UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7432
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Nuveen Premium Income Municipal Fund 4, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31st
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Date of reporting period: April 30th
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT April 30, 2003
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
PREMIUM INCOME
NPI
NPM
NPT
PHOTO OF: MAN AND CHILD FISHING.
PHOTO OF: 2 MEN, CHILD AND DOG FISHING.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
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NUVEEN FUND REPORT
ELECTRONICALLY
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Registering is easy and only takes a few minutes (see instructions at right).
--------------------------------------------------------------------------------
SOME COMMON CONCERNS:
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WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
--------------------------------------------------------------------------------
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM
2 Refer to the address sheet that accompanied this report. Enter the personal
13-CHARACTER ENROLLMENT NUMBER imprinted near your name.
3 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g.
yourID@providerID.com), and a personal, 4-digit PIN number of your choice.
(Pick a number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
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back through these steps to make sure all the information is correct.
6 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
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e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
LOGO: NUVEEN INVESTMENTS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "NO ONE KNOWS WHAT THE FUTURE WILL BRING, WHICH IS WHY WE THINK A
WELL-BALANCED PORTFOLIO ... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR
LONG-TERM FINANCIAL GOALS."
Dear
SHAREHOLDER
Once again, I am pleased to report that over the most recent reporting period
your Fund continued to provide you with attractive tax-free monthly income. For
more specific information about the performance of your Fund, please see the
Portfolio Manager's Comments and Performance Overview sections of this report.
With interest rates at historically low levels, many have begun to wonder how
fixed-income investments will perform if interest rates begin to rise. No one
knows what the future will bring, which is why we think a well-balanced
portfolio that is structured and carefully monitored with the help of an
investment professional is an important component in achieving your long-term
financial goals. A well-diversified portfolio may actually help to reduce your
overall investment risk, and we believe that municipal bond investments like
your Nuveen Fund can be important building blocks in a portfolio crafted to
perform well through a variety of market conditions.
I'd also like to direct your attention to the inside front cover of this report,
which explains the quick and easy process to begin receiving Fund reports like
this via e-mail and the internet. Thousands of Nuveen Fund shareholders already
have signed-up, and they are getting their Fund information faster and more
conveniently than ever. I urge you to consider joining them.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/S/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 16, 2003
1
Nuveen Municipal Closed-End Exchange-Traded Funds
(NPI, NPM, NPT)
Portfolio Manager's
COMMENTS
Portfolio manager Tom Spalding reviews economic and market conditions, key
investment strategies, and the recent performance of the Funds. Tom, who has
managed municipal portfolios with Nuveen since 1976, assumed responsibility for
NPI, NPM, and NPT in January 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE PERIOD
ENDED APRIL 30, 2003?
The underlying economic and market conditions have not changed much since our
last shareholder report dated October 31, 2002. We believe the most influential
factors shaping the U.S. economy and the municipal market during this reporting
period continued to be the sluggish pace of economic growth and interest rates
that remained at 40-year lows. At the same time, continued geopolitical
concerns, centering on the ongoing threat of terrorism and the situation in
Iraq, also had an impact during this reporting period, particularly in terms of
investor sentiment.
In the municipal market, the slow economic recovery and the continued lack of
inflationary pressures created conditions that helped many bonds perform well
during this reporting period. As of April 2003, inflation was running at 1.5%
annualized, the lowest annual rate in 37 years. Following a record year in 2002,
municipal issuance nationwide remained very heavy during the first four months
of 2003, with $113.5 billion in new municipal bonds coming to market, an
increase of 21% over the same period in 2002. Despite the large supply of new
municipal bonds, firm or improving prices indicated continued strong demand from
investors. In particular, institutional investors such as property/casualty
insurance companies, hedge funds, arbitrage accounts and pension funds were
active buyers in the municipal market over much of this reporting period.
HOW DID THESE FUNDS PERFORM OVER THE TWELVE-MONTH PERIOD ENDED APRIL 30, 2003?
Individual results for the Funds, as well as for appropriate benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
4/30/03 EQUIVALENT3 4/30/03 4/30/03 4/30/03
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NPI 6.59% 9.41% 8.32% 8.49% 10.27%
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NPM 6.64% 9.49% 9.93% 8.49% 10.27%
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NPT 6.52% 9.31% 6.97% 8.49% 10.27%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the twelve months ended April 30, 2003, NPI performed in line with the
Lehman Index and under its Lipper Fund peer group average. NPM outperformed the
Lehman Index, but also underperformed relative to its Lipper peer group. NPT
underperformed both the Lehman index and its Lipper peer group.
1 The total annual returns on common share net asset value (NAV) for these
Funds are compared with the total annual return 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 The total returns of these Nuveen Funds are compared with the average
annualized return of the 58 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%.
2
The relative performance of these Funds was influenced by several factors,
including call exposure, portfolio trading activity, and the price movements of
specific sectors and holdings. For example, the returns of both NPI and NPT were
impacted during the reporting period by their holdings of bonds backed by
American Airlines and United Air Lines. Over the twelve-month period, the market
value of most airline-backed bonds fell, due in part to a decline in passenger
volume and in part to the well-documented financial difficulties of these
companies. As of April 30, 2003, NPI held $27.5 million par value, or 2% of its
portfolio, in bonds backed by United and American, and their depreciation over
the twelve-month period cost the Fund approximately 250 basis points in total
return performance. NPT held $4.5 million at par in bonds backed by American,
which resulted in underperformance of about 135 basis points for that Fund.
NPT's performance also continued to be affected by its holdings of several
distressed credits, including several multifamily housing issues that accounted
for a little over 3% of the Fund's par value as of April 30, 2003. Another
distressed holding, bonds issued for CanFibre of Lackawanna, New York, was sold
from NPT's portfolio in February 2003. Its further decline in the months prior
to the sale resulted in a loss for the Fund that is reflected in the
twelve-month return.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels over the
twelve-month period, the dividend-payment capabilities of these Funds benefited
from their use of leverage. The extent of this benefit is tied in large part to
the short-term rates the Funds pay their MuniPreferred, shareholders. Low
short-term rates can enable the Funds to reduce the amount of income they pay
MuniPreferred shareholders, which potentially can leave more earnings to support
common share dividends. During the twelve months ended April 30, 2003, the
continued low level of short-term interest rates enabled us to implement three
dividend increases in NPI and one increase in NPM. NPT continued to pay steady,
attractive dividends during this period, marking 35 consecutive months of stable
or increasing dividends for shareholders as of April 30, 2003.
3
Over the course of this twelve-month period, favorable market conditions and
strong investor demand helped to boost the share prices of all three Funds.
Since their NAVs also increased, these Funds continued to trade at a discount to
their common share net asset values as of April 30, 2003 (see charts on
individual Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THE PREMIUM INCOME FUNDS DURING THE
PERIOD ENDED APRIL 30, 2003?
Over the reporting period, we continued to place strong emphasis on diversifying
the Funds' portfolios, enhancing call protection and supporting their future
dividend-paying capabilities. Strategically, our main focus centered on
systematically shortening the Funds' durations4, which we believe will help us
better control the Funds' interest rate risk over time and enhance their ability
to produce consistent returns. Interest rate risk is the risk that the value of
a Fund's portfolio will decline when market interest rates rise (since bond
prices move in the opposite direction of interest rates). The longer the
duration of a Fund's portfolio, the greater its interest rate risk.
In line with our moderated duration strategy, we concentrated on finding value
in the long-intermediate part of the yield curve (i.e., bonds that mature in
about 20 years). In many cases, these long-intermediate bonds were offering
yields similar to those of longer bonds but, in our opinion, had less inherent
interest rate risk. Over the period, the purchase of bonds in this part of the
curve helped to shorten the durations of these Funds, making their portfolios
less sensitive to any changes in the interest rate environment while still
allowing them to provide competitive yields.
In general, the heavy issuance in the municipal market over the past year
provided us with increased opportunities to purchase the types of bond
structures that we favor. We also continued to look for individual issues that
we believed would perform well regardless of the future direction of interest
rates. Overall, we emphasized undervalued sectors of the market and geographical
areas with healthy levels of issuance, such as Texas and Florida.
Each of these Funds also held small amounts (less than 5% of the portfolio's par
value) in bonds backed by the 1998 Master Tobacco Settlement Agreement. Over the
past five years, fourteen states, the District of Columbia, Puerto Rico, Guam,
New York City, and individual counties in California and New York have issued
almost $20 billion of tobacco securitization bonds backed by this agreement. In
recent months, the prices of these bonds weakened as the result of lawsuits
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. References to duration in this commentary are
intended to indicate Fund duration unless otherwise noted.
4
involving the major tobacco companies as well as the increased issuance of such
bonds by states planning to use the proceeds to help close budget gaps. Although
the sector as a whole produced negative returns over the twelve-month period,
tobacco bonds showed some recovery toward the end of the period.
Given the current geopolitical and economic climate, we believed that
maintaining strong credit quality remained a vital requirement, and we continued
to emphasize higher rated and insured bonds in our purchases for the Funds. As
of April 30, 2003, each of these Funds offered excellent credit quality, with
allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 78% to 86%.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET AND THE FUNDS?
We think new issuance volume should remain strong, as issuers continue to take
advantage of the low rate environment. Adding to our expectations for continued
strong issuance are the budget deficits affecting many states, and their
continued need to raise money for infrastructure, education and healthcare
needs. Over coming months, we will continue to closely monitor the states'
budgetary situations to watch for any potential impact on credit ratings.
Looking at the bond call exposure of these Funds, each has between 12% to 14% of
its portfolio subject to calls over the remainder of 2003. However, we believe
the difference between the coupons of a number of these callable bonds and the
rates at which new bonds could be issued makes it unlikely that we'll see all of
these potential bond calls actually take place. In 2004, call exposure for each
Fund drops back into the single digits. The number of actual calls during this
time will depend largely on market interest rates and individual decisions made
by issuers.
In the coming months, our primary goal will continue to be moderating the Funds'
durations. In addition, we plan to watch for opportunities to purchase or swap
for issues that we perceive to be undervalued, particularly in sectors of the
market that have recently underperformed. The expected strong supply of new
bonds should help us in this effort.
We believe these Funds continue to serve as a source of attractive tax-free
income and portfolio diversification, and are convinced they will continue to
offer benefits for shareholders in the months ahead.
5
Nuveen Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of April 30, 2003
NPI
PIE CHART:
CREDIT QUALITY
AAA/U.S. GUARANTEED 71%
AA 15%
A 11%
BBB 1%
NR 1%
BB or Lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.56
--------------------------------------------------
Common Share Net Asset Value $15.08
--------------------------------------------------
Market Yield 6.59%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.41%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $961,781
--------------------------------------------------
Average Effective Maturity (Years) 18.94
--------------------------------------------------
Leverage-Adjusted Duration 8.44
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/88)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 10.72% 8.32%
--------------------------------------------------
5-Year 6.48% 5.86%
--------------------------------------------------
10-Year 5.21% 5.97%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 18%
--------------------------------------------------
Tax Obligation/General 14%
--------------------------------------------------
U.S. Guaranteed 13%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Housing/Single Family 9%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/02 0.0755
6/02 0.0775
7/02 0.0775
8/02 0.0775
9/02 0.0785
10/02 0.0785
11/02 0.0785
12/02 0.0785
1/03 0.0785
2/03 0.0785
3/03 0.08
4/03 0.08
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/02 14.09
14.07
13.88
13.93
13.98
13.98
14.07
14.29
14.5
14.47
14.42
14.4
14.35
14.6
14.63
14.54
14.5
14.64
14.6
14.63
14.74
14.85
14.99
14.72
13.98
13.87
14.2
14.07
14.12
13.65
13.71
13.98
13.84
13.77
13.9
14.08
13.76
13.86
14
14.07
14.26
14.15
14.2
14.19
14.23
14.09
13.97
14.26
14.17
14.2
14.32
4/30/03 14.5
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
Nuveen Premium Income Municipal Fund 2, Inc.
Performance
OVERVIEW As of April 30, 2003
NPM
PIE CHART:
CREDIT QUALITY
AAA/U.S. GUARANTEED 67%
AA 12%
A 16%
BBB 2%
NR 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.73
--------------------------------------------------
Common Share Net Asset Value $15.42
--------------------------------------------------
Market Yield 6.64%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.49%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $633,716
--------------------------------------------------
Average Effective Maturity (Years) 16.94
--------------------------------------------------
Leverage-Adjusted Duration 9.92
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.95% 9.93%
--------------------------------------------------
5-Year 5.94% 6.18%
--------------------------------------------------
10-Year 7.18% 7.09%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 27%
--------------------------------------------------
U.S. Guaranteed 17%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
Housing/Single Family 7%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/02 0.0805
6/02 0.0815
7/02 0.0815
8/02 0.0815
9/02 0.0815
10/02 0.0815
11/02 0.0815
12/02 0.0815
1/03 0.0815
2/03 0.0815
3/03 0.0815
4/03 0.0815
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/02 14.42
14.48
14.55
14.5
14.58
14.55
14.54
14.54
14.71
15.01
14.78
14.84
14.7
14.89
15.16
14.98
14.88
15.09
15.2
15.05
15.07
15.2
15.16
14.95
14.3
14.25
14.4
14.68
14.23
14.08
14.35
14.48
14.19
14.09
14.28
14.47
14.16
14.14
14.28
14.32
14.36
14.24
14.37
14.37
14.52
14.33
14.2
14.61
14.61
14.43
14.53
4/30/03 14.66
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 capital gains and net ordinary income
distributions in December 2002 of $0.1047 per share.
7
Nuveen Premium Income Municipal Fund 4, Inc.
Performance
OVERVIEW As of April 30, 2003
NPT
PIE CHART:
CREDIT QUALITY
AAA/U.S. GUARANTEED 62%
AA 16%
A 13%
BBB 3%
NR 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $13.07
--------------------------------------------------
Common Share Net Asset Value $13.54
--------------------------------------------------
Market Yield 6.52%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.31%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $585,306
--------------------------------------------------
Average Effective Maturity (Years) 17.25
--------------------------------------------------
Leverage-Adjusted Duration 9.23
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 7.23% 6.97%
--------------------------------------------------
5-Year 5.06% 4.55%
--------------------------------------------------
10-Year 5.46% 5.74%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 15%
--------------------------------------------------
Utilities 15%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Housing/Multifamily 11%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/02 0.071
6/02 0.071
7/02 0.071
8/02 0.071
9/02 0.071
10/02 0.071
11/02 0.071
12/02 0.071
1/03 0.071
2/03 0.071
3/03 0.071
4/03 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/02 13.1
13.02
12.92
12.99
13.25
13.2
13.11
13.3
13.55
13.76
13.47
13.62
13.4
13.55
13.41
13.27
13.27
13.4
13.59
13.66
13.66
13.57
13.8
13.46
12.53
12.61
13.15
13.25
13.09
12.6
12.84
13.09
12.89
12.67
12.96
13.27
12.92
12.88
12.81
12.88
12.93
12.88
12.81
12.86
13.02
12.95
12.68
12.91
12.98
12.8
12.87
4/30/03 12.85
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 2002 of $0.0021 per share.
8
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.9%
$ 9,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A1 $ 8,456,139
Bonds, Series 2000, 6.125%, 12/01/16
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ALASKA - 0.9%
10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 A- 8,581,900
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.3%
7,565 The Industrial Development Authority of the County of Pima, 7/03 at 102.50 AAA 7,994,314
Arizona, Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A, Irvington Project,
7.250%, 7/15/10 - FSA Insured
4,130 Arizona Board of Regents, Certificates of Participation, 6/12 at 100.00 AAA 4,453,462
University of Arizona Projects, Series 2002B, 5.125%, 6/01/18 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.1%
3,500 Arkansas Development Finance Authority, Drivers License 6/07 at 100.00 AAA 3,861,200
Revenue Bonds, Arkansas State Police Headquarters
and Wireless Data Equipment, Series 1997, 5.400%, 6/01/18 -
FGIC Insured
480 City of Paragould, Arkansas, Water, Sewer, and Electric Revenue 12/10 at 100.00 AAA 531,595
Bonds, Series 2000, 5.650%, 12/01/25 - AMBAC Insured
1,000 Sebastian County, Arkansas, Community Junior College District, 4/09 at 100.00 AAA 1,176,370
General Obligation Improvement Bonds, Series 1999,
5.950%, 4/01/29 (Pre-refunded to 4/01/09) - AMBAC Insured
5,245 Board of Trustees of the University of Arkansas, Athletic 9/09 at 100.00 Aaa 5,467,703
Facilities Revenue Bonds, Razorback Stadium Project,
Series 1999, 5.050%, 9/15/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 13.5%
10,250 State of California, General Obligation Veteran's Welfare 12/08 at 101.00 AAA 10,918,198
Bonds, Series 1997BH, 5.250%, 12/01/12 (Alternative
Minimum Tax) - FSA Insured
4,000 State of California, Department of Water Resources, Power 5/12 at 101.00 A3 4,616,360
Supply Revenue Bonds, Series 2002A, 6.000%, 5/01/15
23,725 State Public Works Board, California, Lease Revenue Refunding 6/03 at 102.00 Aa2 24,274,708
Bonds, Regents of the University of California, 1993 Series A,
Various University of California Projects, 5.500%, 6/01/21
11,395 State Public Works Board, California, Lease Revenue Bonds, No Opt. Call A- 12,897,203
Department of Corrections, 1993 Series E, California State
Prison - Madera County (II), 5.500%, 6/01/15
5,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A- 4,874,375
Tobacco Settlement Asset-Backed Bonds, Series 2003-A1,
6.750%, 6/01/39
16,520 Los Angeles Convention and Exhibition Center Authority, 8/03 at 102.00 AAA 17,034,598
California, Lease Revenue Bonds, 1993 Refunding Series A,
5.375%, 8/15/18 - MBIA Insured
1,240 City of Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,832,782
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*** 4,292,929
Moorpark Redevelopment Project, 1993 Tax Allocation Bonds,
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 27,253,800
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 3,120,120
Revenue Refunding Bonds, 1993 Series D, 5.250%, 11/15/20 -
MBIA Insured
San Bernardino Joint Powers Financing Authority, California,
Tax Allocation Refunding Bonds, Series 1995A:
6,675 5.750%, 10/01/15 - FSA Insured 10/05 at 102.00 AAA 7,403,910
10,000 5.750%, 10/01/25 - FSA Insured 10/05 at 102.00 AAA 11,066,800
9
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.5%
$ 2,305 Colorado Housing and Finance Authority, Single Family Program 4/10 at 105.00 AA $ 2,452,658
Senior Bonds, 2000 Series B-2, 7.250%, 10/01/31
(Alternative Minimum Tax)
2,120 Colorado Housing and Finance Authority, Single Family Program 5/07 at 105.00 Aa2 2,171,728
Senior Bonds, 1997 Series B-2, 7.000%, 5/01/26 (Alternative
Minimum Tax)
1,540 Colorado Housing and Finance Authority, Single Family Program 11/07 at 105.00 Aa2 1,576,021
Senior Bonds, 1997 Series C-2, 6.875%, 11/01/28 (Alternative
Minimum Tax)
9,450 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 11,714,503
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
5,730 City and County of Denver, Colorado, Airport System Revenue 11/08 at 101.00 AAA 5,807,126
Bonds, Series 1998B, 5.000%, 11/15/25 - FSA Insured
19,810 City and County of Denver, Colorado, Excise Tax Revenue Bonds, 3/11 at 100.00 AAA 21,797,934
Series 2001A, Colorado Convention Center Project,
5.500%, 9/01/18 - FSA Insured
8,315 City and County of Denver, Colorado, Special Facilities Airport 10/03 at 101.00 Ca 2,436,295
Revenue Bonds, United Air Lines, Inc. Project, Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax) #
268 El Paso County, Colorado, Single Family Mortgage Revenue No Opt. Call Aaa 289,410
Tax-Exempt Refunding Bonds, Series 1992A, Class A-2,
8.750%, 6/01/11
4,000 Northwest Parkway Public Highway Authority, Colorado, Revenue 6/11 at 102.00 AAA 4,180,000
Bonds, Senior Series 2001 A, 5.250%, 6/15/41 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
1,930 State of Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,270,703
5.500%, 12/15/16
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.6%
9,505 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 11,465,216
6.000%, 6/01/20 - MBIA Insured
14,160 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103.00 AAA 14,586,074
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 10,897,515
Medical Colleges Issue, Series 1997A, 5.375%, 2/15/27 -
AMBAC Insured
16,665 District of Columbia, University Revenue Bonds, Georgetown 4/11 at 29.23 AAA 3,132,853
University Issue, Series 2001A, 0.000%, 4/01/32 -
MBIA Insured
5,370 District of Columbia, Tobacco Settlement Financing Corporation, No Opt. Call A- 4,572,716
Tobacco Settlement Asset-Backed Bonds, Series 2001,
6.500%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.1%
5,000 Broward County Board of Education, Florida, Certificates of 7/13 at 100.00 AAA 5,160,700
Participation, Series 2003, 5.000%, 7/01/28 - MBIA Insured
9,290 State of Florida, Full Faith and Credit, Department of 7/05 at 101.00 AAA 10,249,285
Transportation, Right-of-Way Acquisition and Bridge
Construction Bonds, Series 1995, 5.800%, 7/01/21
(Pre-refunded to 7/01/05)
8,000 Hillsborough County Aviation Authority, Florida, Tampa 10/13 at 100.00 AAA 8,711,600
International Airport Revenue Bonds, Series 2003A,
5.375%, 10/01/16 (Alternative Minimum Tax) - MBIA Insured
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A- 5,430,150
Revenue Bonds, Series 2000, Adventist Health System/Sunbelt
Obligated Group, 6.500%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.9%
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call AAA 6,034,060
Tax Revenue Bonds, Refunding Series P, 6.250%, 7/01/20 -
AMBAC Insured
2,750 Savannah Housing Authority, Georgia, Mortgage Revenue 5/08 at 103.00 Aaa 2,967,415
Bonds, Plantation Oak GNMA Collateralized, Series 2000
Refunding, 6.350%, 11/20/39
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.3%
3,000 Hawaii Department of Budget and Finance, Special Purpose 12/03 at 101.00 BBB 2,521,890
Mortgage Revenue Bonds, Citizens Utilities, Series 1993,
5.538%, 12/15/23 (Alternative Minimum Tax)
10
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.5%
$ 5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, 9/10 at 100.00 Aaa $ 5,218,650
Series 2000, 5.500%, 9/01/25 (Alternative Minimum Tax) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.1%
10,000 City of Chicago, Illinois, General Obligation Bonds, Project 1/11 at 101.00 AAA 10,171,800
and Refunding Series 2001A, 5.000%, 1/01/31 - MBIA Insured
9,220 Chicago School Reform Board of Trustees of the Board of 12/07 at 102.00 AAA 9,674,823
Education, City of Chicago, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
3,000 City of Chicago, Illinois, Motor Fuel Tax Revenue Bonds, 7/13 at 100.00 AAA 3,058,530
Series 2003A, 5.000%, 1/01/33 - AMBAC Insured
9,000 City of Chicago, Illinois, Chicago O'Hare International Airport, No Opt. Call Ca 2,317,500
Special Facility Revenue Bonds, United Air Lines, Inc. Project,
Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax)
(Mandatory put 5/01/13)#
4,530 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/04 at 102.00 AAA 4,712,921
General Airport Second Lien, Revenue Refunding Bonds,
1993 Series C, 5.000%, 1/01/18 - MBIA Insured
1,225 City of Chicago, Illinois, Collateralized Single Family Mortgage 3/06 at 105.00 Aaa 1,249,206
Revenue Bonds, Series 1996-A, 7.000%, 9/01/27 (Alternative
Minimum Tax)
2,755 City of Chicago, Illinois, Collateralized Single Family 9/07 at 105.00 Aaa 2,870,545
Mortgage 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 9,166,599
Refunding Revenue Bonds, 1994 Series A, Illinois Power
Company Project, 5.700%, 2/01/24 - MBIA Insured
8,500 Illinois Educational Facilities Authority, Revenue Refunding 7/03 at 102.00 Aa1 8,725,335
Bonds, The University of Chicago, Series 1993B,
5.600%, 7/01/24
1,500 Illinois Health Facilities Authority, Revenue Bonds, 10/07 at 102.00 AAA 1,750,635
Series 1997A, Highland Park Hospital Project,
5.750%, 10/01/26 (Pre-refunded to 10/01/07) - MBIA Insured
13,545 Illinois Health Facilities Authority, Revenue Bonds, 8/07 at 101.00 AAA 13,883,760
Series 1997, Sherman Health Systems, 5.250%, 8/01/27 -
AMBAC Insured
5,000 Illinois Health Facilities Authority, Revenue Bonds, 2/11 at 101.00 AAA 5,139,250
Series 2001B, Edward Hospital Obligation Group,
5.250%, 2/15/34 - FSA Insured
9,200 Metropolitan Pier and Exposition Authority, Illinois, McCormick 12/09 at 101.00 AAA 9,967,556
Place Expansion Project Bonds, Series 1999A,
5.500%, 12/15/24 - FGIC Insured
3,000 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 4,027,110
Series 1996A, McCormick Place Hospitality Facilities
Revenue Bonds, 7.000%, 7/01/26
4,925 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 5,971,809
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1992A, 9.000%, 6/01/06 - AMBAC Insured
785 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 951,852
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1992B, 9.000%, 6/01/06 - AMBAC Insured
3,000 Upper Illinois River Valley Development Authority, Healthcare 12/11 at 101.00 BBB+ 3,172,230
Facilities Revenue Bonds, Series 2001, Morris Hospital,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5%
5,000 Center Grove 2000 Building Corporation, Indiana, First 7/11 at 100.00 AAA 5,330,800
Mortgage Bonds, Series 2001, 5.500%, 1/15/26 -
AMBAC Insured
4,565 Indiana State Office Building Commission, Correctional 7/05 at 102.00 AAA 4,984,706
Facilities Program Revenue Bonds, Series 1995A,
5.500%, 7/01/20 - AMBAC Insured
8,000 Metropolitan School District of Steuben County, Indiana, 7/05 at 102.00 AAA 9,018,720
Middle School Building Corporation, First Mortgage Bonds,
Series 1995, 6.375%, 7/15/16 (Pre-refunded to 7/15/05) -
MBIA Insured
7,965 Wawasee Community School Corporation, Indiana, 1/12 at 101.00 AA- 8,762,535
New Elementary and Remodeling Building Corporation,
First Mortgage Bonds, Series 2000, 5.750%, 1/15/20
5,300 Whitley County Middle School Building Corporation, 1/04 at 102.00 AAA 5,598,496
Columbia City, Indiana, First Mortgage Bonds, Series 1994,
6.250%, 7/15/15 (Pre-refunded to 1/15/04) - MBIA Insured
11
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.4%
City of Des Moines, Iowa, General Obligation Bonds,
Series 2000D:
$ 1,215 5.750%, 6/01/17 - MBIA Insured 6/08 at 100.00 AAA $ 1,379,462
1,410 5.800%, 6/01/18 - MBIA Insured 6/08 at 100.00 AAA 1,600,604
3,000 Iowa Finance Authority, Private College Refunding Revenue 12/05 at 102.00 AAA 3,315,990
Bonds, Drake University Project, Series 1996,
5.400%, 12/01/16 - MBIA Insured
4,970 Iowa Finance Authority, Industrial Revenue Refunding No Opt. Call AAA 7,162,714
Bonds, Urbandale Hotel Corporation Project, Series 1989A
Remarketed, 8.500%, 8/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.3%
11,000 Sedgwick and Shawnee Counties, Kansas, Single Family 6/08 at 105.00 Aaa 12,164,900
Mortgage Revenue Bonds, Mortgaged-Backed Securities
Program, 1998 Series A1, 6.500%, 12/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.7%
2,915 Jefferson Sales Tax District, Parish of Jefferson, Louisiana, 12/12 at 100.00 AAA 3,165,165
Special Sales Tax Revenue Bonds, Series 2002 Refunding,
5.250%, 12/01/19 - AMBAC Insured
1,700 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa 1,805,162
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 13,350,446
Tax Bonds, Series 1995-B, 6.375%, 7/01/25 (Pre-refunded
to 7/01/05) - FGIC Insured
7,660 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 9,714,182
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
9,660 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 A- 7,582,327
Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4%
3,600 Housing Opportunities Commission of Montgomery County, 7/10 at 100.00 Aaa 3,880,692
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.0%
10,000 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 10,519,100
Bonds, 2000 Series A, 5.250%, 7/01/30
13,000 The Commonwealth of Massachusetts, General Obligation 6/10 at 100.00 AAA 15,345,200
Bonds, Consolidated Loan of 2000, Series B, 6.000%, 6/01/16
(Pre-refunded to 6/01/10)
13,250 Commonwealth of Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 14,241,895
Consolidated Loan, Series 2002E, 5.250%, 1/01/21 -
FSA Insured
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,694,598
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
14,750 Massachusetts Industrial Finance Agency, General Obligation 7/07 at 102.00 AAA 15,534,848
Bonds, Suffolk University, Series 1997, 5.250%, 7/01/27 -
AMBAC Insured
8,750 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 9,255,925
Mortgage Revenue Bonds, 2001 Series A, 5.850%, 7/01/35
(Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.6%
10,550 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 100.00 AAA 10,638,725
Refunding Bonds, Series 1995-B, 5.000%, 7/01/25 - MBIA Insured
Hudsonville Public Schools, Counties of Ottawa and Allegan,
State of Michigan, 1997 School Building and Site and Refunding
Bonds, General Obligation Unlimited Tax:
10,510 5.150%, 5/01/22 - FGIC Insured 5/08 at 100.00 AAA 10,851,890
8,045 5.150%, 5/01/27 - FGIC Insured 5/08 at 100.00 AAA 8,248,699
9,625 Livonia Public Schools District, County of Wayne, State of 5/03 at 102.00 AAA 10,000,664
Michigan, 1993 Refunding Bonds, General Obligation -
Unlimited Tax, 5.500%, 5/01/21 - FGIC Insured
6,600 Michigan State Housing Development Authority, Limited 7/07 at 102.00 AAA 6,839,976
Obligation Multifamily Mortgage Revenue Refunding Bonds,
Series 1999A, Forest Hills Regency Square Project,
5.750%, 7/01/29
6,390 Charter County of Wayne, Michigan, Airport Revenue Bonds, 12/12 at 100.00 AAA 6,839,153
Detroit Metropolitan Airport, Series 2002D, 5.500%, 12/01/19
(Alternative Minimum Tax) - FGIC Insured
12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.0%
City of Eden Prairie, Minnesota, Multifamily Housing Revenue
Bonds, GNMA Collateralized Mortgage Loan - Rolling Hills
Project, Series 2001A:
$ 1,000 6.150%, 8/20/31 8/11 at 105.00 Aa2 $ 1,121,730
2,000 6.200%, 2/20/43 8/11 at 105.00 Aa2 2,239,140
1,145 The Minneapolis/St. Paul Housing Finance Board, Minnesota, 11/04 at 102.00 AAA 1,181,079
Single Family Mortgage Revenue Bonds, Minneapolis/Saint
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 3,104,040
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/22 - AMBAC Insured
5,000 Minnesota Agricultural and Economic Development Board, 11/07 at 102.00 AAA 5,497,750
Healthcare System Revenue Bonds, Series 1997A, Fairview
Hospital and Healthcare Services, 5.750%, 11/15/26 -
MBIA Insured
19,900 The Housing and Redevelopment Authority of the City of Saint 11/15 at 103.00 AAA 25,172,903
Paul, Minnesota, Sales Tax Revenue Refunding Bonds,
Civic Center Project, Series 1996, 7.100%, 11/01/23 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 5.4%
2,000 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,056,380
Agency, Metrolink Cross County Extension Project, Mass
Transit Sales Tax Appropriation Bonds, Series 2002B,
5.000%, 10/01/32 - FSA Insured
3,655 Missouri Housing Development Commission, Single Family 3/07 at 105.00 AAA 3,877,845
Mortgage Revenue Bonds, Homeownership Loan Program,
1996 Series C, 7.450%, 9/01/27 (Alternative Minimum Tax)
Health and Educational Facilities Authority, State of Missouri,
Revenue Bonds, SSM Healthcare Series 2001A:
3,000 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 3,146,760
14,150 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 14,649,637
13,975 Missouri Housing Development Commission, Single Family 3/09 at 103.00 AAA 15,244,908
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 13,205,667
General Obligation Bonds, Series 1994A Refunding,
7.800%, 3/01/08 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.2%
8,500 Omaha, Nebraska, General Obligation Bonds, Convention No Opt. Call AAA 11,081,365
Center Project, Series 2000A, 6.500%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 9.3%
15,000 Clark County, Nevada, General Obligation Bond Bank, 6/11 at 100.00 AAA 15,708,300
Series 2001, Southern Nevada Water Authority Loan,
5.250%, 6/01/26 - FGIC Insured
14,810 Clark County School District, Nevada, General Obligation 12/11 at 100.00 AAA 16,399,261
Bonds, Series 2001F, 5.500%, 6/15/18 - FSA Insured
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,580,813
Bonds, Series 2002C, 5.500%, 6/15/18 - MBIA Insured
Director of the State of Nevada, Department of Business and
Industry, Las Vegas Monorail Project, Revenue Bonds, 1st Tier
Series 2000:
6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call AAA 1,643,644
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 12,723,960
29,410 State of Nevada, Colorado River Commission General 7/04 at 101.00 AA 30,954,319
Obligation Bonds, Limited Tax, Revenue Supported,
Series 1994, 5.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.5%
4,660 New Hampshire Housing Finance Authority, Single Family 7/03 at 102.00 Aa2 4,760,842
Mortgage Revenue Bonds, 1993 Series B, 6.050%, 7/01/25
6,500 Business Finance Authority of the State of New Hampshire, 10/03 at 102.00 A3 6,588,660
Pollution Control Refunding Revenue Bonds (The United
Illuminating Company Project), 1993 Series A,
5.875%, 10/01/33
3,095 New Hampshire Housing Finance Authority, Single Family 7/06 at 102.00 Aa2 3,244,550
Mortgage Acquisition Revenue Bonds, 1996 Series B,
6.400%, 1/01/27 (Alternative Minimum Tax)
13
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.1%
$ 10,150 Delaware River Port Authority, States of New Jersey and 1/10 at 100.00 AAA $ 11,192,101
Pennsylvania, Port District Project Bonds, Series 1999B,
5.625%, 1/01/26 - FSA Insured
10,000 The Essex County Improvement Authority, New Jersey, 10/10 at 100.00 Aaa 11,574,900
General Obligation Guaranteed Lease Revenue Bonds,
Series 2000, County Correctional Facility Project,
6.000%, 10/01/25 - FGIC Insured
15,000 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 15,763,050
Home Buyer Revenue Bonds, 1997 Series U, 5.850%, 4/01/29
(Alternative Minimum Tax) - MBIA Insured
11,500 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 13,785,395
Series 2000 A, 6.000%, 1/01/14 - MBIA Insured
4,800 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 A- 3,876,384
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/42
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
425 6.750%, 6/01/39 6/13 at 100.00 A- 376,656
2,700 6.250%, 6/01/43 6/13 at 100.00 A- 2,220,129
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.0%
2,670 Mew Mexico Mortgage Finance Authority, Single Family 3/10 at 102.50 AAA 3,067,483
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 6,793,706
Bonds, Series 1997, 6.000%, 2/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.1%
13,000 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101.00 A- 11,815,830
New York, Tobacco Settlement Asset- Backed Bonds,
Series 2000, Senior, 6.250%, 7/15/40
14,580 Long Island Power Authority, New York, Electric System 6/08 at 101.00 A- 15,070,180
General Revenue Bonds, Series 1998A, 5.250%, 12/01/26
2,000 New York Counties Tobacco Trust I, New York, Tobacco 6/10 at 101.00 A- 1,888,460
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 10,984,400
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 117,412
5,900 6.000%, 10/15/26 10/07 at 101.00 A 6,256,773
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series B:
6,020 9.500%, 6/01/03 No Opt. Call A2*** 6,063,163
1,480 9.500%, 6/01/03 No Opt. Call A 1,490,612
16,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 17,729,440
Water and Sewer System Revenue Bonds, Fiscal 1996
Series B, 5.750%, 6/15/26 - MBIA Insured
2,000 Dormitory Authority of the State of New York, Revenue 7/06 at 102.00 AAA 2,156,320
Bonds, Department of Health Issue, Series 1996,
5.500%, 7/01/25 - MBIA Insured
4,000 New York State Energy Research and Development Authority, 9/03 at 102.00 A+ 4,083,520
Facilities Revenue Bonds, Series 1993A, Consolidated Edison
Company of New York, Inc. Project, 6.000%, 3/15/28
(Alternative Minimum Tax)
3,855 New York State Medical Care Facilities Finance Agency, 2/04 at 102.00 AAA 4,029,786
Hospital and Nursing Home FHA-Insured Mortgage
Revenue Bonds, 1993 Series B, 5.500%, 2/15/22
14,000 New York State Urban Development Corporation, Correctional No Opt. Call AA- 15,584,520
and Youth Facilities Service Contract Revenue Bonds,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.3%
3,000 North Carolina Medical Care Commission, Healthcare Facilities 10/13 at 100.00 AA 3,001,080
Revenue Bonds, High Chatham Memorial Hospital Project,
Series 2003, 5.000%, 10/01/33 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.2%
9,650 Dickinson, North Dakota, Healthcare Facilities Revenue Bonds, 2/10 at 102.00 AA 11,872,106
Series 1990, BHS Long-Term Care Inc., 7.625%, 2/15/20 -
RAAI Insured
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.8%
$ 4,265 County of Franklin, Ohio, Hospital Improvement Revenue Bonds, 5/11 at 101.00 Aaa $ 4,571,995
Series 2001, The Children's Hospital Project, 5.500%, 5/01/28 -
AMBAC Insured
12,360 State of Ohio, Turnpike Revenue Bonds, 1994 Series A, 2/04 at 102.00 Aaa 13,059,205
Issued by the Ohio Turnpike Commission, 5.750%, 2/15/24
(Pre-refunded to 2/15/04)
2,000 County of Richland, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 2,169,400
Bonds, Series 2000A, MedCentral Health System Obligated
Group, 6.125%, 11/15/16
7,000 City of Steubenville, Ohio, Hospital Facilities Revenue 10/10 at 100.00 A3 7,493,920
Refunding and Improvement Bonds, Series 2000, Trinity
Health System, 6.500%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.3%
15,650 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AAA 17,762,594
Local Government Revenue Bonds, Series 1998A,
5.500%, 8/01/28 - AMBAC Insured
10,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102.00 AA+ 10,311,300
Revenue Bonds, Series 37A, 5.450%, 10/01/17
8,405 Redevelopment Authority of the City of Philadelphia, 4/08 at 103.00 N/R 7,806,984
Pennsylvania, Multifamily Housing Mortgage Revenue
Bonds, Series 1998A, Cricket Court Commons Project,
6.200%, 4/01/25 (Alternative Minimum Tax)
5,295 The School District of Philadelphia, Pennsylvania, General 9/05 at 101.00 AAA 5,755,877
Obligation Bonds, Series B of 1995, 5.500%, 9/01/25 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.6%
5,770 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 6,147,993
Bonds, Series X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.1%
10,000 Rhode Island Housing and Mortgage Finance Corporation, 10/09 at 100.00 AA+ 10,394,200
Homeownership Opportunity Bonds, Series 35-A,
5.800%, 10/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.1%
12,500 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 A- 10,740,125
Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
3,285 The Memphis and Shelby Counties Sports Authority, Inc., 11/12 at 100.00 AAA 3,400,435
Tennessee, Revenue Bonds, 2002 Series B, Memphis Arena
Project, 5.125%, 11/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.6%
10,205 Alliance Airport Authority, Inc., Texas, Special Facilities 6/03 at 100.00 Caa2 3,572,158
Revenue Bonds, Series 1990, American Airlines, Inc. Project,
7.500%, 12/01/29 (Alternative Minimum Tax)
3,289 Austin Housing Finance Corporation, Texas, Multifamily 12/10 at 105.00 Aaa 3,761,202
Housing Revenue Bonds, Series 2000A, GNMA Collateralized
Mortgage Loan - Fairway Village Project, 7.375%, 6/20/35
(Alternative Minimum Tax)
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
4,850 6.000%, 2/15/16 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA 5,724,067
175 6.000%, 2/15/16 2/10 at 100.00 AAA 203,298
865 Harlingen Housing Finance Corporation, Texas, Single Family 9/10 at 105.00 AAA 954,588
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 20,646,800
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
MBIA Insured
15,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102.00 AAA 15,972,150
Bonds, Series 1994, 5.300%, 8/15/13 - AMBAC Insured
Harris County Hospital District, Texas, Refunding Revenue
Bonds, Series 1990:
4,205 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 4,836,044
6,670 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 7,870,467
15
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 19,125 Harris County, Texas, Hospital District, Refunding Revenue 8/10 at 100.00 AAA $ 21,659,063
Bonds, Series 2000, 6.000%, 2/15/15 - MBIA Insured
1,343 Heart of Texas Housing Finance Corporation, Multifamily 9/10 at 105.00 Aaa 1,558,189
Housing Revenue Bonds, Series 2000A, GNMA Collateralized
Mortgage Loan - Parkside Village Project, 7.400%, 9/20/35
(Alternative Minimum Tax)
6,000 City of Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 6,696,120
Bonds, Series 2001B, 5.500%, 3/01/15 - FSA Insured
9,250 City of Houston, Texas, Airport System Subordinate Lien 7/10 at 100.00 AAA 9,886,863
Revenue Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
4,000 Tarrant County, Texas, Health Facilities Development 11/10 at 101.00 A- 4,322,320
Corporation, Hospital Revenue Bonds, Series 2000, Adventist
Health System/Sunbelt Obligated Group, 6.700%, 11/15/30
12,020 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 14,444,314
Texas, Mortgage Revenue Bonds, GNMA Collateralized
Mortgage Loan - Eastview Nursing Home, Ebony Lake
Nursing Center, Ft. Stockton Nursing Center, Lynnhaven
Nursing Center and Mission Oaks Manor, Series 2000A-1,
7.625%, 12/20/32
5,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 5,493,200
Refunding and Improvement Bonds, Series 1999,
5.250%, 3/01/17 - FSA Insured
10,000 Board of Regents of the Texas A&M University, Revenue 5/09 at 100.00 AAA 10,846,700
Financing System Bonds, Series 1999, 5.550% 5/15/29 -
MBIA Insured
11,475 Texas Department of Housing and Community Affairs, 1/09 at 101.00 AAA 11,750,859
Residential Mortgage Revenue Bonds, Series 1998A,
5.350%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5%
5,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 5,193,900
1997 Series F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.0%
9,465 Vermont Housing Finance Agency, Single Family Housing 6/07 at 101.50 AAA 9,903,987
Bonds, Series 9, 5.900%, 5/01/29 (Alternative Minimum Tax) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
4,925 City of Virginia Beach Development Authority, Virginia, 10/14 at 100.00 N/R 4,894,120
Multifamily Residential Rental Housing Revenue Bonds,
Mayfair I & Mayfair II Apartments Project, Series 1999,
7.500%, 10/01/39 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 17.8%
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) 7/07 at 102.00 AA 12,079,804
(Optional put 7/01/09) (Mandatory put 7/01/24)
8,000 5.650%, 7/01/32 (Alternative Minimum Tax) 7/07 at 102.00 AA 8,131,600
(Optional put 7/01/09) (Mandatory put 7/01/27)
5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 5,240,850
Bonds, Series 2001, 5.250%, 12/01/26 - MBIA Insured
4,750 Washington Health Care Facilities Authority, Revenue Bonds, 11/08 at 101.00 Aaa 4,869,273
Series 1998, Swedish Health Services, 5.125%, 11/15/22 -
AMBAC Insured
11,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102.00 AAA 11,119,130
Series 1998, Harrison Memorial Hospital, 5.000%, 8/15/28 -
AMBAC Insured
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) - MBIA Insured 7/03 at 102.00 AAA 82,208
29,790 5.600%, 7/01/15 (Pre-refunded to 7/01/03) - MBIA Insured 7/03 at 102.00 AAA 30,611,608
12,950 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102.00 AAA 13,297,190
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 -
MBIA Insured
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*** 11,074,976
3,665 5.750%, 7/01/12 (Pre-refunded to 7/01/03) 7/03 at 102.00 Aa1*** 3,767,034
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 6,770 Washington Public Power Supply System, Nuclear Project No. 2 7/03 at 102.00 Aa1*** $ 6,957,055
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 15,547,625
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 23,382,445
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
Washington Public Power Supply System, Nuclear Project No. 3
Refunding Revenue Bonds, Series 1997-A:
5,220 5.250%, 7/01/14 - FSA Insured 7/07 at 102.00 AAA 5,767,578
9,350 5.250%, 7/01/15 7/07 at 102.00 Aa1 9,921,191
7,775 Washington Public Power Supply System, Nuclear Project No. 3 7/08 at 102.00 Aa1 8,115,467
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.2%
2,175 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 100.00 BBB 2,252,905
Bonds, Carroll College Inc. Project, Series 2001,
6.125%, 10/01/16
------------------------------------------------------------------------------------------------------------------------------------
$ 1,398,905 Total Long-Term Investments (cost $1,389,999,443) - 151.8% 1,460,391,338
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 26,389,436
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.6)% (525,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 961,780,774
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# On December 9, 2002, UALCorporation, the holding
company of United Air Lines, Inc., filed for federal
bankruptcy protection. Subsequent to the reporting
period, the Adviser determined that it was likely
United would not remain current on their interest
payment obligations with respect to these bonds and
thus has stopped accruing interest.
N/R Investment is not rated.
See accompanying notes to financial statements.
17
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.7%
$ 4,150 Birmingham, Alabama, Waterworks and Sewer Board, Water 1/13 at 100.00 AAA $ 4,205,320
and Sewer Revenue Bonds, Series 2002B, 5.000%, 1/01/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.4%
2,850 The Industrial Development Authority of the County of 1/07 at 102.00 AAA 3,383,235
Maricopa, Arizona, Multifamily Housing Revenue Bonds, Place
Five and the Greenery Apartments Projects, Series 1996A,
6.625%, 1/01/27
The Industrial Development Authority of the County of Mohave,
Arizona, Hospital System Revenue Refunding Bonds, Medical
Environments, Inc. and Phoenix Baptist Hospital and Medical
Center Inc., Series 1993:
2,030 6.250%, 7/01/03 No Opt. Call Aaa 2,047,702
3,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102.00 Aaa 3,088,560
9,000 City of Phoenix, Arizona, Civic Improvement Corporation, 7/03 at 102.00 AAA 9,256,410
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/14 (Pre-refunded to 7/01/03)
3,285 Industrial Development Authority of the County of Pima, 7/03 at 102.50 AAA 3,471,424
Arizona, Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A, Irvington Project,
7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.5%
California Educational Facilities Authority, Revenue Bonds,
Loyola Marymount University, Series 2001A Refunding:
3,255 0.000%, 10/01/23 - MBIA Insured No Opt. Call Aaa 1,155,916
5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call Aaa 1,963,490
7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call Aaa 2,385,399
7,710 State of California, General Obligation Veterans Welfare 12/08 at 101.00 AAA 8,212,615
Bonds, Series 1997BH, 5.250%, 12/01/12 (Alternative
Minimum Tax) - FSA Insured
5,690 Department of Veterans Affairs of the State of California, 6/12 at 101.00 AAA 6,004,088
Home Purchase Revenue Bonds, Series 2002A,
5.300%, 12/01/21 - AMBAC Insured
State of California Department of Water Resources, Power
Supply Revenue Bonds, Series 2002A:
4,000 6.000%, 5/01/15 5/12 at 101.00 A3 4,616,360
5,500 5.375%, 5/01/21 5/12 at 101.00 A3 5,791,335
7,150 State Public Works Board of California, Lease Revenue 10/04 at 102.00 A-*** 7,821,028
Bonds, Trustees of the California State University,
1994 Series A, Various California State University Projects,
6.375%, 10/01/19 (Pre-refunded to 10/01/04)
17,500 State Public Works Board of the State of California, Lease 11/04 at 102.00 Aaa 19,345,900
Revenue Bonds, Department of Corrections, 1994 Series A,
California State Prison, Monterey County - Soledad II,
6.875%, 11/01/14 (Pre-refunded to 11/01/04)
30,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 13,054,500
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21
5,000 Los Angeles County Public Works Finance Authority, California, 10/04 at 102.00 Aa3*** 5,451,700
Revenue Bonds, Series 1994A, Los Angeles Count Regional
Park and Open Space District, 6.125%, 10/01/10 (Pre-refunded
to 10/01/04)
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) - FSA Insured 7/04 at 102.00 AAA 2,594,656
5,905 6.750%, 7/01/25 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA 6,410,645
960 6.750%, 7/01/25 - FSA Insured 7/04 at 102.00 AAA 1,033,987
5,605 County of San Joaquin, California, Certificates of Participation, 4/04 at 102.00 A 5,814,347
1994 Solid Waste System Facilities Project, 6.600%, 4/01/19
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.6%
$ 95 Colorado Housing and Finance Authority, Single Family Program 12/04 at 105.00 Aa2 $ 97,621
Senior Bonds, 1994 Series E, 8.125%, 12/01/24 (Alternative
Minimum Tax)
1,285 Colorado Housing and Finance Authority, Single Family Program 12/05 at 105.00 Aa2 1,334,472
Senior Bonds, 1995 Series D, 7.375%, 6/01/26 (Alternative
Minimum Tax)
400 City and County of Denver, Colorado, Airport System Revenue No Opt. Call A 495,852
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
1,700 City and County of Denver, Colorado, Multifamily Housing 10/07 at 102.00 AAA 1,767,303
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 3,385,560
Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6%
District of Columbia, University Revenue Bonds, Georgetown
University Issue, Series 2001A:
11,720 0.000%, 4/01/27 - MBIA Insured 4/11 at 39.61 AAA 2,999,968
13,780 0.000%, 4/01/28 - MBIA Insured 4/11 at 37.21 AAA 3,305,546
15,855 0.000%, 4/01/29 - MBIA Insured 4/11 at 35.07 AAA 3,576,412
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.8%
1,700 Beacon Tradeport Community Development District, 5/12 at 102.00 AA 1,812,064
Miami-Dade County, Florida, Special Assessment Bonds,
Series 2002A, Commercial Project, 5.625%, 5/01/32 -
RAAI Insured
5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 5,476,350
5.750%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured
1,135 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 1,205,302
Revenue Bonds, 2000 Series 11, 5.850%, 1/01/22 (Alternative
Minimum Tax) - FSA Insured
2,850 State of Florida, Full Faith and Credit, Department of 7/05 at 101.00 AAA 3,148,851
Transportation, Right-of-Way Acquisition and Bridge
Construction Bonds, Series 1995, 5.875%, 7/01/24
(Pre-refunded to 7/01/05) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.0%
5,500 City of Atlanta, Georgia, Water and Sewerage Revenue Bonds, 1/04 at 100.00 AAA 5,625,620
Series 1993, 4.500%, 1/01/18 (Pre-refunded to 1/01/04) -
FGIC Insured
480 Housing Authority of Fulton County, Georgia, Single Family 9/06 at 102.00 AAA 505,507
Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed
Securities Program, Series 1996A, 6.200%, 9/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 2.4%
1,320 Idaho Housing Finance Agency, Single Family Mortgage Bonds, 7/05 at 102.00 Aaa 1,381,552
1995 Series F, Senior Lien, 6.450%, 7/01/27 (Alternative
Minimum Tax)
3,250 Idaho Housing Finance Agency, Housing Revenue Bonds, Park 6/05 at 102.00 Aa2 3,382,308
Place Project, 1995 Series A, FHA-Insured Mortgage,
6.500%, 12/01/36 (Alternative Minimum Tax)
3,160 Idaho Housing and Finance Association, Wedgewood Terrace 3/12 at 105.00 Aaa 3,765,582
Project Refunding, GNMA Enhanced, Series 2002A-1,
7.250%, 3/20/37
1,680 Idaho Housing and Finance Association, Single Family 7/06 at 102.00 Aaa 1,860,348
Mortgage Bonds, 1996 Series G, 6.350%, 7/01/26 (Alternative
Minimum Tax)
1,870 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 Aa2 2,002,116
Mortgage Bonds, 2000 Series B, 6.250%, 7/01/22
(Alternative Minimum Tax)
2,370 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aaa 2,540,924
Mortgage Bonds, 2000 Series E, 5.950%, 7/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 19.3%
16,200 City of Chicago, Illinois, General Obligation Project Bonds, 1/06 at 102.00 AAA 16,530,156
Series 1995A-1, 5.125%, 1/01/25 - AMBAC Insured
1,000 City of Chicago, Illinois, General Obligation Bonds, Project and 7/08 at 102.00 AAA 1,071,180
Refunding Series 1998, 5.250%, 1/01/20 - FGIC Insured
19
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 22,670 City of Chicago, Illinois, General Obligation Bonds, City Colleges No Opt. Call AAA $ 7,297,473
of Chicago Capital Improvement Project, Series 1999,
0.000%, 1/01/25 - FGIC Insured
5,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 2,094,300
Education of the City of Chicago, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
1,175 City of Chicago, Illinois, Multifamily Housing Revenue Bonds, 6/09 at 102.00 Aaa 1,228,733
Series 1997, GNMA Collateralized - Bryn Mawr/Belle
Shores Project, 5.800%, 6/01/23 (Alternative Minimum Tax)
1,650 City of Chicago, Illinois, Multifamily Housing Revenue Bonds, 9/13 at 101.00 AAA 1,670,113
Indiana Manor Townhomes Project, Series 2002A,
FHA-Insured/GNMA, 5.100%, 3/20/44
10,900 Public Building Commission of Chicago, Illinois, Building 12/03 at 102.00 AAA 11,414,153
Revenue Bonds, Series A of 1993, Board of Education
of the City of Chicago, 5.750%, 12/01/18 (Pre-refunded
to 12/01/03) - MBIA Insured
3,860 City of Chicago, Illinois, Tax Increment Allocation Bonds, 1/07 at 102.00 N/R 4,044,238
Read-Dunning Redevelopment Project, Series 1996B,
7.250%, 1/01/14
3,530 City of Chicago, Illinois, Tax Increment Allocation Bonds, 1/07 at 102.00 N/R 3,746,954
Sanitary Drainage and Ship Canal Redevelopment Project,
Series 1997A, 7.750%, 1/01/14
4,865 Cook County Community Consolidated School District 15, No Opt. Call Aaa 2,037,754
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured
6,190 Community High School District No. 219, Niles Township, No Opt. Call Aaa 2,592,743
Cook County, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - MBIA Insured
2,850 City of East St. Louis, Illinois, Mortgage Revenue Refunding 7/03 at 102.00 AAA 2,913,070
Bonds, FHA-Insured Mortgage Loan - Dawson Manor
Apartments, Section 8 Assisted, Series 1994A,
6.500%, 7/01/24 - MBIA Insured
6,900 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102.00 A3*** 7,162,338
Series 1993, Illinois Masonic Medical Center,
5.500%, 10/01/19 (Pre-refunded to 10/01/03)
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A+ 3,385,410
Series 1993C, Lutheran General Health System,
6.000%, 4/01/18
3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- 3,159,570
Hospital, Series 2003, 6.000%, 7/01/33
Illinois Housing Development Authority, Housing Finance Bonds,
2000 Series A:
1,045 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,091,064
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,296,867
11,000 State of Illinois, General Obligation Bonds, Illinois FIRST No Opt. Call AAA 13,351,030
Program, Series 2001, 6.000%, 11/01/26 - FGIC Insured
State of Illinois, General Obligation Bonds, Illinois FIRST
Program, Series 2002:
9,000 5.250%, 8/01/12 - MBIA Insured No Opt. Call AAA 10,199,430
2,000 5.500%, 2/01/18 - FGIC Insured 2/12 at 100.00 AAA 2,217,240
4,020 Community Unit School District No. 220 of the Counties No Opt. Call AAA 4,522,259
of Lake, Cook, Kane, and McHenry, Illinois, General Obligation
Bonds, Series 2002, 5.250%, 12/01/20 - FSA Insured
Community Unit School District No. 60, Waukegan, Lake County,
Illinois, General Obligation Bonds, Series 2001B Refunding:
3,230 0.000%, 11/01/19 - FSA Insured No Opt. Call Aaa 1,445,942
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aaa 686,517
17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call Aaa 6,932,333
District No. 158, Illinois, General Obligation Bonds, Series 2003,
0.000%, 1/01/22 - FGIC Insured
4,505 McHenry County Community Consolidated School District 2/09 at 100.00 Aaa 5,096,642
No. 047, Crystal Lake, Illinois, General Obligation Bonds,
Series 1999 Refunding, 5.750%, 2/01/19 - FSA Insured
2,910 Community High School District Number 154, McHenry No Opt. Call Aaa 1,197,261
County, Illinois, Capital Appreciation School Bonds,
Series 2001, 0.000%, 1/01/21 - FGIC Insured
4,540 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 4,650,685
McCormick Place Expansion Project Revenue Bonds,
Series 2002A, 5.000%, 12/15/28 - MBIA Insured
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.3%
$ 1,000 Ball State University Board of Trustees, Indiana, Ball State 1/12 at 100.00 AAA $ 1,116,600
University Student Fee Revenue Bonds, Series 2002K,
5.750%, 7/01/20 - FGIC Insured
6,031 City of Greenfield, Indiana, Multifamily Housing Revenue 12/05 at 105.00 Aaa 6,308,667
Bonds, Series 1996A, Pedcor Investments-1988-V, L.P.
Project, 6.200%, 12/01/28 (Alternative Minimum Tax)
2,875 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/05 at 102.00 AAA 3,179,865
Series 1995A, Guarantee Revenue, 6.750%, 2/01/17
3,500 Indiana Bond Bank, Special Program Bonds, Series 2000A, 2/10 at 101.00 AAA 4,068,890
City of East Chicago Facilities Building Corporation Project,
6.125%, 2/01/25 - AMBAC Insured
5,000 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA 5,364,350
Bonds, Series 2000, 5.375%, 12/01/25
1,000 Shelbyville Elementary School Building Corporation, Shelby 7/11 at 100.00 AAA 1,055,200
County, Indiana, First Mortgage Bonds, Series 2001,
5.000%, 7/05/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.3%
10,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA 10,149,100
Series 1998A, Iowa Health System, 5.125%, 1/01/28 -
MBIA Insured
Tobacco Settlement Authority, Iowa, Tobacco Settlement
Asset-Backed Revenue Bonds, Series 2001B:
7,000 5.300%, 6/01/25 6/11 at 101.00 A- 5,421,570
7,300 5.600%, 6/01/35 6/11 at 101.00 A- 5,529,531
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
805 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103.00 Aa2 837,780
Refunding Bonds, Series 1994, 7.100%, 5/01/12
510 Sedgwick and Shawnee Counties, Kansas, Collateralized No Opt. Call Aaa 513,703
Single Family Mortgage Refunding Revenue Bonds, GNMA
Certificates, Series 1994A1, 7.900%, 5/01/24 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.1%
500 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102.00 AAA 528,205
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.5%
1,750 Bossier Public Trust Financing Authority, Louisiana, Single 8/05 at 102.00 AAA 1,784,825
Family Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
7,445 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/05 at 102.00 Aaa 7,685,846
Single Family Mortgage Revenue Bonds, GNMA and FNM
Mortgage-Backed Securities Program, Series 1994C,
6.350%, 10/01/28 (Alternative Minimum Tax)
3,230 Jefferson Sales Tax District, Parish of Jefferson, Louisiana, 12/12 at 100.00 AAA 3,464,918
Special Sales Tax Revenue Bonds, Series 2002 Refunding,
5.250%, 12/01/21 - AMBAC Insured
4,910 New Orleans Home Mortgage Authority, Louisiana, Single 6/05 at 102.00 Aaa 5,108,757
Family Mortgage Revenue Bonds, Series 1995A,
6.300%, 6/01/28 (Alternative Minimum Tax)
3,855 Orleans Levee District, A Political Subdivision of the State 12/05 at 103.00 AAA 4,364,631
of Louisiana, Levee Improvement Bonds, Series 1986, Serial
and Term Trust Receipts, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.1%
550 Maine State Housing Authority, Mortgage Purchase Bonds, 11/05 at 102.00 AA+ 577,280
1995 Series B-2, 6.300%, 11/15/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.2%
965 Community Development Administration, Department of Housing 5/03 at 102.00 Aa2 985,535
and Community Development, Maryland, Multifamily Housing
Revenue Bonds, Insured Mortgage Loans, 1993 Series C,
6.625%, 5/15/23
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.4%
13,250 Commonwealth of Massachusetts, General Obligation Bonds, 1/13 at 100.00 AAA 14,241,895
Consolidated Loan, Series 2002E, 5.250%, 1/01/21 - FSA Insured
3,325 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 3,608,822
Resource Recovery Revenue Bonds, Eco/Springfield, LLC
Project, Series 2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
21
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 2,750 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA $ 2,792,928
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 - FGIC Insured
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 AA 9,853,308
Revenue Bonds, Berkshire Health System Issue, Series 2001E,
5.700%, 10/01/25 - RAAI Insured
3,605 Massachusetts Water Resources Authority, General Revenue 12/04 at 102.00 AAA 3,869,247
Bonds, 1993 Series C, 5.250%, 12/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.0%
Grand Rapids and Kent County Joint Building Authority, Michigan,
Devos Place Project, Limited Tax General Obligation Bonds,
Series 2001:
7,660 0.000%, 12/01/21 No Opt. Call AAA 3,154,924
7,955 0.000%, 12/01/22 No Opt. Call AAA 3,076,358
8,260 0.000%, 12/01/23 No Opt. Call AAA 3,006,557
8,575 0.000%, 12/01/24 No Opt. Call AAA 2,934,365
8,900 0.000%, 12/01/25 No Opt. Call AAA 2,866,245
2,000 Michigan State Hospital Finance Authority, Revenue and 8/03 at 102.00 BBB- 1,948,860
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993A, 6.375%, 8/15/09
8,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/03 at 102.00 AAA 8,290,400
Refunding Bonds, Oakwood Hospital Obligated Group,
Series 1993A, 5.625%, 11/01/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.0%
3,085 Bemidji, Minnesota, Healthcare Facilities First Mortgage 9/12 at 100.00 AA 3,131,954
Revenue Bonds, North Country Health Services, Series 2002,
5.000%, 9/01/24 - RAAI Insured
6,995 Champlin, Minnesota, Senior Housing Revenue Bonds, 6/12 at 105.00 Aaa 7,075,163
Champlin Shores Senior Living Center, GNMA Guaranteed,
Series 2002A, 3.000%, 12/20/43
3,560 Housing and Redevelopment Authority of the Cities of 6/03 at 102.00 BBB+ 3,615,109
Minneapolis and St. Paul, Minnesota, Healthcare Facility
Revenue Bonds, Series 1992, Group Health Plan, Inc.
Project, 6.900%, 10/15/22
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,151,320
Minnesota, Subordinate Airport Revenue Bonds,
Series 2001C, 5.250%, 1/01/26 - FGIC Insured
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,524,248
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 - FGIC Insured
2,195 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 2,311,181
Bonds, 2000 Series C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
2,580 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 2,681,497
1995 Series D, 5.950%, 2/01/18 - MBIA Insured
2,465 Minnesota Housing Finance Agency, Single Family Mortgage 1/06 at 102.00 AA+ 2,581,595
Bonds, 1996 Series G, 6.250%, 7/01/26 (Alternative
Minimum Tax)
2,325 Minnesota Housing Finance Agency, Single Family Mortgage 1/11 at 101.00 AA+ 2,512,558
Bonds, 1998 Series H-2, Remarketed, 6.050%, 7/01/31
(Alternative Minimum Tax)
2,000 Southern Minnesota Municipal Power Agency, Power Supply 7/03 at 102.00 Aaa 2,048,220
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 9.0%
2,000 Missouri-Illinois Metropolitan District, Bi-State Development 10/13 at 100.00 AAA 2,056,380
Agency, Metrolink Cross County Extension Project, Mass
Transit Sales Tax Appropriation Bonds, Series 2002B,
5.000%, 10/01/32 - FSA Insured
9,000 City of Kansas City, Missouri, General Improvement Airport 9/12 at 100.00 AAA 9,843,120
Revenue Bonds, Series 2003B, 5.250%, 9/01/17 -
FGIC Insured
6,445 State of Missouri, General Obligation Bonds, Series 2002B, 10/12 at 100.00 AAA 6,975,424
Water Pollution Control Refunding, 5.000%, 10/01/18
4,095 State of Missouri, General Obligation Bonds, Series 2002A, 10/12 at 100.00 AAA 4,432,019
Fourth State Building Refunding, 5.000%, 10/01/18
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Health Care Series 2001A:
$ 2,500 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA $ 2,622,300
2,000 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 2,070,620
5,500 Industrial Development Authority of the City of St. Louis, 6/03 at 102.00 N/R 5,569,850
Missouri, Industrial Revenue Refunding Bonds, Kiel Center
Multipurpose Arena Project, Series 1992, 7.625%, 12/01/09
(Alternative Minimum Tax)
City of St. Louis, Missouri, Airport Revenue Bonds, Series 2001A,
Airport Development Program:
2,000 5.125%, 7/01/22 - MBIA Insured 7/11 at 100.00 AAA 2,093,720
2,500 5.000%, 7/01/26 - MBIA Insured 7/11 at 100.00 AAA 2,563,025
7,000 City of St. Louis, Missouri, Airport Revenue Bonds, 7/12 at 100.00 AAA 7,192,850
Series 2002A, Capital Improvement Program,
5.000%, 7/01/27 - MBIA Insured
11,000 St. Louis, Missouri, Municipal Finance Corporation, Leasehold 7/03 at 102.00 AAA 11,330,880
Revenue Bonds, Series 1993A, 6.000%, 7/15/13
(Pre-refunded to 7/15/03)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.8%
4,000 Clark County, Nevada, Industrial Development Revenue 6/03 at 101.00 AAA 4,144,400
Bonds, Nevada Power Company Project, Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax) - FGIC Insured
10,410 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,580,813
Series 2002C, 5.500%, 6/15/18 - MBIA Insured
7,315 Washoe County School District, Nevada, General Obligation No Opt. Call AAA 8,517,732
Bonds, Series 2002B Refunding, 5.500%, 6/01/17 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.0%
4,500 New Jersey Economic Development Authority, Insured 5/05 at 102.00 AAA 5,006,655
Revenue Bonds, Educational Testing Service Issue,
Series 1995A, 6.000%, 5/15/25 (Pre-refunded to 5/15/05) -
MBIA Insured
4,310 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 4,507,915
Multifamily Housing Revenue Bonds, Series 1997
5.650%, 5/01/40 (Alternative Minimum Tax) -
AMBAC Insured
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
10,000 5.750%, 6/01/32 6/12 at 100.00 A- 8,525,800
3,165 6.125%, 6/01/42 6/12 at 100.00 A- 2,555,991
1,000 Toms River Board of Education, New Jersey, General Obligation 7/07 at 100.00 AAA 1,145,240
Bonds, Series 1997, 5.750%, 7/15/21 (Pre-refunded to
7/15/07) - FGIC Insured
3,685 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,785,969
Facility Subordinated Lease Revenue Bonds, Ogden Martin
Systems of Union, Inc. Lessee, Series 1998A,
5.350%, 6/01/23 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.5%
2,975 New Mexico Mortgage Finance Authority, Single Family 7/05 at 102.00 AAA 3,104,918
Mortgage Program Bonds, 1995 Series E, 6.300%, 7/01/17
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.2%
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 1998A:
1,800 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 1,877,256
2,330 5.500%, 12/01/29 6/03 at 101.00 A- 2,360,337
7,695 The City of New York, New York, General Obligation Bonds, No Opt. Call A 7,793,881
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 19,487,003
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 12,123,130
Fiscal 1996 Series I, 5.875%, 3/15/18
The City of New York, New York, General Obligation Bonds, Fiscal
1997 Series I:
8,270 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101.00 Aaa 9,676,562
3,750 6.250%, 4/15/27 4/07 at 101.00 A 4,177,650
The City of New York, New York, General Obligation Bonds, Fiscal
1996 Series J1:
1,415 5.875%, 2/15/19 (Pre-refunded to 2/15/06) 2/06 at 101.50 A*** 1,601,242
7,585 5.875%, 5/15/19 2/06 at 101.50 A 8,202,495
3,820 5.500%, 2/15/26 2/06 at 101.50 A 3,918,976
23
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 1,370 New York City Municipal Water Finance Authority, New York, 6/07 at 101.00 AAA $ 1,490,396
Water and Sewer System Revenue Bonds, Fiscal 1997
Series B, 5.500%, 6/15/27 - MBIA Insured
3,150 New York City Municipal Water Finance Authority, New York, 6/05 at 101.00 AAA 3,481,254
Water and Sewer System Revenue Bonds, Fiscal 1996 Series A,
5.875%, 6/15/25 (Pre-refunded to 6/15/05) - MBIA Insured
4,000 The Trust for Cultural Resources of the City of New York, 4/07 at 101.00 AAA 4,428,160
New York, Revenue Bonds, Series 1997A, (American Museum
of Natural History), 5.650%, 4/01/27 - MBIA Insured
2,500 Dormitory Authority of the State of New York, City University 7/06 at 102.00 AA-*** 2,884,825
System Consolidated Third General Resolution Bonds,
1996 Series 2, 6.000%, 7/01/20 (Pre-refunded to 7/01/06)
Dormitory Authority of the State of New York, Marymount
Manhattan College Insured Revenue Bonds, Series 1999:
1,975 6.375%, 7/01/16 - RAAI Insured 7/09 at 101.00 AA 2,268,465
2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 AA 2,382,890
7,635 New York State Medical Care Facilities Finance Agency, 5/05 at 102.00 AA-*** 8,470,345
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 County of Cumberland, North Carolina, Hospital Facility 10/09 at 101.00 A- 2,643,611
Revenue Bonds, Cumberland County Hospital System Inc.,
Series 1999, Cape Fear Valley Health System,
5.250%, 10/01/19
2,480 City of Durham, North Carolina, Urban Redevelopment 8/07 at 105.00 AAA 2,694,098
Mortgage Revenue Bonds, Durham Hosiery Mill Project,
FHA-Insured LN, Series 1987, 7.500%, 8/01/29 (Alternative
Minimum Tax)
1,425 North Carolina Housing Finance Agency, Single Family 3/06 at 102.00 AA 1,496,535
Revenue Bonds, Series JJ, 1985 Resolution, 6.450%, 9/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.9%
4,495 North Dakota Housing Finance Agency, Mortgage Revenue 7/10 at 100.00 Aa3 4,766,228
Bonds, Housing Finance Program, Series 2000C,
6.150%, 7/01/31 (Alternative Minimum Tax)
725 North Dakota Housing Finance Agency, Housing Finance 1/07 at 102.00 Aa2 765,223
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 Mortgage 1/08 at 102.00 Aa2 2,059,080
Revenue Bonds, Series 1998B-1, FHA-Insured Mortgage
Loan - Courtyards of Kettering Project, 5.550%, 1/01/40
(Alternative Minimum Tax)
5,000 Ohio Water Development Authority, Collateralized Water 8/03 at 101.00 A2 5,085,700
Development Revenue Refunding Bonds, 1992 Series A,
Dayton Power and Light Company Project, 6.400%, 8/15/27
6,750 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,205,950
Revenue Bonds, Bay Shore Power Project, Convertible
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
6,900 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 6,894,273
Revenue Bonds, Bay Shore Power Project, Convertible
Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.3%
5,000 Oklahoma Student Loan Authority, Student Loan Revenue 6/11 at 102.00 AAA 5,212,750
Bonds, Senior Lien Series 2001-A1, 5.625%, 6/01/31
(Alternative Minimum Tax)
2,990 Tulsa County Public Facilities Authority, Oklahoma, Recreational 5/03 at 101.50 AA 3,100,869
Facility Refunding Revenue Bonds, Series 1992,
6.600%, 11/01/08
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.8%
2,865 State of Oregon, General Obligation Elderly and Disabled 8/03 at 101.00 AA 2,933,903
Housing Bonds, 1992 Series B, 6.375%, 8/01/24
3,190 State of Oregon, General Obligation Veterans Welfare 10/05 at 102.00 AA 3,326,851
Bonds, Series 75, 6.000%, 4/01/27
2,785 Oregon Housing and Community Services Department, 1/10 at 100.00 Aa2 2,968,782
Mortgage Revenue Bonds, Single Family Mortgage Program,
Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax)
2,015 Portland, Oregon, Limited Tax Improvement Bonds, 6/06 at 100.00 Aa2 2,209,609
1996 Series A, 5.550%, 6/01/16
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6%
$ 2,400 Beaver County Industrial Development Authority, Pennsylvania, 7/05 at 102.00 A $ 2,577,840
Collateralized Pollution Control Revenue Refunding Bonds,
Series 1995A, Cleveland Electric Illuminating Company -
Beaver Valley Project, 7.750%, 7/15/25 - ACA Insured
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AAA 1,208,960
Local Government Revenue Bonds, Series 1997B,
5.700%, 7/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.2%
1,375 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 1,465,076
Series X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.8%
1,055 Rhode Island Health and Educational Building Corporation, 3/12 at 101.00 AA 1,093,022
Revenue Bonds, Salve Regina University, Series 2002
Refunding, 5.000%, 3/15/19 - RAAI Insured
12,000 Tobacco Settlement Financing Corporation of Rhode Island, 6/12 at 100.00 A- 10,263,000
Asset-Backed Bonds, Series 2002A, 6.125%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.7%
15,445 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- 17,357,400
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17
2,500 Greenville Hospital System Board of Trustees, South Carolina, 5/13 at 100.00 AAA 2,550,300
Hospital Facilities Revenue Bonds, Series 2003A Refunding,
5.000%, 5/01/25 (WI, settling 5/01/03) - AMBAC Insured
2,135 School District No. 4 of Lexington County, South Carolina, 7/04 at 102.00 Baa2*** 2,322,154
Certificates of Participation, Series 1994, 7.000%, 7/01/12
(Pre-refunded to 7/01/04)
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/03 at 100.00 AAA 6,880,736
Revenue Refunding Bonds, Series 1991, 4.000%, 1/01/23 -
MBIA Insured
15,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 A- 13,529,250
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.6%
5,820 South Dakota Housing Development Authority Homeownership 5/07 at 102.00 AAA 6,024,748
Mortgage Bonds, 1997 Series F, 5.800%, 5/01/28
(Alternative Minimum Tax)
9,860 South Dakota Building Authority, Revenue Bonds, Series 1992, 9/04 at 100.00 AAA 10,141,404
6.700%, 9/01/17 (Pre-refunded to 9/01/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3%
1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,656,540
Revenue Bonds, Series 1999D, 6.000%, 3/01/19 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.7%
5,000 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 5/08 at 102.00 AAA 5,752,400
Texas Utilities Electric Company Project, Series 1998A
Refunding, 5.550%, 5/01/33 (Alternative Minimum Tax)
(Pre-refunded to 5/01/08) - AMBAC Insured
5,000 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 4/08 at 102.00 AAA 5,746,150
Texas Utilities Electric Company Project, Series 1995C,
5.550%, 6/01/30 (Alternative Minimum Tax) (Pre-refunded
to 4/01/08) - MBIA Insured
5,110 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 4/13 at 101.00 BBB 5,334,636
TXU Electric Company Project, Series 1999C Refunding,
7.700%, 4/01/32 (Alternative Minimum Tax)
10,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 10,284,900
Texas, Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, 2002 Series A-6, 6.250%, 5/15/33
(Alternative Minimum Tax) (Mandatory put 5/15/17)
10,000 Coppell Independent School District, Dallas County, Texas, No Opt. Call AAA 2,497,100
Unlimited Tax School Building and Refunding Bonds,
Series 2001, 0.000%, 8/15/28
3,345 City of Fort Worth, Texas, Water and Sewer Revenue Bonds, 2/12 at 100.00 AA 3,714,221
Series 2001, 5.625%, 2/15/19
1,635 Garland Independent School District, Dallas County, Texas, 2/07 at 100.00 AAA 1,637,485
School Building Unlimited Tax Bonds, Series 1997-A,
4.000%, 2/15/15
25
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/08 at 102.00 BBB $ 4,489,900
Disposal Revenue Bonds, Valero Refining and Marketing
Company Project, Series 1997, 5.600%, 12/01/31
(Alternative Minimum Tax)
2,800 Houston Sports Authority, Harris County, Texas, Senior Lien 11/11 at 100.00 AAA 2,918,272
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 -
MBIA Insured
630 Hidalgo County Housing Finance Corporation, Texas, Single 4/04 at 102.00 Aaa 648,245
Family Mortgage Revenue Bonds, GNMA and FNMA
Collateralized, Series 1994A, 7.000%, 10/01/27
(Alternative Minimum Tax)
City of Houston, Texas, Hotel Occupancy Tax and Special Revenue
Bonds, Series 2001B Convention Project:
25,850 0.000%, 9/01/25 - AMBAC Insured No Opt. Call AAA 8,000,834
26,610 0.000%, 9/01/26 - AMBAC Insured No Opt. Call AAA 7,744,042
1,000 Humble Independent School District, Harris County, Texas, 2/10 at 100.00 AAA 905,400
Unlimited Tax Schoolhouse Bonds, Series II 1997,
3.500%, 2/15/18
6,185 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 AAA 6,456,954
Unlimited Tax General Obligation Refunding Bonds, Series 2001,
5.250%, 8/15/26
10,080 Lake Dallas Independent School District, Denton County, 8/12 at 100.00 AAA 10,179,994
Texas, General Obligation Bonds, Series 2002, 5.000%, 8/15/37
1,760 City of Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, 3/09 at 100.00 AAA 2,009,691
Series 2001, 5.750%, 3/15/16 - FGIC Insured
2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,103,560
Unlimited Tax Schoolhouse Bonds, 2001 Series A,
5.250%, 2/15/22
3,935 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,051,870
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
7,490 State of Texas, General Obligation Bonds, Veterans Housing 12/03 at 102.00 Aa1 7,746,533
Assistance Program Fund, Series 1993, 6.800%, 12/01/23
(Alternative Minimum Tax)
3,900 State of Texas, General Obligation Bonds, Veterans Housing 12/11 at 101.00 Aa1 4,000,776
Assistance Program 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 2,033,913
6,945 0.000%, 2/15/27 2/11 at 39.75 AAA 1,801,602
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.1%
1,400 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102.00 AAA 1,436,022
1994 Issue B, Federally Insured or Guaranteed Mortgage
Loans, 6.450%, 7/01/14
815 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 857,087
1997 Series E2, Class I, 5.875%, 1/01/19 (Alternative
Minimum Tax)
1,285 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101.50 AAA 1,351,447
1997 Series C, 5.600%, 7/01/18 (Alternative Minimum Tax)
3,000 Municipal Building Authority of Weber County, Utah, Lease 12/04 at 102.00 AAA 3,361,290
Revenue Bonds, Series 1994, 7.500%, 12/15/19 (Pre-refunded
to 12/15/04) - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.9%
5,635 Vermont Housing Finance Agency, Single Family Housing 5/03 at 102.00 A+ 5,753,617
Bonds, Series 4, 6.400%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.3%
15,000 Public Utility District No. 1 of Chelan County, Washington, 7/12 at 100.00 AAA 15,492,750
Chelan Hydro-Consolidated System Revenue Bonds,
Series 2002A, 5.450%, 7/01/37 (Alternative Minimum Tax) -
AMBAC Insured
5,000 Energy Northwest, Washington, Nuclear Project No. 1 Electric 7/13 at 100.00 Aa1 5,561,650
Revenue Bonds, Series 2003A Refunding, 5.500%, 7/01/16
7,635 Public Hospital District No. 2, King County, Washington, 6/11 at 101.00 AAA 7,715,244
Limited Tax General Obligation Bonds, Evergreen Healthcare,
Series 2001A, 5.000%, 12/01/30 - AMBAC Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 10,080 King County School District No. 401, Highline, Washington, 6/12 at 100.00 AAA $ 11,315,909
General Obligation Bonds, Series 2002, 5.500%, 12/01/16 -
FGIC Insured
6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 9/12 at 100.00 AAA 7,378,303
5.250%, 9/01/22 - FGIC Insured
4,905 State of Washington, Various Purpose General Obligation 1/09 at 100.00 AA+ 5,121,507
Bonds, Series 1999B, 5.000%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.3%
7,000 County Commission of Harrison County, West Virginia, Solid 5/03 at 102.00 AAA 7,163,590
Waste Disposal Revenue Bonds, Potomac Edison Company
Harrison Station Project, Series B, 6.250%, 5/01/23
(Alternative Minimum Tax) - AMBAC Insured
1,000 County Commission of Pleasants County, West Virginia, 4/09 at 101.00 AAA 1,038,080
Pollution Control Revenue Bonds, West Penn Power
Company Pleasants Station Project, 1999 Series E,
5.500%, 4/01/29 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.6%
3,215 Wisconsin Health and Educational Facilities Authority, 2/07 at 102.00 AAA 3,506,271
Revenue Bonds, Series 1997, Marshfield Clinic Project,
5.625%, 2/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 1,101,396 Total Long-Term Investments (cost $908,682,910) - 151.8% 961,930,962
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.0%
2,000 Gulf Coast Waste Disposal Authority, Texas, Environmental A-1+ 2,000,000
Facilities Revenue Bonds, Exxon Mobil Project, Series 2000,
Variable Rate Demand Obligations, 1.350%, 6/01/30
(Alternative Minimum Tax)+
4,400 New Jersey Educational Facilities Authority, Revenue Bonds, A-1+ 4,400,000
Princeton University, Variable Rate Demand Obligations,
Series 2002B, 1.150%, 7/01/22+
------------------------------------------------------------------------------------------------------------------------------------
$ 6,400 Total Short-Term Investments (cost $6,400,000) 6,400,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $915,082,910) - 152.8% 968,330,962
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 12,384,719
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.8)% (347,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 633,715,681
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
27
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.9%
$ 2,975 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 3,119,407
Revenue Bonds, Series 1994D Refunding, 5.850%, 9/01/04
(Alternative Minimum Tax) - FSA Insured
2,395 Alabama Housing Finance Authority, Multifamily Housing 2/11 at 102.00 AAA 2,619,675
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 of 11/05 at 101.00 Aaa 12,326,495
Birmingham, 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 A1 4,643,292
Bonds, Series 2001, 5.750%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.9%
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,130,000
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1%
180 Arkansas Development Finance Authority, Single Family 8/03 at 101.00 AA 184,090
Mortgage Revenue Refunding Bonds, 1991 Series A,
FHA-Insured or VA Guaranteed Mortgage Loans,
8.000%, 8/15/11
171 City of Jacksonville, Arkansas, Residential Housing Facilities 7/03 at 103.00 Aaa 176,775
Board, Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 1/01/11
264 Residential Housing Facilities Board of Lonoke County, 4/05 at 103.00 Aaa 277,872
Arkansas, Single Family Mortgage Revenue Refunding
Bonds, Series 1993A, 7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.9%
4,780 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 3,108,147
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 A- 886,250
Tobacco Settlement Asset-Backed Bonds, Series 2003-A1,
6.750%, 6/01/39
1,715 Housing Authority of the Merced County, California, 1/04 at 102.00 Aaa 1,763,260
Multifamily Housing Refunding Revenue Bonds, Series 1993A,
Belmont Park Apartments Project, 5.875%, 1/01/19
5,000 Airports Commission of the City and County of San Francisco, 5/04 at 101.00 AAA 5,251,150
California, Second Series Revenue Bonds, San Francisco
International Airport, Issue 8A, 6.300%, 5/01/25 (Alternative
Minimum Tax) - FGIC Insured
3,545 Redevelopment Agency of the City of San Leandro, California, 6/03 at 102.00 A-*** 3,631,214
Tax Allocation Bonds, Plaza 1 and Plaza 2 Redevelopment
Projects, 1993 Series A, 6.125%, 6/01/23 (Pre-refunded
to 6/01/03)
1,945 South Gate Public Financing Authority, Los Angeles County, No Opt. Call AAA 2,329,663
California, Water Revenue Refunding Bonds, 1996 Series A,
6.000%, 10/01/12 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.8%
2,150 Colorado Housing and Finance Authority, Single Family 10/09 at 105.00 Aa2 2,239,462
Program Senior 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 3,768,475
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
4,345 El Paso County School District No. 20, Academy, Colorado, 12/12 at 100.00 Aaa 4,802,572
General Obligation Bonds, Series 2002, 5.250%, 12/15/17 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5%
3,000 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 3,204,000
Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.8%
$ 6,000 District of Columbia, General Obligation Bonds, Series 1993B2, No Opt. Call AAA $ 6,853,440
5.500%, 6/01/10 - FSA Insured
1,975 District of Columbia, Hospital Revenue Refunding Bonds, 8/03 at 101.00 A-*** 2,019,576
Medlantic Healthcare Group, Inc. Issue, Series 1992B,
6.750%, 8/15/07 (Pre-refunded to 8/15/03)
4,250 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 4,804,498
Medlantic Healthcare Group, Inc. Issue, Series 1993A,
5.750%, 8/15/14 - MBIA Insured
District of Columbia, General Obligation Bonds, Series 1993E:
4,485 6.000%, 6/01/09 - CAPMAC Insured 6/03 at 102.00 AAA 4,595,735
5 6.000%, 6/01/09 - CAPMAC Insured 6/03 at 102.00 AAA 5,120
District of Columbia, General Obligation Refunding Bonds,
Series 1993A:
1,585 6.000%, 6/01/07 - MBIA Insured No Opt. Call AAA 1,825,207
7,215 6.000%, 6/01/07 - MBIA Insured No Opt. Call AAA 8,263,051
District of Columbia, University Revenue Bonds, Georgetown
University Issue, Series 2001A:
9,670 0.000%, 4/01/26 - MBIA Insured 4/11 at 42.15 AAA 2,633,915
15,235 0.000%, 4/01/30 - MBIA Insured 4/11 at 32.93 AAA 3,227,992
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 6.2%
5,000 Broward County Board of Education, Florida, Certificates 7/13 at 100.00 AAA 5,160,700
of Participation, Series 2003, 5.000%, 7/01/28 - MBIA Insured
5,000 Hillsborough County Aviation Authority, Florida, Tampa 10/13 at 100.00 AAA 5,302,600
International Airport Revenue Bonds, Series 2003A,
5.250%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured
9,000 JEA, Florida, Water and Sewer System Revenue Bonds, 10/05 at 100.00 Aa3 9,182,430
2001 Series A, 5.200%, 10/01/20
5,000 Martin County Industrial Development Authority, Florida, 12/04 at 102.00 BBB- 5,243,750
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 1,502,296
Multifamily Revenue Bonds, Sunset Bay Apartments
Project, Series 2000-5A, 5.850%, 7/01/20 (Alternative
Minimum Tax) - FSA Insured
9,500 City of Sunrise, Florida, Utility System Revenue Refunding 10/18 at 100.00 AAA 9,967,495
Bonds, Series 1998, 5.000%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
3,400 City of Atlanta, Georgia, Water and Wastewater Revenue No Opt. Call AAA 3,883,854
Bonds, Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,880 Municipal Electric Authority of Georgia, General Power No Opt. Call A+ 3,737,750
Revenue Bonds, 1992B Series, 8.250%, 1/01/11
5,500 Municipal Electric Authority of Georgia, General Power Revenue No Opt. Call AAA 6,458,595
Bonds, 1993B Series, 5.700%, 1/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.0%
City and County of Honolulu, Hawaii, General Obligation Bonds,
Refunding and Improvement Series 1993B:
1,580 5.000%, 10/01/13 No Opt. Call Aaa 1,781,719
3,420 5.000%, 10/01/13 No Opt. Call AA- 3,799,859
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.8%
4,000 Board of Education of the City of Chicago, Illinois, General No Opt. Call AAA 4,893,240
Obligation Lease Certificates, 1992 Series A,
6.250%, 1/01/15 - MBIA Insured
5,550 City of Chicago, Illinois, Midway Airport Revenue Bonds, 1/11 at 101.00 AAA 5,607,665
Series 2001A, 5.125%, 1/01/26 (Alternative Minimum
Tax) - FSA Insured
5,000 City of Chicago, Illinois, Sales Tax Revenue Bonds, 7/08 at 102.00 AAA 5,240,100
Series 1998, 5.250%, 1/01/28 - FGIC Insured
Cook County School District 99, Cicero, Illinois, General
Obligation School Bonds, Series 1997:
1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call Aaa 2,047,185
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call Aaa 2,442,677
6,200 Illinois Development Finance Authority, Revenue Bonds, Greek 4/11 at 105.00 Aaa 7,450,416
American Nursing Home Project, Series 2000A,
7.600%, 4/20/40
1,140 Illinois Development Finance Authority, Child Care Facility 9/03 at 101.00 N/R 1,164,966
Revenue Bonds, Series 1992, Illinois Facilities Fund Project,
7.400%, 9/01/04
29
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,255 Illinois Educational Facilities Authority, Revenue Bonds, 7/03 at 100.00 AAA $ 1,361,022
Chicago 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 A3*** 3,114,060
Series 1993, Illinois Masonic Medical Center,
5.500%, 10/01/19 (Pre-refunded to 10/01/03)
Illinois Health Facilities Authority, Revenue Refunding Bonds,
Series 1993C, Lutheran General Health System:
5,705 7.000%, 4/01/08 No Opt. Call A+ 6,586,308
4,075 7.000%, 4/01/14 No Opt. Call A+ 5,088,290
8,190 Illinois Housing Development Authority, Multifamily Program 9/04 at 102.00 A+ 8,515,716
Bonds, 1994 Series 5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly 5/03 at 102.00 A 3,482,156
Housing Revenue Bonds, Skyline Towers Apartments,
Series 1992B, 6.875%, 11/01/17
9,795 Community Unit School District No. 220 of the Counties of No Opt. Call AAA 11,070,995
Lake, Cook, Kane, and McHenry, Illinois, General Obligation
Bonds, Series 2002, 5.250%, 12/01/19 - FSA Insured
2,025 Long Creek Township, Macon County, Illinois, Waterworks 5/03 at 100.00 N/R 2,043,063
Refunding Revenue Bonds, Series 1993, 7.250%, 5/01/23
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
9,500 0.000%, 6/15/24 - MBIA Insured 6/22 at 101.00 AAA 4,928,695
4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,650,685
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 4,124,179
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
2,912 Town of Wood River, Madison County, Illinois, General 2/04 at 102.00 N/R 2,640,203
Obligation Bonds, Wood River Township Hospital, Alternate
Revenue Source, Series 1993, 6.625%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.1%
22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 23,132,560
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 - MBIA Insured
2,100 City of Indianapolis, Indiana, Economic Development Revenue 7/03 at 103.00 Caa3 1,050,000
Bonds, Series 1993A, The Meadows - Section 8 Assisted
Project, 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*** 2,122,980
Revenue Refunding Bonds, Series 1993, St. Joseph Hospital &
Health Center of Kokomo, 6.250%, 8/15/05
5,000 M.S.D. of Warren Township, Vision 2005 School Building 1/11 at 100.00 AAA 5,401,700
Corporation, Marion County, Indiana, First Mortgage
Bonds, Series 2000, 5.500%, 7/15/20 - FGIC Insured
3,615 Mooresville Consolidated School Building Corporation, Morgan 1/04 at 101.00 N/R*** 3,779,049
County, Indiana, First Mortgage Bonds, Series 1994A,
6.200%, 7/15/15 (Pre-refunded to 1/15/04)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.0%
195 City of Davenport, Iowa, Home Ownership Mortgage Revenue 9/04 at 102.00 Aa2 201,345
Refunding Bonds, Series 1994, 7.900%, 3/01/10
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 3.1%
610 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103.00 Aa2 634,839
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 7,086,965
2,460 6.125%, 12/01/28 (Alternative Minimum Tax) 12/08 at 101.00 N/R 2,142,365
2,000 City of Olathe, Kansas, Health Facilities Revenue Bonds, Olathe 9/10 at 100.00 AAA 2,107,680
Medical Center Project, Series 2000A, 5.500%, 9/01/25 -
AMBAC Insured
6,825 Sedgwick County Unified School District No. 259, Wichita, 9/10 at 100.00 AA 6,444,233
Kansas, General Obligation Bonds, Series 2000,
3.500%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.1%
495 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102.00 AAA 522,923
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
$ 3,135 Clover Dale Housing Corporation, Louisiana, Multifamily 10/03 at 100.00 AA- $ 3,150,550
Mortgage Revenue Refunding Bonds, Clover Dale Plaza -
FHA-Insured Mortgage, Section 8 Assisted Project,
1995 Series A, 6.550%, 2/01/22
3,070 Jefferson Sales Tax District, Parish of Jefferson, Louisiana, 12/12 at 100.00 AAA 3,310,811
Special Sales Tax Revenue Bonds, Series 2002 Refunding,
5.250%, 12/01/20 - AMBAC Insured
5,535 Orleans Levee District, A Political Subdivision of the State of 12/05 at 103.00 AAA 6,262,188
Louisiana, Levee Improvement Bonds, Series 1986 Serial
and Term Trust Receipts, 5.950%, 11/01/14 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 3.5%
7,520 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A2 8,114,606
Student Loan Revenue Bonds, Series 1994-B2,
6.250%, 11/01/06 (Alternative Minimum Tax)
11,540 Maine State Housing Authority, Mortgage Purchase Bonds, 5/10 at 100.00 AA+ 12,227,669
2000 Series C-1, 6.050%, 11/15/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 3.0%
4,245 Community Development Administration, Maryland Department 1/07 at 102.00 Aa2 4,548,051
of Housing and Community Development, Housing Revenue
Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Community Development Administration, Maryland Department 7/07 at 102.00 Aa2 3,064,459
of Housing and Community Development, 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 A2 7,167,336
Montgomery County, 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 2,507,793
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.125%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.0%
100 Massachusetts Housing Finance Agency, Housing Project 10/03 at 102.00 A+ 102,111
Revenue Bonds, 1993 Series A Refunding, 6.300%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.2%
5,000 City of Detroit, Michigan, Convention Facility Limited Tax 9/03 at 102.00 AAA 5,175,800
Revenue Refunding Bonds, Cobo Hall Expansion Project,
Series 1993, 5.250%, 9/30/12 - FSA Insured
10,225 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101.00 AAA 10,402,608
Bonds, Senior Lien, Series 1997-A, 5.000%, 7/01/27 -
MBIA Insured
City of Hancock Hospital Finance Authority, Michigan,
FHA-Insured Mortgage Hospital Revenue Bonds, Portage Health
System, Inc., Series 1998:
2,490 4.625%, 8/01/18 - MBIA Insured 8/08 at 100.00 AAA 2,598,315
4,400 5.450%, 8/01/47 - MBIA Insured 8/08 at 100.00 AAA 4,531,472
2,000 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call BBB- 1,997,620
and Refunding Bonds, Detroit Medical Center Obligated
Group, Series 1993B, 5.000%, 8/15/03
10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BBB- 7,545,930
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
3,750 Michigan Strategic Fund, Limited Obligation Refunding Revenue 6/03 at 102.00 AAA 3,846,188
Bonds, Consumers Power Company Project, Collateralized
Series 1993B, 5.800%, 6/15/10 - CAPMAC Insured
6,000 County of Monroe, Michigan, Pollution Control Revenue Bonds, 9/03 at 102.00 AAA 6,207,840
Detroit Edison Company Project, Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.9%
4,460 Minneapolis-St. Paul Housing Finance Board, Minnesota, 11/07 at 102.00 AAA 4,647,944
Single Family Mortgage Revenue Bonds, FNMA/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 3,681,195
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 - FGIC Insured
2,720 City of Minnetonka, Minnesota, Multifamily Housing Revenue 12/04 at 102.00 AAA 2,834,920
Refunding Bonds, Series 1994A, GNMA Collateralized
Mortgage Loan - Brier Creek Project, 6.450%, 6/20/24
31
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.4%
$ 2,000 Mississippi Higher Education Assistance Corporation, Student 9/03 at 101.00 Aaa $ 2,044,980
Loan Revenue Bonds, Senior Series 1993B, 5.800%, 9/01/06
(Alternative Minimum Tax)
5,180 State of Mississippi, General Obligation Bonds, Series 2002A No Opt. Call AA 6,038,326
Refunding, 5.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.4%
2,000 City of St. Louis, Missouri, Airport Revenue Bonds, Series 2001A, 7/11 at 100.00 AAA 2,050,420
Airport Development Program, 5.000%, 7/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.1%
9,000 Nebraska Higher Education Loan Program Inc., Senior No Opt. Call AAA 10,150,740
Subordinate Bonds, Series A-5A, 6.250%, 6/01/18 (Alternative
Minimum Tax) - MBIA Insured
2,325 Nebraska Investment Finance Authority, Single Family Housing 3/07 at 101.50 AAA 2,421,023
Revenue Bonds, 1998 Series F, 5.600%, 9/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.2%
10,420 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,591,937
Bonds, Series 2002C, 5.500%, 6/15/18 - MBIA Insured
4,500 Clark County School District, Nevada, General Obligation No Opt. Call AAA 5,564,430
School Improvement Bonds, Series 1991A, 7.000%, 6/01/10 -
MBIA Insured
1,300 Nevada Housing Division, Single Family Mortgage Bonds, 4/04 at 102.00 A1 1,344,642
1992 Senior Series B, 6.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.1%
575 New Hampshire Housing Finance Authority Single Family 1/07 at 102.00 Aa2 611,208
Mortgage Acquisition Revenue Bonds, 1996 Series C,
6.200%, 7/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.3%
3,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 3,706,110
Series 1991C, 6.500%, 1/01/16 - MBIA Insured
15,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 A- 12,788,700
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
3,125 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 A- 2,769,531
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.2%
1,000 The City of New York, New York, General Obligation Bonds, No Opt. Call A 1,065,400
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 3,553,305
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 15,431,475
Fiscal 1996 Series F, 6.500%, 2/01/05
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal 1998 Series C:
1,350 5.000%, 5/01/26 (Pre-refunded to 5/01/08) 5/08 at 101.00 AA+*** 1,529,874
15,565 5.000%, 5/01/26 5/08 at 101.00 AA+ 15,854,820
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal 2000 Series C:
3,630 5.875%, 11/01/16 (Pre-refunded to 5/15/10) 5/10 at 101.00 AA+*** 4,320,571
5,000 5.500%, 11/01/24 5/10 at 101.00 AA+ 5,428,850
220 New York City Transitional Finance Authority, New York, Future 5/10 at 101.00 AA+ 255,191
Tax Secured Bonds, Fiscal 2000 Series A, 5.875%, 11/01/16
2,490 New York State Medical Care Facilities Finance Agency, 8/03 at 101.00 AAA 2,587,235
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 4,556,076
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*** 5,167,988
3,365 6.200%, 2/15/21 2/04 at 102.00 AA 3,546,273
7,500 New York State Thruway Authority, General Revenue Bonds, 1/05 at 102.00 AAA 8,231,550
Series C, 6.000%, 1/01/15 (Pre-refunded to 1/01/05) -
FGIC Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.3%
$ 2,000 North Carolina Municipal Power Agency Number 1, Catawba No Opt. Call AAA $ 2,343,200
Electric Revenue Bonds, Series 1992, 6.000%, 1/01/11 -
MBIA Insured
10,000 North Carolina Municipal Power Agency Number 1, Catawba 1/13 at 100.00 AAA 10,905,700
Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/18 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.0%
205 City of Minot, North Dakota, Single Family Mortgage Revenue 8/03 at 102.00 Aa2 209,725
Refunding Bonds, Series 1993, 7.700%, 8/01/10
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.2%
4,500 Akron, Bath and Copley Joint Township Hospital District, Ohio, 5/03 at 102.00 Baa1 4,597,695
Hospital Facilities Revenue Bonds, Series 1992, Summa
Health System Project, 6.250%, 11/15/07
9,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 9,180,270
Series 2000A, 5.000%, 1/01/31 - FSA Insured
3,000 County of Franklin, Ohio, Development Revenue Bonds, 10/09 at 101.00 A 3,298,500
Series 1999, American Chemical Society Project,
5.800%, 10/01/14
1,000 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue 1/05 at 103.00 Aa 1,021,240
Bonds, Series 1994A, FHA-Insured Mortgage Loan Hamilton
Creek Apartments Project, 5.550%, 7/01/24 (Alternative
Minimum Tax)
1,615 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102.00 Aaa 1,696,638
Bonds, GNMA Mortgage-Backed Securities Programs,
1995 Series A-1, 6.300%, 9/01/17
4,370 City of Toledo, Ohio, General Obligation Bonds, Series 1994, 12/04 at 102.00 AAA 4,766,796
5.750%, 12/01/09 (Pre-refunded to 12/01/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.6%
805 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa 864,288
Revenue Bonds, 2000 Series C-2, Homeownership Loan
Program, 6.200%, 9/01/28 (Alternative Minimum Tax)
Oklahoma County Finance Authority, Multifamily Housing
First Mortgage Revenue Bonds, Series 1998A, Multiple
Apartments Project:
3,495 7.000%, 4/01/18# 4/06 at 102.00 N/R 1,398,000
7,000 7.125%, 4/01/28# 4/06 at 102.00 N/R 2,800,000
7,265 Southwest Rural Development Authority, Oklahoma, Multifamily 6/09 at 100.00 N/R 3,632,500
Housing Revenue Bonds, Series 1999, 7.250%, 6/01/34#
9,855 Tulsa County Industrial Authority, Oklahoma, First Mortgage 3/11 at 101.00 N/R 8,510,187
Multifamily Housing Revenue Bonds, Series 1999, Stoneridge
Apartments Project, 6.125%, 3/01/39 (Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Oklahoma, Revenue and Refunding No Opt. Call AAA 4,019,156
Bonds, Hillcrest Medical Center Project, Series 1996,
6.500%, 6/01/09 - CONNIE LEE Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.9%
5,000 Pennsylvania Economic Development Finance Authority, 1/04 at 102.00 BBB- 5,095,950
Resource Recovery Revenue Bonds, Senior Series 1994A,
Northampton Generating Project, 6.400%, 1/01/09 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 3.3%
12,390 Commonwealth of Puerto Rico, Public Improvement Refunding No Opt. Call AAA 15,420,470
Bonds, Series 1997, General Obligation Bonds,
6.500%, 7/01/13 - MBIA Insured
3,470 University of Puerto Rico, University System Revenue Bonds, 6/10 at 100.00 AAA 4,007,919
Series O, 5.750%, 6/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.8%
20,000 Tobacco Settlement Financing Corporation of Rhode Island, 6/12 at 100.00 A- 16,356,400
Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.9%
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Refunding Bonds, Series 1991:
5,000 6.250%, 1/01/21 - FGIC Insured No Opt. Call AAA 6,089,350
5,750 4.000%, 1/01/23 - MBIA Insured 7/03 at 100.00 AAA 5,205,820
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 5,767,763
Revenue Bonds, 1998A Refunding Series, 5.500%, 1/01/13 -
MBIA Insured
33
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.6%
$ 1,500 Metropolitan Government of Nashville and Davidson County, 5/08 at 102.00 AA $ 1,565,775
Tennessee, Electric System Revenue Bonds, 1998 Series A,
5.200%, 5/15/23
1,880 Tennessee Housing Development Agency, Mortgage Finance 7/04 at 102.00 AA 1,952,117
Program Bonds, 1994 Series A, 6.900%, 7/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.5%
4,500 Alliance Airport Authority, Inc., Texas, Special Facilities 6/03 at 100.00 Caa2 1,575,180
Revenue Bonds, Series 1990, American Airlines, Inc. Project,
7.500%, 12/01/29 (Alternative Minimum Tax)
3,345 Columbia-Brazoria Independent School District, Brazoria 2/09 at 100.00 AAA 3,347,275
County, Texas, Unlimited Tax School Building Bonds,
Series 1999, 4.750%, 2/01/25
8,000 Cities of Dallas and Fort Worth, Texas, Joint Revenue 11/11 at 100.00 AAA 8,825,360
Refunding and Improvement Bonds, Dallas-Ft. Worth
International Airport, Series 2001A, 5.875%, 11/01/19
(Alternative Minimum Tax) - FGIC Insured
6,000 Garland Housing Finance Corporation, Texas, Multifamily 12/11 at 101.00 N/R 6,203,040
Housing Mortgage Revenue Bonds, Edgewood Drive
Apartments, Series 2000, 7.500%, 6/01/40 (Alternative
Minimum Tax)
8,345 Hillsboro Housing Finance Corporation, Texas, Multifamily 6/09 at 100.00 N/R 4,589,750
Housing Revenue Bonds, Series 1999, 7.250%, 6/01/34#
28,305 City of Houston, Texas, Hotel Occupancy Tax and Special No Opt. Call AAA 7,350,525
Revenue Bonds, Series 2001B, Convention Project,
0.000%, 9/01/28 - AMBAC Insured
7,500 City of Houston Water and Sewer System, Texas, Junior Lien No Opt. Call AAA 8,893,275
Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 -
FSA Insured
5,000 City of Houston Water and Sewer System, Texas, Junior Lien 12/07 at 102.00 AAA 5,085,350
Revenue Refunding Bonds, Series 1997D, 5.000%, 12/01/25 -
FGIC Insured
7,140 Liberty County Housing Development Corporation, Texas, 6/09 at 100.00 N/R 6,568,800
Multifamily Housing Revenue Bonds, Series 1999,
7.250%, 6/01/34
496 Midland Housing Finance Corporation, Texas, Single Family 11/05 at 103.00 Aaa 534,108
Mortgage Revenue Refunding, 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 2,481,723
2,400 5.500%, 2/15/23 2/11 at 100.00 AAA 2,571,576
Mount Pleasant Independent School District, Titus County, Texas,
General Obligation Bonds, Series 2001 Refunding:
3,025 5.000%, 2/15/26 8/11 at 100.00 Aaa 3,093,819
3,000 5.125%, 2/15/31 8/11 at 100.00 Aaa 3,083,820
6,000 Raven Hills Higher Education Corporation, Texas, Student 8/12 at 100.00 Aaa 6,135,660
Housing Revenue Bonds, Texan Hall LLC - Angelo State
University, Series 2002A, 5.000%, 8/01/25 - MBIA Insured
3,410 Retama Development Corporation, Texas, Special Facilities No Opt. Call AAA 4,866,138
Revenue Bonds, Retama Park Racetrack Project, Series 1993,
8.750%, 12/15/12
4,700 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,839,590
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
4,359 Texas General Services Commission, Participation Interests, 9/03 at 100.50 A 4,430,843
Series 1992, 7.500%, 9/01/22
8,500 Travis County Health Facilities Development Corporation, 11/03 at 102.00 Aaa 8,853,515
Texas, Hospital Revenue Bonds, Daughters of Charity National
Health System - Daughters of Charity Health Services of
Austin, Series 1993B, 6.000%, 11/15/22
7,295 Wilbarger County Housing Finance Corporation, Texas, 6/09 at 100.00 N/R 3,647,500
Multifamily Housing Revenue Bonds, Series 1999,
7.250%, 6/01/34#
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 6.4%
$ 4,845 City of Bountiful, Davis County, Utah, Hospital Revenue 12/08 at 101.00 N/R $ 4,204,200
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 19,762,912
Refunding Bonds, 1997 Series B, 5.750%, 7/01/19 -
MBIA Insured
Intermountain Power Agency, Utah, Power Supply Revenue
Bonds, Series 1996A:
5,065 6.150%, 7/01/14 7/06 at 102.00 A+*** 5,792,587
2,935 6.150%, 7/01/14 7/06 at 102.00 A+ 3,163,255
780 Utah Housing Finance Agency, Single Family Mortgage 7/10 at 100.00 AA 809,078
Bonds, 2000 Series G, 5.875%, 7/01/27 (Alternative
Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
2001 Series C:
2,395 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 2,523,156
960 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aa2 1,007,126
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.9%
8,190 Hampton, Virginia, Convention Center Revenue Bonds, 1/13 at 100.00 AAA 8,401,711
Series 2002, 5.000%, 1/15/35 - AMBAC Insured
2,645 Suffolk Redevelopment and Housing Authority, Virginia, 7/03 at 102.00 Baa2 2,694,779
Multifamily Housing Revenue Refunding Bonds, Series 1994,
Chase Heritage at Dulles Project, 7.000%, 7/01/24
(Mandatory put 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 15.8%
1,050 City of Bellevue, King County, Washington, Water and Sewer 7/04 at 100.00 Aa2 1,104,537
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 1,992,400
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 1,123,203
Improvement and Refunding Revenue Bonds, Series 1995,
6.050%, 3/01/20 (Pre-refunded to 3/01/05) - AMBAC Insured
1,655 Everett, Washington, General Obligation Bonds, Series 1997, 9/07 at 100.00 Aaa 1,784,702
Limited Tax, 5.125%, 9/01/17 - FSA Insured
1,000 Seattle Indian Services Commission, Washington, Special 11/04 at 100.00 AAA 1,064,610
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 1,744,780
Housing Assistance Revenue Bonds, Series 1993, GNMA
Collateralized Mortgage Loan - Sea Mar Project,
7.000%, 6/20/35
1,500 Mukilteo School District No. 6, Snohomish County, No Opt. Call AAA 1,756,995
Washington, Unlimited Tax General Obligation and Refunding
Bonds, 1993, 5.700%, 12/01/12 - FGIC Insured
1,570 Spokane Downtown Foundation, Washington, Parking Revenue 8/08 at 102.00 D 792,850
Bonds, Series 1998, River Park Square Project, 5.600%, 8/01/19
8,155 City of Tacoma, Washington, Electric System Revenue Bonds, 1/11 at 101.00 AAA 9,066,403
Series 2001A Refunding, 5.750%, 1/01/20 - FSA Insured
4,705 City of Tacoma, Washington, Sewer Revenue Bonds, No Opt. Call AAA 6,002,451
Series 1994B Refunding, 8.000%, 12/01/08 - FGIC Insured
5,000 Tobacco Settlement Authority, Washington, Tobacco Settlement 6/13 at 100.00 A- 4,532,650
Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26
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+*** 47,199
1,955 6.000%, 5/01/19 (Pre-refunded to 5/01/04) 5/04 at 100.00 AA+*** 2,050,521
2,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/08 at 102.00 AA 2,012,600
Series 1998, Highline Community Hospital, 5.000%, 8/15/21 -
RAAI Insured
1,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102.00 AAA 1,010,830
Series 1998, Harrison Memorial Hospital, 5.000%, 8/15/28 -
AMBAC Insured
4,500 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102.00 Aa1*** 4,625,280
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 23,505,080
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
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*** 7,119,802
395 7.250%, 7/01/06 No Opt. Call Aa1 457,860
35
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 11,000 Washington Public Power Supply System, Nuclear Project No. 3 No Opt. Call Aa1 $ 13,346,740
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 4,905,813
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
1,400 Washington State University, Housing and Dining System 10/04 at 101.00 AAA 1,516,354
Revenue and Refunding Bonds, Series 1994, 6.375%, 10/01/18
(Pre-refunded to 10/01/04) - MBIA Insured
1,000 Yakima-Tieton Irrigation District, Yakima County, Washington, 6/03 at 102.00 AAA 1,023,930
Refunding Revenue Bonds, Series 1992, 6.125%, 6/01/13 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.9%
3,200 Wisconsin Housing and Economic Development Authority, 7/10 at 100.00 AA 3,242,432
Home Ownership Revenue Bonds, Series 2000,
6.100%, 3/01/27 (Alternative Minimum Tax)
7,500 Wisconsin Health and Educational Facilities Authority, 2/12 at 101.00 AAA 7,728,146
Revenue Bonds, Ministry Health Care Inc., Series 2002A,
5.250%, 2/15/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 919,282 Total Long-Term Investments (cost $870,390,218) - 153.2% 896,924,980
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.2%
10,000 Connecticut Health and Educational Facilities Authority, A-1+ 10,000,000
Revenue Bonds, Yale University, Variable Rate Demand
Bonds, Series 1997, 1.300%, 7/01/29+
2,655 Lower Neches Valley Authority, Texas, Industrial Development A-1+ 2,655,000
Corporation Exempt Facilities Revenue Bonds, Exxon Mobil
Project, Series 2001B, Variable Rate Demand Obligations,
1.350%, 11/01/29 (Alternative Minimum Tax)+
------------------------------------------------------------------------------------------------------------------------------------
$ 12,655 Total Short-Term Investments (cost $12,655,000) 12,655,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $883,045,218) - 155.4% 909,579,980
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 14,126,317
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (57.8)% (338,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 585,306,297
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
# 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.
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.
36
Statement of
ASSETS AND LIABILITIES April 30, 2003 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $1,389,999,443,
$915,082,910 and $883,045,218, respectively) $1,460,391,338 $968,330,962 $909,579,980
Receivables:
Interest 26,773,827 15,957,435 16,307,673
Investments sold 6,311,910 1,336,285 1,050,000
Other assets 53,209 19,355 54,616
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,493,530,284 985,644,037 926,992,269
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 5,246,810 1,636,724 2,500,290
Payable for investments purchased 352,410 2,533,375 --
Accrued expenses:
Management fees 747,065 498,845 471,139
Other 351,057 221,182 274,715
Preferred share dividends payable 52,168 38,230 39,828
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 6,749,510 4,928,356 3,285,972
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 525,000,000 347,000,000 338,400,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 961,780,774 $633,715,681 $585,306,297
====================================================================================================================================
Common shares outstanding 63,785,431 41,093,661 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.08 $ 15.42 $ 13.54
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 410,937 $ 432,367
Paid-in surplus 901,294,948 570,816,193 592,382,262
Undistributed net investment income 11,969,081 7,854,074 4,618,092
Accumulated net realized gain (loss) from investments (22,513,004) 1,386,425 (38,661,186)
Net unrealized appreciation of investments 70,391,895 53,248,052 26,534,762
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 961,780,774 $633,715,681 $585,306,297
====================================================================================================================================
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.
37
Statement of
OPERATIONS Six Months Ended April 30, 2003 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $39,894,147 $25,821,331 $ 24,141,294
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,516,112 3,012,673 2,854,601
Preferred shares - auction fees 650,856 430,185 419,523
Preferred shares - dividend disbursing agent fees 29,753 29,753 39,671
Shareholders' servicing agent fees and expenses 123,501 44,566 63,833
Custodian's fees and expenses 164,342 108,220 103,193
Directors' fees and expenses 8,912 6,141 7,694
Professional fees 24,183 17,288 226,901
Shareholders' reports - printing and mailing expenses 64,724 36,221 48,239
Stock exchange listing fees 12,362 8,097 11,399
Investor relations expense 98,105 63,957 63,628
Other expenses 40,009 25,767 29,314
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 5,732,859 3,782,868 3,867,996
Custodian fee credit (18,649) (22,005) (15,909)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,714,210 3,760,863 3,852,087
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 34,179,937 22,060,468 20,289,207
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments (3,968,543) 1,389,368 (12,464,353)
Change in net unrealized appreciation (depreciation) of investments 15,717,613 8,895,058 15,812,562
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 11,749,070 10,284,426 3,348,209
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,639,450) (1,507,347) (1,782,388)
From accumulated net realized gains from investments -- (384,068) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred shareholders (2,639,450) (1,891,415) (1,782,388)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares from operations $43,289,557 $30,453,479 $ 21,855,028
====================================================================================================================================
38
See accompanying notes to financial statements.
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
4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 34,179,937 $ 70,354,430 $ 22,060,468 $ 48,293,168 $ 20,289,207 $ 43,363,268
Net realized gain (loss) from
investments (3,968,543) (6,201,951) 1,389,368 4,919,255 (12,464,353) (18,076,293)
Change in net unrealized
appreciation (depreciation)
of investments 15,717,613 (24,711,552) 8,895,058 (17,479,447) 15,812,562 (16,827,256)
Distributions to Preferred
Shareholders:
From net investment income (2,639,450) (7,145,600) (1,507,347) (4,488,225) (1,782,388) (4,693,924)
From accumulated net
realized gains
from investments -- -- (384,068) (556,725) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from operations 43,289,557 32,295,327 30,453,479 30,688,026 21,855,028 3,765,795
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (30,234,294) (57,842,053) (20,233,004) (39,520,479) (18,509,632) (36,793,968)
From accumulated net
realized gains
from investments -- -- (4,164,058) (1,872,949) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to
Common shareholders (30,234,294) (57,842,053) (24,397,062) (41,393,428) (18,509,632) (36,793,968)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable
to Common shares 13,055,263 (25,546,726) 6,056,417 (10,705,402) 3,345,396 (33,028,173)
Net assets applicable to
Common shares at
the beginning of period 948,725,511 974,272,237 627,659,264 638,364,666 581,960,901 614,989,074
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $961,780,774 $948,725,511 $633,715,681 $627,659,264 $585,306,297 $581,960,901
====================================================================================================================================
Undistributed net investment
income at the end of period $ 11,969,081 $ 10,662,888 $ 7,854,074 $ 7,533,957 $ 4,618,092 $ 4,620,896
====================================================================================================================================
See accompanying notes to financial statements.
39
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
Common share New York Stock Exchange symbols are Nuveen Premium Income Municipal
Fund, Inc. (NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen
Premium Income Municipal Fund 4, Inc. (NPT). The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors of the Funds, or its
designee, may establish a fair value for the security. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At April 30, 2003,
Premium Income 2 (NPM) had an outstanding when-issued purchase commitment of
$2,533,375. There were no such outstanding purchase commitments in Premium
Income (NPI) nor Premium Income 4 (NPT).
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal income
tax, to retain such tax-exempt status when distributed to shareholders of the
Funds.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared and paid monthly.
Net realized capital gains and/or market discount from investment transactions,
if any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
40
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set pursuant to a dutch
auction process by the auction agent, and is payable at or near the end of each
rate period. The number of Preferred shares outstanding, by Series and in total,
for each Fund is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,800 2,000 2,200
Series M2 2,000 -- --
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series W2 -- -- 520
Series TH 3,800 3,000 2,680
Series F 3,800 2,000 1,800
Series F2 -- 1,880 1,328
--------------------------------------------------------------------------------
Total 21,000 13,880 13,536
================================================================================
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended April 30, 2003.
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.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
None of the Funds engaged in transactions in their own shares during the six
months ended April 30, 2003, nor during the fiscal year ended October 31, 2002.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the six months ended April 30, 2003, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Purchases $98,041,717 $144,951,659 $65,122,644
Sales and maturities 59,301,310 95,014,570 74,556,665
================================================================================
41
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At April 30, 2003, the cost of investments were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Cost of Investments $1,388,581,482 $914,401,912 $881,644,979
================================================================================
Gross unrealized appreciation and gross unrealized depreciation on investments
at April 30, 2003, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $100,376,294 $61,473,945 $ 61,852,068
Depreciation (28,566,438) (7,544,895) (33,917,067)
--------------------------------------------------------------------------------
Net unrealized appreciation
on investments $ 71,809,856 $53,929,050 $ 27,935,001
================================================================================
The tax components of undistributed net investment income and realized gains at
October 31, 2002, the Funds' last fiscal year end, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Undistributed net tax-exempt income $14,392,462 $9,881,002 $6,292,473
Undistributed net ordinary income * 31,042 150,954 97,805
Undistributed net long-term capital gains -- 4,545,182 --
================================================================================
The tax character of distributions paid during the fiscal year ended October 31,
2002, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Distributions from net tax-exempt income $64,402,305 $43,699,555 $41,452,859
Distributions from net ordinary income * 108,695 118,526 --
Distributions from net long-term
capital gains -- 2,429,675 --
================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
42
At October 31, 2002, 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:
2003 $ -- $ 5,281,759
2004 -- --
2005 -- --
2006 -- --
2007 -- --
2008 12,335,442 2,835,520
2009 -- --
2010 6,203,091 18,079,554
--------------------------------------------------------------------------------
Total $18,538,533 $26,196,833
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc.
(formerly, 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%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
6. INVESTMENT COMPOSITION
At April 30, 2003, 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 4% 5% 5%
Education and Civic Organizations 6 5 6
Healthcare 8 6 9
Housing/Multifamily 3 5 11
Housing/Single Family 9 7 4
Tax Obligation/General 14 27 15
Tax Obligation/Limited 18 10 10
Transportation 9 5 5
U.S. Guaranteed 13 17 12
Utilities 11 10 15
Water and Sewer 2 1 7
Other 3 2 1
--------------------------------------------------------------------------------
100% 100% 100%
================================================================================
43
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 (64% for Premium
Income (NPI), 56% for Premium Income 2 (NPM) and 57% for Premium Income 4
(NPT)). Such insurance or escrow, however, does not guarantee the market value
of the municipal securities or the value of any of the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 2, 2003, to shareholders of record on
May 15, 2003, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0800 $.0815 $.0710
================================================================================
44
Financial
HIGHLIGHTS (Unaudited)
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:
2003(a) $14.87 $ .54 $ .18 $(.04) $-- $ .68 $(.47) $-- $ (.47)
2002 15.27 1.10 (.48) (.11) -- .51 (.91) -- (.91)
2001 14.23 1.12 .98 (.26) -- 1.84 (.80) -- (.80)
2000 13.46 1.11 .78 (.33) -- 1.56 (.79) -- (.79)
1999 15.66 1.09 (2.10) (.24) (.02) (1.27) (.85) (.07) (.92)
1998 15.28 1.15 .43 (.25) (.01) 1.32 (.88) (.06) (.94)
PREMIUM INCOME 2 (NPM)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(a) 15.27 .54 .25 (.04) (.01) .74 (.49) (.10) (.59)
2002 15.53 1.17 (.30) (.11) (.01) .75 (.96) (.05) (1.01)
2001 14.75 1.21 .73 (.27) -- 1.67 (.89) -- (.89)
2000 14.61 1.22 .20 (.34) -- 1.08 (.92) (.02) (.94)
1999 16.15 1.18 (1.48) (.24) (.01) (.55) (.94) (.04) (.98)
1998 15.80 1.17 .46 (.24) (.02) 1.37 (.93) (.09) (1.02)
PREMIUM INCOME 4 (NPT)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(a) 13.46 .47 .08 (.04) -- .51 (.43) -- (.43)
2002 14.22 1.00 (.80) (.11) -- .09 (.85) -- (.85)
2001 13.54 1.08 .66 (.25) -- 1.49 (.81) -- (.81)
2000 13.50 1.11 .07 (.32) -- .86 (.82) -- (.82)
1999 15.05 1.09 (1.56) (.24) -- (.71) (.83) -- (.83)
1998 14.64 1.07 .42 (.26) -- 1.23 (.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:
2003(a) $-- $15.08 $14.5600 6.69% 4.66%
2002 -- 14.87 14.1100 5.51 3.47
2001 -- 15.27 14.2500 26.60 13.22
2000 -- 14.23 11.9375 4.10 12.03
1999 (.01) 13.46 12.2500 (14.03) (8.59)
1998 -- 15.66 15.1875 10.60 8.86
PREMIUM INCOME 2 (NPM)
----------------------------------------------------------------------------------------
Year Ended 10/31:
2003(a) -- 15.42 14.7300 6.55 4.96
2002 -- 15.27 14.4000 5.59 5.03
2001 -- 15.53 14.6100 17.31 11.63
2000 -- 14.75 13.2500 (2.03) 7.71
1999 (.01) 14.61 14.5000 (8.59) (3.66)
1998 -- 16.15 16.8750 15.98 8.93
PREMIUM INCOME 4 (NPT)
----------------------------------------------------------------------------------------
Year Ended 10/31:
2003(a) -- 13.54 13.0700 4.13 3.82
2002 -- 13.46 12.9700 .52 .76
2001 -- 14.22 13.7500 18.68 11.28
2000 -- 13.54 12.3125 3.28 6.58
1999 (.01) 13.50 12.7500 (8.77) (5.03)
1998 -- 15.05 14.8125 14.54 8.58
========================================================================================
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:
2003(a) $961,781 1.21%* 7.22%* 1.21%* 7.23%* 4%
2002 948,726 1.22 7.39 1.22 7.39 4
2001 974,272 1.22 7.49 1.21 7.50 20
2000 907,640 1.28 8.09 1.27 8.10 18
1999 858,491 1.18 7.28 1.17 7.29 15
1998 998,755 1.14 7.41 1.14 7.41 19
PREMIUM INCOME 2 (NPM)
---------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(a) 633,716 1.22* 7.09* 1.21* 7.09* 10
2002 627,659 1.22 7.70 1.21 7.71 21
2001 638,365 1.23 7.93 1.21 7.95 12
2000 605,973 1.23 8.38 1.22 8.39 7
1999 600,481 1.15 7.60 1.15 7.60 5
1998 659,840 1.13 7.35 1.13 7.35 7
PREMIUM INCOME 4 (NPT)
---------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(a) 585,306 1.34* 7.00* 1.33* 7.01* 7
2002 581,961 1.36 7.36 1.35 7.37 16
2001 614,989 1.34 7.73 1.33 7.74 10
2000 585,387 1.27 8.22 1.26 8.23 14
1999 583,541 1.20 7.51 1.20 7.51 14
1998 614,604 1.19 7.23 1.19 7.23 21
=====================================================================================================================
Preferred Shares at End of Period
-----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------
Year Ended 10/31:
2003(a) $525,000 $25,000 $70,799
2002 525,000 25,000 70,177
2001 525,000 25,000 71,394
2000 525,000 25,000 68,221
1999 525,000 25,000 65,881
1998 475,000 25,000 77,566
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------
Year Ended 10/31:
2003(a) 347,000 25,000 70,657
2002 347,000 25,000 70,220
2001 347,000 25,000 70,992
2000 347,000 25,000 68,658
1999 347,000 25,000 68,262
1998 300,000 25,000 79,987
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------
Year Ended 10/31:
2003(a) 338,400 25,000 68,241
2002 338,400 25,000 67,983
2001 338,400 25,000 70,434
2000 338,400 25,000 68,247
1999 338,400 25,000 68,110
1998 308,400 25,000 74,822
====================================================================
* 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, 2003.
See accompanying notes to financial statements.
46-47 SPREAD
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT:NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
48
Fund
INFORMATION
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
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
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows these Funds, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
---------
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, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
49
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $80 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 |
www.nuveen.com
ESA-E-0403D
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's Disclosure Controls and Procedures are
effective, based on their evaluation of such Disclosure Controls and Procedures
as of a date within 90 days of the filing of this report on Form N-CSR.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of our evaluation.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Premium Income Municipal Fund 4, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date July 8, 2003
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date July 8, 2003
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date July 8, 2003
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.