UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10525
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Nuveen North Carolina Dividend Advantage Municipal Fund 2
-------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: May 31
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Date of reporting period: November 30, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report November 30, 2009
--------------- ------------------ -------------------
Nuveen Georgia Nuveen Georgia Nuveen Georgia
Premium Income Dividend Advantage Dividend Advantage
Municipal Fund Municipal Fund Municipal Fund 2
NPG NZX NKG
---------------------- ------------------- -------------------
Nuveen North Nuveen North Nuveen North
Carolina Premium Carolina Dividend Carolina Dividend
Income Municipal Fund Advantage Municipal Advantage Municipal
NNC Fund Fund 2
NRB NNO
-------------------
Nuveen North
Carolina Dividend
Advantage Municipal
Fund 3
NII
NOVEMBER 09
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LOGO: NUVEEN INVESTMENTS
Chairman's Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year continues to recede but there is concern about the impact of a
reduction in official liquidity support programs. The major institutions that
are the linchpin of the international financial system have strengthened their
capital structures, but many still struggle with losses in their various
portfolios. Global trends include increasing trade and concern about the ability
of the U.S. government to address its substantial budgetary deficits.
While the fixed-income and equity markets have recovered from the lows recorded
in the first quarter of 2009, identifying those developments that will define
the future is never easy, and rarely is it more difficult than at present. A
fundamental component of a successful investment program is a commitment to
remain focused on long-term investment goals even during periods of heightened
market uncertainty. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of 2009 as part of the annual management
contract renewal process. Confirming the appropriateness of a long term
investment strategy is as important for our shareholders as it is for our
professional investment managers. For that reason, I again encourage you to
remain in communication with your financial consultant on this subject.
In September 2009, Nuveen completed the refinancing, at par, of all the auction
rate preferred shares issued by its taxable closed-end funds. On October 15,
2009, Nuveen announced the first successful offering of an issue of MuniFund
Term Preferred Shares. This new form of preferred securities joins the Variable
Rate Demand Preferred Shares as vehicles for refinancing existing municipal fund
auction rate preferred shares (ARPS). By the beginning of December 2009, six of
the leveraged municipal closed-end funds had redeemed all of their outstanding
ARPS. Nuveen remains committed to resolving the issues connected with
outstanding ARPS. Please consult the Nuveen web site for the most recent
information on this issue and all recent developments on your Nuveen Funds at:
www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
-----------------------------------
Robert P. Bremner
Chairman of the Board
January 20, 2010
Nuveen Investments 1
Portfolio Manager's Comments
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND (NPG)
NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND (NZX)
NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 (NKG)
NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND (NNC)
NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND (NRB)
NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 (NNO)
NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 3 (NII)
Portfolio manager Daniel Close discusses key investment strategies and the
six-month performance of the Nuveen Georgia and North Carolina Funds. Dan, who
joined Nuveen in 2000, assumed portfolio management responsibility for these
seven Funds in 2007.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE GEORGIA AND NORTH CAROLINA FUNDS
DURING THE SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2009?
During this reporting period, municipal bond prices generally rose, as strong
cash flows into municipal bond funds combined with tighter supply of new
tax-exempt issuance to create favorable supply and demand conditions.
One reason for the decline in new tax-exempt supply was the introduction of the
Build America Bond program. Build America Bonds are a new class of taxable
municipal debt created as part of the February 2009 economic stimulus package.
These bonds offer municipal issuers a federal subsidy equal to 35% of a security
`s interest payments, and therefore offer issuers with an attractive alternative
to traditional tax-exempt debt. During the six-month period ended November 30,
2009, taxable Build America Bonds issuance totaled $44.9 billion, accounting for
almost 21% of new bonds in the municipal market. Since interest payments from
these bonds represent taxable income, we do not see them as a good investment
opportunity for these Funds.
While the supply of new tax-exempt municipal bonds was constrained during this
period, we continued to find attractive value opportunities, taking a bottom-up
approach to discovering undervalued sectors and individual credits with the
potential to perform well over the long term. All three Georgia Funds purchased
higher education bonds issued for the University of Georgia as well as uninsured
health care credits. Tax-exempt supply was usually more plentiful in the health
care sector because hospitals generally do not qualify for the Build America
Bond program and so must continue to issue bonds in the tax-exempt municipal
market. In the North Carolina Funds, we added a higher-rated appropriations
issue offering a longer maturity as well as some electric utility bonds. We also
found particular value in bonds issued by the North Carolina
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS.
DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE
NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-
LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE
PORTFOLIO MANAGER AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR
OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY
FORWARD-LOOKING STATEMENTS, AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO
CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS
DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING
STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
Turnpike Authority for the Triangle Expressway System, a new tollroad under
construction in Wake and Durham counties.
Cash for new purchases was generated by bond calls and the sale of shorter-dated
prerefunded bonds, primarily in the North Carolina Funds. In NPG, NKG and the
four North Carolina Funds, we also monitored the types of credits and bond
structures that were attractive to the retail market and took advantage of
strong bids to sell selected bonds into solid retail demand. In addition, NZX
and NKG sold a continuing care retirement center holding, and all three Georgia
Funds sold a health care credit, due to declining credit outlooks for these two
issues.
As of November 30, 2009, all seven of these Funds continued to use inverse
floating rate securities.(1) We employ inverse floaters as a form of leverage
for a variety of reasons, including duration management, income enhancement and
total return enhancement.
HOW DID THE FUNDS PERFORM?
Individual results for the Nuveen Georgia and North Carolina Funds, as well as
relevant index and peer group information, are presented in the accompanying
table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE*
FOR PERIODS ENDED 11/30/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
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GEORGIA FUNDS
NPG 6.12% 23.72% 4.22% 6.44%
NZX 7.01% 22.58% 4.73% N/A
NKG 7.78% 26.67% 4.37% N/A
Standard & Poor`s (S&P) Georgia Municipal Bond Index(2) 4.64% 15.01% 4.21% 5.52%
NORTH CAROLINA FUNDS
NNC 7.34% 23.58% 4.56% 6.75%
NRB 6.40% 21.13% 5.40% N/A
NNO 6.76% 21.97% 4.90% N/A
NII 6.60% 21.49% 5.23% N/A
Standard & Poor`s (S&P) North Carolina Municipal Bond Index(2) 4.27% 13.80% 4.76% 5.93%
Standard & Poor`s (S&P) National Municipal Bond Index (3) 5.15% 14.83% 4.34% 5.58%
Lipper Other States Municipal Debt Funds Average(4) 8.64% 25.98% 4.20% 6.20%
---------------------------------------------------------------------------------------------------------------------------
For the six months ended November 30, 2009, the cumulative returns on common
share net asset value (NAV) for all seven of the Nuveen Georgia and North
Carolina Funds exceeded the returns for their respective Standard & Poor's (S&P)
Georgia and North Carolina Municipal Bond Indexes as well as the Standard &
Poor's (S&P) National Municipal Bond Index. All of the Funds underperformed the
average return for the Lipper Other States Municipal Debt Funds Average.
Shareholders should note that the performance of the Lipper Other States Average
represents the overall average of returns for funds from ten different states
with a wide variety of municipal market conditions, making direct comparisons
less meaningful.
* Six-month returns are cumulative; returns for one-year, five-year, and
ten-year are annualized.
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund
distributions or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(1) An inverse floating rate security, also known as an inverse floater, is a
financial instru-ment designed to pay long-term tax-exempt
interest at a rate that varies inversely with a short-term tax-exempt
interest rate index. For the Nuveen Funds, the index typically used is
the Securities Industry and Financial Markets (SIFM) Municipal Swap
Index (previously referred to as the Bond Market Association Index or
BMA). Inverse floaters, including those inverse floating rate securities
in which the Funds invested during this reporting period, are further
defined within the Notes to Financial Statements and Glossary of Terms
Used in this Report sections of this report.
(2) The Standard & Poor's (S&P) Georgia and North Carolina Municipal Bond
Indexes are unleveraged, market value-weighted indexes designed to measure
the performance of the investment-grade municipal bond markets in
Georgia and North Carolina, respectively. These indexes do not reflect
any initial or ongoing expenses and are not available for direct
investment.
(3) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This
index does not reflect any initial or ongoing expenses and is not
available for direct investment.
(4) The Lipper Other States Municipal Debt Funds Average is calculated using
the returns of all closed-end funds in this category for each period as
follows: six-month, 43 funds; 1-year, 43 funds; 5-year, 43 funds; and
10-year, 20 funds. The returns account for the effects of managements fees
and assume reinvestment of dividends, but do not reflect any applicable
sales charges. You cannot invest directly in a Lipper Average.
Nuveen Investments 3
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure, and sector
allocation. In addition, leverage was an important factor affecting each Fund's
performance over this period. The impact of leverage is discussed in more
detail on page five.
During this period, we saw yields on tax-exempt bonds generally decline and bond
prices rise, especially at the longer end of the municipal yield curve. As a
result, longer-term bonds generally outperformed credits with shorter
maturities. Overall, duration and yield curve positioning was a net positive for
the performances of all of these Funds. In general, the Funds were relatively
underexposed to the underperforming short end of the yield curve, compared with
the municipal market as a whole. This underweighting had a positive impact on
performance, especially in NNC, which had the longest duration among the four
North Carolina Funds.
While yield curve positioning and duration played important roles in performance
during these six months, credit exposure also had a significant impact. The
demand for municipal bonds increased among both institutional and individual
investors during this period. This increase was driven by a variety of factors,
including concerns about potential tax increases, the need to rebalance
portfolio allocations, and a growing appetite for additional risk. At the same
time, the supply of new tax-exempt municipal paper declined. As investors bid up
municipal bond prices, bonds rated BBB or below and non-rated bonds generally
outperformed those rated AAA. In this environment, the Funds' performances
benefited from their allocations to lower quality credits.
Holdings that generally contributed to the Funds' performances included
industrial development revenue (IDR) and health care bonds, while zero coupon
bonds also were among the strongest performers. In addition, transportation,
housing and special tax bonds also outperformed the general municipal market
during this period.
Pre-refunded bonds, which are often backed by U.S. Treasury securities and
which had been one of the top performing segments of the municipal bond market
over the past two years, performed especially poorly during this period. This
was primarily due to their shorter effective maturities and higher credit
quality. As of November 30, 2009, NZX and NII had the largest allocations of
pre-refunded bonds among the Nuveen Georgia and North Carolina Funds,
respectively, which negatively impacted performance, while NKG and NNC had the
smallest allocations of these bonds in their respective states. Many general
obligation bonds also failed to keep pace with the over-all municipal market.
Other market sectors that lagged the municipal market for the six months
included water and sewer and leasing, while education, resource recovery, and
electric bonds underperformed the market by a slight margin. Among the North
Carolina Funds, NRB and NII were relatively overweighted in water and sewer
credits, which detracted from their performances.
4 Nuveen Investments
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative indexes was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total returns for common shareholders.
However, use of leverage also can expose common shareholders to additional
risk-- especially when market conditions are unfavorable. For example, as the
prices of securities held by a Fund decline, the negative impact of these
valuation changes on common share net asset value and common shareholder total
return is magnified by the use of leverage. Conversely, leverage may enhance
common share returns during periods when bond prices generally are rising. In
general, leverage made a significant positive contribution to Funds returns over
this period.
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate preferred
shares issued by many closed-end funds, including these Nuveen Funds, have been
hampered by a lack of liquidity since February 2008. Since that time, more
auction rate preferred shares have been submitted for sale in their regularly
scheduled auctions than there have been offers to buy. In fact, offers to buy
have been almost completely non-existent since late February 2008. This means
that these auctions have "failed to clear," and that many, or all, of the
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This lack of liquidity in auction rate preferred
shares did not lower the credit quality of these shares, and auction rate
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions, as calculated in accordance with
the pre-established terms of the auction rate preferred shares. In the recent
market, with short-term rates at multi-generational lows, those maximum rates
also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it other-wise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Funds' Board of Trustees authorized a
plan to use tender option bonds (TOBs), also known as floating rate securities,
to refinance a portion of the outstanding auction rate preferred shares issued
by these and other Nuveen Funds. The amount of TOBs that a Fund may use varies
according to the composition of each Fund's portfolio. Some Funds have a greater
ability to use TOBs than others. As of November 30, 2009, some Nuveen Funds also
have issued Variable Rate Demand Preferred Shares, but these issuances have been
limited since it has been difficult to find liquidity facilities on economically
viable terms given the constrained credit environment. Additionally, some Nuveen
Funds have issued MuniFund Term Preferred Shares (MTP), a fixed-rate form of
preferred stock with a
Nuveen Investments 5
mandatory redemption period of five years. However, the Funds cannot provide any
assurance on when the remaining outstanding auction rate preferred shares might
be redeemed.
As of November 30, 2009, the amount of auction rate preferred securities
redeemed by the following Funds are as shown in the accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
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NPG $ 2,100,000 7.6%
NZX $ 1,100,000 7.3%
NKG $ 3,700,000 11.2%
NNC $ 1,650,000 3.5%
NRB $ 925,000 5.4%
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During November 2009, NNC filed with the Securities and Exchange Commission
(SEC) a registration statement seeking to register MTP. During January 2010,
subsequent to the reporting period, NNC successfully completed the issuance of
$23.3 million of 2.65%, Series 2015 MTP. MTP is a new form of closed-end fund
preferred shares designed to refinance, partially or completely, and replace the
auction rate preferred shares previously issued by the Funds as leverage. The
net proceeds from this offering were used to refinance a portion of NNC's
outstanding auction rate preferred shares. The newly-issued MTP shares trade on
the New York Stock Exchange (NYSE) under the symbol "NNC Pr C". MTP is a
fixed-rate form of preferred stock with a mandatory redemption period, in this
case, of five years. By issuing MTP, the Funds seek to take advantage of the
current historically low interest rate environment to lock in an attractive
federally tax-exempt cost of leverage for a period as long as the term of the
MTP. The Funds' managers believe that issuing MTP may help the Funds mitigate
the risk of a significant increase in their cost of leverage should short-term
interest rates rise sharply in the coming years.
Subsequent to the reporting period, NPG, NZX, NKG, NRB, NNO and NII filed with
the SEC a registration statement seeking to register MTP. These registrations
statements, declared effective by the SEC, enable the Funds to issue to the
public shares of MTP to refinance all or a portion of each Fund's auction rate
preferred shares. The issuance of MTP by these Funds is subject to market
conditions. There is no assurance that these MTP shares will be issued.
As of November 30, 2009, 75 out of the 84 Nuveen closed-end municipal funds that
had issued auction rate preferred shares have redeemed, at par, all or a portion
of these shares. These redemptions bring the total amount of Nuveen's municipal
closed-end funds' auction rate preferred share redemptions to approximately $2.5
billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
6 Nuveen Investments
COMMON SHARE DIVIDEND AND SHARE PRICE INFORMATION
During the six-month period ended November 30, 2009, each of the seven Funds in
this report had one monthly dividend increase.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends,
it holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund`s NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund `s NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of November 30, 2009, all of
the Funds in this report had positive UNII balances, based upon our best
estimate, for tax purposes and positive UNII balances for financial statement
purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
Since the inception of the Funds' repurchase program the Funds have not
repurchased any of their outstanding common shares.
As of November 30, 2009, the Funds' common share prices were trading at (+)
premiums or (-) discounts to their common share NAVs as shown in the
accompanying table.
11/30/09 Six-Month Average
Fund (+)Premium/(-)Discount (+)Premium/(-)Discount
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NPG -9.14% -7.97%
NZX -0.55% -4.63%
NKG -8.67% -8.55%
NNC +4.43% -1.64%
NRB +6.31% +2.46%
NNO +3.83% -1.44%
NII +5.91% +0.29%
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Nuveen Investments 7
NPG | NUVEEN GEORGIA
Performance | PREMIUM INCOME
OVERVIEW | MUNICIPAL FUND
as of November 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $12.93
--------------------------------------------------------------------------------
Common Share Net Asset Value $14.23
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.14%
--------------------------------------------------------------------------------
Market Yield 5.10%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.53%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $54,143
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.65
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.48
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 9.53% 6.12%
--------------------------------------------------------------------------------
1-Year 40.10% 23.72%
--------------------------------------------------------------------------------
5-Year 0.27% 4.22%
--------------------------------------------------------------------------------
10-Year 4.94% 6.44%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 15.4%
--------------------------------------------------------------------------------
Health Care 14.9%
--------------------------------------------------------------------------------
Water and Sewer 14.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.2%
--------------------------------------------------------------------------------
Tax Obligation/General 13.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.8%
--------------------------------------------------------------------------------
Utilities 6.8%
--------------------------------------------------------------------------------
Other 8.2%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 36%
AA 32%
A 23%
BBB 7%
N/R 2%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Dec $ 0.0515
Jan 0.0515
Feb 0.0515
mar 0.0515
Apr 0.0515
May 0.0515
Jun 0.0525
Jul 0.0525
Aug 0.0525
Sep 0.0525
Oct 0.055
Nov 0.055
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 9.61
9.748
8.7
9.18
9.5
10.26
11.3184
11.25
10.92
11.5035
12.11
11.9
11.5
11.44
10.96
10.8499
10.95
11
11.26
11.35
12.14
11.71
12.09
12.25
12
12.19
12.1
12.5
12.35
12.1
12.15
12.55
12.43
12.45
12.3
12.84
13.07
13.05
13
13.26
13.37
13.4
13.38
13.3378
13.494
13.27
12.91
12.93
12.92
12.9
12.72
12.74
12.74
11/30/09 12.9299
(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Fund on an after-tax
basis. It is based on a combined federal and state income tax rate of 32.3%.
When comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
8 Nuveen Investments
NZX | NUVEEN GEORGIA
Performance | DIVIDEND ADVANTAGE
OVERVIEW | MUNICIPAL FUND
as of November 30, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 38%
AA 28%
A 20%
BBB 8%
BB or Lower 1%
N/R 5%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Dec $ 0.055
Jan 0.055
Feb 0.055
mar 0.055
Apr 0.055
May 0.056
Jun 0.056
Jul 0.056
Aug 0.056
Sep 0.061
Oct 0.061
Nov 0.061
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 10.88
10
9.5
9.7699
10
10.18
11.4704
11.41
11.5
11.49
12.06
12.4
11.2422
11.46
11.4
11.51
11.75
11.97
12.09
11.9
11.9
11.91
12.2001
12.5
12.34
12.96
13.46
13.24
13.31
12.6
12.6
13.23
12.83
12.9
13.2
13.5
13.91
13.65
13.39
13.45
13.59
14.2201
14.2
14.2
14.08
14.06
13.62
13.46
14.04
14
13.962
14.09
14.48
11/30/09 14.52
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $14.52
--------------------------------------------------------------------------------
Common Share Net Asset Value $14.60
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -0.55%
--------------------------------------------------------------------------------
Market Yield 5.04%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.44%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $28,755
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.12
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.09
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 10.65% 7.01%
--------------------------------------------------------------------------------
1-Year 40.54% 22.58%
--------------------------------------------------------------------------------
5-Year 4.19% 4.73%
--------------------------------------------------------------------------------
Since Inception 5.09% 5.77%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 17.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 17.4%
--------------------------------------------------------------------------------
Health Care 16.4%
--------------------------------------------------------------------------------
Water and Sewer 13.4%
--------------------------------------------------------------------------------
Tax Obligation/General 9.3%
--------------------------------------------------------------------------------
Housing/Single Family 8.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 5.6%
--------------------------------------------------------------------------------
Other 12.0%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Fund on an after-tax
basis. It is based on a combined federal and state income tax rate of 32.3%.
When comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
Nuveen Investments 9
NKG | NUVEEN GEORGIA
Performance | DIVIDEND ADVANTAGE
OVERVIEW | MUNICIPAL FUND 2
as of November 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $12.75
--------------------------------------------------------------------------------
Common Share Net Asset Value $13.96
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.67%
--------------------------------------------------------------------------------
Market Yield 5.46%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.06%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $63,567
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.04
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.92
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 10.19% 7.78%
--------------------------------------------------------------------------------
1-Year 16.98% 26.67%
--------------------------------------------------------------------------------
5-Year 3.84% 4.37%
--------------------------------------------------------------------------------
Since Inception 2.96% 4.70%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Water and Sewer 20.2%
--------------------------------------------------------------------------------
Tax Obligation/General 18.5%
--------------------------------------------------------------------------------
Health Care 16.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 12.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 8.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 7.5%
--------------------------------------------------------------------------------
Transportation 4.0%
--------------------------------------------------------------------------------
Other 13.2%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 31%
AA 27%
A 25%
BBB 9%
N/R 8%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Dec $ 0.053
Jan 0.053
Feb 0.053
mar 0.053
Apr 0.053
May 0.053
Jun 0.053
Jul 0.053
Aug 0.053
Sep 0.058
Oct 0.058
Nov 0.058
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 11.3
10.6
9.5
9.74
9.6
9.5
11.01
10.84
10.794
11.35
11.59
11.56
11.0122
10.81
10.595
10.7081
10.988
11.1
11.25
11.12
11.42
11.38
11.4501
11.92
12.1767
11.95
11.88
11.96
11.62
11.6499
11.85
11.888
11.94
11.8897
11.88
12.1572
12.35
12.35
12.64
12.7
12.7001
12.95
13.052
13.14
13.163
13.1
12.55
12.79
12.89
12.897
12.71
12.43
12.7
11/30/09 12.75
(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Fund on an after-tax
basis. It is based on a combined federal and state income tax rate of 32.3%.
When comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
10 Nuveen Investments
NNC | NUVEEN NORTH CAROLINA
Performance | PREMIUM INCOME
OVERVIEW | MUNICIPAL FUND
as of November 30, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 32%
AA 34%
A 28%
BBB 4%
N/R 2%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Dec $ 0.0505
Jan 0.0505
Feb 0.0505
mar 0.0505
Apr 0.0505
May 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.059
Oct 0.059
Nov 0.059
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 10.85
10.7
10.06
10.3
10.68
11.04
12.4
12.46
12.48
13.25
12.45
12.3
12.31
12.35
11.5
12.15
12.34
12.4
12.5
12.8
12.94
12.94
12.8
13.04
13.15
13.2
12.6
12.802
12.64
12.7295
12.92
13
13.0701
12.9999
13.34
13.26
13.45
13.59
13.78
13.93
14.1366
14.365
14.61
14.4
14.67
15.0495
14.43
14.6
14.3
14.76
14.86
14.6599
14.79
11/30/09 15.08
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $15.08
--------------------------------------------------------------------------------
Common Share Net Asset Value $14.44
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 4.43%
--------------------------------------------------------------------------------
Market Yield 4.69%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.06%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $91,735
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.41
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.58
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 22.62% 7.34%
--------------------------------------------------------------------------------
1-Year 46.65% 23.58%
--------------------------------------------------------------------------------
5-Year 3.45% 4.56%
--------------------------------------------------------------------------------
10-Year 6.19% 6.75%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 25.5%
--------------------------------------------------------------------------------
Health Care 14.7%
--------------------------------------------------------------------------------
Education and Civic Organizations 14.5%
--------------------------------------------------------------------------------
Utilities 8.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 7.9%
--------------------------------------------------------------------------------
Water and Sewer 7.0%
--------------------------------------------------------------------------------
Tax Obligation/General 6.6%
--------------------------------------------------------------------------------
Transportation 5.7%
--------------------------------------------------------------------------------
Other 9.2%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Fund on an after-tax
basis. It is based on a combined federal and state income tax rate of 33.6%.
When comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
Nuveen Investments 11
NRB | NUVEEN NORTH CAROLINA
Performance | DIVIDEND ADVANTAGE
OVERVIEW | MUNICIPAL FUND
as of November 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $16.00
--------------------------------------------------------------------------------
Common Share Net Asset Value $15.05
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 6.31%
--------------------------------------------------------------------------------
Market Yield 5.10%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.68%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $34,128
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.60
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.84
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 15.16% 6.40%
--------------------------------------------------------------------------------
1-Year 44.28% 21.13%
--------------------------------------------------------------------------------
5-Year 4.69% 5.40%
--------------------------------------------------------------------------------
Since Inception 6.32% 6.41%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Water and Sewer 26.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.2%
--------------------------------------------------------------------------------
Utilities 12.9%
--------------------------------------------------------------------------------
Health Care 11.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 8.4%
--------------------------------------------------------------------------------
Tax Obligation/General 6.0%
--------------------------------------------------------------------------------
Other 9.1%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 46%
AA 29%
A 17%
BBB 5%
BB or Lower 1%
N/R 2%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Dec $ 0.058
Jan 0.058
Feb 0.058
mar 0.06
Apr 0.06
May 0.062
Jun 0.062
Jul 0.062
Aug 0.062
Sep 0.068
Oct 0.068
Nov 0.068
COMMON SHARE PRICE PERFORMANCE -- Weekly Closing Price
[LINE CHART]
12/01/08 $ 11.77
11.9
11.9999
11.82
12.4
12.35
13.6
13.4
14.0399
13.87
13.9
13.9
14.3499
14.2
13.4
13.6501
13.6499
13.44
14.1484
13.94
13.88
14.13
14.7
15.03
14.64
14.39
14.26
14.08
13.7901
14.26
14.46
15.12
14.5
14.3
14.45
14.15
14.769
14.858
14.94
15.3999
15.28
15.3
15.606
15.78
16.1501
16.3
16.5
16.45
15.23
15.78
15.22
15.965
15.8
11/30/09 16.0018
(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Fund on an after-tax
basis. It is based on a combined federal and state income tax rate of 33.6%.
When comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
12 Nuveen Investments
NNO | NUVEEN NORTH CAROLINA
Performance | DIVIDEND ADVANTAGE
OVERVIEW | MUNICIPAL FUND 2
as of November 30, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 39%
AA 28%
A 26%
BBB 5%
N/R 2%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Dec $ 0.054
Jan 0.054
Feb 0.054
mar 0.0565
Apr 0.0565
May 0.0585
Jun 0.0585
Jul 0.0585
Aug 0.0585
Sep 0.064
Oct 0.064
Nov 0.064
COMMON SHARE PRICE PERFORMANCE -- Weekly Closing Price
[LINE CHART]
12/01/08 $ 12.25
12.2
11.2
11.6
11.01
11.15
12.3201
12.61
12.685
13.1999
13.14
13.25
13.15
12.99
13.3999
13.1315
12.75
13.2101
13.47
13.5
13.37
13.37
13.3436
13.95
13.84
13.89
13.6
13.4391
13.31
13.3235
13.3
13.55
13.7099
13.75
13.99
14.04
14.0622
14.03
14.34
14.54
14.845
14.77
15.3485
15.1
15
15.12
15.1
14.9
14.77
15.45
15.22
15.24
15.44
11/30/09 15.47
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $15.47
--------------------------------------------------------------------------------
Common Share Net Asset Value $14.90
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 3.83%
--------------------------------------------------------------------------------
Market Yield 4.96%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.47%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $55,872
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 12.52
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.54
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 16.66% 6.76%
--------------------------------------------------------------------------------
1-Year 32.34% 21.97%
--------------------------------------------------------------------------------
5-Year 4.61% 4.90%
--------------------------------------------------------------------------------
Since Inception 5.99% 6.11%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 22.3%
--------------------------------------------------------------------------------
Health Care 16.0%
--------------------------------------------------------------------------------
Water and Sewer 15.4%
--------------------------------------------------------------------------------
Transportation 11.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 8.7%
--------------------------------------------------------------------------------
Utilities 8.7%
--------------------------------------------------------------------------------
Other 8.7%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Fund on an after-tax
basis. It is based on a combined federal and state income tax rate of 33.6%.
When comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
Nuveen Investments 13
NII | NUVEEN NORTH CAROLINA
Performance | DIVIDEND ADVANTAGE
OVERVIEW | MUNICIPAL FUND 3
as of November 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $15.42
--------------------------------------------------------------------------------
Common Share Net Asset Value $14.56
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 5.91%
--------------------------------------------------------------------------------
Market Yield 4.82%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.26%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $57,268
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 13.89
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 6.89
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 16.21% 6.60%
--------------------------------------------------------------------------------
1-Year 45.91% 21.49%
--------------------------------------------------------------------------------
5-Year 5.81% 5.23%
--------------------------------------------------------------------------------
Since Inception 5.52% 5.36%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Water and Sewer 22.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.3%
--------------------------------------------------------------------------------
Utilities 12.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 10.9%
--------------------------------------------------------------------------------
Tax Obligation/General 10.7%
--------------------------------------------------------------------------------
Health Care 7.7%
--------------------------------------------------------------------------------
Transportation 6.5%
--------------------------------------------------------------------------------
Other 8.4%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 42%
AA 32%
A 17%
BBB 7%
N/R 2%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Dec $ 0.0555
Jan 0.0555
Feb 0.0555
mar 0.0555
Apr 0.0555
May 0.0565
Jun 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.062
Oct 0.062
Nov 0.062
COMMON SHARE PRICE PERFORMANCE -- Weekly Closing Price
[LINE CHART]
12/01/08 $ 10.99
11.2201
10.4
10.8
11.35
11.33
12.74
12.98
13.07
13.4
13.2
13.39
12.77
12.24
12.09
12.36
12.432
12.56
13.3
12.89
13.09
13.105
13.18
13.62
13.46
13.56
13.6
13.44
13.53
13.46
13.56
13.83
14.35
13.5
13.71
13.63
13.7999
13.74
14
14.7401
14.45
14.3528
14.5
14.7901
15.24
14.9
14.9
14.8
14.85
14.7501
14.68
15.46
15.25
11/30/09 15.42
(1) Taxable-Equivalent Yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Fund on an after-tax
basis. It is based on a combined federal and state income tax rate of 33.6%.
When comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
14 Nuveen Investments
NPG | Nuveen Georgia Premium Income Municipal Fund
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.6% (1.1% OF TOTAL INVESTMENTS)
$ 1,000 Puerto Rico, The Children's Trust Fund, 5/12 at 100.00 BBB $ 851,070
Tobacco Settlement Asset-Backed Refunding Bonds,
Series 2002, 5.500%, 5/15/39
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.5% (15.4% OF TOTAL
INVESTMENTS)
750 Athens Housing Authority, Georgia, Student Housing Lease 6/19 at 100.00 Aa2 781,410
Revenue Bonds, UGAREF East Campus Housing LLC Project,
Series 2009, 5.250%, 6/15/35
1,000 Athens-Clarke County Unified Government Development 12/12 at 100.00 N/R 1,038,750
Authority, Georgia, Educational Facilities Revenue
Bonds, UGAREF CCRC Building LLC Project, Series 2002,
5.000%, 12/15/16 - AMBAC Insured
2,800 Atlanta Development Authority, Georgia, Educational 7/17 at 100.00 A1 2,719,864
Facilities Revenue Bonds, Science Park LLC Project,
Series 2007, 5.000%, 7/01/39
1,550 Bulloch County Development Authority, Georgia, Student 8/14 at 100.00 A1 1,625,160
Housing and Athletic Facility Lease Revenue Bonds,
Georgia Southern University, Series 2004, 5.250%,
8/01/21 - SYNCORA GTY Insured
700 Carrollton Payroll Development Authority, Georgia, Student 9/14 at 100.00 A1 724,983
Housing Revenue Bonds, University of West Georgia,
Series 2004A, 5.000%, 9/01/21 - SYNCORA GTY Insured
1,535 Fulton County Development Authority, Georgia, Revenue 5/14 at 100.00 Aa3 1,739,002
Bonds, Georgia Tech Molecular Science Building,
Series 2004, 5.250%, 5/01/15 - NPFG Insured
Private Colleges and Universities Authority, Georgia,
Revenue Bonds, Emory University, Series 2009, Trust 3404:
270 17.020%, 9/01/32 (IF) 9/19 at 100.00 AA 335,383
430 17.048%, 9/01/35 (IF) 9/19 at 100.00 AA 511,709
1,180 Savannah Economic Development Authority, Georgia, Revenue 7/15 at 100.00 A2 1,218,220
Bonds, Armstrong Atlantic State University, Compass
Point LLC Project, Series 2005, 5.000%, 7/01/25 -
SYNCORA GTY Insured
1,490 Savannah Economic Development Authority, Georgia, Revenue 12/15 at 100.00 A3 1,492,295
Bonds, Armstrong Center LLC, Series 2005A, 5.000%,
12/01/34 - SYNCORA GTY Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,705 Total Education and Civic Organizations 12,186,776
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.8% (14.9% OF TOTAL INVESTMENTS)
500 Clark County Hospital Authority, Georgia, Hospital Revenue 1/17 at 100.00 AA 510,140
Bonds, Athens Regional Medical Center, Series 2007,
5.000%, 1/01/27 - NPFG Insured
2,000 Clarke County Hospital Authority, Georgia, Hospital 1/12 at 101.00 AA 2,008,120
Revenue Certificates, Athens Regional Medical Center,
Series 2002, 5.125%, 1/01/32 - NPFG Insured
900 Coffee County Hospital Authority, Georgia, Revenue Bonds, 12/14 at 100.00 BBB- 881,748
Coffee County Regional Medical Center, Series 2004,
5.250%, 12/01/22
3,000 Floyd County Hospital Authority, Georgia, Revenue 7/12 at 101.00 Aa3 3,026,639
Anticipation Certificates, Floyd Medical Center Project,
Series 2002, 5.200%, 7/01/32 - NPFG Insured
1,090 Floyd County Hospital Authority, Georgia, Revenue 7/13 at 101.00 Aa3 1,135,126
Anticipation Certificates, Floyd Medical Center, Series
2003, 5.000%, 7/01/19 - NPFG Insured
1,060 Henry County Hospital Authority, Georgia, Revenue 7/14 at 101.00 Aa2 1,103,767
Certificates, Henry Medical Center, Series 2004, 5.000%,
7/01/20 - NPFG Insured
900 Houston County Hospital Authority, Georgia, Revenue Bonds, 10/17 at 100.00 A2 869,094
Houston Healthcare Project, Series 2007, 5.250%, 10/01/35
225 Macon-Bibb County Hospital Authority, Georgia, Revenue 8/19 at 100.00 AA 218,646
Anticipation Certificates, The Medical Center of
Central Georgia, Inc. Project, Series 2009, 5.000%,
8/01/35
400 Medical Center Hospital Authority, Georgia, Revenue 8/11 at 100.00 A 408,576
Anticipation Certificates, Columbus Regional Healthcare
System, Inc. Project, Series 1999, 6.100%, 8/01/14 -
NPFG Insured
1,000 Savannah Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 Baa1 964,200
St. Joseph's/Candler Health System, Series 2003, 5.250%,
7/01/23 - RAAI Insured
750 Valdosta and Lowndes County Hospital Authority, Georgia, 10/17 at 100.00 A+ 702,360
Revenue Certificates, South Georgia Medical Center,
Series 2007, 5.000%, 10/01/33
-----------------------------------------------------------------------------------------------------------------------------------
11,825 Total Health Care 11,828,416
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 15
NPG | Nuveen Georgia Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
$ 1,000 Cobb County Development Authority, Georgia, Student Housing 7/17 at 100.00 Baa3 $ 860,310
Revenue Bonds, KSU Village II Real
Estate Foundation LLC Project, Series 2007A, 5.250%,
7/15/38 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
900 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 911,403
Bonds, Series 2002B-2, 5.350%, 12/01/22 (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
500 Savannah Economic Development Authority, Georgia, Revenue 7/12 at 100.00 Aa3 512,460
Bonds, GTREP Project, Series 2002, 5.000%, 7/01/22 -
NPFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.3% OF TOTAL INVESTMENTS)
1,000 Richmond County Development Authority, Georgia, Environmental 2/11 at 101.00 BBB 998,920
Improvement Revenue Bonds, International Paper Company,
Series 2001A, 6.250%, 2/01/25 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 19.0% (13.0% OF TOTAL INVESTMENTS)
540 Cherokee County Resource Recovery Development Authority, 7/17 at 100.00 AA+ 514,377
Georgia, Solid Waste Disposal Revenue Bonds, Ball Ground
Recycling LLC Project, Series 2007A, 5.000%, 7/01/37 -
AMBAC Insured (Alternative Minimum Tax)
2,215 Decatur, Georgia, General Obligation Bonds, Series 2007, 1/17 at 100.00 AAA 2,358,155
5.000%, 1/01/31 - FSA Insured
905 Georgia Municipal Association Inc., Certificates of 5/19 at 100.00 AAA 939,164
Participation, Riverdale Public Purpose
Project, Series 2009, 5.375%, 5/01/32 - AGC Insured
100 Georgia State, General Obligation Bonds, Series 2007, 8/17 at 100.00 AAA 111,453
5.000%, 8/01/24
210 Georgia State, General Obligation Bonds, Series 2009B, 1/19 at 100.00 AAA 235,110
5.000%, 1/01/26
1,000 Georgia, General Obligation Bonds, Series 2005B, No Opt. Call AAA 1,176,010
5.000%, 7/01/15
1,800 Gwinnett County School District, Georgia, General 2/18 at 100.00 AAA 1,897,974
Obligation Bonds, Series 2008, 5.000%, 2/01/36 (UB)
2,500 Paulding County School District, Georgia, General 2/17 at 100.00 AA+ 2,555,725
Obligation Bonds, Series 2007, 5.000%, 2/01/33
500 Wayne County Hospital Authority, Georgia, Hospital 3/16 at 100.00 N/R 470,815
Revenue Bonds, Series 2006, 5.000%, 3/01/23 -
SYNCORA GTY Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,770 Total Tax Obligation/General 10,258,783
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.7% (14.2% OF TOTAL INVESTMENTS)
Atlanta, Georgia, Tax Allocation Bonds Atlanta Station
Project, Series 2007:
70 5.250%, 12/01/19 No Opt. Call AAA 76,022
420 5.000%, 12/01/23 - AGC Insured 12/17 at 100.00 AAA 432,844
265 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, No Opt. Call N/R 274,670
Series 2005A, 5.625%, 1/01/16 (Alternative Minimum Tax)
2,000 Cobb-Marietta Coliseum and Exhibit Hall Authority, Cobb 1/14 at 100.00 AAA 2,169,520
County, Georgia, Revenue Bonds, Performing Arts Center,
Series 2004, 5.000%, 1/01/22
3,860 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia, 10/19 at 100.00 A 4,151,312
Revenue Refunding Bonds, Series 1993, 5.625%, 10/01/26 -
NPFG Insured
2,600 Macon-Bibb County Urban Development Authority, Georgia, 8/12 at 101.00 AA 2,902,457
Revenue Refunding Bonds, Public Facilities Projects,
Series 2002A, 5.375%, 8/01/17 No Opt. Call Aa3 1,190,970
1,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales
Tax Revenue Refunding Bonds,
Series 1992P, 6.250%, 7/01/20 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,215 Total Tax Obligation/Limited 11,197,795
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.4% (3.0% OF TOTAL INVESTMENTS)
2,290 Atlanta, Georgia, Airport General Revenue Bonds, Series 1/15 at 100.00 AAA 2,376,219
2004G, 5.000%, 1/01/26 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
16 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.7% (12.8% OF TOTAL INVESTMENTS) (4)
$ 735 Coweta County Development Authority, Georgia, Revenue Bonds, 1/13 at 100.00 N/R (4) $ 831,733
Newnan Water and Sewer, and Light Commission Project,
Series 2002, 5.250%, 1/01/18 (Pre-refunded 1/01/13) -
FGIC Insured
2,665 Coweta County Water and Sewer Authority, Georgia, Revenue 6/11 at 102.00 Aa3 (4) 2,905,702
Bonds, Series 2001, 5.250%, 6/01/26 (Pre-refunded 6/01/11)
500 DeKalb County, Georgia, Water and Sewerage Revenue 10/10 at 101.00 AAA 525,140
Bonds, Series 2000, 5.125%, 10/01/31 (Pre-refunded 10/01/10)
1,750 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 N/R (4) 1,870,890
Revenue Anticipation Certificates,
Northeast Georgia Health Services Inc., Series 2001,
5.500%, 5/15/31 (Pre-refunded 5/15/11)
25 Georgia Municipal Electric Authority, Senior Lien General 1/17 at 100.00 A+ (4) 27,728
Power Revenue Bonds, Series 1993Z,
5.500%, 1/01/20 (Pre-refunded 1/01/17) - FGIC Insured
1,000 Georgia, General Obligation Bonds, Series 2002D, 5.000%, 8/12 at 100.00 AAA 1,110,280
8/01/16 (Pre-refunded 8/01/12)
2,550 Gwinnett County Hospital Authority, Georgia, Revenue 2/12 at 102.00 Aaa 2,855,923
Anticipation Certificates, Gwinnett Hospital System Inc.
Project, Series 1997B, 5.300%, 9/01/27 (Pre-refunded 2/14/12) -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,225 Total U.S. Guaranteed 10,127,396
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.9% (6.8% OF TOTAL INVESTMENTS)
1,000 Georgia Municipal Electric Authority, General Power Revenue 1/17 at 100.00 A 1,025,130
Bonds, Project 1, Series 2007A, 5.000%, 1/01/25 -
NPFG Insured
975 Georgia Municipal Electric Authority, Senior Lien General No Opt. Call A+ 1,126,028
Power Revenue Bonds, Series 1993Z, 5.500%, 1/01/20 -
FGIC Insured
1,000 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 A1 1,045,730
Revenue Bonds, Series 2003A, 5.000%, 11/01/20 -
NPFG Insured
1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 A 1,030,190
Subordinated Lien Revenue Bonds, Series
2003A, 5.000%, 1/01/22 - NPFG Insured
1,200 Virgin Islands Water and Power Authority, Electric System 7/17 at 100.00 BBB- 1,118,928
Revenue Bonds, Series 2007B, 5.000%, 7/01/31
-----------------------------------------------------------------------------------------------------------------------------------
5,175 Total Utilities 5,346,006
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.5% (14.7% OF TOTAL INVESTMENTS)
1,225 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 1,253,886
Series 2004, 5.000%, 11/01/24 - FSA Insured
2,490 Cherokee County Water and Sewerage Authority, Georgia, 8/18 at 100.00 AAA 2,533,650
Revenue Bonds, Series 2001, 5.000%, 8/01/35 - FSA Insured
335 Coweta County Water and Sewer Authority, Georgia, 6/11 at 102.00 Aa3 351,385
Revenue Bonds, Series 2001, 5.250%, 6/01/26
Coweta County Water and Sewer Authority, Georgia,
Revenue Bonds, Series 2007:
500 5.000%, 6/01/32 6/18 at 100.00 Aa3 515,365
150 5.000%, 6/01/37 6/18 at 100.00 Aa3 152,808
890 Douglasville-Douglas County Water and Sewer Authority, 6/17 at 100.00 AA- 902,220
Georgia, Water and Sewer Revenue Bonds,
Series 2007, 5.000%, 6/01/37 - NPFG Insured
750 Forsyth County Water and Sewerage Authority, Georgia, 4/17 at 100.00 AAA 762,383
Revenue Bonds, Series 2007, 5.000%, 4/01/37 - FSA Insured
1,950 Fulton County, Georgia, Water and Sewerage Revenue 1/14 at 100.00 AA- 2,018,387
Bonds, Series 2004, 5.000%, 1/01/22 - FGIC Insured
1,000 Midgeville, Georgia, Water and Sewerage Revenue Refunding No Opt. Call AAA 1,194,660
Bonds, Series 1996, 6.000%, 12/01/21 - FSA Insured
Nuveen Investments 17
NPG | Nuveen Georgia Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,000 Unified Government of Athens-Clarke County, 1/19 at 100.00 AA- $ 1,062,360
Georgia, Water and Sewerage Revenue Bonds, Series
2008, 5.500%, 1/01/38
890 Walton County Water and Sewerage Authority, Georgia, 2/18 at 100.00 Aa3 901,855
Revenue Bonds, The Oconee-Hard Creek Reservoir Project,
Series 2008, 5.000%, 2/01/38 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,180 Total Water and Sewer 11,648,959
-----------------------------------------------------------------------------------------------------------------------------------
$ 75,785 Total Investments (cost $76,551,883) - 146.1% 79,104,513
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.2)% (1,190,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.6% 1,928,294
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.5)% (5) (25,700,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $54,142,807
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 32.5%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
18 Nuveen Investments
NZX | Nuveen Georgia Dividend Advantage Municipal Fund
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 25.9% (17.4% OF
TOTAL INVESTMENTS)
$ 1,000 Athens Housing Authority, Georgia, Student Housing 12/12 at 100.00 Aa2 $ 1,039,520
Lease Revenue Bonds, UGAREF East Campus Housing LLC
Project, Series 2002, 5.250%, 12/01/21 - AMBAC Insured
500 Athens Housing Authority, Georgia, Student Housing Lease 6/19 at 100.00 Aa2 520,940
Revenue Bonds, UGAREF East Campus Housing LLC Project,
Series 2009, 5.250%, 6/15/35
1,200 Atlanta Development Authority, Georgia, Educational 7/17 at 100.00 A1 1,165,656
Facilities Revenue Bonds, Science Park LLC
Project, Series 2007, 5.000%, 7/01/39
1,475 Bulloch County Development Authority, Georgia, Student 8/14 at 100.00 A1 1,558,013
Housing and Athletic Facility Lease
Revenue Bonds, Georgia Southern University, Series 2004,
5.250%, 8/01/20 - SYNCORA GTY Insured
1,620 Bulloch County Development Authority, Georgia, 8/12 at 100.00 A1 1,713,134
Student Housing Lease Revenue Bonds, Georgia
Southern University, Series 2002, 5.000%,
8/01/20 - AMBAC Insured
1,000 Fulton County Development Authority, Georgia, 4/12 at 100.00 N/R 1,007,600
Revenue Bonds, Georgia Tech Athletic
Association, Series 2001, 5.000%, 10/01/20 - AMBAC Insured
Private Colleges and Universities Authority, Georgia,
Revenue Bonds, Emory University, Series 2009, Trust 3404:
145 17.020%, 9/01/32 (IF) 9/19 at 100.00 AA 180,113
230 17.048%, 9/01/35 (IF) 9/19 at 100.00 AA 273,705
-----------------------------------------------------------------------------------------------------------------------------------
7,170 Total Education and Civic Organizations 7,458,681
-----------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.1% (1.4% OF TOTAL INVESTMENTS)
650 Virgin Islands Public Finance Authority, 1/15 at 100.00 BBB 591,058
Revenue Bonds, Refinery Project Hovensa LLC, Series
2007, 4.700%, 7/01/22 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 24.5% (16.4% OF TOTAL INVESTMENTS)
150 Baldwin County Hospital Authority, Georgia, Revenue Bonds, 12/09 at 100.00 BB+ 150,014
Oconee Regional Medical Center, Series 1997,
5.250%, 12/01/12
190 Baldwin County Hospital Authority, Georgia, Revenue Bonds, 12/09 at 101.00 BB+ 153,759
Oconee Regional Medical Center, Series 1998,
5.375%, 12/01/28
500 Clark County Hospital Authority, Georgia, Hospital Revenue 1/17 at 100.00 AA 510,140
Bonds, Athens Regional Medical Center, Series 2007,
5.000%, 1/01/27 - NPFG Insured
1,000 Clarke County Hospital Authority, Georgia, Hospital Revenue 1/12 at 101.00 AA 1,035,820
Certificates, Athens Regional Medical Center, Series 2002,
5.375%, 1/01/19 - NPFG Insured
500 Coffee County Hospital Authority, Georgia, Revenue Bonds, 12/14 at 100.00 BBB- 489,860
Coffee County Regional Medical
Center, Series 2004, 5.250%, 12/01/22
500 Henry County Hospital Authority, Georgia, Revenue 7/14 at 101.00 Aa2 520,645
Certificates, Henry Medical Center, Series
2004, 5.000%, 7/01/20 - NPFG Insured
500 Houston County Hospital Authority, Georgia, 10/17 at 100.00 A2 482,830
Revenue Bonds, Houston Healthcare Project, Series
2007, 5.250%, 10/01/35
300 Macon-Bibb County Hospital Authority, Georgia, 8/19 at 100.00 AA 291,528
Revenue Anticipation Certificates, The Medical
Center of Central Georgia, Inc. Project, Series 2009,
5.000%, 8/01/35
200 Royston Hospital Authority, Georgia, 7/11 at 100.00 N/R 199,522
Revenue Anticipation Certificates, Ty Cobb Healthcare
System Inc., Series 1999, 6.700%, 7/01/16
500 Savannah Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 Baa1 482,100
St. Joseph's/Candler Health System,
Series 2003, 5.250%, 7/01/23 - RAAI Insured
2,000 Valdosta and Lowndes County Hospital Authority, 10/12 at 101.00 A+ 2,012,260
Georgia, Revenue Certificates, South Georgia
Medical Center, Series 2002, 5.250%, 10/01/27 -
AMBAC Insured
750 Valdosta and Lowndes County Hospital Authority, Georgia, 10/17 at 100.00 A+ 702,360
Revenue Certificates, South Georgia Medical Center,
Series 2007, 5.000%, 10/01/33
-----------------------------------------------------------------------------------------------------------------------------------
7,090 Total Health Care 7,030,838
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.0% (0.7% OF TOTAL INVESTMENTS)
350 Cobb County Development Authority, Georgia, Student 7/17 at 100.00 Baa3 301,109
Housing Revenue Bonds, KSU Village II Real
Estate Foundation LLC Project, Series 2007A,
5.250%, 7/15/38 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 12.6% (8.5% OF TOTAL INVESTMENTS)
650 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA 658,236
Mortgage Bonds, Series 2002B-2, 5.350%,
12/01/22 (Alternative Minimum Tax)
Nuveen Investments 19
NZX | Nuveen Georgia Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 1,000 Georgia Housing and Finance Authority, Single 12/15 at 100.00 AAA $ 945,650
Family Mortgage Bonds, Series 2006C-2, 4.500%, 12/01/27
(Alternative Minimum Tax)
2,000 Georgia Housing and Finance Authority, 12/11 at 100.00 AAA 2,022,600
Single Family Mortgage Resolution 1 Bonds, Series
2002A-2, 5.450%, 12/01/22 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
3,650 Total Housing/Single Family 3,626,486
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.2% (4.2% OF TOTAL INVESTMENTS)
1,000 Cartersville Development Authority, Georgia, Waste and 2/12 at 100.00 BBB+ 1,002,640
Wastewater Facilities Revenue Refunding
Bonds, Anheuser Busch Cos. Inc. Project, Series 2002,
5.950%, 2/01/32 (Alternative Minimum Tax)
750 Savannah Economic Development Authority, Georgia, 7/12 at 100.00 Aa3 777,465
Revenue Bonds, GTREP Project, Series 2002,
5.000%, 7/01/19 - NPFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
1,750 Total Industrials 1,780,105
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.9% (0.6% OF TOTAL INVESTMENTS)
250 Medical Center Hospital Authority, Georgia, No Opt. Call N/R 254,335
Revenue Bonds, Spring Harbor at Green Island,
Series 2007, 5.000%, 7/01/11
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.1% (1.4% OF TOTAL INVESTMENTS)
20 Richmond County Development Authority, Georgia, 11/13 at 100.00 BBB 18,766
Environmental Improvement Revenue Bonds,
International Paper Company, Series 2003A,
5.750%, 11/01/27 (Alternative Minimum Tax)
600 Richmond County Development Authority, Georgia, 2/12 at 101.00 BBB 589,404
Environmental Improvement Revenue Refunding
Bonds, International Paper Company,
Series 2002A, 6.000%, 2/01/25 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
620 Total Materials 608,170
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.8% (9.3% OF TOTAL INVESTMENTS)
360 Cherokee County Resource Recovery Development Authority, 7/17 at 100.00 AA+ 342,918
Georgia, Solid Waste Disposal Revenue Bonds, Ball
Ground Recycling LLC Project, Series 2007A,
5.000%, 7/01/37 - AMBAC Insured (Alternative Minimum Tax)
200 Decatur, Georgia, General Obligation Bonds, Series 2007, 1/17 at 100.00 AAA 212,926
5.000%, 1/01/31 - FSA Insured
250 Georgia Municipal Association Inc., Certificates of 5/19 at 100.00 AAA 258,908
Participation, Riverdale Public Purpose
Project, Series 2009, 5.500%, 5/01/38 - AGC Insured
700 Georgia State, General Obligation Bonds, Series 2007, 8/17 at 100.00 AAA 780,171
5.000%, 8/01/24
100 Georgia State, General Obligation Bonds, Series 2009B, 1/19 at 100.00 AAA 111,957
5.000%, 1/01/26
500 Georgia, General Obligation Bonds, Series 2005B, No Opt. Call AAA 588,005
5.000%, 7/01/15
1,000 Gwinnett County School District, Georgia, 2/18 at 100.00 AAA 1,054,430
General Obligation Bonds, Series 2008,
5.000%, 2/01/36 (UB)
600 Paulding County School District, Georgia, 2/17 at 100.00 AA+ 613,374
General Obligation Bonds, Series 2007,
5.000%, 2/01/33
----------------------------------------------------------------------------------------------------------------------------------
3,710 Total Tax Obligation/General 3,962,689
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.4% (5.6% OF TOTAL INVESTMENTS)
40 Atlanta, Georgia, Tax Allocation Bonds Atlanta Station 12/17 at 100.00 AAA 41,223
Project, Series 2007, 5.000%,
12/01/23 - AGC Insured
135 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, No Opt. Call N/R 139,926
Series 2005A, 5.625%, 1/01/16
(Alternative Minimum Tax)
Atlanta, Georgia, Tax Allocation Bonds, Eastside Project,
Series 2005B:
250 5.400%, 1/01/20 7/15 at 100.00 N/R 241,690
75 5.600%, 1/01/30 7/15 at 100.00 N/R 65,884
215 Atlanta, Georgia, Tax Allocation Bonds, Princeton 1/16 at 100.00 N/R 180,959
Lakes Project, Series 2006, 5.500%, 1/01/31
50 Cobb-Marietta Coliseum and Exhibit Hall Authority, 10/19 at 100.00 A 53,774
Georgia, Revenue Refunding Bonds, Series
1993, 5.625%, 10/01/26 - NPFG Insured
1,525 Macon-Bibb County Urban Development Authority, 8/12 at 101.00 AA 1,682,167
Georgia, Revenue Refunding Bonds, Public
Facilities Projects, Series 2002A, 5.000%, 8/01/14
-----------------------------------------------------------------------------------------------------------------------------------
2,290 Total Tax Obligation/Limited 2,405,623
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.5% (2.4% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 A+ 1,012,520
Series 2000A, 5.400%, 1/01/15 -
FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
20 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 25.8% (17.4% OF TOTAL INVESTMENTS) (4)
$ 1,500 Coweta County Development Authority, Georgia, 1/13 at 100.00 N/R (4) $ 1,697,415
Revenue Bonds, Newnan Water and Sewer, and Light
Commission Project, Series 2002, 5.250%,
1/01/18 (Pre-refunded 1/01/13) - FGIC Insured
1,250 Gainesville and Hall County Hospital Authority, 5/11 at 100.00 N/R (4) 1,336,350
Georgia, Revenue Anticipation Certificates,
Northeast Georgia Health Services Inc., Series
2001, 5.500%, 5/15/31 (Pre-refunded 5/15/11)
730 Georgia, General Obligation Bonds, Series 2002D, 8/12 at 100.00 AAA 810,504
5.000%, 8/01/18 (Pre-refunded 8/01/12)
1,100 Gwinnett County Hospital Authority, Georgia, 2/12 at 102.00 Aaa 1,231,967
Revenue Anticipation Certificates, Gwinnett
Hospital System Inc. Project, Series 1997B,
5.300%, 9/01/27 (Pre-refunded 2/14/12) -
MBIA Insured
1,200 Private Colleges and Universities Authority, Georgia, 10/11 at 102.00 Baa2 (4) 1,335,816
Revenue Bonds, Mercer University, Series
2001, 5.750%, 10/01/31 (Pre-refunded 10/01/11)
1,000 Rockdale County Water and Sewerage Authority, Georgia, 1/10 at 101.00 Aa3 (4) 1,014,280
Revenue Bonds, Series 1999A, 5.375%,
7/01/29 (Pre-refunded 1/01/10) - NPFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,780 Total U.S. Guaranteed 7,426,332
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.9% (1.3% OF TOTAL INVESTMENTS)
500 Municipal Electric Authority of Georgia, Combustion
Turbine Revenue Bonds, Series 2003A, 11/13 at 100.00 AA 548,590
5.250%, 11/01/15 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 20.0% (13.4% OF TOTAL INVESTMENTS)
1,200 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 1,228,296
Series 2004, 5.000%, 11/01/24 -
FSA Insured
625 Cherokee County Water and Sewerage Authority, Georgia, 8/18 at 100.00 AAA 635,956
Revenue Bonds, Series 2001, 5.000%,
8/01/35 - FSA Insured
350 Coweta County Water and Sewer Authority, Georgia, 6/18 at 100.00 Aa3 356,552
Revenue Bonds, Series 2007, 5.000%, 6/01/37
890 Douglasville-Douglas County Water and Sewer Authority, 6/17 at 100.00 AA- 902,220
Georgia, Water and Sewer Revenue Bonds,
Series 2007, 5.000%, 6/01/37 - NPFG Insured
375 Forsyth County Water and Sewerage Authority, Georgia, 4/17 at 100.00 AAA 381,191
Revenue Bonds, Series 2007, 5.000%,
4/01/37 - FSA Insured
500 Fulton County, Georgia, Water and Sewerage Revenue 1/14 at 100.00 AA- 517,535
Bonds, Series 2004, 5.000%, 1/01/22 -
FGIC Insured
1,395 Macon Water Authority, Georgia, Water and Sewer 10/11 at 101.00 AA 1,488,004
Revenue Bonds, Series 2001B, 5.000%, 10/01/21
230 Walton County Water and Sewerage Authority, Georgia, 2/18 at 100.00 Aa3 233,063
Revenue Bonds, The Oconee-Hard Creek
Reservoir Project, Series 2008, 5.000%,
2/01/38 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,565 Total Water and Sewer 5,742,817
-----------------------------------------------------------------------------------------------------------------------------------
$ 41,375 Total Investments (cost $41,741,288) - 148.7% 42,749,353
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.3)% (660,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 565,752
-----------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.3)% (5) (13,900,000)
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 28,755,105
================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 32.5%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 21
NKG | Nuveen Georgia Dividend Advantage Municipal Fund 2
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.7% (1.8% OF TOTAL INVESTMENTS)
$ 2,000 Puerto Rico, The Children's Trust Fund, Tobacco 5/12 at 100.00 BBB $ 1,702,140
Settlement Asset-Backed Refunding Bonds,
Series 2002, 5.500%, 5/15/39
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.7%
(12.2% OF TOTAL INVESTMENTS)
2,500 Athens Housing Authority, Georgia, Student Housing 12/12 at 100.00 Aa2 2,522,175
Lease Revenue Bonds, UGAREF East Campus
Housing LLC Project, Series 2002, 5.000%,
12/01/33 - AMBAC Insured
500 Athens Housing Authority, Georgia, Student Housing Lease 6/19 at 100.00 Aa2 520,940
Revenue Bonds, UGAREF East Campus
Housing LLC Project, Series 2009, 5.250%, 6/15/35
1,225 Athens-Clarke County Unified Government Development 12/12 at 100.00 N/R 1,255,356
Authority, Georgia, Educational Facilities
Revenue Bonds, UGAREF CCRC Building LLC Project,
Series 2002, 5.000%, 12/15/18 - AMBAC Insured
3,000 Atlanta Development Authority, Georgia, Educational 7/17 at 100.00 A1 2,914,140
Facilities Revenue Bonds, Science Park LLC
Project, Series 2007, 5.000%, 7/01/39
2,000 Fulton County Development Authority, Georgia, 11/13 at 100.00 Aa3 2,019,040
Revenue Bonds, Georgia Tech - Klaus Parking and
Family Housing, Series 2003, 5.000%,
11/01/23 - NPFG Insured
1,050 Fulton County Development Authority, Georgia, 2/12 at 100.00 A2 1,052,279
Revenue Bonds, TUFF Morehouse Project, Series
2002A, 5.000%, 2/01/34 - AMBAC Insured
Private Colleges and Universities Authority, Georgia, Revenue
Bonds, Emory University, Series 2009, Trust 3404:
315 17.020%, 9/01/32 (IF) 9/19 at 100.00 AA 391,280
490 17.048%, 9/01/35 (IF) 9/19 at 100.00 AA 583,110
-----------------------------------------------------------------------------------------------------------------------------------
11,080 Total Education and Civic Organizations 11,258,320
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 23.7% (16.4% OF TOTAL INVESTMENTS)
150 Baldwin County Hospital Authority, Georgia, 12/09 at 100.00 BB+ 150,014
Revenue Bonds, Oconee Regional Medical Center,
Series 1997, 5.250%, 12/01/12
Baldwin County Hospital Authority, Georgia,Revenue Bonds,
Oconee Regional Medical Center, Series 1998:
40 5.250%, 12/01/22 12/10 at 100.00 BB+ 35,018
315 5.375%, 12/01/28 12/09 at 101.00 BB+ 254,917
Coffee County Hospital Authority, Georgia, Revenue Bonds,
Coffee County Regional Medical Center, Series 2004:
165 5.000%, 12/01/19 12/14 at 100.00 BBB- 161,822
1,000 5.250%, 12/01/22 12/14 at 100.00 BBB- 979,720
1,000 Floyd County Hospital Authority, Georgia, 7/12 at 101.00 Aa3 1,008,880
Revenue Anticipation Certificates, Floyd Medical
Center Project, Series 2002, 5.200%,
7/01/32 - NPFG Insured
1,140 Houston County Hospital Authority, Georgia, 10/17 at 100.00 A2 1,100,852
Revenue Bonds, Houston Healthcare Project, Series
2007, 5.250%, 10/01/35
450 Macon-Bibb County Hospital Authority, Georgia, 8/19 at 100.00 AA 437,292
Revenue Anticipation Certificates, The Medical
Center of Central Georgia, Inc. Project,
Series 2009, 5.000%, 8/01/35
Newnan Hospital Authority, Georgia, Revenue Anticipation
Certificates, Newnan Hospital Inc., Series 2002:
2,260 5.500%, 1/01/19 - NPFG Insured 1/13 at 100.00 A2 2,572,355
3,020 5.500%, 1/01/20 - NPFG Insured 1/13 at 100.00 A2 3,437,394
350 Royston Hospital Authority, Georgia, Revenue Anticipation 7/11 at 100.00 N/R 349,164
Certificates, Ty Cobb Healthcare
System Inc., Series 1999, 6.700%, 7/01/16
2,000 Savannah Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 Baa1 1,928,400
St. Joseph's/Candler Health System,
Series 2003, 5.250%, 7/01/23 - RAAI Insured
1,945 Tift County Hospital Authority, Georgia, Revenue 12/12 at 101.00 A2 1,953,344
Anticipation Bonds, Tift Regional Medical
Center, Series 2002, 5.250%, 12/01/19 - AMBAC Insured
750 Valdosta and Lowndes County Hospital Authority, Georgia, 10/17 at 100.00 A+ 702,360
Revenue Certificates, South Georgia
Medical Center, Series 2007, 5.000%, 10/01/33
-----------------------------------------------------------------------------------------------------------------------------------
14,585 Total Health Care 15,071,532
-----------------------------------------------------------------------------------------------------------------------------------
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.7% (3.3% OF TOTAL INVESTMENTS)
$ 25 Cobb County Development Authority, Georgia, Student 7/17 at 100.00 Baa3 $ 21,508
Housing Revenue Bonds, KSU Village II Real
Estate Foundation LLC Project, Series 2007A,
5.250%, 7/15/38 - AMBAC Insured
Savannah Economic Development Authority, Georgia, GNMA
Collateralized Multifamily Housing Revenue Bonds,
Snap I-II-III Apartments, Series 2002A:
500 5.150%, 11/20/22 (Alternative Minimum Tax) 11/12 at 102.00 AAA 513,545
980 5.200%, 11/20/27 (Alternative Minimum Tax) 11/12 at 102.00 AAA 990,241
1,465 5.250%, 11/20/32 (Alternative Minimum Tax) 11/12 at 102.00 AAA 1,471,973
-----------------------------------------------------------------------------------------------------------------------------------
2,970 Total Housing/Multifamily 2,997,267
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.7% (0.5% OF TOTAL INVESTMENTS)
170 Georgia Housing and Finance Authority, Single Family 12/15 at 100.00 AAA 153,022
Mortgage Bonds, Series 2006C-2, 4.550%,
12/01/31 (Alternative Minimum Tax)
295 Georgia Housing and Finance Authority, Single Family 6/11 at 100.00 AAA 302,458
Mortgage Resolution 1 Bonds, Series
2001B-2, 5.400%, 12/01/31 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
465 Total Housing/Single Family 455,480
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.1% (2.1% OF TOTAL INVESTMENTS)
2,190 Cobb County Development Authority, Georgia, Solid Waste 4/16 at 101.00 BBB 1,964,737
Disposal Revenue Bonds, Georgia Waste
Management Project, Series 2004A, 5.000%,
4/01/33 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.4% (0.3% OF TOTAL INVESTMENTS)
250 Medical Center Hospital Authority, Georgia, No Opt. Call N/R 254,335
Revenue Bonds, Spring Harbor at Green Island,
Series 2007, 5.000%, 7/01/11
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.6% (1.8% OF TOTAL INVESTMENTS)
1,000 Richmond County Development Authority, Georgia, 2/11 at 101.00 BBB 998,920
Environmental Improvement Revenue Bonds,
International Paper Company, Series 2001A,
6.250%, 2/01/25 (Alternative Minimum Tax)
250 Richmond County Development Authority, Georgia, 2/12 at 101.00 BBB 245,585
Environmental Improvement Revenue Refunding
Bonds, International Paper Company, Series 2002A,
6.000%, 2/01/25 (Alternative Minimum Tax)
370 Savannah Economic Development Authority, Georgia, No Opt. Call Baa3 384,500
Pollution Control Revenue Bonds, Union Camp
Corporation, Series 1995, 6.150%, 3/01/17
-----------------------------------------------------------------------------------------------------------------------------------
1,620 Total Materials 1,629,005
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.8% (18.5% OF TOTAL INVESTMENTS)
600 Cherokee County Resource Recovery Development Authority, 7/17 at 100.00 AA+ 571,530
Georgia, Solid Waste Disposal Revenue
Bonds, Ball Ground Recycling LLC Project,
Series 2007A, 5.000%, 7/01/37 - AMBAC Insured
(Alternative Minimum Tax)
900 Decatur, Georgia, General Obligation Bonds, 1/17 at 100.00 AAA 958,167
Series 2007, 5.000%, 1/01/31 - FSA Insured
1,000 Forsyth County, Georgia, General Obligation Bonds, 3/14 at 101.00 AA+ 1,124,000
Series 2004, 5.250%, 3/01/19
915 Georgia Municipal Association Inc., Certificates of 5/19 at 100.00 AAA 947,601
Participation, Riverdale Public Purpose
Project, Series 2009, 5.500%, 5/01/38 - AGC Insured
1,700 Georgia State, General Obligation Bonds, 8/17 at 100.00 AAA 1,894,701
Series 2007, 5.000%, 8/01/24
1,645 Georgia State, General Obligation Bonds, 1/19 at 100.00 AAA 1,841,693
Series 2009B, 5.000%, 1/01/26
750 Georgia, General Obligation Bonds, No Opt. Call AAA 894,555
Series 1998D, 5.250%, 10/01/15
1,000 Georgia, General Obligation Bonds, No Opt. Call AAA 1,176,010
Series 2005B, 5.000%, 7/01/15
2,100 Gwinnett County School District, Georgia, 2/18 at 100.00 AAA 2,214,303
General Obligation Bonds, Series 2008, 5.000%,
2/01/36 (UB)
200 La Grange-Troup County Hospital Authority, Georgia, 7/18 at 100.00 A+ 202,170
Revenue Anticipation Certificates, Series
2008A, 5.500%, 7/01/38
Oconee County, Georgia, General Obligation Bonds,
Recreation Project, Series 2003:
1,410 5.500%, 1/01/23 - AMBAC Insured 1/13 at 101.00 Aa3 1,534,277
1,470 5.250%, 1/01/26 - AMBAC Insured 1/13 at 101.00 Aa3 1,548,513
1,200 Paulding County School District, Georgia, 2/17 at 100.00 AA+ 1,226,748
General Obligation Bonds, Series 2007,
5.000%, 2/01/33
950 Wayne County Hospital Authority, Georgia, Hospital 3/16 at 100.00 N/R 894,549
Revenue Bonds, Series 2006, 5.000%,
3/01/23 - SYNCORA GTY Insured
-----------------------------------------------------------------------------------------------------------------------------------
15,840 Total Tax Obligation/General 17,028,817
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 23
NKG | Nuveen Georgia Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.5% (8.0% OF TOTAL INVESTMENTS)
$ 620 Atlanta, Georgia, Tax Allocation Bonds Atlanta Station 12/17 at 100.00 AAA $ 638,960
Project, Series 2007, 5.000%,
12/01/23 - AGC Insured
130 Atlanta, Georgia, Tax Allocation Bonds, Eastside Project, No Opt. Call N/R 134,744
Series 2005A, 5.625%, 1/01/16
(Alternative Minimum Tax)
Atlanta, Georgia, Tax Allocation Bonds,
Eastside Project, Series 2005B:
250 5.400%, 1/01/20 7/15 at 100.00 N/R 241,690
350 5.600%, 1/01/30 7/15 at 100.00 N/R 307,458
340 Atlanta, Georgia, Tax Allocation Bonds, Princeton Lakes 1/16 at 100.00 N/R 286,168
Project, Series 2006, 5.500%, 1/01/31
Cobb-Marietta Coliseum and Exhibit Hall Authority,
Georgia, Revenue Refunding Bonds, Series 1993:
105 5.500%, 10/01/18 - NPFG Insured No Opt. Call A 113,822
1,720 5.625%, 10/01/26 - NPFG Insured 10/19 at 100.00 A 1,849,808
750 Georgia Municipal Association Inc., Certificates of 6/12 at 101.00 N/R 777,915
Participation, Atlanta Court Project,
Series 2002, 5.125%, 12/01/21 - AMBAC Insured
2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, No Opt. Call Aa3 2,977,425
Sales Tax Revenue Refunding Bonds,
Series 1992P, 6.250%, 7/01/20 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,765 Total Tax Obligation/Limited 7,327,990
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.8% (4.0% OF TOTAL INVESTMENTS)
3,650 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 A+ 3,695,698
Series 2000A, 5.500%, 1/01/21 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.8% (7.5% OF TOTAL INVESTMENTS) (4)
1,000 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/12 at 100.00 AAA 1,122,280
Series 2002, 5.250%, 10/01/22
(Pre-refunded 10/01/12) - FSA Insured
1,000 Cherokee County School System, Georgia, General Obligation 8/13 at 100.00 AA+ (4) 1,140,840
Bonds, Series 2003, 5.000%, 8/01/16
(Pre-refunded 8/01/13) - MBIA Insured
DeKalb County, Georgia, Water and Sewerage Revenue Bonds,
Series 2000:
1,000 5.125%, 10/01/31 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,050,280
900 5.375%, 10/01/35 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 947,124
1,305 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 N/R (4) 1,395,149
Revenue Anticipation Certificates,
Northeast Georgia Health Services Inc., Series 2001,
5.500%, 5/15/31 (Pre-refunded 5/15/11)
1,100 Private Colleges and Universities Authority, Georgia, 10/11 at 102.00 Baa2 (4) 1,224,498
Revenue Bonds, Mercer University, Series
2001, 5.750%, 10/01/31 (Pre-refunded 10/01/11)
-----------------------------------------------------------------------------------------------------------------------------------
6,305 Total U.S. Guaranteed 6,880,171
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.9% (3.4% OF TOTAL INVESTMENTS)
1,000 Elberton, Georgia, Combined Utility System Revenue 1/12 at 100.00 A3 1,048,200
Refunding and Improvement Bonds, Series
2001, 5.000%, 1/01/22 - AMBAC Insured
1,000 Georgia Municipal Electric Authority, General Power 1/17 at 100.00 A 1,025,130
Revenue Bonds, Project 1, Series 2007A,
5.000%, 1/01/25 - NPFG Insured
1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 A 1,030,190
Subordinated Lien Revenue Bonds, Series
2003A, 5.000%, 1/01/22 - NPFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
3,000 Total Utilities 3,103,520
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 29.3% (20.2% OF TOTAL INVESTMENTS)
Atlanta, Georgia, Water and Wastewater Revenue Bonds,
Series 2004:
500 5.250%, 11/01/15 - FSA Insured 11/14 at 100.00 AAA 554,125
700 5.000%, 11/01/37 - FSA Insured 11/14 at 100.00 AAA 690,634
3,500 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/12 at 100.00 AAA 3,588,060
Series 2002, 5.000%, 10/01/27 - FSA Insured
1,990 Cherokee County Water and Sewerage Authority, Georgia, 8/18 at 100.00 AAA 2,024,885
Revenue Bonds, Series 2001, 5.000%,
8/01/35 - FSA Insured
Coweta County Water and Sewer Authority, Georgia,
Revenue Bonds, Series 2007:
500 5.000%, 6/01/32 6/18 at 100.00 Aa3 515,365
500 5.000%, 6/01/37 6/18 at 100.00 Aa3 509,360
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (CONTINUED)
$ 1,000 Douglasville-Douglas County Water and Sewer Authority, 12/15 at 100.00 AA- $ 1,036,150
Georgia, Water and Sewer Revenue Bonds,
Series 2005, 5.000%, 6/01/29 - NPFG Insured
445 Douglasville-Douglas County Water and Sewer Authority, 6/17 at 100.00 AA- 451,110
Georgia, Water and Sewer Revenue Bonds,
Series 2007, 5.000%, 6/01/37 - NPFG Insured
4,000 Forsyth County Water and Sewerage Authority, 4/13 at 100.00 AA+ 4,064,800
Georgia, Revenue Bonds, Series 2002,
5.000%, 4/01/32
375 Forsyth County Water and Sewerage Authority, Georgia, 4/17 at 100.00 AAA 381,191
Revenue Bonds, Series 2007, 5.000%,
4/01/37 - FSA Insured
950 Fulton County, Georgia, Water and Sewerage Revenue 1/10 at 100.50 AA- 957,846
Bonds, Series 1998, 5.000%, 1/01/16 -
FGIC Insured
3,100 Harris County, Georgia, Water System Revenue Bonds, 12/12 at 100.00 N/R 3,130,069
Series 2002, 5.000%, 12/01/22 -
AMBAC Insured
685 Walton County Water and Sewerage Authority, Georgia, 2/18 at 100.00 Aa3 694,123
Revenue Bonds, The Oconee-Hard Creek
Reservoir Project, Series 2008, 5.000%,
2/01/38 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
18,245 Total Water and Sewer 18,597,718
-----------------------------------------------------------------------------------------------------------------------------------
$ 88,965 Total Investments (cost $90,349,942) - 144.7% 91,966,730
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.2)% (1,395,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.6% 2,295,464
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.1)% (5) (29,300,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 63,567,194
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 31.9%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 25
NNC | Nuveen North Carolina Premium Income Municipal Fund
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.1%
(14.5% OF TOTAL INVESTMENTS)
$ 2,500 North Carolina Capital Facilities Financing Agency, 10/15 at 100.00 AA+ $ 2,558,875
Revenue Bonds, Duke University, Series
2005A, 5.000%, 10/01/41 (UB)
970 North Carolina Capital Facilities Financing Agency, 4/13 at 100.00 N/R 954,412
Revenue Bonds, Johnson and Wales
University, Series 2003A, 5.250%, 4/01/23 - SYNCORA
GTY Insured
2,285 North Carolina State University at Raleigh, General 10/13 at 100.00 AA 2,562,285
Revenue Bonds, Series 2003A,
5.000%, 10/01/15
1,530 University of North Carolina System, Pooled Revenue Bonds, No Opt. Call A 1,721,219
Series 2005A, 5.000%, 4/01/15 -
AMBAC Insured
580 University of North Carolina System, Pooled Revenue 10/12 at 100.00 AA 591,014
Refunding Bonds, Series 2002A, 5.375%,
4/01/22 - AMBAC Insured
University of North Carolina Wilmington, Certificates of
Participation, Student Housing Project Revenue Bonds,
Series 2006:
1,430 5.000%, 6/01/23 - FGIC Insured 6/16 at 100.00 A 1,495,337
1,505 5.000%, 6/01/24 - FGIC Insured 6/16 at 100.00 A 1,565,937
University of North Carolina, Chapel Hill,
System Net Revenue Bonds, Series 2003:
2,380 5.000%, 12/01/19 12/13 at 100.00 AA+ 2,567,877
2,725 5.000%, 12/01/21 12/13 at 100.00 AA+ 2,957,824
1,500 5.000%, 12/01/23 12/13 at 100.00 AA+ 1,627,815
1,675 University of North Carolina, Wilmington, General 1/12 at 101.00 A2 1,687,780
Revenue Bonds, Series 2002A, 5.000%,
1/01/23 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,080 Total Education and Civic Organizations 20,290,375
-----------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.7% (1.1% OF TOTAL INVESTMENTS)
1,500 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 1,513,080
Refinery Project - Hovensa LLC, Series
2003, 6.125%, 7/01/22 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 22.4% (14.7% OF TOTAL INVESTMENTS)
1,145 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 1,014,939
Facilities Revenue Bonds, Series
2007, 5.250%, 10/01/27
1,000 Johnston Memorial Hospital Authority, North Carolina, 4/18 at 100.00 AAA 1,012,040
Mortgage Revenue Bonds, Johnston
Memorial Hospital Project, Series 2008,
5.250%, 10/01/36 - FSA Insured
225 New Hanover County, North Carolina, Hospital Revenue Bonds, 10/19 at 100.00 AAA 228,724
New Hanover Regional Medical
Center, Series 2006B, 5.125%, 10/01/31 - FSA Insured
920 North Carolina Medical Care Commission Health Care Facilities 10/14 at 100.00 AAA 942,779
Revenue Bonds (WakeMed), Series
2009A, 5.625%, 10/01/38 - AGC Insured
2,000 North Carolina Medical Care Commission, Healthcare Facilities 11/13 at 100.00 A+ 2,071,100
Revenue Bonds, Novant Health
Obligated Group, Series 2003A, 5.000%, 11/01/19
2,000 North Carolina Medical Care Commission, Healthcare Facilities 4/10 at 101.00 BBB+ 2,006,460
Revenue Bonds, Stanly Memorial
Hospital, Series 1999, 6.375%, 10/01/29
North Carolina Medical Care Commission, Healthcare Facilities
Revenue Bonds, Union Regional Medical Center, Series 2002A:
1,000 5.500%, 1/01/19 1/12 at 100.00 A 1,018,260
550 5.500%, 1/01/20 1/12 at 100.00 A 559,823
1,750 5.375%, 1/01/32 1/12 at 100.00 A 1,722,140
3,000 North Carolina Medical Care Commission, Hospital Revenue 6/12 at 101.00 A 2,862,600
Bonds, Southeastern Regional Medical
Center, Series 2002, 5.375%, 6/01/32
1,500 North Carolina Medical Care Commission, Hospital Revenue 11/17 at 100.00 A- 1,453,335
Bonds, Wilson Medical Center, Series
2007, 5.000%, 11/01/27
1,395 North Carolina Medical Care Commission, Revenue Bonds, 1/15 at 100.00 A+ 1,355,856
Blue Ridge Healthcare System, Series
2005, 5.000%, 1/01/33 - FGIC Insured
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
North Carolina Medical Care Commission, Revenue Bonds,
Cleveland County Healthcare System, Series 2004A:
$ 600 5.250%, 7/01/20 - AMBAC Insured 7/14 at 100.00 A $ 613,698
500 5.250%, 7/01/22 - AMBAC Insured 7/14 at 100.00 A 505,450
300 Northern Hospital District of Surry County, North Carolina, 4/18 at 100.00 BBB 300,741
Health Care Facilities Revenue
Bonds, Series 2008, 6.250%, 10/01/38
665 Onslow County Hospital Authority, North Carolina, 10/16 at 100.00 A 623,491
FHA Insured Mortgage Revenue Bonds, Onslow
Memorial Hospital Project, Series 2006, 5.000%,
4/01/31 - NPFG Insured
2,300 The Charlotte-Mecklenberg Hospital Authority, North 1/18 at 100.00 AA- 2,206,321
Carolina, Doing Business as Carolinas
HealthCare System, Health Care Refunding Revenue
Bonds, Series 2008A, 5.000%, 1/15/47
-----------------------------------------------------------------------------------------------------------------------------------
20,850 Total Health Care 20,497,757
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.7% (3.1% OF TOTAL INVESTMENTS)
1,000 Asheville Housing Authority, North Carolina, 5/10 at 100.00 AAA 1,000,270
GNMA-Collateralized Multifamily Housing Revenue
Bonds, Woodridge Apartments, Series 1997, 5.800%,
11/20/39 (Alternative Minimum Tax)
2,290 Mecklenburg County, North Carolina, FNMA Multifamily 7/13 at 105.00 AAA 2,314,205
Housing Revenue Bonds, Little Rock
Apartments, Series 2003, 5.375%, 1/01/36
(Alternative Minimum Tax)
1,000 North Carolina Capital Facilities Financing Agency, 6/13 at 100.00 N/R 1,006,700
Housing Revenue Bonds, Elizabeth City
State University, Series 2003A, 5.000%,
6/01/28 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,290 Total Housing/Multifamily 4,321,175
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.8% (4.5% OF TOTAL INVESTMENTS)
1,010 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AA 1,010,929
Revenue Bonds, 1998 Trust Agreement,
Series 10A, 5.400%, 7/01/32 - AMBAC Insured
(Alternative Minimum Tax)
2,295 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 2,296,813
Revenue Bonds, 1998 Trust Agreement,
Series 6A, 6.200%, 1/01/29 (Alternative Minimum Tax)
1,000 North Carolina Housing Finance Agency, Home Ownership 1/17 at 100.00 AA 938,200
Revenue Bonds, Series 2007-29A, 4.800%,
7/01/33 (Alternative Minimum Tax)
830 North Carolina Housing Finance Agency, Home Ownership 7/16 at 100.00 AA 779,835
Revenue Bonds, Series 25-A, 4.900%,
7/01/37 (Alternative Minimum Tax)
1,190 North Carolina Housing Finance Agency, Single Family 3/10 at 100.00 AA 1,206,434
Revenue Bonds, Series 1996HH, 6.300%,
3/01/26 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
6,325 Total Housing/Single Family 6,232,211
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.4% (0.2% OF TOTAL INVESTMENTS)
375 North Carolina Medical Care Commission, Revenue Bonds, 1/16 at 100.00 N/R 330,326
Pines at Davidson, Series 2006A, 5.000%, 1/01/36
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.5% (0.3% OF TOTAL INVESTMENTS)
500 Columbus County Industrial Facilities and Pollution Control 3/17 at 100.00 BBB 411,235
Financing Authority, North
Carolina, Environmental Improvement Revenue Bonds,
International Paper Company Project,
Series 2007A, 4.625%, 3/01/27
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.1% (6.6% OF TOTAL INVESTMENTS)
1,890 Craven County, North Carolina, General Obligation Bonds, 5/12 at 101.00 AA 1,992,211
Series 2002, 5.000%, 5/01/21 -
AMBAC Insured
4,285 Durham County, North Carolina, General Obligation Bonds, 4/12 at 100.00 AAA 4,706,430
Series 2002B, 5.000%, 4/01/16
1,820 Durham, North Carolina, General Obligation Bonds, 4/17 at 100.00 AAA 2,059,057
Series 2007, 5.000%, 4/01/21
500 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 543,875
5.000%, 3/01/22
-----------------------------------------------------------------------------------------------------------------------------------
8,495 Total Tax Obligation/General 9,301,573
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 27
NNC | Nuveen North Carolina Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 38.9% (25.5% OF TOTAL INVESTMENTS)
$ 1,330 Cabarrus County, North Carolina, Certificates of 2/13 at 100.00 AA $ 1,420,852
Participation, Series 2002, 5.250%, 2/01/17
1,800 Catawba County, North Carolina, Certificates of 6/14 at 100.00 Aa3 1,899,234
Participation, Series 2004, 5.250%, 6/01/21 -
NPFG Insured
1,700 Charlotte, North Carolina, Certificates of 6/13 at 100.00 AA+ 1,777,962
Participation, Governmental Facilities Projects,
Series 2003G, 5.375%, 6/01/26
1,400 Charlotte, North Carolina, Certificates of 6/19 at 100.00 AA+ 1,425,438
Participation, Nascar Hall of Fame, Series 2009C,
5.000%, 6/01/39
950 Charlotte, North Carolina, Certificates of 6/18 at 100.00 AA+ 974,472
Participation, Transit Projects Phase 2, Series
2008A, 5.000%, 6/01/33
1,500 Charlotte, North Carolina, Certificates of 6/13 at 100.00 AA+ 1,519,695
Participation, Transit Projects, Series 2003A,
5.000%, 6/01/33
Charlotte, North Carolina, Storm Water Fee Revenue
Bonds, Series 2002:
1,050 5.250%, 6/01/20 6/12 at 101.00 AAA 1,152,113
1,750 5.000%, 6/01/25 6/12 at 101.00 AAA 1,886,273
1,400 Craven County, North Carolina, Certificates of 6/17 at 100.00 AA- 1,451,366
Participation, Series 2007, 5.000%, 6/01/27 - NPFG Insured
1,000 Davidson County, North Carolina, Certificates of No Opt. Call A+ 1,124,820
Participation, Series 2004, 5.250%, 6/01/14 - AMBAC Insured
750 Harnett County, North Carolina, Certificates of 6/19 at 100.00 AAA 789,405
Participation, Series 2009, 5.000%, 6/01/28 - AGC Insured
Lee County, North Carolina, Certificates of
Participation, Public Schools and Community
College, Series 2004:
1,715 5.250%, 4/01/18 - FSA Insured 4/14 at 100.00 AAA 1,864,617
500 5.250%, 4/01/20 - FSA Insured 4/14 at 100.00 AAA 535,000
1,000 5.250%, 4/01/22 - FSA Insured 4/14 at 100.00 AAA 1,059,260
200 Mecklenburg County, North Carolina, Certificates of No Opt. Call AA+ 214,422
Participation, Series 2009A, 5.000%, 2/01/27
2,600 North Carolina Infrastructure Finance Corporation, 2/15 at 100.00 AA+ 2,824,068
Certificates of Participation, Capital
Improvements, Series 2005A, 5.000%, 2/01/19
1,500 North Carolina Infrastructure Finance Corporation, 2/14 at 100.00 AA+ 1,573,860
Certificates of Participation, Correctional
Facilities, Series 2004A, 5.000%, 2/01/23
1,500 North Carolina, Certificates of Participation, Repair and 6/14 at 100.00 AA+ 1,601,220
Renovation Project, Series 2004B, 5.000%, 6/01/20
North Carolina, Certificates of Participation, Series 2003:
1,130 5.250%, 6/01/21 6/13 at 100.00 AA+ 1,193,551
1,000 5.250%, 6/01/23 6/13 at 100.00 AA+ 1,049,750
2,000 Puerto Rico Highway and Transportation Authority, Grant 3/14 at 100.00 A+ 1,990,700
Anticipation Revenue Bonds, Series
2004, 5.000%, 9/15/21 - NPFG Insured
285 Raleigh, North Carolina, Certificates of Participation, 2/17 at 100.00 AA+ 301,687
Series 2007, 5.000%, 2/01/27
1,000 Randolph County, North Carolina, Certificates of 6/14 at 102.00 AAA 1,078,570
Participation, Series 2004, 5.000%, 6/01/20 -
FSA Insured
1,000 Rutherford County, North Carolina, Certificates of 12/17 at 100.00 AAA 1,053,900
Participation, Series 2007, 5.000%,
12/01/27 - FSA Insured
1,950 Sampson County, North Carolina, Certificates of 6/17 at 100.00 AAA 1,973,108
Participation, Series 2006, 5.000%,
6/01/34 - FSA Insured (UB)
1,200 Wilmington, North Carolina, Certificates of 6/18 at 100.00 AA 1,264,536
Participation, Series 2008A, 5.000%, 6/01/29
700 Wilson County, North Carolina, Certificates of 4/17 at 100.00 A2 721,623
Participation, School Facilities Project,
Series 2007, 5.000%, 4/01/25 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
33,910 Total Tax Obligation/Limited 35,721,502
-----------------------------------------------------------------------------------------------------------------------------------
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.6% (5.7% OF TOTAL INVESTMENTS)
Charlotte, North Carolina, Airport Revenue Bonds,
Series 2004A:
$ 600 5.250%, 7/01/24 - NPFG Insured 7/14 at 100.00 A+ $ 643,062
2,710 5.000%, 7/01/29 - NPFG Insured 7/14 at 100.00 A+ 2,750,894
600 North Carolina Turnpike Authority, Triangle Expressway 1/19 at 100.00 AAA 632,958
System Senior Lien Revenue Bonds,
Series 2009A, 5.750%, 1/01/39 - AGC Insured
4,230 North Carolina Turnpike Authority, Triangle Expressway No Opt. Call AAA 1,005,767
System Senior Lien Revenue Bonds,
Series 2009B, 0.000%, 1/01/33 - AGC Insured
500 Piedmont Triad Airport Authority, North Carolina, Airport 7/15 at 100.00 A2 528,640
Revenue Bonds, Series 2005A, 5.000%,
7/01/20 - SYNCORA GTY Insured
2,250 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aa3 2,342,993
Revenue Bonds, Series 2001A, 5.250%,
11/01/16 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,890 Total Transportation 7,904,314
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.1% (7.9% OF TOTAL INVESTMENTS) (4)
1,530 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA (4) 1,675,580
Revenue Bonds, Mission St. Joseph's
Health System, Series 2001, 5.250%, 10/01/31
(Pre-refunded 10/01/11)
735 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 Aa3 (4) 856,701
Northeast Medical Center, Series 2004,
5.000%, 11/01/24 (Pre-refunded 11/01/14)
425 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 428,710
Revenue Bonds, Series 1980, 10.500%,
1/01/10 (ETM)
4,260 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 4,912,078
Revenue Bonds, Series 1986, 5.000%,
1/01/20 (ETM)
500 North Carolina, General Obligation Bonds, Series 2000A, 9/10 at 102.00 AAA 528,305
5.100%, 9/01/16 (Pre-refunded 9/01/10)
420 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 N/R (4) 472,823
Bonds, Series 2002A, 5.375%,
4/01/22 (Pre-refunded 10/01/12) - AMBAC Insured
2,000 Winston-Salem, North Carolina, Water and Sewerage System 6/12 at 100.00 AAA 2,206,040
Revenue Bonds, Series 2002A, 5.000%,
6/01/18 (Pre-refunded 6/01/12)
-----------------------------------------------------------------------------------------------------------------------------------
9,870 Total U.S. Guaranteed 11,080,237
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.6% (8.9% OF TOTAL INVESTMENTS)
25 North Carolina Eastern Municipal Power Agency, Power System 1/13 at 100.00 A- 26,593
Revenue Bonds, Series 2003C,
5.375%, 1/01/17
3,000 North Carolina Eastern Municipal Power Agency, Power System 1/13 at 100.00 A- 3,188,430
Revenue Bonds, Series 2003F,
5.500%, 1/01/15
1,000 North Carolina Eastern Municipal Power Agency, Power System 1/16 at 100.00 A- 1,052,000
Revenue Bonds, Series 2005,
5.250%, 1/01/20 - AMBAC Insured
North Carolina Eastern Municipal Power Agency, Power System
Revenue Refunding Bonds, Series 1993B:
15 5.500%, 1/01/17 - FGIC Insured 1/10 at 100.00 Baa1 15,020
105 5.500%, 1/01/21 1/10 at 100.00 A- 105,091
165 6.000%, 1/01/22 - FGIC Insured No Opt. Call Baa1 189,702
575 North Carolina Municipal Power Agency 1, Catawba Electric 1/19 at 100.00 A 584,637
Revenue Bonds, Refunding Series
2009A, 5.000%, 1/01/30
4,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/10 at 101.00 A 4,060,960
Revenue Bonds, Series 1999B,
6.500%, 1/01/20
2,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 A2 2,192,920
Revenue Bonds, Series 2003A, 5.250%,
1/01/15 - AMBAC Insured
1,000 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A1 1,071,520
Financing Authority, North Carolina,
Revenue Refunding Bonds, Carolina Power and Light
Company, Series 2002, 5.375%, 2/01/17
-----------------------------------------------------------------------------------------------------------------------------------
11,885 Total Utilities 12,486,873
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29
NNC | Nuveen North Carolina Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.6% (7.0% OF TOTAL INVESTMENTS)
$ 1,605 Broad River Water Authority, North Carolina, Water 6/15 at 100.00 Baa2 $ 1,629,508
System Revenue Bonds, Series 2005, 5.000%,
6/01/20 - SYNCORA GTY Insured
500 Brunswick County, North Carolina, Enterprise System 4/18 at 100.00 AAA 516,835
Revenue Bonds, Series 2008A, 5.000%,
4/01/31 - FSA Insured
50 Charlotte, North Carolina, Water and Sewerage System 6/11 at 101.00 AAA 51,946
Revenue Bonds, Series 2001,
5.125%, 6/01/26
1,295 Greensboro, North Carolina, Combined Enterprise 6/15 at 100.00 AAA 1,384,446
System Revenue Bonds, Series 2005A,
5.000%, 6/01/26
Oak Island, North Carolina, Enterprise System Revenue
Bonds, Series 2009A:
550 6.000%, 6/01/34 - AGC Insured 6/19 at 100.00 AAA 591,630
1,000 6.000%, 6/01/36 - AGC Insured 6/19 at 100.00 AAA 1,067,110
500 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 A 518,745
Revenue Bonds, Series 2004B, 5.000%,
6/01/23 - SYNCORA GTY Insured
3,865 Winston-Salem, North Carolina, Water and Sewer System 6/17 at 100.00 AAA 4,003,096
Revenue Bonds, Series 2007A, 5.000%,
6/01/37 (UB)
-----------------------------------------------------------------------------------------------------------------------------------
9,365 Total Water and Sewer 9,763,316
-----------------------------------------------------------------------------------------------------------------------------------
$ 137,335 Total Investments (cost $135,995,898) - 152.5% 139,853,974
==============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.7)% (5,195,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 2,225,636
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.2)% (5) (45,150,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 91,734,610
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 32.3%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
30 Nuveen Investments
NRB | Nuveen North Carolina Dividend Advantage Municipal Fund
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.6% (9.4% OF TOTAL
INVESTMENTS)
$ 380 North Carolina Capital Facilities Financing Agency, 10/11 at 100.00 AA+ $ 389,686
Revenue Bonds, Duke University, Series
2001A, 5.125%, 10/01/26
500 North Carolina Capital Facilities Financing Agency, Revenue 9/11 at 101.00 Ba2 451,350
Bonds, High Point University,
Series 2001, 5.125%, 9/01/18
1,430 University of North Carolina System, Pooled Revenue 10/12 at 100.00 AA 1,556,684
Refunding Bonds, Series 2002A, 5.375%,
4/01/17 - AMBAC Insured
1,750 University of North Carolina, Chapel Hill, System Net 6/11 at 100.00 AA+ 1,833,457
Revenue Bonds, Series 2001A,
5.000%, 12/01/25
1,000 University of North Carolina, Chapel Hill, System Net No Opt. Call AA+ 1,086,670
Revenue Bonds, Series 2002B,
5.000%, 12/01/11
------------------------------------------------------------------------------------------------------------------------------------
5,060 Total Education and Civic Organizations 5,317,847
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.8% (11.4% OF TOTAL INVESTMENTS)
555 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 416,150
Facilities Revenue Bonds, Series
2007, 5.250%, 10/01/38
250 Johnston Memorial Hospital Authority, North Carolina, 4/18 at 100.00 AAA 253,010
Mortgage Revenue Bonds, Johnston
Memorial Hospital Project, Series 2008, 5.250%, 10/01/36
- FSA Insured
30 New Hanover County, North Carolina, Hospital Revenue Bonds, 10/19 at 100.00 AAA 30,497
New Hanover Regional Medical
Center, Series 2006B, 5.125%, 10/01/31 - FSA Insured
280 North Carolina Medical Care Commission Health Care 10/14 at 100.00 AAA 286,933
Facilities Revenue Bonds (WakeMed), Series
2009A, 5.625%, 10/01/38 - AGC Insured
1,110 North Carolina Medical Care Commission, Healthcare 1/12 at 100.00 A 1,140,825
Facilities Revenue Bonds, Union Regional
Medical Center, Series 2002A, 5.250%, 1/01/15
980 North Carolina Medical Care Commission, Healthcare Revenue 5/10 at 100.00 A+ 980,451
Bonds, Carolina Medicorp, Series
1996, 5.250%, 5/01/26
1,500 North Carolina Medical Care Commission, Hospital Revenue 6/12 at 101.00 A 1,509,525
Bonds, Southeastern Regional Medical
Center, Series 2002, 5.250%, 6/01/22
500 North Carolina Medical Care Commission, Hospital Revenue 11/17 at 100.00 A- 508,480
Bonds, Wilson Medical Center, Series
2007, 5.000%, 11/01/20
250 North Carolina Medical Care Commission, Revenue Bonds, Blue 1/15 at 100.00 A+ 242,985
Ridge Healthcare System, Series
2005, 5.000%, 1/01/33 - FGIC Insured
150 Northern Hospital District of Surry County, North Carolina, 4/18 at 100.00 BBB 150,371
Health Care Facilities Revenue
Bonds, Series 2008, 6.250%, 10/01/38
950 The Charlotte-Mecklenberg Hospital Authority, North 1/18 at 100.00 AA- 911,307
Carolina, Doing Business as Carolinas
HealthCare System, Health Care Refunding Revenue Bonds,
Series 2008A, 5.000%, 1/15/47
-----------------------------------------------------------------------------------------------------------------------------------
6,555 Total Health Care 6,430,534
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.7% (2.8% OF TOTAL INVESTMENTS)
400 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AA 400,368
Revenue Bonds, 1998 Trust Agreement,
Series 10A, 5.400%, 7/01/32 - AMBAC Insured
(Alternative Minimum Tax)
650 North Carolina Housing Finance Agency, Home Ownership 1/10 at 100.00 AA 650,189
Revenue Bonds, 1998 Trust Agreement,
Series 5A, 5.625%, 7/01/30 (Alternative Minimum Tax)
250 North Carolina Housing Finance Agency, Home Ownership 1/17 at 100.00 AA 234,550
Revenue Bonds, Series 2007-29A, 4.800%,
7/01/33 (Alternative Minimum Tax)
330 North Carolina Housing Finance Agency, Home Ownership 7/16 at 100.00 AA 310,055
Revenue Bonds, Series 25-A, 4.900%,
7/01/37 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
1,630 Total Housing/Single Family 1,595,162
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NRB | Nuveen North Carolina Dividend Advantage Municipal Fund (continued)
Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7% (1.0% OF TOTAL INVESTMENTS)
North Carolina Medical Care Commission, Healthcare
Facilities Revenue Bonds, Presbyterian Homes, Series 2006:
$ 200 5.400%, 10/01/27 10/16 at 100.00 N/R $ 186,328
300 5.500%, 10/01/31 10/16 at 100.00 N/R 269,418
150 North Carolina Medical Care Commission, Revenue Bonds, 1/16 at 100.00 N/R 132,131
Pines at Davidson, Series 2006A, 5.000%, 1/01/36
-----------------------------------------------------------------------------------------------------------------------------------
650 Total Long-Term Care 587,877
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.0% (0.6% OF TOTAL INVESTMENTS)
400 Columbus County Industrial Facilities and Pollution Control 3/17 at 100.00 BBB 328,988
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, International Paper Company
Project, Series 2007A, 4.625%, 3/01/27
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.8% (6.0% OF TOTAL INVESTMENTS)
1,000 Durham, North Carolina, General Obligation Bonds, Series 4/17 at 100.00 AAA 1,131,350
2007, 5.000%, 4/01/21
North Carolina, General Obligation Bonds, Series 2004A:
1,000 5.000%, 3/01/18 3/14 at 100.00 AAA 1,131,560
1,000 5.000%, 3/01/22 3/14 at 100.00 AAA 1,087,750
-----------------------------------------------------------------------------------------------------------------------------------
3,000 Total Tax Obligation/General 3,350,660
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.6% (16.2% OF TOTAL INVESTMENTS)
1,400 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,464,204
Governmental Facilities Projects,
Series 2003G, 5.375%, 6/01/26 (UB)
200 Charlotte, North Carolina, Certificates of Participation, 6/19 at 100.00 AA+ 203,634
Nascar Hall of Fame, Series 2009C,
5.000%, 6/01/39
305 Charlotte, North Carolina, Certificates of Participation, 6/18 at 100.00 AA+ 312,857
Transit Projects Phase 2, Series
2008A, 5.000%, 6/01/33
160 Craven County, North Carolina, Certificates of 6/17 at 100.00 AA- 169,219
Participation, Series 2007, 5.000%, 6/01/23 -
NPFG Insured
1,870 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AA- 2,070,557
Series 2002, 5.250%, 6/01/15 -
AMBAC Insured
1,250 Davidson County, North Carolina, Certificates of 6/14 at 100.00 A+ 1,310,500
Participation, Series 2004, 5.250%, 6/01/21 -
AMBAC Insured
1,390 Durham, North Carolina, Certificates of Participation, 6/15 at 100.00 AA+ 1,444,544
Series 2005B, 5.000%, 6/01/25
50 Harnett County, North Carolina, Certificates of 6/19 at 100.00 AAA 52,627
Participation, Series 2009, 5.000%, 6/01/28 -
AGC Insured
470 Raleigh, North Carolina, Certificates of Participation, 6/14 at 100.00 AA+ 501,716
Downtown Improvement Project, Series
2004B, 5.000%, 6/01/20
170 Raleigh, North Carolina, Certificates of Participation, 2/17 at 100.00 AA+ 179,954
Series 2007, 5.000%, 2/01/27
150 Rutherford County, North Carolina, Certificates of 12/17 at 100.00 AAA 158,085
Participation, Series 2007, 5.000%,
12/01/27 - FSA Insured
700 Sampson County, North Carolina, Certificates of 6/17 at 100.00 AAA 708,295
Participation, Series 2006, 5.000%,
6/01/34 - FSA Insured (UB)
250 Wilmington, North Carolina, Certificates of Participation, 6/18 at 100.00 AA 263,445
Series 2008A, 5.000%, 6/01/29
250 Wilson County, North Carolina, Certificates of 4/17 at 100.00 A2 257,723
Participation, School Facilities Project,
Series 2007, 5.000%, 4/01/25 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
8,615 Total Tax Obligation/Limited 9,097,360
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.8% (4.7% OF TOTAL INVESTMENTS)
250 North Carolina Turnpike Authority, Triangle Expressway 1/19 at 100.00 AAA 263,733
System Senior Lien Revenue Bonds,
Series 2009A, 5.750%, 1/01/39 - AGC Insured
2,170 North Carolina Turnpike Authority, Triangle Expressway No Opt. Call AAA 484,821
System Senior Lien Revenue Bonds,
Series 2009B, 0.000%, 1/01/34 - AGC Insured
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 300 Piedmont Triad Airport Authority, North Carolina, 7/15 at 100.00 A2 $ 17,184
Airport Revenue Bonds, Series 2005A, 5.000%,
7/01/20 - SYNCORA GTY Insured
1,530 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aa3 1,582,862
Revenue Bonds, Series 2001A, 5.250%,
11/01/18 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,250 Total Transportation 2,648,600
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.9% (8.4% OF TOTAL INVESTMENTS) (4)
1,000 Broad River Water Authority, North Carolina, Water System 6/10 at 101.00 Baa1 (4) 1,035,140
Revenue Bonds, Series 2000, 5.375%,
6/01/26 (Pre-refunded 6/01/10) - MBIA Insured
100 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AAA 116,793
Healthcare System Revenue Bonds, DBA
Carolinas Healthcare System, Series 2005A, 5.000%,
1/15/45 (Pre-refunded 1/15/15)
500 Greensboro, North Carolina, Combined Enterprise System 6/11 at 101.00 AAA 539,895
Revenue Bonds, Series 2001A, 5.125%,
6/01/21 (Pre-refunded 6/01/11)
620 North Carolina Capital Facilities Financing Agency, 10/11 at 100.00 AAA 671,801
Revenue Bonds, Duke University, Series
2001A, 5.125%,10/01/26 (Pre-refunded 10/01/11)
800 North Carolina Medical Care Commission, Health 10/11 at 101.00 AA (4) 876,120
System Revenue Bonds, Mission St. Joseph's
Health System, Series 2001, 5.250%,
10/01/31 (Pre-refunded 10/01/11)
300 North Carolina Medical Care Commission, Revenue 11/14 at 100.00 Aa3 (4) 349,674
Bonds, Northeast Medical Center, Series 2004,
5.000%, 11/01/24 (Pre-refunded 11/01/14)
1,020 University of North Carolina System, Pooled Revenue 10/12 at 100.00 N/R (4) 1,148,285
Refunding Bonds, Series 2002A, 5.375%,
4/01/17 (Pre-refunded 10/01/12) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,340 Total U.S. Guaranteed 4,737,708
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 21.3% (12.9% OF TOTAL INVESTMENTS)
Greenville, North Carolina, Combined Enterprise System
Revenue Bonds, Series 2001:
1,000 5.250%, 9/01/20 - FSA Insured 9/11 at 101.00 AAA 1,066,890
500 5.250%, 9/01/21 - FSA Insured 9/11 at 101.00 AAA 531,055
500 North Carolina Eastern Municipal Power Agency, Power 1/16 at 100.00 A- 526,000
System Revenue Bonds, Series 2005,
5.250%, 1/01/20 - AMBAC Insured
2,500 North Carolina Eastern Municipal Power Agency, Power 1/10 at 100.00 Baa1 2,503,321
System Revenue Refunding Bonds, Series
1993B, 5.500%, 1/01/17 - FGIC Insured
1,000 North Carolina Eastern Municipal Power Agency, Power 1/10 at 101.00 A- 1,014,550
System Revenue Refunding Bonds, Series
1999B, 5.650%, 1/01/16
25 North Carolina Municipal Power Agency 1, Catawba 1/19 at 100.00 A 25,419
Electric Revenue Bonds, Refunding Series
2009A, 5.000%, 1/01/30
1,500 Wake County Industrial Facilities and Pollution 2/12 at 101.00 A1 1,607,280
Control Financing Authority, North Carolina,
Revenue Refunding Bonds, Carolina Power and
Light Company, Series 2002, 5.375%,2/01/17
-----------------------------------------------------------------------------------------------------------------------------------
7,025 Total Utilities 7,274,515
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 43.9% (26.6% OF TOTAL INVESTMENTS)
100 Brunswick County, North Carolina, Enterprise System 4/18 at 100.00 AAA 103,367
Revenue Bonds, Series 2008A, 5.000%,
4/01/31 - FSA Insured
505 Cape Fear Public Utility Authority, North Carolina, 8/18 at 100.00 AA 524,953
Water & Sewer System Revenue Bonds, Series
2008, 5.000%, 8/01/35
2,250 Charlotte, North Carolina, Water and Sewerage System 6/11 at 101.00 AAA 2,337,547
Revenue Bonds, Series 2001,
5.125%, 6/01/26
1,000 Charlotte, North Carolina, Water and Sewerage System 7/18 at 100.00 AAA 1,051,610
Revenue Bonds, Series 2008,
5.000%, 7/01/38
500 Greensboro, North Carolina, Combined Enterprise System 6/15 at 100.00 AAA 536,235
Revenue Bonds, Series 2005A,
5.000%, 6/01/25
700 Oak Island, North Carolina, Enterprise System Revenue 6/19 at 100.00 AAA 752,983
Bonds, Series 2009A, 6.000%, 6/01/34 -
AGC Insured
Nuveen Investments 33
Nuveen North Carolina Dividend Advantage Municipal Fund (continued)
NRB | Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 400 Onslow County, North Carolina, Combined Enterprise 6/14 at 100.00 A $ 414,995
System Revenue Bonds, Series 2004B, 5.000%,
6/01/23 - SYNCORA GTY Insured
Raleigh, North Carolina, Combined Enterprise System
Revenue Bonds, Series 2006A:
4,440 5.000%, 3/01/31 (UB) 3/16 at 100.00 AAA 4,697,076
3,000 5.000%, 3/01/36 (UB) 3/16 at 100.00 AAA 3,121,380
5 Raleigh, North Carolina, Combined Enterprise System 3/16 at 100.00 AAA 5,607
Revenue Bonds, Series 2006A, Residuals
Series II-R-645-2, 13.879%, 3/01/36 (IF)
1,385 Winston-Salem, North Carolina, Water and Sewer System 6/17 at 100.00 AAA 1,434,486
Revenue Bonds, Series 2007A, 5.000%, 6/01/37 (UB)
-----------------------------------------------------------------------------------------------------------------------------------
14,285 Total Water and Sewer 14,980,239
-----------------------------------------------------------------------------------------------------------------------------------
$ 55,810 Total Investments (cost $54,534,514) - 165.1% 56,349,490
==============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (21.0)% (7,160,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 1,013,778
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.1)% (5) (16,075,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 34,128,268
==================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total Investments
is 28.5%.
N/R Not rated.
(IF)Inverse floating rate investment.
(UB)Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating
Rate Securities for more information.
See accompanying notes to financial statements.
34 Nuveen Investments
NNO | Nuveen North Carolina Dividend Advantage Municipal Fund 2
| PORTFOLIO OF INVESTMENTS
November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.1% (9.0% OF TOTAL INVESTMENTS)
Appalachian State University, North Carolina, Housing
and Student Center System Revenue Refunding Bonds, Series 2002:
$ 1,040 5.000%, 7/15/14 - NPFG Insured 7/12 at 100.00 A1 $ 1,133,787
1,000 5.000%, 7/15/15 - NPFG Insured 7/12 at 100.00 A1 1,063,870
North Carolina Capital Facilities Financing Agency,
Revenue Bonds, Duke University,Series 2001A:
715 5.125%, 10/01/26 10/11 at 100.00 AA+ 733,225
380 5.125%, 10/01/41 10/11 at 100.00 AA+ 383,751
1,000 University of North Carolina System, Pooled Revenue 4/15 at 100.00 A 1,047,470
Bonds, Series 2005A, 5.000%, 4/01/22 - AMBAC Insured
635 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 AA 674,808
Bonds, Series 2002A, 5.375%, 4/01/19 - AMBAC Insured
500 University of North Carolina Wilmington, Certificates of 6/16 at 100.00 A 530,055
Participation, Student Housing Project Revenue Bonds,
Series 2006, 5.000%, 6/01/21 - FGIC Insured
1,500 University of North Carolina, Chapel Hill, System Net Revenue No Opt. Call AA+ 1,630,005
Bonds, Series 2002B, 5.000%, 12/01/11
250 University of North Carolina, Charlotte, Certificates of 3/15 at 100.00 A 263,625
Participation, Student Housing
Project, Series 2005, 5.000%, 3/01/21 - AMBAC Insured
400 University of North Carolina, Greensboro, General Revenue 4/11 at 101.00 AAA 426,820
Refunding Bonds, Series 2002B,
5.375%, 4/01/17 - FSA Insured
----------------------------------------------------------------------------------------------------------------------------------
7,420 Total Education and Civic Organizations 7,887,416
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 25.1% (16.0% OF TOTAL INVESTMENTS)
945 Albemarle Hospital Authority, North Carolina, Health Care 10/17 at 100.00 N/R 708,580
Facilities Revenue Bonds, Series
2007, 5.250%, 10/01/38
1,640 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.0 AA- 1,641,214
Healthcare System Revenue Bonds,
Carolinas Healthcare System, Series 2001A,
5.000%, 1/15/31
500 Johnston Memorial Hospital Authority, North Carolina, 4/18 at 100.00 AAA 506,020
Mortgage Revenue Bonds, Johnston
Memorial Hospital Project, Series 2008, 5.250%, 10/01/36 -
FSA Insured
120 New Hanover County, North Carolina, Hospital Revenue Bonds, 10/19 at 100.00 AAA 121,986
New Hanover Regional Medical Center, Series 2006B,
5.125%, 10/01/31 - FSA Insured
455 North Carolina Medical Care Commission Health Care 10/14 at 100.00 AAA 466,266
Facilities Revenue Bonds (WakeMed), Series
2009A, 5.625%, 10/01/38 - AGC Insured
2,000 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 A+ 2,060,120
Facilities Revenue Bonds, Novant Health
Obligated Group, Series 2003A, 5.000%, 11/01/20
1,005 North Carolina Medical Care Commission, Healthcare 1/12 at 100.00 A 1,045,612
Facilities Revenue Bonds, Union Regional
Medical Center, Series 2002A, 5.250%, 1/01/13
North Carolina Medical Care Commission, Hospital Revenue
Bonds, Southeastern Regional Medical Center, Series 2002:
1,000 5.500%, 6/01/15 6/12 at 101.00 A 1,040,120
2,100 5.250%, 6/01/22 6/12 at 101.00 A 2,113,335
925 North Carolina Medical Care Commission, Hospital Revenue 11/17 at 100.00 A- 896,223
Bonds, Wilson Medical Center, Series 2007,
5.000%, 11/01/27
1,250 North Carolina Medical Care Commission, Revenue Bonds, Blue 1/15 at 100.00 A+ 1,214,925
Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
FGIC Insured
North Carolina Medical Care Commission, Revenue Bonds,
Cleveland County Healthcare System, Series 2004A:
595 5.250%, 7/01/20 - AMBAC Insured 7/14 at 100.00 A 608,584
500 5.250%, 7/01/22 - AMBAC Insured 7/14 at 100.00 A 505,450
150 Northern Hospital District of Surry County, North Carolina, 4/18 at 100.00 BBB 150,371
Health Care Facilities Revenue
Bonds, Series 2008, 6.250%, 10/01/38
1,000 The Charlotte-Mecklenberg Hospital Authority, North 1/18 at 100.00 AA- 959,270
Carolina, Doing Business as Carolinas
HealthCare System, Health Care Refunding Revenue Bonds,
Series 2008A, 5.000%, 1/15/47
----------------------------------------------------------------------------------------------------------------------------------
14,185 Total Health Care 14,038,076
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 35
| Nuveen North Carolina Dividend Advantage Municipal Fund 2 (continued)
NNO | Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.2% (2.7% OF TOTAL INVESTMENTS)
$ 345 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AA $ 345,317
Revenue Bonds, 1998 Trust Agreement,
Series 10A, 5.400%, 7/01/32 - AMBAC Insured (Alternative
Minimum Tax)
North Carolina Housing Finance Agency, Home Ownership Revenue
Bonds, Series 13A:
735 4.700%, 7/01/12 (Alternative Minimum Tax) 7/11 at 100.00 AA 751,155
740 4.850%, 7/01/13 (Alternative Minimum Tax) 7/11 at 100.00 AA 755,377
510 North Carolina Housing Finance Agency, Home Ownership Revenue 7/16 at 100.00 AA 479,176
Bonds, Series 25-A, 4.900%,
7/01/37 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
2,330 Total Housing/Single Family 2,331,025
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7% (1.1% OF TOTAL INVESTMENTS)
North Carolina Medical Care Commission, Healthcare Facilities
Revenue Bonds, Presbyterian Homes, Series 2006:
250 5.400%, 10/01/27 10/16 at 100.00 N/R 232,910
600 5.500%, 10/01/31 10/16 at 100.00 N/R 538,836
185 North Carolina Medical Care Commission, Revenue Bonds, Pines 1/16 at 100.00 N/R 162,961
at Davidson, Series 2006A, 5.000%, 1/01/36
-----------------------------------------------------------------------------------------------------------------------------------
1,035 Total Long-Term Care 934,707
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.4% (1.5% OF TOTAL INVESTMENTS)
300 Columbus County Industrial Facilities and Pollution Control 3/17 at 100.00 BBB 246,741
Financing Authority, North Carolina,
Environmental Improvement Revenue Bonds,
International Paper Company Project,
Series 2007A, 4.625%, 3/01/27
1,100 Northampton County Industrial Facilities and Pollution Control 2/11 at 101.00 BBB 1,100,506
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, International Paper Company,
Series 2001A, 6.200%, 2/01/25 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
1,400 Total Materials 1,347,247
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.4% (3.4% OF TOTAL INVESTMENTS)
250 Durham County, North Carolina, General Obligation Bonds, 5/10 at 102.00 AAA 260,610
Series 2000, 5.600%, 5/01/15
1,475 Durham, North Carolina, General Obligation Bonds, Series 2007, 4/17 at 100.00 AAA 1,657,576
5.000%, 4/01/22
1,000 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 1,087,750
5.000%, 3/01/22
-----------------------------------------------------------------------------------------------------------------------------------
2,725 Total Tax Obligation/General 3,005,936
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.9% (22.3% OF TOTAL INVESTMENTS)
30 Cabarrus County, North Carolina, Certificates of 2/13 at 100.00 AA 32,349
Participation, Series 2002, 5.250%, 2/01/16
1,750 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,799,753
Governmental Facilities Projects,
Series 2003G, 5.000%, 6/01/28
400 Charlotte, North Carolina, Certificates of Participation, 6/19 at 100.00 AA+ 407,268
Nascar Hall of Fame, Series 2009C,
5.000%, 6/01/39
575 Charlotte, North Carolina, Certificates of Participation, 6/18 at 100.00 AA+ 589,812
Transit Projects Phase 2, Series
2008A, 5.000%, 6/01/33
1,850 Charlotte, North Carolina, Storm Water Fee Revenue Bonds, 6/12 at 101.00 AAA 2,029,913
Series 2002, 5.250%, 6/01/18
800 Craven County, North Carolina, Certificates of Participation, 6/17 at 100.00 AA- 829,352
Series 2007, 5.000%, 6/01/27 -
NPFG Insured
500 Harnett County, North Carolina, Certificates of 6/19 at 100.00 AAA 521,120
Participation, Series 2009, 5.000%, 6/01/29 -
AGC Insured
Hartnett County, North Carolina, Certificates of
Participation, Series 2002:
1,000 5.250%, 12/01/15 - FSA Insured 12/12 at 101.00 AAA 1,112,090
2,025 5.375%, 12/01/16 - FSA Insured 12/12 at 101.00 AAA 2,262,533
715 Lee County, North Carolina, Certificates of Participation, 4/14 at 100.00 AAA 765,050
Public Schools and Community
College, Series 2004, 5.250%, 4/01/20 - FSA Insured
1,380 Pasquotank County, North Carolina, Certificates of 6/14 at 100.00 A 1,416,322
Participation, Series 2004, 5.000%,
6/01/25 - NPFG Insured
2,070 Pitt County, North Carolina, Certificates of Participation, 4/14 at 100.00 AA- 2,092,356
School Facilities Project, Series
2004B, 5.000%, 4/01/29 - AMBAC Insured
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Raleigh, North Carolina, Certificates of Participation,
Downtown Improvement Project, Series 2004B:
$ 805 5.000%, 6/01/20 6/14 at 100.00 AA+ $ 859,321
1,310 5.000%, 6/01/21 6/14 at 100.00 AA+ 1,389,583
115 Raleigh, North Carolina, Certificates of Participation, 2/17 at 100.00 AA+ 121,733
Series 2007, 5.000%, 2/01/27
1,000 Randolph County, North Carolina, Certificates of 6/14 at 102.00 AAA 1,078,570
Participation,Series 2004, 5.000%, 6/01/20 -
FSA Insured
100 Rutherford County, North Carolina, Certificates of 12/17 at 100.00 AAA 105,390
Participation, Series 2007, 5.000%, 12/01/27 -
FSA Insured
1,150 Sampson County, North Carolina, Certificates of 6/17 at 100.00 AAA 1,163,628
Participation, Series 2006, 5.000%,
6/01/34 - FSA Insured (UB)
500 Wilmington, North Carolina, Certificates of Participation, 6/18 at 100.00 AA 526,890
Series 2008A, 5.000%, 6/01/29
400 Wilson County, North Carolina, Certificates of 4/17 at 100.00 A2 412,356
Participation, School Facilities Project,
Series 2007, 5.000%, 4/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,475 Total Tax Obligation/Limited 19,515,389
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.6% (11.2% OF TOTAL INVESTMENTS)
1,935 Charlotte, North Carolina, Airport Revenue Bonds, Series 7/14 at 100.00 A+ 1,951,467
2004A, 5.000%, 7/01/34 - NPFG Insured
400 North Carolina Turnpike Authority, Triangle Expressway 1/19 at 100.00 AAA 421,972
System Senior Lien Revenue Bonds,
Series 2009A, 5.750%, 1/01/39 - AGC Insured
5,000 North Carolina Turnpike Authority, Triangle Expressway No Opt. Call AAA 917,200
System Senior Lien Revenue Bonds,
Series 2009B, 0.000%, 1/01/37 - AGC Insured
435 Piedmont Triad Airport Authority, North Carolina, Airport 7/15 at 100.00 A2 459,917
Revenue Bonds, Series 2005A, 5.000%,
7/01/20 - SYNCORA GTY Insured
Raleigh Durham Airport Authority, North Carolina, Airport
Revenue Bonds, Series 2001A:
1,000 5.250%, 11/01/15 - FGIC Insured 5/11 at 101.00 Aa3 1,046,180
2,320 5.250%, 11/01/16 - FGIC Insured 5/11 at 101.00 Aa3 2,415,885
2,230 5.250%, 11/01/17 - FGIC Insured 5/11 at 101.00 Aa3 2,313,893
270 University of North Carolina, Charlotte, Parking System 1/12 at 101.00 A2 286,405
Revenue Bonds, Series 2002, 5.000%,
1/01/20 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
13,590 Total Transportation 9,812,919
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.6% (8.7% OF TOTAL INVESTMENTS) (4)
490 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 Aa3 (4) 520,346
Healthcare System Revenue Bonds,
Carolinas Healthcare System, Series 2001A, 5.000%,
1/15/31 (Pre-refunded 1/15/11)
200 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AAA 233,586
Healthcare System Revenue Bonds, DBA
Carolinas Healthcare System, Series 2005A, 5.000%,
1/15/45 (Pre-refunded 1/15/15)
370 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA (4) 405,206
Revenue Bonds, Mission St. Joseph's
Health System, Series 2001, 5.250%, 10/01/31
(Pre-refunded 10/01/11)
500 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 Aa3 (4) 582,790
Northeast Medical Center, Series 2004,
5.000%, 11/01/24 (Pre-refunded 11/01/14)
Raleigh, North Carolina, Combined Enterprise System
Revenue Bonds, Series 2004:
1,000 5.000%, 3/01/21 (Pre-refunded 3/01/14) 3/14 at 100.00 AAA 1,152,090
1,250 5.000%, 3/01/22 (Pre-refunded 3/01/14) 3/14 at 100.00 AAA 1,440,113
3,200 Wake County, North Carolina, General Obligation School 2/10 at 101.50 AAA 3,275,966
Bonds, Series 2000, 5.400%, 2/01/13
(Pre-refunded 2/01/10)
------------------------------------------------------------------------------------------------------------------------------------
7,010 Total U.S. Guaranteed 7,610,097
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.6% (8.7% OF TOTAL INVESTMENTS)
500 North Carolina Eastern Municipal Power Agency, Power 1/16 at 100.00 A- 526,000
System Revenue Bonds, Series 2005,
5.250%, 1/01/20 - AMBAC Insured
North Carolina Eastern Municipal Power Agency, Power
System Revenue Refunding Bonds, Series 1993B:
2,500 5.500%, 1/01/17 - FGIC Insured 1/10 at 100.00 Baa1 2,503,324
25 5.500%, 1/01/21 1/10 at 100.00 A- 25,022
10 North Carolina Eastern Municipal Power Agency, Power 1/11 at 100.00 A- 10,146
System Revenue Refunding Bonds, Series
1999A, 5.750%, 1/01/26 - ACA Insured
Nuveen Investments 37
NNO | NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 (continued)
| PORTFOLIO OF INVESTMENTS November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 225 North Carolina Municipal Power Agency 1, Catawba Electric 1/19 at 100.00 A $ 228,771
Revenue Bonds, Refunding Series
2009A, 5.000%, 1/01/30
1,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/10 at 101.00 A 1,522,860
Revenue Bonds, Series 1999B,
6.500%, 1/01/20
2,600 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A1 2,785,951
Financing Authority, North Carolina,
Revenue Refunding Bonds, Carolina Power and Light
Company, Series 2002, 5.375%, 2/01/17
-----------------------------------------------------------------------------------------------------------------------------------
7,360 Total Utilities 7,602,074
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.1% (15.4% OF TOTAL INVESTMENTS)
500 Brunswick County, North Carolina, Enterprise System Revenue 4/18 at 100.00 AAA 516,835
Bonds, Series 2008A, 5.000%,
4/01/31 - FSA Insured
500 Cape Fear Public Utility Authority, North Carolina, Water & 8/18 at 100.00 AA 519,755
Sewer System Revenue Bonds, Series
2008, 5.000%, 8/01/35
2,520 Charlotte, North Carolina, Water and Sewerage System Revenue No Opt. Call AAA 2,891,044
Bonds, Series 2002A,
5.250%, 7/01/13
1,000 Durham County, North Carolina, Enterprise System Revenue 6/13 at 100.00 AA 1,035,790
Bonds, Series 2002, 5.000%, 6/01/23 -
NPFG Insured
700 Oak Island, North Carolina, Enterprise System Revenue Bonds, 6/19 at 100.00 AAA 752,983
Series 2009A, 6.000%, 6/01/34 -
AGC Insured
Raleigh, North Carolina, Combined Enterprise System Revenue
Bonds, Series 2006A:
3,095 5.000%, 3/01/31 (UB) 3/16 at 100.00 AAA 3,274,201
975 5.000%, 3/01/36 (UB) 3/16 at 100.00 AAA 1,014,449
40 Raleigh, North Carolina, Combined Enterprise System Revenue 3/16 at 100.00 AAA 46,948
Bonds, Series 2006A, Residuals
Series II-R-645-2, 13.583%, 3/01/31 (IF)
1,000 Wilmington, North Carolina, Water and Sewer Revenue Bonds, 6/15 at 100.00 AAA 1,054,811
Series 2005, 5.000%, 6/01/25 - FSA Insured
2,275 Winston-Salem, North Carolina, Water and Sewer System Revenue 6/17 at 100.00 AAA 2,356,286
Bonds, Series 2007A, 5.000%,
6/01/37 (UB)
-----------------------------------------------------------------------------------------------------------------------------------
12,605 Total Water and Sewer 13,463,102
-----------------------------------------------------------------------------------------------------------------------------------
$ 88,135 Total Investments (cost $84,856,442) - 156.7% 87,547,988
=================------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.6)% (4,805,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 1,129,084
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (5) (28,000,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 55,872,072
==================================================================================================================
(1) All percentages shown in the Portfolio of nvestments are based on
net assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be below
investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 32.0%.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
38 Nuveen Investments
NII | Nuveen North Carolina Dividend Advantage Municipal Fund 3
Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.0% (1.9% OF TOTAL INVESTMENTS)
$ 2,000 Puerto Rico, The Children's Trust Fund, Tobacco 5/12 at 100.00 BBB $ 1,702,140
Settlement Asset-Backed Refunding Bonds,
Series 2002, 5.500%, 5/15/39
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.0%
(2.5% of Total Investments)
North Carolina Capital Facilities Financing Agency,
Revenue Bonds, Duke University, Series 2001A:
330 5.125%, 10/01/26 10/11 at 100.00 AA+ 338,412
95 5.125%, 10/01/41 10/11 at 100.00 AA+ 95,938
1,290 University of North Carolina System, Pooled Revenue 10/12 at 100.00 A+ 1,306,577
Refunding Bonds, Series 2002A, 5.000%,
4/01/27 - AMBAC Insured
500 University of North Carolina Wilmington, 6/16 at 100.00 A 530,055
Certificates of Participation, Student Housing
Project Revenue Bonds, Series 2006, 5.000%,
6/01/21 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
2,215 Total Education and Civic Organizations 2,270,982
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 12.4% (7.7% OF TOTAL INVESTMENTS)
695 Albemarle Hospital Authority, North Carolina, 10/17 at 100.00 N/R 616,055
Health Care Facilities Revenue Bonds, Series
2007, 5.250%, 10/01/27
580 Charlotte-Mecklenburg Hospital Authority, 1/11 at 101.00 AA- 580,429
North Carolina, Healthcare System Revenue Bonds,
Carolinas Healthcare System, Series 2001A, 5.000%, 1/15/31
500 Johnston Memorial Hospital Authority, North Carolina, 4/18 at 100.00 AAA 506,020
Mortgage Revenue Bonds, Johnston
Memorial Hospital Project, Series 2008, 5.250%,
10/01/36 - FSA Insured
180 New Hanover County, North Carolina, Hospital Revenue 10/19 at 100.00 AAA 182,979
Bonds, New Hanover Regional Medical
Center, Series 2006B, 5.125%, 10/01/31 - FSA Insured
545 North Carolina Medical Care Commission Health Care 10/14 at 100.00 AAA 558,494
Facilities Revenue Bonds (WakeMed), Series
2009A, 5.625%, 10/01/38 - AGC Insured
2,000 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 A+ 2,079,920
Facilities Revenue Bonds, Novant Health
Obligated Group, Series 2003A, 5.000%, 11/01/18
1,000 North Carolina Medical Care Commission, Hospital 11/17 at 100.00 A- 968,890
Revenue Bonds, Wilson Medical Center, Series
2007, 5.000%, 11/01/27
300 North Carolina Medical Care Commission, Revenue 1/15 at 100.00 A+ 291,582
Bonds, Blue Ridge Healthcare System, Series
2005, 5.000%, 1/01/33 - FGIC Insured
150 Northern Hospital District of Surry County, 4/18 at 100.00 BBB 150,371
North Carolina, Health Care Facilities Revenue
Bonds, Series 2008, 6.250%, 10/01/38
1,200 The Charlotte-Mecklenberg Hospital Authority, 1/18 at 100.00 AA- 1,151,124
North Carolina, Doing Business as Carolinas
HealthCare System, Health Care Refunding
Revenue Bonds, Series 2008A, 5.000%, 1/15/47
-----------------------------------------------------------------------------------------------------------------------------------
7,150 Total Health Care 7,085,864
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.8% (1.1% OF TOTAL INVESTMENTS)
1,000 Mecklenburg County, North Carolina, FNMA 7/13 at 105.00 AAA 1,043,300
Multifamily Housing Revenue Bonds, Little Rock
Apartments, Series 2003, 5.150%, 1/01/22
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.8% (1.7% OF TOTAL INVESTMENTS)
650 North Carolina Housing Finance Agency, 1/10 at 100.00 AA 650,189
Home Ownership Revenue Bonds, 1998 Trust Agreement,
Series 5A, 5.625%, 7/01/30 (Alternative Minimum Tax)
500 North Carolina Housing Finance Agency, 1/17 at 100.00 AA 469,100
Home Ownership Revenue Bonds, Series 2007-29A, 4.800%, 7/16 at 100.00 AA 474,478
7/01/33 (Alternative Minimum Tax)
505 North Carolina Housing Finance Agency,
Home Ownership Revenue Bonds, Series 25-A, 4.900%,
7/01/37 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
1,655 Total Housing/Single Family 1,593,767
===================================================================================================================================
Nuveen Investments 39
NII | Nuveen North Carolina Dividend Advantage Municipal Fund 3 (continued)
Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.6% (1.0% OF TOTAL INVESTMENTS)
North Carolina Medical Care Commission, Healthcare
Facilities Revenue Bonds, Presbyterian
Homes, Series 2006:
$ 250 5.400%, 10/01/27 10/16 at 100.00 N/R $ 232,910
600 5.500%, 10/01/31 10/16 at 100.00 N/R 538,836
190 North Carolina Medical Care Commission, Revenue 1/16 at 100.00 N/R 167,365
Bonds, Pines at Davidson, Series 2006A,
5.000%, 1/01/36
-----------------------------------------------------------------------------------------------------------------------------------
1,040 Total Long-Term Care 939,111
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.3% (0.2% OF TOTAL INVESTMENTS)
200 Columbus County Industrial Facilities and 3/17 at 100.00 BBB 164,494
Pollution Control Financing Authority, North
Carolina, Environmental Improvement Revenue Bonds,
International Paper Company Project,
Series 2007A, 4.625%, 3/01/27
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.2% (10.7% OF TOTAL INVESTMENTS)
3,900 Cary, North Carolina, General Obligation Water and 3/11 at 102.00 AAA 4,203,026
Sewer Bonds, Series 2001, 5.000%, 3/01/20
1,500 Durham, North Carolina, General Obligation Bonds, 4/17 at 100.00 AAA 1,685,670
Series 2007, 5.000%, 4/01/22
Lincoln County, North Carolina, General
Obligation Bonds, Series 2002A:
850 5.000%, 6/01/19 - FGIC Insured 6/12 at 101.00 AA- 899,368
900 5.000%, 6/01/20 - FGIC Insured 6/12 at 101.00 AA- 945,693
1,050 5.000%, 6/01/21 - FGIC Insured 6/12 at 101.00 AA- 1,113,021
500 North Carolina, General Obligation Bonds, 3/14 at 100.00 AAA 543,875
Series 2004A, 5.000%, 3/01/22
400 Raleigh, North Carolina, General Obligation 6/12 at 100.00 AAA 441,632
Bonds, Series 2002, 5.000%, 6/01/21
-----------------------------------------------------------------------------------------------------------------------------------
9,100 Total Tax Obligation/General 9,832,285
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.1%
(21.3% OF TOTAL INVESTMENTS)
1,800 Catawba County, North Carolina, Certificates 6/14 at 100.00 Aa3 1,891,044
of Participation, Series 2004, 5.250%, 6/01/22 -
NPFG Insured
2,750 Charlotte, North Carolina, Certificates of 6/13 at 100.00 AA+ 2,782,560
Participation, Governmental Facilities Projects,
Series 2003G, 5.000%, 6/01/33
600 Charlotte, North Carolina, Certificates of 6/19 at 100.00 AA+ 610,902
Participation, Nascar Hall of Fame, Series 2009C,
5.000%, 6/01/39
575 Charlotte, North Carolina, Certificates of 6/18 at 100.00 AA+ 589,812
Participation, Transit Projects Phase 2, Series
2008A, 5.000%, 6/01/33
800 Craven County, North Carolina, Certificates of 6/17 at 100.00 AA- 829,352
Participation, Series 2007, 5.000%, 6/01/27 -
NPFG Insured 12/12 at 100.00 AA- 3,022,410
3,000 Dare County, North Carolina, Certificates of
Participation, Series 2002, 5.000%, 6/01/23 -
AMBAC Insured
200 Harnett County, North Carolina, Certificates of 6/19 at 100.00 AAA 210,508
Participation, Series 2009, 5.000%, 6/01/28 -
AGC Insured
500 Lee County, North Carolina, Certificates of 4/14 at 100.00 AAA 535,000
Participation, Public Schools and Community
College, Series 2004, 5.250%, 4/01/20 - FSA Insured
200 Mecklenburg County, North Carolina, Certificates No Opt. Call AA+ 214,422
of Participation, Series 2009A,
5.000%, 2/01/27
1,000 North Carolina, Certificates of Participation, 6/14 at 100.00 AA+ 1,067,480
Repair and Renovation Project, Series 2004B,
5.000%, 6/01/20
565 Raleigh, North Carolina, Certificates of 2/17 at 100.00 AA+ 598,081
Participation, Series 2007, 5.000%, 2/01/27
2,000 Rutherford County, North Carolina, Certificates 9/12 at 101.00 A- 2,086,380
of Participation, Series 2002, 5.000%,
9/01/21 - AMBAC Insured
1,000 Rutherford County, North Carolina, Certificates 12/17 at 100.00 AAA 1,053,900
of Participation, Series 2007, 5.000%,
12/01/27 - FSA Insured
1,200 Sampson County, North Carolina, Certificates of 6/17 at 100.00 AAA 1,214,220
Participation, Series 2006, 5.000%,
6/01/34 - FSA Insured (UB)
1,785 Union County, North Carolina, Certificates of 6/13 at 101.00 AA- 1,897,776
Participation, Series 2003, 5.000%, 6/01/20 -
AMBAC Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 500 Wilmington, North Carolina, Certificates of 6/18 at 100.00 AA $ 526,890
Participation, Series 2008A, 5.000%, 6/01/29
400 Wilson County, North Carolina, Certificates of 4/17 at 100.00 A2 412,356
Participation, School Facilities Project,
Series 2007, 5.000%, 4/01/25 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
18,875 Total Tax Obligation/Limited 19,543,093
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.3% (6.5% OF TOTAL INVESTMENTS)
400 North Carolina Turnpike Authority, Triangle 1/19 at 100.00 AAA 421,972
Expressway System Senior Lien Revenue Bonds,
Series 2009A, 5.750%, 1/01/39 - AGC Insured No Opt. Call AAA 460,840
2,195 North Carolina Turnpike Authority, Triangle
Expressway System Senior Lien Revenue Bonds,
Series 2009B, 0.000%, 1/01/35 - AGC Insured
Raleigh Durham Airport Authority, North Carolina,
Airport Revenue Bonds, Series 2001A:
1,780 5.250%, 11/01/15 - FGIC Insured 5/11 at 101.00 Aa3 1,862,200
3,100 5.000%, 11/01/20 - FGIC Insured 5/11 at 101.00 Aa3 3,176,570
-----------------------------------------------------------------------------------------------------------------------------------
7,475 Total Transportation 5,921,582
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.4% (10.9% OF TOTAL INVESTMENTS) (4)
500 Broad River Water Authority, North Carolina, 6/10 at 101.00 Baa1 (4) 517,570
Water System Revenue Bonds, Series 2000, 5.375%,
6/01/26 (Pre-refunded 6/01/10) - MBIA Insured 1/11 at 101.00 Aa3 (4) 180,528
170 Charlotte-Mecklenburg Hospital Authority,
North Carolina, Healthcare System Revenue Bonds,
Carolinas Healthcare System, Series 2001A, 5.000%,
1/15/31 (Pre-refunded 1/15/11)
200 Charlotte-Mecklenburg Hospital Authority, 1/15 at 100.00 AAA 233,586
North Carolina, Healthcare System Revenue Bonds, DBA
Carolinas Healthcare System, Series 2005A, 5.000%,
1/15/45 (Pre-refunded 1/15/15)
Forsyth County, North Carolina, Certificates of
Participation, Public Facilities and Equipment
Project, Series 2002:
1,325 5.125%, 1/01/16 (Pre-refunded 1/01/13) 1/13 at 101.00 AA+ (4) 1,499,397
770 5.250%, 1/01/19 (Pre-refunded 1/01/13) 1/13 at 101.00 AA+ (4) 874,266
North Carolina Capital Facilities Financing Agency,
Revenue Bonds, Duke University,
Series 2001A:
920 5.125%, 10/01/26 (Pre-refunded 10/01/11) 10/11 at 100.00 AAA 996,866
405 5.125%, 10/01/41 (Pre-refunded 10/01/11) 10/11 at 100.00 AAA 438,838
1,600 North Carolina Capital Facilities Financing Agency, 10/12 at 100.00 AAA 1,790,048
Revenue Bonds, Duke University, Series
2002A, 5.125%, 7/01/42 (Pre-refunded 10/01/12)
500 North Carolina Medical Care Commission, Health 10/11 at 101.00 AA (4) 547,575
System Revenue Bonds, Mission St. Joseph's
Health System, Series 2001, 5.250%, 10/01/31
(Pre-refunded 10/01/11)
500 North Carolina Medical Care Commission, 11/14 at 100.00 Aa3 (4) 582,790
Revenue Bonds, Northeast Medical Center, Series 2004,
5.000%, 11/01/24 (Pre-refunded 11/01/14)
610 University of North Carolina System, Pooled 10/12 at 100.00 N/R (4) 680,327
Revenue Refunding Bonds, Series 2002A, 5.000%,
4/01/27 (Pre-refunded 10/01/12) - AMBAC Insured
1,500 Winston-Salem, North Carolina, Water and Sewerage 6/12 at 100.00 AAA 1,654,530
System Revenue Bonds, Series 2002A, 5.000%,
6/01/19 (Pre-refunded 6/01/12)
-----------------------------------------------------------------------------------------------------------------------------------
9,000 Total U.S. Guaranteed 9,996,321
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 19.5% (12.2% OF TOTAL INVESTMENTS)
150 North Carolina Eastern Municipal Power Agency, 1/13 at 100.00 A- 158,339
Power System Revenue Bonds, Series 2003F,
5.500%, 1/01/16
500 North Carolina Eastern Municipal Power Agency, 1/16 at 100.00 A- 526,000
Power System Revenue Bonds, Series 2005,
5.250%, 1/01/20 - AMBAC Insured
1,400 North Carolina Eastern Municipal Power Agency, 1/19 at 100.00 A- 1,432,788
Power System Revenue Bonds, Series 2009B,
5.000%, 1/01/26
4,060 North Carolina Eastern Municipal Power Agency, 1/10 at 100.00 Baa1 4,065,400
Power System Revenue Refunding Bonds, Series
1993B, 5.500%, 1/01/17 - FGIC Insured
275 North Carolina Municipal Power Agency 1, Catawba 1/19 at 100.00 A 279,609
Electric Revenue Bonds, Refunding Series
2009A, 5.000%, 1/01/30
2,665 North Carolina Municipal Power Agency 1, Catawba 1/13 at 100.00 A2 2,922,066
Electric Revenue Bonds, Series 2003A, 5.250%,
1/01/15 - AMBAC Insured
Nuveen Investments 41
NII | Nuveen North Carolina Dividend Advantage Municipal Fund 3 (continued)
Portfolio of Investments
November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
$ 250 North Carolina Municipal Power Agency 1, Catawba 1/18 at 100.00 A $ 275,390
Electric Revenue Bonds, Series 2008A,
5.250%, 1/01/20
1,400 Wake County Industrial Facilities and Pollution 2/12 at 101.00 A1 1,500,128
Control Financing Authority, North Carolina,
Revenue Refunding Bonds, Carolina Power and
Light Company, Series 2002, 5.375%, 2/01/17
----------------------------------------------------------------------------------------------------------------------------------
10,700 Total Utilities 11,159,720
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 35.6% (22.3% of Total Investments)
2,000 Brunswick County, North Carolina, Enterprise System 4/18 at 100.00 AAA 2,067,340
Revenue Bonds, Series 2008A, 5.000%,
4/01/31 - FSA Insured
425 Cape Fear Public Utility Authority, North Carolina, 8/18 at 100.00 AA 459,251
Water & Sewer System Revenue Bonds, Series
2008, 5.000%, 8/01/28
Charlotte, North Carolina, Water and Sewerage
System Revenue Bonds, Series 2001:
750 5.125%, 6/01/26 6/11 at 101.00 AAA 779,183
1,780 5.125%, 6/01/26 - FGIC Insured 6/11 at 101.00 Aa1 1,820,175
300 Durham County, North Carolina, Enterprise System 6/13 at 100.00 AA 322,653
Revenue Bonds, Series 2002, 5.000%, 6/01/18 -
NPFG Insured
2,500 Kannapolis, North Carolina, Water and Sewerage 2/12 at 101.00 AAA 2,512,850
System Revenue Bonds, Series 2001B, 5.250%,
2/01/26 - FSA Insured (Alternative Minimum Tax)
50 Oak Island, North Carolina, Enterprise System 6/19 at 100.00 AAA 53,785
Revenue Bonds, Series 2009A, 6.000%, 6/01/34 -
AGC Insured
500 Onslow County, North Carolina, Combined Enterprise 6/14 at 100.00 A 518,745
System Revenue Bonds, Series 2004B, 5.000%,
6/01/23 - SYNCORA GTY Insured
1,000 Orange Water and Sewerage Authority, North 7/11 at 101.00 AA+ 1,029,169
Carolina, Water and Sewerage System Revenue Bonds,
Series 2001, 5.000%, 7/01/26
Raleigh, North Carolina, Combined Enterprise
System Revenue Bonds, Series 2006A:
4,950 5.000%, 3/01/31 (UB) 3/16 at 100.00 AAA 5,236,605
3,000 5.000%, 3/01/36 (UB) 3/16 at 100.00 AAA 3,121,380
5 Raleigh, North Carolina, Combined Enterprise System 3/16 at 100.00 AAA 5,607
Revenue Bonds, Series 2006A, Residuals
Series II-R-645-2, 13.879%, 3/01/36 (IF)
2,375 Winston-Salem, North Carolina, Water and Sewer System 6/17 at 100.00 AAA 2,459,859
Revenue Bonds, Series 2007A, 5.000%,
6/01/37 (UB)
----------------------------------------------------------------------------------------------------------------------------------
19,635 Total Water and Sewer 20,386,602
----------------------------------------------------------------------------------------------------------------------------------
$ 90,045 Total Investments (cost $89,473,566) - 160.0% 91,639,261
==============--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (13.1)% (7,480,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 1,108,662
-----------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.9)% (5) (28,000,000)
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 57,267,923
=================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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. Certain mortgage-backed securities may be subject to
periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 30.6%.
N/R Not rated.
(IF)Inverse floating rate investment.
(UB)Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
42 Nuveen Investments
| Statement of
| ASSETS & LIABILITIES
November 30, 2009 (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
---------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $76,551,883, $41,741,288 $79,104,513 $42,749,353 $91,966,730
and $90,349,942, respectively)
Cash 814,726 -- 1,122,198
Receivables:
Interest 1,368,852 719,306 1,500,320
Investments sold -- -- --
Other assets 17,131 5,345 11,706
---------------------------------------------------------------------------------------------------------------------------
Total assets 81,305,222 43,474,004 94,600,954
---------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 1,516 --
Floating rate obligations 1,190,000 660,000 1,395,000
Payables:
Common share dividends 194,596 114,237 256,242
Preferred share dividends 1,246 1,218 355
Accrued expenses:
Management fees 42,994 19,362 43,743
Other 33,579 22,566 38,420
---------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,462,415 818,899 1,733,760
---------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 25,700,000 13,900,000 29,300,000
---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $54,142,807 $28,755,105 $63,567,194
===========================================================================================================================
Common shares outstanding 3,805,652 1,969,350 4,554,659
===========================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.23 $ 14.60 $ 13.96
===========================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
---------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 38,057 $ 19,694 $ 45,547
Paid-in surplus 52,378,175 27,902,244 64,271,011
Undistributed (Over-distribution of) net investment income 497,246 251,394 491,990
Accumulated net realized gain (loss) from investments
and derivative transactions (1,323,301) (426,292) (2,858,142)
Net unrealized appreciation (depreciation) of investments 2,552,630 1,008,065 1,616,788
---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $54,142,807 $28,755,105 $63,567,194
===========================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
===========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 43
| Statement of
| Assets & Liabilities (continued)
November 30, 2009 (Unaudited)
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $135,995,898, $54,534,514,
$84,856,442 and $89,473,566, respectively) $139,853,974 $56,349,490 $87,547,988 $91,639,261
Cash 36,209 245,513 -- --
Receivables:
Interest 2,484,577 956,486 1,463,341 1,437,965
Investments sold 150,646 -- -- --
Other assets 24,085 8,453 10,549 9,704
---------------------------------------------------------------------------------------------------------------------------------
Total assets 142,549,491 57,559,942 89,021,878 93,086,930
---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 41,122 21,126
Floating rate obligations 5,195,000 7,160,000 4,805,000 7,480,000
Payables:
Common share dividends 344,154 148,843 234,083 239,231
Preferred share dividends 2,187 1,206 339 2,100
Accrued expenses:
Management fees 72,495 22,639 33,687 39,126
Other 51,045 23,986 35,575 37,424
---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,664,881 7,356,674 5,149,806 7,819,007
---------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 45,150,000 16,075,000 28,000,000 28,000,000
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 91,734,610 $34,128,268 $55,872,072 $57,267,923
=================================================================================================================================
Common shares outstanding 6,352,638 2,267,165 3,749,642 3,934,176
=================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.44 $ 15.05 $ 14.90 $ 14.56
=================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
---------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 63,526 $ 22,672 $ 37,496 $ 39,342
Paid-in surplus 87,841,126 32,151,628 53,194,277 55,514,206
Undistributed (Over-distribution of) net investment income 855,731 340,843 584,035 489,790
Accumulated net realized gain (loss) from investments
and derivative transactions (883,849) (201,851) (635,282) (941,110)
Net unrealized appreciation (depreciation) of investments 3,858,076 1,814,976 2,691,546 2,165,695
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 91,734,610 $34,128,268 $55,872,072 $57,267,923
=================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
=================================================================================================================================
See accompanying notes to financial statements.
44 Nuveen Investments
| Statement of
| OPERATIONS
Six Months Ended November 30, 2009
(Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $1,927,743 $1,051,554 $2,239,244
------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 261,073 139,118 302,198
Preferred shares - auction fees 19,544 10,552 22,311
Preferred shares - dividend disbursing agent fees 5,011 5,011 5,011
Shareholders' servicing agent fees and expenses 1,971 266 280
Interest expense on floating rate obligations 4,114 2,282 4,822
Custodian's fees and expenses 9,637 6,808 11,259
Trustees' fees and expenses 913 496 1,046
Professional fees 6,092 5,210 6,513
Shareholders' reports - printing and mailing expenses 11,801 7,141 11,611
Stock exchange listing fees 269 139 322
Investor relations expense 3,340 1,749 3,473
Other expenses 8,818 8,191 9,048
------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 332,583 186,963 377,894
Custodian fee credit (46) (16) (50)
Expense reimbursement -- (28,773) (62,377)
------------------------------------------------------------------------------------------------------------------------
Net expenses 332,537 158,174 315,467
------------------------------------------------------------------------------------------------------------------------
Net investment income 1,595,206 893,380 1,923,777
------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (84,153) (251,506) (703,130)
Change in net unrealized appreciation (depreciation) investments 1,692,390 1,314,955 3,513,115
------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 1,608,237 1,063,449 2,809,985
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (60,174) (32,791) (69,099)
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (60,174) (32,791) (69,099)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $3,143,269 $1,924,038 $4,664,663
========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 45
| Statement of
| Operations (continued)
Six Months Ended November 30, 2009
(Unaudited)
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $3,307,726 $1,320,855 $2,042,586 $2,110,134
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 438,964 162,793 266,770 271,197
Preferred shares - auction fees 33,983 12,176 21,058 21,058
Preferred shares - dividend disbursing agent fees 5,011 5,011 5,011 5,011
Shareholders' servicing agent fees and expenses 3,550 200 306 340
Interest expense on floating rate obligations 18,227 19,758 12,496 19,707
Custodian's fees and expenses 15,332 7,610 10,777 10,718
Trustees' fees and expenses 1,520 559 933 944
Professional fees 7,478 5,268 6,036 6,211
Shareholders' reports - printing and mailing expenses 19,543 8,361 12,654 13,116
Stock exchange listing fees 4,622 161 265 278
Investor relations expense 5,827 2,139 3,376 3,603
Other expenses 9,744 8,318 8,926 8,909
----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 563,801 232,354 348,608 361,092
Custodian fee credit (19) (16) (4) (21)
Expense reimbursement -- (25,301) (62,190) (56,026)
----------------------------------------------------------------------------------------------------------------------------------
Net expenses 563,782 207,037 286,414 305,045
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,743,944 1,113,818 1,756,172 1,805,089
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 266,142 31,129 1,691 15,083
Change in net unrealized appreciation (depreciation) of investments 3,431,863 994,500 1,903,972 1,833,325
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 3,698,005 1,025,629 1,905,663 1,848,408
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (104,586) (38,448) (65,176) (66,306)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (104,586) (38,448) (65,176) (66,306)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $6,337,363 $2,100,999 $3,596,659 $3,587,191
==================================================================================================================================
See accompanying notes to financial statements.
46 Nuveen Investments
| Statement of
| CHANGES IN NET ASSETS (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM INCOME (NPG) DIVIDEND ADVANTAGE (NZX) DIVIDEND ADVANTAGE 2 (NKG)
---------------------------- --------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/09 5/31/09 11/30/09 5/31/09 11/30/09 5/31/09
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,595,206 $ 3,224,577 $ 893,380 $ 1,792,334 $ 1,923,777 $ 3,958,372
Net realized gain (loss) from:
Investments (84,153) (1,167,344) (251,506) (336,360) (703,130) (1,562,683)
Forward swaps -- -- -- 153,554 -- --
Futures -- -- -- 53,752 -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 1,692,390 (875,690) 1,314,955 (865,813) 3,513,115 (1,763,298)
Forward swaps -- -- -- (139,708) -- --
Futures -- -- -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (60,174) (626,715) (32,791) (337,625) (69,099) (741,862)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,143,269 554,828 1,924,038 320,134 4,664,663 (109,471)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,227,323) (2,338,573) (691,242) (1,295,832) (1,516,701) (2,876,178)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,227,323) (2,338,573) (691,242) (1,295,832) (1,516,701) (2,876,178)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- -- -- -- 3,290
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- -- -- -- 3,290
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,915,946 (1,783,745) 1,232,796 (975,698) 3,147,962 (2,982,359)
Net assets applicable to Common
shares at the beginning of period 52,226,861 54,010,606 27,522,309 28,498,007 60,419,232 63,401,591
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $54,142,807 $52,226,861 $28,755,105 $27,522,309 $63,567,194 $60,419,232
==================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 497,246 $ 189,537 $ 251,394 $ 82,047 $ 491,990 $ 154,013
==================================================================================================================================
Nuveen Investments 47
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
NORTH CAROLINA NORTH CAROLINA
PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
------------------------------- ----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
11/30/09 5/31/09 11/30/09 5/31/09
-----------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,743,944 $ 5,380,918 $ 1,113,818 $ 2,154,026
Net realized gain (loss) from:
Investments 266,142 (897,516) 31,129 (137,599)
Forward swaps -- -- -- --
Futures -- 115,239 -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 3,431,863 (968,029) 994,500 (57,913)
Forward swaps -- -- -- --
Futures -- 5,056 -- --
Distributions to Preferred Shareholders:
From net investment income (104,586) (1,055,046) (38,448) (381,027)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 6,337,363 2,580,622 2,100,999 1,577,487
-----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,172,377) (3,849,214) (883,946) (1,587,813)
-----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,172,377) (3,849,214) (883,946) (1,587,813)
-----------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 11,486 -- 17,696 36,304
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 11,486 -- 17,696 36,304
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 4,176,472 (1,268,592) 1,234,749 25,978
Net assets applicable to Common
shares at the beginning of period 87,558,138 88,826,730 32,893,519 32,867,541
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $91,734,610 $87,558,138 $34,128,268 $32,893,519
=============================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 855,731 $ 388,750 $ 340,843 $ 149,419
=============================================================================================================================
48 Nuveen Investments
| Statement of
| Changes in Net Assets (Unaudited) (continued)
NORTH CAROLINA NORTH CAROLINA
DIVIDEND ADVANTAGE 2 (NNO) DIVIDEND ADVANTAGE 3 (NII)
------------------------------ -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
11/30/09 5/31/09 11/30/09 5/31/09
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,756,172 $ 3,430,965 $ 1,805,089 $ 3,522,734
Net realized gain (loss) from:
Investments 1,691 (604,487) 15,083 (59,376)
Forward swaps -- -- -- --
Futures -- 117,502 -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 1,903,972 (466,301) 1,833,325 (718,134)
Forward swaps -- -- -- --
Futures -- 5,332 -- --
Distributions to Preferred Shareholders:
From net investment income (65,176) (632,076) (66,306) (635,213)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,596,659 1,850,935 3,587,191 2,110,011
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,377,993) (2,437,267) (1,398,416) (2,611,502)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,377,993) (2,437,267) (1,398,416) (2,611,502)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- 14,200 11,874
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- 14,200 11,874
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,218,666 (586,332) 2,202,975 (489,617)
Net assets applicable to Common
shares at the beginning of period 53,653,406 54,239,738 55,064,948 55,554,565
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 55,872,072 $53,653,406 $57,267,923 $55,064,948
=================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 584,035 $ 271,032 $ 489,790 $ 149,423
=================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 49
| Statement of
| CASH FLOWS
Six Months Ended November 30, 2009
(Unaudited)
NORTH NORTH
CAROLINA CAROLINA
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 3
(NRB) (NII)
--------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 2,100,999 $ 3,587,191
Adjustments to reconcile the net increase (decrease) in net assets applicable to
Common shares from operations to net cash provided by (used in) operating activities:
Purchases of investments (1,147,554) (3,629,983)
Proceeds from sales and maturities of investments 1,205,646 3,025,906
Amortization (Accretion) of premiums and discounts, net 65,750 113,760
(Increase) Decrease in receivable for interest (20,757) (14,385)
(Increase) Decrease in other assets 3,762 2,262
Increase (Decrease) in payable for investments purchased (29,850) (179,100)
Increase (Decrease) in payable for Preferred share dividends (143) 372
Increase (Decrease) in accrued management fees (637) 4,638
Increase (Decrease) in accrued other liabilities 3,435 7,122
Net realized (gain) loss from investments (31,129) (15,083)
Change in net unrealized (appreciation) depreciation of investments (994,500) (1,833,325)
--------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 1,155,022 1,069,375
--------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in cash overdraft balance -- 21,126
Cash distributions paid to Common shareholders (852,750) (1,362,319)
Increase (Decrease) in Preferred shares, at liquidation value (925,000) --
--------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (1,777,750) (1,341,193)
--------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (622,728) (271,818)
Cash at the beginning of period 868,241 271,818
--------------------------------------------------------------------------------------------------------------------------------
Cash at the End of Period 245,513 --
================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest on floating rate obligations was $19,758 and $19,707 for
North Carolina Dividend Advantage (NRB) and North Carolina Dividend Advantage 3
(NII), respectively.
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions of $17,696 and $14,200 for North Carolina Dividend
Advantage (NRB) and North Carolina Dividend Advantage 3 (NII), respectively.
See accompanying notes to financial statements.
50 Nuveen Investments
| Notes to
| FINANCIAL STATEMENTS(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share stock
exchange symbols are Nuveen Georgia Premium Income Municipal Fund (NPG), Nuveen
Georgia Dividend Advantage Municipal Fund (NZX), Nuveen Georgia Dividend
Advantage Municipal Fund 2 (NKG), Nuveen North Carolina Premium Income Municipal
Fund (NNC), Nuveen North Carolina Dividend Advantage Municipal Fund (NRB),
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO) and Nuveen North
Carolina Dividend Advantage Municipal Fund 3 (NII) (collectively, the "Funds").
Common shares of Georgia Premium Income (NPG), Georgia Dividend Advantage (NZX),
Georgia Dividend Advantage 2 (NKG), North Carolina Dividend Advantage (NRB),
North Carolina Dividend Advantage 2 (NNO) and North Carolina Dividend Advantage
3 (NII) are traded on the New York Stock Exchange (NYSE) Amex while Common
shares of North Carolina Premium Income (NNC) are traded on the NYSE. The Funds
are registered under the Investment Company Act of 1940, as amended, as
closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a portfolio of municipal
obligations issued by state and local government authorities within a single
state or certain U.S. territories.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards CodificationTM (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment 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. Prices of forward
swap contracts are also provided by an independent pricing service approved by
each Fund's Board of Trustees. Futures contracts are valued using the closing
settlement price, or, in the absence of such a price, at the mean of the bid and
asked prices. When market price quotes are not readily available (which is
usually the case for municipal securities), the pricing service or, in the
absence of a pricing service for a particular investment or derivative
instrument, the Board of Trustees of the Fund, or its designee, may establish
fair value using a wide variety of market data including yields or prices of
investments of comparable quality, type of issue, coupon, maturity and rating,
market quotes or indications of value from security dealers, evaluations of
anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At November 30, 2009, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which
Nuveen Investments 51
| Notes to
| Financial Statements (Unaudited) (continued)
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 gains and
ordinary income distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, 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 US
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one Series. The dividend rate paid by the Funds on each Series is
determined every seven days, pursuant to a dutch auction process overseen by the
auction agent, and is payable at the end of each rate period. As of November 30,
2009, the number of Preferred shares outstanding for each Fund is as follows:
NORTH NORTH NORTH NORTH
GEORGIA GEORGIA GEORGIA CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPG) (NZX) (NKG) (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- 556 -- -- -- -- --
Series T -- -- -- -- 643 -- --
Series W -- -- -- -- -- -- 1,120
Series TH 1,028 -- -- 1,806 -- -- --
Series F -- -- 1,172 -- -- 1,120 --
==================================================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear,'' and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate'' applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of these Funds. However, one continuing implication of these
auction failures for Common shareholders is that the Funds' cost of leverage
will likely be higher at times than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future Common share
earnings may likely have been incrementally lower than they otherwise would have
been. As of November 30, 2009, the aggregate amount of outstanding Preferred
shares redeemed by each Fund is as follows:
52 Nuveen Investments
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $ 2,100,000 $ 1,100,000 $ 3,700,000
========================================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $ 1,650,000 $ 925,000 $ -- $ --
========================================================================================================================
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the six months ended November 30, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At November 30, 2009, the Funds were not invested in externally-deposited
Recourse Trusts.
NORTH NORTH NORTH NORTH
GEORGIA GEORGIA GEORGIA CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPG) (NZX) (NKG) (NNC) (NRB) (NNO) (NII)
---------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- $ -- $ -- $ --
=================================================================================================================================
Nuveen Investments 53
| Notes to
| Financial STATEMENTS (Unaudited) (continued)
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended November 30, 2009, were as follows:
NORTH NORTH NORTH NORTH
GEORGIA GEORGIA GEORGIA CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPG) (NZX) (NKG) (NNC) (NRB) (NNO) (NII)
-----------------------------------------------------------------------------------------------------------------------------------
Average floating rate
obligations outstanding $ 1,190,000 $ 660,000 $ 1,395,000 $ 5,195,000 $ 7,160,000 $ 4,805,000 $ 7,480,000
Average annual interest rate
and fees 0.69% 0.69% 0.69% 0.70% 0.55% 0.52% 0.53%
===================================================================================================================================
Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Each Fund's use of forward interest rate swap
transactions is intended to help the Fund manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Fund's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve each Fund's agreement with a
counterparty to pay, in the future, a fixed or variable rate payment in exchange
for the counterparty paying the Fund a variable or fixed rate payment, the
accruals for which would begin at a specified date in the future (the "effective
date"). The amount of the payment obligation is based on the notional amount of
the swap contract and the termination date of the swap (which is akin to a
bond's maturity). The value of the Fund's swap commitment would increase or
decrease based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's termination date increases or decreases.
Forward interest rate swap contracts are valued daily. The net amount recorded
on these transactions for each counterparty is recognized on the Statement of
Assets and Liabilities as "Unrealized appreciation or depreciation on forward
swaps" with the change during the fiscal period recognized on the Statement of
Operations as "Change in net unrealized appreciation (depreciation) of forward
swaps."
The Funds may terminate a swap contract prior to the effective date, at which
point a realized gain or loss is recognized. When a forward interest rate swap
is terminated, it ordinarily does not involve the delivery of securities or
other underlying assets or principal, but rather is settled in cash on a net
basis. Net realized gains and losses during the fiscal period are recognized on
the Statement of Operations as "Net realized gain (loss) from forward swaps."
Each Fund intends, but is not obligated, to terminate its forward interest rate
swaps before the effective date. Accordingly, the risk of loss with respect to
the swap counterparty on such transactions is limited to the credit risk
associated with a counterparty failing to honor its commitment to pay any
realized gain to the Fund upon termination. The Funds did not invest in forward
interest rate swap transactions during the six months ended November 30, 2009.
Futures Contracts
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives and is authorized to invest in futures contracts in
attempt to manage such risk. Upon entering into a futures contract, a Fund is
required to deposit with the broker an amount of cash or liquid securities equal
to a specified percentage of the contract amount. This is known as the "initial
margin." Cash held by the broker to cover initial margin requirements on open
futures contracts, if any, is recognized as "Deposits with brokers for open
futures contracts" on the Statement of Assets and Liabilities. Subsequent
payments ("variation margin") are made or received by a Fund each day, depending
on the daily fluctuation of the value of the contract. Variation margin is
recognized as a receivable or payable for "Variation margin on futures
contracts" on the Statement of Assets and Liabilities, when applicable.
During the period the futures contract is open, changes in the value of the
contract are recorded as an unrealized gain or loss by "marking-to-market" on a
daily basis to reflect the changes in market value of the contract and is
recognized as "Change in net unrealized appreciation (depreciation) of futures
contracts" on the Statement of Operations. When the contract is closed or
expired, a Fund records a realized gain or loss equal to the difference between
the value of the contract on the closing date and value of the contract when
originally entered into and is recognized as "Net realized gain (loss) from
futures contracts" on the Statement of Operations.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices. The Funds did not invest in futures
contracts during the six months ended November 30, 2009.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty
54 Nuveen Investments
credit risk, consist principally of cash due from counterparties on forward,
option and swap transactions. The extent of each Fund's exposure to counterparty
credit risk in respect to these financial assets approximates their carrying
value as recorded on the Statement of Assets and Liabilities. Futures contracts
expose a Fund to minimal counterparty credit risk as they are exchange traded
and the exchange's clearinghouse, which is counterparty to all exchange traded
futures, guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties Nuveen Asset Management (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments, Inc. ("Nuveen"), believes have the financial
resources to honor their obligations and by having the Adviser monitor the
financial stability of the counterparties. Additionally, counterparties may be
required to pledge collateral daily (based on the daily valuation of the
financial asset) on behalf of each Fund with a value approximately equal to the
amount of any unrealized gain above a pre-determined threshold. Reciprocally,
when each Fund has an unrealized loss, the Funds have instructed the custodian
to pledge assets of the Funds as collateral with a value approximately equal to
the amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the valuations
fluctuate, either up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties.
The Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US 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 applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. FAIR VALUE MEASUREMENTS
In determining the value of each Fund's investments various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.)
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of November 30, 2009:
GEORGIA PREMIUM INCOME (NPG) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 79,104,513 $ -- $ 79,104,513
==============================================================================================================
GEORGIA DIVIDEND ADVANTAGE (NZX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 42,749,353 $ -- $ 42,749,353
==============================================================================================================
GEORGIA DIVIDEND ADVANTAGE 2 (NKG) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 91,966,730 $ -- $ 91,966,730
==============================================================================================================
Nuveen Investments 55
| Notes to
| Financial Statements (Unaudited) (continued)
NORTH CAROLINA PREMIUM INCOME (NNC) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $139,853,974 $ -- $139,853,974
===========================================================================================================
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 56,349,490 $ -- $ 56,349,490
===========================================================================================================
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 87,547,988 $ -- $ 87,547,988
===========================================================================================================
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 91,639,261 $ -- $ 91,639,261
===========================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Funds record derivative instruments at fair value with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Funds' investments in derivatives may represent economic hedges, they are
considered to be non-hedge transactions for financial reporting purposes. The
Funds did not invest in derivative instruments during the six months ended
November 30, 2009.
4. FUND SHARES
Common Shares
Since the inception of the Funds' repurchase program, the Funds have not
repurchased any of their outstanding Common shares.
Transactions in Common shares were as follows:
GEORGIA GEORGIA DIVIDEND GEORGIA DIVIDEND
PREMIUM INCOME (NPG) ADVANTAGE (NZX) ADVANTAGE 2 (NKG)
------------------------ ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/09 5/31/09 11/30/09 5/31/09 11/30/09 5/31/09
---------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- -- -- -- 284
===========================================================================================================================
NORTH CAROLINA NORTH CAROLINA
PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
-------------------------- --------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/09 5/31/09 11/30/09 5/31/09
--------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 800 -- 1,187 2,524
================================================================================================================================
NORTH CAROLINA NORTH CAROLINA
DIVIDEND DIVIDEND
ADVANTAGE 2 (NNO) ADVANTAGE 3 (NII)
-------------------------- -------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/09 5/31/09 11/30/09 5/31/09
-------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- 986 892
===============================================================================================================================
56 Nuveen Investments
Preferred Shares
Transactions in Preferred shares were as follows:
GEORGIA PREMIUM INCOME (NPG)
----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/09 5/31/09
----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed for redemption:
Series TH 84 $ 2,100,000 -- $ --
=============================================================================================================================
GEORGIA DIVIDEND ADVANTAGE (NZX)
----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/09 5/31/09
----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed for redemption:
Series M 44 $ 1,100,000 -- $ --
=============================================================================================================================
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/09 5/31/09
----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed for redemption:
Series F 96 $ 2,400,000 52 $ 1,300,000
=============================================================================================================================
NORTH CAROLINA PREMIUM INCOME (NNC)
----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/09 5/31/09
----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed for redemption:
Series TH -- $ -- 66 $ 1,650,000
=============================================================================================================================
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
----------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/09 5/31/09
----------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed and/or noticed for redemption:
Series T 37 $ 925,000 -- $ --
=============================================================================================================================
There were no transactions in Preferred shares for North Carolina Dividend
Advantage 2 (NNO) and North Carolina Dividend Advantage 3 (NII) during the six
months ended November 30, 2009 and the fiscal year ended May 31, 2009.
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended November 30, 2009, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
-----------------------------------------------------------------------------------------------------------------------
Purchases $ 1,469,982 $ 808,836 $ 1,854,809
Sales and maturities 1,718,497 669,578 2,513,965
=======================================================================================================================
Nuveen Investments 57
| Notes to
| Financial Statements (Unaudited) (continued)
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
-------------------------------------------------------------------------------------------------------------------------
Purchases $ 3,567,750 $ 1,147,554 $ 2,308,163 $ 3,629,983
Sales and maturities 3,201,643 1,205,646 1,934,818 3,025,906
=========================================================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
At November 30, 2009, the cost of investments was as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
---------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 75,342,123 $ 41,078,200 $ 88,945,809
===========================================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
---------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 130,811,027 $ 47,352,336 $ 80,043,951 $ 81,991,929
===========================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2009, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
---------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 3,295,786 $ 1,454,079 $ 2,725,631
Depreciation (723,093) (442,579) (1,100,430)
---------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 2,572,693 $ 1,011,500 $ 1,625,201
=====================================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
-------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 4,812,005 $ 2,161,670 $ 3,229,064 $ 2,828,557
Depreciation (963,377) (324,640) (530,147) (660,876)
-------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 3,848,628 $ 1,837,030 $ 2,698,917 $ 2,167,681
=========================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at May 31, 2009, the Funds' last tax year end,
were as follows:
58 Nuveen Investments
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
---------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 373,900 $ 192,314 $ 394,104
Undistributed net ordinary income ** 40 16 22
Undistributed net long-term capital gains -- -- --
===============================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
---------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 732,599 $ 286,621 $ 487,931 $372,506
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- -- 11,059 --
===============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 1, 2009, paid on June 1, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
May 31, 2009, was designated for purposes of the dividends paid deduction as
follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 2,958,373 $ 1,633,407 $ 3,619,879
Distributions from net ordinary income** -- -- --
Distributions from net long-term capital gains -- -- --
==================================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 4,870,524 $ 1,960,838 $ 3,050,360 $ 3,242,962
Distributions from net ordinary income** -- -- -- --
Distributions from net long-term capital gains -- -- -- --
==================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2009, the Funds' last tax year end, the following 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:
GEORGIA GEORGIA GEORGIA NORTH CAROLINA NORTH CAROLINA NORTH CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 3
(NPG) (NZX) (NKG) (NNC) (NRB) (NII)
-------------------------------------------------------------------------------------------------------------------------------
Expiration:
May 31, 2012 $ -- $ -- $ -- $ -- $ -- $ 119,458
May 31, 2013 -- -- 102,004 -- -- 36,008
May 31, 2014 -- 28,170 287,093 -- -- 474,910
May 31, 2015 -- 17,587 -- -- -- --
May 31, 2016 -- -- -- -- 38,847 115,010
May 31, 2017 903,290 129,031 1,087,212 356,246 3,765 42,115
-------------------------------------------------------------------------------------------------------------------------------
Total $ 903,290 $ 174,788 $ 1,476,309 $ 356,246 $ 42,612 $ 787,501
===============================================================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2008 through May 31, 2009, the Funds' last tax year
end, ("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the current
fiscal year:
Nuveen Investments 59
| Notes to
| Financial Statements (Unaudited) (continued)
GEORGIA GEORGIA NORTH CAROLINA NORTH CAROLINA NORTH CAROLINA NORTH CAROLINA
PREMIUM DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPG) (NKG) (NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $ 335,866 $ 678,708 $ 776,834 $ 205,361 $ 648,031 $ 168,694
==================================================================================================================================
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex- wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
GEORGIA PREMIUM INCOME (NPG)
NORTH CAROLINA PREMIUM INCOME (NNC)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
-----------------------------------------------------------------------------------------------------------
For the first $125 million . .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
===========================================================================================================
GEORGIA DIVIDEND ADVANTAGE (NZX)
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
-----------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
===========================================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund net assets managed as stated in the following
table. As of November 30, 2009, the complex-level fee rate was .1896%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
----------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
==========================================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all
Nuveen funds, with such daily managed net assets defined separately for
each fund in its management agreement, but excluding assets attributable
to investments in other Nuveen funds. For the complex-level and
fund-level fee
60 Nuveen Investments
components, daily managed net assets includes assets managed by the Adviser
that are attributable to each fund's use of financial leverage. For these
purposes, financial leverage includes the funds use of preferred stock and
borrowings and investments in the residual interest certificates (also called
inverse floating rate securities) in tender option bond (TOB) trusts,
including the portion of assets held by the TOB trust that has been
effectively financed by the trust's issuance of floating rate securities,
subject to an agreement by the Adviser to limit the amount of such assets for
determining managed net assets in certain circumstances.
The management 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 its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Trustees has
adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
For the first ten years of Georgia Dividend Advantage's (NZX) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets, for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
==============================================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Georgia Dividend Advantage (NZX) for any
portion of its fees and expenses beyond September 30, 2011.
For the first eight years of Georgia Dividend Advantage 2's (NKG) and North
Carolina Dividend Advantage 3's (NII) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets, for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
-------------------------------------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
=============================================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Georgia Dividend Advantage 2 (NKG) and
North Carolina Dividend Advantage 3 (NII) for any portion of their fees and
expenses beyond September 30, 2010.
For the first ten years of North Carolina Dividend Advantage's (NRB) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets, for fees and expenses in the amounts and for the time periods set
forth below:
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
-------------------------------------------------------------------------------------------------------------
2001* .30% 2007 25%
2002 .30 2008 20
2003 .30 2009 15
2004 .30 2010 10
2005 .30 2011 05
2006 .30
=============================================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse North Carolina Dividend Advantage (NRB)
for any portion of its fees and expenses beyond January 31, 2011.
For the first ten years of North Carolina Dividend Advantage 2's (NNO)
operations, the Adviser has agreed to reimburse the Fund, as a percentage of
average daily net assets, for fees and expenses in the amounts and for the time
periods set forth below:
Nuveen Investments 61
| Notes to
| Financial Statements (Unaudited) (continued)
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
-------------------------------------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
=============================================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse North Carolina Dividend Advantage 2
(NNO) for any portion of its fees and expenses beyond November 30, 2011.
8. NEW ACCOUNTING STANDARDS
Accounting for Transfers of Financial Assets
During June 2009, the FASB issued changes to the authoritative guidance under
GAAP on accounting for transfers of financial assets. The objective this
guidance is to improve the relevance, representational faithfulness, and
comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows; and
transferor's continuing involvement, if any, in transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 31, 2009, to shareholders of
record on December 15, 2009, as follows:
NORTH NORTH NORTH NORTH
GEORGIA GEORGIA GEORGIA CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPG) (NZX) (NKG) (NNC) (NRB) (NNO) (NII)
------------------------------------------------------------------------------------------------------------------------------
Dividend per share $.0590 $.0640 $.0600 $.0620 $.0690 $.0680 $.0660
==============================================================================================================================
At the same time, North Carolina Premium Income (NNC) declared a long-term
capital gain distribution of $.0023 per Common share.
MuniFund Term Preferred Shares
As discussed in the Portfolio Manager's Comments section, subsequent to the
reporting period, North Carolina Premium Income (NNC) successfully completed the
issuance of $23.3 million of 2.65%, Series 2015 MuniFund Term Preferred. The
newly-issued MuniFund Term Preferred shares trade on the New York Stock Exchange
(NYSE) under the symbol "NNC Pr C".
Subsequent to the reporting period, Georgia Premium Income (NPG), Georgia
Dividend Advantage (NZX), Georgia Dividend Advantage 2 (NKG), North Carolina
Dividend Advantage (NRB), North Carolina Dividend Advantage 2 (NNO) and North
Carolina Dividend Advantage 3 (NII) filed with the SEC a registration statement
seeking to register MuniFund Term Preferred shares. These registrations
statements, declared effective by the SEC, enable the Funds to issue to the
public shares of MuniFund Term Preferred to refinance all or a portion of each
Fund's auction rate preferred shares. The issuance of MuniFund Term Preferred
shares by these Funds is subject to market conditions. There is no assurance
that these MuniFund Term Preferred shares will be issued.
Evaluation Date
In May 2009, the FASB issued changes to authoritative guidance under GAAP for
subsequent events. This guidance requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. This guidance is intended to establish general standards of accounting
and for disclosure of events that occur after the balance sheet date but
before financial statements are issued or are available to be issued. This
guidance requires the disclosure of the date through which an entity has
evaluated subsequent events and the basis for that date - that is, whether
that date represents the date the financial statements were issued or were
available to be issued. This guidance is effective for interim and annual
periods ending after June 15, 2009. The Funds have performed an evaluation of
subsequent events through January 25, 2010, which is the date the financial
statements were issued.
62 Nuveen Investments
| Financial
| HIGHLIGHTS(Unaudited)
Nuveen Investments 63
| Financial
| Highlights(Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------------------------------------- ----------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM NET
BEGINNING INVESTMENT CAPITAL INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS HOLDERS TOTAL HOLDERS HOLDERS TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA PREMIUM INCOME (NPG)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $13.72 $.42 $ .43 $(.02) $ -- $ .83 $(.32) $ -- $(.32)
2009 14.19 .85 (.55) (.16) -- .14 (.61) -- (.61)
2008 14.55 .84 (.30) (.24) (.01) .29 (.61) (.04) (.65)
2007 14.55 .86 .04 (.23) -- .67 (.67) -- (.67)
2006 15.19 .87 (.48) (.17) (.01) .21 (.78) (.07) (.85)
2005 14.42 .92 .84 (.09) -- 1.67 (.90) -- (.90)
GEORGIA DIVIDEND ADVANTAGE (NZX)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 13.98 .45 .54 (.02) -- .97 (.35) -- (.35)
2009 14.47 .91 (.57) (.17) -- .17 (.66) -- (.66)
2008 14.65 .90 (.16) (.26) -- .48 (.66) -- (.66)
2007 14.71 .92 .02 (.25) -- .69 (.75) -- (.75)
2006 15.30 .94 (.47) (.19) -- .28 (.87) -- (.87)
2005 14.47 .96 .85 (.10) -- 1.71 (.88) (.01) (.89)
===================================================================================================================================
OFFERING PREFERRED SHARES AT END OF PERIOD
COSTS AND ENDING ------------------------------------------
PREFERRED COMMON AGGREGATE LIQUIDATION
SHARE SHARE ENDING AMOUNT AND MARKET ASSET
UNDERWRITING NET ASSET MARKET OUTSTANDING VALUE COVERAGE
DISCOUNTS VALUE VALUE (000) PER SHARE PER SHARE
-------------------------------------------------------------------------------------------------------------------
GEORGIA PREMIUM INCOME (NPG)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31: $ -- $14.23 $12.93 $25,700 $25,000 $77,668
2010(b) -- 13.72 12.10 27,800 25,000 71,967
2009 -- 14.19 13.15 27,800 25,000 73,571
2008 -- 14.55 14.12 27,800 25,000 74,784
2007 -- 14.55 15.16 27,800 25,000 74,747
2006 -- 15.19 16.70 27,800 25,000 76,877
2005
GEORGIA DIVIDEND ADVANTAGE (NZX)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) -- 14.60 14.52 13,900 25,000 76,718
2009 -- 13.98 13.46 15,000 25,000 70,871
2008 -- 14.47 13.47 15,000 25,000 72,497
2007 -- 14.65 16.00 15,000 25,000 73,052
2006 -- 14.71 15.50 15,000 25,000 73,187
2005 .01 15.30 15.89 15,000 25,000 75,012
===================================================================================================================
64 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
--------------------- --------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++
----------------------------------------------------------------------------------------------------------------------------
GEORGIA PREMIUM INCOME (NPG)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 9.53% 6.12% $54,143 1.25%*** 1.23%*** 5.98%***
2009 (2.86) 1.33 52,227 1.44 1.33 6.44
2008 (2.17) 2.06 54,011 1.25 1.25 5.86
2007 (2.55) 4.62 55,359 1.25 1.25 5.84
2006 (4.12) 1.42 55,318 1.25 1.25 5.87
2005 15.46 11.88 57,687 1.25 1.25 6.15
GEORGIA DIVIDEND ADVANTAGE (NZX)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 10.65 7.01 28,755 1.32*** 1.31*** 6.13***
2009 5.67 1.46 27,522 1.53 1.42 6.50
2008 (11.73) 3.33 28,498 1.32 1.32 5.86
2007 8.10 4.75 28,831 1.35 1.35 5.74
2006 2.91 1.87 28,912 1.31 1.31 5.82
2005 20.74 12.10 30,007 1.27 1.27 5.93
============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
------------------------------------------------------------------------------------------------
GEORGIA PREMIUM INCOME (NPG)
------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.25%*** 1.23%*** 5.98%*** 2%
2009 1.44 1.33 6.44 12
2008 1.25 1.25 5.86 31
2007 1.25 1.25 5.84 4
2006 1.25 1.25 5.87 15
2005 1.25 1.25 6.15 18
GEORGIA DIVIDEND ADVANTAGE (NZX)
------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.12*** 1.10*** 6.33*** 2
2009 1.27 1.16 6.76 8
2008 .99 .99 6.19 22
2007 .94 .94 6.14 11
2006 .86 .86 6.27 5
2005 .82 .82 6.37 12
================================================================================================
* Total Return Based on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income
and reinvested capital gains distributions, if any, at the average price
paid per share at the time of reinvestment. The last dividend declared in
the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending market price.
The actual reinvestment for the last dividend declared in the period may
take place over several days, and in some instances may not be based on
the market price, so the actual reinvestment price may be different from
the price used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the
combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. The last dividend declared in
the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset
value. The actual reinvest price for the last dividend declared in the
period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
** After expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on the
Fund's net cash on deposit with the custodian bank, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
(b) For the six months ended November 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 65
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
---------------------------------------------------------------- -------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM NET
BEGINNING INVESTMENT CAPITAL INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS HOLDERS TOTAL HOLDERS HOLDERS TOTAL
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $13.27 $.42 $ .62 $(.02) $ -- $1.02 $(.33) $ -- $(.33)
2009 13.92 .87 (.73) (.16) -- (.02) (.63) -- (.63)
2008 14.44 .88 (.50) (.26) -- .12 (.64) -- (.64)
2007 14.25 .89 .17 (.24) -- .82 (.63) -- (.63)
2006 14.71 .88 (.45) (.19) -- .24 (.70) -- (.70)
2005 13.79 .87 .94 (.11) -- 1.70 (.78) -- (.78)
===================================================================================================================================
OFFERING PREFERRED SHARES AT END OF PERIOD
COSTS AND ENDING --------------------------------------
PREFERRED COMMON AGGREGATE LIQUIDATION
SHARE SHARE ENDING AMOUNT AND MARKET ASSET
UNDERWRITING NET ASSET MARKET OUTSTANDING VALUE COVERAGE
DISCOUNTS VALUE VALUE (000) PER SHARE PER SHARE
--------------------------------------------------------------------------------------------------------------
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
--------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $ -- $13.96 $12.75 $29,300 $25,000 $79,238
2009 -- 13.27 11.88 31,700 25,000 72,649
2008 -- 13.92 13.18 33,000 25,000 73,032
2007 -- 14.44 14.50 33,000 25,000 74,825
2006 -- 14.25 13.26 33,000 25,000 74,168
2005 -- 14.71 14.18 33,000 25,000 75,738
==============================================================================================================
66 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
------------------- --------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++
--------------------------------------------------------------------------------------------------------------------------
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 10.19% 7.78% $63,567 1.22%*** 1.20%*** 5.99%***
2009 (4.77) .20 60,419 1.42 1.32 6.54
2008 (4.64) .89 63,402 1.23 1.23 5.82
2007 14.40 5.79 65,770 1.24 1.24 5.63
2006 (1.61) 1.68 64,901 1.24 1.24 5.63
2005 13.61 12.61 66,974 1.23 1.23 5.58
==========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
--------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
----------------------------------------------------------------------------------------------
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
----------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.01%*** 1.00%*** 6.19%*** 2%
2009 1.13 1.02 6.84 13
2008 .83 .83 6.22 23
2007 .75 .75 6.11 7
2006 .76 .76 6.11 7
2005 .75 .75 6.06 5
==============================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on the
Fund's net cash on deposit with the custodian bank, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
(b) For the six months ended November 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 67
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS HOLDERS TOTAL
---------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $13.78 $.43 $ .59 $(.02) $ -- $1.00
2009 13.98 .85 (.27) (.17) -- .41
2008 14.36 .84 (.35) (.23) (.01) .25
2007 14.34 .85 .07 (.23) --**** .69
2006 15.16 .88 (.57) (.16) (.02) .13
2005 14.55 .91 .70 (.11) -- 1.50
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 14.52 .49 .45 (.02) -- .92
2009 14.52 .95 (.08) (.17) -- .70
2008 14.78 .93 (.22) (.24) (.01) .46
2007 14.87 .93 .03 (.22) (.01) .73
2006 15.46 .94 (.48) (.17) -- .29
2005 14.72 .97 .78 (.09) -- 1.66
===========================================================================================================================
LESS DISTRIBUTIONS
---------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $(.34) $ -- $(.34) $ -- $14.44 $15.08
2009 (.61) -- (.61) -- 13.78 12.60
2008 (.59) (.04) (.63) -- 13.98 13.30
2007 (.66) (.01) (.67) -- 14.36 14.30
2006 (.79) (.16) (.95) -- 14.34 15.09
2005 (.89) -- (.89) -- 15.16 17.20
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) (.39) -- (.39) -- 15.05 16.00
2009 (.70) -- (.70) -- 14.52 14.26
2008 (.69) (.03) (.72) -- 14.52 15.28
2007 (.77) (.05) (.82) -- 14.78 16.44
2006 (.88) -- (.88) -- 14.87 17.70
2005 (.92) -- (.92) -- 15.46 17.25
==================================================================================================================
PREFERRED SHARES AT END OF PERIOD
--------------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
----------------------------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
----------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $45,150 $25,000 $75,794
2009 46,800 25,000 71,773
2008 46,800 25,000 72,450
2007 46,800 25,000 73,713
2006 46,800 25,000 73,629
2005 46,800 25,000 76,286
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
----------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 16,075 25,000 78,077
2009 17,000 25,000 73,373
2008 17,000 25,000 73,335
2007 17,000 25,000 74,130
2006 17,000 25,000 74,319
2005 17,000 25,000 76,205
==============================================================================================
68 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
------------------- -------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++
-----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 22.62% 7.34% $91,735 1.26%*** 1.21%*** 6.11%***
2009 (.44) 3.22 87,558 1.39 1.32 6.43
2008 (2.52) 1.76 88,827 1.39 1.25 5.94
2007 (.78) 4.84 91,191 1.27 1.24 5.82
2006 (6.84) .87 91,033 1.25 1.25 5.98
2005 17.79 10.52 96,008 1.23 1.23 6.09
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 15.16 6.40 34,128 1.38*** 1.27*** 6.48***
2009 (1.82) 5.17 32,894 1.71 1.37 6.63
2008 (2.28) 3.26 32,868 1.91 1.29 6.07
2007 (2.26) 4.98 33,409 1.68 1.29 5.82
2006 8.03 1.93 33,537 1.29 1.29 5.79
2005 21.19 11.53 34,820 1.27 1.27 5.90
===================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
------------------------------------------------------------------------------------------------------------
NORTH CAROLINA PREMIUM INCOME (NNC)
------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.26%*** 1.21%*** 6.11%*** 2%
2009 1.39 1.32 6.43 4
2008 1.39 1.25 5.94 12
2007 1.27 1.24 5.82 13
2006 1.25 1.25 5.98 16
2005 1.23 1.23 6.09 19
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.23*** 1.12*** 6.63*** 2
2009 1.51 1.16 6.83 7
2008 1.63 1.01 6.35 6
2007 1.34 .95 6.17 15
2006 .86 .86 6.22 4
2005 .82 .82 6.34 11
============================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending market price.
The actual reinvestment for the last dividend declared in the period may
take place over several days, and in some instances may not be based on
the market price, so the actual reinvestment price may be different from
the price used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the
combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. The last dividend declared in
the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset
value. The actual reinvest price for the last dividend declared in the
period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
** After expense reimbursement from the Adviser, where applicable.
Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, where
applicable.
*** Annualized.
**** Rounds to less than $.01 per share. The amounts shown are based
on Common share equivalents. Ratios do not reflect the effect of
dividend payments to Preferred shareholders; Net Investment Income
ratios reflect income earned and expenses incurred on assets
attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other
things, the interest expense deemed to have been paid by the Fund on
the floating rate certificates issued by the special purpose trusts
for the self-deposited inverse floaters held by the Fund, as
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 69
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
--------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS HOLDERS TOTAL
---------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $14.31 $.47 $ .51 $(.02) $ -- $ .96
2009 14.47 .92 (.26) (.17) -- .49
2008 14.76 .91 (.24) (.25) (.02) .40
2007 14.75 .91 .10 (.23) (.01) .77
2006 15.55 .92 (.60) (.17) (.01) .14
2005 14.81 .94 .83 (.10) -- 1.67
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 14.00 .46 .48 (.02) -- .92
2009 14.13 .90 (.21) (.16) -- .53
2008 14.38 .88 (.25) (.23) -- .40
2007 14.26 .89 .11 (.23) -- .77
2006 14.78 .88 (.50) (.18) -- .20
2005 13.89 .89 .91 (.11) -- 1.69
---------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS
-----------------------------------
NET OFFERING
INVESTMENT CAPITAL COSTS AND ENDING
INCOME TO GAINS TO PREFERRED COMMON
COMMON COMMON SHARE SHARE ENDING
SHARE- SHARE- UNDERWRITING NET ASSET MARKET
HOLDERS HOLDERS TOTAL DISCOUNTS VALUE VALUE
--------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $(.37) $ -- $(.37) $ -- $14.90 $15.47
2009 (.65) -- (.65) -- 14.31 13.60
2008 (.63) (.06) (.69) -- 14.47 13.66
2007 (.71) (.05) (.76) -- 14.76 15.50
2006 (.82) (.12) (.94) -- 14.75 15.28
2005 (.86) (.07) (.93) -- 15.55 16.25
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) (.36) -- (.36) -- 14.56 15.42
2009 (.66) -- (.66) -- 14.00 13.60
2008 (.65) -- (.65) -- 14.13 14.12
2007 (.65) -- (.65) -- 14.38 14.64
2006 (.72) -- (.72) -- 14.26 14.42
2005 (.80) -- (.80) -- 14.78 15.40
==========================================================================================================================
PREFERRED SHARES AT END OF PERIOD
----------------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
-------------------------------------------------------------------------------------------------
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
-------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $28,000 $25,000 $74,886
2009 28,000 25,000 72,905
2008 28,000 25,000 73,428
2007 28,000 25,000 74,418
2006 28,000 25,000 74,332
2005 28,000 25,000 76,924
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
-------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 28,000 25,000 76,132
2009 28,000 25,000 74,165
2008 28,000 25,000 74,602
2007 28,000 25,000 75,457
2006 28,000 25,000 75,044
2005 28,000 25,000 76,817
=================================================================================================
70 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
---------------------- -------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES
MARKET ASSET TO COMMON INCLUDING EXCLUDING
VALUE* VALUE* SHARES (000) INTEREST++(A) INTEREST++
------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 16.66% 6.76% $55,872 1.27%*** 1.23%***
2009 4.72 3.69 53,653 1.48 1.32
2008 (7.33) 2.83 54,240 1.54 1.25
2007 6.64 5.24 55,349 1.39 1.24
2006 (.18) .97 55,251 1.24 1.24
2005 16.46 11.56 58,155 1.23 1.23
North Carolina Dividend Advantage 3 (NII)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 16.21 6.60 57,268 1.28*** 1.21***
2009 1.43 4.11 55,065 1.55 1.31
2008 1.12 2.90 55,555 1.68 1.24
2007 6.23 5.48 56,511 1.49 1.23
2006 (1.59) 1.41 56,049 1.23 1.23
2005 18.78 12.39 58,035 1.24 1.24
==============================================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES
BEFORE REIMBURSEMENT AFTER REIMBURSEMENT**
------------------------------ ---------------------------------------------------
NET EXPENSES EXPENSES NET PORTFOLIO
INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER
INCOME++ INTEREST++(a) INTEREST++ INCOME++ RATE
------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 6.17%*** 1.04%*** 1.00%*** 6.40%*** 2
2009 6.39 1.21 1.05 6.66 4
2008 5.87 1.21 .91 6.20 8
2007 5.68 .97 .83 6.09 9
2006 5.62 .79 .79 6.07 9
2005 5.64 .78 .78 6.09 26
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 6.22*** 1.08*** 1.01*** 6.42*** 3
2009 6.39 1.26 1.02 6.68 4
2008 5.79 1.28 .84 6.19 15
2007 5.62 1.02 .76 6.09 12
2006 5.58 .76 .76 6.06 2
2005 5.65 .77 .77 6.13 8
==============================================================================================================================
* Total Return Based on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income
and reinvested capital gains distributions, if any, at the average
price paid per share at the time of reinvestment. The last dividend
declared in the period, which is typically paid on the first business
day of the following month, is assumed to be reinvested at the ending
market price. The actual reinvestment for the last dividend declared in
the period may take place over several days, and in some instances may
not be based on the market price, so the actual reinvestment price may
be different from the price used in the calculation. Total returns are
not annualized.
Total Return Based on Common Share Net Asset Value is the
combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. The last dividend declared in
the period, which is typically paid on the first business day of the
following month, is assumed to be reinvested at the ending net asset
value. The actual reinvest price for the last dividend declared in the
period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
** After expense reimbursement from the Adviser, where applicable.
Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, where
applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things,
the interest expense deemed to have been paid by the Fund on the
floating rate certificates issued by the special purpose trusts for the
self-deposited inverse floaters held by the Fund, as described in
Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2009.
Nuveen Investments 71
REINVEST AUTOMATICALLY
EASILY AND CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
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. Just like divi- dends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
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.
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
greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. 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 the shares may increase
before purchases are completed, the average purchase price
72 Nuveen Investments
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.
FLEXIBLE
You may 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 commis- sions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. 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 partici- pate 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.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Nuveen Investments 73
GLOSSARY OF TERMS
USED IN THIS REPORT
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed," with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including
change in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to
maturity of the bonds in a Fund's portfolio, computed by weighting
each bond's time to maturity (the date the security comes due) by the
market value of the security. This figure does not account for the
likelihood of prepayments or the exercise of call provisions unless an
escrow account has been established to redeem the bond before maturity.
The market value weighting for an investment in an inverse floating rate
security is the value of the portfolio's residual interest in the inverse
floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
o DURATION: Duration is a measure of the expected period over which a bond's
principal and interest will be paid, and consequently is a measure
of the sensitivity of a bond's or bond Fund's value to changes when market
interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
74 Nuveen Investments
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with
a fixed interest rate, into a special purpose trust created by a
broker-dealer. This trust, in turn, (a) issues floating rate certificates
typically paying short-term tax-exempt interest rates to third parties in
amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate
(sometimes referred to as an "inverse floater") to an investor (such as a
Fund) interested in gaining investment exposure to a long-term municipal
bond. The income received by the holder of the inverse floater varies
inversely with the short-term rate paid to the floating rate certificates'
holders, and in most circumstances the holder of the inverse floater bears
substantially all of the underlying bond's downside investment risk. The
holder of the inverse floater typi- cally also benefits disproportionately
from any potential appreciation of the underlying bond's value. Hence, an
inverse floater essentially represents an investment in the underlying
bond on a leveraged basis.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred
shares issued in order to leverage the Fund) from its total assets and
then dividing the remainder by the number of common shares outstanding.
Fund NAVs are calculated at the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal
bond investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity.The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 75
Notes
76 Nuveen Investments
Other Useful Information
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed/noticed for redemption shares of their common and/or preferred
stock as shown in the accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
NPG -- 84
NZX -- 44
NKG -- 96
NNC -- --
NRB -- 37
NNO -- --
NII -- --
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 77
NUVEEN INVESTMENTS:
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $141 billion of
assets on September 30, 2009.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC It's not what you earn,
333 West Wacker Drive it's what you keep.(R)
Chicago, IL 60606
www.nuveen.com
ESA-C-1109D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors or Trustees
implemented after the registrant last provided disclosure in response to
this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
Ex-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen North Carolina Dividend Advantage Municipal Fund 2
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: February 2, 2010
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: February 2, 2010
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By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 2, 2010
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