N-Q 1 nq2.htm NVY_NQ nq2.htm



 
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 811-10549
 
Nuveen Pennsylvania Dividend Advantage Municipal 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:            4/30          
 
Date of reporting period:         1/31/11         
 
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 Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
     
   
January 31, 2011
     
Principal
   
Optional Call
   
Amount (000)
 
Description (1)
Provisions (2)
Ratings (3)
Value
   
Education and Civic Organizations – 18.9% (12.4% of Total Investments)
     
$       1,000
 
Allegheny County Higher Education Building Authority, Pennsylvania, College Revenue Refunding
No Opt. Call
Baa3
$       984,070
   
Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28
     
800
 
Chester County Health and Education Facilities Authority, Pennsylvania, Revenue Bonds,
10/15 at 102.00
N/R
722,776
   
Immaculata University, Series 2005, 5.500%, 10/15/25
     
720
 
Chester County Industrial Development Authority, Pennsylvania, Avon Grove Charter School
12/17 at 100.00
BB+
624,262
   
Revenue Bonds, Series 2007A, 6.375%, 12/15/37
     
450
 
Delaware County Authority, Pennsylvania, General Revenue Bonds, Eastern Univsersity, Series
10/16 at 100.00
N/R
362,606
   
2006, 4.500%, 10/01/27 – RAAI Insured
     
   
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006:
     
340
 
5.000%, 8/01/23 – AMBAC Insured
8/16 at 100.00
A1
348,153
165
 
5.000%, 8/01/24 – AMBAC Insured
8/16 at 100.00
A1
167,998
1,435
 
Delaware County Authority, Pennsylvania, Revenue Refunding Bonds, Villanova University, Series
8/13 at 100.00
A1
1,548,035
   
2003, 5.250%, 8/01/17 – FGIC Insured
     
180
 
Erie Higher Education Building Authority, Pennsylvania, College Revenue Bonds, Gannon
5/17 at 100.00
N/R
150,932
   
University, Series 2007-GG3, 5.000%, 5/01/32 – RAAI Insured
     
200
 
Montgomery County Higher Education and Health Authority, Pennsylvania, Revenue Bonds, Arcadia
4/20 at 100.00
BBB+
184,306
   
University, Series 2010, 5.625%, 4/01/40
     
80
 
New Wilmington, Pennsylvania, Revenue, Westminster College, Series 2007G, 5.125%, 5/01/33 –
5/17 at 100.00
N/R
69,254
   
RAAI Insured
     
1,050
 
Pennsylvania Higher Educational Facilities Authority, General Revenue Bonds, State System of
6/18 at 100.00
Aa2
1,034,649
   
Higher Education, Series 2008AH, 5.000%, 6/15/33
     
285
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Allegheny College, Series
5/16 at 100.00
A–
254,585
   
2006, 4.750%, 5/01/31
     
610
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Drexel University, Series
11/17 at 100.00
A+
559,925
   
2007A, 5.000%, 5/01/37 – NPFG Insured
     
800
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Temple University, First
4/16 at 100.00
Aa3
845,304
   
Series of 2006, 5.000%, 4/01/21 – NPFG Insured
     
530
 
Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Leadership
1/13 at 102.00
BB
391,055
   
Learning Partners, Series 2005A, 5.375%, 7/01/36
     
120
 
Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, MaST Charter
8/20 at 100.00
BBB+
117,144
   
School Project, Series 2010, 6.000%, 8/01/35
     
270
 
Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Richard Allen
5/16 at 100.00
BBB–
236,863
   
Preparatory Charter School, Series 2006, 6.250%, 5/01/33
     
1,000
 
Union County, Higher Education Facilities Financing Authority, Pennsylvania, Revenue Bonds,
4/13 at 100.00
Aa2
1,075,690
   
Bucknell University, Series 2002A, 5.250%, 4/01/20
     
50
 
Wilkes-Barre Finance Authority, Pennsylvania, Revenue Bonds, University of Scranton, Series
11/20 at 100.00
A
45,473
   
2010, 5.000%, 11/01/40
     
10,085
 
Total Education and Civic Organizations
   
9,723,080
   
Health Care – 14.8% (9.8% of Total Investments)
     
625
 
Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, Ohio Valley
4/15 at 100.00
Ba2
475,094
   
General Hospital, Series 2005A, 5.125%, 4/01/35
     
600
 
Allentown Area Hospital Authority, Pennsylvania, Revenue Bonds, Sacred Heart Hospital, Series
No Opt. Call
Ca
561,744
   
2005, 6.000%, 11/15/16
     
300
 
Erie County Hospital Authority, Pennsylvania, Hospital Revenue Bonds, Saint Vincent Health
7/20 at 100.00
Baa2
290,193
   
Center Project, Series 2010A, 7.000%, 7/01/27
     
95
 
Erie County Hospital Authority, Pennsylvania, Revenue Bonds, Hamot Health Foundation, Series
11/17 at 100.00
A+
78,482
   
2007, 5.000%, 11/01/37 – CIFG Insured
     
835
 
Franklin County Industrial Development Authority, Pennsylvania, Revenue Bonds, Chambersburg
No Opt. Call
A2
748,603
   
Hospital Project, Series 2010, 5.375%, 7/01/42
     
270
 
Fulton County, Pennsylvania, Industrial Development Authority Hospital Revenue Bonds, Fulton
7/16 at 100.00
N/R
213,338
   
County Medical Center Project, Series 2006, 5.900%, 7/01/40
     
600
 
Lebanon County Health Facilities Authority, Pennsylvania, Revenue Bonds, Good Samaritan
11/12 at 101.00
BB+
521,832
   
Hospital Project, Series 2002, 5.900%, 11/15/28
     
740
 
Lehigh County General Purpose Authority, Pennsylvania, Hospital Revenue Bonds, Lehigh Valley
7/18 at 100.00
AA+
685,003
   
Health Network, Series 2008A, 5.000%, 7/01/33 – AGM Insured
     
1,155
 
Lehigh County General Purpose Authority, Pennsylvania, Revenue Bonds, Good Shepherd Group,
11/17 at 100.00
AA+
1,059,389
   
Series 2007, 5.000%, 11/01/37 – AGC Insured
     
160
 
Monroe County Hospital Authority, Pennsylvania, Hospital Revenue Bonds, Pocono Medical Center,
1/17 at 100.00
A–
138,318
   
Series 2007, 5.125%, 1/01/37
     
175
 
Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage Revenue
8/20 at 100.00
AA
172,162
   
Bonds, New Regional Medical Center Project, Series 2010, 5.375%, 8/01/38
     
300
 
Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Health System
5/20 at 100.00
AA
266,349
   
Revenue Bonds, Jefferson Health System, Series 2010B, 5.000%, 5/15/40
     
1,450
 
Washington County Hospital Authority, Pennsylvania, Revenue Bonds, Monongahela Valley Hospital
6/12 at 101.00
A3
1,480,001
   
Project, Series 2002, 6.250%, 6/01/22
     
   
West Shore Area Hospital Authority, Cumberland County, Pennsylvania, Hospital Revenue Bonds,
     
   
Holy Spirit Hospital of the Sisters of Christian Charity Project, Series 2001:
     
25
 
6.150%, 1/01/21
1/12 at 100.00
BBB+
25,173
600
 
6.250%, 1/01/32
1/12 at 100.00
BBB+
599,958
335
 
6.500%, 1/01/36 (WI/DD, Settling 2/15/11)
1/21 at 100.00
BBB+
332,524
8,265
 
Total Health Care
   
7,648,163
   
Housing/Multifamily – 1.8% (1.2% of Total Investments)
     
200
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Edinboro University
No Opt. Call
BBB–
184,520
   
Foundation Student Housing Project, Series 2010, 6.000%, 7/01/43
     
800
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Slippery Rock University
7/15 at 100.00
BBB+
666,056
   
Foundation Inc., Student Housing Project, Series 2005A, 5.000%, 7/01/37 – SYNCORA GTY Insured
     
120
 
Philadelphia Authority for Industrial Development, Pennsylvania, Multifamily Housing Revenue
5/15 at 102.00
Baa3
95,636
   
Bonds, Presbyterian Homes Germantown – Morrisville Project, Series 2005A, 5.625%, 7/01/35
     
1,120
 
Total Housing/Multifamily
   
946,212
   
Housing/Single Family – 6.2% (4.0% of Total Investments)
     
245
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 1995A,
10/15 at 100.00
AA+
223,269
   
4.900%, 10/01/37 (Alternative Minimum Tax)
     
210
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-93A,
4/15 at 100.00
AA+
202,056
   
4.950%, 10/01/26 (Alternative Minimum Tax)
     
545
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-94A,
10/15 at 100.00
AA+
505,520
   
5.150%, 10/01/37 (Alternative Minimum Tax)
     
215
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-93A,
4/15 at 100.00
AA+
206,867
   
4.950%, 10/01/26 (Alternative Minimum Tax) (UB)
     
370
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-94A,
10/15 at 100.00
AA+
343,198
   
5.150%, 10/01/37 (Alternative Minimum Tax) (UB)
     
225
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-95A,
10/15 at 100.00
AA+
205,042
   
4.900%, 10/01/37 (Alternative Minimum Tax) (UB)
     
1,100
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2007-97A,
10/16 at 100.00
AA+
1,088,824
   
4.600%, 10/01/27 (Alternative Minimum Tax) (UB)
     
455
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2007-98A,
10/16 at 100.00
AA+
412,972
   
4.850%, 10/01/31 (Alternative Minimum Tax) (UB)
     
3,365
 
Total Housing/Single Family
   
3,187,748
   
Industrials – 6.0% (4.0% of Total Investments)
     
3,000
 
Pennsylvania Industrial Development Authority, Economic Development Revenue Bonds, Series
7/12 at 101.00
A1
3,105,029
   
2002, 5.500%, 7/01/19 – AMBAC Insured
     
   
Long-Term Care – 9.8% (6.4% of Total Investments)
     
   
Bucks County Industrial Development Authority, Pennsylvania, Revenue Bonds, Lutheran Community
     
   
at Telford Center, Series 2007:
     
250
 
5.750%, 1/01/27
1/17 at 100.00
N/R
206,188
400
 
5.750%, 1/01/37
1/17 at 100.00
N/R
303,252
1,000
 
Cumberland County Municipal Authority Revenue Bonds, Pennsylvania, Diakon Lutheran Social
1/19 at 100.00
N/R
973,890
   
Ministries Project, Series 2009, 6.375%, 1/01/39
     
300
 
Cumberland County Municipal Authority, Pennsylvania, Revenue Bonds, Diakon Lutheran Social
1/17 at 100.00
N/R
242,925
   
Ministries, Series 2007, 5.000%, 1/01/36
     
300
 
Delaware County Authority, Revenue Bonds, Elwyn, Inc. Project, Series 2010, 5.000%, 6/01/21
6/17 at 100.00
BBB
293,121
205
 
Lancaster County Hospital Authority, Pennsylvania, Health Center Revenue Bonds, Masonic Homes
11/16 at 100.00
A
179,972
   
Project, Series 2006, 5.000%, 11/01/36
     
185
 
Lancaster County Hospital Authority, Pennsylvania, Revenue Bonds, Brethren Village Project,
7/17 at 100.00
N/R
171,336
   
Series 2008A, 6.375%, 7/01/30
     
785
 
Lebanon County Health Facilities Authority, Pennsylvania, Health Center Revenue Bonds,
12/14 at 100.00
N/R
683,664
   
Pleasant View Retirement Community, Series 2005A, 5.300%, 12/15/26
     
   
Pennsylvania Economic Development Financing Authority, Revenue Bonds, Northwestern Human
     
   
Services Inc., Series 1998A:
     
1,260
 
5.250%, 6/01/14
6/11 at 100.00
BB
1,207,912
50
 
5.125%, 6/01/18
6/11 at 100.00
BB
43,852
750
 
Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Philadelphia
7/11 at 101.00
Baa1
719,250
   
Corporation for the Aging Project, Series 2001B, 5.250%, 7/01/23 – AMBAC Insured
     
5,485
 
Total Long-Term Care
   
5,025,362
   
Materials – 4.5% (3.0% of Total Investments)
     
400
 
Allegheny County Industrial Development Authority, Pennsylvania, Revenue Bonds, United States
No Opt. Call
BB
404,952
   
Steel Corporation, Series 2005, 5.500%, 11/01/16
     
280
 
Bradford County Industrial Development Authority, Pennsylvania, Solid Waste Disposal Revenue
12/15 at 100.00
BBB
277,752
   
Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax)
     
1,000
 
Bucks County Industrial Development Authority, Pennsylvania, Environmental Improvement Revenue
No Opt. Call
BBB+
1,029,080
   
Bonds, USX Corporation Project, Series 1995, 5.400%, 11/01/17 (Mandatory put 11/01/11)
     
750
 
Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds,
5/11 at 100.00
N/R
600,233
   
National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
     
2,430
 
Total Materials
   
2,312,017
   
Tax Obligation/General – 21.2% (13.9% of Total Investments)
     
1,740
 
Butler County, Pennsylvania, Butler Area School District, General Obligation Bonds, Series
10/12 at 100.00
BBB
1,750,875
   
2002A, 5.375%, 10/01/26 – FGIC Insured
     
4,000
 
Delaware Valley Regional Finance Authority, Pennsylvania, Local Government Revenue Bonds,
No Opt. Call
AA–
4,390,440
   
Series 2002, 5.750%, 7/01/17 (UB)
     
   
Greensburg Salem School District, Westmoreland County, Pennsylvania, General Obligation
     
   
Refunding Bonds, Series 2002:
     
725
 
5.375%, 9/15/15 – FGIC Insured
9/12 at 100.00
A+
770,414
1,000
 
5.375%, 9/15/16 – FGIC Insured
9/12 at 100.00
A+
1,062,640
375
 
Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2007A, 5.000%,
No Opt. Call
Aa2
353,310
   
6/01/34 – FGIC Insured
     
950
 
Pine-Richland School District, Pennsylvania, General Obligation Bonds, School Improvement
7/15 at 100.00
AA+
901,807
   
Series 2005, 5.000%, 7/15/35 – AGM Insured
     
225
 
Pittsburgh, Pennsylvania, General Obligation Bonds, Series 2006B, 5.250%, 9/01/16 – AGM Insured
No Opt. Call
AA+
244,688
2,510
 
Reading School District, Berks County, Pennsylvania, General Obligation Bonds, Series 2003B,
No Opt. Call
A
711,535
   
0.000%, 1/15/32 – FGIC Insured
     
180
 
Scranton Parking Authority, Pennsylvania, Guaranteed Parking Revenue Bonds, Series 2004,
9/13 at 100.00
BBB
152,453
   
5.000%, 9/15/33 – FGIC Insured
     
600
 
York County, Pennsylvania, General Obligation Bonds, Series 2006, 5.000%, 6/01/33 –
12/15 at 100.00
AA
584,598
   
NPFG Insured
     
12,305
 
Total Tax Obligation/General
   
10,922,760
   
Tax Obligation/Limited – 22.9% (15.0% of Total Investments)
     
1,000
 
Allegheny County Redevelopment Authority, Pennsylvania, TIF Revenue Bonds, Pittsburg Mills
No Opt. Call
N/R
891,150
   
Project, Series 2004, 5.600%, 7/01/23
     
1,500
 
Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing
10/19 at 100.00
AA+
1,459,200
   
Program, Series 2009C, 5.125%, 10/01/36 – AGC Insured
     
4,000
 
Harrisburg Parking Authority, Pennsylvania, Guaranteed Revenue Refunding Bonds, Series 2001J,
9/11 at 100.00
Baa1
3,716,639
   
5.000%, 9/01/22 – NPFG Insured
     
485
 
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien Revenue Bonds, Series 2003A,
12/18 at 100.00
AA
465,969
   
5.000%, 12/01/32 – NPFG Insured
     
1,200
 
Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, Series 2005A, 5.250%,
No Opt. Call
AA+
1,357,080
   
7/15/18 – AGM Insured
     
   
Philadelphia Redevelopment Authority, Pennsylvania, Revenue Bonds, Philadelphia Neighborhood
     
   
Transformation Initiative, Series 2002A:
     
1,000
 
5.500%, 4/15/18 – FGIC Insured
4/12 at 100.00
A2
1,032,120
1,750
 
5.500%, 4/15/22 – FGIC Insured
4/12 at 100.00
A2
1,786,768
800
 
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%,
No Opt. Call
A3
720,168
   
7/01/33 – NPFG Insured
     
710
 
Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A,
No Opt. Call
A3
148,958
   
0.000%, 7/01/32 – FGIC Insured
     
250
 
Washington County Redevelopment Authority, Pennsylvania, Tanger Outlet Victory Center Tax
7/17 at 100.00
N/R
199,783
   
Increment Bonds, Series 2006A, 5.450%, 7/01/35
     
12,695
 
Total Tax Obligation/Limited
   
11,777,835
   
Transportation – 9.8% (6.4% of Total Investments)
     
130
 
Delaware River Joint Toll Bridge Commission, New Jersey and Pennsylvania, Revenue Bonds,
7/13 at 100.00
A2
139,490
   
Series 2003, 5.250%, 7/01/17
     
720
 
Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E,
1/20 at 100.00
A–
685,130
   
5.000%, 1/01/40
     
1,000
 
Pennsylvania Economic Development Financing Authority, Revenue Bonds, Amtrak 30th Street
6/12 at 102.00
BBB+
943,610
   
Station Parking Garage, Series 2002, 5.875%, 6/01/33 – ACA Insured (Alternative Minimum Tax)
     
   
Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Subordinate Special Revenue
     
   
Bonds, Series 2010A:
     
875
 
0.000%, 12/01/34
12/20 at 100.00
AA
618,433
250
 
5.000%, 12/01/38
No Opt. Call
Aa3
235,665
670
 
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A, 5.000%, 12/01/24 –
6/16 at 100.00
Aa3
687,668
   
AMBAC Insured
     
150
 
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Subordinate Lien, Refunding Series
12/19 at 100.00
A–
137,958
   
2009B-1, 5.000%, 12/01/37
     
1,000
 
Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue Bonds, Series 2009C, 0.000%,
6/26 at 100.00
AA+
749,770
   
6/01/33 – AGM Insured
     
1,000
 
Susquehanna Area Regional Airport Authority, Pennsylvania, Airport System Revenue Bonds,
1/13 at 100.00
Baa3
836,990
   
Series 2003A, 5.000%, 1/01/28 – AMBAC Insured (Alternative Minimum Tax)
     
5,795
 
Total Transportation
   
5,034,714
   
U.S. Guaranteed – 23.9% (15.7% of Total Investments) (4)
     
1,155
 
Bucks County Industrial Development Authority, Pennsylvania, Revenue Bonds, Pennswood Village
10/12 at 101.00
N/R (4)
1,260,440
   
Project, Series 2002A, 6.000%, 10/01/34 (Pre-refunded 10/01/12)
     
1,000
 
Cumberland County Municipal Authority, Pennsylvania, Retirement Community Revenue Bonds,
1/13 at 101.00
N/R (4)
1,127,430
   
Wesley Affiliated Services Inc., Series 2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13)
     
325
 
Delaware County Authority, Pennsylvania, College Revenue Refunding Bonds, Neumann College,
10/11 at 100.00
BBB (4)
337,113
   
Series 2001, 6.000%, 10/01/31 (Pre-refunded 10/01/11)
     
2,000
 
Grove City Area Hospital Authority, Mercer County, Pennsylvania, Revenue Bonds, County
3/12 at 100.00
BBB (4)
2,103,319
   
Guaranteed, Woodland Place Project, Series 2002, 5.400%, 3/01/31 (Pre-refunded 3/01/12) –
     
   
FGIC Insured
     
1,100
 
Luzerne County, Pennsylvania, General Obligation Bonds, Series 2002B, 0.000%, 11/15/21
11/12 at 57.98
N/R (4)
625,999
   
(Pre-refunded 11/15/12) – NPFG Insured
     
225
 
Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds,
6/11 at 103.00
B1 (4)
235,834
   
Reliant Energy Inc., Series 2003A, 6.750%, 12/01/36 (Pre-refunded 6/01/11) (Alternative
     
   
Minimum Tax)
     
2,445
 
Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, Series 2001, 5.500%, 7/15/33
7/11 at 101.00
Aa3 (4)
2,527,175
   
(Pre-refunded 7/15/11) – AMBAC Insured
     
315
 
Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Franklin Towne
1/17 at 100.00
N/R (4)
361,337
   
Charter High School, Series 2006A, 5.250%, 1/01/27 (Pre-refunded 1/01/17)
     
1,650
 
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General Ordinance, Fourth Series 1998,
8/13 at 100.00
AA+ (4)
1,825,395
   
5.250%, 8/01/20 (Pre-refunded 8/01/13) – AGM Insured
     
55
 
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth Series 1990B, 7.000%, 5/15/20 -
No Opt. Call
BBB (4)
66,924
   
NPFG Insured (ETM)
     
1,500
 
Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2002A, 5.500%,
2/12 at 100.00
AA+ (4)
1,575,615
   
2/01/31 (Pre-refunded 2/01/12) – AGM Insured
     
225
 
St. Mary Hospital Authority, Pennsylvania, Health System Revenue Bonds, Catholic Health East,
11/14 at 100.00
A1 (4)
257,573
   
Series 2004B, 5.375%, 11/15/34 (Pre-refunded 11/15/14)
     
11,995
 
Total U.S. Guaranteed
   
12,304,154
   
Utilities – 2.4% (1.6% of Total Investments)
     
145
 
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General Ordinance, Fifth Series 2004A-1,
9/14 at 100.00
AA+
141,695
   
5.000%, 9/01/26 – AGM Insured
     
1,240
 
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh Series, 2007, 5.000%, 10/01/37 –
10/17 at 100.00
BBB+
1,091,622
   
AMBAC Insured
     
1,385
 
Total Utilities
   
1,233,317
   
Water and Sewer – 10.0% (6.6% of Total Investments)
     
4,500
 
Bucks County Industrial Development Authority, Pennsylvania, Water Facility Revenue Bonds,
3/12 at 100.00
AA–
4,198,811
   
Pennsylvania Suburban Water Company, Series 2002, 5.550%, 9/01/32 – NPFG Insured (Alternative
     
   
Minimum Tax)
     
600
 
Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue Refunding Bonds, Series
7/14 at 100.00
AA+
558,930
   
2004, 5.000%, 7/15/22 – AGM Insured
     
400
 
Luzerne County Industrial Development Authority, Pennsylvania, Water Facility Revenue
12/19 at 100.00
A
381,108
   
Refunding Bonds, Pennsylvania-American Water Company, Series 2009, 5.500%, 12/01/39
     
5,500
 
Total Water and Sewer
   
5,138,849
$       83,425
 
Total Investments (cost $80,248,932) – 152.2%
   
78,359,240
   
Floating Rate Obligations – (8.6)%
   
(4,410,000)
   
MuniFund Term Preferred Shares, at Liquidation Value – (47.7)% (5)
   
(24,550,000)
   
Other Assets Less Liabilities – 4.1%
   
2,098,970
   
Net Assets Applicable to Common Shares – 100%
   
$      51,498,210
 
 
 

 
 
 
Fair Value Measurements
 
In determining the fair value of the Fund’s investments, various inputs are used. These inputs are summarized in the three broad levels listed below:
 
Level 1 – Quoted prices in active markets for identical securities.
 
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
 
Level 3 – Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of January 31, 2011:
 
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments:
                     
Municipal Bonds
$     $ 78,359,240     $     $ 78,359,240  
 
During the period ended January 31, 2011, the Fund recognized no significant transfers to/from Level 1, Level 2 or Level 3.
 
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 January 31, 2011, the cost of investments was $76,209,889.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 2011, were as follows:
     
Gross unrealized:
   
   Appreciation
$ 1,844,526  
   Depreciation
  (4,105,890 )
Net unrealized appreciation (depreciation) of investments
$ (2,261,364 )
 
     
(1)
 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common
   
shares unless otherwise noted.
(2)
 
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption.
   
There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities
   
may be subject to periodic principal paydowns.
(3)
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor 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. Such investments are normally considered to
   
be equivalent to AAA rated securities.
(5)
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 31.3%.
N/R
 
Not rated.
WI/DD
 
Purchased on a when-issued or delayed delivery basis.
(ETM)
 
Escrowed to maturity.
(UB)
 
Underlying bond of an inverse floating rate trust reflected as a financing transaction.
  
 
 

 
 
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 Pennsylvania Dividend Advantage Municipal Fund 2 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         April 1, 2011        
 
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         April 1, 2011        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         April 1, 2011