Unassociated Document



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
Investment Company Act file number 811-22253
 
Nuveen Municipal Value Fund 2
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            10/31          
 
Date of reporting period:         7/31/12         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 
 
 
 
 
Item 1. Schedule of Investments
 
   
Portfolio of Investments (Unaudited) 
      
   
Nuveen Municipal Value Fund 2 (NUW) 
      
   
July 31, 2012 
      
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Alaska – 0.6% 
      
   
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, 
      
   
Series 2006A: 
      
$       1,050 
  
4.625%, 6/01/23 
6/14 at 100.00 
Ba1 
$       1,050,032 
350 
  
5.000%, 6/01/46 
6/14 at 100.00 
B+ 
276,108 
1,400 
  
Total Alaska 
    
1,326,140 
   
Arizona – 4.2% 
      
1,520 
  
Arizona School Facilities Board, Certificates of Participation, Series 2003A, 5.000%, 
No Opt. Call 
A+ 
1,595,514 
   
9/01/13 – NPFG Insured 
      
4,000 
  
Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Bonds, El 
2/19 at 100.00 
BBB 
4,804,800 
   
Paso Electric Company, Refunding Series 2009A, 7.250%, 2/01/40 
      
3,045 
  
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc 
No Opt. Call 
A– 
3,165,430 
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 
      
8,565 
  
Total Arizona 
    
9,565,744 
   
California – 8.6% 
      
2,500 
  
California State Public Works Board, Lease Revenue Bonds, Department of General Services 
4/19 at 100.00 
A2 
2,978,350 
   
Buildings 8 & 9, Series 2009A, 6.250%, 4/01/34 
      
500 
  
California State, General Obligation Bonds, Tender Option Bond Trust 3162, 19.560%, 3/01/18 – 
No Opt. Call 
AA– 
799,520 
   
AGM Insured (IF) 
      
1,800 
  
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement 
6/15 at 100.00 
A2 
1,841,616 
   
Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 
      
3,635 
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed 
6/17 at 100.00 
BB– 
2,918,251 
   
Bonds, Series 2007A-1, 5.000%, 6/01/33 
      
1,750 
  
Lodi Unified School District, San Joaquin County, California, General Obligation Bonds, 
8/13 at 100.00 
AA– (4) 
1,833,913 
   
Election 2002 Series 2004, 5.000%, 8/01/29 (Pre-refunded 8/01/13) – AGM Insured 
      
450 
  
M-S-R Energy Authority, California, Gas Revenue Bonds, Series 2009A, 6.500%, 11/01/39 
No Opt. Call 
A 
570,290 
10,200 
  
Palomar Pomerado Health, California, General Obligation Bonds, Series 2009A, 0.000%, 8/01/38 – 
8/29 at 100.00 
AA– 
8,730,894 
   
AGC Insured 
      
20,835 
  
Total California 
    
19,672,834 
   
Colorado – 5.7% 
      
1,000 
  
Cherry Creek School District 5, Arapahoe County, Colorado, General Obligation Bonds, Series 
No Opt. Call 
AA 
1,021,550 
   
2005B, 6.000%, 12/15/12 
      
5,000 
  
Denver City and County, Colorado, Airport System Revenue Bonds, Series 2005A, 5.000%, 
11/15 at 100.00 
A+ 
5,556,900 
   
11/15/25 – SYNCORA GTY Insured 
      
3,605 
  
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/27 – 
9/20 at 67.94 
BBB 
1,642,330 
   
NPFG Insured 
      
4,000 
  
Park Creek Metropolitan District, Colorado, Senior Property Tax Supported Revenue Bonds, 
12/19 at 100.00 
AA– 
4,688,480 
   
Series 2009, 6.375%, 12/01/37 – AGC Insured 
      
13,605 
  
Total Colorado 
    
12,909,260 
   
Florida – 8.9% 
      
9,500 
  
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2009A, 
10/19 at 100.00 
A2 
10,846,530 
   
5.500%, 10/01/41 
      
   
Miami-Dade County, Florida, General Obligation Bonds, Build Better Communities Program, 
      
   
Series 2009-B1: 
      
2,500 
  
6.000%, 7/01/38 
7/18 at 100.00 
Aa2 
2,916,300 
2,000 
  
5.625%, 7/01/38 
7/18 at 100.00 
Aa2 
2,269,280 
2,000 
  
Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 5.125%, 1/01/32 (Pre-refunded 
1/13 at 100.00 
AA+ (4) 
2,040,620 
   
1/01/13) – FGIC Insured 
      
4,500 
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007, 
5/18 at 100.00 
N/R 
2,211,287 
   
6.450%, 5/01/23 (5), (6) 
      
20,500 
  
Total Florida 
    
20,284,017 
   
Georgia – 0.8% 
      
495 
  
Atlanta, Georgia, Tax Allocation Bonds, Beltline Project Series 2008A. Remarketed, 
1/19 at 100.00 
N/R 
585,110 
   
7.500%, 1/01/31 
      
1,000 
  
Clayton County Development Authority, Georgia, Special Facilities Revenue Bonds, Delta Air 
6/20 at 100.00 
CCC+ 
1,232,450 
   
Lines, Inc. Project, Series 2009A, 8.750%, 6/01/29 
      
1,495 
  
Total Georgia 
    
1,817,560 
   
Illinois – 10.2% 
      
725 
  
Cook and DuPage Counties High School District 210 Lemont, Illinois, General Obligation Bonds, 
1/16 at 100.00 
Aa2 
802,169 
   
Refunding Series 2006, 5.000%, 1/01/26 – NPFG Insured 
      
1,885 
  
Cook County Township High School District 225 Northfield, Illinois, General Obligation Bonds, 
No Opt. Call 
AAA 
1,816,537 
   
Capital Appreciation Refunding Series 2002B, 0.000%, 12/01/15 
      
5,000 
  
Illinois Finance Authority, Revenue Bonds, Northwestern Memorial Hospital, Series 2009A, 
8/19 at 100.00 
AA+ 
5,888,100 
   
6.000%, 8/15/39 
      
3,500 
  
Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2009A, 
5/19 at 100.00 
A 
4,249,910 
   
7.125%, 11/15/37 
      
5,000 
  
Illinois Finance Authority, Revenue Bonds, Rush University Medical Center Obligated Group, 
11/18 at 100.00 
A2 
6,334,600 
   
Series 2009A, 7.250%, 11/01/38 
      
3,970 
  
Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., 
5/17 at 100.00 
BBB+ 
4,180,728 
   
Refunding Series 2007A, 5.250%, 5/01/34 
      
20,080 
  
Total Illinois 
    
23,272,044 
   
Indiana – 5.3% 
      
5,000 
  
Indiana Finance Authority, Hospital Revenue Bonds, Deaconess Hospital Obligated Group, Series 
3/19 at 100.00 
A+ 
5,920,500 
   
2009A, 6.750%, 3/01/39 
      
3,650 
  
Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest 
3/17 at 100.00 
A– 
3,823,339 
   
Indiana, Series 2007, 5.500%, 3/01/37 
      
2,000 
  
Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series 2009B, 
1/19 at 100.00 
A+ 
2,335,720 
   
6.000%, 1/01/39 
      
10,650 
  
Total Indiana 
    
12,079,559 
   
Iowa – 1.2% 
      
3,025 
  
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 
6/15 at 100.00 
B+ 
2,719,657 
   
5.375%, 6/01/38 
      
   
Louisiana – 7.4% 
      
5,000 
  
Louisiana Citizens Property Insurance Corporation, Assessment Revenue Bonds, Series 2006C-3, 
6/18 at 100.00 
AA– 
5,905,300 
   
6.125%, 6/01/25 – AGC Insured 
      
   
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, 
      
   
Series 2007A: 
      
7,000 
  
5.375%, 5/15/43 
5/17 at 100.00 
Baa1 
7,243,950 
275 
  
5.500%, 5/15/47 
5/17 at 100.00 
Baa1 
286,974 
3,255 
  
St John Baptist Parish, Louisiana, Revenue Bonds, Marathon Oil Corporation, Series 2007A, 
6/17 at 100.00 
BBB 
3,462,832 
   
5.125%, 6/01/37 
      
15,530 
  
Total Louisiana 
    
16,899,056 
   
Maine – 1.9% 
      
3,335 
  
Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Bowdoin College, 
7/19 at 100.00 
Aa2 
4,433,782 
   
Tender Option Bond Trust 2009-5B, 13.584%, 7/01/39 (IF) (7) 
      
   
Massachusetts – 0.6% 
      
1,000 
  
Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Tender Option Bond 
8/19 at 100.00 
AAA 
1,427,940 
   
Trust 2989, 13.304%, 8/01/38 (IF) 
      
   
Michigan – 4.0% 
      
3,000 
  
Detroit Water Supply System, Michigan, Water Supply System Revenue Bonds, Refunding Senior 
7/16 at 100.00 
AA– 
3,089,550 
   
Lien Series 2006D, 5.000%, 7/01/32 – AGM Insured 
      
5,000 
  
Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, 
7/15 at 100.00 
A 
5,043,650 
   
7/01/35 – NPFG Insured 
      
1,050 
  
Huron Valley School District, Oakland and Livingston Counties, Michigan, General Obligation 
No Opt. Call 
Aa2 
1,086,446 
   
Bonds, Refunding Series 2008, 5.000%, 5/01/13 – AGM Insured 
      
9,050 
  
Total Michigan 
    
9,219,646 
   
Nevada – 2.8% 
      
250 
  
Clark County, Nevada, Senior Lien Airport Revenue Bonds, Series 2005A, 5.000%, 7/01/40 – 
7/15 at 100.00 
Aa2 
271,995 
   
AMBAC Insured 
      
5,415 
  
Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Series 2009A, 
6/19 at 100.00 
BBB– 
6,039,566 
   
8.000%, 6/15/30 
      
5,665 
  
Total Nevada 
    
6,311,561 
   
New Jersey – 2.8% 
      
   
New Jersey Educational Facilities Authority, Revenue Refunding Bonds, University of Medicine 
      
   
and Dentistry of New Jersey, Series 2009B: 
      
2,135 
  
7.125%, 12/01/23 
6/19 at 100.00 
A– 
2,679,404 
3,000 
  
7.500%, 12/01/32 
6/19 at 100.00 
A– 
3,763,950 
5,135 
  
Total New Jersey 
    
6,443,354 
   
New York – 1.7% 
      
3,000 
  
Liberty Development Corporation, New York, Goldman Sachs Headquarters Revenue Bonds Series 
No Opt. Call 
A 
3,610,050 
   
2007, 5.500%, 10/01/37 
      
130 
  
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air 
12/20 at 100.00 
BBB– 
147,623 
   
Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/42 
      
3,130 
  
Total New York 
    
3,757,673 
   
North Carolina – 1.3% 
      
3,000 
  
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%, 
1/13 at 100.00 
A 
3,059,670 
   
1/01/19 – NPFG Insured 
      
   
Ohio – 6.2% 
      
5,000 
  
American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project 
2/19 at 100.00 
AA– 
5,745,250 
   
Series 2009A, 5.750%, 2/15/39 – AGC Insured 
      
   
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue 
      
   
Bonds, Senior Lien, Series 2007A-2: 
      
1,115 
  
5.875%, 6/01/30 
6/17 at 100.00 
B+ 
925,863 
5,885 
  
6.500%, 6/01/47 
6/17 at 100.00 
BB 
5,238,709 
2,000 
  
Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University 
1/15 at 100.00 
A (4) 
2,308,040 
   
Hospitals Health System, Series 2009, 6.750%, 1/15/39 (Pre-refunded 1/15/15) 
      
14,000 
  
Total Ohio 
    
14,217,862 
   
Puerto Rico – 4.9% 
      
4,390 
  
Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 
7/18 at 100.00 
Baa2 
4,666,482 
   
6.000%, 7/01/44 
      
3,000 
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 
8/19 at 100.00 
A+ 
3,397,410 
   
2009A, 6.000%, 8/01/42 
      
2,500 
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Tender Option Bonds 
No Opt. Call 
AA– 
3,135,500 
   
Trust 11851, 18.806%, 2/01/16 (IF) 
      
9,890 
  
Total Puerto Rico 
    
11,199,392 
   
Rhode Island – 3.0% 
      
3,000 
  
Rhode Island Health and Educational Building Corporation, Hospital Financing Revenue Bonds, 
5/19 at 100.00 
A– 
3,584,340 
   
Lifespan Obligated Group Issue, Series 2009A, 7.000%, 5/15/39 
      
3,240 
  
Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, 
12/12 at 100.00 
BBB+ 
3,272,368 
   
Series 2002A, 6.125%, 6/01/32 
      
6,240 
  
Total Rhode Island 
    
6,856,708 
   
Texas – 6.4% 
      
3,550 
  
Ennis Independent School District, Ellis County, Texas, General Obligation Bonds, Series 2006, 
8/16 at 46.64 
Aaa 
1,498,491 
   
0.000%, 8/15/31 
      
5,300 
  
North Texas Tollway Authority, Second Tier System Revenue Refunding Bonds, Series 2008F, 
1/18 at 100.00 
A3 
5,827,350 
   
5.750%, 1/01/38 
      
5,000 
  
Richardson Hospital Authority, Texas, Revenue Bonds, Richardson Regional Medical Center, 
12/13 at 100.00 
A+ 
5,148,950 
   
Series 2004, 6.000%, 12/01/34 
      
1,000 
  
Texas State, General Obligation Bonds, Public Financing Authority, Refunding Series 2011, 
No Opt. Call 
Aaa 
1,044,680 
   
4.000%, 10/01/13 
      
1,000 
  
Texas, General Obligation Refunding Bonds, Public Finance Authority, Series 2002, 
No Opt. Call 
Aaa 
1,008,880 
   
5.500%, 10/01/12 
      
15,850 
  
Total Texas 
    
14,528,351 
   
Virgin Islands – 0.5% 
      
1,000 
  
Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, 
10/19 at 100.00 
BBB 
1,183,350 
   
Series 2009A, 6.750%, 10/01/37 
      
   
Virginia – 1.1% 
      
2,000 
  
Washington County Industrial Development Authority , Virginia, Hospital Revenue Bonds, 
1/19 at 100.00 
BBB+ 
2,493,120 
   
Mountain States Health Alliance, Series 2009C, 7.750%, 7/01/38 
      
   
Wisconsin – 7.9% 
      
5,000 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Healthcare Inc., 
4/13 at 100.00 
A 
5,102,850 
   
Series 2003, 6.400%, 4/15/33 
      
1,500 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, ProHealth Care, Inc. 
2/19 at 100.00 
A+ 
1,755,104 
   
Obligated Group, Series 2009, 6.625%, 2/15/39 
      
9,000 
  
Wisconsin State, General Fund Annual Appropriation Revenue Bonds, Refunding Series 2009A, 
5/19 at 100.00 
AA– 
11,201,125 
   
6.000%, 5/01/36 
      
15,500 
  
Total Wisconsin 
    
18,059,079 
$       210,480 
  
Total Long-Term Investments (cost $182,602,441) – 98.0%
    
223,737,359 
           
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Short-Term Investments – 1.3% 
      
   
Florida – 0.5% 
      
$       1,100 
  
Hillsborough County, Florida, Junior Lien Refunding Bonds, Variable Rate Demand Obligations, 
No Opt. Call 
Aa1 
$       1,100,000 
   
Series 2001, 5.500%, 8/01/12 – AMBAC Insured (8) 
      
   
Indiana – 0.8% 
      
1,890 
  
Indiana Bond Bank, State Revolving Fund Program Bonds, Variable Rate Demand Obligations, Series 
No Opt. Call 
AAA 
1,890,000 
   
2001A, 5.500%, 8/01/12 (8) 
      
$       2,990 
  
Total Short-Term Investments (cost $2,990,000) 
    
2,990,000 
   
Total Investments (cost $185,592,441) – 99.3% 
    
226,727,359 
   
Other Assets Less Liabilities – 0.7% 
    
1,600,115 
   
Net Assets – 100% 
    
$    228,327,474 
 
 
 
 
 
 
Fair Value Measurements
 
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
 
Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
 
 
Level 1
    
Level 2
    
Level 3
    
Total
  
Long-Term Investments: 
                      
Municipal Bonds 
 $ —     $ 221,526,072     $ 2,211,287     $ 223,737,359  
Short-Term Investments: 
                              
Municipal Bonds 
   —       2,990,000       —       2,990,000  
Total 
 $ —     $ 224,516,072     $ 2,211,287     $ 226,727,359  
 
 
The Nuveen funds’ Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds’ pricing policies, and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
 
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
 
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
 
Income Tax Information
 
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
 
At July 31, 2012, the cost of investments was $184,713,085.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2012, were as follows:
   
Gross unrealized: 
  
Appreciation 
$43,156,454 
Depreciation 
(1,142,180) 
Net unrealized appreciation (depreciation) of investments 
$42,014,274 
 
  (1)    All percentages shown in the Portfolio of Investments are based on net assets.
(2) 
  
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. 
   
There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities 
   
may be subject to periodic principal paydowns. 
(3) 
  
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, 
   
Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s 
   
or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated 
   
by any of these national rating agencies. 
(4) 
  
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, 
   
which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or 
   
agency securities are regarded as having an implied rating equal to the rating of such securities. 
(5) 
  
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income 
   
producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the 
   
payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the 
   
Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations 
   
and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. 
(6) 
  
Investment valued at fair value using methods determined in good faith by, or at the discretion of, the 
   
Board of Directors. For fair value measurement disclosure purposes, investment categorized as Level 3. 
(7) 
  
Investment, or portion of investment, has been pledged to collateralize the net payment obligations of 
   
investments in inverse floating rate transactions. 
(8) 
  
Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a 
   
short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate 
   
changes periodically based on market conditions or a specified market index. 
N/R 
  
Not rated. 
(IF) 
  
Inverse floating rate investment. 
 
 

 
 
 
 
 
Item 2. 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 Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
 
b.  
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.

File as exhibits as part of this Form 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)), exactly as set forth below: See EX-99 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 Municipal Value Fund 2 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date:         September 28, 2012        
 
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:         September 28, 2012        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date:         September 28, 2012