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:          1/31/13         
 
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, 2013  
     
 
 
 
Principal  
   
Optional Call  
   
Amount (000)  
 
Description (1)  
Provisions (2)  
Ratings (3)  
Value  
   
Education and Civic Organizations – 25.7% (17.5% of Total Investments)  
     
$    1,000  
 
Allegheny County Higher Education Building Authority, Pennsylvania, College Revenue Refunding  
No Opt. Call  
Baa3  
$     1,178,760  
   
Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28  
     
100  
 
Allegheny County Higher Education Building Authority, Pennsylvania, Revenue Bonds, Carnegie  
3/22 at 100.00  
AA–  
123,095  
   
Mellon University, Series 2012A, 5.000%, 3/01/24  
     
800  
 
Chester County Health and Education Facilities Authority, Pennsylvania, Revenue Bonds,  
10/15 at 102.00  
N/R  
830,776  
   
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  
BBB–  
758,635  
   
Revenue Bonds, Series 2007A, 6.375%, 12/15/37  
     
450  
 
Delaware County Authority, Pennsylvania, General Revenue Bonds, Eastern University, Series  
10/16 at 100.00  
N/R  
452,543  
   
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  
A+  
383,292  
165  
 
5.000%, 8/01/24 – AMBAC Insured  
8/16 at 100.00  
A+  
185,528  
180  
 
Erie Higher Education Building Authority, Pennsylvania, College Revenue Bonds, Gannon  
5/17 at 100.00  
N/R  
184,905  
   
University, Series 2007–GG3, 5.000%, 5/01/32 – RAAI Insured  
     
1,265  
 
Lycoming County Authority, Pennsylvania, Revenue Bonds, Pennsylvania College of Technology,  
5/22 at 100.00  
A
1,410,804  
   
Series 2012, 5.000%, 5/01/32  
     
200  
 
Montgomery County Higher Education and Health Authority, Pennsylvania, Revenue Bonds, Arcadia  
4/20 at 100.00  
BBB+  
220,392  
   
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  
83,218  
   
RAAI Insured  
     
1,050  
 
Pennsylvania Higher Educational Facilities Authority, General Revenue Bonds, State System of  
6/18 at 100.00  
AA  
1,209,611  
   
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–  
308,478  
   
2006, 4.750%, 5/01/31  
     
610  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Drexel University, Series  
11/17 at 100.00  
A
658,221  
   
2007A, 5.000%, 5/01/37 – NPFG Insured  
     
600  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Gwynedd Mercy College,  
5/22 at 100.00  
BBB–  
636,060  
   
Series 2012–KK1, 5.375%, 5/01/42  
     
800  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Temple University, First  
4/16 at 100.00  
Aa3  
898,904  
   
Series of 2006, 5.000%, 4/01/21 – NPFG Insured  
     
2,000  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Temple University, First  
4/22 at 100.00  
Aa3  
2,271,198  
   
Series of 2012, 5.000%, 4/01/42  
     
90  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Thomas Jefferson  
9/22 at 100.00  
A+  
101,103  
   
University, Series 2012, 5.000%, 3/01/42  
     
   
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, University of the  
     
   
Sciences in Philadelphia, Series 2012:  
     
140  
 
4.000%, 11/01/39  
11/22 at 100.00  
A3  
142,841  
265  
 
5.000%, 11/01/42  
11/22 at 100.00  
A3  
293,082  
530  
 
Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Leadership  
1/15 at 100.00  
N/R  
361,253  
   
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+  
136,962  
   
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–  
280,967  
   
Preparatory Charter School, Series 2006, 6.250%, 5/01/33  
     
600  
 
State Public School Building Authority, Pennsylvania, College Revenue Bonds, Northampton  
3/21 at 100.00  
A1  
699,216  
   
County Area Community College, Series 2011, 5.500%, 3/01/31  
     
1,000  
 
Union County, Higher Education Facilities Financing Authority, Pennsylvania, Revenue Bonds,  
4/13 at 100.00  
Aa2  
1,008,330  
   
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
55,606  
   
2010, 5.000%, 11/01/40  
     
13,710  
 
Total Education and Civic Organizations  
   
14,873,780  
   
Health Care – 26.6% (18.1% of Total Investments)  
     
625  
 
Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, Ohio Valley  
4/15 at 100.00  
Ba2  
599,388  
   
General Hospital, Series 2005A, 5.125%, 4/01/35  
     
435  
 
Allentown Area Hospital Authority, Pennsylvania, Revenue Bonds, Sacred Heart Hospital, Series  
No Opt. Call  
N/R  
443,796  
   
2005, 6.000%, 11/15/16  
     
650  
 
Beaver County Hospital Authority, Pennsylvania, Revenue Bonds, Heritage Valley Health System,  
5/21 at 100.00  
AA–  
748,612  
   
Inc., Series 2012, 5.000%, 5/15/26  
     
835  
 
Berks County Municipal Authority, Pennsylvania, Revenue Bonds, Reading Hospital and Medical  
5/22 at 100.00  
AA  
926,583  
   
Center Project, Series 2012A, 5.000%, 11/01/44  
     
595  
 
Central Bradford Progress Authority, Pennsylvania, Revenue Bonds, Guthrie Health, Series 2011,  
12/21 at 100.00  
AA–  
679,353  
   
5.375%, 12/01/41  
     
500  
 
Dauphin County General Authority, Pennsylvania, Health System Revenue Bonds, Pinnacle Health  
6/22 at 100.00  
A
538,800  
   
System Project, Series 2012A, 5.000%, 6/01/42  
     
300  
 
Erie County Hospital Authority, Pennsylvania, Hospital Revenue Bonds, Saint Vincent Health  
7/20 at 100.00  
Ba2  
332,184  
   
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  
Aa3  
101,718  
   
2007, 5.000%, 11/01/37 – CIFG Insured  
     
835  
 
Franklin County Industrial Development Authority, Pennsylvania, Revenue Bonds, Chambersburg  
7/20 at 100.00  
A+  
918,425  
   
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  
276,307  
   
County Medical Center Project, Series 2006, 5.900%, 7/01/40  
     
475  
 
Lancaster County Hospital Authority, Pennsylvania, Health System Revenue Bonds, Lancaster  
1/22 at 100.00  
AA–  
644,917  
   
General Hospital Project, Tender Option Bond 4234, 13.829%, 01/01/36 (IF)  
     
600  
 
Lebanon County Health Facilities Authority, Pennsylvania, Revenue Bonds, Good Samaritan  
11/13 at 100.00  
BB+  
606,276  
   
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–  
797,158  
   
Health Network, Series 2008A, 5.000%, 7/01/33 – AGM Insured  
     
330  
 
Lehigh County General Purpose Authority, Pennsylvania, Hospital Revenue Bonds, Lehigh Valley  
No Opt. Call  
A+  
335,831  
   
Health Network, Series 2012B, 4.000%, 7/01/43  
     
1,155  
 
Lehigh County General Purpose Authority, Pennsylvania, Revenue Bonds, Good Shepherd Group,  
11/17 at 100.00  
AA–  
1,273,064  
   
Series 2007, 5.000%, 11/01/37 – AGC Insured  
     
850  
 
Lehigh County General Purpose Authority, Pennsylvania, Revenue Bonds, The Good Shepherd Group,  
No Opt. Call  
A
855,772  
   
Series 2012, 4.000%, 11/01/32  
     
200  
 
Monroe County Hospital Authority, Pennsylvania, Hospital Revenue Bonds, Pocono Medical  
1/22 at 100.00  
A
215,726  
   
Center, Series 2012A, 5.000%, 1/01/41  
     
160  
 
Monroe County Hospital Authority, Pennsylvania, Hospital Revenue Bonds, Pocono Medical Center,  
1/17 at 100.00  
A
166,314  
   
Series 2007, 5.125%, 1/01/37  
     
350  
 
Montgomery County Higher Education and Health Authority, Pennsylvania, Hospital Revenue Bonds,  
6/22 at 100.00  
A
397,296  
   
Abington Memorial Hospital Obligated Group, Series 2012A, 5.000%, 6/01/31  
     
175  
 
Montgomery County Industrial Development Authority, Pennsylvania, FHA Insured Mortgage Revenue  
8/20 at 100.00  
AA  
202,157  
   
Bonds, New Regional Medical Center Project, Series 2010, 5.375%, 8/01/38  
     
925  
 
Montgomery County Industrial Development Authority, Pennsylvania, Health Facilities Revenue  
4/22 at 100.00  
AA  
1,027,213  
   
Bonds, Jefferson Health System, Series 2012A, 5.000%, 10/01/41  
     
620  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, University of  
8/22 at 100.00  
AA–  
697,271  
   
Pennsylvania Health System, Series 2012A, 5.000%, 8/15/42  
     
300  
 
Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Health System  
5/20 at 100.00  
AA  
329,220  
   
Revenue Bonds, Jefferson Health System, Series 2010B, 5.000%, 5/15/40  
     
350  
 
Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Hospital  
No Opt. Call  
AA  
471,478  
   
Revenue Bonds, Children’s Hospital of Philadelphia, Tender Option Bond Trust 3975,  
     
   
13.819%, 7/01/19 (IF)  
     
450  
 
Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Hospital  
7/22 at 100.00  
BBB–  
492,836  
   
Revenue Bonds, Temple University Health System Obligated Group, Series 2012A, 5.625%, 7/01/42  
     
260  
 
Southcentral Pennsylvania General Authority, Revenue Bonds, Hanover Hospital Inc., Series  
12/15 at 100.00  
BBB–  
267,075  
   
2005, 5.000%, 12/01/25 – RAAI Insured  
     
   
West Shore Area Authority, Cumberland County, Pennsylvania, Hospital Revenue Bonds, Holy  
     
   
Spirit Hospital of the Sisters of Christian Charity Project, Series 2011:  
     
100  
 
6.250%, 1/01/31  
1/21 at 100.00  
BBB+  
118,375  
335  
 
6.500%, 1/01/36  
1/21 at 100.00  
BBB+  
399,230  
   
West Shore Area Authority, Cumberland County, Pennsylvania, Hospital Revenue Bonds, Holy  
     
   
Spirit Hospital of the Sisters of Christian Charity, Series 2011B:  
     
220  
 
5.625%, 1/01/32  
1/22 at 100.00  
BBB+  
247,196  
250  
 
5.750%, 1/01/41  
1/22 at 100.00  
BBB+  
287,080  
13,985  
 
Total Health Care  
   
15,396,651  
   
Housing/Multifamily – 2.1% (1.4% of Total Investments)  
     
200  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Edinboro University  
7/20 at 100.00  
BBB–  
227,230  
   
Foundation Student Housing Project, Series 2010, 6.000%, 7/01/43  
     
50  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Shippensburg University  
No Opt. Call  
BBB–  
54,476  
   
Student Services, Inc. Student Housing Project at Shippensburg University of Pennsylvania,  
     
   
Series 2012, 5.000%, 10/01/44  
     
800  
 
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Slippery Rock University  
7/15 at 100.00  
BBB+  
817,672  
   
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  
122,078  
   
Bonds, PresbyHomes Germantown-Morrisville Project, Series 2005A, 5.625%, 7/01/35  
     
1,170  
 
Total Housing/Multifamily  
   
1,221,456  
   
Housing/Single Family – 7.8% (5.3% of Total Investments)  
     
245  
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 1995A,  
10/15 at 100.00  
AA+  
250,189  
   
4.900%, 10/01/37 (Alternative Minimum Tax)  
     
55  
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-93A,  
4/15 at 100.00  
AA+  
56,676  
   
4.950%, 10/01/26 (Alternative Minimum Tax)  
     
70  
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-93A,  
4/15 at 100.00  
AA+  
72,134  
   
4.950%, 10/01/26 (Alternative Minimum Tax) (UB)  
     
225  
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006-95A,  
10/15 at 100.00  
AA+  
229,765  
   
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+  
1,141,448  
   
4.600%, 10/01/27 (Alternative Minimum Tax) (UB)  
     
325  
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2007-98A,  
10/16 at 100.00  
AA+  
336,910  
   
4.850%, 10/01/31 (Alternative Minimum Tax) (UB)  
     
400  
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2011-112,  
10/20 at 100.00  
AA+  
437,768  
   
5.000%, 10/01/25  
     
   
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2012-114:  
     
565  
 
3.300%, 10/01/32  
No Opt. Call  
AA+  
558,525  
245  
 
3.650%, 10/01/37  
No Opt. Call  
AA+  
243,569  
375  
 
3.700%, 10/01/42  
No Opt. Call  
AA+  
373,845  
665  
 
Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Tender Option Bonds  
4/21 at 100.00  
AA+  
848,613  
   
Trust 3950, 12.652%, 4/01/27 (IF)  
     
4,270  
 
Total Housing/Single Family  
   
4,549,442  
   
Industrials – 0.7% (0.5% of Total Investments)  
     
255  
 
Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Refunding  
11/22 at 100.00  
A1  
287,431  
   
Bonds, Amtrak Project, Series 2012A, 5.000%, 11/01/27 (Alternative Minimum Tax)  
     
105  
 
Pennsylvania Economic Development Financing Authority, Solid Waste Disposal Revenue Bonds,  
No Opt Call  
BBB  
105,208  
   
Waste Management Inc., Project, Series 2009, 1.750%, 12/01/33 (Mandatory put 12/01/15)  
     
360  
 
Total Industrials  
   
392,639  
   
Long-Term Care – 8.0% (5.5% 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  
257,255  
400  
 
5.750%, 1/01/37  
1/17 at 100.00  
N/R  
406,552  
1,000  
 
Cumberland County Municipal Authority Revenue Bonds, Pennsylvania, Diakon Lutheran Social  
1/19 at 100.00  
BBB+  
1,123,430  
   
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  
BBB+  
310,656  
   
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  
321,801  
205  
 
Lancaster County Hospital Authority, Pennsylvania, Health Center Revenue Bonds, Masonic Homes  
11/16 at 100.00  
A
213,620  
   
Project, Series 2006, 5.000%, 11/01/36  
     
50  
 
Lancaster County Hospital Authority, Pennsylvania, Health Center Revenue Bonds, Saint Anne’s  
4/22 at 100.00  
BB+  
50,695  
   
Retirement Community, Inc. , Series 2012, 5.000%, 4/01/33  
     
185  
 
Lancaster County Hospital Authority, Pennsylvania, Revenue Bonds, Brethren Village Project,  
7/17 at 100.00  
N/R  
199,606  
   
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  
796,477  
   
Pleasant View Retirement Community, Series 2005A, 5.300%, 12/15/26  
     
200  
 
Montgomery Count Industrial Development Authority, Pennsylvania, Revenue Refunding Bonds,  
     
   
ACTS Retirement-Life Communities, Inc. , Series 2012, 5.000%, 11/15/26  
5/22 at 100.00  
A–  
225,398  
750  
 
Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Philadelphia  
7/13 at 100.00  
Baa1  
754,808  
   
Corporation for the Aging Project, Series 2001B, 5.250%, 7/01/23 – AMBAC Insured  
     
4,425  
 
Total Long-Term Care  
   
4,660,298  
   
Materials – 2.5% (1.7% of Total Investments)  
     
400  
 
Allegheny County Industrial Development Authority, Pennsylvania, Revenue Bonds, United States  
No Opt. Call  
BB  
419,964  
   
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  
299,592  
   
Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax)  
     
750  
 
Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds,  
5/13 at 100.00  
N/R  
746,678  
   
National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)  
     
1,430  
 
Total Materials  
   
1,466,234  
   
Tax Obligation/General – 25.1% (17.1% of Total Investments)  
     
1,135  
 
Allegheny County, Pennsylvania, General Obligation Bonds, Series C69-C70 of 2012, 5.000%, 12/01/37  
12/22 at 100.00  
A+  
1,268,045  
4,000  
 
Delaware Valley Regional Finance Authority, Pennsylvania, Local Government Revenue Bonds,  
No Opt. Call  
A+  
4,628,240  
   
Series 2002, 5.750%, 7/01/17 (UB)  
     
1,375  
 
Heidelberg, Lebanon County, Pennsylvania, Guaranteed Sewer Revenue Bonds, Series 2011,  
12/16 at 100.00  
A
1,456,716  
   
5.125%, 12/01/46  
     
1,000  
 
Luzerne County, Pennsylvania, General Obligation Bonds, Series 2008B, 5.000%, 12/15/27 – AGM Insured  
6/18 at 100.00  
AA–  
1,049,150  
1,000  
 
Pennsylvania State, General Obligation Bonds, Second Series 2010A, 5.000%, 5/01/14  
No Opt. Call  
AA+  
1,060,090  
375  
 
Philadelphia School District, Pennsylvania, General Obligation Bonds, Series 2007A, 5.000%,  
No Opt. Call  
AA  
462,570  
   
6/01/34 – FGIC Insured  
     
725  
 
Philadelphia, Pennsylvania, General Obligation Bonds, Refunding Series 2011, 6.500%, 8/01/41  
8/20 at 100.00  
A2  
884,761  
950  
 
Pine-Richland School District, Pennsylvania, General Obligation Bonds, School Improvement  
7/15 at 100.00  
AA–  
1,021,440  
   
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–  
256,626  
340  
 
Radnor Township School District, Delaware County, Pennsylvania, General Obligation Bonds,  
2/18 at 100.00  
Aa2  
337,477  
   
Series 2012, 3.000%, 2/15/34  
     
2,510  
 
Reading School District, Berks County, Pennsylvania, General Obligation Bonds, Series 2003B,  
No Opt. Call  
A
1,217,124  
   
0.000%, 1/15/32 – FGIC Insured  
     
135  
 
Scranton, Pennsylvania, General Obligation Bonds, Series 2012A, 8.500%, 9/01/22  
No Opt. Call  
N/R  
131,212  
135  
 
Scranton, Pennsylvania, General Obligation Bonds, Series 2012C, 7.250%, 9/01/22  
No Opt. Call  
N/R  
131,813  
600  
 
York County, Pennsylvania, General Obligation Bonds, Series 2006, 5.000%, 6/01/33 – NPFG Insured  
12/15 at 100.00  
AA  
658,590  
14,505  
 
Total Tax Obligation/General  
   
14,563,854  
   
Tax Obligation/Limited – 21.1% (14.4% of Total Investments)  
     
1,000  
 
Allegheny County Redevelopment Authority, Pennsylvania, TIF Revenue Bonds, Pittsburg Mills  
7/15 at 101.00  
N/R  
1,033,400  
   
Project, Series 2004, 5.600%, 7/01/23  
     
250  
 
Allentown Neighborhood Improvement Zone Development Authority, Pennsylvania, Tax Revenue  
5/22 at 100.00  
Baa2  
270,765  
   
Bonds, Series 2012A, 5.000%, 5/01/35  
     
1,500  
 
Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing  
10/19 at 100.00  
AA–  
1,689,793  
   
Program, Series 2009C, 5.125%, 10/01/36 – AGC Insured  
     
4,000  
 
Harrisburg Parking Authority, Pennsylvania, Guaranteed Revenue Refunding Bonds, Series 2001J,  
3/13 at 100.00  
Baa2  
3,809,438  
   
5.000%, 9/01/22 – NPFG Insured  
     
1,100  
 
Pennsylvania Economic Development Financing Authority, Unemployment Compensation Revenue  
No Opt. Call  
Aaa  
1,265,253  
   
Bonds, Series 2012A, 5.000%, 7/01/16  
     
610  
 
Pennsylvania Turnpike Commission, Oil Franchise Tax Revenue Bonds, Senior Lien Series 2003A,  
12/18 at 100.00  
AA  
686,634  
   
5.000%, 12/01/32 – NPFG Insured  
     
1,200  
 
Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, Series 2005A, 5.250%,  
No Opt. Call  
AA–  
1,453,848  
   
7/15/18 – AGM Insured  
     
660  
 
Pittsburgh and Allegheny County Sports and Exhibition Authority, Pennsylvania, Hotel Room  
8/22 at 100.00  
AA–  
768,709  
   
Excise Tax Revenue Bonds, Refunding Series 2012, 5.000%, 2/01/26 – AGC Insured  
     
800  
 
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N, 5.250%,  
No Opt. Call  
BBB  
808,480  
   
7/01/33 – NPFG Insured  
     
710  
 
Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A,  
No Opt. Call  
BBB+  
216,593  
   
0.000%, 7/01/32 – FGIC Insured  
     
240  
 
Washington County Redevelopment Authority, Pennsylvania, Tanger Outlet Victory Center Tax  
7/17 at 100.00  
N/R  
246,900  
   
Increment Bonds, Series 2006A, 5.450%, 7/01/35  
     
12,070  
 
Total Tax Obligation/Limited  
   
12,249,813  
   
Transportation – 10.7% (7.3% of Total Investments)  
     
720  
 
Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2010E,  
1/20 at 100.00  
A–  
805,270  
   
5.000%, 1/01/40  
     
840  
 
Delaware River Port Authority, Pennsylvania and New Jersey, Revenue Refunding Bonds, Port  
No Opt. Call  
BBB–  
979,633  
   
District Project, Series 2012, 5.000%, 1/01/23  
     
   
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  
861,175  
250  
 
5.000%, 12/01/38  
12/19 at 100.00  
AA  
278,468  
1,000  
 
Pennsylvania Turnpike Commission, Motor License Fund-Enhanced Turnpike Subordinate Special  
12/21 at 100.00  
AA  
1,124,810  
   
Revenue, Series 2011B, 5.000%, 12/01/41  
     
670  
 
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A, 5.000%, 12/01/24 –  
6/16 at 100.00  
Aa3  
749,904  
   
AMBAC Insured  
     
150  
 
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Subordinate Lien, Refunding Series  
12/19 at 100.00  
A–  
162,662  
   
2010B-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  
1,062,640  
   
6/01/33 – AGM Insured  
     
180  
 
Scranton Parking Authority, Pennsylvania, Guaranteed Parking Revenue Bonds, Series 2004,  
9/13 at 100.00  
BBB  
172,393  
   
5.000%, 9/15/33 – FGIC Insured  
     
5,685  
 
Total Transportation  
   
6,196,955  
   
U.S. Guaranteed – 5.8% (4.0% of Total Investments) (4)  
     
130  
 
Delaware River Joint Toll Bridge Commission, New Jersey and Pennsylvania, Revenue Bonds,  
7/13 at 100.00  
A2 (4)  
132,691  
   
Series 2003, 5.250%, 7/01/17 (Pre-refunded 7/01/13)  
     
315  
 
Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Franklin Towne  
1/17 at 100.00  
Baa1 (4)  
366,887  
   
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)  
1,691,380  
   
5.250%, 8/01/20 (Pre-refunded 8/01/13) – AGM Insured  
     
45  
 
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth Series 1990B, 7.000%, 5/15/20 –  
No Opt. Call  
N/R (4)  
55,137  
   
NPFG Insured (ETM)  
     
225  
 
St. Mary Hospital Authority, Pennsylvania, Health System Revenue Bonds, Catholic Health East,  
11/14 at 100.00  
A+ (4)  
244,825  
   
Series 2004B, 5.375%, 11/15/34 (Pre-refunded 11/15/14)  
     
850  
 
Trinity Area School District, Washington County, Pennsylvania, General Obligation Bonds,  
11/13 at 100.00  
A+ (4)  
882,096  
   
Series 2003, 5.250%, 11/01/20 (Pre-refunded 11/01/13) – FGIC Insured  
     
3,215  
 
Total U.S. Guaranteed  
   
3,373,016  
   
Utilities – 4.1% (2.8% of Total Investments)  
     
900  
 
Beaver County Industrial Development Authority, Pennsylvania, Pollution Control Revenue  
No Opt. Call  
BBB–  
916,551  
   
Refunding Bonds, FirstEnergy Nuclear Generation Project, Series 2008A, 2.700%, 4/01/35  
     
   
(Mandatory put 4/02/18)  
     
145  
 
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General Ordinance, Fifth Series 2004A-1,  
9/14 at 100.00  
AA–  
152,144  
   
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+  
1,296,271  
   
AMBAC Insured  
     
2,285  
 
Total Utilities  
   
2,364,966  
   
Water and Sewer – 4.9% (3.2% of Total Investments)  
     
245  
 
Bucks County Water and Sewer Authority, Pennsylvania, Revenue Bonds, Tender Option Bond Trust  
No Opt. Call  
AA–  
363,563  
   
4015, 13.378%, 12/01/19 (IF) (5)  
     
600  
 
Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue Refunding Bonds, Series  
7/14 at 100.00  
AA–  
608,052  
   
2004, 5.000%, 7/15/22 – AGM Insured  
     
400  
 
Luzerne County Industrial Development Authority, Pennsylvania, Water Facility Revenue  
12/19 at 100.00  
A
450,948  
   
Refunding Bonds, Pennsylvania-American Water Company, Series 2009, 5.500%, 12/01/39  
     
500  
 
Pennsylvania Economic Development Financing Authority, Water Facilities Revenue Bonds, Aqua  
10/19 at 100.00  
AA–  
557,915  
   
Pennsylvania, Inc. Project, Series 2009A, 5.000%, 10/01/39  
     
750  
 
Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 2011A, 5.000%, 1/01/41  
1/21 at 100.00  
A1  
843,456  
2,495  
 
Total Water and Sewer  
   
2,823,934  
$    79,605  
 
Total Long-Term Investments (cost $78,648,832) – 145.1%  
   
84,133,038  
 
   
Short-Term Investments – 1.7% (1.2% of Total Investments)  
     
           
   
Education and Civic Organizations – 1.7% (1.2% of Total Investments)  
     
$      1,000  
 
Pennsylvania State University, General Revenue Bonds, Variable Rate Demand Obligations,  
No Opt. Call  
A–1  
1,000,000  
   
Tender Option Bonds Trust 3704Z, 0.130% 3/01/18 (6)  
     
   
Total Short-Term Investments (cost $1,000,000)  
   
1,000,000  
   
Total Investments (cost $79,648,832) – 146.8%  
   
85,133,038  
   
Floating Rate Obligations – (6.9)%  
   
(4,020,000)  
   
MuniFund Term Preferred Shares, at Liquidation Value – (42.3)% (7)  
   
(24,550,000)  
   
Other Assets Less Liabilities – 2.4%  
   
1,424,439  
   
Net Assets Applicable to Common Shares – 100%  
   
$    57,987,477  
 
 
 

 
 
Fair Value Measurements
 
Fair value is defined as the price that the Fund 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 the 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  
  $     $ 84,133,038     $     $ 84,133,038  
Short-Term Investments:  
                               
   Municipal Bonds  
          1,000,000             1,000,000  
Total  
  $     $ 85,133,038     $     $ 85,133,038  
 
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.
 
As of January 31, 2013, the cost of investments was $75,983,995.
 
Gross unrealized appreciation and gross unrealized depreciation of investments as of January 31, 2013, were as follows:
 
       
Gross unrealized:  
     
   Appreciation  
  $ 6,039,543  
   Depreciation  
    (910,305 )  
Net unrealized appreciation (depreciation) of investments  
  $ 5,129,238  
 
     
(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 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)  
 
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for  
   
investments in inverse floating rate transactions.  
(6)  
 
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.  
(7)  
 
MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 28.8%.  
N/R  
 
Not rated.  
(ETM)  
 
Escrowed to maturity.  
(IF)  
 
Inverse floating rate investment.  
(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, 2013        
 
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, 2013        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date:          April 1, 2013        
 

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