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 31, 2003
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Date of reporting period: October 31, 2003
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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.
ANNUAL REPORT October 31, 2003
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN PREMIUM INCOME MUNICIPAL FUND
NPI
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2
NPM
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4
NPT
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
photo of: Man catching falling boy
photo of: Women and Girls digging for seashell
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
--------------------------------------------------------------------------------
SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
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 and follow the simple instructions, using
the address sheet that accompanied this report as a guide.
2 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen and follow the simple instructions.
3 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
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.
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.
3 You'll be taken to a screen that asks for your Social Security number and
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
Chairman of the Board
Sidebar text: WE THINK YOUR NUVEEN FUND CAN BE AN IMPORTANT BUILDING BLOCK IN A
PORTFOLIO DESIGNED TO PERFORM WELL THROUGH A VARIETY OF MARKET CONDITIONS.
Dear Shareholder
I am very pleased to report that for the year ended October 31, 2003, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
Your Nuveen Fund is managed with a value investing strategy that puts an
emphasis on finding securities that we think are undervalued or underrated. We
believe that there are always some municipal bonds that the market is not
properly valuing, and that by using a consistent, research-oriented management
approach we have the opportunity to find them for your Fund.
In this low-rate environment, many have begun to wonder whether interest rates
will soon start to rise, and whether that possibility should cause them to
adjust their holdings of fixed-income investments. We believe that by
constructing a carefully balanced portfolio with the help of a trusted
investment professional you may be able to reduce your overall investment risk
and give yourself a better chance to meet your financial goals. We think that
municipal bond investments like your Nuveen Fund can be important building
blocks in a portfolio designed to perform well through a variety of market
conditions.
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
December 15, 2003
1
Nuveen National Municipal Closed-End Exchange-Traded Funds
(NPI, NPM, NPT)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Spalding and Dan Solender discuss U.S. economic and
market conditions, key investment strategies, and the annual performance of
these national Funds. A 27-year veteran of Nuveen, Tom has managed NPT since
January 2003. Tom recently turned over portfolio management responsibility for
NPI (in August 2003) and NPM (in October 2003) to Dan, who has 16 years of
investment experience.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
PERIOD ENDED OCTOBER 31, 2003?
Over the 12-month reporting period, the two greatest influences on the general
economy continued to be historically low interest rates and the overall pace of
economic improvement. In June 2003, the Federal Reserve reduced the fed funds
rate to 1.0%, the lowest level since 1958. The Fed's accommodative monetary
policy, coupled with Washington's tax relief measures and increased spending for
defense helped to fuel an 8.2% year-over-year jump in the third-quarter Gross
Domestic Product (GDP), up from 3.3% in the second quarter. At the same time,
inflation remained under control throughout the period.
In the municipal market, the slower rate of economic recovery over the majority
of this reporting period, low interest rates, and lack of inflationary pressures
helped many municipal bonds perform well. During the summer of 2003, however,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets, including the municipal market, for the 12-month period ended October
31, 2003.
During the first 10 months of 2003, municipal supply nationally remained robust,
with $319.9 billion in new bonds, up 8% over the same period in 2002.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THIS REPORTING PERIOD?
Individual results for these Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL LEHMAN
RETURN TOTAL LIPPER
MARKET YIELD ON NAV RETURN1 AVERAGE2
----------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
10/31/03 EQUIVALENT3 10/31/03 10/31/03 10/31/03
----------------------------------------------------------------
NPI 6.83% 9.49% 6.58% 5.11% 8.08%
----------------------------------------------------------------
NPM 6.86% 9.53% 6.07% 5.11% 8.08%
----------------------------------------------------------------
NPT 6.81% 9.46% 4.12% 5.11% 8.08%
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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 12 months ended October 31, 2003, both NPI and NPM outperformed the
unleveraged Lehman Brothers Municipal Bond Index, while NPT trailed this
measure, and all three Funds lagged their Lipper peer group average. The use of
leverage was one of the factors that influenced the performances of these Funds
relative to the Lehman index over the past 12 months. While this is a strategy
that carries some price risk and increased volatility, leveraging can provide
opportunities for additional income for common shareholders, especially during
periods of low short-term interest rates, and income is an important component
of total return for any bond investment. However, in NPT, the benefits of
leverage were offset to a large degree by the negative impact of price declines
in specific holdings within the Fund.
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman Brothers
Municipal Bond Index, an unleveraged, unmanaged 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 Funds are compared with the average annualized
return of the 62 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, other than an investment that generates qualified dividend
income that is taxable at a maximum rate of 15%, in order 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 28%.
2
Factors such as call exposure and portfolio trading activity, also affected the
performances of the three Funds compared with their Lipper peer group. For
example, at the beginning of this reporting period, these Funds held several
multifamily housing issues. For the 12 months ended October 2003, the
multifamily housing sector, as measured by the Lehman index, was among the
poorer performers, lagging the general municipal market by more than 35 basis
points. We have subsequently reduced NPT's position in these holdings.
Each of these Funds also held tobacco settlement bonds in their portfolios. In
July 2003, the credit ratings on most tobacco bonds in their portfolios were
downgraded to BBB from A, and the sector as a whole produced negative returns
for the 12 months ended October 31, 2003. Recently, however, in the wake of
legal developments more favorable to the tobacco companies, these bonds have
shown some signs of recovery. Following an in-depth analysis of the tobacco
sector, we believe that ongoing litigation will not affect the long-term quality
and value provided by the tobacco settlement bonds. As a result, we have
continued to hold and add to our tobacco investments as appropriate, while
regularly evaluating the situation.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels, the
dividend-paying capabilities of these Funds benefited from their use of
leverage. During the 12 months ended October 31, 2003, continued low short-term
rates enabled us to increase NPI's dividend in March 2003. Leverage also helped
to support the dividends of NPM and NPT. As of October 31, 2003, these two Funds
had paid shareholders steady or increasing dividends for 35 and 41 consecutive
months, respectively.
Even at these dividend levels, each Fund's common share net investment income
during the period exceeded the amount of dividends paid to common shareholders.
This excess net investment income, along with any excess net investment income
from prior fiscal periods, was held in reserve by the Funds as undistributed net
investment income (UNII) and is part of the Funds' net asset value. The Funds,
over time, will pay all their net investment income out to common shareholders.
However, UNII reserves may help the Funds maintain more stable common share
dividend levels over time should the short-term rates the Funds pay on their
MuniPreferred shares rise or net common share earnings otherwise decline.
Increased volatility in the fixed-income markets during the summer of 2003 led
to an overall weakening of bond prices. The Funds' share prices and NAVs
finished the period modestly lower than they had been at the beginning, with the
exception of NPI, where the NAV was unchanged. As of October 31, 2003, all three
Funds continued to trade at discounts to their common share NAVs.
3
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE FISCAL YEAR ENDED
OCTOBER 31, 2003?
Over this 12-month reporting period, we continued to place strong emphasis on
keeping the Funds fully invested and well diversified, improving call
protection, and enhancing dividend-paying capabilities. We also continued to
focus on managing the Funds' durations4 with the goal of enhancing our ability
to mitigate interest rate risk and produce potentially more consistent returns
over time. Interest rate risk is the risk that the value of a Fund's portfolio
will decline when market interest rates rise. The longer the duration of a
Fund's portfolio, the greater its interest rate risk. Over the past 12 months,
we worked to bring the Funds' durations more closely in line with one another.
As of October 31, 2003, the leverage-adjusted durations for these three Funds
ranged from 9.57 to 10.35.
In line with the steepness of the municipal yield curve, the majority of our
purchase activity over the past year focused on value opportunities in the
intermediate part of the yield curve (i.e., bonds that mature in 15 to 20
years). In many cases, bonds in this part of the curve offered yields similar to
those of longer-term bonds but, had less inherent interest rate risk.
Although the overall increase in municipal issuance during 2003 has provided
continued opportunities to make trades that would benefit the Funds, in recent
months we have not seen as much volume as the market originally anticipated. In
this environment, we have focused on bonds offering above-market coupons that
can help support the Funds' dividends by generating cash flow. In addition, they
can provide more protection from falling bond prices of similar maturities if
rates should rise than lower coupons bond of similar maturities. We also focused
on issues in the low AA/high A credit quality sectors that can add
diversification. Both general obligation bonds and the health care sector have
also provided opportunities to pick up incremental yield.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
OCTOBER 31, 2003?
We believe that, given the current geopolitical and economic climate,
maintaining strong credit quality remains a vital requirement. As of October 31,
2003, these Nuveen Funds offered excellent credit quality, with allocations of
bonds rated AAA/U.S. guaranteed and AA ranging from 79% to 82%.
Looking at bond calls, these Funds offer good levels of call protection over the
next two years, with potential call exposure ranging from 14% in NPT to 17% in
NPM during 2004 and 2005. The number of bond calls will depend largely on market
interest rates in coming months.
In general, we believe that these Nuveen Funds can continue to serve as
attractive sources of tax-free income, while simultaneously offering the
potential for portfolio diversification. In our opinion, the Funds represent a
quality component of a well-balanced core investment portfolio that can continue
to benefit shareholders over time.
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
Nuveen Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2003
NPI
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 66%
AA 16%
A 9%
BBB 7%
NR 1%
BB or Lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.06
--------------------------------------------------
Common Share Net Asset Value $14.87
--------------------------------------------------
Market Yield 6.83%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.49%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $948,312
--------------------------------------------------
Average Effective Maturity (Years) 19.05
--------------------------------------------------
Leverage-Adjusted Duration 9.57
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/18/88)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 6.48% 6.58%
--------------------------------------------------
5-Year 4.94% 5.04%
--------------------------------------------------
10-Year 4.48% 5.66%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 20%
--------------------------------------------------
Tax Obligation/General 19%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Transportation 10%
--------------------------------------------------
U.S. Guaranteed 9%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.0785
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0800
Apr 0.0800
May 0.0800
Jun 0.0800
Jul 0.0800
Aug 0.0800
Sep 0.0800
Oct 0.0800
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/02 14.20
14.07
14.12
13.65
13.71
13.98
13.84
13.77
13.90
14.08
13.76
13.86
14.00
14.07
14.26
14.15
14.20
14.19
14.23
14.09
13.97
14.26
14.17
14.20
14.32
14.50
14.65
14.85
15.23
15.29
15.40
14.97
15.08
15.20
15.01
14.45
13.86
14.07
13.91
13.86
13.95
14.06
14.17
14.20
14.21
14.31
14.05
13.96
10/31/03 14.06
1 Taxable equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
5
Nuveen Premium Income Municipal Fund 2, Inc.
Performance
OVERVIEW As of October 31, 2003
NPM
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 69%
AA 13%
A 9%
BBB 6%
NR 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.25
--------------------------------------------------
Common Share Net Asset Value $15.09
--------------------------------------------------
Market Yield 6.86%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.53%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $619,916
--------------------------------------------------
Average Effective Maturity (Years) 16.55
--------------------------------------------------
Leverage-Adjusted Duration 10.22
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/23/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 6.57% 6.07%
--------------------------------------------------
5-Year 3.40% 5.23%
--------------------------------------------------
10-Year 6.49% 6.27%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 26%
--------------------------------------------------
U.S. Guaranteed 15%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Healthcare 9%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.0815
Dec 0.0815
Jan 0.0815
Feb 0.0815
Mar 0.0815
Apr 0.0815
May 0.0815
Jun 0.0815
Jul 0.0815
Aug 0.0815
Sep 0.0815
Oct 0.0815
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/02 14.40
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
14.20
14.61
14.61
14.43
14.53
14.66
14.84
14.90
15.30
15.48
15.40
14.94
15.07
15.23
15.03
14.47
14.05
14.40
14.02
14.10
14.15
14.15
14.29
14.33
14.38
14.23
14.21
14.26
10/31/03 14.25
1 Taxable equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.1047 per share.
6
Nuveen Premium Income Municipal Fund 4, Inc.
Performance
OVERVIEW As of October 31, 2003
NPT
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 66%
AA 13%
A 10%
BBB 6%
NR 4%
BB or Lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $12.52
--------------------------------------------------
Common Share Net Asset Value $13.15
--------------------------------------------------
Market Yield 6.81%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.46%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $568,776
--------------------------------------------------
Average Effective Maturity (Years) 17.56
--------------------------------------------------
Leverage-Adjusted Duration 10.35
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/19/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 3.09% 4.12%
--------------------------------------------------
5-Year 3.00% 3.40%
--------------------------------------------------
10-Year 5.23% 4.90%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 16%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Bar chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.0710
Dec 0.0710
Jan 0.0710
Feb 0.0710
Mar 0.0710
Apr 0.0710
May 0.0710
Jun 0.0710
Jul 0.0710
Aug 0.0710
Sep 0.0710
Oct 0.0710
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/02 13.15
13.25
13.09
12.60
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
12.80
12.87
12.85
13.12
13.29
13.63
13.90
13.82
13.48
13.53
13.52
13.31
12.97
12.45
12.65
12.23
12.39
12.33
12.52
12.51
12.55
12.60
12.58
12.53
12.58
10/31/03 12.52
1 Taxable equivalent yield represents the yield that must be earned on a taxable
investment, other than an investment that generates qualified dividend income
that is taxable at a maximum rate of 15%, in order 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 28%.
2 The Fund also paid shareholders a net ordinary income distribution in December
2002 of $0.0021 per share.
7
Shareholder
MEETING REPORT
The annual shareholder meeting was held on July 28, 2003, at the Northern Trust
Bank, Chicago, Illinois.
NPI
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series M2 Series T Series W Series TH Series F
====================================================================================================================================
William E. Bennett
For 36,700,001 -- -- -- -- -- -- --
Withhold 1,309,456 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
Robert P. Bremner
For 36,708,451 -- -- -- -- -- -- --
Withhold 1,301,006 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
Lawrence H. Brown
For 36,738,225 -- -- -- -- -- -- --
Withhold 1,271,232 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
Jack B. Evans
For 36,725,587 -- -- -- -- -- -- --
Withhold 1,283,870 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
Anne E. Impellizzeri
For 36,658,262 -- -- -- -- -- -- --
Withhold 1,351,195 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
William L. Kissick
For 36,648,937 -- -- -- -- -- -- --
Withhold 1,360,520 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
Thomas E. Leafstrand
For 36,690,444 -- -- -- -- -- -- --
Withhold 1,319,013 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
Peter R. Sawers
For 36,694,481 -- -- -- -- -- -- --
Withhold 1,314,976 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 15,189 -- -- -- -- -- --
Withhold -- 207 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 15,396 -- -- -- -- -- --
====================================================================================================================================
8
NPI
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series M2 Series T Series W Series TH Series F
====================================================================================================================================
Timothy R. Schwertfeger
For -- 15,187 -- -- -- -- -- --
Withhold -- 209 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 15,396 -- -- -- -- -- --
====================================================================================================================================
Judith M. Stockdale
For 36,730,289 -- -- -- -- -- -- --
Withhold 1,279,168 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
Sheila W. Wellington
For 36,669,125 -- -- -- -- -- -- --
Withhold 1,340,332 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 -- -- -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT RESTRICTION
WITH RESPECT TO LENDING
For 27,997,475 2,876 -- -- -- -- -- --
Against 2,225,193 510 -- -- -- -- -- --
Abstain 1,387,478 71 -- -- -- -- -- --
Broker
Non-Vote 6,399,311 11,939 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 15,396 -- -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT RESTRICTION
WITH RESPECT TO BORROWING
For 27,878,520 2,875 -- -- -- -- -- --
Against 2,321,785 519 -- -- -- -- -- --
Abstain 1,409,841 63 -- -- -- -- -- --
Broker
Non-Vote 6,399,311 11,939 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 15,396 -- -- -- -- -- --
====================================================================================================================================
TO APPROVE AN AGREEMENT AND PLAN
OF REORGANIZATION AND THE
TRANSACTIONS CONTEMPLATED THEREBY
For 28,245,543 3,063 520 357 627 552 502 505
Against 1,895,228 310 33 5 48 148 26 50
Abstain 1,469,375 84 19 -- 29 34 -- 2
Broker
Non-Vote 6,399,311 11,939 2,129 1,443 2,039 2,144 2,205 1,979
------------------------------------------------------------------------------------------------------------------------------------
Total 38,009,457 15,396 2,701 1,805 2,743 2,878 2,733 2,536
====================================================================================================================================
9
Shareholder
MEETING REPORT (continued)
NPM
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series W Series TH Series F Series F2
====================================================================================================================================
William E. Bennett
For 23,924,442 -- -- -- -- -- -- --
Withhold 545,934 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
Robert P. Bremner
For 23,931,381 -- -- -- -- -- -- --
Withhold 538,995 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
Lawrence H. Brown
For 23,974,128 -- -- -- -- -- -- --
Withhold 496,248 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
Jack B. Evans
For 23,929,312 -- -- -- -- -- -- --
Withhold 541,064 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
Anne E. Impellizzeri
For 23,917,136 -- -- -- -- -- -- --
Withhold 553,240 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
William L. Kissick
For 23,913,852 -- -- -- -- -- -- --
Withhold 556,524 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
Thomas E. Leafstrand
For 23,957,179 -- -- -- -- -- -- --
Withhold 513,197 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
Peter R. Sawers
For 23,961,795 -- -- -- -- -- -- --
Withhold 508,581 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 12,731 -- -- -- -- -- --
Withhold -- 61 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 12,792 -- -- -- -- -- --
====================================================================================================================================
10
NPM
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series W Series TH Series F Series F2
====================================================================================================================================
Timothy R. Schwertfeger
For -- 12,728 -- -- -- -- -- --
Withhold -- 64 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 12,792 -- -- -- -- -- --
====================================================================================================================================
Judith M. Stockdale
For 23,945,562 -- -- -- -- -- -- --
Withhold 524,814 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
Sheila W. Wellington
For 23,958,166 -- -- -- -- -- -- --
Withhold 512,210 -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 -- -- -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT RESTRICTION
WITH RESPECT TO LENDING
For 17,196,364 2,490 -- -- -- -- -- --
Against 1,104,637 128 -- -- -- -- -- --
Abstain 743,327 168 -- -- -- -- -- --
Broker
Non-Vote 5,426,048 10,006 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 12,792 -- -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A
FUNDAMENTAL INVESTMENT RESTRICTION
WITH RESPECT TO BORROWING
For 17,144,647 2,478 -- -- -- -- -- --
Against 1,133,263 140 -- -- -- -- -- --
Abstain 766,418 168 -- -- -- -- -- --
Broker
Non-Vote 5,426,048 10,006 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 12,792 -- -- -- -- -- --
====================================================================================================================================
TO APPROVE AN AGREEMENT AND
PLAN OF REORGANIZATION AND THE
TRANSACTIONS CONTEMPLATED THEREBY
For 17,364,114 2,428 301 346 432 436 334 579
Against 887,104 187 7 76 15 65 12 12
Abstain 793,110 171 121 17 -- 19 7 7
Broker
Non-Vote 5,426,048 10,006 1,463 2,326 1,441 2,063 1,531 1,182
------------------------------------------------------------------------------------------------------------------------------------
Total 24,470,376 12,792 1,892 2,765 1,888 2,583 1,884 1,780
====================================================================================================================================
11
Shareholder
MEETING REPORT (continued)
NPT
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series T2
====================================================================================================================================
William E. Bennett
For 25,631,367 -- -- -- --
Withhold 745,366 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
Robert P. Bremner
For 25,635,820 -- -- -- --
Withhold 740,913 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
Lawrence H. Brown
For 25,627,896 -- -- -- --
Withhold 748,837 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
Jack B. Evans
For 25,632,126 -- -- -- --
Withhold 744,607 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
Anne E. Impellizzeri
For 25,610,037 -- -- -- --
Withhold 766,696 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
William L. Kissick
For 25,614,362 -- -- -- --
Withhold 762,371 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
Thomas E. Leafstrand
For 25,618,494 -- -- -- --
Withhold 758,239 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
Peter R. Sawers
For 25,653,996 -- -- -- --
Withhold 722,737 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 12,879 -- -- --
Withhold -- 18 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 12,897 -- -- --
====================================================================================================================================
12
NPT
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred MuniPreferred MuniPreferred
as a class as a class Series M Series T Series T2
====================================================================================================================================
Timothy R. Schwertfeger
For -- 12,876 -- -- --
Withhold -- 21 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 12,897 -- -- --
====================================================================================================================================
Judith M. Stockdale
For 25,650,898 -- -- -- --
Withhold 725,835 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
Sheila W. Wellington
For 25,630,281 -- -- -- --
Withhold 746,452 -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO LENDING
For 17,788,061 2,906 -- -- --
Against 1,356,096 211 -- -- --
Abstain 952,845 112 -- -- --
Broker Non-Vote 6,279,731 9,668 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 12,897 -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO BORROWING
For 17,749,610 2,898 -- -- --
Against 1,394,915 219 -- -- --
Abstain 952,477 112 -- -- --
Broker Non-Vote 6,279,731 9,668 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 12,897 -- -- --
====================================================================================================================================
TO APPROVE AN AGREEMENT AND PLAN OF REORGANIZATION
AND THE TRANSACTIONS CONTEMPLATED THEREBY
For 17,947,370 2,911 374 735 242
Against 1,191,704 202 15 28 6
Abstain 957,928 116 23 15 --
Broker Non-Vote 6,279,731 9,668 1,573 1, 181 1, 020
------------------------------------------------------------------------------------------------------------------------------------
Total 26,376,733 12,897 1,985 1, 959 1, 268
====================================================================================================================================
10
Shareholder
MEETING REPORT (continued)
NPT
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: (CONTINUED)
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
Series W Series W2 Series TH Series F Series F2
====================================================================================================================================
William E. Bennett
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
Robert P. Bremner
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
Lawrence H. Brown
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
Jack B. Evans
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
Anne E. Impellizzeri
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
William L. Kissick
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
Thomas E. Leafstrand
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
Peter R. Sawers
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
William J. Schneider
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
14
NPT
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: (CONTINUED)
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
Series W Series W2 Series TH Series F Series F2
====================================================================================================================================
Timothy R. Schwertfeger
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
Judith M. Stockdale
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
Sheila W. Wellington
For -- -- -- -- --
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO LENDING
For -- -- -- -- --
Against -- -- -- -- --
Abstain -- -- -- -- --
Broker Non-Vote -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
TO APPROVE A CHANGE TO A FUNDAMENTAL INVESTMENT
RESTRICTION WITH RESPECT TO BORROWING
For -- -- -- -- --
Against -- -- -- -- --
Abstain -- -- -- -- --
Broker Non-Vote -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- --
====================================================================================================================================
TO APPROVE AN AGREEMENT AND PLAN OF
REORGANIZATION AND THE TRANSACTIONS
CONTEMPLATED THEREBY
For 378 108 416 371 287
Against 27 1 64 54 7
Abstain 33 9 32 3 1
Broker Non-Vote 1,198 390 2,103 1,222 981
------------------------------------------------------------------------------------------------------------------------------------
Total 1,636 508 2,615 1,650 1,276
====================================================================================================================================
15
Report of
INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS AND SHAREHOLDERS
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC.
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC.
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Premium Income Municipal Fund, Inc.,
Nuveen Premium Income Municipal Fund 2, Inc. and Nuveen Premium Income Municipal
Fund 4, Inc. as of October 31, 2003, and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of investments owned as of October 31, 2003, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Premium Income Municipal Fund, Inc., Nuveen Premium Income Municipal Fund
2, Inc. and Nuveen Premium Income Municipal Fund 4, Inc. at October 31, 2003,
the results of their operations for the year then ended, the changes in their
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended in conformity
with accounting principles generally accepted in the United States.
Ernst & Young LLP
Chicago, Illinois
December 12, 2003
16
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.4%
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, 6/10 at 102.00 A1 $ 4,098,195
Series 2000, 6.125%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.4%
Anchorage, Alaska, General Obligation Refunding Bonds, Series 2003A:
2,000 5.250%, 9/01/17 - FGIC Insured 9/13 at 100.00 AAA 2,178,560
2,035 5.250%, 9/01/18 - FGIC Insured 9/13 at 100.00 AAA 2,199,591
10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement 6/10 at 100.00 BBB 8,856,600
Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.9%
5,000 Arizona School Facilities Board, Certificates of Participation, 9/13 at 100.00 AAA 5,404,400
Series 2003B, 5.250%, 9/01/18 - FGIC Insured
7,565 Pima County Industrial Development Authority, Arizona, Lease Obligation 1/04 at 102.00 AAA 7,970,862
Revenue Refunding Bonds, Tucson Electric Power Company - Irvington
Project, Series 1988A, 7.250%, 7/15/10 - FSA Insured
4,130 University of Arizona, Certificates of Participation, Series 2002B, 6/12 at 100.00 AAA 4,377,428
5.125%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.2%
3,500 Arkansas Development Finance Authority, Drivers License Revenue Bonds, 6/07 at 100.00 AAA 3,802,645
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 Bonds, 12/10 at 100.00 AAA 518,520
Series 2000, 5.650%, 12/01/25 - AMBAC Insured
1,000 Sebastian County Community Junior College District, Arkansas, General 4/09 at 100.00 AAA 1,168,490
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 Facilities 9/09 at 100.00 Aaa 5,431,565
Revenue Bonds, Razorback Stadium Project, Series 1999,
5.050%, 9/15/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.3%
California Health Facilities Financing Authority, Revenue Bonds, Adventist
Health System/West, Series 2003A:
3,700 5.000%, 3/01/28 3/13 at 100.00 A 3,432,157
7,000 5.000%, 3/01/33 3/13 at 100.00 A 6,421,380
10,250 California State, General Obligation Veterans Welfare Bonds, Series 12/08 at 101.00 AAA 10,814,365
1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax) - FSA Insured
4,000 California Department of Water Resources, Power Supply Revenue Bonds, 5/12 at 101.00 A3 4,544,160
Series 2002A, 6.000%, 5/01/15
23,725 State Public Works Board of the State of California, Lease Revenue 12/03 at 102.00 Aa2 24,269,014
Refunding Bonds, The Regents of the University of California, 1993
Series A, Various University of California Projects, 5.500%, 6/01/21
11,395 California Public Works Board, Lease Revenue Bonds, Department of No Opt. Call Baa1 12,091,690
Corrections, Series 1993E, 5.500%, 6/01/15
1,220 Martinez, California, Home Mortgage Revenue Bonds, Series 1983A, No Opt. Call AAA 1,774,832
10.750%, 2/01/16
20,000 Pomona, California, GNMA/FNMA Collateralized Securities Program Single No Opt. Call AAA 26,592,800
Family Mortgage Revenue Bonds, Series 1990A, 7.600%, 5/01/23
5,000 Sacramento Municipal Utility District, California, Electric Revenue 8/11 at 100.00 AAA 5,039,750
Bonds, Series 2001N, 5.000%, 8/15/28 - MBIA Insured
17
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
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 $ 7,338,628
10,000 5.750%, 10/01/25 - FSA Insured 10/05 at 102.00 AAA 10,897,000
10,000 San Joaquin Hills Transportation Corridor Agency, California, Toll Road No Opt. Call AAA 2,222,600
Refunding Revenue Bonds, Series 1997A, 0.000%, 1/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.9%
1,635 Colorado Housing and Finance Authority, Single Family Program Senior 4/10 at 105.00 AA 1,705,534
Bonds, 2000 Series B-2, 7.250%, 10/01/31 (Alternative Minimum Tax)
1,400 Colorado Housing and Finance Authority, Single Family Program Senior 5/07 at 105.00 Aa2 1,423,618
Bonds, 1997 Series B-2, 7.000%, 5/01/26 (Alternative Minimum Tax)
1,025 Colorado Housing and Finance Authority, Single Family Program Senior 11/07 at 105.00 Aa2 1,027,275
Bonds, 1997 Series C-2, 6.875%, 11/01/28 (Alternative Minimum Tax)
9,450 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call A 11,666,970
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
19,810 City and County of Denver, Colorado, Excise Tax Revenue Bonds, 3/11 at 100.00 AAA 21,872,023
Series 2001A, Colorado Convention Center Project, 5.500%, 9/01/18 -
FSA Insured
8,315 Denver, Colorado, Special Facilities Airport Revenue Bonds, United Air 4/04 at 101.00 Ca 4,157,500
Lines, Inc. Project, Series 1992A, 6.875%, 10/01/32 (Alternative
Minimum Tax)#
231 El Paso County, Colorado, FNMA Mortgage-Backed, Single Family No Opt. Call Aaa 242,192
Mortgage Revenue Refunding Bonds, Series 1992A-2, 8.750%, 6/01/11
4,000 Northwest Parkway Public Highway Authority, Colorado, Revenue Bonds, 6/11 at 102.00 AAA 4,110,800
Senior Series 2001A, 5.250%, 6/15/41 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
1,930 State of Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,215,775
5.500%, 12/15/16
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.0%
9,505 District of Columbia, Washington D.C. General Obligation Bonds, No Opt. Call AAA 11,152,026
Series 1998B, 6.000%, 6/01/20 - MBIA Insured
13,120 District of Columbia Housing Finance Agency, GNMA Collateralized Single 12/04 at 103.00 AAA 13,280,851
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 Medical 8/07 at 102.00 AAA 10,659,051
Colleges Issue, Series 1997A, 5.375%, 2/15/27 - AMBAC Insured
16,665 District of Columbia, University Revenue Bonds, Georgetown University 4/11 at 29.23 AAA 3,146,185
Issue, Series 2001A, 0.000%, 4/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.5%
9,290 Florida Department of Transportation, Right-of-Way Acquisition and 7/05 at 101.00 AAA 10,086,432
Bridge Construction Bonds, Series 1995, 5.800%, 7/01/21
(Pre-refunded to 7/01/05)
8,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/13 at 100.00 AAA 8,544,160
Airport Revenue Bonds, Series 2003A, 5.375%, 10/01/16 (Alternative
Minimum Tax) - MBIA Insured
5,000 Orange County Health Facility Authority, Florida, Hospital Revenue 11/10 at 101.00 A 5,418,350
Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2000,
6.500%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.9%
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue No Opt. Call AAA 5,866,520
Bonds, Refunding Series P, 6.250%, 7/01/20 - AMBAC Insured
2,750 Savannah Housing Authority, Georgia, GNMA Collateralized Mortgage 5/08 at 103.00 Aaa 2,924,818
Revenue Refunding Bonds, Plantation Oak Project, Series 2000,
6.350%, 11/20/39
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.4%
10,000 State of Hawaii, General Obligation Bonds, Series 2003DA, 9/13 at 100.00 AAA 10,618,600
5.250%, 9/01/21 - MBIA Insured
3,000 Hawaii Department of Budget and Finance, Special Purpose Mortgage 12/03 at 101.00 BBB 3,028,860
Revenue Bonds, Citizens Utilities, Series 1993, 5.538%, 12/15/23
(Alternative Minimum Tax)
18
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 $ 5,153,050
Series 2000, 5.500%, 9/01/25 (Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.0%
10,000 City of Chicago, Illinois, General Obligation Bonds, Project and 1/11 at 101.00 AAA 10,035,900
Refunding Series 2001A, 5.000%, 1/01/31 - MBIA Insured
9,220 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102.00 AAA 9,432,798
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds, Dedicated Tax Revenues, Series 1997A, 5.250%, 12/01/27 -
AMBAC Insured
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds, Dedicated Tax Revenue, Series 1998-B1:
8,890 0.000%, 12/01/16 - FGIC Insured No Opt. Call AAA 4,816,335
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AAA 4,195,200
9,900 0.000%, 12/01/24 - FGIC Insured No Opt. Call AAA 3,137,706
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds, Dedicated Tax Revenues, Series 1999A:
15,000 0.000%, 12/01/21 - FGIC Insured No Opt. Call AAA 5,886,600
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AAA 3,416,300
9,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, Special No Opt. Call Ca 2,340,000
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, General 1/04 at 102.00 AAA 4,640,940
Airport Second Lien, Revenue Refunding Bonds, 1993 Series C,
5.000%, 1/01/18 - MBIA Insured
835 Chicago, Illinois, FNMA/GNMA Collateralized Single Family Mortgage 3/06 at 105.00 Aaa 839,350
Revenue Bonds, Series 1996A, 7.000%, 9/01/27 (Alternative Minimum Tax)
1,915 Chicago, Illinois, FNMA/GNMA Collateralized Single Family Mortgage 9/07 at 105.00 Aaa 1,953,453
Revenue Bonds, Series 1997B, 6.950%, 9/01/28 (Alternative Minimum Tax)
8,740 Illinois Development Finance Authority, Pollution Control Refunding 2/04 at 102.00 AAA 8,988,129
Revenue Bonds, Illinois Power Company Project, Series 1994A,
5.700%, 2/01/24 - MBIA Insured
1,500 Illinois Health Facilities Authority, Revenue Bonds, Highland Park 10/07 at 102.00 AAA 1,737,060
Hospital Project, Series 1997A, 5.750%, 10/01/26 (Pre-refunded
to 10/01/07) - MBIA Insured
13,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman Health 8/07 at 101.00 AAA 14,116,301
Systems, Series 1997, 5.250%, 8/01/27 - AMBAC Insured
5,000 Illinois Health Facilities Authority, Revenue Bonds, Edward Hospital 2/11 at 101.00 AAA 5,122,800
Obligated Group, Series 2001B, 5.250%, 2/15/34 - FSA Insured
9,200 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place 12/09 at 101.00 AAA 9,731,300
Expansion Project Bonds, Series 1999A, 5.500%, 12/15/24 - FGIC Insured
3,000 Metropolitan Pier and Exposition Authority, Illinois, Series 1996A, No Opt. Call AAA 3,862,140
McCormick Place Hospitality Facilities Revenue Bonds, 7.000%, 7/01/26
4,925 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and No Opt. Call AAA 5,817,558
Will Counties, Illinois, General Obligation Bonds, Series 1992A, 9.000%,
6/01/06 - AMBAC Insured
785 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and No Opt. Call AAA 927,266
Will Counties, Illinois, General Obligation Bonds, Series 1992B, 9.000%,
6/01/06 - AMBAC Insured
3,000 Upper Illinois River Valley Development Authority, Health Care 12/11 at 101.00 BBB+ 3,140,070
Facilities Revenue Bonds, Series 2001, Morris Hospital Project,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.3%
5,000 Center Grove 2000 Building Corporation, Indiana, First Mortgage Bonds, 7/11 at 100.00 AAA 5,273,900
Series 2001, 5.500%, 1/15/26 - AMBAC Insured
4,565 Indiana State Office Building Commission, Correctional Facilities 7/05 at 102.00 AAA 4,864,966
Program Revenue Bonds, Series 1995A, 5.500%, 7/01/20 - AMBAC Insured
7,070 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 6/13 at 100.00 AAA 7,607,108
2003A, 5.250%, 6/01/18 - FSA Insured
19
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 8,000 Steuben County Middle School Building Corporation, Indiana, First 7/05 at 102.00 AAA $ 8,854,320
Mortgage Bonds, Series 1995, 6.375%, 7/15/16 (Pre-refunded to
7/15/05) - MBIA Insured
7,965 Wawasee Community School Corporation, Indiana, New Elementary and 1/12 at 101.00 AA- 8,670,779
Remodeling Building Corporation, First Mortgage Bonds, Series 2000,
5.750%, 1/15/20
5,300 Whitley County Middle School Building Corporation, Columbia City, 1/04 at 102.00 AAA 5,463,240
Indiana, First Mortgage Bonds, Series 1994, 6.250%, 7/15/15
(Pre-refunded to 1/15/04) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
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 1,359,816
1,410 5.800%, 6/01/18 - MBIA Insured 6/08 at 100.00 AAA 1,581,061
3,000 Iowa Financing Authority, Private College Revenue Refunding Bonds, 12/05 at 102.00 AAA 3,273,450
Drake University Project, Series 1996, 5.400%, 12/01/16 - MBIA Insured
4,785 Iowa Finance Authority, Industrial Revenue Refunding Bonds, Series A 1989, No Opt. Call AAA 6,717,996
Urbandale Hotel Corporation Project, Remarketed, 8.500%, 8/01/16
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.3%
11,000 Sedgwick and Shawnee Counties, Kansas, GNMA Mortgage-Backed 6/08 at 105.00 Aaa 12,050,720
Securities Program, Single Family Revenue Bonds, Series 1998A-1,
6.500%, 12/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.2%
2,915 Jefferson Sales Tax District, Parish of Jefferson, Louisiana, 12/12 at 100.00 AAA 3,117,913
Special Sales Tax Revenue Bonds, Series 2002 Refunding,
5.250%, 12/01/19 - AMBAC Insured
1,270 Louisiana Housing Finance Agency, Single Family Mortgage Revenue Bonds, 9/09 at 101.00 Aaa 1,320,737
Series 2000A, 7.450%, 12/01/31 (Alternative Minimum Tax)
11,860 Louisiana Stadium and Exposition District, Hotel Occupancy Tax Bonds, 7/05 at 102.00 AAA 13,105,181
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 Revenue No Opt. Call BBB 9,567,187
Bonds, Comm-Care Corporation Project, Series 1994, 11.000%, 2/01/14
4,500 Tobacco Settlement Financing Corporation, Louisiana, Asset-Backed Bonds, 5/11 at 101.00 BBB 3,602,970
Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4%
3,600 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 3,785,436
Multifamily Housing Development Bonds, Series 2000B, 6.200%, 7/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.5%
10,000 Massachusetts Bay Transportation Authority, Assessment Bonds, 2000 7/10 at 100.00 AAA 10,361,900
Series A, 5.250%, 7/01/30
13,000 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated 6/10 at 100.00 AAA 15,220,660
Loan of 2000 Series B, 6.000%, 6/01/16 (Pre-refunded to 6/01/10)
13,250 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated 1/13 at 100.00 AAA 14,024,595
Loan, Series 2002E, 5.250%, 1/01/21 - FSA Insured
4,000 Commonwealth of Massachusetts, General Obligation Bonds, Series 10/13 at 100.00 Aa2 4,187,160
2003D, 5.250%, 10/01/22
2,825 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 12/08 at 102.00 BBB 2,775,308
Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.450%,
12/01/12 (Alternative Minimum Tax)
14,750 Massachusetts Industrial Finance Agency, General Obligation Bonds, 7/07 at 102.00 AAA 15,251,500
Suffolk University, Series 1997, 5.250%, 7/01/27 - AMBAC Insured
8,750 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 AAA 9,086,963
Revenue Bonds, 2001 Series A, 5.850%, 7/01/35 (Alternative Minimum
Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.3%
City of Detroit, Michigan, General Obligation Bonds, Series 2003A:
3,565 5.250%, 4/01/22 - XLCA Insured 4/13 at 100.00 AAA 3,725,104
1,275 5.250%, 4/01/23 - XLCA Insured 4/13 at 100.00 AAA 1,324,368
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
City of Detroit, Michigan, Sewage Disposal System Revenue Bonds,
Series 1995-A:
$ 2,700 5.000%, 7/01/25 (Pre-refunded to 7/01/05) - MBIA Insured 7/05 at 100.00 AAA $ 2,868,534
7,850 5.000%, 7/01/25 - MBIA Insured 7/05 at 100.00 AAA 7,870,018
10,510 Hudsonville Public Schools, Counties of Ottawa and Allegan, Michigan, 5/08 at 100.00 AAA 10,869,862
1997 School Building and Site and Refunding Bonds, General Obligation
Unlimited Tax, 5.150%, 5/01/22 - FGIC Insured
9,625 Livonia Public Schools District, County of Wayne, State of Michigan, 11/03 at 102.00 AAA 9,885,645
1993 Refunding Bonds, General Obligation Unlimited Tax, 5.500%,
5/01/21 - FGIC Insured
6,600 Michigan Housing Development Authority, Limited Obligation Multifamily 7/07 at 102.00 AAA 6,757,806
Mortgage Revenue Refunding Bonds, Forest Hills Regency Square Project,
Series 1999A, 5.750%, 7/01/29
6,390 Charter County of Wayne, Michigan, Airport Revenue Bonds, Detroit 12/12 at 100.00 AAA 6,732,760
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 (Alternative
Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.8%
Eden Prairie, Minnesota, GNMA Collateralized Multifamily Housing
Revenue Bonds, Rolling Hills Project, Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105.00 A1 1,091,720
2,000 6.200%, 2/20/43 8/11 at 105.00 A1 2,176,440
705 Minneapolis/St. Paul Housing Finance Board, Minnesota, FNMA/GNMA 11/04 at 102.00 AAA 716,477
Mortgage-Backed Securities Program, Single Family Mortgage Revenue
Bonds, Series 1994, 7.500%, 11/01/27 (Alternative Minimum Tax)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/08 at 101.00 AAA 3,046,710
Airport Revenue Bonds, Series 1998A, 5.000%, 1/01/22 - AMBAC
Insured
5,000 Minnesota Agricultural and Economic Development Board, Health Care 11/07 at 102.00 AAA 5,356,450
System Revenue Bonds, Series 1997A, Fairview Hospital and Healthcare
Services, 5.750%, 11/15/26 - MBIA Insured
19,460 Housing and Redevelopment Authority of the City of Saint Paul, 11/15 at 103.00 AAA 24,001,964
Minnesota, Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.6%
2,760 Missouri Housing Development Commission, Homeownership Loan Program, 3/07 at 105.00 AAA 2,868,606
Single Family Mortgage Revenue Bonds, Series 1996C, 7.450%, 9/01/27
(Alternative Minimum Tax)
Health and Educational Facilities Authority of the State of
Missouri, Revenue Bonds, SSM Health Care System, Series 2001A:
3,000 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 3,142,290
14,150 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 14,513,938
9,765 Missouri Housing Development Commission, Homeownership Loan 3/09 at 103.00 AAA 10,543,759
Program, Single Family Mortgage Revenue Bonds, Series 1999B-1,
6.700%, 9/01/30 (Alternative Minimum Tax)
11,120 Francis Howell School District, Saint Charles County, Missouri, General No Opt. Call AAA 12,940,789
Obligation Bonds, Series 1994A Refunding, 7.800%, 3/01/08 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.1%
8,500 Omaha, Nebraska, General Obligation Bonds, Convention Center Project, No Opt. Call AAA 10,684,415
Series 2000A, 6.500%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 9.2%
15,000 Clark County, Nevada, General Obligation Bond Bank, Series 2001, 6/11 at 100.00 AAA 15,429,000
Southern Nevada Water Authority Loan, 5.250%, 6/01/26 - FGIC Insured
14,810 Clark County School District, Nevada, General Obligation Bonds, Series 12/11 at 100.00 AAA 16,337,948
2001F, 5.500%, 6/15/18 - FSA Insured
10,410 Clark County School District, Nevada, General Obligation Bonds, Series 6/12 at 100.00 AAA 11,352,417
2002C, 5.500%, 6/15/18 - MBIA Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, 1st Tier Series 2000:
6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call AAA 1,597,641
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 12,554,520
29,410 Colorado River Commission, Nevada, General Obligation Limited Tax Bonds, 7/04 at 101.00 AA 30,282,007
Series 1994, 5.500%, 7/01/27
21
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.7%
$ 4,660 New Hampshire Housing Finance Authority, Single Family Mortgage 1/04 at 102.00 Aa2 $ 4,730,925
Revenue Bonds, 1993 Series B, 6.050%, 7/01/25
1,760 New Hampshire Housing Finance Authority, Single Family Mortgage 7/06 at 102.00 Aa2 1,817,534
Acquisition Revenue Bonds, 1996 Series B, 6.400%, 1/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.6%
10,150 Delaware River Port Authority, State of New Jersey and Pennsylvania, 1/10 at 100.00 AAA 10,933,682
Port District Project Bonds, Series 1999B, 5.625%, 1/01/26 -
FSA Insured
10,000 Essex County Improvement Authority, New Jersey, General Obligation 10/10 at 100.00 Aaa 11,177,800
Guaranteed Lease Revenue Bonds, County Correctional Facility Project,
Series 2000, 6.000%, 10/01/25 - FGIC Insured
13,730 New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue 10/07 at 101.50 AAA 14,243,914
Bonds, Series 1997U, 5.850%, 4/01/29 (Alternative Minimum Tax) -
MBIA Insured
New Jersey Transportation Trust Fund Authority, Transportation System
Bonds, Series 2003C:
5,000 5.500%, 6/15/19 6/13 at 100.00 AA- 5,470,550
5,410 5.500%, 6/15/20 6/13 at 100.00 AA- 5,901,282
9,250 5.500%, 6/15/23 6/13 at 100.00 AA- 9,946,803
10,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,439,700
5.000%, 1/01/20 - FSA Insured
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 2000A:
3,915 6.000%, 1/01/14 No Opt. Call AAA 4,644,599
7,585 6.000%, 1/01/14 - MBIA Insured No Opt. Call AAA 8,935,358
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.0%
2,200 Mew Mexico Mortgage Finance Authority, Single Family Mortgage Program 3/10 at 102.50 AAA 2,451,768
Bonds, 2000 Series D-2, 6.850%, 9/01/31 (Alternative Minimum Tax)
5,585 Santa Fe County, New Mexico, Correctional System Gross Receipts Tax No Opt. Call AAA 6,564,330
Revenue Bonds, Series 1997, 6.000%, 2/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.3%
13,000 Erie County Tobacco Asset Securitization Corporation, New York, Senior 7/10 at 101.00 BBB 12,572,560
Tobacco Settlement Asset-Backed Bonds, Series 2000, 6.250%, 7/15/40
14,580 Long Island Power Authority, New York, Electric System General Revenue 6/08 at 101.00 A- 14,886,617
Bonds, Series 1998A, 5.250%, 12/01/26
2,000 New York Counties Tobacco Trust I, Tobacco Settlement Pass-Through 6/10 at 101.00 BBB 2,001,640
Bonds, Series 2000, 6.500%, 6/01/35
10,000 City of New York, New York, General Obligation Bonds, Fiscal 2/06 at 101.50 A 10,888,800
Series 1996G, 5.750%, 2/01/07
City of New York, New York, General Obligation Bonds, Fiscal Series 1997G:
950 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 1,104,774
5,050 6.000%, 10/15/26 10/07 at 101.00 A 5,519,095
5,000 City of New York, New York, General Obligation Bonds, Fiscal 2003 Series 6/13 at 100.00 A 5,283,850
J, 5.500%, 6/01/23
12,500 City of New York, General Obligation Bonds, Fiscal 2003 Series D, 10/13 at 100.00 A 12,806,500
5.250%, 10/15/22
16,000 New York City Municipal Water Finance Authority, New York, Water and 6/06 at 101.00 AAA 17,585,440
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 Bonds, Department 7/06 at 102.00 AAA 2,132,000
of Health Issue, Series 1996, 5.500%, 7/01/25 - MBIA Insured
4,000 New York State Energy Research and Development Authority, Facilities 3/04 at 101.00 A1 4,059,520
Revenue Bonds, Series 1993A, Consolidated Edison Company of New
York, Inc. Project, 6.000%, 3/15/28 (Alternative Minimum Tax)
3,695 New York State Medical Care Facilities Finance Agency, Hospital and 2/04 at 102.00 AAA 3,800,123
Nursing Home FHA-Insured Mortgage Revenue Bonds, 1993 Series B,
5.500%, 2/15/22
14,000 New York State Urban Development Corporation, Correctional and Youth No Opt. Call AA- 15,605,520
Facilities Service Contract Revenue Bonds, Series 2002A, 5.500%,
1/01/17 (Mandatory put 1/01/11)
7,400 Tobacco Settlement Financing Corporation of New York State, 6/10 at 100.00 AA- 7,849,772
Asset-Backed Bonds, Series 2003-A1, 5.500%, 6/01/16
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.0%
City of Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
$ 5,785 5.250%, 6/01/22 6/13 at 100.00 AA+ $ 6,075,812
3,475 5.250%, 6/01/23 6/13 at 100.00 AA+ 3,630,506
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.2%
9,650 Dickinson, North Dakota, Health Care Facilities Revenue Bonds, BHS Long 2/10 at 102.00 AA 11,830,804
Term Care Inc., Series 1990, 7.625%, 2/15/20 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.1%
4,265 County of Franklin, Ohio, Hospital Improvement Revenue Bonds, Series 5/11 at 101.00 Aaa 4,508,276
2001, Children's Hospital Project, 5.500%, 5/01/28 - AMBAC Insured
12,360 State of Ohio, Turnpike Revenue Bonds, 1994 Series A, Issued by the Ohio 2/04 at 102.00 Aaa 12,776,408
Turnpike Commission, 5.750%, 2/15/24 (Pre-refunded to 2/15/04)
2,720 Ohio State University, General Receipts Bonds, Series 2003B, 5.250%, 6/13 at 100.00 AA 2,893,618
6/01/20
2,000 County of Richland, Ohio, Hospital Facilities Revenue Refunding Bonds, 11/10 at 101.00 A- 2,155,460
Series 2000A, MedCentral Health System Obligated Group, 6.125%,
11/15/16
7,000 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 A3 7,309,890
Improvement Bonds, Trinity Health System, Series 2000,
6.500%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 6.2%
15,650 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call AAA 17,174,936
Government Revenue Bonds, Series 1998A, 5.500%, 8/01/28 - AMBAC Insured
Lancaster Higher Education Authority, Pennsylvania, Revenue Bonds,
Franklin and Marshall College, Series 2003C:
1,340 5.250%, 4/15/15 4/13 at 100.00 A+ 1,452,654
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,094,730
10,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 4/04 at 102.00 AA+ 10,218,000
Bonds, Series 1993-37A, 5.450%, 10/01/17
8,405 Philadelphia Redevelopment Authority, Pennsylvania, Multifamily Housing 4/08 at 103.00 N/R 7,586,605
Mortgage Revenue Bonds, Cricket Court Apartments Project, Series
1998A, 6.200%, 4/01/25 (Alternative Minimum Tax)
5,295 Philadelphia School District, Pennsylvania, General Obligation Bonds, 9/05 at 101.00 AAA 5,580,665
Series 1995B, 5.500%, 9/01/25 - AMBAC Insured
14,000 State Public School Building Authority, Pennsylvania, Lease Revenue 6/13 at 100.00 AAA 14,560,700
Bonds, Philadelphia School District Project, Series 2003, 5.250%,
6/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.6%
5,770 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 1995X, 7/05 at 100.00 A- 5,844,491
5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.2%
1,380 Providence Redevelopment Agency, Rhode Island, Revenue Bonds, Public 4/10 at 101.00 Aaa 1,547,836
Safety and Municipal Building Projects, Series 1999A, 5.625%, 4/01/15
- AMBAC Insured
10,000 Rhode Island Housing and Mortgage Finance Corporation, Homeownership 10/09 at 100.00 AA+ 10,243,500
Opportunity Bonds, Series 35-A, 5.800%, 10/01/32 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.9%
Greenville County School District, South Carolina, Installment Purchase
Revenue Bonds, Series 2003:
5,090 5.250%, 12/01/18 12/13 at 100.00 AA- 5,339,665
3,595 5.250%, 12/01/20 12/13 at 100.00 AA- 3,718,596
1,865 5.250%, 12/01/21 12/13 at 100.00 AA- 1,920,111
15,000 South Carolina Jobs-Economic Development Authority, Hospital Revenue 8/13 at 100.00 BBB 15,411,150
Bonds, Palmetto Health Alliance, 2003C, 6.375%, 8/01/34
12,500 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101.00 BBB 11,014,500
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28
23
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.6%
$ 10,205 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 12/03 at 100.00 CCC $ 7,125,233
Bonds, American Airlines, Inc. Project, Series 1990, 7.500%, 12/01/29
(Alternative Minimum Tax)
3,289 Austin Housing Finance Corporation, Texas, Multifamily Housing Revenue 12/10 at 105.00 Aaa 3,673,780
Bonds, GNMA Collateralized Mortgage Loan, Fairway Village Project,
Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax)
3,000 Brazos River Authority, Texas, Pollution Control Revenue Bonds, TXU 10/13 at 101.00 BBB 3,134,100
Energy Company LLC, Series 2003C, 6.750%, 10/01/38
(Alternative Minimum Tax)
Clear Creek Independent School District, Galveston and Harris
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000:
4,850 6.000%, 2/15/16 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA 5,689,535
175 6.000%, 2/15/16 2/10 at 100.00 AAA 199,495
865 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA Single Family 9/10 at 105.00 AAA 947,694
Mortgage Revenue Bonds, Series 2000A, 6.700%, 9/01/33 (Alternative
Minimum Tax)
20,000 Harris County-Houston Sports Authority, Texas, Junior Lien Revenue 11/11 at 100.00 AAA 20,454,800
Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured
15,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds, 8/04 at 102.00 AAA 15,766,350
Series 1994, 5.300%, 8/15/13 - AMBAC Insured
Harris County Hospital District, Texas, Revenue Refunding Bonds,
Series 1990:
4,205 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 4,735,419
6,670 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 7,793,762
19,125 Harris County, Texas, Hospital District, Refunding Revenue Bonds, Series 8/10 at 100.00 AAA 21,792,364
2000, 6.000%, 2/15/15 - MBIA Insured
1,343 Heart of Texas Housing Finance Corporation, GNMA Collateralized 9/10 at 105.00 Aaa 1,466,945
Mortgage Loan, Multifamily Housing Revenue Bonds, Parkside Village
Project, Series 2000A, 7.400%, 9/20/35 (Alternative Minimum Tax)
6,000 City of Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,647,160
Series 2001B, 5.500%, 3/01/15 - FSA Insured
9,250 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, 7/10 at 100.00 AAA 9,768,370
Series 2000B, 5.500%, 7/01/30 - FSA Insured
3,400 Lower Colorado River Authority, Texas, Improvement and Revenue 5/13 at 100.00 AAA 3,535,728
Refunding Bonds, Series 2003, 5.250%, 5/15/24 - AMBAC Insured
1,505 Lower Colorado River Authority, Texas, Contract Revenue Refunding Bonds, 5/13 at 100.00 AAA 1,572,138
Transmission Services Corporation Project, Series 2003C, 5.250%,
5/15/23 - AMBAC Insured
4,000 Tarrant County Health Facilities Development Corporation, Texas, 11/10 at 101.00 A 4,309,320
Hospital Revenue Bonds, Adventist Health System/ Sunbelt
Obligated Group, Series 2000, 6.700%, 11/15/30
12,020 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa 14,055,467
Mortgage Revenue Bonds, GNMA Collateralized Mortgage Loan - Eastview
Nursing Home, Ebony Lake Nursing Center, Ft. Stockton Nursing Center,
Nursing Center and Mission Oaks Manor, Series 2000-A1,
7.625%, 12/20/32
5,000 Tarrant Regional Water District, Texas, Water Revenue Bonds, Series 1999 3/13 at 100.00 AAA 5,411,650
Refunding and Improvement, 5.250%, 3/01/17 - FSA Insured
10,000 Board of Regents of Texas A&M University, Revenue Financing System 5/09 at 100.00 AAA 10,554,100
Bonds, Series 1999, 5.550%, 5/15/29 - MBIA Insured
25,000 Texas Turnpike Authority, Central Texas Turnpike System, First Tier No Opt. Call AAA 8,092,500
Revenue Bonds, Series 2002A, 0.000%, 8/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.4%
3,840 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1997 Series 7/07 at 101.50 AAA 3,942,221
F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.0%
9,465 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 6/07 at 101.50 AAA 9,776,493
1997-9, 5.900%, 5/01/29 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5%
4,900 City of Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100.00 N/R 4,706,101
Residential Rental Housing Revenue Bonds, Mayfair I & Mayfair II
Apartments Project, Series 1999, 7.500%, 10/01/39 (Alternative
Minimum Tax)
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.3%
Public Utility District No. 1 of Chelan County, Washington, Chelan Hydro
Consolidated System Revenue Bonds, Series 1997A:
$ 11,820 5.650%, 7/01/32 (Alternative Minimum Tax) (Optional put 7/01/09) 7/07 at 102.00 AA $12,010,657
(Mandatory put 7/01/24)
8,000 5.650%, 7/01/32 (Alternative Minimum Tax) (Optional put 7/01/09) 7/07 at 102.00 AA 8,120,400
(Mandatory put 7/01/27)
5,000 Snohomish County, Washington, Limited Tax General Obligation Bonds, 12/11 at 100.00 AAA 5,157,500
Series 2001, 5.250%, 12/01/26 - MBIA Insured
4,750 Washington Health Care Facilities Authority, Revenue Bonds, Swedish 11/08 at 101.00 Aaa 4,848,278
Health Services, Series 1998, 5.125%, 11/15/22 - AMBAC Insured
14,500 Washington Public Power Supply System, Nuclear Project No. 2, Refunding 7/08 at 102.00 Aa1 15,451,200
Revenue Bonds, Series 1998A, 5.000%, 7/01/12
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 5,676,750
9,350 5.250%, 7/01/15 7/07 at 102.00 Aa1 9,858,453
7,775 Washington Public Power Supply System, Nuclear Project No. 3, Refunding 7/08 at 102.00 Aa1 8,072,161
Revenue Bonds, Series 1998A, 5.125%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.1%
2,175 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 10/11 at 100.00 BBB 2,226,852
Carroll College Inc. Project, Series 2001, 6.125%, 10/01/16
2,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 8/13 at 100.00 A 1,942,960
Wheaton Franciscan Services, Series 2003A, 5.250%, 8/15/25
9,000 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 4/13 at 100.00 BBB+ 9,307,080
Aurora Health Care, Series 2003, 6.400%, 4/15/33
6,025 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 9/13 at 100.00 A- 6,225,512
Franciscan Sisters of Christian Health Care Ministry, Series 2003A,
6.000%, 9/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 1,444,518 Total Long-Term Investments (cost $1,386,528,255) - 152.4% 1,445,970,979
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2%
1,425 Chester County Industrial Development Authority, Pennsylvania, VMIG-1 1,425,000
Archdiocese of Philadelphia, Variable Revenue Demand Bonds, Series
2001, 1.150%, 7/01/31+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,425 Total Short-Term Investments (cost $1,425,000) 1,425,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,387,953,255) - 152.6% 1,447,395,979
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 25,916,215
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.4)% (525,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 948,312,194
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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 (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
# On December 9, 2002, UALCorporation, the holding
company of United Air Lines, Inc. filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
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.
25
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.5%
$ 3,150 Birmingham, Alabama, Waterworks and Sewer Board, Water and Sewer 1/13 at 100.00 AAA $ 3,155,513
Revenue Bonds, Series 2002B, 5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.1%
2,850 Industrial Development Authority of the County of Maricopa, Arizona, 1/07 at 102.00 AAA 3,347,781
Multifamily Housing Revenue Bonds, Place Five and the Greenery
Apartments Projects, Series 1996A, 6.625%, 1/01/27
3,285 Pima County Industrial Development Authority, Arizona, Lease Obligation 1/04 at 102.00 AAA 3,461,240
Revenue Refunding Bonds, Tucson Electric Power Company - Irvington
Project, Series 1988A, 7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.6%
California Educational Facilities Authority, Revenue Refunding Bonds,
Loyola Marymount University, Series 2001A:
3,255 0.000%, 10/01/23 - MBIA Insured No Opt. Call Aaa 1,127,402
5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call Aaa 1,903,059
7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call Aaa 2,321,128
7,710 State of California State, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AAA 8,134,513
Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax) - FSA
Insured
5,690 Department of Veterans Affairs of the State of California, Home Purchase 6/12 at 101.00 AAA 5,920,900
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured
California Department of Water Resources, Power Supply Revenue Bonds,
Series 2002A:
4,000 6.000%, 5/01/15 5/12 at 101.00 A3 4,544,160
5,500 5.375%, 5/01/21 5/12 at 101.00 A3 5,671,270
7,150 State Public Works Board of the State of California, Lease Revenue 10/04 at 102.00 A3*** 7,641,062
Bonds, Trustees of California State University, 1994 Series A, Various
California State University Projects, 6.375%, 10/01/19 (Pre-refunded
to 10/01/04)
17,500 California State Public Works Board, Lease Revenue Bonds, Department of 11/04 at 102.00 Aaa 18,867,975
Corrections, California State Prison at Monterey County - Soledad II,
Series 1994A, 6.875%, 11/01/14 (Pre-refunded to 11/01/04)
30,000 Foothill-Eastern Transportation Corridor Agency, California, Toll Road No Opt. Call AAA 12,861,600
Revenue Bonds, Series 1995A, 0.000%, 1/01/21
5,000 Los Angeles County Public Works Financing Authority, California, 10/04 at 102.00 Aa3*** 5,332,750
Revenue Bonds, Regional Park and Open Space District, Series 1994A,
6.125%, 10/01/10 (Pre-refunded to 10/01/04)
San Francisco Redevelopment Agency, California, Hotel Tax Revenue Bonds,
Series 1994:
2,390 6.750%, 7/01/15 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA 2,528,931
5,905 6.750%, 7/01/25 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA 6,248,258
960 6.750%, 7/01/25 - FSA Insured 7/04 at 102.00 AAA 1,013,626
5,605 County of San Joaquin, California, Certificates of Participation, 4/04 at 102.00 A*** 5,847,360
1994 Solid Waste System Facilities Project, 6.600%, 4/01/19
(Pre-refunded to 4/01/04)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.5%
15 Colorado Housing and Finance Authority, Single Family Program Senior 12/03 at 100.00 Aa2 15,020
Bonds, 1994 Series E, 8.125%, 12/01/24 (Alternative Minimum Tax)
(Pre-refunded to 12/01/03)
1,060 Colorado Housing and Finance Authority, Single Family Program Senior 12/05 at 105.00 Aa2 1,075,137
Bonds, 1995 Series D, 7.375%, 6/01/26 (Alternative Minimum Tax)
400 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call A 493,840
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
1,700 City and County of Denver, Colorado, Multifamily Housing Revenue Bonds, 10/07 at 102.00 AAA 1,742,670
FHA-Insured Mortgage Loan - The Boston Lofts Project, Series 1997A,
5.750%, 10/01/27 (Alternative Minimum Tax)
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5%
$ 3,170 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102.00 AAA $ 3,340,609
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 3,013,564
13,780 0.000%, 4/01/28 - MBIA Insured 4/11 at 37.21 AAA 3,325,527
15,855 0.000%, 4/01/29 - MBIA Insured 4/11 at 35.07 AAA 3,602,415
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.9%
1,700 Miami-Dade County, Florida, Beacon Tradeport Community Development 5/12 at 102.00 AA 1,797,648
District, Special Assessment Bonds, Commercial Project, Series 2002A,
5.625%, 5/01/32 - RAAI Insured
5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 5.750%, 10/06 at 102.00 AAA 5,432,100
10/01/18 (Alternative Minimum Tax) - MBIA Insured
1,100 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 1/10 at 100.00 AAA 1,145,342
Bonds, 2000 Series 11, 5.850%, 1/01/22 (Alternative Minimum Tax) -
FSA Insured
2,850 Florida Department of Transportation, Right-of-Way Acquisition and 7/05 at 101.00 AAA 3,097,836
Bridge Construction Bonds, Series 1995, 5.875%, 7/01/24
(Pre-refunded to 7/01/05) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.5%
5,500 Atlanta, Georgia, Water and Sewerage Revenue Bonds, Series 1993, 1/04 at 100.00 AAA 5,532,395
4.500%, 1/01/18 (Pre-refunded to 1/01/04) - FGIC Insured
300 Fulton County Housing Authority, Georgia, GNMA Mortgage-Backed 9/06 at 102.00 AAA 311,847
Securities Program, Single Family Mortgage Revenue Refunding Bonds,
Series 1996A, 6.200%, 9/01/27 (Alternative Minimum Tax)
3,365 Municipal Electric Authority of Georgia, Combustion Turbine Project 11/13 at 100.00 AAA 3,542,235
Revenue Bonds, Series 2003A, 5.000%, 11/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 2.1%
1,095 Idaho Housing Agency, Senior Lien Single Family Mortgage Bonds, Series 7/05 at 102.00 Aaa 1,135,592
1995F, 6.450%, 7/01/27 (Alternative Minimum Tax)
3,235 Idaho Housing Finance Agency, Housing Revenue Bonds, Park Place Project, 6/05 at 102.00 Aa2 3,329,430
1995 Series A, FHA-Insured Mortgage Loan, 6.500%, 12/01/36
(Alternative Minimum Tax)
3,160 Idaho Housing and Finance Association, GNMA Housing Revenue 3/12 at 105.00 Aaa 3,640,352
Refunding Bonds, Wedgewood Terrace Project, Series 2002A-1, 7.250%,
3/20/37
1,300 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 7/06 at 102.00 Aaa 1,404,949
1996 Series G, 6.350%, 7/01/26 (Alternative Minimum Tax)
1,620 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 1/10 at 100.00 Aa2 1,706,006
2000 Series B, 6.250%, 7/01/22 (Alternative Minimum Tax)
1,890 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 7/10 at 100.00 Aaa 1,994,309
2000 Series E, 5.950%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 19.0%
16,200 City of Chicago, Illinois, General Obligation Bonds, Series 1995A-1 1/06 at 102.00 AAA 16,334,136
Project Bonds, 5.125%, 1/01/25 - AMBAC Insured
1,000 City of Chicago, Illinois, General Obligation Bonds, Project and 7/08 at 102.00 AAA 1,050,180
Refunding Bonds, Series 1998, 5.250%, 1/01/20 - FGIC Insured
22,670 City of Chicago, Illinois, General Obligation Bonds, City Colleges No Opt. Call AAA 7,159,866
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 Education of the No Opt. Call AAA 2,097,600
City of Chicago, Illinois, Unlimited Tax General Obligation Bonds,
Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC
Insured
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing Revenue 6/09 at 102.00 Aaa 1,208,288
Bonds, Bryn Mawr/Belle Shores Project, Series 1997, 5.800%, 6/01/23
(Alternative Minimum Tax)
1,650 Chicago, Illinois, GNMA/FHA Multifamily Housing Revenue Bonds, Indiana 9/13 at 101.00 AAA 1,630,678
Manor Townhomes Project, Series 2002A, 5.100%, 3/20/44
27
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 10,900 Chicago Public Building Commission, Illinois, Building Revenue Bonds, 12/03 at 102.00 AAA $11,161,273
Chicago Board of Education, Series 1993A, 5.750%, 12/01/18
(Pre-refunded to 12/01/03) - MBIA Insured
3,860 Chicago, Illinois, Tax Increment Allocation Bonds, Read-Dunning 1/07 at 102.00 N/R 4,007,954
Redevelopment Project, Series 1996B, 7.250%, 1/01/14
3,530 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary Drainage and 1/07 at 102.00 N/R 3,713,207
Ship Canal Redevelopment Project, Series 1997A, 7.750%, 1/01/14
4,865 Cook County Community Consolidated School District 15, Palatine, Illinois, No Opt. Call Aaa 2,042,619
General Obligation Bonds, Series 2001, 0.000%, 12/01/20 - FGIC Insured
6,190 Community High School District No. 219, Niles Township, Cook County, No Opt. Call Aaa 2,601,100
Illinois, General Obligation Capital Appreciation Bonds, Series 2001,
0.000%, 12/01/20 - MBIA Insured
2,665 DuPage County Forest Preserve District, Illinois, General Obligation No Opt. Call AAA 2,971,528
Bonds, Series 2003, 5.250%, 10/01/15
2,850 City of East Saint Louis, Illinois, Mortgage Revenue Refunding Bonds, 1/04 at 102.00 AAA 2,905,661
FHA-Insured Mortgage Loan - Dawson Manor Apartments - Section 8
Assisted, Series 1994A, 6.500%, 7/01/24 - MBIA Insured
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series No Opt. Call A+ 3,313,590
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- 3,183,810
Hospital, Series 2003, 6.000%, 7/01/33
Illinois Housing Development Authority, Housing Finance Bonds, Series
2000A:
985 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,001,617
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,263,725
11,000 State of Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AAA 12,885,840
Series 2001, 6.000%, 11/01/26 - FGIC Insured
2,000 State of Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 2,195,940
Series 2002, 5.500%, 2/01/18 - FGIC Insured
9,000 State of Illinois, General Obligation Bonds, Illinois FIRST, Series No Opt. Call AAA 10,053,360
of August 2002, 5.250%, 8/01/12 - MBIA Insured
4,020 Community Unit School District No. 220 of the Counties of Lake, Cook, No Opt. Call AAA 4,394,222
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 1,452,466
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aaa 685,804
17,945 McHenry and Kane Counties Community Consolidated School District No. No Opt. Call Aaa 6,852,657
158, Illinois, General Obligation Bonds, Series 2003,
0.000%, 1/01/22 - FGIC Insured
4,505 McHenry County Community Consolidated School District No. 047, Crystal 2/09 at 100.00 Aaa 4,998,388
Lake, Illinois, General Obligation Bonds, Series 1999 Refunding, 5.750%,
2/01/19 - FSA Insured
2,910 Community High School District Number 154, McHenry County, Illinois, No Opt. Call Aaa 1,197,465
Capital Appreciation School Bonds, Series 2001, 0.000%, 1/01/21 -
FGIC Insured
4,540 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place 6/12 at 101.00 AAA 4,565,606
Expansion Project Revenue Bonds, Series 2002A, 5.000%, 12/15/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.3%
1,000 Ball State University Board of Trustees, Indiana, Ball State University 1/12 at 100.00 AAA 1,105,070
Student Fee Revenue Bonds, Series 2002K, 5.750%, 7/01/20 - FGIC
Insured
6,031 Greenfield, Indiana, GNMA Multifamily Housing Revenue Bonds, Pedcor 12/05 at 105.00 Aaa 6,148,122
Investments Project, Series 1996A, 6.200%, 12/01/28 (Alternative
Minimum Tax)
2,875 Indiana Bond Bank, State Revolving Fund Program Bonds, Series 1995A, 2/05 at 102.00 AAA 3,114,919
Guarantee Revenue Bonds, 6.750%, 2/01/17
3,500 Indiana Bond Bank, Special Program Bonds, Series 2000A, City of East 2/10 at 101.00 AAA 3,946,355
Chicago Facilities Building Corporation Project, 6.125%, 2/01/25 -
AMBAC Insured
5,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 12/10 at 100.00 AA 5,234,250
2000, 5.375%, 12/01/25
1,000 Shelbyville Elementary School Building Corporation, Shelby County, 7/11 at 100.00 AAA 1,050,170
Indiana, First Mortgage Bonds, Series 2001, 5.000%, 7/05/18 - FSA
Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.4%
$ 10,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA $10,131,600
Series 1998 A, 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 BBB 5,550,440
7,300 5.600%, 6/01/35 6/11 at 101.00 BBB 5,641,586
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
700 Johnson County, Kansas, Single Family Mortgage Revenue Refunding 5/04 at 103.00 Aa2 719,110
Bonds, Series 1994, 7.100%, 5/01/12
370 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized Single No Opt. Call Aaa 372,734
Family Mortgage Revenue Refunding Bonds, Series 1994A-1, 7.900%,
5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.1%
1,400 Bossier Public Trust Financing Authority, Louisiana, Single Family 8/05 at 102.00 AAA 1,403,780
Mortgage Revenue Refunding Bonds, Series 1995B, 6.125%, 8/01/28
6,030 East Baton Rouge Parish Mortgage Finance Authority, Louisiana, 10/05 at 102.00 Aaa 6,106,521
GNMA/FNMA Mortgage-Backed Securities Program, Single Family
Mortgage Revenue Bonds, 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 3,419,989
Special Sales Tax Revenue Bonds, Series 2002 Refunding,
5.250%, 12/01/21 - AMBAC Insured
4,370 New Orleans Home Mortgage Authority, Louisiana, GNMA/FNMA Single 6/05 at 102.00 Aaa 4,492,884
Family Mortgage Revenue Bonds, Series 1995A, 6.300%, 6/01/28
(Alternative Minimum Tax)
3,665 Orleans Levee District, Louisiana, Levee District General Obligation 12/05 at 103.00 AAA 4,091,826
Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.0%
205 Maine Housing Authority, Mortgage Purchase Bonds, 1995 Series B-2, 11/05 at 102.00 AA+ 212,981
6.300%, 11/15/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.4%
13,250 Commonwealth of Massachusetts, General Obligation Bonds, Consolidated 1/13 at 100.00 AAA 14,024,595
Loan, Series 2002E, 5.250%, 1/01/21 - FSA Insured
3,130 Massachusetts Development Finance Agency, Pioneer Valley Resource No Opt. Call N/R 3,343,560
Recovery Revenue Bonds, Eco/Springfield, LLC Project, Series 2000A,
8.375%, 7/01/14 (Alternative Minimum Tax)
2,750 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 5/12 at 100.00 AAA 2,760,368
New England Medical Center Hospitals, Series 2002H, 5.000%, 5/15/25
- FGIC Insured
9,175 Massachusetts Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA 9,743,116
Bonds, Berkshire Health System Issue, Series 2001E, 5.700%, 10/01/25 -
RAAI Insured
3,605 Massachusetts Water Resources Authority, General Revenue Bonds, 1993 12/04 at 102.00 AAA 3,793,217
Series C, 5.250%, 12/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.0%
Grand Rapids and Kent County Joint Building Authority, Michigan,
Limited Tax General Obligation Bonds, Devos Place Project,
Series 2001:
7,660 0.000%, 12/01/21 No Opt. Call AAA 3,086,674
7,955 0.000%, 12/01/22 No Opt. Call AAA 3,003,331
8,260 0.000%, 12/01/23 No Opt. Call AAA 2,922,966
8,575 0.000%, 12/01/24 No Opt. Call AAA 2,834,552
8,900 0.000%, 12/01/25 No Opt. Call AAA 2,767,544
2,000 Michigan State Hospital Finance Authority, Revenue and Refunding Bonds, 8/04 at 101.00 Ba3 1,685,180
Detroit Medical Center Obligated Group, Series 1993A, 6.375%, 8/15/09
8,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 12/03 at 102.00 AAA 8,187,120
Bonds, Oakwood Hospital Obligated Group, Series 1993A, 5.625%,
11/01/18 (Pre-refunded to 12/15/03) - FGIC Insured
29
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.4%
$ 3,085 Bemidji Health Care Facilities, Minnesota, First Mortgage Revenue Bonds, 9/12 at 100.00 AA $ 3,127,696
North Country Health Services, Series 2002, 5.000%, 9/01/24 -
RAAI Insured
6,995 Champlin, Minnesota, GNMA Guaranteed Senior Housing Revenue Bonds, 6/12 at 105.00 Aaa 7,028,086
Champlin Shores Senior Living Center, Series 2002A, 3.000%, 12/20/43
4,060 Minneapolis-St. Paul Housing and Redevelopment Authority, Minnesota, 12/03 at 101.00 BBB+ 4,113,673
Health Care Facility Revenue Bonds, Group Health Plan, Inc. Project,
Series 1992, 6.900%, 10/15/22 (Pre-refunded to 12/01/03)
Minneapolis/St. Paul Housing and Redevelopment Authority, Minnesota,
Revenue Bonds, HealthPartners Inc. Project, Series 2003:
1,000 6.000%, 12/01/18 12/13 at 100.00 BBB+ 1,042,570
1,050 5.875%, 12/01/29 12/13 at 100.00 BBB+ 1,050,725
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA 3,078,840
Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/26 -
FGIC Insured
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA 2,458,392
Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25 - FGIC Insured
1,965 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, Series 7/09 at 100.00 AA+ 2,035,465
2000C, 6.100%, 7/01/30 (Alternative Minimum Tax)
2,525 Minnesota Housing Finance Agency, Rental Housing Bonds, Series 1995D, 2/05 at 102.00 AAA 2,601,634
5.950%, 2/01/18 - MBIA Insured
2,225 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, Series 1/06 at 102.00 AA+ 2,303,743
1996G, 6.250%, 7/01/26 (Alternative Minimum Tax)
2,180 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1998 1/11 at 101.00 AA+ 2,308,097
Series H-2, Remarketed, 6.050%, 7/01/31 (Alternative Minimum Tax)
2,000 Southern Minnesota Municipal Power Agency, Power Supply System 1/04 at 101.00 Aaa 2,048,340
Revenue Bonds, Series 1992B, 5.750%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 7.7%
2,000 Missouri-Illinois Metropolitan District Bi-State Development Agency, 10/13 at 100.00 AAA 2,018,300
Metrolink Cross County Extension Project, Mass Transit Sales Tax
Appropriation Bonds, Series 2002B, 5.000%, 10/01/32 - FSA Insured
9,000 Kansas City, Missouri, General Improvement Airport Revenue Bonds, Series 9/12 at 100.00 AAA 9,694,350
2003B, 5.250%, 9/01/17 - FGIC Insured
6,445 State of Missouri, General Obligation Bonds, Series 2002B, Water 10/12 at 100.00 AAA 6,852,066
Pollution Control Refunding, 5.000%, 10/01/18
4,095 State of Missouri, General Obligation Bonds, Series 2002A, Fourth State 10/12 at 100.00 AAA 4,353,640
Building Refunding, 5.000%, 10/01/18
Health and Educational Facilities Authority of the State of
Missouri, Revenue Bonds, SSM Health Care Project, Series 2001A:
2,500 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 2,618,575
2,000 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 2,051,440
2,500 Health and Educational Facilities Authority of the State of Missouri, 5/13 at 100.00 AA 2,562,500
Health Facilities Revenue Bonds, BJC Health System, Series 2003,
5.125%, 5/15/24
5,500 Industrial Development Authority of the City of St. Louis, Missouri, 12/03 at 101.00 N/R 5,537,565
Revenue Bonds, Kiel Center Multipupose 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:
2,200 5.125%, 7/01/22 - MBIA Insured 7/11 at 100.00 AAA 2,252,206
2,500 5.000%, 7/01/26 - MBIA Insured 7/11 at 100.00 AAA 2,518,025
7,000 City of Saint Louis, Missouri, Airport Revenue Bonds, Series 2002A, 7/12 at 100.00 AAA 7,053,410
Capital Improvement Program, 5.000%, 7/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2%
1,470 Municipal Energy Agency of Nebraska, Power Supply System Revenue 4/13 at 100.00 AAA 1,541,721
Bonds, Series 2003A, 5.250%, 4/01/23 (WI, settling 11/05/03) - FSA
Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.8%
$ 5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway Improvement 7/13 at 100.00 AAA $ 5,890,154
Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured
4,000 Clark County, Nevada, Industrial Development Revenue Bonds, Nevada 12/03 at 101.00 AAA 4,128,600
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, Series 6/12 at 100.00 AAA 11,352,417
2002C, 5.500%, 6/15/18 - MBIA Insured
7,315 Washoe County School District, Nevada, General Obligation Bonds, Series No Opt. Call AAA 8,311,815
2002B Refunding, 5.500%, 6/01/17 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.8%
5,615 Essex County Improvement Authority, New Jersey, Lease Revenue Bonds, 12/13 at 100.00 Aaa 5,937,301
Series 2003, 5.125%, 12/15/20 - FSA Insured
4,500 New Jersey Economic Development Authority, Insured Revenue Bonds, 5/05 at 102.00 AAA 4,918,905
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, Multifamily Housing 11/07 at 101.50 AAA 4,555,713
Revenue Bonds, Series 1997A, 5.650%, 5/01/40 (Alternative Minimum
Tax) - AMBAC Insured
3,400 New Jersey Transportation Trust Fund Authority, Transportation System 6/13 at 100.00 AA- 3,680,942
Bonds, Series 2003C, 5.500%, 6/15/22
3,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C, No Opt. Call A 3,550,170
6.500%, 1/01/09
3,165 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 BBB 2,606,631
Settlement Asset-Backed Bonds, Series 2002, 6.125%, 6/01/42
1,000 Toms River Board of Education, General Obligation Bonds, Series 1997, 7/07 at 100.00 AAA 1,137,140
5.750%, 7/15/21 (Pre-refunded to 7/15/07) - FGIC Insured
3,620 Union County Utilities Authority, New Jersey, Solid Waste Facility 6/08 at 101.00 AAA 3,679,006
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 - 0.4%
2,520 New Mexico Mortgage Finance Authority, Single Family Mortgage Program 7/05 at 102.00 AAA 2,610,166
Bonds, Series 1995E-2, 6.300%, 7/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 18.4%
2,200 Long Island Power Authority, New York, Electric System General Revenue 6/08 at 101.00 AAA 2,270,444
Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured
17,365 City of New York, New York, General Obligation Bonds, Fiscal Series 1996F, No Opt. Call A 19,252,228
7.000%, 2/01/06
11,130 City of New York, New York, General Obligation Bonds, Fiscal Series 3/06 at 101.50 A 12,075,494
1996I, 5.875%, 3/15/18
City of New York, New York, General Obligation Bonds,
Fiscal 1997 Series I:
8,620 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101.00 Aaa 9,965,668
3,400 6.250%, 4/15/27 4/07 at 101.00 A 3,806,844
City of New York, New York, General Obligation Bonds, Fiscal Series
1996J-1:
1,415 5.875%, 2/15/19 (Pre-refunded to 2/15/06) 2/06 at 101.50 A*** 1,574,937
7,585 5.875%, 5/15/19 2/06 at 101.50 A 8,211,218
3,820 5.500%, 2/15/26 2/06 at 101.50 A 3,914,048
1,370 New York City Municipal Water Finance Authority, New York, Water and 6/07 at 101.00 AAA 1,462,982
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, Water and 6/05 at 101.00 AAA 3,418,853
Sewer System Revenue Bonds, Fiscal Series 1996A, 5.875%, 6/15/25
(Pre-refunded to 6/15/05) - MBIA Insured
4,000 Trust for Cultural Resources of the City of New York, Revenue Bonds, 4/07 at 101.00 AAA 4,348,920
Series 1997A, American Museum of Natural History, 5.650%, 4/01/27 -
MBIA Insured
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal 2004 Series B:
6,875 5.000%, 8/01/23 (WI, settling 11/03/03) 8/13 at 100.00 AA+ 6,999,300
7,260 5.000%, 8/01/24 (WI, settling 11/03/03) 8/13 at 100.00 AA+ 7,340,441
31
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 2,500 Dormitory Authority of the State of New York, City University System 7/06 at 102.00 AA-*** $ 2,838,500
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, Revenue Bonds,
Marymount Manhattan College, Series 1999:
1,975 6.375%, 7/01/16 - RAAI Insured 7/09 at 101.00 AA 2,224,778
2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 AA 2,331,826
7,635 New York State Medical Care Facilities Finance Agency, Mercy Medical 5/05 at 102.00 AA-*** 8,315,813
Center Project Revenue Bonds, 1995 Series A, 5.875%, 11/01/15
(Pre-refunded to 5/01/05)
6,250 Port Authority of New York and New Jersey, Special Project Bonds, JFK No Opt. Call AAA 7,113,375
International Air Terminal LLC Project, Series 6, 6.250%, 12/01/15
(Alternative Minimum Tax) - MBIA Insured
Tobacco Settlement Financing Corporation of New York State, Asset
Backed Bonds, Series 2003-A1:
3,400 5.500%, 6/01/16 6/10 at 100.00 AA- 3,606,652
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,111,960
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.0%
2,550 County of Cumberland, North Carolina, Hospital Facility Revenue Bonds, 10/09 at 101.00 A- 2,612,067
Cumberland County Hospital System Inc., Series 1999, Cape Fear Valley
Health System, 5.250%, 10/01/19
2,480 Durham Urban Redevelopment Authority, North Carolina, FHA-Insured 8/07 at 105.00 AAA 2,617,615
Mortgage Loan Revenue Bonds, Durham Hosiery Mill Project, Series
1987, 7.500%, 8/01/29 (Alternative Minimum Tax)
1,210 North Carolina Housing Finance Agency, Single Family Revenue Bonds, 3/06 at 102.00 AA 1,254,806
Series 1996JJ, 6.450%, 9/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.7%
3,725 North Dakota Housing Finance Agency, Home Mortgage Finance Program 7/10 at 100.00 Aa3 3,876,384
Bonds, Series 2000C, 6.150%, 7/01/31 (Alternative Minimum Tax)
520 North Dakota Housing Finance Agency, Home Mortgage Finance Program 1/07 at 102.00 Aa2 540,467
Bonds, Series 1996B, 6.400%, 1/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.3%
Frankling County, Ohio, Hospital Revenue Bonds, Ohio Health Corporation,
Series 2003C:
2,330 5.250%, 5/15/17 (WI, settling 11/05/03) - MBIA Insured 5/13 at 100.00 AAA 2,496,945
4,105 5.250%, 5/15/18 (WI, settling 11/05/03) - MBIA Insured 5/13 at 100.00 AAA 4,369,403
2,000 Ohio Housing Finance Agency, Multifamily Housing Mortgage Revenue 1/08 at 102.00 Aa2 2,029,620
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 Development 2/04 at 101.00 Baa1 5,106,500
Revenue Refunding Bonds, 1992 Series A, The Dayton Power and Light
Company Project, 6.400%, 8/15/27
6,650 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, 9/08 at 102.00 N/R 6,128,175
Bay Shore Power Project, Series 1998A, 5.875%, 9/01/20 (Alternative
Minimum Tax)
6,800 Ohio Water Development Authority, Solid Waste Disposal Revenue Bonds, 9/09 at 102.00 N/R 6,768,516
Bay Shore Power Project, Convertible Series 1998B, 6.625%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.8%
5,000 Oklahoma Student Loan Authority, Student Loan Revenue Bonds, Senior 6/11 at 102.00 AAA 5,147,150
Lien Series 2001-A1, 5.625%, 6/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.2%
705 Oregon, General Obligation Elderly and Disabled Housing Bonds, Series 2/04 at 101.00 AA- 714,750
1992B, 6.375%, 8/01/24
2,540 Oregon, General Obligation Veterans Welfare Bonds, Series 75, 10/05 at 102.00 Aa3 2,622,372
6.000%, 4/01/27
2,335 State of Oregon, Housing and Community Services Department, Mortgage 1/10 at 100.00 Aa2 2,443,951
Revenue Bonds, Single Family Mortgage Program, Series 2000F,
6.250%, 7/01/28 (Alternative Minimum Tax)
1,715 Portland, Oregon, Limited Tax Improvement Bonds, 1996 Series A, 5.550%, 6/06 at 100.00 Aa2 1,849,507
6/01/16
32
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 $ 2,542,560
Collateralized Pollution Control Revenue Refunding Bonds, Cleveland
Electric Illuminating Company - Beaver Valley Project, Series 1995A,
7.750%, 7/15/25 - ACA Insured
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call AAA 1,169,984
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, Series 1995X, 7/05 at 100.00 A- 1,392,751
5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.2%
1,055 Rhode Island Health and Educational Building Corporation, Revenue Bonds, 3/12 at 101.00 AA 1,078,516
Salve Regina University, Series 2002 Refunding, 5.000%, 3/15/19 - RAAI
Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.9%
15,445 Greenville County School District, South Carolina, Installment Purchase 12/12 at 101.00 AA- 17,245,269
Revenue Bonds, Series 2002, 5.875%, 12/01/17
2,500 Greenville Hospital System Board of Trustees, South Carolina, Hospital 5/13 at 100.00 AAA 2,512,200
Facilities Revenue Bonds, Series 2003A Refunding, 5.000%, 5/01/25 -
AMBAC Insured
2,135 Lexington County School District 4, South Carolina, Certificates of 7/04 at 102.00 Baa2*** 2,262,054
Participation, Series 1994, 7.000%, 7/01/12 (Pre-refunded to 7/01/04)
7,600 Piedmont Municipal Power Agency, Electric Revenue Refunding Bonds, 1/04 at 100.00 AAA 6,733,980
Series 1991, 4.000%, 1/01/23 - MBIA Insured
South Carolina Jobs-Economic Development Authority, Hospital Revenue
Bonds, Palmetto Health Alliance, 2003C:
1,500 6.875%, 8/01/27 8/13 at 100.00 BBB 1,603,635
5,000 6.375%, 8/01/34 8/13 at 100.00 BBB 5,137,050
15,000 Tobacco Settlement Revenue Management Authority, Tobacco Settlement 5/11 at 101.00 BBB 13,591,950
Asset Backed Bonds, Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.6%
5,775 South Dakota Housing Development Authority, Homeownership Mortgage 5/07 at 102.00 AAA 5,896,333
Bonds, Series 1997F, 5.800%, 5/01/28 (Alternative Minimum Tax)
9,860 South Dakota Building Authority, Revenue Bonds, Series 1992, 6.700%, 9/04 at 100.00 AAA 10,144,757
9/01/17 (Pre-refunded to 9/01/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3%
1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue 3/10 at 101.00 AAA 1,636,170
Bonds, Series 1999D, 6.000%, 3/01/19 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.4%
2,290 City of Austin, Texas, Town Lake Park Community Events Center Venue 11/09 at 100.00 AAA 2,527,954
Project Bonds, Series 1999, 6.000%, 11/15/25 - FGIC Insured
5,000 Brazos River Authority, Texas, Pollution Control Revenue Bonds, Texas 5/08 at 102.00 AAA 5,721,300
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, Texas 4/08 at 102.00 AAA 5,713,250
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 Refunding Bonds, 4/13 at 101.00 BBB 5,686,664
TXU Electric Company Project, Series 1999C, 7.700%, 4/01/32
(Alternative Minimum Tax)
10,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 A- 10,688,400
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)
3,345 City of Fort Worth, Texas, Water and Sewer Revenue Bonds, Series 2001, 2/12 at 100.00 AA 3,664,481
5.625%, 2/15/19
1,635 Garland Independent School District, Dallas County, Texas, School 2/07 at 100.00 AAA 1,620,988
Building Unlimited Tax Bonds, Series 1997A, 4.000%, 2/15/15
33
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 Gulf Coast Industrial Development Authority, Texas, Waste Disposal 6/08 at 102.00 BBB $ 4,634,150
Revenue Bonds, Valero Refining and Marketing Company Project, Series
1997, 5.600%, 12/01/31 (Alternative Minimum Tax)
2,800 Harris County-Houston Sports Authority, Texas, Senior Lien Revenue 11/11 at 100.00 AAA 2,876,580
Bonds, Series 2001G, 5.250%, 11/15/30 - MBIA Insured
595 Hidalgo County Housing Finance Corporation, Texas, GNMA/FNMA 4/04 at 102.00 Aaa 604,556
Collateralized Single Family Mortgage Revenue Bonds, Series 1994A,
7.000%, 10/01/27 (Alternative Minimum Tax)
Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds,
Convention and Entertainment Project, Series 2001B:
25,850 0.000%, 9/01/25 - AMBAC Insured No Opt. Call AAA 7,756,810
26,610 0.000%, 9/01/26 - AMBAC Insured No Opt. Call AAA 7,506,415
1,000 Humble Independent School District, Harris County, Texas, Unlimited Tax 2/10 at 100.00 AAA 891,000
Schoolhouse Bonds, Series 1997-II, 3.500%, 2/15/18
6,185 Keller Independent School District, Tarrant County, Texas, Unlimited Tax 8/11 at 100.00 AAA 6,357,562
General Obligation Refunding Bonds, Series 2001, 5.250%, 8/15/26
5,080 Lake Dallas Independent School District, Denton County, Texas, General 8/12 at 100.00 AAA 5,088,585
Obligation Bonds, Series 2002, 5.000%, 8/15/37
1,760 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, Series 2001, 3/09 at 100.00 AAA 1,978,909
5.750%, 3/15/16 - FGIC Insured
2,000 Pearland Independent School District, Brazoria County, Texas, Unlimited 2/11 at 100.00 AAA 2,078,840
Tax Schoolhouse Bonds, Series 2001A, 5.250%, 2/15/22
3,935 Spring Branch Independent School District, Harris County, Texas, Limited 2/11 at 100.00 AAA 3,983,164
Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26
7,490 State of Texas, General Obligation Bonds, Veterans Housing Assistance 12/03 at 102.00 Aa1 7,651,634
Program Fund, Series 1993, 6.800%, 12/01/23 (Alternative Minimum Tax)
(Pre-refunded to 12/01/03)
3,900 State of Texas, General Obligation Bonds, Veterans Housing Assistance 12/11 at 101.00 Aa1 3,915,795
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 2,080,514
6,945 0.000%, 2/15/27 2/11 at 39.75 AAA 1,849,106
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
890 Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 7/04 at 102.00 AAA 899,639
1994B, 6.450%, 7/01/14
550 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1997 Series 7/07 at 101.50 AAA 573,908
E2, 5.875%, 1/01/19 (Alternative Minimum Tax)
1,015 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1997 Series 1/09 at 101.50 AAA 1,063,994
C, 5.600%, 7/01/18 (Alternative Minimum Tax)
3,000 Weber County Municipal Building Authority, Utah, Lease Revenue Bonds, 12/04 at 102.00 Aaa 3,275,550
Series 1994, 7.500%, 12/15/19 (Pre-refunded to 12/15/04) - RAAI
Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.9%
5,635 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 11/03 at 101.00 A+ 5,771,931
1992-4, 6.400%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.7%
15,000 Public Utility District No. 1 of Chelan County, Washington, Chelan Hydro 7/12 at 100.00 AAA 15,338,700
Consolidated System Revenue Bonds, Series 2002A, 5.450%, 7/01/37
(Alternative Minimum Tax) - AMBAC Insured
7,500 Energy Northwest, Washington, Columbia Generating Station Electric 7/12 at 100.00 AAA 8,380,050
Refunding Revenue Bonds, Series 2002C, 5.750%, 7/01/17 - MBIA
Insured
5,000 Energy Northwest, Washington, Nuclear Project No. 1, Electric Revenue 7/13 at 100.00 Aa1 5,518,050
Bonds, Series 2003A Refunding, 5.500%, 7/01/16
7,635 Public Hospital District No. 2, King County, Washington, Limited Tax 6/11 at 101.00 AAA 7,663,784
General Obligation Bonds, Evergreen Healthcare, Series 2001A, 5.000%,
12/01/30 - AMBAC Insured
10,080 King County School District No. 401, Highline, Washington, General 6/12 at 100.00 AAA 11,118,946
Obligation Bonds, Series 2002, 5.500%, 12/01/16 - FGIC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 5.250%, 9/12 at 100.00 AAA $ 7,277,311
9/01/22 - FGIC Insured
4,905 State of Washington, Various Purpose General Obligation Bonds, Series 1/09 at 100.00 AA+ 5,056,761
1999B, 5.000%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.1%
7,000 Harrison County Commission, West Virginia, Solid Waste Disposal 11/03 at 102.00 AAA 7,169,400
Revenue Bonds, Potomac Edison Company - Harrison Station Project,
Series 1993B, 6.250%, 5/01/23 (Alternative Minimum Tax) - AMBAC
Insured
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, Series 10/11 at 100.00 BBB 4,962,000
2003L, Appalachian Power Company Project, 5.500%, 10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue Bonds, West 4/09 at 101.00 AAA 1,027,940
Penn Power Company Pleasants Station Project, Series 1999E, 5.500%,
4/01/29 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.6%
3,215 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 2/07 at 102.00 AAA 3,518,326
Marshfield Clinic Project, Series 1997, 5.625%, 2/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 1,088,981 Total Long-Term Investments (cost $912,721,306) - 153.8% 953,243,175
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.6%
5,000 Alachua County Health Facilities Authority, Florida, Revenue Bonds, VMIG-1 5,000,000
Continuing Care Retirement Community, Oak Hammock Project, Variable
Rate Demand Obligations, Series 2002A, 1.150%, 10/01/32+
5,000 California Health Facilities Financing Authority, Sutter/CHS Insured A-1+ 5,000,000
Revenue, Variable Rate Demand Bonds, Series 1996B, 1.150%, 7/01/12
- AMBAC Insured+
3,000 The City of New York, New York, General Obligation Adjustable Rate A-1+ 3,000,000
Bonds, Fiscal Series 1994B, Subseries B-4, 1.150%, 8/15/23 - MBIA
Insured+
3,000 New York Municipal Water Finance Authority, New York, Water and Sewer A-1+ 3,000,000
System, Variable Rate Demand Revenue Bonds, Fiscal Series 1994C,
1.150%, 6/15/23 - FGIC Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 16,000 Total Short-Term Investments (cost $16,000,000) 16,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $928,721,306) - 156.4% 969,243,175
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.4)% (2,327,579)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.0)% (347,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 619,915,596
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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 (not covered by the report of independent
auditors): 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.
35
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.8%
$ 1,970 Alabama Higher Education Loan Corporation, Student Loan Revenue Bonds, No Opt. Call AAA $ 2,035,739
Series 1994D Refunding, 5.850%, 9/01/04 (Alternative Minimum Tax) -
FSA Insured
2,395 Alabama Housing Finance Authority, Multifamily Housing Revenue Bonds, 2/11 at 102.00 AAA 2,391,767
South Bay Apartments Project, Series 2000K, 5.950%, 2/01/33
(Alternative Minimum Tax)
11,745 Alabama Special Care Facilities Financing Authority of Birmingham, 11/05 at 101.00 Aaa 12,187,434
Hospital Revenue Bonds, Daughter's of Charity National Health System -
Providence Hospital and St. Vincent's Hospital, Series 1995, 5.000%,
11/01/25
5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, 12/11 at 101.00 A1 5,059,257
Series 2001, 5.750%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.6%
3,065 Alaska Municipal Bond Bank Authority, General Obligation Bonds, Series 12/13 at 100.00 AAA 3,170,375
2003E, 5.250%, 12/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.9%
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, Multipurpose 7/13 at 100.00 Aaa 5,047,400
Stadium Facility Project, Series 2003A, 5.000%, 7/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1%
145 Arkansas Development Finance Authority, Single Family Mortgage Revenue 2/04 at 101.00 AA 146,820
Bonds, FHA-Insured or VA Guaranteed Mortgage Loans, Refunding Series
1991A, 8.000%, 8/15/11
153 Jacksonville Residential Housing Facilities Board, Arkansas, FNMA-Backed 1/04 at 103.00 Aaa 157,171
Single Family Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 1/01/11
216 Lonoke County Residential Housing Facilities Board, Arkansas, Single 4/05 at 103.00 Aaa 223,945
Family Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%,
4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 5.7%
10,000 California Health Facilities Financing Authority, Revenue Bonds, 3/13 at 100.00 A 9,173,400
Adventist Health System/West, Series 2003A, 5.000%, 3/01/33
10,000 State of California, General Obligation Bonds, Series 2003, 5.250%, 8/13 at 100.00 A3 10,140,200
2/01/22
4,780 Foothill-Eastern Transportation Corridor Agency, California, Toll Road No Opt. Call AAA 3,140,412
Revenue Bonds, Series 1995A, 0.000%, 1/01/14
1,000 Golden State Tobacco Securitization Corporation, California, Tobacco 6/13 at 100.00 BBB 912,340
Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39
1,715 Merced County Housing Authority, California, FNMA Multifamily Housing 1/04 at 102.00 Aaa 1,752,010
Revenue Refunding Bonds, Belmont Park Apartments Project, Series
1993A, 5.875%, 1/01/19
5,000 Airports Commission of the City and County of San Francisco, California, 5/04 at 101.00 AAA 5,173,850
San Francisco International Airport, Second Series Revenue Bonds, Issue
8A, 6.300%, 5/01/25 (Alternative Minimum Tax) - FGIC Insured
1,945 South Gate Public Financing Authority, California, Water Revenue No Opt. Call AAA 2,290,160
Refunding Bonds, Series 1996A, 6.000%, 10/01/12 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.5%
1,605 Colorado Housing and Finance Authority, Single Family Program Senior 10/09 at 105.00 Aa2 1,637,935
Bonds, 1999 Series C-3, 6.750%, 10/01/21
3,040 City and County of Denver, Colorado, Airport System Revenue Bonds, No Opt. Call A 3,753,184
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 10,000 Denver Convention Center Hotel Authority, Colorado, Convention Center 12/13 at 100.00 AAA $10,027,100
Hotel Senior Revenue Bonds, Series 2003A, 5.000%, 12/01/33 -
XLCA Insured
4,345 El Paso County School District No. 20, Academy, Colorado, General 12/12 at 100.00 Aaa 4,713,282
Obligation Bonds, Series 2002, 5.250%, 12/15/17 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6%
3,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102.00 AAA 3,161,460
Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.6%
6,000 District of Columbia, Washington D.C. General Obligation Bonds, Series No Opt. Call AAA 6,811,620
1993B2, 5.500%, 6/01/10 - FSA Insured
4,250 District of Columbia, Hospital Revenue Refunding Bonds, Medlantic 8/06 at 102.00 AAA 4,744,955
Healthcare Group, Inc. Issue, Series 1993A, 5.750%, 8/15/14 -
MBIA Insured
District of Columbia, Washington D.C. General Obligation Bonds, Series
1993E:
4,485 6.000%, 6/01/09 - CAPMAC Insured 12/03 at 102.00 AAA 4,649,061
5 6.000%, 6/01/09 - CAPMAC Insured 12/03 at 102.00 AAA 5,120
District of Columbia, Washington, D.C., General Obligation Refunding
Bonds, Series 1993A:
1,585 6.000%, 6/01/07 - MBIA Insured No Opt. Call AAA 1,764,470
7,215 6.000%, 6/01/07 - MBIA Insured No Opt. Call AAA 8,160,165
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 2,648,420
15,235 0.000%, 4/01/30 - MBIA Insured 4/11 at 32.93 AAA 3,245,360
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 6.3%
5,000 Broward County Board of Education, Florida, Certificates of 7/13 at 100.00 AAA 5,057,000
Participation, Series 2003, 5.000%, 7/01/28 - MBIA Insured
5,000 Hillsborough County Aviation Authority, Florida, Tampa International 10/13 at 100.00 AAA 5,201,700
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, 2001 Series A, 10/05 at 100.00 Aa3 9,113,310
5.200%, 10/01/20
5,000 Martin County Industrial Development Authority, Florida, Industrial 12/04 at 102.00 BBB- 5,223,350
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, Multifamily 1/11 at 102.00 AAA 1,419,399
Revenue Bonds, Sunset Bay Apartments Project, Series 2000-5A,
5.850%, 7/01/20 (Alternative Minimum Tax) - FSA Insured
9,500 Sunrise, Florida, Utility System Revenue Refunding Bonds, Series 1998, 10/18 at 100.00 AAA 9,708,525
5.000%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
3,400 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series No Opt. Call AAA 3,782,568
1999A, 5.500%, 11/01/22 - FGIC Insured
2,880 Municipal Electric Authority of Georgia, General Power Revenue Bonds, No Opt. Call A+ 3,674,707
1992B Series, 8.250%, 1/01/11
5,500 Municipal Electric Authority of Georgia, General Power Revenue Bonds, No Opt. Call AAA 6,317,850
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 1,755,396
3,720 5.000%, 10/01/13 No Opt. Call Aa2 4,076,190
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.6%
4,000 Board of Education of the City of Chicago, General Obligation Lease No Opt. Call AAA 4,750,240
Certificates, 1992 Series A, 6.250%, 1/01/15 - MBIA Insured
5,550 City of Chicago, Illinois, Midway Airport Revenue Bonds, Series 2001A, 1/11 at 101.00 AAA 5,579,027
5.125%, 1/01/26 (Alternative Minimum Tax) - FSA Insured
37
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 5,000 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 5.250%, 1/01/28 7/08 at 102.00 AAA $ 5,109,000
- FGIC Insured
Cook County School District 99, Cicero, General Obligation School
Bonds,Series 1997:
1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call Aaa 2,013,982
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call Aaa 2,369,969
6,185 Illinois Development Finance Authority, Revenue Bonds, Greek American 4/11 at 105.00 Aaa 7,195,505
Nursing Project, Series 2000A, 7.600%, 4/20/40
590 Illinois Development Finance Authority, Child Care Facility Revenue 3/04 at 101.00 N/R 597,056
Bonds, Series 1992, Illinois Facilities Fund Project, 7.400%, 9/01/04
870 Illinois Educational Facilities Authority, Revenue Bonds, Chicago 1/04 at 100.00 AAA 941,175
College of Osteopathic Medicine, Series A, 8.750%, 7/01/05
Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1993C,
Lutheran General Health System:
5,705 7.000%, 4/01/08 No Opt. Call A+ 6,482,820
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,977,368
8,190 Illinois Housing Development Authority, Multifamily Program Bonds, 1994 9/04 at 102.00 A+ 8,433,980
Series 5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly Housing 11/03 at 101.00 A 3,447,305
Revenue Bonds, Skyline Towers Apartments Project, Series 1992B,
6.875%, 11/01/17
9,795 Community Unit School District No. 220 of the Counties of Lake, Cook, No Opt. Call AAA 10,753,147
Kane and McHenry, Illinois, General Obligation Bonds, Series 2002,
5.250%, 12/01/19 - FSA Insured
Metropolitan Pier and Exposition Authority, Illinois, McCormick
Place Expansion Project Revenue Bonds, Series 2002A:
9,500 0.000%, 6/15/24 - MBIA Insured 6/22 at 101.00 AAA 4,600,945
4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,565,606
34,440 0.000%, 6/15/40 - MBIA Insured No Opt. Call AAA 4,437,938
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and No Opt. Call AAA 4,002,637
Will Counties, Illinois, General Obligation Bonds, Series 1990A, 7.200%,
11/01/20 - AMBAC Insured
2,912 Wood River Township, Madison County, Illinois, General Obligation Bonds, 2/04 at 102.00 N/R 2,601,529
Series 1993, 6.625%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.2%
22,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, 8/10 at 101.50 AAA 23,098,020
Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 -
MBIA Insured
3,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds, No Opt. Call AAA 3,749,340
Series 1993, Columbus Regional Hospital Refunding, 7.000%, 8/15/15 -
FSA Insured
3,500 Indiana Educational Facilities Authority, Educational Facilities Revenue 2/11 at 100.00 AAA 3,682,140
Bonds, Series 2001, Butler University Project, 5.500%, 2/01/26 - MBIA
Insured
Indiana Transportation Finance Authority, Highway Revenue Bonds, Series
2003A:
4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,068,400
6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,065,760
2,100 Indianapolis, Indiana, Economic Development Revenue Bonds, Meadows 1/04 at 103.00 Caa3 1,134,000
Section 8 Project, Series 1993A, 6.000%, 7/01/23 (Alternative Minimum
Tax)#
1,375 Kokomo Hospital Authority, Indiana, Hospital Revenue Refunding Bonds, 2/04 at 102.00 N/R*** 1,457,486
St. Joseph Hospital and Health Center, Series 1993, 6.250%, 8/15/05
5,000 M.S.D. of Warren Township, Vision 2005 School Building Corporation, 1/11 at 100.00 AAA 5,459,600
Marion County, Indiana, First Mortgage Bonds, Series 2000, 5.500%,
7/15/20 - FGIC Insured
3,615 Mooresville Consolidated School Building Corporation, Morgan County, 1/04 at 101.00 N/R*** 3,689,288
Indiana, First Mortgage Bonds, Series 1994A, 6.200%, 7/15/15
(Pre-refunded to 1/15/04)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.0%
125 Davenport, Iowa, Home Ownership Mortgage Revenue Refunding Bonds, 9/04 at 102.00 Aa2 127,296
Series 1994, 7.900%, 3/01/10
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.6%
$ 530 Johnson County, Kansas, Single Family Mortgage Revenue Refunding 5/04 at 103.00 Aa2 $ 544,469
Bonds, Series 1994, 7.100%, 5/01/12
2,000 City of Olathe, Kansas, Health Facilities Revenue Bonds, Olathe Medical 9/10 at 100.00 AAA 2,085,340
Center Project, Series 2000A, 5.500%, 9/01/25 - AMBAC Insured
6,825 Sedgwick County Unified School District No. 259, Wichita, Kansas, 9/10 at 100.00 AA 6,319,199
General Obligation Bonds, Series 2000, 3.500%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.6%
3,070 Jefferson Sales Tax District, Parish of Jefferson, Louisiana, Special 12/12 at 100.00 AAA 3,267,094
Sales Tax Revenue Bonds, Series 2002 Refunding, 5.250%, 12/01/20 -
AMBAC Insured
5,240 Orleans Levee District, Louisiana, Levee District General Obligation 12/05 at 103.00 AAA 5,850,250
Bonds, Series 1986, 5.950%, 11/01/14 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 3.0%
7,520 Maine Educational Loan Marketing Corporation, Subordinate Student Loan No Opt. Call A2 8,069,261
Revenue Bonds, Series 1994-B2, 6.250%, 11/01/06 (Alternative
Minimum Tax)
8,480 Maine State Housing Authority, Mortgage Purchase Bonds, 2000 Series 5/10 at 100.00 AA+ 8,823,610
C-1, 6.050%, 11/15/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 3.0%
4,050 Maryland Community Development Administration, Housing Revenue 1/07 at 102.00 Aa2 4,279,028
Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Department of Housing 7/07 at 102.00 Aa2 3,014,521
and Community Development, Housing Revenue Bonds, Series 1997A,
6.000%, 7/01/39 (Alternative Minimum Tax)
6,800 Montgomery County Housing Opportunities Commission, Maryland, 7/06 at 102.00 Aa2 7,078,868
Multifamily Housing Revenue Bonds, Series 1996B, 6.400%, 7/01/28
(Alternative Minimum Tax)
2,315 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 2,451,516
Multifamily Housing Development Bonds, Series 2000B, 6.125%, 7/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.0%
100 Massachusetts Housing Finance Agency, Housing Project Revenue 4/04 at 101.00 A+ 101,857
Refunding Bonds, Series 1993A, 6.300%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.8%
10,225 City of Detroit, Michigan, Water Supply System Revenue (Senior Lien) 7/07 at 101.00 AAA 10,282,567
Bonds, Series 1997-A, 5.000%, 7/01/27 - MBIA Insured
2,215 City of Hancock Hospital Finance Authority, FHA-Insured Mortgage Hospital 8/08 at 100.00 AAA 2,302,692
Revenue Bonds, Portage Health System, Inc., Series 1998, 4.625%,
8/01/18 - MBIA Insured
4,400 Hancock Hospital Finance Authority, Michigan, FHA-Insured Mortgage 8/08 at 100.00 AAA 4,611,508
Hospital Revenue Bonds, Portage Health System, Inc., Series 1998,
5.450%, 8/01/47 - MBIA Insured
10,500 Michigan State Hospital Finance Authority, Hospital Revenue Bonds, 8/08 at 101.00 Ba3 6,320,055
Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/23
3,750 Michigan Strategic Fund, Collateralized Limited Obligation Revenue 12/03 at 102.00 AAA 3,839,100
Refunding Bonds, Consumers Power Company Project, Series 1993B,
5.800%, 6/15/10 - CAPMAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6%
2,585 Minneapolis/St. Paul Housing Finance Board, Minnesota, FNMA/GNMA 11/07 at 102.00 AAA 2,652,830
Mortgage-Backed Securities Program, Single Family Mortgage Revenue
Bonds, Series 1997, 5.800%, 11/01/30 (Alternative Minimum Tax)
3,500 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100.00 AAA 3,585,155
Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25 - FGIC Insured
2,720 Minnetonka, Minnesota, GNMA Collateralized Multifamily Housing 12/04 at 102.00 AAA 2,809,950
Revenue Refunding Bonds, Brier Creek Project, Series 1994A, 6.450%,
6/20/24
39
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.4%
$ 2,000 Mississippi Higher Education Assistance Corporation, Student Loan 3/04 at 101.00 Aaa $ 2,025,360
Revenue Bonds, Senior Series 1993-B, 5.800%, 9/01/06 (Alternative
Minimum Tax)
5,180 State of Mississippi, General Obligation Bonds, Series 2002A Refunding, No Opt. Call AA 5,892,302
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 2,014,420
Airport Development Program, 5.000%, 7/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.0%
9,000 Nebraska Higher Education Loan Program Incorporated, Senior Subordinate No Opt. Call AAA 9,900,900
Bonds, Series 1993A-5A, 6.250%, 6/01/18 (Alternative Minimum Tax) -
MBIA Insured
1,235 Nebraska Investment Finance Authority, Single Family Housing Revenue 3/07 at 101.50 AAA 1,270,272
Bonds, 1998 Series F, 5.600%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.4%
7,000 Clark County, Nevada, Motor Vehicle Fuel Tax Highway Improvement 7/13 at 100.00 AAA 7,114,940
Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured
10,420 Clark County School District, Nevada, General Obligation Bonds, Series 6/12 at 100.00 AAA 11,363,323
2002C, 5.500%, 6/15/18 - MBIA Insured
4,500 Clark County School District, Nevada, General Obligation School No Opt. Call AAA 5,512,455
Improvement Bonds, Series 1991A, 7.000%, 6/01/10 - MBIA Insured
1,030 Nevada Housing Division, Single Family Mortgage Bonds, 1992 Senior 4/04 at 102.00 A1 1,056,347
Series B, 6.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.0%
125 New Hampshire Housing Finance Authority, Single Family Mortgage 1/07 at 102.00 Aa2 131,463
Acquisition Revenue Bonds, 1996 Series C, 6.200%, 7/01/16 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.4%
New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C:
2,345 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 2,858,297
655 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 798,373
15,000 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 BBB 12,916,650
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
3,125 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 BBB 2,840,313
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.0%
1,000 City of New York, New York, General Obligation Bonds, Fiscal Series No Opt. Call A 1,042,270
1995A, 7.000%, 8/01/04
14,310 City of New York, New York, General Obligation Bonds, Fiscal Series No Opt. Call A 15,168,600
1996F, 6.500%, 2/01/05
New York Transitional Finance Authority, New York, Future Tax
Secured Bonds, Fiscal Series 1998C:
1,350 5.000%, 5/01/26 (Pre-refunded to 5/01/08) 5/08 at 101.00 AA+*** 1,520,802
15,565 5.000%, 5/01/26 5/08 at 101.00 AA+ 15,655,121
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+*** 4,289,789
5,000 5.500%, 11/01/24 5/10 at 101.00 AA+ 5,335,450
220 New York City Transitional Finance Authority, Future Tax Secured Bonds, 5/10 at 101.00 AA+ 251,759
Fiscal 2000 Series A, 5.875%, 11/01/16
2,320 New York State Medical Care Facilities Finance Agency, Hospital and 2/04 at 101.00 AAA 2,419,760
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, FHA-Insured 2/05 at 102.00 AA 4,481,778
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:
4,685 6.200%, 2/15/21 (Pre-refunded to 2/15/04) 2/04 at 102.00 AA*** 4,848,647
3,365 6.200%, 2/15/21 2/04 at 102.00 AA 3,475,136
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 7,500 New York State Thruway Authority, General Revenue Bonds, Series C, 1/05 at 102.00 AAA $ 8,072,325
6.000%, 1/01/15 (Pre-refunded to 1/01/05) - FGIC Insured
6,250 Port Authority of New York and New Jersey, Special Project Bonds, JFK No Opt. Call AAA 7,113,375
International Air Terminal LLC Project, Series 6, 6.250%, 12/01/15
(Alternative Minimum Tax) - MBIA Insured
5,400 Tobacco Settlement Financing Corporation of New York State, Asset 6/10 at 100.00 AA- 5,728,212
Backed Bonds, Series 2003-A1, 5.500%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.8%
2,675 City of Charlotte, North Carolina, Water and Sewer System Revenue Bonds, 6/11 at 101.00 AAA 3,019,915
Series 2001, 5.500%, 6/01/13
2,000 North Carolina Municipal Power Agency Number 1, Catawba Electric No Opt. Call AAA 2,327,480
Revenue Bonds, Series 1992, 6.000%, 1/01/11 - MBIA Insured
10,000 North Carolina Municipal Power Agency Number 1, Catawba Electric 1/13 at 100.00 AAA 10,724,600
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.0%
130 Minot, North Dakota, Single Family Mortgage Revenue Refunding Bonds, 2/04 at 102.00 Aa2 132,217
Series 1993, 7.700%, 8/01/10
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.0%
3,705 Akron, Bath, and Copley Joint Township Hospital District, Ohio, 11/03 at 101.00 Baa1 3,748,830
Hospital Facilities Revenue Bonds, Summa Health System Project,
Series 1992A, 6.250%, 11/15/07
9,000 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 5.000%, 1/10 at 101.00 AAA 9,066,780
1/01/31 - FSA Insured
3,000 County of Franklin, Ohio, Development Revenue Bonds, Series 1999, 10/09 at 101.00 A 3,248,730
American Chemical Society Project, 5.800%, 10/01/14
1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage Revenue 1/05 at 103.00 Aa 1,011,610
Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%,
7/01/24 (Alternative Minimum Tax)
1,195 Ohio Housing Finance Agency, GNMA Mortgage-Backed Securities 3/05 at 102.00 Aaa 1,240,613
Program, Residential Mortgage Revenue Bonds, Series 1995A-1,
6.300%, 9/01/17
4,370 City of Toledo, Ohio, General Obligation Bonds, Series 1994, 5.750%, 12/04 at 102.00 AAA 4,678,129
12/01/09 (Pre-refunded to 12/01/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.9%
630 Oklahoma Housing Finance Agency, Single Family Mortgage Revenue 3/10 at 101.00 Aaa 663,951
Bonds, Homeownership Loan Program, Series 2000-C2, 6.200%, 9/01/28
(Alternative Minimum Tax)
Oklahoma County Finance Authority, Multifamily Housing First
Mortgage Revenue Bonds, Multiple Apartments Project, Series
1998A:
3,495 7.000%, 4/01/18# 4/06 at 102.00 N/R 1,363,050
7,000 7.125%, 4/01/28# 4/06 at 102.00 N/R 2,730,000
9,815 Tulsa County Industrial Authority, Oklahoma, First Mortgage Multifamily 3/11 at 101.00 N/R 8,045,454
Housing Revenue Bonds, Stoneridge Apartments Project, Series 1999,
6.125%, 3/01/39 (Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Oklahoma, Revenue and Refunding Bonds, No Opt. Call AAA 3,973,598
Hillcrest Medical Center Project, Series 1996, 6.500%, 6/01/09 -
CONNIE LEE/AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.9%
5,000 Pennsylvania Economic Development Financing Authority, Resource 1/04 at 102.00 BBB- 5,110,200
Recovery Revenue Bonds, Northampton Generating Project, Senior Series
1994A, 6.400%, 1/01/09 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 3.4%
12,390 Puerto Rico Public Improvement, General Obligation Refunding Bonds, No Opt. Call AAA 15,215,416
Series 1997, 6.500%, 7/01/13 - MBIA Insured
3,470 University of Puerto Rico, University System Revenue Bonds, Series O, 6/10 at 100.00 AAA 3,931,961
5.750%, 6/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.0%
20,000 Tobacco Settlement Financing Corporation of Rhode Island, Asset Backed 6/12 at 100.00 BBB 16,784,200
Bonds, Series 2002A, 6.250%, 6/01/42
41
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.9%
Piedmont Municipal Power Agency, Electric Revenue Refunding Bonds,
Series 1991:
$ 5,000 6.250%, 1/01/21 - FGIC Insured No Opt. Call AAA $ 5,922,100
5,750 4.000%, 1/01/23 - MBIA Insured 1/04 at 100.00 AAA 5,094,788
5,085 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 5,700,488
Bonds, 1998A Refunding Series, 5.500%, 1/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3%
1,500 Metropolitan Government of Nashville and Davidson County, Tennessee, 5/08 at 102.00 AA 1,545,765
Electric System Revenue Bonds, 1998 Series A, 5.200%, 5/15/23
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.8%
4,500 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 12/03 at 100.00 CCC 3,141,945
Bonds, American Airlines, Inc. Project, Series 1990, 7.500%, 12/01/29
(Alternative Minimum Tax)
3,345 Columbia-Brazoria Independent School District, Texas, Unlimited Tax 2/09 at 100.00 AAA 3,268,165
School Building Bonds, Series 1999, 4.750%, 2/01/25
8,000 Cities of Dallas and Fort Worth, Texas, Dallas-Ft. Worth International 11/11 at 100.00 AAA 8,589,360
Airport, Joint Revenue Refunding and Improvement Bonds, Series 2001A,
5.875%, 11/01/19 (Alternative Minimum Tax) - FGIC Insured
6,000 Garland Housing Finance Corporation, Texas, Multifamily Housing Revenue 12/11 at 101.00 N/R 6,075,540
Bonds, Legacy Pointe Apartments, Series 2000, 7.500%, 6/01/40
(Alternative Minimum Tax)
7,000 Harris County, Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 7,052,080
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - MBIA Insured
28,305 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call AAA 7,103,706
Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/28 -
AMBAC Insured
7,500 Houston, Texas, Water and Sewer System Junior Lien Revenue Refunding No Opt. Call AAA 8,578,125
Bonds, Series 2002A, 5.750%, 12/01/32 - FSA Insured
5,000 City of Houston, Texas, Water and Sewer System, Junior Lien Revenue 12/07 at 102.00 AAA 5,021,900
Refunding Bonds, Series 1997D, 5.000%, 12/01/25 - FGIC Insured
7,140 Liberty County Housing Development Corporation, Texas, Multifamily 6/09 at 100.00 N/R 6,426,000
Housing Revenue Bonds, Series 1999, 7.250%, 6/01/34
404 Midland Housing Finance Corporation, Texas, Single Family Mortgage 11/05 at 103.00 Aaa 427,284
Revenue Refunding Bonds, Series 1992A, 8.450%, 12/01/11
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds, Series
2001:
2,300 5.500%, 2/15/21 2/11 at 100.00 AAA 2,473,650
2,400 5.500%, 2/15/23 2/11 at 100.00 AAA 2,543,736
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 3,037,372
3,000 5.125%, 2/15/31 8/11 at 100.00 Aaa 3,033,360
6,000 Raven Hills Higher Education Corporation, Texas, Student Housing Revenue 8/12 at 100.00 Aaa 6,048,180
Bonds, Texan Hall LLC - Angelo State University, Series 2002A, 5.000%,
8/01/25 - MBIA Insured
3,410 Retama Development Corporation, Special Facilities Revenue Bonds, No Opt. Call AAA 4,762,406
Retama Park Racetrack Project, Series 1993, 8.750%, 12/15/12
4,700 Spring Branch Independent School District, Harris County, Texas, Limited 2/11 at 100.00 AAA 4,757,528
Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26
4,259 Texas General Services Commission, Participation Interests, Series 1992, 9/05 at 100.00 A 4,329,441
7.500%, 9/01/22
8,500 Travis County Health Facilities Development Corporation, Texas, 11/03 at 102.00 Aaa 8,678,500
Hospital Revenue Bonds, Daughters of Charity National Health System,
Series 1993B, 6.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 6.4%
4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding Bonds, South 12/08 at 101.00 N/R 4,143,880
Davis Community Hospital Project, Series 1998, 5.750%, 12/15/18
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH (continued)
$ 17,570 Intermountain Power Agency, Utah, Power Supply Revenue Refunding 7/07 at 102.00 AAA $19,569,642
Bonds, Series 1997B, 5.750%, 7/01/19 - MBIA Insured
Intermountain Power Agency, Utah, Power Supply Revenue Bonds, Series
1996A:
5,065 6.150%, 7/01/14 7/06 at 102.00 A+*** 5,707,749
2,935 6.150%, 7/01/14 7/06 at 102.00 A+ 3,124,542
755 Utah Housing Finance Agency, Single Family Mortgage Bonds, 2000 Series 7/10 at 100.00 AA 771,784
G, 5.875%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds, 2001
Series C:
2,325 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 2,453,549
690 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aa2 706,332
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.9%
8,190 Hampton, Virginia, Convention Center Revenue Bonds, Series 2002, 1/13 at 100.00 AAA 8,244,054
5.000%, 1/15/35 - AMBAC Insured
2,645 Suffolk Redevelopment and Housing Authority, Virginia, Multifamily 1/04 at 101.00 Baa2 2,672,244
Housing Revenue Refunding Bonds, Chase Heritage Project, Series 1994,
7.000%, 7/01/24 (Mandatory put 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.2%
1,050 King County, Bellevue, Washington, Water and Sewer Revenue Refunding 7/04 at 100.00 Aa2 1,081,763
Bonds, Series 1994, 5.875%, 7/01/09
1,855 Public Utility District No. 1 of Chelan County, Washington, Chelan Hydro 7/09 at 101.00 AA 1,967,932
Consolidated System Revenue Bonds, Series 1999A, 6.200%, 7/01/34
(Alternative Minimum Tax)
1,035 Covington Water District, Washington, Water Improvement and Revenue 3/05 at 100.00 AAA 1,101,965
Refunding 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, Limited Tax, 9/07 at 100.00 Aaa 1,751,288
5.125%, 9/01/17 - FSA Insured
1,000 Seattle Indian Services Commission, Washington, Special Obligation 11/04 at 100.00 AAA 1,044,600
Bonds, Series 1994, 6.000%, 11/01/16
1,640 Skagit County Housing Authority, Washington, GNMA Collateralized 11/04 at 104.00 AAA 1,729,232
Mortgage Loan, Nursing Facility Revenue Bonds, Sea Mar Community
Project, Series 1993, 7.000%, 6/20/35
1,500 Snohomish County School District 6, Mukilteo, Washington, Unlimited No Opt. Call AAA 1,731,720
Tax General Obligation and Refunding Bonds, Series 1993, 5.700%,
12/01/12 - FGIC Insured
1,570 Spokane Downtown Foundation, Washington, Parking Revenue Bonds, 8/08 at 102.00 D 684,913
River Park Square Project, Series 1998, 5.600%, 8/01/19#
8,155 City of Tacoma, Washington, Electric System Revenue Bonds, Series 2001A 1/11 at 101.00 AAA 9,038,920
Refunding, 5.750%, 1/01/20 - FSA Insured
4,705 City of Tacoma, Washington, Sewer Revenue Bonds, Series 1994B No Opt. Call AAA 5,904,304
Refunding, 8.000%, 12/01/08 - FGIC Insured
5,000 Tobacco Settlement Authority, Washington State, Tobacco Settlement 6/13 at 100.00 BBB 4,609,300
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+*** 46,124
1,955 6.000%, 5/01/19 (Pre-refunded to 5/01/04) 5/04 at 100.00 AA+*** 2,003,816
2,000 Washington State Health Care Facilities Authority, Revenue Bonds, 8/08 at 102.00 AA 1,998,680
Highline Community Hospital, Series 1998, 5.000%, 8/15/21 - RAAI
Insured
1,000 Washington Health Care Facilities Authority, Revenue Bonds, Harrison 8/13 at 102.00 AAA 1,009,430
Memorial Hospital, Series 1998, 5.000%, 8/15/28 - AMBAC Insured
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*** 6,975,706
395 7.250%, 7/01/06 No Opt. Call Aa1 450,703
11,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding No Opt. Call Aa1 13,286,240
Revenue Bonds, Series 1993B, 7.000%, 7/01/09
4,700 Washington Public Power Supply System, Nuclear Project No. 3, Refunding 7/08 at 102.00 Aa1 4,879,634
Revenue Bonds, Series 1998A, 5.125%, 7/01/18
1,400 Washington State University, Housing and Dining System Revenue and 10/04 at 101.00 AAA 1,482,347
Refunding Bonds, Series 1994, 6.375%, 10/01/18 (Pre-refunded to
10/01/04) - MBIA Insured
43
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 1,000 Yakima-Tieton Irrigation District, Yakima County, Washington, Revenue 12/03 at 102.00 AAA $ 1,024,270
Refunding Bonds, Series 1992, 6.125%, 6/01/13 (Pre-refunded to
12/01/03) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4%
7,500 Wisconsin Health and Educational Facilities Authority, Revenue Bonds, 2/12 at 101.00 AAA 7,706,920
Ministry Health Care Inc., Series 2002A, 5.250%, 2/15/32 - MBIA
Insured
$ 922,074 Total Long-Term Investments (cost $849,883,833) - 153.4% 871,964,011
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.5%
3,920 Chester County Industrial Development Authority, Pennsylvania, VMIG-1 3,920,000
Archdiocese of Philadelphia, Variable Revenue Demand Bonds, Series
2001, 1.150%, 7/01/31+
5,000 Connecticut Health and Educational Facilities Authority, Revenue Bonds, A-1+ 5,000,000
Yale University, Variable Rate Demand Bonds, Series 1997, 1.100%,
7/01/29+
$ 8,920 Total Short-Term Investments (cost $8,920,000) 8,920,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $858,803,833) - 154.9% 880,884,011
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.6% 26,291,776
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.5)% (338,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 568,775,787
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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 (not covered by the report of independent
auditors): 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.
44
Statement of
ASSETS AND LIABILITIES October 31, 2003
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $1,387,953,255
$928,721,306 and $858,803,833, respectively) $1,447,395,979 $969,243,175 $880,884,011
Cash 14,542 350,672 181,234
Receivables:
Interest 23,994,779 14,738,225 15,790,695
Investments sold 15,847,460 5,941,239 10,982,075
Other assets 44,580 7,752 83,001
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,487,297,340 990,281,063 907,921,016
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 12,856,883 22,631,568 --
Accrued expenses:
Management fees 767,221 510,673 480,156
Other 326,579 201,005 243,176
Preferred share dividends payable 34,463 22,221 21,897
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 13,985,146 23,365,467 745,229
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 525,000,000 347,000,000 338,400,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 948,312,194 $619,915,596 $568,775,787
====================================================================================================================================
Common shares outstanding 63,785,430 41,093,661 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.87 $ 15.09 $ 13.15
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 410,937 $ 432,367
Paid-in surplus 901,328,041 570,816,193 587,100,504
Undistributed net investment income 11,705,610 8,474,976 4,870,416
Accumulated net realized gain (loss) from investments (24,802,035) (308,379) (45,707,678)
Net unrealized appreciation of investments 59,442,724 40,521,869 22,080,178
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 948,312,194 $619,915,596 $568,775,787
====================================================================================================================================
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.
45
Statement of
OPERATIONS Year Ended October 31, 2003
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $78,527,498 $51,849,441 $48,164,034
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 9,102,635 6,071,847 5,733,480
Preferred shares - auction fees 1,325,941 873,760 853,584
Preferred shares - dividend disbursing agent fees 60,000 60,000 80,000
Shareholders' servicing agent fees and expenses 252,451 88,201 128,813
Custodian's fees and expenses 342,288 226,761 217,149
Directors' fees and expenses 25,276 16,565 18,723
Professional fees 89,753 34,637 485,412
Shareholders' reports - printing and mailing expenses 157,029 78,552 137,874
Stock exchange listing fees 24,551 16,079 19,779
Investor relations expense 192,558 100,859 124,586
Other expenses 81,391 49,080 58,181
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 11,653,873 7,616,341 7,857,581
Custodian fee credit (48,544) (38,402) (34,360)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 11,605,329 7,577,939 7,823,221
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 66,922,169 44,271,502 40,340,813
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments (6,491,900) (393,349) (24,848,241)
Change in net unrealized appreciation (depreciation) of investments 4,768,442 (3,831,125) 11,357,979
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (1,723,458) (4,224,474) (13,490,262)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (4,760,721) (2,914,759) (3,107,195)
From accumulated net realized gains from investments -- (384,068) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred shareholders (4,760,721) (3,298,827) (3,107,195)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares from operations $60,437,990 $36,748,201 $23,743,356
====================================================================================================================================
See accompanying notes to financial statements.
46
Statement of
CHANGES IN NET ASSETS
PREMIUM INCOME (NPI) PREMIUM INCOME 2 (NPM) PREMIUM INCOME 4 (NPT)
----------------------------- ------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/03 10/31/02 10/31/03 10/31/02 10/31/03 10/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 66,922,169 $ 70,354,430 $ 44,271,502 $ 48,293,168 $ 40,340,813 $ 43,363,268
Net realized gain (loss) from
investments (6,491,900) (6,201,951) (393,349) 4,919,255 (24,848,241) (18,076,293)
Change in net unrealized appreciation
(depreciation) of investments 4,768,442 (24,711,552) (3,831,125) (17,479,447) 11,357,979 (16,827,256)
Distributions to Preferred Shareholders:
From net investment income (4,760,721) (7,145,600) (2,914,759) (4,488,225) (3,107,195) (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 60,437,990 32,295,327 36,748,201 30,688,026 23,743,356 3,765,795
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (60,851,307) (57,842,053) (40,327,811) (39,520,479) (36,928,470) (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 (60,851,307) (57,842,053) (44,491,869) (41,393,428) (36,928,470) (36,793,968)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (413,317) (25,546,726) (7,743,668) (10,705,402) (13,185,114) (33,028,173)
Net assets applicable to Common
shares at the beginning
of year 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 year $948,312,194 $948,725,511 $619,915,596 $627,659,264 $568,775,787 $581,960,901
====================================================================================================================================
Undistributed net investment
income at the end of year $ 11,705,610 $ 10,662,888 $ 8,474,976 $ 7,533,957 $ 4,870,416 $ 4,620,896
====================================================================================================================================
See accompanying notes to financial statements.
47
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
Common share New York Stock Exchange symbols are Nuveen Premium Income Municipal
Fund, Inc. (NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen
Premium Income Municipal Fund 4, Inc. (NPT). The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Directors of the Funds, or its designee, may establish a fair value
for the security. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At October 31, 2003,
Premium Income 2 (NPM) had outstanding when-issued purchase commitments of
$22,631,568. There were no such outstanding purchase commitments in Premium
Income (NPI) and 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.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of the Fund's shareholders.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal income
tax, to retain such tax-exempt status when distributed to shareholders of the
Funds. All monthly tax-exempt income dividends paid during the fiscal year ended
October 31, 2003, have been designated Exempt Interest Dividends.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
48
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 fiscal year ended October 31, 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 fiscal
years ended October 31, 2003 and October 31, 2002.
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the fiscal year ended October 31, 2003, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Purchases $382,251,467 $251,519,202 $151,743,576
Sales and maturities 343,654,120 197,657,765 169,274,324
================================================================================
49
Notes to
FINANCIAL STATEMENTS (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 October 31, 2003, the cost of investments were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Cost of investments $1,386,976,409 $928,057,156 $858,274,321
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2003, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 80,569,478 $46,652,609 $ 45,886,732
Depreciation (20,149,908) (5,466,590) (23,277,042)
-------------------------------------------------------------------------------
Net unrealized appreciation
of investments $ 60,419,570 $41,186,019 $ 22,609,690
===============================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2003, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Undistributed net tax-exempt income $15,582,555 $10,923,354 $6,663,985
Undistributed net ordinary income * 283,509 258,828 768,631
Undistributed net long-term capital gains -- -- --
================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal years ended October
31, 2003 and October 31, 2002, was designated for purposes of the dividends paid
deduction as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
2003 (NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Distributions from net tax-exempt income $65,547,346 $43,115,363 $39,962,183
Distributions from net ordinary income * -- 153,898 100,446
Distributions from net long-term
capital gains -- 4,545,182 --
================================================================================
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
2002 (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.
50
At October 31, 2003, 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 PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Expiration year:
2008 $12,335,442 $-- $ 2,835,520
2009 -- -- --
2010 6,203,091 -- 18,079,555
2011 6,263,502 308,379 24,792,603
--------------------------------------------------------------------------------
Total $24,802,035 $308,379 $45,707,678
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc.
(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 or its affiliates.
6. INVESTMENT COMPOSITION
At October 31, 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 3% 3% 5%
Education and Civic Organizations 6 4 6
Healthcare 10 9 10
Housing/Multifamily 3 5 8
Housing/Single Family 7 6 3
Tax Obligation/General 19 26 16
Tax Obligation/Limited 20 12 14
Transportation 10 6 6
U.S. Guaranteed 9 15 12
Utilities 8 11 12
Water and Sewer 2 2 7
Other 3 1 1
--------------------------------------------------------------------------------
100% 100% 100%
================================================================================
51
Notes to
FINANCIAL STATEMENTS (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 (60% for Premium
Income (NPI), 58% for Premium Income 2 (NPM) and 58% 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 December 1, 2003, to shareholders of record
on November 15, 2003, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0800 $.0815 $.0710
================================================================================
52
Financial
HIGHLIGHTS
53
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each year:
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 $14.87 $1.05 $ (.03) $(.07) $ -- $ .95 $(.95) $ -- $ (.95)
2002 15.27 1.10 (.48) (.11) -- .51 (.91) -- (.91)
2001 14.23 1.12 .98 (.26) -- 1.84 (.80) -- (.80)
2000 13.46 1.11 .78 (.33) -- 1.56 (.79) -- (.79)
1999 15.66 1.09 (2.10) (.24) (.02) (1.27) (.85) (.07) (.92)
PREMIUM INCOME 2 (NPM)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 15.27 1.08 (.10) (.07) (.01) .90 (.98) (.10) (1.08)
2002 15.53 1.17 (.30) (.11) (.01) .75 (.96) (.05) (1.01)
2001 14.75 1.21 .73 (.27) -- 1.67 (.89) -- (.89)
2000 14.61 1.22 .20 (.34) -- 1.08 (.92) (.02) (.94)
1999 16.15 1.18 (1.48) (.24) (.01) (.55) (.94) (.04) (.98)
PREMIUM INCOME 4 (NPT)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 13.46 .93 (.32) (.07) -- .54 (.85) -- (.85)
2002 14.22 1.00 (.80) (.11) -- .09 (.85) -- (.85)
2001 13.54 1.08 .66 (.25) -- 1.49 (.81) -- (.81)
2000 13.50 1.11 .07 (.32) -- .86 (.82) -- (.82)
1999 15.05 1.09 (1.56) (.24) -- (.71) (.83) -- (.83)
==================================================================================================================================
Total Returns
-------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
======================================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2003 $ -- $14.87 $14.0600 6.48% 6.58%
2002 -- 14.87 14.1100 5.51 3.47
2001 -- 15.27 14.2500 26.60 13.22
2000 -- 14.23 11.9375 4.10 12.03
1999 (.01) 13.46 12.2500 (14.03) (8.59)
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2003 -- 15.09 14.2500 6.57 6.07
2002 -- 15.27 14.4000 5.59 5.03
2001 -- 15.53 14.6100 17.31 11.63
2000 -- 14.75 13.2500 (2.03) 7.71
1999 (.01) 14.61 14.5000 (8.59) (3.66)
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2003 -- 13.15 12.5200 3.09 4.12
2002 -- 13.46 12.9700 .52 .76
2001 -- 14.22 13.7500 18.68 11.28
2000 -- 13.54 12.3125 3.28 6.58
1999 (.01) 13.50 12.7500 (8.77) (5.03)
======================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------
Before Credit After Credit**
---------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
=========================================================================================================================
PREMIUM INCOME (NPI)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 $948,312 1.22% 7.02% 1.22% 7.02% 24%
2002 948,726 1.22 7.39 1.22 7.39 4
2001 974,272 1.22 7.49 1.21 7.50 20
2000 907,640 1.28 8.09 1.27 8.10 18
1999 858,491 1.18 7.28 1.17 7.29 15
PREMIUM INCOME 2 (NPM)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 619,916 1.22 7.06 1.21 7.07 21
2002 627,659 1.22 7.70 1.21 7.71 21
2001 638,365 1.23 7.93 1.21 7.95 12
2000 605,973 1.23 8.38 1.22 8.39 7
1999 600,481 1.15 7.60 1.15 7.60 5
PREMIUM INCOME 4 (NPT)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003 568,776 1.36 6.95 1.35 6.96 17
2002 581,961 1.36 7.36 1.35 7.37 16
2001 614,989 1.34 7.73 1.33 7.74 10
2000 585,387 1.27 8.22 1.26 8.23 14
1999 583,541 1.20 7.51 1.20 7.51 14
=========================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------
Year Ended 10/31:
2003 $525,000 $25,000 $70,158
2002 525,000 25,000 70,177
2001 525,000 25,000 71,394
2000 525,000 25,000 68,221
1999 525,000 25,000 65,881
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------
Year Ended 10/31:
2003 347,000 25,000 69,663
2002 347,000 25,000 70,220
2001 347,000 25,000 70,992
2000 347,000 25,000 68,658
1999 347,000 25,000 68,262
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------
Year Ended 10/31:
2003 338,400 25,000 67,019
2002 338,400 25,000 67,983
2001 338,400 25,000 70,434
2000 338,400 25,000 68,247
1999 338,400 25,000 68,110
====================================================================
* Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
See accompanying notes to financial statements.
54-55 SPREAD
Directors
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board of
Directors of the Funds. The number of directors of the Funds is currently set at
twelve. None of the directors who are not "interested" persons of the Funds has
ever been a director or employee of, or consultant to, Nuveen or its affiliates.
The names and business addresses of the directors and officers of the Funds,
their principal occupations and other affiliations during the past five years,
the number of portfolios each oversees and other directorships they hold are set
forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
DIRECTOR WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 142
3/28/49 Board and Investments, Inc. and Nuveen Investments, LLC;
333 W. Wacker Drive Director Director (since 1992) and Chairman (since 1996) of
Chicago, IL 60606 Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.; Chairman and Director (since 1997)
of Nuveen Asset Management, Inc.; Director (since 1996)
of Institutional Capital Corporation; Chairman and Director
(since 1999) of Rittenhouse Asset Management, Inc.;
Chairman of Nuveen Investments Advisers Inc. (since 2002).
DIRECTORS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
William E. Bennett Director 2001 Private Investor; previously, President and Chief Executive 142
10/16/46 Officer, Draper & Kramer, Inc., a private company that
333 W. Wacker Drive handles mortgage banking, real estate development, pension
Chicago, IL 60606 advisory and real estate management (1995-1998). Prior
thereto, Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, The
First National Bank of Chicago.
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Director 1997 Private Investor and Management Consultant. 141
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Director 1993 Retired (since 1989) as Senior Vice President of The 141
7/29/34 Northern Trust Company; Director of the United Way of
333 W. Wacker Drive Highland Park-Highwood (since 2002).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Director 1999 President, The Hall-Perrine Foundation, a private philanthropic 131
10/22/48 corporation (since 1996); Director, Alliant Energy; Director and
333 W. Wacker Drive Vice Chairman, United Fire & Casualty Company; Director,
Chicago, IL 60606 Federal Reserve Bank of Chicago; formerly, President and Chief
Operating Officer, SCI Financial Group, Inc., a regional financial
services firm.
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri Director 1994 Retired, formerly, Executive Director (since 1998) of Manitoga/ 141
1/26/33 The Russel Wright Design Center; prior thereto, President and
333 W. Wacker Drive Chief Executive Officer of Blanton-Peale Institute (since 1990);
Chicago, IL 60606 prior thereto, Vice President, Metropolitan Life Insurance Co.
------------------------------------------------------------------------------------------------------------------------------------
William L. Kissick Director 1992 Professor Emeritus, School of Medicine and the Wharton 131
7/29/32 School of Management and former Chairman, Leonard Davis
333 W. Wacker Drive Institute of Health Economics, University of Pennsylvania;
Chicago, IL 60606 Adjunct Professor, Health Policy and Management, Yale University.
------------------------------------------------------------------------------------------------------------------------------------
Thomas E. Leafstrand Director 1992 Retired; previously, Vice President in charge of Municipal 131
11/11/31 Underwriting and Dealer Sales at The Northern Trust
333 W. Wacker Drive Company.
Chicago, IL 60606
56
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS DIRECTOR
------------------------------------------------------------------------------------------------------------------------------------
DIRECTORS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers Director 1991 Adjunct Professor of Business and Economics, University of 141
4/3/33 Dubuque, Iowa; formerly (1991-2000) Adjunct Professor, Lake
333 W. Wacker Drive Forest Graduate School of Management, Lake Forest, Illinois;
Chicago, IL 60606 prior thereto, Executive Director, Towers Perrin Australia, a
management consulting firm; Chartered Financial Analyst;
Certified Management Consultant; Director, Executive
Service Corps of Chicago, a not-for-profit organization.
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Director 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 141
9/24/44 Group, Vice President, Miller-Valentine Realty, a construction
333 W. Wacker Drive company; Chair, MiamiValley Hospital; Chair, Dayton
Chicago, IL 60606 Development Coalition; formerly, Member, Community
Advisory Board, National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Director 1997 Executive Director, Gaylord and Dorothy Donnelley Foundation 141
12/29/47 (since 1994); prior thereto, Executive Director, Great Lakes
333 W. Wacker Drive Protection Fund (from 1990 to 1994).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Sheila W. Wellington Director 1994 President (since 1993) of Catalyst (a not-for-profit organization 131
2/24/32 focusing on women's leadership development in business
333 W. Wacker Drive and the professions).
Chicago, IL 60606
POSITION(S) YEAR FIRST NUMBER OF PORTFOLIOS
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary 142
9/9/56 Administrative and Associate General Counsel, formerly, Vice President
333 W. Wacker Drive Officer and Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management, Inc.; Assistant
Secretary of Nuveen Investments, Inc. (since 1994);
Assistant Secretary of NWQ Investment Management
Company, LLC (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General
Counsel and Assistant Secretary of Rittenhouse Asset
Management, Inc. (since May 2003); Chartered
Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant 142
2/3/66 and Assistant Vice President (since 2000), previously, Associate of
333 W. Wacker Drive Secretary Nuveen Investments, LLC.
Chicago, IL 60606
57
Directors
AND OFFICERS (CONTINUED)
POSITION(S) YEAR FIRST NUMBER OF PORTFOLIOS
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Paul L. Brennan Vice President 1999 Vice President (since 2002), formerly, Assistant 128
11/10/66 Vice President (since 1997), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager of Flagship Financial Inc.;
Chicago, IL 60606 Chartered Financial Analyst and Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 142
11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice
333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since
Chicago, IL 60606 1999); Vice President and Treasurer of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp. (since 1999); Vice
President and Treasurer of Nuveen Asset Management,
Inc. (since 2002) and of Nuveen Investments Advisers
Inc. (since 2002); Assistant Treasurer of NWQ Investment
Management Company, LLC (since 2002); Chartered
Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Susan M. DeSanto Vice President 2001 Vice President of Nuveen Advisory Corp. (since 2001); 142
9/8/54 previously, Vice President of Van Kampen Investment
333 W. Wacker Drive Advisory Corp. (since 1998); Vice President of Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 2002); prior thereto,
Assistant Vice President of Van Kampen Investment
Advisory Corp. (since 1994).
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 142
9/24/64 and Secretary (since 1998); formerly, Assistant Vice President (since 1998)
333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Vice President of Nuveen Investments, LLC; Vice 142
10/24/45 President (since 1998) of Nuveen Advisory Corp. and
333 W. Wacker Drive Nuveen Institutional Advisory Corp.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 142
3/2/64 LLC; Managing Director (since 2001), formerly Vice
333 W. Wacker Drive President of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 1995); Managing
Director of Nuveen Asset Management, Inc. (since 2001);
Vice President of Nuveen Investment Advisers Inc.
(since 2002); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 142
5/31/54 and Controller 1998) of Nuveen Investments, LLC and Vice President and
333 W. Wacker Drive Funds Controller (since 1998) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
J. Thomas Futrell Vice President 1988 Vice President of Nuveen Advisory Corp.; 128
7/5/55 Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Steven J. Krupa Vice President 1990 Vice President of Nuveen Advisory Corp. 128
8/21/57
333 W. Wacker Drive
Chicago, IL 60606
58
POSITION(S) YEAR FIRST NUMBER OF PORTFOLIOS
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, LLC, 142
3/22/63 previously Assistant Vice President (since 1999); prior
333 W. Wacker Drive thereto, Associate of Nuveen Investments, LLC; Certified
Chicago, IL 60606 Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 142
8/27/61 President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 142
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.; Assistant Secretary of Nuveen
Investments, Inc. and (since 1997) Nuveen Asset Management,
Inc.; Vice President (since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of Rittenhouse Asset
Management, Inc.; Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002); Assistant
Secretary of NWQ Investment Management Company, LLC
(since 2002).
------------------------------------------------------------------------------------------------------------------------------------
John V. Miller Vice President 2003 Vice President (since 2003), previously, Assistant 128
4/10/67 Vice President (since 1999), prior thereto, credit
333 W. Wacker Drive analyst (since 1996) of Nuveen Advisory Corp.;
Chicago, IL 60606 Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, 142
7/7/65 LLC; Managing Director (since 1997), formerly Vice
333 W. Wacker Drive President (since 1996) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.; Managing Director
of Nuveen Asset Management, Inc. (since 1999).
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. O'Shaughnessy Vice President 1999 Vice President (since 2002), formerly, Assistant 128
9/4/60 Vice President (since 1998), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Daniel S. Solender Vice President 2003 Vice President of Nuveen Advisory Corp. (since 2003); 128
10/27/65 previously, Principal and portfolio manager with The Vanguard
333 W. Wacker Drive Group (1999-2003); prior thereto, Assistant Vice President
Chicago, IL 60606 of the Nuveen Advisory Corp.; Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Thomas C. Spalding Vice President 1982 Vice President of Nuveen Advisory Corp. and Nuveen 128
7/31/51 Institutional Advisory Corp.; Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and trustee of the
Adviser.
(2) Directors serve a one-year term until his/her successor is elected. The year
first elected or appointed represents the year in which the Director was
first elected or appointed to any fund in the Nuveen Complex.
(3) Officers serve a one-year term through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
59
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.
60
Fund
INFORMATION
BOARD OF DIRECTORS
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
Anne E. Impellizzeri
William L. Kissick
Thomas E. Leafstrand
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows each Fund, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Duration: Duration is a measure of a bond or bond fund's sensitivity to
changes in interest rates. Generally, the longer a bond or fund's duration, the
more the price of the bond or fund will change as interest rates change.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
---------
Each Fund intends to repurchase shares of its own common or preferred stock,
where applicable, in the future at such times and in such amounts as is deemed
advisable. No shares were repurchased during the fiscal year ended October 31,
2003. Any future repurchases will be reported to shareholders in the next annual
or semiannual report.
61
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 $90 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
EAN-E-1003D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. The registrant has posted such code of
ethics on its website at www.nuveen.com/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors has determined that the registrant has
at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its audit committee. The registrant's audit committee
financial expert is William E. Bennett, who is "independent" for purposes of
Item 3 of Form N-CSR.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidary, The First National Bank
of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy
as to accrual of assets/loans; designated performing/non-performing assets; set
the level of reserves against the credit portfolio; and determined the carrying
value of credit related assets and exposure. Among other things, Mr. Bennett was
also responsible for the oversight of the internal analysis function including
setting ground rules for the review and preparation of financial analysis and
financial statements for use in making credit and risk decisions for clients.
Mr. Bennett has significant experience reviewing, analyzing and evaluating
financial statements of domestic and international companies in a variety of
industries with complex accounting issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
Nuveen Advisory Corp. (the "Adviser") would either engage an independent third
party to determine how the proxy should be voted or vote the proxy with the
consent, or based on the instructions, of the Fund's Board of Directors or
Trustees or its representative. In the case of a conflict of interest, the proxy
would be submitted to the applicable Fund's Board to determine how the proxy
should be voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Premium Income Municipal Fund 4, Inc.
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: January 8, 2004
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: January 8, 2004
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: January 8, 2004
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* Print the name and title of each signing officer under his or her signature.