SEMIANNUAL REPORT April 30, 2002
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
PREMIUM INCOME
NPI
NPM
NPT
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.
THE NUVEEN
INVESTOR
SEE PAGE 7
2 photos: Families fishing.
LOGO: NUVEEN INVESTMENTS
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Logo: NUVEEN Investments
Dear
SHAREHOLDER
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "I URGE YOU TO CONSIDER RECEIVING FUTURE FUND REPORTS AND OTHER
INFORMATION ELECTRONICALLY ...SEE THE INSIDE FRONT COVER OF THIS REPORT FOR
DETAILED INSTRUCTIONS."
I am pleased to report that during the period covered by this report, your Fund
continued to meet its primary objective of providing attractive tax-free monthly
income, while at the same time offering opportunities to reduce overall
portfolio volatility. Detailed information on your Fund's performance can be
found in the Portfolio Manager's Comments and Performance Overview sections of
this report. I urge you to take the time to read them.
I also urge you to consider receiving future Fund reports and other information
electronically via the Internet and e-mail rather than in hard copy. Not only
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In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy. These include careful research, constant
surveillance and judicious trading by Nuveen's seasoned portfolio management
team, with every action designed to supplement income, improve Fund structure,
better adapt to current market conditions or increase diversification. In
uncertain markets like these, prudent investors understand the importance of
diversification, balance, and risk management, all attributes your Nuveen Fund
can bring to your portfolio.
For more than 100 years, Nuveen has specialized in offering quality investments
such as these Nuveen Funds to those seeking to accumulate and preserve wealth.
Our mission continues to be to assist you and your financial advisor by offering
the investment services and products that can help you meet your financial
objectives. We thank you for continuing to choose Nuveen Investments as a
partner as you work toward that goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 15, 2002
1
Nuveen Municipal Closed-End Exchange-Traded Funds
(NPI, NPM, NPT)
Portfolio Manager's
COMMENTS
Portfolio manager Tom Futrell examines economic and market conditions, key
strategies, and the performance of these Nuveen Municipal Closed-End
Exchange-Traded Funds. Tom, who joined Nuveen in 1983, has managed NPI since
1988, and NPM and NPT since late 2001.
WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL
MARKET DURING THIS REPORTING PERIOD?
The two major forces at work during the twelve months ended April 30, 2002, were
the general slowdown in economic growth and the Federal Reserve's aggressive
easing of short-term interest rates. In addition, the events of September 11,
2001, and the uncertain geopolitical climate that followed also have impacted
the economy and the markets.
In the municipal markets, the generally sluggish economic environment of the
past twelve months helped many securities perform well. In addition, the trend
toward increased issuance remained strong. Looking at the first four months of
2002, new issue supply reached $87 billion, up about 10% over January-April
2001. On the demand side, municipal bonds continued to be highly sought after by
individual investors looking for diversification, tax-free income and an
alternative to a volatile stock market. Institutional investors, especially
traditional purchasers such as property/casualty insurance companies and pension
plans, also have been active buyers in the new issue market.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST TWELVE MONTHS?
For the year ended April 30, 2002, these Nuveen Funds produced total annual
returns on net asset value (NAV) as shown in the accompanying table. The annual
returns for the Lehman Brothers Municipal Bond Index1 and relevant Lipper Peer
Group2 are also presented.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
-------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
4/30/02 EQUIVALENT3 4/30/02 4/30/02 4/30/02
-------------------------------------------------------------------------
NPI 6.45% 9.21% 7.31% 7.00% 8.22%
-------------------------------------------------------------------------
NPM 6.70% 9.57% 7.27% 7.00% 8.22%
-------------------------------------------------------------------------
NPT 6.55% 9.36% 4.29% 7.00% 8.22%
-------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Over the past twelve months, the Fed's policy to reduce short-term interest
rates, combined with generally favorable market conditions, created a positive
total return environment for municipal bonds. This participation in the market's
gains is reflected, in part, in the total returns on NAV for NPI and NPM listed
in the previous table. The performance of these Funds was roughly in line with
its peer group and the general market. NPT's relative underperformance over this
period was due primarily to the extent and timing of bond calls within its
portfolio, as well as to credit issues with a few specific holdings. NPT
continues to hold issues from two separate multifamily housing projects, the
Keystone at Fall Creek Apartments in Indianapolis, Indiana, and the Trinity
project in Oklahoma County, Oklahoma. Both of these projects are now in default
and have fallen behind in interest payments. Nuveen is actively pursuing a
resolution to these situations that we believe will serve the best interests of
shareholders. In the meantime, it is important to note that, overall, NPT's
portfolio is in good shape, and the Fund continued to offer shareholders
attractive monthly tax-free dividends.
HOW DID THE MARKET ENVIRONMENT AFFECT THESE FUNDS' DIVIDENDS AND SHARE PRICES?
With the Fed's policy of interest rate easing over the past year, the
dividend-payment capabilities
1 The performance of these Funds is compared with that of the Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 These Funds' total returns are compared with the average annualized return
of the 50 funds in the Lipper General Leveraged Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the fund's market
yield on the indicated date and a federal income tax rate of 30%.
4 Duration is a measure of a Fund's 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. Unless otherwise noted, references to duration
in this commentary are intended to indicate Fund duration.
2
of all these Funds benefited from the use of leverage, a strategy that can
potentially enhance the dividends paid to common shareholders. The amount of
this benefit is tied in part to the short-term rates the Funds pay their
MuniPreferred shareholders. For example, low short-term rates can enable the
Funds to reduce the amount of income they pay preferred shareholders, which can
leave more earnings to support common share dividends.
During the year ended April 30, 2002, steady or falling short-term interest
rates enabled us to implement a series of dividend increases in all three Funds.
In coming months, the lower rates now being offered by municipal securities with
shorter maturities could potentially continue to benefit common shareholders of
these Funds. However, this benefit could be offset by the effect of bond calls
on higher-yielding securities, especially if refundings increase as the result
of lower rates. The level of short-term rates, the number of bond calls, and the
interest rates at which we can reinvest the proceeds of any calls will all
influence the dividends of these Nuveen Funds over the next twelve months.
Over the past year, the share prices of these Funds remained relatively stable
(see the charts on the individual Performance Overview pages). Each saw their
discount (share price below NAV) narrow over the twelve months ended April 30,
2002.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE YEAR ENDED
APRIL 30, 2002?
Two areas of emphasis during this reporting period were enhancing the
dividend-paying capabilities of the Funds and improving their call protection.
Given the current level of interest rates, our general approach was to hold
higher-yielding bonds subject to calls for as long as practical to help support
the Funds' dividends, while we looked for attractive replacement opportunities.
When investing call proceeds, we focused on essential services (such as water
and sewer systems), some selected housing and industrial development issues, and
certain general obligations bonds. When we were able to obtain attractive
prices, we selectively sold some multi-family housing and tobacco-settlement
bonds from all three portfolios.
We also were trying to shorten each of the Funds' duration modestly by buying
bonds with about 20 years to maturity. These bonds can provide yields similar to
those offered by 30-year bonds, but they have shorter durations4 which make them
less sensitive to interest rate changes. While each of the Funds has some
current call exposure, particularly NPM, we believe that in each case the call
positions are very manageable, and we foresee no problems reinvesting call
proceeds.
In view of investor concerns in the current market environment, we made an
effort to maintain strong credit quality in each Fund. Each of these Funds had
allocations of AAA and AA rated bonds ranging from 76% in NPT to 85% in NPI as
of April 30, 2002. Each of these Funds also had a portion of its assets invested
in BBB and non-rated bonds, which helped their dividend-paying capabilities.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS
IN PARTICULAR?
In general, our outlook for the fixed-income markets over the next twelve months
remains positive. We believe the U.S. economy is headed for recovery, but one
that may take longer and see a slower pace of growth than some are now
predicting. We believe inflation and interest rates should remain relatively low
over the near term, and we think new municipal issuance should continue to be
strong. We anticipate the demand for tax-exempt municipal bonds will remain firm
as investors look for ways to rebalance their portfolios and reduce risk.
We plan to remain focused on strategies that add value for our shareholders,
provide support for the Funds' dividends, and fully utilize Nuveen's experience
and research expertise. As noted, shareholders may see these Funds' durations
shorten somewhat as part of the process of reinvesting proceeds from called
bonds in bonds with about 20 years to maturity.
Overall, we believe these Funds can continue to play an important role in
investors' long-range financial programs, providing balance and diversification,
dependable tax-free income, and a measure of security in uncertain times. We
believe the Funds currently are well diversified and well positioned for the
market environment ahead, and we will continue to closely monitor and respond to
events as appropriate.
3
Nuveen Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of April 30, 2002
NPI
[PIE CHART]
CREDIT QUALITY
AAA/U.S. GUARANTEED 69%
AA 16%
A 11%
BBB 1%
NR 2%
OTHER 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.04
--------------------------------------------------
Common Share Net Asset Value $14.82
--------------------------------------------------
Market Yield 6.45%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.21%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $945,496
--------------------------------------------------
Average Effective Maturity (Years) 20.27
--------------------------------------------------
Leverage-Adjusted Duration 10.20
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 7/88)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 11.93% 7.31%
--------------------------------------------------
5-Year 6.35% 6.13%
--------------------------------------------------
10-Year 5.17% 6.33%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
Utilities 13%
--------------------------------------------------
Tax Obligation/General 13%
--------------------------------------------------
Housing/Single Family 12%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/01 0.0665
6/01 0.0685
7/01 0.0685
8/01 0.0685
9/01 0.0705
10/01 0.0705
11/01 0.0705
12/01 0.073
1/02 0.073
2/02 0.073
3/02 0.0755
4/02 0.0755
[LINE CHART]
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
5/1/01 13.52
13.5
13.42
13.36
13.42
13.57
13.57
13.59
13.95
13.89
13.87
13.71
13.82
14.01
14.22
14.13
14.3
14.3
14.34
14.29
13.8
14.11
14.17
14.07
14.12
14.12
14.48
14.26
13.98
13.97
14.04
13.73
13.59
13.6
13.61
13.9
13.95
14.22
14.15
14.15
14.12
14.08
14.2
14.25
13.85
13.63
13.56
13.73
13.72
13.77
13.7
4/30/02 13.87
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2001 of $0.0013 per share.
4
Nuveen Premium Income Municipal Fund 2, Inc.
Performance
OVERVIEW As of April 30, 2002
NPM
[PIE CHART]
CREDIT QUALITY
AAA/U.S. GUARANTEED 66%
AA 13%
A 17%
BBB 1%
N/R 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.42
--------------------------------------------------
Common Share Net Asset Value $15.05
--------------------------------------------------
Market Yield 6.70%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.57%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $618,612
--------------------------------------------------
Average Effective Maturity (Years) 14.54
--------------------------------------------------
Leverage-Adjusted Duration 8.99
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 7/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 8.58% 7.27%
--------------------------------------------------
5-Year 6.37% 6.48%
--------------------------------------------------
Since Inception 6.26% 7.15%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 28%
--------------------------------------------------
Tax Obligation/General 24%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
Housing/Single Family 10%
--------------------------------------------------
Utilities 6%
--------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/01 0.073
6/01 0.075
7/01 0.075
8/01 0.075
9/01 0.0765
10/01 0.0765
11/01 0.0765
12/01 0.078
1/02 0.078
2/02 0.078
3/02 0.0805
4/02 0.0805
[LINE CHART]
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
5/1/01 14.3
14.29
14.12
14.12
14.26
14.36
14.23
14.48
14.51
14.57
14.38
14.38
14.59
14.59
14.87
14.78
14.76
14.88
14.86
14.89
13.75
14.62
14.86
14.46
14.5
14.65
14.68
14.88
14.51
14.4
14.46
14.14
13.84
13.75
13.89
14.07
14.38
14.4
14.32
14.65
14.73
14.7
14.67
14.72
14.42
14.12
14
14.11
14.29
14.28
14.05
4/30/02 14.23
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2001 of $0.0478 per share.
5
Nuveen Premium Income Municipal Fund 4, Inc.
Performance
OVERVIEW As of April 30, 2002
NPT
[PIE CHART]
CREDIT QUALITY
AAA/U.S. GUARANTEED 57%
AA 19%
A 11%
BBB 3%
NR 9%
OTHER 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.00
--------------------------------------------------
Common Share Net Asset Value $13.48
--------------------------------------------------
Market Yield 6.55%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.36%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $583,034
--------------------------------------------------
Average Effective Maturity (Years) 17.42
--------------------------------------------------
Leverage-Adjusted Duration 10.48
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 2/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 6.44% 4.29%
--------------------------------------------------
5-Year 6.50% 5.31%
--------------------------------------------------
Since Inception 4.77% 5.52%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 16%
--------------------------------------------------
Housing/Multifamily 14%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Tax Obligation/General 13%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
[BAR CHART]
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/01 0.0665
6/01 0.0685
7/01 0.0685
8/01 0.0685
9/01 0.07
10/01 0.07
11/01 0.07
12/01 0.071
1/02 0.071
2/02 0.071
3/02 0.071
4/02 0.071
[LINE CHART]
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
5/1/01 13.22
13.06
13.1
12.88
13.05
13.32
13.25
13.2
13.48
13.59
13.38
13.39
13.45
13.4
13.8
13.59
13.71
13.89
13.8
13.74
12.75
13.5
13.62
13.5
13.57
13.6
13.86
13.79
13.56
13.44
13.75
13.33
12.91
13.1
13.08
13.4
13.27
13.45
13.27
13.4
13.67
13.58
13.61
13.69
13.05
12.92
12.8
12.9
12.75
12.83
12.73
4/30/02 12.87
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
6
THE NUVEEN
INVESTOR
VI
PHOTO OF: 2 boys walking with baseball mitts and bat.
BOND SURVEILLANCE - A HIGH PRIORITY AT NUVEEN
The Enron scandal has raised numerous questions about the real value of American
securities. Investors want to know what safeguards are in place to inspire their
trust and ensure their holdings are dependable. The Nuveen Investor recently
spoke with David Blair, Assistant Vice President and Senior Analyst at Nuveen,
about the research and surveillance processes used for Nuveen funds.
DO NUVEEN'S RESEARCH ANALYSTS EVALUATE BONDS PRIOR TO PURCHASE?
We evaluate factors impacting market sectors, issuers and specific bonds and
assign credit ratings to bonds we consider for purchase. We seek to purchase
bonds with stable and improving credit characteristics, which have attractive
prices and yields relative to other bonds in their sectors.
HOW DO YOU CONDUCT YOUR RESEARCH?
We conduct detailed analyses that often involve site visits and discussions with
managers of the projects being financed. Since Nuveen is a major investor with
large buying power, issuers and project managers are willing to listen to us and
respond to our concerns.
IS THE RESEARCH AND ANALYSIS PROCESS ANY DIFFERENT WHEN CONSIDERING HIGH-YIELD
BONDS?
Up to 20 percent of some funds can be invested in below investment grade bonds
to help the fund attain a higher yield. This underscores the need for research.
If one of our 16 analysts believes a high-yield bond should be purchased, a
second analyst reviews the issue as well.
HOW DO YOU MONITOR THE VARIOUS BONDS ONCE THEY'VE BEEN PURCHASED?
We have a proprietary database with information and analysis on the bonds Nuveen
holds in its funds. Among other things, we are able to evaluate risk exposure to
sectors, issuers and specific bonds on an on-going basis.
HOW DOES THE RESEARCH DEPARTMENT COMMUNICATE THE INFORMATION GATHERED?
We conduct biweekly meetings within the research department and weekly meetings
with portfolio managers. We also write-up our findings and distribute them with
"buy," "hold" or "sell" recommendations to portfolio managers.
(continued on page 9)
Volume ONE 2002
INSIDE
7 Bond Surveillance -
A High Priority at Nuveen
8 Is it Time to Rethink
Your Bond Strategy?
9 Many Investors Continue
to Find Solutions with Professional Advice
10 Fund Reports
Available Online
10 ETFConnect:
The Source for All Exchange-Traded Funds
(c)2002 Nuveen Investments.
All rights reserved.
LOGO: NUVEEN INVESTMENTS
7
VI
IS IT TIME TO RETHINK YOUR BOND STRATEGY?
Significant stock market losses in recent history have sent many investors
toward bonds as a way to potentially cut their losses and balance equity-
dominated portfolios. While many consider bonds a set-and-forget investment,
there are several circumstances that might prompt you to reassess -- and perhaps
revamp -- your bond holdings.
TAX BRACKET CHANGES
The Economic Growth and Tax Relief Reconciliation Act of 2001 has dropped tax
brackets a percentage point this year, but a higher salary, large bonus, sale of
assets or retirement may push you into a higher tax bracket for 2002.
If you are in a higher tax bracket and want to generate an income stream without
raising your tax burden, tax-free municipal bonds may be a prudent option. Even
if you are in a lower tax bracket, municipal bonds could make sense. The
question is whether municipal or taxable bonds will deliver a better taxable
yield.
RETIREMENT PLANS CHANGE
Whether you are near retirement or are currently enjoying it, you may want to
consider rebalancing your retirement accounts with less stock and more bonds, to
potentially reduce risk and try to preserve the assets that you have
accumulated. If you are just entering retirement you may want to make tax-free
municipal bonds a part of your portfolio to emphasize income generation and
protection from taxation.
RISK TOLERANCE CHANGES
The recent market volatility and market downturn may have caused many investors
to reevaluate their tolerance for risk. On the other hand, your portfolio might
have performed well over the last few years and you may not need to take on
extra risk to meet your long-term goals. In either situation you could take a
look at your bond portfolio and determine whether you need to make changes to
correspond with your tolerance for risk.
PORTFOLIO CHANGES
If you make significant changes to one or more of your investments, you'll want
to look at your portfolio as a whole, particularly with regard to overall asset
allocation. You may need to do some rebalancing to stay on track with your
investment strategy.
Your financial advisor can help. Regardless of how your circumstances change, he
or she can provide up-to-date information on the bond market and various funds
to help you decide how to maximize your returns consistent with your short- and
long-term financial goals.
No investment is risk free and some investments carry more risk than others. It
is important to know what the risks are, to evaluate them against any potential
rewards, and to determine your tolerance for risk when selecting an investment.
Photo of: bridge to lighthouse
Photo of: 2 toddlers playing
The Nuveen Investor Vol 02.1
LOGO: Nuveen Investments
8
photo: clouds
photo: woman and girl
VI
MANY INVESTORS CONTINUE TO FIND SOLUTIONS WITH PROFESSIONAL ADVICE
For many investors, current financial markets are confusing and frustrating.
According to research conducted for the Forum for Investor Advice*, that's the
number one reason many turn to a financial advisor. They want someone to suggest
ideas and provide consultation, dialogue and professional advice.
Investors say their advisors are helpful in other key ways, including...
o Saving time. After consultation, investors note that the second most
important reason for using an advisor is to have someone else monitor their
portfolio, reducing the amount of time they spend on investing.
o Help in sorting through information. Investors in the 21st century have
more products from which to choose than in the past. For example, there are
approximately 8,000 mutual funds today, up from 3,000 in 1990.
o Assistance in setting financial goals. According to investors who use a
financial advisor, they are more likely to have a plan for a specific
financial goal than do-it-yourself investors.
o Staying focused. Advisor-assisted investors are more likely than
do-it-yourself investors to have developed a comprehensive investment
program.
o Peace of mind. Investors say their comfort level in all types of markets is
higher when using an advisor for a "second opinion" on an investment
decision.
*The survey of 324 investors was conducted in December of 2000 by Market Facts
and analyzed by New York based Neuwirth Research. Of the 324, 166 said they had
an ongoing relationship with a financial advisor, while 157 described themselves
as do-it-yourselfers.
--------------------------------------------------------------------------------
(continued from page 7)
HOW ARE PROBLEM BONDS IDENTIFIED AND HANDLED?
We conduct surveillance on our bonds on a regular basis to ensure, among other
things, that deteriorating bonds are identified early. We then discuss any
emerging problems and potential courses of action with the portfolio manager.
HOW MANY ISSUES DOES THE RESEARCH DEPARTMENT FOLLOW?
We follow 12 sectors and 1,500 uninsured bonds, worth about $18 billion of
Nuveen's $45 billion in total municipal assets. The remaining $27 billion in
municipal assets are insured or escrowed (backed by Treasury bonds). For the
insured bonds, we monitor closely on a regular basis the insurers guaranteeing
the bonds.
WILL RESEARCH AND SURVEILLANCE CHANGE IN LIGHT OF PROBLEMS WITH ENRON
SECURITIES?
Overall, our investment process and surveillance have worked well and been
effective. However, we meet as a group on a regular basis and are constantly
evaluating ways to improve the process to respond to issues and the market
environment.
The Nuveen Investor Vol 02.1
LOGO: Nuveen Investments
9
VI
LOOK AHEAD...
FUND REPORTS AVAILABLE ONLINE
Nuveen Fund information is now available online. Once you register, you'll
receive an e-mail notice with a link to your Fund's reports and other
information just as soon as it is ready. Registering takes only a few minutes.
If you receive statements from a brokerage firm or financial advisor, go to
WWW.INVESTORDELIVERY.COM. Enter your personal 13-character enrollment number
imprinted on the address sheet of this report near your name. From the options
on the follow-up page, select the New Enrollment-Create screen. Once there,
enter your e-mail address and a personal, four-digit PIN. Hit the Submit button.
Confirm the information you entered is correct, then hit Submit again.
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If you receive statements directly from Nuveen, go to WWW.NUVEEN.COM. Select the
Access Your Account tab, then select E-Report Enrollment. Finally, click on the
Enrollment Page. Once there, you'll need to provide your social security number
and e-mail address. Click on Enroll.
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After registering, you should receive a confirming e-mail within 24 hours. If
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cancel Internet viewing. The e-mail address you provide is strictly confidential
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The information in this newsletter should not be construed as specific tax or
investment advice. Contact your advisor for information about your particular
situation.
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ETFCONNECT: THE SOURCE FOR ALL EXCHANGE-TRADED FUNDS
Last fall, Nuveen launched ETFConnect, the industry's first website featuring
all-encompassing information on exchanged-traded funds. Whatever you're looking
for in the world of Index ETFs or Closed-End Exchange-Traded Funds - prices,
NAVs, dividend information, performance histories, new developments - this is
the place. Highlights include Quick Facts sheets for more than 500 funds, a
multi-fund search capability, website links, a list of fund sponsors, tools for
portfolio tracking, and a continually updated education center. Check out
WWW.ETFCONNECT.COM.
[picture of etfconnect.com website]
The Nuveen Investor Vol 02.1
Logo: Nuveen Investments
10
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.0%
$ 9,050 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, 6/10 at 102.00 Aa1 $ 9,337,881
Series 2000, 6.125%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.1%
10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 Aa3 10,338,600
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.9%
8,350 Industrial Development Authority, Pima County, Arizona, Industrial 7/02 at 103.00 AAA 8,758,733
Development Lease Obligation Refunding Revenue Bonds
(Irvington Project), 1988 Series A, 7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1%
3,500 Arkansas Development Finance Authority, Drivers License Revenue 6/07 at 100.00 AAA 3,581,725
Bonds (Arkansas State Police Headquarters and Wireless Data
Equipment), Series 1997, 5.400%, 6/01/18
580 City of Paragould, Arkansas, Water, Sewer and Electric Revenue 12/10 at 100.00 AAA 601,031
Bonds, Series 2000, 5.650%, 12/01/25
1,000 Community Junior College District, Sebastian County, Arkansas, 4/09 at 100.00 AAA 1,132,110
General Obligation Improvement Bonds, Series 1999,
5.950%, 4/01/29 (Pre-refunded to 4/01/09)
5,245 Board of Trustees of the University of Arkansas, Athletic Facilities 9/09 at 100.00 Aaa 5,249,511
Revenue Bonds (Razorback Stadium Project), Series 1999,
5.050%, 9/15/20
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.2%
10,250 State of California, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AAA 10,695,568
Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax)
23,725 State Public Works Board of California, Lease Revenue Refunding 6/03 at 102.00 Aa2 23,981,467
Bonds (The Regents of the University of California) (Various
University of California Projects), 1993 Series A, 5.500%, 6/01/21
11,395 State Public Works Board of California, Lease Revenue Bonds No Opt. Call A 12,330,188
(Department of Corrections) (California State Prison-Madera
County (II)), 1993 Series E, 5.500%, 6/01/15
15,420 Los Angeles Convention and Exhibition Center Authority, California, 8/03 at 102.00 AAA 15,914,057
Lease Revenue Bonds, 1993 Refunding Series A, 5.375%, 8/15/18
1,285 City of Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,867,208
1983 Issue A, 10.750%, 2/01/16
4,125 Redevelopment Agency of the City of Moorpark, California, 10/03 at 102.00 N/R*** 4,447,864
1993 Tax Allocation Bonds (Moorpark Redevelopment Project),
6.125%, 10/01/18 (Pre-refunded to 10/01/03)
20,000 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 25,576,400
Refunding Bonds (GNMA and FNMA Mortgage-Backed
Securities), Series 1990A, 7.600%, 5/01/23
3,000 Sacramento Municipal Utility District. California, Electric 11/03 at 102.00 AAA 3,024,480
Revenue Refunding Bonds, 1993 Series D, 5.250%, 11/15/20
San Bernardino Joint Powers Financing Authority, California,
Tax Allocation Refunding Bonds, Series 1995A:
6,675 5.750%, 10/01/15 10/05 at 102.00 AAA 7,218,145
10,000 5.750%, 10/01/25 10/05 at 102.00 AAA 10,591,300
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.7%
2,350 Colorado Housing and Finance Authority, Senior Single Family 4/10 at 105.00 AA 2,614,399
Program Bonds, 2000 Series B-2, 7.250%, 10/01/31
(Alternative Minimum Tax)
3,725 Colorado Housing and Finance Authority, Senior Single Family 5/07 at 105.00 Aa2 3,879,141
Program Bonds, 1997 Series B-2, 7.000%, 5/01/26 (Alternative
Minimum Tax)
2,465 Colorado Housing and Finance Authority, Senior Single Family 11/07 at 105.00 Aa2 2,557,659
Program Bonds, 1997 Series C-2, 6.875%, 11/01/28 (Alternative
Minimum Tax)
11
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 9,450 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call A $ 11,358,617
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
715 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102.00 Aaa 749,563
(Pre-refunded to 11/15/02)
2,785 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102.00 A 2,896,929
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992C:
1,830 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102.00 Aaa 1,913,668
(Pre-refunded to 11/15/02)
6,870 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102.00 A 7,127,762
19,810 City and County of Denver, Colorado, Excise Tax Revenue Bonds 3/11 at 100.00 AAA 20,805,056
(Colorado Convention Center Project), Series 2001A, 5.500%, 9/01/18
13,315 City and County of Denver, Colorado, Special Facilities Airport 10/02 at 102.00 B+ 8,650,622
Revenue Bonds (United Airlines Project), Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax)
342 El Paso County, Colorado, Single Family Mortgage Revenue No Opt. Call Aaa 364,280
Tax-Exempt Refunding Bonds, Series 1992A Class A-2,
8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
1,930 State of Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,118,735
5.500%, 12/15/16
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.7%
9,505 District of Columbia, Washington D.C., General Obligation Bonds, No Opt. Call AAA 10,718,598
Series 1998B, 6.000%, 6/01/20
14,800 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103.00 AAA 15,122,492
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 10,402,992
Medical Colleges Issue), Series 1997A, 5.375%, 2/15/27
16,665 District of Columbia, University Revenue Bonds (Georgetown 4/11 at 29.23 AAA 2,835,550
University Issue), Series 2001A, 0.000%, 4/01/32
5,370 Tobacco Settlement Financing Corporation, District of Columbia, No Opt. Call A1 5,474,769
Tobacco Settlement Asset-Backed Bonds, Series 2001,
6.500%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.6%
9,290 State of Florida, Full Faith and Credit, Department of 7/05 at 101.00 AAA 10,212,776
Transportation, Right-of-Way Acquisition and Bridge Construction
Bonds, Series 1995, 5.800%, 7/01/21 (Pre-refunded to 7/01/05)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A- 5,248,150
Revenue Bonds (Adventist Health System-Sunbelt Obligated
Group), Series 2000, 6.500%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.9%
4,560 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax No Opt. Call AAA 5,303,645
Revenue Bonds, Refunding Series P, 6.250%, 7/01/20
2,750 Savannah Housing Authority, Georgia, Mortgage Revenue 5/08 at 103.00 Aaa 2,901,085
Bonds (Plantation Oak) (GNMA Collateralized), Refunding
Series 2000, 6.350%, 11/20/39
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.5%
5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, 9/10 at 100.00 Aaa 5,054,550
Series 2000, 5.500%, 9/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.7%
10,000 City of Chicago, Illinois, General Obligation Bonds, Project 1/11 at 101.00 AAA 9,440,100
and Refunding Series 2001A, 5.000%, 1/01/31
9,220 Chicago School Reform Board of Trustees of the Board 12/07 at 102.00 AAA 9,107,055
of Education, Illinois, General Obligation - Unlimited Tax Bonds
(Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/27
9,000 City of Chicago, Illinois, O'Hare International Airport, Special No Opt. Call N/R 4,780,620
Facility Revenue Bonds (United Airlines Project), Series 2001A,
6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory
put 5/01/13)
4,530 City of Chicago, Illinois, O'Hare International Airport, 1/04 at 102.00 AAA 4,493,262
General Airport Second Lien Revenue Refunding Bonds,
Series 1993C, 5.000%, 1/01/18
12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 2,315 City of Chicago, Illinois, Collateralized Single Family Mortgage 3/06 at 105.00 Aaa $ 2,500,339
Revenue Bonds, Series 1996-A, 7.000%, 9/01/27
(Alternative Minimum Tax)
4,600 City of Chicago, Illinois, Collateralized Single Family Mortgage 9/07 at 105.00 Aaa 4,909,856
Revenue Bonds, Series 1997-B, 6.950%, 9/01/28
(Alternative Minimum Tax)
8,740 Illinois Development Finance Authority, Pollution Control 2/04 at 102.00 AAA 8,893,911
Refunding Revenue Bonds (Illinois Power Company Project),
1994 Series A, 5.700%, 2/01/24
8,500 Illinois Educational Facilities Authority, Revenue Refunding 7/03 at 102.00 Aa1 8,609,650
Bonds (The University of Chicago), Series 1993B,
5.600%, 7/01/24
5,015 Illinois Health Facilities Authority, Revenue Bonds (Highland 10/02 at 102.00 AAA 5,210,485
Park Hospital Project), Series 1992, 6.200%, 10/01/22
(Pre-refunded to 10/01/02)
1,500 Illinois Health Facilities Authority, Revenue Bonds (Highland 10/07 at 102.00 AAA 1,692,885
Park Hospital Project), Series 1997A, 5.750%, 10/01/26
(Pre-refunded to 10/01/07)
13,545 Illinois Health Facilities Authority, Revenue Bonds (Sherman 8/07 at 101.00 AAA 13,082,709
Health Systems), Series 1997, 5.250%, 8/01/27
5,000 Illinois Health Facilities Authority, Revenue Bonds (Edward 2/11 at 101.00 AAA 4,889,200
Hospital Obligation Group), Series 2001B, 5.250%, 2/15/34
9,200 Metropolitan Pier and Exposition Authority, Illinois, 12/09 at 101.00 AAA 9,409,852
McCormick Place Expansion Project Bonds, Series 1999A,
5.500%, 12/15/24
3,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 3,769,350
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 5,969,051
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/06
785 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 951,412
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992B, 9.000%, 6/01/06
3,000 Upper Illinois River Valley Development Authority, Healthcare 12/11 at 101.00 BBB+ 3,079,110
Facilities Revenue Bonds (Morris Hospital), Series 2001,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.4%
5,000 Center Grove 2000 Building Corporation, Indiana, First 7/11 at 100.00 AAA 5,091,750
Mortgage Bonds, Series 2001, 5.500%, 1/15/26
4,300 Indiana State Office Building Commission, Correctional Facilities 7/05 at 102.00 AAA 4,403,458
Program Revenue Bonds, Series 1995A, 5.500%, 7/01/20
8,000 Metropolitan School District, Middle School Building Corporation, 7/05 at 102.00 AAA 9,002,640
Steuben County, Indiana, First Mortgage Bonds, Series 1995,
6.375%, 7/15/16 (Pre-refunded to 7/15/05)
7,965 Wawasee Community School Corporation, New Elementary 1/12 at 101.00 AA- 8,357,276
and Remodeling Building Corporation, Indiana, First Mortgage
Bonds, Series 2000, 5.750%, 1/15/20
5,300 Middle School Building Corporation, City of Columbia, Whitley 1/04 at 102.00 AAA 5,737,621
County, Indiana, First Mortgage Bonds, Series 1994,
6.250%, 7/15/15 (Pre-refunded to 1/15/04)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.4%
City of Des Moines, Iowa, General Obligation Bonds, Series 2000D:
1,215 5.750%, 6/01/17 6/08 at 100.00 AAA 1,280,804
1,410 5.800%, 6/01/18 6/08 at 100.00 AAA 1,487,014
3,000 Iowa Finance Authority, Private College Refunding Revenue 12/05 at 102.00 AAA 3,089,370
Bonds (Drake University Project), Series 1996, 5.400%, 12/01/16
5,140 Iowa Finance Authority, Industrial Revenue Refunding Bonds 7/14 at 100.00 AAA 6,984,952
(Urbandale Hotel Corporation Project), Remarketed 1989 Series A,
8.500%, 8/01/16 (Alternative Minimum Tax) (Pre-refunded
to 7/15/14)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.3%
11,000 Sedgwick County, Kansas and Shawnee County, Kansas, 6/08 at 105.00 Aaa 12,101,100
Single Family Mortgage Revenue Bonds (Mortgaged-Backed
Securities Program), 1998 Series A1, 6.500%, 12/01/22
(Alternative Minimum Tax)
13
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.0%
$ 2,605 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa $ 2,971,706
Revenue Bonds (Home Ownership Program), 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 13,332,775
Tax Bonds, Series 1995-B, 6.375%, 7/01/25 (Pre-refunded
to 7/01/05)
7,660 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 9,647,004
Revenue Bonds (Comm-Care Corporation Project), Series 1994,
11.000%, 2/01/14
13,660 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 A1 12,320,227
Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4%
3,600 Housing Opportunities Commission, Montgomery County, 7/10 at 100.00 Aaa 3,761,316
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.3%
10,000 Massachusetts Bay Transportation Authority, Massachusetts, 7/10 at 100.00 AAA 10,002,500
Assessment Bonds, 2000 Series A, 5.250%, 7/01/30
13,000 The Commonwealth of Massachusetts, General Obligation Bonds 6/10 at 100.00 Aa2*** 14,814,410
(Consolidated Loan of 2000), Series B, 6.000%, 6/01/16
(Pre-refunded to 6/01/10)
4,790 Massachusetts Development Finance Agency, Assisted Living 9/10 at 105.00 AAA 5,654,499
Facility Revenue Bonds (The Monastery at West Springfield
Project) (GNMA Collateralized), Series 1999A, 7.625%, 3/20/41
(Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,355,881
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 14,783,778
Bonds (Suffolk University), Series 1997, 5.250%, 7/01/27
8,750 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 8,934,013
Mortgage Revenue Bonds, Series 2001A, 5.850%, 7/01/35
(Alternative Minimum Tax)
2,580 Massachusetts Water Resources Authority, General Revenue 7/02 at 100.00 Aaa 2,601,233
Bonds, 1992 Series A, 5.500%, 7/15/22 (Pre-refunded to 7/15/02)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.2%
4,000 School District of the City of Detroit, Wayne County, Michigan, 5/03 at 102.00 AAA 4,082,840
School Building and Site Improvement and Refunding Bonds
(General Obligation - Unlimited Tax), Series 1993, 5.400%, 5/01/13
10,550 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 100.00 AAA 10,246,266
Refunding Bonds, Series 1995-B, 5.000%, 7/01/25
Hudsonville Public Schools, Counties of Ottawa and Allegan,
Michigan, 1997 School Building and Site and Refunding Bonds
(General Obligation - Unlimited Tax):
10,510 5.150%, 5/01/22 5/08 at 100.00 AAA 10,517,988
8,045 5.150%, 5/01/27 5/08 at 100.00 AAA 7,952,483
9,625 Livonia Public Schools District, Wayne County, Michigan, 5/03 at 102.00 AAA 9,750,991
1993 Refunding Bonds (General Obligation - Unlimited Tax),
5.500%, 5/01/21
6,600 Michigan State Housing Development Authority, Limited 7/07 at 102.00 AAA 6,647,520
Obligation Multifamily Mortgage Revenue Refunding Bonds
(Forest Hills Regency Square Project), Series 1999A, 5.750%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.0%
City of Eden Prairie, Minnesota, Multifamily Housing Revenue
Bonds (Rolling Hills Project) (GNMA Collateralized Mortgage
Loan), Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105.00 Aaa 1,090,490
2,000 6.200%, 2/20/43 8/11 at 105.00 Aaa 2,192,940
1,870 Minneapolis-St. Paul Housing Finance Board, Minnesota, 11/04 at 102.00 AAA 1,933,917
Single Family Mortgage Revenue Bonds (Minneapolis-St. Paul
Family Housing Program - Phase X) ( FNMA and GNMA
Mortgage-Backed Securities Program), Series 1994,
7.500%, 11/01/27 (Alternative Minimum Tax)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101.00 AAA 2,968,320
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/22
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 5,000 Minnesota Agricultural and Economic Development Board, 11/07 at 102.00 AAA $ 5,161,750
Healthcare System Revenue Bonds (Fairview Hospital and
Healthcare Services), Series 1997A, 5.750%, 11/15/26
20,310 Housing and Redevelopment Authority, City of St. Paul, 11/15 at 103.00 AAA 24,573,069
Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center
Project), Series 1996, 7.100%, 11/01/23
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 5.6%
5,380 Missouri Housing Development Commission, Single Family 3/07 at 105.00 AAA 5,800,393
Mortgage Revenue Bonds (Homeownership Loan Program),
1996 Series C, 7.450%, 9/01/27 (Alternative Minimum Tax)
Health and Educational Facilities Authority, Missouri, Revenue
Bonds (SSM Health Care), Series 2001A:
3,000 5.250%, 6/01/21 6/11 at 101.00 AAA 3,026,760
14,150 5.250%, 6/01/28 6/11 at 101.00 AAA 14,137,265
15,875 Missouri Housing Development Commission, Single Family 3/09 at 103.00 AAA 17,188,974
Mortgage Revenue Bonds (Homeownership Loan Program),
1999 Series B-1, 6.700%, 9/01/30 (Alternative Minimum Tax)
11,120 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 13,081,457
General Obligation Refunding Bonds, Series 1994A,
7.800%, 3/01/08
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.1%
8,500 Omaha, Nebraska, General Obligation Bonds (Convention No Opt. Call AAA 10,257,800
Center Project), Series 2000A, 6.500%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.6%
15,000 Clark County, Nevada, General Obligation Bond Bank (Southern 6/11 at 100.00 AAA 15,004,650
Nevada Water Authority Loan), Series 2001, 5.250%, 6/01/26
14,810 Clark County School District, Nevada, General Obligation Bonds, 12/11 at 100.00 AAA 15,513,475
Series 2001F, 5.500%, 6/15/18
12,000 Director of the State of Nevada, Department of Business and 1/10 at 100.00 AAA 11,884,080
Industry, Revenue Bonds (Las Vegas Monorail Project),
1st Tier Series 2000, 5.375%, 1/01/40
29,410 Colorado River Commission, Nevada, Revenue Supported Bonds 7/04 at 101.00 AA 29,800,565
(General Obligation - Limited Tax), Series 1994, 5.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.1%
8,120 New Hampshire Housing Finance Authority, Single Family Mortgage 7/03 at 102.00 Aa2 8,272,331
Revenue Bonds, 1993 Series B, 6.050%, 7/01/25
6,500 New Hampshire Business Finance Authority, Pollution Control 10/03 at 102.00 A3 6,503,575
Refunding Revenue Bonds (The United Illuminating Company
Project), 1993 Series A, 5.875%, 10/01/33
4,830 New Hampshire Housing Finance Authority, Single Family 7/06 at 102.00 Aa2 4,976,011
Mortgage Acquisition Revenue Bonds, 1996 Series B,
6.400%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.3%
10,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 10,500,500
Port District Project Bonds, 1999 Series B, 5.625%, 1/01/26
10,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 10,905,800
Obligation Guaranteed Lease Revenue Bonds (County Correctional
Facility Project), Series 2000, 6.000%, 10/01/25
15,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/07 at 101.50 AAA 15,333,900
Revenue Bonds, 1997 Series U, 5.850%, 4/01/29 (Alternative
Minimum Tax)
11,500 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 13,113,680
Series 2000A, 6.000%, 1/01/14
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.2%
1,890 New Mexico Mortgage Finance Authority, Single Family Mortgage 7/02 at 102.00 AAA 1,925,060
Purchase Refunding Senior Bonds, 1992 Series A2,
6.900%, 7/01/24
2,755 Mew Mexico Mortgage Finance Authority, Single Family 3/10 at 102.50 AAA 3,121,691
Mortgage Program Bonds, 2000 Series D-2, 6.850%, 9/01/31
(Alternative Minimum Tax)
5,585 Santa Fe County, New Mexico, Correctional System Revenue No Opt. Call AAA 6,307,141
Bonds, Series 1997, 6.000%, 2/01/27
15
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.8%
$ 15,500 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101.00 A1 $ 15,962,675
New York, Tobacco Settlement Asset-Backed Bonds (Senior),
Series 2000, 6.250%, 7/15/40
13,700 Long Island Power Authority, New York, Electric System 6/08 at 101.00 A- 13,540,806
General Revenue Bonds, Series 1998A, 5.250%, 12/01/26
10,000 New York Counties Tobacco Trust I, New York, Tobacco 6/10 at 101.00 A1 10,470,400
Settlement Pass-through Bonds, Series 2000, 6.500%, 6/01/35
10,000 The City of New York, New York, General Obligation Bonds, 2/06 at 101.50 A 10,835,600
Fiscal 1996 Series G, 5.750%, 2/01/07
The City of New York, New York, General Obligation Bonds, Fiscal
1997 Series G:
100 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 115,265
5,900 6.000%, 10/15/26 10/07 at 101.00 A 6,193,466
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series B:
6,020 9.500%, 6/01/03 No Opt. Call A*** 6,502,503
1,480 9.500%, 6/01/03 No Opt. Call A 1,591,725
16,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 17,339,360
Water and Sewer System Revenue Bonds, Fiscal 1996 Series B,
5.750%, 6/15/26
2,000 Dormitory Authority of the State of New York, Revenue Bonds 7/06 at 102.00 AAA 2,035,920
(Department of Health Issue), Series 1996, 5.500%, 7/01/25
4,000 New York State Energy Research and Development Authority, 3/03 at 102.00 A+ 4,101,000
Facilities Revenue Bonds (Consolidated Edison Company of
New York, Inc. Project), Series 1993A, 6.000%, 3/15/28
(Alternative Minimum Tax)
4,160 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 4,400,698
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, 1993 Series B, 5.500%, 2/15/22
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.2%
9,650 Dickinson, North Dakota, Healthcare Facilities Revenue Bonds 2/10 at 102.00 AA 11,312,792
(BHS Long-Term Care, Inc.), Series 1990, 7.625%, 2/15/20
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.9%
4,265 Franklin County, Ohio, Hospital Improvement Revenue Bonds 5/11 at 101.00 Aaa 4,364,460
(The Children's Hospital Project), Series 2001, 5.500%, 5/01/28
12,360 State of Ohio, Turnpike Revenue Bonds (Issued by the Ohio 2/04 at 102.00 Aaa 13,306,900
Turnpike Commission), 1994 Series A, 5.750%, 2/15/24
(Pre-refunded to 2/15/04)
2,000 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 2,094,020
Bonds (MedCentral Health System Obligated Group), Series 2000A,
6.125%, 11/15/16
7,000 City of Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100.00 A3 7,329,490
and Improvement Bonds (Trinity Health System), Series 2000,
6.500%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.5%
12,875 Allegheny County Hospital Development Authority, Pennsylvania, 11/02 at 100.00 AAA 13,171,898
Health Center Revenue Bonds (Presbyterian University Health
System, Inc. Project), Series 1992A, 6.250%, 11/01/23
(Pre-refunded to 11/01/02)
14,650 Delaware Valley Regional Finance Authority, Counties of Bucks, No Opt. Call AAA 15,319,505
Chester, Delaware and Montgomery, Pennsylvania, Local
Government Revenue Bonds, 1998 Series A, 5.500%, 8/01/28
10,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102.00 AA+ 10,132,200
Revenue Bonds, Series 37A, 5.450%, 10/01/17
8,405 Redevelopment Authority of Philadelphia, Pennsylvania, 4/08 at 103.00 N/R 7,777,231
Multifamily Housing Mortgage Revenue Bonds (Cricket Court
Commons Project), Series 1998A, 6.200%, 4/01/25 (Alternative
Minimum Tax)
5,295 The School District of Philadelphia, Pennsylvania, General 9/05 at 101.00 AAA 5,386,286
Obligation Bonds, 1995 Series B, 5.500%, 9/01/25
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.6%
5,250 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 5,303,445
Series X, 5.500%, 7/01/25
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.1%
$ 10,000 Rhode Island Housing and Mortgage Finance Corporation, 10/09 at 100.00 AA+ $ 10,113,500
Homeownership Opportunity Bonds, Series 35-A,
5.800%, 10/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.3%
12,500 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 A1 12,563,875
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.2%
10,305 Alliance Airport Authority, Inc., Texas, Special Facilities 6/02 at 101.00 BB 9,604,672
Revenue Bonds (American Airlines Project), Series 1990,
7.500%, 12/01/29 (Alternative Minimum Tax)
3,289 Austin Housing Finance Corporation, Texas, Multifamily Housing 12/10 at 105.00 Aaa 3,714,662
Revenue Bonds (Fairway Village Project) (GNMA Collateralized
Mortgage Loan), Series 2000A, 7.375%, 6/20/35
(Alternative Minimum Tax)
5,025 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 5,486,044
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 6.000%, 2/15/16
2,925 Harlingen Housing Finance Corporation, Texas, Single Family 9/10 at 105.00 AAA 3,211,738
Mortgage Revenue Bonds, Series 2000A, 6.700%, 9/01/33
(Alternative Minimum Tax)
20,000 Houston Sports Authority, Harris County, Texas, Junior Lien 11/11 at 100.00 AAA 19,187,200
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40
15,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102.00 AAA 15,584,100
Bonds, Series 1994, 5.300%, 8/15/13
Harris County Hospital District, Texas, Refunding Revenue Bonds,
Series 1990:
4,205 7.400%, 2/15/10 No Opt. Call AAA 4,844,538
6,670 7.400%, 2/15/10 No Opt. Call AAA 7,775,219
15,000 Harris County Housing Finance Corporation, Texas, Multifamily 12/10 at 105.00 N/R 15,083,400
Housing Bonds (Coolwood Oaks and Haverstock Hill Apartments),
Series A, 8.250%, 12/01/31
19,125 Harris County Hospital District, Texas, Refunding Revenue Bonds, 8/10 at 100.00 AAA 20,725,763
Series 2000, 6.000%, 2/15/15
1,343 Heart of Texas Housing Finance Corporation, Multifamily Housing 9/10 at 105.00 Aaa 1,514,944
Revenue Bonds (Parkside Village Project) (GNMA Collateralized
Mortgage Loan), Series 2000A, 7.400%, 9/20/35
(Alternative Minimum Tax)
6,000 City of Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 6,376,860
Bonds, Series 2001B, 5.500%, 3/01/15
9,250 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 9,312,715
Bonds, Series 2000B, 5.500%, 7/01/30
4,000 Health Facilities Development Corporation, Tarrant County, 11/10 at 101.00 A- 4,195,600
Texas, Hospital Revenue Bonds (Adventist Health System-
Sunbelt Obligated Group), Series 2000, 6.700%, 11/15/30
12,020 Health Facilities Development Corporation, Tarrant County, 12/10 at 105.00 Aaa 14,174,224
Texas, Mortgage Revenue Bonds (Eastview Nursing Home,
Ebony Lake Nursing Center, Ft. Stockton Nursing Center, Lynnhaven
Nursing Center and Mission Oaks Manor) (GNMA Collateralized
Mortgage Loan), 2000A-1, 7.625%, 12/20/32
10,000 Board of Regents of the Texas A&M University, Revenue 5/09 at 100.00 AAA 10,153,900
Financing System Bonds, Series 1999, 5.550%, 5/15/29
11,905 Texas Department of Housing and Community Affairs, Residential 1/09 at 101.00 AAA 11,484,634
Mortgage Revenue Bonds, Series 1998A, 5.350%, 7/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.7%
6,655 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 6,732,265
1997 Series F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.3%
12,510 Vermont Housing Finance Agency, Single Family Housing 6/07 at 101.50 AAA 12,726,298
Bonds, Series 9, 5.900%, 5/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
5,000 City of Virginia Beach Development Authority, Virginia, 10/14 at 100.00 N/R 4,962,300
Multifamily Residential Rental Housing Revenue Bonds
(Mayfair I and Mayfair II Apartments Project), Series 1999,
7.500%, 10/01/39
17
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 18.5%
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 $ 11,503,106
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 7,755,040
put 7/01/09) (Mandatory put 7/01/27)
5,000 Snohomish County, Washington, General Obligation - 12/11 at 100.00 AAA 4,941,900
Limited Tax Bonds, Series 2001, 5.250%, 12/01/26
6,360 Public Utility District No. 1 of Snohomish County, Washington, 1/03 at 100.00 AAA 6,449,676
Generation System Revenue Bonds, Series 1993,
5.500%, 1/01/14
4,750 Washington Health Care Facilities Authority, Revenue Bonds 11/08 at 101.00 Aaa 4,661,175
(Swedish Health Services), Series 1998, 5.125%, 11/15/22
11,000 Washington Health Care Facilities Authority, Revenue Bonds 8/13 at 102.00 AAA 10,454,620
(Harrison Memorial Hospital), Series 1998, 5.000%, 8/15/28
Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1993B:
80 5.600%, 7/01/15 (Pre-refunded to 7/01/03) 7/03 at 102.00 AAA 84,830
29,790 5.600%, 7/01/15 7/03 at 102.00 AAA 31,114,463
12,950 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102.00 AAA 13,414,517
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1993A:
10,775 5.750%, 7/01/12 (Pre-refunded to 7/01/03) 7/03 at 102.00 Aa1*** 11,441,434
3,665 5.750%, 7/01/12 7/03 at 102.00 Aa1 3,785,322
6,770 Washington Public Power Supply System, Nuclear Project No. 2 7/03 at 102.00 Aa1*** 7,179,043
Refunding Revenue Bonds, Series 1993B, 5.625%, 7/01/12
(Pre-refunded to 7/01/03)
14,500 Washington Public Power Supply System, Nuclear Project No. 2 7/08 at 102.00 Aa1 14,975,165
Refunding Revenue Bonds, Series 1998A, 5.000%, 7/01/12
22,880 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102.00 Aa1 23,217,251
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1997A:
5,220 5.250%, 7/01/14 7/07 at 102.00 AAA 5,400,716
9,350 5.250%, 7/01/15 7/07 at 102.00 Aa1 9,559,347
7,775 Washington Public Power Supply System, Nuclear Project No. 3 7/08 at 102.00 Aa1 7,740,634
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.5%
14,065 West Virginia Housing Development Fund, Housing Finance 5/02 at 102.00 AAA 14,358,813
Bonds, 1992 Series D, 7.050%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.2%
2,175 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 100.00 BBB 2,170,732
Bonds (Carroll College, Inc. Project), Series 2001,
6.125%, 10/01/16
------------------------------------------------------------------------------------------------------------------------------------
$ 1,401,959 Total Investments (cost $1,397,884,226) - 152.8% 1,444,559,042
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 25,936,859
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.5)% (525,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $945,495,901
====================================================================================================================
* 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. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
18
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.6%
$ 3,500 Anchorage Parking Authority, Alaska, Lease Revenue Refunding 12/02 at 102.00 A+*** $ 3,672,200
Bonds (5th Avenue Garage Project), Series 1993, 6.750%, 12/01/08
(Pre-refunded to 12/01/02)
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.9%
2,850 Industrial Development Authority, Maricopa County, Arizona, 1/07 at 102.00 AAA 3,295,712
Multifamily Housing Revenue Bonds (Place Five and the Greenery
Apartments Projects), Series 1996A, 6.625%, 1/01/27
Industrial Development Authority, Mohave County, Arizona, Hospital
System Revenue Refunding Bonds (Medical Environments, Inc.
and Phoenix Baptist Hospital and Medical Center, Inc.), Series 1993:
3,965 6.250%, 7/01/03 No Opt. Call Aaa 4,080,619
3,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102.00 Aaa 3,220,410
3,625 Industrial Development Authority, Pima County, Arizona, 7/02 at 103.00 AAA 3,802,444
Industrial Development Lease Obligation Refunding Revenue
Bonds (Irvington Project), 1988 Series A, 7.250%, 7/15/10
9,000 Civic Improvement Corporation, Phoenix, Arizona, Wastewater 7/03 at 102.00 AAA 9,598,770
System Lease Revenue Bonds, Series 1993, 6.125%, 7/01/14
(Pre-refunded to 7/01/03)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 19.7%
California Educational Facilities Authority, Revenue Bonds (Loyola
Marymount University), Refunding Series 2001A:
3,255 0.000%, 10/01/23 No Opt. Call Aaa 985,842
5,890 0.000%, 10/01/24 No Opt. Call Aaa 1,683,480
7,615 0.000%, 10/01/25 No Opt. Call Aaa 2,053,537
7,710 State of California, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AAA 8,045,154
Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax)
5,690 Department of Veterans Affairs of the State of California, 6/12 at 101.00 AAA 5,725,278
Home Purchase Revenue Bonds, Series 2002A, 5.300%, 12/01/21
State Public Works Board of California, Lease Revenue Bonds (The
Trustees of the California State University) (Various California
State University Projects), 1992 Series A:
15,480 6.625%, 10/01/10 (Pre-refunded to 10/01/02) 10/02 at 102.00 A*** 16,122,884
10,500 6.700%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102.00 AAA 10,940,265
7,150 State Public Works Board of California, Lease Revenue 10/04 at 102.00 A*** 8,004,068
Bonds (The Trustees of the California State University)
(Various California State University Projects), 1994 Series A,
6.375%, 10/01/19 (Pre-refunded to 10/01/04)
17,500 State Public Works Board of California, Lease Revenue 11/04 at 102.00 Aaa 19,867,050
Bonds (Department of Corrections) (California State Prison -
Monterey County (Soledad II)), 1994 Series A, 6.875%,
11/01/14 (Pre-refunded to 11/01/04)
30,000 Foothill-Eastern Transportation Corridor Agency, California, No Opt. Call AAA 10,884,300
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21
3,085 Community Redevelopment Financing Authority of the 9/02 at 102.00 Ba1*** 3,186,959
Community Redevelopment Agency of Los Angeles, California,
Pooled Financing Bonds (Crenshaw Redevelopment Project),
Series D, 7.000%, 9/01/14 (Pre-refunded to 9/01/02)
5,000 Los Angeles County Public Works Finance Authority, California, 10/04 at 102.00 Aa3*** 5,567,950
Revenue Bonds (Los Angeles County Regional Park and Open
Space District), Series 1994A, 6.125%, 10/01/10
(Pre-refunded to 10/01/04)
10,000 Los Angeles County Transportation Commission, California, 7/02 at 102.00 Aaa 10,289,900
Proposition C Sales Tax Revenue Bonds (Second Senior
Bonds), Series 1992-A, 6.750%, 7/01/19 (Pre-refunded to
7/01/02)
2,035 Parlier Redevelopment Agency, California, Tax Allocation Bonds 8/02 at 102.00 BBB*** 2,102,989
(Parlier Redevelopment Project), 1992 Series A, 6.750%, 8/01/22
(Pre-refunded to 8/01/02)
19
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
Redevelopment Agency of the City and County of San Francisco,
California, Hotel Tax Revenue Bonds, Series 1994:
$ 2,390 6.750%, 7/01/15 (Pre-refunded to 7/01/04) 7/04 at 102.00 AAA $ 2,670,897
5,905 6.750%, 7/01/25 (Pre-refunded to 7/01/04) 7/04 at 102.00 AAA 6,599,015
960 6.750%, 7/01/25 7/04 at 102.00 AAA 1,061,510
5,605 San Joaquin County, California, Certificates of Participation 4/04 at 102.00 A 5,847,136
(Solid Waste System Facilities Project), Series 1994,
6.600%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.1%
275 Colorado Housing and Finance Authority, Single Family Program 12/04 at 105.00 Aa2 293,428
Senior Bonds, 1994 Series E, 8.125%, 12/01/24 (Alternative
Minimum Tax)
Colorado Housing and Finance Authority, General Obligation Bonds,
1994 Series A:
5,645 6.850%, 8/01/24 (Pre-refunded to 8/01/02) 8/02 at 102.00 A+*** 5,830,946
1,245 6.875%, 8/01/30 (Pre-refunded to 8/01/02) 8/02 at 102.00 A+*** 1,286,085
1,885 Colorado Housing and Finance Authority, Single Family Program 12/05 at 105.00 Aa2 2,004,358
Senior Bonds, 1995 Series D, 7.375%, 6/01/26
400 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 480,788
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992B:
1,445 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102.00 Aaa 1,514,851
(Pre-refunded to 11/15/02)
5,635 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102.00 A 5,861,471
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992C:
2,125 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102.00 Aaa 2,222,155
(Pre-refunded to 11/15/02)
16,120 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102.00 A 16,724,822
1,700 City and County of Denver, Colorado, Multifamily Housing 10/07 at 102.00 AAA 1,715,215
Revenue Bonds (FHA-Insured Mortgage Loan - The Boston
Lofts Project), Series 1997A, 5.750%, 10/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5%
3,170 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 3,352,687
Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.4%
District of Columbia, University Revenue Bonds (Georgetown
University Issue), Series 2001A:
11,720 0.000%, 4/01/27 4/11 at 39.61 AAA 2,717,048
13,780 0.000%, 4/01/28 4/11 at 37.21 AAA 2,999,355
15,855 0.000%, 4/01/29 4/11 at 35.07 AAA 3,249,482
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.8%
1,700 Beacon Tradeport Community Development District, Miami- 5/12 at 102.00 AA 1,719,686
Dade County, Florida, Special Assessment Bonds (Commercial
Project), Series 2002A, 5.625%, 5/01/32
5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 5,177,150
5.750%, 10/01/18 (Alternative Minimum Tax)
1,285 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 1,320,813
Revenue Bonds, 2000 Series 11, 5.850%, 1/01/22 (Alternative
Minimum Tax)
2,850 State of Florida, Full Faith and Credit, Department of 7/05 at 101.00 AAA 3,139,532
Transportation, Right-of-Way Acquisition and Bridge Construction
Bonds, Series 1995, 5.875%, 7/01/24 (Pre-refunded to 7/01/05)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2%
5,500 City of Atlanta, Georgia, Water and Sewerage Revenue Bonds, 1/04 at 100.00 AAA 5,687,275
Series 1993, 4.500%, 1/01/18 (Pre-refunded to 1/01/04)
7,000 Development Authority of Burke County, Georgia, Pollution 1/03 at 103.00 AAA 7,497,420
Control Revenue Bonds (Oglethorpe Power Corporation Vogtle
Project), Series 1992, 8.000%, 1/01/15 (Pre-refunded to 1/01/03)
615 Housing Authority of Fulton County, Georgia, Single Family 9/06 at 102.00 AAA 637,380
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities Program), Series 1996A, 6.200%, 9/01/27
(Alternative Minimum Tax)
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 2.6%
$ 1,710 Idaho Housing Finance Agency, Single Family Mortgage 7/05 at 102.00 Aaa $ 1,777,083
Revenue Bonds, Series F, 6.450%, 7/01/27 (Alternative
Minimum Tax)
3,270 Idaho Housing Finance Agency, Housing Revenue Bonds 6/05 at 102.00 Aa2 3,356,655
(Park Place Project) (FHA-Insured Mortgage), 1995 Series A,
6.500%, 12/01/36 (Alternative Minimum Tax)
3,160 Idaho Housing and Finance Association, Revenue Refunding 3/12 at 105.00 Aaa 3,687,562
Bonds (Wedgewood Terrace Project), GNMA Enhanced
Series 2002A-1, 7.250%, 3/20/37
2,185 Idaho Housing and Finance Association, Single Family Mortgage 7/06 at 102.00 Aaa 2,356,763
Bonds, 1996 Series G, 6.350%, 7/01/26 (Alternative Minimum Tax)
2,090 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 2,180,184
Bonds, 2000 Series B, 6.250%, 7/01/22 (Alternative Minimum Tax)
2,375 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 2,453,826
Bonds, 2000 Series E, 5.950%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 19.5%
5,000 City of Chicago, Illinois, General Obligation Bonds (Emergency 1/03 at 102.00 AAA 5,227,600
Telephone System), Series 1993, 5.625%, 1/01/23
(Pre-refunded to 1/01/03)
18,200 City of Chicago, Illinois, General Obligation Project Bonds, 1/06 at 102.00 AAA 17,769,570
Series 1995A-1, 5.125%, 1/01/25
1,000 City of Chicago, Illinois, General Obligation Bonds, Project and 7/08 at 102.00 AAA 1,006,190
Refunding Series 1998, 5.250%, 1/01/20
22,670 City of Chicago, Illinois, General Obligation Bonds (City Colleges No Opt. Call AAA 6,270,975
of Chicago Capital Improvement Project), Series 1999,
0.000%, 1/01/25
Chicago School Reform Board of Trustees of the Board of
Education of Chicago, Illinois, General Obligation - Unlimited
Tax Bonds (Dedicated Tax Revenues), Series 1998A:
23,800 0.000%, 12/01/20 No Opt. Call AAA 8,437,576
41,300 0.000%, 12/01/21 No Opt. Call AAA 13,747,118
5,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 1,775,450
Education of Chicago, Illinois, General Obligation - Unlimited
Tax Bonds (Dedicated Tax Revenues), Series 1999A,
0.000%, 12/01/20
8,270 City of Chicago, Illinois, Mortgage Revenue Bonds (Lakeview 6/02 at 102.00 AAA 8,438,377
Towers Project) (FHA-Insured Mortgage Loan), Series 1992,
6.650%, 12/01/33
1,175 City of Chicago, Illinois, Multifamily Housing Revenue Bonds 6/09 at 102.00 Aaa 1,188,160
(Bryn Mawr-Belle Shores Project) (GNMA Collateralized),
Series 1997, 5.800%, 6/01/23 (Alternative Minimum Tax)
10,900 Public Building Commission of Chicago, Illinois, Building 12/03 at 102.00 AAA 11,709,325
Revenue Bonds (Board of Education of the City of Chicago),
1993 Series A, 5.750%, 12/01/18 (Pre-refunded to 12/01/03)
4,010 City of Chicago, Illinois, Tax Increment Allocation Bonds 1/07 at 102.00 N/R 4,180,064
(Read-Dunning Redevelopment Project), Series 1996B,
7.250%, 1/01/14
3,530 City of Chicago, Illinois, Tax Increment Allocation Bonds (Sanitary 1/07 at 102.00 N/R 3,749,107
Drainage and Ship Canal Redevelopment Project), Series 1997A,
7.750%, 1/01/14
4,865 Cook County Community Consolidated School District No.15, No Opt. Call Aaa 1,742,886
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20
6,190 Community High School District No. 219, Niles Township, Cook No Opt. Call Aaa 2,217,568
County, Illinois, General Obligation Capital Appreciation Bonds,
Series 2001, 0.000%, 12/01/20
2,850 City of East St. Louis, Illinois, Mortgage Revenue Refunding 7/03 at 102.00 AAA 2,928,660
Bonds (Dawson Manor Apartments - Section 8 Assisted)
(FHA-Insured Mortgage Loan), Series 1994A, 6.500%, 7/01/24
6,900 Illinois Health Facilities Authority, Revenue Refunding Bonds 10/03 at 102.00 A-*** 7,314,483
(Illinois Masonic Medical Center), Series 1993, 5.500%, 10/01/19
(Pre-refunded to 10/01/03)
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds No Opt. Call A+ 3,139,710
(Lutheran General Health System), Series 1993C,
6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance Bonds,
2000 Series A:
1,165 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,200,428
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,279,823
11,000 State of Illinois, General Obligation Bonds (Illinois FIRST No Opt. Call AAA 12,384,350
Program), Series 2001, 6.000%, 11/01/26
2,000 State of Illinois, General Obligation Bonds (Illinois FIRST 2/12 at 100.00 AAA 2,095,940
Program), Series 2002, 5.500%, 2/01/18
21
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Community Unit School District No. 60, Waukegan, Lake County,
Illinois, General Obligation Bonds, Refunding Series 2001B:
$ 3,230 0.000%, 11/01/19 No Opt. Call Aaa $ 1,243,227
1,740 0.000%, 11/01/21 No Opt. Call Aaa 588,103
2,910 Community High School District No. 154, McHenry County, No Opt. Call Aaa 1,022,749
Illinois, Capital Appreciation School Bonds, Series 2001,
0.000%, 1/01/21
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.1%
1,000 Ball State University Board of Trustees, Indiana, Ball State 1/12 at 100.00 AAA 1,062,000
University Student Fee Revenue Bonds, Series 2002K,
5.750%, 7/01/20
8,000 East Chicago Elementary School Building Corporation, Lake 1/03 at 102.00 A*** 8,451,040
County, Indiana, First Mortgage Bonds, Series 1992,
7.000%, 1/15/16 (Pre-refunded to 1/15/03)
13,630 Hospital Authority of the City of Fort Wayne, Indiana, Revenue 11/02 at 102.00 A+*** 14,245,940
Bonds (Parkview Memorial Hospital, Inc. Project), Series 1992,
6.400%, 11/15/22 (Pre-refunded to 11/15/02)
6,031 City of Greenfield, Indiana, Multifamily Housing Revenue Bonds 12/05 at 105.00 Aaa 6,204,271
(Pedcor Investments L.P. Project), Series 1996A,
6.200%, 12/01/28 (Alternative Minimum Tax)
8,200 Indiana Bond Bank, Guaranteed Revenue Bonds (State Revolving 2/03 at 102.00 AAA 8,607,540
Fund Program), Series 1993A, 6.250%, 2/01/09
2,875 Indiana Bond Bank, Guaranteed Revenue Bonds (State Revolving 2/05 at 102.00 AAA 3,147,493
Fund Program), Series 1995A, 6.750%, 2/01/17
3,500 Indiana Bond Bank, Special Program Bonds (City of East Chicago 2/10 at 101.00 AAA 3,733,345
Facilities Building Corporation Project), Series 2000A,
6.125%, 2/01/25
5,250 Indiana Transportation Finance Authority, Lease Revenue Bonds 3/03 at 102.00 A1*** 5,556,443
(Aviation Technology Center), Series A, 6.500%, 3/01/18
(Pre-refunded to 3/01/03)
5,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, 12/10 at 100.00 AA 5,030,850
Series 2000, 5.375%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.0%
Tobacco Settlement Authority, Iowa, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
7,000 5.300%, 6/01/25 6/11 at 101.00 A1 5,976,460
7,300 5.600%, 6/01/35 6/11 at 101.00 A1 6,335,597
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
935 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103.00 Aa2 975,205
Refunding Bonds, Series 1994, 7.100%, 5/01/12
870 Sedgwick County, Kansas and Shawnee County, Kansas, No Opt. Call Aaa 899,771
Collateralized Single Family Mortgage Refunding Revenue
Bonds (GNMA Certificates), Series 1994A1, 7.900%, 5/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4%
2,290 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102.00 AAA 2,385,516
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.6%
2,575 Bossier Public Trust Financing Authority, Louisiana, Single Family 8/05 at 102.00 AAA 2,599,411
Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
10,185 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/05 at 102.00 Aaa 10,395,320
Single Family Mortgage Revenue Bonds (GNMA and FNMA
Mortgage-Backed Securities Program), Series 1994C,
6.350%, 10/01/28 (Alternative Minimum Tax)
4,980 New Orleans Home Mortgage Authority, Louisiana, Single 6/05 at 102.00 Aaa 5,141,003
Family Mortgage Revenue Bonds, Series 1995A,
6.300%, 6/01/28 (Alternative Minimum Tax)
4,035 Orleans Levee District (A Political Subdivision of the State of 12/05 at 103.00 AAA 4,334,397
Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/15
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.1%
$ 745 Maine State Housing Authority, Mortgage Purchase Bonds, 11/05 at 102.00 AA+ $ 775,418
1995 Series B-2, 6.300%, 11/15/26 (Alternative Minimum Tax)
6,145 Maine State Housing Authority, Mortgage Purchase Bonds, 9/02 at 102.00 AA+ 6,273,861
1990 Series A-4, 6.400%, 11/15/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.2%
965 Community Development Administration, Department of 5/03 at 102.00 Aa2 995,243
Housing and Community Development, Maryland, Multifamily
Housing Revenue Bonds (Insured Mortgage Loans), 1993 Series C,
6.625%, 5/15/23
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.7%
3,500 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 3,724,350
Resource Recovery Revenue Bonds (Eco-Springfield LLC Project),
Series 2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
9,000 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 AA 9,200,520
Revenue Bonds (Berkshire Health System Issue), Series 2001E,
5.700%, 10/01/25
3,605 Massachusetts Water Resources Authority, General Revenue 12/04 at 102.00 AAA 3,633,299
Bonds, 1993 Series C, 5.250%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.1%
Grand Rapids and Kent County Joint Building Authority, Michigan,
General Obligation - Limited Tax Bonds (Devos Place Project),
Series 2001:
7,660 0.000%, 12/01/21 No Opt. Call AAA 2,611,677
7,955 0.000%, 12/01/22 No Opt. Call AAA 2,546,793
8,260 0.000%, 12/01/23 No Opt. Call AAA 2,486,343
8,575 0.000%, 12/01/24 No Opt. Call AAA 2,425,525
8,900 0.000%, 12/01/25 No Opt. Call AAA 2,369,625
8,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/03 at 102.00 AAA 8,139,600
Refunding Bonds (Oakwood Hospital Obligated Group),
Series 1993A, 5.625%, 11/01/18
4,820 Michigan State Housing Development Authority, Rental 10/02 at 102.00 AA- 4,952,020
Housing Revenue Bonds, 1992 Series A, 6.650%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.9%
3,560 Housing and Redevelopment Authority, City of St. Paul, 12/02 at 102.00 BBB+ 3,609,199
Minnesota and City of Minneapolis, Minnesota, Healthcare
Facility Revenue Bonds (Group Health Plan, Inc. Project),
Series 1992, 6.900%, 10/15/22
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,011,160
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,413,944
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25
2,450 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 2,516,934
Bonds, 2000 Series C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
2,805 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 2,872,068
1995 Series D, 5.950%, 2/01/18
3,430 Minnesota Housing Finance Agency, Single Family Mortgage 1/06 at 102.00 AA+ 3,548,472
Bonds, 1996 Series G, 6.250%, 7/01/26
(Alternative Minimum Tax)
2,500 Minnesota Housing Finance Agency, Single Family Mortgage 1/11 at 101.00 AA+ 2,596,125
Bonds, 1998 Series H-2 Remarketed, 6.050%, 7/01/31
(Alternative Minimum Tax)
2,000 Southern Minnesota Municipal Power Agency, Power Supply 1/03 at 102.00 Aaa 2,091,720
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11
2,350 Washington County Housing and Redevelopment Authority, 1/03 at 102.00 BBB 2,385,979
Minnesota, Pooled Housing and Redevelopment Limited Annual
Appropriation Tax and Revenue Bonds (Pooled Refunding Project),
Series 1992, 7.200%, 1/01/22
5,170 Washington County Housing and Redevelopment Authority, 12/02 at 100.00 A3*** 5,341,179
Minnesota, Lease Revenue Bonds (South Washington County
Schools Project), Series 1992, 7.400%, 12/01/14
(Pre-refunded to 12/01/02)
23
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7%
$ 4,000 Mississippi Hospital Equipment and Facilities Authority, Revenue 10/02 at 102.00 AAA $ 4,154,280
Bonds (Wesley Health Systems), Series 1992A, 6.050%, 4/01/12
(Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.2%
Health and Educational Facilities Authority, Missouri, Revenue
Bonds (SSM Health Care), Series 2001A:
2,500 5.250%, 6/01/21 6/11 at 101.00 AAA 2,522,300
2,000 5.250%, 6/01/28 6/11 at 101.00 AAA 1,998,200
5,500 Industrial Development Authority, City of St. Louis, Missouri, 12/02 at 102.00 N/R 5,615,775
Industrial Revenue Refunding Bonds (Kiel Center Multipurpose
Arena Project), Series 1992, 7.625%, 12/01/09
(Alternative Minimum Tax)
The City of St. Louis, Missouri, Airport Revenue Bonds (Airport
Development Program), Series 2001A,:
2,000 5.125%, 7/01/22 7/11 at 100.00 AAA 1,994,880
2,500 5.000%, 7/01/26 7/11 at 100.00 AAA 2,416,450
11,000 Municipal Finance Authority, City of St. Louis, Missouri, Leasehold 7/03 at 102.00 AAA 11,561,330
Revenue Bonds, Series 1993A, 6.000%, 7/15/13
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.7%
4,000 Clark County, Nevada, Industrial Development Revenue 6/02 at 102.00 AAA 4,093,720
Bonds (Nevada Power Company Project), Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.5%
2,905 New Hampshire Higher Educational and Health Facilities 7/02 at 100.00 BBB+ 2,914,964
Authority, Hospital Revenue Bonds (Catholic Medical Center
Issue), Series 1989, 8.000%, 7/01/04
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.3%
4,500 New Jersey Economic Development Authority, Insured Revenue 5/05 at 102.00 AAA 4,993,425
Bonds (Educational Testing Service Issue), Series 1995A,
6.000%, 5/15/25 (Pre-refunded to 5/15/05)
4,310 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 4,329,050
Housing Revenue Bonds, 1997 Series A, 5.650%, 5/01/40
(Alternative Minimum Tax)
235 New Jersey Housing and Mortgage Finance Agency, Housing 11/02 at 102.00 A+ 242,424
Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
1,000 Toms River Board of Education, New Jersey, General Obligation 7/07 at 100.00 AAA 1,111,400
Bonds, Series 1997, 5.750%, 7/15/21 (Pre-refunded to 7/15/07)
3,685 The Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,686,474
Facility Subordinated Lease Revenue Bonds (Ogden Martin
Systems of Union, Inc. Lessee), Series 1998A, 5.350%, 6/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.6%
3,370 New Mexico Mortgage Finance Authority, Single Family Mortgage 7/05 at 102.00 AAA 3,490,478
Program Bonds, 1995 Series E, 6.300%, 7/01/17
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 18.0%
1,800 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 1,797,642
General Revenue Bonds, Series 1998A, 5.125%, 12/01/22
7,695 The City of New York, New York, General Obligation Bonds, No Opt. Call A 8,092,832
Fiscal 1995 Series E, 6.600%, 8/01/03
17,365 The City of New York, New York, General Obligation Bonds, No Opt. Call A 19,465,644
Fiscal 1996 Series F, 7.000%, 2/01/06
11,130 The City of New York, New York, General Obligation Bonds, 3/06 at 101.50 A 11,588,333
Fiscal 1996 Series I, 5.875%, 3/15/18
The City of New York, New York, General Obligation Bonds, Fiscal
1996 Series J1:
9,000 5.875%, 2/15/19 2/06 at 101.50 A 9,342,900
3,820 5.500%, 2/15/26 2/06 at 101.50 A 3,845,059
The City of New York, New York, General Obligation Bonds, Fiscal
1993 Series A:
3,285 6.375%, 8/01/08 (Pre-refunded to 8/01/02) 8/02 at 101.50 Aaa 3,374,516
6,715 6.375%, 8/01/08 8/02 at 101.50 A 6,887,978
665 6.500%, 8/01/11 (Pre-refunded to 8/01/02) 8/02 at 101.50 Aaa 683,334
1,335 6.500%, 8/01/11 8/02 at 101.50 A 1,369,803
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
The City of New York, New York, General Obligation Bonds, Fiscal
1997 Series I:
$ 7,505 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101.00 Aaa $ 8,652,965
4,515 6.250%, 4/15/27 4/07 at 101.00 A 4,843,015
The City of New York, New York, General Obligation Bonds, Fiscal
1995 Series D:
285 6.600%, 2/01/03 No Opt. Call A*** 295,360
10,465 6.600%, 2/01/03 No Opt. Call A 10,808,566
1,370 New York City Municipal Water Finance Authority, New York, 6/07 at 101.00 AAA 1,409,675
Water and Sewer System Revenue Bonds, Fiscal 1997 Series B,
5.500%, 6/15/27
3,150 New York City Municipal Water Finance Authority, New York, 6/05 at 101.00 AAA 3,494,201
Water and Sewer System Revenue Bonds, Fiscal 1996 Series A,
5.875%, 6/15/25 (Pre-refunded to 6/15/05)
4,000 The Trust for Cultural Resources of the City of New York, 4/07 at 101.00 AAA 4,131,840
New York, Revenue Bonds (American Museum of Natural
History), Series 1997A, 5.650%, 4/01/27
2,500 Dormitory Authority of the State of New York, City University 7/06 at 102.00 AA- 2,651,525
System Consolidated Third General Resolution Bonds,
1996 Series 2, 6.000%, 7/01/20
7,635 New York State Medical Care Facilities Finance Agency, 5/05 at 102.00 AA-*** 8,507,070
Mercy Medical Center Project Revenue Bonds, 1995 Series A,
5.875%, 11/01/15 (Pre-refunded to 5/01/05)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1%
2,550 Cumberland County, North Carolina, Hospital Facility Revenue 10/09 at 101.00 A- 2,505,630
Bonds (Cumberland County Hospital System, Inc.) (Cape Fear
Valley Health System), Series 1999, 5.250%, 10/01/19
2,480 City of Durham, North Carolina, Urban Redevelopment Mortgage 8/07 at 105.00 AAA 2,659,106
Revenue Bonds (Durham Hosiery Mill Project) (FHA-Insured),
Series 1987, 7.500%, 8/01/29 (Alternative Minimum Tax)
1,510 North Carolina Housing Finance Agency, Single Family Revenue 3/06 at 102.00 AA 1,565,100
Bonds (1985 Resolution), Series JJ, 6.450%, 9/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.0%
4,920 North Dakota Housing Finance Agency, Mortgage Revenue Bonds 7/10 at 100.00 Aa3 5,072,225
(Housing Finance Program), Series 2000C, 6.150%, 7/01/31
(Alternative Minimum Tax)
1,075 North Dakota Housing Finance Agency, Housing Finance 1/07 at 102.00 Aa2 1,114,474
Program Bonds (Home Mortgage Finance Program),
1996 Series B, 6.400%, 1/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.2%
2,000 Ohio Housing Finance Agency, Multifamily Housing 1/08 at 102.00 Aa2 1,920,660
Mortgage Revenue Bonds (Courtyards of Kettering Project)
(FHA-Insured Mortgage Loan), Series 1998B-1, 5.550%, 1/01/40
(Alternative Minimum Tax)
5,000 Ohio Water Development Authority, Ohio, Collateralized Water 8/02 at 102.00 A2 5,100,850
Development Revenue Refunding Bonds (The Dayton Power and
Light Company Project), 1992 Series A, 6.400%, 8/15/27
6,750 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,103,755
Revenue Bonds (Bay Shore Power Project), Convertible
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
7,000 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 6,899,200
Revenue Bonds (Bay Shore Power Project), Convertible
Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5%
5,000 Oklahoma Student Loan Authority, Student Loan Revenue Bonds, 6/11 at 102.00 AAA 5,014,050
Senior Lien Series 2001-A1, 5.625%, 6/01/31
1,000 Tulsa County Industrial Authority, Oklahoma, Recreational 9/02 at 102.00 AA 1,033,910
Facilities Revenue Bonds, Refunding Series 1992,
6.600%, 9/01/08
2,990 Tulsa County Public Facilities Authority, Oklahoma, 11/02 at 102.00 AA 3,111,424
Recreational Facilities Refunding Revenue Bonds,
Series 1992, 6.600%, 11/01/08
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 4.2%
13,350 State of Oregon, General Obligation Elderly and Disabled 8/02 at 102.00 AA 13,730,876
Housing Bonds, 1992 Series B, 6.375%, 8/01/24
4,180 State of Oregon, General Obligation Veterans Welfare 10/05 at 102.00 AA 4,388,039
Bonds, Series 75, 6.000%, 4/01/27
25
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OREGON (continued)
$ 5,080 Housing and Community Services Department, Oregon, 1/10 at 100.00 Aa2 $ 5,289,550
Mortgage Revenue Bonds (Single Family Mortgage Program),
Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax)
2,395 Portland, Oregon, Limited Tax Improvement Bonds, 6/06 at 100.00 Aa2 2,476,693
1996 Series A, 5.550%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6%
2,400 Beaver County Industrial Development Authority, Pennsylvania, 7/05 at 102.00 A 2,592,096
Collateralized Pollution ControlRevenue Refunding Bonds (The
Cleveland Electric Illuminating Company - Beaver Valley
Project), Series 1995-A, 7.750%, 7/15/25
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AAA 1,119,762
Local Government Revenue Bonds, Series 1997B, 5.700%,7/01/27
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.2%
1,375 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 1,388,998
Series X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.5%
15,445 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 16,485,066
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17
2,135 School District No. 4 of Lexington County, South Carolina, 7/04 at 102.00 Baa2 2,326,680
Certificates of Participation, Series 1994, 7.000%, 7/01/12
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/02 at 100.00 AAA 6,214,292
Revenue Refunding Bonds, Series 1991, 4.000%, 1/01/23
15,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 A1 15,038,700
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.7%
5,850 South Dakota Housing Development Authority, Homeownership 5/07 at 102.00 AAA 5,900,135
Mortgage Bonds, 1997 Series F, 5.800%, 5/01/28 (Alternative
Minimum Tax)
South Dakota Building Authority, Revenue Bonds, Series 1992:
510 6.700%, 9/01/17 (Pre-refunded to 9/01/02) 9/02 at 102.00 AAA 528,947
9,860 6.700%, 9/01/17 (Pre-refunded to 9/01/04) 9/04 at 100.00 AAA 10,194,353
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3%
1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,599,900
Revenue Bonds, Series 1999D, 6.000%, 3/01/19 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.7%
615 Baytown Housing Finance Corporation, Texas, Single Family 9/02 at 103.00 Aa2 643,960
Mortgage Revenue Refunding Bonds, Series 1992-A,
8.500%, 9/01/11
10,000 Coppell Independent School District, Dallas County, Texas, No Opt. Call AAA 2,208,300
Unlimited Tax School Building and Refunding Bonds,
Series 2001, 0.000%, 8/15/28
3,345 City of Forth Worth, Texas, Water and Sewer Revenue Bonds, 2/12 at 100.00 AA 3,516,933
Series 2001, 5.625%, 2/15/19
1,635 Garland Independent School District, Dallas County, Texas, 2/07 at 100.00 AAA 1,486,820
Unlimited Tax School Building Bonds, Series 1997-A,
4.000%, 2/15/15
2,800 Houston Sports Authority, Harris County, Texas, Senior Lien 11/11 at 100.00 AAA 2,749,152
Revenue Bonds, Series 2001G, 5.250%, 11/15/30
940 Hidalgo County Housing Finance Corporation, Texas, Single Family 4/04 at 102.00 Aaa 966,405
Mortgage Revenue Bonds (GNMA and FNMA Collateralized),
Series 1994A, 7.000%, 10/01/27 (Alternative Minimum Tax)
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
City of Houston, Texas, Hotel Occupancy Tax and Special Revenue
Bonds (Convention Project), Series 2001B:
$ 25,850 0.000%, 9/01/25 No Opt. Call AAA $ 6,807,856
26,610 0.000%, 9/01/26 No Opt. Call AAA 6,587,306
1,000 Humble Independent School District, Harris County, Texas, 2/10 at 100.00 AAA 811,330
Unlimited Tax Schoolhouse Bonds, 1997 Series II, 3.500%, 2/15/18
6,185 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 AAA 6,138,365
Refunding Bonds (General Obligation - Unlimited Tax), Series 2001,
5.250%, 8/15/26
2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,004,720
Unlimited Tax Schoolhouse Bonds, 2001 Series A, 5.250%, 2/15/22
1,235 Port Arthur Housing Finance Corporation, Texas, Single 9/02 at 103.00 A2 1,296,305
Family Mortgage Revenue Refunding Bonds, Series 1992,
8.700%, 3/01/12
3,935 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 3,839,655
Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001,
5.125%, 2/01/26
7,490 State of Texas, General Obligation Veterans Housing Assistance 12/03 at 102.00 Aa1 7,885,322
Bonds, Series 1993, 6.800%, 12/01/23 (Alternative Minimum Tax)
3,900 State of Texas, General Obligation Veterans Housing Assistance 12/11 at 101.00 Aa1 3,726,840
Bonds (Fund II), Series 2001C1, 5.200%, 12/01/21
(Alternative Minimum Tax)
Weatherford Independent School District, Parker County, Texas,
Unlimited Tax School Building and Refunding Bonds, Series 2001:
6,945 0.000%, 2/15/25 2/11 at 44.73 AAA 1,833,341
6,945 0.000%, 2/15/27 2/11 at 39.75 AAA 1,622,838
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.2%
6,000 Redevelopment Agency of Salt Lake County, Utah, Central 9/02 at 102.00 A 6,087,480
Business District Neighborhood Redevelopment Junior Lien
Tax Increment Bonds, Series 1992A, 5.800%, 3/01/15
1,620 Utah Housing Finance Agency, Single Family Mortgage 7/04 at 102.00 AAA 1,655,932
Bonds (Federally Insured or Guaranteed Mortgage Loans),
1994 Issue B, 6.450%, 7/01/14
1,155 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 1,184,395
1997 Series E2 (Class I), 5.875%, 1/01/19 (Alternative
Minimum Tax)
1,410 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101.50 AAA 1,430,375
1997 Series C, 5.600%, 7/01/18 (Alternative Minimum Tax)
3,000 Municipal Building Authority, Weber County, Utah, Lease 12/04 at 102.00 AAA 3,437,160
Revenue Bonds, Series 1994, 7.500%, 12/15/19 (Pre-refunded
to 12/15/04)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.1%
6,620 Vermont Housing Finance Agency, Single Family Housing 11/02 at 102.00 A+ 6,702,088
Bonds, Series 4, 6.400%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.2%
7,635 Public Hospital District No. 2, King County, Washington, General 6/11 at 101.00 AAA 7,272,414
Obligation Limited Tax Bonds (Evergreen Healthcare),
Series 2001A, 5.000%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.3%
7,000 The County Commission of Harrison County, West Virginia, 5/03 at 102.00 AAA 7,335,020
Solid Waste Disposal Revenue Bonds (The Potomac Edison
Company Harrison Station Project), Series B, 6.250%, 5/01/23
(Alternative Minimum Tax)
1,000 The County Commission of Pleasants County, West Virginia, 4/09 at 101.00 AAA 1,006,650
Pollution Control Revenue Bonds (West Penn Power Company
Pleasants Station Project), 1999 Series E, 5.500%, 4/01/29
(Alternative Minimum Tax)
27
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.7%
$ 855 Wisconsin Housing and Economic Development Authority, Home 1/05 at 102.00 AA $ 884,630
Ownership Revenue Bonds, 1995 Series B, 7.100%, 9/01/15
(Alternative Minimum Tax)
3,215 Wisconsin Health and Educational Facilities Authority, Revenue 2/07 at 102.00 AAA 3,328,292
Bonds (Marshfield Clinic Project), Series 1997, 5.625%, 2/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 1,123,536 Total Investments (cost $889,121,507) - 150.2% 929,004,247
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.9% 36,607,629
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.1)% (347,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $618,611,876
====================================================================================================================
* 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. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
28
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 6.1%
$ 5,035 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 5,332,417
Revenue Refunding Bonds, Series 1994-D, 5.850%, 9/01/04
(Alternative Minimum Tax)
2,500 Alabama Housing Finance Authority, Multifamily Housing 2/11 at 102.00 AAA 2,524,475
Revenue Bonds (South Bay Apartments Project), 2000 Series K,
5.950%, 2/01/33 (Alternative Minimum Tax)
11,745 Alabama Special Care Facilities Financing Authority, Birmingham, 11/05 at 101.00 Aaa 11,561,543
Alabama, Hospital Revenue Bonds (Daughters 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 Aa1 5,182,188
Bonds, Series 2001, 5.750%, 12/01/16
11,000 The DCH Health Care Authority, Alabama, Healthcare Facilities 12/02 at 102.00 A+ 10,952,810
Revenue Bonds, Series 1993-B, 5.750%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1%
230 Arkansas Development Finance Authority, Single Family Mortgage 8/02 at 102.00 AA 237,454
Revenue Refunding Bonds (FHA-Insured or VA Guaranteed
Mortgage Loans), 1991 Series A, 8.000%, 8/15/11
228 Residential Housing Facilities Board, Jacksonville, Arkansas, 7/03 at 103.00 Aaa 237,497
Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 1/01/11
368 Residential Housing Facilities Board, Lonoke County, Arkansas, 4/05 at 103.00 Aaa 386,478
Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.2%
4,780 Foothill-Eastern Transportation Corridor Agency, California, No Opt. Call AAA 2,721,636
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14
Community Redevelopment Financing Authority of the Community
Redevelopment Agency of Los Angeles, California, Multifamily
Housing Bonds (Grand Central Square), 1993 Series A:
500 5.750%, 12/01/13 (Alternative Minimum Tax) 6/03 at 102.00 BB 483,370
3,705 5.900%, 12/01/26 (Alternative Minimum Tax) 6/02 at 100.00 A+ 3,719,153
(Pre-refunded to 6/01/02)
4,500 Los Angeles County Transportation Commission, California, 7/02 at 102.00 Aaa 4,630,455
Proposition C Sales Tax Revenue Bonds (Second Senior Bonds),
Series 1992-A, 6.750%, 7/01/19 (Pre-refunded to 7/01/02)
1,715 Housing Authority of Merced County, California, Multifamily 1/04 at 102.00 Aaa 1,756,812
Housing Refunding Revenue Bonds (Belmont Park Apartments
Project), Series 1993A, 5.875%, 1/01/19
5,000 Airports Commission of the City and County of San Francisco, 5/04 at 101.00 AAA 5,339,750
California, Second Series Revenue Bonds (San Francisco
International Airport), Issue 8A, 6.300%, 5/01/25
(Alternative Minimum Tax)
3,545 Redevelopment Agency of the City of San Leandro, California, 6/03 at 102.00 A- 3,715,975
1993 Tax Allocation Bonds (Plaza 1 and Plaza 2 Redevelopment
Projects), Series A, 6.125%, 6/01/23
1,945 South Gate Public Financing Authority, Los Angeles County, No Opt. Call AAA 2,260,226
California, Water Revenue Refunding Bonds, 1996 Series A,
6.000%, 10/01/12
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.0%
3,390 Colorado Housing and Finance Authority, Senior Single Family 10/09 at 105.00 Aa2 3,760,866
Program Bonds, 1999 Series C-3, 6.750%, 10/01/21
3,040 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 3,653,989
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992C:
1,100 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102.00 Aaa 1,150,292
(Pre-refunded to 11/15/02)
4,140 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102.00 A 4,295,333
4,345 El Paso County School No. 20 Academy, Colorado, General 12/12 at 100.00 AAA 4,511,500
Obligation Bonds, Series 2002, 5.250%, 12/15/17
29
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5%
$ 3,000 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA $ 3,172,890
Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 7.0%
6,000 District of Columbia, Washington D.C., General Obligation No Opt. Call AAA 6,562,140
Bonds, Series 1993B2, 5.500%, 6/01/10
3,240 District of Columbia, Hospital Revenue Refunding Bonds 8/02 at 102.00 A-*** 3,453,224
(Medlantic Healthcare Group, Inc. Issue), Series 1992B,
6.750%, 8/15/07 (Pre-refunded to 8/15/02)
4,250 District of Columbia, Hospital Revenue Refunding Bonds 8/06 at 102.00 AAA 4,741,300
(Medlantic Healthcare Group, Inc. Issue), Series 1993A,
5.750%, 8/15/14
District of Columbia, Washington, D.C., General Obligation Refunding
Bonds, Series 1993A:
1,585 6.000%, 6/01/07 No Opt. Call AAA 1,772,632
7,215 6.000%, 6/01/07 No Opt. Call AAA 8,026,471
District of Columbia, Washington D.C., General Obligation Bonds,
Series 1993E:
325 6.000%, 6/01/09 (Pre-refunded to 6/01/03) 6/03 at 102.00 AAA 345,160
5 6.000%, 6/01/09 6/03 at 102.00 AAA 5,288
4,485 6.000%, 6/01/09 6/03 at 102.00 AAA 4,771,502
935 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103.00 AAA 966,697
Single Family Mortgage Revenue Bonds, Series 1988F-1,
5.850%, 12/01/14 (Alternative Minimum Tax)
4,500 District of Columbia, University Revenue Refunding Bonds 10/02 at 102.00 AAA 4,686,300
(The Howard University Issue), Series 1992A,
6.750%, 10/01/12 (Pre-refunded to 10/01/02)
District of Columbia, University Revenue Bonds (Georgetown
University Issue), Series 2001A:
9,670 0.000%, 4/01/26 4/11 at 42.15 AAA 2,384,332
15,235 0.000%, 4/01/30 4/11 at 32.93 AAA 2,923,597
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.3%
9,000 Jacksonville Electric Authority, Florida, Water and Sewer 10/05 at 100.00 Aa3 9,017,730
System Revenue Bonds, 2001 Series A, 5.200%, 10/01/20
5,000 Industrial Development Authority, Martin County, Florida, 12/04 at 102.00 BBB- 5,162,750
Industrial Development Revenue Bonds (Indiantown
Cogeneration L.P. 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 1,435,421
Multifamily Revenue Bonds (Sunset Bay Apartments Project),
Series 2000-5A, 5.850%, 7/01/20 (Alternative Minimum Tax)
9,500 City of Sunrise, Florida, Utility System Revenue Refunding 10/18 at 100.00 AAA 9,320,640
Bonds, Series 1998, 5.000%, 10/01/28
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
3,400 City of Atlanta, Georgia, Water and Wastewater Revenue No Opt. Call AAA 3,627,800
Bonds, Series 1999A, 5.500%, 11/01/22
670 Development Authority of Burke County, Georgia, Pollution Control No Opt. Call AAA 695,574
Revenue Bonds (Oglethorpe Power Corporation Vogtle Project),
Series 1992, 7.500%, 1/01/03
2,880 Municipal Electric Authority of Georgia, General Power Revenue No Opt. Call A 3,677,731
Bonds, Series 1992B, 8.250%, 1/01/11
5,500 Municipal Electric Authority of Georgia, General Power Revenue No Opt. Call AAA 6,002,095
Bonds, Series 1993B, 5.700%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.9%
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 1,681,120
3,420 5.000%, 10/01/13 No Opt. Call AA- 3,594,694
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.9%
4,000 Board of Education of the City of Chicago, Illinois, General No Opt. Call AAA 4,609,320
Obligation Lease Certificates, 1992 Series A, 6.250%, 1/01/15
5,550 City of Chicago, Illinois, Midway Airport Revenue Bonds, 1/11 at 101.00 AAA 5,279,438
Series 2001A, 5.125%, 1/01/26 (Alternative Minimum Tax)
5,000 City of Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 4,937,150
5.250%, 1/01/28
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Cook County School District No. 99, Cicero, Illinois, General Obligation
School Bonds, Series 1997:
$ 1,455 8.500%, 12/01/13 No Opt. Call Aaa $ 1,968,018
1,685 8.500%, 12/01/15 No Opt. Call Aaa 2,310,101
6,205 Illinois Development Finance Authority, Revenue Bonds (Greek 4/11 at 105.00 Aaa 7,339,584
American Nursing Home Project), Series 2000A, 7.600%, 4/20/40
1,645 Illinois Development Finance Authority, Child Care Facility Revenue 9/02 at 102.00 N/R 1,687,754
Bonds (Illinois Facilities Fund Project), Series 1992,
7.400%, 9/01/04
1,615 Illinois Educational Facilities Authority, Revenue Bonds (Chicago 7/02 at 100.00 AAA 1,771,897
College of Osteopathic Medicine), Series A, 8.750%, 7/01/05
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds 10/03 at 102.00 A-*** 3,180,210
(Illinois Masonic Medical Center), Series 1993, 5.500%, 10/01/19
(Pre-refunded to 10/01/03)
2,000 Illinois Health Facilities Authority, Revenue Bonds (Trinity 7/02 at 102.00 Baa2*** 2,057,360
Medical Center), Series 1992, 7.000%, 7/01/12
(Pre-refunded to 7/01/02)
Illinois Health Facilities Authority, Revenue Refunding Bonds
(Lutheran General Health System), Series 1993C:
5,705 7.000%, 4/01/08 No Opt. Call A+ 6,465,305
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,814,083
8,190 Illinois Housing Development Authority, Multifamily Program 9/04 at 102.00 A+ 8,550,770
Bonds, Series 5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly 11/02 at 102.00 A 3,489,896
Housing Revenue Bonds (Skyline Towers Apartments),
Series 1992B, 6.875%, 11/01/17
2,130 Illinois Housing Development Authority, Section 8 Elderly 1/03 at 102.00 A*** 2,238,353
Housing Revenue Bonds (Morningside North Development),
Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03)
2,025 Long Creek Township, Macon County, Illinois, Waterworks 5/03 at 100.00 N/R 2,050,738
Refunding Revenue Bonds, Series 1993, 7.250%, 5/01/23
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,826,927
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20
14,375 Village of Wheeling, Illinois, Multifamily Housing Revenue 2/03 at 100.00 AAA 14,451,619
Bonds (FHA-Insured Mortgage Loan - Arlington Club Project),
Series 1993A, 6.400%, 2/01/40
3,735 Wood River Township Hospital, Madison County, Illinois, 2/04 at 102.00 N/R 3,063,746
General Obligation Bonds (Alternate Revenue Source),
Series 1993, 6.625%, 2/01/14
3,725 Wood River Township Hospital, Madison County, Illinois, 2/04 at 102.00 N/R 3,022,465
General Obligation Tort Immunity Bonds, Series 1993,
6.500%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.1%
2,250 Indiana Bond Bank, Special Program Bonds, Series 1992B, 2/03 at 102.00 A+*** 2,377,485
6.750%, 8/01/12 (Pre-refunded to 2/01/03)
22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 22,155,320
Bonds (Clarian Health Obligated Group), Series 2000A,
5.500%, 2/15/30
3,200 Indiana Health Facility Financing Authority, Hospital Revenue 9/02 at 102.00 A1*** 3,324,160
Refunding Bonds (The Methodist Hospitals, Inc.), Series 1992,
6.750%, 9/15/09 (Pre-refunded to 9/15/02)
2,100 City of Indianapolis, Indiana, Economic Development Revenue 7/03 at 103.00 N/R 1,647,849
Bonds (The Meadows - Section 8 Assisted Project), Series 1993A,
6.000%, 7/01/23 (Alternative Minimum Tax)
2,000 Hospital Authority of the City of Kokomo, Indiana, Hospital 8/03 at 102.00 N/R*** 2,150,320
Revenue Refunding Bonds (St. Joseph Hospital and Health
Center of Kokomo), Series 1993, 6.250%, 8/15/05
3,615 Mooresville Consolidated School Building Corporation, Morgan 1/04 at 101.00 N/R*** 3,869,460
County, Indiana, First Mortgage Bonds, Series 1994A,
6.200%, 7/15/15 (Pre-refunded to 1/15/04)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.7%
275 City of Davenport, Iowa, Home Ownership Mortgage Revenue 9/04 at 102.00 Aa2 283,707
Refunding Bonds, Series 1994, 7.900%, 3/01/10
3,600 Iowa Finance Authority, Hospital Revenue Bonds (Trinity Regional 7/02 at 102.00 N/R*** 3,701,664
Hospital Project), Series 1993, 7.000%, 7/01/12
(Pre-refunded to 7/01/02)
31
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.2%
$ 710 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103.00 Aa2 $ 740,530
Refunding Bonds, Series 1994, 7.100%, 5/01/12
Kansas Development Finance Authority, Multifamily Housing
Refunding Revenue Bonds (First Kansas State Partnership
L.P. Project), Series 1998Y:
7,910 6.000%, 12/01/20 (Alternative Minimum Tax) 12/08 at 101.00 N/R 7,231,797
2,460 6.125%, 12/01/28 (Alternative Minimum Tax) 12/08 at 101.00 N/R 2,223,520
500 Labette County, Kansas, Single Family Mortgage Revenue 6/03 at 103.00 Aa2 517,055
Refunding Bonds, 1993 Series A, 8.400%, 12/01/11
2,000 City of Olathe, Kansas, Health Facilities Revenue Bonds (Olathe 9/10 at 100.00 AAA 2,032,580
Medical Center Project), Series 2000A, 5.500%, 9/01/25
6,825 Unified School District No. 259, Wichita, Sedgwick County, 9/10 at 100.00 AA 5,807,802
Kansas, General Obligation Bonds, Series 2000,
3.500%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4%
2,285 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102.00 AAA 2,380,307
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.6%
3,215 Clover Dale Housing Corporation, Louisiana, 1995 Multifamily 10/02 at 100.00 AA- 3,225,931
Mortgage Revenue Refunding Bonds (Clover Dale Plaza)
(FHA-Insured Mortgage - Section 8 Assisted Project), Series A,
6.550%, 2/01/22
5,815 Orleans Levee District (A Political Subdivision of the State 12/05 at 103.00 AAA 6,256,533
of Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/14
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 3.8%
7,520 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A2 8,001,581
Student Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06
(Alternative Minimum Tax)
13,835 Maine State Housing Authority, Mortgage Purchase Bonds, 5/10 at 100.00 AA+ 14,251,295
2000 Series C-1, 6.050%, 11/15/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.9%
4,425 Maryland Department of Housing and Community Development, 1/07 at 102.00 Aa2 4,643,241
Community Development Administration, Housing Revenue
Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Department of Housing and Community Development, 7/07 at 102.00 Aa2 2,933,350
Community Development Administration, Housing Revenue
Bonds, Series 1997A, 6.000%, 7/01/39 (Alternative Minimum Tax)
6,800 Housing Opportunities Commission of Montgomery County, 7/06 at 102.00 Aa2 7,098,520
Maryland, Multifamily Housing Revenue Bonds, 1996 Series B,
6.400%, 7/01/28 (Alternative Minimum Tax)
2,315 Housing Opportunities Commission of Montgomery County, 7/10 at 100.00 Aaa 2,424,476
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.125%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.4%
2,000 Massachusetts Housing Finance Agency, Housing Project 4/03 at 102.00 A+ 2,091,500
Revenue Bonds, Refunding Series 1993A, 6.300%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.9%
5,000 City of Detroit, Michigan, Convention Facility Limited Tax 9/03 at 102.00 AAA 5,151,650
Revenue Refunding Bonds (Cobo Hall Expansion Project),
Series 1993, 5.250%, 9/30/12
10,225 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101.00 AAA 9,804,753
Bonds (Senior Lien), Series 1997-A, 5.000%, 7/01/27
City of Hancock Hospital Finance Authority, Michigan,
FHA-Insured Mortgage Hospital Revenue Bonds (Portage Health
System, Inc.), Series 1998:
2,545 4.625%, 8/01/18 8/08 at 100.00 AAA 2,589,207
4,400 5.450%, 8/01/47 8/08 at 100.00 AAA 4,398,108
2,000 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call BBB- 2,007,740
and Refunding Bonds (The Detroit Medical Center Obligated
Group), Series 1993B, 5.000%, 8/15/03
3,150 Michigan State Hospital Finance Authority, Hospital Revenue 8/02 at 102.00 AAA 3,239,523
and Refunding Bonds (Bon Secours Health System Project),
Series 1992, 6.100%, 8/15/22
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BBB- $ 8,571,255
Bonds (The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/23
3,750 Michigan Strategic Fund, Limited Obligation Refunding 6/03 at 102.00 AAA 3,958,238
Revenue Bonds (Consumers Power Company Project),
Collateralized Series 1993B, 5.800%, 6/15/10
6,000 Monroe County, Michigan, Pollution Control Revenue Bonds 9/03 at 102.00 AAA 6,378,240
(The Detroit Edison Company Project), Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.6%
4,670 Housing Finance Board, Minneapolis-St. Paul, Minnesota, 11/07 at 102.00 AAA 4,729,402
Single Family Mortgage Revenue Bonds (FNMA and GNMA
Backed Program - Phase XI-AB), 5.800%, 11/01/30 (Alternative
Minimum Tax)
3,500 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,520,335
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25
4,000 Minneapolis Community Development Agency, Minnesota, 12/02 at 102.00 A- 4,136,880
Limited Tax Supported Development Revenue Bonds (Common
Bond Fund), Series 1992G-3, 7.375%, 12/01/12
2,720 City of Minnetonka, Minnesota, Multifamily Housing Revenue 12/04 at 102.00 AAA 2,836,389
Refunding Bonds (Brier Creek Project) (GNMA Collateralized
Mortgage Loan), Series 1994A, 6.450%, 6/20/24
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.3%
2,000 Mississippi Higher Education Assistance Corporation, Student 9/02 at 102.00 Aaa 2,053,160
Loan Revenue Bonds, Senior Series 1993-B, 5.800%, 9/01/06
(Alternative Minimum Tax)
5,180 State of Mississippi, General Obligation Bonds, Refunding No Opt. Call AA 5,600,512
Series 2002A, 5.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.3%
2,000 The City of St. Louis, Missouri, Airport Revenue Bonds (Airport 7/11 at 100.00 AAA 1,933,160
Development Program), Series 2001A, 5.000%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.5%
9,000 Nebraska Higher Education Loan Program, Inc., Senior Subordinate No Opt. Call AAA 9,855,720
Bonds, Series A-5A, 6.250%, 6/01/18 (Alternative Minimum Tax)
4,405 Nebraska Investment Finance Authority, Single Family Housing 3/07 at 101.50 AAA 4,444,425
Revenue Bonds, 1998 Series F, 5.600%, 9/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 1.2%
4,500 Clark County School District, Nevada, General Obligation School No Opt. Call AAA 5,385,105
Improvement Bonds, Series 1991A, 7.000%, 6/01/10
1,645 Nevada Housing Division, Single Family Program Senior Bonds, 4/04 at 102.00 A1 1,708,678
1993 Issue B, 6.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2%
1,110 New Hampshire Housing Finance Authority, Single Family 1/07 at 102.00 Aa2 1,161,859
Mortgage Acquisition Revenue Bonds, 1996 Series C,
6.200%, 7/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.4%
2,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 2,378,900
Series 1991C, 6.500%, 1/01/16
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.2%
130 New Mexico Educational Assistance Foundation, Student 12/02 at 101.00 A2 134,079
Loan Revenue Bonds, Series 1992 (Subordinate Series One B),
6.850%, 12/01/05 (Alternative Minimum Tax)
945 New Mexico Mortgage Finance Authority, Single Family 7/02 at 102.00 AAA 962,530
Mortgage Purchase Refunding Senior Bonds, 1992 Series A2,
6.900%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 17.1%
30,050 Atlas Community Housing Opportunity Trust, New York, 6/09 at 100.00 N/R 19,833,000
Class A Certificates, Series 1999-1, 6.750%, 6/01/34
(Optional put 6/01/09)##
10,000 Industrial Development Agency, Erie County, New York, 12/10 at 103.00 N/R 3,362,500
Solid Waste Disposal Facility Revenue Bonds (1998 CanFibre
of Lackawanna Project), 9.050%, 12/01/25 (Alternative
Minimum Tax)#
85 The City of New York, New York, General Obligation Bonds, No Opt. Call A 86,584
Fiscal 1991 Series D, 9.500%, 8/01/02
33
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 1,000 The City of New York, New York, General Obligation Bonds, No Opt. Call A $ 1,089,600
Fiscal 1995 Series A, 7.000%, 8/01/04
3,500 The City of New York, New York, General Obligation Bonds, No Opt. Call A 3,692,115
Fiscal 1996 Series B, 6.750%, 8/15/03
14,310 The City of New York, New York, General Obligation Bonds, No Opt. Call A 15,551,106
Fiscal 1996 Series F, 6.500%, 2/01/05
16,915 New York City Transitional Finance Authority, New York, Future 5/08 at 101.00 AA+ 16,375,242
Tax Secured Bonds, Fiscal 1998 Series C, 5.000%, 5/01/26
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal 2000 Series C:
3,850 5.875%, 11/01/16 5/10 at 101.00 AA+ 4,238,966
5,000 5.500%, 11/01/24 5/10 at 101.00 AA+ 5,161,100
8,395 New York State Medical Care Facilities Finance Agency, 8/02 at 102.00 AAA 8,595,808
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, 1992 Series B, 6.200%, 8/15/22
4,200 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AA 4,406,850
FHA-Insured Mortgage Project Revenue Bonds, 1995 Series B,
6.150%, 2/15/35
New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1994 Series
A:
4,875 6.200%, 2/15/21 (Pre-refunded to 2/15/04) 2/04 at 102.00 AA*** 5,294,786
3,365 6.200%, 2/15/21 2/04 at 102.00 AA 3,580,528
7,500 New York State Thruway Authority, General Revenue Bonds, 1/05 at 102.00 AAA 8,310,750
Series C, 6.000%, 1/01/15 (Pre-refunded to 1/01/05)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.4%
2,000 North Carolina Municipal Power Agency Number 1, Catawba No Opt. Call AAA 2,256,880
Electric Revenue Bonds, Series 1992, 6.000%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.1%
380 City of Minot, North Dakota, Single Family Mortgage Revenue 8/03 at 102.00 Aa2 392,304
Refunding Bonds, Series 1993, 7.700%, 8/01/10
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.3%
4,500 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/02 at 102.00 Baa1 4,617,540
Hospital Facilities Revenue Bonds (Summa Health System
Project), Series 1992, 6.250%, 11/15/07
9,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 8,674,200
Series 2000A, 5.000%, 1/01/31
3,000 Franklin County, Ohio, Development Revenue Bonds 10/09 at 101.00 A 3,179,010
(American Chemical Society Project), Series 1999,
5.800%, 10/01/14
1,000 Franklin County, Ohio, Multifamily Housing Mortgage Revenue 1/05 at 103.00 Aa 964,110
Bonds (Hamilton Creek Apartments Project) (FHA-Insured
Mortgage Loan), Series 1994A, 5.550%, 7/01/24
(Alternative Minimum Tax)
2,730 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102.00 Aaa 2,861,177
Bonds (GNMA Mortgage-Backed Securities Programs),
1995 Series A-1, 6.300%, 9/01/17
4,370 City of Toledo, Ohio, Various Purpose Improvement Bonds 12/04 at 102.00 AAA 4,764,917
(General Obligation - Limited Tax), Series 1994,
5.750%, 12/01/09
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.8%
955 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa 997,803
Revenue Bonds (Homeownership Loan Program), 2000 Series C-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 873,750
7,000 7.125%, 4/01/28# 4/06 at 102.00 N/R 1,750,000
9,930 Tulsa County Industrial Authority, Oklahoma, First Mortgage 3/11 at 101.00 N/R 9,027,164
Multifamily Housing Revenue Bonds (Stoneridge Apartments
Project), Series 1999, 6.125%, 3/01/39 (Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Oklahoma, Hospital Revenue and No Opt. Call AAA 3,871,895
Refunding Bonds (Hillcrest Medical Center Project),
Series 1996, 6.500%, 6/01/09
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.9%
$ 5,000 Pennsylvania Economic Development Finance Authority, 1/04 at 102.00 BBB- $ 5,088,300
Resource Recovery Revenue Bonds (Northampton Generating
Project), Senior Series 1994A, 6.400%, 1/01/09 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.6%
12,390 Commonwealth of Puerto Rico, General Obligation Public No Opt. Call AAA 14,890,550
Improvement Refunding Bonds, Series 1997, 6.500%, 7/01/13
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.7%
Piedmont Municipal Power Agency, South Carolina, Electric Revenue
Refunding Bonds, Series 1991:
5,000 6.250%, 1/01/21 No Opt. Call AAA 5,670,400
5,750 4.000%, 1/01/23 7/02 at 100.00 AAA 4,701,603
5,085 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 5,496,122
Bonds, Refunding Series 1998A, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.6%
1,500 The Metropolitan Government of Nashville and Davidson County, 5/08 at 102.00 AA 1,504,365
Tennessee, Electric System Revenue Bonds, 1998 Series A,
5.200%, 5/15/23
2,080 Tennessee Housing Development Agency, Mortgage Finance 7/04 at 102.00 AA 2,156,440
Program Bonds, 1994 Series A, 6.900%, 7/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.1%
4,500 Alliance Airport Authority, Inc., Texas, Special Facilities 6/02 at 101.00 BB 4,194,180
Revenue Bonds (American Airlines Project), Series 1990,
7.500%, 12/01/29 (Alternative Minimum Tax)
6,060 Alliance Airport Authority, Inc., Texas, Special Facilities No Opt. Call BB 5,709,126
Revenue Bonds (American Airlines Project), Series 1991,
7.000%, 12/01/11 (Alternative Minimum Tax)
3,345 Columbia-Brazoria Independent School District, Brazoria County, 2/09 at 100.00 AAA 3,055,758
Texas, Unlimited Tax School Building Bonds, Series 1999,
4.750%, 2/01/25
8,000 Cities of Dallas and Fort Worth, Texas, Joint Revenue Refunding 11/11 at 100.00 AAA 8,383,120
and Improvement Bonds (Dallas-Ft. Worth International Airport),
Series 2001A, 5.875%, 11/01/19 (Alternative Minimum Tax)
6,000 Garland Housing Finance Corporation, Texas, Multifamily Housing 12/11 at 101.00 N/R 5,938,980
Mortgage Revenue Bonds (Edgewood Drive Apartments),
Series 2000, 7.500%, 6/01/40 (Alternative Minimum Tax)
16,960 Harris County Housing Finance Corporation, Texas, Multifamily 12/10 at 105.00 N/R 17,054,298
Housing Bonds (Coolwood Oaks and Haverstock Hill Apartments),
Series A, 8.250%, 12/01/31
28,305 City of Houston, Texas, Hotel Occupancy Tax and Special No Opt. Call AAA 6,234,459
Revenue Bonds (Convention Project), Series 2001B,
0.000%, 9/01/28
7,500 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 8,182,800
Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32
5,000 City of Houston, Texas, Water and Sewer System Junior Lien 12/07 at 102.00 AAA 4,770,050
Revenue Refunding Bonds, Series 1997D, 5.000%, 12/01/25
622 The Midland Housing Finance Corporation, Texas, Single Family 11/05 at 103.00 Aaa 673,062
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 2,363,526
2,400 5.500%, 2/15/23 2/11 at 100.00 AAA 2,456,040
Mount Pleasant Independent School District, Titus County, Texas,
General Obligation Bonds, Refunding Series 2001:
3,025 5.000%, 2/15/26 8/11 at 100.00 Aaa 2,900,884
3,000 5.125%, 2/15/31 8/11 at 100.00 Aaa 2,886,270
2,215 North Texas Higher Education Authority, Inc., Student Loan 4/03 at 102.00 A2 2,290,819
Revenue Bonds, Series 1993D, 6.300%, 4/01/09
(Alternative Minimum Tax)
3,410 Retama Development Corporation, Texas, Special Facilities No Opt. Call AAA 4,707,948
Revenue Bonds (Retama Park Racetrack Project), Series 1993,
8.750%, 12/15/12
4,700 Spring Branch Independent School District, Harris County, Texas, 2/11 at 100.00 AAA 4,586,119
Limited Tax Schoolhouse and Refunding Bonds, Series 2001,
5.125%, 2/01/26
35
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,452 General Services Commission (an agency of the state of Texas), 9/03 at 100.50 A $ 4,520,993
as Lessee, Participation Interests,7.500%, 9/01/22
8,500 Travis County Health Facilities Development Corporation, 11/03 at 102.00 Aaa 9,121,520
Texas, Hospital Revenue Bonds (Daughters of Charity National
Health System - Daughters of Charity Health Services of Austin),
Series 1993B, 6.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 6.2%
4,845 City of Bountiful, Davis County, Utah, Hospital Revenue 12/08 at 101.00 N/R 4,132,301
Refunding 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 18,533,012
Refunding Bonds, 1997 Series B, 5.750%, 7/01/19
Intermountain Power Agency, Utah, Power Supply Revenue Bonds,
Series 1996A:
5,065 6.150%, 7/01/14 7/06 at 102.00 A+*** 5,677,561
2,935 6.150%, 7/01/14 7/06 at 102.00 A+ 3,139,922
1,100 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 1,148,444
2000 Series G, 5.875%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
2001 Series C:
2,500 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 2,547,600
1,000 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aa2 1,023,920
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
2,645 Suffolk Redevelopment and Housing Authority, Virginia, 7/02 at 104.00 Baa2 2,732,470
Multifamily Housing Revenue Refunding Bonds (Chase Heritage
at Dulles Project), Series 1994, 7.000%, 7/01/24 (Mandatory
put 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 16.9%
1,050 City of Bellevue, King County, Washington, Water and Sewer 7/04 at 100.00 Aa2 1,115,856
Revenue Refunding Bonds, Series 1994, 5.875%, 7/01/09
1,855 Public Utility District No. 1 of Chelan County, Washington, 7/09 at 101.00 AA 1,930,814
Chelan Hydro Consolidated System Revenue Bonds, Series 1999A,
6.200%, 7/01/34 (Alternative Minimum Tax)
1,035 Covington Water District, King County, Washington, Water 3/05 at 100.00 AAA 1,124,517
Improvement and Refunding Revenue Bonds, Series 1995,
6.050%, 3/01/20 (Pre-refunded to 3/01/05)
1,655 City of Everett, Washington, General Obligation - Limited Tax 9/07 at 100.00 Aaa 1,667,247
Bonds, Series 1997, 5.125%, 9/01/17
1,000 Seattle Indian Services Commission, Washington, Special 11/04 at 100.00 AAA 1,060,770
Obligation Bonds, Series 1994, 6.000%, 11/01/16
1,640 Housing Authority of Skagit County, Washington, Low-Income 11/04 at 104.00 AAA 1,742,926
Housing Assistance Revenue Bonds (Sea Mar Project) (GNMA
Collateralized Mortgage Loan), Series 1993, 7.000%, 6/20/35
1,500 Mukilteo School District No. 6, Snohomish County, Washington, No Opt. Call AAA 1,679,055
Refunding Bonds (General Obligation - Unlimited Tax),
Series 1993, 5.700%, 12/01/12
1,570 Spokane Downtown Foundation, Washington, Parking Revenue 8/08 at 102.00 D 914,525
Bonds (River Park Square Project), Series 1998,
5.600%, 8/01/19
8,155 City of Tacoma, Washington, Electric System Revenue Bonds, 1/11 at 101.00 AAA 8,647,725
Refunding Series 2001A, 5.750%, 1/01/20
4,705 City of Tacoma, Washington, Sewer Revenue Refunding Bonds, No Opt. Call AAA 5,817,544
1994 Series B, 8.000%, 12/01/08
State of Washington, General Obligation Bonds, Series 1994B:
45 6.000%, 5/01/19 (Pre-refunded to 5/01/04) 5/04 at 100.00 AA+*** 48,090
1,955 6.000%, 5/01/19 5/04 at 100.00 AA+ 2,000,219
1,250 Washington Health Care Facilities Authority, Revenue Bonds 7/02 at 102.00 AAA 1,285,600
(Franciscan Health System - St. Clare Hospital, Tacoma),
Refunding Series 1992, 6.625%, 7/01/20 (Pre-refunded to 7/01/02)
2,000 Washington Health Care Facilities Authority, Revenue Bonds 10/02 at 102.00 AAA 2,077,160
(The Children's Hospital and Medical Center, Seattle),
Series 1992, 6.125%, 10/01/13 (Pre-refunded to 10/01/02)
1,400 Washington Health Care Facilities Authority, Revenue Bonds 11/02 at 102.00 AAA 1,462,356
(Swedish Hospital Medical Center, Seattle), Series 1992,
6.300%, 11/15/22 (Pre-refunded to 11/15/02)
2,000 Washington State Health Care Facilities Authority, Revenue 8/08 at 102.00 AA 1,887,520
Bonds (Highline Community Hospital), Series 1998,
5.000%, 8/15/21
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 1,000 Washington Health Care Facilities Authority, Revenue Bonds 8/13 at 102.00 AAA $ 950,420
(Harrison Memorial Hospital), Series 1998, 5.000%, 8/15/28
4,500 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102.00 Aa1*** 4,778,325
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/13
(Pre-refunded to 7/01/03)
23,000 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102.00 Aa1 23,339,020
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1992A:
5,710 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102.00 Aaa 5,868,795
1,540 6.250%, 7/01/12 7/02 at 102.00 Aa1 1,581,072
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1990A:
6,080 7.250%, 7/01/06 No Opt. Call Aa1*** 7,045,200
395 7.250%, 7/01/06 No Opt. Call Aa1 451,232
11,000 Washington Public Power Supply System, Nuclear Project No. 3 No Opt. Call Aa1 12,929,840
Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09
4,700 Washington Public Power Supply System, Nuclear Project No. 3 7/08 at 102.00 Aa1 4,679,226
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
1,400 Washington State University, Washington, Housing and Dining 10/04 at 101.00 AAA 1,541,316
System Revenue and Refunding Bonds, Series 1994,
6.375%, 10/01/18 (Pre-refunded to 10/01/04)
1,000 Yakima-Tieton Irrigation District, Yakima County, Washington, 6/03 at 102.00 AAA 1,053,520
Refunding Revenue Bonds, Series 1992, 6.125%, 6/01/13
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.5%
7,000 Wisconsin Housing and Economic Development Authority, 7/10 at 100.00 AA 7,254,170
Home Ownership Revenue Bonds, 2000 Series E,
6.100%, 3/01/27 (Alternative Minimum Tax)
7,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 101.00 AAA 7,357,574
Bonds (Ministry Health Care, Inc.), Series 2002A, 5.250%, 2/15/32
------------------------------------------------------------------------------------------------------------------------------------
$ 936,385 Total Investments (cost $891,206,285) - 153.8% 897,440,153
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.4%
4,000 The Commonwealth of Massachusetts, General Obligation Bonds VMIG-1 4,000,000
(Central Artery Ted Williams Infrastructure Loan Act of 2000),
Variable Rate Demand Bonds, Series A, 1.700%, 04/01/35
3,900 Washington Economic Development Authority, Variable Rate VMIG-1 3,900,000
Demand Economic Development Bonds (Pioneer Human
Services Project), Series 1998H, 1.750%, 09/01/18+
------------------------------------------------------------------------------------------------------------------------------------
$ 7,900 Total Short-Term Investments (cost $7,900,000) 7,900,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 16,093,606
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.0)% (338,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $583,033,759
====================================================================================================================
* 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. Securities
are normally considered to be equivalent to AAA
rated securities.
# 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.
## Subsequent to April 30, 2002, this security was
non-income producing. In the case of a bond,
generally denotes that issuer has defaulted on the
payment of principal or interest or has filed for
bankruptcy.
N/R Investment is not rated.
+ 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, 2002 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $1,444,559,042 $929,004,247 $897,440,153
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value -- -- 7,900,000
Cash 188,387 -- --
Receivables:
Interest 27,605,597 15,833,668 17,411,363
Investments sold 4,157,318 25,772,457 2,565,000
Other assets 32,563 7,861 40,923
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,476,542,907 970,618,233 925,357,439
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 851,755 141,377
Accrued expenses:
Management fees 741,292 493,471 470,599
Other 393,605 291,116 180,293
Preferred share dividends payable 96,310 61,976 61,606
Common share dividends payable 4,815,799 3,308,039 3,069,805
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 6,047,006 5,006,357 3,923,680
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value $525,000,000 $347,000,000 $338,400,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $945,495,901 $618,611,876 $583,033,759
====================================================================================================================================
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) $ 14.82 $ 15.05 $ 13.48
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 410,937 $ 432,367
Paid in surplus 901,245,745 570,703,471 596,490,763
Balance of undistributed net investment income 9,063,801 6,131,306 4,904,448
Accumulated net realized gain (loss) from investment transactions (12,126,315) 1,483,422 (25,027,687)
Net unrealized appreciation of investments 46,674,816 39,882,740 6,233,868
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common Shares $945,495,901 $618,611,876 $583,033,759
====================================================================================================================================
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, 2002 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 41,275,945 $ 28,150,073 $ 26,141,035
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,500,170 3,002,479 2,876,864
Preferred shares - auction fees 650,856 430,185 419,524
Preferred shares - dividend disbursing agent fees 29,753 29,753 39,672
Shareholders' servicing agent fees and expenses 86,578 29,657 44,689
Custodian's fees and expenses 175,896 142,989 145,088
Directors' fees and expenses 6,147 4,167 4,556
Professional fees 50,150 17,823 77,234
Shareholders' reports - printing and mailing expenses 89,585 41,327 43,784
Stock exchange listing fees 27,067 18,348 17,609
Investor relations expense 106,366 69,113 70,922
Other expenses 39,214 27,281 28,201
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 5,761,782 3,813,122 3,768,143
Custodian fee credit (21,770) (42,296) (44,885)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,740,012 3,770,826 3,723,258
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 35,535,933 24,379,247 22,417,777
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions 220,851 1,857,494 (12,616,999)
Change in net unrealized appreciation (depreciation) of investments (32,665,322) (21,936,301) (21,009,151)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (32,444,471) (20,078,807) (33,626,150)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From undistributed net investment income (3,686,133) (2,156,789) (2,371,569)
From accumulated net realized gains from investment transactions -- (556,725) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred shareholders (3,686,133) (2,713,514) (2,371,569)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ (594,671) $ 1,586,926 $(13,579,942)
====================================================================================================================================
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 ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/02 10/31/01 4/30/02 10/31/01 4/30/02 10/31/01
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 35,535,933 $ 71,292,185 $ 24,379,247 $ 49,652,261 $ 22,417,777 $ 46,679,576
Net realized gain (loss)
from investment
transactions 220,851 4,799,904 1,857,494 3,225,861 (12,616,999) 2,478,890
Change in net unrealized
appreciation
(depreciation) of investments (32,665,322) 58,098,521 (21,936,301) 27,191,816 (21,009,151) 26,239,764
Distributions to Preferred Shareholders:
From undistributed net
investment income (3,686,133) (16,366,471) (2,156,789) (10,989,373) (2,371,569) (10,725,951)
From accumulated net realized
gains investment transactions -- -- (556,725) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (594,671) 117,824,139 1,586,926 69,080,565 (13,579,942) 64,672,279
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From undistributed net
investment income (28,181,665) (51,191,446) (19,466,767) (36,688,826) (18,375,373) (35,070,055)
From accumulated net realized gains
from investment transactions -- -- (1,872,949) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (28,181,665) (51,191,446) (21,339,716) (36,688,826) (18,375,373) (35,070,055)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (28,776,336) 66,632,693 (19,752,790) 32,391,739 (31,955,315) 29,602,224
Net assets applicable to Common
shares at the beginning
of period 974,272,237 907,639,544 638,364,666 605,972,927 614,989,074 585,386,850
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $945,495,901 $974,272,237 $618,611,876 $638,364,666 $583,033,759 $614,989,074
====================================================================================================================================
Balance of undistributed
net investment
income at the end of period $ 9,063,801 $ 4,183,239 $ 6,131,306 $ 2,439,961 $ 4,904,448 $ 1,661,078
====================================================================================================================================
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
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).
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 Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
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 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 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 in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
April 30, 2002, the Funds had no such outstanding purchase commitments.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
for financial reporting purposes.
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.
41
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend. Generally,
payment is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount 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. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
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 by the auction agent.
The number of shares outstanding, by Series and in total, for each of the Funds
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, 2002.
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.
42
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.
Change in Accounting Policy
As required, effective November 1, 2001, the Funds have adopted the provisions
of the new AICPA Audit and Accounting Guide for Investment Companies and began
accreting taxable market discounts on debt securities. Prior to November 1,
2001, the Funds did not accrete taxable market discounts on debt securities
until they were sold. The cumulative effect of this accounting change had no
impact on the total net assets applicable to Common shares or the Common share
net asset values of the Funds, but resulted in an increase in the cost of
securities and a corresponding decrease in net unrealized appreciation based on
securities held by the Funds on April 30, 2002, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
$1,212,658 $935,885 $1,572,766
================================================================================
The effect of this change for the six months ended April 30, 2002, was to
increase investment income with a corresponding decrease in net unrealized
appreciation as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
$87,751 $80,059 $122,632
================================================================================
The Statement of Changes in Net Assets and Financial Highlights for the prior
periods have not been restated to reflect this change in presentation.
Classification and Measurement of Redeemable Securities
Effective November 1, 2001, the Funds have adopted the classification
requirement of EITF D-98, Classification and Measurement of Redeemable
Securities. EITF D-98 requires that Preferred shares, at liquidation value, be
presented separately in the Statement of Assets and Liabilities. Accordingly,
certain reclassifications have been made to the financial statements and
financial highlights for all prior periods presented. The adoption of EITF D-98
had no impact on the Funds' Common share net asset values.
2. FUND SHARES
There were no share transactions during the six months ended April 30, 2002, nor
during the fiscal year ended October 31, 2001, in any of the Funds.
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 3, 2002, to shareholders of record on
May 15, 2002, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0755 $.0805 $.0710
================================================================================
43
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term securities for the six months ended April 30, 2002,
were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $34,088,886 $76,875,100 $40,142,530
Short-term securities 11,000,000 33,750,000 37,100,000
Sales and maturities:
Long-term municipal securities 39,159,519 112,678,850 49,836,911
Short-term securities 17,175,000 33,750,000 29,200,000
================================================================================
At April 30, 2002, the cost of investments owned for federal income tax purposes
were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
$1,396,633,978 $888,476,838 $897,478,871
================================================================================
At October 31, 2001, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
PREMIUM PREMIUM
INCOME INCOME 4
(NPI) (NPT)
--------------------------------------------------------------------------------
Expiration year:
2002 $ -- $4,290,147
2003 -- 5,281,759
2004 -- --
2005 -- --
2006 -- --
2007 -- --
2008 12,335,442 2,835,520
--------------------------------------------------------------------------------
Total $12,335,442 $12,407,426
================================================================================
44
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at April 30, 2002, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Gross unrealized:
appreciation $ 62,125,523 $46,555,679 $ 41,613,298
depreciation (14,200,459) (6,028,270) (33,752,016)
--------------------------------------------------------------------------------
Net unrealized appreciation $ 47,925,064 $40,527,409 $7,861,282
================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, 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 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For the next $3 billion .5875 of 1
For net assets over $5 billion .5750 of 1
================================================================================
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.
7. INVESTMENT COMPOSITION
At April 30, 2002, 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 5% 3% 1%
Education and Civic Organizations 6 4 4
Healthcare 8 4 11
Housing/Multifamily 4 6 14
Housing/Single Family 12 10 6
Long-Term Care 2 -- 1
Tax Obligation/General 13 24 13
Tax Obligation/Limited 16 10 8
Transportation 8 4 6
U.S. Guaranteed 11 28 16
Utilities 13 6 14
Water and Sewer 2 1 6
--------------------------------------------------------------------------------
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 (56% for Premium
Income (NPI), 54% for Premium Income 2 (NPM) and 47% 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.
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:
2002(a) $15.27 $ .56 $ (.51) $(.06) $ -- $ (.01) $(.44) $ -- $ (.44)
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)
1998 15.28 1.15 .43 (.25) (.01) 1.32 (.88) (.06) (.94)
1997 14.96 1.14 .37 (.20) -- 1.31 (.94) (.03) (.97)
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 15.53 .59 (.49) (.05) (.01) .04 (.47) (.05) (.52)
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)
1998 15.80 1.17 .46 (.24) (.02) 1.37 (.93) (.09) (1.02)
1997 15.16 1.18 .65 (.26) -- 1.57 (.93) -- (.93)
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 14.22 .52 (.78) (.05) -- (.31) (.43) -- (.43)
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)
1998 14.64 1.07 .42 (.26) -- 1.23 (.82) -- (.82)
1997 14.07 1.08 .58 (.27) -- 1.39 (.82) -- (.82)
====================================================================================================================================
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:
2002(a) $ -- $14.82 $14.0400 1.66% (.02)%
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)
1998 -- 15.66 15.1875 10.60 8.86
1997 (.02) 15.28 14.6250 7.81 8.89
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) -- 15.05 14.4200 2.33 .28
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)
1998 -- 16.15 16.8750 15.98 8.93
1997 -- 15.80 15.5000 16.76 10.72
PREMIUM INCOME 4 (NPT)
-----------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) -- 13.48 13.0000 (2.40) (2.20)
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)
1998 -- 15.05 14.8125 14.54 8.58
1997 -- 14.64 13.6875 14.70 10.20
=========================================================================================
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:
2002(a) $945,496 1.23%* 7.55%* 1.22%* 7.56%* 2%
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
1998 998,755 1.14 7.41 1.14 7.41 19
1997 974,660 1.05 7.58 1.05 7.58 10
PREMIUM INCOME 2 (NPM)
---------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 618,612 1.23* 7.87* 1.22* 7.88* 8
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
1998 659,840 1.13 7.35 1.13 7.35 7
1997 643,587 1.14 7.73 1.14 7.73 19
PREMIUM INCOME 4 (NPT)
---------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2002(a) 583,034 1.29* 7.64* 1.27* 7.65* 4
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
1998 614,604 1.19 7.23 1.19 7.23 21
1997 597,364 1.21 7.62 1.21 7.62 26
=====================================================================================================================
Municipal Auction Rate Cumulative
Preferred Stock 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:
2002(a) $525,000 $25,000 $70,024
2001 525,000 25,000 71,394
2000 525,000 25,000 68,221
1999 525,000 25,000 65,881
1998 475,000 25,000 77,566
1997 475,000 25,000 76,298
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------
Year Ended 10/31:
2002(a) 347,000 25,000 69,569
2001 347,000 25,000 70,992
2000 347,000 25,000 68,658
1999 347,000 25,000 68,262
1998 300,000 25,000 79,987
1997 300,000 25,000 78,632
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------
Year Ended 10/31:
2002(a) 338,400 25,000 68,073
2001 338,400 25,000 70,434
2000 338,400 25,000 68,247
1999 338,400 25,000 68,110
1998 308,400 25,000 74,822
1997 308,400 25,000 73,424
===================================================================
* 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, reinvested capital
gains distributions, 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, 2002.
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 EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen 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
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
JPMorgan Chase Bank
P.O. Box 660086
Dallas, TX 75266-0086
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended April 30, 2002. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
49
Serving Investors
FOR GENERATIONS
PHOTO OF: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Logo: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com FSA-5-4-02