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 811-21152
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Nuveen Georgia Dividend Advantage Municipal Fund 2
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(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)
Jessica R. Droeger
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, 2003
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Date of reporting period: November 30, 2003
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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.
SEMIANNUAL REPORT November 30, 2003
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
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
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
--------------------------------------------------------------------------------
SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
--------------------------------------------------------------------------------
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM and follow the simple instructions, using
the address sheet that accompanied this report as a guide.
2 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen and follow the simple instructions.
3 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: WE THINK YOUR NUVEEN FUND CAN BE AN IMPORTANT BUILDING BLOCK IN A
PORTFOLIO DESIGNED TO PERFORM WELL THROUGH A VARIETY OF MARKET CONDITIONS.
Dear
SHAREHOLDER
I am very pleased to report that for the six-months ended November 30, 2003,
your Nuveen Fund continued to provide you with attractive monthly tax-free
income.
Your Nuveen Fund is managed with a value investing strategy that puts an
emphasis on finding securities that we think are undervalued or underrated. We
believe that there are always some municipal bonds that the market is not
properly valuing, and that by using a consistent, research-oriented management
approach we have the opportunity to find them for your Fund.
In this low-rate environment, many have begun to wonder whether interest rates
will soon start to rise, and whether that possibility should cause them to
adjust their holdings of fixed-income investments. We believe that by
constructing a carefully balanced portfolio with the help of a trusted
investment professional you may be able to reduce your overall investment risk
and give yourself a better chance to meet your financial goals. We think that
municipal bond investments like your Nuveen Fund can be important building
blocks in a portfolio designed to perform well through a variety of market
conditions.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
January 15, 2004
1
Nuveen Georgia and North Carolina Municipal Closed-End Exchange-Traded Funds
(NPG, NZX, NKG, NNC, NRB, NNO, NII)
Portfolio Manager's
COMMENTS
Portfolio manager Dan Solender discusses national and state economic and market
conditions, key investment strategies, and the recent performance of these
Georgia and North Carolina Funds. With 16 years of investment experience,
including seven at Nuveen, Dan assumed portfolio management responsibility for
the seven Funds in November 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2003?
Over the past six month period, the two greatest influences on the general
economy and the municipal market continued to be historically low interest rates
and the overall pace of economic improvement. In June 2003, the Federal Reserve
reduced the fed funds rate to 1.0%, the lowest level since 1958. The Fed's
accommodative monetary policy, coupled with Washington's tax relief measures and
increased spending for defense and national security, helped to fuel a jump of
8.2% (annualized) in the third-quarter gross domestic product (GDP), up from
3.3% in the second quarter. At the same time, inflation remained under control.
In the municipal market, the slow rate of economic recovery over the majority of
this period, low interest rates, and lack of inflationary pressures helped many
municipal bonds perform well. During the summer of 2003, however,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets, including the municipal market, for the six-month period ended November
30, 2003.
During the first 11 months of 2003, municipal supply nationally remained on a
record-setting pace, with $347.1 billion in new bonds, up 5% over the same
period in 2002.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN GEORGIA AND NORTH CAROLINA?
Georgia's economy has begun to show signs of recovery. In particular, the
tourism and business services sectors showed signs of growth. However, Georgia's
manufacturing sector, which continued to rely heavily on textiles and paper
products, remained weak. In November 2003, unemployment in Georgia reached its
lowest level (4.2%) since 2001, down from 5.3% in November 2002 and well below
the current national average of 5.9%.
During the first 11 months of 2003, Georgia issued $5.1 billion in new municipal
bonds, down more than 14% from the first 11 months of 2002. Over the past 12
months, Georgia's general obligation debt maintained its rating of Aaa/AAA from
Moody's and S&P, respectively, with a stable outlook.
North Carolina's economy also improved, but downside risks remain. Business
services produced positive growth. However, North Carolina's manufacturing base
continued to shrink, with old-line industries such as textiles, furniture, and
tobacco suffering as companies shift production overseas. As of November 2003,
unemployment in North Carolina was 6.2%, down from 6.6% in November 2002, but
higher than the current national average.
2
During the first 11 months of 2003, North Carolina issued $8.1 billion in new
municipal bonds, up 93% over the same period in 2002. Much of this increase was
due to a $3.1 billion general obligation issue to be used to expand and
modernize both the University of North Carolina system and the state's community
colleges. North Carolina's general obligation debt is rated Aa1/AAA from Moody's
and S&P, respectively, with a stable outlook.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE 12-MONTHS ENDED NOVEMBER 30, 2003?
Individual results for these Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
11/30/03 EQUIVALENT3 11/30/03 11/30/03 11/30/03
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NPG 5.63% 8.34% 9.99% 6.65% 10.28%
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NZX 5.78% 8.56% 10.96% 6.65% 10.28%
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NKG 5.88% 8.71% 10.30% 6.65% 10.28%
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NNC 5.38% 8.15% 9.89% 6.65% 10.28%
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NRB 5.61% 8.50% 10.73% 6.65% 10.28%
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NNO 5.43% 8.23% 11.41% 6.65% 10.28%
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NII 5.49% 8.32% 10.36% 6.65% 10.28%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12-months ended November 30, 2003, the total return of all the Funds in
this report outperformed the unleveraged Lehman Brothers Municipal Bond Index
and outperformed their Lipper peer group average, while NPG and NNC
underperformed this measure.
The use of leverage was one of the factors that influenced the total return
performances of these Funds relative to the Lehman index over the past 12
months. While leveraging creates increased volatility, this strategy can also
provide opportunities for additional income for common shareholders, especially
during periods of low short-term interest rates.
In general, the Funds benefited from their duration4 positioning during this
period. As of November 30, 2003, the durations of certain Funds (NZX, NKG, NRB,
NNO and NII) ranged from 8.80 to 10.88, compared with 8.10 for the Lehman index.
However, NPG and NNC, continued to have the shortest duration (8.59 and 8.14,
respectively). Investments with shorter durations generally would be expected to
underperform those with longer durations during periods of generally declining
long-term municipal interest rates, all other factors being equal.
In addition to leverage and duration, factors such as call exposure, portfolio
trading activity, and the price movement of specific sectors and holdings also
had an impact on the Funds' relative total return performances during this
period. For example, NPG's holdings of several multifamily housing issues also
contributed to its trailing the majority of Funds in this report.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels, the
dividend-payment capabilities of all of these Funds benefited from their use of
leverage. During the 12-months ended November 2003, continued low short-term
rates enabled us to implement three dividend increases in NZX and two in NPG,
NNC, NRB, and NNO. Leverage also helped to support the dividends of NKG and NII,
which were introduced in September 2002. As of November 30, 2003, these Funds
had paid shareholders attractive, steady dividends for 13 consecutive months.
Each fund seeks to pay a stable dividend at a rate that reflects past results
and projected future performance of the Fund. The 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 the Fund
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman Brothers
Municipal Bond Index, an unleveraged, unmanaged national index comprising a
broad range of investment-grade municipal bonds. Results for the Lehman index
do not reflect any expenses.
2 The total returns of these Funds are compared with the average annualized
return of the 43 funds in the Lipper Other States Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends. It should
be noted that the performance of the Lipper Other States category represents
the overall average of annual returns for funds from 10 different states with
a wide variety of economic and municipal market conditions and investment
guidelines, making direct comparisons less applicable.
3 The taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28% plus the applicable state income
tax rate. The combined federal and state tax rates used in this report are as
follows: Georgia 32.5% and North Carolina 34%. The yields shown highlight the
added value of owning shares that are exempt from state as well as federal
income taxes.
4 Duration is a measure of a fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
fund. References to duration in this commentary are intended to indicate fund
duration unless otherwise noted.
3
has cumulatively earned more than it has paid in dividends, it will hold the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's net asset value. Conversely, if the Fund has cumulatively paid dividends
in excess of its earnings, the excess will constitute a negative UNII which will
likewise be reflected in the Fund's net asset value. Each Fund will, over time,
pay all its net investment income as dividends to shareholders. As of November
30 2003, NPG, NZX, NNC,NRB and NNO had positive UNII, while NKG and NII had
negative UNII.
The share prices, as well as the net asset values of all of the Funds, ended the
12-month period higher than they had been at the beginning with the exception of
NKG. As of November 30, 2003, NPG, NZX, NNC, NRB, NNO and NII were trading at
premiums to their common share NAVs, while NKG was trading at a discount (see
individual Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12-MONTHS ENDED
NOVEMBER 30, 2003?
Over this 12-month period, we continued to place strong emphasis on keeping the
Funds fully invested and well diversified, improving call protection, and
enhancing dividend-paying capabilities.
We also continued to focus on managing the Funds' durations as a way of
enhancing our ability to mitigate interest rate risk and produce potentially
more consistent returns over time. Interest rate risk is the risk that the value
of a Fund's portfolio will decline when market interest rates rise (since bond
prices move in the opposite direction of interest rates). The longer the
duration of a Fund's portfolio, the greater its interest rate risk. Over the
past 12-month period, the durations of all seven Funds shortened.
In keeping with the steepness of the municipal yield curve, the majority of our
purchase activity over the past year focused on value opportunities in the long
intermediate part of the yield curve (i.e., bonds that mature in 15 to 20
years). In many cases, bonds in this part of the curve offered yields similar to
those of longer-term bonds but had less inherent interest rate risk.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
NOVEMBER 30, 2003?
We believe that, given the current geopolitical and economic climate,
maintaining strong credit quality remains a vital requirement. As of November
30, 2003, these Nuveen Funds offered excellent credit quality, with allocations
of bonds rated AAA/U.S. guaranteed and AA ranging from 76% to 93%. Despite some
recent economic weaknesses, Georgia and North Carolina continued to rank as very
high quality states with AAA ratings from Standard & Poor's over the past two
years.
Looking at bond calls, these Funds generally offer good levels of call
protection over the next two years, with potential call exposure (as of November
30, 2003) ranging from zero in NZX and NKG to 24% in NPG during 2004 and 2005.
In coming months, the number of actual bond calls in all of these Funds will
depend largely on market interest rates.
In general, we believe that these Nuveen Funds can continue to serve as
attractive sources of tax-free income, while simultaneously offering the
potential for considerable portfolio diversification. In our opinion, the Funds
represent a quality component of a well-balanced core investment portfolio that
can continue to benefit shareholders over time.
4
Nuveen Georgia Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2003
NPG
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 71%
AA 12%
A 10%
BBB 4%
BB or Lower 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.10
--------------------------------------------------
Common Share Net Asset Value $14.96
--------------------------------------------------
Premium/(Discount) to NAV 7.62%
--------------------------------------------------
Market Yield 5.63%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.82%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.34%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,617
--------------------------------------------------
Average Effective Maturity (Years) 20.34
--------------------------------------------------
Leverage-Adjusted Duration 8.59
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/20/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 6.63% 9.99%
--------------------------------------------------
5-Year 5.38% 6.18%
--------------------------------------------------
10-Year 6.86% 6.80%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 24%
--------------------------------------------------
Housing/Multifamily 15%
--------------------------------------------------
Water and Sewer 12%
--------------------------------------------------
Education and Civic Organizations 9%
--------------------------------------------------
Tax Obligation/Limited 9%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0715
Jan 0.0715
Feb 0.0715
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.0755
Oct 0.0755
Nov 0.0755
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 15.98
15.85
15.65
15.85
16
16
16
16.25
16.3
16.61
16.35
16.55
16.45
16.5
16.26
16.22
15.94
15.95
16.02
16.27
16.25
16.1
16.37
16.95
16.98
16.95
16.55
16.35
16.89
16.88
16.2
15.7
15.42
15.55
15.2
15.37
15.27
15.19
15.2
15.2
15.5
15.36
15.59
15.61
15.69
15.8
16
11/30/03 16.1
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32.5%.
5
Nuveen Georgia Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2003
NZX
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 68%
AA 15%
A 5%
BBB 12%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.15
--------------------------------------------------
Common Share Net Asset Value $15.07
--------------------------------------------------
Premium/(Discount) to NAV 0.53%
--------------------------------------------------
Market Yield 5.78%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.03%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.56%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $29,508
--------------------------------------------------
Average Effective Maturity (Years) 20.69
--------------------------------------------------
Leverage-Adjusted Duration 10.69
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.18% 10.96%
--------------------------------------------------
Since Inception 6.27% 8.40%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Education and Civic Organizations 19%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Water and Sewer 14%
--------------------------------------------------
Housing/Single Family 11%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0665
Jan 0.0665
Feb 0.0665
Mar 0.0695
Apr 0.0695
May 0.0695
Jun 0.071
Jul 0.071
Aug 0.071
Sep 0.073
Oct 0.073
Nov 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 14.55
14.5
14.25
14.78
15
14.85
14.75
14.93
15.01
14.84
14.85
14.75
14.9
15.35
15
15.15
14.69
14.73
14.73
14.66
14.87
14.95
14.99
15.59
15.88
16.05
15.93
15.61
15.85
15.96
14.9
14.5
14.75
14.3
14.6
14.65
14.75
14.8
14.73
15.09
14.78
14.62
14.91
15.06
14.85
15.05
14.91
11/30/03 15.15
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32.5%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.1278 per share.
6
Nuveen Georgia Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of November 30, 2003
NKG
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 82%
AA 11%
A 1%
BBB 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.68
--------------------------------------------------
Common Share Net Asset Value $14.41
--------------------------------------------------
Premium/(Discount) to NAV -5.07%
--------------------------------------------------
Market Yield 5.88%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.17%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.71%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $65,591
--------------------------------------------------
Average Effective Maturity (Years) 21.40
--------------------------------------------------
Leverage-Adjusted Duration 10.88
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 0.52% 10.30%
--------------------------------------------------
Since Inception -2.59% 5.81%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 21%
--------------------------------------------------
Healthcare 19%
--------------------------------------------------
Water and Sewer 17%
--------------------------------------------------
Education and Civic Organizations 15%
--------------------------------------------------
Utilities 8%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.067
Apr 0.067
May 0.067
Jun 0.067
Jul 0.067
Aug 0.067
Sep 0.067
Oct 0.067
Nov 0.067
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 14.64
14.4
14.4
14.2
14.7
14.15
14.3
14.25
14.1
14.1
14.45
14.5
14.35
14.29
14.25
14.56
14.35
14.17
14
14.07
14.5
14.47
14.55
14.98
14.78
15
14.7
15.15
15.14
14.7
14.41
14.02
13.86
13.5
13.57
13.48
13.9
13.42
13.45
13.9
13.84
13.85
13.68
13.59
13.55
13.59
13.49
11/30/03 13.68
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32.5%.
7
Nuveen North Carolina Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2003
NNC
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 50%
AA 26%
A 15%
BBB 9%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.63
--------------------------------------------------
Common Share Net Asset Value $15.07
--------------------------------------------------
Premium/(Discount) to NAV 10.35%
--------------------------------------------------
Market Yield 5.38%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.47%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.15%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $95,175
--------------------------------------------------
Average Effective Maturity (Years) 17.96
--------------------------------------------------
Leverage-Adjusted Duration 8.14
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 5/20/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.05% 9.89%
--------------------------------------------------
5-Year 5.39% 6.41%
--------------------------------------------------
10-Year 7.90% 6.79%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 21%
--------------------------------------------------
U.S. Guaranteed 16%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Housing/Single Family 8%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0715
Jan 0.0715
Feb 0.0715
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.0745
Oct 0.0745
Nov 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 15.23
15.15
15.3
15.33
15.8
15.62
15.73
15.55
15.87
16.15
16.45
16.27
16.6
16.5
16.61
16.28
16.22
16.65
16.15
16.41
16.33
16.56
16.73
16.95
17.35
17.37
17.4
17.13
17.2
16.73
16.33
15.6
15.8
15.73
16
15.79
15.8
15.76
16.09
16.1
16.25
16.02
15.95
16.21
16.47
16.58
16.65
11/30/03 16.63
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 34%.
2 The Fund also paid shareholders a net ordinary income distribution in December
2002 of $0.0031 per share.
8
Nuveen North Carolina Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2003
NRB
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 47%
AA 38%
A 10%
BBB 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.35
--------------------------------------------------
Common Share Net Asset Value $15.34
--------------------------------------------------
Premium/(Discount) to NAV 6.58%
--------------------------------------------------
Market Yield 5.61%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.79%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.50%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $34,441
--------------------------------------------------
Average Effective Maturity (Years) 19.14
--------------------------------------------------
Leverage-Adjusted Duration 8.80
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/25/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 12.85% 10.73%
--------------------------------------------------
Since Inception 9.05% 8.60%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Education and Civic Organizations 19%
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Water and Sewer 17%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.0735
Apr 0.0735
May 0.0735
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0765
Oct 0.0765
Nov 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 15.35
15.37
15.75
15.76
15.87
15.55
15.68
15.65
15.6
15.6
15.73
15.65
15.85
15.82
15.82
15.8
15.62
15.8
15.89
16.1
16.27
16.25
16.35
16.45
16.73
16.85
17.35
16.86
16.9
16.8
16.42
14.9
14.99
15.03
14.5
14.65
14.9
15.23
15.24
15.17
15.41
15.4
15.54
15.68
15.73
16.2
16.16
11/30/03 16.35
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 34%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.1311 per share.
9
Nuveen North Carolina Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of November 30, 2003
NNO
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 61%
AA 23%
A 8%
BBB 8%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.70
--------------------------------------------------
Common Share Net Asset Value $15.41
--------------------------------------------------
Premium/(Discount) to NAV 1.88%
--------------------------------------------------
Market Yield 5.43%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.54%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.23%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $57,521
--------------------------------------------------
Average Effective Maturity (Years) 15.03
--------------------------------------------------
Leverage-Adjusted Duration 8.82
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 12.24% 11.41%
--------------------------------------------------
Since Inception 8.07% 9.59%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Education and Civic Organizations 15%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0685
Jan 0.0685
Feb 0.0685
Mar 0.0685
Apr 0.0685
May 0.0685
Jun 0.0695
Jul 0.0695
Aug 0.0695
Sep 0.071
Oct 0.071
Nov 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 14.95
15
14.77
14.89
14.96
15
14.8
15
15.03
15
14.99
15.25
15.15
15.31
15.35
15.1
15
15.09
15.25
15.31
15.55
15.6
15.75
15.97
16.02
16.43
16.1
16.15
16.25
16.24
16
14.7
14.85
14.7
14.9
14.91
14.95
15.2
15.05
14.85
15.5
15.4
15.31
15.35
15.4
15.6
15.5
11/30/03 15.7
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 34%.
2 The Fund also paid shareholders a capital gains distribution in December 2002
of $0.1293 per share.
10
Nuveen North Carolina Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of November 30, 2003
NII
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 62%
AA 30%
A 2%
BBB 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.65
--------------------------------------------------
Common Share Net Asset Value $14.45
--------------------------------------------------
Premium/(Discount) to NAV 1.38%
--------------------------------------------------
Market Yield 5.49%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.63%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.32%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,645
--------------------------------------------------
Average Effective Maturity (Years) 19.35
--------------------------------------------------
Leverage-Adjusted Duration 9.64
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 5.91% 10.36%
--------------------------------------------------
Since Inception 3.01% 6.05%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 30%
--------------------------------------------------
Water and Sewer 17%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.067
Apr 0.067
May 0.067
Jun 0.067
Jul 0.067
Aug 0.067
Sep 0.067
Oct 0.067
Nov 0.067
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 14.94
14.65
14.84
14.81
14.9
14.8
15
14.9
14.98
14.95
14.85
14.85
14.86
14.85
14.8
14.7
14.98
14.99
14.94
15.07
15.05
15.26
15.6
15.2
15.44
15.7
15.9
15.51
15.9
15.61
15.46
14.71
14.57
14.5
14.86
14.82
14.69
14.5
14.39
14.4
14.37
14.38
14.06
14.21
14.15
14.17
14.39
11/30/03 14.65
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 34%.
11
Shareholder
MEETING REPORT
The Shareholder Meeting was held October 22, 2003 in Chicago at Nuveen's
headquarters.
NPG NZX NKG
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 3,353,885 -- 1,878,801 -- 4,445,140 --
Withhold 20,814 -- 1,000 -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
Robert P. Bremner
For 3,350,435 -- 1,879,801 -- 4,445,140 --
Withhold 24,264 -- -- -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
Lawrence H. Brown
For 3,352,885 -- 1,879,801 -- 4,445,140 --
Withhold 21,814 -- -- -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
Jack B. Evans
For 3,354,710 -- 1,879,801 -- 4,445,140 --
Withhold 19,989 -- -- -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
Anne E. Impellizzeri
For 3,351,717 -- 1,878,801 -- 4,445,140 --
Withhold 22,982 -- 1,000 -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
William L. Kissick
For 3,353,710 -- 1,879,801 -- 4,445,140 --
Withhold 20,989 -- -- -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
Thomas E. Leafstrand
For 3,352,542 -- 1,879,801 -- 4,445,140 --
Withhold 22,157 -- -- -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
Peter R. Sawers
For 3,352,885 -- 1,879,801 -- 4,445,140 --
Withhold 21,814 -- -- -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
12
NPG NZX NKG
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
William J. Schneider
For -- 1,025 -- 552 -- 1,178
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,025 -- 552 -- 1,178
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,025 -- 552 -- 1,178
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,025 -- 552 -- 1,178
====================================================================================================================================
Judith M. Stockdale
For 3,353,885 -- 1,879,801 -- 4,445,140 --
Withhold 20,814 -- -- -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
Sheila W. Wellington
For 3,353,710 -- 1,879,801 -- 4,445,140 --
Withhold 20,989 -- -- -- 5,355 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,374,699 -- 1,879,801 -- 4,450,495 --
====================================================================================================================================
13
Shareholder
MEETING REPORT (continued)
NNC NRB NNO
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 5,730,825 -- 2,188,181 -- 3,566,187 --
Withhold 35,581 -- 2,620 -- 5,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
Robert P. Bremner
For 5,732,491 -- 2,189,681 -- 3,566,187 --
Withhold 33,915 -- 1,120 -- 5,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
Lawrence H. Brown
For 5,732,491 -- 2,189,681 -- 3,566,187 --
Withhold 33,915 -- 1,120 -- 5,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
Jack B. Evans
For 5,732,491 -- 2,189,681 -- 3,565,187 --
Withhold 33,915 -- 1,120 -- 6,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
Anne E. Impellizzeri
For 5,732,491 -- 2,188,181 -- 3,565,187 --
Withhold 33,915 -- 2,620 -- 6,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
William L. Kissick
For 5,732,491 -- 2,189,681 -- 3,566,187 --
Withhold 33,915 -- 1,120 -- 5,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
Thomas E. Leafstrand
For 5,732,491 -- 2,189,681 -- 3,566,187 --
Withhold 33,915 -- 1,120 -- 5,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
Peter R. Sawers
For 5,732,491 -- 2,189,681 -- 3,565,187 --
Withhold 33,915 -- 1,120 -- 6,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
14
NNC NRB NNO
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
William J. Schneider
For -- 1,814 -- 658 -- 1,058
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,814 -- 658 -- 1,058
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,814 -- 658 -- 1,058
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,814 -- 658 -- 1,058
====================================================================================================================================
Judith M. Stockdale
For 5,732,491 -- 2,189,681 -- 3,566,187 --
Withhold 33,915 -- 1,120 -- 5,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
Sheila W. Wellington
For 5,732,491 -- 2,188,181 -- 3,566,187 --
Withhold 33,915 -- 2,620 -- 5,600 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,766,406 -- 2,190,801 -- 3,571,787 --
====================================================================================================================================
15
Shareholder
MEETING REPORT (continued)
NII
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
====================================================================================================================================
William E. Bennett
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
Robert P. Bremner
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
Lawrence H. Brown
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
Jack B. Evans
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
Anne E. Impellizzeri
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
William L. Kissick
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
Thomas E. Leafstrand
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
Peter R. Sawers
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
16
NII
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
====================================================================================================================================
William J. Schneider
For -- 911
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 911
====================================================================================================================================
Timothy R. Schwertfeger
For -- 911
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 911
====================================================================================================================================
Judith M. Stockdale
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
Sheila W. Wellington
For 3,874,420 --
Withhold 666 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,875,086 --
====================================================================================================================================
17
Nuveen Georgia Premium Income Municipal Fund (NPG)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.0%
$ 2,000 Cartersville Development Authority, Georgia, Sewerage Facilities 5/07 at 101.00 A+ $ 2,095,940
Revenue Refunding Bonds, Anheuser-Busch Project,
Series 1997, 6.125%, 5/01/27 (Alternative Minimum Tax)
2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,846,900
Asset-Backed Refunding Bonds, Series 2002,
5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.9%
3,000 Athens Housing Authority, Georgia, Student Housing Lease 12/12 at 100.00 Aaa 3,048,930
Revenue Bonds, UGAREF East Campus Housing LLC
Project, Series 2002, 5.000%, 12/01/33 - AMBAC Insured
Atlanta Urban Residential Finance Authority, Georgia, Dormitory
Facility Revenue Refunding Bonds, Morehouse College Project,
Series 1995:
1,210 5.750%, 12/01/20 - MBIA Insured 12/05 at 102.00 AAA 1,325,676
1,375 5.750%, 12/01/25 - MBIA Insured 12/05 at 102.00 AAA 1,493,841
395 DeKalb County Development Authority, Georgia, Revenue 10/04 at 102.00 AA 418,159
Bonds, Emory University Project, Series 1994A,
6.000%, 10/01/14
1,550 Private Colleges and Universities Authority, Georgia, 12/03 at 102.00 AA 1,585,278
Revenue Bonds, Agnes Scott College, Series 1993,
5.625%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 34.3%
3,000 Albany-Dougherty County Hospital Authority, Georgia, 3/04 at 102.00 AAA 3,070,860
Revenue Bonds, Phoebe Putney Memorial Hospital,
Series 1993, 5.700%, 9/01/13 - AMBAC Insured
2,300 Chatham County Hospital Authority, Savannah, Georgia, 7/11 at 101.00 A- 2,459,758
Hospital Revenue Improvement Bonds, Memorial Health
University Medical Center, Inc., Series 2001A,
6.125%, 1/01/24
2,000 Clarke County Hospital Authority, Georgia, Hospital 1/12 at 101.00 AAA 2,055,500
Revenue Certificates, Athens Regional Medical Center,
Series 2002, 5.125%, 1/01/32 - MBIA Insured
3,000 Floyd County Hospital Authority, Georgia, Revenue 7/12 at 101.00 Aaa 3,115,770
Anticipation Certificates, Floyd Medical Center Project,
Series 2002, 5.200%, 7/01/32 - MBIA Insured
1,090 Floyd County Hospital Authority, Georgia, Revenue 7/13 at 101.00 Aaa 1,160,643
Anticipation Certificates, Floyd Medical Center,
Series 2003, 5.000%, 7/01/19 (WI, Settling 12/17/03) -
MBIA Insured
1,765 Gainesville, Hall County Hospital Authority, Georgia, 10/05 at 102.00 AAA 1,921,608
Revenue Anticipation Certificates, Northeast Georgia
Health Services Inc. Project, Series 1995,
6.000%, 10/01/25 - MBIA Insured
1,750 Gainesville, Hall County Hospital Authority, Georgia, Revenue 5/11 at 100.00 A- 1,767,553
Anticipation Certificates, Northeast Georgia Health
Services Inc. Project, Series 2001, 5.500%, 5/15/31
3,750 Gwinnett County Hospital Authority, Georgia, Revenue 2/12 at 102.00 AAA 3,940,500
Anticipation Certificates, Gwinnett Hospital System Inc.
Project, Series 1997B, 5.300%, 9/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 21.8%
1,145 Clayton County Housing Authority, Georgia, Multifamily 12/05 at 102.00 AAA 1,188,625
Housing Revenue Bonds, Advantages Project, Series 1995,
5.800%, 12/01/20
3,400 DeKalb County Housing Authority, Georgia, Multifamily 1/05 at 102.00 AAA 3,518,796
Housing Revenue Bonds, Lakes at Indian Creek Apartments
Project, Series 1994, 7.150%, 1/01/25 (Alternative
Minimum Tax) - FSA Insured
935 Decatur Housing Authority, Georgia, FHA-Insured Mortgage 1/04 at 101.00 AAA 942,153
Revenue Refunding Bonds, Section 8 Assisted Park Trace
Apartments Project, Series 1992A, 6.450%, 7/01/25 -
MBIA Insured
2,000 Housing Authority of the City of Lawrenceville, Georgia, 12/10 at 100.00 AAA 2,074,000
Multifamily Housing Senior Revenue Bonds, Brisben
Greens of Hillcrest II Project, Series 2000A-1,
5.800%, 12/01/33 (Alternative Minimum Tax) -
AMBAC Insured
3,000 Macon-Bibb County Urban Development Authority, Georgia, 1/04 at 103.00 AAA 3,091,020
Multifamily Housing Revenue Refunding Bonds,
Series 1997A, 5.550%, 1/01/24 - MBIA Insured
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,500 Housing Authority of the City of Marietta, Georgia, 10/06 at 102.00 AAA $ 1,540,980
Multifamily Housing Revenue Bonds, GNMA Collateralized -
Country Oaks Apartments, Series 1996, 6.150%, 10/20/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.4%
165 Fulton County Housing Authority, Georgia, GNMA 3/05 at 102.00 AAA 168,216
Mortgage-Backed Securities Program, Single Family
Mortgage Revenue Bonds, Series 1995A, 6.550%, 3/01/18
(Alternative Minimum Tax)
2,985 Georgia Housing and Finance Authority, Single Family 12/10 at 100.00 AAA 3,081,266
Mortgage Bonds, Series 2001A-2, 5.700%, 12/01/31
(Alternative Minimum Tax)
900 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA 932,463
Mortgage Bonds, Series 2002B-2, 5.350%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.9%
500 Savannah Economic Development Authority, Georgia, 7/12 at 100.00 AAA 517,810
Revenue Bonds, GTREP Project, Series 2002,
5.000%, 7/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 6.9%
2,500 Effingham County Industrial Development Authority, 6/11 at 101.00 BB+ 2,368,675
Georgia, Pollution Control Revenue Refunding Bonds,
Georgia-Pacific Project, Series 2001, 6.500%, 6/01/31
1,500 Richmond County Development Authority, Georgia, 2/11 at 101.00 BBB 1,564,200
Environmental Improvement Revenue Bonds, International
Paper Company Project, Series 2001A, 6.250%, 2/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.8%
2,500 Forsyth County School District, Georgia, General Obligation 2/10 at 102.00 Aa2 2,837,900
Bonds, Series 1999, 5.750%, 2/01/19
2,500 Georgia, General Obligation Bonds, Series 2002D, 8/12 at 100.00 AAA 2,718,850
5.000%, 8/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.3%
3,000 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia, 10/19 at 100.00 AAA 3,411,000
Revenue Refunding Bonds, Series 1993, 5.625%, 10/01/26 -
MBIA Insured
2,600 Macon-Bibb County Urban Development Authority, 8/12 at 101.00 AA 2,889,276
Georgia, Revenue Refunding Bonds, Public Facilities
Projects, Series 2002A, 5.375%, 8/01/17
1,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call AAA 1,230,240
Tax Revenue Refunding Bonds, Series P, 6.250%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.1%
1,000 Atlanta, Georgia, Airport Facilities Revenue Refunding No Opt. Call AAA 1,188,780
Bonds, Series 1994A, 6.500%, 1/01/09 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 2.4%
1,160 DeKalb County Development Authority, Georgia, Revenue 10/04 at 102.00 AA*** 1,230,458
Bonds, Emory University Project, Series 1994A,
6.000%, 10/01/14 (Pre-refunded to 10/01/04)
85 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+*** 100,464
Obligation Bonds, Fifth Crossover Series 1998Y,
6.400%, 1/01/09
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.0%
885 Coweta County Development Authority, Georgia, Revenue 1/13 at 100.00 Aaa 964,013
Bonds, Newnan Water and Sewer and Light Commission
Project, Series 2002, 5.250%, 1/01/18 - FGIC Insured
1,000 Georgia Municipal Electric Authority, Power Revenue Bonds, No Opt. Call AAA 1,145,470
Series 1993Z, 5.500%, 1/01/20 - FGIC Insured
1,665 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ 1,930,834
Obligation Bonds, Fifth Crossover Series 1998Y,
6.400%, 1/01/09
1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 AAA 1,033,540
Subordinated Lien Revenue Bonds, Series 2003A,
5.000%, 1/01/22 - MBIA Insured
19
Nuveen Georgia Premium Income Municipal Fund (NPG) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.9%
Augusta, Georgia, Water and Sewerage Revenue Bonds,
Series 2002:
$ 500 5.000%, 10/01/16 - FSA Insured 10/12 at 100.00 AAA $ 539,415
1,990 5.000%, 10/01/17 - FSA Insured 10/12 at 100.00 AAA 2,131,509
3,500 Coweta County Water and Sewer Authority, Georgia, 6/11 at 102.00 Aaa 3,680,495
Revenue Bonds, Series 2001, 5.250%, 6/01/26 -
AMBAC Insured
2,500 DeKalb County, Georgia, Water and Sewerage Bonds, 10/10 at 101.00 AA 2,570,174
Series 2000, 5.125%, 10/01/31
1,000 City of Milledgeville, Georgia, Water and Sewerage Revenue No Opt. Call AAA 1,188,020
and Refunding Bonds, Series 1996, 6.000%, 12/01/21 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 78,600 Total Long-Term Investments (cost $78,549,484) - 146.7% 83,085,558
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.8%
1,000 Macon-Bibb County Hospital Authority, Georgia, Variable A-1+ 1,000,000
Rate Revenue Anticipation Certificates, Series 2000,
1.100%, 5/01/30+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $79,549,484) - 148.5% 84,085,558
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 331,092
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.1)% (27,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $56,616,650
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
20
Nuveen Georgia Dividend Advantage Municipal Fund (NZX)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.6%
$ 750 DeKalb County Development Authority, Georgia, Pollution 12/12 at 101.00 Baa1 $ 767,265
Control Revenue Refunding Bonds, General Motors
Corporation Projects, Series 2002, 6.000%, 3/15/21
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.7%
1,000 Cartersville Development Authority, Georgia, Waste and 2/12 at 100.00 A+ 1,049,690
Wastewater Facilities Revenue Refunding Bonds,
Anheuser Busch Cos. Inc. Project, Series 2002,
5.950%, 2/01/32 (Alternative Minimum Tax)
1,000 Puerto Rico, The Children's Trust Fund, Tobacco 5/12 at 100.00 BBB 923,450
Settlement Asset-Backed Refunding Bonds, Series 2002,
5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 27.4%
1,000 Athens Housing Authority, Georgia, Student Housing 12/12 at 100.00 Aaa 1,069,950
Lease Revenue Bonds, UGAREF East Campus Housing
LLC Project, Series 2002, 5.250%, 12/01/21 -
AMBAC Insured
1,200 Atlanta Development Authority, Georgia, Revenue Bonds, 1/12 at 100.00 AAA 1,233,780
Yamacraw Design Center Project, Series 2001A,
5.125%, 1/01/27 - MBIA Insured
1,620 Bulloch County Development Authority, Georgia, 8/12 at 100.00 Aaa 1,697,112
Student Housing Lease Revenue Bonds, Georgia Southern
University Project, Series 2002, 5.000%, 8/01/20 -
AMBAC Insured
1,485 Fulton County Development Authority, Georgia, Georgia 4/12 at 100.00 AAA 1,553,429
Tech Athletic Association Revenue Bonds, Series 2001,
5.000%, 10/01/20 - AMBAC Insured
1,225 Private Colleges and University Authority, Georgia, Emory 9/11 at 100.00 AA 1,245,788
University Revenue Bonds, Series 2001A, 5.000%, 9/01/31
1,250 Private Colleges and Universities Authority, Georgia, 10/11 at 102.00 Baa1 1,297,950
Revenue Bonds, Mercer University, Series 2001,
5.750%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.8%
1,000 Clarke County Hospital Authority, Georgia, Hospital 1/12 at 101.00 AAA 1,082,350
Revenue Certificates, Athens Regional Medical Center,
Series 2002, 5.375%, 1/01/19 - MBIA Insured
1,250 Hall County Hospital Authority, Gainesville, Georgia, 5/11 at 100.00 A- 1,262,538
Revenue Anticipation Certificates, Northeast Georgia
Health Services Inc. Project, Series 2001,
5.500%, 5/15/31
1,900 Gwinnett County Hospital Authority, Georgia, Revenue 2/12 at 102.00 AAA 1,996,520
Anticipation Certificates, Gwinnett Hospital System Inc.
Project, Series 1997B, 5.300%, 9/01/27 - MBIA Insured
2,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 AAA 2,087,520
South Georgia Medical Center Project Revenue Certificates,
Series 2002, 5.250%, 10/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.0%
1,000 DeKalb County Housing Authority, Georgia, GNMA 8/11 at 103.00 Aaa 1,034,250
Collateralized Multifamily Housing Revenue Bonds,
Castaways Apartments Project, Series 2001A,
5.400%, 2/20/29
995 DeKalb County Housing Authority, Georgia, GNMA 12/11 at 103.00 Aaa 1,038,989
Collateralized Multifamily Housing Revenue Bonds,
Snapwoods Apartments Project, Series 2001A,
5.500%, 12/20/32
1,400 Housing Authority of Savannah, Georgia, Multifamily 8/16 at 100.00 Aaa 1,458,044
Housing Revenue Refunding Bonds, Chatham Gardens
Project, Series 2001, 5.625%, 8/01/31 (Alternative
Minimum Tax) (Mandatory put 2/01/19)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 16.3%
2,000 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA 2,076,960
Mortgage Bonds, Series 2002A-2, 5.450%, 12/01/22
(Alternative Minimum Tax)
650 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA 673,446
Mortgage Bonds, Series 2002B-2, 5.350%, 12/01/22
(Alternative Minimum Tax)
2,025 Georgia Housing and Finance Authority, Single Family 12/12 at 100.00 AAA 2,067,728
Mortgage Bonds, Series 2002C-2, 5.300%, 6/01/33
(Alternative Minimum Tax)
21
Nuveen Georgia Dividend Advantage Municipal Fund (NZX) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.7%
$ 750 Savannah Economic Development Authority, Georgia, 7/12 at 100.00 AAA $ 790,380
Revenue Bonds, GTREP Project, Series 2002,
5.000%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.5%
1,000 Richmond County Development Authority, Georgia, 2/12 at 101.00 BBB 1,026,140
Environmental Improvement Revenue Bonds, International
Paper Company Project Refunding, Series 2002A,
6.000%, 2/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.3%
2,000 Georgia, General Obligation Bonds, Series 2002D, 8/12 at 100.00 AAA 2,144,520
5.000%, 8/01/18
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.3%
1,525 Macon-Bibb County Urban Development Authority, 8/12 at 101.00 AA 1,677,805
Georgia, Revenue Refunding Bonds, County of Bibb
Public Facilities Projects, Series 2002A, 5.000%, 8/01/14
1,000 Rockdale County Water and Sewerage Authority, Georgia, 1/10 at 101.00 AAA 1,063,870
Revenue Bonds, Series 1999A, 5.375%, 7/01/29 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.7%
1,000 Atlanta, Georgia, Airport General Revenue Refunding 1/10 at 101.00 AAA 1,101,650
Bonds, Series 2000A, 5.400%, 1/01/15 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.3%
1,500 Coweta County Development Authority, Georgia, 1/13 at 100.00 Aaa 1,633,920
Revenue Bonds, Newnan Water and Sewer and Light
Commission Project, Series 2002, 5.250%, 1/01/18 -
FGIC Insured
1,250 Municipal Electric Authority of Georgia, Combustion Turbine 11/12 at 100.00 AAA 1,346,325
Revenue Project Bonds, Series 2002A, 5.250%, 11/01/20 -
MBIA Insured
1,200 Summerville, Georgia, Combined Public Utility Revenue 1/12 at 101.00 Baa3 1,228,500
Refunding and Improvement Bonds, Series 2002,
5.750%, 1/01/26
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 20.1%
2,065 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/12 at 100.00 AAA 2,227,784
Series 2002, 5.000%, 10/01/16 - FSA Insured
2,200 DeKalb County, Georgia, Water and Sewerage Bonds, 10/10 at 101.00 AA 2,261,752
Series 2000, 5.125%, 10/01/31
1,395 Macon Water Authority, Georgia, Water and Sewer 10/11 at 101.00 AA- 1,452,056
Revenue Bonds, Series 2001B, 5.000%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 41,635 Total Long-Term Investments (cost $42,148,055) - 147.7% 43,571,461
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 936,653
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (15,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $29,508,114
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
22
Nuveen Georgia Dividend Advantage Municipal Fund 2 (NKG)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.7%
$ 1,750 DeKalb County Development Authority, Georgia, Pollution 12/12 at 101.00 Baa1 $ 1,790,285
Control Revenue Refunding Bonds, General Motors
Corporation Projects, Series 2002, 6.000%, 3/15/21
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.8%
2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,846,900
Asset-Backed Refunding Bonds, Series 2002,
5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.1%
Athens-Clarke County Unified Government Development Authority,
Georgia, Educational Facilities Revenue Bonds, UGAREF CCRC
Building LLC Project, Series 2002:
1,225 5.000%, 12/15/18 - AMBAC Insured 12/12 at 100.00 AAA 1,302,371
1,240 5.000%, 12/15/19 - AMBAC Insured 12/12 at 100.00 AAA 1,309,700
Athens Housing Authority, Georgia, Student Housing Lease Revenue
Bonds, UGAREF East Campus Housing LLC Project, Series 2002:
3,500 5.000%, 12/01/27 - AMBAC Insured 12/12 at 100.00 Aaa 3,566,325
2,500 5.000%, 12/01/33 - AMBAC Insured 12/12 at 100.00 Aaa 2,540,775
1,050 Fulton County Development Authority, Georgia, TUFF 2/12 at 100.00 AAA 1,066,401
Morehouse Project, Series 2002A, 5.000%, 2/01/34 -
AMBAC Insured
2,000 Fulton County Development Authority, Georgia, Revenue 11/13 at 100.00 AAA 2,067,120
Bonds, Klaus Parking and Family Housing Projects,
Georgia Tech, Series 2003, 5.000%, 11/01/23 -
MBIA Insured
1,315 Private Colleges and University Authority, Georgia, 9/11 at 100.00 AA 1,350,715
Emory University Revenue Bonds, Series 2001A,
5.125%, 9/01/33
1,250 Private Colleges and Universities Authority, Georgia, 10/11 at 102.00 Baa1 1,297,950
Revenue Bonds, Mercer University, Series 2001,
5.750%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 27.9%
2,000 Clarke County Hospital Authority, Georgia, Hospital Revenue 1/12 at 101.00 AAA 2,055,500
Certificates, Athens Regional Medical Center, Series 2002,
5.125%, 1/01/32 - MBIA Insured
Floyd County Hospital Authority, Georgia, Revenue Anticipation
Certificates, Floyd Medical Center Project, Series 2002:
1,480 5.000%, 7/01/22 - MBIA Insured 7/12 at 101.00 Aaa 1,525,998
1,000 5.200%, 7/01/32 - MBIA Insured 7/12 at 101.00 Aaa 1,038,590
1,145 Floyd County Hospital Authority, Georgia, Revenue 7/13 at 101.00 Aaa 1,209,933
Anticipation Certificates, Floyd Medical Center,
Series 2003, 5.000%, 7/01/20 (WI, Settling 12/17/03) -
MBIA Insured
1,250 Gainesville, Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 1,262,538
Revenue Anticipation Certificates, Northeast Georgia
Health Services Inc. Project, Series 2001, 5.500%, 5/15/31
3,000 Glynn-Brunswick Memorial Hospital Authority, Georgia, 8/06 at 102.00 AAA 3,290,520
Revenue Bonds, Southeast Georgia Health Systems
Project, Series 1996, 5.250%, 8/01/13 - MBIA Insured
Newnan Hospital Authority, Georgia, Revenue Anticipation
Certificates, Newnan Hospital Inc., Series 2002:
2,260 5.500%, 1/01/19 - MBIA Insured 1/13 at 100.00 Aaa 2,488,124
3,020 5.500%, 1/01/20 - MBIA Insured 1/13 at 100.00 Aaa 3,315,235
1,945 Tift County Hospital Authority, Georgia, Revenue 12/12 at 101.00 Aaa 2,094,804
Anticipation Bonds, Tift Regional Medical Center,
Series 2002, 5.250%, 12/01/19 - AMBAC Insured
23
Nuveen Georgia Dividend Advantage Municipal Fund 2 (NKG) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.6%
Savannah Economic Development Authority, Georgia, Multifamily
Housing Revenue Bonds, Snap I-II-III Apartments, GNMA
Collateral, Series 2002A:
$ 500 5.150%, 11/20/22 (Alternative Minimum Tax) 11/12 at 102.00 AAA $ 508,725
1,000 5.200%, 11/20/27 (Alternative Minimum Tax) 11/12 at 102.00 AAA 1,011,000
1,500 5.250%, 11/20/32 (Alternative Minimum Tax) 11/12 at 102.00 AAA 1,518,720
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.8%
2,025 Georgia Housing and Finance Authority, Single Family 6/11 at 100.00 AAA 2,074,167
Mortgage Bonds, Series 2001B-2, 5.400%, 12/01/31
(Alternative Minimum Tax)
1,700 Georgia Housing and Finance Authority, Single Family 12/12 at 100.00 AAA 1,747,209
Mortgage Bonds, Series 2002C-2, 5.100%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.6%
1,000 Richmond County Development Authority, Georgia, 2/11 at 101.00 BBB 1,042,800
Environmental Improvement Revenue Bonds, International
Paper Company Project, Series 2001A, 6.250%, 2/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.0%
750 State of Georgia, General Obligation Bonds, No Opt. Call AAA 856,358
Series 1998D, 5.250%, 10/01/15
Oconee County, Georgia, General Obligation Bonds,
Series 2003, Recreation Project:
1,410 5.500%, 1/01/23 - AMBAC Insured 1/13 at 101.00 Aaa 1,544,063
1,470 5.250%, 1/01/26 - AMBAC Insured 1/13 at 101.00 Aaa 1,549,424
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.6%
1,405 Development Authority of Clayton County, Georgia, 7/12 at 100.00 AAA 1,502,577
Revenue Bonds, TUFF Archives LLC Project, Series 2001A,
5.250%, 7/01/21 - MBIA Insured
4,000 Forsyth County, Georgia, Water and Sewerage Authority 4/13 at 100.00 AA 4,081,160
Revenue Bonds, Series 2002, 5.000%, 4/01/32
750 Georgia Municipal Association Inc., Certificates 1/12 at 101.00 AAA 790,028
of Participation, City of Atlanta Court Project,
Series 2002, 5.125%, 12/01/21 - AMBAC Insured
2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, No Opt. Call AAA 3,075,600
Sales Tax Revenue Refunding Bonds, Series P,
6.250%, 7/01/20 - AMBAC Insured
2,000 Puerto Rico Highway and Transportation Authority, 7/16 at 100.00 AAA 2,221,100
Highway Revenue Bonds, Series 1996Y, 5.500%, 7/01/36 -
FSA Insured
5,000 Puerto Rico Public Buildings Authority, Guaranteed No Opt. Call AAA 5,578,550
Government Facilities Revenue Refunding Bonds,
Series 2002F, 5.250%, 7/01/21 - CIFG Insured
Puerto Rico Municipal Finance Agency, Series 2002A:
800 5.250%, 8/01/21 - FSA Insured 8/12 at 100.00 AAA 863,208
2,500 5.000%, 8/01/27 - FSA Insured 8/12 at 100.00 AAA 2,575,400
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.0%
3,650 Atlanta, Georgia, Airport General Revenue Refunding 1/10 at 101.00 AAA 3,954,008
Bonds, Series 2000A, 5.500%, 1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 0.9%
525 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101.00 AAA 593,633
Series 1999A, 5.000%, 11/01/38 (Pre-refunded to
5/01/09) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.1%
1,000 City of Elberton, Georgia, Combined Utility System 1/12 at 100.00 Aaa 1,033,900
Refunding and Improvement Revenue Bonds, Series 2001,
5.000%, 1/01/22 - AMBAC Insured
2,000 Georgia Municipal Electric Authority, General Power Revenue 1/13 at 100.00 AAA 2,136,180
Bonds, Series 2002A, 5.000%, 1/01/17 - FSA Insured
1,000 Development Authority of Monroe County, Georgia, No Opt. Call AAA 1,079,850
Pollution Control Revenue Bonds, Georgia Power Company
Scherer Plant Project, Series 2001, 4.200%, 1/01/12 (Mandatory
put 12/01/08) - AMBAC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 AAA $ 1,033,540
Subordinated Lien Revenue Bonds, Series 2003A,
5.000%, 1/01/22 - MBIA Insured
1,775 Puerto Rico Electric Power Authority, Power Revenue 7/12 at 101.00 AAA 1,966,966
Bonds, Series 2002II, 5.375%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.6%
2,000 City of Atlanta, Georgia, Water and Wastewater Revenue 5/12 at 100.00 AAA 2,025,580
Bonds, Series 2001A, 5.000%, 11/01/39 - MBIA Insured
Augusta, Georgia, Water and Sewerage Revenue Bonds,
Series 2002:
1,000 5.250%, 10/01/22 - FSA Insured 10/12 at 100.00 AAA 1,066,550
3,500 5.000%, 10/01/27 - FSA Insured 10/12 at 100.00 AAA 3,578,610
DeKalb County, Georgia, Water and Sewerage Bonds,
Series 2000:
2,500 5.125%, 10/01/31 10/10 at 101.00 AA 2,570,175
2,500 5.375%, 10/01/35 10/10 at 101.00 AA 2,668,400
950 Fulton County, Georgia, Water and Sewerage Revenue 7/08 at 101.00 AAA 1,017,612
Bonds, Series 1998, 5.000%, 1/01/16 - FGIC Insured
3,100 Harris County, Georgia, Water System Revenue Bonds, 12/12 at 100.00 Aaa 3,221,893
Series 2002, 5.000%, 12/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 91,740 Total Long-Term Investments (cost $95,316,854) - 147.7% 96,906,770
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 1,684,601
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (33,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $65,591,371
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
25
Nuveen North Carolina Premium Income Municipal Fund (NNC)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.4%
$ 1,050 North Carolina Capital Facilities Financing Agency, 4/13 at 100.00 AAA $ 1,065,992
Educational Facilities Revenue Bonds, Johnson and Wales
University Project, Series 2003A, 5.000%, 4/01/33 -
XLCA Insured
1,000 North Carolina Capital Facilities Financing Agency, 6/13 at 100.00 AAA 1,021,790
Educational Facilities Revenue Bonds, Elizabeth City State
University Housing Project, Series 2003A, 5.000%, 6/01/28 -
AMBAC Insured
State of North Carolina Education Assistance Authority,
Guaranteed Student Loan Revenue Bonds, Series 1995A (Subordinate
Lien):
1,000 6.050%, 7/01/10 (Alternative Minimum Tax) 7/05 at 102.00 A2 1,046,590
2,400 6.300%, 7/01/15 (Alternative Minimum Tax) 7/05 at 102.00 A2 2,496,648
5,875 State of North Carolina Education Assistance Authority 7/06 at 102.00 A2 6,175,918
(A Political Subdivision of the State of North Carolina),
Guaranteed Student Loan Revenue Bonds, Subordinate
Lien Series 1996C, 6.350%, 7/01/16 (Alternative
Minimum Tax)
1,000 The University of North Carolina System, Pool Revenue 10/12 at 100.00 AAA 1,076,410
Refunding Bonds, Series 2002A, 5.375%, 4/01/22 -
AMBAC Insured
1,675 University of North Carolina at Wilmington, General 1/12 at 101.00 Aaa 1,740,024
Revenue Bonds, Series 2002A, 5.000%, 1/01/23 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 29.8%
5,630 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 5,661,415
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
North Carolina Medical Care Commission, Healthcare Facilities
Revenue Bonds, Union Regional Medical Center Project, Series
2002A:
1,000 5.500%, 1/01/19 1/12 at 100.00 A 1,048,140
550 5.500%, 1/01/20 1/12 at 100.00 A 573,105
1,750 5.375%, 1/01/32 1/12 at 100.00 A 1,772,820
2,000 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 AA- 2,078,460
Facilities Revenue Bonds, Novant Health Obligated
Group, Series 2003A, 5.000%, 11/01/19
2,000 North Carolina Medical Care Commission, Healthcare 10/09 at 101.00 A- 2,148,980
Facilities Revenue Bonds, Stanly Memorial Hospital
Project, Series 1999, 6.375%, 10/01/29
3,250 North Carolina Medical Care Commission, Healthcare 10/11 at 101.00 AAA 3,307,915
Facilities Revenue Bonds, WakeMed Project, Series 2001,
5.000%, 10/01/32 - AMBAC Insured
3,615 North Carolina Medical Care Commission, Hospital 10/08 at 101.00 AA 3,548,050
Revenue Bonds, FirstHealth of the Carolinas Project,
Series 1998, 4.750%, 10/01/26
3,000 North Carolina Medical Care Commission, Hospital 6/12 at 101.00 A 3,076,320
Revenue Bonds, Southeastern Regional Medical Center,
Series 2002, 5.375%, 6/01/32
5,000 North Carolina Medical Care Commission, Health 10/11 at 101.00 AA 5,136,650
System Revenue Bonds, Mission-Saint Joseph Health
System, Series 2001, 5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.7%
1,000 Asheville Housing Authority, North Carolina, GNMA- 11/07 at 102.00 AAA 1,024,080
Collateralized Multifamily Housing Revenue Bonds,
Woodridge Apartments, Series 1997, 5.800%, 11/20/39
(Alternative Minimum Tax)
1,000 Charlotte, North Carolina, FHA-Insured Mortgage 1/04 at 104.00 AAA 1,034,580
Revenue Refunding Bonds, Tryon Hills Apartments Project,
Series 1993A, 5.875%, 1/01/25 - MBIA Insured
3,000 Mecklenburg County, North Carolina, Multifamily Housing 1/12 at 102.00 AAA 3,125,160
Revenue Bonds, Sycamore Green Apartments, Series 2001,
5.500%, 1/15/35 (Alternative Minimum Tax) - FGIC Insured
2,290 Mecklenburg County, North Carolina, FNMA-Enhanced 7/13 at 105.00 AAA 2,362,479
Multifamily Housing Revenue Bonds, Little Rock Apartments,
Series 2003, 5.375%, 1/01/36 (Alternative Minimum Tax)
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
North Carolina Housing Finance Agency, Multifamily Revenue
Bonds, FHA-Insured Mortgage Loan Resolution, Series 1993:
$ 280 5.800%, 7/01/14 1/04 at 101.00 AA $ 284,225
435 5.900%, 7/01/26 1/04 at 101.00 AA 439,376
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.4%
130 North Carolina Housing Finance Agency, Single Family 3/04 at 102.00 AA 132,803
Revenue Bonds, 1985 Resolution, Series X, 6.700%, 9/01/26
(Alternative Minimum Tax)
5,875 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 6,167,575
Revenue Bonds, 1998 Trust Agreement, Series 6A,
6.200%, 1/01/29 (Alternative Minimum Tax)
2,970 North Carolina Housing Finance Agency, Single Family 3/06 at 102.00 AA 3,071,990
Revenue Bonds, 1985 Resolution, Series HH,
6.300%, 3/01/26 (Alternative Minimum Tax)
1,460 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 1,491,726
Revenue Bonds, 1998 Trust Agreement, Series 10A,
5.400%, 7/01/32 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.4%
2,100 Haywood County Industrial Facilities and Pollution Control 12/05 at 102.00 BBB 2,108,925
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, Champion International
Corporation Project, Series 1995A, 5.750%, 12/01/25
(Alternative Minimum Tax)
2,000 Haywood County Industrial Facilities and Pollution Control 3/06 at 102.00 Baa2 2,079,340
Financing Authority, North Carolina, Pollution Control
Revenue Refunding Bonds, Champion International
Corporation Project, Series 1995, 6.000%, 3/01/20
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.3%
1,890 Craven County, North Carolina, General Obligation Bonds, 5/12 at 101.00 AAA 1,987,826
Series 2002, 5.000%, 5/01/21 - AMBAC Insured
4,285 Durham County, North Carolina, General Obligation Public 4/12 at 100.00 AAA 4,647,854
Improvement Bonds, Series 2002B, 5.000%, 4/01/16
1,000 Johnston county, North Carolina, General Obligation 6/11 at 102.00 AAA 1,085,620
Bonds, Series 2001, 5.000%, 6/01/16 - FGIC Insured
4,500 State of North Carolina, General Obligation Bonds, 9/10 at 102.00 AAA 4,920,975
Series 2000A, 5.100%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.0%
1,330 Cabarrus County, North Carolina, Certificates of 2/13 at 100.00 AA- 1,458,159
Participation, Series 2002, 5.250%, 2/01/17
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
1,700 5.375%, 6/01/26 6/13 at 100.00 AA+ 1,803,904
1,000 5.000%, 6/01/33 6/13 at 100.00 AA+ 1,013,980
Charlotte, North Carolina, Storm Water Fee Revenue
Bonds, Series 2002:
1,050 5.250%, 6/01/20 6/12 at 101.00 AA+ 1,136,741
1,750 5.000%, 6/01/25 6/12 at 101.00 AA+ 1,794,608
2,180 Concord, North Carolina, Certificates of Participation, 6/06 at 102.00 AAA 2,428,346
Series 1996A, 6.125%, 6/01/21 - MBIA Insured
750 Johnston County Finance Corporation, North Carolina, 8/09 at 101.00 AAA 802,688
Installment Payment Revenue Bonds, School and Museum
Projects, Series 1999, 5.250%, 8/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.3%
Raleigh Durham Airport Authority, North Carolina, Airport
Revenue Bonds, Series 2001A:
2,250 5.250%, 11/01/16 - FGIC Insured 5/11 at 101.00 Aaa 2,472,615
4,450 5.000%, 11/01/31 - FGIC Insured 5/11 at 101.00 Aaa 4,512,434
27
Nuveen North Carolina Premium Income Municipal Fund (NNC) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.3%
$ 4,000 Charlotte, North Carolina, Water and Sewer System 6/10 at 101.00 AAA $ 4,595,760
Revenue Bonds, Series 2000, 5.250%, 6/01/25
(Pre-refunded to 6/01/10)
2,000 Charlotte, North Carolina, Storm Water Fee Revenue 6/10 at 101.00 AA+*** 2,383,740
Bonds, Series 2000, 6.000%, 6/01/25 (Pre-refunded
to 6/01/10)
2,900 Fayetteville Public Works Commission, North Carolina, 3/07 at 101.00 AAA 3,224,162
Revenue Bonds, Series 1997, 5.125%, 3/01/24
(Pre-refunded to 3/01/07) - FSA Insured
2,265 North Carolina Municipal Power Agency 1, Catawba No Opt. Call AAA 2,870,208
Electric Revenue Bonds, Series 1980, 10.500%, 1/01/10
2,000 Orange County, North Carolina, General Obligation School 2/04 at 102.00 AA+*** 2,055,340
Bonds, Series 1994, 5.500%, 2/01/11
(Pre-refunded to 2/01/04)
2,180 County of Union, North Carolina, Enterprise Systems 6/06 at 102.00 AAA 2,428,433
Revenue Bonds, Series 1996, 5.500%, 6/01/21
(Pre-refunded to 6/01/06) - MBIA Insured
3,340 Board of Governors of The University of North Carolina, 2/06 at 102.00 AA*** 3,670,860
University of North Carolina Hospitals at Chapel Hill,
Revenue Bonds, Series 1996, 5.250%, 2/15/26
(Pre-refunded to 2/15/06)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.9%
2,600 North Carolina Eastern Municipal Power Agency, Power 1/04 at 101.00 BBB 2,627,066
System Revenue Bonds, Series 1993D, 5.600%, 1/01/16
4,000 North Carolina Municipal Power Agency Number 1, 1/10 at 101.00 BBB+ 4,440,000
Catawba Electric Revenue Bonds, Series 1999B,
6.500%, 1/01/20
2,000 North Carolina Municipal Power Agency Number 1, 1/13 at 100.00 AAA 2,212,200
Catawba Electric Revenue Bonds, Series 2003A,
5.250%, 1/01/15 - AMBAC Insured
1,000 The Wake County Industrial Facilities and Pollution 2/12 at 101.00 A3 1,068,660
Control Financing Authority, North Carolina, Revenue
Refunding Bonds, Carolina Power and Light Company
Project, Series 2002, 5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.4%
Thomasville, North Carolina, Combined Enterprise System
Revenue Bonds, Series 2002:
370 5.000%, 5/01/20 - MBIA Insured 5/12 at 101.00 AAA 388,859
390 5.000%, 5/01/21 - MBIA Insured 5/12 at 101.00 AAA 406,505
1,250 5.125%, 5/01/27 - MBIA Insured 5/12 at 101.00 AAA 1,293,684
2,000 Winston-Salem, North Carolina, Water and Sewer System 6/12 at 100.00 AAA 2,128,920
Revenue Bonds, Series 2002A, 5.000%, 6/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 124,765 Total Long-Term Investments (cost $124,022,837) - 138.9% 132,157,633
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 10.3% 9,817,723
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.2)% (46,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $95,175,356
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
28
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 27.4%
$ 500 North Carolina Capital Facilities Finance Agency, 9/11 at 101.00 A3 $ 521,275
Educational Facilities Revenue Bonds, High Point
University Project, Series 2001, 5.125%, 9/01/18
2,250 North Carolina Capital Facilities Financing Agency, 10/11 at 100.00 AA+ 2,320,605
Revenue Bonds, Duke University Project, Series 2001A,
5.125%, 10/01/26
1,750 The University of North Carolina at Chapel Hill, General 6/11 at 100.00 AA+ 1,786,768
Revenue Bonds, Series 2001A, 5.000%, 12/01/25
1,845 The University of North Carolina at Chapel Hill, General No Opt. Call AA+ 2,072,710
Revenue Bonds, Series 2002B, 5.000%, 12/01/11
2,450 University of North Carolina System, Pool Revenue Refunding 10/12 at 100.00 AAA 2,711,170
Bonds, Series 2002A, 5.375%, 4/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.0%
1,110 North Carolina Medical Care Commission, Healthcare 1/12 at 100.00 A 1,173,992
Facilities Revenue Bonds, Union Regional Medical Center
Project, Series 2002A, 5.250%, 1/01/15
1,250 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 AA- 1,290,950
Facilities Revenue Bonds, Novant Health Obligated
Group, Series 2003A, 5.000%, 11/01/20
2,500 North Carolina Medical Care Commission, Healthcare 5/07 at 100.00 AA- 2,537,800
Revenue Bonds, Carolina Medicorp Project, Series 1996,
5.250%, 5/01/26
1,500 North Carolina Medical Care Commission, Hospital Revenue 6/12 at 101.00 A 1,540,095
Bonds, Southeastern Regional Medical Center, Series 2002,
5.250%, 6/01/22
2,000 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 2,054,660
Revenue Bonds, Mission - Saint Joseph Health System,
Series 2001, 5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 14.3%
2,250 Durham Housing Authority, North Carolina, FNMA 6/11 at 100.00 AAA 2,318,333
Guaranteed Multifamily Housing Revenue Bonds, Naples
Terrace Apartments Project, Series 2001A, 5.700%, 6/01/33
(Alternative Minimum Tax)
2,500 County of Mecklenburg, North Carolina, Multifamily 1/12 at 102.00 AAA 2,604,300
Housing Revenue Bonds, Sycamore Green Apartments,
Series 2001, 5.500%, 1/15/35 (Alternative Minimum Tax) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.0%
1,440 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 1,483,358
Revenue Bonds, 1998 Trust Agreement, Series 5A,
5.625%, 7/01/30 (Alternative Minimum Tax)
585 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 597,712
Revenue Bonds, 1998 Trust Agreement, Series 10A,
5.400%, 7/01/32 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.5%
750 Columbus County Industrial Facilities and Pollution 4/07 at 102.00 BBB 776,438
Control Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, International Paper Company
Project, Series 1997A, 6.150%, 4/01/21 (Alternative
Minimum Tax)
750 Columbus County Industrial Facilities and Pollution 12/07 at 102.00 BBB 779,625
Control Financing Authority, North Carolina, Solid Waste
Disposal Revenue Refunding Bonds, International Paper
Company Project, Series 1996A, 5.800%, 12/01/16
(Alternative Minimum Tax)
29
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.4%
$ 1,330 Cabarrus County, North Carolina, Certificates of Participation, 2/13 at 100.00 AA- $ 1,475,422
Series 2002, 5.250%, 2/01/15
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
1,400 5.375%, 6/01/26 6/13 at 100.00 AA+ 1,485,568
1,290 5.000%, 6/01/33 6/13 at 100.00 AA+ 1,308,034
1,870 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AAA 2,077,458
Series 2002, 5.250%, 6/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.8%
1,530 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 1,664,395
Revenue Bonds, Series 2001A, 5.250%, 11/01/18 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 19.7%
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 1,079,120
500 5.250%, 9/01/21 - FSA Insured 9/11 at 101.00 AAA 536,100
2,500 North Carolina Eastern Municipal Power Agency, Power 1/04 at 100.00 AAA 2,508,050
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/17 - FGIC Insured
1,000 North Carolina Eastern Municipal Power Agency, Power 1/09 at 102.00 BBB 1,064,180
System Revenue Refunding Bonds, Series 1999B,
5.650%, 1/01/16
1,500 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A3 1,602,990
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company Project,
Series 2002, 5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.0%
2,290 Broad River Water Authority, North Carolina, Water System 6/10 at 101.00 Aaa 2,430,284
Revenue Bonds, Series 2000, 5.375%, 6/01/26 -
MBIA Insured
2,250 Charlotte, North Carolina, Water and Sewer System Revenue 6/11 at 101.00 AAA 2,343,330
Bonds, Series 2001, 5.125%, 6/01/26
Greensboro, North Carolina, Combined Enterprise System
Revenue Bonds, Series 2001A:
500 5.125%, 6/01/20 6/11 at 101.00 AA+ 528,000
500 5.125%, 6/01/21 6/11 at 101.00 AA+ 525,095
2,275 Winston-Salem, North Carolina, Water and Sewer System 6/12 at 100.00 AAA 2,438,550
Revenue Bonds, Series 2002A, 5.000%, 6/01/17
------------------------------------------------------------------------------------------------------------------------------------
$ 47,165 Total Long-Term Investments (cost $47,607,488) - 144.1% 49,636,367
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.3% 1,804,624
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.4)% (17,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $34,440,991
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
30
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.7%
Appalachian State University, North Carolina, Housing and
Student Center System Revenue Refunding Bonds, Series 2001:
$ 600 5.125%, 7/15/24 1/11 at 101.00 Aaa $ 621,090
200 5.125%, 7/15/27 1/11 at 101.00 Aaa 206,496
Appalachian State University, North Carolina, Housing and
Student Center System Revenue Refunding Bonds, Series 2002:
1,000 5.000%, 7/15/13 - MBIA Insured 7/12 at 100.00 Aaa 1,102,560
1,040 5.000%, 7/15/14 - MBIA Insured 7/12 at 100.00 Aaa 1,136,658
1,000 5.000%, 7/15/15 - MBIA Insured 7/12 at 100.00 Aaa 1,085,630
3,750 North Carolina Capital Facilities Financing Agency, Revenue 10/11 at 100.00 AA+ 3,867,675
Bonds, Duke University Project, Series 2001A,
5.125%, 10/01/26
1,840 The University of North Carolina at Chapel Hill, General No Opt. Call AA+ 2,067,093
Revenue Bonds, Series 2002B, 5.000%, 12/01/11
400 Board of Governors of the University of North Carolina, 4/11 at 101.00 AAA 442,964
University of North Carolina at Greensboro, General
Revenue and Revenue Refunding Bonds, Series 2002B,
5.375%, 4/01/17 - FSA Insured
University of North Carolina System, Pool Revenue Refunding
Bonds, Series 2002A:
1,155 5.375%, 4/01/16 - AMBAC Insured 10/12 at 100.00 AAA 1,285,423
1,100 5.375%, 4/01/19 - AMBAC Insured 10/12 at 100.00 AAA 1,202,652
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.2%
4,000 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 4,022,320
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
2,225 New Hanover County, North Carolina, Hospital Revenue 4/04 at 102.00 AAA 2,230,118
Bonds, New Hanover Regional Medical Center Project,
Series 1993, 4.750%, 10/01/23 - AMBAC Insured
1,005 North Carolina Medical Care Commission, Healthcare 1/12 at 100.00 A 1,080,646
Facilities Revenue Bonds, Union Regional Medical
Center Project, Series 2002A, 5.250%, 1/01/13
750 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 AA- 774,570
Facilities Revenue Bonds, Novant Health Obligated Group,
Series 2003A, 5.000%, 11/01/20
1,000 North Carolina Medical Care Commission, Healthcare 10/11 at 101.00 AAA 1,017,820
Facilities Revenue Bonds, WakeMed Project, Series 2001,
5.000%, 10/01/32 - AMBAC Insured
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 1,084,640
2,000 5.250%, 6/01/22 6/12 at 101.00 A 2,053,460
1,000 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 1,027,330
Revenue Bonds, Mission-Saint Joseph Health System,
Series 2001, 5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.3%
3,500 County of Mecklenburg, North Carolina, Multifamily 1/12 at 102.00 AAA 3,646,020
Housing Revenue Bonds, Sycamore Green Apartments,
Series 2001, 5.500%, 1/15/35 (Alternative Minimum Tax) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.5%
495 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 505,756
Revenue Bonds, 1998 Trust Agreement, Series 10A,
5.400%, 7/01/32 (Alternative Minimum Tax) -
AMBAC Insured
North Carolina Housing Finance Agency, Home Ownership
Revenue Bonds, Series 13-A:
1,000 4.700%, 7/01/12 (Alternative Minimum Tax) 7/11 at 100.00 AA 1,045,280
1,000 4.850%, 7/01/13 (Alternative Minimum Tax) 7/11 at 100.00 AA 1,045,150
31
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.4%
$ 1,400 Haywood County Industrial Facilities and Pollution Control 4/04 at 102.00 BBB $ 1,410,472
Financing Authority, North Carolina, Solid Waste Disposal
Revenue Bonds, Champion International Corporation Project,
Series 1993, 5.500%, 10/01/18 (Alternative Minimum Tax)
1,100 The Industrial Facilities and Pollution Control Financing 2/11 at 101.00 BBB 1,143,868
Authority of the County of Northampton, North Carolina,
Environmental Improvement Revenue Bonds, International
Paper Company Project, Series 2001A, 6.200%, 2/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.1%
250 Durham County, North Carolina, General Obligation Bonds, 5/10 at 102.00 AAA 285,025
Series 2000, 5.600%, 5/01/15
3,000 County of Mecklenburg, North Carolina, General Obligation 4/10 at 101.50 AAA 3,292,620
Public Improvement Bonds, Series 2000D, 5.000%, 4/01/13
3,000 State of North Carolina, General Obligation Bonds, 9/10 at 102.00 AAA 3,280,650
Series 2000A, 5.100%, 9/01/16
3,200 County of Wake, North Carolina, General Obligation School 2/10 at 101.50 AAA 3,577,760
Bonds, Series 2000, 5.400%, 2/01/13
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.7%
1,330 Cabarrus County, North Carolina, Certificates of 2/13 at 100.00 AA- 1,465,687
Participation, Series 2002, 5.250%, 2/01/16
Charlotte, North Carolina, Storm Water Fee Revenue Bonds,
Series 2002:
1,850 5.250%, 6/01/18 6/12 at 101.00 AA+ 2,025,084
400 5.250%, 6/01/19 6/12 at 101.00 AA+ 435,440
1,325 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AAA 1,455,022
Series 2002, 5.250%, 6/01/17 - AMBAC 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 1,117,270
2,025 5.375%, 12/01/16 - FSA Insured 12/12 at 101.00 AAA 2,271,726
825 5.000%, 12/01/18 - FSA Insured 12/12 at 101.00 AAA 882,998
1,595 Rutherford County, North Carolina, Certificates of 9/12 at 101.00 AAA 1,704,768
Participation, Series 2002, 5.000%, 9/01/18 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.7%
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 Aaa 1,104,950
2,320 5.250%, 11/01/16 - FGIC Insured 5/11 at 101.00 Aaa 2,549,541
2,230 5.250%, 11/01/17 - FGIC Insured 5/11 at 101.00 Aaa 2,438,527
University of North Carolina at Charlotte, Parking System
Revenue Bonds, Series 2002:
360 5.000%, 1/01/17 - MBIA Insured 1/12 at 101.00 Aaa 386,208
270 5.000%, 1/01/20 - MBIA Insured 1/12 at 101.00 Aaa 283,362
500 5.125%, 1/01/27 - MBIA Insured 1/12 at 101.00 Aaa 518,100
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.8%
3,000 Fayetteville Public Works Commission, North Carolina, 3/07 at 101.00 AAA 3,335,340
Revenue Bonds, Series 1997, 5.125%, 3/01/24
(Pre-refunded to 3/01/07) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.3%
2,500 North Carolina Eastern Municipal Power Agency, Power 1/04 at 100.00 AAA 2,508,050
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/17 - FGIC Insured
2,400 North Carolina Eastern Municipal Power Agency, Power 1/04 at 101.00 BBB 2,424,984
System Revenue Bonds, Series 1993D, 5.600%, 1/01/16
1,500 North Carolina Municipal Power Agency Number 1, 1/10 at 101.00 BBB+ 1,665,000
Catawba Electric Revenue Bonds, Series 1999B,
6.500%, 1/01/20
2,600 The Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A3 2,778,516
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company Project,
Series 2002 Refunding, 5.375%, 2/01/17
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.1%
$ 4,520 Charlotte, North Carolina, Water and Sewer System Revenue No Opt. Call AAA $ 5,161,614
Bonds, Series 2002, 5.250%, 7/01/13
1,465 Orange Water and Sewer Authority, North Carolina, Water 7/11 at 101.00 AA+ 1,540,652
and Sewer System Revenue Bonds, Series2001,
5.000%, 7/01/20
850 City of Raleigh, North Carolina, Combined Enterprise System 3/09 at 101.00 AAA 855,907
Revenue Bonds, Series 1999, 4.750%, 3/01/24
------------------------------------------------------------------------------------------------------------------------------------
$ 78,875 Total Long-Term Investments (cost $80,264,505) - 146.8% 84,450,492
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 1,070,946
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.7)% (28,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $57,521,438
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
33
Nuveen North Carolina Dividend Advantage Municipal Fund 3 (NII)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3%
$ 2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,846,900
Asset-Backed Refunding Bonds, Series 2002,
5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.6%
North Carolina Capital Facilities Financing Agency, Revenue
Bonds, Duke University Project, Series 2001A:
1,750 5.125%, 10/01/26 10/11 at 100.00 AA+ 1,804,915
2,000 5.125%, 10/01/41 10/11 at 100.00 AA+ 2,045,220
3,000 North Carolina Capital Facilities Financing Agency, Revenue 10/12 at 100.00 AA+ 3,064,410
Bonds, Duke University Project, Series 2002A,
5.125%, 7/01/42
1,900 University of North Carolina System, Pool Revenue 10/12 at 100.00 AAA 1,943,491
Refunding Bonds, Series 2002A, 5.000%, 4/01/27 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.4%
2,000 The Charlotte-Mecklenburg Hospital Authority, 1/07 at 102.00 AA 2,050,520
North Carolina, Healthcare System Revenue Bonds,
Doing Business as Carolina Healthcare System,
Series 1997A, 5.125%, 1/15/22
1,750 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 1,759,765
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
2,000 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 AA- 2,093,140
Facilities Revenue Bonds, Novant Health Obligated Group,
Series 2003A, 5.000%, 11/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.8%
1,000 Mecklenburg County, North Carolina, FNMA-Enhanced 7/13 at 105.00 AAA 1,028,750
Multifamily Housing Revenue Bonds, Little Rock
Apartments, Series 2003, 5.150%, 1/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.7%
1,465 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 1,509,111
Revenue Bonds, 1998 Trust Agreement, Series 5A,
5.625%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 5.2%
1,400 Haywood County Industrial Facilities and Pollution Control 12/05 at 102.00 BBB 1,405,950
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, Champion International
Corporation Project, Series 1995A, 5.750%, 12/01/25
(Alternative Minimum Tax)
1,500 Martin County Industrial Facilities and Pollution Control 3/04 at 101.00 BBB 1,519,740
Financing Authority, North Carolina, Solid Waste Disposal
Revenue Bonds, Weyerhaeuser Company Project,
Series 1991, 7.250%, 9/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.3%
County of Lincoln, North Carolina, General Obligation
Bonds, Series 2002A:
850 5.000%, 6/01/19 - FGIC Insured 6/12 at 101.00 AAA 905,939
900 5.000%, 6/01/20 - FGIC Insured 6/12 at 101.00 AAA 952,704
1,050 5.000%, 6/01/21 - FGIC Insured 6/12 at 101.00 AAA 1,104,768
1,000 County of Mecklenburg, North Carolina, General Obligation 4/10 at 101.50 AAA 1,097,540
Public Improvement Bonds, Series 2000D, 5.000%, 4/01/13
1,000 State of North Carolina, General Obligation Bonds, 9/10 at 102.00 AAA 1,093,550
Series 2000A, 5.100%, 9/01/16
2,000 Puerto Rico Public Improvement, General Obligation No Opt. Call AAA 2,507,760
Refunding Bonds, Series 1997, 6.500%, 7/01/15 -
MBIA Insured
400 City of Raleigh, North Carolina, General Obligation Bonds, 6/12 at 100.00 AAA 421,376
Series 2002, 5.000%, 6/01/21
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 43.8%
$ 3,900 Cary, North Carolina, General Obligation Water Bonds, 3/11 at 102.00 AAA $ 4,147,104
Series 2001, 5.000%, 3/01/20
1,550 Cary, North Carolina, Certificates of Participation, Public 12/12 at 100.00 AA+ 1,666,886
Improvement Projects, Series 2002A, 5.000%, 12/01/17
1,500 Centennial Authority, North Carolina, Hotel Tax Revenue 9/07 at 102.00 AAA 1,600,740
Bonds, Arena Project, Series 1997, 5.125%, 9/01/19 -
FSA Insured
4,250 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 4,309,415
Governmental Facilities Projects, Series 2003G,
5.000%, 6/01/33
3,000 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AAA 3,102,210
Series 2002, 5.000%, 6/01/23 - AMBAC Insured
360 Duplin County, North Carolina, Certificates of Participation, No Opt. Call AAA 401,332
Series 2002 Refunding, 5.000%, 9/01/12 - AMBAC Insured
County of Forsyth, North Carolina, Certificates of
Participation, Series 2002, Public Facilities Equipment Project:
1,325 5.125%, 1/01/16 1/13 at 101.00 AA+ 1,448,676
770 5.250%, 1/01/19 1/13 at 101.00 AA+ 837,344
1,235 5.250%, 1/01/23 1/13 at 101.00 AA+ 1,310,965
2,000 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,060,320
5.000%, 8/01/27 - FSA Insured
2,000 Rutherford County, North Carolina, Certificates of 9/12 at 101.00 AAA 2,091,820
Participation, Series 2002, 5.000%, 9/01/21 -
AMBAC Insured
1,785 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 AAA 1,879,998
Series 2003, 5.000%, 6/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.2%
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 Aaa 1,966,811
3,100 5.000%, 11/01/20 - FGIC Insured 5/11 at 101.00 Aaa 3,230,758
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.9%
4,000 North Carolina Eastern Municipal Power Agency, Power 1/04 at 100.00 AAA 4,012,880
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/17 - FGIC Insured
2,665 North Carolina Municipal Power Agency Number 1, 1/13 at 100.00 AAA 2,947,757
Catawba Electric Revenue Bonds, Series 2003A,
5.250%, 1/01/15 - AMBAC Insured
1,400 The Wake County Industrial Facilities and Pollution 2/12 at 101.00 A3 1,496,124
Control Financing Authority, North Carolina, Revenue
Refunding Bonds, Carolina Power and Light Company
Project, Series 2002, 5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 25.4%
750 Broad River Water Authority, North Carolina, Water System 6/10 at 101.00 Aaa 795,945
Revenue Bonds, Series 2000, 5.375%, 6/01/26 -
MBIA Insured
Charlotte, North Carolina, Water and Sewer System Revenue
Bonds, Series 2001:
750 5.125%, 6/01/26 6/11 at 101.00 AAA 781,110
1,780 5.125%, 6/01/26 - FGIC Insured 6/11 at 101.00 AAA 1,853,834
Durham County, North Carolina, Enterprise System Revenue
Bonds, Series 2002:
680 5.000%, 6/01/16 - MBIA Insured 6/13 at 100.00 AAA 738,670
710 5.000%, 6/01/17 - MBIA Insured 6/13 at 100.00 AAA 765,991
300 5.000%, 6/01/18 - MBIA Insured 6/13 at 100.00 AAA 321,204
2,500 City of Kannapolis, North Carolina, Water and Sewer 2/12 at 101.00 AAA 2,570,373
Revenue Bonds, Series 2001B, 5.250%, 2/01/26
(Alternative Minimum Tax) - FSA Insured
35
Nuveen North Carolina Dividend Advantage Municipal Fund 3 (NII) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,000 Orange Water and Sewer Authority, North Carolina, Water 7/11 at 101.00 AA+ $ 1,022,740
and Sewer System Revenue Bonds, Series 2001,
5.000%, 7/01/26
Winston-Salem, North Carolina, Water and Sewer System
Revenue Bonds, Series 2002A:
500 5.000%, 6/01/17 6/12 at 100.00 AAA 535,945
4,715 5.000%, 6/01/19 6/12 at 100.00 AAA 4,987,668
------------------------------------------------------------------------------------------------------------------------------------
$ 79,270 Total Long-Term Investments (cost $81,362,496) - 146.6% 83,040,169
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 1,605,183
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.4)% (28,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $56,645,352
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
36
Statement of
ASSETS AND LIABILITIES November 30, 2003 (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $79,549,484, $42,148,055
and $95,316,854, respectively) $84,085,558 $43,571,461 $96,906,770
Cash 25,812 298,040 1,338,864
Receivables:
Interest 1,532,758 676,797 1,613,561
Investments sold -- -- --
Other assets 8,789 2,932 994
------------------------------------------------------------------------------------------------------------------------------------
Total assets 85,652,917 44,549,230 99,860,189
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Payable for investments purchased 1,163,261 -- 1,214,561
Accrued expenses:
Management fees 44,755 12,687 26,490
Other 26,082 28,429 27,411
Preferred share dividends payable 2,169 -- 356
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,236,267 41,116 1,268,818
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 27,800,000 15,000,000 33,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $56,616,650 $29,508,114 $65,591,371
====================================================================================================================================
Common shares outstanding 3,783,292 1,958,689 4,552,881
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.96 $ 15.07 $ 14.41
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 37,833 $ 19,587 $ 45,529
Paid-in surplus 52,346,960 27,718,936 64,248,345
Undistributed (Over-distribution of) net investment income 674,670 317,752 (150,608)
Accumulated net realized gain (loss) from investments (978,887) 28,433 (141,811)
Net unrealized appreciation of investments 4,536,074 1,423,406 1,589,916
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $56,616,650 $29,508,114 $65,591,371
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
37
Statement of
ASSETS AND LIABILITIES November 30, 2003 (Unaudited) (continued)
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 market value (cost $124,022,837, $47,607,488,
$80,264,505 and $81,362,496, respectively) $132,157,633 $49,636,367 $84,450,492 $83,040,169
Cash 1,345,829 969,222 -- 281,071
Receivables:
Interest 2,464,170 871,424 1,336,188 1,376,257
Investments sold 6,120,000 -- -- --
Other assets 9,890 6,922 4,549 807
------------------------------------------------------------------------------------------------------------------------------------
Total assets 142,097,522 51,483,935 85,791,229 84,698,304
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 224,349 --
Payable for investments purchased -- -- -- --
Accrued expenses:
Management fees 75,157 14,673 24,395 22,759
Other 43,166 27,703 21,047 26,280
Preferred share dividends payable 3,843 568 -- 3,913
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 122,166 42,944 269,791 52,952
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 46,800,000 17,000,000 28,000,000 28,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 95,175,356 $34,440,991 $57,521,438 $56,645,352
====================================================================================================================================
Common shares outstanding 6,314,708 2,244,675 3,733,347 3,921,063
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.07 $ 15.34 $ 15.41 $ 14.45
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 63,147 $ 22,447 $ 37,333 $ 39,211
Paid-in surplus 87,217,017 31,792,501 52,926,603 55,323,978
Undistributed (Over-distribution of) net investment income 1,103,972 433,498 268,017 (63,528)
Accumulated net realized gain (loss) from investments (1,343,576) 163,666 103,498 (331,982)
Net unrealized appreciation of investments 8,134,796 2,028,879 4,185,987 1,677,673
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 95,175,356 $34,440,991 $57,521,438 $56,645,352
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
38
Statement of
OPERATIONS Six Months Ended November 30, 2003 (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $2,204,725 $1,068,502 $2,241,679
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 272,101 143,403 317,523
Preferred shares - auction fees 34,845 18,801 41,363
Preferred shares - dividend disbursing agent fees 5,014 5,014 5,014
Shareholders' servicing agent fees and expenses 3,927 301 406
Custodian's fees and expenses 8,421 4,553 12,101
Trustees' fees and expenses 1,026 515 582
Professional fees 5,224 4,299 6,937
Shareholders' reports - printing and mailing expenses 8,768 2,527 5,500
Stock exchange listing fees 67 40 326
Investor relations expense 5,577 2,640 5,815
Other expenses 4,991 4,851 2,447
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 349,961 186,944 398,014
Custodian fee credit (1,645) (1,764) (3,306)
Expense reimbursement -- (66,186) (156,319)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 348,316 118,994 238,389
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 1,856,409 949,508 2,003,290
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments (187,298) (70) (251,289)
Change in net unrealized appreciation (depreciation) of investments (1,405,256) (1,137,105) (2,559,409)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (1,592,554) (1,137,175) (2,810,698)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (94,011) (53,040) (109,261)
From accumulated net realized gains from investments -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (94,011) (53,040) (109,261)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 169,844 $ (240,707) $ (916,669)
====================================================================================================================================
See accompanying notes to financial statements.
39
Statement of
OPERATIONS Six Months Ended November 30, 2003 (Unaudited) (continued)
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $3,626,986 $1,227,793 $1,981,673 $1,959,884
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 457,978 165,934 275,991 272,701
Preferred shares - auction fees 58,661 21,309 35,096 35,096
Preferred shares - dividend disbursing agent fees 5,014 5,014 5,014 5,014
Shareholders' servicing agent fees and expenses 7,871 242 325 162
Custodian's fees and expenses 18,146 6,078 10,243 11,765
Trustees' fees and expenses 1,751 774 703 1,248
Professional fees 6,152 5,515 4,860 7,023
Shareholders' reports - printing and mailing expenses 11,867 3,540 6,220 6,066
Stock exchange listing fees 5,573 35 43 328
Investor relations expense 9,419 3,144 4,718 5,454
Other expenses 5,651 3,815 5,193 2,192
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 588,083 215,400 348,406 347,049
Custodian fee credit (3,943) (2,617) (1,442) (3,222)
Expense reimbursement -- (76,585) (127,380) (134,253)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 584,140 136,198 219,584 209,574
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,042,846 1,091,595 1,762,089 1,750,310
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 772,294 7,100 (9,109) (362,655)
Change in net unrealized appreciation (depreciation) of investments (3,559,314) (1,235,950) (2,214,299) (1,694,727)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (2,787,020) (1,228,850) (2,223,408) (2,057,382)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (178,204) (39,388) (102,497) (123,078)
From accumulated net realized gains from investments -- (6,283) -- (3,013)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (178,204) (45,671) (102,497) (126,091)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 77,622 $ (182,926) $ (563,816) $ (433,163)
====================================================================================================================================
See accompanying notes to financial statements.
40
Statement of
CHANGES IN NET ASSETS (Unaudited)
GEORGIA
GEORGIA GEORGIA DIVIDEND
PREMIUM INCOME (NPG) DIVIDEND ADVANTAGE (NZX) ADVANTAGE 2 (NKG)
---------------------------- --------------------------- ----------------------------
FOR THE
PERIOD 9/25/02
SIX MONTHS SIX MONTHS SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED ENDED YEAR ENDED ENDED OF OPERATIONS)
11/30/03 5/31/03 11/30/03 5/31/03 11/30/03 THROUGH 5/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,856,409 $ 3,638,676 $ 949,508 $ 1,870,728 $ 2,003,290 $ 2,114,510
Net realized gain (loss) from
investments (187,298) 920,606 (70) 660,108 (251,289) 109,478
Change in net unrealized
appreciation (depreciation)
of investments (1,405,256) 2,936,582 (1,137,105) 2,587,026 (2,559,409) 4,149,325
Distributions to Preferred
Shareholders:
From net investment income (94,011) (258,111) (53,040) (127,078) (109,261) (195,435)
From accumulated net realized
gains from investments -- -- -- (35,847) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 169,844 7,237,753 (240,707) 4,954,937 (916,669) 6,177,878
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,684,498) (3,254,832) (845,951) (1,579,528) (1,830,109) (2,133,603)
From accumulated net realized gains
from investment transactions -- -- -- (250,165) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,684,498) (3,254,832) (845,951) (1,829,693) (1,830,109) (2,133,603)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 3,771 -- -- 64,899,300
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 81,319 157,705 16,382 15,101 21,282 63,231
Preferred shares offering costs -- -- (1,871) 54,759 (8,214) (782,000)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 81,319 157,705 18,282 69,860 13,068 64,180,531
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (1,433,335) 4,140,626 (1,068,376) 3,195,104 (2,733,710) 68,224,806
Net assets applicable to Common
shares at the beginning
of period 58,049,985 53,909,359 30,576,490 27,381,386 68,325,081 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $56,616,650 $58,049,985 $29,508,114 $30,576,490 $65,591,371 $68,325,081
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 674,670 $ 596,770 $ 317,752 $ 267,235 $ (150,608) $ (214,528)
====================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
NORTH CAROLINA NORTH CAROLINA
PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
----------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/03 5/31/03 11/30/03 5/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,042,846 $ 6,171,387 $ 1,091,595 $ 2,230,155
Net realized gain (loss) from investments 772,294 900,218 7,100 554,560
Change in net unrealized appreciation
(depreciation) of investments (3,559,314) 7,102,237 (1,235,950) 2,922,001
Distributions to Preferred Shareholders:
From net investment income (178,204) (455,407) (39,388) (137,647)
From accumulated net realized gains
from investments -- -- (6,283) (39,141)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 77,622 13,718,435 (182,926) 5,529,928
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,793,070) (5,417,766) (1,009,705) (1,930,686)
From accumulated net realized gains
from investment transactions -- -- -- (293,381)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,793,070) (5,417,766) (1,009,705) (2,224,067)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 1,664 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 105,669 198,718 40,854 112,298
Preferred shares offering costs -- -- -- 24,922
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 105,669 198,718 42,518 137,220
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,609,779) 8,499,387 (1,150,113) 3,443,081
Net assets applicable to Common
shares at the beginning of period 97,785,135 89,285,748 35,591,104 32,148,023
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $95,175,356 $97,785,135 $34,440,991 $35,591,104
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 1,103,972 $ 1,032,400 $ 433,498 $ 391,574
====================================================================================================================================
See accompanying notes to financial statements.
42
NORTH CAROLINA NORTH CAROLINA
DIVIDEND ADVANTAGE 2 (NNO) DIVIDEND ADVANTAGE 3 (NII)
----------------------------- ----------------------------
FOR THE
PERIOD 9/25/02
SIX MONTHS SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED ENDED OF OPERATIONS)
11/30/03 5/31/03 11/30/03 THROUGH 5/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,762,089 $ 3,526,406 $ 1,750,310 $ 1,900,802
Net realized gain (loss) from investments (9,109) 713,547 (362,655) 30,673
Change in net unrealized appreciation
(depreciation) of investments (2,214,299) 5,899,711 (1,694,727) 3,372,400
Distributions to Preferred Shareholders:
From net investment income (102,497) (273,894) (123,078) (174,006)
From accumulated net realized gains
from investments -- (71,543) (3,013) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (563,816) 9,794,227 (433,163) 5,129,869
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,573,415) (3,067,763) (1,576,152) (1,838,391)
From accumulated net realized gains
from investment transactions -- (482,556) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from distributions
to Common shareholders (1,573,415) (3,550,319) (1,576,152) (1,838,391)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares 2,456 -- -- 55,929,188
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 14,313 4,123 12,353 10,977
Preferred shares offering costs -- 10,548 (11,104) (678,500)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 16,769 14,671 1,249 55,261,665
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,120,462) 6,258,579 (2,008,066) 58,553,143
Net assets applicable to Common
shares at the beginning of period 59,641,900 53,383,321 58,653,418 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $57,521,438 $59,641,900 $56,645,352 $58,653,418
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 268,017 $ 181,840 $ (63,528) $ (111,595)
====================================================================================================================================
See accompanying notes to financial statements.
43
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (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). 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 American Stock Exchange while Common shares of North
Carolina Premium Income (NNC) is traded on the New York Stock Exchange. The
Funds are registered under the Investment Company Act of 1940, as amended, as
closed-end management investment companies.
Prior to the commencement of operations of Georgia Dividend Advantage 2 (NKG)
and North Carolina Dividend Advantage 3 (NII), each Fund had no operations other
than those related to organizational matters, the initial capital contribution
of $100,275 per Fund by Nuveen Advisory Corp. (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments, Inc. (formerly, The John Nuveen Company), and
the recording of the organization expenses ($11,500 per Fund) and their
reimbursement by Nuveen Investments, LLC, also a wholly owned subsidiary of
Nuveen Investments, Inc.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers, evaluations of anticipated
cash flows or collateral and general market conditions. If it is determined that
market prices for a security are unavailable or inappropriate, the Board of
Trustees of the Funds, or its designee, may establish a fair value for the
security. Temporary investments in securities that have variable rate and demand
features qualifying them as short-term securities are valued at amortized cost,
which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At November 30, 2003,
Georgia Premium Income (NPG) and Georgia Dividend Advantage 2 (NKG) had
outstanding when-issued purchase commitments of $1,163,261 and $1,214,561,
respectively. There were no such outstanding purchase commitments in any of the
other 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.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax-exempt status when distributed
to shareholders of the Funds.
44
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 not less frequently than 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 accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one Series. The dividend rate on each
Series may change every seven days, as set pursuant to a dutch auction process
by the auction agent, and is payable at or near the end of each rate period. 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 -- 600 -- -- -- -- --
Series T -- -- -- -- 680 -- --
Series W -- -- -- -- -- -- 1,120
Series TH 1,112 -- -- 1,872 -- -- --
Series F -- -- 1,320 -- -- 1,120 --
=========================================================================================================
Effective November 15, 2002, Georgia Dividend Advantage 2 (NKG) issued 1,320
Series F, $25,000 stated value Preferred shares. Effective November 15, 2002,
North Carolina Dividend Advantage 3 (NII) issued 1,120 Series W, $25,000 stated
value Preferred shares.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended November 30, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for Georgia Dividend
Advantage 2 (NKG) and North Carolina Dividend Advantage 3 (NII). Georgia
Dividend Advantage 2's (NKG) and North Carolina Dividend Advantage 3's (NII)
share of Common share offering costs ($136,200 and $117,375, respectively) were
recorded as a reduction of the proceeds from the sale of Common shares.
Costs incurred by Georgia Dividend Advantage 2 (NKG) and North Carolina Dividend
Advantage 3 (NII) in connection with their offering of Preferred shares
($790,214 and $689,604, respectively) were recorded as a reduction to paid-in
surplus.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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.
45
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
GEORGIA GEORGIA DIVIDEND GEORGIA DIVIDEND
PREMIUM INCOME (NPG) ADVANTAGE (NZX) ADVANTAGE 2 (NKG)
----------------------- ---------------------- -----------------------------
FOR THE
PERIOD 9/25/02
SIX MONTHS SIX MONTHS SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED ENDED YEAR ENDED ENDED OF OPERATIONS)
11/30/03 5/31/03 11/30/03 5/31/03 11/30/03 THROUGH 5/31/03
---------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- 4,540,000
Shares issued to shareholders
due to reinvestment of
distributions 5,118 9,788 1,087 1,266 1,464 4,417
---------------------------------------------------------------------------------------------------------------
5,118 9,788 1,087 1,266 1,464 4,544,417
===============================================================================================================
Preferred shares sold -- -- -- -- -- 1,320
===============================================================================================================
NORTH CAROLINA NORTH CAROLINA
PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
---------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/03 5/31/03 11/30/03 5/31/03
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 6,435 12,357 2,548 7,322
---------------------------------------------------------------------------------------------------------
6,435 12,357 2,548 7,322
=========================================================================================================
Preferred shares sold -- -- -- --
=========================================================================================================
NORTH CAROLINA NORTH CAROLINA
DIVIDEND DIVIDEND
ADVANTAGE 2 (NNO) ADVANTAGE 3 (NII)
---------------------- -----------------------------
FOR THE
PERIOD 9/25/02
SIX MONTHS SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED ENDED OF OPERATIONS)
11/30/03 5/31/03 11/30/03 THROUGH 5/31/03
---------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 3,912,500
Shares issued to shareholders
due to reinvestment of
distributions 923 424 828 735
---------------------------------------------------------------------------------------------------------------
923 424 828 3,913,235
===============================================================================================================
Preferred shares sold -- -- -- 1,120
===============================================================================================================
46
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the six months ended November 30, 2003, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Purchases $5,765,514 $ -- $8,291,517
Sales and maturities 5,157,387 5,000 7,334,881
================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
--------------------------------------------------------------------------------
Purchases $ 5,794,858 $3,986,269 $1,047,460 $ 9,972,378
Sales and maturities 11,455,000 4,546,918 262,265 10,349,663
================================================================================
4. 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 income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At November 30, 2003, the cost of investments were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Cost of investments $79,506,047 $42,148,055 $95,316,755
================================================================================
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 $123,974,306 $47,606,765 $80,259,426 $81,362,496
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2003, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $4,787,168 $1,467,546 $1,854,407
Depreciation (207,657) (44,140) (264,392)
--------------------------------------------------------------------------------
Net unrealized appreciation
of investments $4,579,511 $1,423,406 $1,590,015
================================================================================
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 $8,302,268 $2,036,956 $4,201,055 $1,834,046
Depreciation (118,941) (7,354) (9,989) (156,373)
--------------------------------------------------------------------------------
Net unrealized appreciation
of investments $8,183,327 $2,029,602 $4,191,066 $1,677,673
================================================================================
47
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax components of undistributed net investment income and net realized gains
at May 31, 2003, the Funds' last fiscal year end, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Undistributed net tax-exempt income $810,588 $404,728 $ 93,758
Undistributed net ordinary income * 25,456 -- 109,478
Undistributed net long-term
capital gains -- 28,502 --
================================================================================
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 $1,383,598 $556,745 $436,225 $153,360
Undistributed net ordinary income * 14,680 66,536 76,010 30,673
Undistributed net long-term
capital gains -- 95,735 36,751 --
==========================================================================================
* 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 fiscal year ended May 31,
2003, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
2003 (NPG) (NZX) (NKG)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $3,506,728 $1,701,839 $2,020,705
Distributions from net ordinary income * -- 212,091 --
Distributions from net long-term capital gains -- 73,921 --
=========================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2003 (NNC) (NRB) (NNO) (NII)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $5,826,633 $2,058,342 $3,348,540 $1,747,442
Distributions from net ordinary income * 22,385 -- 554,099 --
Distributions from net long-term capital gains -- 332,522 -- --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
48
At May 31, 2003, the Funds' last fiscal 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:
NORTH
GEORGIA CAROLINA
PREMIUM PREMIUM
INCOME INCOME
(NPG) (NNC)
--------------------------------------------------------------------------------
Expiration year:
2004 $320,996 $1,137,399
2005 340,685 131,993
2006 -- --
2007 -- --
2008 129,908 108,131
2009 -- 731,398
2010 -- --
--------------------------------------------------------------------------------
Total $791,589 $2,108,921
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Georgia Premium Income's (NPG) and North Carolina Premium Income's (NNC)
investment management agreements with the Adviser, each Fund pays an annual
management fee, payable monthly, at the rates set forth below, which are based
upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Georgia Dividend Advantage's (NZX), Georgia Dividend Advantage 2's (NKG),
North Carolina Dividend Advantage's (NRB), North Carolina Dividend Advantage 2's
(NNO) and North Carolina Dividend Advantage 3's (NII) investment management
agreements with the Adviser, each Fund pays an annual management fee, payable
monthly, at the rates set forth below, which are based upon the average daily
net assets (including net assets attributable to Preferred shares) of each Fund
as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
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 their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
49
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 (including net assets attributable to Preferred shares), 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 (including net
assets attributable to Preferred shares), 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 its 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 (including net assets attributable to Preferred shares), 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.
50
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 (including net assets attributable to Preferred
shares), for fees and expenses in the amounts and for the time periods set forth
below:
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.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 30, 2003, to shareholders of
record on December 15, 2003, 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 $.0755 $.0730 $.0670 $.0745 $.0765 $.0720 $.0670
=========================================================================================================
At the same time, the following Funds declared capital gains and net ordinary
income distributions as follows:
NORTH NORTH NORTH
GEORGIA GEORGIA GEORGIA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPG) (NZX) (NKG) (NRB) (NNO) (NII)
---------------------------------------------------------------------------------------------------------
Capital gains distributions
per share $ -- $.0136 $ -- $.0433 $.0093 $ --
Net ordinary income distributions
per share* .0063 -- .0218 .0280 .0192 .0071
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
51
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- ----------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
GEORGIA PREMIUM INCOME (NPG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $15.36 $ .49 $ (.42) $(.02) $-- $ .05 $(.45) $-- $(.45)
2003 14.31 .96 1.02 (.07) -- 1.91 (.86) -- (.86)
2002 14.15 1.02 .11 (.12) -- 1.01 (.85) -- (.85)
2001 12.80 1.06 1.35 (.26) -- 2.15 (.80) -- (.80)
2000 14.45 1.03 (1.65) (.23) -- (.85) (.80) -- (.80)
1999 14.58 1.01 (.13) (.21) -- .67 (.80) -- (.80)
GEORGIA DIVIDEND ADVANTAGE (NZX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 15.62 .48 (.57) (.03) -- (.12) (.43) -- (.43)
2003 14.00 .96 1.65 (.06) (.02) 2.53 (.81) (.13) (.94)
2002(a) 14.33 .58 (.19) (.06) -- .33 (.47) -- (.47)
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 15.01 .44 (.62) (.02) -- (.20) (.40) -- (.40)
2003(b) 14.33 .47 .92 (.04) -- 1.35 (.47) -- (.47)
====================================================================================================================================
Total Returns
-----------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
================================================================================
GEORGIA PREMIUM INCOME (NPG)
--------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $-- $14.96 $16.1000 (2.30)% .38%
2003 -- 15.36 16.9500 12.92 13.78
2002 -- 14.31 15.8300 8.98 7.32
2001 -- 14.15 15.3500 30.41 16.98
2000 -- 12.80 12.4375 (18.84) (5.87)
1999 -- 14.45 16.2500 13.42 4.64
GEORGIA DIVIDEND ADVANTAGE (NZX)
--------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) -- 15.07 15.1500 .01 (.67)
2003 .03 15.62 15.5900 12.56 18.82
2002(a) (.19) 14.00 14.7400 1.42 1.02
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
--------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) -- 14.41 13.6800 (6.02) (1.23)
2003(b) (.20) 15.01 14.9800 3.16 8.22
================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===================================================================================================================
GEORGIA PREMIUM INCOME (NPG)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $56,617 1.25%* 6.62%* 1.24%* 6.62%* 6%
2003 58,050 1.29 6.53 1.26 6.55 22
2002 53,909 1.37 7.12 1.35 7.13 37
2001 53,168 1.41 7.67 1.40 7.68 15
2000 47,991 1.43 7.73 1.40 7.76 17
1999 54,022 1.34 6.87 1.33 6.88 14
GEORGIA DIVIDEND ADVANTAGE (NZX)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 29,508 1.28* 6.04* .82* 6.50* --
2003 30,576 1.31 6.00 .83 6.49 48
2002(a) 27,381 1.37* 5.70* .92* 6.16* 60
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
-------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 65,591 1.23* 5.69* .74* 6.18* 8
2003(b) 68,325 1.16* 4.36* .69* 4.84* 17
===================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
==========================================================
GEORGIA PREMIUM INCOME (NPG)
----------------------------------------------------------
Year Ended 5/31:
2004(d) $27,800 $25,000 $75,914
2003 27,800 25,000 77,203
2002 27,800 25,000 73,480
2001 27,800 25,000 72,813
2000 27,800 25,000 68,157
1999 27,800 25,000 73,581
GEORGIA DIVIDEND ADVANTAGE (NZX)
----------------------------------------------------------
Year Ended 5/31:
2004(d) 15,000 25,000 74,180
2003 15,000 25,000 75,961
2002(a) 15,000 25,000 70,636
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
----------------------------------------------------------
Year Ended 5/31:
2004(d) 33,000 25,000 74,690
2003(b) 33,000 25,000 76,761
==========================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period September 25, 2001 (commencement of operations) through May
31, 2002.
(b) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
(d) For the six months ended November 30, 2003.
See accompanying notes to financial statements.
52-53 spread
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 Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NORTH CAROLINA PREMIUM INCOME (NNC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $15.50 $ .48 $ (.44) $(.03) $-- $ .01 $(.44) $-- $(.44)
2003 14.18 .98 1.27 (.07) -- 2.18 (.86) -- (.86)
2002 13.94 1.02 .15 (.13) -- 1.04 (.80) -- (.80)
2001 12.62 1.03 1.31 (.27) -- 2.07 (.75) -- (.75)
2000 14.28 1.02 (1.61) (.26) -- (.85) (.81) -- (.81)
1999 14.48 1.02 (.22) (.21) -- .59 (.79) -- (.79)
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 15.87 .49 (.55) (.02) -- (.08) (.45) -- (.45)
2003 14.39 1.00 1.54 (.06) (.02) 2.46 (.86) (.13) (.99)
2002 13.90 1.06 .38 (.13) -- 1.31 (.82) -- (.82)
2001(a) 14.33 .25 (.26) (.05) -- (.06) (.20) -- (.20)
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 15.98 .47 (.59) (.03) -- (.15) (.42) -- (.42)
2003 14.30 .94 1.78 (.07) (.02) 2.63 (.82) (.13) (.95)
2002(b) 14.33 .38 .11 (.04) -- .45 (.34) -- (.34)
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 14.96 .45 (.53) (.03) -- (.11) (.40) -- (.40)
2003(c) 14.33 .49 .87 (.05) -- 1.31 (.47) -- (.47)
====================================================================================================================================
Total Returns
-----------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===================================================================================
NORTH CAROLINA PREMIUM INCOME (NNC)
-----------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $-- $15.07 $16.6300 .81% .15%
2003 -- 15.50 16.9500 10.27 15.80
2002 -- 14.18 16.2100 15.44 7.62
2001 -- 13.94 14.8000 14.03 16.65
2000 -- 12.62 13.6875 (7.76) (5.98)
1999 -- 14.28 15.6875 9.87 4.11
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
-----------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) -- 15.34 16.3500 2.30 (.43)
2003 .01 15.87 16.4500 13.52 17.75
2002 -- 14.39 15.4400 7.54 9.58
2001(a) (.17) 13.90 15.1500 2.42 (1.57)
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
-----------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) -- 15.41 15.7000 1.03 (.86)
2003 -- 15.98 15.9700 14.10 18.98
2002(b) (.14) 14.30 14.9000 1.64 2.22
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
-----------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) -- 14.45 14.6500 (.95) (.64)
2003(c) (.21) 14.96 15.2000 4.56 7.86
===================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
=========================================================================================================================
NORTH CAROLINA PREMIUM INCOME (NNC)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $95,175 1.24%* 6.42%* 1.23%* 6.43%* 4%
2003 97,785 1.27 6.60 1.25 6.62 16
2002 89,286 1.33 7.17 1.32 7.18 22
2001 87,614 1.34 7.47 1.30 7.51 19
2000 79,167 1.37 7.81 1.35 7.83 25
1999 89,377 1.30 6.97 1.30 6.97 8
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 34,441 1.26* 5.93* .80* 6.39* 8
2003 35,591 1.30 6.16 .83 6.62 39
2002 32,148 1.44 6.86 .90 7.40 37
2001(a) 31,015 1.31* 5.02* .85* 5.48* 29
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 57,521 1.22* 5.72* .77* 6.18* --
2003 59,642 1.24 5.80 .76 6.27 22
2002(b) 53,383 1.19* 4.70* .74* 5.15* 43
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 56,645 1.24* 5.76* .75* 6.25* 12
2003(c) 58,653 1.18* 4.61* .71* 5.08* 3
=========================================================================================================================
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:
2004(d) $46,800 $25,000 $75,842
2003 46,800 25,000 77,236
2002 46,800 25,000 72,695
2001 46,800 25,000 71,802
2000 46,800 25,000 67,290
1999 46,800 25,000 72,744
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
---------------------------------------------------------------
Year Ended 5/31:
2004(d) 17,000 25,000 75,649
2003 17,000 25,000 77,340
2002 17,000 25,000 72,277
2001(a) 17,000 25,000 70,610
NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
---------------------------------------------------------------
Year Ended 5/31:
2004(d) 28,000 25,000 76,358
2003 28,000 25,000 78,252
2002(b) 28,000 25,000 72,664
NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
---------------------------------------------------------------
Year Ended 5/31:
2004(d) 28,000 25,000 75,576
2003(c) 28,000 25,000 77,369
===============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period January 25, 2001 (commencement of operations) through May
31, 2001.
(b) For the period November 15, 2001 (commencement of operations) through May
31, 2002.
(c) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
(d) For the six months ended November 30, 2003.
See accompanying notes to financial statements.
54-55 spread
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded 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 dividends 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
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can 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 participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
56
Fund
INFORMATION
BOARD OF TRUSTEES
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
Anne E. Impellizzeri
William L. Kissick
Thomas E. Leafstrand
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Shelia W. Wellington
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
GLOSSARY OF TERMS USED IN THIS REPORT
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 (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (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.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
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.
---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended November 30, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
57
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.
Managing $90 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
ESA-C-1103D
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. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable to this filing.
ITEM 10. 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 registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. 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
because posted on registrant's website at www.nuveen.com/etf.
(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: 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
at this time.
(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. 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 Georgia Dividend Advantage Municipal Fund 2
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: February 4, 2004
-------------------------------------------------------------------
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 4, 2004
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: February 4, 2004
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.