UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05570
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Nuveen Premium Income Municipal Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
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A registrant is required to disclose the information specified by Form N-CSR,
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burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
SEMIANNUAL REPORT April 30, 2004
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC.
NPI
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC.
NPM
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC.
NPT
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
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Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND CAN
BE IMPORTANT BUILDING BLOCKS IN A WELL-BALANCED PORTFOLIO.
Dear
SHAREHOLDER
I am very pleased to report that for the period ended April 30, 2004, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
While tax-free income is always welcome, we know that many shareholders are
beginning to wonder whether interest rates will rise significantly, and whether
that possibility should cause them to adjust that portion of their investment
portfolios allocated to tax-free municipal bonds. We believe this is a question
you should consider carefully with the help of a trusted financial advisor. In
many cases, it may be more appropriate to focus on long-term goals and
objectives rather than shorter-term market movements, and this is where a
professional advisor may be able to help keep you focused on the larger
objectives of your investment program.
As you read through this report, please review the inside front cover and
consider receiving future Fund reports and other Fund information by e-mail and
the Internet. Not only will you be able to receive the information faster, but
this also may help lower your Fund's expenses. Sign up is quick and easy.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 15, 2004
1
Nuveen National Municipal Closed-End Exchange-Traded Funds
(NPI, NPM, NPT)
Portfolio Managers'
COMMENTS
Portfolio managers Dan Solender and Tom Spalding review the market environment,
key investment strategies and the six-month performance of the Funds. Dan, who
has 12 years of investment experience, including 8 years with Nuveen, assumed
portfolio management responsibility for NPI in August 2003 and NPM in October
2003, while Tom, a 27-year veteran of Nuveen, has managed NPT since January
2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2004?
During this reporting period, the greatest influences on the national economy
and the municipal market continued to be historically low interest rates,
growing evidence of economic improvement, and a generally modest rate of
inflation. Since its last credit easing in June 2003, the Federal Reserve has
maintained the fed funds rate at 1.0%, the lowest level since 1958. This
accommodative monetary policy helped to spur GDP (gross domestic product) growth
of 4.4% annualized in the first quarter of 2004, following a 3.1% rise in 2003.
Over the six-month reporting period, the year-over-year rate of inflation, as
measured by the core Consumer Price Index, averaged 1.3%.
This generally favorable environment helped many municipal bonds perform well
during most of the six-month period ended April 30, 2004. However, in early
April, a sharply improved jobs report, along with subsequent indications of
growing momentum in the U.S. economy, served as catalysts for increased
expectations of a Fed rate hike. This all contributed to heightened volatility
in the fixed-income markets. During April, the yield on the Bond Buyer 25
Revenue Bond Index, a widely-followed municipal bond index, rose almost 40 basis
points. The rise in the index yield, and the corresponding decline in bond
prices, effectively offset the yield declines and price gains of the previous
five months. As of April 30, 2004, the Bond Buyer 25 index was at approximately
the same level as it was at the beginning of the six-month reporting period.
In general, municipal supply remained strong over the past six months, although
the pace of issuance slowed. The first four months of 2004 saw $110 billion in
new municipal supply, down 9% from January-April 2003. Over the entire six-month
reporting period ended April 2004, the supply of new bonds decreased 13%
compared with the preceding six months.
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING
THE SIX MONTHS ENDED APRIL 30, 2004?
With the market continuing to anticipate an increase in interest rates, our
major focus during this reporting period remained on careful management of the
Funds' durations1 as a way to mitigate some of the interest rate risk inherent
in each Fund's portfolio. Interest rate risk is the risk that the value of a
Fund's portfolio will decline if market interest rates rise (since bond prices
move in the opposite direction of interest rates). The longer the duration of a
Fund's portfolio, the greater the Fund's interest rate risk. Our use of such a
duration management strategy is designed to position the Funds to potentially
produce more consistent returns over time.
With yields remaining low, the market did not offer many bonds that we thought
would perform better
1 Duration is a measure of a Fund's net asset value (NAV) volatility in
reaction to interest rate movements. Fund duration, also known as
leverage-adjusted duration, takes into account the leveraging process for a
Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund. References to duration
in this commentary are intended to indicate Fund duration unless otherwise
noted.
2
than those we already owned. However, when opportunities did arise, we focused
primarily on identifying attractive securities in the long- intermediate part of
the yield curve (i.e., bonds that mature in 15 to 25 years). In many cases,
bonds in this part of the curve offered yields similar to those of longer-term
bonds with less inherent interest rate risk and better total return potential.
In NPI and NPM, we sought to increase the Funds' allocations to BBB rated bonds
because they were relatively underweighted in lower-rated investment grade
bonds, and because we thought the total return and income potential of these
bonds represented attractive opportunities for the Funds.
We also looked for bonds that would maintain portfolio diversification in terms
of industry sector and geographic region. Based on the recent implementation of
economic reforms in California, we believed this state had demonstrated signs of
progress, and we took advantage of selected opportunities to add California
bonds to each Fund. On May 21, 2004, after the close of this reporting period,
Moody's upgraded California general obligation bonds to A3 with a positive
outlook from Baa1 with a stable outlook.
HOW DID THE FUNDS PERFORM?
Individual results for the Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 4/30/04
(6-month returns cumulative, all others annualized)
6-MONTH 1-YEAR 5-YEAR 10-YEAR
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NPI 1.85% 3.72% 5.16% 6.44%
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NPM 1.76% 2.84% 5.19% 7.36%
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NPT 2.01% 2.30% 3.53% 6.31%
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Lehman Brothers
Municipal Bond Index2 1.19% 2.68% 5.44% 6.46%
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Lipper General (Leveraged)
Municipal Debt
Funds average3 2.21% 4.97% 5.65% 6.90%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended April 30, 2004, the cumulative returns of all three
Funds outperformed the return of the Lehman Brothers index. None of the Funds
performed as well as the Lipper peer group average over this period.
A primary reason for the relatively strong performance of the Funds compared
with the unmanaged, unleveraged Lehman Brothers index was the Funds' use of
leverage. While leveraging can add volatility to the Funds' net asset values
(NAVs) and share prices, this strategy also can provide opportunities for
additional income and total return for common shareholders during periods of low
or short-term interest rates, as was the case during most of this reporting
period.
In addition to leverage, the Funds benefited from their holdings of healthcare
bonds during this six-month period. Healthcare ranked second among all sectors
in terms of return during the period,
2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
3 The Lipper General (Leveraged) Municipal Debt Funds category average is
calculated using the returns of all closed-end exchange-traded funds in
this category for each period as follows: 6 months - 65 funds; 1 year - 64
funds; 5 years - 49 funds; and 10 years - 46 funds. Fund and Lipper returns
assume reinvestment of dividends.
3
according to Lehman Brothers due to improvements in cost containment and
reimbursement practices as well as increased demand for higher-yielding bonds.
Among these Funds, holdings of healthcare bonds ranged from 11% of NPI's and
NPT's portfolios to 10% in NPM. NPT held approximately 1% (par value) of its
assets in bonds issued by the Michigan State Hospital Finance Authority for
Detroit Medical Center, the largest healthcare provider in southeastern
Michigan. As the center's financial situation stabilized following
implementation of cost-cutting initiatives and improved operating efficiencies,
the price of these bonds rebounded. NPM also had a very small position in these
bonds. Some of each Fund's healthcare holdings were positioned in the
lower-rated investment-grade categories. This helped the performance of each
Fund over this period, as BBB rated bonds tended to provide better returns than
higher-rated securities.
NPI also benefited from its holdings of bonds backed by United and American air
lines. These bonds performed well as the signs of an economic recovery
increased.
Other holdings making positive contributions to the Funds' cumulative returns
during this reporting period were bonds backed by revenues from the 1998 master
tobacco settlement agreement. On April 21, 2004, based on an adverse ruling in a
tobacco-related court case, Moody's downgraded all tobacco bonds that were not
enhanced or additionally secured. As a result, the majority of unenhanced
municipal-issued tobacco securities were rated Baa by Moody's, while insured
tobacco bonds continued to be rated Aaa. The other major credit rating
agencies--S&P and Fitch--did not change their tobacco bond ratings. As of April
30, 2004, we believed that the prices of tobacco bonds accurately reflected the
risks involved and that, when maintained at appropriate levels in the Funds,
these bonds would continue to represent good value.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels during this
reporting period, the leveraged structures of these three Funds continued to
support their dividend-paying capabilities. The extent of this benefit is tied
in part to the short-term rates the Funds pay their MuniPreferred(R)
shareholders. During periods of low short-term rates, the Funds generally pay
relatively lower dividends to their MuniPreferred shareholders, which can leave
more earnings to support common share dividends. During this reporting period,
continued low short-term rates enabled us to maintain the dividend levels of
these Funds.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's net asset value (NAV). Conversely, if a Fund has cumulatively paid
dividends in excess of its
4
earnings, the excess constitutes negative UNII that is likewise reflected in the
Fund's NAV. Each Fund will, over time, pay all of its net investment income as
dividends to shareholders. As of April 30, 2004, all of the Funds in this report
had positive UNII balances.
As of April 30, 2004, NPI was trading at a discount of -10.02% to its net asset
value, compared with an average discount of -4.45% for the reporting period. NPM
was trading at a -9.41% discount, compared with an average of -4.55%, and NPT
was at discount of -9.09%, compared with an average of -3.76% for the six
months.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
APRIL 30, 2004?
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong overall credit quality was an important requirement. As
of the end of April 2004, all three of these Funds continued to offer excellent
average credit quality, with allocations of bonds rated AAA/U.S. Guaranteed or
AA ranging from 76% in NPM to 79% in NPI and 80% in NPT.
As of April 30, 2004, potential call exposure for these Funds during 2004-2005
ranged from 14% in NPI and NPT and 16% in NPM. The number of actual bond calls
in all of the Funds will depend largely on market interest rates.
5
Nuveen Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of April 30, 2004
NPI
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 65%
AA 14%
A 10%
BBB 8%
NR 2%
BB or Lower 1%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.20
--------------------------------------------------
Common Share Net Asset Value $14.67
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Premium/(Discount) to NAV -10.02%
--------------------------------------------------
Market Yield 7.27%
--------------------------------------------------
Taxable-Equivalent Yield1 10.10%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $935,515
--------------------------------------------------
Average Effective Maturity (Years) 18.34
--------------------------------------------------
Leverage-Adjusted Duration 9.91
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/18/88)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -2.94% 1.85%
--------------------------------------------------
1-Year -3.12% 3.72%
--------------------------------------------------
5-Year 3.65% 5.16%
--------------------------------------------------
10-Year 5.31% 6.44%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 22%
--------------------------------------------------
Tax Obligation/General 19%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
U.S. Guaranteed 9%
--------------------------------------------------
Transportation 9%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.08
Jun 0.08
Jul 0.08
Aug 0.08
Sep 0.08
Oct 0.08
Nov 0.08
Dec 0.08
Jan 0.08
Feb 0.08
Mar 0.08
Apr 0.08
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 14.65
14.85
15.23
15.29
15.4
14.97
15.08
15.2
15.01
14.45
13.86
14.07
13.91
13.86
13.95
14.06
14.17
14.2
14.21
14.31
14.05
13.96
14.06
14.13
14.17
14.16
14.27
14.4
14.25
14.46
14.8
14.99
14.92
14.75
14.89
15.01
14.89
15.11
15.15
15.16
15.18
14.99
14.7
14.1
13.79
13.54
4/30/04 13.2
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
2 The Fund also paid shareholders a net ordinary income distribution in
December of 2003 of $0.0042 per share.
6
Nuveen Premium Income Municipal Fund 2, Inc.
Performance
OVERVIEW As of April 30, 2004
NPM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 65%
AA 11%
A 13%
BBB 8%
NR 3%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.47
--------------------------------------------------
Common Share Net Asset Value $14.87
--------------------------------------------------
Premium/(Discount) to NAV -9.41%
--------------------------------------------------
Market Yield 7.26%
--------------------------------------------------
Taxable-Equivalent Yield1 10.08%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $611,063
--------------------------------------------------
Average Effective Maturity (Years) 16.49
--------------------------------------------------
Leverage-Adjusted Duration 10.90
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/23/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -2.23% 1.76%
--------------------------------------------------
1-Year -2.21% 2.84%
--------------------------------------------------
5-Year 3.40% 5.19%
--------------------------------------------------
10-Year 7.42% 7.36%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 24%
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
U.S. Guaranteed 13%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.0815
Jun 0.0815
Jul 0.0815
Aug 0.0815
Sep 0.0815
Oct 0.0815
Nov 0.0815
Dec 0.0815
Jan 0.0815
Feb 0.0815
Mar 0.0815
Apr 0.0815
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 14.84
14.9
15.3
15.48
15.4
14.94
15.07
15.23
15.03
14.47
14.05
14.4
14.02
14.1
14.15
14.15
14.29
14.33
14.38
14.23
14.21
14.26
14.25
14.32
14.44
14.38
14.43
14.47
14.47
14.48
14.81
15.31
15.31
15.06
15.28
15.29
15.02
15.34
15.4
15.42
15.3
15.11
14.84
14.3
14.21
13.91
4/30/04 13.47
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
2 The Fund also paid shareholders a net ordinary income distribution in
December of 2003 of $0.0060 per share.
7
Nuveen Premium Income Municipal Fund 4, Inc.
Performance
OVERVIEW As of April 30, 2004
NPT
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 70%
AA 10%
A 8%
BBB 8%
NR 3%
BB or Lower 1%
FUND SNAPSHOT
--------------------------------------------------
Share Price $11.80
--------------------------------------------------
Common Share Net Asset Value $12.98
--------------------------------------------------
Premium/(Discount) to NAV -9.09%
--------------------------------------------------
Market Yield 7.22%
--------------------------------------------------
Taxable-Equivalent Yield1 10.03%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $561,082
--------------------------------------------------
Average Effective Maturity (Years) 17.42
--------------------------------------------------
Leverage-Adjusted Duration 10.89
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/19/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -2.47% 2.01%
--------------------------------------------------
1-Year -3.44% 2.30%
--------------------------------------------------
5-Year 2.44% 3.53%
--------------------------------------------------
10-Year 6.53% 6.31%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
Tax Obligation/General 15%
--------------------------------------------------
Utilities 13%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.071
Jun 0.071
Jul 0.071
Aug 0.071
Sep 0.071
Oct 0.071
Nov 0.071
Dec 0.071
Jan 0.071
Feb 0.071
Mar 0.071
Apr 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 13.12
13.29
13.63
13.9
13.82
13.48
13.53
13.52
13.31
12.97
12.45
12.65
12.23
12.39
12.33
12.52
12.51
12.55
12.6
12.58
12.53
12.58
12.52
12.52
12.6
12.65
12.83
12.82
12.68
12.72
13.11
13.3
13.43
13.24
13.3
13.34
13.31
13.39
13.45
13.58
13.59
13.46
13.3
12.63
12.29
12.05
4/30/04 11.8
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. For
investments that generate qualified dividend income, the taxable-equivalent
yield is lower.
2 The Fund also paid shareholders a net ordinary income distribution in
December of 2003 of $0.0165 per share.
8
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.0%
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 4,171,946
Bonds, Series 2000, 6.125%, 12/01/16
5,020 The DCH Health Care Authority, Alabama, Health Care Facilities 6/12 at 101.00 A+ 5,083,101
Revenue Bonds, Series 2002, 5.250%, 6/01/18
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ALASKA - 1.4%
Anchorage, Alaska, General Obligation Refunding Bonds,
Series 2003A:
2,000 5.250%, 9/01/17 - FGIC Insured 9/13 at 100.00 AAA 2,147,100
2,035 5.250%, 9/01/18 - FGIC Insured 9/13 at 100.00 AAA 2,173,380
10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 BBB 9,131,500
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.8%
5,000 Arizona School Facilities Board, Certificates of Participation, 9/13 at 100.00 AAA 5,332,100
Series 2003B, 5.250%, 9/01/18 - FGIC Insured
6,775 Pima County Industrial Development Authority, Arizona, Lease 7/04 at 102.00 AAA 7,124,590
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company Irvington Project, Series 1988A, 7.250%, 7/15/10 -
FSA Insured
4,130 University of Arizona, Certificates of Participation, Series 2002B, 6/12 at 100.00 AAA 4,325,142
5.125%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.2%
3,500 Arkansas Development Finance Authority, Drivers License 6/07 at 100.00 AAA 3,737,545
Revenue Bonds, Arkansas State Police Headquarters and
Wireless Data Equipment, Series 1997, 5.400%, 6/01/18 -
FGIC Insured
480 Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100.00 AAA 510,298
Series 2000, 5.650%, 12/01/25 - AMBAC Insured
1,000 Sebastian County Community Junior College District, Arkansas, 4/09 at 100.00 AAA 1,138,130
General Obligation Improvement Bonds, Series 1999,
5.950%, 4/01/29 (Pre-refunded to 4/01/09) - AMBAC Insured
5,245 University of Arkansas, Fayetteville, Athletic Facilities Revenue 9/09 at 100.00 Aaa 5,437,072
Bonds, Razorback Stadium, Series 1999, 5.050%, 9/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.2%
9,200 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 3,888,012
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/20 (WI, settling 5/06/04) - AMBAC Insured
California Health Facilities Financing Authority, Revenue Bonds,
Adventist Health System/West, Series 2003A:
3,700 5.000%, 3/01/28 3/13 at 100.00 A 3,562,619
7,000 5.000%, 3/01/33 3/13 at 100.00 A 6,676,040
5,500 California Health Facilities Financing Authority, Revenue Bonds, No Opt. Call BBB+ 5,530,195
Catholic Healthcare West, Series 2004I, 4.950%, 7/01/26
(DD, settling 5/03/04) (Mandatory put 7/01/14)
10,250 California State, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AAA 10,652,723
Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum
Tax) - FSA Insured
California, General Obligation Bonds, Series 2004:
5,000 5.000%, 4/01/10 No Opt. Call Baa1 5,328,900
2,000 5.125%, 2/01/25 2/14 at 100.00 Baa1 1,957,320
10,000 5.125%, 2/01/26 2/14 at 100.00 Baa1 9,755,900
4,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 4,424,680
Bonds, Series 2002A, 6.000%, 5/01/15
23,725 California State Public Works Board, Lease Revenue Refunding Bonds, 6/04 at 101.00 Aa2 24,070,911
Various University of California Projects, Series 1993A,
5.500%, 6/01/21
9
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call Baa2 $ 11,853,193
Department of Corrections, Series 1993E, 5.500%, 6/01/15
1,195 Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,692,001
Series 1983A, 10.750%, 2/01/16
4,750 North Orange County Community College District, California, 8/14 at 100.00 AAA 4,921,285
General Obligation Bonds, Series 2003B, 5.000%, 8/01/20 -
FGIC Insured
20,000 Pomona, California, GNMA/FNMA Collateralized Securities No Opt. Call AAA 26,059,000
Program, Single Family Mortgage Revenue Bonds,
Series 1990A, 7.600%, 5/01/23
San Bernardino Joint Powers Financing Authority, California,
Tax Allocation Refunding Bonds, Series 1995A:
6,675 5.750%, 10/01/15 - FSA Insured 10/05 at 102.00 AAA 7,138,045
10,000 5.750%, 10/01/25 - FSA Insured 10/05 at 102.00 AAA 10,609,100
San Joaquin Hills Transportation Corridor Agency, California,
Toll Road Refunding Revenue Bonds, Series 1997A:
10,000 0.000%, 1/15/31 - MBIA Insured No Opt. Call AAA 2,260,900
9,025 0.000%, 1/15/36 - MBIA Insured No Opt. Call AAA 1,521,074
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.3%
2,500 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AAA 2,581,900
Sewer Revenue Bonds, Series 2004, 5.000%, 12/01/21
(DD, settling 5/03/04) - FGIC Insured
1,270 Colorado Housing and Finance Authority, Single Family Program 4/10 at 105.00 AA 1,296,060
Senior Bonds, Series 2000B-2, 7.250%, 10/01/31
(Alternative Minimum Tax)
1,060 Colorado Housing and Finance Authority, Single Family Program 5/07 at 105.00 Aa2 1,084,624
Senior Bonds, Series 1997B-2, 7.000%, 5/01/26 (Alternative
Minimum Tax)
760 Colorado Housing and Finance Authority, Single Family Program 11/07 at 105.00 Aa2 771,628
Senior Bonds, Series 1997C-2, 6.875%, 11/01/28 (Alternative
Minimum Tax)
9,450 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 11,262,321
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
19,810 City and County of Denver, Colorado, Excise Tax Revenue 3/11 at 100.00 AAA 21,515,245
Bonds, Colorado Convention Center Project, Series 2001A,
5.500%, 9/01/18 - FSA Insured
8,315 Denver, Colorado, Special Facilities Airport Revenue Bonds, 10/04 at 100.00 N/R 6,464,913
United Air Lines, Inc. Project, Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax)#
185 El Paso County, Colorado, FNMA Mortgage-Backed Single No Opt. Call Aaa 191,953
Family Mortgage Revenue Refunding Bonds, Series 1992A-2,
8.750%, 6/01/11
4,000 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 4,067,920
Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
1,930 Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,178,874
5.500%, 12/15/16
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.6%
9,505 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 11,011,352
6.000%, 6/01/20 - MBIA Insured
11,810 District of Columbia Housing Finance Agency, GNMA 12/04 at 103.00 AAA 11,859,720
Collateralized Single Family Mortgage Revenue Bonds,
Series 1988E-4, 6.375%, 6/01/26 (Alternative Minimum Tax)
10,350 District of Columbia Revenue Bonds, Association of American 8/07 at 102.00 AAA 10,513,220
Medical Colleges Issue, Series 1997A, 5.375%, 2/15/27 -
AMBAC Insured
District of Columbia, University Revenue Bonds, Georgetown
University Issue, Series 2001A:
14,105 0.000%, 4/01/24 - MBIA Insured 4/11 at 47.66 AAA 4,464,374
7,625 0.000%, 4/01/25 - MBIA Insured 4/11 at 44.82 AAA 2,261,118
16,665 0.000%, 4/01/32 - MBIA Insured 4/11 at 29.23 AAA 3,187,015
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.5%
8,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AAA 8,472,480
Bonds, Tampa International Airport, Series 2003A,
5.375%, 10/01/16 (Alternative Minimum Tax) -
MBIA Insured
5,000 Orange County Health Facility Authority, Florida, Hospital 11/10 at 101.00 A 5,384,950
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30
10
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.6%
$ 6,025 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA $ 6,358,845
Certificates, Series 2003, 5.250%, 1/01/20 - FSA Insured
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call AAA 5,708,573
Tax Revenue Refunding Bonds, Series 1992P,
6.250%, 7/01/20 - AMBAC Insured
2,750 Savannah Housing Authority, Georgia, GNMA Collateralized 5/08 at 103.00 Aaa 2,913,790
Mortgage Revenue Refunding Bonds, Plantation Oak Project,
Series 2000, 6.350%, 11/20/39
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.1%
10,000 Hawaii, General Obligation Bonds, Series 2003DA, 9/13 at 100.00 AAA 10,515,300
5.250%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.5%
5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, 9/10 at 100.00 Aaa 5,104,050
Series 2000, 5.500%, 9/01/25 (Alternative Minimum
Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.5%
9,220 Chicago School Reform Board of Trustees of the Chicago 12/07 at 102.00 AAA 9,335,158
Board of Education, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
Chicago School Reform Board of Trustees of the Chicago Board of
Education, Illinois, Unlimited Tax General Obligation Bonds,
Dedicated Tax Revenues, Series 1998B-1:
8,890 0.000%, 12/01/16 - FGIC Insured No Opt. Call AAA 4,821,936
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AAA 4,240,400
9,900 0.000%, 12/01/24 - FGIC Insured No Opt. Call AAA 3,204,531
Chicago School Reform Board of Trustees of the Chicago Board of
Education, Illinois, Unlimited Tax General Obligation Bonds,
Dedicated Tax Revenues, Series 1999A:
15,000 0.000%, 12/01/21 - FGIC Insured No Opt. Call AAA 5,957,700
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AAA 3,468,400
9,000 Chicago, Illinois, Special Facility Revenue Bonds, O'Hare No Opt. Call N/R 4,038,750
International Airport, United Air Lines, Inc. Project,
Series 2001A, 6.375%, 11/01/35 (Alternative Minimum
Tax) (Mandatory put 5/01/13)#
4,530 Chicago, Illinois, General Airport Second Lien Revenue 7/04 at 102.00 AAA 4,607,554
Refunding Bonds, O'Hare International Airport, Series 1993C,
5.000%, 1/01/18 - MBIA Insured
545 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 3/06 at 105.00 Aaa 547,714
Mortgage Revenue Bonds, Series 1996A, 7.000%, 9/01/27
(Alternative Minimum Tax)
1,075 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 9/07 at 105.00 Aaa 1,091,405
Mortgage Revenue Bonds, Series 1997B, 6.950%, 9/01/28
(Alternative Minimum Tax)
8,740 Illinois Development Finance Authority, Pollution Control 8/04 at 102.00 AAA 8,938,835
Refunding Revenue Bonds, Illinois Power Company Project,
Series 1994A, 5.700%, 2/01/24 - MBIA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
1,000 5.250%, 11/15/22 (WI, settling 5/12/04) 5/14 at 100.00 A 993,530
3,000 5.250%, 11/15/23 (WI, settling 5/12/04) 5/14 at 100.00 A 2,962,050
1,500 Illinois Health Facilities Authority, Revenue Bonds, Highland 10/07 at 102.00 AAA 1,692,960
Park Hospital Project, Series 1997A, 5.750%, 10/01/26
(Pre-refunded to 10/01/07) - MBIA Insured
12,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman 8/07 at 101.00 AAA 12,935,380
Health Systems, Series 1997, 5.250%, 8/01/27 -
AMBAC Insured
10,040 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 5,923,198
Place Expansion Project Bonds, Series 1992A,
0.000%, 6/15/15 - FGIC Insured
9,200 Metropolitan Pier and Exposition Authority, Illinois, McCormick 12/09 at 101.00 AAA 9,662,944
Place Expansion Project Bonds, Series 1999A,
5.500%, 12/15/24 - FGIC Insured
3,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 3,809,070
Place Hospitality Facilities Revenue Bonds, Series 1996A,
7.000%, 7/01/26
4,925 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 5,615,436
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/06 - AMBAC Insured
785 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 895,049
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992B, 9.000%, 6/01/06 - AMBAC Insured
3,000 Upper Illinois River Valley Development Authority, Health Care 12/11 at 101.00 BBB+ 3,129,270
Facilities Revenue Bonds, Series 2001, Morris Hospital,
6.625%, 12/01/31
11
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.7%
$ 5,000 Center Grove 2000 Building Corporation, Indiana, First Mortgage 7/11 at 100.00 AAA $ 5,206,150
Bonds, Series 2001, 5.500%, 1/15/26 - AMBAC Insured
4,565 Indiana State Office Building Commission, Correctional 7/05 at 102.00 AAA 4,871,357
Facilities Program Revenue Bonds, Series 1995A,
5.500%, 7/01/20 (Pre-refunded to 7/01/05) -
AMBAC Insured
7,070 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 7,518,521
Bonds, Series 2003A, 5.250%, 6/01/18 - FSA Insured
8,000 Steuben County Middle School Building Corporation, Indiana, 7/05 at 102.00 AAA 8,630,720
First Mortgage Bonds, Series 1995, 6.375%, 7/15/16
(Pre-refunded to 7/15/05) - MBIA Insured
7,965 Wawasee Community School Corporation, Indiana, New 1/12 at 101.00 AA- 8,606,581
Elementary and Remodeling Building Corporation, First
Mortgage Bonds, Series 2000, 5.750%, 1/15/20
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.4%
City of Des Moines, Iowa, General Obligation Bonds,
Series 2000D:
1,215 5.750%, 6/01/17 - MBIA Insured 6/08 at 100.00 AAA 1,335,151
1,410 5.800%, 6/01/18 - MBIA Insured 6/08 at 100.00 AAA 1,553,242
3,000 Iowa Financing Authority, Private College Revenue Refunding 12/05 at 102.00 AAA 3,199,770
Bonds, Drake University Project, Series 1996,
5.400%, 12/01/16 - MBIA Insured
4,785 Iowa Finance Authority, Industrial Revenue Refunding Bonds, No Opt. Call AAA 6,577,652
Urbandale Hotel Corporation Project, Remarketed,
Series 1989A, 8.500%, 8/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.9%
8,190 Sedgwick and Shawnee Counties, Kansas, GNMA 6/08 at 105.00 Aaa 8,785,986
Mortgage-Backed Securities Program Single Family
Revenue Bonds, Series 1998A-1, 6.500%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.1%
2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,084,915
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/19 - AMBAC Insured
1,080 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa 1,124,842
Revenue Bonds, Series 2000A, 7.450%, 12/01/31
(Alternative Minimum Tax)
11,860 Louisiana Stadium and Exposition District Hotel Occupancy 7/05 at 102.00 AAA 12,775,829
Tax Bonds, Series 1995B, 6.375%, 7/01/25 (Pre-refunded
to 7/01/05) - FGIC Insured
7,660 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 9,700,164
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
2,500 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 2,077,050
Settlement Asset-Backed Bonds, Series 2001B,
5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4%
3,600 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 3,765,996
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.6%
10,000 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 10,130,600
Bonds, Series 2000A, 5.250%, 7/01/30
13,000 Massachusetts, General Obligation Bonds, Consolidated 6/10 at 100.00 AAA 14,944,540
Loan, Series 2000B, 6.000%, 6/01/16 (Pre-refunded
to 6/01/10)
4,000 Massachusetts, General Obligation Bonds, Series 2003D, 10/13 at 100.00 Aa2 4,403,920
5.250%, 10/01/22 (Pre-refunded to 10/01/13)
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
11,400 5.250%, 1/01/21 (Pre-refunded to 1/01/13) - FSA Insured 1/13 at 100.00 AAA 12,473,994
1,850 5.250%, 1/01/21 (Pre-refunded to 1/01/13) - FSA Insured 1/13 at 100.00 AAA 2,024,289
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,758,697
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
14,750 Massachusetts Industrial Finance Agency, General Obligation 7/07 at 102.00 AAA 15,000,455
Bonds, Suffolk University, Series 1997, 5.250%, 7/01/27 -
AMBAC Insured
8,750 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 9,047,413
Mortgage Revenue Bonds, Series 2001A, 5.850%, 7/01/35
(Alternative Minimum Tax) - AMBAC Insured
12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.4%
Detroit, Michigan, General Obligation Bonds, Series 2003A:
$ 3,565 5.250%, 4/01/22 - XLCA Insured 4/13 at 100.00 AAA $ 3,694,552
1,275 5.250%, 4/01/23 - XLCA Insured 4/13 at 100.00 AAA 1,315,711
Detroit, Michigan, Sewerage Disposal System Revenue Bonds,
Series 1995A:
2,700 5.000%, 7/01/25 (Pre-refunded to 7/01/05) - MBIA Insured 7/05 at 100.00 AAA 2,812,455
7,850 5.000%, 7/01/25 - MBIA Insured 7/05 at 100.00 AAA 7,855,652
10,510 Hudsonville Public Schools, Counties of Ottawa and Allegan, 5/08 at 100.00 AAA 10,829,819
Michigan, School Building and Site and Refunding Bonds,
General Obligation Unlimited Tax, Series 1997,
5.150%, 5/01/22 - FGIC Insured
10,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 10,123,800
Facilities Program, Series 2003-II, 5.000%, 10/15/23 -
MBIA Insured
6,600 Michigan Housing Development Authority, Limited Obligation 7/07 at 102.00 AAA 6,733,716
Multifamily Mortgage Revenue Refunding Bonds, Forest Hills
Regency Square Project, Series 1999A, 5.750%, 7/01/29
6,390 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/12 at 100.00 AAA 6,738,255
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.0%
2,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- 2,044,140
Facilities Revenue Bonds, Benedictine Health System
St. Mary's, Series 2004, 5.375%, 2/15/22
Eden Prairie, Minnesota, GNMA Collateralized Multifamily Housing
Revenue Bonds, Rolling Hills Project, Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105.00 A1 1,074,810
2,000 6.200%, 2/20/43 8/11 at 105.00 A1 2,146,960
470 Minneapolis/St. Paul Housing Finance Board, Minnesota, 11/04 at 102.00 AAA 474,239
FNMA/GNMA Mortgage-Backed Securities Program, Single
Family Mortgage Revenue Bonds, Series 1994,
7.500%, 11/01/27 (Alternative Minimum Tax)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101.00 AAA 3,045,030
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/22 - AMBAC Insured
5,000 Minnesota Agricultural and Economic Development Board, 11/07 at 102.00 AAA 5,310,850
Health Care System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 1997A, 5.750%, 11/15/26 -
MBIA Insured
19,460 The Housing and Redevelopment Authority of the City 11/15 at 103.00 AAA 23,701,891
of Saint Paul, Minnesota, Sales Tax Revenue Refunding Bonds,
Civic Center Project, Series 1996, 7.100%, 11/01/23 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.2%
1,980 Missouri Housing Development Commission, GNMA/FNMA 3/07 at 105.00 AAA 2,012,512
Single Family Mortgage Revenue Bonds, Homeownership
Loan Program, Series 1996C, 7.450%, 9/01/27 (Alternative
Minimum Tax)
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
3,000 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 3,110,820
4,150 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 4,215,653
7,250 Missouri Housing Development Commission, Single Family 3/09 at 103.00 AAA 7,660,133
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1999B-1, 6.700%, 9/01/30 (Alternative Minimum Tax)
11,120 Francis Howell School District, Saint Charles County, No Opt. Call AAA 12,545,695
Missouri, General Obligation Refunding Bonds, Series 1994A,
7.800%, 3/01/08 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.1%
8,500 Omaha, Nebraska, General Obligation Bonds, Convention No Opt. Call AAA 10,263,580
Center Project, Series 2000A, 6.500%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 9.2%
15,000 Clark County, Nevada, General Obligation Bond Bank Southern 6/11 at 100.00 AAA 15,297,000
Nevada Water Authority Loan, Series 2001, 5.250%, 6/01/26 -
FGIC Insured
14,810 Clark County School District, Nevada, General Obligation Bonds, 12/11 at 100.00 AAA 16,074,478
Series 2001F, 5.500%, 6/15/18 - FSA Insured
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,299,326
Bonds, Series 2002C, 5.500%, 6/15/18 - MBIA Insured
13
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier Series 2000:
$ 6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call AAA $ 1,590,573
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 12,248,520
29,410 State of Nevada, Colorado River Commission, General 7/04 at 101.00 AA 29,832,916
Obligation Limited Tax Bonds, Series 1994, 5.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.6%
4,660 New Hampshire Housing Finance Authority, Single Family 7/04 at 101.00 Aa2 4,710,235
Mortgage Revenue Bonds, Series 1993B, 6.050%, 7/01/25
1,210 New Hampshire Housing Finance Agency, Single Family 7/06 at 102.00 Aa2 1,244,437
Mortgage Acquisition Revenue Bonds, Series 1996B,
6.400%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.5%
10,150 Delaware River Port Authority, State of New Jersey and 1/10 at 100.00 AAA 10,730,174
Pennsylvania, Port District Project Bonds, Series 1999B,
5.625%, 1/01/26 - FSA Insured
10,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 11,064,900
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25 -
FGIC Insured
13,230 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/07 at 101.50 AAA 13,663,679
Revenue Bonds, Series 1997U, 5.850%, 4/01/29 (Alternative
Minimum Tax) - MBIA Insured
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
5,000 5.500%, 6/15/19 6/13 at 100.00 AA- 5,423,100
5,410 5.500%, 6/15/20 6/13 at 100.00 AA- 5,855,135
9,250 5.500%, 6/15/23 6/13 at 100.00 AA- 9,917,573
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 2000A:
3,915 6.000%, 1/01/14 No Opt. Call AAA 4,546,059
7,585 6.000%, 1/01/14 - MBIA Insured No Opt. Call AAA 8,761,509
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.9%
1,690 Mew Mexico Mortgage Finance Authority, Single Family 3/10 at 102.50 AAA 1,846,528
Mortgage Program Bonds, Series 2000D-2, 6.850%, 9/01/31
(Alternative Minimum Tax)
5,585 Santa Fe County, New Mexico, Correctional System, Gross No Opt. Call AAA 6,441,739
Receipts Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.8%
13,000 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 12,635,740
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.250%, 7/15/40
14,580 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 A- 14,688,767
Revenue Bonds, Series 1998A, 5.250%, 12/01/26
2,000 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 2,008,280
Pass-Through Bonds, Series 2000, 6.500%, 6/01/35
New York, New York, General Obligation Bonds, Fiscal Series 1997G:
950 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 1,073,823
5,050 6.000%, 10/15/26 10/07 at 101.00 A 5,389,259
8,270 New York City, New York, General Obligation Bonds, Fiscal No Opt. Call A 8,657,946
Series 2004G, 5.000%, 8/01/14
5,000 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 A 5,283,350
Series 2003J, 5.500%, 6/01/23
New York City, New York, General Obligation Bonds, Fiscal
Series 1996G:
755 5.750%, 2/01/07 (Pre-refunded to 2/01/06) 2/06 at 101.50 A*** 817,016
9,245 5.750%, 2/01/07 2/06 at 101.50 A 9,872,643
12,500 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 A 12,842,000
Series 2003D, 5.250%, 10/15/22
New York City Municipal Water Finance Authority, New York, Water
and Sewer System Revenue Bonds, Fiscal Series 1996B:
5,630 5.750%, 6/15/26 (Pre-refunded to 6/15/06) - MBIA Insured 6/06 at 101.00 AAA 6,136,475
10,370 5.750%, 6/15/26 - MBIA Insured 6/06 at 101.00 AAA 11,025,903
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 2,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/06 at 102.00 AAA $ 2,087,640
Department of Health, Series 1996, 5.500%, 7/01/25 -
MBIA Insured
3,530 New York State Medical Care Facilities Finance Agency, 8/04 at 102.00 AAA 3,609,319
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, Series 1993B, 5.500%, 2/15/22
14,000 New York State Urban Development Corporation, Service No Opt. Call AA- 15,398,460
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
7,400 New York Tobacco Settlement Financing Corporation, Tobacco 6/10 at 100.00 AA- 7,856,580
Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
9,515 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 9,710,343
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.0%
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
5,785 5.250%, 6/01/22 6/13 at 100.00 AA+ 6,002,690
3,475 5.250%, 6/01/23 6/13 at 100.00 AA+ 3,590,196
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.2%
9,650 Dickinson, North Dakota, Health Care Facilities Revenue 2/10 at 102.00 AA 11,536,286
Bonds, BHS Long Term Care, Inc., Series 1990,
7.625%, 2/15/20 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.8%
4,265 Franklin County, Ohio, Hospital Revenue and Improvement 5/11 at 101.00 Aaa 4,391,457
Bonds, Children's Hospital Project, Series 2001,
5.500%, 5/01/28 - AMBAC Insured
2,720 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 2,863,398
5.250%, 6/01/20
2,000 County of Richland, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 2,146,180
Bonds, MedCentral Health System Obligated Group,
Series 2000A, 6.125%, 11/15/16
7,000 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 A3 7,348,880
Improvement Bonds, Trinity Health System, Series 2000,
6.500%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.1%
15,650 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call AAA 16,812,482
Government Revenue Bonds, Series 1998A, 5.500%, 8/01/28 -
AMBAC Insured
Lancaster Higher Education Authority, Pennsylvania, Revenue
Bonds, Franklin and Marshall College, Series 2003C:
1,340 5.250%, 4/15/15 4/13 at 100.00 A+ 1,426,108
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,062,194
8,405 Philadelphia Redevelopment Authority, Pennsylvania, 4/08 at 103.00 N/R 7,469,692
Multifamily Housing Mortgage Revenue Bonds, Cricket
Court Apartments, Series 1998A, 6.200%, 4/01/25
(Alternative Minimum Tax)
5,295 Philadelphia School District, Pennsylvania, General Obligation 9/05 at 101.00 AAA 5,519,402
Bonds, Series 1995B, 5.500%, 9/01/25 - AMBAC Insured
14,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 14,516,320
Revenue Bonds, Philadelphia School District Project,
Series 2003, 5.250%, 6/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.6%
5,770 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 5,929,598
Series 1995X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.3%
1,380 Providence Redevelopment Agency, Rhode Island, Revenue 4/10 at 101.00 Aaa 1,520,525
Bonds, Public Safety and Municipal Building Projects,
Series 1999A, 5.625%, 4/01/15 - AMBAC Insured
10,000 Rhode Island Housing and Mortgage Finance Corporation, 10/09 at 100.00 AA+ 10,206,900
Homeownership Opportunity Bonds, Series 35A,
5.800%, 10/01/32 (Alternative Minimum Tax)
15
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.0%
$ 8,610 Dorchester County School District No. 2, South Carolina, 12/14 at 100.00 A $ 8,640,824
Installment Purchase Revenue Bonds, Series 2004,
5.250%, 12/01/24
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
5,090 5.250%, 12/01/18 12/13 at 100.00 AA- 5,289,884
3,595 5.250%, 12/01/20 12/13 at 100.00 AA- 3,705,438
1,865 5.250%, 12/01/21 12/13 at 100.00 AA- 1,913,658
15,000 South Carolina JOBS Economic Development Authority, Hospital 8/13 at 100.00 BBB 15,548,400
Revenue Bonds, Palmetto Health Alliance, Series 2003C,
6.375%, 8/01/34
12,500 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 11,401,500
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.2%
2,045 South Dakota State University, Housing and Auxiliary Facilities 4/14 at 100.00 AAA 2,108,661
Revenue Bonds, Series 2004, 5.000%, 4/01/20 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
4,000 Tennessee Housing Development Agency, Homeownership 7/13 at 100.00 AA 4,189,080
Program Revenue Bonds, Series 2004, 5.000%, 7/01/34
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.5%
10,205 Alliance Airport Authority, Inc., Texas, Special Facilities 6/04 at 100.00 CCC 7,391,992
Revenue Bonds, American Airlines, Inc. Project, Series 1990,
7.500%, 12/01/29 (Alternative Minimum Tax)
3,289 Austin Housing Finance Corporation, Texas, Multifamily 12/10 at 105.00 Aaa 3,672,793
Housing Revenue Bonds, GNMA Collateralized Mortgage
Loan, Fairway Village Project, Series 2000A, 7.375%, 6/20/35
(Alternative Minimum Tax)
3,000 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 10/13 at 101.00 BBB 3,177,270
TXU Energy Company LLC, Series 2003C, 6.750%, 10/01/38
(Alternative Minimum Tax)
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
4,850 6.000%, 2/15/16 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA 5,558,343
175 6.000%, 2/15/16 2/10 at 100.00 AAA 196,907
865 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA 9/10 at 105.00 AAA 929,598
Single Family Mortgage Revenue Bonds, Series 2000A,
6.700%, 9/01/33 (Alternative Minimum Tax)
20,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 20,169,200
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
MBIA Insured
15,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102.00 AAA 15,478,200
Bonds, Series 1994, 5.300%, 8/15/13 (Pre-refunded to
8/15/04) - AMBAC Insured
Harris County Hospital District, Texas, Revenue Refunding
Bonds, Series 1990:
3,460 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 3,857,104
5,940 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 6,823,456
19,125 Harris County, Texas, Hospital District, Refunding Revenue 8/10 at 100.00 AAA 21,300,278
Bonds, Series 2000, 6.000%, 2/15/15 - MBIA Insured
1,343 Heart of Texas Housing Finance Corporation, GNMA Collateralized 9/10 at 105.00 Aaa 1,444,679
Mortgage Loan Multifamily Housing Revenue Bonds, Parkside
Village Project, Series 2000A, 7.400%, 9/20/35 (Alternative
Minimum Tax)
6,000 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,522,120
Series 2001B, 5.500%, 3/01/15 - FSA Insured
9,250 Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 9,586,053
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
3,400 Lower Colorado River Authority, Texas, Improvement and 5/13 at 100.00 AAA 3,499,756
Revenue Refunding Bonds, Series 2003, 5.250%, 5/15/24 -
AMBAC Insured
1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 1,556,968
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/23 - AMBAC Insured
4,000 Tarrant County Health Facilities Development Corporation, 11/10 at 101.00 A 4,330,080
Texas, Hospital Revenue Bonds, Adventist Health System/Sunbelt
Obligated Group, Series 2000, 6.700%, 11/15/30
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 12,020 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa $ 13,994,165
Mortgage Revenue Bonds, GNMA Collateralized Mortgage
Loan - Eastview Nursing Home, Ebony Lake Nursing Center,
Ft. Stockton Nursing Center, Lynnhaven Nursing Center and
Mission Oaks Manor, Series 2000A-1, 7.625%, 12/20/32
5,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 5,328,800
Refunding and Improvement Bonds, Series 1999,
5.250%, 3/01/17 - FSA Insured
10,000 Board of Regents of the Texas A&M University, Financing 5/09 at 100.00 AAA 10,432,500
System Revenue Bonds, Series 1999, 5.550%, 5/15/29 -
MBIA Insured
25,000 Texas Turnpike Authority, Frist Tier Revenue Bonds, Central No Opt. Call AAA 8,271,000
Texas Turnpike System, Series 2002A, 0.000%, 8/15/24 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3%
2,775 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 2,839,408
Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.4%
3,620 Vermont Housing Finance Agency, Single Family Housing 6/07 at 101.50 AAA 3,723,315
Bonds, Series 1997-9, 5.900%, 5/01/29 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
4,900 City of Virginia Beach Development Authority, Virginia, 10/14 at 100.00 N/R 4,569,054
Multifamily Residential Rental Housing Revenue Bonds,
Mayfair I & Mayfair II Apartments Project, Series 1999,
7.500%, 10/01/39 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.3%
Public Utility District No. 1 of Chelan County, Washington,
Chelan Hydro Consolidated System Revenue Bonds,
Series 1997A:
11,820 5.650%, 7/01/32 (Alternative Minimum Tax) (Optional 7/07 at 102.00 AA 12,018,931
put 7/01/09) (Mandatory put 7/01/24)
8,000 5.650%, 7/01/32 (Alternative Minimum Tax) (Optional 7/07 at 102.00 AA 8,106,480
put 7/01/09) (Mandatory put 7/01/27)
5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 5,114,300
Bonds, Series 2001, 5.250%, 12/01/26 - MBIA Insured
4,750 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,825,050
Bonds, Swedish Health Services, Series 1998,
5.125%, 11/15/22 - AMBAC Insured
14,500 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 15,203,395
Bonds, Nuclear Project 2, Series 1998A, 5.000%, 7/01/12
Washington Public Power Supply System, Nuclear Project 3 Revenue
Refunding Bonds, Series 1997A:
5,220 5.250%, 7/01/14 - FSA Insured 7/07 at 102.00 AAA 5,579,188
9,350 5.250%, 7/01/15 7/07 at 102.00 Aaa 9,777,108
7,775 Washington Public Power Supply System, Nuclear Project 3 7/08 at 102.00 Aaa 8,036,707
Revenue Refunding Bonds, Series 1998A, 5.125%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.5%
Milwaukee Redevelopment Authority, Wisconsin, Lease
Revenue Bonds, Public Schools, Series 2003A:
1,000 5.125%, 8/01/22 - AMBAC Insured 8/13 at 100.00 AAA 1,026,760
1,345 5.125%, 8/01/23 8/13 at 100.00 AAA 1,374,926
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,051,250
Bonds, Agnesian Healthcare, Inc., Series 2001,
6.000%, 7/01/21
2,175 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 100.00 BBB 2,229,501
Bonds, Carroll College, Inc., Series 2001, 6.125%, 10/01/16
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,012,260
Bonds, Wheaton Franciscan Services, Inc., Series 2003A,
5.250%, 8/15/25
9,000 Wisconsin Health and Educational Facilities Authority, Revenue 4/13 at 100.00 BBB+ 9,454,320
Bonds, Aurora Healthcare, Inc., Series 2003, 6.400%, 4/15/33
17
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 6,025 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 A- $ 6,253,282
Bonds, Franciscan Sisters of Christian Charity HealthCare
Ministry, Series 2003A, 6.000%, 9/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 1,469,607 Total Long-Term Investments (cost $1,384,905,384) - 152.8% 1,429,061,079
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.3% 31,453,793
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.1)% (525,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 935,514,872
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
# On December 9, 2002, UALCorporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
See accompanying notes to financial statements.
18
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.4%
$ 8,255 University of South Alabama, Tuition Revenue Bonds, 3/14 at 100.00 Aaa $ 8,334,661
Series 2004, 5.000%, 3/15/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.0%
2,850 The Industrial Development Authority of the County of 1/07 at 102.00 AAA 3,268,836
Maricopa, Arizona, Multifamily Housing Revenue Bonds,
Place Five and the Greenery Apartments Projects,
Series 1996A, 6.625%, 1/01/27
2,945 Pima County Industrial Development Authority, Arizona, 7/04 at 102.00 AAA 3,096,962
Lease Obligation Revenue Refunding Bonds, Tucson Electric
Power Company Irvington Project, Series 1988A,
7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.9%
California Educational Facilities Authority, Revenue Refunding
Bonds, Loyola Marymount University, Series 2001A:
3,255 0.000%, 10/01/23 - MBIA Insured No Opt. Call Aaa 1,153,279
5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call Aaa 1,958,778
7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call Aaa 2,359,812
7,710 California State, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AAA 8,012,926
Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum
Tax) - FSA Insured
California, General Obligation Bonds, Series 2004:
5,000 5.000%, 4/01/10 No Opt. Call Baa1 5,328,900
8,000 5.125%, 2/01/25 2/14 at 100.00 Baa1 7,829,280
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 5,916,405
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
4,000 6.000%, 5/01/15 5/12 at 101.00 A3 4,424,680
5,500 5.375%, 5/01/21 5/12 at 101.00 A3 5,672,205
7,150 California State Public Works Board, Lease Revenue Bonds, 10/04 at 102.00 A3*** 7,447,440
California State University System Projects, Series 1994A,
6.375%, 10/01/19 (Pre-refunded to 10/01/04)
17,500 California State Public Works Board, Lease Revenue Bonds, 11/04 at 102.00 Aaa 18,347,700
Department of Corrections, Soledad II State Prison,
Series 1994A, 6.875%, 11/01/14 (Pre-refunded to 11/01/04)
30,000 Foothill-Eastern Transportation Corridor Agency, California, No Opt. Call AAA 12,968,400
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21
San Francisco Redevelopment Agency, California, Hotel Tax
Revenue Bonds, Series 1994:
2,390 6.750%, 7/01/15 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA 2,460,290
5,905 6.750%, 7/01/25 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA 6,078,666
960 6.750%, 7/01/25 - FSA Insured 7/04 at 102.00 AAA 986,794
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.8%
1,700 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AAA 1,742,789
Sewer Revenue Bonds, Series 2004, 5.000%, 12/01/22
(DD, settling 5/03/04) - FGIC Insured
875 Colorado Housing and Finance Authority, Single Family Program 12/05 at 105.00 Aa2 886,743
Senior Bonds, Series 1995D, 7.375%, 6/01/26 (Alternative
Minimum Tax)
400 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 476,712
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
1,700 City and County of Denver, Colorado, Multifamily Housing 10/07 at 102.00 AAA 1,737,145
Revenue Bonds, FHA-Insured Mortgage Loan - The Boston
Lofts Project, Series 1997A, 5.750%, 10/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.5%
3,170 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 3,323,111
Finance Program Bonds, Series 1996C-2, 6.250%, 11/15/18
Connecticut, Special Tax Obligation Transportation Infrastructure
Purpose Bonds, Series 2003B:
8,310 5.000%, 1/01/21 - FGIC Insured 1/14 at 100.00 AAA 8,622,456
3,000 5.000%, 1/01/24 - FGIC Insured 1/14 at 100.00 AAA 3,056,250
19
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.7%
District of Columbia, University Revenue Bonds, Georgetown
University Issue, Series 2001A:
$ 11,720 0.000%, 4/01/27 - MBIA Insured 4/11 at 39.61 AAA $ 3,060,209
13,780 0.000%, 4/01/28 - MBIA Insured 4/11 at 37.21 AAA 3,375,824
15,855 0.000%, 4/01/29 - MBIA Insured 4/11 at 35.07 AAA 3,651,565
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.7%
1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 AA 1,775,752
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured
5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 5,362,950
5.750%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured
2,500 Escambia County Health Facilities Authority, Florida, Health 10/08 at 101.00 A3 2,468,425
Facility Revenue Bonds, Baptist Hospital and Baptist Manor
Refunding, Series 1998, 5.125%, 10/01/19
1,015 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 1,055,935
Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 (Alternative
Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
280 Fulton County Housing Authority, Georgia, GNMA 9/06 at 102.00 AAA 289,710
Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1996A,
6.200%, 9/01/27 (Alternative Minimum Tax)
3,365 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 3,495,259
Revenue Bonds, Series 2003A, 5.000%, 11/01/18 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.8%
800 Idaho Housing Agency, Senior Lien Single Family Mortgage 7/05 at 102.00 Aaa 825,408
Bonds, Series 1995F, 6.450%, 7/01/27 (Alternative
Minimum Tax)
3,220 Idaho Housing Finance Agency, FHA-Insured Housing Revenue 6/05 at 102.00 Aa2 3,298,343
Bonds, Park Place Project, Series 1995A, 6.500%, 12/01/36
(Alternative Minimum Tax)
3,160 Idaho Housing and Finance Association, GNMA Housing 3/12 at 105.00 Aaa 3,633,494
Revenue Refunding Bonds, Wedgewood Terrace Project,
Series 2002A-1, 7.250%, 3/20/37
850 Idaho Housing and Finance Association, Single Family 7/06 at 102.00 Aaa 895,025
Mortgage Bonds, Series 1996G, 6.350%, 7/01/26
(Alternative Minimum Tax)
1,320 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 Aa2 1,387,848
Mortgage Bonds, Series 2000B, 6.250%, 7/01/22
(Alternative Minimum Tax)
1,235 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aaa 1,261,429
Mortgage Bonds, Series 2000E, 5.950%, 7/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.4%
16,200 Chicago, Illinois, General Obligation Bonds, Series 1995A-1, 1/06 at 102.00 AAA 16,292,988
5.125%, 1/01/25 - AMBAC Insured
1,000 Chicago, Illinois, General Obligation Project and Refunding 7/08 at 102.00 AAA 1,052,430
Bonds, Series 1998, 5.250%, 1/01/20 - FGIC Insured
22,670 Chicago, Illinois, General Obligation Bonds, City Colleges of No Opt. Call AAA 7,297,246
Chicago Capital Improvement Project, Series 1999,
0.000%, 1/01/25 - FGIC Insured
5,000 Chicago School Reform Board of Trustees of the Chicago Board No Opt. Call AAA 2,120,200
of Education, Illinois, Unlimited Tax General Obligation Bonds,
Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 -
FGIC Insured
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 6/09 at 102.00 Aaa 1,208,570
Revenue Bonds, Bryn Mawr/Belle Shores Project,
Series 1997, 5.800%, 6/01/23 (Alternative Minimum Tax)
1,650 Chicago, Illinois, GNMA/FHA Multifamily Housing Revenue 9/13 at 101.00 AAA 1,625,547
Bonds, Indiana Manor Townhomes Project, Series 2002A,
5.100%, 3/20/44
3,705 Chicago, Illinois, Tax Increment Allocation Bonds, Read-Dunning 1/07 at 102.00 N/R 3,820,151
Redevelopment Project, Series 1996B, 7.250%, 1/01/14
3,530 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 1/07 at 102.00 N/R 3,688,073
Drainage and Ship Canal Redevelopment Project,
Series 1997A, 7.750%, 1/01/14
4,865 Cook County Community Consolidated School District 15, No Opt. Call Aaa 2,071,322
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 6,190 Community High School District No. 219, Niles Township, No Opt. Call Aaa $ 2,637,559
Cook County, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - MBIA Insured
2,665 DuPage County Forest Preserve District, Illinois, General No Opt. Call AAA 2,907,835
Obligation Bonds, Series 2003, 5.250%, 10/01/15
2,850 City of East Saint Louis, Illinois, Mortgage Revenue Refunding 7/04 at 101.00 AAA 2,891,097
Bonds, FHA-Insured Mortgage Loan-Dawson Manor
Apartments Section 8 Assisted, Series 1994A,
6.500%, 7/01/24 - MBIA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,000 5.250%, 11/15/14 (WI, settling 5/12/04) 5/14 at 100.00 A 2,091,440
4,420 5.250%, 11/15/15 (WI, settling 5/12/04) 5/14 at 100.00 A 4,589,419
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A+ 3,283,890
Lutheran General Health System, Series 1993C,
6.000%, 4/01/18
3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 3,165,180
Forest Hospital, Series 2003, 6.000%, 7/01/33
Illinois Housing Development Authority, Housing Finance Bonds,
Series 2000A:
920 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 966,442
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,276,909
11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AAA 12,646,810
Series 2001, 6.000%, 11/01/26 - FGIC Insured
Illinois, General Obligation Bonds, Illinois FIRST Program,
Series 2002:
9,000 5.250%, 8/01/12 - MBIA Insured No Opt. Call AAA 9,863,730
2,000 5.500%, 2/01/18 - FGIC Insured 2/12 at 100.00 AAA 2,163,240
4,020 Community Unit School District No. 220 of the Counties No Opt. Call AAA 4,337,741
of Lake, Cook, Kane, and McHenry, Illinois, General Obligation
Bonds, Series 2002, 5.250%, 12/01/20 - FSA Insured
Community Unit School District No. 60, Waukegan, Lake
County, Illinois, General Obligation Refunding Bonds,
Series 2001B:
3,230 0.000%, 11/01/19 - FSA Insured No Opt. Call Aaa 1,467,098
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aaa 696,505
17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call Aaa 7,023,494
District No. 158, Illinois, General Obligation Bonds,
Series 2003, 0.000%, 1/01/22 - FGIC Insured
4,505 McHenry County Community Consolidated School District 2/09 at 100.00 Aaa 4,940,048
No. 047, Crystal Lake, Illinois, General Obligation Refunding
Bonds, Series 1999, 5.750%, 2/01/19 - FSA Insured
2,910 Community High School District Number 154, McHenry No Opt. Call Aaa 1,214,168
County, Illinois, Capital Appreciation School Bonds,
Series 2001, 0.000%, 1/01/21 - FGIC Insured
4,540 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 4,524,428
McCormick Place Expansion Project Bonds, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.3%
1,000 Ball State University Board of Trustees, Indiana, Ball State 1/12 at 100.00 AAA 1,103,770
University Student Fee Revenue Bonds, Series 2002K,
5.750%, 7/01/20 - FGIC Insured
6,031 Greenfield, Indiana, GNMA Multifamily Housing Revenue 12/05 at 105.00 Aaa 6,200,290
Bonds, Pedcor Investments Project, Series 1996A,
6.200%, 12/01/28 (Alternative Minimum Tax)
2,875 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/05 at 102.00 AAA 3,049,800
Guarantee Revenue Bonds, Series 1995A, 6.750%, 2/01/17
(Pre-refunded to 2/01/05)
3,500 Indiana Bond Bank, Special Program Bonds, City of East 2/10 at 101.00 AAA 3,902,045
Chicago Facilities Building Corporation Project, Series 2000A,
6.125%, 2/01/25 - AMBAC Insured
5,000 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 Aa2 5,137,750
Bonds, Series 2000, 5.375%, 12/01/25
1,000 Shelbyville Elementary School Building Corporation, Shelby 7/11 at 100.00 AAA 1,035,290
County, Indiana, First Mortgage Bonds, Series 2001,
5.000%, 7/05/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.6%
10,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA 10,046,500
Iowa Health System, Series 1998A, 5.125%, 1/01/28 -
MBIA Insured
Iowa Tobacco Settlement Authority, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
7,000 5.300%, 6/01/25 6/11 at 101.00 BBB 5,877,060
7,300 5.600%, 6/01/35 6/11 at 101.00 BBB 5,830,875
21
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
$ 660 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103.00 Aa2 $ 671,900
Refunding Bonds, Series 1994, 7.100%, 5/01/12
315 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 317,271
Single Family Mortgage Revenue Refunding Bonds,
Series 1994A-1, 7.900%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.0%
1,145 Bossier Public Trust Financing Authority, Louisiana, Single 8/05 at 102.00 AAA 1,127,115
Family Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
5,045 East Baton Rouge Parish Mortgage Finance Authority, 10/05 at 102.00 Aaa 5,056,099
Louisiana, GNMA/FNMA Mortgage-Backed Securities
Program, Single Family Mortgage Revenue Bonds,
Series 1994C, 6.350%, 10/01/28 (Alternative Minimum Tax)
7,070 Ernest N. Morial-New Orleans Exhibition Hall Authority, 7/14 at 101.00 AAA 7,102,663
Louisiana, Special Tax Revenue Bonds, Senior Subordinate
Series 2004, 5.000%, 7/15/24 - AMBAC Insured
3,230 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,385,589
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/21 - AMBAC Insured
3,670 New Orleans Home Mortgage Authority, Louisiana, 6/05 at 102.00 Aaa 3,756,869
GNMA/FNMA Single Family Mortgage Revenue Bonds,
Series 1995A, 6.300%, 6/01/28 (Alternative Minimum Tax)
3,665 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 3,991,991
Obligation Bonds, Series 1986, 5.950%, 11/01/15 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.2%
1,390 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 1,430,185
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.250%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.6%
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
11,400 5.250%, 1/01/21 (Pre-refunded to 1/01/13) - FSA Insured 1/13 at 100.00 AAA 12,473,994
1,850 5.250%, 1/01/21 (Pre-refunded to 1/01/13) - FSA Insured 1/13 at 100.00 AAA 2,024,289
3,130 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 3,311,634
Resource Recovery Revenue Bonds, Eco/Springfield LLC
Project, Series 2000A, 8.375%, 7/01/14 (Alternative
Minimum Tax)
2,750 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 2,744,610
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 - FGIC Insured
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 AA 9,654,944
Revenue Bonds, Berkshire Health System, Series 2001E,
5.700%, 10/01/25 - RAAI Insured
3,605 Massachusetts Water Resources Authority, General Revenue 12/04 at 102.00 AAA 3,726,741
Bonds, Series 1993C, 5.250%, 12/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.7%
Grand Rapids and Kent County Joint Building Authority, Michigan,
Limited Tax General Obligation Bonds, Devos Place Project,
Series 2001:
7,660 0.000%, 12/01/21 No Opt. Call AAA 3,121,680
7,955 0.000%, 12/01/22 No Opt. Call AAA 3,036,264
8,260 0.000%, 12/01/23 No Opt. Call AAA 2,939,073
8,575 0.000%, 12/01/24 No Opt. Call AAA 2,848,872
8,900 0.000%, 12/01/25 No Opt. Call AAA 2,768,256
2,000 Michigan State Hospital Finance Authority, Revenue Refunding 8/04 at 101.00 Ba3 1,823,920
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.375%, 8/15/09
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.3%
6,995 Champlin, Minnesota, GNMA Guaranteed Senior Housing 6/12 at 105.00 Aaa 7,052,779
Revenue Bonds, Champlin Shores Senior Living Center,
Series 2002A, 3.000%, 12/20/43
Minneapolis/St. Paul Housing and Redevelopment Authority,
Minnesota, Revenue Bonds, HealthPartners, Inc. Project,
Series 2003:
1,000 6.000%, 12/01/18 12/13 at 100.00 BBB+ 1,055,490
1,050 5.875%, 12/01/29 12/13 at 100.00 BBB+ 1,062,212
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA $ 3,057,900
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 - FGIC Insured
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,451,384
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 - FGIC Insured
1,630 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 1,667,017
Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative Minimum Tax)
2,310 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 2,372,278
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
1,485 Minnesota Housing Finance Agency, Single Family Mortgage 1/06 at 102.00 AA+ 1,530,352
Bonds, Series 1996G, 6.250%, 7/01/26 (Alternative Minimum Tax)
2,045 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 2,167,536
Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31 (Alternative
Minimum Tax)
1,620 Saint Louis Park, Minnesota, Revenue Bonds, Park Nicollet 7/14 at 100.00 A- 1,663,675
Health Services, Series 2003B, 5.500%, 7/01/25
2,000 Southern Minnesota Municipal Power Agency, Power Supply 7/04 at 101.00 Aaa 2,048,000
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 6.4%
9,000 Kansas City, Missouri, General Improvement Airport Revenue 9/12 at 100.00 AAA 9,576,900
Bonds, Series 2003B, 5.250%, 9/01/17 - FGIC Insured
6,445 Missouri, Water Pollution Control Revenue Refunding Bonds, 10/12 at 100.00 AAA 6,732,834
Series 2002B, 5.000%, 10/01/18
4,095 Missouri, General Obligation Refunding Bonds, Fourth State 10/12 at 100.00 AAA 4,277,883
Building, Series 2002A, 5.000%, 10/01/18
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
2,500 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 2,592,350
2,000 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 2,031,640
2,500 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 2,525,175
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
1,200 Missouri Health and Educational Facilities Authority, Revenue 2/14 at 100.00 BBB+ 1,209,096
Bonds, Lake Regional Health System, Series 2003,
5.125%, 2/15/18
5,500 St. Louis County Industrial Development Authority, Missouri, 6/04 at 101.00 N/R 5,516,995
Revenue Bonds, Kiel Center Multipurpose Arena, Series 1992,
7.625%, 12/01/09 (Alternative Minimum Tax)
St. Louis, Missouri, Airport Revenue Bonds, Airport Development
Program, Series 2001A:
2,200 5.125%, 7/01/22 - MBIA Insured 7/11 at 100.00 AAA 2,245,056
2,500 5.000%, 7/01/26 - MBIA Insured 7/11 at 100.00 AAA 2,491,525
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3%
1,470 Municipal Energy Agency of Nebraska, Power Supply System 4/13 at 100.00 AAA 1,527,756
Revenue Bonds, Series 2003A, 5.250%, 4/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.8%
5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 5,860,484
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
4,000 Clark County, Nevada, Industrial Development Revenue Bonds, 6/04 at 100.00 AAA 4,100,000
Nevada Power Company Project, Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax) - FGIC Insured
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,299,326
Bonds, Series 2002C, 5.500%, 6/15/18 - MBIA Insured
7,315 Washoe County School District, Nevada, General Obligation No Opt. Call AAA 8,190,093
Refunding Bonds, Series 2002B, 5.500%, 6/01/17 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.6%
5,615 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 5,888,619
Revenue Bonds, Series 2003, 5.125%, 12/15/20 - FSA Insured
4,310 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 4,379,520
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40
(Alternative Minimum Tax) - AMBAC Insured
23
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 3,400 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AA- $ 3,653,266
System Bonds, Series 2003C, 5.500%, 6/15/22
3,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A 3,450,630
Series 1991C, 6.500%, 1/01/09
1,000 Toms River Board of Education, New Jersey, General Obligation 7/07 at 100.00 AAA 1,106,270
Bonds, Series 1997, 5.750%, 7/15/21 (Pre-refunded to
7/15/07) - FGIC Insured
3,620 The Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,664,598
Facility Subordinated Lease Revenue Bonds, Ogden Martin
Systems of Union, Inc. Lessee, Series 1998A, 5.350%, 6/01/23
(Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.3%
1,820 New Mexico Mortgage Finance Authority, Single Family 7/05 at 102.00 AAA 1,877,385
Mortgage Program Bonds, Series 1995E-2, 6.300%, 7/01/17
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 19.4%
2,375 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 2,436,251
General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 -
FSA Insured
11,130 New York City, New York, General Obligation Bonds, 3/06 at 101.50 A 11,857,123
Fiscal Series 1996I, 5.875%, 3/15/18
New York City, New York, General Obligation Bonds, Fiscal
Series 1997I:
8,620 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101.00 Aaa 9,687,587
3,400 6.250%, 4/15/27 4/07 at 101.00 A 3,716,948
New York City, New York, General Obligation Bonds, Fiscal
Series 1996J-1:
1,415 5.875%, 2/15/19 (Pre-refunded to 2/15/06) 2/06 at 101.50 A*** 1,536,322
7,585 5.875%, 5/15/19 2/06 at 101.50 A 8,064,979
3,820 5.500%, 2/15/26 2/06 at 101.50 A 3,843,646
New York City, New York, General Obligation Bonds, Fiscal
Series 1996F:
6,145 7.000%, 2/01/06 No Opt. Call A*** 6,692,335
7,220 7.000%, 2/01/06 No Opt. Call A 7,816,011
1,370 New York City Municipal Water Finance Authority, New York, 6/07 at 101.00 AAA 1,425,636
Water and Sewer System Revenue Bonds, Fiscal
Series 1997B, 5.500%, 6/15/27 - MBIA Insured
3,150 New York City Municipal Water Finance Authority, New York, 6/05 at 101.00 AAA 3,338,528
Water and Sewer System Revenue Bonds, Fiscal Series 1996A,
5.875%, 6/15/25 (Pre-refunded to 6/15/05) - MBIA Insured
4,000 New York City Trust for Cultural Resources, New York, Revenue 4/07 at 101.00 AAA 4,235,960
Bonds, American Museum of Natural History, Series 1997A,
5.650%, 4/01/27 - MBIA Insured
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2004B:
6,875 5.000%, 8/01/23 8/13 at 100.00 AA+ 6,983,969
7,260 5.000%, 8/01/24 8/13 at 100.00 AA+ 7,331,801
2,500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AA+ 2,555,000
Future Tax Secured Bonds, Fiscal 2004 Series C,
5.000%, 2/01/22
Dormitory Authority of the State of New York, Revenue Bonds,
Marymount Manhattan College, Series 1999:
1,975 6.375%, 7/01/16 - RAAI Insured 7/09 at 101.00 AA 2,175,482
2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 AA 2,291,141
7,635 New York State Medical Care Facilities Finance Agency, 5/05 at 102.00 AA-*** 8,128,221
Revenue Bonds, Mercy Medical Center - Rockville,
Series 1995A, 5.875%, 11/01/15 (Pre-refunded to 5/01/05)
New York State Municipal Bond Bank Agency, Special School
Purpose Revenue Bonds, Series 2003C:
6,000 5.250%, 6/01/20 6/13 at 100.00 A+ 6,194,460
5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,250,144
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 7,015,375
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 (Alternative Minimum Tax) - MBIA Insured
New York Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
3,400 5.500%, 6/01/16 6/10 at 100.00 AA- 3,609,780
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,140,800
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6%
$ 2,550 Cumberland County, North Carolina, Hospital Facility Revenue 10/09 at 101.00 A- $ 2,608,829
Bonds, Cumberland County Hospital System, Inc., Cape Fear
Valley Health System, Series 1999, 5.250%, 10/01/19
2,480 Durham Urban Redevelopment Authority, North Carolina, 8/07 at 105.00 AAA 2,626,394
FHA Insured Mortgage Loan Revenue Bonds, Durham Hosiery
Mill Project, Series 1987, 7.500%, 8/01/29 (Alternative
Minimum Tax)
975 North Carolina Housing Finance Agency, Single Family 3/06 at 102.00 AA 1,006,346
Revenue Bonds, Series 1996JJ, 6.450%, 9/01/27 (Alternative
Minimum Tax)
North Carolina Infrastructure Finance Corporation, Certificates of
Participation, Correctional Facilities, Series 2004A:
1,250 5.000%, 2/01/21 2/14 at 100.00 AA+ 1,281,438
2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,489,230
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.6%
3,100 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa3 3,236,369
Program Bonds, Series 2000C, 6.150%, 7/01/31 (Alternative
Minimum Tax)
345 North Dakota Housing Finance Agency, Home Mortgage Finance 1/07 at 102.00 Aa2 358,693
Program Bonds, Series 1996B, 6.400%, 1/01/28 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.0%
Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth
Corporation, Series 2003C:
2,330 5.250%, 5/15/17 - MBIA Insured 5/13 at 100.00 AAA 2,457,707
4,105 5.250%, 5/15/18 - MBIA Insured 5/13 at 100.00 AAA 4,308,198
2,000 Ohio Housing Finance Agency, Multifamily Housing Mortgage 1/08 at 102.00 Aa2 2,024,820
Revenue Bonds, FHA-Insured Mortgage Loan- Courtyards of
Kettering Project, Series 1998B-1, 5.550%, 1/01/40
(Alternative Minimum Tax)
3,595 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 3,697,098
Certificates, Joint Venture 5, Belleville Hydroelectric Project,
American Municipal Power Ohio, Inc., Series 2004,
5.000%, 2/15/20 - AMBAC Insured
5,000 Ohio Water Development Authority, Collateralized Water 8/04 at 100.00 BBB- 5,022,300
Revenue Refunding Bonds, Dayton Power and Light Company,
Series 1992A, 6.400%, 8/15/27
6,650 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,183,636
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
6,800 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 6,830,532
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.8%
5,000 Oklahoma Student Loan Authority, Student Loan Revenue Bonds, 6/11 at 102.00 AAA 5,097,650
Senior Lien Series 2001A-1, 5.625%, 6/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.5%
705 Oregon, General Obligation Elderly and Disabled Housing Bonds, 8/04 at 100.00 AA- 713,108
Series 1992B, 6.375%, 8/01/24
1,785 Oregon, General Obligation Veterans Welfare Bonds, Series 75, 10/05 at 102.00 Aa3 1,835,016
6.000%, 4/01/27
4,600 Oregon Department of Administrative Services, State Lottery No Opt. Call AAA 4,987,182
Revenue Bonds, Series 2004A, 5.000%, 4/01/14 - FSA Insured
220 State of Oregon, Housing and Community Services Department, 1/10 at 100.00 Aa2 221,580
Mortgage Revenue Bonds, Single Family Mortgage Program,
Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax)
1,380 Portland, Oregon, Limited Tax Improvement Bonds, Series 1996A, 6/06 at 100.00 Aa2 1,464,649
5.550%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6%
2,400 Beaver County Industrial Development Authority, Pennsylvania, 7/05 at 102.00 A 2,592,960
Collateralized Pollution Control Revenue Refunding Bonds, The
Cleveland Electric Illuminating Company, Beaver Valley Project,
Series 1995A, 7.750%, 7/15/25 - ACA Insured
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call AAA 1,149,792
Government Revenue Bonds, Series 1997B, 5.700%, 7/01/27 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.2%
1,375 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 1,413,033
Series 1995X, 5.500%, 7/01/25
25
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.2%
$ 1,055 Rhode Island Health and Educational Building Corporation, 3/12 at 101.00 AA $ 1,057,796
Revenue Refunding Bonds, Salve Regina University,
Series 2002, 5.000%, 3/15/19 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 11.3%
14,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 13,990,620
Purchase Revenue Securing Assets for Education, Series 2003,
5.250%, 12/01/24
15,445 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 16,973,128
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17
2,500 Greenville, South Carolina, Hospital Facilities Revenue Refunding 5/13 at 100.00 AAA 2,500,900
Bonds, Series 2003A, 5.000%, 5/01/25 - AMBAC Insured
2,135 Lexington County School District 4, South Carolina, Certificates 7/04 at 102.00 Baa2*** 2,198,538
of Participation, Series 1994, 7.000%, 7/01/12 (Pre-refunded
to 7/01/04)
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/04 at 100.00 AAA 6,621,348
Revenue Refunding Bonds, Series 1991, 4.000%, 1/01/23 -
MBIA Insured
6,000 South Carolina JOBS Economic Development Authority, Revenue 11/12 at 100.00 A- 5,918,460
Bonds, Bon Secours Health System, Inc., Series 2002A,
5.625%, 11/15/30
South Carolina JOBS Economic Development Authority, Hospital
Revenue Bonds, Palmetto Health Alliance, Series 2003C:
1,500 6.875%, 8/01/27 8/13 at 100.00 BBB 1,616,265
5,000 6.375%, 8/01/34 8/13 at 100.00 BBB 5,182,800
15,000 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 BBB 13,872,600
Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.6%
9,860 South Dakota Building Authority, Revenue Bonds, Series 1992, 9/04 at 100.00 AAA 10,042,509
6.700%, 9/01/17 (Pre-refunded to 9/01/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3%
1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,634,280
Revenue Bonds, Series 1999D, 6.000%, 3/01/19 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.2%
4,000 Austin, Texas, Airport System Prior Lien Revenue Bonds, 11/13 at 100.00 AAA 4,264,120
Series 2003, 5.250%, 11/15/16 - MBIA Insured
2,290 City of Austin, Texas, Town Lake Park Community Events Center 11/09 at 100.00 AAA 2,521,679
Venue Project Bonds, Series 1999, 6.000%, 11/15/25 -
FGIC Insured
5,000 Brazos River Authority, Texas, Pollution Control Revenue 5/08 at 102.00 AAA 5,586,250
Refunding Bonds, Texas Utilities Electric Company Project,
Series 1998A, 5.550%, 5/01/33 (Alternative Minimum Tax)
(Pre-refunded to 5/01/08) - AMBAC Insured
5,000 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 4/08 at 102.00 AAA 5,579,750
Texas Utilities Electric Company Project, Series 1995C,
5.550%, 6/01/30 (Alternative Minimum Tax) (Pre-refunded
to 4/01/08) - MBIA Insured
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 BBB 5,839,759
Refunding Bonds, TXU Electric Company Project, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
10,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 A- 10,907,100
Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33 (Alternative
Minimum Tax) (Mandatory put 5/15/17)
3,345 City of Fort Worth, Texas, Water and Sewer Revenue Bonds, 2/12 at 100.00 AA 3,654,078
Series 2001, 5.625%, 2/15/19
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/08 at 102.00 BBB 4,903,350
Disposal Revenue Bonds, Valero Refining and Marketing
Company Project, Series 1997, 5.600%, 12/01/31 (Alternative
Minimum Tax)
2,800 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,842,588
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 -
MBIA Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
Harris County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Memorial Hermann Healthcare System,
Series 2004A:
$ 1,000 5.000%, 12/01/20 12/14 at 100.00 A $ 996,050
1,000 5.000%, 12/01/21 12/14 at 100.00 A 990,150
2,500 5.125%, 12/01/22 12/14 at 100.00 A 2,485,075
510 Hidalgo County Housing Finance Corporation, Texas, GNMA/FNMA 10/04 at 102.00 Aaa 514,677
Collateralized Single Family Mortgage Revenue Bonds,
Series 1994A, 7.000%, 10/01/27 (Alternative Minimum Tax)
10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 3,353,193
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/25 - AMBAC Insured
6,185 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 AAA 6,306,412
Unlimited Tax General Obligation Refunding Bonds,
Series 2001, 5.250%, 8/15/26
1,760 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, 3/09 at 100.00 AAA 1,937,637
Series 2001, 5.750%, 3/15/16 - FGIC Insured
2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,072,600
Unlimited Tax Schoolhouse Bonds, Series 2001A,
5.250%, 2/15/22
3,935 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 3,966,401
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
3,900 State of Texas, General Obligation Bonds, Veterans Housing 12/11 at 101.00 Aa1 3,933,150
Assistance Program Fund II, Series 2001C-1, 5.200%, 12/01/21
(Alternative Minimum Tax)
6,945 Weatherford Independent School District, Parker County, Texas, 2/11 at 44.73 AAA 2,116,003
Unlimited Tax School Building and Refunding Bonds,
Series 2001, 0.000%, 2/15/25
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.8%
545 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102.00 AAA 547,556
Series 1994B, 6.450%, 7/01/14
395 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 411,112
Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum Tax)
705 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101.50 AAA 737,909
Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax)
3,000 Weber County Municipal Building Authority, Utah, Lease Revenue 12/04 at 102.00 Aaa 3,176,610
Bonds, Series 1994, 7.500%, 12/15/19 (Pre-refunded to
12/15/04) - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.9%
5,635 Vermont Housing Finance Agency, Single Family Housing Bonds, 5/04 at 101.00 A+ 5,767,704
Series 1992-4, 6.400%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.2%
15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 15,312,900
Consolidated System Revenue Bonds, Series 2002A,
5.450%, 7/01/37 (Alternative Minimum Tax) - AMBAC Insured
7,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,245,800
Bonds, Columbia Generating Station, Series 2002C,
5.750%, 7/01/17 - MBIA Insured
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,448,400
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
7,635 Public Hospital District No. 2, King County, Washington, 6/11 at 101.00 AAA 7,540,631
Limited Tax General Obligation Bonds, Evergreen Healthcare,
Series 2001A, 5.000%, 12/01/30 - AMBAC Insured
10,080 King County School District No. 401, Highline, Washington, 6/12 at 100.00 AAA 10,993,954
General Obligation Bonds, Series 2002, 5.500%, 12/01/16 -
FGIC Insured
6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 9/12 at 100.00 AAA 7,214,066
5.250%, 9/01/22 - FGIC Insured
2,500 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 2,568,150
Bonds, Series 2001, 5.125%, 12/01/22 - MBIA Insured
4,905 State of Washington, Various Purpose General Obligation 1/09 at 100.00 Aa1 5,011,291
Bonds, Series 1999B, 5.000%, 1/01/19
27
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.1%
$ 7,000 Harrison County Commission, West Virginia, Solid Waste 5/04 at 101.00 AAA $ 7,092,190
Disposal Revenue Bonds, Potomac Edison Company, Harrison
Station Project, Series 1993B, 6.250%, 5/01/23 (Alternative
Minimum Tax) - AMBAC Insured
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,962,600
Appalachian Power Company Project, Series 2003L,
5.500%, 10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue 4/09 at 101.00 AAA 1,025,040
Bonds, West Penn Power Company Pleasants Station Project,
Series 1999E, 5.500%, 4/01/29 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.2%
3,215 Wisconsin Health and Educational Facilities Authority, Revenue 2/07 at 102.00 AAA 3,447,830
Bonds, Marshfield Clinic Project, Series 1997,
5.625%, 2/15/17 - MBIA Insured
4,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/09 at 101.00 BBB+ 3,918,280
Bonds, Aurora Health Care, Inc., Series 1999A, 5.600%, 2/15/29
------------------------------------------------------------------------------------------------------------------------------------
$ 1,051,181 Total Long-Term Investments (cost $918,172,048) - 154.6% 944,750,667
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.2%
3,000 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ 3,000,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2000, 1.100%, 7/01/30 - FSA Insured+
2,000 Montgomery County Public Building Authority, Tennessee, VMIG-1 2,000,000
Pooled Financing Adjustable Revenue Bonds, County Loan
Pool Program, Series 2002, 1.110%, 4/01/32+
2,000 Puerto Rico Government Development Bank, Adjustable A-1 2,000,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.030%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 7,000 Total Short-Term Investments (cost $7,000,000) 7,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $925,172,048) - 155.8% 951,750,667
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 6,311,909
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.8)% (347,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 611,062,576
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
28
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.7%
$ 975 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 988,514
Revenue Refunding Bonds, Series 1994D, 5.850%, 9/01/04
(Alternative Minimum Tax) - FSA Insured
2,395 Alabama Housing Finance Authority, Multifamily Housing 2/11 at 102.00 AAA 2,399,335
Revenue Bonds, South Bay Apartments Project, Series 2000K,
5.950%, 2/01/33 (Alternative Minimum Tax)
11,745 Alabama Special Care Facilities Financing Authority of 11/05 at 101.00 Aaa 11,974,615
Birmingham, Hospital Revenue Bonds, Daughter's of Charity
National Health System - Providence Hospital and
St. Vincent's Hospital, Series 1995, 5.000%, 11/01/25
5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- 5,185,535
Bonds, Series 2001, 5.750%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.6%
3,065 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA 3,140,246
Bonds, Series 2003E, 5.250%, 12/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.6%
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,005,100
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/31 - MBIA Insured
3,750 Salt River Project Agricultural Improvement and Power District, 12/13 at 100.00 AAA 3,898,988
Arizona, Electric System Revenue Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1%
125 Arkansas Development Finance Authority, FHA-Insured or 8/04 at 100.00 AA 126,211
VA Guaranteed Single Family Mortgage Refunding Loans,
Series 1991A, 8.000%, 8/15/11
136 Jacksonville Residential Housing Facilities Board, Arkansas, 7/04 at 102.00 Aaa 138,647
FNMA-Backed Single Family Mortgage Revenue Refunding
Bonds, Series 1993A, 7.900%, 1/01/11
195 Lonoke County Residential Housing Facilities Board, Arkansas, 4/05 at 103.00 Aaa 199,678
Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.7%
10,000 California Health Facilities Financing Authority, Revenue Bonds, 3/13 at 100.00 A 9,537,200
Adventist Health System/West, Series 2003A, 5.000%, 3/01/33
10,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/22 8/13 at 100.00 Baa1 10,068,400
4,500 California, General Obligation Bonds, Series 2004, 5.100%, 2/01/34 2/09 at 100.00 Baa1 4,348,620
4,780 Foothill-Eastern Transportation Corridor Agency, California, Toll No Opt. Call AAA 3,148,443
Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 938,420
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
1,715 Merced County Housing Authority, California, FNMA 5/04 at 102.00 Aaa 1,747,002
Multifamily Housing Revenue Refunding Bonds, Belmont Park
Apartments Project, Series 1993A, 5.875%, 1/01/19
1,945 South Gate Public Financing Authority, California, Water No Opt. Call AAA 2,250,034
Revenue Refunding Bonds, Series 1996A, 6.000%, 10/01/12 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.2%
2,000 Colorado Health Facilities Authority, Revenue Refunding 9/11 at 100.00 AA 2,030,860
Bonds, Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
1,230 Colorado Housing and Finance Authority, Single Family Program 10/09 at 105.00 Aa2 1,278,019
Senior Bonds, Series 1999C-3, 6.750%, 10/01/21
3,040 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,623,011
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
29
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
Denver Convention Center Hotel Authority, Colorado, Convention
Center Hotel Senior Revenue Bonds, Series 2003A:
$ 2,940 5.000%, 12/01/20 - XLCA Insured 12/13 at 100.00 AAA $ 3,001,622
10,000 5.000%, 12/01/33 - XLCA Insured 12/13 at 100.00 AAA 9,930,800
4,345 El Paso County School District No. 20, Academy, Colorado, 12/12 at 100.00 Aaa 4,630,249
General Obligation Bonds, Series 2002, 5.250%, 12/15/17 -
FGIC Insured
4,125 Municipal Subdistrict Northern Colorado, Water Conservancy 12/07 at 101.00 AAA 4,420,061
District Revenue Bonds, Series 1997C, 5.250%, 12/01/15 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6%
3,000 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 3,144,900
Finance Program Bonds, Series 1996C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.6%
6,000 District of Columbia, General Obligation Bonds, Series 1993B-2, No Opt. Call AAA 6,675,780
5.500%, 6/01/10 - FSA Insured
4,250 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 4,650,180
Medlantic Healthcare Group Issue, Series 1993A,
5.750%, 8/15/14 - MBIA Insured
District of Columbia, General Obligation Bonds, Series 1993E:
4,485 6.000%, 6/01/09 - CAPMAC Insured 6/04 at 101.00 AAA 4,550,481
5 6.000%, 6/01/09 - CAPMAC Insured 6/04 at 101.00 AAA 5,118
District of Columbia, General Obligation Refunding Bonds,
Series 1993A:
1,585 6.000%, 6/01/07 - MBIA Insured No Opt. Call AAA 1,721,627
7,215 6.000%, 6/01/07 - MBIA Insured No Opt. Call AAA 7,970,555
District of Columbia, University Revenue Bonds, Georgetown
University Issue, Series 2001A:
9,670 0.000%, 4/01/26 - MBIA Insured 4/11 at 42.15 AAA 2,689,614
15,235 0.000%, 4/01/30 - MBIA Insured 4/11 at 32.93 AAA 3,290,455
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 6.4%
5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 5,006,200
Participation, Series 2003, 5.000%, 7/01/28 - MBIA Insured
5,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AAA 5,197,500
Bonds, Tampa International Airport, Series 2003A,
5.250%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured
9,000 JEA, Florida, Water and Sewer System Revenue Bonds, 10/05 at 100.00 AA-*** 9,461,250
Series 2001A, 5.200%, 10/01/20 (Pre-refunded to 10/01/05)
5,000 Martin County Industrial Development Authority, Florida, 12/04 at 102.00 BBB- 5,155,800
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP Project, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
1,380 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 1,439,105
Multifamily Revenue Bonds, Sunset Bay Apartments Project,
Series 2000-5A, 5.850%, 7/01/20 (Alternative Minimum Tax) -
FSA Insured
9,500 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 9,596,045
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
3,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 3,744,828
Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,880 Georgia Municipal Electric Authority, Power Revenue Bonds, No Opt. Call A+ 3,612,730
Series 1992B, 8.250%, 1/01/11
5,500 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call AAA 6,223,030
Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.0%
City and County of Honolulu, Hawaii, General Obligation Bonds,
Refunding and Improvement Series, 1993B:
1,580 5.000%, 10/01/13 No Opt. Call Aaa 1,724,317
3,720 5.000%, 10/01/13 No Opt. Call Aa2 4,000,972
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.0%
$ 4,000 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA $ 4,621,120
Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured
5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, 1/11 at 101.00 AAA 5,513,703
Series 2001A, 5.125%, 1/01/26 (Alternative Minimum
Tax) - FSA Insured
5,000 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 5,065,300
5.250%, 1/01/28 - FGIC Insured
Cook County School District 99, Cicero, Illinois, General
Obligation School Bonds, Series 1997:
1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call Aaa 1,961,762
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call Aaa 2,314,162
6,170 Illinois Development Finance Authority, Revenue Bonds, 4/11 at 105.00 Aaa 6,912,806
Greek American Nursing Project, Series 2000A,
7.600%, 4/20/40
590 Illinois Development Finance Authority, Child Care Facility No Opt. Call N/R 595,699
Revenue Bonds, Illinois Facilities Fund Project, Series 1992,
7.400%, 9/01/04
870 Illinois Educational Facilities Authority Revenue Bonds, Chicago 7/04 at 100.00 AAA 910,794
College of Osteopathic Medicine, Series A, 8.750%, 7/01/05
Illinois Health Facilities Authority, Revenue Refunding Bonds,
Lutheran General Health System, Series 1993C:
5,705 7.000%, 4/01/08 No Opt. Call A+ 6,309,673
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,895,420
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 3,895,920
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
8,190 Illinois Housing Development Authority, Multi-Family Program 9/04 at 102.00 A+ 8,386,314
Bonds, Series 1994-5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly 5/04 at 101.00 A 3,433,086
Housing Revenue Bonds, Skyline Towers Apartments Project,
Series 1992B, 6.875%, 11/01/17
9,795 Community Unit School District No. 220 of the Counties of Lake, No Opt. Call AAA 10,594,076
Cook, Kane, and McHenry, Illinois, General Obligation Bonds,
Series 2002, 5.250%, 12/01/19 - FSA Insured
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Bonds, Series 2002A:
9,500 0.000%, 6/15/24 - MBIA Insured 6/22 at 101.00 AAA 4,855,925
4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,524,428
34,440 0.000%, 6/15/40 - MBIA Insured No Opt. Call AAA 4,344,262
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,898,175
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
2,162 Wood River Township, Madison County, Illinois, General 8/04 at 102.00 N/R 1,937,557
Obligation Bonds, Series 1993, 6.625%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.9%
22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 22,558,140
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 - MBIA Insured
3,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 3,632,760
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
3,500 Indiana Educational Facilities Authority, Educational Facilities 2/11 at 100.00 AAA 3,644,305
Revenue Bonds, Butler University Project, Series 2001,
5.500%, 2/01/26 - MBIA Insured
1,500 Indiana Educational Facilities Authority, Revenue Bonds, 10/09 at 101.00 AAA 1,641,720
University of Indianapolis, Series 1999, 5.750%, 10/01/19 -
FSA Insured
Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series 2003A:
4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,047,880
6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,036,780
2,100 Indianapolis, Indiana, Economic Development Revenue Bonds, 7/04 at 102.00 Ca 1,344,000
Meadows Section 8 Project, Series 1993A, 6.000%, 7/01/23
(Alternative Minimum Tax)#
1,375 Kokomo Hospital Authority, Indiana, Hospital Revenue Refunding 8/04 at 101.00 N/R*** 1,424,899
Bonds, St. Joseph Hospital and Health Center, Series 1993,
6.250%, 8/15/05
5,000 M.S.D. of Warren Township, Vision 2005 School Building 1/11 at 100.00 AAA 5,385,000
Corporation, Marion County, Indiana, First Mortgage Bonds,
Series 2000, 5.500%, 7/15/20 - FGIC Insured
31
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.0%
$ 85 Davenport, Iowa, Home Ownership Mortgage Revenue Refunding 9/04 at 102.00 Aa2 $ 85,927
Bonds, Series 1994, 7.900%, 3/01/10
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.6%
505 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103.00 Aa2 514,105
Refunding Bonds, Series 1994, 7.100%, 5/01/12
2,000 City of Olathe, Kansas, Health Facilities Revenue Bonds, 9/10 at 100.00 AAA 2,063,120
Olathe Medical Center Project, Series 2000A,
5.500%, 9/01/25 - AMBAC Insured
6,825 Sedgwick County Unified School District No. 259, Wichita, 9/10 at 100.00 AA 6,205,154
Kansas, General Obligation Bonds, Series 2000, 3.500%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.9%
3,070 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,231,236
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/20 - AMBAC Insured
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,916,635
Community Development Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds - Sharlo Apartments
Project, Series 2002A, 6.500%, 6/20/37
5,240 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 5,727,110
Obligation Bonds, Series 1986, 5.950%, 11/01/14 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 2.6%
7,520 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A2 7,925,253
Student Loan Revenue Bonds, Series 1994B-2,
6.250%, 11/01/06 (Alternative Minimum Tax)
6,635 Maine State Housing Authority, Mortgage Purchase Bonds, 5/10 at 100.00 AA+ 6,872,599
Series 2000C-1, 6.050%, 11/15/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.8%
3,225 Maryland Community Development Administration, Housing 1/07 at 102.00 Aa2 3,347,066
Revenue Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Housing 7/07 at 102.00 Aa2 3,001,616
Revenue Bonds, Series 1997A, 6.000%, 7/01/39
(Alternative Minimum Tax)
6,800 Montgomery County Housing Opportunities Commission, 7/06 at 102.00 Aa2 7,044,596
Maryland, GNMA/FHA-Insured Multifamily Housing Revenue
Bonds, Series 1996B, 6.400%, 7/01/28 (Alternative
Minimum Tax)
2,315 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,450,358
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.125%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.0%
35 Massachusetts Housing Finance Agency, Housing Project 10/04 at 101.00 A+ 35,387
Revenue Refunding Bonds, Series 1993A, 6.300%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.9%
10,225 City of Detroit, Michigan, Water Supply System Senior Lien 7/07 at 101.00 AAA 10,237,986
Revenue Bonds, Series 1997A, 5.000%, 7/01/27 -
MBIA Insured
1,935 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,992,973
Mortgage Hospital Revenue Bonds, Portage Health System,
Inc., Series 1998, 4.625%, 8/01/18 - MBIA Insured
4,400 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 4,462,216
Mortgage Hospital Revenue Bonds, Portage Health System,
Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,012,950
Facilities Program, Series 2003-II, 5.000%, 10/15/29 -
MBIA Insured
10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 7,389,375
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
3,750 Michigan Strategic Fund, Collateralized Limited Obligation 6/04 at 101.00 AAA 3,837,938
Revenue Refunding Bonds, Consumers Power Company Project,
Series 1993B, 5.800%, 6/15/10 - CAPMAC Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6%
$ 2,460 Minneapolis/St. Paul Housing Finance Board, Minnesota, 11/07 at 102.00 AAA $ 2,515,227
FNMA/GNMA Mortgage-Backed Securities Program, Single
Family Mortgage Revenue Bonds, Series 1997,
5.800%, 11/01/30 (Alternative Minimum Tax)
3,500 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,574,935
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 - FGIC Insured
2,685 Minnetonka, Minnesota, GNMA Collateralized Multifamily 12/04 at 102.00 AAA 2,759,106
Housing Revenue Refunding Bonds, Brier Creek Project,
Series 1994A, 6.450%, 6/20/24
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.4%
2,000 Mississippi Higher Education Assistance Corporation, Student 9/04 at 100.00 Aaa 2,020,220
Loan Revenue Bonds, Senior Series 1993B, 5.800%, 9/01/06
(Alternative Minimum Tax)
5,180 State of Mississippi, General Obligation Refunding Bonds, No Opt. Call AA 5,809,215
Series 2002A, 5.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.4%
2,000 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 1,993,220
Program, Series 2001A, 5.000%, 7/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.8%
9,000 Nebraska Higher Education Loan Program Incorporated, No Opt. Call AAA 9,685,530
Senior Subordinate Bonds, Series 1993A-5A, 6.250%, 6/01/18
(Alternative Minimum Tax) - MBIA Insured
335 Nebraska Investment Finance Authority, Single Family Housing 3/07 at 101.50 AAA 344,645
Revenue Bonds, Series 1998F, 5.600%, 9/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.7%
7,000 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 7,079,100
Improvement Revenue Bonds, Series 2003,
5.000%, 7/01/23 - AMBAC Insured
10,420 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,310,181
Bonds, Series 2002C, 5.500%, 6/15/18 - MBIA Insured
4,500 Clark County School District, Nevada, General Obligation No Opt. Call AAA 5,377,410
School Improvement Bonds, Series 1991A, 7.000%, 6/01/10 -
MBIA Insured
5,425 Director of Nevada State Department of Business and Industry, No Opt. Call AAA 1,718,423
Revenue Bonds, Las Vegas Monorail Project, First Tier
Series 2000, 0.000%, 1/01/25 - AMBAC Insured
855 Nevada Housing Division, Single Family Mortgage Bonds, 10/04 at 102.00 A1 873,023
Senior Series 1992B, 6.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.0%
45 New Hampshire Housing Finance Agency, Single Family 1/07 at 102.00 Aa2 47,140
Mortgage Acquisition Revenue Bonds, Series 1996C,
6.200%, 7/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.8%
1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 1,204,324
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991C:
2,345 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 2,800,000
655 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 778,520
15,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 13,405,200
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
3,125 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 2,932,563
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.8%
1,200 Town of Hempstead Industrial Development Agency, New York, No Opt. Call A3 1,271,724
Resource Recovery Revenue Refunding Bonds, American
REF-FUEL Company of Hempstead Project, Series 2001,
5.000%, 12/01/10 (Mandatory put 6/01/10)
1,000 New York City, New York, General Obligation Bonds, No Opt. Call A 1,014,180
Fiscal Series 1995A, 7.000%, 8/01/04
33
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
New York City, New York, General Obligation Bonds, Fiscal
Series 1996F:
$ 6,580 6.500%, 2/01/05 No Opt. Call A*** $ 6,836,357
7,730 6.500%, 2/01/05 No Opt. Call A 8,021,421
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 1998C:
1,350 5.000%, 5/01/26 (Pre-refunded to 5/01/08) 5/08 at 101.00 AA+*** 1,483,448
15,565 5.000%, 5/01/26 5/08 at 101.00 AA+ 15,593,017
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2000C:
3,630 5.875%, 11/01/16 (Pre-refunded to 5/15/10) 5/10 at 101.00 AA+*** 4,179,836
5,000 5.500%, 11/01/24 5/10 at 101.00 AA+ 5,290,650
220 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AA+ 247,590
Future Tax Secured Bonds, Fiscal Series 2000A,
5.875%, 11/01/16
2,145 New York State Medical Care Facilities Finance Agency, 8/04 at 100.00 AAA 2,243,885
FHA-Insured Mortgage Revenue Bonds, Hospital and Nursing
Home Projects, Series 1992B, 6.200%, 8/15/22
4,200 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AA 4,396,182
FHA-Insured Mortgage Revenue Bonds, Kenmore Mercy
Hospital, Series 1995B, 6.150%, 2/15/35
3,365 New York State Medical Care Facilities Finance Agency, 8/04 at 102.00 AA 3,442,967
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, Series 1994A, 6.200%, 2/15/21
7,500 New York State Thruway Authority, General Revenue Bonds, 1/05 at 102.00 AAA 7,884,600
Series C, 6.000%, 1/01/15 (Pre-refunded to 1/01/05) -
FGIC Insured
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 7,015,375
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 (Alternative Minimum Tax) - MBIA Insured
New York Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
5,400 5.500%, 6/01/16 6/10 at 100.00 AA- 5,733,180
2,500 5.500%, 6/01/18 6/12 at 100.00 AA- 2,670,400
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.3%
2,675 Charlotte, North Carolina, Water and Sewer System Revenue 6/11 at 101.00 AAA 2,962,910
Bonds, Series 2001, 5.500%, 6/01/13
2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 2,281,600
Revenue Bonds, Series 1992, 6.000%, 1/01/11 - MBIA Insured
10,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 10,610,200
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured
2,445 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 2,506,492
of Participation, Correctional Facilities, Series 2004A,
5.000%, 2/01/21
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.0%
65 Minot, North Dakota, Single Family Mortgage Revenue 8/04 at 101.00 Aa2 65,640
Refunding Bonds, Series 1993, 7.700%, 8/01/10
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.0%
3,705 Akron, Bath, and Copley Joint Township Hospital District, 5/04 at 101.00 Baa1 3,750,238
Ohio, Hospital Facilities Revenue Bonds, Summa Health
System Project, Series 1992A, 6.250%, 11/15/07
9,000 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA 9,001,890
5.000%, 1/01/31 - FSA Insured
3,000 County of Franklin, Ohio, Development Revenue Bonds, 10/09 at 101.00 A 3,215,880
American Chemical Society Project, Series 1999,
5.800%, 10/01/14
1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/05 at 103.00 Aa 1,011,680
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24 (Alternative
Minimum Tax)
720 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/05 at 102.00 Aaa 742,918
Securities Program, Residential Mortgage Revenue Bonds,
Series 1995A-1, 6.300%, 9/01/17
4,370 City of Toledo, Ohio, General Obligation Bonds, Series 1994, 12/04 at 102.00 AAA 4,572,593
5.750%, 12/01/09 (Pre-refunded to 12/01/04) -
AMBAC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.5%
$ 545 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa $ 571,754
Revenue Bonds, Homeownership Loan Program, Series 2000C-2,
6.200%, 9/01/28 (Alternative Minimum Tax)
Oklahoma County Finance Authority, Multifamily Housing First
Mortgage Revenue Bonds, Multiple Apartments Project, Series 1998A:
3,495 7.000%, 4/01/18# 4/06 at 102.00 N/R 524,250
7,000 7.125%, 4/01/28# 4/06 at 102.00 N/R 1,050,000
9,775 Tulsa County Industrial Authority, Oklahoma, First Mortgage 3/11 at 101.00 N/R 7,744,146
Multifamily Housing Revenue Bonds, Stoneridge Apartments
Project, Series 1999, 6.125%, 3/01/39 (Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Oklahoma, Revenue and Refunding No Opt. Call AAA 3,865,516
Bonds, Hillcrest Medical Center Project, Series 1996,
6.500%, 6/01/09 - CONNIE LEE/AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.9%
5,000 Pennsylvania Economic Development Financing Authority, 7/04 at 102.00 BBB- 5,105,350
Resource Recovery Revenue Bonds, Northampton Generating
Project, Senior Lien, Series 1994A, 6.400%, 1/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 3.3%
12,390 Puerto Rico, Public Improvement General Obligation Refunding No Opt. Call AAA 14,895,010
Bonds, Series 1997, 6.500%, 7/01/13 - MBIA Insured
3,470 University of Puerto Rico, University System Revenue Bonds, 6/10 at 100.00 AAA 3,872,173
Series O, 5.750%, 6/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.1%
20,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 17,343,200
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.9%
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Refunding Bonds, Series 1991:
5,000 6.250%, 1/01/21 - FGIC Insured No Opt. Call AAA 5,859,750
5,750 4.000%, 1/01/23 - MBIA Insured 7/04 at 100.00 AAA 5,009,573
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 5,625,129
Revenue Refunding Bonds, 1998A Series, 5.500%, 1/01/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3%
1,500 Metropolitan Government of Nashville and Davidson County, 5/08 at 102.00 AA 1,541,880
Tennessee, Electric System Revenue Bonds, Series 1998A,
5.200%, 5/15/23
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.1%
4,500 Alliance Airport Authority, Inc., Texas, Special Facilities 6/04 at 100.00 CCC 3,259,575
Revenue Bonds, American Airlines, Inc. Project, Series 1990,
7.500%, 12/01/29 (Alternative Minimum Tax)
3,345 Columbia-Brazoria Independent School District, Texas, 2/09 at 100.00 AAA 3,210,397
Unlimited Tax School Building Bonds, Series 1999,
4.750%, 2/01/25
8,000 Dallas-Fort Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 8,705,520
Refunding and Improvement Bonds, Series 2001A,
5.875%, 11/01/19 (Alternative Minimum Tax) - FGIC Insured
6,000 Garland Housing Finance Corporation, Texas, Multifamily 12/11 at 101.00 N/R 5,970,120
Housing Revenue Bonds, Legacy Pointe Apartments,
Series 2000, 7.500%, 6/01/40 (Alternative Minimum Tax)
7,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 6,943,930
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
28,305 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 7,249,760
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/28 - AMBAC Insured
7,500 Houston, Texas, Water and Sewer System, Junior Lien Revenue No Opt. Call AAA 8,370,150
Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - FSA Insured
5,000 Houston, Texas, Water and Sewer System, Junior Lien Revenue 12/07 at 102.00 AAA 5,016,700
Refunding Bonds, Series 1997D, 5.000%, 12/01/25 - FGIC Insured
7,080 Liberty County Housing Development Corporation, Texas, 6/09 at 100.00 N/R 6,301,200
Multifamily Housing Revenue Bonds, Series 1999,
7.250%, 6/01/34
35
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 367 Midland Housing Finance Corporation, Texas, Single Family 11/05 at 103.00 Aaa $ 384,828
Mortgage Revenue Refunding Bonds, Series 1992A,
8.450%, 12/01/11
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds,
Series 2001:
2,300 5.500%, 2/15/21 2/11 at 100.00 AAA 2,451,156
2,400 5.500%, 2/15/23 2/11 at 100.00 AAA 2,526,744
Mount Pleasant Independent School District, Titus County, Texas,
General Obligation Refunding Bonds, Series 2001:
3,025 5.000%, 2/15/26 8/11 at 100.00 Aaa 3,025,696
3,000 5.125%, 2/15/31 8/11 at 100.00 Aaa 3,016,620
6,000 Raven Hills Higher Education Corporation, Texas, Student 8/12 at 100.00 Aaa 6,013,620
Housing Revenue Bonds, Angelo State University - Texan
Hall LLC, Series 2002A, 5.000%, 8/01/25 - MBIA Insured
3,410 Retama Development Corporation, Texas, Special Facilities No Opt. Call AAA 4,639,407
Revenue Bonds, Retama Park Racetrack Project, Series 1993,
8.750%, 12/15/12
1,800 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 1,910,178
System Revenue Refunding Bonds, Series 2002A,
5.750%, 10/01/21 - RAAI Insured
4,700 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,737,506
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
4,259 Texas General Services Commission, Participation Interests, 9/04 at 100.50 A 4,328,717
Series 1992, 7.500%, 9/01/22
8,500 Travis County Health Facilities Development Corporation, 5/04 at 102.00 Aaa 8,706,550
Texas, Hospital Revenue Bonds, Daughters of Charity
National Health System, Series 1993B, 6.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 6.7%
4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding 12/08 at 101.00 N/R 4,276,245
Bonds, South Davis Community Hospital Project, Series 1998,
5.750%, 12/15/18
17,570 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 19,342,286
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 - MBIA Insured
Intermountain Power Agency, Utah, Power Supply Revenue
Bonds, Series 1996A:
5,065 6.150%, 7/01/14 7/06 at 102.00 A+*** 5,582,339
2,935 6.150%, 7/01/14 7/06 at 102.00 A+ 3,191,783
1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,474,649
Water Revenue Bonds, Series 2004, 5.000%, 7/01/21
660 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 664,277
Series 2000G, 5.875%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 2001C:
2,270 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 2,365,794
675 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aa2 690,809
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.5%
8,190 Hampton, Virginia, Convention Center Revenue Bonds, 1/13 at 100.00 AAA 8,192,211
Series 2002, 5.000%, 1/15/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.7%
1,050 King County, Bellevue, Washington, Water and Sewer Revenue 7/04 at 100.00 Aa2 1,057,455
Refunding Bonds, Series 1994, 5.875%, 7/01/09
1,855 Chelan County Public Utility District 1, Washington, Hydro 7/09 at 101.00 AA 1,957,118
Consolidated System Revenue Bonds, Series 1999A,
6.200%, 7/01/34 (Alternative Minimum Tax)
1,035 Covington Water District, Washington, Water Improvement 3/05 at 100.00 AAA 1,075,810
and Revenue Refunding Bonds, Series 1995, 6.050%, 3/01/20
(Pre-refunded to 3/01/05) - AMBAC Insured
1,655 Everett, Washington, General Obligation Bonds, Limited Tax, 9/07 at 100.00 Aaa 1,728,399
Series 1997, 5.125%, 9/01/17 - FSA Insured
1,000 Seattle Indian Services Commission, Washington, Special 11/04 at 100.00 AAA 1,020,330
Obligation Bonds, Series 1994, 6.000%, 11/01/16
1,633 Skagit County Housing Authority, Washington, GNMA 11/04 at 104.00 AAA 1,710,665
Collateralized Mortgage Loan Nursing Facility Revenue
Bonds, Sea Mar Community Project, Series 1993,
7.000%, 6/20/35
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 1,500 Snohomish County School District 6, Mukilteo, Washington, No Opt. Call AAA $ 1,695,810
Unlimited Tax General Obligation and Refunding Bonds,
Series 1993, 5.700%, 12/01/12 - FGIC Insured
1,570 Spokane Downtown Foundation, Washington, Parking Revenue 8/08 at 102.00 D 1,099,000
Bonds, River Park Square Project, Series 1998, 5.600%, 8/01/19#
8,155 City of Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 8,944,404
Bonds, Series 2001A, 5.750%, 1/01/20 - FSA Insured
4,705 City of Tacoma, Washington, Sewer Revenue Refunding Bonds, No Opt. Call AAA 5,719,492
Series 1994B, 8.000%, 12/01/08 - FGIC Insured
4,970 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 4,756,737
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
2,000 Washington State Healthcare Facilities Authority, Revenue 8/08 at 102.00 AA 1,982,720
Bonds, Highline Community Hospital, Series 1998,
5.000%, 8/15/21 - RAAI Insured
1,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 993,940
Bonds, Harrison Memorial Hospital, Series 1998,
5.000%, 8/15/28 - AMBAC Insured
Washington Public Power Supply System, Revenue Refunding Bonds,
Nuclear Project 2, Series 1990A:
6,080 7.250%, 7/01/06 No Opt. Call Aaa 6,769,958
395 7.250%, 7/01/06 No Opt. Call Aaa 438,422
11,000 Washington Public Power Supply System, Nuclear Project 3 No Opt. Call Aaa 12,979,230
Revenue Refunding Bonds, Series 1993B, 7.000%, 7/01/09
4,700 Washington Public Power Supply System, Nuclear Project 3 7/08 at 102.00 Aaa 4,858,202
Revenue Refunding Bonds, Series 1998A, 5.125%, 7/01/18
1,400 Washington State University, Housing and Dining System 10/04 at 101.00 AAA 1,444,252
Revenue and Refunding Bonds, Series 1994, 6.375%, 10/01/18
(Pre-refunded to 10/01/04) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4%
7,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 101.00 AAA 7,621,875
Bonds, Ministry Health Care, Inc., Series 2002A,
5.250%, 2/15/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 940,872 Total Long-Term Investments (cost $865,309,932) - 156.8% 879,594,515
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.3%
5,000 Connecticut Health and Educational Facilities Authority, Revenue A-1+ 5,000,000
Bonds, Adjustable Rate Demand Obligations, Yale
University, Series 1997, 1.050%, 7/01/29+
2,300 Fulton County Residential Care Facilities Authority, Georgia, A-1+ 2,300,000
Revenue Refunding Bonds, Lenbrook Square Foundation, Inc.,
Variable Rate Demand Obligations, Series 1996,
1.150%, 1/01/18+
------------------------------------------------------------------------------------------------------------------------------------
$ 7,300 Total Short-Term Investments (cost $7,300,000) 7,300,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $872,609,932) - 158.1% 886,894,515
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 12,587,345
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.3)% (338,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 561,081,860
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
# Non-income producing security, in the case of a bond,
generally denotes that issuer has defaulted on the
payment of principal or interest or has filed for
bankruptcy.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
37
Statement of
ASSETS AND LIABILITIES April 30, 2004 (Unaudited)
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $1,384,905,384,
$925,172,048 and $872,609,932, respectively) $1,429,061,079 $951,750,667 $886,894,515
Receivables:
Interest 24,516,068 15,286,869 16,064,491
Investments sold 40,543,015 383,273 7,240,103
Other assets 73,749 42,873 64,372
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,494,193,911 967,463,682 910,263,481
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 6,673,323 244,754 5,168,290
Payable for investments purchased 25,992,373 8,497,807 4,973,229
Accrued expenses:
Management fees 746,303 495,697 466,021
Other 222,967 133,264 146,021
Preferred share dividends payable 44,073 29,584 28,060
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 33,679,039 9,401,106 10,781,621
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 525,000,000 347,000,000 338,400,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 935,514,872 $611,062,576 $561,081,860
====================================================================================================================================
Common shares outstanding 63,785,430 41,093,661 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.67 $ 14.87 $ 12.98
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 410,937 $ 432,367
Paid-in surplus 901,328,041 570,811,783 587,100,504
Undistributed net investment income 11,099,541 7,954,808 4,675,435
Accumulated net realized gain (loss) from investments (21,706,259) 5,306,429 (45,411,029)
Net unrealized appreciation of investments 44,155,695 26,578,619 14,284,583
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 935,514,872 $611,062,576 $561,081,860
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
====================================================================================================================================
See accompanying notes to financial statements.
38
Statement of
OPERATIONS Six Months Ended April 30, 2004 (Unaudited)
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 38,429,227 $ 25,129,082 $24,105,546
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,578,609 3,044,537 2,857,875
Preferred shares - auction fees 654,452 432,561 421,841
Preferred shares - dividend disbursing agent fees 29,917 29,917 39,891
Shareholders' servicing agent fees and expenses 96,314 33,020 46,955
Custodian's fees and expenses 142,981 94,987 86,900
Directors' fees and expenses 10,114 6,876 6,171
Professional fees 101,802 24,587 87,893
Shareholders' reports - printing and mailing expenses 88,319 54,594 53,566
Stock exchange listing fees 12,037 7,881 8,273
Investor relations expense 71,399 46,215 44,676
Other expenses 39,247 28,127 28,229
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 5,825,191 3,803,302 3,682,270
Custodian fee credit (8,556) (7,785) (21,672)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,816,635 3,795,517 3,660,598
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 32,612,592 21,333,565 20,444,948
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 3,095,776 5,610,398 296,649
Change in net unrealized appreciation (depreciation) of investments (15,287,029) (13,943,250) (7,795,595)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (12,191,253) (8,332,852) (7,498,946)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,333,712) (1,512,362) (1,507,671)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares from operations $ 18,087,627 $ 11,488,351 $11,438,331
====================================================================================================================================
See accompanying notes to financial statements.
39
Statement of
CHANGES IN NET ASSETS (Unaudited)
PREMIUM INCOME (NPI) PREMIUM INCOME 2 (NPM) PREMIUM INCOME 4 (NPT)
----------------------------- ------------------------------ -----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
4/30/04 10/31/03 4/30/04 10/31/03 4/30/04 10/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 32,612,592 $ 66,922,169 $ 21,333,565 $ 44,271,502 $ 20,444,948 $ 40,340,813
Net realized gain (loss) from
investments 3,095,776 (6,491,900) 5,610,398 (393,349) 296,649 (24,848,241)
Change in net unrealized
appreciation
(depreciation)
of investments (15,287,029) 4,768,442 (13,943,250) (3,831,125) (7,795,595) 11,357,979
Distributions to Preferred Shareholders:
From net investment income (2,333,712) (4,760,721) (1,512,362) (2,914,759) (1,507,671) (3,107,195)
From accumulated net realized gains
from investments -- -- -- (384,068) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations 18,087,627 60,437,990 11,488,351 36,748,201 11,438,331 23,743,356
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (30,884,949) (60,851,307) (20,341,371) (40,327,811) (19,132,258) (36,928,470)
From accumulated net realized
gains from investments -- -- -- (4,164,058) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares from
distributions to
Common shareholders (30,884,949) (60,851,307) (20,341,371) (44,491,869) (19,132,258) (36,928,470)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (12,797,322) (413,317) (8,853,020) (7,743,668) (7,693,927) (13,185,114)
Net assets applicable to Common
shares at the beginning
of period 948,312,194 948,725,511 619,915,596 627,659,264 568,775,787 581,960,901
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $935,514,872 $948,312,194 $611,062,576 $619,915,596 $561,081,860 $568,775,787
====================================================================================================================================
Undistributed net investment
income at the end of period $ 11,099,541 $ 11,705,610 $ 7,954,808 $ 8,474,976 $ 4,675,435 $ 4,870,416
====================================================================================================================================
See accompanying notes to financial statements.
40
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
Common share New York Stock Exchange symbols are Nuveen Premium Income Municipal
Fund, Inc. (NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen
Premium Income Municipal Fund 4, Inc. (NPT). The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Directors of the Funds, or its designee, may establish a fair value
for the security. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At April 30, 2004,
Premium Income (NPI) and Premium Income 2 (NPM) had when-issued and delayed
delivery purchase commitments of $16,043,362 and $8,497,807, respectively. There
were no such outstanding purchase commitments in Premium Income 4 (NPT).
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal income
tax, to retain such tax-exempt status when distributed to shareholders of the
Funds.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
41
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set pursuant to a dutch
auction process by the auction agent, and is payable at or near the end of each
rate period. The number of Preferred shares outstanding, by Series and in total,
for each Fund is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,800 2,000 2,200
Series M2 2,000 -- --
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series W2 -- -- 520
Series TH 3,800 3,000 2,680
Series F 3,800 2,000 1,800
Series F2 -- 1,880 1,328
--------------------------------------------------------------------------------
Total 21,000 13,880 13,536
================================================================================
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended April 30, 2004.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, its Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
None of the Funds engaged in transactions in their own shares during the six
months ended April 30, 2004, nor during the fiscal year ended October 31, 2003.
42
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the six months ended April 30, 2004, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Purchases $118,447,318 $119,624,706 $43,723,421
Sales and maturities 123,174,377 121,171,324 26,863,544
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At April 30, 2004, the cost of investments were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Cost of investments $1,383,974,907 $924,737,611 $871,945,612
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2004, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 62,301,529 $34,573,843 $ 36,732,471
Depreciation (17,215,357) (7,560,787) (21,783,568)
--------------------------------------------------------------------------------
Net unrealized appreciation
of investments $ 45,086,172 $27,013,056 $ 14,948,903
================================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2003, the Funds' last fiscal year end, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Undistributed net tax-exempt income $15,582,555 $10,923,354 $6,663,985
Undistributed net ordinary income * 283,509 258,828 768,631
Undistributed net long-term capital gains -- -- --
================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal year ended October 31,
2003, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $65,547,346 $43,115,363 $39,962,183
Distributions from net ordinary income * -- 153,898 100,446
Distributions from net long-term capital gains -- 4,545,182 --
==========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
43
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At October 31, 2003, the Funds' last fiscal year end, the Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Expiration year:
2008 $12,335,442 $ -- $ 2,835,520
2009 -- -- --
2010 6,203,091 -- 18,079,555
2011 6,263,502 308,379 24,792,603
--------------------------------------------------------------------------------
Total $24,802,035 $308,379 $45,707,678
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., each
Fund pays an annual management fee, payable monthly, at the rates set forth
below, which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
As approved by the Board of Directors, a complex-wide fee schedule for all Funds
managed by the Adviser and its affiliates will go into effect on August 1, 2004.
This complex wide fee schedule is expected to marginally decrease the rate at
which management fees are to be paid by the Funds. Under no circumstances will
the complex-wide fee schedule result in an increase in the rate at which
management fees would by paid by the Funds if the complex-wide fee schedule were
not implemented.
44
6. INVESTMENT COMPOSITION
At April 30, 2004, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Consumer Staples 3% 3% 5%
Education and Civic Organizations 7 5 6
Healthcare 11 10 11
Housing/Multifamily 3 5 7
Housing/Single Family 5 5 2
Tax Obligation/General 19 24 15
Tax Obligation/Limited 22 16 16
Transportation 9 5 6
U.S. Guaranteed 9 13 12
Utilities 8 11 13
Water and Sewer 2 1 6
Other 2 2 1
--------------------------------------------------------------------------------
100% 100% 100%
================================================================================
Certain investments owned by the Funds are either covered by insurance issued by
several private insurers or are backed by an escrow or trust containing U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest in the event of default (57% for Premium
Income (NPI), 56% for Premium Income 2 (NPM) and 59% for Premium Income 4
(NPT)). Such insurance or escrow, however, does not guarantee the market value
of the municipal securities or the value of any of the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2004, to shareholders of record on
May 15, 2004, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0800 $.0815 $.0710
================================================================================
45
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PREMIUM INCOME (NPI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) $14.87 $ .51 $ (.19) $(.04) $ -- $ .28 $(.48) $ -- $ (.48)
2003 14.87 1.05 (.03) (.07) -- .95 (.95) -- (.95)
2002 15.27 1.10 (.48) (.11) -- .51 (.91) -- (.91)
2001 14.23 1.12 .98 (.26) -- 1.84 (.80) -- (.80)
2000 13.46 1.11 .78 (.33) -- 1.56 (.79) -- (.79)
1999 15.66 1.09 (2.10) (.24) (.02) (1.27) (.85) (.07) (.92)
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) 15.09 .52 (.20) (.04) -- .28 (.50) -- (.50)
2003 15.27 1.08 (.10) (.07) (.01) .90 (.98) (.10) (1.08)
2002 15.53 1.17 (.30) (.11) (.01) .75 (.96) (.05) (1.01)
2001 14.75 1.21 .73 (.27) -- 1.67 (.89) -- (.89)
2000 14.61 1.22 .20 (.34) -- 1.08 (.92) (.02) (.94)
1999 16.15 1.18 (1.48) (.24) (.01) (.55) (.94) (.04) (.98)
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) 13.15 .47 (.17) (.03) -- .27 (.44) -- (.44)
2003 13.46 .93 (.32) (.07) -- .54 (.85) -- (.85)
2002 14.22 1.00 (.80) (.11) -- .09 (.85) -- (.85)
2001 13.54 1.08 .66 (.25) -- 1.49 (.81) -- (.81)
2000 13.50 1.11 .07 (.32) -- .86 (.82) -- (.82)
1999 15.05 1.09 (1.56) (.24) -- (.71) (.83) -- (.83)
====================================================================================================================================
Total Returns
----------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
============================================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) $ -- $14.67 $13.2000 (2.94)% 1.85%
2003 -- 14.87 14.0600 6.48 6.58
2002 -- 14.87 14.1100 5.51 3.47
2001 -- 15.27 14.2500 26.60 13.22
2000 -- 14.23 11.9375 4.10 12.03
1999 (.01) 13.46 12.2500 (14.03) (8.59)
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) -- 14.87 13.4700 (2.23) 1.76
2003 -- 15.09 14.2500 6.57 6.07
2002 -- 15.27 14.4000 5.59 5.03
2001 -- 15.53 14.6100 17.31 11.63
2000 -- 14.75 13.2500 (2.03) 7.71
1999 (.01) 14.61 14.5000 (8.59) (3.66)
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) -- 12.98 11.8000 (2.47) 2.01
2003 -- 13.15 12.5200 3.09 4.12
2002 -- 13.46 12.9700 .52 .76
2001 -- 14.22 13.7500 18.68 11.28
2000 -- 13.54 12.3125 3.28 6.58
1999 (.01) 13.50 12.7500 (8.77) (5.03)
============================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Before Credit After Credit***
------------------------------ ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
=========================================================================================================================
PREMIUM INCOME (NPI)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) $935,515 1.20%* 6.74%* 1.20%* 6.74%* 8%
2003 948,312 1.22 7.02 1.22 7.02 24
2002 948,726 1.22 7.39 1.22 7.39 4
2001 974,272 1.22 7.49 1.21 7.50 20
2000 907,640 1.28 8.09 1.27 8.10 18
1999 858,491 1.18 7.28 1.17 7.29 15
PREMIUM INCOME 2 (NPM)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) 611,063 1.20* 6.74* 1.20* 6.74* 12
2003 619,916 1.22 7.06 1.21 7.07 21
2002 627,659 1.22 7.70 1.21 7.71 21
2001 638,365 1.23 7.93 1.21 7.95 12
2000 605,973 1.23 8.38 1.22 8.39 7
1999 600,481 1.15 7.60 1.15 7.60 5
PREMIUM INCOME 4 (NPT)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004 (a) 561,082 1.27* 7.04* 1.26* 7.05* 3
2003 568,776 1.36 6.95 1.35 6.96 17
2002 581,961 1.36 7.36 1.35 7.37 16
2001 614,989 1.34 7.73 1.33 7.74 10
2000 585,387 1.27 8.22 1.26 8.23 14
1999 583,541 1.20 7.51 1.20 7.51 14
=========================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
===================================================================
PREMIUM INCOME (NPI)
-------------------------------------------------------------------
Year Ended 10/31:
2004 (a) $525,000 $25,000 $69,548
2003 525,000 25,000 70,158
2002 525,000 25,000 70,177
2001 525,000 25,000 71,394
2000 525,000 25,000 68,221
1999 525,000 25,000 65,881
PREMIUM INCOME 2 (NPM)
-------------------------------------------------------------------
Year Ended 10/31:
2004 (a) 347,000 25,000 69,025
2003 347,000 25,000 69,663
2002 347,000 25,000 70,220
2001 347,000 25,000 70,992
2000 347,000 25,000 68,658
1999 347,000 25,000 68,262
PREMIUM INCOME 4 (NPT)
-------------------------------------------------------------------
Year Ended 10/31:
2004 (a) 338,400 25,000 66,451
2003 338,400 25,000 67,019
2002 338,400 25,000 67,983
2001 338,400 25,000 70,434
2000 338,400 25,000 68,247
1999 338,400 25,000 68,110
===================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended April 30, 2004.
See accompanying notes to financial statements.
46-47 spread
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
48
Fund
INFORMATION
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
Anne E. Impellizzeri*
William L. Kissick*
Thomas E. Leafstrand*
Peter R. Sawers*
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington*
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows each Fund, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Duration: Duration is a measure of a bond or bond fund's sensitivity to
changes in interest rates. Generally, the longer a bond or fund's duration, the
more the price of the bond or fund will change as interest rates change.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
----------
*Director will be retiring on June 30, 2004.
Each Fund intends to repurchase shares of its own common or preferred stock,
where applicable, in the future at such times and in such amounts as is deemed
advisable. No shares were purchased during the six-months ended April 30, 2004.
Any future repurchases will be reported to shareholders in the next annual or
semiannual report.
49
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $100 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
ESA-E-0404D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Premium Income Municipal Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: July 8, 2004
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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: July 8, 2004
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: July 8, 2004
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.