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, 2004
------------------
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, 2004
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN GEORGIA PREMIUM INCOME MUNICIPAL FUND
NPG
NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NZX
NUVEEN GEORGIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NKG
NUVEEN NORTH CAROLINA PREMIUM INCOME MUNICIPAL FUND
NNC
NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND
NRB
NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NNO
NUVEEN NORTH CAROLINA DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NII
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KEEP.(R)
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Photo: 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 semiannual
report your Fund continued to provide you with monthly income free from federal,
state and, in some cases, local taxes, as well as an attractive total return.
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 I noted in my last letter to you, our conversations with financial advisors
and investors suggest that many of you may be wondering whether interest rates
will soon begin to rise, how high they might go, and whether that makes this a
good time to adjust your holdings of fixed-income investments. We can't answer
that question for you - no one knows what the future will bring.
"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."
From our experience, what we do know is that a well-balanced portfolio,
structured and carefully monitored with the help of a trusted investment
professional, can be an important component in achieving your long-term
financial goals. In fact, a well- diversified portfolio may actually help to
reduce your overall investment risk. That is one reason why we believe that a
municipal bond investment like your Nuveen Fund can be an important building
block in a comprehensive investment program designed to perform well in a
variety of market conditions.
As in past reports, I'd also like to direct your attention to the inside front
cover, which explains the quick and easy process to begin receiving these Fund
reports via e-mail and the internet. Thousands of Nuveen Fund shareholders
already have signed-up, and they are getting their Fund information faster and
more conveniently than ever. I urge you to consider joining them.
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 14, 2005
Nuveen Georgia and North Carolina Municipal Closed-End
Exchange-Traded Funds
(NPG, NZX, NKG, NNC, NRB, NNO, NII)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves discusses the key investment strategies and
semiannual performance of these Nuveen Funds. Cathryn, who joined Nuveen in
1996, assumed portfolio management responsibility for the North Carolina Funds
in February 2004 and for the Georgia Funds in August 2004.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE GEORGIA AND NORTH CAROLINA FUNDS
DURING THE SIX MONTHS ENDED NOVEMBER 30, 2004?
As the market continued to anticipate a possible increase in interest rates, our
focus during this reporting period centered on finding bonds that we thought had
the potential to add value immediately and also perform well under a variety of
future market scenarios. This included purchasing bonds with maturities that we
thought had the strongest potential given the relative steepness of the yield
curve. In general, our purchase activity in both the Georgia and North Carolina
Funds emphasized securities in the long-intermediate part of the yield curve;
that is, bonds that mature between 2021 and 2025. In many cases, bonds in this
part of the curve offered yields similar to those of longer-term bonds with less
inherent interest rate risk and, in our opinion, greater total return potential.
In both the Georgia and North Carolina Funds, we also focused on adding some
bonds with coupons above current market rates because we believed they could
help to position the Funds more defensively and mitigate some of the interest
rate risk if rates rise from their current levels. Over this six-month period,
municipal issuance in Georgia increased substantially from the previous six
months. This increased supply provided greater access to the premium coupon
bonds we sought. We also worked to make the credit risks within each of these
Georgia Funds more similar to each other. As a result, some Funds saw their
allocations to BBB rated bonds increase, while these allocations decreased in
other Funds.
In North Carolina, municipal supply was more limited than in Georgia, which
helped to support bond prices in this market. Similar to the Georgia Funds, we
worked to manage each of the North Carolina Fund's holdings of BBB rated bonds,
while trying to reduce overall credit risk by selectively trimming concentrated
positions.
One of our longer-term goals is to position all of these Funds so that they
provide return variability and interest rate risk roughly comparable to the
variability and risk of the bond markets in which the Funds invest. (Interest
rate risk is the risk that values will fall because
4
of an increase in market interest rates.) As one strategy to reach this goal, we
attempted to reduce some of the interest rate risk of NZX, NKG, NRB and NII by
hedging in the derivatives market. Our only objective with these hedges was to
reduce the duration of these Funds without having a negative impact on their
dividends. These hedges do not affect the Funds' income streams or
dividend-paying capabilities over the short-term. Instead, the costs of the
hedges are reflected as an addition or subtraction from each Fund's net asset
value as the value of the hedge fluctuates. Each of the hedges had a negative
impact on its Fund's NAV as of November 30, 2004, because interest rates fell
and bond prices rose during the periods in which the hedges were in place. In
each case, this loss in value was at least partly offset by the fact that the
Fund's portfolio, because it had longer-than-target duration, increased in value
by more as a result of these interest rate changes than if the Fund had
maintained a portfolio with the targeted duration. (NNO also instituted a
similar hedging program after the conclusion of this reporting period.)
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as for relevant comparative indexes,
are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 11/30/04
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NPG 5.96% 5.31% 8.71% 9.49%
--------------------------------------------------------------------------------
NZX 6.53% 5.39% NA NA
--------------------------------------------------------------------------------
NKG 6.58% 5.03% NA NA
--------------------------------------------------------------------------------
NNC 5.44% 4.87% 9.00% 9.54%
--------------------------------------------------------------------------------
NRB 6.01% 5.31% NA NA
--------------------------------------------------------------------------------
NNO 6.19% 5.16% NA NA
--------------------------------------------------------------------------------
NII 6.39% 5.20% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index1 4.30% 4.08% 6.78% 7.16%
--------------------------------------------------------------------------------
Lipper Other States
Municipal Debt Funds
Average2 6.58% 5.69% 8.71% 8.95%
--------------------------------------------------------------------------------
* Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Returns do not reflect the
deduction of taxes that a shareholder may have to pay on Fund distributions or
upon the sale of Fund shares.
For additional information, see the individual Performance Overview for each
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, 44 funds; 1 year, 44 funds; 5 years,
19 funds; and 10 years, 17 funds. Fund and Lipper returns assume
reinvestment of dividends.
5
For the six months ended November 30, 2004, the cumulative returns on net asset
value (NAV) for all seven Funds in this report outperformed the return on the
Lehman Brothers Municipal Bond Index. NKG also performed in line with the
average return for the Lipper Other States category, while NPG, NZX, NNC, NRB,
NNO and NII trailed this measure. It should be noted that the performance of the
Lipper Other States category represents the overall average of returns for funds
from 10 different states with a wide variety of municipal market conditions,
making direct comparisons between specific Funds and the category average less
meaningful.
One of the primary factors benefiting the six-month performances of these Funds
relative to that of the unmanaged Lehman Brothers index was the Funds' use of
financial leverage. While leveraging can add volatility to the Funds' NAVs and
share prices, especially during periods of rising interest rates, this strategy
can also provide opportunities for additional income and total returns for
common shareholders when short-term interest rates remain relatively low, and
long-term rates fall or remain relatively constant, as they did during this
reporting period.
As discussed earlier, one of our strategies over this six-month period involved
working to enhance each Fund's yield curve positioning. As a result, we believe
that each of these Funds was generally well positioned for the rate environment
of this period. However, work continues on NPG and NNC, which were less
optimally positioned because of their relatively greater exposure to bonds in
the short part of the yield curve. This detracted from their performance as
long-and intermediate-term interest rates fell during this period. Many of the
shorter maturity bonds in the two Funds' portfolios were purchased when they had
higher yields than bonds available in the current market. As a result, we have
maintained these holdings to provide support for the Funds' monthly dividends.
All of these Funds benefited from their holdings of lower-quality bonds, which
generally outperformed other higher-rated sectors as the economy improved. Among
the BBB rated bonds making a strong contribution to the total returns of the
three Georgia Funds as well as that of NII were bonds issued by Puerto Rico and
backed by the 1998 master tobacco settlement agreement. During this reporting
period, the price performance of these bonds was favorably affected by an
improved litigation environment and the lack of supply combined with continued
demand.
6
The returns of all seven of these Funds also were helped to varying degrees by
the performance of their healthcare sector holdings, especially hospital bonds.
As of November 30, 2004, exposure to the healthcare sector in these Funds was
23% in NPG, 21% in NKG, 18% in NZX, 15% in NRB, 14% in NNC and NNO, and 6% in
NII.
One area of the market that did not perform well during this period was
structured finance bonds, which includes the housing sector as well as student
loan bonds. While these types of securities generally provide higher yields and
help to reduce volatility in a rising interest rate environment, their
underperformance during this six months stemmed largely from lower demand due to
concerns about prepayments and increased bond calls as interest rates remained
low. NNC, in particular, held a number of student loan bonds, while all of the
Funds had varying exposure to housing bonds as of November 30, 2004.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As short-term interest rates remained relatively low throughout this reporting
period, the leveraged structures of these seven Funds continued to support their
dividend-paying capabilities. The extent of this benefit is tied in part to the
short-term rates these 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. This strategy helped to maintain the dividends of all
these Funds throughout the reporting period.
All of these Funds 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, 2004, NPG, NZX, NNC, NRB and
NNO had positive UNII balances for both financial statement and tax purposes.
NKG and NII had negative UNII balances for financial statement purposes and
positive UNII balances for tax purposes.
7
As of November 30, 2004, the Funds were trading at premiums or discounts to
their net asset values as shown in the accompanying chart.
FUND 11/30 PREM/DISC PERIOD AVG. PREM/DISC
--------------------------------------------------------------------------------
NPG 11.13% 5.43%
--------------------------------------------------------------------------------
NZX 2.14% - 1.80%
--------------------------------------------------------------------------------
NKG - 4.90% - 3.56%
--------------------------------------------------------------------------------
NNC 10.01% 7.14%
--------------------------------------------------------------------------------
NRB 8.65% 5.27%
--------------------------------------------------------------------------------
NNO 5.49% 1.18%
--------------------------------------------------------------------------------
NII 3.34% 1.15%
--------------------------------------------------------------------------------
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
NOVEMBER 30, 2004?
We continued to believe that, given the current geopolitical and economic
climate, maintaining strong credit quality was an important requirement. As of
November 30, 2004, these seven Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. Guaranteed and AA in the
Georgia Funds ranging from 82% in NZX to 83% in NPG and 89% in NKG and, among
the North Carolina Funds, from 79% in NNC, to 86% in NRB, 88% in NNO and 93% in
NII.
As of November 30, 2004, potential call exposure during 2005 and 2006 ranged
from 0% in NZX to 3% in NKG, 4% in NNO, 5% in NRB and 6% in NII. NPG faced a
potential 16% call exposure, and NNC a potential 17%, during 2005-2006. This
included a number of higher-yielding student loan and housing bonds with short
call dates that we continued to hold due to the income they provided. The number
of actual bond calls in all of these Funds depends largely on future market
interest rates.
8
Nuveen Georgia Premium Income Municipal Fund
NPG
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 73%
AA 10%
A 11%
BBB 5%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0755
Jan 0.0755
Feb 0.0755
Mar 0.0755
Apr 0.0755
May 0.0755
Jun 0.0755
Jul 0.0755
Aug 0.0755
Sep 0.0755
Oct 0.0755
Nov 0.0755
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 16.5
17
17.15
17.08
17.35
17.08
17.07
17.21
17.34
17.25
17.5
17.5
17.45
17.3
17.14
17.15
17.3
17.25
16.26
15.5
15.22
14.81
14.55
14.67
15.3
15.15
14.55
14.59
14.76
14.97
15.04
14.97
15.13
15.6
15.5
15.51
15.55
15.9
16.1
15.95
16.11
16.04
16.15
15.88
16.16
16.2
16.23
16.36
16.09
11/30/04 16.45
FUND SNAPSHOT
------------------------------------
Share Price $16.47
------------------------------------
Common Share
Net Asset Value $14.82
------------------------------------
Premium/(Discount) to NAV 11.13%
------------------------------------
Market Yield 5.50%
------------------------------------
Taxable-Equivalent Yield1 8.15%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,218
------------------------------------
Average Effective Maturity
on Securities (Years) 18.55
------------------------------------
Leverage-Adjusted Duration 8.47
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 10.79% 5.96%
------------------------------------
1-Year 8.23% 5.31%
------------------------------------
5-Year 9.83% 8.71%
------------------------------------
10-Year 10.33% 9.49%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 23.2%
------------------------------------
Water and Sewer 16.0%
------------------------------------
Housing/Multifamily 12.1%
------------------------------------
Education and Civic
Organizations 9.9%
------------------------------------
Tax Obligation/Limited 8.9%
------------------------------------
Utilities 7.2%
------------------------------------
Tax Obligation/General 6.6%
------------------------------------
Housing/Single Family 4.8%
------------------------------------
Consumer Staples 3.6%
------------------------------------
Other 7.7%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. For 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 2003 of $0.0063 per share.
9
Nuveen Georgia Dividend Advantage Municipal Fund
NZX
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 74%
AA 8%
A 7%
BBB 11%
Bar Chart:
2003-2004 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.
12/1/03 15.35
15.22
15.3
15.28
15.4
15.86
16.2
15.68
15.69
15.82
16.3
15.95
16.05
15.89
15.94
16.38
16.44
16.08
15
14.15
14.25
13.45
13.03
13.58
13.95
14.12
13.53
13.7
13.97
14.16
14.35
14.05
14.12
14.41
14.32
14.78
14.95
14.87
14.7
14.9
14.84
14.89
14.98
15.3
15.41
15.32
15.26
15.33
15.25
11/30/04 15.55
FUND SNAPSHOT
------------------------------------
Share Price $15.29
------------------------------------
Common Share
Net Asset Value $14.97
------------------------------------
Premium/(Discount) to NAV 2.14%
------------------------------------
Market Yield 5.73%
------------------------------------
Taxable-Equivalent Yield1 8.49%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $29,342
------------------------------------
Average Effective Maturity
on Securities (Years) 17.96
------------------------------------
Leverage-Adjusted Duration 7.72
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 12.90% 6.53%
------------------------------------
1-Year 7.07% 5.39%
------------------------------------
Since
Inception 6.52% 7.44%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 20.6%
------------------------------------
Healthcare 18.3%
------------------------------------
Water and Sewer 12.5%
------------------------------------
Utilities 10.9%
------------------------------------
Housing/Multifamily 8.0%
------------------------------------
Tax Obligation/General 6.3%
------------------------------------
Housing/Single Family 6.3%
------------------------------------
Tax Obligation/Limited 6.2%
------------------------------------
Transportation 2.5%
------------------------------------
Other 8.4%
------------------------------------
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%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains distributions in December
2003 of $0.0136 per share.
10
Nuveen Georgia Dividend Advantage Municipal Fund 2
NKG
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 14%
A 2%
BBB 9%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.067
Apr 0.067
May 0.067
Jun 0.067
Jul 0.067
Aug 0.067
Sep 0.067
Oct 0.067
Nov 0.067
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 13.52
13.48
13.72
13.53
13.85
14.22
14.68
14.3
14.31
14.66
14.65
14.85
14.85
15
14.77
14.96
14.83
14.65
13.8
13.6
13.55
12.6
12.31
12.92
13.2
13.07
12.58
12.85
13.29
13.35
13.41
13.4
13.22
13.6
13.6
13.84
14.15
13.96
14.5
14.33
14.28
14.06
14.18
14.15
14.42
14.39
14
13.59
13.65
11/30/04 13.75
FUND SNAPSHOT
------------------------------------
Share Price $13.59
------------------------------------
Common Share
Net Asset Value $14.29
------------------------------------
Premium/(Discount) to NAV -4.90%
------------------------------------
Market Yield 5.92%
------------------------------------
Taxable-Equivalent Yield1 8.77%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $65,085
------------------------------------
Average Effective Maturity
on Securities (Years) 19.79
------------------------------------
Leverage-Adjusted Duration 7.79
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.98% 6.58%
------------------------------------
1-Year 5.38% 5.03%
------------------------------------
Since
Inception 0.98% 5.45%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 20.9%
------------------------------------
Healthcare 20.6%
------------------------------------
Water and Sewer 14.9%
------------------------------------
Education and Civic
Organizations 14.7%
------------------------------------
Utilities 6.5%
------------------------------------
Tax Obligation/General 6.2%
------------------------------------
Transportation 4.0%
------------------------------------
Housing/Single Family 3.7%
------------------------------------
Other 8.5%
------------------------------------
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%. For 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 2003 of $0.0218 per share.
11
Nuveen North Carolina Premium Income Municipal Fund
NNC
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 48%
AA 31%
A 14%
BBB 7%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0745
Jul 0.0745
Aug 0.0745
Sep 0.0745
Oct 0.0745
Nov 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 17
16.85
17.09
17.08
17.2
17.13
17.01
17.41
17.16
17.18
17.07
17.15
17.1
17.3
16.92
17.47
17.07
16.85
16.09
15.82
14.85
14.31
14.19
14.85
15.4
15.2
14.68
14.58
15.08
15.38
15.24
15.62
15.85
16.3
16.17
16.5
16.25
16.4
16.5
16.45
16.23
16.29
16.46
16.77
16.4
16.48
16.51
16.33
16.51
11/30/04 16.51
FUND SNAPSHOT
------------------------------------
Share Price $16.38
------------------------------------
Common Share
Net Asset Value $14.89
------------------------------------
Premium/(Discount) to NAV 10.01%
------------------------------------
Market Yield 5.46%
------------------------------------
Taxable-Equivalent Yield1 8.27%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $94,202
------------------------------------
Average Effective Maturity
on Securities (Years) 15.57
------------------------------------
Leverage-Adjusted Duration 7.80
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 5/20/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 9.34% 5.44%
------------------------------------
1-Year 4.04% 4.87%
------------------------------------
5-Year 9.00% 9.00%
------------------------------------
10-Year 9.23% 9.54%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 19.5%
------------------------------------
Education and Civic
Organizations 18.5%
------------------------------------
Healthcare 13.9%
------------------------------------
U.S. Guaranteed 13.1%
------------------------------------
Tax Obligation/General 9.4%
------------------------------------
Housing/Single Family 6.4%
------------------------------------
Housing/Multifamily 5.9%
------------------------------------
Utilities 5.6%
------------------------------------
Other 7.7%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 34%. For 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, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 53%
AA 33%
A 9%
BBB 5%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
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 0.0765
Oct 0.0765
Nov 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 16.5
16.64
16.33
16.75
16.75
16.8
16.8
16.88
16.88
16.77
16.69
16.72
16.8
16.84
16.96
17.02
17.15
16.8
16.1
15.5
15.54
15.1
14.96
15
15.05
14.76
14.92
14.72
14.9
15.2
15.55
15.34
15.55
15.81
15.85
15.96
16.12
16.1
16.3
16.25
16.25
16.43
16.56
16.85
16.62
16.69
16.75
16.84
17
11/30/04 16.54
FUND SNAPSHOT
------------------------------------
Share Price $16.45
------------------------------------
Common Share
Net Asset Value $15.14
------------------------------------
Premium/(Discount) to NAV 8.65%
------------------------------------
Market Yield 5.58%
------------------------------------
Taxable-Equivalent Yield1 8.45%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $34,089
------------------------------------
Average Effective Maturity
on Securities (Years) 17.64
------------------------------------
Leverage-Adjusted Duration 7.34
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 12.48% 6.01%
------------------------------------
1-Year 6.93% 5.31%
------------------------------------
Since
Inception 8.48% 7.73%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 17.9%
------------------------------------
Water and Sewer 17.1%
------------------------------------
Healthcare 15.0%
------------------------------------
Tax Obligation/Limited 13.4%
------------------------------------
Utilities 13.4%
------------------------------------
Housing/Multifamily 9.6%
------------------------------------
Tax Obligation/General 4.2%
------------------------------------
Other 9.4%
------------------------------------
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%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0713 per share.
13
Nuveen North Carolina Dividend Advantage Municipal Fund 2
NNO
Performance
OVERVIEW As of November 30, 2004
NNO
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 63%
AA 25%
A 8%
BBB 4%
Bar Chart:
2003-2004 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 0.072
Oct 0.072
Nov 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 15.68
15.7
15.63
15.64
15.95
15.9
16
16.35
16.33
16.22
16.39
16.25
16.18
16.22
16.2
16.35
16.44
16.45
15.56
15.2
14.95
15.05
14.8
14.5
14.8
14.8
14.66
15.85
14.95
14.9
15.02
14.98
15.05
15.42
15.28
15.49
15.54
15.6
15.73
15.47
15.7
15.6
15.85
15.76
15.74
16.11
16.03
15.72
15.95
11/30/04 16.1
FUND SNAPSHOT
------------------------------------
Share Price $16.13
------------------------------------
Common Share
Net Asset Value $15.29
------------------------------------
Premium/(Discount) to NAV 5.49%
------------------------------------
Market Yield 5.36%
------------------------------------
Taxable-Equivalent Yield1 8.12%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $57,126
------------------------------------
Average Effective Maturity
on Securities (Years) 14.16
------------------------------------
Leverage-Adjusted Duration 8.85
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 12.04% 6.19%
------------------------------------
1-Year 8.74% 5.16%
------------------------------------
Since
Inception 8.29% 8.11%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 19.8%
------------------------------------
Education and Civic
Organizations 15.7%
------------------------------------
Healthcare 14.4%
------------------------------------
Water and Sewer 10.2%
------------------------------------
Transportation 8.6%
------------------------------------
Utilities 8.3%
------------------------------------
U.S. Guaranteed 8.1%
------------------------------------
Tax Obligation/General 5.5%
------------------------------------
Other 9.4%
------------------------------------
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%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0285 per share.
14
Nuveen North Carolina Dividend Advantage Municipal Fund 3
NII
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 64%
AA 29%
A 2%
BBB 5%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.067
Apr 0.067
May 0.067
Jun 0.067
Jul 0.067
Aug 0.067
Sep 0.067
Oct 0.067
Nov 0.067
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 14.6
14.95
14.87
14.69
15.2
14.95
15.02
15.17
14.9
15.07
15.2
15.2
15.25
15.41
15.5
15.5
15.3
15.39
14.65
14.44
13.93
14.17
13.65
13.55
13.68
14.1
13.79
13.62
13.85
14.04
14.2
14.03
14.32
14.4
14.34
14.67
14.57
14.64
14.78
14.48
14.78
14.65
14.89
14.85
14.94
15.12
15
14.65
15.15
11/30/04 15.13
FUND SNAPSHOT
------------------------------------
Share Price $14.85
------------------------------------
Common Share
Net Asset Value $14.37
------------------------------------
Premium/(Discount) to NAV 3.34%
------------------------------------
Market Yield 5.41%
------------------------------------
Taxable-Equivalent Yield1 8.20%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $56,395
------------------------------------
Average Effective Maturity
on Securities (Years) 17.88
------------------------------------
Leverage-Adjusted Duration 7.42
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 11.58% 6.39%
------------------------------------
1-Year 7.11% 5.20%
------------------------------------
Since
Inception 4.86% 5.65%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 30.7%
------------------------------------
Water and Sewer 17.7%
------------------------------------
Education and Civic
Organizations 11.1%
------------------------------------
Tax Obligation/General 10.2%
------------------------------------
Utilities 10.0%
------------------------------------
Healthcare 6.5%
------------------------------------
Transportation 6.2%
------------------------------------
Other 7.6%
------------------------------------
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%. For 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 2003 of $0.0071 per share.
15
Shareholder
MEETING REPORT
The Shareholder Meeting was held November 17, 2004, at 8:30 AM (Pacific time) in
the Embassy Room of the Mandarin Oriental Hotel, 222 Sansome Street, San
Francisco, CA 94104-2792.
NPG NZX NKG
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 3,599,302 -- 1,931,928 -- 4,444,556 --
Withhold 25,152 -- 1,010 -- 11,325 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,624,454 -- 1,932,938 -- 4,455,881 --
====================================================================================================================================
Lawrence H. Brown
For 3,604,952 -- 1,931,928 -- 4,441,156 --
Withhold 19,502 -- 1,010 -- 14,725 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,624,454 -- 1,932,938 -- 4,455,881 --
====================================================================================================================================
Jack B. Evans
For 3,604,751 -- 1,930,928 -- 4,443,556 --
Withhold 19,703 -- 2,010 -- 12,325 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,624,454 -- 1,932,938 -- 4,455,881 --
====================================================================================================================================
William C. Hunter
For 3,601,752 -- 1,930,928 -- 4,443,556 --
Withhold 22,702 -- 2,010 -- 12,325 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,624,454 -- 1,932,938 -- 4,455,881 --
====================================================================================================================================
William J. Schneider
For -- 1,097 -- 576 -- 1,299
Withhold -- -- -- -- -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,097 -- 576 -- 1,302
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,097 -- 576 -- 1,302
Withhold -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,097 -- 576 -- 1,302
====================================================================================================================================
Judith M. Stockdale
For 3,603,952 -- 1,930,928 -- 4,443,118 --
Withhold 20,502 -- 2,010 -- 12,763 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,624,454 -- 1,932,938 -- 4,455,881 --
====================================================================================================================================
16
NNC NRB NNO
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 5,964,053 -- 2,221,275 -- 3,678,899 --
Withhold 45,012 -- 16,768 -- 15,772 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,009,065 -- 2,238,043 -- 3,694,671 --
====================================================================================================================================
Lawrence H. Brown
For 5,964,453 -- 2,221,275 -- 3,678,899 --
Withhold 44,612 -- 16,768 -- 15,772 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,009,065 -- 2,238,043 -- 3,694,671 --
====================================================================================================================================
Jack B. Evans
For 5,964,482 -- 2,221,275 -- 3,681,499 --
Withhold 44,583 -- 16,768 -- 13,172 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,009,065 -- 2,238,043 -- 3,694,671 --
====================================================================================================================================
William C. Hunter
For 5,966,114 -- 2,221,605 -- 3,678,899 --
Withhold 42,951 -- 16,438 -- 15,772 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,009,065 -- 2,238,043 -- 3,694,671 --
====================================================================================================================================
William J. Schneider
For -- 1,611 -- 633 -- 938
Withhold -- 1 -- 5 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,612 -- 638 -- 939
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,611 -- 633 -- 938
Withhold -- 1 -- 5 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,612 -- 638 -- 939
====================================================================================================================================
Judith M. Stockdale
For 5,964,482 -- 2,219,775 -- 3,678,849 --
Withhold 44,583 -- 18,268 -- 15,822 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,009,065 -- 2,238,043 -- 3,694,671 --
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NII
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
====================================================================================================================================
Robert P. Bremner
For 3,885,357 --
Withhold 28,863 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,914,220 --
====================================================================================================================================
Lawrence H. Brown
For 3,885,357 --
Withhold 28,863 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,914,220 --
====================================================================================================================================
Jack B. Evans
For 3,882,691 --
Withhold 31,529 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,914,220 --
====================================================================================================================================
William C. Hunter
For 3,882,691 --
Withhold 31,529 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,914,220 --
====================================================================================================================================
William J. Schneider
For -- 1,053
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,053
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,053
Withhold -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,053
====================================================================================================================================
Judith M. Stockdale
For 3,879,046 --
Withhold 35,174 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,914,220 --
====================================================================================================================================
18
Nuveen Georgia Premium Income Municipal Fund (NPG)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.3% (3.6% OF TOTAL INVESTMENTS)
$ 2,000 Cartersville Development Authority, Georgia, Water and 5/07 at 101.00 A+ $ 2,074,760
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 919,370
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.7% (9.9% OF TOTAL INVESTMENTS)
1,000 Athens-Clarke County Unified Government Development 12/12 at 100.00 AAA 1,071,010
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 1,274,312
1,375 5.750%, 12/01/25 - MBIA Insured 12/05 at 102.00 AAA 1,444,671
1,550 Bulloch County Development Authority, Georgia, Student 8/14 at 100.00 Aaa 1,660,965
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 730,429
Housing Revenue Bonds, University of West Georgia,
Series 2004A, 5.000%, 9/01/21 - XLCA Insured
395 DeKalb County Development Authority, Georgia, Revenue 4/05 at 102.00 AA 404,172
Bonds, Emory University, Series 1994A, 6.000%, 10/01/14
1,535 Fulton County Development Authority, Georgia, Revenue 5/14 at 100.00 AAA 1,698,907
Bonds, Georgia Tech Molecular Science Building,
Series 2004, 5.250%, 5/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 34.7% (23.2% OF TOTAL INVESTMENTS)
2,300 Chatham County Hospital Authority, Savannah, Georgia, 7/11 at 101.00 A- 2,490,440
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 2,043,060
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+ 921,177
Coffee County Regional Medical Center, Series 2004,
5.250%, 12/01/22
3,000 Floyd County Hospital Authority, Georgia, Revenue 7/12 at 101.00 Aaa 3,096,810
Anticipation Certificates, Floyd Medical Center Project,
Series 2002, 5.200%, 7/01/32 - MBIA Insured
1,090 Floyd County Hospital Authority, Georgia, Revenue 7/13 at 101.00 Aaa 1,157,068
Anticipation Certificates, Floyd Medical Center,
Series 2003, 5.000%, 7/01/19 - MBIA Insured
1,765 Gainesville and Hall County Hospital Authority, Georgia, 10/05 at 102.00 AAA 1,850,002
Revenue Anticipation Certificates, Northeast Georgia
Health Services Inc., Series 1995, 6.000%, 10/01/25 -
MBIA Insured
1,750 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 1,792,420
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 3,935,738
Anticipation Certificates, Gwinnett Hospital System Inc.
Project, Series 1997B, 5.300%, 9/01/27 - MBIA Insured
1,060 Henry County Hospital Authority, Georgia, Revenue 7/14 at 101.00 Aaa 1,125,232
Certificates, 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 1,042,510
St. Joseph's/Candler Health System, Series 2003,
5.250%, 7/01/23 - RAAI Insured
19
Nuveen Georgia Premium Income Municipal Fund (NPG) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 18.0% (12.1% OF TOTAL INVESTMENTS)
$ 3,400 DeKalb County Housing Authority, Georgia, Multifamily 1/05 at 102.00 AAA $ 3,471,298
Housing Revenue Bonds, Lakes at Indian Creek Apartments,
Series 1994, 7.150%, 1/01/25 (Alternative Minimum Tax) -
FSA Insured
2,000 Lawrenceville Housing Authority, Georgia, Multifamily 12/10 at 100.00 AAA 2,049,920
Housing Senior Revenue Bonds, Brisben Green of Hillcrest II,
Series 2000A-1, 5.800%, 12/01/33 (Alternative Minimum
Tax) - AMBAC Insured
3,000 Macon-Bibb County Urban Development Authority, Georgia, 1/05 at 102.50 AAA 3,091,110
Multifamily Housing Revenue Refunding Bonds,
Series 1997A, 5.550%, 1/01/24 - MBIA Insured
1,500 Marietta Housing Authority, Georgia, GNMA Collateralized 10/06 at 102.00 AAA 1,530,510
Multifamily Housing Revenue Bonds, Country Oaks
Apartments, Series 1996, 6.150%, 10/20/26 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.1% (4.8% OF TOTAL INVESTMENTS)
55 Fulton County Housing Authority, Georgia, GNMA 3/05 at 102.00 AAA 55,467
Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1995A, 6.550%, 3/01/18
(Alternative Minimum Tax)
2,950 Georgia Housing and Finance Authority, Single Family 12/10 at 100.00 AAA 3,011,360
Mortgage Resolution 1 Bonds, Series 2001A-2,
5.700%, 12/01/31 (Alternative Minimum Tax)
900 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA 927,684
Mortgage Bonds, Series 2002B-2, 5.350%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
500 Savannah Economic Development Authority, Georgia, 7/12 at 100.00 AAA 519,970
Revenue Bonds, GTREP Project, Series 2002,
5.000%, 7/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.3% (2.2% OF TOTAL INVESTMENTS)
750 Effingham County Industrial Development Authority, Georgia, 6/11 at 101.00 BB+ 777,150
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 1,057,940
Environmental Improvement Revenue Bonds, International
Paper Company, Series 2001A, 6.250%, 2/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.9% (6.6% OF TOTAL INVESTMENTS)
1,805 Forsyth County, Georgia, General Obligation Bonds, No Opt. Call AA 2,009,362
Series 2004, 5.250%, 3/01/13
2,500 Georgia, General Obligation Bonds, Series 2002D, 8/12 at 100.00 AAA 2,693,525
5.000%, 8/01/16
800 Puerto Rico, General Obligation and Public Improvement 7/14 at 100.00 A- 843,080
Bonds, Series 2004A, 5.250%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.2% (8.9% OF TOTAL INVESTMENTS)
3,000 Cobb-Marietta Coliseum and Exhibit Hall Authority, Georgia, 10/19 at 100.00 AAA 3,378,330
Revenue Refunding Bonds, Series 1993, 5.625%, 10/01/26 -
MBIA Insured
2,600 Macon-Bibb County Urban Development Authority, Georgia, 8/12 at 101.00 AA 2,850,458
Revenue Refunding Bonds, Public Facilities Projects,
Series 2002A, 5.375%, 8/01/17
1,000 Metropolitan Atlanta Rapid Transit Authority, Georgia, No Opt. Call AAA 1,205,780
Sales Tax Revenue Refunding Bonds, Series 1992P,
6.250%, 7/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.0% (1.4% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Airport Facilities Revenue Refunding Bonds, No Opt. Call AAA 1,141,680
Series 1994A, 6.500%, 1/01/09 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 5.3% (3.5% OF TOTAL INVESTMENTS)
2,500 Forsyth County School District, Georgia, General Obligation 2/10 at 102.00 AA*** 2,862,950
Bonds, Series 1999, 5.750%, 2/01/19 (Pre-refunded to 2/01/10)
85 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+*** 96,436
Obligation Bonds, Fifth Crossover Series 1998Y,
6.400%, 1/01/09
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.8% (7.2% OF TOTAL INVESTMENTS)
$ 885 Coweta County Development Authority, Georgia, Revenue 1/13 at 100.00 Aaa $ 953,464
Bonds, Newnan Water, Sewerage, 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 1,053,020
Series 2000, 5.750%, 10/01/20
1,000 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call AAA 1,135,610
Bonds, Series 1993Z, 5.500%, 1/01/20 - FGIC Insured
1,665 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ 1,875,656
Obligation Bonds, Fifth Crossover Series 1998Y,
6.400%, 1/01/09
1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 AAA 1,038,690
Subordinated Lien Revenue Bonds, Series 2003A,
5.000%, 1/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 23.8% (16.0% OF TOTAL INVESTMENTS)
1,225 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 1,273,032
Series 2004, 5.000%, 11/01/24 - FSA Insured
Augusta, Georgia, Water and Sewerage Revenue Bonds,
Series 2002:
500 5.000%, 10/01/16 - FSA Insured 10/12 at 100.00 AAA 534,710
1,990 5.000%, 10/01/17 - FSA Insured 10/12 at 100.00 AAA 2,118,771
3,500 Coweta County Water and Sewer Authority, Georgia, 6/11 at 102.00 Aaa 3,685,010
Revenue Bonds, Series 2001, 5.250%, 6/01/26 -
AMBAC Insured
2,500 DeKalb County, Georgia, Water and Sewerage Bonds, 10/10 at 101.00 AA 2,552,550
Series 2000, 5.125%, 10/01/31
1,950 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 1/14 at 100.00 AAA 2,040,500
Series 2004, 5.000%, 1/01/22 - FGIC Insured
1,000 Midgeville, Georgia, Water and Sewerage Revenue Refunding No Opt. Call AAA 1,189,610
Bonds, Series 1996, 6.000%, 12/01/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 78,940 Total Long-Term Investments (cost $79,955,896) - 149.0% 83,757,686
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.5% 259,857
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.5)% (27,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 56,217,543
====================================================================================================================
(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.
** 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, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.7% (1.8% OF TOTAL INVESTMENTS)
$ 750 DeKalb County Development Authority, Georgia, Pollution 12/12 at 101.00 Baa2 $ 796,020
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+ 1,044,870
Wastewater Facilities Revenue Refunding Bonds, Anheuser
Busch Companies Inc. Project, Series 2002, 5.950%, 2/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 30.5% (20.6% OF TOTAL INVESTMENTS)
1,000 Athens Housing Authority, Georgia, Student Housing Lease 12/12 at 100.00 Aaa 1,078,700
Revenue Bonds, UGAREF East Campus Housing LLC Project,
Series 2002, 5.250%, 12/01/21 - AMBAC Insured
1,200 Atlanta Development Authority, Georgia, Revenue Bonds, 1/12 at 100.00 AAA 1,233,960
Yamacraw Design Center Project, Series 2001A,
5.125%, 1/01/27 - MBIA Insured
1,475 Bulloch County Development Authority, Georgia, Student 8/14 at 100.00 Aaa 1,587,838
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 1,701,421
Housing Lease Revenue Bonds, Georgia Southern University
Project, Series 2002, 5.000%, 8/01/20 - AMBAC Insured
500 Carrollton Payroll Development Authority, Georgia, 9/14 at 100.00 Aaa 521,735
Student Housing Revenue Bonds, University of West Georgia,
Series 2004A, 5.000%, 9/01/21 - XLCA Insured
1,485 Fulton County Development Authority, Georgia, Revenue 4/12 at 100.00 AAA 1,556,874
Bonds, Georgia Tech Athletic Association, Series 2001,
5.000%, 10/01/20 - AMBAC Insured
1,250 Private Colleges and Universities Authority, Georgia, 10/11 at 102.00 Baa1 1,293,188
Revenue Bonds, Mercer University, Series 2001,
5.750%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 27.3% (18.3% OF TOTAL INVESTMENTS)
1,000 Clarke County Hospital Authority, Georgia, Hospital Revenue 1/12 at 101.00 AAA 1,074,960
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+ 511,765
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- 1,280,300
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 1,994,107
Anticipation Certificates, Gwinnett Hospital System Inc.
Project, Series 1997B, 5.300%, 9/01/27 - MBIA Insured
500 Henry County Hospital Authority, Georgia, Revenue 7/14 at 101.00 Aaa 530,770
Certificates, 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 521,255
St. Joseph's/Candler Health System, Series 2003,
5.250%, 7/01/23 - RAAI Insured
2,000 Valdosta and Lowndes County Hospital Authority, 10/12 at 101.00 AAA 2,090,280
Georgia, Revenue Certificates, South Georgia Medical
Center, Series 2002, 5.250%, 10/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.9% (8.0% OF TOTAL INVESTMENTS)
990 DeKalb County Housing Authority, Georgia, GNMA 8/11 at 103.00 Aaa 1,010,790
Collateralized Multifamily Housing Revenue Bonds,
Castaways Apartments, Series 2001A, 5.400%, 2/20/29
995 DeKalb County Housing Authority, Georgia, GNMA 12/11 at 103.00 Aaa 1,021,248
Collateralized Multifamily Housing Revenue Bonds,
Snapwoods Apartments, Series 2001A, 5.500%, 12/20/32
1,385 Savannah Housing Authority, Georgia, FNMA Multifamily 8/16 at 100.00 Aaa 1,448,502
Housing Revenue Refunding Bonds, Chatham Gardens,
Series 2001, 5.625%, 8/01/31 (Alternative Minimum Tax)
(Mandatory put 2/01/19)
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.4% (6.3% OF TOTAL INVESTMENTS)
$ 2,000 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA $ 2,077,860
Mortgage Resolution 1 Bonds, Series 2002A-2,
5.450%, 12/01/22 (Alternative Minimum Tax)
650 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA 669,994
Mortgage 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, 7/12 at 100.00 AAA 789,953
Revenue Bonds, GTREP Project, Series 2002,
5.000%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.5% (2.4% OF TOTAL INVESTMENTS)
1,000 Richmond County Development Authority, Georgia, 2/12 at 101.00 BBB 1,033,060
Environmental Improvement Revenue Refunding Bonds,
International Paper Company, Series 2002A, 6.000%, 2/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.4% (6.3% OF TOTAL INVESTMENTS)
2,000 Georgia, General Obligation Bonds, Series 2002D, 8/12 at 100.00 AAA 2,139,720
5.000%, 8/01/18
595 Puerto Rico, General Obligation and Public Improvement 7/14 at 100.00 A- 627,041
Bonds, Series 2004A, 5.250%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.3% (6.2% OF TOTAL INVESTMENTS)
1,525 Macon-Bibb County Urban Development Authority, Georgia, 8/12 at 101.00 AA 1,663,272
Revenue Refunding Bonds, Public Facilities Projects,
Series 2002A, 5.000%, 8/01/14
1,000 Rockdale County Water and Sewerage Authority, Georgia, 1/10 at 101.00 AAA 1,055,160
Revenue Bonds, Series 1999A, 5.375%, 7/01/29 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.7% (2.5% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 1,094,460
Series 2000A, 5.400%, 1/01/15 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 16.2% (10.9% OF TOTAL INVESTMENTS)
1,500 Coweta County Development Authority, Georgia, Revenue 1/13 at 100.00 Aaa 1,616,040
Bonds, Newnan Water and Sewer, and Light Commission
Project, Series 2002, 5.250%, 1/01/18 - FGIC Insured
1,250 Municipal Electric Authority of Georgia, Combustion Turbine 11/12 at 100.00 AAA 1,339,775
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 549,040
Revenue Bonds, Series 2003A, 5.250%, 11/01/15 -
MBIA Insured
1,200 Summerville, Georgia, Combined Public Utility Revenue 1/12 at 101.00 Baa3 1,236,276
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, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.5% (12.5% OF TOTAL INVESTMENTS)
$ 1,200 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA $ 1,247,052
Series 2004, 5.000%, 11/01/24 - FSA Insured
2,065 Augusta, Georgia, Water and Sewerage Revenue Bonds, 10/12 at 100.00 AAA 2,208,352
Series 2002, 5.000%, 10/01/16 - FSA Insured
500 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 1/14 at 100.00 AAA 523,203
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- 1,457,887
Bonds, Series 2001B, 5.000%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 41,430 Total Long-Term Investments (cost $42,242,779) - 148.7% 43,626,728
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 715,561
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.1)% (15,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 29,342,289
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated July 1, 2004, to pay semi-annually the notional
amount multiplied by 5.805% (annualized) and receive quarterly the notional
amount multiplied by the three-month USD-LIBOR (United States Dollar-London
Inter-Bank Offered Rates). $1,900,000 2/02/05 2/02/25 $(110,649)
Agreement with JPMorgan dated July 28, 2004, to pay quarterly the notional
amount multiplied by 4.495% (annualized) and receive quarterly the notional
amount multiplied by the one-week BMA (Bond Market Association) Municipal
Swap Index for the quarter. 1,200,000 12/13/04 12/13/24 (40,577)
------------------------------------------------------------------------------------------------------------------------------------
$(151,226)
------------------------------------------------------------------------------------------------------------------------------------
(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.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
24
Nuveen Georgia Dividend Advantage Municipal Fund 2 (NKG)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.9% (1.9% OF TOTAL INVESTMENTS)
$ 1,750 DeKalb County Development Authority, Georgia, Pollution 12/12 at 101.00 Baa2 $ 1,857,380
Control Revenue Refunding Bonds, General Motors
Corporation Projects, Series 2002, 6.000%, 3/15/21
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.8% (1.9% OF TOTAL INVESTMENTS)
2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,838,740
Asset-Backed Refunding Bonds, Series 2002,
5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.2% (14.7% OF TOTAL INVESTMENTS)
Athens-Clarke County Unified Government Development Authority,
Georgia, Educational Facilities Revenue Bonds, UGAREF CCRC
Building LLC Project, Series 2002:
1,225 5.000%, 12/15/18 - AMBAC Insured 12/12 at 100.00 AAA 1,299,076
1,240 5.000%, 12/15/19 - AMBAC Insured 12/12 at 100.00 AAA 1,307,518
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 3,562,580
2,500 5.000%, 12/01/33 - AMBAC Insured 12/12 at 100.00 Aaa 2,525,450
1,050 Fulton County Development Authority, Georgia, Revenue 2/12 at 100.00 AAA 1,063,430
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 2,080,940
Bonds, Georgia Tech - Klaus Parking and Family Housing,
Series 2003, 5.000%, 11/01/23 - MBIA Insured
1,315 Private Colleges and Universities Authority, Georgia, Revenue 9/11 at 100.00 AA 1,341,576
Bonds, Emory University, Series 2001A, 5.125%, 9/01/33
1,250 Private Colleges and Universities Authority, Georgia, Revenue 10/11 at 102.00 Baa1 1,293,188
Bonds, Mercer University, Series 2001, 5.750%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 31.1% (20.6% OF TOTAL INVESTMENTS)
1,000 Chatham County Hospital Authority, Savannah, Georgia, 1/14 at 100.00 A- 1,030,010
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+ 1,023,530
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 1,540,517
1,000 5.200%, 7/01/32 - MBIA Insured 7/12 at 101.00 Aaa
1,145 Floyd County Hospital Authority, Georgia, Revenue 7/13 at 101.00 Aaa 1,210,368
Anticipation Certificates, Floyd Medical Center,
Series 2003, 5.000%, 7/01/20 - MBIA Insured
1,250 Gainesville and Hall County Hospital Authority, Georgia, 5/11 at 100.00 A- 1,280,300
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 2001, 5.500%, 5/15/31
3,000 Glynn-Brunswick Memorial Hospital Authority, Georgia, 8/06 at 102.00 AAA 3,185,790
Revenue Bonds, Southeast Georgia Health Systems,
Series 1996, 5.250%, 8/01/13 - MBIA Insured
Newnan Hospital Authority, Georgia, Revenue Anticipation
Certificates, Newnan Hospital Inc., Series 2002:
2,260 5.500%, 1/01/19 - MBIA Insured 1/13 at 100.00 Aaa 2,463,626
3,020 5.500%, 1/01/20 - MBIA Insured 1/13 at 100.00 Aaa 3,283,465
2,000 Savannah Hospital Authority, Georgia, Revenue Bonds, 1/14 at 100.00 AA 2,085,020
St. Joseph's/Candler Health System, Series 2003,
5.250%, 7/01/23 - RAAI Insured
1,945 Tift County Hospital Authority, Georgia, Revenue 12/12 at 101.00 Aaa 2,086,226
Anticipation 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, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5% (3.0% 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 $ 510,910
980 5.200%, 11/20/27 (Alternative Minimum Tax) 11/12 at 102.00 AAA 980,510
1,465 5.250%, 11/20/32 (Alternative Minimum Tax) 11/12 at 102.00 AAA 1,465,542
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.6% (3.7% OF TOTAL INVESTMENTS)
1,900 Georgia Housing and Finance Authority, Single Family 6/11 at 100.00 AAA 1,925,650
Mortgage 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 1,750,745
Mortgage Bonds, Series 2002C-2, 5.100%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Richmond County Development Authority, Georgia, 2/11 at 101.00 BBB 1,057,940
Environmental Improvement Revenue Bonds, International
Paper Company, Series 2001A, 6.250%, 2/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.4% (6.2% OF TOTAL INVESTMENTS)
1,000 Cherokee County School System, Georgia, General Obligation 8/13 at 100.00 AAA 1,076,010
Bonds, Series 2003, 5.000%, 8/01/16 - MBIA Insured
1,000 Forsyth County, Georgia, General Obligation Bonds, 3/14 at 101.00 AA 1,090,170
Series 2004, 5.250%, 3/01/19
750 Georgia, General Obligation Bonds, Series 1998D, No Opt. Call AAA 846,885
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 1,533,967
1,470 5.250%, 1/01/26 - AMBAC Insured 1/13 at 101.00 Aaa 1,551,982
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.6% (20.9% OF TOTAL INVESTMENTS)
1,405 Clayton County Development Authority, Georgia, Revenue 7/12 at 100.00 AAA 1,494,780
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 4,051,960
Revenue Bonds, Series 2002, 5.000%, 4/01/32
750 Georgia Municipal Association Inc., Certificates of Participation, 6/12 at 101.00 AAA 792,420
City of Atlanta Court Project, Series 2002, 5.125%, 12/01/21 -
AMBAC Insured
2,500 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call AAA 3,014,450
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 2,172,560
Transportation Authority, Series 1996Y, 5.500%, 7/01/36 -
FSA Insured
5,000 Puerto Rico Public Buildings Authority, Guaranteed Government No Opt. Call AAA 5,600,150
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 869,904
2,500 5.000%, 8/01/27 - FSA Insured 8/12 at 100.00 AAA 2,567,925
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.1% (4.0% OF TOTAL INVESTMENTS)
3,650 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 3,971,784
Series 2000A, 5.500%, 1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 0.9% (0.6% OF TOTAL INVESTMENTS)
525 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5/09 at 101.00 AAA 576,135
Series 1999A, 5.000%, 11/01/38 (Pre-refunded to 5/01/09) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.9% (6.5% OF TOTAL INVESTMENTS)
1,000 Elberton, Georgia, Combined Utility System Revenue 1/12 at 100.00 Aaa 1,037,690
Refunding and Improvement Bonds, Series 2001,
5.000%, 1/01/22 - AMBAC Insured
1,300 Fairburn, Georgia, Combined Utility Revenue Bonds, 10/10 at 101.00 BBB 1,368,926
Series 2000, 5.750%, 10/01/20
1,000 Monroe County Development Authority, Georgia, Pollution No Opt. Call AAA 1,044,870
Control Revenue Bonds, Georgia Power Company - Scherer
Plant, Series 2001, 4.200%, 1/01/12 (Mandatory put
12/01/08) - AMBAC Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 1,000 Municipal Electric Authority of Georgia, Project One 1/13 at 100.00 AAA $ 1,038,690
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 1,947,033
Series 2002II, 5.375%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 22.5% (14.9% OF TOTAL INVESTMENTS)
500 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 555,720
Series 2004, 5.250%, 11/01/15 - FSA Insured
Augusta, Georgia, Water and Sewerage Revenue Bonds,
Series 2002:
1,000 5.250%, 10/01/22 - FSA Insured 10/12 at 100.00 AAA 1,064,280
3,500 5.000%, 10/01/27 - FSA Insured 10/12 at 100.00 AAA 3,576,230
DeKalb County, Georgia, Water and Sewerage Bonds,
Series 2000:
2,500 5.125%, 10/01/31 10/10 at 101.00 AA 2,552,550
2,500 5.375%, 10/01/35 10/10 at 101.00 AA 2,629,150
950 Fulton County, Georgia, Water and Sewerage Revenue Bonds, 7/08 at 101.00 AAA 1,009,792
Series 1998, 5.000%, 1/01/16 - FGIC Insured
3,100 Harris County, Georgia, Water System Revenue Bonds, 12/12 at 100.00 Aaa 3,229,642
Series 2002, 5.000%, 12/01/22 - AMBAC Insured (PLG)
------------------------------------------------------------------------------------------------------------------------------------
$ 93,360 Total Long-Term Investments (cost $96,814,104) - 151.1% 98,347,952
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.4)% (262,680)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.7)% (33,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 65,085,272
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated July 1, 2004, to pay semi-annually the notional
amount multiplied by 5.805% (annualized) and receive quarterly the notional
amount multiplied by the three-month USD-LIBOR (United States Dollar-London
Inter-Bank Offered Rates). $4,300,000 2/02/05 2/02/25 $(250,416)
Agreement with Morgan Stanley dated July 15, 2004, to pay semi-annually the
notional amount multiplied by 5.717% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 2,500,000 1/14/05 1/14/35 (115,052)
------------------------------------------------------------------------------------------------------------------------------------
$(365,468)
------------------------------------------------------------------------------------------------------------------------------------
(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.
** 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.
(PLG) Portion of security, with an aggregate market value of
$312,546, has been pledged to collateralized the net
payment obligations under forward swap contracts.
See accompanying notes to financial statements.
27
Nuveen North Carolina Premium Income Municipal Fund (NNC)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 27.4% (18.5% OF TOTAL INVESTMENTS)
$ 970 North Carolina Capital Facilities Financing Agency, Revenue 4/13 at 100.00 AAA $ 1,023,835
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 1,017,740
Revenue Bonds, Elizabeth City State University, Series 2003A,
5.000%, 6/01/28 - AMBAC Insured
North Carolina Education Assistance Authority, Subordinate Lien
Guaranteed Student Loan Revenue Bonds, Series 1995A:
1,000 6.050%, 7/01/10 (Alternative Minimum Tax) 7/05 at 102.00 A2 1,031,480
2,400 6.300%, 7/01/15 (Alternative Minimum Tax) 7/05 at 102.00 A2 2,472,216
5,875 North Carolina Education Assistance Authority, Subordinate 7/06 at 102.00 A2 6,150,655
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 3,577,069
Bonds, Series 2003A, 5.000%, 10/01/15
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+ 2,531,606
2,725 5.000%, 12/01/21 12/13 at 100.00 AA+ 2,869,262
1,500 5.000%, 12/01/23 12/13 at 100.00 AA+ 1,562,340
1,000 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 AAA 1,078,050
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 790,275
Series 2004C, 5.000%, 4/01/21 - AMBAC Insured
1,675 University of North Carolina, Wilmington, General Revenue 1/12 at 101.00 Aaa 1,745,585
Bonds, Series 2002A, 5.000%, 1/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.7% (1.1% OF TOTAL INVESTMENTS)
1,500 Virgin Islands Public Finance Authority, Refinery Revenue 1/14 at 100.00 BBB- 1,602,075
Bonds, Hovensa LLC, Series 2003, 6.125%, 7/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.5% (13.9% OF TOTAL INVESTMENTS)
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 1,062,860
550 5.500%, 1/01/20 1/12 at 100.00 A 581,834
1,750 5.375%, 1/01/32 1/12 at 100.00 A 1,783,443
2,000 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 AA- 2,084,680
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 642,426
500 5.250%, 7/01/22 - AMBAC Insured 7/14 at 100.00 AAA 530,120
2,000 North Carolina Medical Care Commission, Healthcare 10/09 at 101.00 A- 2,143,540
Facilities Revenue Bonds, Stanly Memorial Hospital,
Series 1999, 6.375%, 10/01/29
1,615 North Carolina Medical Care Commission, Hospital Revenue 10/08 at 101.00 AA 1,584,767
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 3,055,500
Bonds, Southeastern Regional Medical Center, Series 2002,
5.375%, 6/01/32
735 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 AA- 752,295
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 5,112,400
Revenue Bonds, Mission-St. Joseph's Health System,
Series 2001, 5.250%, 10/01/31
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.7% (5.9% OF TOTAL INVESTMENTS)
$ 1,000 Asheville Housing Authority, North Carolina, 11/07 at 102.00 AAA $ 1,013,870
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 1/05 at 103.00 AAA 1,045,750
Refunding Bonds, Tryon Hills Apartments, Series 1993A,
5.875%, 1/01/25 - MBIA Insured
3,000 Mecklenburg County, North Carolina, FNMA Multifamily 1/12 at 102.00 AAA 3,125,370
Housing Revenue Bonds, Sycamore Green Apartments,
Series 2001, 5.500%, 1/15/35 (Alternative Minimum Tax) -
FGIC Insured
2,290 Mecklenburg County, North Carolina, FNMA Multifamily 7/13 at 105.00 AAA 2,324,121
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:
260 5.800%, 7/01/14 1/05 at 100.00 Aa2 260,328
435 5.900%, 7/01/26 1/05 at 100.00 Aa2 435,287
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.5% (6.4% OF TOTAL INVESTMENTS)
5,180 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 5,365,807
Revenue Bonds, 1998 Trust Agreement, Series 6A,
6.200%, 1/01/29 (Alternative Minimum Tax)
2,260 North Carolina Housing Finance Agency, Single Family Revenue 3/06 at 102.00 AA 2,317,065
Bonds, Series 1996HH, 6.300%, 3/01/26 (Alternative
Minimum Tax)
1,240 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 1,254,644
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, No Opt. Call BBB 1,409,856
Exempt Facilities Revenue Bonds, Waste Management Inc.,
Series 2001, 3.750%, 8/01/14 (Alternative Minimum Tax)
(Mandatory put 8/01/07)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.2% (1.5% OF TOTAL INVESTMENTS)
2,000 Haywood County Industrial Facilities and Pollution Control 3/06 at 102.00 Baa2 2,089,720
Financing Authority, North Carolina, Pollution Control Revenue
Refunding Bonds, Champion International Corporation Project,
Series 1995, 6.000%, 3/01/20
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.9% (9.4% OF TOTAL INVESTMENTS)
1,890 Craven County, North Carolina, General Obligation Bonds, 5/12 at 101.00 AAA 1,990,076
Series 2002, 5.000%, 5/01/21 - AMBAC Insured
4,285 Durham County, North Carolina, General Obligation Public 4/12 at 100.00 AAA 4,609,032
Improvement Bonds, Series 2002B, 5.000%, 4/01/16
1,000 Johnston County, North Carolina, General Obligation Bonds, 6/11 at 102.00 AAA 1,076,100
Series 2001, 5.000%, 6/01/16 - FGIC Insured
4,500 North Carolina, General Obligation Bonds, Series 2000A, 9/10 at 102.00 AAA 4,882,680
5.100%, 9/01/16
500 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 527,430
5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.9% (19.5% OF TOTAL INVESTMENTS)
1,330 Cabarrus County, North Carolina, Certificates of Participation, 2/13 at 100.00 AA- 1,432,796
Series 2002, 5.250%, 2/01/17
1,800 Catawba County, North Carolina, Certificates of Participation, 6/14 at 100.00 Aaa 1,934,424
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+ 1,208,673
1,700 5.375%, 6/01/26 6/13 at 100.00 AA+ 1,799,093
Charlotte, North Carolina, Storm Water Fee Revenue Bonds,
Series 2002:
1,050 5.250%, 6/01/20 6/12 at 101.00 AA+ 1,131,879
1,750 5.000%, 6/01/25 6/12 at 101.00 AA+ 1,794,468
2,180 Concord, North Carolina, Certificates of Participation, 6/06 at 102.00 AAA 2,347,119
Series 1996A, 6.125%, 6/01/21 - MBIA Insured
1,000 Davidson County, North Carolina, Certificates of Participation, No Opt. Call AAA 1,111,630
Series 2004, 5.250%, 6/01/14 - AMBAC Insured
29
Nuveen North Carolina Premium Income Municipal Fund (NNC) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 750 Johnston County Finance Corporation, North Carolina, 8/09 at 101.00 AAA $ 807,855
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 1,858,991
500 5.250%, 4/01/20 - FSA Insured 4/14 at 100.00 AAA 539,170
1,000 5.250%, 4/01/22 - FSA Insured 4/14 at 100.00 AAA 1,068,790
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+ 2,634,225
1,500 5.000%, 2/01/23 2/14 at 100.00 AA+ 1,547,220
North Carolina, Certificates of Participation, Series 2003:
1,130 5.250%, 6/01/21 6/13 at 100.00 AA+ 1,194,647
1,000 5.250%, 6/01/23 6/13 at 100.00 AA+ 1,049,260
1,500 North Carolina, Certificates of Participation, Repair and 6/14 at 100.00 AA+ 1,581,795
Renovation Project, Series 2004B, 5.000%, 6/01/20
2,000 Puerto Rico Highway and Transportation Authority, Grant 3/14 at 100.00 AAA 2,125,880
Anticipation Revenue Bonds, Series 2004, 5.000%, 9/15/21 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3% (2.2% OF TOTAL INVESTMENTS)
600 Charlotte, North Carolina, Airport Revenue Bonds, 7/14 at 100.00 AAA 636,384
Series 2004A, 5.250%, 7/01/24 - MBIA Insured
2,250 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 2,435,040
Revenue Bonds, Series 2001A, 5.250%, 11/01/16 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 19.3% (13.1% OF TOTAL INVESTMENTS)
4,000 Charlotte, North Carolina, Water and Sewer System Revenue 6/10 at 101.00 AAA 4,470,520
Bonds, Series 2000, 5.250%, 6/01/25 (Pre-refunded to 6/01/10)
2,000 Charlotte, North Carolina, Storm Water Fee Revenue Bonds, 6/10 at 101.00 AA+*** 2,307,360
Series 2000, 6.000%, 6/01/25 (Pre-refunded to 6/01/10)
2,900 Fayetteville Public Works Commission, North Carolina, Revenue 3/07 at 101.00 AAA 3,105,755
Bonds, Series 1997, 5.125%, 3/01/24 (Pre-refunded to
3/01/07) - FSA Insured
2,035 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 2,455,672
Revenue Bonds, Series 1980, 10.500%, 1/01/10
2,180 Union County, North Carolina, Enterprise System Revenue 6/06 at 102.00 AAA 2,328,371
Bonds, Series 1996, 5.500%, 6/01/21 (Pre-refunded to
6/01/06) - MBIA Insured
3,340 University of North Carolina, Chapel Hill, Revenue Bonds, 2/06 at 102.00 AA-*** 3,526,172
Hospital System, Series 1996, 5.250%, 2/15/26
(Pre-refunded to 2/15/06)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.2% (5.6% OF TOTAL INVESTMENTS)
4,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/10 at 101.00 BBB+ 4,511,280
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 2,179,120
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 1,068,240
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company, Series 2002,
5.375%, 2/01/17
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.8% (1.9% OF TOTAL INVESTMENTS)
$ 500 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 AAA $ 520,140
Revenue Bonds, Series 2004B, 5.000%, 6/01/23 (WI,
settling 12/06/04) - XLCA Insured
2,000 Winston-Salem, North Carolina, Water and Sewerage System 6/12 at 100.00 AAA 2,118,560
Revenue Bonds, Series 2002A, 5.000%, 6/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 131,405 Total Long-Term Investments (cost $132,838,044) - 147.9% 139,343,718
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.1% (0.0% OF TOTAL INVESTMENTS)
50 Puerto Rico Government Development Bank, Adjustable A-1 50,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 50 Total Short-Term Investments (cost $50,000) 50,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $132,888,044) - 148.0% 139,393,718
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 1,608,583
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (46,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 94,202,301
====================================================================================================================
(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.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
31
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 26.6% (17.9% OF TOTAL INVESTMENTS)
$ 500 North Carolina Capital Facilities Financing Agency, Revenue 9/11 at 101.00 A3 $ 522,730
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+ 2,061,940
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+ 1,785,508
Bonds, Series 2001A, 5.000%, 12/01/25
1,845 University of North Carolina, Chapel Hill, System Net Revenue No Opt. Call AA+ 2,036,400
Bonds, Series 2002B, 5.000%, 12/01/11
2,450 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 AAA 2,688,556
Bonds, Series 2002A, 5.375%, 4/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 22.3% (15.0% OF TOTAL INVESTMENTS)
1,110 North Carolina Medical Care Commission, Healthcare Facilities 1/12 at 100.00 A 1,178,309
Revenue Bonds, Union Regional Medical Center,
Series 2002A, 5.250%, 1/01/15
2,500 North Carolina Medical Care Commission, Healthcare 5/07 at 100.00 AA- 2,528,725
Revenue Bonds, Carolina Medicorp, Series 1996,
5.250%, 5/01/26
1,500 North Carolina Medical Care Commission, Hospital Revenue 6/12 at 101.00 A 1,542,975
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- 307,059
Northeast Medical Center, Series 2004, 5.000%, 11/01/24
2,000 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 2,044,960
Revenue Bonds, Mission-St. Joseph's Health System,
Series 2001, 5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 14.3% (9.6% OF TOTAL INVESTMENTS)
2,230 Durham Housing Authority, North Carolina, FNMA 6/11 at 100.00 AAA 2,272,259
Guaranteed Multifamily Housing Revenue Bonds,
Naples Terrace Apartments, Series 2001A, 5.700%, 6/01/33
(Alternative Minimum Tax)
2,500 Mecklenburg County, North Carolina, FNMA Multifamily 1/12 at 102.00 AAA 2,604,475
Housing Revenue Bonds, Sycamore Green Apartments,
Series 2001, 5.500%, 1/15/35 (Alternative Minimum Tax) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.4% (3.6% OF TOTAL INVESTMENTS)
1,295 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 1,320,045
Revenue Bonds, 1998 Trust Agreement, Series 5A,
5.625%, 7/01/30 (Alternative Minimum Tax)
500 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA 505,905
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 503,520
Facilities Revenue Bonds, Waste Management Inc.,
Series 2001, 3.750%, 8/01/14 (Alternative Minimum Tax)
(Mandatory put 8/01/07)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.3% (1.5% OF TOTAL INVESTMENTS)
750 Columbus County Industrial Facilities and Pollution Control 4/07 at 102.00 BBB 776,400
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, International Paper Company
Project, Series 1997A, 6.150%, 4/01/21 (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 1,077,850
1,000 5.000%, 3/01/22 3/14 at 100.00 AAA 1,054,860
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.0% (13.4% OF TOTAL INVESTMENTS)
$ 1,330 Cabarrus County, North Carolina, Certificates of Participation, 2/13 at 100.00 AA- $ 1,448,197
Series 2002, 5.250%, 2/01/15
1,400 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 1,481,606
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 2,040,768
Series 2002, 5.250%, 6/01/15 - AMBAC Insured
1,250 Davidson County, North Carolina, Certificates of Participation, 6/14 at 100.00 AAA 1,343,350
Series 2004, 5.250%, 6/01/21 - AMBAC Insured
470 Raleigh, North Carolina, Certificates of Participation, 6/14 at 100.00 AA+ 494,506
Downtown Improvement Project, Series 2004B,
5.000%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.8% (3.3% OF TOTAL INVESTMENTS)
1,530 Raleigh Durham Airport Authority, North Carolina, Airport 5/11 at 101.00 Aaa 1,642,945
Revenue Bonds, Series 2001A, 5.250%, 11/01/18 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 19.9% (13.4% 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 1,073,430
500 5.250%, 9/01/21 - FSA Insured 9/11 at 101.00 AAA 533,480
2,500 North Carolina Eastern Municipal Power Agency, Power 1/05 at 100.00 AAA 2,505,950
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/17 - FGIC Insured
1,000 North Carolina Eastern Municipal Power Agency, Power 1/09 at 102.00 BBB 1,060,550
System Revenue Refunding Bonds, Series 1999B,
5.650%, 1/01/16
1,500 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A3 1,602,360
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company, Series 2002,
5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 25.3% (17.1% OF TOTAL INVESTMENTS)
2,290 Broad River Water Authority, North Carolina, Water System 6/10 at 101.00 Aaa 2,429,576
Revenue Bonds, Series 2000, 5.375%, 6/01/26 - MBIA Insured
2,250 Charlotte, North Carolina, Water and Sewer System Revenue 6/11 at 101.00 AAA 2,331,158
Bonds, Series 2001, 5.125%, 6/01/26
Greensboro, North Carolina, Combined Enterprise System
Revenue Bonds, Series 2001A:
500 5.125%, 6/01/20 6/11 at 101.00 AA+ 528,710
500 5.125%, 6/01/21 6/11 at 101.00 AA+ 526,445
33
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 400 Onslow County, North Carolina, Combined Enterprise System 6/14 at 100.00 AAA $ 416,111
Revenue Bonds, Series 2004B, 5.000%, 6/01/23 (WI,
settling 12/06/04) - XLCA Insured
2,275 Winston-Salem, North Carolina, Water and Sewerage 6/12 at 100.00 AAA 2,420,441
System Revenue Bonds, Series 2002A, 5.000%, 6/01/17
------------------------------------------------------------------------------------------------------------------------------------
$ 48,295 Total Long-Term Investments (cost $48,819,368) - 148.7% 50,692,059
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 396,696
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (17,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 34,088,755
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated July 28, 2004, to pay quarterly the notional
amount multiplied by 4.495% (annualized) and receive quarterly the notional
amount multiplied by the one-week BMA (Bond Market Association) Municipal
Swap Index for the quarter. $1,000,000 12/13/04 12/13/24 $(33,815)
Agreement with Morgan Stanley dated August 4, 2004, to pay semi-annually the
notional amount multiplied by 5.660% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 400,000 2/16/05 2/16/35 (13,896)
------------------------------------------------------------------------------------------------------------------------------------
$(47,711)
------------------------------------------------------------------------------------------------------------------------------------
(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.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
34
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 23.0% (15.7% OF TOTAL INVESTMENTS)
Appalachian State University, North Carolina, Housing and
Student Center System Revenue Refunding Bonds, Series 2001:
$ 600 5.125%, 7/15/24 1/11 at 101.00 Aaa $ 624,060
200 5.125%, 7/15/27 1/11 at 101.00 Aaa 205,866
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 1,127,204
1,000 5.000%, 7/15/15 - MBIA Insured 7/12 at 100.00 Aaa 1,068,170
500 East Carolina University, North Carolina, General Revenue 5/13 at 100.00 Aaa 529,375
Bonds, Series 2003A, 5.000%, 5/01/19 - AMBAC Insured
3,750 North Carolina Capital Facilities Financing Agency, Revenue 10/11 at 100.00 AA+ 3,866,137
Bonds, Duke University, Series 2001A, 5.125%, 10/01/26
1,840 University of North Carolina, Chapel Hill, System Net Revenue No Opt. Call AA+ 2,030,882
Bonds, Series 2002B, 5.000%, 12/01/11
400 University of North Carolina, Greensboro, General Revenue 4/11 at 101.00 AAA 438,072
Refunding Bonds, Series 2002B, 5.375%, 4/01/17 -
FSA Insured
University of North Carolina System, Pooled Revenue
Refunding Bonds, Series 2002A:
1,155 5.375%, 4/01/16 - AMBAC Insured 10/12 at 100.00 AAA 1,271,389
1,100 5.375%, 4/01/19 - AMBAC Insured 10/12 at 100.00 AAA 1,199,891
University of North Carolina System, Pooled Revenue Bonds,
Series 2004C:
250 5.000%, 4/01/21 - AMBAC Insured 4/14 at 100.00 Aaa 263,425
500 5.000%, 4/01/24 - AMBAC Insured 4/14 at 100.00 Aaa 519,050
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.2% (14.4% OF TOTAL INVESTMENTS)
2,130 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101.00 AA 2,114,515
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
1,000 New Hanover County, North Carolina, Hospital Revenue 4/05 at 101.00 AAA 1,001,440
Bonds, New Hanover Regional Medical Center, Series 1993,
4.750%, 10/01/23 - AMBAC Insured
1,005 North Carolina Medical Care Commission, Healthcare Facilities 1/12 at 100.00 A 1,083,420
Revenue Bonds, Union Regional Medical Center,
Series 2002A, 5.250%, 1/01/13
2,000 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 AA- 2,075,700
Facilities 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 637,072
500 5.250%, 7/01/22 - AMBAC Insured 7/14 at 100.00 AAA 530,120
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 1,085,340
2,000 5.250%, 6/01/22 6/12 at 101.00 A 2,057,300
500 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 AA- 511,765
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 1,022,480
Revenue Bonds, Mission-St. Joseph's Health System,
Series 2001, 5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.4% (4.3% OF TOTAL INVESTMENTS)
3,500 Mecklenburg County, North Carolina, FNMA Multifamily 1/12 at 102.00 AAA 3,646,265
Housing Revenue Bonds, Sycamore Green Apartments,
Series 2001, 5.500%, 1/15/35 (Alternative Minimum
Tax) - FGIC Insured
35
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0% (2.7% OF TOTAL INVESTMENTS)
$ 425 North Carolina Housing Finance Agency, Home Ownership 7/10 at 100.00 AAA $ 430,019
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, 1998 Trust Agreement, Series 13A:
885 4.700%, 7/01/12 (Alternative Minimum Tax) 7/11 at 100.00 AA 921,205
885 4.850%, 7/01/13 (Alternative Minimum Tax) 7/11 at 100.00 AA 923,099
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.4% (1.0% OF TOTAL INVESTMENTS)
800 North Carolina Capital Facilities Financing Agency, Exempt No Opt. Call BBB 805,632
Facilities Revenue Bonds, Waste Management Inc.,
Series 2001, 3.750%, 8/01/14 (Alternative Minimum Tax)
(Mandatory put 8/01/07)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.0% (1.4% OF TOTAL INVESTMENTS)
1,100 Northampton County Industrial Facilities and Pollution Control 2/11 at 101.00 BBB 1,160,874
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, International Paper Company,
Series 2001A, 6.200%, 2/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.0% (5.5% OF TOTAL INVESTMENTS)
250 Durham County, North Carolina, General Obligation Bonds, 5/10 at 102.00 AAA 281,635
Series 2000, 5.600%, 5/01/15
3,000 North Carolina, General Obligation Bonds, Series 2000A, 9/10 at 102.00 AAA 3,255,120
5.100%, 9/01/16
1,000 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 1,054,860
5.000%, 3/01/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.2% (19.8% OF TOTAL INVESTMENTS)
1,330 Cabarrus County, North Carolina, Certificates of Participation, 2/13 at 100.00 AA- 1,439,512
Series 2002, 5.250%, 2/01/16
Charlotte, North Carolina, Storm Water Fee Revenue Bonds,
Series 2002:
1,850 5.250%, 6/01/18 6/12 at 101.00 AA+ 2,004,216
400 5.250%, 6/01/19 6/12 at 101.00 AA+ 432,268
1,325 Dare County, North Carolina, Certificates of Participation, 12/12 at 100.00 AAA 1,434,260
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 1,094,330
2,025 5.375%, 12/01/16 - FSA Insured 12/12 at 101.00 AAA 2,220,089
825 5.000%, 12/01/18 - FSA Insured 12/12 at 101.00 AAA 876,274
Lee County, North Carolina, Certificates of Participation,
Public Schools and Community College, Series 2004:
1,615 5.000%, 4/01/16 - FSA Insured 4/14 at 100.00 AAA 1,732,556
715 5.250%, 4/01/20 - FSA Insured 4/14 at 100.00 AAA 771,013
Raleigh, North Carolina, Certificates of Participation,
Downtown Improvement Project, Series 2004B:
805 5.000%, 6/01/20 6/14 at 100.00 AA+ 846,973
1,310 5.000%, 6/01/21 6/14 at 100.00 AA+ 1,371,020
1,000 Randolph County, North Carolina, Certificates of Participation, 6/14 at 102.00 AAA 1,063,460
Series 2004, 5.000%, 6/01/20 - FSA Insured
1,285 Rockingham, North Carolina, Certificates of Participation, 4/12 at 101.00 AAA 1,359,851
Series 2002, 5.000%, 4/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.6% (8.6% OF TOTAL INVESTMENTS)
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 1,087,770
2,320 5.250%, 11/01/16 - FGIC Insured 5/11 at 101.00 Aaa 2,510,797
2,230 5.250%, 11/01/17 - FGIC Insured 5/11 at 101.00 Aaa 2,404,185
University of North Carolina, Charlotte, Parking System
Revenue Bonds, Series 2002:
360 5.000%, 1/01/17 - MBIA Insured 1/12 at 101.00 Aaa 383,497
270 5.000%, 1/01/20 - MBIA Insured 1/12 at 101.00 Aaa 284,386
500 5.125%, 1/01/27 - MBIA Insured 1/12 at 101.00 Aaa 517,505
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 11.9% (8.1% OF TOTAL INVESTMENTS)
$ 3,000 Fayetteville Public Works Commission, North Carolina, 3/07 at 101.00 AAA $ 3,212,850
Revenue Bonds, Series 1997, 5.125%, 3/01/24
(Pre-refunded to 3/01/07) - FSA Insured
3,200 Wake County, North Carolina, General Obligation School 2/10 at 101.50 AAA 3,600,992
Bonds, Series 2000, 5.400%, 2/01/13 (Pre-refunded
to 2/01/10)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.2% (8.3% OF TOTAL INVESTMENTS)
2,500 North Carolina Eastern Municipal Power Agency, Power 1/05 at 100.00 AAA 2,505,950
System 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 BBB+ 1,691,730
Revenue Bonds, Series 1999B, 6.500%, 1/01/20
2,600 Wake County Industrial Facilities and Pollution Control 2/12 at 101.00 A3 2,777,424
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company, Series 2002,
5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.0% (10.2% OF TOTAL INVESTMENTS)
2,520 Charlotte, North Carolina, Water and Sewer System Revenue No Opt. Call AAA 2,831,623
Bonds, Series 2002, 5.250%, 7/01/13
1,000 Durham County, North Carolina, Enterprise System Revenue 6/13 at 100.00 AAA 1,039,660
Bonds, Series 2002, 5.000%, 6/01/23 - MBIA Insured
1,465 Orange Water and Sewerage Authority, North Carolina, 7/11 at 101.00 AA+ 1,540,902
Water and Sewerage System Revenue Bonds,
Series 2001, 5.000%, 7/01/20
Raleigh, North Carolina, Combined Enterprise System Revenue
Bonds, Series 2004:
1,000 5.000%, 3/01/21 3/14 at 100.00 AAA 1,055,640
2,000 5.000%, 3/01/22 3/14 at 100.00 AAA 2,098,800
------------------------------------------------------------------------------------------------------------------------------------
$ 78,860 Total Long-Term Investments (cost $80,388,333) - 146.9% 83,930,915
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,194,750
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.0)% (28,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 57,125,665
====================================================================================================================
(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.
** 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.
37
Nuveen North Carolina Dividend Advantage Municipal Fund 3 (NII)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.2% OF TOTAL INVESTMENTS)
$ 2,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,838,740
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.6% (11.1% OF TOTAL INVESTMENTS)
500 East Carolina University, North Carolina, General Revenue 5/13 at 100.00 Aaa 529,375
Bonds, 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+ 1,804,197
1,500 5.125%, 10/01/41 10/11 at 100.00 AA+ 1,514,880
3,000 North Carolina Capital Facilities Financing Agency, Revenue 10/12 at 100.00 AA+ 3,027,720
Bonds, Duke University, Series 2002A, 5.125%, 7/01/42
1,900 University of North Carolina System, Pooled Revenue Refunding 10/12 at 100.00 AAA 1,940,014
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 519,050
Series 2004C, 5.000%, 4/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.6% (6.5% OF TOTAL INVESTMENTS)
2,000 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/07 at 102.00 AA 2,064,940
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 744,548
Healthcare System Revenue Bonds, Carolinas Healthcare
System, Series 2001A, 5.000%, 1/15/31
2,000 North Carolina Medical Care Commission, Healthcare 11/13 at 100.00 AA- 2,093,680
Facilities Revenue Bonds, Novant Health Obligated Group,
Series 2003A, 5.000%, 11/01/18
500 North Carolina Medical Care Commission, Revenue Bonds, 11/14 at 100.00 AA- 511,765
Northeast Medical Center, Series 2004, 5.000%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.8% (1.1% OF TOTAL INVESTMENTS)
1,000 Mecklenburg County, North Carolina, FNMA Multifamily 7/13 at 105.00 AAA 1,034,490
Housing Revenue Bonds, Little Rock Apartments, Series 2003,
5.150%, 1/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,315 North Carolina Housing Finance Agency, Home Ownership 7/09 at 100.00 AA 1,340,432
Revenue Bonds, 1998 Trust Agreement, Series 5A,
5.625%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.4% (1.0% OF TOTAL INVESTMENTS)
800 North Carolina Capital Facilities Financing Agency, Exempt No Opt. Call BBB 805,632
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 1,410,178
Financing Authority, North Carolina, Environmental
Improvement Revenue Bonds, Champion International
Corporation Project, Series 1995A, 5.750%, 12/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.1% (10.2% OF TOTAL INVESTMENTS)
Lincoln County, North Carolina, General Obligation Bonds,
Series 2002A:
850 5.000%, 6/01/19 - FGIC Insured 6/12 at 101.00 AAA 904,766
900 5.000%, 6/01/20 - FGIC Insured 6/12 at 101.00 AAA 953,343
1,050 5.000%, 6/01/21 - FGIC Insured 6/12 at 101.00 AAA 1,106,091
1,000 Mecklenburg County, North Carolina, General Obligation 4/10 at 101.50 AAA 1,081,090
Public Improvement Bonds, Series 2000D, 5.000%, 4/01/13
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 North Carolina, General Obligation Bonds, Series 2000A, 9/10 at 102.00 AAA $ 1,085,040
5.100%, 9/01/16
500 North Carolina, General Obligation Bonds, Series 2004A, 3/14 at 100.00 AAA 527,430
5.000%, 3/01/22
2,000 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 2,460,100
Refunding Bonds, Series 1997, 6.500%, 7/01/15 -
MBIA Insured
400 Raleigh, North Carolina, General Obligation Bonds, 6/12 at 100.00 AAA 422,204
Series 2002, 5.000%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 45.7% (30.7% OF TOTAL INVESTMENTS)
3,900 Cary, North Carolina, General Obligation Water and Sewer 3/11 at 102.00 AAA 4,144,335
Bonds, Series 2001, 5.000%, 3/01/20
1,550 Cary, North Carolina, Certificates of Participation, Public 12/12 at 100.00 AA+ 1,651,432
Improvement Projects, Series 2002A, 5.000%, 12/01/17
1,800 Catawba County, North Carolina, Certificates of Participation, 6/14 at 100.00 Aaa 1,925,712
Series 2004, 5.250%, 6/01/22 - MBIA Insured
1,500 Centennial Authority, North Carolina, Hotel Tax Revenue 9/07 at 102.00 AAA 1,597,860
Bonds, Arena Project, Series 1997, 5.125%, 9/01/19 -
FSA Insured
3,750 Charlotte, North Carolina, Certificates of Participation, 6/13 at 100.00 AA+ 3,777,113
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 3,100,890
Series 2002, 5.000%, 6/01/23 - AMBAC Insured
360 Duplin County, North Carolina, Refunding Certificates of No Opt. Call AAA 394,092
Participation, Series 2002, 5.000%, 9/01/12 -
AMBAC Insured
Forsyth County, North Carolina, Certificates of Participation,
Public Facilities and Equipment Project, Series 2002:
1,325 5.125%, 1/01/16 1/13 at 101.00 AA+ 1,435,253
770 5.250%, 1/01/19 1/13 at 101.00 AA+ 832,347
1,235 5.250%, 1/01/23 1/13 at 101.00 AA+ 1,315,250
500 Lee County, North Carolina, Certificates of Participation, 4/14 at 100.00 AAA 539,170
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+ 1,054,530
Renovation Project, Series 2004B, 5.000%, 6/01/20
2,000 Rutherford County, North Carolina, Certificates of 9/12 at 101.00 AAA 2,091,440
Participation, Series 2002, 5.000%, 9/01/21 -
AMBAC Insured
1,785 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 AAA 1,888,905
Series 2003, 5.000%, 6/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.2% (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 1,936,231
3,100 5.000%, 11/01/20 - FGIC Insured 5/11 at 101.00 Aaa 3,245,514
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.9% (10.0% OF TOTAL INVESTMENTS)
4,000 North Carolina Eastern Municipal Power Agency, Power 1/05 at 100.00 AAA 4,009,520
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 2,903,677
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 1,495,536
Financing Authority, North Carolina, Revenue Refunding
Bonds, Carolina Power and Light Company, Series 2002,
5.375%, 2/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 26.3% (17.7% OF TOTAL INVESTMENTS)
750 Broad River Water Authority, North Carolina, Water System 6/10 at 101.00 Aaa 795,713
Revenue Bonds, Series 2000, 5.375%, 6/01/26 - MBIA Insured
Charlotte, North Carolina, Water and Sewer System Revenue
Bonds, Series 2001:
750 5.125%, 6/01/26 6/11 at 101.00 AAA 777,053
1,780 5.125%, 6/01/26 - FGIC Insured 6/11 at 101.00 AAA 1,844,205
39
Nuveen North Carolina Dividend Advantage Municipal Fund 3 (NII) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Durham County, North Carolina, Enterprise System Revenue
Bonds, Series 2002:
$ 680 5.000%, 6/01/16 - MBIA Insured 6/13 at 100.00 AAA $ 731,394
710 5.000%, 6/01/17 - MBIA Insured 6/13 at 100.00 AAA 759,956
300 5.000%, 6/01/18 - MBIA Insured 6/13 at 100.00 AAA 319,551
2,500 Kannapolis, North Carolina, Water and Sewerage System 2/12 at 101.00 AAA 2,572,575
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 520,140
Revenue Bonds, Series 2004B, 5.000%, 6/01/23 (WI,
settling 12/06/04) - XLCA Insured
1,000 Orange Water and Sewerage Authority, North Carolina, Water 7/11 at 101.00 AA+ 1,018,600
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 531,963
4,715 5.000%, 6/01/19 6/12 at 100.00 AAA 4,975,787
------------------------------------------------------------------------------------------------------------------------------------
$ 80,220 Total Long-Term Investments (cost $82,343,139) - 148.8% 83,905,449
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 489,948
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (28,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 56,395,397
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with JPMorgan dated July 1, 2004, to pay semi-annually the notional
amount multiplied by 5.805% (annualized) and receive quarterly the notional
amount multiplied by the three-month USD-LIBOR (United States Dollar-London
Inter-Bank Offered Rates). $1,100,000 2/02/05 2/02/25 $ (64,059)
Agreement with JPMorgan dated July 28, 2004, to pay quarterly the notional
amount multiplied by 4.495% (annualized) and receive quarterly the notional
amount multiplied by the one-week BMA (Bond Market Association) Municipal
Swap Index for the quarter. 2,000,000 12/13/04 12/13/24 (67,629)
Agreement with Morgan Stanley dated August 4, 2004, to pay semi-annually the
notional amount multiplied by 5.660% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates). 1,600,000 2/16/05 2/16/35 (55,586)
------------------------------------------------------------------------------------------------------------------------------------
$(187,274)
------------------------------------------------------------------------------------------------------------------------------------
(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.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
40
Statement of
ASSETS AND LIABILITIES November 30, 2004 (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $79,955,896, $42,242,779
and $96,814,104, respectively) $83,757,686 $43,626,728 $ 98,347,952
Cash -- 246,067 --
Receivables:
Interest 1,421,247 656,269 1,649,075
Investments sold 30,000 -- 80,000
Other assets 771 609 776
------------------------------------------------------------------------------------------------------------------------------------
Total assets 85,209,704 44,529,673 100,077,803
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,115,167 -- 1,579,108
Payable for investments purchased -- -- --
Forward swaps, at value -- 151,226 365,468
Accrued expenses:
Management fees 44,664 12,578 26,186
Other 25,761 23,149 20,140
Preferred share dividends payable 6,569 431 1,629
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,192,161 187,384 1,992,531
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 27,800,000 15,000,000 33,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $56,217,543 $29,342,289 $ 65,085,272
====================================================================================================================================
Common shares outstanding 3,792,587 1,959,759 4,553,660
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.82 $ 14.97 $ 14.29
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 37,926 $ 19,598 $ 45,537
Paid-in surplus 52,176,044 27,749,544 64,257,862
Undistributed (Over-distribution of) net investment income 574,264 383,439 (142,875)
Accumulated net realized gain (loss) from investments and
forward swap transactions (372,481) (43,015) (243,632)
Net unrealized appreciation (depreciation) of investments and
forward swap transactions 3,801,790 1,232,723 1,168,380
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $56,217,543 $29,342,289 $ 65,085,272
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
ASSETS AND LIABILITIES November 30, 2004 (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 $132,888,044, $48,819,368,
$80,388,333 and $82,343,139, respectively) $139,393,718 $50,692,059 $83,930,915 $83,905,449
Cash -- -- -- --
Receivables:
Interest 2,522,722 916,955 1,304,986 1,409,287
Investments sold -- 5,000 -- --
Other assets 1,787 4,792 1,591 774
------------------------------------------------------------------------------------------------------------------------------------
Total assets 141,918,227 51,618,806 85,237,492 85,315,510
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 270,723 33,935 69,212 159,129
Payable for investments purchased 521,042 416,834 -- 521,042
Forward swaps, at value -- 47,711 -- 187,274
Accrued expenses:
Management fees 74,780 14,488 24,161 22,531
Other 38,484 11,963 18,454 21,601
Preferred share dividends payable 10,897 5,120 -- 8,536
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 915,926 530,051 111,827 920,113
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 46,800,000 17,000,000 28,000,000 28,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 94,202,301 $34,088,755 $57,125,665 $56,395,397
====================================================================================================================================
Common shares outstanding 6,327,906 2,251,152 3,737,196 3,923,437
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.89 $ 15.14 $ 15.29 $ 14.37
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 63,279 $ 22,512 $ 37,372 $ 39,234
Paid-in surplus 87,446,745 31,897,791 52,987,278 55,357,323
Undistributed (Over-distribution of) net investment income 797,432 433,738 279,134 (9,025)
Accumulated net realized gain (loss) from investments
and forward swap transactions (610,829) (90,266) 279,299 (367,171)
Net unrealized appreciation (depreciation) of investments
and forward swap transactions 6,505,674 1,824,980 3,542,582 1,375,036
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 94,202,301 $34,088,755 $57,125,665 $56,395,397
====================================================================================================================================
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, 2004 (Unaudited)
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $2,125,057 $ 1,070,266 $2,231,050
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 271,496 143,187 316,589
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 4,106 254 529
Custodian's fees and expenses 10,862 7,102 11,799
Trustees' fees and expenses 1,292 706 1,357
Professional fees 5,206 4,548 5,392
Shareholders' reports - printing and mailing expenses 7,130 3,388 6,767
Stock exchange listing fees 161 84 194
Investor relations expense 5,066 2,541 4,346
Other expenses 5,452 4,974 5,107
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 350,630 190,599 398,457
Custodian fee credit (5,775) (2,755) (2,701)
Expense reimbursement -- (66,505) (156,848)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 344,855 121,339 238,908
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 1,780,202 948,927 1,992,142
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 222,066 37,068 29,462
Net realized gain (loss) from forward swap transactions -- (44,500) (117,419)
Change in net unrealized appreciation (depreciation) of investments 1,396,593 1,117,323 2,740,440
Change in net unrealized appreciation (depreciation) of forward swap transactions -- (151,226) (365,468)
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 1,618,659 958,665 2,287,015
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (141,249) (67,511) (173,229)
From accumulated net realized gains from investments -- (978) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (141,249) (68,489) (173,229)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $3,257,612 $1,839,103 $4,105,928
====================================================================================================================================
See accompanying notes to financial statements.
43
Statement of
OPERATIONS Six Months Ended November 30, 2004 (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 $3,499,573 $1,228,276 $1,967,654 $1,962,045
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 455,410 165,123 275,267 272,391
Preferred shares - auction fees 58,661 21,309 35,096 35,096
Preferred shares - dividend disbursing agent fees 5,014 5,014 5,014 5,014
Shareholders' servicing agent fees and expenses 6,677 222 397 482
Custodian's fees and expenses 17,444 5,620 10,726 11,778
Trustees' fees and expenses 2,521 622 1,284 1,551
Professional fees 6,099 4,473 5,307 5,146
Shareholders' reports - printing and mailing expenses 10,316 476 6,735 7,787
Stock exchange listing fees 5,486 96 160 167
Investor relations expense 8,631 2,465 5,028 5,197
Other expenses 6,392 4,056 6,476 5,201
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 582,651 209,476 351,490 349,810
Custodian fee credit (2,818) (1,066) (3,490) (2,202)
Expense reimbursement -- (76,693) (127,852) (134,951)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 579,833 131,717 220,148 212,657
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,919,740 1,096,559 1,747,506 1,749,388
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 300,654 29,629 249,784 (11,816)
Net realized gain (loss) from forward swap transactions -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments 2,051,119 971,125 1,560,726 2,097,913
Change in net unrealized appreciation (depreciation) of
forward swap transactions -- (47,711) -- (187,274)
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 2,351,773 953,043 1,810,510 1,898,823
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (291,791) (71,130) (154,448) (175,368)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (291,791) (71,130) (154,448) (175,368)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $4,979,722 $1,978,472 $3,403,568 $3,472,843
====================================================================================================================================
See accompanying notes to financial statements.
44
Statement of
CHANGES IN NET ASSETS (Unaudited)
GEORGIA
GEORGIA GEORGIA DIVIDEND
PREMIUM INCOME (NPG) DIVIDEND ADVANTAGE (NZX) ADVANTAGE 2 (NKG)
---------------------------- ---------------------------- ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,780,202 $ 3,686,825 $ 948,927 $ 1,906,221 $1,992,142 $ 3,994,165
Net realized gain (loss) from
investments 222,066 (142,352) 37,068 (34,604) 29,462 (155,715)
Net realized gain (loss) from
forward swap transactions -- -- (44,500) -- (117,419) --
Change in net unrealized
appreciation (depreciation)
of investments 1,396,593 (3,536,134) 1,117,323 (2,293,885) 2,740,440 (5,355,917)
Change in net unrealized
appreciation (depreciation)
of forward
swap transactions -- -- (151,226) -- (365,468) --
Distributions to
Preferred Shareholders:
From net investment income (141,249) (189,236) (67,511) (108,936) (173,229) (250,342)
From accumulated net
realized gains
from investments -- -- (978) (1,918) -- (10,400)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,257,612 (180,897) 1,839,103 (533,122) 4,105,928 (1,778,209)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,717,212) (3,423,438) (858,375) (1,704,122) (1,830,571) (3,660,472)
From accumulated net
realized gains from
investment transactions -- -- -- (26,640) -- (99,254)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,717,212) (3,423,438) (858,375) (1,730,762) (1,830,571) (3,759,726)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 3,771 -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 70,548 160,945 -- 33,434 -- 32,954
Preferred shares offering costs -- -- 13,620 (1,870) 100 (10,285)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 70,548 160,945 13,620 35,335 100 22,669
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 1,610,948 (3,443,390) 994,348 (2,228,549) 2,275,457 (5,515,266)
Net assets applicable
to Common shares
at the beginning of period 54,606,595 58,049,985 28,347,941 30,576,490 62,809,815 68,325,081
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $56,217,543 $54,606,595 $29,342,289 $28,347,941 $65,085,272 $62,809,815
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 574,264 $ 652,523 $ 383,439 $ 360,398 $ (142,875) $ (131,217)
====================================================================================================================================
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
11/30/04 5/31/04 11/30/04 5/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,919,740 $ 6,036,869 $ 1,096,559 $ 2,198,462
Net realized gain (loss) from investments 300,654 1,150,011 29,629 (112,796)
Net realized gain (loss) from
forward swap transactions -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments 2,051,119 (7,239,557) 971,125 (2,363,263)
Change in net unrealized appreciation
(depreciation) of forward
swap transactions -- -- (47,711) --
Distributions to Preferred Shareholders:
From net investment income (291,791) (386,028) (71,130) (107,525)
From accumulated net realized gains
from investments -- -- -- (9,400)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 4,979,722 (438,705) 1,978,472 (394,522)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,827,326) (5,617,376) (1,032,964) (2,041,238)
From accumulated net realized gains
from investment transactions -- -- -- (160,089)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,827,326) (5,617,376) (1,032,964) (2,201,327)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 1,664
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 109,017 211,834 32,757 113,571
Preferred shares offering costs -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 109,017 211,834 32,757 115,235
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,261,413 (5,844,247) 978,265 (2,480,614)
Net assets applicable to Common
shares at the beginning of period 91,940,888 97,785,135 33,110,490 35,591,104
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $94,202,301 $91,940,888 $34,088,755 $33,110,490
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 797,432 $ 996,809 $ 433,738 $ 441,273
====================================================================================================================================
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
11/30/04 5/31/04 11/30/04 5/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,747,506 $ 3,524,512 $ 1,749,388 $ 3,516,284
Net realized gain (loss) from investments 249,784 29,594 (11,816) (355,355)
Net realized gain (loss) from
forward swap transactions -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments 1,560,726 (4,418,430) 2,097,913 (3,908,003)
Change in net unrealized appreciation
(depreciation) of forward
swap transactions -- -- (187,274) --
Distributions to Preferred Shareholders:
From net investment income (154,448) (219,210) (175,368) (258,138)
From accumulated net realized gains
from investments -- (6,486) -- (3,015)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,403,568 (1,090,020) 3,472,843 (1,008,227)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,614,094) (3,186,908) (1,576,891) (3,152,705)
From accumulated net realized gains
from investment transactions -- (106,264) -- (27,839)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from distributions
to Common shareholders (1,614,094) (3,293,172) (1,576,891) (3,180,544)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 2,456 -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 24,972 50,055 17,940 30,033
Preferred shares offering costs -- -- -- (13,175)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 24,972 52,511 17,940 16,858
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,814,446 (4,330,681) 1,913,892 (4,171,913)
Net assets applicable to Common
shares at the beginning of period 55,311,219 59,641,900 54,481,505 58,653,418
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $57,125,665 $55,311,219 $56,395,397 $54,481,505
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 279,134 $ 300,170 $ (9,025) $ (6,154)
====================================================================================================================================
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) is traded on the New York Stock Exchange. The
Funds are registered under the Investment Company Act of 1940, as amended, as
closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers, evaluations of anticipated
cash flows or collateral and general market conditions. If it is determined that
market prices for a security are unavailable or inappropriate, the Board of
Trustees of the Funds, or its designee, may establish a fair value for the
security. Temporary investments in securities that have variable rate and demand
features qualifying them as short-term securities are valued at amortized cost,
which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At November 30, 2004,
North Carolina Premium Income (NNC), North Carolina Dividend Advantage (NRB) and
North Carolina Dividend Advantage 3 (NII) had outstanding when-issued purchase
commitments of $521,042, $416,834 and $521,042, 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 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 on each Series is determined every
seven days, pursuant to a dutch auction process overseen by the auction agent,
and is payable weekly 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 may 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
amount of the payment obligation is based on the notional amount of the forward
swap contract. 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 does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash. 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, its 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
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 4,547 9,866 -- 2,157 -- 2,243
---------------------------------------------------------------------------------------------------------
4,547 9,866 -- 2,157 -- 2,243
=========================================================================================================
NORTH CAROLINA NORTH CAROLINA
PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
---------------------- ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 6,832 12,801 2,107 6,918
---------------------------------------------------------------------------------------------------------
6,832 12,801 2,107 6,918
=========================================================================================================
NORTH CAROLINA NORTH CAROLINA
DIVIDEND DIVIDEND
ADVANTAGE 2 (NNO) ADVANTAGE 3 (NII)
---------------------- -----------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 1,605 3,167 1,212 1,990
---------------------------------------------------------------------------------------------------------
1,605 3,167 1,212 1,990
=========================================================================================================
50
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the six months ended November 30, 2004, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Purchases $10,627,724 $4,505,140 $4,962,669
Sales and maturities 9,083,388 4,216,258 3,257,975
================================================================================
NORTH NORTH NORTH NORTH
CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NNC) (NRB) (NNO) (NII)
--------------------------------------------------------------------------------
Purchases $12,703,134 $2,757,390 $8,541,154 $4,746,243
Sales and maturities 12,044,876 1,939,516 8,915,465 4,113,895
================================================================================
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 on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At November 30, 2004, the cost of investments was as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Cost of investments $79,944,420 $42,242,779 $96,813,894
================================================================================
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 $132,828,837 $48,818,301 $80,384,742 $82,343,139
================================================================================
51
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2004, were as follows:
GEORGIA GEORGIA GEORGIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NKG)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $3,929,959 $1,403,580 $1,824,896
Depreciation (116,693) (19,631) (290,838)
--------------------------------------------------------------------------------
Net unrealized appreciation
of investments $3,813,266 $1,383,949 $1,534,058
================================================================================
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 $6,748,998 $1,874,202 $3,557,314 $1,755,959
Depreciation (184,117) (444) (11,141) (193,649)
--------------------------------------------------------------------------------
Net unrealized appreciation
of investments $6,564,881 $1,873,758 $3,546,173 $1,562,310
================================================================================
The tax components of undistributed net investment income and net realized gains
at May 31, 2004, 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 * $909,304 $506,476 $179,001
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 * $1,412,820 $615,342 $567,505 $260,661
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- -- 29,515 --
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 3, 2004, paid on June 1, 2004.
** 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,
2004, 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 $3,576,247 $1,804,473 $3,908,774
Distributions from net ordinary income * 25,456 -- 109,478
Distributions from net long-term capital gains -- 28,503 --
=========================================================================================================
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 $5,990,683 $2,139,529 $3,390,258 $3,408,983
Distributions from net ordinary income ** -- 66,536 76,010 30,673
Distributions from net long-term capital gains -- 102,835 36,895 --
=========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2004, 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 GEORGIA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE 3
(NPG) (NZX) (NKG) (NNC) (NII)
---------------------------------------------------------------------------------------------------------
Expiration year:
2005 $340,685 $ -- $ -- $ 71,954 $ --
2006 -- -- -- -- --
2007 -- -- -- -- --
2008 129,908 -- -- 108,131 --
2009 -- -- -- 731,398 --
2010 -- -- -- -- --
2011 -- -- -- -- --
2012 123,954 70 155,675 -- 339,128
---------------------------------------------------------------------------------------------------------
Total $594,547 $ 70 $155,675 $911,483 $339,128
=========================================================================================================
The following Funds elected to defer net realized losses from investments
incurred from November 1, 2003 through May 31, 2004 ("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 NORTH
GEORGIA CAROLINA CAROLINA
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE ADVANTAGE 3
(NZX) (NRB) (NII)
--------------------------------------------------------------------------------
$34,535 $119,895 $16,228
================================================================================
53
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Trustees, effective August 1, 2004, a complex-wide
management fee structure was adopted for all funds sponsored by Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and
its affiliates. This fee structure separates each fund's management fee into two
components - a complex-level component, based on the aggregate amount of all
funds assets managed by the Adviser and its affiliates, 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 and its affiliates. Under
no circumstances will this pricing structure result in a fund paying management
fees at a rate higher than would otherwise have been applicable had the
complex-wide management fee structure not been implemented. As a consequence of
this new management fee structure, the funds' effective management fees were
reduced by approximately .007% as of December 31, 2004.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds 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
Effective August 1, 2004, 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 follows:
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.
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were 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) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
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) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. 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. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 30, 2004, to shareholders of
record on December 15, 2004, as follows:
NORTH NORTH NORTH NORTH
GEORGIA GEORGIA GEORGIA CAROLINA CAROLINA CAROLINA CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NPG) (NZX) (NKG) (NNC) (NRB) (NNO) (NII)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0755 $.0730 $.0650 $.0745 $.0765 $.0720 $.0670
=========================================================================================================
At the same time, the following Funds declared capital gains and ordinary income
distributions as follows:
NORTH
GEORGIA GEORGIA CAROLINA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPG) (NZX) (NNO)
--------------------------------------------------------------------------------
Capital gains distributions per share $ -- $.0083 $.0698
Ordinary income distributions per share* .0049 -- --
================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
Swap Transactions
North Carolina Dividend Advantage 2 (NNO) entered into forward starting swap
transactions for the purpose of hedging its portfolio duration. The swap
transactions will be valued daily with the corresponding unrealized gain or loss
reflected in the Fund's NAV. The Fund entered into the forward starting swap
transactions on the dates and in the notional amounts as follows:
Trade Date December 2, 2004 December 8, 2004
--------------------------------------------------------------------------------
Notional Amount $1,750,000 $600,000
================================================================================
Adviser Merger
Effective January 1, 2005, the Adviser and its affiliate, Nuveen Institutional
Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), also
a wholly owned subsidiary of Nuveen Investments, Inc. As a result of the merger,
NAM is now the adviser to all funds previously advised by either NIAC or the
Adviser.
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 Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
GEORGIA PREMIUM
INCOME (NPG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) $14.42 $ .47 $ .42 $(.04) $ -- $ .85 $(.45) $ -- $(.45)
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)
2000 14.45 1.03 (1.65) (.23) -- (.85) (.80) -- (.80)
GEORGIA DIVIDEND
ADVANTAGE (NZX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 14.47 .48 .48 (.03) -- .93 (.44) -- (.44)
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:
2005(a) 13.79 .44 .50 (.04) -- .90 (.40) -- (.40)
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:
2005(a) $ -- $14.82 $16.4700 10.79% 5.96%
2004 -- 14.42 15.3000 (4.56) (.23)
2003 -- 15.36 16.9500 12.92 13.78
2002 -- 14.31 15.8300 8.98 7.32
2001 -- 14.15 15.3500 30.41 16.98
2000 -- 12.80 12.4375 (18.84) (5.87)
GEORGIA DIVIDEND
ADVANTAGE (NZX)
----------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) .01 14.97 15.2900 12.90 6.53
2004 -- 14.47 13.9500 (5.15) (1.73)
2003 .03 15.62 15.5900 12.56 18.82
2002(b) (.19) 14.00 14.7400 1.42 1.02
GEORGIA DIVIDEND
ADVANTAGE 2 (NKG)
----------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 14.29 13.5900 5.98 6.58
2004 -- 13.79 13.2000 (6.57) (2.67)
2003(c) (.20) 15.01 14.9800 3.16 8.22
==============================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------- -------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==================================================================================================================================
GEORGIA PREMIUM
INCOME (NPG)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) $56,218 1.25%* 6.31%* 1.23%* 6.33%* 11%
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
2000 47,991 1.43 7.73 1.40 7.76 17
GEORGIA DIVIDEND
ADVANTAGE (NZX)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 29,342 1.30* 6.00* .83* 6.48* 10
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:
2005(a) 65,085 1.23* 5.64* .74* 6.13* 3
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:
2005(a) $27,800 $25,000 $75,555
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
2000 27,800 25,000 68,157
GEORGIA DIVIDEND
ADVANTAGE (NZX)
----------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 15,000 25,000 73,904
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:
2005(a) 33,000 25,000 74,307
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, 2004.
(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 Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NORTH CAROLINA PREMIUM
INCOME (NNC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) $14.55 $ .46 $ .38 $(.05) $ -- $ .79 $(.45) $ -- $(.45)
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)
2000 14.28 1.02 (1.61) (.26) -- (.85) (.81) -- (.81)
NORTH CAROLINA DIVIDEND
ADVANTAGE (NRB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 14.72 .49 .42 (.03) -- .88 (.46) -- (.46)
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:
2005(a) 14.81 .47 .48 (.04) -- .91 (.43) -- (.43)
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:
2005(a) 13.89 .45 .47 (.04) -- .88 (.40) -- (.40)
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:
2005(a) $ -- $14.89 $16.3800 9.34% 5.44%
2004 -- 14.55 15.4000 (4.08) (.40)
2003 -- 15.50 16.9500 10.27 15.80
2002 -- 14.18 16.2100 15.44 7.62
2001 -- 13.94 14.8000 14.03 16.65
2000 -- 12.62 13.6875 (7.76) (5.98)
NORTH CAROLINA DIVIDEND
ADVANTAGE (NRB)
-----------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 15.14 16.4500 12.48 6.01
2004 -- 14.72 15.0500 (2.76) (1.08)
2003 .01 15.87 16.4500 13.52 17.75
2002 -- 14.39 15.4400 7.54 9.58
2001(b) (.17) 13.90 15.1500 2.42 (1.57)
NORTH CAROLINA DIVIDEND
ADVANTAGE 2 (NNO)
-----------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 15.29 16.1300 12.04 6.19
2004 -- 14.81 14.8000 (1.94) (1.83)
2003 -- 15.98 15.9700 14.10 18.98
2002(c) (.14) 14.30 14.9000 1.64 2.22
NORTH CAROLINA DIVIDEND
ADVANTAGE 3 (NII)
-----------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 14.37 14.8500 11.58 6.39
2004 -- 13.89 13.6800 (4.93) (1.75)
2003(d) (.21) 14.96 15.2000 4.56 7.86
===============================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------- -------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================================
NORTH CAROLINA PREMIUM
INCOME (NNC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) $94,202 1.23%* 6.18%* 1.23%* 6.18%* 9%
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
2000 79,167 1.37 7.81 1.35 7.83 25
NORTH CAROLINA DIVIDEND
ADVANTAGE (NRB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 34,089 1.23* 5.98* .77* 6.43* 4
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:
2005(a) 57,126 1.23* 5.65* .77* 6.11* 10
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:
2005(a) 56,395 1.24* 5.73* .76* 6.21* 5
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:
2005(a) $46,800 $25,000 $75,322
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
2000 46,800 25,000 67,290
NORTH CAROLINA DIVIDEND
ADVANTAGE (NRB)
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Year Ended 5/31:
2005(a) 17,000 25,000 75,131
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)
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Year Ended 5/31:
2005(a) 28,000 25,000 76,005
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:
2005(a) 28,000 25,000 75,353
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, 2004.
(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 CLOSED-END EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit,nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
the dividends or distributions awaiting reinvestment. Because the market price
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.
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
Effective Jan. 1, 2005, the asset management services and operations of Nuveen
Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part
of Nuveen Asset Management (NAM). This internal consolidation is intended to
simplify the delivery of services to the investment management clients of Nuveen
Investments. It does not affect the investment objectives or portfolio
management of any Fund.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments and (ii) information
regarding how the Funds voted proxies relating to portfolio securities held
during the most recent 12-month period ended June 30, 2004, are available
without charge, upon request, by calling Nuveen Investments toll-free at (800)
257-8787 or on Nuveen's web site 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.
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 sensitivity of a bond
or bond Fund's value to changes when interest rates change. Generally, the
longer a bond or Fund's duration, the more the price of the bond or Fund will
change as interest rates change. Leverage-adjusted duration takes into account
the leveraging process for a Fund and therefore is 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
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT 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 six month period ended November 30, 2004. 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 $100 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-C-1104D
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 Schedule I 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 to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
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 8, 2005
-------------------------------------------------------------------
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 8, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.