary and Overview
13 NPV Commentary and Overview
16 Portfolio of Investments
30 Statement of Net Assets
31 Statement of Operations
32 Statement of Changes in Net Assets
34 Notes to Financial Statements
38 Financial Highlights
40 Build Your Wealth Automatically
41 Fund Information
* For investors in the 31% federal plus applicable state income tax bracket.
See your fund's Performance Overview in this report for more information.
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Dear Shareholder
I am pleased to report to you on the performance of your Nuveen Exchange-Traded
Fund. Providing a stable, attractive tax-free dividend is the Fund's main
objective, and over the past six months, your Fund continued to achieve this
goal. During the period covered by this report, we have seen some shifts in the
U.S. investment climate and the fixed-income environment in which your Nuveen
Exchange-Traded Fund operates. I appreciate the opportunity to review the
current investment environment with you, as does the portfolio manager of your
Fund, who discusses fund performance later in this report.
A CHALLENGING INVESTMENT ENVIRONMENT
The U.S. economy enjoyed its ninth consecutive year of continuous expansion,
characterized by surprisingly robust growth, benign inflation, and unemployment
levels that remained among the lowest in three decades. However, concerns about
the persistent pace of economic expansion continued to test the new paradigm,
which holds that the improvements in productivity achieved through technology
enable us to have both economic growth and low inflation at the same time. As
investors watched and reacted to each announcement concerning economic
statistics, volatility increased, especially in the equity markets, and the
spectre of inflation seemed to lurk behind every report. Especially worrisome to
the Federal Reserve was the possibility that tight labor markets would
eventually have an inflationary effect on wages and, consequently, on consumer
prices.
In an effort to pre-empt this threat of inflation, the Fed moved to raise
interest rates by a quarter-point on three separate occasions between June and
November 1999. This brought the federal funds rate, which represents the amount
banks charge one another on overnight loans and serves as a standard for
short-term market rates, from 4.75% to 5.50%. These increases offset the three
rate cuts enacted by the Fed a year earlier. At its November meeting, the Fed
announced that it would shift to a neutral stance following the latest interest
rate increase, giving the markets some respite during the Y2K transition.
However, the Fed's indication that it would continue to closely watch the pace
of economic growth for any signs of inflationary pressure left the door open for
additional tightenings. In January 2000, the annual rotation among members of
the Fed's Open Market Committee, the body that ultimately decides interest rate
policy, will put several members considered more "hawkish" on inflation-
fighting into voting slots. This could tilt policy toward further rate increases
in the new year.
<PAGE>
MUNICIPAL BOND PERFORMANCE
Over the past fiscal year, our exchange-traded municipal bond funds continued to
offer attractive, stable income in a market that places a high premium on yield.
At the end of November 1999, long-term municipal yields, represented by the Bond
Buyer 20, were 98% of 30-year Treasury yields, compared with the historical
average of 86% for the period 1986-1999. For investors, this meant that quality
long-term municipal bonds offered yields comparable to those of long-term
Treasury bonds - even before the tax advantages of municipals were taken into
account. Of course, Treasuries are backed by the full faith and credit of the
U.S. government. Even so, on an after-tax basis, municipal bonds continued to
present an exceptionally attractive investment option relative to Treasuries.
During 1999, we saw the supply of municipal bonds drop off from the near-record
levels of 1998. This was largely due to the increase in interest rates, which
deterred municipal governments from issuing new debt and removed much of the
incentive to refund existing bonds. Municipal supply has declined by
approximately 20% from the levels of a year ago. This, in turn, tended to
enhance the attractiveness of the municipal bonds that were brought to market.
We anticipate that demand from individual investors will strengthen as investors
increasingly look at rebalancing their portfolios. With the outlook for tighter
supply and continued demand in the months ahead, Nuveen's established market
position as the leading sponsor of exchange-traded municipal bond funds should
enable us to have excellent access to bond offerings that have the potential to
add value for our shareholders.
A BALANCED PORTFOLIO: ENHANCED GROWTH WITH REDUCED RISK
If you are like most investors today, your goals for investing probably include
capturing high after-tax total returns while moderating risk. To demonstrate the
role that municipal bonds can play in achieving this goal, Nuveen tracked a
balanced portfolio consisting of equities and municipal bonds and compared its
hypothetical investment performance - based on appropriate market indexes and
tax rates - with that of a balanced portfolio composed of equities and taxable
bonds.
Our research showed that, over the past 20 years, the pairing of equities with
municipal bonds provided both superior after-tax total returns and lower levels
of risk than the combination of equities and taxable bonds for investors in high
tax brackets. Incorporating even a 20% allocation of municipal bonds into an
all-equity portfolio cut risk substantially, with only a small reduction in
after-tax total return. Purchasing shares of a Nuveen Exchange-Traded Municipal
Bond Fund provides an easy way to incorporate the benefits of municipal bonds
into a balanced portfolio. It is important to
Sidebar text: "Purchasing shares of a Nuveen Exchange-Traded Municipal Bond Fund
provides an easy way to incorporate the benefits of municipal bonds into a
balanced portfolio."
<PAGE>
note, however, that the past results mentioned in our example relate to bond
indexes and not to any particular product. In addition, they do not necessarily
predict future performance.
NUVEEN FUNDS: AN ANSWER TO YOUR INVESTMENT NEEDS
In light of the recent shifts in the investment environment, your financial
adviser can serve as a valuable resource in helping you determine if adjustments
are needed in your current asset allocation plan and suggesting investments that
can add diversification to your portfolio. By investing in other Nuveen funds,
you can bring balance to your portfolio and gain exposure to the different types
of investments that can enhance your potential for success. Your adviser can
also establish a reinvestment plan designed to purchase additional shares of
your Nuveen Exchange-Traded Fund. For more information on Nuveen's expanding
array of funds, contact your financial adviser for a prospectus detailing all
charges and expenses, or call Nuveen at (800) 621-7227. Please read the
prospectus carefully before you invest or send money.
WELCOME TO THE NEW MILLENNIUM
During 1999, Nuveen committed significant resources - both financial and
personal - to ensuring that the transition to the year 2000 caused no
disruptions for our shareholders. Our preparations included advance testing of
all critical operating systems and careful review of each municipal issuerY2K
compliance, with special attention to the largest and more volatile holdings in
our Funds' portfolios. We were assisted in our efforts by securities industry
oversight organizations, including the Securities Industry Association, the
Municipal Securities Rulemaking Board and the Securities and Exchange
Commission, as well as rating agencies and insurance companies. As a result, we
were fully prepared for the transition, from an operational as well as an
investment perspective. As expected, the Y2K transition was a non-event for our
company and our shareholders as well as throughout the general economy. The
diligence of the financial industry as a whole in dealing with the Y2K
transition should prove to have ongoing benefits for investors.
Since 1898, Nuveen has been synonymous with investments that stand the test of
time. As we enter the new millennium, we remain committed to maintaining that
reputation and finding the best ways to serve your evolving investment needs.
Thank you for your continued confidence.
Sincerely,
/s/ TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
January 18, 2000
<PAGE>
Nuveen Georgia Premium Income Municipal Fund
Portfolio Manager's Comments
Portfolio manager Tom O'Shaughnessy discusses the market environment in Georgia,
fund performance, and the key strategies used to manage the Nuveen Georgia
Premium Income Municipal Fund (NPG). Tom, who has more than 16 years of
experience as an investment professional at Nuveen, has managed NPG since July
1998.
WHAT FACTORS AFFECTED GEORGIA'S ECONOMY DURING THE 12 MONTHS ENDED NOVEMBER
30,1999?
The state continued to actively pursue jobs in the high-tech sector, making
Georgia one of the fastest growing technology states in the country, according
to the Associated Press. Since 1990, the state has added more than 45,000 new
tech jobs. This growth in tech jobs should translate to higher incomes, since
recent statistics show that high-tech workers earned 79% more than the state's
other private sector workers. Overall, Georgia ranked tenth in high-tech
employment in the U.S., according to the American Electronics Association. In
November 1999, unemployment in the state was 3.6%, down from 4.0% in November
1998 and below the current national average of 4.1%. While tight labor markets
in other states threatened to dampen economic growth, Georgia's rapid population
growth served to offset the state's low unemployment numbers and prevent labor
shortages.
Since March 1991, when the current economic expansion began, Georgia's
economy has grown by more than 50%. While expectations are that the state will
continue to have one of the fastest growing economies in the U.S., projections
for 2000 call for a slight slowing from the rapid pace of 1998 and 1999, due to
a squeezed infrastructure and relatively weaker educational system. However,
Georgia is still expected to outperform the national growth average by a wide
margin, based on strong growth in personal income, rapid population growth, and
low unemployment. The state currently has one of the highest population growth
rates in the nation, with growth projections of twice the national rate in 2000.
Much of the surge in the state's population is the result of the growth of
Atlanta, which is expected in 2000 to be among the fastest growing metropolitan
areas, with a population of more than 1 million.
HOW DID THESE EVENTS IMPACT MUNICIPAL BOND SUPPLY AND DEMAND IN GEORGIA?
Compared with the first 11 months of 1998, municipal issuance in Georgia fell
11% through November 1999, for a total issuance of $5 billion. Despite this
decline, the availability of state paper compared favorably with the national
supply, which dropped just over 20% from 1998 levels. The most recent six
months, however, saw a sharper decline in state issuance, due partially to the
fact that figures for the previous six months were inflated by the $1.1 billion
Atlanta water and sewer deal that came to market in March 1999. The market is
also still awaiting a major bond project involving Hartsfield International
Airport.
In a high-grade state such as Georgia, demand for bonds issued within the
state usually exceeds the available supply, which can be limited at times. While
demand for Georgia paper on the part of individual investors remained relatively
steady over the past year, it failed to keep pace with supply, especially given
the burst of issuance in the first half of 1999. This, in turn, had a negative
impact on the prices of bonds issued by Georgia municipalities.
GIVEN THAT NPG'S PRIMARY OBJECTIVE IS TO PROVIDE STABLE, ATTRACTIVE TAX-EXEMPT
INCOME, HOW DID THESE FACTORS AFFECT THE FUND'S DIVIDEND?
During the past year, good call protection, dividend management strategies,
and the prudent use of leverage, helped support NPG's dividend and shield the
income of this fund from erosion. As a leveraged fund, NPG issues MuniPreferred
shares that pay short-term interest rates to investors seeking short-term
liquidity. Short-term municipal rates are usually (but not always) lower than
long-term rates. The proceeds from these preferred shares are then used to buy
additional long-term bonds for the Fund's portfolio. These bonds can generate
additional net income for the common shareholders, but leverage will increase
NAV volatility.
As of November 30, 1999, NPG had provided shareholders with 58 consecutive
months of steady or increasing dividends. At the end of November, the market
yield on the Fund was a competitive 5.90%, equivalent to a taxable yield1 of
9.08% for investors in the combined 35% federal and state income tax bracket.
OVERALL, HOW DID NPG PERFORM OVER THE PAST YEAR?
For the 12 months ended November 30, 1999, NPG produced a total return on net
asset value (NAV) of -6.40%, providing a taxable-equivalent total return1 of
- -3.40% for shareholders in the combined 35% federal and state income tax
bracket. By comparison, the Lehman Brothers Municipal Bond Index2 posted a
one-year total return of -1.07%, while the Fund's Lipper Peer Group3 had a
one-year return of -5.11%, as of November 30, 1999.
The underperformance of NPG's total return on NAV relative to its Lehman
benchmark can be attributed largely to the Fund's longer duration4. As of
November 30, 1999, NPG's leverage-adjusted duration was 13.98, compared with the
Lehman Index's 7.50. Duration measures a bond fund's price volatility, or
reaction to interest rate movements. The longer the duration, the more sensitive
the fund's NAV is to changes in interest rates. During a period of falling
interest rates, a long duration enables a fund's NAV to participate more fully
in market gains. However, when interest rates rise, a long duration can make the
fund's NAV more vulnerable to price declines (when market yields rise, bond
values fall). For the 12
1 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the yield/total
return of the Nuveen fund on an after-tax basis. The taxable-equivalent yield
is based on the fund's current market yield and a combined federal and state
income tax rate of 35%, while the taxable-equivalent total return is based on
the annualized total return and a combined federal and state income tax rate
of 35%.
2 NPG's performance is compared with that of the Lehman Brothers Municipal Bond
Index, an unleveraged index comprising a broad range of investment-grade
municipal bonds. Results for the index do not reflect any expenses.
3 The total return for NPG is compared with the average annualized return of the
17 funds in the Lipper Other States Closed-End Municipal Debt Funds category.
Fund and Lipper returns assume reinvestment of dividends.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the 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.
<PAGE>
months beginning December 1998 and ending November 1999, the yield on the Bond
Buyer Revenue Bond Index5 rose from 5.25% to 6.14%. This meant that funds with
longer durations, like NPG, were more likely to underperform the market, as
represented by the unleveraged Lehman Brothers Municipal Bond Index.
Over the past 12 months, NPG's duration lengthened from 9.80 due largely to
market action. In addition, proceeds from sold or called bonds were reinvested
in issues with longer durations, which benefited the Fund by providing
attractive yields and better call protection. The Fund's longer duration should
help position NPG to regain net asset value if the bond market recovers and
interest rates decline.
WHAT ABOUT THE FUND'S SHARE PRICE PERFORMANCE?
In 1999, rising interest rates, inflation worries, and constant speculation
about the Federal Reserve's next move created a negative environment in the
fixed-income markets. In addition, concerns about the impact of the transition
to the year 2000 precipitated an early start to tax-swap season, as investors
attempted to offset profits in the equity markets by selling fixed-income
investments at a loss. The liquidity concerns engendered by Y2K also prompted
some investors to opt for money market funds and other short-term instruments as
the best place to park cash over the year end.
All of these factors negatively impacted the market demand for
exchange-traded funds such as NPG. This resulted in a decline in the Fund's
share price. Since the prevailing interest rate environment in November 1999 was
higher than that of a year earlier, the Fund's NAV also declined, as bond prices
fell while interest rates rose. The supply/demand imbalance in Georgia also hurt
the prices of the bonds held by NPG. As a result of these factors, NPG saw its
premium (share price above NAV) narrow.
Premium6 Total Return on Share Price
------------------ ---------------------------
1-Year Ended Taxable-
11/30/98 11/30/99 11/30/99 Equivalent1
-------- -------- ------------ -----------
NPG 9.85% 3.77% -12.03% -9.32%
-------- -------- ------------ -----------
Past performance is not predictive of future results.
For additional information on NPG, see its Performance Overview in this report.
WHAT KEY STRATEGIES WERE USED TO MANAGE NPG DURING THE PERIOD COVERED BY THIS
REPORT?
In addition to trying to provide a stable, tax-free dividend, NPG was also
managed with the goals of supporting and strengthening its long-term
dividend-paying capabilities and enhancing the Fund's tax efficiency by
offsetting potential capital gains with capital losses.
In the area of bond calls, NPG currently provides excellent levels of
protection, with only 5% of its portfolio subject to calls over the next two
years. This should provide additional protection and stability for the Fund's
dividend over this period. To reduce the effect of calls, we continuously work
on strategies designed to enhance call protection. In addition, we have been
active buyers in the current market as we try to take advantage of the higher
interest rate environment. These recent purchases should also benefit the Fund
by extending call protection. Given the current level of bond yields, we have
been evaluating suitable replacements for older bonds, focusing on undervalued
bonds that have the potential to support the Fund's dividend and enhance
portfolio structure. This should enable the Fund to continue providing
competitive levels of dividends for shareholders.
Among the areas where we found value during the past year was the utilities
sector, where we increased our allocation from 7% to 13% over the past 12
months. The utilities sector is a dynamic and volatile area of the market that
has been beset with concerns about deregulation and profitability. This has
created credit and rating pressures for certain organizations and caused some
investors to avoid the sector entirely. Since one of Nuveen's strategies is to
try and discover value in sectors and bonds that have been overlooked by the
rest of the market, the utilities sector has been an area where Nuveen research
and our prudent investment approach have enabled us to find and exploit
opportunities that can add value for our shareholders. As credit spreads (or the
difference in yield between higher credit quality securities and those of lower
credit quality) widened, we have been rewarded with higher yields for assuming
the incremental risk associated with this sector.
Enhanced tax efficiency has also been an increasing focus for us over the
past six months, as the rising interest rate environment offered opportunities
to benefit the Fund through active trading. The strategy we employed involved
selling selected bonds that were trading at a loss, recognizing the capital
losses, and then rolling the proceeds into bonds with similar characteristics,
but offering attractive yields and better call protection. Some of the bonds we
sold were due to mature or scheduled to be called within the next few months,
while others were bonds that we had purchased earlier this year that were now
producing a lower income stream than that recently available in the market. This
trading not only gave us capital losses with which to offset current and future
capital gains, thereby protecting shareholders from additional taxes, but also -
in most cases - increased the net earnings of the Fund. If current market
conditions persist, we will continue to focus on implementing this strategy.
NPG offers excellent credit quality, with 82% of the Fund's assets invested
in bonds rated AAA/U.S. guaranteed and AA at the end of November 1999. The Fund
currently holds no BBB or non-rated bonds, which are rarely found in the Georgia
market.
WHAT IS NUVEEN'S OUTLOOK FOR NPG?
In the months ahead, we will try to take advantage of the higher yields
currently available in the municipal market to enhance our portfolio holdings
and the dividend-paying capabilities of the fund. Nuveen Research will help us
explore opportunities in all areas of the market to maintain the Fund's
diversification. As an experienced investment manager knowledgeable about the
unique aspects of the Georgia municipal market, we are in the marketplace every
day, monitoring market dynamics, looking for opportunities, and seeking to
capitalize on them to the benefit of shareholders.
1 The taxable-equivalent total return represents the total return that must be
earned on a taxable investment in order to equal the total return of the
Nuveen fund on an after-tax basis. The taxable-equivalent total return is
based on the annualized total return and a combined federal and state income
tax rate of 35%.
5 The Bond Buyer Revenue Bond Index is an unmanaged index of long-term municipal
revenue bonds.
6 A fund's premium represents the percentage difference between the fund's share
price and its net asset value (NAV).
<PAGE>
Nuveen Georgia Premium Income Municipal Fund
Performance Overview
As of November 30, 1999
NPG
Portfolio Statistics
Inception Date 5/93
- --------------------------------------------------
Share Price $13 5/8
- --------------------------------------------------
Net Asset Value $13.13
- --------------------------------------------------
Market Yield 5.90%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)1 8.55%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)1 9.08%
- --------------------------------------------------
Fund Net Assets ($000) $76,997
- --------------------------------------------------
Effective Maturity (Years) 19.93
- --------------------------------------------------
Leverage-Adjusted Duration 13.98
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -12.03% -6.40%
- --------------------------------------------------
5-Year 10.82% 10.28%
- --------------------------------------------------
Since Inception 4.00% 4.63%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year -9.32% -3.40%
- --------------------------------------------------
5-Year 14.04% 13.45%
- --------------------------------------------------
Since Inception 7.03% 7.67%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
Tax Obligation/Limited 16%
- --------------------------------------------------
Housing/Multifamily 13%
- --------------------------------------------------
Utilities 13%
- --------------------------------------------------
U.S. Guaranteed 13%
- --------------------------------------------------
Education and Civic Organizations 11%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
12/98 0.067
1/99 0.067
2/99 0.067
3/99 0.067
4/99 0.067
5/99 0.067
6/99 0.067
7/99 0.067
8/99 0.067
9/99 0.067
10/99 0.067
11/99 0.067
Line Chart:
Share Price Performance
12/1/98 16.31
16.19
16.19
16.13
16.13
16
16
15.94
16.06
16.19
16.19
16.31
16.25
16.38
16.25
16.25
16.3125
16.31
16.5
16.63
16.5
16.25
16.13
16.25
16.13
16.13
16.19
16.06
16.19
16.25
16.25
16.19
16
15.94
15.31
15.13
15.31
15.38
14.88
14.63
14.56
14.56
14.19
14.06
14
13.94
13.63
13.75
13.63
11/30/99 13.625
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
Nuveen Maryland Premium Income Municipal Fund
Portfolio Manager's Comments
Portfolio manager Paul Brennan reviews the Maryland municipal market, recent
fund performance, and the outlook for the Nuveen Maryland Premium Income
Municipal Fund (NMY). Paul has more than eight years of experience as an
investment professional, starting at Flagship in 1991 and joining Nuveen in 1997
after Nuveen acquired Flagship. Paul assumed portfolio management responsibility
for NMY in August 1999.
WHAT FACTORS AFFECTED MARYLAND'S ECONOMY DURING THE 12 MONTHS ENDED NOVEMBER 30,
1999?
The current status of Maryland's economy rivals that of any over the past 20
years, due to accelerated job growth and strong income gains. Recent employment
growth is characterized as more stable than that of the mid-1980s, the last
time the state experienced significant growth. For November 1999, unemployment
in Maryland was 3.4%, down from 4.2% in November 1998 and lower than the current
national average of 4.1%. Based on its proximity to national laboratories and
major research institutions, the state is experiencing good growth in
high-technology jobs. The higher levels of education in the state have also
helped in this area. Projections for 2000 call for the state's economy to grow
at a faster rate than the national economy.
Of special interest was Maryland's healthcare sector, which operates in a
regulated environment. Over the next year, healthcare reimbursements in the
state are slated to decline by 1%. This may add to the troubles of many
healthcare providers, especially those in the state's urban areas.
HOW DID THESE EVENTS IMPACT MUNICIPAL BOND SUPPLY AND DEMAND IN MARYLAND?
For the first 11 months of 1999, municipal issuance in Maryland totaled $2.2
billion, reflecting a decline of 29% from 1998 levels. By comparison, national
municipal supply fell just over 20% during the same period. Some of this decline
- - both statewide and nationally - can be attributed to a drop-off in refunding
activity, which is typical in a rising interest rate environment. Credit
quality in Maryland remained high, with the majority of bonds issued by the
state and counties rated AA or better.
Demand for Maryland paper continued to be strong, as affluent individual
investors took advantage of the tax-exempt provisions offered by municipal
bonds. During 1999, additional demand was driven by investors who actively
worked to rebalance their portfolios by redirecting assets from equity
investments into the fixed-income market.
GIVEN THAT NMY'S PRIMARY OBJECTIVE IS TO PROVIDE STABLE, ATTRACTIVE TAX-EXEMPT
INCOME, WHAT FACTORS AFFECTED THE FUND'S DIVIDEND?
Good call protection helped to support NMY's dividend over the past year,
while specific dividend management strategies and the prudent use of leverage
enabled us to increase the dividend in February 1999. NMY is a leveraged fund,
which means that it issues preferred shares that pay short-term interest rates
to investors seeking short-term liquidity. Short-term municipal rates are
usually (but not always) lower than long-term rates. The proceeds from the
preferred shares are used to buy additional long-term bonds for the Fund's
portfolio. These bonds can generate additional net income for the common
shareholders, but leverage increases NAV volatility.
When short-term interest rates remain below long-term rates, common
shareholders can potentially earn extra income from the difference between the
rate earned on the Fund's long-term portfolio and the short-term rate paid to
preferred shareholders. While leveraged funds carry higher risk than
non-leveraged funds, they are compensated for this additional risk in the form
of potentially higher yields.
As of November 30, 1999, NMY had provided shareholders with 70 consecutive
months of steady or increasing dividends. At the end of November, the market
yield on the Fund was a competitive 6.06%, equivalent to a taxable yield1 of
9.25% for investors in the combined 34.5% federal and state income tax bracket.
OVERALL, HOW DID NMY PERFORM OVER THE PAST YEAR?
For the 12 months ended November 30, 1999, NMY produced a total return on net
asset value (NAV) of -5.96%, providing a taxable-equivalent total return1 of
- -3.12% for shareholders in the combined 34.5% federal and state income tax
bracket. The Fund's benchmark, the Lehman Brothers Municipal Bond Index2, posted
a one-year total return of -1.07%, while the Fund's Lipper Peer Group3 had a
one-year total return of -5.11%, as of November 30, 1999.
The underperformance of NMY's total return on NAV relative to its Lehman
benchmark can be attributed largely to the Fund's longer duration4. As of
November 30, 1999, NMY's leverage-adjusted duration was 12.66, compared with the
Lehman Index's 7.50. Duration measures a bond fund's price volatility, or
reaction to interest rate movements. The longer the duration, the more sensitive
the fund's NAV is to changes in interest rates. During a period of falling
interest rates, a long duration enables a fund's NAV to participate more fully
in market gains. However, when interest rates rise, a long duration can make the
fund's NAV more vulnerable to price declines (when market rates rise, bond
values fall). For the 12 months beginning December 1998 and ending November
1999, the yield on the Bond Buyer Revenue Bond Index5 rose from 5.25% to 6.14%.
This meant that funds with longer durations, like NMY, were more likely to
underperform the market, as represented by the unleveraged Lehman Brothers
Municipal Bond Index.
Over the past 12 months, NMY's duration lengthened from 9.59 due to market
action as well as trading activity, as we tried to take advantage of the recent
rise in interest rates. As part of this, we sold some bonds with shorter
durations, especially those with poor call protection and those that were
closer to maturity. We then reinvested the proceeds in issues with longer
durations, which provided better call protection and attractive yields that
helped to support the dividend. The Fund's longer duration should help position
NMY to regain net asset value if the bond market recovers and interest rates
decline.
1 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the yield/total
return of the Nuveen fund on an after-tax basis. The taxable-equivalent yield
is based on the fund's current market yield and a combined federal and state
income tax rate of 34.5%, while the taxable-equivalent total return is based
on the annualized total return and a combined federal and state income tax
rate of 34.5% .
2 NMY's performance is compared with that of the Lehman Brothers Municipal Bond
Index, an unleveraged index comprising a broad range of investment-grade
municipal bonds. Results for the index do not reflect any expenses.
3 The total return for NMY is compared with the average annualized return of the
17 funds in the Lipper Other States Closed-End Municipal Debt Funds category.
Fund and Lipper returns assume reinvestment of dividends.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the 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.
5 The Bond Buyer Revenue Bond Index is an unmanaged index of long-term municipal
revenue bonds.
<PAGE>
WHAT ABOUT THE FUND'S SHARE PRICE PERFORMANCE?
Over the past year, concerns about rising interest rates, inflation, and the
Federal Reserve's monetary policies created a negative environment in the
fixed-income markets. In addition, worries about the transition to the year
2000 precipitated an early start to tax-swap season, as investors attempted to
offset profits in the equity markets by selling fixed-income investments at a
loss. The liquidity concerns engendered by Y2K also prompted some investors to
opt for money market funds and other short-term instruments as the best place to
park cash over the year end. All of these factors negatively impacted the market
demand for exchange-traded funds such as NMY. This resulted in a decline in the
Fund's share price. Since the prevailing interest rate environment in November
1999 was higher than that of a year earlier, the Fund's NAV also declined, as
bond prices fell while interest rates rose. As a result of these factors, NMY's
premium (share price above NAV) moved to a discount (share price below NAV) over
the past 12 months.
Premium/Discount6 Total Return on Share Price
----------------- ---------------------------
1-Year Ended Taxable-
11/30/98 11/30/99 11/30/99 Equivalent1
-------- -------- ------------- -----------
NMY 9.72% -2.31% -16.56% -13.98%
-------- -------- ------------- -----------
Past performance is not predictive of future results.
For additional information on NMY, see its Performance Overview in this report.
WHAT KEY STRATEGIES WERE USED TO MANAGE NMY DURING THE PERIOD COVERED BY THIS
REPORT?
NMY was managed with the goals of supporting and strengthening its long-term
dividend-paying capabilities, improving call protection, and enhancing the
Fund's tax efficiency.
NMY currently provides exceptional levels of call protection, with only 4%
of its portfolio subject to bond calls between January 2000 and December 2002.
This should result in additional protection and stability for the Fund's
dividend over the next three years. At Nuveen, we continuously work on
strategies designed to enhance call protection. Recently, our efforts have
focused on buying bonds that help us take advantage of the higher interest rate
environment. Many of these purchases have also benefited the Fund by extending
call protection. This should enable the Fund to continue providing competitive
levels of dividends for shareholders.
During the past year, we found several opportunities to add to the Fund's
diversification while picking up additional yield. One of these involved Baa3
rated financing for student housing at Salisbury State University provided by
Collegiate Housing, a program that builds dormitories on college campuses.
Another new name to the portfolio was Frederick County, where we purchased
general obligation bonds offering high credit quality. We also recently added
bonds issued by the government of the Virgin Islands, which offer double
tax-exemption for the shareholders of state funds. These BBB- bonds provided
yields that were 50 to 70 basis points higher than those typically available in
the market at the time of purchase. In the multifamily housing sector, we bought
AAA rated bonds for the University Landing apartment complex, which also
featured above-market yields.
Over the past six months, enhanced tax efficiency also became an increasing
focus for us, as the rising interest rate environment offered opportunities to
benefit the Fund through active trading. The strategy we employed involved
selling selected bonds that were trading at a loss, recognizing the capital
losses, and then rolling the proceeds into bonds with similar characteristics,
while offering attractive yields and better call protection. Some of the bonds
we sold were due to mature or scheduled to be called within the next few months,
while others were bonds that we had purchased earlier this year that were now
producing a lower income stream than that recently available in the market. This
trading not only gave us a significant amount of capital losses with which to
offset current and future capital gains, thereby protecting shareholders from
additional taxes, but also - in most cases - strengthened the net earnings of
the Fund. If current market conditions persist, we will continue to focus on
implementing this strategy.
As of the end of November 1999, NMY offered excellent credit quality, with
79% of the Fund's assets invested in bonds rated AAA/U.S. guaranteed and AA. The
Fund also had an 8% allocation of BBB and non-rated bonds, up from 3% in
November 1998. These lower-rated bonds generally provided enhanced levels of
yield and helped to support the dividend, especially as credit spreads (or the
difference in yield between higher credit quality securities and those of lower
credit quality) widened in recent months.
WHAT IS NUVEEN'S OUTLOOK FOR NMY?
In general, we believe that NMY is currently well-positioned for a potential
recovery in the bond market. We think our strategies can strengthen the
long-term dividend-paying capabilities of the Fund. We also plan to concentrate
on keeping the Fund well diversified. Implementing strategies such as these that
have the potential to benefit the Fund demonstrates the value that can be added
by an active bond manager such as Nuveen.
1 The taxable-equivalent total return represents the total return that must be
earned on a taxable investment in order to equal the total return of the
Nuveen fund on an after-tax basis. The taxable-equivalent total return is
based on the annualized total return and a combined federal and state income
tax rate of 34.5%.
6 A fund's premium/discount represents the percentage difference between the
fund's share price and its net asset value (NAV).
<PAGE>
Nuveen Maryland Premium Income Municipal Fund
Performance Overview
As of November 30, 1999
NMY
Portfolio Statistics
Inception Date 3/93
- --------------------------------------------------
Share Price $12 7/8
- --------------------------------------------------
Net Asset Value $13.18
- --------------------------------------------------
Market Yield 6.06%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)1 8.78%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)1 9.25%
- --------------------------------------------------
Fund Net Assets ($000) $216,885
- --------------------------------------------------
Effective Maturity (Years) 17.71
- --------------------------------------------------
Leverage-Adjusted Duration 12.66
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -16.56% -5.96%
- --------------------------------------------------
5-Year 8.27% 9.94%
- --------------------------------------------------
Since Inception 3.10% 4.49%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year -13.98% -3.12%
- --------------------------------------------------
5-Year 11.30% 12.98%
- --------------------------------------------------
Since Inception 5.98% 7.41%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
Utilities 21%
- --------------------------------------------------
Healthcare 17%
- --------------------------------------------------
Housing/Multifamily 17%
- --------------------------------------------------
Tax Obligation/Limited 11%
- --------------------------------------------------
Education and Civic Organizations 8%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
12/98 0.064
1/99 0.064
2/99 0.065
3/99 0.065
4/99 0.065
5/99 0.065
6/99 0.065
7/99 0.065
8/99 0.065
9/99 0.065
10/99 0.065
11/99 0.065
Line Chart:
Share Price Performance
12/1/98 16.31
16.25
16.38
16.31
16
15.69
15.44
15.5
15.75
15.63
15.88
15.81
15.94
15.94
15.75
15.75
16
16
15.69
15.69
15.63
15
14.75
15.13
15.06
15.06
15.25
15
15
15.31
15.38
15.69
15.69
15.31
14.69
15
14.88
14.75
14.25
14.13
14.19
14.13
13.94
13.94
14.13
14.06
13.63
13.25
13.06
11/30/99 12.875
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 34.5%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 34.5%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
<PAGE>
Nuveen North Carolina Premium Income Municipal Fund
Portfolio Manager's Comments
Portfolio manager Tom O'Shaughnessy talks about the North Carolina market, fund
performance, and the key management strategies for the Nuveen North Carolina
Premium Income Municipal Fund (NNC). A 16-year veteran of Nuveen, Tom has
managed NNC since July 1998.
WHAT FACTORS AFFECTED NORTH CAROLINA'S ECONOMY DURING THE 12 MONTHS ENDED
NOVEMBER 30, 1999?
North Carolina continued to experience strong economic growth, with full
expectations of entering its tenth consecutive year of expansion in 2000. From a
sector perspective, the majority of the state's growth was produced by the FIRE
(financial, insurance, and real estate), services, and agricultural areas. In
2000, job growth is expected to be led by increases in the services, FIRE, and
construction industries, especially those connected with home building and
repair and infrastructure repair following Hurricane Floyd. In November 1999,
unemployment in the state was 3.2%, down from 3.4% in November 1998 and below
the current national average of 4.1%.
One of the major stories in North Carolina continued to involve the excessive
debt loads carried by two power agencies: North Carolina Eastern Municipal Power
Agency and North Carolina Municipal Power Agency #1 (Catawba). Both of the major
investor-owned utilities in the state - Duke Energy and Carolina Power and Light
- - have offered to allow the statewide assessment of a stranded cost charge in
order to pay down these debt loads. In return, the utilities would require the
right to take over the agencies' assets. This raises the possibility that
outstanding bonds issued by the agencies could be escrowed or pre-refunded,
which would result in upgrades to AAA. While the situation remains under
discussion, the utilities' offer represents the first workable solution to a
potential crisis in some time.
In the North Carolina healthcare sector, despite Medicare cuts that have
impacted the state's academic medical centers and large healthcare systems, the
strong state economy and positive demographic trends have produced a more
favorable environment for providers than that seen in other states.
HOW DID THESE EVENTS IMPACT MUNICIPAL BOND SUPPLY AND DEMAND IN NORTH CAROLINA?
Total municipal issuance in North Carolina for the first 11 months of 1999
was $3.4 billion, down 29% from 1998 levels, largely due to higher interest
rates. The state's decreased issuance compares with a decline of just over 20%
in the national municipal supply for the same period. However, over the past two
months (October and November 1999), issuance activity increased, as North
Carolina issuers sought to avoid potential problems associated with the
transition to the year 2000. On a statewide basis, North Carolina provides
excellent oversight of issuance by municipalities, with all debt and offering
documentation approved by a state board.
Demand for North Carolina paper was fairly steady over the past year,
especially from individual investors who actively worked to rebalance their
portfolios by redirecting assets from equity investments into the fixed-income
market. However, demand could not keep pace with the burst in issuance of the
past few months. This situation was further exacerbated by weakened demand from
institutional investors due to events outside the municipal market that limited
the cashflow available for bond purchases. Insurance companies, which have
historically been major institutional buyers of municipal bonds, were especially
hard hit by claims from natural disasters and further hampered by price cutting
on insurance premiums in the property casualty sector, which hurt earnings. With
the number of North Carolina issuers that pushed deals into 1999 to avoid any
potential problems related to the Y2K transition, we expect the supply/demand
imbalance to reverse itself in 2000.
GIVEN THAT NNC'S PRIMARY OBJECTIVE IS TO PROVIDE STABLE, ATTRACTIVE TAX-EXEMPT
INCOME, WHAT FACTORS AFFECTED THE FUND'S DIVIDEND?
During the past year, good call protection, specific dividend management
strategies, and the prudent use of leverage helped support NNC's dividend and
shield the income of this fund from erosion. As of November 30, 1999, NNC had
provided shareholders with steady or increasing dividends for 58 consecutive
months. At the end of November, the market yield on the Fund was a competitive
5.81%, equivalent to a taxable yield1 of 9.15% for investors in the combined
36.5% federal and state income tax bracket.
As a leveraged fund, NNC issues MuniPreferred shares that pay short-term
interest rates to investors seeking short-term liquidity. Short-term municipal
rates are usually (but not always) lower than long-term rates.The proceeds from
these preferred shares are used to buy additional long-term bonds for the Fund's
portfolio. These bonds can generate additional net income for the common
shareholder, but leverage will increase NAV volatility.
OVERALL, HOW DID NNC PERFORM OVER THE PAST YEAR?
For the 12 months ended November 30, 1999, NNC produced a total return on net
asset value (NAV) of -6.98%, providing a taxable-equivalent total return1 of
- -3.78% for shareholders in the combined 36.5% federal and state income tax
bracket. By comparison, the Lehman Brothers Municipal Bond Index2 posted a
one-year total return of -1.07%, while the Fund's Lipper Peer Group3 had a
one-year total return of -5.11%, as of November 30, 1999.
The underperformance of NNC's total return on NAV relative to its Lehman
benchmark can be attributed largely to the Fund's longer duration4. As of
November 30, 1999, NNC's leverage-adjusted duration was 14.16, compared with the
Lehman Index's 7.50. Duration measures a bond fund's price volatility, or
reaction to interest rate movements. The longer the duration, the more sensitive
the fund's NAV is to changes in interest rates. During a period of falling
interest rates, a long duration enables a fund's NAV to participate more fully
in market gains. However, when interest rates rise, a long duration can make the
fund's NAV more vulnerable to price declines (when market yields rise, bond
values fall). For the 12 months beginning December 1998 and ending November
1999,
1 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the yield/total
return of the Nuveen fund on an after-tax basis. The taxable-equivalent yield
is based on the fund's current market yield and a combined federal and state
income tax rate of 36.5%, while the taxable-equivalent total return is based
on the annualized total return and a combined federal and state income tax
rate of 36.5%.
2 NNC's performance is compared with that of the Lehman Brothers Municipal Bond
Index, an unleveraged index comprising a broad range of investment-grade
municipal bonds. Results for the index do not reflect any expenses.
3 The total return for NNC is compared with the average annualized return of
the 17 funds in the Lipper Other States Closed-End Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the 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.
<PAGE>
the yield on the Bond Buyer Revenue Bond Index5 rose from 5.25% to 6.14%. This
meant that funds with longer durations, like NNC, were more likely to
underperform the market, as represented by the unleveraged Lehman Brothers
Municipal Bond Index.
Over the past 12 months, NNC's duration lengthened from 8.73 due largely to
market action. In addition, proceeds from sold or called bonds were reinvested
in issues with longer durations, which benefited the Fund by providing
attractive yields and better call protection. NNC's longer duration should help
position the Fund to regain net asset value if the bond market recovers and
interest rates decline.
WHAT ABOUT THE FUND'S SHARE PRICE PERFORMANCE?
In 1999, rising interest rates, inflation worries, and constant speculation
about the Federal Reserve's next move created a negative environment in the
fixed-income markets. In addition, concerns about the impact of the transition
to the year 2000 precipitated an early start to tax-swap season, as investors
attempted to offset profits in the equity markets by selling fixed-income
investments at a loss. The liquidity concerns engendered by Y2K also prompted
some investors to opt for money market funds and other short-term instruments as
the best place to park cash over the year end.
All of these factors negatively impacted the market demand for
exchange-traded funds such as NNC. This resulted in a decline in the Fund's
share price. Since the prevailing interest rate environment in November 1999 was
higher than that of a year earlier, the Fund's NAV also declined, as bond prices
fell while interest rates rose. The value of the bonds held by NNC was also
impacted by the supply/demand imbalance in North Carolina. As a result of these
factors, NNC saw its premium (share price above NAV) narrow.
Premium6 Total Return on Share Price
------------------ ---------------------------
1-Year Ended Taxable-
11/30/98 11/30/99 11/30/99 Equivalent1
-------- -------- ------------ -----------
NNC 13.37% 7.79% -12.08% -9.27%
-------- -------- ------------ -----------
Past performance is not predictive of future results.
For additional information on NNC, see its Performance Overview in this report.
WHAT KEY STRATEGIES WERE USED TO MANAGE NNC DURING THE PERIOD COVERED BY THIS
REPORT?
NNC was managed with the goals of supporting and strengthening its long-term
dividend-paying capabilities and enhancing the Fund's tax efficiency by
offsetting potential capital gains with capital losses.
Over the next two years, NNC offers excellent levels of call protection, with
only 2% of its portfolio subject to bond calls in 2000 and 2001. This should
mean additional protection and stability for the Fund's dividend during this
period. To reduce the effect of calls, Nuveen continuously works on strategies
designed to enhance call protection. Given the current level of bond yields, we
have been active buyers of bonds that benefit the Fund through higher interest
rates as well as extended call protection. We have also been evaluating suitable
replacements for older bonds, focusing on undervalued bonds that have the
potential to support the Fund's dividend and enhance portfolio structure. In
this way, the Fund should be able to continue providing competitive levels of
dividends for shareholders.
Among the areas where we found value during the past year was the single
family housing sector, which offered high-quality opportunities to increase the
Fund's income. Over the past 12 months, we increased our exposure to this sector
from 11% to 19%. NNC also maintained its allocation of 17% in the healthcare
sector and increased its allocation to 12% in utilities, two dynamic and
volatile areas of the market that have been beset with concerns about
deregulation and profitability. This has created credit and rating pressures for
certain organizations and caused some investors to try and avoid these sectors
entirely. Since one of Nuveen's strategies is to try and discover value in
sectors and bonds that have been overlooked by the rest of the market, the
healthcare and utilities sectors have been areas where Nuveen research and our
prudent investment approach have enabled us to find and exploit opportunities
that can add value for our shareholders.
Enhanced tax efficiency also became an increasing focus for us over the past
six months, as the rising interest rate environment offered opportunities to
benefit the Fund through active trading. The strategy we employed involved
selling selected bonds that were trading at a loss, recognizing the capital
losses, and then rolling the proceeds into bonds with similar characteristics,
but offering attractive yields and better call protection. Some of the bonds we
sold were due to mature or scheduled to be called within the next few months,
while others were bonds that we had purchased earlier this year that were now
producing a lower income stream than that recently available in the market. This
trading not only gave us capital losses with which to offset current and future
capital gains, thereby protecting shareholders from additional taxes, but also -
in most cases - increased the net earnings of the Fund. If current market
conditions persist, we will continue to focus on implementing this strategy.
NNC offers excellent credit quality, with 71% of the Fund's assets invested
in bonds rated AAA/U.S. guaranteed and AA at the end of November 1999. The Fund
also had a substantial allocation (12%) of BBB and non-rated bonds. Over the
past year, we reduced our exposure to AAA/U.S. guaranteed bonds and increased
our allocation of BBB and non-rated bonds in order to take advantage of widening
credit spreads (or the difference in yield between higher credit quality
securities and those of lower credit quality). In return for assuming the
incremental risk associated with lower-rated issues, these bonds generally
provided enhanced levels of yield and helped support the Fund's dividend.
Shareholders can be assured that the creditworthiness of all issuers is subject
to Nuveen's stringent review process before bonds are purchased for the Fund's
portfolio.
WHAT IS NUVEEN'S OUTLOOK FOR NNC?
In the months ahead, we will try to take advantage of the higher yields
currently available in the municipal market to enhance our portfolio holdings
and the dividend-paying capabilities of the fund. Our Nuveen Research
capabilities will help us explore opportunities in all areas of the market to
maintain the Fund's diversification. As an experienced investment manager
knowledgeable about the unique aspects of the North Carolina municipal market,
we are in the marketplace every day, monitoring market dynamics, looking for
opportunities, and seeking to capitalize on them to the benefit of shareholders.
1 The taxable-equivalent total return represents the total return that must be
earned on a taxable investment in order to equal the total return of the
Nuveen fund on an after-tax basis. The taxable-equivalent total return is
based on the annualized total return and a combined federal and state income
tax rate of 36.5%.
5 The Bond Buyer Revenue Bond Index is an unmanaged index of long-term municipal
revenue bonds.
6 A fund's premium represents the percentage difference between the fund's share
price and its net asset value (NAV).
<PAGE>
Nuveen North Carolina Premium Income Municipal Fund
Performance Overview
As of November 30, 1999
NNC
Portfolio Statistics
Inception Date 5/93
- --------------------------------------------------
Share Price $13 15/16
- --------------------------------------------------
Net Asset Value $12.93
- --------------------------------------------------
Market Yield 5.81%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)1 8.42%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)1 9.15%
- --------------------------------------------------
Fund Net Assets ($000) $127,862
- --------------------------------------------------
Effective Maturity (Years) 20.15
- --------------------------------------------------
Leverage-Adjusted Duration 14.16
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -12.08% -6.98%
- --------------------------------------------------
5-Year 9.47% 10.08%
- --------------------------------------------------
Since Inception 4.24% 4.27%
- --------------------------------------------------
Taxable-Equivalent Total Return2
On Share Price On NAV
- --------------------------------------------------
1-Year -9.27% -3.78%
- --------------------------------------------------
5-Year 12.80% 13.47%
- --------------------------------------------------
Since Inception 7.39% 7.50%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
Housing/Single Family 18%
- --------------------------------------------------
Healthcare 17%
- --------------------------------------------------
Tax Obligation/Limited 15%
- --------------------------------------------------
Utilities 11%
- --------------------------------------------------
U.S. Guaranteed 10%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
12/98 0.066
1/99 0.066
2/99 0.066
3/99 0.066
4/99 0.066
5/99 0.066
6/99 0.066
7/99 0.066
8/99 0.075
9/99 0.075
10/99 0.075
11/99 0.075
Line Chart:
Share Price Performance
12/1/98 16.75
16.44
16.38
16.63
16.5
16.19
15.94
15.94
16.13
15.94
15.94
16.06
16.13
15.94
16.25
16.25
16.25
16.06
16.19
16.25
16.25
15.94
15.69
15.69
15.75
15.5
15.63
15.69
15.75
15.81
15.75
15.63
15.69
15.88
15.44
15.5
15.81
15.69
15.38
15.06
15.19
15.06
14.63
14.5
14.5
14.56
14.31
14.25
14.19
11/30/99 13.9375
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen fund on an after-tax basis. The
federal only rate is based on the current market yield and a federal income
tax rate of 31%. The rate shown for federal and state highlights the added
value of owning shares that are also exempt from state income taxes. It is
based on a combined federal and state income tax rate of 36.5%.
2 Taxable-equivalent total return is based on the annualized total return and a
combined federal and state income tax rate of 36.5%. It represents the return
on a taxable investment necessary to equal the return of the Nuveen fund on an
after-tax basis.
<PAGE>
Nuveen Virginia Premium Income Municipal Fund
Portfolio Manager's Comments
Portfolio manager Paul Brennan discusses the municipal market environment in
Virginia, fund performance, and the outlook for the Nuveen Virginia Premium
Income Municipal Fund (NPV). Paul, who has more than eight years of experience
as an investment professional, started at Flagship in 1991 and joined Nuveen in
1997 after Nuveen acquired Flagship. He has managed NPV since August 1999.
WHAT FACTORS AFFECTED VIRGINIA'S ECONOMY DURING THE 12 MONTHS ENDED NOVEMBER 30,
1999?
The state of Virginia reported solid economic performance in 1999, helped by
strong consumer confidence, rising personal income, and strong retail sales. Job
growth over the past 12 months continued to diversify away from the historic
reliance on the federal government to a greater representation by the
technology, business, and service sectors. The state's proactive pursuit of
high-tech companies has helped attract several major high-tech firms. For
example, America Online, Oracle, and Motorola all have a significant presence in
Virginia. For November 1999, unemployment in the state was 2.8%, down from 2.9%
in November 1998 and sharply lower than the current national average of 4.1%.
According to Moody's Investors Service, Virginia ranks 13th among the states in
terms of personal income, with per capita income at 104% of the U.S. average. In
2000, economic growth is expected to continue, although at a slightly slower
pace. Although the state's low unemployment has not yet had a negative effect on
economic growth, the tight labor markets could eventually dampen future growth.
Based on its strong economic performance, Virginia is generally regarded as a
higher credit quality state. Of special interest are the state-sponsored
programs that enable smaller issuers to pool financing needs into larger bond
issues. These bonds are generally issued through a Virginia state authority and
often carry enhancements provided by the state.
HOW DID THESE EVENTS IMPACT MUNICIPAL BOND SUPPLY AND DEMAND IN VIRGINIA?
For the first 11 months of 1999, municipal issuance in Virginia totaled $3.7
billion, down 30% from the same period in 1998. By comparison, municipal supply
across the nation fell just over 20% during this time. Despite the overall
decline in 1999, the state saw increased issuance activity in the second half of
the year, with new supply up 20% over the previous six months. Some of this
increase may have been due to issuers' desire to avoid potential Y2K problems by
accelerating the year's issuance calendar.
Demand for Virginia paper remained high throughout 1999, as affluent
individual investors took advantage of the tax-exempt income offered by
municipal bonds.
GIVEN THAT NPV'S PRIMARY OBJECTIVE IS TO PROVIDE STABLE, ATTRACTIVE TAX-EXEMPT
INCOME, WHAT FACTORS AFFECTED THE FUND'S DIVIDEND?
As of November 30, 1999, NPV had provided shareholders with steady or
increasing dividends since its inception, or 78 consecutive months. During the
past year, specific dividend management strategies and the prudent use of
leverage enabled us to increase the Fund's dividend in May 1999. As a leveraged
fund, NPV issues MuniPreferred shares that pay short-term interest rates to
investors seeking short-term liquidity. Short-term municipal rates are usually
(but not always) lower than long-term rates. The proceeds from these preferred
shares are used to buy additional long-term bonds for the Fund's portfolio,
which can generate additional income for the common shareholders, but leverage
increases NAVvolatility. When short-term interest rates remain below long-term
rates, common shareholders can potentially earn extra income from the difference
between the rate earned on the Fund's long-term portfolio and the short-term
rate paid to preferred shareholders. While leveraged funds carry higher risk
than non-leveraged funds, they are compensated for this additional risk in the
form of potentially higher yields.
At the end of November, the market yield on the Fund was a competitive 5.92%,
equivalent to a taxable yield1 of 9.11% for investors in the combined 35%
federal and state income tax bracket.
OVERALL, HOW DID NPV PERFORM OVER THE PAST YEAR?
For the 12 months ended November 30, 1999, NPV produced a total return on net
asset value (NAV) of -4.96%, providing a taxable-equivalent total return1 of
- -1.94% for shareholders in the combined 35% federal and state income tax
bracket. By comparison, the Lehman Brothers Municipal Bond Index2 posted a
one-year total return of -1.07%, while the Fund's Lipper Peer Group3 had a
one-year total return of -5.11% as of November 30, 1999.
The underperformance of NPV's total return on NAV relative to its Lehman
benchmark can be attributed largely to the Fund's longer duration4. As of
November 30, 1999, NPV's leverage-adjusted duration was 11.94, compared with the
Lehman Index's 7.50. Duration measures a bond fund's price volatility, or
reaction to interest rate movements. The longer the duration, the more sensitive
the fund's NAV is to changes in interest rates. During a period of falling
interest rates, a long duration enables a fund's NAV to participate more fully
in market gains. However, when interest rates rise, a long duration can make the
fund's NAV more vulnerable to price declines. For the 12 months beginning
December 1998 and ending November 1999, the yield on the Bond Buyer Revenue Bond
Index5 rose from 5.25% to 6.14%. This meant that funds with longer durations,
like NPV, were more likely to underperform the market, as represented by the
unleveraged Lehman Brothers Municipal Bond Index.
1 The taxable-equivalent yield/total return represents the yield/total return
that must be earned on a taxable investment in order to equal the yield/total
return of the Nuveen fund on an after-tax basis. The taxable-equivalent yield
is based on the fund's current market yield and a combined federal and state
income tax rate of 35%, while the taxable-equivalent total return is based on
the annualized total return and a combined federal and state income tax rate
of 35%.
2 NPV's performance is compared with that of the Lehman Brothers Municipal Bond
Index, an unleveraged index comprising a broad range of investment-grade
municipal bonds. Results for the index do not reflect any expenses.
3 The total return for NPV is compared with the average annualized return of the
17 funds in the Lipper Other States Closed-End Municipal Debt Funds category.
Fund and Lipper returns assume reinvestment of dividends.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the 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.
5 The Bond Buyer Revenue Bond Index is an unmanaged index of long-term municipal
revenue bonds.
<PAGE>
Over the past 12 months, NPV's duration lengthened from 8.45 due to market
action as well as trading activity, as we tried to take advantage of the recent
rise in interest rates. For example, we sold some bonds with shorter durations,
especially those with poor call protection and those that were close to
maturity, and reinvested the proceeds in issues with longer durations, which
provided better call protection and attractive yields that helped to support the
dividend. The Fund's longer duration should help position NPV to regain net
asset value if the bond market recovers and interest rates decline.
WHAT ABOUT THE FUND'S SHARE PRICE PERFORMANCE?
Over the past year, concerns about rising interest rates, inflation, and the
Federal Reserve's monetary policies created a negative environment in the
fixed-income markets. In addition, worries about the transition to the year 2000
precipitated an early start to tax-swap season, as investors attempted to offset
profits in the equity markets by selling fixed-income investments at a loss. The
liquidity concerns engendered by Y2K also prompted some investors to opt for
money market funds and other short-term instruments as the best place to park
cash over the year end. All of these factors negatively impacted the market
demand for exchange-traded funds such as NPV. This resulted in a decline in the
Fund's share price. Since the prevailing interest rate environment in November
1999 was higher than that of a year earlier, the Fund's NAV also declined, as
bond prices fell while interest rates rose. As a result of these factors, NPV's
premium (share price above NAV) narrowed over the past 12 months.
Premium6 Total Return on Share Price
------------------ ---------------------------
1-Year Ended Taxable-
11/30/98 11/30/99 11/30/99 Equivalent1
-------- -------- ------------ -----------
NPV 8.20% 3.63% -9.37% -6.59%
-------- -------- ------------ -----------
Past performance is not predictive of future results.
For additional information on NPV, see its Performance Overview in this report.
WHAT KEY STRATEGIES WERE USED TO MANAGE NPV DURING THE PERIOD COVERED BY THIS
REPORT?
NPV was managed with the goals of supporting and strengthening its long-term
dividend-paying capabilities, improving call protection, and enhancing the
Fund's tax efficiency.
With only 8% of its portfolio subject to bond calls in 2000 and 2001, NPV
currently provides excellent levels of call protection, which should provide
additional protection and stability for the Fund's dividend over the next two
years. To reduce the effect of calls, we continuously work on strategies
designed to enhance call protection. As mentioned earlier, our active
participation in the current market has benefited the Fund by adding bonds
designed to provide both higher yields and extended call protection. This should
enable the Fund to continue to offer our shareholders competitive levels of
dividends.
During the past year, we found several opportunities to add to the Fund's
diversification while picking up additional yield. One new name in the portfolio
involved AAA-rated financing for an assisted living facility, Beth Shalom, which
is located in Henrico County and offered especially attractive yields. We also
purchased AAA rated bonds issued for a new state clean water program that will
provide funding to update and renovate local drinking water systems. This is a
special pooled program offered by the state of Virginia designed to help smaller
local municipalities that would otherwise have difficulty accessing the capital
markets. Because the program involved a first-time issuer, Nuveen Research
played an important role in helping us understand and evaluate the credit
quality of this issue. Nuveen Research was also involved in our purchase of A
rated bonds issued by the Prince William County Park Authority for a new parking
facility. The authority is an infrequent issuer, and our research provided the
background we needed to make the purchase decision. We also recently added bonds
issued by the government of the Virgin Islands, which offer double tax-exemption
for the shareholders of state funds. These BBB bonds provided yields that were
50 to 70 basis points higher than those typically available in the market at the
time of purchase.
Over the past six months, enhanced tax efficiency has become an increasing
focus for us, as the rising interest rate environment offered opportunities to
benefit the Fund through active trading. The strategy we employed involved
selling selected bonds that were trading at a loss, recognizing the capital
losses, and then rolling the proceeds into bonds with similar characteristics,
while offering attractive yields and better call protection. Some of the bonds
we sold were due to mature or scheduled to be called within the next few months,
while others were bonds that we had purchased earlier this year that were now
producing a lower income stream than that recently available in the market. This
trading not only gave us capital losses with which to offset current and future
capital gains, thereby protecting shareholders from additional taxes, but also -
in most cases - strengthened the net earnings of the Fund.
NPV offers excellent credit quality, with 75% of the Fund's assets invested
in bonds rated AAA/U.S. guaranteed and AA at the end of November 1999. The Fund
also had an 8% allocation of BBB and non-rated bonds. These lower-rated bonds
generally provided enhanced levels of yield and helped to support the dividend,
especially as credit spreads (or the difference in yield between higher credit
quality securities and those of lower credit quality) widened in recent months.
WHAT IS NUVEEN'S OUTLOOK FOR NPV?
In general, we believe that NPV is currently well-positioned for a potential
recovery in the bond market. In coming months, if current market conditions
persist, we will continue to focus on enhancing the Fund's tax efficiency. In
this way, we can strengthen the long-term dividend-paying capabilities of the
Fund. We also plan to continue to concentrate on keeping the Fund well
diversified. Implementing strategies such as these that have the potential to
benefit the Fund demonstrates the value that can be added by an active bond
manager such as Nuveen.
1 The taxable-equivalent total return represents the total return that must be
earned on a taxable investment in order to equal the total return of the
Nuveen fund on an after-tax basis. The taxable-equivalent total return is
based on the annualized total return and a combined federal and state income
tax rate of 35%.
6 A fund's premium represents the percentage difference between the fund's share
price and its net asset value (NAV).
<PAGE>
Nuveen Virginia Premium Income Municipal Fund
Performance Overview
As of November 30, 1999
NPV
Portfolio Statistics
Inception Date 3/93
- --------------------------------------------------
Share Price $14 3/16
- --------------------------------------------------
Net Asset Value $13.69
- --------------------------------------------------
Market Yield 5.92%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Tax Rate)1 8.58%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Tax Rate)1 9.11%
- --------------------------------------------------
Fund Net Assets ($000) $182,206
- --------------------------------------------------
Effective Maturity (Years) 17.26
- --------------------------------------------------
Leverage-Adjusted Duration 11.94
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year -9.37% -4.96%
- --------------------------------------------------
5-Year 10.70% 10.67%
- --------------------------------------------------
Since Inception 4.71% 5.37%
- --------------------------------------------------
Taxable-Equivalent Total Return2
On Share Price On NAV
- --------------------------------------------------
1-Year -6.59% -1.94%
- --------------------------------------------------
5-Year 13.95% 13.92%
- --------------------------------------------------
Since Inception 7.81% 8.51%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 26%
- --------------------------------------------------
Water and Sewer 13%
- --------------------------------------------------
Healthcare 11%
- --------------------------------------------------
Utilities 10%
- --------------------------------------------------
Housing/Single Family 9%
- --------------------------------------------------
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share
12/98 0.0685
1/99 0.0685
2/99 0.0685
3/99 0.0685
4/99 0.0685
5/99 0.07
6/99 0.07
7/99 0.07
8/99 0.07
9/99 0.07
10/99 0.07
11/99 0.07
Line Chart:
Share Price Performance
12/1/98 16.88
16.75
17.13
16.94
16.44
16
15.63
15.88
16
16
16.06
16.06
16.25
16.25
16.19
16.5
16.5625
16.44
16.31
16.25
16.13
15.94
15.88
16.06
16
15.94
15.88
15.56
15.75
16.19
16.69
17
16.69
16.31
16.13
16.13
16.31
16.31
15.94
15.5
15.25
15.38
15.25
15
14.88
14.94
14.63
14.56
14.38
11/30/99 14.1875
Weekly Closing Price
Past performance is not predictive of future results.
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.
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND (NPG)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Consumer Staples - 6.0%
$ 3,000,000 Albany Dougherty Payroll Development Authority (Georgia), Solid Waste 5/08 at 101 AA $2,632,350
Disposal Revenue Bonds (The Procter and Gamble Paper Products
Company Project), 1998 Series, 5.300%, 5/15/26
(Alternative Minimum Tax)
2,000,000 Development Authority of Cartersville (Georgia), Sewage Facilities 5/07 at 101 A+ 1,973,220
Refunding Revenue Bonds (Anheuser-Busch Project), Series 1997,
6.125%, 5/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 10.3%
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 1,193,314
1,375,000 5.750%, 12/01/25 12/05 at 102 AAA 1,339,731
1,555,000 Development Authority of DeKalb County, Revenue Bonds (Emory 10/04 at 102 Aa1 1,607,155
University Project), Series 1994-A, 6.000%, 10/01/14
2,650,000 Private Colleges and Universities Authority (Georgia), Student Housing 6/09 at 102 A 2,325,481
Revenue Bonds (Mercer Housing Corporation Project), Tax-Exempt
Series 1999A, 5.375%, 6/01/31
1,550,000 Private Colleges and Universities Authority (Georgia), Revenue Bonds 6/03 at 102 AA 1,489,519
(Agnes Scott College Project), Series 1993, 5.625%, 6/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 10.2%
3,000,000 Hospital Authority of Albany-Dougherty County, Georgia, Revenue Bonds 9/03 at 102 AAA 3,009,900
(Phoebe Putney Memorial Hospital), Series 1993, 5.700%, 9/01/13
1,965,000 The Hospital Authority of Hall County and the City of Gainesville, 10/05 at 102 AAA 1,943,189
Revenue Anticipation Certificates (Northeast Georgia Healthcare
Project), Series 1995, 6.000%, 10/01/25
3,000,000 The Glynn-Brunswick Memorial Hospital Authority, Revenue 8/06 at 102 AAA 2,924,130
Anticipation Certificates (Southeast Georgia Health Systems Project),
Series 1996, 5.250%, 8/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 13.0%
1,145,000 Housing Authority of Clayton County (Georgia), Multifamily Housing 12/05 at 102 AAA 1,112,539
Revenue Bonds, Series 1995 (The Advantages Project), 5.800%, 12/01/20
3,400,000 Housing Authority of the County of DeKalb, Georgia, Multifamily Housing 1/05 at 102 AAA 3,596,656
Revenue Bonds (The Lakes at Indian Creek Apartments Project),
Series 1994, 7.150%, 1/01/25 (Alternative Minimum Tax)
975,000 Housing Authority of the City of Decatur, Mortgage Revenue Refunding 7/02 at 102 AAA 998,566
Bonds, Series 1992A (FHA- Insured Mortgage Loan - Park Trace
Apartments, Section 8 Assisted Project), 6.450%, 7/01/25
3,000,000 Macon-Bibb County Urban Development Authority, Multifamily Housing 1/04 at 103 AAA 2,789,370
Refunding Revenue Bonds, Series 1997A, 5.550%, 1/01/24
1,500,000 Housing Authority of the City of Marietta, Georgia, Multifamily 10/06 at 102 AAA 1,500,900
Housing Revenue Bonds (GNMA Collateralized - Country Oaks
Apartments), Series 1996, 6.150%, 10/20/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 5.2%
475,000 Housing Authority of Fulton County, Georgia, Single Family Mortgage 3/05 at 102 AAA 486,761
Revenue Bonds (GNMA Mortgage-Backed Securities Program),
Series 1995A, 6.550%, 3/01/18 (Alternative Minimum Tax)
2,995,000 Georgia Housing and Finance Authority, Single Family Mortgage 6/04 at 102 AAA 3,068,168
Bonds, 1994 Series A (FHA-Insured or VA Guaranteed Mortgage Loans),
6.500%, 12/01/17 (Alternative Minimum Tax)
420,000 Georgia Housing and Finance Authority, Single Family Mortgage Bonds, 6/06 at 102 AAA 427,690
1996 Series A Subseries A-2, 6.450%, 12/01/27 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/General - 7.4%
$ 2,500,000 Forsyth County School District (Georgia), General Obligation Bonds, 2/10 at 102 Aa2 $2,478,275
Series 1999, 5.750%, 2/01/19
3,500,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 7/06 at 101 1/2 A 3,229,065
(General Obligation Bonds), 5.400%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 15.7%
1,000,000 Downtown Development Authority of the City of Atlanta 10/02 at 102 AA 1,053,380
(Georgia), Refunding Revenue Bonds (Underground Atlanta Project),
Series 1992, 6.250%, 10/01/12
3,000,000 Solid Waste Management Authority of the City of Atlanta, Revenue 12/06 at 100 AA 2,742,480
Bonds (Landfill Closure Project), Series 1996, 5.250%, 12/01/21
4,000,000 The Hospital Authority of Clarke County, Georgia, Hospital Revenue 1/09 at 101 AAA 3,551,840
Certificates (Athens Regional Medical Center Project), Series 1999,
5.250%, 1/01/29
1,250,000 Cobb-Marietta Coliseum and Exhibit Hall Authority (Georgia), Revenue No Opt. Call AAA 1,280,588
Refunding Bonds, Series 1993, 5.500%, 10/01/12
2,000,000 The Fulton-DeKalb Hospital Authority (Georgia), Revenue Refunding 7/03 at 102 AAA 1,880,720
Certificates, Series 1993, 5.500%, 1/01/20
1,000,000 Metropolitan Atlanta Rapid Transit Authority (Georgia), Sales Tax No Opt. Call AAA 1,054,230
Revenue Refunding Bonds, Series P, 6.250%, 7/01/20
500,000 Puerto Rico Highway and Transportation Authority, Highway 7/03 at 101 1/2 A 457,910
Revenue Bonds (Series W), 5.250%, 7/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 3.4%
1,500,000 City of Atlanta, Airport Facilities Revenue Bonds, Series 1990, 1/01 at 102 AAA 1,508,025
6.250%, 1/01/21 (Alternative Minimum Tax)
1,000,000 City of Atlanta, Airport Facilities Revenue Refunding Bonds, No Opt. Call AAA 1,100,360
Series 1994A, 6.500%, 1/01/09
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 12.4%
3,115,000 City of Albany (Georgia), Sewerage System Revenue Bonds, 7/02 at 102 AAA 3,340,183
Series 1992, 6.625%, 7/01/17 (Pre-refunded to 7/01/02)
500,000 City of Atlanta (Georgia), General Obligation Bonds, Public 12/04 at 102 AA*** 540,325
Improvement Bonds, Series 1994A, 6.100%, 12/01/19
(Pre-refunded to 12/01/04)
3,450,000 City of Atlanta, Georgia, Water and Sewerage Revenue Bonds, 1/04 at 100 AAA 3,558,675
Series 1993, 5.000%, 1/01/15 (Pre-refunded to 1/01/04)
2,000,000 Fulco Hospital Authority, Revenue Anticipation Certificates 9/02 at 102 Baa1*** 2,128,340
(Georgia Baptist Health Care System Project), Series 1992A,
6.375%, 9/01/22 (Pre-refunded to 9/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 12.6%
4,500,000 Development Authority of Burke County (Georgia), Pollution Control 5/04 at 102 A 3,983,805
Revenue Bonds (Georgia Power Company - Vogtle Plant Project),
Third Series of 1999, 5.450%, 5/01/34 (Alternative Minimum Tax)
1,900,000 Municipal Electric Authority of Georgia, General Power Revenue 1/03 at 100 AAA 1,813,037
Bonds, 1992B Series, 5.500%, 1/01/18
1,750,000 Municipal Electric Authority of Georgia, Project One Special No Opt. Call A 1,881,424
Obligation Bonds, Fifth Crossover Series, 6.400%, 1/01/09
2,000,000 Development Authority of Monroe County (Georgia), Pollution 3/00 at 102 AA- 2,019,360
Control Revenue Bonds (Gulf Power Company Plant - Scherer
Project), First Series 1994, 6.300%, 9/01/24
<PAGE>
Portfolio of Investments
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND (NPG) (continued)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer - 1.3%
$ 1,000,000 City of Milledgeville (Georgia), Water and Sewerage Revenue and No Opt. Call AAA $1,027,830
Refunding Bonds, Series 1996, 6.000%, 12/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
$ 76,680,000 Total Investments - (cost $74,404,664) - 97.5% 75,048,491
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,948,714
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $76,997,205
====================================================================================================================
* 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.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND (NMY)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 7.5%
$ 1,000,000 Maryland Economic Development Corporation, Student Housing 6/09 at 102 Baa3 $ 968,220
Revenue Bonds (Collegiate Housing Foundation - Salisbury Project),
Series 1999A, 6.000%, 6/01/19
1,500,000 Maryland Economic Development Corporation, Student Housing 6/09 at 102 Baa3 1,383,660
Revenue Bonds (Collegiate Housing Foundation - University Courtyard
Project), Series 1999A, 5.750%, 6/01/24
1,500,000 Maryland Health and Higher Educational Facilities Authority, 10/09 at 101 A 1,256,010
Revenue Bonds, Loyola College Issue, Series 1999,
5.000%, 10/01/39
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 AA 972,760
2,000,000 5.625%, 7/01/27 7/07 at 102 AA 1,887,280
9,445,000 Morgan State University, Maryland, Academic Fees and Auxiliary No Opt. Call AAA 9,846,224
Facilities Fees, Revenue Refunding Bonds, 1993 Series, 6.100%, 7/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 16.9%
City of Gaithersburg, Maryland, Hospital Facilities Refunding
and Improvement Revenue Bonds (Shady Grove Adventist Hospital),
Series 1995:
2,550,000 6.500%, 9/01/12 No Opt. Call AAA 2,852,175
6,265,000 5.500%, 9/01/15 9/05 at 102 AAA 6,100,356
1,930,000 Maryland Economic Development Corporation (Health and Mental 4/11 at 102 N/R 1,794,958
Hygiene Providers Facilities Acquisition Program), Revenue Bonds,
Series 1996A, 7.625%, 4/01/21
2,000,000 Maryland Health and Higher Educational Facilities Authority, Kaiser 6/09 at 101 A 1,844,020
Permanent Revenue Bonds, 1998 Series A, 5.375%, 7/01/15
1,855,000 Maryland Health and Higher Educational Facilities Authority, Refunding 7/03 at 102 AAA 1,772,953
Revenue Bonds, Francis Scott Key Medical Center Issue,
Series 1993, 5.000%, 7/01/13
2,250,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/08 at 101 AAA 1,944,270
Bonds, Johns Hopkins Medicine, Howard County General Hospital
Acquisition Issue, Series 1998, 5.000%, 7/01/29
2,350,000 Maryland Health and Higher Educational Facilities Authority, Project 7/03 at 102 AAA 2,358,272
and Refunding Revenue Bonds, Sinai Hospital of Baltimore Issue,
Series 1993, 5.500%, 7/01/13
6,500,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101 AAA 5,741,970
Revenue Bonds, Anne Arundel Medical Center Issue,
Series 1998, 5.125%, 7/01/28
4,000,000 Maryland Health and Higher Educational Facilities Authority, 1/08 at 101 Aaa 3,454,560
Revenue Bonds, Upper Chesapeake Hospitals Issue,
Series 1998A, 5.125%, 1/01/38
1,670,000 Maryland Health and Higher Educational Facilities Authority, Hospital 7/08 at 101 A3 1,415,091
Refunding and Revenue Bonds, Union Hospital of Cecil County Issue,
Series 1998, 5.100%, 7/01/22
Prince George's County, Maryland, Project and Refunding Revenue
Bonds (Dimensions Health Corporation Issue), Series 1994:
3,080,000 5.375%, 7/01/14 7/04 at 102 Baa1 2,616,891
6,000,000 5.300%, 7/01/24 7/04 at 102 Baa1 4,777,260
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 16.8%
4,000,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB 4,222,560
Bonds (Woodside Apartments Project), Series 1994,
7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory put 12/01/03)
1,795,000 County Commissioners of Charles County, Maryland, Mortgage 5/05 at 102 AAA 1,828,190
Revenue Refunding Bonds, Series 1995A (Holly Station IV Townhouses
Project - FHA Insured Mortgage Loan), 6.450%, 5/01/26
Howard County, Maryland, Mortgage Revenue Refunding Bonds,
Series 1996A (FHA-Insured Mortgage Loan - Normandy Woods III
Apartments Project):
700,000 6.000%, 7/01/17 7/06 at 102 AAA 703,682
2,000,000 6.100%, 7/01/25 7/06 at 102 AAA 2,002,520
<PAGE>
Portfolio of Investments
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND (NMY) (continued)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Multifamily (continued)
$ 1,000,000 Community Development Administration, Department of Housing 5/02 at 102 Aa2 $1,041,090
and Community Development, State of Maryland, Multifamily
Housing Revenue Bonds (Insured Mortgage Loans), 1992
Series A, 6.850%, 5/15/33 (Alternative Minimum Tax)
1,150,000 Community Development Administration, Department of Housing and 5/03 at 102 Aa2 1,193,263
Community Development, State of Maryland, Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), 1993 Series B,
6.625%, 5/15/23
2,500,000 Community Development Administration, Department of Housing and 1/09 at 101 Aa2 2,151,450
Community Development, State of Maryland, Housing Revenue Bonds,
1999 Series A, 5.350%, 7/01/41 (Alternative Minimum Tax)
880,000 Community Development Administration, Department of Housing 1/10 at 100 Aa2 879,938
and Community Development, State of Maryland, Housing Revenue
Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax)
3,075,000 Community Development Administration, Department of Housing 5/03 at 102 Aa 3,086,224
and Community Development, State of Maryland, Multifamily
Housing Revenue Bonds (Insured Mortgage Loans), 1993
Series D, 6.050%, 5/15/24
2,000,000 Housing Opportunities Commission of Montgomery County 7/05 at 102 Aa2 1,991,820
(Maryland), Multifamily Housing Revenue Bonds, 1995 Series A,
5.900%, 7/01/15
1,500,000 Housing Opportunities Commission of Montgomery County 7/06 at 102 Aaa 1,462,605
(Maryland), Multifamily Housing Revenue Bonds, 1996 Series B,
5.900%, 7/01/26
3,830,000 Housing Opportunities Commission of Montgomery County 7/08 at 101 Aaa 3,345,122
(Maryland), Multifamily Series Housing Development Bonds,
1998 Series A, 5.200%, 7/01/30
1,000,000 Housing Authority of Prince George's County (Maryland), Mortgage 1/03 at 102 AAA 1,021,830
Revenue Refunding Bonds, 1993A (GNMA Collateralized - Stevenson
Apartments Project), 6.350%, 7/20/20
Housing Authority of Prince George's County (Maryland), Mortgage
Revenue Refunding Bonds, Series 1993A (Cherry Hill Apartments
Project):
1,090,000 5.900%, 9/20/10 9/03 at 102 AAA 1,106,448
1,930,000 6.000%, 9/20/15 9/03 at 102 AAA 1,935,423
1,500,000 Housing Authority of Prince George's County (Maryland), Mortgage 12/04 at 102 AAA 1,571,895
Revenue Refunding Bonds, Series 1995A (GNMA Collateralized -
Riverview Terrace Apartments Project), 6.700%, 6/20/20
Housing Authority of Prince George's County (Maryland), Mortgage
Revenue Refunding Bonds, Series 1995A (GNMA Collateralized -
Overlook Apartments Project):
2,000,000 5.700%, 12/20/15 12/05 at 102 AAA 1,950,680
1,670,000 5.750%, 12/20/19 12/05 at 102 AAA 1,608,427
1,000,000 Housing Authority of Prince George's County (Maryland), 5/00 at 100 AAA 961,980
Collateralized Foxglenn Apartments Project, Series 1998A,
5.450%, 5/20/14 (Alternative Minimum Tax)
540,000 Housing Authority of Prince George's County (Maryland), Mortgage 9/09 at 102 AAA 531,932
Revenue Bonds, Series 1999 (GNMA Collateralized - University
Landing at Langley Apartments Project), 6.100%, 3/20/41
(Alternative Minimum Tax)
800,000 The Mayor and Council of Rockville (Maryland), Mortgage Revenue 1/04 at 102 AAA 796,984
Refunding Bonds, Series 1994A (FHA-Insured Mortgage Loan -The
Summit Apartments Project), 5.250%, 7/01/09
1,000,000 City of Salisbury, Maryland, Mortgage Revenue Refunding Bonds, 12/04 at 102 AAA 1,037,940
Series 1995A (FHA-Insured Mortgage Loan - College Lane
Apartments Project), 6.600%, 12/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 5.8%
595,000 Community Development Administration, Department of Housing 4/04 at 102 Aa2 602,461
and Community Development, State of Maryland, Single Family
Program Bonds, 1994 First Series, 5.900%, 4/01/11
1,000,000 Community Development Administration, Department of Housing 4/04 at 102 Aa 1,024,910
and Community Development, State of Maryland, Single Family
Program Bonds, 1994 Fourth Series, 6.450%, 4/01/14
2,635,000 Community Development Administration, Department of Housing 4/04 at 102 Aa 2,690,361
and Community Development, State of Maryland, Single Family
Program Bonds, 1994 Fifth Series, 6.750%, 4/01/26
(Alternative Minimum Tax)
735,000 Community Development Administration, Department of Housing 4/03 at 102 Aa2 757,719
and Community Development, State of Maryland, Single Family
Program Bonds, 1992 Fourth Series, 6.800%, 4/01/22
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 1,750,000 Community Development Administration, Department of Housing 4/04 at 102 Aa $1,760,290
and Community Development, State of Maryland, Single Family
Program Bonds, 1993 Third Series, 4.950%, 4/01/06
1,000,000 Community Development Administration, Department of Housing 4/06 at 102 Aa2 1,011,560
and Community Development, State of Maryland, Single Family
Program Bonds, 1996 Sixth Series, 6.200%, 4/01/22
(Alternative Minimum Tax)
2,000,000 Housing Opportunities Commission of Montgomery County 7/04 at 102 Aa2 2,045,820
(Maryland), Single Family Mortgage Revenue Bonds, 1994 Series A,
6.600%, 7/01/14
1,025,000 Housing Authority of Prince George's County (Maryland), 6/04 at 102 AAA 1,046,289
GNMA/FNMA Collateralized Single Family Mortgage Revenue
Bonds, Series 1994A, 6.350%, 6/01/11 (Alternative Minimum Tax)
1,665,000 Housing Authority of Prince George's County (Maryland), 8/07 at 102 AAA 1,588,676
FHLMC/FNMA/GNMA Collateralized Single Family Mortgage
Revenue Bonds, Series 1997, 5.625%, 8/01/17
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 0.4%
1,000,000 Carroll County, Maryland, Revenue Bonds, EMA Obligated Group 1/09 at 101 AA 939,930
Issue (Fairhaven and Copper Ridge), Refunding Revenue Bonds,
Series 1999 A, 5.625%, 1/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 7.1%
2,000,000 Baltimore County, Maryland, General Obligation Bonds, Baltimore 8/03 at 102 AAA 1,952,120
County Metropolitan District Bonds (64th Issue), 4.900%, 8/01/11
1,000,000 Mayor and City Council of Baltimore, General Obligation Serial Bonds, No Opt. Call A1 1,136,830
Consolidated Public Improvement Bonds of 1989, Series B,
7.150%, 10/15/08
Mayor and City Council of Baltimore, General Obligation
Consolidated Public Improvement Refunding Bonds of 1995, Series
A:
1,200,000 7.375%, 10/15/03 No Opt. Call AAA 1,320,624
5,000,000 7.250%, 10/15/04 No Opt. Call AAA 5,566,850
1,000,000 Mayor and City Council of Baltimore, General Obligation Serial Bonds, No Opt. Call AAA 1,095,340
Consolidated Public Improvement Bonds of 1991, Series C,
6.375%, 10/15/07
Frederick County, Maryland, General Obligation Public Facilities
Bonds of 1999:
500,000 5.250%, 7/01/14 7/09 at 101 AA 489,265
3,000,000 5.250%, 7/01/18 7/09 at 101 AA 2,838,120
1,000,000 Prince George's County, Maryland, General Obligation Bonds, 3/03 at 102 AAA 1,034,180
Consolidated Public Improvement Bonds, Series 1993, 5.750%, 3/15/09
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 10.7%
2,730,000 Anne Arundel County, General Obligation Bonds, Consolidated Water 4/03 at 102 AA+ 2,728,608
and Sewer Bonds, 1993 Refunding Series, 5.250%, 4/15/12
1,000,000 Mayor and City Council of Baltimore, Certificates of Participation 10/07 at 102 AAA 925,880
(Emergency Telecommunications Facilities), Series 1997A,
5.000%, 10/01/17
1,465,000 Maryland Department of Housing and Community Development, 6/08 at 101 Aaa 1,323,012
Community Development Administration, Infrastructure Financing
Bonds (MBIA Insured), 1998 Series B, 5.200%, 6/01/28
4,415,000 Maryland Stadium Authority, Sports Facilities Lease Revenue Bonds, 12/99 at 102 Aa2 4,513,984
Series 1989D, 7.500%, 12/15/10 (Alternative Minimum Tax)
4,955,000 Maryland Stadium Authority, Sports Facilities Lease Revenue Bonds, 3/06 at 101 AAA 4,955,941
Series 1996, 5.750%, 3/01/18
2,200,000 Puerto Rico Public Buildings Authority, Public Education and 7/03 at 101 1/2 A 2,205,588
Health Facilities Refunding Bonds, Series M, Guaranteed by the
Commonwealth of Puerto Rico, 5.750%, 7/01/15
1,000,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin Islands 10/10 at 101 BBB- 1,004,800
Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24
1,780,000 Washington County Sanitary District, Refunding Bonds of 1993, 1/03 at 102 AAA 1,736,817
Series F (Guaranteed by the Full Faith and Credit Pledge of the
County Commissioners of Washington County), 5.375%, 1/01/15
1,250,000 Washington Suburban Sanitary District (Montgomery and 1/02 at 102 Aa1 1,310,025
Prince George's Counties, Maryland) General Construction
Refunding Bonds of 1991 (Second Series), 6.100%, 1/01/04
1,000,000 Washington Suburban Sanitary District (Montgomery and 12/03 at 102 Aa1 1,001,780
Prince George's Counties, Maryland), Water Supply Refunding
Bonds of 1993, 5.250%, 12/01/11
<PAGE>
Portfolio of Investments
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND (NMY) (continued)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 1,500,000 Washington Suburban Sanitary District (Montgomery and 6/03 at 102 Aa1 $1,508,505
Prince George's Counties, Maryland), Sewage Disposal Bonds
of 1993, 5.375%, 6/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 4.4%
Maryland Transportation Authority, Special Obligation Revenue
Bonds, Baltimore/Washington International Airport Projects,
Series 1994-A (Qualified Airport Bonds):
5,500,000 6.250%, 7/01/14 (Alternative Minimum Tax) 7/04 at 102 AAA 5,677,540
305,000 6.400%, 7/01/19 (Alternative Minimum Tax) 7/04 at 102 AAA 305,918
1,500,000 Maryland Transportation Authority, Transportation Facilities Projects 7/02 at 100 A+ 1,506,870
Revenue Bonds, Series 1992, 5.750%, 7/01/15
2,000,000 Washington Metropolitan Area Transit Authority (District of No Opt. Call AAA 2,132,020
Columbia), Gross Revenue Transit Refunding Bonds, Series 1993,
6.000%, 7/01/07
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 5.8%
1,875,000 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 AAA 1,878,881
Revenue Bonds, Good Samaritan Hospital Issue, Series 1993,
5.750%, 7/01/19
3,125,000 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 Aaa 3,002,625
Revenue Bonds, Howard County General Hospital Issue,
Series 1993, 5.500%, 7/01/25
2,500,000 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 2,208,475
Revenue Bonds, Helix Health Issue, Series 1997, 5.000%, 7/01/27
3,000,000 Maryland Transportation Authority, Transportation Facilities Projects 7/01 at 102 A+*** 3,156,810
Revenue Bonds, Series 1991, 6.500%, 7/01/06 (Pre-refunded to 7/01/01)
1,010,000 Puerto Rico Telephone Authority, Revenue Bonds, Series N, 1/03 at 101 1/2 AAA 1,056,874
5.500%, 1/01/22 (Pre-refunded to 1/01/03)
1,115,000 Washington Suburban Sanitary District (Montgomery and 6/02 at 102 Aa1*** 1,181,933
Prince George's Counties, Maryland), Water Supply Bonds of 1992,
6.200%, 6/01/09 (Pre-refunded to 6/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 20.5%
6,000,000 Anne Arundel County, Maryland, Pollution Control Revenue 4/04 at 102 A 5,950,140
Refunding Bonds (Baltimore Gas and Electric Company Project),
Series 1994, 6.000%, 4/01/24
7,000,000 Calvert County, Maryland, Pollution Control Revenue Refunding 7/04 at 102 A 7,001,400
Bonds (Baltimore Gas and Electric Company Project), Series 1993,
5.550%, 7/15/14
9,600,000 Montgomery County, Maryland, Solid Waste System Revenue 6/03 at 102 AAA 9,734,880
Bonds (1993 Series A), 5.875%, 6/01/13 (Alternative Minimum Tax)
Northeast Maryland Waste Disposal Authority, Resource Recovery
Revenue Refunding Bonds (Southwest Resource Recovery Facility),
Series 1993:
1,625,000 6.900%, 1/01/00 No Opt. Call AAA 1,629,030
3,000,000 7.150%, 1/01/04 No Opt. Call AAA 3,273,810
4,675,000 7.200%, 1/01/05 1/04 at 102 AAA 5,164,897
5,000,000 Prince George's County, Maryland, Pollution Control Revenue 1/03 at 102 A1 5,094,000
Refunding Bonds (Potomac Electric Project), 1993 Series,
6.375%, 1/15/23
5,750,000 Prince George's County, Maryland, Solid Waste Management System 6/03 at 102 AAA 5,659,610
Revenue Bonds, Series 1993, 5.250%, 6/15/13
1,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/04 at 100 BBB+ 950,910
Series T, 5.500%, 7/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 2.6%
3,000,000 Mayor and City Council of Baltimore, Project and Refunding Revenue No Opt. Call AAA 2,671,350
Bonds (Water Projects), Series 1994-A, 5.000%, 7/01/24
2,250,000 Mayor and City Council of Baltimore, Project and Refunding Revenue 7/08 at 101 AAA 1,964,790
Bonds (Water Projects), Series 1998-A, 5.000%, 7/01/28
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer (continued)
$ 1,000,000 Mayor and City Council of Baltimore, Project and Refunding Revenue 7/06 at 101 AAA $ 947,240
Bonds (Water Projects), Series 1996-A, 5.500%, 7/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
$ 217,085,000 Total Investments - (cost $215,573,641) - 98.5% 213,685,221
=============
Other Assets Less Liabilities - 1.5% 3,199,671
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $216,884,892
====================================================================================================================
* 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>
Portfolio of Investments
NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND (NNC)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Basic Materials - 4.0%
$ 3,500,000 Haywood County Industrial Facilities and Pollution Control Financing 12/05 at 102 Baa1 $3,186,925
Authority (North Carolina), Environmental Improvement Revenue
Bonds (Champion International Corporation Project), Series 1995A,
5.750%, 12/01/25 (Alternative Minimum Tax)
2,000,000 Haywood County Industrial Facilities and Pollution Control 3/06 at 102 Baa1 1,889,100
Financing Authority (North Carolina), Pollution Control Refunding
Revenue Bonds (Champion International Corporation Project),
Series 1995, 6.000%, 3/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 8.9%
2,300,000 Appalachian State University, Utilities System Revenue Refunding 5/08 at 102 AAA 2,087,066
Bonds, Series 1998 of the Board of Governors of the University
of North Carolina), 5.000%, 5/15/18
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 1,002,650
2,400,000 6.300%, 7/01/15 (Alternative Minimum Tax) 7/05 at 102 A 2,420,688
5,875,000 North Carolina State Education Assistance Authority, Guaranteed 7/06 at 102 A 5,930,636
Student Loan Revenue Bonds, 1996 Series C (Subordinate Lien),
6.350%, 7/01/16 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 17.2%
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 1,514,295
2,150,000 6.250%, 1/01/20 1/02 at 102 AA 2,171,027
3,000,000 Craven Regional Medical Authority (North Carolina), Insured 10/03 at 102 AAA 2,904,660
Health Care Facilities Revenue Bonds, Series 1993, 5.625%, 10/01/17
2,725,000 County of New Hanover, North Carolina, Hospital Revenue Bonds 10/03 at 102 AAA 2,285,212
(New Hanover Regional Medical Center Project), Series 1993,
4.750%, 10/01/23
2,000,000 North Carolina Medical Care Commission, Health Care Facilities 10/09 at 101 A 2,000,560
Revenue Bonds (Stanly Memorial Hospital Project), Series 1999,
6.375%, 10/01/29
3,000,000 North Carolina Medical Care Commission, Hospital Revenue 5/02 at 102 AA 2,919,360
Refunding Bonds (Carolina Medicorp Project), Series 1992,
5.500%, 5/01/15
5,615,000 North Carolina Medical Care Commission, Hospital Revenue Bonds 10/08 at 101 AA- 4,547,083
(FirstHealth of the Carolinas Project), Series 1998, 4.750%, 10/01/26
4,090,000 Board of Governors of the University of North Carolina, University 2/06 at 102 AA 3,630,366
of North Carolina Hospitals at Chapel Hill Revenue Bonds, Series 1996,
5.250%, 2/15/26
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.8%
1,000,000 Housing Authority of the City of Asheville (North Carolina), 11/07 at 102 AAA 927,260
Multifamily Housing Revenue Bonds (GNMA-Collateralized -
Woodridge Apartments), Series 1997, 5.800%, 11/20/39
(Alternative Minimum Tax)
1,000,000 City of Charlotte, North Carolina, Mortgage Revenue Refunding 1/03 at 105 AAA 972,470
Bonds (FHA-Insured Mortgage Loan - Tryon Hills Apartments Project),
Series 1993A, 5.875%, 1/01/25
North Carolina Housing Finance Agency, Multifamily Revenue Bonds
(1993 FHA-Insured Mortgage Loan Resolution), Series 1993:
650,000 5.800%, 7/01/14 1/03 at 102 AA 651,092
1,000,000 5.900%, 7/01/26 1/03 at 102 AA 975,070
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 18.9%
5,075,000 North Carolina Housing Finance Agency, Single Family Revenue 3/04 at 102 AA 5,206,899
Bonds, Series X (1985 Resolution), 6.700%, 9/01/26
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 2,805,000 North Carolina Housing Finance Agency, Single Family Revenue 9/02 at 102 AA $2,878,800
Bonds, Series V (1985 Resolution), 6.800%, 9/01/25
(Alternative Minimum Tax)
190,000 North Carolina Housing Finance Agency, Single Family Revenue 3/00 at 102 AA 192,098
Bonds, Series-M (1985 Resolution), 7.850%, 9/01/28
(Alternative Minimum Tax)
4,700,000 North Carolina Housing Finance Agency, Home Ownership Revenue 7/09 at 100 AA 4,351,072
Bonds, Series 5-A (1998 Trust Agreement), 5.625%, 7/01/30
(Alternative Minimum Tax)
6,600,000 North Carolina Housing Finance Agency, Home Ownership Revenue 7/09 at 100 AA 6,606,138
Bonds, Series 6-A (1998 Trust Agreement), 6.200%, 1/01/29 (WI)
4,220,000 North Carolina Housing Finance Agency, Single Family Revenue Bonds, 3/06 at 102 AA 4,268,150
Series HH (1985 Resolution), 6.300%, 3/01/26 (Alternative Minimum Tax)
750,000 North Carolina Housing Finance Agency, Home Ownership Revenue 1/09 at 101 AA 651,623
Bonds, Series 3-A (1998 Trust Agreement), 5.200%, 7/01/26
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 6.1%
2,000,000 Orange County, General Obligation School Bonds, Series 1994, 2/04 at 102 AA+ 2,049,340
5.500%, 2/01/11
6,250,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 7/06 at 101 1/2 A 5,766,188
(General Obligation Bonds), 5.400%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 15.4%
2,500,000 Centennial Authority, North Carolina, Hotel Tax Revenue Bonds 9/07 at 102 AAA 2,274,425
(Arena Project), Series 1997, 5.125%, 9/01/19
6,000,000 City of Charlotte, North Carolina, Refunding Certificates of 12/03 at 102 AAA 5,557,680
Participation (Convention Facility Project), Series 1993C,
5.250%, 12/01/20
2,180,000 The City of Concord, North Carolina, Certificates of Participation, 6/06 at 102 AAA 2,214,597
Series 1996A, 6.125%, 6/01/21
3,970,000 Durham, North Carolina, Certificates of Participation, Water Utility 7/02 at 102 AA 4,233,489
Improvements, 6.375%, 7/15/12
750,000 Johnson County Finance Corporation (North Carolina), Installment 8/09 at 101 AAA 690,315
Payment Revenue Bonds (School and Museum Projects),
Series 1999, 5.250%, 8/01/21
5,000,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/06 at 101 1/2 A 4,685,300
Bonds, Series Y of 1996, 5.500%, 7/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 9.9%
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*** 1,045,360
2,940,000 6.250%, 1/01/20 (Pre-refunded to 1/01/02) 1/02 at 102 AA*** 3,102,347
2,855,000 North Carolina Municipal Power Agency, Number 1 Catawba Electric No Opt. Call AAA 3,687,461
Revenue Bonds, Series 1980, 10.500%, 1/01/10
2,400,000 Puerto Rico Commonwealth Highway Authority, Highway Revenue 7/00 at 100 A*** 2,430,432
Bonds, Series 1990-Q, 6.000%, 7/01/20 (Pre-refunded to 7/01/00)
2,280,000 Board of Governors of the University of North Carolina, 2/02 at 102 AA*** 2,397,967
University of North Carolina Hospitals at Chapel Hill Revenue Bonds,
Series 1992, 6.000%, 2/15/24 (Pre-refunded to 2/15/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 11.5%
4,250,000 City of Fayetteville, North Carolina, Public Works Commission 3/03 at 100 AAA 3,853,475
Revenue Refunding Bonds, Series 1993, 4.750%, 3/01/14
5,000,000 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 102 BBB 4,545,500
Revenue Bonds, Series 1993-D, 5.600%, 1/01/16
1,500,000 North Carolina Eastern Municipal Power Agency, Power System 9/03 at 102 1/2 BBB 1,385,250
Revenue Bonds, Series 1985-G, 5.750%, 12/01/16
1,000,000 North Carolina Municipal Power Agency, Number 1 Catawba 1/03 at 100 BBB+ 937,640
Electric Revenue Bonds, Series 1992, 5.750%, 1/01/15
4,000,000 North Carolina Municipal Power Agency, Number 1 Catawba 1/10 at 101 BBB+ 3,990,800
Electric Revenue Bonds, Series 1999B, 6.500%, 1/01/20
<PAGE>
Portfolio of Investments
NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND (NNC) (continued)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer - 8.0%
$ 4,250,000 Metropolitan Sewerage District of Buncombe County (North Carolina), 7/03 at 102 AAA $4,049,273
Sewerage System Revenue Refunding Bonds, Series 1993A,
5.500%, 7/01/22
1,000,000 City of Greensboro, North Carolina, Combined Enterprise System 6/05 at 102 AA- 944,620
Revenue Bonds, Series 1995A, 5.375%, 6/01/19
3,400,000 Orange Water and Sewer Authority (North Carolina), Water and 7/03 at 102 AA 3,205,078
Sewer System Revenue and Revenue Refunding Bonds,
Series 1993, 5.200%, 7/01/16
2,180,000 County of Union, North Carolina, Enterprise Systems Revenue 6/06 at 102 AAA 2,086,040
Bonds, Series 1996, 5.500%, 6/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
$ 135,850,000 Total Investments - (cost $133,343,906) - 102.7% 131,302,877
=============
Other Assets Less Liabilities - (2.7)% (3,440,608)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $127,862,269
====================================================================================================================
* 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.
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND (NPV)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Basic Materials - 1.7%
$ 500,000 Industrial Development Authority of the County of Bedford, 2/08 at 102 Baa2 $ 441,335
Virginia, Industrial Development Refunding Revenue Bonds
(Nekoosa Packaging Corporation), Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax)
1,000,000 Industrial Development Authority of Goochland County, Virginia, 12/08 at 101 Baa2 889,440
Industrial Development Refunding Revenue Bonds (Nekoosa
Packaging Corporation), Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax)
2,000,000 Virginia Small Business Financing Authority, Industrial Development 1/03 at 102 N/R 1,810,960
Revenue Bonds (Albion Enterprises, LLC Project), Series 1998A,
6.400%, 1/01/14 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 6.2%
Industrial Development Authority of the City of Lynchburg,
Virginia, Educational Facilities Revenue Bonds (Randolph-Macon
Women's College), Series 1993:
2,940,000 5.875%, 9/01/13 9/03 at 102 A- 2,948,203
3,000,000 5.875%, 9/01/23 9/03 at 102 A- 2,917,410
500,000 Prince William County Park Authority (Virginia), Park Facilities 10/09 at 101 A3 484,310
Revenue Refunding and Improvement Bonds, Series 1999,
6.000%, 10/15/28
3,000,000 Virginia College Building Authority, Educational Facilities Revenue 11/04 at 100 AA 3,082,890
Bonds (University of Richmond Project), Series of 1994,
5.550%, 11/01/19 (Optional put 11/01/04)
2,000,000 Virginia College Building Authority, Educational Facilities No Opt. Call AAA 1,790,980
Revenue Bonds (The Washington and Lee University Project),
Series 1998, 5.250%, 1/01/31
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 11.0%
4,850,000 Industrial Development Authority of Fairfax County, Virginia, No Opt. Call AA 4,231,965
Hospital Revenue Refunding Bonds (Inova Health System
Hospitals Project), Series 1993A, 5.000%, 8/15/23
2,440,000 Industrial Development Authority of Fairfax County, Virginia, 8/06 at 102 AA 2,415,698
Health Care Revenue Bonds (Inova Health System Project),
Series 1996A, 6.000%, 8/15/26
4,650,000 Industrial Development Authority of the County of Hanover 8/05 at 102 AAA 4,338,171
(Virginia), Hospital Revenue Bonds, Series 1995 (Bon Secours
Health System Projects), 5.500%, 8/15/25
1,500,000 Industrial Development Authority of the County of Henrico, No Opt. Call AAA 1,581,525
Virginia, Health Care Revenue Bonds (Bon Secours Health
System Projects), Series 1996, 6.250%, 8/15/20
5,500,000 Medical College of Virginia Hospitals Authority, General Revenue 7/08 at 102 AAA 4,861,835
Bonds, Series 1998, 5.125%, 7/01/23
2,500,000 Industrial Development Authority of the City of Norfolk (Virginia), 11/04 at 102 AA 2,688,925
Hospital Revenue and Refunding Bonds (Sentara Hospitals-Norfolk),
Series 1994A, 6.500%, 11/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 5.2%
940,000 Industrial Development Authority of Arlington County, Virginia, 7/05 at 102 A 954,391
Multifamily Housing Mortgage Revenue Bonds (Arlington Housing
Corporation), 1995 Series, 5.700%, 7/01/07
4,445,000 Hampton Redevelopment and Housing Authority, Multifamily 7/02 at 104 Baa2 4,689,697
Housing Revenue Refunding Bonds, Series 1994
(Chase Hampton II Apartments), 7.000%, 7/01/24
(Mandatory put 7/01/04)
1,495,000 Economic Development Authority of Henrico County, Virginia, 7/09 at 102 AAA 1,439,266
Beth Sholom Assisted Living Revenue Bonds, GNMA Mortgage
Backed Securities Financing, Series 1999A, 5.900%, 7/20/29
2,355,000 Suffolk Redevelopment and Housing Authority, Mortgage Revenue 1/01 at 100 AAA 2,365,951
Refunding Bonds, Series 1993 (FHA-Insured Mortgage Loan -
Wilson Pines Apartments, Section 8 Assisted Project), 6.125%, 1/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 8.7%
3,690,000 Virginia Housing Development Authority, Commonwealth 1/02 at 102 AA+ 3,745,018
Mortgage Revenue Bonds, 1992 Series B, Subseries B-4,
6.550%, 1/01/27 (Alternative Minimum Tax)
<PAGE>
Portfolio of Investments
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND (NPV) (continued)
November 30, 1999
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 3,240,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ $3,261,740
Bonds, 1992 Series B, Subseries B-5, 6.300%, 1/01/27
(Alternative Minimum Tax)
Virginia Housing Development Authority, Commonwealth Mortgage
Bonds, 1992 Series B, Subseries B-6:
4,000,000 6.200%, 7/01/21 (Alternative Minimum Tax) 1/02 at 102 AA+ 4,018,880
2,945,000 6.250%, 1/01/27 (Alternative Minimum Tax) 1/02 at 102 AA+
2,000,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/08 at 102 AA+ 1,789,340
Bonds, 1996 Series G, Subseries G-1, 5.300%, 1/01/22
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.6%
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 1,197,234
2,000,000 5.750%, 1/01/27 1/03 at 102 N/R 1,719,600
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 6.2%
2,500,000 City of Portsmouth, Virginia, General Obligation Bonds, Public 8/03 at 102 AA- 2,402,550
Utility Refunding Bonds, Series 1993, 5.500%, 8/01/19
5,700,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 7/06 at 101 1/2 A 5,258,763
(General Obligation Bonds), 5.400%, 7/01/25
1,700,000 City of Richmond, Virginia, General Obligation Public Improvement 7/03 at 102 AA 1,608,625
Bonds, Series 1993B, 5.500%, 7/15/23
2,000,000 City of Winchester, Virginia, General Obligation Public Improvement 1/04 at 102 AA 2,001,400
and Refunding Bonds, Series of 1994, 5.500%, 1/15/14
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 5.3%
County of Cumberland, Virginia, Certificates of Participation, Series 1997:
1,075,000 6.200%, 7/15/12 No Opt. Call N/R 1,059,305
1,350,000 6.375%, 7/15/17 No Opt. Call N/R 1,329,534
500,000 Industrial Development Authority of Dinwiddie County, Virginia, 2/07 at 102 N/R 485,695
Lease Revenue Bonds (Dinwiddie County School Facilities Project),
Series 1997A, 6.000%, 2/01/18
1,000,000 Fairfax County Economic Development Authority (Virginia), Parking 9/09 at 102 AA 1,017,190
Revenue Bonds (Vienna II Metrorail Station Project), 1999 First Series,
6.000%, 9/01/18
5,000,000 Hampton Roads Regional Jail Authority, Regional Jail Facility 7/06 at 102 AAA 4,720,250
Revenue Bonds, Series 1996A, 5.500%, 7/01/24
1,000,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin Islands 10/10 at 101 BBB- 1,004,800
Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Transportation - 5.6%
1,000,000 Capital Region Airport Commission, Richmond (Virginia), International 7/05 at 102 AAA 958,140
Airport Projects, Airport Revenue Bonds, Series 1995A, 5.625%, 7/01/25
1,900,000 Metropolitan Washington Airports Authority, Airport System Revenue 10/02 at 102 AAA 1,987,514
Bonds, Series 1992A, 6.625%, 10/01/19 (Alternative Minimum Tax)
1,400,000 Metropolitan Washington (D.C.) Airports Authority, Airport System 10/07 at 101 AA- 1,293,838
Revenue Bonds, Series 1997A, 5.375%, 10/01/23
6,315,000 Virginia Port Authority, Port Facilities Revenue Bonds, Series 1997, 7/07 at 101 AAA 5,890,064
5.600%, 7/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 25.1%
5,250,000 Chesapeake Bay Bridge and Tunnel District, General Resolution 7/01 at 102 AAA 5,520,270
Revenue Bonds, Refunding Series 1991, 6.375%, 7/01/22
(Pre-refunded to 7/01/01)
4,085,000 Fairfax County Water Authority, Water Refunding Revenue Bonds, 4/02 at 100 AAA 4,209,102
Series 1992, 5.750%, 4/01/29 (Pre-refunded to 4/01/02)
3,000,000 Prince William County Park Authority (Virginia), Revenue Bonds, 10/04 at 102 BBB+*** 3,328,260
Series 1994, 6.875%, 10/15/16 (Pre-refunded to 10/15/04)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 3,500,000 Puerto Rico Highway and Transportation Authority, Highway 7/02 at 101 1/2 AAA $3,741,885
Revenue Bonds (Series T), 6.500%, 7/01/22 (Pre-refunded to 7/01/02)
10,300,000 Valley Resource Authority of the City of Roanoke, Virginia, Solid 9/02 at 102 A+*** 10,831,892
Waste System Revenue Bonds, Series 1992, 5.750%, 9/01/12
(Pre-refunded to 9/01/02)
5,000,000 City of Virginia Beach Development Authority (Virginia), Hospital 11/01 at 102 AA*** 5,276,650
Revenue Bonds (Sentara Bayside Hospital), Series 1991,
6.300%, 11/01/21 (Pre-refunded to 11/01/01)
1,250,000 Virginia College Building Authority, Educational Facilities 1/04 at 102 AAA 1,324,800
Revenue Bonds (The Washington and Lee University Project),
Series of 1994, 5.800%, 1/01/24 (Pre-refunded to 1/01/04)
3,955,000 Virginia Resources Authority, Water and Sewer System Revenue 10/07 at 100 AA*** 4,137,009
Bonds, 1995 Series A (Sussex County Project), 5.600%, 10/01/25
(Pre-refunded to 10/01/07)
7,035,000 Commonwealth Transportation Board, Commonwealth of Virginia, 5/04 at 101 AA*** 7,547,992
Transportation Revenue Bonds, Series 1995A (Northern Virginia
Transportation District Program), 6.250%, 5/15/17
(Pre-refunded to 5/15/04)
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 9.6%
5,060,000 Halifax County Industrial Development Authority (Old Dominion 12/02 at 102 A+ 5,274,342
Electric Cooperative), 6.350%, 12/01/07 (Alternative Minimum Tax)
2,250,000 Industrial Development Authority of the Town of Louisa, Virginia, 1/04 at 102 A 1,977,885
Pollution Control Revenue Bonds (Virginia Electric and Power
Company Project), Series 1994, 5.450%, 1/01/24
5,000,000 City of Richmond, Virginia, Public Utility Revenue and Refunding 1/08 at 101 A+ 4,344,900
Bonds, Series 1998A, 5.125%, 1/15/28
6,150,000 Southeastern Public Service Authority of Virginia, Senior Revenue 7/03 at 102 A- 5,923,496
Bonds, Series 1993 (Regional Solid Waste System),
6.000%, 7/01/17 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 12.4%
5,880,000 Fairfax County Water Authority, Water Refunding Revenue Bonds, 4/02 at 100 AA 5,729,119
Series 1992, 5.750%, 4/01/29
2,400,000 Henrico County, Virginia, Water and Sewer System Revenue and 5/09 at 102 Aa2 2,075,880
Refunding Revenue Bonds, Series 1999, 5.000%, 5/01/28
1,500,000 Henry County Public Service Authority, Water and Sewer Refunding 11/01 at 101 AAA 1,517,040
Revenue Bonds, Series 1991, 6.250%, 11/15/19
City of Norfolk, Virginia, Water Revenue Bonds, Series 1995:
6,200,000 5.875%, 11/01/20 11/05 at 102 AAA 6,203,534
2,365,000 5.900%, 11/01/25 11/05 at 102 AAA 2,352,111
2,000,000 Rivanna Water and Sewer Authority (Virginia), Regional Water and 10/09 at 101 Aa3 1,876,520
Sewer System Revenue Bonds, Series of 1999, 5.625%, 10/01/29
2,595,000 Upper Occoquan Sewage Authority (Virginia), Regional Sewerage 1/04 at 102 AAA 2,295,951
System Revenue Refunding Bonds, Series of 1993, 5.000%, 7/01/21
500,000 Virginia Resources Authority, Clean Water State Revolving Fund 10/10 at 100 AAA 484,530
Revenue Bonds, Series 1999, 5.625%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
$ 182,555,000 Total Investments - (cost $179,189,269) - 98.6% 179,615,119
=============
Other Assets Less Liabilities - 1.4% 2,590,401
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $182,205,520
====================================================================================================================
* 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, 1999
(Unaudited)
<CAPTION>
Georgia Maryland North Carolina Virginia
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in municipal securities, at market
value (note 1) $75,048,491 $213,685,221 $131,302,877 $179,615,119
Cash 751,445 -- 755,233 231,133
Receivables:
Interest 1,518,546 4,512,546 2,574,781 3,206,857
Investments sold -- 70,000 438,350 --
Other assets 14,581 18,914 12,289 18,952
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 77,333,063 218,286,681 135,083,530 183,072,061
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- 434,986 -- --
Payable for investments purchased -- -- 6,635,237 --
Accrued expenses:
Management fees (note 6) 41,131 114,856 68,278 96,731
Other 27,830 140,375 67,838 137,755
Preferred share dividends payable 15,997 31,903 26,929 26,844
Common share dividends payable 250,900 679,669 422,979 605,211
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 335,858 1,401,789 7,221,261 866,541
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $76,997,205 $216,884,892 $127,862,269 $182,205,520
====================================================================================================================================
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 3,745,536 10,457,312 6,267,326 8,646,371
====================================================================================================================================
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation value, divided
by Common shares outstanding) $ 13.13 $ 13.18 $ 12.93 $ 13.69
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Six Months Ended November 30, 1999
(Unaudited)
<CAPTION>
Georgia Maryland North Carolina Virginia
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (note 1) $2,282,346 $ 6,224,867 $3,765,158 $ 5,361,411
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 255,957 714,125 425,273 601,025
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 4,605 15,823 7,792 14,696
Custodian's fees and expenses 17,846 29,162 31,828 26,045
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 15,360 33,967 20,847 28,009
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 3,240 5,082 3,933 4,637
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 351,172 940,035 576,845 791,108
Custodian fee credit (note 1) -- (2,751) (11,313) (2,616)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 351,172 937,284 565,532 788,492
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 1,931,174 5,287,583 3,199,626 4,572,919
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions
(notes 1 and 4) (158,282) (398,090) (378,058) (192,041)
Change in net unrealized appreciation
(depreciation) of investments (4,786,429) (12,612,388) (7,974,271) (10,282,169)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (4,944,711) (13,010,478) (8,352,329) (10,474,210)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $(3,013,537) $ (7,722,895) $(5,152,703) $ (5,901,291)
===================================================================================================================================
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
11/30/99 5/31/99 11/30/99 5/31/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 1,931,174 $ 3,779,380 $ 5,287,583 $ 10,401,146
Net realized gain (loss) from investment transactions
(notes 1 and 4) (158,282) (19,285) (398,090) 793,902
Change in net unrealized appreciation
(depreciation) of investments (4,786,429) (519,051) (12,612,388) (2,181,086)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (3,013,537) 3,241,044 (7,722,895) 9,013,962
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (1,504,677) (2,994,577) (4,075,387) (8,043,917)
Preferred shareholders (398,369) (781,355) (1,115,461) (2,336,752)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (1,903,046) (3,775,932) (5,190,848) (10,380,669)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions 92,123 204,645 279,076 698,387
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (4,824,460) (330,243) (12,634,667) (668,320)
Net assets at the beginning of period 81,821,665 82,151,908 229,519,559 230,187,879
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $76,997,205 $81,821,665 $216,884,892 $229,519,559
===================================================================================================================================
Balance of undistributed net investment income
at the end of period $ 212,623 $ 184,495 $ 480,617 $ 383,882
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
North Carolina Virginia
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
11/30/99 5/31/99 11/30/99 5/31/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 3,199,626 $ 6,363,441 $ 4,572,919 $ 9,028,147
Net realized gain (loss) from investment transactions
(notes 1 and 4) (378,058) 39,751 (192,041) 292,180
Change in net unrealized appreciation
(depreciation) of investments (7,974,271) (1,441,296) (10,282,169) (1,006,799)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations (5,152,703) 4,961,896 (5,901,291) 8,313,528
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (2,518,384) (4,954,259) (3,626,667) (7,077,141)
Preferred shareholders (740,031) (1,310,119) (862,375) (1,918,811)
- -----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (3,258,415) (6,264,378) (4,489,042) (8,995,952)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares issued to shareholders due to
reinvestment of distributions 96,761 208,763 428,011 927,907
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (8,314,357) (1,093,719) (9,962,322) 245,483
Net assets at the beginning of period 136,176,626 137,270,345 192,167,842 191,922,359
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $127,862,269 $136,176,626 $182,205,520 $192,167,842
===================================================================================================================================
Balance of undistributed net investment income
at the end of period $ 258,453 $ 317,242 $ 512,934 $ 429,057
===================================================================================================================================
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, 1999, North Carolina had an outstanding when-issued purchase
commitment of $6,635,237. 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 monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
<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:
North
Georgia Maryland Carolina Virginia
- --------------------------------------------------------------------------------
Number of shares:
Series T -- -- -- 832
Series W -- 1,404 -- --
Series TH 1,112 1,760 1,872 1,720
- --------------------------------------------------------------------------------
Total 1,112 3,164 1,872 2,552
================================================================================
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the six months ended November 30, 1999.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
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
11/30/99 5/31/99 11/30/99 5/31/99
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 6,034 12,929 18,846 44,630
==============================================================================================================
<CAPTION>
North Carolina Virginia
- --------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
11/30/99 5/31/99 11/30/99 5/31/99
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares issued to shareholders
due to reinvestment of
distributions 6,322 13,084 27,223 56,927
==============================================================================================================
</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 23, 1999, to shareholders of
record on December 15, 1999, as follows:
North
Georgia Maryland Carolina Virginia
- --------------------------------------------------------------------------------
Dividend per share $.0670 $.0650 $.0675 $.0700
================================================================================
<PAGE>
Notes to Financial Statements (continued)
(Unaudited)
4. Securities Transactions
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the six months ended November
30, 1999, were as follows:
<TABLE>
<CAPTION>
North
Georgia Maryland Carolina Virginia
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
Long-term municipal securities $8,887,750 $12,125,770 $19,142,283 $13,049,767
Short-term municipal securities -- 5,000,000 -- --
Sales and maturities:
Long-term municipal securities 11,406,276 11,071,003 13,532,055 12,275,458
Short-term municipal securities -- 5,000,000 -- 600,000
=========================================================================================================
</TABLE>
At November 30, 1999, the identified cost of investments owned for federal
income tax purposes were as follows:
North
Georgia Maryland Carolina Virginia
- --------------------------------------------------------------------------------
$74,404,664 $215,694,957 $133,343,906 $179,194,378
================================================================================
At May 31, 1999, 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>
<C> <C>
Expiration year:
2002 $ -- $2,202,413 $ -- $ 917,970
2003 1,088,659 1,019,929 2,344,091 1,577,464
2004 1,842,885 2,660,424 1,137,399 1,579,895
2005 340,685 454,351 131,993 140,749
- ---------------------------------------------------------------------------------------------------------
Total $3,272,229 $6,337,117 $3,613,483 $4,216,078
=========================================================================================================
</TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at November 30, 1999, were as follows:
<TABLE>
<CAPTION>
North
Georgia Maryland Carolina Virginia
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
appreciation $ 2,475,535 $ 3,160,389 $ 1,278,736 $ 4,272,078
depreciation (1,831,708) (5,170,125) (3,319,765) (3,851,337)
- ------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $ 643,827 $(2,009,736) $(2,041,029) $ 420,741
============================================================================================================
</TABLE>
<PAGE>
6. Management Fee and Other Transactions with Affiliates
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Management Fee
- --------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
================================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. Composition of Net Assets
At November 30, 1999, 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 37,455 104,573 62,673 86,464
Paid-in surplus 51,775,903 145,944,645 86,773,713 121,795,227
Balance of undistributed net investment income 212,623 480,617 258,453 512,934
Accumulated net realized gain (loss) from
investment transactions (3,472,603) (6,856,523) (3,991,541) (4,414,955)
Net unrealized appreciation (depreciation)
of investments 643,827 (1,888,420) (2,041,029) 425,850
- ---------------------------------------------------------------------------------------------------------
Net assets $76,997,205 $216,884,892 $127,862,269 $182,205,520
=========================================================================================================
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 year:
<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:
2000 (a) $14.45 $ .52 $(1.33) $ (.81)
1999 14.58 1.01 (.13) .88
1998 13.70 1.01 .90 1.91
1997 13.00 1.01 .69 1.70
1996 13.35 1.00 (.38) .62
1995 12.26 .98 1.09 2.07
<CAPTION>
Maryland
<S> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 14.41 .51 (1.24) (.73)
1999 14.54 1.00 (.14) .86
1998 13.76 .99 .80 1.79
1997 13.21 1.00 .55 1.55
1996 13.36 .99 (.14) .85
1995 12.67 .99 .70 1.69
<CAPTION>
North Carolina
<S> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 14.28 .51 (1.34) (.83)
1999 14.48 1.02 (.22) .80
1998 13.50 1.02 1.00 2.02
1997 12.77 1.02 .72 1.74
1996 13.19 .98 (.44) .54
1995 12.34 .97 .85 1.82
<CAPTION>
Virginia
<S> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 14.89 .53 (1.21) (.68)
1999 14.96 1.05 (.08) .97
1998 14.04 1.06 .92 1.98
1997 13.35 1.06 .68 1.74
1996 13.61 1.04 (.26) .78
1995 12.79 1.04 .84 1.88
<PAGE>
<CAPTION>
Less Distributions
--------------------------------------------------------------------
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
<S> <C> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
2000 (a) $(.40) $(.11) $-- $-- $ (.51)
1999 (.80) (.21) -- -- (1.01)
1998 (.79) (.24) -- -- (1.03)
1997 (.77) (.23) -- -- (1.00)
1996 (.73) (.24) -- -- (.97)
1995 (.73) (.25) -- -- (.98)
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) (.39) (.11) -- -- (.50)
1999 (.77) (.22) -- -- (.99)
1998 (.77) (.24) -- -- (1.01)
1997 (.76) (.24) -- -- (1.00)
1996 (.74) (.26) -- -- (1.00)
1995 (.74) (.26) -- -- (1.00)
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) (.40) (.12) -- -- (.52)
1999 (.79) (.21) -- -- (1.00)
1998 (.79) (.25) -- -- (1.04)
1997 (.77) (.24) -- -- (1.01)
1996 (.70) (.26) -- -- (.96)
1995 (.73) (.24) -- -- (.97)
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) (.42) (.10) -- -- (.52)
1999 (.82) (.22) -- -- (1.04)
1998 (.82) (.24) -- -- (1.06)
1997 (.81) (.24) -- -- (1.05)
1996 (.79) (.25) -- -- (1.04)
1995 (.80) (.26) -- -- (1.06)
<PAGE>
<CAPTION>
Total Returns
----------------------
Based
Ending Based on
Net Ending on Net
Asset Market Market Asset
Value Value Value** Value**
<S> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
2000 (a) $13.13 $13.6250 (13.85)% (6.40)%
1999 14.45 16.2500 13.42 4.64
1998 14.58 15.0625 14.56 12.43
1997 13.70 13.8750 19.95 11.53
1996 13.00 12.2500 12.88 2.81
1995 13.35 11.5000 (3.00) 15.78
<CAPTION>
Maryland
<S> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 13.18 12.8750 (12.54) (5.87)
1999 14.41 15.1250 5.47 4.44
1998 14.54 15.0625 16.54 11.47
1997 13.76 13.6250 13.07 10.08
1996 13.21 12.7500 10.22 4.41
1995 13.36 12.2500 4.36 12.07
<CAPTION>
North Carolina
<S> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 12.93 13.9375 (8.75) (6.69)
1999 14.28 15.6875 9.87 4.11
1998 14.48 15.0000 8.17 13.38
1997 13.50 14.6250 22.60 12.01
1996 12.77 12.6250 10.13 2.11
1995 13.19 12.1250 3.04 13.64
<CAPTION>
Virginia
<S> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 13.69 14.1875 (9.24) (5.28)
1999 14.89 16.0625 4.77 5.09
1998 14.96 16.1250 17.30 12.66
1997 14.04 14.5000 13.81 11.49
1996 13.35 13.5000 11.04 3.86
1995 13.61 12.8750 4.66 13.58
<PAGE>
<CAPTION>
Ratios/Supplemental Data
------------------------------------------------------------------------
Before Credit
-----------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
<S> <C> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
2000 (a) $ 76,997 1.38%* 7.56%* .89%* 4.89%*
1999 81,822 1.34 6.87 .89 4.57
1998 82,152 1.33 7.10 .87 4.66
1997 78,697 1.40 7.52 .90 4.83
1996 76,026 1.42 7.53 .91 4.82
1995 77,334 1.54 8.14 .95 5.01
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 216,885 1.32* 7.39* .85* 4.75*
1999 229,520 1.29 6.78 .85 4.47
1998 230,188 1.29 6.93 .84 4.52
1997 221,478 1.32 7.28 .85 4.72
1996 215,690 1.36 7.33 .87 4.68
1995 217,162 1.59 8.02 .97 4.92
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 127,862 1.37* 7.55* .88* 4.85*
1999 136,177 1.30 6.97 .86 4.61
1998 137,270 1.30 7.17 .85 4.70
1997 130,929 1.37 7.72 .87 4.92
1996 126,196 1.38 7.49 .88 4.75
1995 128,815 1.45 8.09 .89 4.96
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 182,206 1.29* 7.46* .85* 4.90*
1999 192,168 1.26 6.95 .85 4.65
1998 191,922 1.27 7.20 .84 4.77
1997 183,097 1.33 7.65 .86 4.95
1996 176,649 1.35 7.64 .87 4.92
1995 178,394 1.58 8.25 .98 5.13
<PAGE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------------------------------------------
After Credit***
------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets Portfolio
to Common to Common Including Including Turnover
Shares++ Shares++ Preferred++ Preferred++ Rate
<S> <C> <C> <C> <C> <C>
Georgia
Year Ended 5/31:
2000 (a) 1.38%* 7.56%* .89%* 4.89%* 11%
1999 1.33 6.88 .89 4.57 14
1998 1.33 7.10 .87 4.66 17
1997 1.40 7.52 .90 4.83 30
1996 1.42 7.53 .91 4.82 14
1995 1.54 8.14 .95 5.01 35
<CAPTION>
Maryland
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 1.31* 7.40* .84* 4.76* 5
1999 1.28 6.79 .84 4.48 16
1998 1.29 6.93 .84 4.52 6
1997 1.32 7.28 .85 4.72 6
1996 1.36 7.33 .87 4.68 18
1995 1.59 8.02 .97 4.92 25
<CAPTION>
North Carolina
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 1.34* 7.58* .86* 4.87* 10
1999 1.30 6.97 .86 4.61 8
1998 1.30 7.17 .85 4.70 9
1997 1.37 7.72 .87 4.92 19
1996 1.38 7.49 .88 4.75 39
1995 1.45 8.09 .89 4.96 32
<CAPTION>
Virginia
<S> <C> <C> <C> <C> <C>
Year Ended 5/31:
2000 (a) 1.29* 7.46* .85* 4.90* 7
1999 1.26 6.95 .84 4.66 8
1998 1.27 7.20 .84 4.77 19
1997 1.33 7.65 .86 4.95 16
1996 1.35 7.64 .87 4.92 27
1995 1.58 8.25 .98 5.13 45
* Annualized.
** Total Return on Market Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if
any, and changes in net asset value per share. Total returns are not
annualized.
*** After custodian fee credit, where applicable (note 1).
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended November 30, 1999.
</TABLE>
<PAGE>
Build Your Wealth Automatically
Sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
Nuveen Exchange-Traded Funds Dividend Reinvestment Plan
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
Dollar-cost averaging does not ensure a profit, nor does it protect you against
loss in a declining market. Because such a plan involves continuous investment
regardless of fluctuating prices, investors should consider their financial
ability to continue purchases through periods of low price levels.
Easy and convenient
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
Flexibility
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment adviser if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
<PAGE>
Fund Information
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
FUND POLICIES
The Board of Trustees of your Fund recently modified certain investment policies
of the Fund. The Fund was formerly not permitted to invest more than 5% of its
total assets in Municipal Leases that contain "non-appropriation" clauses. In
addition, your Fund was not permitted to invest more than 10% of its total
assets in Municipal Leases and securities that are unmarketable, illiquid or not
readily marketable. The Municipal Lease market has matured since the Fund's
inception, and non-appropriation leases have become more liquid and widely
accepted. The Nuveen Exchange-Traded Fund Board has eliminated the restrictions
noted above, replacing them with requirements that the Funds limit investments
in non-appropriation Municipal Leases to those that meet one or more of six
criteria that indicate that the issuer will be motivated to continue to
appropriate monies to make the payments under the Municipal Lease.
The Board also eliminated the Fund's policy not to invest more than 5% of its
total assets in unsecured obligations of issuers which, together with their
predecessors, have been in operation for less than three years.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 6-month period ended November 30, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors for Generations
Photo of: John Nuveen, Sr.
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
LOGO: NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
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