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
---------------------
Nuveen Georgia Dividend Advantage Municipal Fund 2
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: May 31
------------------
Date of reporting period: November 30, 2005
------------------
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, 2005
Nuveen Investments
Municipal Exchange-Traded
Closed-End 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
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
I am pleased to report that over the six-month period covered by this report
your Fund continued to provide you with attractive monthly tax-free income. For
more details about the management strategy and performance of your Fund, please
see the Portfolio Manager's Comments and Performance Overview sections of this
report.
As we enter a new year, many are trying to determine how to best position their
investments to take advantage of the opportunities that may lie ahead. Nobody
knows what the market will do in the future or what investments will turn out to
be tomorrow's best performers. But from our experience, we do know that a
well-balanced portfolio, structured and carefully monitored with the help of a
trusted investment professional, can be an important component in helping you
achieve your long-term financial goals. fact, a well-diversified portfolio may
actually help to reduce your overall investment risk over the long term. That is
one reason why we believe that a municipal bond investment like your Fund can be
an important building block in a comprehensive investment program designed to
perform well in a variety of market conditions.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
As an added convenience for you, I urge you to consider receiving future Fund
reports and other Fund information by e-mail and the Internet. Not only will you
be able to receive the information faster, but this also may help lower your
Fund's expenses. Sign up is quick and easy - see the inside front cover of this
report for instructions.
As we noted in our last shareholder report, The St. Paul Travelers Companies,
Inc., which had owned 79% of Nuveen Investments, Inc. (the parent of your Fund's
investment adviser), had sold a substantial portion of its stake in Nuveen.
Since then, St. Paul has sold the balance of its shares to Nuveen Investments or
to others. Please be assured that these transactions only affected Nuveen's
corporate structure, and they do not have any impact on the investment
objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and 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 17, 2006
Nuveen Investments Georgia and North Carolina Municipal Exchange-Traded
Closed-End Funds (NPG, NZX, NKG, NNC, NRB, NNO, NII)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves discusses key investment strategies and the
six-month performance of these seven Funds. Cathryn, who joined Nuveen in 1996,
has managed the Funds since 2004.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE GEORGIA AND NORTH CAROLINA FUNDS
DURING THE SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2005?
Over this period, shorter-term interest rates rose faster than longer-term
rates. As a result, bond valuations generally declined and the yield curve
flattened, meaning shorter-term rates approached the levels of longer-term
rates. In this environment, one of our key strategies continued to be careful
duration management. (Duration is a measure of a bond's price sensitivity as
interest rates change, with longer duration bonds displaying more sensitivity to
these changes than bonds with shorter durations.)
To help us maintain the Funds' durations within our desired range, we
selectively sold holdings with shorter durations, including pre-refunded bonds.
When we sold these shorter duration bonds, we tried to reinvest the proceeds
further out on the yield curve by looking for the most attractive opportunities
and the best values. Often this led us to bonds that mature in 25 to 30 years,
although we did find some issues that mature in 10 to 15 years.
In NZX, NKG, NNO and NII, our duration management strategies also included the
use of forward interest rate swaps, a type of derivative financial instrument.
As discussed in our last shareholder report, we began using these swaps in late
2004 in an effort to reduce the interest rate risk in these Funds. These hedges
were not an attempt to profit from correctly predicting the timing and direction
of interest rate movements. Instead, our sole objective was to reduce the
duration (and the resulting price sensitivity) of these Funds without having a
negative impact on their income streams or common share dividends over the short
term. This hedging strategy was effective in achieving the intended goal of
helping to reduce net asset value (NAV) volatility in NZX, and we removed the
hedge prior to the end of the reporting period. The hedges on NKG, NNO and NII
remained in place as of November 30, 2005. During this reporting period, the
hedges had a positive impact on the performance of these three Funds. As
long-term interest rates rose, the value of the hedges increased while
valuations of the Funds' holdings generally declined.
4
In addition to duration management, we continued to maintain weightings of bonds
rated BBB or lower. However, lower-rated credits generally performed well during
this period. New issue supply of lower-rated credits was limited and yield
spreads were narrow. As a result there were fewer attractive opportunities to
purchase additional lower-rated bonds for these Funds at attractive prices. In
Georgia, most of the additions to our Funds were insured or higher-rated bonds,
including those issued by Atlanta Water and Sewer were purchased for all three
Georgia Funds, and by Savannah Economic Development Authority for Armstrong
Center, which were added to NPG and NZX. We also took advantage of the greater
issuance of healthcare bonds in the North Carolina market to make some
attractive purchases in that sector. In general, the increase in Georgia and
North Carolina municipal supply during this period helped us to further
diversify the Funds' portfolios.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as for relevant indexes and group
averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 11/30/05
6- MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
GEORGIA FUNDS
--------------------------------------------------------------------------------
NPG -0.77% 4.77% 7.43% 6.56%
--------------------------------------------------------------------------------
NZX -0.49% 4.72% NA NA
--------------------------------------------------------------------------------
NKG -0.67% 4.95% NA NA
--------------------------------------------------------------------------------
NORTH CAROLINA FUNDS
--------------------------------------------------------------------------------
NNC -0.48% 4.30% 7.51% 6.69%
--------------------------------------------------------------------------------
NRB 0.19% 5.40% NA NA
--------------------------------------------------------------------------------
NNO -0.45% 4.58% NA NA
--------------------------------------------------------------------------------
NII -0.10% 5.53% NA NA
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index1 0.36% 3.88% 5.93% 5.73%
--------------------------------------------------------------------------------
Lipper Other States
Municipal Debt Funds
Average2 -0.17% 5.49% 7.76% 6.43%
--------------------------------------------------------------------------------
*Six-month returns are cumulative returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
1 The Lehman Brothers Municipal Bond Index is 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 Lipper Other States Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 6 months, 43 funds; 1 year, 43 funds; 5 years,
18 funds; and 10 years, 18 funds. Fund and Lipper returns assume
reinvestment of dividends.
5
For the six months ended November 30, 2005, the cumulative returns on NAV for
these seven Funds underperformed the return on the Lehman Brothers Municipal
Bond Index. However, each Fund outperformed the index over the most recent
12-month period. NRB and NII exceeded the average return for the Lipper Other
States peer group, over the six month time frame, while NPG, NZX, NKG, NNC, and
NNO trailed this group average. Please keep in mind that the Lipper Other States
average represents the overall average of returns for funds from 10 different
states displaying a variety of economic and municipal market conditions. We
believe that makes direct comparisons between the returns of specific state
funds with a multi-state group average less meaningful.
One of the factors affecting the Funds' six-month performance relative to that
of the unleveraged Lehman Brothers index was the Funds' use of financial
leverage. While leveraging provides opportunities for additional income and
total returns for common shareholders when interest rates fall or remain
consistently low (as has been the case over the past several years), this
benefit is reduced when interest rates rise. With the increase in both
short-term and long-term rates over this six-month period, the decline in value
of the bonds in these Funds' portfolios was exacerbated by the effect of
leveraging. In addition, the extent of the leverage benefit is tied in part to
the short-term rates the Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, leveraged Funds generally pay lower dividends
to their MuniPreferred shareholders, which can leave more earnings to support
common share dividends. When short-term interest rates rise, as they did during
this reporting period, the Funds' borrowing costs also rise, impacting the
Funds' expenses, income streams and total returns. However, we remain convinced
that leveraging is likely to benefit the performance of these Funds over the
long term.
During this reporting period, all of the Funds benefited from their allocations
of lower-quality credits, as bonds rated BBB or lower generally outperformed
other credit quality sectors. As of November 30, 2005, the Georgia Funds had BBB
and sub-investment grade weightings of between 8% and 12%, while the North
Carolina Funds' allocations of BBB and non-rated bonds ranged from 3% to 8%.
Among the lower-rated bonds making contributions to the Funds' cumulative
returns for this period were industrial development, housing, and hospital
credits, as these sectors ranked as the top three performers among the Lehman
Brothers municipal revenue sectors for the period.
6
Also contributing to the Funds' returns were tobacco bonds backed by the 1998
master tobacco settlement agreement, as the litigation environment improved and
supply/demand dynamics drove tobacco bond prices higher. As of November 30,
2005, NPG and NKG held 1.3% and 2.1% of their portfolios, respectively, in
tobacco bonds, while NII had allocated 2.4% of its portfolio to these securites.
During this period, NRB benefited from the pre-refunding of a large position in
bonds issued by Broad River Water Authority, which accounted for approximately
3% of the Fund. NII also held a small position (less than 1%) in these bonds.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
NOVEMBER 30, 2005?
As of November 30, 2005, all seven of these Funds continued to offer excellent
credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA
ranging from 78% to 93%. Potential call exposure for the period from December
2005 through the end of 2007 ranged from zero in NKG to 3% in NZX and NNO, 8% in
NPG, 11% in NII and NNC, and 12% in NRB. The number of actual bond calls in all
of these Funds depends largely on future market interest rates.
7
Dividend and Share Price
INFORMATION
As noted, all seven of these Funds use leverage to potentially enhance
opportunities for additional income for common shareholders. During periods of
rising short-term interest rates, as was the case during this reporting period,
leveraging expenses increase. This resulted in a single monthly dividend
reduction in NPG, NRB and NNO over the six-month period ended November 30, 2005.
The dividends of NZX, NKG, NNC and NII remained stable throughout this reporting
period. (On December 1, 2005, NPG and NNC announced monthly dividend
reductions.)
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of November 30, 2005, NPG,
NZX, NNC, NRB and NNO had positive UNII balances for both financial statement
and tax purposes. NKG and NII had positive UNII balances for tax purposes and
negative UNII balances for financial statement purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
11/30/05 6-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NPG +1.16% +7.30%
--------------------------------------------------------------------------------
NZX +10.21% +8.96%
--------------------------------------------------------------------------------
NKG -6.73% -4.99%
--------------------------------------------------------------------------------
NNC -1.23% +9.02%
--------------------------------------------------------------------------------
NRB +12.37% +11.57%
--------------------------------------------------------------------------------
NNO +2.92% +5.38%
--------------------------------------------------------------------------------
NII -3.13% +1.24%
--------------------------------------------------------------------------------
8
Nuveen Georgia Premium Income Municipal Fund
NPG
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 68%
AA 14%
A 10%
BBB 7%
BB or Lower 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0755
Jan 0.0755
Feb 0.0755
Mar 0.0725
Apr 0.0725
May 0.0725
Jun 0.069
Jul 0.069
Aug 0.069
Sep 0.066
Oct 0.066
Nov 0.066
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 16.4
16.65
16.44
16.65
16.98
17.02
16.91
16.61
16.52
16.51
16.57
16.43
16.38
16.15
16.16
16.17
16.24
16.19
16.29
16.28
16.25
16.38
16.47
16.47
17.15
17.2
17.09
17.28
16.51
16.43
16.45
16.44
16.56
16.69
16.66
16.68
16.56
16.85
16.8
16.79
16.82
16.81
16.97
17.1
17.35
17.28
17
17.65
17.53
17.42
17.16
17.1
17.1
17.18
17.18
17.18
17.6
17.7
17.54
17.43
17.35
17.15
17.2
16.9
17.2
17.1
16.95
16.7
16.38
16.15
16.08
16.02
15.76
15.76
15.65
15.6
15.6
15.01
15.25
15.19
15.12
15.12
15.3
15.36
15.54
15.53
15.45
15.45
15.45
15.38
15.64
15.35
15.4
15.51
15.51
15.62
15.65
15.55
15.5
15.54
15.55
15.55
15.65
15.78
15.78
15.66
15.52
15.71
15.72
15.77
15.64
15.94
15.82
15.76
15.76
15.69
15.94
16.17
16.47
16.41
16.23
16.5
16.5
16.5
16.52
16.7
16.94
16.99
17.28
17.14
16.91
16.93
16.95
16.95
16.74
16.78
16.75
16.74
16.9
16.9
16.85
16.85
16.85
16.95
16.77
16.8
16.69
16.75
16.81
16.84
16.8
16.45
16.54
16.54
16.54
16.93
16.88
16.63
16.62
16.86
16.86
16.86
16.86
16.79
16.75
16.75
16.42
16.47
16.47
16.47
16.6
16.56
16.5
16.8
16.32
16.3
16.23
16.26
16.25
15.94
16.05
16.09
15.96
16
15.95
15.74
15.77
15.76
15.65
15.74
15.78
15.66
15.95
16.01
16.3
15.95
15.95
16.03
16.22
16.22
16.31
16.12
15.88
15.7
15.6
15.59
15.44
15.33
15.14
15.36
15.36
15.43
15.5
15.5
15.58
15.8
15.59
15.8
15.56
15.77
15.7
15.63
15.63
16.05
16.01
16.01
15.9
15.88
15.88
15.79
15.8
15.8
15.85
16.05
16.1
16.1
16.1
15.8
15.33
15.37
15.46
15.45
15.3
15.23
15.23
15.1
14.8
14.63
14.5
14.55
14.45
14.45
14.8
14.8
11/30/05 14.84
FUND SNAPSHOT
------------------------------------
Common Share Price $14.84
------------------------------------
Common Share
Net Asset Value $14.67
------------------------------------
Premium/(Discount) to NAV 1.16%
------------------------------------
Market Yield 5.34%
------------------------------------
Taxable-Equivalent Yield1 7.91%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $55,766
------------------------------------
Average Effective Maturity
on Securities (Years) 18.37
------------------------------------
Leverage-Adjusted Duration 8.53
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -8.85% -0.77%
------------------------------------
1-Year -5.02% 4.77%
------------------------------------
5-Year 6.92% 7.43%
------------------------------------
10-Year 7.92% 6.56%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 22.5%
------------------------------------
Water and Sewer 17.8%
------------------------------------
Education and Civic
Organizations 14.8%
------------------------------------
Tax Obligation/Limited 13.5%
------------------------------------
Utilities 7.5%
------------------------------------
Tax Obligation/General 7.0%
------------------------------------
Housing/Single Family 4.8%
------------------------------------
Other 12.1%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2004 of $0.0049 per share.
9
Nuveen Georgia Dividend Advantage Municipal Fund
NZX
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 72%
AA 10%
A 6%
BBB 11%
BB or Lower 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Aug 0.073
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.
12/1/04 15.1
15.1
15.14
15.4
15.6
15.36
15.33
15.35
15.37
15.38
15.45
15.41
15.4
15.66
15.78
15.84
15.84
15.84
15.55
15.41
15.43
15.47
15.53
15.57
15.64
15.85
15.85
15.6
15.75
15.71
15.79
15.91
15.93
16.35
16.5
16.45
16.4
16.5
16.8
16.62
16.53
16.42
16.14
16.13
16.3
16.35
16.35
16.95
16.75
16.94
16.68
16.68
16.52
16.19
16.07
15.86
15.81
15.84
15.83
15.8
15.8
15.85
15.81
15.7
15.48
15.47
15.37
15.22
15.04
14.75
14.55
14.59
14.66
14.74
14.65
14.66
14.69
14.63
14.66
14.5
14.5
14.52
14.57
14.78
14.78
14.75
14.63
14.63
14.64
14.84
14.85
14.7
14.64
14.68
14.99
14.89
14.98
14.95
14.99
15.08
15.18
15.36
15.26
15.36
15.36
15.45
15.5
15.39
15.32
15.3
15.24
15.3
15.5
15.55
15.4
15.4
15.47
15.64
15.6
15.89
16
15.98
15.82
16
15.72
15.89
16.21
16.3
16.3
16.5
16.5
16.41
16.65
16.5
16.37
16.19
16.17
16.16
16.15
16
15.99
16.06
16.06
16
16.01
16.05
16.17
16.9
16.9
16.45
16.35
16.4
16.34
16.34
16.34
16.37
16.37
16.31
16.35
16.32
16.35
16.7
16.7
16.95
16.8
17.25
17.22
17.1
17.1
16.92
17.02
17.11
16.94
16.6
16.55
16.5
16.67
16.95
16.57
16.4
16
16.07
16
16.29
16.39
16.32
16.32
16.52
16.52
16.45
16.45
16.55
16.42
16.75
16.74
16.6
16.9
16.9
16.9
16.9
16.92
16.34
16.34
16.34
16.71
16.71
16.66
16.42
16.19
16.19
16.42
16.41
16.8
16.72
16.66
16.73
16.73
16.6
16.64
16.7
16.52
16.44
16.58
16.49
16.5
16.6
16.6
16.6
16.6
16.6
16.66
16.7
16.6
16.46
16.46
16.46
16.5
16.41
16.14
16.29
16.35
16.09
16
15.99
16.15
16.2
16.3
16.3
16.19
16.14
16.14
16.14
16.24
16.24
11/30/05 16.3
FUND SNAPSHOT
------------------------------------
Common Share Price $16.30
------------------------------------
Common Share
Net Asset Value $14.79
------------------------------------
Premium/(Discount) to NAV 10.21%
------------------------------------
Market Yield 5.37%
------------------------------------
Taxable-Equivalent Yield1 7.96%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $29,045
------------------------------------
Average Effective Maturity
on Securities (Years) 15.94
------------------------------------
Leverage-Adjusted Duration 8.75
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.31% -0.49%
------------------------------------
1-Year 12.61% 4.72%
------------------------------------
Since
Inception 7.94% 6.78%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 20.2%
------------------------------------
Healthcare 19.0%
------------------------------------
Water and Sewer 12.5%
------------------------------------
Utilities 10.9%
------------------------------------
Tax Obligation/General 6.3%
------------------------------------
Housing/Single Family 6.3%
------------------------------------
Housing/Multifamily 5.7%
------------------------------------
U.S. Guaranteed 5.2%
------------------------------------
Other 13.9%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0083 per share.
10
Nuveen Georgia Dividend Advantage Municipal Fund 2
NKG
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 14%
A 2%
BBB 7%
BB or Lower 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.065
Jan 0.065
Feb 0.065
Mar 0.062
Apr 0.062
May 0.062
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.059
Oct 0.059
Nov 0.059
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 13.57
13.34
13.62
13.67
13.5
13.47
13.55
13.67
13.56
13.38
13.59
13.45
13.3
13.54
13.45
13.29
13.44
13.44
13.33
13.38
13.31
13.37
13.5
13.86
13.97
13.97
14.03
14.08
14.07
14.01
14.1
14.3
14.19
14.4
14.5
14.35
14.15
14.27
14.28
14.28
14.29
14.31
14.38
14.5
14.53
14.5
14.51
14.79
14.9
14.5
14.42
14.5
14.97
14.64
14.57
14.48
14.33
14.12
14.29
14.34
14.3
14.6
14.5
14.37
14.35
14.17
13.99
13.85
13.81
13.69
13.72
13.76
13.69
13.62
13.54
13.57
13.69
13.54
13.56
13.72
13.85
13.85
14
14.28
14.11
13.5
13.75
13.8
13.9
14
14
13.69
13.68
13.8
13.81
13.8
13.73
13.52
13.41
13.58
13.58
13.76
13.68
13.75
13.75
13.79
13.75
13.78
13.62
13.67
13.7
13.58
13.64
13.68
13.94
13.92
13.99
13.99
13.7
13.76
13.85
14
14.06
13.94
13.91
14.18
14.19
14.05
14.24
14.22
14.25
14.25
13.92
14.05
14.09
13.83
13.89
13.94
13.91
13.81
13.8
13.99
13.95
13.99
14.03
14.03
14.01
14.08
14.08
14.25
14.25
14.21
14.1
14.1
13.99
14.1
14.11
14.09
13.9
13.94
13.9
14
13.95
13.99
13.92
13.97
14.09
14.02
14.02
14.09
13.96
14.09
14
14
13.93
13.8
13.84
13.82
13.79
13.8
13.99
14.05
13.92
13.92
13.81
13.93
13.96
13.85
13.85
13.96
13.99
13.95
14.02
14.02
14.05
14.05
14.08
14.09
13.91
14.02
14
13.84
13.78
13.84
13.97
13.9
13.9
13.9
13.59
13.79
14.04
13.95
13.9
13.81
13.81
13.71
13.82
13.86
13.85
13.88
13.89
13.72
13.61
13.54
13.54
13.54
13.54
13.6
13.6
13.39
13.35
13.45
13.4
13.33
13.5
13.43
13.47
13.33
13.25
13.23
13.26
13.25
13.36
13.35
13.34
13.34
13.29
13.28
13.35
13.19
13.29
13.29
13.4
13.2
11/30/05 13.3
FUND SNAPSHOT
------------------------------------
Common Share Price $13.30
------------------------------------
Common Share
Net Asset Value $14.26
------------------------------------
Premium/(Discount) to NAV -6.73%
------------------------------------
Market Yield 5.32%
------------------------------------
Taxable-Equivalent Yield1 7.88%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $64,926
------------------------------------
Average Effective Maturity
on Securities (Years) 19.34
------------------------------------
Leverage-Adjusted Duration 7.92
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -3.78% -0.67%
------------------------------------
1-Year 3.15% 4.95%
------------------------------------
Since
Inception 1.66% 5.29%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 21.7%
------------------------------------
Water and Sewer 18.0%
------------------------------------
Healthcare 17.7%
------------------------------------
Education and Civic
Organizations 13.4%
------------------------------------
Utilities 6.6%
------------------------------------
Tax Obligation/General 6.3%
------------------------------------
Transportation 4.0%
------------------------------------
Other 12.3%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
11
Nuveen North Carolina Premium Income Municipal Fund
NNC
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 45%
AA 33%
A 15%
BBB 6%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.0715
Apr 0.0715
May 0.0715
Jun 0.068
Jul 0.068
Aug 0.068
Sep 0.068
Oct 0.068
Nov 0.068
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 16.31
16.3
16.37
16.35
16.33
16.49
16.47
16.43
16.9
16.75
16.71
16.98
16.95
16.84
17.15
17.06
17.4
17.49
17.28
17.39
17.52
17.45
17.36
17.39
17.28
16.94
16.85
16.81
16.67
16.95
16.9
16.64
16.71
16.86
16.95
16.72
16.64
16.68
16.85
16.85
16.91
17.17
17.2
17.31
17.18
17.2
17.45
17.49
17.4
17.03
16.97
16.95
17.29
17.2
17.4
17.4
17.3
17.3
17.2
17.45
17.28
17.4
17.5
17.1
17.2
17.18
17.2
17.09
16.95
16.89
17.05
17.3
17.3
17.15
16.78
16.4
16.69
16.35
16.1
16
16.2
16.2
16.4
16.57
16.55
16.3
16.15
16.25
15.9
16
16.25
16.17
16
16.2
16.13
16.27
16.34
16.3
16.31
16.35
16.42
16.33
16.4
16.55
16.55
16.75
16.9
16.81
16.91
16.9
16.9
17
16.98
16.98
16.95
17
17
17.13
17.3
17.21
17.03
16.97
17.23
17.33
17.29
17.2
17.24
17.28
17.2
17.33
17.48
17.1
17.09
17.15
17.07
17.35
17.25
17.22
17.11
17
16.79
16.88
16.7
16.65
16.9
16.74
16.82
16.67
16.62
16.65
16.55
16.52
16.51
16.7
16.69
16.69
16.85
16.88
16.91
16.56
16.52
16.52
16.52
16.8
16.77
16.65
16.69
16.51
16.51
16.71
16.6
16.44
16.54
16.54
16.42
16.5
16.55
16.47
16.48
16.46
16.47
16.55
16.45
16.75
16.51
16.55
16.54
16.83
16.94
16.98
17.2
16.91
16.88
16.99
16.75
16.8
16.9
17
16.7
16.69
16.65
16.61
16.65
16.71
16.52
16.55
16.45
16.45
16
15.83
15.96
16.1
16.01
16.09
16.24
16.16
16.18
16.2
16.2
16.11
16
15.7
15.7
15.5
15.44
15.48
15.48
15.55
15.67
15.66
15.5
15.55
15.69
15.53
15.47
15.22
15.2
15.2
15.2
15.23
15.26
15.2
15.1
15.1
15.14
15
15.06
14.96
14.67
14.56
14.18
14.2
14.75
14.58
11/30/05 14.5
FUND SNAPSHOT
------------------------------------
Common Share Price $14.50
------------------------------------
Common Share
Net Asset Value $14.68
------------------------------------
Premium/(Discount) to NAV -1.23%
------------------------------------
Market Yield 5.63%
------------------------------------
Taxable-Equivalent Yield1 8.53%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $93,047
------------------------------------
Average Effective Maturity
on Securities (Years) 15.98
------------------------------------
Leverage-Adjusted Duration 8.01
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -13.53% -0.48%
------------------------------------
1-Year -6.85% 4.30%
------------------------------------
5-Year 6.65% 7.51%
------------------------------------
10-Year 7.50% 6.69%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 20.3%
------------------------------------
Education and Civic
Organizations 18.2%
------------------------------------
Healthcare 14.9%
------------------------------------
U.S. Guaranteed 8.8%
------------------------------------
Utilities 7.8%
------------------------------------
Housing/Single Family 6.1%
------------------------------------
Tax Obligation/General 5.9%
------------------------------------
Water and Sewer 5.0%
------------------------------------
Other 13.0%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
12
Nuveen North Carolina Dividend Advantage Municipal Fund
NRB
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 48%
AA 35%
A 9%
BBB 6%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0765
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Jul 0.0765
Aug 0.0765
Sep 0.0735
Oct 0.0735
Nov 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 16.31
16.44
16.45
16.54
16.54
16.58
16.41
16.5
16.5
16.46
16.43
16.4
16.6
16.6
16.7
16.7
16.76
16.76
16.67
16.75
16.68
16.65
16.7
16.84
16.69
16.8
16.76
16.7
17
17
17.05
16.83
16.83
16.83
16.83
16.8
16.8
16.8
16.9
16.83
16.88
16.8
16.9
16.86
16.73
16.65
16.88
17.05
17.05
17.05
17.05
17.02
17.12
16.92
16.84
16.77
16.72
16.75
16.63
17
17.1
17
16.92
16.86
16.86
16.86
16.86
17.05
17.05
17.05
17
16.96
16.86
16.62
16.86
16.75
16.55
16.55
16.7
16.7
16.44
16.44
16.45
16.31
16.55
16.65
16.5
16.43
16.43
16.55
16.55
16.5
16.49
16.49
16.62
16.62
16.53
16.5
16.5
16.5
16.95
16.74
16.75
17.03
17.03
17.22
17.22
17.23
17.23
16.8
16.8
16.95
16.8
16.73
16.56
16.73
16.88
16.7
17.2
17.08
16.82
17.05
16.84
16.86
16.85
17.25
17.25
17.27
17.15
17.04
17.04
17.05
17.19
17.2
17.25
17.4
17.17
17.05
17.05
17.1
17.3
17.24
17.45
17.33
17.3
17.32
17.3
17.21
17.46
17.85
17.41
17.8
17.61
17.4
17.46
17.59
17.4
17.56
17.41
17.35
17.39
17.8
17.75
17.28
17.35
17.37
17.37
17.46
17.46
17.38
17.6
17.6
17.61
17.68
17.75
17.75
17.7
17.49
17.49
17.49
17.37
17.57
17.59
17.63
17.5
17.7
17.89
17.75
17.86
18.34
18.34
17.9
17.83
17.83
17.83
17.78
17.46
17.5
17.5
17.72
17.96
17.94
17.83
17.63
17.38
17.38
17.08
17.08
16.85
16.54
16.52
16.35
16.36
16.25
16.5
16.54
16.6
16.6
16.44
16.4
16.26
15.74
15.65
15.84
16.09
16.2
16.2
16.3
16.06
16.33
16.2
16.05
15.92
16.07
15.9
16.05
16.35
16.15
16.06
16.25
16.3
16.38
16.38
16.1
16.25
16.2
16.32
16.4
16.4
16.5
16.45
16.45
16.6
16.96
11/30/05 16.9
FUND SNAPSHOT
------------------------------------
Common Share Price $16.90
------------------------------------
Common Share
Net Asset Value $15.04
------------------------------------
Premium/(Discount) to NAV 12.37%
------------------------------------
Market Yield 5.22%
------------------------------------
Taxable-Equivalent Yield1 7.91%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $33,901
------------------------------------
Average Effective Maturity
on Securities (Years) 15.58
------------------------------------
Leverage-Adjusted Duration 7.31
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 0.60% 0.19%
------------------------------------
1-Year 8.40% 5.40%
------------------------------------
Since
Inception 8.46% 7.24%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 18.1%
------------------------------------
Tax Obligation/Limited 16.4%
------------------------------------
Utilities 14.0%
------------------------------------
Healthcare 14.0%
------------------------------------
Water and Sewer 13.5%
------------------------------------
Housing/Multifamily 4.6%
------------------------------------
Tax Obligation/General 4.2%
------------------------------------
Transportation 4.2%
------------------------------------
Other 11.0%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
13
Nuveen North Carolina Dividend Advantage Municipal Fund 2
NNO
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 58%
AA 28%
A 11%
BBB 2%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.072
Apr 0.072
May 0.072
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.0685
Oct 0.0685
Nov 0.0685
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 16.22
16.26
16.33
16.4
16.28
16.33
16.29
16.29
16.1
16
16.09
15.95
16
16.24
16.15
16.06
15.9
15.85
15.85
15.78
15.87
15.78
15.8
15.92
15.84
15.82
15.81
15.82
15.93
15.78
15.85
15.85
15.9
16.25
16.34
16.26
16.52
16.57
16.52
16.55
16.4
16.3
16.38
16.47
16.44
16.28
16.33
16.22
16.27
16.27
16.27
16.24
16.27
16.25
16.16
15.92
15.78
15.77
15.85
15.89
15.9
15.93
15.93
16.25
16.14
16.35
16.29
16.35
16.35
16.4
16.49
16.49
16.35
16.22
16.25
16.1
16.05
16
15.8
15.9
15.69
15.69
15.75
15.97
15.75
15.74
15.96
15.98
15.9
16.2
16.3
16.15
16.15
16.2
16.2
16.11
15.6
15.67
15.65
15.71
15.62
15.74
15.66
15.56
15.56
15.6
15.65
15.66
15.65
15.65
15.87
16
15.95
16.04
16.04
16.15
16.25
16.44
16.4
16.31
16.32
16.33
16.33
16.13
16.08
16.25
16.1
16.2
16.2
16.28
16.31
16.25
16.25
16.25
16.28
16.29
16.34
16.3
16.3
16.25
16.4
16.4
16.6
16.6
16.6
16.2
16.38
16.25
16.13
16.37
16.49
16.4
16.33
16.52
16.6
16.65
16.6
16.43
16.29
16.3
16.16
16.24
16.3
16.33
16.45
16.78
16.93
17.15
17.15
17.16
17.03
16.95
17.01
16.9
16.88
16.88
16.74
16.67
16.41
16.3
16.45
16.5
16.44
16.4
16.6
16.48
16.42
16.34
16.4
16.5
16.65
16.5
16.52
16.63
16.66
16.73
16.55
16.55
16.7
16.73
16.74
16.71
16.69
16.69
16.6
16.43
16.25
16
15.67
15.35
15.4
15.41
15.48
15.49
15.5
15.61
15.59
15.52
15.59
15.6
15.52
15.44
15.48
15.37
15.34
15.75
15.66
15.59
15.6
15.65
15.6
15.61
15.61
15.5
15.39
15.5
15.45
15.35
15.41
15.41
15.41
15.55
15.75
15.5
15.76
15.75
15.74
15.76
15.59
15.59
15.55
15.43
15.45
15.45
11/30/05 15.5
FUND SNAPSHOT
------------------------------------
Common Share Price $15.50
------------------------------------
Common Share
Net Asset Value $15.06
------------------------------------
Premium/(Discount) to NAV 2.92%
------------------------------------
Market Yield 5.30%
------------------------------------
Taxable-Equivalent Yield1 8.03%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,373
------------------------------------
Average Effective Maturity
on Securities (Years) 15.11
------------------------------------
Leverage-Adjusted Duration 7.72
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -2.08% -0.45%
------------------------------------
1-Year 1.79% 4.58%
------------------------------------
Since
Inception 6.64% 7.23%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.0%
------------------------------------
Education and Civic
Organizations 19.5%
------------------------------------
Healthcare 14.5%
------------------------------------
Transportation 11.5%
------------------------------------
Water and Sewer 9.6%
------------------------------------
Utilities 8.7%
------------------------------------
U.S. Guaranteed 6.2%
------------------------------------
Other 8.0%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0698 per share.
14
Nuveen North Carolina Dividend Advantage Municipal Fund 3
NII
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 69%
AA 24%
A 2%
BBB 5%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.064
Apr 0.064
May 0.064
Jun 0.061
Jul 0.061
Aug 0.061
Sep 0.061
Oct 0.061
Nov 0.061
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 14.82
14.7
15
15.19
14.98
15
15.03
14.9
14.66
14.7
15.15
15.04
15.15
15.07
15.07
15.22
15.15
15.06
14.87
14.96
14.95
14.95
14.97
15.1
15.4
15.3
14.81
14.85
14.9
14.82
14.85
14.83
15.02
15.1
15.35
15.51
15.4
15.3
15.18
15.1
15.35
15.37
15.3
15.29
15.2
15.29
15.28
15.05
15.03
15.03
15.03
15.01
15.07
14.97
14.64
14.56
14.79
14.67
14.71
14.82
14.97
14.91
15.1
15.15
15.24
15.33
15.4
15.17
15.1
15.01
15.02
14.92
14.74
14.8
14.64
14.35
14.29
14.17
14.1
13.75
13.8
13.91
14.21
14.51
14.54
14.51
14.59
15
14.94
15.08
15.01
15.03
15
14.92
15.15
15.2
15.2
15.05
14.95
15
14.95
14.96
15.05
14.98
14.98
14.97
14.89
14.85
14.84
14.75
14.9
14.9
14.9
14.75
14.88
14.85
14.8
14.98
14.9
15.07
15.1
15.07
15.3
15.25
15.35
15.4
15.32
15.3
15.3
15.44
15.35
15.09
15.09
15.03
15.03
14.8
14.76
14.61
14.78
14.98
14.86
14.77
14.8
14.96
14.93
14.96
14.96
14.97
15.1
15.09
14.96
14.9
14.8
15.2
15.15
14.97
14.92
14.92
14.92
14.81
14.77
14.8
14.66
14.75
14.89
15
15.1
14.9
14.9
14.95
15.14
14.97
15.2
14.73
14.68
14.69
14.9
14.9
14.81
14.83
14.76
14.53
14.65
14.56
14.63
14.76
14.83
14.72
14.98
15.35
15.25
14.89
15.15
15.15
15.13
15.15
14.91
14.93
14.93
15.3
15.06
14.92
14.54
14.68
14.64
14.92
14.77
14.77
14.78
14.62
14.75
14.77
14.88
14.92
14.95
15.19
15.16
15.01
15.06
14.89
14.89
14.43
14.57
14.3
14.12
14.13
14.53
14.53
14.58
14.85
14.78
14.8
14.81
14.61
14.56
14.75
14.72
14.73
14.62
14.69
14.7
14.54
14.5
14.5
14.35
14.29
14.35
14.2
14.02
13.98
14
14
13.94
14
11/30/05 13.95
FUND SNAPSHOT
------------------------------------
Common Share Price $13.95
------------------------------------
Common Share
Net Asset Value $14.40
------------------------------------
Premium/(Discount) to NAV -3.13%
------------------------------------
Market Yield 5.25%
------------------------------------
Taxable-Equivalent Yield1 7.95%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,562
------------------------------------
Average Effective Maturity
on Securities (Years) 16.39
------------------------------------
Leverage-Adjusted Duration 7.03
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -7.15% -0.10%
------------------------------------
1-Year -1.16% 5.53%
------------------------------------
Since
Inception 2.93% 5.61%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 20.0%
------------------------------------
Water and Sewer 17.0%
------------------------------------
Tax Obligation/General 12.6%
------------------------------------
Education and Civic
Organizations 10.2%
------------------------------------
Utilities 10.1%
------------------------------------
Healthcare 8.7%
------------------------------------
U.S. Guaranteed 7.4%
------------------------------------
Transportation 6.2%
------------------------------------
Other 7.8%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
15
Shareholder
MEETING REPORT
Approval of the new investment management agreement was the proposal voted upon
at the July 26, 2005 shareholder meeting held at The Northern Trust Bank.
Approval of the Board Members was the proposal voted upon at the November 15,
2005 shareholder meeting held at the offices of Nuveen Investments.
NPG NZX NKG
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting
together together together
as a class as a class as a class
====================================================================================================================================
For 3,524,327 1,868,739 4,364,747
Against 24,783 37,221 33,433
Abstain 26,218 5,586 72,714
------------------------------------------------------------------------------------------------------------------------------------
Total 3,575,328 1,911,546 4,470,894
====================================================================================================================================
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
====================================================================================================================================
Robert P. Bremner
For 3,516,395 -- 1,896,473 -- 4,261,636 --
Withhold 12,665 -- 4,635 -- 154,868 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,529,060 -- 1,901,108 -- 4,416,504 --
====================================================================================================================================
Lawrence H. Brown
For 3,512,979 -- 1,896,473 -- 4,258,236 --
Withhold 16,081 -- 4,635 -- 158,268 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,529,060 -- 1,901,108 -- 4,416,504 --
====================================================================================================================================
Jack B. Evans
For 3,516,495 -- 1,896,473 -- 4,261,636 --
Withhold 12,565 -- 4,635 -- 154,868 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,529,060 -- 1,901,108 -- 4,416,504 --
====================================================================================================================================
William C. Hunter
For 3,516,395 -- 1,896,473 -- 4,261,636 --
Withhold 12,665 -- 4,635 -- 154,868 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,529,060 -- 1,901,108 -- 4,416,504 --
====================================================================================================================================
David J. Kundert
For 3,516,391 -- 1,896,473 -- 4,261,636 --
Withhold 12,669 -- 4,635 -- 154,868 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,529,060 -- 1,901,108 -- 4,416,504 --
====================================================================================================================================
William J. Schneider
For -- 1,041 -- 600 -- 1,296
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,041 -- 600 -- 1,296
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,041 -- 600 -- 1,296
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,041 -- 600 -- 1,296
====================================================================================================================================
Judith M. Stockdale
For 3,512,595 -- 1,893,548 -- 4,261,636 --
Withhold 16,465 -- 7,560 -- 154,868 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,529,060 -- 1,901,108 -- 4,416,504 --
====================================================================================================================================
Eugene S. Sunshine
For 3,516,395 -- 1,896,473 -- 4,261,636 --
Withhold 12,665 -- 4,635 -- 154,868 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,529,060 -- 1,901,108 -- 4,416,504 --
====================================================================================================================================
16
NNC NRB NNO
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting
together together together
as a class as a class as a class
====================================================================================================================================
For 5,885,160 2,182,953 3,628,724
Against 28,742 7,136 29,119
Abstain 50,825 44,281 43,402
------------------------------------------------------------------------------------------------------------------------------------
Total 5,964,727 2,234,370 3,701,245
====================================================================================================================================
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
====================================================================================================================================
Robert P. Bremner
For 5,883,705 -- 2,204,564 -- 3,655,277 --
Withhold 38,755 -- 28,084 -- 32,985 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,922,460 -- 2,232,648 -- 3,688,262 --
====================================================================================================================================
Lawrence H. Brown
For 5,883,645 -- 2,204,866 -- 3,654,777 --
Withhold 38,815 -- 27,782 -- 33,485 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,922,460 -- 2,232,648 -- 3,688,262 --
====================================================================================================================================
Jack B. Evans
For 5,884,145 -- 2,207,744 -- 3,657,277 --
Withhold 38,315 -- 24,904 -- 30,985 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,922,460 -- 2,232,648 -- 3,688,262 --
====================================================================================================================================
William C. Hunter
For 5,885,805 -- 2,207,414 -- 3,659,877 --
Withhold 36,655 -- 25,234 -- 28,385 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,922,460 -- 2,232,648 -- 3,688,262 --
====================================================================================================================================
David J. Kundert
For 5,884,145 -- 2,207,414 -- 3,657,277 --
Withhold 38,315 -- 25,234 -- 30,985 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,922,460 -- 2,232,648 -- 3,688,262 --
====================================================================================================================================
William J. Schneider
For -- 1,829 -- 605 -- 1,047
Withhold -- 1 -- 5 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,830 -- 610 -- 1,047
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,829 -- 605 -- 1,047
Withhold -- 1 -- 5 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,830 -- 610 -- 1,047
====================================================================================================================================
Judith M. Stockdale
For 5,882,705 -- 2,206,714 -- 3,654,718 --
Withhold 39,755 -- 25,934 -- 33,544 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,922,460 -- 2,232,648 -- 3,688,262 --
====================================================================================================================================
Eugene S. Sunshine
For 5,882,505 -- 2,207,414 -- 3,657,271 --
Withhold 39,955 -- 25,234 -- 30,991 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,922,460 -- 2,232,648 -- 3,688,262 --
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NII
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and
MuniPreferred
shares voting
together
as a class
====================================================================================================================================
For 3,857,378
Against 13,114
Abstain 24,161
------------------------------------------------------------------------------------------------------------------------------------
Total 3,894,653
====================================================================================================================================
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
====================================================================================================================================
Robert P. Bremner
For 3,868,653 --
Withhold 24,118 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,892,771 --
====================================================================================================================================
Lawrence H. Brown
For 3,867,653 --
Withhold 25,118 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,892,771 --
====================================================================================================================================
Jack B. Evans
For 3,868,253 --
Withhold 24,518 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,892,771 --
====================================================================================================================================
William C. Hunter
For 3,868,653 --
Withhold 24,118 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,892,771 --
====================================================================================================================================
David J. Kundert
For 3,868,253 --
Withhold 24,518 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,892,771 --
====================================================================================================================================
William J. Schneider
For -- 1,086
Withhold -- 4
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,090
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,086
Withhold -- 4
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,090
====================================================================================================================================
Judith M. Stockdale
For 3,867,196 --
Withhold 25,575 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,892,771 --
====================================================================================================================================
Eugene S. Sunshine
For 3,867,453 --
Withhold 25,318 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,892,771 --
====================================================================================================================================
18
Nuveen Georgia Premium Income Municipal Fund (NPG)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.5% (3.9% OF TOTAL INVESTMENTS)
$ 2,000 Cartersville Development Authority, Georgia, Water and 5/07 at 101.00 A+ $ 2,059,960
Wastewater Facilities Revenue Refunding Bonds, Anheuser
Busch Companies Inc., Series 1997, 6.125%, 5/01/27
(Alternative Minimum Tax)
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 999,210
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.8% (14.8% OF TOTAL INVESTMENTS)
1,000 Athens-Clarke County Unified Government Development 12/12 at 100.00 AAA 1,068,860
Authority, Georgia, Educational Facilities Revenue Bonds,
UGAREF CCRC Building LLC Project, Series 2002,
5.000%, 12/15/16 - 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 1,236,475
1,375 5.750%, 12/01/25 - MBIA Insured 12/05 at 102.00 AAA 1,404,879
1,550 Bulloch County Development Authority, Georgia, Student 8/14 at 100.00 Aaa 1,661,910
Housing and Athletic Facility Lease Revenue Bonds, Georgia
Southern University, Series 2004, 5.250%, 8/01/21 -
XLCA Insured
700 Carrollton Payroll Development Authority, Georgia, Student 9/14 at 100.00 Aaa 730,968
Housing Revenue Bonds, University of West Georgia,
Series 2004A, 5.000%, 9/01/21 - XLCA Insured
1,535 Fulton County Development Authority, Georgia, Revenue 5/14 at 100.00 AAA 1,675,775
Bonds, Georgia Tech Molecular Science Building,
Series 2004, 5.250%, 5/01/15 - MBIA Insured
1,000 Private Colleges and Universities Authority, Georgia, Revenue 9/15 at 100.00 AA 1,076,270
Bonds, Emory University, Series 2005A, 5.000%, 9/01/17
1,500 Savannah Economic Development Authority, Georgia, Revenue 12/15 at 100.00 AAA 1,542,225
Bonds, Armstrong Center LLC, Series 2005A,
5.000%, 12/01/34 - XLCA Insured
1,180 Savannah Economic Development Authority, Georgia, Revenue 7/15 at 100.00 AAA 1,226,881
Bonds, Armstrong Atlantic State University, Compass
Point LLC Project, Series 2005, 5.000%, 7/01/25 -
XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 31.8% (22.5% OF TOTAL INVESTMENTS)
2,300 Chatham County Hospital Authority, Savannah, Georgia, 7/11 at 101.00 A- 2,508,357
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 Revenue 1/12 at 101.00 AAA 2,061,580
Certificates, Athens Regional Medical Center, Series 2002,
5.125%, 1/01/32 - MBIA Insured
900 Coffee County Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 BBB+ 928,359
Coffee County Regional Medical Center, Series 2004,
5.250%, 12/01/22
3,000 Floyd County Hospital Authority, Georgia, Revenue Anticipation 7/12 at 101.00 Aaa 3,128,070
Certificates, Floyd Medical Center Project, Series 2002,
5.200%, 7/01/32 - MBIA Insured
1,090 Floyd County Hospital Authority, Georgia, Revenue Anticipation 7/13 at 101.00 Aaa 1,151,509
Certificates, Floyd Medical Center, Series 2003,
5.000%, 7/01/19 - MBIA Insured
1,750 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 1,798,458
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 2001, 5.500%, 5/15/31
3,750 Gwinnett County Hospital Authority, Georgia, Revenue 2/12 at 102.00 AAA 3,962,625
Anticipation Certificates, Gwinnett Hospital System Inc.
Project, Series 1997B, 5.300%, 9/01/27 - MBIA Insured
1,060 Henry County Hospital Authority, Georgia, Revenue Certificates, 7/14 at 101.00 Aaa 1,122,858
Henry Medical Center, Series 2004, 5.000%, 7/01/20 -
MBIA Insured
1,000 Savannah Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 AA 1,040,010
St. Joseph's/Candler Health System, Series 2003,
5.250%, 7/01/23 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.7% (1.9% OF TOTAL INVESTMENTS)
1,500 Marietta Housing Authority, Georgia, GNMA Collateralized 10/06 at 102.00 AA 1,530,465
Multifamily Housing Revenue Bonds, Country Oaks
Apartments, Series 1996, 6.150%, 10/20/26 (Alternative
Minimum Tax)
19
Nuveen Georgia Premium Income Municipal Fund (NPG) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.8% (4.8% OF TOTAL INVESTMENTS)
$ 2,795 Georgia Housing and Finance Authority, Single Family Mortgage 12/10 at 100.00 AAA $ 2,873,064
Resolution 1 Bonds, Series 2001A-2, 5.700%, 12/01/31
(Alternative Minimum Tax)
900 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 927,486
Bonds, Series 2002B-2, 5.350%, 12/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.9% (0.8% OF TOTAL INVESTMENTS)
500 Savannah Economic Development Authority, Georgia, Revenue 7/12 at 100.00 AAA 523,610
Bonds, GTREP Project, Series 2002, 5.000%, 7/01/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.3% (2.3% OF TOTAL INVESTMENTS)
750 Effingham County Industrial Development Authority, Georgia, 6/11 at 101.00 Ba2 757,898
Pollution Control Revenue Refunding Bonds, Georgia-Pacific
Project, Series 2001, 6.500%, 6/01/31
1,000 Richmond County Development Authority, Georgia, 2/11 at 101.00 BBB 1,055,110
Environmental Improvement Revenue Bonds, International
Paper Company, Series 2001A, 6.250%, 2/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.8% (7.0% OF TOTAL INVESTMENTS)
1,805 Forsyth County, Georgia, General Obligation Bonds, No Opt. Call AA 1,970,880
Series 2004, 5.250%, 3/01/13
2,500 Georgia, General Obligation Bonds, Series 2002D, 5.000%, 8/01/16 8/12 at 100.00 AAA 2,669,825
800 Puerto Rico, General Obligation and Public Improvement Bonds, 7/14 at 100.00 BBB 834,200
Series 2004A, 5.250%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.0% (13.5% OF TOTAL INVESTMENTS)
3,475 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia, 10/19 at 100.00 AAA 3,992,115
Revenue Refunding Bonds, Series 1993, 5.625%, 10/01/26 -
MBIA Insured
2,000 Cobb-Marietta Coliseum and Exhibit Hall Authority, Cobb 1/14 at 100.00 AAA 2,103,760
County, Georgia, Revenue Bonds, Performing Arts Center,
Series 2004, 5.000%, 1/01/22
2,600 Macon-Bibb County Urban Development Authority, Georgia, 8/12 at 101.00 AA 2,836,054
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 1,186,940
Tax Revenue Refunding Bonds, Series 1992P,
6.250%, 7/01/20 - AMBAC Insured
500 Puerto Rico Infrastructure Financing Authority, Special Tax 7/15 at 100.00 BBB+ 492,050
Revenue Bonds, Series 2005B, 5.000%, 7/01/41
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.3% (3.0% OF TOTAL INVESTMENTS)
2,290 Atlanta, Georgia, Airport General Revenue Bonds, 1/15 at 100.00 AAA 2,375,394
Series 2004G, 5.000%, 1/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 0.2% (0.2% OF TOTAL INVESTMENTS)
25 Georgia Municipal Electric Authority, Senior Lien General 1/17 at 100.00 AAA 28,199
Power Revenue Bonds, Series 1993Z, 5.500%, 1/01/20
(Pre-refunded to 1/01/17) - FGIC Insured
Georgia Municipal Electric Authority, Project One Special
Obligation Bonds, Fifth Crossover Series 1998Y:
85 6.400%, 1/01/09 No Opt. Call A+*** 92,239
10 6.400%, 1/01/09 No Opt. Call A+*** 10,852
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.6% (7.5% OF TOTAL INVESTMENTS)
885 Coweta County Development Authority, Georgia, Revenue Bonds, 1/13 at 100.00 Aaa 949,817
Newnan Water and Sewer, and Light Commission Project,
Series 2002, 5.250%, 1/01/18 - FGIC Insured
1,000 Fairburn, Georgia, Combined Utility Revenue Bonds, 10/10 at 101.00 BBB 1,053,980
Series 2000, 5.750%, 10/01/20
1,655 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ 1,788,641
Obligation Bonds, Fifth Crossover Series 1998Y,
6.400%, 1/01/09
975 Georgia Municipal Electric Authority, Senior Lien General No Opt. Call AAA 1,085,477
Power Revenue Bonds, Series 1993Z, 5.500%, 1/01/20 -
FGIC Insured
1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 AAA 1,046,310
Subordinated Lien Revenue Bonds, Series 2003A,
5.000%, 1/01/22 - MBIA Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 25.2% (17.8% OF TOTAL INVESTMENTS)
Atlanta, Georgia, Water and Wastewater Revenue Bonds,
Series 2004:
$ 1,225 5.000%, 11/01/24 - FSA Insured 11/14 at 100.00 AAA $ 1,279,157
500 5.000%, 11/01/37 - FSA Insured 11/14 at 100.00 AAA 513,925
Augusta, Georgia, Water and Sewerage Revenue Bonds,
Series 2002:
500 5.000%, 10/01/16 - FSA Insured 10/12 at 100.00 AAA 533,845
1,990 5.000%, 10/01/17 - FSA Insured 10/12 at 100.00 AAA 2,107,888
3,500 Coweta County Water and Sewer Authority, Georgia, Revenue 6/11 at 102.00 Aaa 3,745,840
Bonds, Series 2001, 5.250%, 6/01/26 - AMBAC Insured
2,500 DeKalb County, Georgia, Water and Sewerage Revenue Bonds, 10/10 at 101.00 AA 2,580,425
Series 2000, 5.125%, 10/01/31
1,950 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 1/14 at 100.00 AAA 2,048,435
Series 2004, 5.000%, 1/01/22 - FGIC Insured
1,000 Midgeville, Georgia, Water and Sewerage Revenue Refunding No Opt. Call AAA 1,186,370
Bonds, Series 1996, 6.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 74,115 Total Long-Term Investments (cost $75,625,426) - 140.9% 78,565,490
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 9.0% 5,000,760
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (27,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 55,766,250
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
21
Nuveen Georgia Dividend Advantage Municipal Fund (NZX)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 750 DeKalb County Development Authority, Georgia, Pollution 12/12 at 101.00 BB- $ 599,340
Control Revenue Refunding Bonds, General Motors
Corporation Projects, Series 2002, 6.000%, 3/15/21
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.6% (2.4% OF TOTAL INVESTMENTS)
1,000 Cartersville Development Authority, Georgia, Waste and 2/12 at 100.00 A+ 1,054,050
Wastewater Facilities Revenue Refunding Bonds, Anheuser
Busch Cos. Inc. Project, Series 2002, 5.950%, 2/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 30.3% (20.2% OF TOTAL INVESTMENTS)
1,000 Athens Housing Authority, Georgia, Student Housing Lease 12/12 at 100.00 Aaa 1,061,580
Revenue Bonds, UGAREF East Campus Housing LLC Project,
Series 2002, 5.250%, 12/01/21 - AMBAC Insured
1,475 Bulloch County Development Authority, Georgia, Student 8/14 at 100.00 Aaa 1,584,814
Housing and Athletic Facility Lease Revenue Bonds,
Georgia Southern University, Series 2004, 5.250%, 8/01/20 -
XLCA Insured
1,620 Bulloch County Development Authority, Georgia, Student 8/12 at 100.00 Aaa 1,706,362
Housing Lease Revenue Bonds, Georgia Southern University,
Series 2002, 5.000%, 8/01/20 - AMBAC Insured
500 Carrollton Payroll Development Authority, Georgia, Student 9/14 at 100.00 Aaa 522,120
Housing Revenue Bonds, University of West Georgia,
Series 2004A, 5.000%, 9/01/21 - XLCA Insured
1,485 Fulton County Development Authority, Georgia, Revenue Bonds, 4/12 at 100.00 AAA 1,561,537
Georgia Tech Athletic Association, Series 2001,
5.000%, 10/01/20 - AMBAC Insured
1,250 Private Colleges and Universities Authority, Georgia, Revenue 10/11 at 102.00 Baa2 1,308,013
Bonds, Mercer University, Series 2001, 5.750%, 10/01/31
500 Private Colleges and Universities Authority, Georgia, Revenue 9/15 at 100.00 AA 538,135
Bonds, Emory University, Series 2005A, 5.000%, 9/01/17
500 Savannah Economic Development Authority, Georgia, Revenue 12/15 at 100.00 AAA 514,075
Bonds, Armstrong Center LLC, Series 2005A,
5.000%, 12/01/34 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 28.4% (19.0% OF TOTAL INVESTMENTS)
210 Chatham County Hospital Authority, Savannah, Georgia, 7/11 at 101.00 A- 229,024
Hospital Revenue Improvement Bonds, Memorial Health
University Medical Center Inc., Series 2001A, 6.125%, 1/01/24
1,000 Clarke County Hospital Authority, Georgia, Hospital Revenue 1/12 at 101.00 AAA 1,068,030
Certificates, Athens Regional Medical Center, Series 2002,
5.375%, 1/01/19 - MBIA Insured
500 Coffee County Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 BBB+ 515,755
Coffee County Regional Medical Center, Series 2004,
5.250%, 12/01/22
1,250 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 1,284,613
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 2001, 5.500%, 5/15/31
1,900 Gwinnett County Hospital Authority, Georgia, Revenue 2/12 at 102.00 AAA 2,007,730
Anticipation Certificates, Gwinnett Hospital System Inc.
Project, Series 1997B, 5.300%, 9/01/27 - MBIA Insured
500 Henry County Hospital Authority, Georgia, Revenue Certificates, 7/14 at 101.00 Aaa 529,650
Henry Medical Center, Series 2004, 5.000%, 7/01/20 -
MBIA Insured
500 Savannah Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 AA 520,005
St. Joseph's/Candler Health System, Series 2003,
5.250%, 7/01/23 - RAAI Insured
2,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 AAA 2,104,760
Revenue Certificates, South Georgia Medical Center,
Series 2002, 5.250%, 10/01/27 - AMBAC Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.6% (5.7% OF TOTAL INVESTMENTS)
$ 990 DeKalb County Housing Authority, Georgia, GNMA Collateralized 8/11 at 103.00 Aaa $ 1,028,422
Multifamily Housing Revenue Bonds, Castaways Apartments,
Series 2001A, 5.400%, 2/20/29
1,400 Savannah Housing Authority, Georgia, FNMA Multifamily 8/16 at 100.00 Aaa 1,467,074
Housing Revenue Refunding Bonds, Chatham Gardens,
Series 2001, 5.625%, 8/01/31 (Alternative Minimum Tax)
(Mandatory put 2/01/19)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.5% (6.3% OF TOTAL INVESTMENTS)
2,000 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 2,076,280
Resolution 1 Bonds, Series 2002A-2, 5.450%, 12/01/22
(Alternative Minimum Tax)
650 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 669,851
Bonds, Series 2002B-2, 5.350%, 12/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.7% (1.8% OF TOTAL INVESTMENTS)
750 Savannah Economic Development Authority, Georgia, Revenue 7/12 at 100.00 AAA 791,243
Bonds, GTREP Project, Series 2002, 5.000%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.0% (2.0% OF TOTAL INVESTMENTS)
850 Richmond County Development Authority, Georgia, 2/12 at 101.00 BBB 884,773
Environmental Improvement Revenue Refunding Bonds,
International Paper Company, Series 2002A, 6.000%, 2/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.5% (6.3% OF TOTAL INVESTMENTS)
2,000 Georgia, General Obligation Bonds, Series 2002D, 5.000%, 8/01/18 8/12 at 100.00 AAA 2,132,480
595 Puerto Rico, General Obligation and Public Improvement Bonds, 7/14 at 100.00 BBB 620,436
Series 2004A, 5.250%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 5.6% (3.8% OF TOTAL INVESTMENTS)
1,525 Macon-Bibb County Urban Development Authority, Georgia, 8/12 at 101.00 AA 1,638,292
Revenue Refunding Bonds, Public Facilities Projects,
Series 2002A, 5.000%, 8/01/14
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.7% (2.5% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 1,073,240
Series 2000A, 5.400%, 1/01/15 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 7.8% (5.2% OF TOTAL INVESTMENTS)
1,100 Atlanta Development Authority, Georgia, Revenue Bonds, 1/12 at 100.00 AAA 1,179,420
Yamacraw Design Center Project, Series 2001A,
5.125%, 1/01/27 (Pre-refunded to 1/01/12) - MBIA Insured
1,000 Rockdale County Water and Sewerage Authority, Georgia, 1/10 at 101.00 AAA 1,080,850
Revenue Bonds, Series 1999A, 5.375%, 7/01/29
(Pre-refunded to 1/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.3% (10.9% OF TOTAL INVESTMENTS)
1,500 Coweta County Development Authority, Georgia, Revenue 1/13 at 100.00 Aaa 1,609,860
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 11/07 at 100.00 AAA 1,338,750
Revenue Bonds, Series 2002A, 5.250%, 11/01/20 - MBIA Insured
500 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 541,345
Revenue Bonds, Series 2003A, 5.250%, 11/01/15 - MBIA Insured
1,200 Summerville, Georgia, Combined Public Utility System Revenue 1/12 at 101.00 Baa3 1,254,912
Refunding and Improvement Bonds, Series 2002, 5.750%, 1/01/26
23
Nuveen Georgia Dividend Advantage Municipal Fund (NZX) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.8% (12.5% OF TOTAL INVESTMENTS)
$ 1,200 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA $ 1,253,052
Series 2004, 5.000%, 11/01/24 - FSA Insured
2,065 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/12 at 100.00 AAA 2,204,780
Series 2002, 5.000%, 10/01/16 - FSA Insured
500 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 1/14 at 100.00 AAA 525,240
Series 2004, 5.000%, 1/01/22 - FGIC Insured
1,395 Macon Water Authority, Georgia, Water and Sewer Revenue 10/11 at 101.00 AA- 1,466,911
Bonds, Series 2001B, 5.000%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 41,410 Total Long-Term Investments (cost $42,218,920) - 149.9% 43,546,804
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 498,637
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.6)% (15,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 29,045,441
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
See accompanying notes to financial statements.
24
Nuveen Georgia Dividend Advantage Municipal Fund 2 (NKG)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.2% (1.4% OF TOTAL INVESTMENTS)
$ 1,750 DeKalb County Development Authority, Georgia, Pollution Control 12/12 at 101.00 BB- $ 1,398,460
Revenue Refunding Bonds, General Motors Corporation
Projects, Series 2002, 6.000%, 3/15/21
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.1% (2.1% OF TOTAL INVESTMENTS)
2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,998,420
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.0% (13.4% OF TOTAL INVESTMENTS)
1,225 Athens-Clarke County Unified Government Development 12/12 at 100.00 AAA 1,296,736
Authority, Georgia, Educational Facilities Revenue Bonds,
UGAREF CCRC Building LLC Project, Series 2002,
5.000%, 12/15/18 - AMBAC Insured
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 3,598,840
2,500 5.000%, 12/01/33 - AMBAC Insured 12/12 at 100.00 Aaa 2,555,525
1,050 Fulton County Development Authority, Georgia, Revenue 2/12 at 100.00 AAA 1,075,389
Bonds, TUFF 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 2,104,580
Bonds, Georgia Tech - Klaus Parking and Family Housing,
Series 2003, 5.000%, 11/01/23 - MBIA Insured
1,250 Private Colleges and Universities Authority, Georgia, Revenue 10/11 at 102.00 Baa2 1,308,013
Bonds, Mercer University, Series 2001, 5.750%, 10/01/31
1,000 Private Colleges and Universities Authority, Georgia, Revenue 9/15 at 100.00 AA 1,076,270
Bonds, Emory University, Series 2005A, 5.000%, 9/01/17
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 26.5% (17.7% OF TOTAL INVESTMENTS)
Baldwin County Hospital Authority, Georgia, Revenue Bonds,
Oconee Regional Medical Center, Series 1998:
40 5.250%, 12/01/22 12/08 at 102.00 BB+ 36,994
145 5.375%, 12/01/28 12/08 at 102.00 BB+ 133,942
1,000 Chatham County Hospital Authority, Savannah, Georgia, 1/14 at 100.00 A- 1,043,900
Hospital Revenue Bonds, Memorial Health University
Medical Center Inc., Series 2004A, 5.375%, 1/01/26
1,000 Coffee County Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 BBB+ 1,031,510
Coffee County Regional Medical Center, Series 2004,
5.250%, 12/01/22
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 1,540,488
1,000 5.200%, 7/01/32 - MBIA Insured 7/12 at 101.00 Aaa 1,042,690
1,145 Floyd County Hospital Authority, Georgia, Revenue Anticipation 7/13 at 101.00 Aaa 1,207,322
Certificates, Floyd Medical Center, Series 2003,
5.000%, 7/01/20 - MBIA Insured
1,305 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 1,341,135
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 2001, 5.500%, 5/15/31
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 2,440,529
3,020 5.500%, 1/01/20 - MBIA Insured 1/13 at 100.00 Aaa 3,263,170
2,000 Savannah Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 AA 2,080,020
St. Joseph's/Candler Health System, Series 2003,
5.250%, 7/01/23 - RAAI Insured
1,945 Tift County Hospital Authority, Georgia, Revenue Anticipation 12/12 at 101.00 Aaa 2,067,652
Bonds, Tift Regional Medical Center, Series 2002,
5.250%, 12/01/19 - AMBAC Insured
25
Nuveen Georgia Dividend Advantage Municipal Fund 2 (NKG) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.6% (3.1% OF TOTAL INVESTMENTS)
Savannah Economic Development Authority, Georgia, GNMA
Collateralized Multifamily Housing Revenue Bonds, Snap I-II-III
Apartments, Series 2002A:
$ 500 5.150%, 11/20/22 (Alternative Minimum Tax) 11/12 at 102.00 AAA $ 514,430
980 5.200%, 11/20/27 (Alternative Minimum Tax) 11/12 at 102.00 AAA 999,482
1,465 5.250%, 11/20/32 (Alternative Minimum Tax) 11/12 at 102.00 AAA 1,491,722
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.8% (3.2% OF TOTAL INVESTMENTS)
1,330 Georgia Housing and Finance Authority, Single Family Mortgage 6/11 at 100.00 AAA 1,359,739
Resolution 1 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 1,749,470
Mortgage Bonds, Series 2002C-2, 5.100%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,000 Richmond County Development Authority, Georgia, 2/11 at 101.00 BBB 1,055,110
Environmental Improvement Revenue Bonds, International
Paper Company, Series 2001A, 6.250%, 2/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.4% (6.3% OF TOTAL INVESTMENTS)
1,000 Cherokee County School System, Georgia, General Obligation 8/13 at 100.00 AAA 1,064,070
Bonds, Series 2003, 5.000%, 8/01/16 - MBIA Insured
1,000 Forsyth County, Georgia, General Obligation Bonds, Series 2004, 3/14 at 101.00 AA 1,082,900
5.250%, 3/01/19
750 Georgia, General Obligation Bonds, Series 1998D, No Opt. Call AAA 832,665
5.250%, 10/01/15
Oconee County, Georgia, General Obligation Bonds,
Recreation Project, Series 2003:
1,410 5.500%, 1/01/23 - AMBAC Insured 1/13 at 101.00 Aaa 1,549,068
1,470 5.250%, 1/01/26 - AMBAC Insured 1/13 at 101.00 Aaa 1,567,064
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.5% (21.7% OF TOTAL INVESTMENTS)
1,405 Clayton County Development Authority, Georgia, Revenue 7/12 at 100.00 AAA 1,505,331
Bonds, TUFF Archives LLC Project, Series 2001A,
5.250%, 7/01/21 - MBIA Insured
4,000 Forsyth County Water and Sewerage Authority, Georgia, 4/13 at 100.00 AA 4,114,720
Revenue Bonds, Series 2002, 5.000%, 4/01/32
750 Georgia Municipal Association Inc., Certificates of 6/12 at 101.00 AAA 798,225
Participation, Atlanta Court Project, Series 2002,
5.125%, 12/01/21 - AMBAC Insured
2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, No Opt. Call AAA 2,967,350
Sales Tax Revenue Refunding Bonds, Series 1992P,
6.250%, 7/01/20 - AMBAC Insured
2,000 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 AAA 2,208,220
Transportation Authority, Series 1996Y, 5.500%, 7/01/36 -
FSA Insured
500 Puerto Rico Infrastructure Financing Authority, Special Tax 7/15 at 100.00 BBB+ 492,050
Revenue Bonds, Series 2005B, 5.000%, 7/01/41
5,000 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 5,526,250
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 862,648
2,500 5.000%, 8/01/27 - FSA Insured 8/12 at 100.00 AAA 2,590,850
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.0% (4.0% OF TOTAL INVESTMENTS)
3,650 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 3,905,391
Series 2000A, 5.500%, 1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 2.2% (1.5% OF TOTAL INVESTMENTS)
1,315 Private Colleges and Universities Authority, Georgia, Revenue 9/11 at 100.00 AA*** 1,417,228
Bonds, Emory University, Series 2001A, 5.125%, 9/01/33
(Pre-refunded to 9/01/11)
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.9% (6.6% OF TOTAL INVESTMENTS)
$ 1,000 Elberton, Georgia, Combined Utility System Revenue 1/12 at 100.00 Aaa $ 1,046,200
Refunding and Improvement Bonds, Series 2001,
5.000%, 1/01/22 - AMBAC Insured
1,300 Fairburn, Georgia, Combined Utility Revenue Bonds, Series 2000, 10/10 at 101.00 BBB 1,370,174
5.750%, 10/01/20
1,000 Monroe County Development Authority, Georgia, Pollution No Opt. Call AAA 1,018,270
Control Revenue Bonds, Georgia Power Company - Scherer
Plant, Series 2001, 4.200%, 1/01/12 (Mandatory
put 12/01/08) - AMBAC Insured
1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 AAA 1,046,310
Subordinated Lien Revenue Bonds, Series 2003A,
5.000%, 1/01/22 - MBIA Insured
1,775 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 1,942,187
Series 2002II, 5.375%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 27.0% (18.0% OF TOTAL INVESTMENTS)
Atlanta, Georgia, Water and Wastewater Revenue Bonds,
Series 2004:
500 5.250%, 11/01/15 - FSA Insured 11/14 at 100.00 AAA 545,620
1,700 5.000%, 11/01/37 - FSA Insured 11/14 at 100.00 AAA 1,747,345
Augusta, Georgia, Water and Sewerage Revenue Bonds,
Series 2002:
1,000 5.250%, 10/01/22 - FSA Insured 10/12 at 100.00 AAA 1,073,940
3,500 5.000%, 10/01/27 - FSA Insured 10/12 at 100.00 AAA 3,613,225
DeKalb County, Georgia, Water and Sewerage Revenue Bonds,
Series 2000:
2,500 5.125%, 10/01/31 10/10 at 101.00 AA 2,580,425
2,500 5.375%, 10/01/35 10/10 at 101.00 AA 2,670,075
1,000 Douglasville-Douglas County Water and Sewer Authority, 12/15 at 100.00 AAA 1,037,060
Georgia, Water and Sewer Revenue Bonds, Series 2005,
5.000%, 6/01/29 - MBIA Insured
950 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 7/08 at 101.00 AAA 992,275
Series 1998, 5.000%, 1/01/16 - FGIC Insured
3,100 Harris County, Georgia, Water System Revenue Bonds, 12/12 at 100.00 Aaa 3,248,925
Series 2002, 5.000%, 12/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 92,465 Total Long-Term Investments (cost $95,541,611) - 149.8% 97,227,599
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 698,487
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (33,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 64,926,086
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE UNREALIZED
NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE (DEPRECIATION)
====================================================================================================================================
JPMorgan $1,300,000 4.833% Semi-annually 3-month USD-LIBOR Quarterly 2/09/06 2/09/36 $ 81,485
JPMorgan 4,000,000 5.075% Semi-annually 3-month USD-LIBOR Quarterly 2/22/06 2/22/26 72,230
------------------------------------------------------------------------------------------------------------------------------------
$153,715
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
27
Nuveen North Carolina Premium Income Municipal Fund (NNC)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 27.1% (18.2% OF TOTAL INVESTMENTS)
$ 970 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 AAA $ 1,027,085
Bonds, Johnson and Wales University, Series 2003A,
5.250%, 4/01/23 - XLCA Insured
1,000 North Carolina Capital Facilities Financing Agency, Housing 6/13 at 100.00 AAA 1,033,790
Revenue Bonds, Elizabeth City State University, Series 2003A,
5.000%, 6/01/28 - AMBAC Insured
5,875 North Carolina Education Assistance Authority, Subordinate 7/06 at 102.00 A 6,051,368
Lien Guaranteed Student Loan Revenue Bonds, Series 1996C,
6.350%, 7/01/16 (Alternative Minimum Tax)
3,285 North Carolina State University at Raleigh, General Revenue 10/13 at 100.00 AA 3,522,210
Bonds, Series 2003A, 5.000%, 10/01/15
1,200 University of North Carolina, Charlotte, Certificates of 3/15 at 100.00 AAA 1,238,040
Participation, Student Housing Project, Series 2005,
5.000%, 3/01/31 - AMBAC Insured
University of North Carolina, Chapel Hill, System Net Revenue
Bonds, Series 2003:
2,380 5.000%, 12/01/19 12/13 at 100.00 AA+ 2,536,580
2,725 5.000%, 12/01/21 12/13 at 100.00 AA+ 2,889,345
1,500 5.000%, 12/01/23 12/13 at 100.00 AA+ 1,584,390
1,000 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 AAA 1,090,090
Bonds, Series 2002A, 5.375%, 4/01/22 - AMBAC Insured
750 University of North Carolina System, Pooled Revenue Bonds, 4/14 at 100.00 Aaa 789,368
Series 2004C, 5.000%, 4/01/21 - AMBAC Insured
1,530 University of North Carolina System, Pooled Revenue Bonds, No Opt. Call AAA 1,653,716
Series 2005A, 5.000%, 4/01/15 - AMBAC Insured
1,675 University of North Carolina, Wilmington, General Revenue 1/12 at 101.00 Aaa 1,765,886
Bonds, Series 2002A, 5.000%, 1/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,500 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 1,641,810
Refinery Project - Hovensa LLC, Series 2003,
6.125%, 7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 22.0% (14.9% OF TOTAL INVESTMENTS)
250 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 249,557
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (WI, settling 12/14/05)
North Carolina Medical Care Commission, Healthcare Facilities
Revenue Bonds, Union Regional Medical Center, Series 2002A:
1,000 5.500%, 1/01/19 1/12 at 100.00 A 1,054,040
550 5.500%, 1/01/20 1/12 at 100.00 A 578,529
1,750 5.375%, 1/01/32 1/12 at 100.00 A 1,792,753
2,000 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 AA- 2,080,800
Facilities Revenue Bonds, Novant Health Obligated Group,
Series 2003A, 5.000%, 11/01/19
North Carolina Medical Care Commission, Revenue Bonds,
Cleveland County Healthcare System, Series 2004A:
600 5.250%, 7/01/20 - AMBAC Insured 7/14 at 100.00 AAA 642,318
500 5.250%, 7/01/22 - AMBAC Insured 7/14 at 100.00 AAA 533,785
2,000 North Carolina Medical Care Commission, Healthcare Facilities 10/09 at 101.00 A- 2,123,160
Revenue Bonds, Stanly Memorial Hospital, Series 1999,
6.375%, 10/01/29
800 North Carolina Medical Care Commission, Revenue Bonds, 1/15 at 100.00 AAA 821,120
Blue Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
FGIC Insured
1,615 North Carolina Medical Care Commission, Hospital Revenue 10/08 at 101.00 AA 1,615,598
Bonds, FirstHealth of the Carolinas Inc., Series 1998,
4.750%, 10/01/26
3,000 North Carolina Medical Care Commission, Hospital Revenue 6/12 at 101.00 A 3,083,820
Bonds, Southeastern Regional Medical Center, Series 2002,
5.375%, 6/01/32
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 735 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 AA $ 757,910
Northeast Medical Center, Series 2004, 5.000%, 11/01/24
5,000 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 5,173,650
Revenue Bonds, Mission St. Joseph's Health System,
Series 2001, 5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.5% (3.7% OF TOTAL INVESTMENTS)
1,000 Asheville Housing Authority, North Carolina, 11/07 at 102.00 AA 1,021,050
GNMA-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 Revenue 1/06 at 102.00 AAA 1,035,200
Refunding Bonds, Tryon Hills Apartments, Series 1993A,
5.875%, 1/01/25 - MBIA Insured
2,290 Mecklenburg County, North Carolina, FNMA Multifamily 7/13 at 105.00 AAA 2,367,219
Housing Revenue Bonds, Little Rock Apartments, Series 2003,
5.375%, 1/01/36 (Alternative Minimum Tax)
North Carolina Housing Finance Agency, FHA-Insured
Multifamily Revenue Bonds, Series 1993:
240 5.800%, 7/01/14 1/06 at 100.00 Aa2 240,271
435 5.900%, 7/01/26 1/06 at 100.00 Aa2 435,357
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.0% (6.1% OF TOTAL INVESTMENTS)
4,985 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 5,164,510
Revenue Bonds, 1998 Trust Agreement, Series 6A,
6.200%, 1/01/29 (Alternative Minimum Tax)
1,945 North Carolina Housing Finance Agency, Single Family 3/06 at 102.00 AA 1,987,615
Revenue Bonds, Series 1996HH, 6.300%, 3/01/26
(Alternative Minimum Tax)
1,180 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 1,201,441
Revenue Bonds, 1998 Trust Agreement, Series 10A,
5.400%, 7/01/32 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,400 North Carolina Capital Facilities Financing Agency, Exempt No Opt. Call BBB 1,395,534
Facilities Revenue Bonds, Waste Management Inc.,
Series 2001, 3.750%, 8/01/14 (Alternative Minimum Tax)
(Mandatory put 8/01/07)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.3% (0.2% OF TOTAL INVESTMENTS)
250 North Carolina Medical Care Commission, Revenue Bonds, 9/15 at 100.00 N/R 253,698
United Church Homes and Services, Series 2005A,
5.250%, 9/01/21
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.8% (2.6% OF TOTAL INVESTMENTS)
1,425 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 1,480,703
Financing Authority, North Carolina, National Gypsum
Company Project Exempt Facilities Revenue Bonds,
Series 2005, 5.750%, 8/01/35 (Alternative Minimum Tax)
2,000 Haywood County Industrial Facilities and Pollution Control 3/06 at 102.00 Baa2 2,048,000
Financing Authority, North Carolina, Pollution Control Revenue
Refunding Bonds, Champion International Corporation,
Series 1995, 6.000%, 3/01/20
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.8% (5.9% OF TOTAL INVESTMENTS)
1,890 Craven County, North Carolina, General Obligation Bonds, 5/12 at 101.00 AAA 2,001,038
Series 2002, 5.000%, 5/01/21 - AMBAC Insured
4,285 Durham County, North Carolina, General Obligation Bonds, 4/12 at 100.00 AAA 4,561,254
Series 2002B, 5.000%, 4/01/16
1,000 Johnston County, North Carolina, General Obligation Bonds, 6/11 at 102.00 AAA 1,063,760
Series 2001, 5.000%, 6/01/16 - FGIC Insured
500 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 528,515
5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.0% (20.3% OF TOTAL INVESTMENTS)
1,330 Cabarrus County, North Carolina, Certificates of Participation, 2/13 at 100.00 AA- 1,413,059
Series 2002, 5.250%, 2/01/17
1,800 Catawba County, North Carolina, Certificates of Participation, 6/14 at 100.00 Aaa 1,933,308
Series 2004, 5.250%, 6/01/21 - MBIA Insured
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
1,145 5.000%, 6/01/18 6/13 at 100.00 AA+ 1,195,930
1,700 5.375%, 6/01/26 6/13 at 100.00 AA+ 1,798,260
29
Nuveen North Carolina Premium Income Municipal Fund (NNC) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Charlotte, North Carolina, Storm Water Fee Revenue Bonds,
Series 2002:
$ 1,050 5.250%, 6/01/20 6/12 at 101.00 AA+ $ 1,129,989
1,750 5.000%, 6/01/25 6/12 at 101.00 AA+ 1,821,138
2,180 Concord, North Carolina, Certificates of Participation, 6/06 at 102.00 AAA 2,252,703
Series 1996A, 6.125%, 6/01/21 - MBIA Insured
1,000 Davidson County, North Carolina, Certificates of Participation, No Opt. Call AAA 1,093,720
Series 2004, 5.250%, 6/01/14 - AMBAC Insured
750 Johnston County Finance Corporation, North Carolina, 8/09 at 101.00 AAA 793,440
Installment Payment Revenue Bonds, School and Museum
Projects, Series 1999, 5.250%, 8/01/21 - FSA Insured
Lee County, North Carolina, Certificates of Participation,
Public Schools and Community College, Series 2004:
1,715 5.250%, 4/01/18 - FSA Insured 4/14 at 100.00 AAA 1,848,581
500 5.250%, 4/01/20 - FSA Insured 4/14 at 100.00 AAA 537,485
1,000 5.250%, 4/01/22 - FSA Insured 4/14 at 100.00 AAA 1,070,610
North Carolina Infrastructure Finance Corporation, Certificates
of Participation, Correctional Facilities, Series 2004A:
2,500 5.000%, 2/01/19 2/14 at 100.00 AA+ 2,610,575
1,500 5.000%, 2/01/23 2/14 at 100.00 AA+ 1,550,700
North Carolina, Certificates of Participation, Series 2003:
1,130 5.250%, 6/01/21 6/13 at 100.00 AA+ 1,195,246
1,000 5.250%, 6/01/23 6/13 at 100.00 AA+ 1,053,820
1,500 North Carolina, Certificates of Participation, Repair and 6/14 at 100.00 AA+ 1,564,350
Renovation Project, Series 2004B, 5.000%, 6/01/20
2,000 Puerto Rico Highway and Transportation Authority, Grant 3/14 at 100.00 AAA 2,113,080
Anticipation Revenue Bonds, Series 2004,
5.000%, 9/15/21 - MBIA Insured
1,000 Randolph County, North Carolina, Certificates of Participation, 6/14 at 102.00 AAA 1,060,830
Series 2004, 5.000%, 6/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.4% (4.3% OF TOTAL INVESTMENTS)
600 Charlotte, North Carolina, Airport Revenue Bonds, 7/14 at 100.00 AAA 640,320
Series 2004A, 5.250%, 7/01/24 - MBIA Insured
500 Piedmont Triad Airport Authority, North Carolina, Airport 7/15 at 100.00 AAA 527,040
Revenue Bonds, Series 2005A, 5.000%, 7/01/20 -
XLCA Insured
2,250 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 2,404,013
Revenue Bonds, Series 2001A, 5.250%, 11/01/16 -
FGIC Insured
2,300 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aaa 2,379,373
Revenue Bonds, Series 2005A, 5.000%, 5/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 13.1% (8.8% OF TOTAL INVESTMENTS)
2,000 Charlotte, North Carolina, Storm Water Fee Revenue Bonds, 6/10 at 101.00 AA+*** 2,223,920
Series 2000, 6.000%, 6/01/25 (Pre-refunded to 6/01/10)
1,775 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 2,034,434
Revenue Bonds, Series 1980, 10.500%, 1/01/10
4,260 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 4,649,833
Revenue Bonds, Series 1986, 5.000%, 1/01/20
3,000 North Carolina, General Obligation Bonds, Series 2000A, 9/10 at 102.00 AAA 3,261,270
5.100%, 9/01/16 (Pre-refunded to 9/01/10)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.6% (7.8% OF TOTAL INVESTMENTS)
$ 3,000 North Carolina Eastern Municipal Power Agency, Power 1/13 at 100.00 BBB $ 3,222,510
System Revenue Bonds, Series 2003F, 5.500%, 1/01/15
4,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/10 at 101.00 A3 4,376,480
Revenue Bonds, Series 1999B, 6.500%, 1/01/20
2,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 2,150,320
Revenue Bonds, Series 2003A, 5.250%, 1/01/15 -
AMBAC Insured
1,000 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A3 1,060,600
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company, Series 2002,
5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.4% (5.0% OF TOTAL INVESTMENTS)
1,605 Broad River Water Authority, North Carolina, Water System 6/15 at 100.00 Aaa 1,691,250
Revenue Bonds, Series 2005, 5.000%, 6/01/20 - XLCA Insured
1,295 Greensboro, North Carolina, Combined Enterprise System 6/15 at 100.00 AA+ 1,348,170
Revenue Bonds, Series 2005A, 5.000%, 6/01/26
500 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 AAA 520,910
Revenue Bonds, Series 2004B, 5.000%, 6/01/23 - XLCA Insured
2,000 Winston-Salem, North Carolina, Water and Sewerage System 6/12 at 100.00 AAA 2,113,400
Revenue Bonds, Series 2002A, 5.000%, 6/01/18
1,170 Winston-Salem, North Carolina, Water and Sewerage System 6/15 at 100.00 AAA 1,246,025
Revenue Bonds, Series 2005, 5.000%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 130,820 Total Long-Term Investments (cost $134,027,248) - 148.3% 138,002,575
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 1,844,376
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (46,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 93,046,951
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statement.
31
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 26.7% (18.1% OF TOTAL INVESTMENTS)
$ 500 North Carolina Capital Facilities Financing Agency, Revenue 9/11 at 101.00 Baa2 $ 519,905
Bonds, High Point University, Series 2001, 5.125%, 9/01/18
2,000 North Carolina Capital Facilities Financing Agency, Revenue 10/11 at 100.00 AA+ 2,075,780
Bonds, Duke University, Series 2001A, 5.125%, 10/01/26
1,750 University of North Carolina, Chapel Hill, System Net Revenue 6/11 at 100.00 AA+ 1,820,770
Bonds, Series 2001A, 5.000%, 12/01/25
1,845 University of North Carolina, Chapel Hill, System Net Revenue No Opt. Call AA+ 1,985,386
Bonds, Series 2002B, 5.000%, 12/01/11
2,450 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 AAA 2,658,005
Bonds, Series 2002A, 5.375%, 4/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.7% (14.0% OF TOTAL INVESTMENTS)
100 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 99,823
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (WI, settling 12/14/05)
1,110 North Carolina Medical Care Commission, Healthcare Facilities 1/12 at 100.00 A 1,168,630
Revenue Bonds, Union Regional Medical Center, Series 2002A,
5.250%, 1/01/15
2,500 North Carolina Medical Care Commission, Healthcare Revenue 5/07 at 100.00 AA- 2,524,375
Bonds, Carolina Medicorp, Series 1996, 5.250%, 5/01/26
300 North Carolina Medical Care Commission, Revenue Bonds, 1/15 at 100.00 AAA 307,920
Blue Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
FGIC Insured
1,500 North Carolina Medical Care Commission, Hospital Revenue 6/12 at 101.00 A 1,556,940
Bonds, Southeastern Regional Medical Center, Series 2002,
5.250%, 6/01/22
300 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 AA 309,351
Northeast Medical Center, Series 2004, 5.000%, 11/01/24
1,000 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 1,034,730
Revenue Bonds, Mission St. Joseph's Health System,
Series 2001, 5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.8% (4.6% OF TOTAL INVESTMENTS)
2,230 Durham Housing Authority, North Carolina, FNMA Guaranteed 6/11 at 100.00 AAA 2,289,095
Multifamily Housing Revenue Bonds, Naples Terrace
Apartments, Series 2001A, 5.700%, 6/01/33 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.2% (3.5% OF TOTAL INVESTMENTS)
1,265 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 1,294,146
Revenue Bonds, 1998 Trust Agreement, Series 5A,
5.625%, 7/01/30 (Alternative Minimum Tax)
470 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 478,540
Revenue Bonds, 1998 Trust Agreement, Series 10A,
5.400%, 7/01/32 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5% (1.0% OF TOTAL INVESTMENTS)
500 North Carolina Capital Facilities Financing Agency, Exempt No Opt. Call BBB 498,405
Facilities Revenue Bonds, Waste Management Inc.,
Series 2001, 3.750%, 8/01/14 (Alternative Minimum Tax)
(Mandatory put 8/01/07)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.7% (0.6% OF TOTAL INVESTMENTS)
250 North Carolina Medical Care Commission, Revenue Bonds, 9/15 at 100.00 N/R 253,698
United Church Homes and Services, Series 2005A,
5.250%, 9/01/21
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.9% (2.6% OF TOTAL INVESTMENTS)
$ 750 Columbus County Industrial Facilities and Pollution Control 4/07 at 102.00 BBB $ 776,183
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, International Paper Company
Project, Series 1997A, 6.150%, 4/01/21 (Alternative
Minimum Tax)
515 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 535,131
Financing Authority, North Carolina, National Gypsum
Company Project Exempt Facilities Revenue Bonds,
Series 2005, 5.750%, 8/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.3% (4.2% OF TOTAL INVESTMENTS)
North Carolina, General Obligation Bonds, Series 2004A:
1,000 5.000%, 3/01/18 3/14 at 100.00 AAA 1,067,830
1,000 5.000%, 3/01/22 3/14 at 100.00 AAA 1,057,030
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.2% (16.4% OF TOTAL INVESTMENTS)
1,330 Cabarrus County, North Carolina, Certificates of Participation, 2/13 at 100.00 AA- 1,421,291
Series 2002, 5.250%, 2/01/15
1,400 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,480,920
Governmental Facilities Projects, Series 2003G,
5.375%, 6/01/26
1,870 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AAA 2,023,284
Series 2002, 5.250%, 6/01/15 - AMBAC Insured
1,250 Davidson County, North Carolina, Certificates of Participation, 6/14 at 100.00 AAA 1,342,575
Series 2004, 5.250%, 6/01/21 - AMBAC Insured
1,390 Durham, North Carolina, Certificates of Participation, 6/15 at 100.00 AA+ 1,437,816
Series 2005B, 5.000%, 6/01/25
470 Raleigh, North Carolina, Certificates of Participation, 6/14 at 100.00 AA+ 490,163
Downtown Improvement Project, Series 2004B,
5.000%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.2% (4.2% OF TOTAL INVESTMENTS)
450 Piedmont Triad Airport Authority, North Carolina, Airport 7/15 at 100.00 AAA 474,336
Revenue Bonds, Series 2005A, 5.000%, 7/01/20 -
XLCA Insured
1,530 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 1,632,112
Revenue Bonds, Series 2001A, 5.250%, 11/01/18 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 4.9% (3.3% OF TOTAL INVESTMENTS)
1,540 Broad River Water Authority, North Carolina, Water System 6/10 at 101.00 Aaa 1,673,302
Revenue Bonds, Series 2000, 5.375%, 6/01/26
(Pre-refunded to 6/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 20.7% (14.0% OF TOTAL INVESTMENTS)
Greenville, North Carolina, Combined Enterprise System
Revenue Bonds, Series 2001:
1,000 5.250%, 9/01/20 - FSA Insured 9/11 at 101.00 AAA 1,070,500
500 5.250%, 9/01/21 - FSA Insured 9/11 at 101.00 AAA 535,250
2,500 North Carolina Eastern Municipal Power Agency, Power System 1/06 at 100.00 AAA 2,504,175
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/17 -
FGIC Insured
1,000 North Carolina Eastern Municipal Power Agency, Power System 1/09 at 102.00 BBB 1,055,740
Revenue Refunding Bonds, Series 1999B, 5.650%, 1/01/16
250 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 264,125
Series 2005RR, 5.000%, 7/01/24 - FGIC Insured
1,500 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A3 1,590,900
Financing Authority, North Carolina, Revenue Refunding Bonds,
Carolina Power and Light Company, Series 2002,
5.375%, 2/01/17
33
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 19.9% (13.5% OF TOTAL INVESTMENTS)
$ 2,250 Charlotte, North Carolina, Water and Sewerage System 6/11 at 101.00 AAA $ 2,354,198
Revenue 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+ 530,490
500 5.125%, 6/01/21 6/11 at 101.00 AA+ 530,490
500 Greensboro, North Carolina, Combined Enterprise System 6/15 at 100.00 AA+ 521,710
Revenue Bonds, Series 2005A, 5.000%, 6/01/25
400 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 AAA 416,728
Revenue Bonds, Series 2004B, 5.000%, 6/01/23 -
XLCA Insured
2,275 Winston-Salem, North Carolina, Water and Sewerage System 6/12 at 100.00 AAA 2,406,813
Revenue Bonds, Series 2002A, 5.000%, 6/01/17
------------------------------------------------------------------------------------------------------------------------------------
$ 47,740 Total Long-Term Investments (cost $48,346,781) - 147.7% 50,068,591
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 832,154
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (17,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 33,900,745
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
34
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 28.3% (19.5% OF TOTAL INVESTMENTS)
Appalachian State University, North Carolina, Housing and
Student Center System Revenue Refunding Bonds, Series 2001:
$ 600 5.125%, 7/15/24 - MBIA Insured 1/11 at 101.00 Aaa $ 634,554
200 5.125%, 7/15/27 - MBIA Insured 1/11 at 101.00 Aaa 207,690
Appalachian State University, North Carolina, Housing and
Student Center System Revenue Refunding Bonds, Series 2002:
1,040 5.000%, 7/15/14 - MBIA Insured 7/12 at 100.00 Aaa 1,115,088
1,000 5.000%, 7/15/15 - MBIA Insured 7/12 at 100.00 Aaa 1,055,510
500 East Carolina University, General Revenue and Refunding 5/13 at 100.00 Aaa 529,770
Revenue Bonds of the Board of Governors of The University
of North Carolina, Series 2003A, 5.000%, 5/01/19 -
AMBAC Insured
North Carolina Capital Facilities Financing Agency, Revenue
Bonds, Duke University, Series 2001A:
3,750 5.125%, 10/01/26 10/11 at 100.00 AA+ 3,892,088
2,000 5.125%, 10/01/41 10/11 at 100.00 AA+ 2,047,940
1,000 University of North Carolina, Charlotte, Certificates of 3/15 at 100.00 AAA 1,031,700
Participation, Student Housing Project, Series 2005,
5.000%, 3/01/31 - AMBAC Insured
1,840 University of North Carolina, Chapel Hill, System Net Revenue No Opt. Call AA+ 1,980,006
Bonds, Series 2002B, 5.000%, 12/01/11
400 University of North Carolina, Greensboro, General Revenue 4/11 at 101.00 AAA 431,688
Refunding Bonds, Series 2002B, 5.375%, 4/01/17 -
FSA Insured
1,100 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 AAA 1,193,390
Bonds, Series 2002A, 5.375%, 4/01/19 - AMBAC Insured
University of North Carolina System, Pooled Revenue Bonds, Series 2004C:
250 5.000%, 4/01/21 - AMBAC Insured 4/14 at 100.00 Aaa 263,123
500 5.000%, 4/01/24 - AMBAC Insured 4/14 at 100.00 Aaa 522,315
1,000 University of North Carolina System, Pooled Revenue Bonds, 4/15 at 100.00 AAA 1,053,700
Series 2005A, 5.000%, 4/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.1% (14.5% OF TOTAL INVESTMENTS)
2,130 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 2,159,032
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
200 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 199,646
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (WI, settling 12/14/05)
1,005 North Carolina Medical Care Commission, Healthcare Facilities 1/12 at 100.00 A 1,066,375
Revenue Bonds, Union Regional Medical Center, Series 2002A,
5.250%, 1/01/13
2,000 North Carolina Medical Care Commission, Healthcare Facilities 11/13 at 100.00 AA- 2,075,380
Revenue Bonds, Novant Health Obligated Group, Series 2003A,
5.000%, 11/01/20
North Carolina Medical Care Commission, Revenue Bonds,
Cleveland County Healthcare System, Series 2004A:
595 5.250%, 7/01/20 - AMBAC Insured 7/14 at 100.00 AAA 636,965
500 5.250%, 7/01/22 - AMBAC Insured 7/14 at 100.00 AAA 533,785
500 North Carolina Medical Care Commission, Revenue Bonds, 1/15 at 100.00 AAA 513,200
Blue Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
FGIC 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 1,077,560
2,000 5.250%, 6/01/22 6/12 at 101.00 A 2,075,920
500 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 AA 515,585
Northeast Medical Center, Series 2004, 5.000%, 11/01/24
1,000 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 1,034,730
Revenue Bonds, Mission St. Joseph's Health System,
Series 2001, 5.250%, 10/01/31
35
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9% (2.7% OF TOTAL INVESTMENTS)
$ 400 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA $ 407,268
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 13A:
875 4.700%, 7/01/12 (Alternative Minimum Tax) 7/11 at 100.00 AA 893,839
880 4.850%, 7/01/13 (Alternative Minimum Tax) 7/11 at 100.00 AA 902,370
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.4% (1.0% OF TOTAL INVESTMENTS)
800 North Carolina Capital Facilities Financing Agency, Exempt No Opt. Call BBB 797,448
Facilities Revenue Bonds, Waste Management Inc.,
Series 2001, 3.750%, 8/01/14 (Alternative Minimum Tax)
(Mandatory put 8/01/07)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.5% (0.2% OF TOTAL INVESTMENTS)
250 North Carolina Medical Care Commission, Revenue Bonds, 9/15 at 100.00 N/R 253,698
United Church Homes and Services, Series 2005A,
5.250%, 9/01/21
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.6% (2.5% OF TOTAL INVESTMENTS)
865 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 898,813
Financing Authority, North Carolina, National Gypsum
Company Project Exempt Facilities Revenue Bonds,
Series 2005, 5.750%, 8/01/35 (Alternative Minimum Tax)
1,100 Northampton County Industrial Facilities and Pollution Control 2/11 at 101.00 BBB 1,158,157
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, International Paper Company,
Series 2001A, 6.200%, 2/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.4% (1.6% OF TOTAL INVESTMENTS)
250 Durham County, North Carolina, General Obligation Bonds, 5/10 at 102.00 AAA 275,628
Series 2000, 5.600%, 5/01/15
1,000 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 1,057,030
5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.9% (22.0% OF TOTAL INVESTMENTS)
30 Cabarrus County, North Carolina, Certificates of Participation, 2/13 at 100.00 AA- 31,931
Series 2002, 5.250%, 2/01/16
1,750 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,789,533
Governmental Facilities Projects, Series 2003G,
5.000%, 6/01/28
Charlotte, North Carolina, Storm Water Fee Revenue Bonds,
Series 2002:
1,850 5.250%, 6/01/18 6/12 at 101.00 AA+ 1,999,092
400 5.250%, 6/01/19 6/12 at 101.00 AA+ 431,972
1,325 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AAA 1,425,700
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 1,079,700
2,025 5.375%, 12/01/16 - FSA Insured 12/12 at 101.00 AAA 2,200,790
715 Lee County, North Carolina, Certificates of Participation, 4/14 at 100.00 AAA 768,604
Public Schools and Community College, Series 2004,
5.250%, 4/01/20 - FSA Insured
1,380 Pasquotank County, North Carolina, Certificates of Participation, 6/14 at 100.00 AAA 1,434,731
Series 2004, 5.000%, 6/01/25 - MBIA Insured
2,070 Pitt County, North Carolina, Certificates of Participation, 4/14 at 100.00 AAA 2,143,340
School Facilities Project, Series 2004B, 5.000%, 4/01/29 -
AMBAC Insured
1,270 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 1,433,640
Revenue Bonds, Series 2005C, 5.500%, 7/01/16 -
AMBAC Insured
Raleigh, North Carolina, Certificates of Participation, Downtown
Improvement Project, Series 2004B:
805 5.000%, 6/01/20 6/14 at 100.00 AA+ 839,535
1,310 5.000%, 6/01/21 6/14 at 100.00 AA+ 1,362,426
1,000 Randolph County, North Carolina, Certificates of Participation, 6/14 at 102.00 AAA 1,060,830
Series 2004, 5.000%, 6/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.8% (11.5% OF TOTAL INVESTMENTS)
2,035 Charlotte, North Carolina, Airport Revenue Bonds, Series 2004A, 7/14 at 100.00 AAA 2,088,500
5.000%, 7/01/34 - MBIA Insured
590 Piedmont Triad Airport Authority, North Carolina, Airport 7/15 at 100.00 AAA 621,907
Revenue Bonds, Series 2005A, 5.000%, 7/01/20 -
XLCA Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
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 $ 1,072,140
2,320 5.250%, 11/01/16 - FGIC Insured 5/11 at 101.00 Aaa 2,478,804
2,230 5.250%, 11/01/17 - FGIC Insured 5/11 at 101.00 Aaa 2,378,830
University of North Carolina, Charlotte, Parking System
Revenue Bonds, Series 2002:
270 5.000%, 1/01/20 - MBIA Insured 1/12 at 101.00 Aaa 284,872
500 5.125%, 1/01/27 - MBIA Insured 1/12 at 101.00 Aaa 521,815
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 9.0% (6.2% OF TOTAL INVESTMENTS)
1,465 Orange Water and Sewerage Authority, North Carolina, 7/11 at 101.00 AA+*** 1,577,981
Water and Sewerage System Revenue Bonds, Series 2001,
5.000%, 7/01/20 (Pre-refunded to 7/01/11)
3,200 Wake County, North Carolina, General Obligation School Bonds, 2/10 at 101.50 AAA 3,480,288
Series 2000, 5.400%, 2/01/13 (Pre-refunded to 2/01/10)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.7% (8.7% OF TOTAL INVESTMENTS)
2,500 North Carolina Eastern Municipal Power Agency, Power System 1/06 at 100.00 AAA 2,504,174
Revenue Refunding Bonds, Series 1993B, 5.500%, 1/01/17 -
FGIC Insured
1,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/10 at 101.00 A3 1,641,180
Revenue Bonds, Series 1999B, 6.500%, 1/01/20
250 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 264,124
Series 2005RR, 5.000%, 7/01/24 - FGIC Insured
2,600 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A3 2,757,560
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company, Series 2002,
5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.9% (9.6% OF TOTAL INVESTMENTS)
2,520 Charlotte, North Carolina, Water and Sewerage System No Opt. Call AAA 2,766,606
Revenue Bonds, Series 2002A, 5.250%, 7/01/13
1,000 Durham County, North Carolina, Enterprise System Revenue 6/13 at 100.00 AAA 1,050,240
Bonds, Series 2002, 5.000%, 6/01/23 - MBIA Insured
1,085 Greensboro, North Carolina, Combined Enterprise System 6/15 at 100.00 AA+ 1,134,681
Revenue Bonds, Series 2005A, 5.000%, 6/01/24
Raleigh, North Carolina, Combined Enterprise System Revenue
Bonds, Series 2004:
1,000 5.000%, 3/01/21 3/14 at 100.00 AAA 1,054,890
1,750 5.000%, 3/01/22 3/14 at 100.00 AAA 1,839,827
------------------------------------------------------------------------------------------------------------------------------------
$ 77,775 Total Long-Term Investments (cost $79,444,584) - 145.5% 82,011,234
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.2% 2,361,627
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (28,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 56,372,861
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE UNREALIZED
NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE (DEPRECIATION)
====================================================================================================================================
JPMorgan $800,000 4.833% Semi-annually 3-month USD-LIBOR Quarterly 2/09/06 2/09/36 $ 50,145
Morgan Stanley 800,000 4.816% Semi-annually 3-month USD-LIBOR Quarterly 2/15/06 2/15/36 52,487
------------------------------------------------------------------------------------------------------------------------------------
$102,632
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
37
Nuveen North Carolina Dividend Advantage Municipal Fund 3 (NII)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.5% (2.4% OF TOTAL INVESTMENTS)
$ 2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,998,420
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.9% (10.2% OF TOTAL INVESTMENTS)
500 East Carolina University, General Revenue and Refunding 5/13 at 100.00 Aaa 529,770
Revenue Bonds of the Board of Governors of The University
of North Carolina, Series 2003A, 5.000%, 5/01/19 -
AMBAC Insured
North Carolina Capital Facilities Financing Agency, Revenue
Bonds, Duke University, Series 2001A:
1,750 5.125%, 10/01/26 10/11 at 100.00 AA+ 1,816,308
500 5.125%, 10/01/41 10/11 at 100.00 AA+ 511,985
3,000 North Carolina Capital Facilities Financing Agency, Revenue 10/12 at 100.00 AA+ 3,082,440
Bonds, Duke University, Series 2002A, 5.125%, 7/01/42
1,900 University of North Carolina System, Pooled Revenue 10/12 at 100.00 AAA 1,970,547
Refunding Bonds, Series 2002A, 5.000%, 4/01/27 -
AMBAC Insured
500 University of North Carolina System, Pooled Revenue Bonds, 4/14 at 100.00 Aaa 522,315
Series 2004C, 5.000%, 4/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.8% (8.7% OF TOTAL INVESTMENTS)
2,000 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/07 at 102.00 AA 2,062,280
Healthcare System Revenue Bonds, DBA Carolina Healthcare
System, Series 1997A, 5.125%, 1/15/22
750 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 760,223
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
200 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/15 at 100.00 AA 199,646
Healthcare System Revenue Bonds, DBA Carolinas Healthcare
System, Series 2005A, 5.000%, 1/15/45 (WI, settling 12/14/05)
50 Cumberland County, North Carolina, Hospital Facility Revenue 10/09 at 101.00 A- 50,838
Bonds, Cumberland County Hospital System Inc., Cape Fear
Valley Health System, Series 1999, 5.250%, 10/01/29
2,000 North Carolina Medical Care Commission, Healthcare Facilities 11/13 at 100.00 AA- 2,087,600
Revenue Bonds, Novant Health Obligated Group, Series 2003A,
5.000%, 11/01/18
500 North Carolina Medical Care Commission, Revenue Bonds, 1/15 at 100.00 AAA 513,200
Blue Ridge Healthcare System, Series 2005, 5.000%, 1/01/33 -
FGIC Insured
500 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 AA 515,585
Northeast Medical Center, Series 2004, 5.000%, 11/01/24
1,000 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 1,034,730
Revenue Bonds, Mission St. Joseph's Health System,
Series 2001, 5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,000 Mecklenburg County, North Carolina, FNMA Multifamily 7/13 at 105.00 AAA 1,038,390
Housing Revenue Bonds, Little Rock Apartments, Series 2003,
5.150%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.3% (1.6% OF TOTAL INVESTMENTS)
1,275 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 1,304,376
Revenue Bonds, 1998 Trust Agreement, Series 5A,
5.625%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.4% (0.9% OF TOTAL INVESTMENTS)
800 North Carolina Capital Facilities Financing Agency, Exempt No Opt. Call BBB 797,448
Facilities Revenue Bonds, Waste Management Inc.,
Series 2001, 3.750%, 8/01/14 (Alternative Minimum Tax)
(Mandatory put 8/01/07)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.5% (1.7% OF TOTAL INVESTMENTS)
1,400 Haywood County Industrial Facilities and Pollution Control 12/05 at 102.00 BBB 1,415,526
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, Champion International
Corporation, Series 1995A, 5.750%, 12/01/25 (Alternative
Minimum Tax)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.5% (12.6% OF TOTAL INVESTMENTS)
$ 3,900 Cary, North Carolina, General Obligation Water and Sewer 3/11 at 102.00 AAA $ 4,119,726
Bonds, Series 2001, 5.000%, 3/01/20
Lincoln County, North Carolina, General Obligation Bonds,
Series 2002A:
850 5.000%, 6/01/19 - FGIC Insured 6/12 at 101.00 AAA 902,930
900 5.000%, 6/01/20 - FGIC Insured 6/12 at 101.00 AAA 954,666
1,050 5.000%, 6/01/21 - FGIC Insured 6/12 at 101.00 AAA 1,111,961
500 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 528,515
5.000%, 3/01/22
2,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 2,409,840
Refunding Bonds, Series 1997, 6.500%, 7/01/15 -
MBIA Insured
400 Raleigh, North Carolina, General Obligation Bonds, 6/12 at 100.00 AAA 423,504
Series 2002, 5.000%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.4% (20.0% OF TOTAL INVESTMENTS)
1,550 Cary, North Carolina, Certificates of Participation, Public 12/12 at 100.00 AA+ 1,636,971
Improvement Projects, Series 2002A, 5.000%, 12/01/17
1,800 Catawba County, North Carolina, Certificates of Participation, 6/14 at 100.00 Aaa 1,929,312
Series 2004, 5.250%, 6/01/22 - MBIA Insured
1,500 Centennial Authority, North Carolina, Hotel Tax Revenue Bonds, 9/07 at 102.00 AAA 1,569,375
Arena Project, Series 1997, 5.125%, 9/01/19 - FSA Insured
2,750 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 2,801,645
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 3,111,690
Series 2002, 5.000%, 6/01/23 - AMBAC Insured
500 Lee County, North Carolina, Certificates of Participation, 4/14 at 100.00 AAA 537,485
Public Schools and Community College, Series 2004,
5.250%, 4/01/20 - FSA Insured
1,000 North Carolina, Certificates of Participation, Repair and 6/14 at 100.00 AA+ 1,042,900
Renovation Project, Series 2004B, 5.000%, 6/01/20
2,000 Rutherford County, North Carolina, Certificates of Participation, 9/12 at 101.00 AAA 2,102,920
Series 2002, 5.000%, 9/01/21 - AMBAC Insured
1,785 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 AAA 1,885,620
Series 2003, 5.000%, 6/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.1% (6.2% OF TOTAL INVESTMENTS)
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 1,908,409
3,100 5.000%, 11/01/20 - FGIC Insured 5/11 at 101.00 Aaa 3,261,882
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 10.9% (7.4% OF TOTAL INVESTMENTS)
500 Broad River Water Authority, North Carolina, Water System 6/10 at 101.00 Aaa 543,280
Revenue Bonds, Series 2000, 5.375%, 6/01/26 (Pre-refunded
to 6/01/10) - MBIA Insured
Forsyth County, North Carolina, Certificates of Participation,
Public Facilities and Equipment Project, Series 2002:
1,325 5.125%, 1/01/16 (Pre-refunded to 1/01/13) 1/13 at 101.00 AA+*** 1,448,887
770 5.250%, 1/01/19 (Pre-refunded to 1/01/13) 1/13 at 101.00 AA+*** 847,939
1,235 5.250%, 1/01/23 (Pre-refunded to 1/01/13) 1/13 at 101.00 AA+*** 1,360,007
800 Mecklenburg County, North Carolina, General Obligation 4/10 at 101.50 AAA 859,016
Public Improvement Bonds, Series 2000D, 5.000%, 4/01/13
(Pre-refunded to 4/01/10)
1,000 North Carolina, General Obligation Bonds, Series 2000A, 9/10 at 102.00 AAA 1,087,090
5.100%, 9/01/16 (Pre-refunded to 9/01/10)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.8% (10.1% OF TOTAL INVESTMENTS)
4,000 North Carolina Eastern Municipal Power Agency, Power 1/06 at 100.00 AAA 4,006,680
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/17 - FGIC Insured
2,665 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 2,865,301
Revenue Bonds, Series 2003A, 5.250%, 1/01/15 -
AMBAC Insured
1,400 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A3 1,484,840
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company, Series 2002,
5.375%, 2/01/17
39
Nuveen North Carolina Dividend Advantage Municipal Fund 3 (NII) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.9% (17.0% OF TOTAL INVESTMENTS)
Charlotte, North Carolina, Water and Sewerage System Revenue
Bonds, Series 2001:
$ 750 5.125%, 6/01/26 6/11 at 101.00 AAA $ 784,733
1,780 5.125%, 6/01/26 - FGIC Insured 6/11 at 101.00 AAA 1,862,432
Durham County, North Carolina, Enterprise System Revenue
Bonds, Series 2002:
680 5.000%, 6/01/16 - MBIA Insured 6/13 at 100.00 AAA 722,792
710 5.000%, 6/01/17 - MBIA Insured 6/13 at 100.00 AAA 753,736
300 5.000%, 6/01/18 - MBIA Insured 6/13 at 100.00 AAA 318,080
2,500 Kannapolis, North Carolina, Water and Sewerage System 2/12 at 101.00 AAA 2,600,450
Revenue Bonds, Series 2001B, 5.250%, 2/01/26 (Alternative
Minimum Tax) - FSA Insured
500 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 AAA 520,910
Revenue Bonds, Series 2004B, 5.000%, 6/01/23 -
XLCA Insured
1,000 Orange Water and Sewerage Authority, North Carolina, 7/11 at 101.00 AA+ 1,030,200
Water and Sewerage System Revenue Bonds, Series 2001,
5.000%, 7/01/26
Winston-Salem, North Carolina, Water and Sewerage System
Revenue Bonds, Series 2002A:
500 5.000%, 6/01/17 6/12 at 100.00 AAA 528,970
4,715 5.000%, 6/01/19 6/12 at 100.00 AAA 4,973,240
------------------------------------------------------------------------------------------------------------------------------------
$ 79,120 Total Long-Term Investments (cost $81,039,781) - 146.8% 83,049,561
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 1,512,274
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.5)% (28,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 56,561,835
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE UNREALIZED
NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE (DEPRECIATION)
====================================================================================================================================
Citigroup $2,000,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 $128,611
JPMorgan 600,000 5.075% Semi-annually 3-month USD-LIBOR Quarterly 2/22/06 2/22/26 10,834
------------------------------------------------------------------------------------------------------------------------------------
$139,445
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** 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.
See accompanying notes to financial statements.
40
Statement of
ASSETS AND LIABILITIES November 30, 2005 (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $75,625,426,
$42,218,920 and $95,541,611, respectively) $78,565,490 $43,546,804 $97,227,599
Cash 3,746,569 -- --
Receivables:
Interest 1,322,939 680,387 1,615,212
Investments sold -- -- --
Unrealized appreciation on forward swaps -- -- 153,715
Other assets 8,266 617 878
------------------------------------------------------------------------------------------------------------------------------------
Total assets 83,643,264 44,227,808 98,997,404
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 155,605 1,015,816
Payable for investments purchased -- -- --
Accrued expenses:
Management fees 43,885 12,291 25,746
Other 23,359 12,162 21,621
Preferred share dividends payable 9,770 2,309 8,135
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 77,014 182,367 1,071,318
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 27,800,000 15,000,000 33,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $55,766,250 $29,045,441 $64,926,086
====================================================================================================================================
Common shares outstanding 3,800,599 1,963,240 4,553,660
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.67 $ 14.79 $ 14.26
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 38,006 $ 19,632 $ 45,537
Paid-in surplus 52,300,038 27,805,350 64,257,862
Undistributed (Over-distribution of) net investment income 211,881 232,698 (206,209)
Accumulated net realized gain (loss) from investments
and forward swaps 276,261 (340,123) (1,010,807)
Net unrealized appreciation (depreciation) of investments
and forward swaps 2,940,064 1,327,884 1,839,703
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $55,766,250 $29,045,441 $64,926,086
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
ASSETS AND LIABILITIES November 30, 2005 (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 $134,027,248,
$48,346,781, $79,444,584 and $81,039,781, respectively) $138,002,575 $50,068,591 $82,011,234 $83,049,561
Cash -- 24,857 137,844 221,505
Receivables:
Interest 2,469,433 930,851 1,355,358 1,410,278
Investments sold -- -- 1,009,632 --
Unrealized appreciation on forward swaps -- -- 102,632 139,445
Other assets 9,235 3,140 1,620 775
------------------------------------------------------------------------------------------------------------------------------------
Total assets 140,481,243 51,027,439 84,618,320 84,821,564
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 260,536 -- -- --
Payable for investments purchased 247,023 98,809 197,618 197,618
Accrued expenses:
Management fees 73,268 14,205 23,549 22,212
Other 38,078 12,307 19,113 22,102
Preferred share dividends payable 15,387 1,373 5,179 17,797
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 634,292 126,694 245,459 259,729
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 46,800,000 17,000,000 28,000,000 28,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 93,046,951 $33,900,745 $56,372,861 $56,561,835
====================================================================================================================================
Common shares outstanding 6,340,304 2,254,311 3,742,447 3,928,722
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.68 $ 15.04 $ 15.06 $ 14.40
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 63,403 $ 22,543 $ 37,424 $ 39,287
Paid-in surplus 87,653,983 31,951,021 53,084,717 55,436,510
Undistributed (Over-distribution of) net investment income 207,591 250,575 42,958 (54,202)
Accumulated net realized gain (loss) from investments
and forward swaps 1,146,647 (45,204) 538,480 (1,008,985)
Net unrealized appreciation (depreciation) of investments
and forward swaps 3,975,327 1,721,810 2,669,282 2,149,225
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 93,046,951 $33,900,745 $56,372,861 $56,561,835
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
42
Statement of
OPERATIONS Six Months Ended November 30, 2005 (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 2,016,812 $1,046,008 $ 2,244,989
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 271,643 143,291 318,458
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 3,220 195 408
Custodian's fees and expenses 13,963 7,577 18,362
Trustees' fees and expenses 992 452 1,065
Professional fees 6,015 5,172 6,489
Shareholders' reports - printing and mailing expenses 8,385 4,422 7,473
Stock exchange listing fees 82 84 194
Investor relations expense 5,550 2,806 6,046
Other expenses 5,658 5,875 7,034
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 355,367 193,689 411,906
Custodian fee credit (5,989) (2,200) (5,098)
Expense reimbursement -- (67,159) (159,210)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 349,378 124,330 247,598
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 1,667,434 921,678 1,997,391
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 530,123 9,629 (19,563)
Net realized gain (loss) from forward swaps -- (19,734) (87,733)
Change in net unrealized appreciation (depreciation) of investments (2,353,443) (950,026) (2,337,684)
Change in net unrealized appreciation (depreciation) of forward swaps -- 67,410 392,489
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (1,823,320) (892,721) (2,052,491)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (288,893) (160,595) (380,366)
From accumulated net realized gains from investments -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (288,893) (160,595) (380,366)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ (444,779) $ (131,638) $ (435,466)
====================================================================================================================================
See accompanying notes to financial statements.
43
Statement of
OPERATIONS Six Months Ended November 30, 2005 (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 $ 3,408,477 $1,211,033 $ 1,947,197 $ 1,943,498
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 452,855 165,034 273,854 274,158
Preferred shares - auction fees 58,660 21,308 35,096 35,096
Preferred shares - dividend disbursing agent fees 5,014 5,014 5,014 5,014
Shareholders' servicing agent fees and expenses 6,519 245 435 473
Custodian's fees and expenses 23,429 9,412 14,910 12,911
Trustees' fees and expenses 1,715 636 1,035 938
Professional fees 6,930 5,218 5,488 6,145
Shareholders' reports - printing and mailing expenses 12,981 5,616 7,371 8,022
Stock exchange listing fees 5,229 96 160 167
Investor relations expense 9,395 3,340 5,434 5,635
Other expenses 6,634 6,065 6,586 6,669
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 589,361 221,984 355,383 355,228
Custodian fee credit (4,480) (3,857) (6,410) (2,087)
Expense reimbursement -- (77,350) (128,353) (137,063)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 584,881 140,777 220,620 216,078
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,823,596 1,070,256 1,726,577 1,727,420
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 428,304 62,817 175,390 21,370
Net realized gain (loss) from forward swaps -- -- (160,682) (269,879)
Change in net unrealized appreciation (depreciation) of investments (3,235,013) (907,070) (1,984,092) (1,672,180)
Change in net unrealized appreciation (depreciation) of forward swaps -- -- 274,643 397,870
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (2,806,709) (844,253) (1,694,741) (1,522,819)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (491,897) (157,624) (289,166) (283,314)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (491,897) (157,624) (289,166) (283,314)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ (475,010) $ 68,379 $ (257,330) $ (78,713)
====================================================================================================================================
See accompanying notes to financial statements.
44
Statement of
CHANGES IN NET ASSETS (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM INCOME (NPG) DIVIDEND ADVANTAGE (NZX) DIVIDEND ADVANTAGE 2 (NKG)
---------------------------- ---------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,667,434 $ 3,487,265 $ 921,678 $ 1,888,117 $ 1,997,391 $ 3,981,875
Net realized gain (loss) from
investments 530,123 334,583 9,629 55,245 (19,563) 63,329
Net realized gain (loss) from
forward swaps -- -- (19,734) (333,601) (87,733) (811,165)
Change in net unrealized
appreciation (depreciation)
of investments (2,353,443) 2,888,311 (950,026) 2,011,284 (2,337,684) 5,230,264
Change in net unrealized appreciation
(depreciation) of forward
swaps -- -- 67,410 (67,410) 392,489 (238,774)
Distributions to Preferred Shareholders:
From net investment income (288,893) (347,395) (160,595) (200,088) (380,366) (496,382)
From accumulated net realized gains
from investments -- -- -- (976) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (444,779) 6,362,764 (131,638) 3,352,571 (435,466) 7,729,147
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,538,587) (3,420,792) (859,569) (1,717,243) (1,611,996) (3,565,514)
From accumulated net realized gains
from investments -- -- -- (16,271) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,538,587) (3,420,792) (859,569) (1,733,514) (1,611,996) (3,565,514)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 62,421 138,628 29,174 26,856 -- --
Preferred shares offering costs -- -- -- 13,620 -- 100
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 62,421 138,628 29,174 40,476 -- 100
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (1,920,945) 3,080,600 (962,033) 1,659,533 (2,047,462) 4,163,733
Net assets applicable to Common
shares at the beginning
of period 57,687,195 54,606,595 30,007,474 28,347,941 66,973,548 62,809,815
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $55,766,250 $57,687,195 $29,045,441 $30,007,474 $64,926,086 $66,973,548
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 211,881 $ 371,927 $ 232,698 $ 331,184 $ (206,209) $ (211,238)
====================================================================================================================================
See accompanying notes to financial statements.
45
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
11/30/05 5/31/05 11/30/05 5/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,823,596 $ 5,780,153 $ 1,070,256 $ 2,179,263
Net realized gain (loss) from
investments 428,304 1,595,461 62,817 117,198
Net realized gain (loss) from
forward swaps -- -- -- (105,324)
Change in net unrealized appreciation
(depreciation) of investments (3,235,013) 2,755,786 (907,070) 1,727,315
Change in net unrealized appreciation
(depreciation) of forward
swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (491,897) (680,330) (157,624) (201,792)
From accumulated net realized gains
from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (475,010) 9,451,070 68,379 3,716,660
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,585,802) (5,600,573) (1,014,136) (2,066,665)
From accumulated net realized gains
from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,585,802) (5,600,573) (1,014,136) (2,066,665)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 99,899 216,479 26,984 59,033
Preferred shares offering costs -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 99,899 216,479 26,984 59,033
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,960,913) 4,066,976 (918,773) 1,709,028
Net assets applicable to Common
shares at the beginning of period 96,007,864 91,940,888 34,819,518 33,110,490
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $93,046,951 $96,007,864 $33,900,745 $34,819,518
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 207,591 $ 461,694 $ 250,575 $ 352,079
====================================================================================================================================
See accompanying notes to financial statements.
46
NORTH CAROLINA NORTH CAROLINA
DIVIDEND ADVANTAGE 2 (NNO) DIVIDEND ADVANTAGE 3 (NII)
----------------------------- ----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,726,577 $ 3,499,776 $1,727,420 $ 3,483,952
Net realized gain (loss) from
investments 175,390 748,290 21,370 39,251
Net realized gain (loss) from
forward swaps (160,682) 20,984 (269,879) (444,372)
Change in net unrealized appreciation
(depreciation) of investments (1,984,092) 2,568,886 (1,672,180) 4,217,563
Change in net unrealized appreciation
(depreciation) of forward
swaps 274,643 (172,011) 397,870 (258,425)
Distributions to Preferred Shareholders:
From net investment income (289,166) (384,082) (283,314) (419,248)
From accumulated net realized gains
from investments -- (18,106) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (257,330) 6,263,737 (78,713) 6,618,721
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,577,021) (3,229,318) (1,437,469) (3,119,389)
From accumulated net realized gains
from investments -- (260,889) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from distributions
to Common shareholders (1,577,021) (3,490,207) (1,437,469) (3,119,389)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 45,305 70,466 43,459 53,721
Preferred shares offering costs 6,692 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 51,997 70,466 43,459 53,721
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (1,782,354) 2,843,996 (1,472,723) 3,553,053
Net assets applicable to Common
shares at the beginning of period 58,155,215 55,311,219 58,034,558 54,481,505
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $56,372,861 $58,155,215 $56,561,835 $58,034,558
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 42,958 $ 182,568 $ (54,202) $ (60,839)
====================================================================================================================================
See accompanying notes to financial statements.
47
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The 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) are 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.
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 or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When market 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. Prices of
derivative investments are also provided by an independent pricing service
approved by each Fund's Board of Trustees. If the pricing service is unable to
supply a price for a municipal bond or derivative investment, each Fund may use
a market price or fair market value quote provided by a major broker/dealer in
such investments. If it is determined that the market price or fair market value
for an investment is unavailable or inappropriate, the Board of Trustees of the
Funds, or its designee, may establish a fair value for the investment. Temporary
investments in securities that have variable rate and demand features qualifying
them as short-term investments are valued at amortized cost, which approximates
market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At November 30, 2005,
North Carolina Premium Income (NNC), North Carolina Dividend Advantage (NRB),
North Carolina Dividend Advantage 2 (NNO) and North Carolina Dividend Advantage
3 (NII) had outstanding when-issued purchase commitments of $247,023, $98,809,
$197,618 and $197,618, 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.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
48
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 U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one Series. The dividend rate paid by the Funds on each Series is
determined every seven days, pursuant to a dutch auction process overseen by the
auction agent, and is payable at the end of each rate period. 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 --
================================================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to
mitigate the negative impact that an increase in long-term interest rates could
have on Common share net asset value. Forward interest rate swap transactions
involve each Fund's agreement with the counterparty to pay, in the future, a
fixed rate payment in exchange for the counterparty paying the Fund a variable
rate payment, the accruals for which would begin at a specified date in the
future (the "effective date"). The amount of the payment obligation is based on
the notional amount of the forward swap contract and would increase or decrease
in value based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swaps' termination date were to increase or
decrease. The Funds may close out a contract prior to the effective date, at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
Each Fund intends, but is not obligated to, terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To minimize such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when any of the
Funds have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the pre-determined
threshold amount.
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.
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
49
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
2. FUND SHARES
Transactions in Common shares were as follows:
GEORGIA GEORGIA DIVIDEND GEORGIA DIVIDEND
PREMIUM INCOME (NPG) ADVANTAGE (NZX) ADVANTAGE 2 (NKG)
----------------------- ---------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05
---------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 3,832 8,727 1,757 1,724 -- --
===============================================================================================================
NORTH CAROLINA NORTH CAROLINA
PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
---------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05
----------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 6,059 13,171 1,588 3,678
==========================================================================================================
NORTH CAROLINA NORTH CAROLINA
DIVIDEND DIVIDEND
ADVANTAGE 2 (NNO) ADVANTAGE 3 (NII)
---------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05
----------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 2,402 4,454 2,897 3,600
==========================================================================================================
50
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended November 30, 2005, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
----------------------------------------------------------------------------------------------------------
Purchases $6,033,072 $1,597,400 $4,650,924
Sales and maturities 9,296,935 1,184,045 3,289,217
==========================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------
Purchases $11,408,883 $1,407,672 $3,804,285 $778,471
Sales and maturities 10,932,161 1,144,925 3,813,641 901,819
==========================================================================================================
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 the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At November 30, 2005, the cost of investments was as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
----------------------------------------------------------------------------------------------------------
Cost of investments $75,619,010 $42,445,558 $96,126,842
==========================================================================================================
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 $134,019,572 $48,400,916 $79,439,492 $81,157,120
==========================================================================================================
51
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2005, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $3,160,357 $1,519,827 $2,267,030
Depreciation (213,877) (418,581) (1,166,273)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $2,946,480 $1,101,246 $1,100,757
==========================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $4,298,625 $1,751,141 $2,663,786 $2,068,599
Depreciation (315,622) (83,466) (92,044) (176,158)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $3,983,003 $1,667,675 $2,571,742 $1,892,441
==========================================================================================================
The tax components of undistributed net investment income and net realized gains
at May 31, 2005, 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 * $641,497 $475,192 $73,268
Undistributed net ordinary income ** -- -- --
Undistributed net long-term capital gains -- -- --
==========================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $895,718 $529,690 $449,054 $200,083
Undistributed net ordinary income ** 3,258 -- 123,149 --
Undistributed net long-term capital gains 718,343 -- 400,623 --
==========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 2, 2005, paid on June 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
52
The tax character of distributions paid during the fiscal year ended May 31,
2005, 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
(NPG) (NZX) (NKG)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $3,753,153 $1,919,401 $4,087,495
Distributions from net ordinary income ** 19,521 -- --
Distributions from net long-term capital gains -- 17,247 --
==========================================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $6,287,760 $2,264,563 $3,616,451 $3,544,530
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- -- 278,995 --
==========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2005, 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 NORTH
GEORGIA GEORGIA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE 2 ADVANTAGE ADVANTAGE 3
(NPG) (NKG) (NRB) (NII)
----------------------------------------------------------------------------------------------------------
Expiration year:
2008 $129,908 $ -- $ -- $ --
2009 -- -- -- --
2010 -- -- -- --
2011 -- -- -- --
2012 123,954 138,103 -- 339,128
2013 -- -- 52,458 28,043
----------------------------------------------------------------------------------------------------------
Total $253,862 $138,103 $52,458 $367,171
==========================================================================================================
53
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At May 31, 2005, the Funds' last fiscal year end, the following Funds elected to
defer net realized losses from investments incurred from November 1, 2004
through May 31, 2005 ("post-October losses") in accordance with Federal income
tax regulations. The following post-October losses were treated as having arisen
on the first day of the current fiscal year:
NORTH
GEORGIA GEORGIA CAROLINA
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NZX) (NKG) (NII)
--------------------------------------------------------------------------------
$103,434 $179,798 $275,967
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., and a specific fund-level component, based only on the amount
of assets within each individual fund. This pricing structure enables Nuveen
fund shareholders to benefit from growth in the assets within each individual
fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
AVERAGE DAILY NET ASSETS GEORGIA PREMIUM INCOME (NPG)
(INCLUDING NET ASSETS NORTH CAROLINA PREMIUM INCOME (NNC)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
GEORGIA DIVIDEND ADVANTAGE (NZX)
GEORGIA DIVIDEND ADVANTAGE 2 (NKG)
NORTH CAROLINA DIVIDEND ADVANTAGE (NRB)
AVERAGE DAILY NET ASSETS NORTH CAROLINA DIVIDEND ADVANTAGE 2 (NNO)
(INCLUDING NET ASSETS NORTH CAROLINA DIVIDEND ADVANTAGE 3 (NII)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
54
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of November 30, 2005, the complex-level fee rate was .1898%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
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. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
55
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.
56
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. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen was
deemed an "assignment" (as defined in the 1940 Act) of the investment management
agreements between the Funds and the Adviser, which resulted in the automatic
termination of each agreement under the 1940 Act. In anticipation of such deemed
assignment, the Board of Trustees had approved new ongoing investment management
agreements for each Fund and the submission of those agreements for approval by
each respective Fund's shareholders, which shareholder approval was received
prior to the settlement of transactions (C) and (D). The new ongoing management
agreements took effect upon such settlement.
7. 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, 2005, to shareholders of
record on December 15, 2005, 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 $.0625 $.0730 $.0590 $.0645 $.0735 $.0685 $.0610
=======================================================================================================
At the same time, the following Funds declared capital gains and ordinary income
distributions as follows:
NORTH NORTH
GEORGIA CAROLINA CAROLINA
PREMIUM PREMIUM DIVIDEND
INCOME INCOME ADVANTAGE 2
(NPG) (NNC) (NNO)
-------------------------------------------------------------------------------------------------------
Capital gains distribution per share $.0661 $.1594 $.0948
Ordinary income distributions per share* .0008 .0034 .0291
=======================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
57
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
GEORGIA PREMIUM
INCOME (NPG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) $15.19 $ .44 $ (.47) $(.08) $ -- $ (.11) $(.41) $ -- $(.41)
2005 14.42 .92 .84 (.09) -- 1.67 (.90) -- (.90)
2004 15.36 .97 (.96) (.05) -- (.04) (.90) -- (.90)
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)
GEORGIA DIVIDEND
ADVANTAGE (NZX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 15.30 .47 (.46) (.08) -- (.07) (.44) -- (.44)
2005 14.47 .96 .85 (.10) -- 1.71 (.88) (.01) (.89)
2004 15.62 .97 (1.18) (.06) -- (.27) (.87) (.01) (.88)
2003 14.00 .96 1.65 (.06) (.02) 2.53 (.81) (.13) (.94)
2002(b) 14.33 .58 (.19) (.06) -- .33 (.47) -- (.47)
GEORGIA DIVIDEND
ADVANTAGE 2 (NKG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 14.71 .44 (.46) (.08) -- (.10) (.35) -- (.35)
2005 13.79 .87 .94 (.11) -- 1.70 (.78) -- (.78)
2004 15.01 .88 (1.23) (.05) -- (.40) (.80) (.02) (.82)
2003(c) 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:
2006(a) $ -- $14.67 $14.84 (8.85)% (.77)%
2005 -- 15.19 16.70 15.46 11.88
2004 -- 14.42 15.30 (4.56) (.23)
2003 -- 15.36 16.95 12.92 13.78
2002 -- 14.31 15.83 8.98 7.32
2001 -- 14.15 15.35 30.41 16.98
GEORGIA DIVIDEND
ADVANTAGE (NZX)
----------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 14.79 16.30 5.31 (.49)
2005 .01 15.30 15.89 20.74 12.10
2004 -- 14.47 13.95 (5.15) (1.73)
2003 .03 15.62 15.59 12.56 18.82
2002(b) (.19) 14.00 14.74 1.42 1.02
GEORGIA DIVIDEND
ADVANTAGE 2 (NKG)
----------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 14.26 13.30 (3.78) (.67)
2005 -- 14.71 14.18 13.61 12.61
2004 -- 13.79 13.20 (6.57) (2.67)
2003(c) (.20) 15.01 14.98 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:
2006(a) $55,766 1.25%* 5.83%* 1.23%* 5.85%* 7%
2005 57,687 1.25 6.15 1.23 6.17 18
2004 54,607 1.23 6.54 1.22 6.55 12
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
GEORGIA DIVIDEND
ADVANTAGE (NZX)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 29,045 1.30* 5.74* .84* 6.20* 3
2005 30,007 1.27 5.93 .80 6.39 12
2004 28,348 1.27 6.03 .81 6.49 5
2003 30,576 1.31 6.00 .83 6.49 48
2002(b) 27,381 1.37* 5.70* .92* 6.16* 60
GEORGIA DIVIDEND
ADVANTAGE 2 (NKG)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 64,926 1.24* 5.52* .75* 6.02* 3
2005 66,974 1.23 5.58 .74 6.07 5
2004 62,810 1.22 5.63 .73 6.12 12
2003(c) 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:
2006(a) $27,800 $25,000 $75,150
2005 27,800 25,000 76,877
2004 27,800 25,000 74,107
2003 27,800 25,000 77,203
2002 27,800 25,000 73,480
2001 27,800 25,000 72,813
GEORGIA DIVIDEND
ADVANTAGE (NZX)
-------------------------------------------------------------------
Year Ended 5/31:
2006(a) 15,000 25,000 73,409
2005 15,000 25,000 75,012
2004 15,000 25,000 72,247
2003 15,000 25,000 75,961
2002(b) 15,000 25,000 70,636
GEORGIA DIVIDEND
ADVANTAGE 2 (NKG)
-------------------------------------------------------------------
Year Ended 5/31:
2006(a) 33,000 25,000 74,186
2005 33,000 25,000 75,738
2004 33,000 25,000 72,583
2003(c) 33,000 25,000 76,761
===================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 six months ended November 30, 2005.
(b) For the period September 25, 2001 (commencement of operations) through May
31, 2002.
(c) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
58-59 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 Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NORTH CAROLINA
PREMIUM INCOME (NNC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) $15.16 $ .45 $ (.44) $(.08) $ -- $ (.07) $(.41) $ -- $(.41)
2005 14.55 .91 .70 (.11) -- 1.50 (.89) -- (.89)
2004 15.50 .95 (.95) (.06) -- (.06) (.89) -- (.89)
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)
NORTH CAROLINA
DIVIDEND ADVANTAGE (NRB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 15.46 .47 (.37) (.07) -- .03 (.45) -- (.45)
2005 14.72 .97 .78 (.09) -- 1.66 (.92) -- (.92)
2004 15.87 .98 (1.10) (.05) -- (.17) (.91) (.07) (.98)
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(b) 14.33 .25 (.26) (.05) -- (.06) (.20) -- (.20)
NORTH CAROLINA
DIVIDEND ADVANTAGE 2 (NNO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 15.55 .46 (.45) (.08) -- (.07) (.42) -- (.42)
2005 14.81 .94 .83 (.10) -- 1.67 (.86) (.07) (.93)
2004 15.98 .94 (1.17) (.06) -- (.29) (.85) (.03) (.88)
2003 14.30 .94 1.78 (.07) (.02) 2.63 (.82) (.13) (.95)
2002(c) 14.33 .38 .11 (.04) -- .45 (.34) -- (.34)
NORTH CAROLINA
DIVIDEND ADVANTAGE 3 (NII)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 14.78 .44 (.38) (.07) -- (.01) (.37) -- (.37)
2005 13.89 .89 .91 (.11) -- 1.69 (.80) -- (.80)
2004 14.96 .90 (1.09) (.07) -- (.26) (.80) (.01) (.81)
2003(d) 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:
2006(a) $ -- $14.68 $14.50 (13.53)% (.48)%
2005 -- 15.16 17.20 17.79 10.52
2004 -- 14.55 15.40 (4.08) (.40)
2003 -- 15.50 16.95 10.27 15.80
2002 -- 14.18 16.21 15.44 7.62
2001 -- 13.94 14.80 14.03 16.65
NORTH CAROLINA
DIVIDEND ADVANTAGE (NRB)
----------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 15.04 16.90 .60 .19
2005 -- 15.46 17.25 21.19 11.53
2004 -- 14.72 15.05 (2.76) (1.08)
2003 .01 15.87 16.45 13.52 17.75
2002 -- 14.39 15.44 7.54 9.58
2001(b) (.17) 13.90 15.15 2.42 (1.57)
NORTH CAROLINA
DIVIDEND ADVANTAGE 2 (NNO)
----------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 15.06 15.50 (2.08) (.45)
2005 -- 15.55 16.25 16.46 11.56
2004 -- 14.81 14.80 (1.94) (1.83)
2003 -- 15.98 15.97 14.10 18.98
2002(c) (.14) 14.30 14.90 1.64 2.22
NORTH CAROLINA
DIVIDEND ADVANTAGE 3 (NII)
----------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 14.40 13.95 (7.15) (.10)
2005 -- 14.78 15.40 18.78 12.39
2004 -- 13.89 13.68 (4.93) (1.75)
2003(d) (.21) 14.96 15.20 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:
2006(a) $93,047 1.24%* 5.94%* 1.23%* 5.95%* 8%
2005 96,008 1.23 6.09 1.22 6.10 19
2004 91,941 1.23 6.35 1.22 6.36 20
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
NORTH CAROLINA
DIVIDEND ADVANTAGE (NRB)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 33,901 1.29* 5.73* .82* 6.20* 2
2005 34,820 1.27 5.90 .81 6.35 11
2004 33,110 1.24 5.96 .78 6.42 15
2003 35,591 1.30 6.16 .83 6.62 39
2002 32,148 1.44 6.86 .90 7.40 37
2001(b) 31,015 1.31* 5.02* .85* 5.48* 29
NORTH CAROLINA
DIVIDEND ADVANTAGE 2 (NNO)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 56,373 1.24* 5.54* .77* 6.01* 5
2005 58,155 1.23 5.64 .77 6.10 26
2004 55,311 1.22 5.71 .77 6.16 13
2003 59,642 1.24 5.80 .76 6.27 22
2002(c) 53,383 1.19* 4.70* .74* 5.15* 43
NORTH CAROLINA
DIVIDEND ADVANTAGE 3 (NII)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 56,562 1.23* 5.52* .75* 6.00* 1
2005 58,035 1.24 5.65 .76 6.14 8
2004 54,482 1.22 5.75 .73 6.23 14
2003(d) 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:
2006(a) $46,800 $25,000 $74,705
2005 46,800 25,000 76,286
2004 46,800 25,000 74,114
2003 46,800 25,000 77,236
2002 46,800 25,000 72,695
2001 46,800 25,000 71,802
NORTH CAROLINA
DIVIDEND ADVANTAGE (NRB)
-----------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 17,000 25,000 74,854
2005 17,000 25,000 76,205
2004 17,000 25,000 73,692
2003 17,000 25,000 77,340
2002 17,000 25,000 72,277
2001(b) 17,000 25,000 70,610
NORTH CAROLINA
DIVIDEND ADVANTAGE 2 (NNO)
-----------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 28,000 25,000 75,333
2005 28,000 25,000 76,924
2004 28,000 25,000 74,385
2003 28,000 25,000 78,252
2002(c) 28,000 25,000 72,664
NORTH CAROLINA
DIVIDEND ADVANTAGE 3 (NII)
-----------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 28,000 25,000 75,502
2005 28,000 25,000 76,817
2004 28,000 25,000 73,644
2003(d) 28,000 25,000 77,369
=============================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 six months ended November 30, 2005.
(b) For the period January 25, 2001 (commencement of operations) through May
31, 2001.
(c) For the period November 15, 2001 (commencement of operations) through May
31, 2002.
(d) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
60-61 SPREAD
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like 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
the 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.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage 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.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
62
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
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 the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
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 common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage 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.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
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 period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
63
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $130 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 fixed-income 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.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
ESA-C-1105D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. 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 3, 2006
-------------------------------------------------------------------
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 3, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 3, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.