ANNUAL REPORT October 31, 2001
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NUVEEN
Investments
Municipal Closed-End
EXCHANGE-TRADED
Funds
Dependable, tax-free income to help
you keep more of what you earn.
PREMIUM INCOME
NPI
NPM
NPT
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
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Dear
SHAREHOLDER
[Photo of Timothy R. Schwertfeger]
Timothy R. Schwertfeger
Chairman of the Board
In the aftermath of September 11, the financial markets have reacted with
volatility and uncertainty as investors attempt to better understand how the
U.S. and world economies are likely to perform in the months ahead. It's too
soon to tell what the long-term impact will be on the markets or your Fund, but
one thing that is increasingly clear to us is that a diversified portfolio that
includes high quality municipal bonds can leave you well positioned to reduce
overall investment volatility.
For example, during the period covered by this report, all of these Nuveen Funds
continued to meet their primary objectives of providing attractive monthly
income from a portfolio of high quality municipal bonds. Detailed information on
your Fund's performance can be found in the Portfolio Manager's Comments and
Performance Overview sections of this report. I urge you to take the time to
read them.
In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy. These include careful research, constant
surveillance and judicious trading by Nuveen's seasoned portfolio management
team, with every action designed to supplement income, improve Fund structure,
better adapt to current market conditions or increase
Sidebar text:
"A diversified
portfolio
can leave
you well
positioned
to reduce
overall
investment
risk."
Sidebar text:
"Today, perhaps
more than
ever, investors
have the
ability to
make a lasting
impact on
their families
and their
world for
generations
to come."
diversification. In turbulent times like these, prudent investors understand the
importance of diversification, balance, and risk management, all attributes your
Nuveen Fund can bring to your portfolio.
For more than 100 years, Nuveen has specialized in offering quality investments
such as these Nuveen Funds to those seeking to accumulate and preserve wealth
and establish a lasting legacy. Our mission continues to be to assist you and
your financial advisor by offering the investment services and products that can
help you invest well and leave your mark for future generations. We thank you
for continuing to choose Nuveen Investments as your partner as you work toward
that goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2001
Nuveen National Premium Income Municipal Closed-End Exchange-Traded Funds
(NPI, NPM, NPT)
Portfolio Manager's
COMMENTS
Portfolio manager Tom Futrell examines economic and market conditions, key
strategies, and the performance of the Nuveen Premium Income Municipal
Closed-End Exchange-Traded Funds. Tom, who joined Nuveen in 1983, has managed
NPI since 1988, and assumed portfolio management responsibility for NPM and NPT
in 2001.
WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL
MARKET DURING THIS REPORTING PERIOD?
The two major forces at work during the twelve months ended October 31, 2001,
were the continued slowdown in economic growth and the Federal Reserve's
aggressive approach to easing short-term interest rates. While these two factors
had a great impact over the entire period covered in this report, the tragic
events of September 11 and its aftermath also have had a profound effect on the
economy and the markets.
In January 2001, the Fed embarked on a series of interest rate cuts designed to
stimulate the sluggish U.S. economy. During the first ten months of the year,
the Fed announced nine reductions totaling 400 basis points, bringing the
federal funds rate to 2.50% as of October 31, 2001. (On November 6, 2001,
following the end of the period covered in this report, the Fed reduced the fed
funds rate to 2.00%, its lowest level since 1961.) The consensus among many
market observers is that the Fed could decide to cut rates again if signs of a
significant economic slowdown continue.
In the municipal market, the general environment of the past twelve months has
helped many fixed-income securities perform well. The interest rate cuts created
favorable conditions for both new municipal bond issuance and refundings, which
together totaled $223.4 billion nationwide through the first ten months of 2001,
an increase of 36% over January-October 2000. On the demand side, municipal
bonds continued to be highly sought after by individual investors looking for
diversification, tax-free income, quality, and an alternative to a volatile
stock market. Institutional investors, especially insurance companies, also have
been active buyers in the new issue market. In general, strong demand has proven
more powerful than increased supply, which has helped keep municipal bond prices
higher than they were twelve months ago.
HOW DID THE NUVEEN PREMIUM INCOME FUNDS PERFORM OVER THE PAST TWELVE MONTHS?
For the year ended October 31, 2001, the Nuveen Premium Income Closed-End
Exchange-Traded Funds produced annual total returns on net asset value (NAV) as
shown in the accompanying table. The annual returns for the Lehman Brothers
Municipal Bond Index1 and relevant Lipper Peer Group2 are also presented.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
-------------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
10/31/01 EQUIVALENT3 10/31/01 10/31/01 10/31/01
-------------------------------------------------------------------------------
NPI 5.94% 8.55% 13.22% 10.51% 12.97%
-------------------------------------------------------------------------------
NPM 6.28% 9.04% 11.63% 10.51% 12.97%
-------------------------------------------------------------------------------
NPT 6.11% 8.79% 11.28% 10.51% 12.97%
-------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Over the past twelve months, the Fed's shift in interest rate policy from
tightening to easing, combined with favorable market technicals, created a
generally positive total return environment for municipal bonds. The Funds'
participation in the market's gains is reflected in the total returns on NAV
listed in the previous table. In a market characterized by rising bond values
and falling yields, funds with longer durations would typically be expected to
perform well. As of October 31, 2001, the
1 The performance of the Premium Income Funds is compared with that of the
Lehman Brothers Municipal Bond Index, an unleveraged index comprising a
broad range of investment-grade municipal bonds. Results for the Lehman
index do not reflect any expenses.
2 The Premium Income Funds' total returns are compared with the average
annualized return of the 52 funds in the Lipper General Leveraged Municipal
Debt Funds category. Fund and Lipper returns assume reinvestment of
dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the fund's market
yield on the indicated date and a federal income tax rate of 30.5%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a Fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the Fund. Unless otherwise noted, references to duration
in this commentary are intended to indicate Fund duration.
durations4 of these Funds ranged from 7.59 to 9.45, compared with 7.77 for the
unleveraged Lehman Brothers Municipal Bond Index.
While duration was one driver of total return over the past twelve months, the
relative performance of these Funds was also influenced by differences in
structure and individual holdings. For example, NPT's total return performance
was impacted by credit issues involving two separate multifamily housing
projects, the Keystone at Fall Creek Apartments in Indianapolis, Indiana, and a
multiple apartment project in Oklahoma County, Oklahoma. Both of these projects
are now in default and have fallen behind in interest payments. Currently Nuveen
is actively pursuing a resolution to these situations that we believe will serve
the best interests of shareholders. It is important to note that, overall, NPT's
portfolio is in good shape, continuing to offer shareholders attractive tax-free
dividends paid on a regular monthly basis.
HOW DID THE MARKET ENVIRONMENT AFFECT THESE FUNDS' DIVIDENDS AND SHARE PRICES?
With the Fed's move to a policy of interest rate easing as of January 2001, the
dividend-payment capabilities of the Nuveen Premium Income Funds benefited from
the use of leverage, a strategy that can potentially enhance the dividends paid
to common shareholders. This benefit is tied in part to the short-term rates the
Funds pay their MuniPreferred(R), shareholders. For example, declining
short-term rates can enable the Funds to reduce the amount of income they pay
preferred shareholders, which can leave more earnings to support common share
dividends.
During the year ended October 31, 2001, steady or falling short-term interest
rates enabled us to implement four dividend increases in NPI and two increases
each in NPM and NPT. In coming months, the lower rates now being offered by
municipal securities with shorter maturities could potentially continue to
benefit common shareholders of these Funds by further reducing the amount paid
to MuniPreferred shareholders. However, this benefit could be offset by the
effect of bond calls on higher-yielding securities, especially if refundings
increase as the result of lower rates. The level of short-term rates, the number
of bond calls, and the interest rates at which we can reinvest the proceeds of
any calls will all influence the dividends of these Nuveen Funds over the next
twelve months.
Over the past year, as the stock market remained volatile and the bond market
continued to perform well, many investors turned to tax-free fixed-income
investments as a way to add balance to their portfolios and reduce overall risk.
As a result, the share prices of these Funds improved (see the charts on the
individual Performance Overview pages). As investors recognized the opportunity
offered by these Funds, increased demand caused their discounts (share price
below NAV) to narrow over the past twelve months.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN PREMIUM INCOME FUNDS DURING
THE YEAR ENDED OCTOBER 31, 2001?
One of our areas of emphasis during this period was improving call protection by
using a variety of strategies to enhance each Fund's situation as attractive
opportunities presented themselves. Over the next 14 months, NPI and NPT offer
excellent levels of call protection, with 7% and 15%, respectively, of their
portfolios subject to calls between November 2001 and December 2002. NPM, which
marks the 10-year anniversary of its inception in 2002, has reached the point
typically associated
with an increase in call exposure. Over the next 14 months, this Fund could see
bond calls affecting up to 29% of its portfolio. The number of actual calls
experienced by these Funds will depend largely on market interest rates over
this time. Given the current level of rates, our general approach has been to
hold higher-yielding bonds as long as possible to help support the Funds'
dividends, while we look for attractive replacement opportunities. Currently we
have focused on the 20 -year section of yield curve, rather than the 30-year,
since these shorter-maturity bonds offer lower durations and are therefore less
sensitive to interest rate changes, while providing yields similar to those
offered by longer bonds. In general, we believe the call positions of all these
Funds are very manageable, especially given the timeframe, and we foresee no
problems in working through them.
In reinvesting new cash and bond call proceeds over the past twelve months, we
focused on finding attractive bonds with the potential to support the Funds'
long-term dividend-payment capabilities and add value and diversification. Among
the areas of the market where we found value were general obligation bonds at
both the state and county level and sectors regarded as providers of essential
services, such as healthcare and utilities. The utilities sector, in particular,
offered several attractive purchase opportunities. We were also active buyers of
bonds issued by independent electrical power plants in states such as Michigan,
Ohio, Pennsylvania, and Florida. These issues represent a value play, as these
bonds have seen their creditworthiness improve as plants are completed, while
prices have lagged. As of October 31, 2001, all of the Funds listed utilities
among their top five sectors.
Another area that performed well and contributed to diversification was the
tobacco sector, and we took advantage of several new offerings in the primary
market, including those from Iowa, Alaska, Washington, D.C. and Alabama, to
purchase tobacco settlement bonds at very attractive yields for NPI and NPM. The
proceeds from these bonds, which are secured by each state's share of payments
under the $250 billion master settlement agreement between four major tobacco
companies and 46 states, are used for various purposes, including education and
healthcare. If we continue to find attractive opportunities, we plan to add to
our position in these bonds.
In view of recent world events, shareholders should note that these Funds
continue to offer excellent credit quality, with allocations of bonds rated
AAA/U.S. guaranteed and AA ranging from 67% in NPT to 84% in NPI as of October
31, 2001. Each of these Funds also had a portion of its assets invested in BBB
and non-rated bonds, which benefited from narrowing credit spreads during the
first part of 2001. The allocations to this credit sector, which range from 3%
in NPI to 16% in NPT, have declined or remained stable over the past twelve
months, as we shifted our emphasis to higher quality securities that should
offer greater protection from the effects of any further deterioration in the
economy.
All of these Funds also had some exposure to bonds and sectors affected by the
events of September 11, including New York City general obligation bonds,
selected airport and airline issues. Following a decline immediately after the
terrorist attacks, many of these holdings have largely returned to their
pre-September 11 valuations. As of October 31, 2001, credit ratings for
New York City have not been downgraded, remaining at A2/A/A+. The city's recent
issuance of $1 billion in one-year disaster recovery notes sold rapidly to both
individual and institutional investors, demonstrating the general belief that
New York City continues to maintain a strong credit rating despite recent
events. Although Standard & Poor's placed the Port Authority and all major air
carriers and North American airports on credit watch following September 11,
Moody's current median rating for airports is A2, which is solidly investment
grade. In addition, the federal government's commitment to the air
transportation sector was demonstrated by the approval of a $15 billion airline
aid package of grants and loan guarantees.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THE NUVEEN FUNDS IN
PARTICULAR?
In general, our outlook for the fixed-income markets over the next twelve months
remains positive. Although the long-term economic effects of September 11 are
still being assessed, we believe the U.S. economy is headed for an eventual
recovery, but one that will see a slower pace of growth, with inflation and
interest rates remaining low over the near term. New municipal issuance should
continue to be strong during the fourth quarter and into 2002, and municipal
supply nationwide in 2001 is now expected to exceed $250 billion for the first
time since 1998. At the same time, demand for tax-exempt municipal bonds is
anticipated to remain firm, as investors look for ways to rebalance their
portfolios and reduce risk.
The federal government's recent decision to discontinue the 30-year Treasury
bond removed one of the pricing benchmarks for the municipal market. This could
result in some pricing uncertainty and create additional opportunities to add
value to the portfolios. Overall, we continue to watch the fixed-income markets
carefully, especially those sectors that were directly impacted by the events of
September 11 or that would be affected by any further deceleration in the
economy. We believe the Nuveen Premium Income Funds are currently well
diversified and well positioned for the market environment ahead, and we will
continue to closely monitor and respond to events as appropriate.
Over the next six months, we plan to remain focused on the strategies that add
value for our shareholders, provide support for the Funds' dividends, and fully
utilize Nuveen's research expertise to adjust to any shifts in market
conditions. One of our priorities will be managing portfolio structure,
including duration and credit quality, to strategically position the Funds for a
potential economic recovery. Our emphasis will continue to be on the essential
services sectors. Tobacco settlement bonds could also continue to offer
opportunities for diversification and enhanced yield. Overall, we believe the
Nuveen Funds will continue to play an important role in investors' long-range
financial programs, providing balance and diversification, dependable tax-free
income, quality investments, and a measure of security in uncertain times such
as these.
Nuveen Premium Income Municipal Fund, Inc.
NPI
Performance
OVERVIEW As of October 31, 2001
pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 66%
AA 18%
A 11%
BBB 1%
NR 2%
Other 2%
bar chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.063
Dec 0.0645
Jan 0.0645
Feb 0.0645
Mar 0.0665
Apr 0.0665
May 0.0665
Jun 0.0685
Jul 0.0685
Aug 0.0685
Sep 0.0705
Oct 0.0705
line chart:
SHARE PRICE PERFORMANCE
11/1/00 12.13
11.88
11.81
11.94
12.13
12.38
12.5
12.94
13.31
13.25
13.38
13.44
13.69
13.56
13.25
13.27
13.57
13.72
13.55
13.66
13.65
13.5
13.48
13.36
13.41
13.52
13.5
13.42
13.36
13.42
13.57
13.57
13.59
13.95
13.89
13.87
13.71
13.82
14.01
14.22
14.13
14.3
14.3
14.34
14.29
13.8
14.11
14.17
14.07
14.12
10/31/01 14.12
Weekly Closing Price
Past performance is not predictive of future results
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $14.25
---------------------------------------------------
Net Asset Value $15.27
---------------------------------------------------
Market Yield 5.94%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.55%
---------------------------------------------------
Fund Net Assets ($000) $1,499,272
---------------------------------------------------
Average Effective Maturity (Years) 20.84
---------------------------------------------------
Leverage-Adjusted Duration 9.45
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 7/88)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 26.60% 13.22%
---------------------------------------------------
5-Year 6.20% 6.57%
---------------------------------------------------
10-Year 5.84% 6.83%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Tax Obligation/Limited 16%
---------------------------------------------------
Utilities 13%
---------------------------------------------------
Tax Obligation/General 13%
---------------------------------------------------
Housing/Single Family 12%
---------------------------------------------------
U.S.Guaranteed 11%
---------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%.
Nuveen Premium Income Municipal Fund 2, Inc.
NPM
Performance
OVERVIEW As of October 31, 2001
pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 58%
AA 12%
A 25%
BBB 1%
NR 4%
bar chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.074
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Jun 0.075
Jul 0.075
Aug 0.075
Sep 0.0765
Oct 0.0765
line chart:
SHARE PRICE PERFORMANCE
11/1/00 13.5
13.06
13.06
13.13
13.03
13.44
13.75
13.63
14.31
14.38
14.56
14.44
14.81
14.46
14.21
14.34
14.5
14.53
14.35
14.12
14.03
14.2
14.09
14.26
14.29
14.3
14.29
14.12
14.12
14.26
14.36
14.23
14.48
14.51
14.57
14.38
14.38
14.59
14.59
14.87
14.78
14.76
14.88
14.86
14.89
13.75
14.62
14.86
14.46
14.5
10/31/01 14.65
Weekly Closing Price
Past performance is not predictive of future results
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $14.61
---------------------------------------------------
Net Asset Value $15.53
---------------------------------------------------
Market Yield 6.28%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 9.04%
---------------------------------------------------
Fund Net Assets ($000) $985,365
---------------------------------------------------
Average Effective Maturity (Years) 14.36
---------------------------------------------------
Leverage-Adjusted Duration 7.59
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 7/92)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 17.31% 11.63%
---------------------------------------------------
5-Year 7.30% 6.92%
---------------------------------------------------
Since Inception 6.34% 7.51%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
U.S.Guaranteed 31%
---------------------------------------------------
Tax Obligation/General 19%
---------------------------------------------------
Housing/Single Family 10%
---------------------------------------------------
Tax Obligation/Limited 9%
---------------------------------------------------
Utilities 8%
---------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2000 of $0.0028 per share.
Nuveen Premium Income Municipal Fund 4, Inc.
NPT
Performance
OVERVIEW As of October 31, 2001
pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 48%
AA 19%
A 16%
BBB 3%
NR 13%
Other 1%
bar chart:
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.0665
Dec 0.0665
Jan 0.0665
Feb 0.0665
Mar 0.0665
Apr 0.0665
May 0.0665
Jun 0.0685
Jul 0.0685
Aug 0.0685
Sep 0.07
Oct 0.07
line chart:
SHARE PRICE PERFORMANCE
11/1/00 12.31
12.13
12.13
12.31
12.5
12.81
13.13
13
13.63
13.38
13.56
13.69
13.75
13.67
13.52
13.3
13.45
13.51
13.17
13.09
13
13.09
13.12
13.06
12.99
13.22
13.06
13.1
12.88
13.05
13.32
13.25
13.2
13.48
13.59
13.38
13.39
13.45
13.4
13.8
13.59
13.71
13.89
13.8
13.74
12.75
13.5
13.62
13.5
13.57
10/31/01 13.6
Weekly Closing Price
Past performance is not predictive of future results.
PORTFOLIO STATISTICS
---------------------------------------------------
Share Price $13.75
---------------------------------------------------
Net Asset Value $14.22
---------------------------------------------------
Market Yield 6.11%
---------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.79%
---------------------------------------------------
Fund Net Assets ($000) $953,389
---------------------------------------------------
Average Effective Maturity (Years) 17.60
---------------------------------------------------
Leverage-Adjusted Duration 9.22
---------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 2/93)
---------------------------------------------------
ON SHARE PRICE ON NAV
---------------------------------------------------
1-Year 18.68% 11.28%
---------------------------------------------------
5-Year 8.01% 6.15%
---------------------------------------------------
Since Inception 5.34% 6.11%
---------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
---------------------------------------------------
Utilities 17%
---------------------------------------------------
Housing/Multifamily 15%
---------------------------------------------------
U.S.Guaranteed 13%
---------------------------------------------------
Healthcare 11%
---------------------------------------------------
Tax Obligation/General 11%
---------------------------------------------------
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%.
Shareholder
MEETING REPORT
The annual shareholder meeting was held on August 1, 2001, at the Northern Trust
Bank, Chicago, Illinois.
NPI
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares
Shares Series-M Series-M2 Series-T Series-W Series-TH Series-F
====================================================================================================================================
Robert P. Bremner
For 51,105,936 2,733 1,903 2,729 2,708 2,808 2,258
Withhold 657,026 12 -- 12 1 -- 5
------------------------------------------------------------------------------------------------------------------------------------
Total 51,762,962 2,745 1,903 2,741 2,709 2,808 2,263
====================================================================================================================================
Lawrence H. Brown
For 51,112,793 2,735 1,903 2,729 2,708 2,808 2,258
Withhold 650,169 10 -- 12 1 -- 5
------------------------------------------------------------------------------------------------------------------------------------
Total 51,762,962 2,745 1,903 2,741 2,709 2,808 2,263
====================================================================================================================================
Anne E. Impellizzeri
For 51,088,883 2,733 1,903 2,729 2,708 2,807 2,255
Withhold 674,079 12 -- 12 1 1 8
------------------------------------------------------------------------------------------------------------------------------------
Total 51,762,962 2,745 1,903 2,741 2,709 2,808 2,263
====================================================================================================================================
Peter R. Sawers
For 51,094,688 2,735 1,903 2,729 2,708 2,807 2,255
Withhold 668,274 10 -- 12 1 1 8
------------------------------------------------------------------------------------------------------------------------------------
Total 51,762,962 2,745 1,903 2,741 2,709 2,808 2,263
====================================================================================================================================
William J. Schneider
For -- 2,735 1,903 2,729 2,708 2,808 2,258
Withhold -- 10 -- 12 1 -- 5
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,745 1,903 2,741 2,709 2,808 2,263
====================================================================================================================================
Judith M. Stockdale
For 51,107,911 2,733 1,903 2,729 2,708 2,807 2,258
Withhold 655,051 12 -- 12 1 1 5
------------------------------------------------------------------------------------------------------------------------------------
Total 51,762,962 2,745 1,903 2,741 2,709 2,808 2,263
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,733 1,903 2,729 2,708 2,808 2,258
Withhold -- 12 -- 12 1 -- 5
------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,745 1,903 2,741 2,709 2,808 2,263
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 51,129,893 2,735 1,903 2,736 2,709 2,808 2,254
Against 210,528 2 -- -- -- -- 6
Abstain 422,541 8 -- 5 -- -- 3
------------------------------------------------------------------------------------------------------------------------------------
Total 51,762,962 2,745 1,903 2,741 2,709 2,808 2,263
====================================================================================================================================
NPM
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F Series-F2
====================================================================================================================================
Robert P. Bremner
For 31,994,214 1,832 2,543 1,556 1,943 1,773 1,831
Withhold 301,125 -- -- -- -- -- 20
------------------------------------------------------------------------------------------------------------------------------------
Total 32,295,339 1,832 2,543 1,556 1,943 1,773 1,851
====================================================================================================================================
Lawrence H. Brown
For 32,015,341 1,832 2,543 1,556 1,943 1,773 1,831
Withhold 279,998 -- -- -- -- -- 20
------------------------------------------------------------------------------------------------------------------------------------
Total 32,295,339 1,832 2,543 1,556 1,943 1,773 1,851
====================================================================================================================================
Anne E. Impellizzeri
For 31,988,482 1,832 2,543 1,556 1,943 1,773 1,831
Withhold 306,857 -- -- -- -- -- 20
------------------------------------------------------------------------------------------------------------------------------------
Total 32,295,339 1,832 2,543 1,556 1,943 1,773 1,851
====================================================================================================================================
Peter R. Sawers
For 31,992,423 1,832 2,543 1,556 1,943 1,773 1,831
Withhold 302,916 -- -- -- -- -- 20
------------------------------------------------------------------------------------------------------------------------------------
Total 32,295,339 1,832 2,543 1,556 1,943 1,773 1,851
====================================================================================================================================
William J. Schneider
For -- 1,832 2,543 1,556 1,943 1,773 1,831
Withhold -- -- -- -- -- -- 20
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,832 2,543 1,556 1,943 1,773 1,851
====================================================================================================================================
Judith M. Stockdale
For 31,998,160 1,832 2,543 1,556 1,943 1,773 1,831
Withhold 297,179 -- -- -- -- -- 20
------------------------------------------------------------------------------------------------------------------------------------
Total 32,295,339 1,832 2,543 1,556 1,943 1,773 1,851
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,832 2,543 1,556 1,943 1,773 1,831
Withhold -- -- -- -- -- -- 20
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,832 2,543 1,556 1,943 1,773 1,851
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 31,948,045 1,832 2,541 1,556 1,943 1,772 1,831
Against 96,559 -- 2 -- -- 1 20
Abstain 250,735 -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,295,339 1,832 2,543 1,556 1,943 1,773 1,851
====================================================================================================================================
Shareholder MEETING REPORT (continued)
NPT
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-T2 Series-W Series-W2 Series-TH Series-F Series-F2
====================================================================================================================================
Robert P. Bremner
For 37,769,905 1,860 1,350 951 1,506 490 2,294 1,554 1,230
Withhold 331,236 1 -- -- -- -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,101,141 1,861 1,350 951 1,506 490 2,301 1,554 1,230
====================================================================================================================================
Lawrence H. Brown
For 37,782,836 1,860 1,350 951 1,506 490 2,294 1,554 1,230
Withhold 318,305 1 -- -- -- -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,101,141 1,861 1,350 951 1,506 490 2,301 1,554 1,230
====================================================================================================================================
Anne E. Impellizzeri
For 37,751,583 1,860 1,350 951 1,506 490 2,294 1,554 1,230
Withhold 349,558 1 -- -- -- -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,101,141 1,861 1,350 951 1,506 490 2,301 1,554 1,230
====================================================================================================================================
Peter R. Sawers
For 37,779,690 1,860 1,350 951 1,506 490 2,294 1,554 1,230
Withhold 321,451 1 -- -- -- -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,101,141 1,861 1,350 951 1,506 490 2,301 1,554 1,230
====================================================================================================================================
William J. Schneider
For -- 1,860 1,350 951 1,506 490 2,294 1,554 1,230
Withhold -- 1 -- -- -- -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,861 1,350 951 1,506 490 2,301 1,554 1,230
====================================================================================================================================
Judith M. Stockdale
For 37,752,308 1,860 1,350 951 1,506 490 2,294 1,554 1,230
Withhold 348,833 1 -- -- -- -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,101,141 1,861 1,350 951 1,506 490 2,301 1,554 1,230
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,860 1,350 951 1,506 490 2,294 1,554 1,230
Withhold -- 1 -- -- -- -- 7 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,861 1,350 951 1,506 490 2,301 1,554 1,230
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 37,743,374 1,859 1,349 935 1,498 490 2,294 1,554 1,229
Against 129,972 2 -- -- -- -- 5 -- --
Abstain 227,795 -- 1 16 8 -- 2 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total 38,101,141 1,861 1,350 951 1,506 490 2,301 1,554 1,230
====================================================================================================================================
Report of
INDEPENDENT AUDITORS
THE BOARDS 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 net assets, 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, 2001, and the related statements of operations,
changes in net assets and the financial highlights for the years indicated
therein. 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. Our procedures included confirmation of investments
owned as of October 31, 2001, by correspondence with the custodian and brokers
or alternative procedures when broker confirmations were not readily available.
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, 2001,
and the results of their operations, changes in their net assets and financial
highlights for the years indicated therein in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
December 10, 2001
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.6%
$ 9,050 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, 6/10 at 102 Aa1 $ 9,743,411
Series 2000, 6.125%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.7%
10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100 Aa3 10,772,000
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.6%
9,225 The Industrial Development Authority of the County of Pima, Arizona, 1/02 at 103 AAA 9,581,177
Industrial Development Lease Obligation Refunding Revenue Bonds
(Irvington Project), 1988 Series A, 7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.7%
3,500 Arkansas Development Finance Authority, Drivers License Revenue Bonds 6/07 at 100 AAA 3,616,340
(Arkansas State Police - Headquarters and Wireless Data Equipment),
Series 1997, 5.400%, 6/01/18
580 City of Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100 AAA 613,083
Series 2000, 5.650%, 12/01/25
1,000 Sebastian County, Arkansas, Community Junior College District, General 4/09 at 100 AAA 1,081,170
Obligation Improvement Bonds, Series 1999, 5.950%, 4/01/29
5,245 Board of Trustees of the University of Arkansas, Athletic Facilities 9/09 at 100 Aaa 5,308,202
Revenue Bonds (Razorback Stadium Project), Series 1999, 5.050%, 9/15/20
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 7.9%
10,250 State of California, General Obligation Veterans Welfare Bonds, 12/08 at 101 AAA 10,797,658
Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax)
23,725 State Public Works Board of California, Lease Revenue Refunding Bonds 6/03 at 102 Aa2 24,315,753
(The Regents of the University of California), 1993 Series A (Various
University of California Projects), 5.500%, 6/01/21
11,395 State Public Works Board of California, Lease Revenue Bonds No Opt. Call A1 12,684,572
(Department of Corrections), 1993 Series E (California State Prison -
Madera County II), 5.500%, 6/01/15
15,420 Los Angeles Convention and Exhibition Center Authority, California, 8/03 at 102 AAA 16,089,382
Lease Revenue Bonds, 1993 Refunding Series A, 5.375%, 8/15/18
1,285 City of Martinez, California, Home Mortgage Revenue Bonds, 1983 Issue A, No Opt. Call AAA 1,916,231
10.750%, 2/01/16
4,125 Redevelopment Agency of the City of Moorpark, California, 1993 Tax 10/03 at 102 N/R*** 4,515,720
Allocation Bonds (Moorpark Redevelopment Project), 6.125%, 10/01/18
(Pre-refunded to 10/01/03)
20,000 City of Pomona, California, Single Family Mortgage Revenue Refunding No Opt. Call AAA 26,235,000
Bonds (GNMA and FNMA Mortgage-Backed Securities), Series 1990A,
7.600%, 5/01/23
3,000 Sacramento Municipal Utility District, California, Electric Revenue 11/03 at 102 AAA 3,064,980
Refunding Bonds, 1993 Series D, 5.250%, 11/15/20
San Bernardino Joint Powers Financing Authority, California, Tax Allocation
Refunding Bonds, Series 1995A:
6,675 5.750%, 10/01/15 10/05 at 102 AAA 7,335,291
10,000 5.750%, 10/01/25 10/05 at 102 AAA 10,809,000
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.0%
2,890 Colorado Housing and Finance Authority, Senior Single Family Program 4/10 at 105 AA 3,313,963
Bonds, 2000 Series B-2, 7.250%, 10/01/31 (Alternative Minimum Tax)
4,680 Colorado Housing and Finance Authority, Senior Bonds (Single Family 5/07 at 105 Aa2 4,929,772
Program), 1997 Series B-2, 7.000%, 5/01/26 (Alternative Minimum Tax)
2,955 Colorado Housing and Finance Authority, Senior Bonds (Single Family 11/07 at 105 Aa2 3,230,022
Program), 1997 Series C-2, 6.875%, 11/01/28 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
9,450 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 11,806,452
1,725 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,763,192
6,590 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 A*** 6,735,573
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
$ 715 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa $ 766,058
2,785 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 2,955,108
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
1,830 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,951,713
6,870 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 7,254,789
19,810 City and County of Denver, Colorado, Excise Tax Revenue Bonds 3/11 at 100 AAA 21,002,562
(Colorado Convention Center Project), Series 2001A, 5.500%, 9/01/18
13,505 City and County of Denver, Colorado, Special Facilities Airport Revenue 10/02 at 102 BB- 9,295,086
Bonds (United Air Lines Inc. Project), Series 1992A, 6.875%, 10/01/32
(Alternative Minimum Tax)
368 El Paso County, Colorado, Single Family Mortgage Revenue Tax-Exempt No Opt. Call 398,977
Refunding Bonds, Series 1992A (Class A-2), 8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.1%
1,930 State of Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,159,149
5.500%, 12/15/16
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.1%
9,505 District of Columbia, Washington, D.C., General Obligation Bonds, No Opt. Call AAA 10,979,701
Series 1998B, 6.000%, 6/01/20
14,800 District of Columbia Housing Finance Agency, Collateralized Single 12/04 at 103 AAA 15,337,388
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 AAA 10,606,473
Colleges Issue), Series 1997A, 5.375%, 2/15/27
16,665 District of Columbia, University Revenue Bonds (Georgetown University 4/11 at 29 7/32 AAA 2,924,208
Issue), Series 2001A, 0.000%, 4/01/32
5,370 District of Columbia, Tobacco Settlement Financing Corporation, Tobacco No Opt. Call A1 6,025,409
Settlement Asset-Backed Bonds, Series 2001, 6.500%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.0%
9,290 Department of Transportation, State of Florida, Right-of-Way Acquisition 7/05 at 101 AAA 10,326,207
and Bridge Construction Bonds (Full Faith and Credit), Series 1995,
5.800%, 7/01/21 (Pre-refunded to 7/01/05)
5,000 Health Facilities Authority, Orange County, Florida, Hospital Revenue 11/10 at 101 A- 5,358,850
Bonds (Adventist Health System/Sunbelt Obligated Group), Series 2000,
6.500%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
4,560 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue No Opt. Call AAA 5,428,498
Bonds, Refunding Series P, 6.250%, 7/01/20
2,750 Savannah Housing Authority, Georgia, GNMA Collateralized Mortgage 5/08 at 103 Aaa 2,926,220
Revenue Bonds (Plantation Oak), Refunding Series 2000, 6.350%, 11/20/39
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, Series 2000, 9/10 at 100 Aaa 5,163,750
5.500%, 9/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 7.6%
10,000 City of Chicago, Illinois, General Obligation Bonds, Project and Refunding 1/11 at 101 AAA 9,870,800
Series 2001A, 5.000%, 1/01/31
9,220 Chicago School Reform Board of Trustees of the Board of Education, 12/07 at 102 AAA 9,359,038
Illinois, Dedicated Tax Revenue Bonds (General Obligation - Unlimited
Tax), Series 1997A, 5.250%, 12/01/27
9,000 City of Chicago, Illinois, Chicago O'Hare International Airport, Special No Opt. Call B2 6,338,700
Facility Revenue Bonds (United Air Lines, Inc. Project), Series 2001A,
6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13)
6,280 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/04 at 102 AAA 6,280,754
General Airport Second Lien Revenue Refunding Bonds, 1993 Series C,
5.000%, 1/01/18
2,885 City of Chicago, Illinois, Collateralized Single Family Mortgage Revenue 3/06 at 105 Aaa 3,236,278
Bonds, Series 1996-A, 7.000%, 9/01/27 (Alternative Minimum Tax)
5,710 City of Chicago, Illinois, Collateralized Single Family Mortgage Revenue 9/07 at 105 Aaa 6,175,708
Bonds, Series 1997-B, 6.950%, 9/01/28 (Alternative Minimum Tax)
5,650 The County of Cook, Illinois, General Obligation Bonds, Series 1993A, 11/03 at 100 AAA 5,616,270
5.000%, 11/15/23
8,740 Illinois Development Finance Authority, Pollution Control Refunding 2/04 at 102 AAA 8,989,440
Revenue Bonds (Illinois Power Company Project), 1994 Series A,
5.700%, 2/01/24
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 8,500 Illinois Educational Facilities Authority, Revenue Refunding Bonds 7/03 at 102 Aa1 $ 8,693,715
(The University of Chicago), Series 1993B, 5.600%, 7/01/24
5,015 Illinois Health Facilities Authority, Revenue Bonds (Highland Park 10/02 at 102 AAA 5,299,702
Hospital Project), Series 1992, 6.200%, 10/01/22
1,500 Illinois Health Facilities Authority, Revenue Bonds (Highland Park 10/07 at 102 AAA 1,712,445
Hospital Project), Series 1997A, 5.750%, 10/01/26
13,545 Illinois Health Facilities Authority, Revenue Bonds (Sherman Health 8/07 at 101 AAA 13,372,437
Systems), Series 1997, 5.250%, 8/01/27
5,000 Illinois Health Facilities Authority, Revenue Bonds (Edward Hospital 2/11 at 101 AAA 5,013,000
Obligation Group), Series 2001B, 5.250%, 2/15/34
9,200 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place 12/09 at 101 AAA 9,593,208
Expansion Project Bonds, Series 1999A, 5.500%, 12/15/24
3,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick Place No Opt. Call AAA 3,888,150
Hospitality Facilities Revenue Bonds, Series 1996A, 7.000%, 7/01/26
4,925 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry No Opt. Call AAA 6,103,897
and Will Counties, Illinois, General Obligation Bonds, Series 1992A,
9.000%, 6/01/06
785 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry No Opt. Call AAA 972,905
and Will Counties, Illinois, General Obligation Bonds, Series 1992B,
9.000%, 6/01/06
3,000 Upper Illinois River Valley Development Authority, Healthcare Facilities 12/11 at 101 BBB+ 3,112,260
Revenue Bonds (Morris Hospital), Series 2001, 6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.9%
4,300 Indiana State Office Building Commission, Correctional Facilities Program 7/05 at 102 AAA 4,422,808
Revenue Bonds, Series 1995A, 5.500%, 7/01/20
8,000 Metropolitan School District of Steuben County, Indiana, First Mortgage 7/05 at 102 AAA 9,130,240
Bonds (Middle School Building Corporation), Series 1995,
6.375%, 7/15/16 (Pre-refunded to 7/15/05)
7,965 Wawasee Community School Corporation, Indiana, First Mortgage Bonds 1/12 at 101 AA- 8,532,188
(New Elementary and Remodeling Building Corporation), Series 2000,
5.750%, 1/15/20
5,300 Whitley County, Columbia City, Indiana, First Mortgage Bonds (Middle 1/04 at 102 AAA 5,818,340
School Building Corporation), Series 1994, 6.250%, 7/15/15
(Pre-refunded to 1/15/04)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.5%
City of Des Moines, Iowa, General Obligation Bonds, Series 2000D:
1,215 5.750%, 6/01/17 6/08 at 100 AAA 1,299,588
1,410 5.800%, 6/01/18 6/08 at 100 AAA 1,507,008
3,000 Iowa Finance Authority, Private College Refunding Revenue Bonds 12/05 at 102 AAA 3,119,670
(Drake University Project), Series 1996, 5.400%, 12/01/16
5,140 Iowa Finance Authority, Variable Rate Demand Industrial Revenue 7/14 at 100 AAA 7,212,962
Refunding Bonds (Urbandale Hotel Corporation Project), 1989 Series A
(Remarketed), 8.500%, 8/01/16 (Alternative Minimum Tax)
(Pre-refunded to 7/15/14)
Iowa Finance Authority, GNMA Guaranteed Mortgage Revenue Bonds
(Abbey Healthcare), Series 2001:
2,795 6.150%, 9/20/31 (WI, settling 12/21/01) 9/10 at 103 1/2 Aaa 3,048,059
5,655 6.250%, 9/20/42 (WI, settling 12/21/01) 9/10 at 103 1/2 Aaa 6,206,419
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4%
6,000 Sedgwick County, Kansas and Shawnee County, Kansas, Single Family 6/08 at 105 Aaa 6,707,280
Mortgage Revenue Bonds (Mortgaged-Backed Securities Program),
1998 Series A1, 6.500%, 12/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.8%
2,785 Louisiana Housing Finance Agency, Single Family Mortgage Revenue Bonds 9/09 at 101 Aaa 3,222,384
(Home Ownership Program), 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 AAA 13,521,230
Series 1995-B, 6.375%, 7/01/25
7,660 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 9,791,548
Revenue Bonds (Comm-Care Corporation Project), Series 1994,
11.000%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.3%
3,600 Housing Opportunities Commission of Montgomery County, Maryland, 7/10 at 100 Aaa 3,828,672
Multifamily Housing Development Bonds, Series 2000B, 6.200%,
7/01/30 (Alternative Minimum Tax)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.7%
$ 10,000 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100 AAA $ 10,191,000
2000 Series A, 5.250%, 7/01/30
13,000 The Commonwealth of Massachusetts, General Obligation Bonds 6/10 at 100 Aa2*** 15,113,670
(Consolidated Loan of 2000), Series B, 6.000%, 6/01/16
(Pre-refunded to 6/01/10)
4,790 Massachusetts Development Finance Agency, Assisted Living Facility 9/10 at 105 AAA 5,788,955
Revenue Bonds (The Monastery at West Springfield Project) (GNMA
Collateralized), Series 1999A, 7.625%, 3/20/41 (Alternative Minimum Tax)
2,795 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 1/02 at 103 N/R 2,885,306
Bonds (Semass Project), Series 1991B, 9.250%, 7/01/15
(Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 12/08 at 102 BBB 2,834,294
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 AAA 15,021,843
(Suffolk University), Series 1997, 5.250%, 7/01/27
8,750 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue 1/11 at 100 AAA 8,994,038
Bonds, Series 2001A, 5.850%, 7/01/35 (Alternative Minimum Tax)
8,800 Massachusetts Water Resources Authority, General Revenue Bonds, 7/02 at 100 Aaa 9,016,040
1992 Series A, 5.500%, 7/15/22 (Pre-refunded to 7/15/02)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.3%
4,000 School District of the City of Detroit, Wayne County, Michigan, School 5/03 at 102 AAA 4,127,280
Building and Site Improvement and Refunding Bonds (General
Obligation - Unlimited Tax), Series 1993, 5.400%, 5/01/13
10,550 City of Detroit, Michigan, Sewage Disposal System Revenue Refunding 7/05 at 100 AAA 10,527,529
Bonds, Series 1995-B, 5.000%, 7/01/25
Hudsonville Public Schools, Counties of Ottawa and Allegan,
Michigan, 1997 School Building and Site and Refunding Bonds
(General Obligation - Unlimited Tax):
10,510 5.150%, 5/01/22 5/08 at 100 AAA 10,620,986
8,045 5.150%, 5/01/27 5/08 at 100 AAA 8,111,291
9,625 Livonia Public School District, County of Wayne, Michigan, 1993 5/03 at 102 AAA 9,828,858
Refunding Bonds (General Obligation - Unlimited Tax), 5.500%, 5/01/21
6,600 Michigan State Housing Development Authority, Limited Obligation 7/07 at 102 AAA 6,718,008
Multifamily Mortgage Revenue Refunding Bonds (Forest Hills Regency
Square Project), Series 1999A, 5.750%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.6%
City of Eden Prairie, Minnesota, Multifamily Housing Revenue
Bonds (GNMA Collateralized Mortgage Loan - Rolling Hills
Project), Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105 Aaa 1,104,680
2,000 6.200%, 2/20/43 8/11 at 105 Aaa 2,216,980
2,310 The Minneapolis/St. Paul Housing Finance Board, Minnesota, Single 11/04 at 102 AAA 2,419,194
Family Mortgage Revenue Bonds (Minneapolis/St. Paul Family Housing
Program, Phase X, FNMA and GNMA Mortgage-Backed Securities
Program), Series 1994, 7.500%, 11/01/27 (Alternative Minimum Tax)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/08 at 101 AAA 2,975,340
Airport Revenue Bonds, Series 1998A, 5.000%, 1/01/22
5,000 Minnesota Agricultural and Economic Development Board, Healthcare 11/07 at 102 AAA 5,271,000
System Revenue Bonds (Fairview Hospital and Healthcare Services),
Series 1997A, 5.750%, 11/15/26
20,310 The Housing and Redevelopment Authority of the City of St. Paul, 11/15 at 103 AAA 25,205,116
Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center Project),
Series 1996, 7.100%, 11/01/23
211 Housing and Redevelopment Authority of the City of St. Paul, Minnesota, No Opt. Call Aaa 224,388
Single Family Mortgage Revenue Bonds, Refunding Series 1991-B,
7.250%, 9/01/11
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.7%
6,590 Missouri Housing Development Commission, Single Family Mortgage 3/07 at 105 AAA 7,279,907
Revenue Bonds (Homeownership Loan Program), 1996 Series C,
7.450%, 9/01/27 (Alternative Minimum Tax)
Health and Educational Facilities Authority, Missouri, Revenue
Bonds (SSM Health Care), Series 2001A:
3,000 5.250%, 6/01/21 6/11 at 101 AAA 3,067,110
14,150 5.250%, 6/01/28 6/11 at 101 AAA 14,380,362
16,085 Missouri Housing Development Commission, Single Family Mortgage 3/09 at 103 AAA 17,599,564
Revenue Bonds (Homeownership Loan Program), 1999 Series B-1,
6.700%, 9/01/30 (Alternative Minimum Tax)
11,120 Francis Howell School District, St. Charles County, Missouri, General No Opt. Call AAA 13,296,295
Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.9%
$ 15,000 Southern Nevada Water Authority, Clark County, Nevada, General 6/11 at 100 AAA $ 15,299,250
Obligation Bond Bank Loan, Series 2001, 5.250%, 6/01/26
14,810 Clark County School District, Nevada, General Obligation Bonds, No Opt. Call AAA 15,699,637
Series 2001F, 5.500%, 6/15/18
12,000 Director of the State of Nevada, Department of Business and Industry, 1/10 at 100 AAA 12,245,400
Revenue Bonds (Las Vegas Monorail Project), 1st Tier Series 2000,
5.375%, 1/01/40
29,410 Colorado River Commission, State of Nevada, Revenue Supported Bonds 7/04 at 101 AA 30,134,368
(General Obligation - Limited Tax), Series 1994, 5.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.5%
9,115 New Hampshire Housing Finance Authority, Single Family Mortgage 7/03 at 102 Aa3 9,284,630
Revenue Bonds, 1993 Series B, 6.050%, 7/01/25
6,500 Business Finance Authority of the State of New Hampshire, Pollution 10/03 at 102 A3 6,536,790
Control Refunding Revenue Bonds (The United Illuminating Company
Project), 1993 Series A, 5.875%, 10/01/33
6,120 New Hampshire Housing Finance Authority, Single Family Mortgage 7/06 at 102 Aa2 6,475,082
Acquisition Revenue Bonds, 1996 Series B, 6.400%, 1/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.4%
10,000 Delaware River Port Authority, New Jersey and Pennsylvania, Port 1/10 at 100 AAA 10,645,100
District Project Bonds, 1999 Series B, 5.625%, 1/01/26
10,000 The Essex County Improvement Authority, New Jersey, General 10/10 at 100 Aaa 11,134,000
Obligation Guaranteed Lease Revenue Bonds (County Correctional
Facility Project), Series 2000, 6.000%, 10/01/25
15,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/07 at 101 1/2 AAA 15,756,450
Revenue Bonds, 1997 Series U, 5.850%, 4/01/29
(Alternative Minimum Tax)
11,500 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 2000A, No Opt. Call AAA 13,425,560
6.000%, 1/01/14
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8%
2,385 New Mexico Mortgage Finance Authority, Single Family Mortgage 7/02 at 102 AAA 2,448,846
Purchase Refunding Senior Bonds, 1992 Series A-2, 6.900%, 7/01/24
2,760 Mew Mexico Mortgage Finance Authority, Single Family Mortgage 3/10 at 102 1/2 AAA 3,170,660
Program Bonds, 2000 Series D-2, 6.850%, 9/01/31
(Alternative Minimum Tax)
5,585 Santa Fe County, New Mexico, Correctional System Revenue Bonds, No Opt. Call AAA 6,544,671
Series 1997, 6.000%, 2/01/27
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.4%
15,500 Erie Tobacco Asset Securitization Corporation, New York, Tobacco 7/10 at 101 A1 16,537,880
Settlement Asset-Backed Bonds, Series 2000 (Senior), 6.250%, 7/15/40
13,700 Long Island Power Authority, New York, Electric System General 6/08 at 101 A- 13,779,323
Revenue Bonds, Series 1998A, 5.250%, 12/01/26
10,000 New York Counties Tobacco Trust I, Tobacco Settlement Pass-through 6/10 at 101 A1 10,922,000
Bonds, Series 2000, 6.500%, 6/01/35
10,000 The City of New York, New York, General Obligation Bonds, Fiscal 1996 2/06 at 101 1/2 A 10,929,200
Series G, 5.750%, 2/01/07
The City of New York, New York, General Obligation Bonds, Fiscal
1997 Series G:
100 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 Aaa 116,521
5,900 6.000%, 10/15/26 10/07 at 101 A 6,274,237
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series B:
6,020 9.500%, 6/01/03 No Opt. Call A*** 6,701,464
1,480 9.500%, 6/01/03 No Opt. Call A 1,633,802
16,000 New York City, New York, Municipal Water Finance Authority, Water and 6/06 at 101 AAA 17,569,760
Sewer System Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26
2,000 Dormitory Authority of the State of New York, Revenue Bonds 7/06 at 102 AAA 2,059,960
(Department of Health Issue), Series 1996, 5.500%, 7/01/25
4,000 New York State Energy Research and Development Authority, Facilities 3/03 at 102 A+ 4,119,840
Revenue Bonds (Consolidated Edison Company of New York, Inc.
Project), Series 1993A, 6.000%, 3/15/28 (Alternative Minimum Tax)
4,310 New York State Medical Care Facilities Finance Agency, Hospital and 2/04 at 102 AAA 4,603,683
Nursing Home FHA-Insured Mortgage Revenue Bonds, 1993 Series B,
5.500%, 2/15/22
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.8%
9,650 Dickinson, North Dakota, Healthcare Facilities Revenue Bonds (BHS Long 2/10 at 102 AA 11,460,726
Term Care Inc.), Series 1990, 7.625%, 2/15/20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.8%
$ 4,265 County of Franklin, Ohio, Hospital Improvement Revenue Bonds (The 5/11 at 101 Aaa $ 4,420,630
Children's Hospital Project), Series 2001, 5.500%, 5/01/28
12,360 State of Ohio, Turnpike Revenue Bonds (Issued by the Ohio Turnpike 2/04 at 102 Aaa 13,457,939
Commission), 1994 Series A, 5.750%, 2/15/24 (Pre-refunded to 2/15/04)
2,000 County of Richland, Ohio, Hospital Facilities Revenue Refunding Bonds 11/10 at 101 A- 2,126,000
(MedCentral Health System Obligated Group), Series 2000A,
6.125%, 11/15/16
7,000 City of Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100 A3 7,464,870
Improvement Bonds (Trinity Health System), Series 2000,
6.500%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.5%
12,875 Allegheny County Hospital Development Authority, Pennsylvania, Health 11/02 at 100 AAA 13,408,154
Center Revenue Bonds (Presbyterian University Health System, Inc.
Project), Series 1992A, 6.250%, 11/01/23 (Pre-refunded to 11/01/02)
14,650 Delaware Valley Regional Finance Authority, Counties of Bucks, Chester, No Opt. Call AAA 16,018,457
Delaware and Montgomery, Pennsylvania, Local Government Revenue
Bonds, 1998 Series A, 5.500%, 8/01/28
10,000 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue 10/03 at 102 AA+ 10,197,700
Bonds, Series 1993-37A, 5.450%, 10/01/17
8,405 Redevelopment Authority of the City of Philadelphia, Pennsylvania, 4/08 at 103 N/R 7,939,615
Multifamily Housing Mortgage Revenue Bonds (Cricket Court Commons
Project), Series 1998A, 6.200%, 4/01/25 (Alternative Minimum Tax)
5,295 The School District of Philadelphia, Pennsylvania, General Obligation 9/05 at 101 AAA 5,451,203
Bonds, Series 1995B, 5.500%, 9/01/25
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4%
5,250 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series X, 7/05 at 100 A- 5,365,658
5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.7%
10,000 Rhode Island Housing and Mortgage Finance Corporation, Homeownership 10/09 at 100 AA+ 10,264,800
Opportunity Bonds, Series 35-A, 5.800%, 10/01/32 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.9%
12,500 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101 A1 13,370,875
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 11.2%
10,305 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue Bonds 12/01 at 101 BB 10,045,314
(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 Aaa 3,789,948
Bonds (GNMA Collateralized Mortgage Loan - Fairway Village Project),
Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax)
5,025 Clear Creek Independent School District, Galveston and Harris Counties, 2/10 at 100 AAA 5,587,197
Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000,
6.000%, 2/15/16
2,925 Harlingen Housing Finance Corporation, Texas, Single Family Mortgage 9/10 at 105 AAA 3,249,675
Revenue Bonds, Series 2000A, 6.700%, 9/01/33 (Alternative
Minimum Tax)
20,000 Houston Sports Authority, Harris County, Texas, Junior Lien Revenue 11/11 at 100 AAA 20,162,600
Refunding Bonds, Series 2001B, 5.250%, 11/15/40
15,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds, 8/04 at 102 AAA 15,670,350
Series 1994, 5.300%, 8/15/13
Harris County Hospital District, Texas, Refunding Revenue Bonds,
Series 1990:
4,205 7.400%, 2/15/10 No Opt. Call AAA 4,925,863
6,670 7.400%, 2/15/10 No Opt. Call AAA 7,948,973
15,000 Housing Finance Corporation, Harris County, Texas, Multifamily Housing 12/10 at 105 N/R 15,526,500
Bonds (Coolwood Oaks and Haverstock Hill Apartments), Series A,
8.250%, 12/01/31
19,125 Harris County, Texas, Hospital District, Refunding Revenue Bonds, 8/10 at 100 AAA 21,150,529
Series 2000, 6.000%, 2/15/15
1,343 Heart of Texas Housing Finance Corporation, Multifamily Housing 9/10 at 105 Aaa 1,547,270
Revenue Bonds (GNMA Collateralized Mortgage Loan - 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 AAA 6,417,300
Series 2001B, 5.500%, 3/01/15 (WI, settling 12/13/01)
9,250 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, 7/10 at 100 AAA 9,554,973
Series 2000B, 5.500%, 7/01/30
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,000 Health Facilities Development Corporation, Tarrant County, Texas, Hospital 11/10 at 101 A- $ 4,247,240
Revenue Bonds (Adventist Health System/Sunbelt Obligated Group),
Series 2000, 6.700%, 11/15/30
12,020 Health Facilities Development Corporation, Tarrant County, Texas, 12/10 at 105 Aaa 14,548,046
Mortgage Revenue Bonds (GNMA Collateralized Mortgage Loan -
Eastview Nursing Home, Ebony Lake Nursing Center, Ft. Stockton
Nursing Center, Lynnhaven Nursing Center and Mission Oaks Manor),
Series 2000A-1, 7.625%, 12/20/32
10,000 Board of Regents of the Texas A&M University, Texas, Revenue Financing 5/09 at 100 AAA 10,390,700
System Bonds, Series 1999, 5.550%, 5/15/29
13,030 Texas Department of Housing and Community Affairs, Residential 1/09 at 101 AAA 12,983,483
Mortgage Revenue Bonds, Series 1998A, 5.350%, 7/01/30 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.5%
7,450 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1997 7/07 at 101 1/2 AAA 7,653,609
Series F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.9%
12,510 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 9, 6/07 at 101 1/2 AAA 12,916,325
5.900%, 5/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.4%
5,000 City of Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100 N/R 5,048,950
Residential Rental Housing Revenue Bonds (Mayfair I and Mayfair II
Apartments Project), Series 1999, 7.500%, 10/01/39
1,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 100 AA+ 1,003,800
Bonds, 1987 Series C (Subseries C-7), 8.375%, 1/01/28 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.4%
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 AA 11,926,498
(Mandatory put 7/01/24)
8,000 5.650%, 7/01/32 (Alternative Minimum Tax) (Optional put 7/01/09) 7/07 at 102 AA 8,061,120
(Mandatory put 7/01/27)
5,000 Snohomish County, Washington, General Obligation - Limited Tax Bonds, 12/11 at 100 AAA 5,080,000
Series 2001, 5.250%, 12/01/26
6,360 Public Utility District No. 1 of Snohomish County, Washington, 1/03 at 100 AAA 6,524,788
Generation System Revenue Bonds, Series 1993, 5.500%, 1/01/14
4,750 Washington Healthcare Facilities Authority, Revenue Bonds (Swedish 11/08 at 101 Aaa 4,731,713
Health Services), Series 1998, 5.125%, 11/15/22
11,000 Washington Healthcare Facilities Authority, Revenue Bonds (Harrison 8/13 at 102 AAA 10,681,440
Memorial Hospital), Series 1998, 5.000%, 8/15/28
12,950 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 AAA 13,412,056
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
29,870 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 AAA 31,501,798
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1993A:
10,775 5.750%, 7/01/12 (Pre-refunded to 7/01/03) 7/03 at 102 Aa1*** 11,598,533
3,665 5.750%, 7/01/12 7/03 at 102 Aa1 3,819,150
6,770 Washington Public Power Supply System, Nuclear Project No. 2 7/03 at 102 Aa1*** 7,273,683
Refunding Revenue Bonds, Series 1993B, 5.625%, 7/01/12
(Pre-refunded to 7/01/03)
14,500 Washington Public Power Supply System, Nuclear Project No. 2 7/08 at 102 Aa1 15,178,890
Refunding Revenue Bonds, Series 1998A, 5.000%, 7/01/12
22,880 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102 Aa1 23,716,950
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
9,350 Washington Public Power Supply System, Nuclear Project No. 3 7/07 at 102 Aa1 9,662,010
Refunding Revenue Bonds, Series 1997A, 5.250%, 7/01/15
7,775 Washington Public Power Supply System, Nuclear Project No. 3 7/08 at 102 Aa1 7,861,220
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.0%
$ 15,000 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 102 AAA $ 15,405,900
1992 Series D, 7.050%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
$ 1,409,381 Total Investments (cost $1,402,180,566) - 98.9% 1,482,733,362
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4%
1,000 Lancaster County Hospital Authority, Nebraska, Health Facilities A-1+ 1,000,000
Revenue Bonds (Immanuel Health System), Variable Rate Demand
Bonds, Series A, 2.050%, 7/01/30+
1,000 Moffat County, Colorado, Pollution Control Revenue Refunding Bonds VMIG-1 1,000,000
(PacifiCorp Projects), Variable Rate Demand Bonds, Series 1994,
2.000%, 5/01/13+
4,175 Nebraska Educational Finance Authority, Revenue Refunding Bonds VMIG-1 4,175,000
(Creighton University Project), Variable Rate Demand Bonds,
Series 2001, 2.000%, 8/01/31+
------------------------------------------------------------------------------------------------------------------------------------
$ 6,175 Total Short-Term Investments (cost $6,175,000) 6,175,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.7% 10,363,875
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,499,272,237
====================================================================================================================
* 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. Securities
are normally considered to be equivalent to AAA
rated securities.
+ 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.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4%
$ 3,500 Anchorage Parking Authority, Alaska, Lease Revenue Refunding Bonds 12/02 at 102 A+*** $ 3,739,995
(5th Avenue Garage Project), Series 1993, 6.750%, 12/01/08
(Pre-refunded to 12/01/02)
295 City of Valdez, Alaska, Home Mortgage Revenue Refunding Bonds, 8/02 at 102 A1 304,077
1992 Series, 7.900%, 2/01/10
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.5%
2,850 The Industrial Development Authority of the County of Maricopa, Arizona, 1/07 at 102 AAA 3,260,315
Multifamily Housing Revenue Bonds (Place Five and the Greenery
Apartments Projects), Series 1996A, 6.625%, 1/01/27
The Industrial Development Authority of the County of Mohave, Arizona,
Hospital System Revenue Refunding Bonds (Medical Environments, Inc.
and Phoenix Baptist Hospital and Medical Center Inc.), Series 1993:
3,965 6.250%, 7/01/03 No Opt. Call Aaa 4,143,465
3,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 3,278,070
9,000 City of Phoenix, Arizona, Wastewater System Lease Revenue Bonds 7/03 at 102 AAA 9,747,450
(Civic Improvement Corporation), Series 1993, 6.125%, 7/01/14
(Pre-refunded to 7/01/03)
4,005 The Industrial Development Authority of the County of Pima, Arizona, 1/02 at 103 AAA 4,159,633
Industrial Development Lease Obligation Refunding Revenue Bonds
(Irvington Project), 1988 Series A, 7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.1%
California Educational Facilities Authority, Revenue Bonds (Loyola
Marymount University), Series 2001A Refunding:
3,255 0.000%, 10/01/23 No Opt. Call Aaa 1,037,629
5,890 0.000%, 10/01/24 No Opt. Call Aaa 1,774,245
7,615 0.000%, 10/01/25 No Opt. Call Aaa 2,171,798
7,710 State of California, General Obligation Veterans Welfare Bonds, 12/08 at 101 AAA 8,121,945
Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax)
State Public Works Board of California, Lease Revenue Bonds (The
Trustees of the California State University), 1992 Series A
(Various California State University Projects):
15,480 6.625%, 10/01/10 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 16,432,949
10,500 6.700%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 11,153,520
7,150 State Public Works Board of California, Lease Revenue Bonds (The 10/04 at 102 A1*** 8,137,058
Trustees of the California State University), 1994 Series A (Various
California State University Projects), 6.375%, 10/01/19
(Pre-refunded to 10/01/04)
17,500 State Public Works Board of California, Lease Revenue Bonds 11/04 at 102 Aaa 20,237,700
(Department of Corrections), 1994 Series A (California State Prison,
Monterey County (Soledad II)), 6.875%, 11/01/14 (Pre-refunded
to 11/01/04)
30,000 Foothill/Eastern Transportation Corridor Agency, California, Toll Road No Opt. Call AAA 11,331,000
Revenue Bonds, Series 1995A, 0.000%, 1/01/21
3,085 Community Redevelopment Financing Authority of the Community 9/02 at 102 Ba1*** 3,245,636
Redevelopment Agency of Los Angeles, California, Pooled Financing
Bonds (Crenshaw Redevelopment Project), Series D, 7.000%, 9/01/14
(Pre-refunded to 9/01/02)
5,000 Public Works Finance Authority, Los Angeles County, California, 10/04 at 102 AA*** 5,659,700
Revenue Bonds (Regional Park and Open Space District), Series 1994A,
6.125%, 10/01/10 (Pre-refunded to 10/01/04)
10,000 Transportation Commission, Los Angeles County, California, Proposition C 7/02 at 102 Aaa 10,514,500
Sales Tax Revenue Bonds, Series 1992-A (Second Senior), 6.750%,
7/01/19 (Pre-refunded to 7/01/02)
2,035 Parlier Redevelopment Agency, California, 1992 Tax Allocation Bonds 8/02 at 102 BBB*** 2,147,637
(Parlier Redevelopment Project), Series A, 6.750%, 8/01/22
(Pre-refunded to 8/01/02)
Redevelopment Agency of the City and County of San Francisco,
California, Hotel Tax Revenue Bonds, Series 1994:
2,390 6.750%, 7/01/15 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 2,721,541
5,905 6.750%, 7/01/25 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 6,724,142
960 6.750%, 7/01/25 7/04 at 102 AAA 1,074,432
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 5,605 County of San Joaquin, California, Certificates of Participation (1994 4/04 at 102 A $ 5,925,046
Solid Waste System Facilities Project), 6.600%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.3%
375 Colorado Housing and Finance Authority, Senior Single Family Program 12/04 at 105 Aa2 386,509
Bonds, 1994 Series E, 8.125%, 12/01/24 (Alternative Minimum Tax)
Colorado Housing and Finance Authority, General Obligation Bonds,
1994 Series A:
5,645 6.850%, 8/01/24 (Pre-refunded to 8/01/02) 8/02 at 102 A*** 5,954,628
1,245 6.875%, 8/01/30 (Pre-refunded to 8/01/02) 8/02 at 102 A*** 1,313,512
2,385 Colorado Housing and Finance Authority, Single Family Program Senior 12/05 at 105 Aa2 2,564,471
Bonds, 1995 Series D, 7.375%, 6/01/26
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
400 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 499,744
3,155 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,224,852
12,115 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 A*** 12,382,620
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
1,445 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,548,187
5,635 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 5,979,186
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
2,125 6.750%, 11/15/13 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,266,334
16,120 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 A 17,022,881
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
1,925 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 1,929,312
5,315 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 5,326,693
1,700 City and County of Denver, Colorado, Multifamily Housing Revenue Bonds 10/07 at 102 AAA 1,742,228
(FHA-Insured Mortgage Loan - The Boston Lofts Project), Series 1997A,
5.750%, 10/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.3%
3,170 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AAA 3,383,721
Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.9%
District of Columbia, University Revenue Bonds (Georgetown University
Issue), Series 2001A:
11,720 0.000%, 4/01/27 4/11 at 39 5/8 AAA 2,796,626
13,780 0.000%, 4/01/28 4/11 at 37 7/32 AAA 3,086,996
15,855 0.000%, 4/01/29 4/11 at 35 1/16 AAA 3,344,295
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.3%
5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 5.750%, 10/06 at 102 AAA 5,224,200
10/01/18 (Alternative Minimum Tax)
1,285 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 1/10 at 100 AAA 1,337,467
Bonds, 2000 Series 11, 5.850%, 1/01/22 (Alternative Minimum Tax)
2,850 Department of Transportation, State of Florida, Right-of-Way Acquisition 7/05 at 101 AAA 3,175,299
and Bridge Construction Bonds (Full Faith and Credit), Series 1995,
5.875%, 7/01/24 (Pre-refunded to 7/01/05)
12,500 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), 5/02 at 102 N/R*** 13,087,500
Series 1992, 7.750%, 5/01/27 (Pre-refunded to 5/01/02)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.4%
5,500 City of Atlanta, Georgia, Water and Sewerage Revenue Bonds, 1/04 at 100 AAA 5,726,270
Series 1993, 4.500%, 1/01/18 (Pre-refunded to 1/01/04)
7,000 Development Authority of Burke County, Georgia, Pollution Control 1/03 at 103 AAA 7,665,560
Revenue Bonds (Oglethorpe Power Corporation - Vogtle Project),
Series 1992, 8.000%, 1/01/15 (Pre-refunded to 1/01/03)
650 Housing Authority of Fulton County, Georgia, Single Family Mortgage 9/06 at 102 AAA 681,746
Revenue Refunding Bonds (GNMA Mortgage-Backed Securities
Program), Series 1996A, 6.200%, 9/01/27 (Alternative Minimum Tax)
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.3%
$ 1,790 Idaho Housing Finance Agency, Single Family Mortgage Revenue Bonds, 7/05 at 102 AAA $ 1,883,742
Series F, 6.450%, 7/01/27 (Alternative Minimum Tax)
3,285 Idaho Housing Finance Agency, Housing Revenue Bonds (Park Place 6/05 at 102 Aa2 3,411,998
Project), 1995 Series A (FHA-Insured Mortgage), 6.500%, 12/01/36
(Alternative Minimum Tax)
2,225 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 7/06 at 102 Aaa 2,419,932
1996 Series G, 6.350%, 7/01/26 (Alternative Minimum Tax)
2,275 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 1/10 at 100 Aa2 2,407,291
2000 Series B, 6.250%, 7/01/22 (Alternative Minimum Tax)
2,375 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 7/10 at 100 Aaa 2,498,500
2000 Series E, 5.950%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.0%
5,000 City of Chicago, Illinois, General Obligation Bonds (Emergency Telephone 1/03 at 102 AAA 5,293,200
System), Series 1993, 5.625%, 1/01/23 (Pre-refunded to 1/01/03)
17,000 City of Chicago, Illinois, General Obligation Project Bonds, Series 1992A, 1/02 at 102 AAA 17,449,480
6.250%, 1/01/12 (Pre-refunded to 1/01/02)
18,200 City of Chicago, Illinois, General Obligation Project Bonds, Series 1995A-1, 1/06 at 102 AAA 18,285,540
5.125%, 1/01/25
1,000 City of Chicago, Illinois, General Obligation Bonds, Project and Refunding 7/08 at 102 AAA 1,023,340
Series 1998, 5.250%, 1/01/20
22,670 City of Chicago, Illinois, General Obligation Bonds (City Colleges of No Opt. Call AAA 6,656,819
Chicago Capital Improvement Project), Series 1999, 0.000%, 1/01/25
Chicago School Reform Board of Trustees of the Board of
Education, Illinois, Dedicated Tax Revenue Bonds (General
Obligation - Unlimited Tax), Series 1998A:
23,800 0.000%, 12/01/20 No Opt. Call AAA 8,764,350
41,300 0.000%, 12/01/21 No Opt. Call AAA 14,295,582
5,000 Chicago School Reform Board of Trustees of the Board of Education, No Opt. Call AAA 1,842,600
Illinois, Dedicated Tax Revenue Bonds (General Obligation - Unlimited
Tax), Series 1999A, 0.000%, 12/01/20
8,270 City of Chicago, Illinois, Mortgage Revenue Bonds (FHA-Insured Mortgage 6/02 at 102 AAA 8,488,907
Loan - Lakeview Towers Project), Series 1992, 6.650%, 12/01/33
1,175 City of Chicago, Illinois, Multifamily Housing Revenue Bonds (GNMA 6/09 at 102 Aaa 1,205,856
Collateralized - Bryn Mawr/Belle Shores Project), Series 1997,
5.800%, 6/01/23 (Alternative Minimum Tax)
10,900 Public Building Commission of Chicago, Illinois, Building Revenue Bonds 12/03 at 102 AAA 11,883,616
(Board of Education of the City of Chicago), Series 1993A, 5.750%,
12/01/18 (Pre-refunded to 12/01/03)
4,250 City of Chicago, Illinois, Tax Increment Allocation Bonds (Read-Dunning 1/07 at 102 N/R 4,490,720
Redevelopment Project), Series 1996B, 7.250%, 1/01/14
3,530 City of Chicago, Illinois, Tax Increment Allocation Bonds (Sanitary 1/07 at 102 N/R 3,794,644
Drainage and Ship Canal Redevelopment Project), Series 1997A,
7.750%, 1/01/14
4,865 Community Consolidated School District 15, Palatine, Cook County, No Opt. Call Aaa 1,792,850
Illinois, General Obligation Bonds, Series 2001, 0.000%, 12/01/20
6,190 Community High School District No. 219, Niles Township, Cook County, No Opt. Call Aaa 2,281,139
Illinois, General Obligation Capital Appreciation Bonds, Series 2001,
0.000%, 12/01/20
2,850 City of East St. Louis, Illinois, Mortgage Revenue Refunding Bonds 7/03 at 102 AAA 2,952,600
(FHA-Insured Mortgage Loan - Section 8 Assisted Dawson Manor
Apartments), Series 1994A, 6.500%, 7/01/24
6,900 Illinois Health Facilities Authority, Revenue Refunding Bonds (Illinois 10/03 at 102 A- 7,400,940
Masonic Medical Center), Series 1993, 5.500%, 10/01/19
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds (Lutheran No Opt. Call A+ 3,236,760
General Health System), Series 1993C, 6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance Bonds,
2000 Series A:
1,210 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100 AA 1,269,459
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100 AA 1,300,826
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Community Unit School District No. 60, Waukegan, Lake County, Illinois,
General Obligation Bonds, Series 2001B Refunding:
$ 3,230 0.000%, 11/01/19 (WI, settling 11/27/01) No Opt. Call Aaa $ 1,268,615
1,740 0.000%, 11/01/21 (WI, settling 11/27/01) No Opt. Call Aaa 605,294
2,910 Community High School District Number 154, McHenry County, Illinois, No Opt. Call Aaa 1,048,007
Capital Appreciation School Bonds, Series 2001, 0.000%, 1/01/21
300 Village of Wheeling, Cook and Lake Counties, Illinois, Single Family 11/02 at 102 AAA 309,153
Mortgage Revenue Refunding Bonds, Series 1992, 6.850%, 11/01/09
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.8%
8,000 East Chicago Elementary School Building Corporation, Lake County, 1/03 at 102 A*** 8,607,840
Indiana, First Mortgage Bonds, Series 1992, 7.000%, 1/15/16
(Pre-refunded to 1/15/03)
13,630 Hospital Authority of the City of Fort Wayne, Indiana, Revenue Bonds 11/02 at 102 A+*** 14,493,188
(Parkview Memorial Hospital, Inc. Project), Series 1992, 6.400%,
11/15/22 (Pre-refunded to 11/15/02)
6,031 City of Greenfield, Indiana, Multifamily Housing Revenue Bonds (Pedcor 12/05 at 105 Aaa 6,320,548
Investments, L.P. Project - 1988-V), Series 1996A, 6.200%, 12/01/28
(Alternative Minimum Tax)
10,675 Highland School Building Corporation, Indiana, First Mortgage Bonds, 1/02 at 102 AAA 10,990,873
Series 1992A, 6.750%, 1/15/20 (Pre-refunded to 1/15/02)
8,200 Indiana Bond Bank, State Revolving Fund Program Bonds (Guaranteed 2/03 at 102 AAA 8,732,918
Revenue), Series 1993A, 6.250%, 2/01/09
2,875 Indiana Bond Bank, State Revolving Fund Program Bonds (Guaranteed 2/05 at 102 AAA 3,191,566
Revenue), Series 1995A, 6.750%, 2/01/17
3,500 Indiana Bond Bank, Special Program Bonds (City of East Chicago 2/10 at 101 AAA 3,819,970
Facilities Building Corporation Project), Series 2000A, 6.125%, 2/01/25
5,250 Indiana Transportation Finance Authority, Lease Revenue Bonds (Aviation 3/03 at 102 AA 5,423,408
Technology Center), Series A, 6.500%, 3/01/18
5,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, 12/10 at 100 AA 5,144,500
Series 2000, 5.375%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.4%
Tobacco Settlement Authority, Iowa, Tobacco Settlement Asset-Backed
Revenue Bonds, Series 2001B:
7,000 5.300%, 6/01/25 6/11 at 101 A1 6,820,450
7,650 5.600%, 6/01/35 6/11 at 101 A1 7,434,347
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
1,040 Johnson County, Kansas, Single Family Mortgage Revenue Refunding 5/04 at 103 Aa2 1,097,595
Bonds, Series 1994, 7.100%, 5/01/12
985 Sedgwick County, Kansas and Shawnee County, Kansas, Collateralized No Opt. Call Aaa 1,035,796
Single Family Mortgage Refunding Revenue Bonds (GNMA Certificates),
Series 1994A1, 7.900%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4%
3,785 Kentucky Housing Corporation, Housing Revenue Bonds, 1996 Series A, 7/06 at 102 AAA 3,997,641
6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.4%
2,965 Bossier Public Trust Financing Authority, Louisiana, Single Family 8/05 at 102 AAA 3,037,405
Mortgage Revenue Refunding Bonds, Series 1995B, 6.125%, 8/01/28
11,065 East Baton Rouge Mortgage Finance Authority, Louisiana, Single Family 10/05 at 102 Aaa 11,471,417
Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), Series 1994C, 6.350%, 10/01/28 (Alternative
Minimum Tax)
4,980 New Orleans Home Mortgage Authority, Louisiana, Single Family 6/05 at 102 Aaa 5,215,255
Mortgage Revenue Bonds, Series 1995A, 6.300%, 6/01/28
(Alternative Minimum Tax)
4,035 Orleans Levee District (A political subdivision of the state of Louisiana), 12/05 at 103 AAA 4,397,020
Public Improvement Bonds, Series 1986, 5.950%, 11/01/15
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.7%
$ 765 Maine State Housing Authority, Mortgage Purchase Bonds, 1995 Series 11/05 at 102 AA+ $ 802,707
B-2, 6.300%, 11/15/26 (Alternative Minimum Tax)
6,145 Maine State Housing Authority, Mortgage Purchase Bonds, 1990 Series 8/02 at 102 AA+ 6,306,798
A-4, 6.400%, 11/15/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.1%
965 Community Development Administration, Department of Housing and 5/03 at 102 Aa2 1,000,560
Community Development, State of Maryland, Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), 1993 Series C,
6.625%, 5/15/23
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.8%
3,500 Massachusetts Development Finance Agency, Pioneer Valley Resource No Opt. Call N/R 3,800,930
Recovery Revenue Bonds (Springfield, LLC Project), Series 2000A,
8.375%, 7/01/14 (Alternative Minimum Tax)
3,605 Massachusetts Water Resources Authority, General Revenue Bonds, 12/04 at 102 AAA 3,666,682
1993 Series C, 5.250%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.4%
8,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding 11/03 at 102 AAA 8,224,480
Bonds (Oakwood Hospital Obligated Group), Series 1993A,
5.625%, 11/01/18
5,285 Michigan State Housing Development Authority, Rental Housing Revenue 10/02 at 102 AA- 5,488,895
Bonds, 1992 Series A, 6.650%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.2%
3,560 Housing and Redevelopment Authority of the City of St. Paul, Minnesota 12/02 at 102 BBB+ 3,628,103
and the City of Minneapolis, Minnesota, Healthcare Facility Revenue
Bonds (Group Health Plan, Inc. Project), Series 1992, 6.900%, 10/15/22
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100 AAA 3,048,870
Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/26
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100 AAA 2,435,592
Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25
2,450 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 100 AA+ 2,548,809
2000 Series C, 6.100%, 7/01/30 (Alternative Minimum Tax)
2,840 Minnesota Housing Finance Agency, Rental Housing Bonds, 1995 Series 2/05 at 102 AAA 2,938,349
D, 5.950%, 2/01/18
4,090 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/06 at 102 AA+ 4,322,598
1996 Series G, 6.250%, 7/01/26 (Alternative Minimum Tax)
2,500 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/11 at 101 AA+ 2,648,925
1998 Series H-2 (Remarketed), 6.050%, 7/01/31 (Alternative
Minimum Tax)
2,000 Southern Minnesota Municipal Power Agency, Power Supply System 1/03 at 102 Aaa 2,103,900
Revenue Bonds, Series 1992B, 5.750%, 1/01/11
2,350 Washington County Housing and Redevelopment Authority, Minnesota, 1/03 at 102 BBB 2,404,168
Pooled Housing and Redevelopment Limited Annual Appropriation Tax
and Revenue Bonds (Pooled Refunding Project), Series 1992,
7.200%, 1/01/22
5,170 Washington County Housing and Redevelopment Authority, Minnesota, 12/02 at 100 A3*** 5,457,400
Lease Revenue Bonds (South Washington County Schools Project),
Series 1992, 7.400%, 12/01/14 (Pre-refunded to 12/01/02)
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
4,000 Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds 10/02 at 102 AAA 4,223,200
(Wesley Health Systems), Series 1992A , 6.050%, 4/01/12
(Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.7%
Health and Educational Facilities Authority of the State of
Missouri, Revenue Bonds (SSM Healthcare), Series 2001A:
2,500 5.250%, 6/01/21 6/11 at 101 AAA 2,555,925
2,000 5.250%, 6/01/28 6/11 at 101 AAA 2,032,560
5,500 The Industrial Development Authority of the City of St. Louis, Missouri, 12/02 at 102 N/R 5,666,870
Industrial Revenue Refunding Bonds (Kiel Center Multipurpose Arena
Project), Series 1992, 7.625%, 12/01/09 (Alternative Minimum Tax)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
The City of St. Louis, Missouri, Airport Revenue Bonds (Airport
Development Program), Series 2001A:
$ 2,000 5.125%, 7/01/22 7/11 at 100 AAA $ 2,015,180
2,500 5.000%, 7/01/26 7/11 at 100 AAA 2,470,150
11,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold Revenue 7/03 at 102 AAA 11,712,250
Refunding Bonds, 6.000%, 7/15/13
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.4%
4,000 Clark County, Nevada, Industrial Development Revenue Bonds (Nevada 6/02 at 102 AAA 4,168,600
Power Company Project), Series 1992A, 6.700%, 6/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
2,905 New Hampshire Higher Educational and Health Facilities Authority, 1/02 at 100 BBB+ 2,913,250
Hospital Revenue Bonds (Catholic Medical Center Issue), Series 1989,
8.000%, 7/01/04
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.5%
4,500 New Jersey Economic Development Authority, Insured Revenue Bonds 5/05 at 102 AAA 5,059,395
(Educational Testing Service Issue), Series 1995A, 6.000%, 5/15/25
(Pre-refunded to 5/15/05)
4,310 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing 11/07 at 101 1/2 AAA 4,406,199
Revenue Bonds, 1997 Series A, 5.650%, 5/01/40 (Alternative Minimum Tax)
235 New Jersey Housing and Mortgage Finance Agency, Housing Revenue 11/02 at 102 A+ 245,180
Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
1,000 Toms River Board of Education, New Jersey, General Obligation Bonds, 7/07 at 100 AAA 1,125,030
Series 1997, 5.750%, 7/15/21 (Pre-refunded to 7/15/07)
3,685 The Union County Utilities Authority, New Jersey, Solid Waste Facility 6/08 at 101 AAA 3,787,148
Subordinated Lease Revenue Bonds (Ogden Martin Systems of Union,
Inc. (Lessee)), Series 1998A, 5.350%, 6/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4%
3,525 New Mexico Mortgage Finance Authority, Single Family Mortgage 7/05 at 102 AAA 3,714,187
Program Bonds, 1995 Series E, 6.300%, 7/01/17 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.0%
1,800 Long Island Power Authority, New York, Electric System General Revenue 6/08 at 101 AAA 1,817,352
Bonds, Series 1998A, 5.125%, 12/01/22
6,500 Long Island Power Authority, New York, Electric System General Revenue No Opt. Call AAA 2,262,650
Bonds, Series 2000A, 0.000%, 6/01/22
7,695 The City of New York, New York, General Obligation Bonds, Fiscal 1995 No Opt. Call A 8,211,950
Series E, 6.600%, 8/01/03
17,365 The City of New York, New York, General Obligation Bonds, Fiscal 1996 No Opt. Call A 19,718,826
Series F, 7.000%, 2/01/06
11,130 The City of New York, New York, General Obligation Bonds, Fiscal 1996 3/06 at 101 1/2 A 11,738,588
Series I, 5.875%, 3/15/18
The City of New York, New York, General Obligation Bonds, Fiscal
1996 Series J1:
9,000 5.875%, 2/15/19 2/06 at 101 1/2 A 9,467,910
3,820 5.500%, 2/15/26 2/06 at 101 1/2 A 3,897,928
4,250 The City of New York, New York, General Obligation Bonds, Fiscal 1997 8/06 at 101 1/2 A 4,534,580
Series E, 5.875%, 8/01/24
The City of New York, New York, General Obligation Bonds, Fiscal
1993 Series A:
3,285 6.375%, 8/01/08 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 3,441,530
6,715 6.375%, 8/01/08 8/02 at 101 1/2 A 7,021,204
665 6.500%, 8/01/11 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 697,299
1,335 6.500%, 8/01/11 8/02 at 101 1/2 A 1,397,144
The City of New York, New York, General Obligation Bonds, Fiscal
1997 Series I:
7,505 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101 Aaa 8,748,579
4,515 6.250%, 4/15/27 4/07 at 101 A 4,902,297
The City of New York, New York, General Obligation Bonds, Fiscal
1995 Series D:
285 6.600%, 2/01/03 No Opt. Call A*** 300,820
10,465 6.600%, 2/01/03 No Opt. Call A 10,973,808
1,370 New York City Municipal Water Finance Authority, New York, Water 6/07 at 101 AAA 1,442,418
and Sewer System Revenue Bonds, Fiscal 1997 Series B, 5.500%, 6/15/27
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 3,150 New York City Municipal Water Finance Authority, New York, Water 6/05 at 101 AAA $ 3,541,734
and Sewer System Revenue Bonds, Fiscal 1996 Series A, 5.875%,
6/15/25 (Pre-refunded to 6/15/05)
4,000 The Trust for Cultural Resources of the City of New York, New York, 4/07 at 101 AAA 4,188,720
Revenue Bonds (American Museum of Natural History), Series 1997A,
5.650%, 4/01/27
2,500 Dormitory Authority of the State of New York, City University System 7/06 at 102 AA- 2,666,700
Consolidated Third General Resolution Bonds, 1996 Series 2,
6.000%, 7/01/20
17,450 New York State Energy Research and Development Authority, Facilities 12/01 at 101 AAA 17,646,138
Revenue Bonds (Consolidated Edison Company of New York, Inc.
Project), Series 1992B, 6.375%, 12/01/27 (Alternative Minimum Tax)
7,635 New York State Medical Care Facilities Finance Agency, Mercy Medical 5/05 at 102 AA-*** 8,626,481
Center Project Revenue Bonds, 1995 Series A, 5.875%, 11/01/15
(Pre-refunded to 5/01/05)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.0%
2,550 County of Cumberland, North Carolina, Hospital Facility Revenue Bonds 10/09 at 101 A- 2,545,486
(Cumberland County Hospital System Inc.), Series 1999 (Cape Fear
Valley Health System), 5.250%, 10/01/19
5,105 City of Durham, North Carolina, Urban Redevelopment Mortgage 8/07 at 105 AAA 5,603,503
Revenue Bonds (Durham Hosiery Mill Project) (FHA-Insured), Series
1987, 7.500%, 8/01/29 (Alternative Minimum Tax)
1,635 North Carolina Housing Finance Agency, Single Family Revenue Bonds 3/06 at 102 AA 1,718,222
(1985 Resolution), Series JJ, 6.450%, 9/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.6%
4,945 North Dakota Housing Finance Agency, Mortgage Revenue Bonds 7/10 at 100 Aa3 5,180,431
(Housing Finance Program), Series 2000C, 6.150%, 7/01/31
(Alternative Minimum Tax)
1,155 North Dakota Housing Finance Agency, Housing Finance Program Bonds 1/07 at 102 Aa3 1,215,638
(Home Mortgage Finance Program), 1996 Series B, 6.400%, 1/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.0%
2,000 Ohio Housing Finance Agency, Multifamily Housing Mortgage Revenue 1/08 at 102 Aa2 2,002,180
Bonds (FHA-Insured Mortgage Loan - Courtyards of Kettering Project),
Series 1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax)
5,000 Ohio Water Development Authority, Collateralized Water Development 8/02 at 102 A2 5,145,000
Revenue Refunding Bonds (The Dayton Power and Light Company
Project), Series 1992A, 6.400%, 8/15/27
Ohio Water Development Authority, Solid Waste Disposal Revenue
Bonds (Bay Shore Power Project), Convertible Series 1998A:
7,000 6.625%, 9/01/20 (Alternative Minimum Tax) 9/09 at 102 N/R 6,726,720
6,750 5.875%, 9/01/20 (Alternative Minimum Tax) 9/08 at 102 N/R 5,961,330
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.9%
5,000 Oklahoma Student Loan Authority, Student Loan Revenue Bonds, Senior 6/11 at 102 AAA 5,091,350
Lien Series 2001-A1, 5.625%, 6/01/31
1,000 Tulsa County Industrial Authority, Oklahoma, Recreational Facilities 9/02 at 102 AA 1,051,910
Revenue Bonds, Refunding Series 1992, 6.600%, 9/01/08
2,990 Tulsa County Public Facilities Authority, Oklahoma, Recreational Facility 11/02 at 102 AA 3,163,839
Refunding Revenue Bonds, Series 1992, 6.600%, 11/01/08
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.7%
13,350 State of Oregon, General Obligation Elderly and Disabled Housing Bonds, 8/02 at 102 AA 13,788,414
1992 Series B, 6.375%, 8/01/24
4,450 State of Oregon, General Obligation Veterans Welfare Bonds, Series 75, 10/05 at 102 AA 4,739,295
6.000%, 4/01/27
5,210 Housing and Community Services Department, State of Oregon, 1/10 at 100 Aa2 5,512,962
Mortgage Revenue Bonds (Single Family Mortgage Program),
Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax)
2,700 City of Portland, Oregon, Limited Tax Improvement Bonds, 1996 Series A, 6/06 at 100 Aa2 2,821,230
5.550%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.4%
2,400 Beaver County Industrial Development Authority, Pennsylvania, 7/05 at 102 A 2,641,992
Collateralized Pollution Control Revenue Refunding Bonds (The
Cleveland Electric Illuminating Company - Beaver Valley Project),
Series 1995-A, 7.750%, 7/15/25
1,000 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call AAA 1,106,690
Government Revenue Bonds, Series 1997B, 5.700%, 7/01/27
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.1%
$ 1,375 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series X, 7/05 at 100 A- $ 1,405,291
5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.5%
2,135 School District No. 4 of Lexington County, South Carolina, Certificates 7/04 at 102 Baa2 2,356,400
of Participation, Series 1994, 7.000%, 7/01/12
7,600 Piedmont Municipal Power Agency, South Carolina, Electric Revenue 1/02 at 100 AAA 6,407,180
Refunding Bonds, Series 1991, 4.000%, 1/01/23
15,000 Tobacco Settlement Revenue Management Authority, South Carolina, 5/11 at 101 A1 15,672,750
Tobacco Settlement Asset-Backed Bonds, Series 2001B,
6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.4%
2,870 South Dakota Housing Development Authority, Homeownership 5/07 at 102 AAA 2,937,560
Mortgage Bonds, 1997 Series F, 5.800%, 5/01/28 (Alternative
Minimum Tax)
South Dakota Building Authority, Revenue Bonds, Series 1992:
510 6.700%, 9/01/17 (Pre-refunded to 9/01/02) 9/02 at 102 AAA 539,789
9,860 6.700%, 9/01/17 (Pre-refunded to 9/01/04) 9/04 at 100 AAA 10,387,510
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
2,740 The Health and Educational Facilities Board of Johnson City, Tennessee, 7/23 at 100 AAA 2,772,661
Hospital Revenue Refunding and Improvement Bonds (Johnson City
Medical Center Hospital), Series 1998C, 5.125%, 7/01/25
(Pre-refunded to 7/01/23)
1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport Revenue 3/10 at 101 AAA 1,621,155
Bonds, Series 1999D, 6.000%, 3/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.5%
720 Baytown Housing Finance Corporation, Texas, Single Family Mortgage 9/02 at 103 Aa2 769,680
Revenue Refunding Bonds, Series 1992-A, 8.500%, 9/01/11
3,000 Brazos River Authority, Texas, Revenue Refunding Bonds (Houston No Opt. Call AAA 3,032,490
Lighting and Power Company Project), Series 1998, 5.050%, 11/01/18
(Alternative Minimum Tax)
10,000 Coppell Independent School District, Dallas County, Texas, Unlimited Tax No Opt. Call AAA 2,370,700
School Building and Refunding Bonds, Series 2001, 0.000%, 8/15/28
1,635 Garland Independent School District, Dallas County, Texas, Unlimited Tax 2/07 at 100 AAA 1,509,759
School Building Bonds, Series 1997-A, 4.000%, 2/15/15
1,040 Hidalgo County Housing Finance Corporation, Texas, Single Family 4/04 at 102 Aaa 1,082,619
Mortgage Revenue Bonds (GNMA and FNMA Collateralized),
Series 1994A, 7.000%, 10/01/27 (Alternative Minimum Tax)
City of Houston, Texas, Hotel Occupancy Tax and Special Revenue
Bonds (Convention Project), Series 2001B:
25,850 0.000%, 9/01/25 No Opt. Call AAA 7,276,775
26,610 0.000%, 9/01/26 No Opt. Call AAA 7,085,711
1,385 Houston Independent School District, Public Facility Corporation, Harris No Opt. Call AAA 804,353
County, Texas, Lease Revenue Bonds (Cesar E. Chavez High School),
Series 1998A, 0.000%, 9/15/13
6,630 Houston Independent School District Public Facility Corporation, Harris No Opt. Call AAA 3,850,439
County, Texas, Lease Revenue Bonds (West Side High School), Series
1998B, 0.000%, 9/15/13
1,000 Humble Independent School District, Harris County, Texas, Unlimited Tax 2/10 at 100 AAA 820,960
Schoolhouse Bonds, 1997 Series II, 3.500%, 2/15/18
6,185 Keller Independent School District, Tarrant County, Texas, Refunding 8/11 at 100 AAA 6,295,835
Bonds (General Obligation - Unlimited Tax), Series 2001,
5.250%, 8/15/26
2,000 Pearland Independent School District, Brazoria County, Texas, Unlimited 2/11 at 100 AAA 2,040,360
Tax Schoolhouse Bonds, 2001 Series A, 5.250%, 2/15/22
1,395 Port Arthur Housing Finance Corporation, Texas, Single Family Mortgage 9/02 at 103 A2 1,537,164
Revenue Refunding Bonds, Series 1992, 8.700%, 3/01/12
3,935 Spring Branch Independent School District, Harris County, Texas, Limited 2/11 at 100 AAA 3,958,020
Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26
7,490 State of Texas, General Obligation Veterans Housing Assistance Bonds, 12/03 at 102 Aa1 7,827,649
Series 1993, 6.800%, 12/01/23 (Alternative Minimum Tax)
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
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 23/32 AAA $ 1,866,469
6,945 0.000%, 2/15/27 2/11 at 39 3/4 AAA 1,657,008
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.4%
6,000 Redevelopment Agency of Salt Lake County, Utah, Central Business 3/02 at 102 A 6,139,080
District Neighborhood Redevelopment, Junior Lien Tax Increment
Bonds, Series 1992A, 5.800%, 3/01/15
1,685 Utah Housing Finance Agency, Single Family Mortgage Bonds (Federally 7/04 at 102 AAA 1,743,638
Insured or Guaranteed Mortgage Loans), 1994 Issue B, 6.450%, 7/01/14
1,160 Utah Housing Finance, Single Family Mortgage Bonds, 1997 Series E2 7/07 at 101 1/2 AAA 1,219,670
(Class I), 5.875%, 1/01/19 (Alternative Minimum Tax)
1,470 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1997 1/09 at 101 1/2 AAA 1,527,756
Series C, 5.600%, 7/01/18 (Alternative Minimum Tax)
3,000 Municipal Building Authority of Weber County, Utah, Lease Revenue 12/04 at 102 AAA 3,495,780
Bonds, Series 1994, 7.500%, 12/15/19 (Pre-refunded to 12/15/04)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.7%
6,620 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 4, 5/02 at 102 A+ 6,764,382
6.400%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 0.8%
7,635 Public Hospital District No. 2, King County, Washington, General 6/11 at 101 AAA 7,491,157
Obligation - Limited Tax Bonds (Evergreen Healthcare), Series 2001A,
5.000%, 12/01/30
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9%
7,000 The County Commission of Harrison County, West Virginia, Solid Waste 5/03 at 102 AAA 7,423,010
Disposal Revenue Bonds (The Potomac Edison Company - Harrison
Station Project), Series B, 6.250%, 5/01/23 (Alternative Minimum Tax)
1,000 The County Commission of Pleasants County, West Virginia, Pollution 4/09 at 101 AAA 1,028,770
Control Revenue Bonds (West Penn Power Company - Pleasants
Station Project), 1999 Series E, 5.500%, 4/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.8%
4,310 Wisconsin Housing and Economic Development Authority, Home 1/05 at 102 AA 4,518,432
Ownership Revenue Bonds, 1995 Series B, 7.100%, 9/01/15
(Alternative Minimum Tax)
3,215 Wisconsin Health and Educational Facilities Authority, Revenue Bonds 2/07 at 102 AAA 3,369,223
(Marshfield Clinic Project), Series 1997, 5.625%, 2/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 1,139,151 Total Investments (cost $919,523,814) - 99.7% 982,278,740
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 3,085,926
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 985,364,666
====================================================================================================================
* 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. 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.
See accompanying notes to financial statements.
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.4%
$ 6,075 Alabama Higher Education Loan Corporation, Student Loan Revenue No Opt. Call AAA $ 6,463,314
Refunding Bonds, Series 1994-D, 5.850%, 9/01/04 (Alternative
Minimum Tax)
2,500 Alabama Housing Finance Authority, Multifamily Housing Revenue Bonds 2/11 at 102 AAA 2,614,500
(South Bay Apartments Project), 2000 Series K, 5.950%, 2/01/33
(Alternative Minimum Tax)
11,745 Alabama Special Care Facilities Financing Authority of Birmingham, 11/05 at 101 Aaa 11,808,423
Hospital Revenue Bonds (Daughters of Charity National Health System
- Providence Hospital and St. Vincent's Hospital), Series 1995,
5.000%, 11/01/25
11,000 The DCH Health Care Authority, Alabama, Healthcare Facilities Revenue 12/02 at 102 A+ 11,141,790
Bonds, Series 1993-B, 5.750%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1%
270 Arkansas Development Finance Authority, Single Family Mortgage 2/02 at 103 AA 274,979
Revenue Refunding Bonds (FHA-Insured or VA Guaranteed Mortgage
Loans), 1991 Series A, 8.000%, 8/15/11
255 Residential Housing Facilities Board, City of Jacksonville, Arkansas, 7/03 at 103 Aaa 268,466
Single Family Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 1/01/11
417 Residential Housing Facilities Board of Lonoke County, Arkansas, Single 4/05 at 103 Aaa 443,940
Family Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.9%
4,780 Foothill/Eastern Transportation Corridor Agency, California, Toll Road No Opt. Call AAA 2,779,905
Revenue Bonds, Series 1995A, 0.000%, 1/01/14
Community Redevelopment Financing Authority of the Community
Redevelopment Agency of Los Angeles, California, Multifamily
Housing Bonds (Grand Central Square), 1993 Series A:
500 5.750%, 12/01/13 (Alternative Minimum Tax) 6/03 at 102 BB 481,445
3,705 5.900%, 12/01/26 (Alternative Minimum Tax) 11/01 at 100 A 3,707,519
4,500 Los Angeles County Transportation Commission, California, Proposition 7/02 at 102 Aaa 4,731,525
C Sales Tax Revenue Bonds (Second Senior), Series 1992-A, 6.750%,
7/01/19 (Pre-refunded to 7/01/02)
1,715 Housing Authority of the County of Merced, California, Multifamily 1/04 at 102 Aaa 1,773,276
Housing Refunding Revenue Bonds (Belmont Park Apartments Project),
Series 1993A, 5.875%, 1/01/19
2,500 Transmission Agency of Northern California, Revenue Bonds 5/02 at 102 AAA 2,601,525
(California-Oregon Transmission Project), 1992 Series A,
6.500%, 5/01/16
5,000 Airports Commission of the City and County of San Francisco, California 5/04 at 101 AAA 5,402,550
(San Francisco International Airport), Second Series Revenue Bonds,
Issue 8A, 6.300%, 5/01/25 (Alternative Minimum Tax)
3,545 Redevelopment Agency of the City of San Leandro, California, 1993 Tax 6/03 at 102 A- 3,683,326
Allocation Bonds (Plaza 1 and Plaza 2 Redevelopment Projects),
Series A, 6.125%, 6/01/23
1,945 South Gate Public Financing Authority, Los Angeles County, California, No Opt. Call AAA 2,306,187
Water Revenue Refunding Bonds, 1996 Series A, 6.000%, 10/01/12
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.3%
3,865 Colorado Housing and Finance Authority, Senior Single Family Program 10/09 at 105 Aa2 4,430,179
Bonds, 1999 Series C-3, 6.750%, 10/01/21
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
6,000 7.500%, 11/15/02 (Alternative Minimum Tax) 11/01 at 102 A 6,131,940
3,040 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 3,798,054
865 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 884,151
3,280 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 A*** 3,352,455
210 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 210,395
790 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 A*** 791,446
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
$ 1,100 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa $ 1,173,161
4,140 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 4,371,881
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
5,000 8.750%, 11/15/05 (Alternative Minimum Tax) 11/01 at 102 A 5,112,300
315 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 322,091
885 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 A*** 904,877
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.3%
3,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AAA 3,202,260
Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.4%
6,000 District of Columbia, Washington, D.C., General Obligation Bonds, No Opt. Call AAA 6,664,320
Series 1993B2, 5.500%, 6/01/10
3,240 District of Columbia, Hospital Revenue Refunding Bonds (Medlantic 8/02 at 102 A-*** 3,504,222
Healthcare Group, Inc. Issue), Series 1992B, 6.750%, 8/15/07
(Pre-refunded to 8/15/02)
4,250 District of Columbia, Hospital Revenue Refunding Bonds (Medlantic 8/06 at 102 AAA 4,694,550
Healthcare Group, Inc. Issue), Series 1993A, 5.750%, 8/15/14
District of Columbia, Washington, D.C., General Obligation Refunding
Bonds, Series 1993A:
1,585 6.000%, 6/01/07 No Opt. Call AAA 1,794,204
7,215 6.000%, 6/01/07 No Opt. Call AAA 8,097,106
District of Columbia, Washington, D.C., General Obligation Bonds,
Series 1993E:
325 6.000%, 6/01/09 (Pre-refunded to 6/01/03) 6/03 at 102 AAA 350,145
5 6.000%, 6/01/09 6/03 at 102 AAA 5,352
4,485 6.000%, 6/01/09 6/03 at 102 AAA 4,822,765
1,980 District of Columbia Housing Finance Agency, Collateralized Single 12/04 at 103 AAA 2,053,913
Family Mortgage Revenue Bonds, Series 1988F-1, 5.850%, 12/01/14
(Alternative Minimum Tax)
4,500 District of Columbia, University Revenue Refunding Bonds (The Howard 10/02 at 102 AAA 4,779,090
University Issue), Series 1992A, 6.750%, 10/01/12 (Pre-refunded to
10/01/02)
District of Columbia, University Revenue Bonds (Georgetown University
Issue), Series 2001A:
9,670 0.000%, 4/01/26 4/11 at 42 5/32 AAA 2,454,149
15,235 0.000%, 4/01/30 4/11 at 32 15/16 AAA 3,015,159
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.7%
9,000 Jacksonville Electric Authority, Florida, Water and Sewer System 10/05 at 100 Aa3 9,101,520
Revenue Bonds, 2001 Series A, 5.200%, 10/01/20
5,000 Industrial Development Authority, Martin County, Florida, Industrial 12/04 at 102 BBB- 5,160,350
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 AAA 1,461,392
Revenue Bonds (Sunset Bay Apartments Project), Series 2000-5A,
5.850%, 7/01/20 (Alternative Minimum Tax)
9,500 City of Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100 AAA 9,594,905
Series 1998, 5.000%, 10/01/28
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.6%
3,400 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 3,729,358
Series 1999A, 5.500%, 11/01/22
1,295 Development Authority of Burke County, Georgia, Pollution Control No Opt. Call AAA 1,339,198
Revenue Bonds (Oglethorpe Power Corporation - Vogtle Project),
Series 1992, 7.500%, 1/01/03
2,880 Municipal Electric Authority of Georgia, General Power Revenue Bonds, No Opt. Call A 3,740,429
1992B Series, 8.250%, 1/01/11
5,500 Municipal Electric Authority of Georgia, General Power Revenue Bonds, No Opt. Call AAA 6,065,180
1993B Series, 5.700%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.6%
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 1,712,167
3,420 5.000%, 10/01/13 No Opt. Call AA- 3,669,352
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.3%
$ 4,000 Board of Education of the City of Chicago, Illinois, General Obligation No Opt. Call AAA $ 4,713,520
Lease Certificates, 1992 Series A, 6.250%, 1/01/15
5,550 City of Chicago, Illinois, Midway Airport Revenue Bonds, Series 2001A, 1/11 at 101 AAA 5,473,910
5.125%, 1/01/26 (Alternative Minimum Tax)
5,000 City of Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 5.250%, 7/08 at 102 AAA 5,072,650
1/01/28
Cook County School District 99, Cicero, Illinois, General
Obligation School Bonds, Series 1997:
1,455 8.500%, 12/01/13 No Opt. Call Aaa 2,021,941
1,685 8.500%, 12/01/15 No Opt. Call Aaa 2,372,514
6,205 Illinois Development Finance Authority, Revenue Bonds (Greek 4/11 at 105 Aaa 7,524,555
American Nursing Home Project), Series 2000A, 7.600%, 4/20/40
1,645 Illinois Development Finance Authority, Childcare Facility Revenue 9/02 at 102 N/R 1,703,743
Bonds (Illinois Facilities Fund Project), Series 1992, 7.400%, 9/01/04
1,615 Illinois Educational Facilities Authority, Revenue Bonds (Chicago College 1/02 at 100 AAA 1,811,239
of Osteopathic Medicine), Series A, 8.750%, 7/01/05
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds (Illinois 10/03 at 102 A- 3,217,800
Masonic Medical Center), Series 1993, 5.500%, 10/01/19
2,000 Illinois Health Facilities Authority, Revenue Bonds (Trinity Medical 7/02 at 102 Baa2*** 2,102,320
Center), Series 1992, 7.000%, 7/01/12 (Pre-refunded to 7/01/02)
Illinois Health Facilities Authority, Revenue Refunding Bonds (Lutheran
General Health System), Series 1993C:
5,705 7.000%, 4/01/08 No Opt. Call A+ 6,544,320
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,903,937
8,190 Illinois Housing Development Authority, Multifamily Program Bonds, 9/04 at 102 A+ 8,626,199
Series 5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly Housing 11/02 at 102 A 3,513,221
Revenue Bonds (Skyline Towers Apartments), Series 1992B,
6.875%, 11/01/17
2,480 Illinois Housing Development Authority, Section 8 Elderly Housing 1/03 at 102 A*** 2,648,913
Revenue Bonds (Morningside North Development), Series 1992D,
6.600%, 1/01/07 (Pre-refunded to 1/01/03)
2,025 Long Creek Township, Macon County, Illinois, Waterworks Refunding 5/03 at 100 N/R 2,068,497
Revenue Bonds, Series 1993, 7.250%, 5/01/23
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry No Opt. Call AAA 3,927,455
and Will Counties, Illinois, General Obligation Bonds, Series 1990A,
7.200%, 11/01/20
14,375 Village of Wheeling, Illinois, Multifamily Housing Revenue Bonds (FHA- 2/03 at 100 AAA 14,530,969
Insured Mortgage Loan - Arlington Club Project), Series 1993A,
6.400%, 2/01/40
3,945 Town of Wood River, Wood River Township Hospital, Madison County, 2/04 at 102 N/R 3,249,694
Illinois, General Obligation Bonds (Alternate Revenue Source),
Series 1993, 6.625%, 2/01/14
3,930 Town of Wood River, Wood River Township Hospital, Madison County, 2/04 at 102 N/R 3,201,417
Illinois, General Obligation Tort Immunity Bonds, Series 1993,
6.500%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.0%
2,250 Indiana Bond Bank, Special Program Bonds, Series 1992B, 6.750%, 8/01/12 2/03 at 102 A+ 2,418,795
22,000 Indiana Health Facility Financing Authority, Hospital Revenue Bonds 8/10 at 101 1/2 AAA 22,616,000
(Clarian Health Obligated Group), Series 2000A, 5.500%, 2/15/30
3,200 Indiana Health Facility Financing Authority, Hospital Revenue Refunding 9/02 at 102 A1 3,390,144
Bonds (The Methodist Hospitals, Inc.), Series 1992, 6.750%, 9/15/09
2,100 City of Indianapolis, Indiana, Economic Development Revenue Bonds 7/03 at 103 N/R 1,659,882
(The Meadows - Section 8 Assisted Project), Series 1993A, 6.000%,
7/01/23 (Alternative Minimum Tax)
6,065 City of Indianapolis, Indiana, Multifamily Housing First Mortgage 5/09 at 102 N/R 1,819,500
Revenue Bonds (Keystone at Fall Creek Apartments), Series 1999A,
6.500%, 5/01/31 (Alternative Minimum Tax)#
2,000 Hospital Authority of the City of Kokomo, Indiana, Hospital Revenue 8/03 at 102 N/R*** 2,178,040
Refunding Bonds (St. Joseph Hospital and Health Center of Kokomo),
Series 1993, 6.250%, 8/15/05
3,615 Mooresville Consolidated School Building Corporation, Morgan County, 1/04 at 101 N/R*** 3,923,179
Indiana, First Mortgage Bonds, Series 1994A, 6.200%, 7/15/15
(Pre-refunded to 1/15/04)
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.4%
$ 330 City of Davenport, Iowa, Home Ownership Mortgage Revenue Refunding 9/04 at 102 Aa2 $ 344,748
Bonds, Series 1994, 7.900%, 3/01/10
3,600 Iowa Finance Authority, Hospital Revenue Bonds (Trinity Regional 7/02 at 102 N/R*** 3,779,460
Hospital Project), Series 1993, 7.000%, 7/01/12 (Pre-refunded
to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.0%
785 Johnson County, Kansas, Single Family Mortgage Revenue Refunding 5/04 at 103 Aa2 828,473
Bonds, Series 1994, 7.100%, 5/01/12
Kansas Development Finance Authority, Multifamily Housing Refunding
Revenue Bonds (First Kansas State Partnership - L.P. Project),
Series 1998Y:
7,910 6.000%, 12/01/20 (Alternative Minimum Tax) 12/08 at 101 N/R 7,326,005
2,460 6.125%, 12/01/28 (Alternative Minimum Tax) 12/08 at 101 N/R 2,244,283
515 Labette County, Kansas, Single Family Mortgage Revenue Refunding 6/03 at 103 Aa2 538,293
Bonds, 1993 Series A, 8.400%, 12/01/11
2,000 City of Olathe, Kansas, Health Facilities Revenue Bonds (Olathe Medical 9/10 at 100 AAA 2,072,720
Center Project), Series 2000A, 5.500%, 9/01/25
6,825 Unified School District No. 259, Wichita, Sedgwick County, Kansas, 9/10 at 100 AA 5,933,723
General Obligation Bonds, Series 2000, 3.500%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4%
3,780 Kentucky Housing Corporation, Housing Revenue Bonds, 1996 Series A, 7/06 at 102 AAA 3,992,360
6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.0%
3,250 Clover Dale Housing Corporation, Louisiana, 1995 Multifamily Mortgage 4/02 at 100 AA- 3,265,015
Revenue Refunding Bonds (Clover Dale Plaza - FHA-Insured Mortgage -
Section 8 Assisted Project), Series A, 6.550%, 2/01/22
5,815 Orleans Levee District (a political subdivision of the state of Louisiana), 12/05 at 103 AAA 6,359,807
Public Improvement Bonds, Series 1986, 5.950%, 11/01/14
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 2.4%
7,520 Maine Educational Loan Marketing Corporation, Subordinate Student No Opt. Call A2 8,013,387
Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06 (Alternative
Minimum Tax)
13,835 Maine State Housing Authority, Mortgage Purchase Bonds, 2000 Series 5/10 at 100 AA+ 14,478,051
C-1, 6.050%, 11/15/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.8%
4,425 Community Development Administration, Maryland Department of 1/07 at 102 Aa2 4,697,846
Housing and Community Development, Housing Revenue Bonds,
Series 1996A, 5.875%, 7/01/16
2,900 Community Development Administration, Maryland Department of 7/07 at 102 Aa2 2,980,330
Housing and Community Development, Housing Revenue Bonds,
Series 1997A, 6.000%, 7/01/39 (Alternative Minimum Tax)
6,800 Housing Opportunities Commission of Montgomery County, Maryland, 7/06 at 102 Aa2 7,205,212
Multifamily Housing Revenue Bonds, 1996 Series B, 6.400%, 7/01/28
(Alternative Minimum Tax)
2,315 Housing Opportunities Commission of Montgomery County, Maryland, 7/10 at 100 Aaa 2,474,341
Multifamily Housing Development Bonds, Series 2000B, 6.125%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.6%
2,000 Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 4/03 at 102 A+ 2,089,600
Series 1993A Refunding, 6.300%, 10/01/13
3,180 Massachusetts Industrial Finance Agency, Resource Recovery Revenue 1/02 at 103 N/R 3,282,746
Bonds (Semass Project), Series 1991B, 9.250%, 7/01/15 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.0%
5,000 City of Detroit, Michigan, Convention Facility Limited Tax Revenue 9/03 at 102 AAA 5,193,050
Refunding Bonds (Cobo Hall Expansion Project), Series 1993,
5.250%, 9/30/12
10,225 City of Detroit, Michigan, Water Supply System Revenue Bonds (Senior 7/07 at 101 AAA 10,097,597
Lien), Series 1997-A, 5.000%, 7/01/27
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
City of Hancock Hospital Finance Authority, Michigan,
FHA-Insured Mortgage Hospital Revenue Bonds (Portage Health
System, Inc.), Series 1998:
$ 2,545 4.625%, 8/01/18 8/08 at 100 AAA $ 2,593,151
4,400 5.450%, 8/01/47 8/08 at 100 AAA 4,471,060
2,000 Michigan State Hospital Finance Authority, Hospital Revenue and No Opt. Call BBB- 2,011,780
Refunding Bonds (The Detroit Medical Center Obligated Group),
Series 1993B, 5.000%, 8/15/03
3,150 Michigan State Hospital Finance Authority, Hospital Revenue and 8/02 at 102 AAA 3,286,742
Refunding Bonds (Bon Secours Health System Project), Series 1992,
6.100%, 8/15/22
10,500 Michigan State Hospital Finance Authority, Hospital Revenue Bonds 8/08 at 101 BBB- 9,179,520
(The Detroit Medical Center Obligated Group), Series 1998A,
5.250%, 8/15/23
3,750 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds 6/03 at 102 AAA 3,998,025
(Consumers Power Company Project), Collateralized Series 1993B,
5.800%, 6/15/10
6,000 County of Monroe, Michigan, Pollution Control Revenue Bonds (The 9/03 at 102 AAA 6,461,640
Detroit Edison Company Project), Series CC-1992, 6.550%, 9/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6%
4,670 Housing Finance Board, Minneapolis-St. Paul, Minnesota, Single Family 11/07 at 102 AAA 4,813,276
Mortgage Revenue Bonds (FNMA/GNMA Backed Program), Phase
XI-AB, 5.800%, 11/01/30 (Alternative Minimum Tax)
3,500 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 1/11 at 100 AAA 3,551,905
Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25
4,000 Minneapolis Community Development Agency, Minnesota, Limited Tax 12/02 at 102 A- 4,184,160
Supported Development Revenue Bonds (Common Bond Fund), Series
1992G-3, 7.375%, 12/01/12
2,720 City of Minnetonka, Minnesota, Multifamily Housing Revenue Refunding 6/04 at 102 AAA 2,859,590
Bonds (GNMA Collateralized Mortgage Loan - Brier Creek Project),
Series 1994A, 6.450%, 6/20/24
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7%
2,000 Mississippi Higher Education Assistance Corporation, Student Loan 9/02 at 102 Aaa 2,071,220
Revenue Bonds, Senior Series 1993-B, 5.800%, 9/01/06 (Alternative
Minimum Tax)
855 Mississippi Housing Finance Corporation, Single Family Mortgage 4/02 at 100 AAA 857,018
Purchase Revenue Bonds (GNMA Mortgage-Backed Securities
Program), Series 1989, 8.250%, 10/15/18 (Alternative Minimum Tax)
555 Mississippi Home Corporation, Single Family Mortgage Revenue Bonds, 4/05 at 102 Aaa 575,380
Series 1995B, 6.550%, 4/01/21 (Alternative Minimum Tax)
1,655 Mississippi Regional Housing Authority No. V, Multifamily Housing 1/02 at 104 AAA 1,655,000
Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Deville
Apartments - Section 8 Assisted Project), Series 1993A,
7.050%, 7/01/21
1,680 Mississippi Educational Facilities Authority (For Private, Nonprofit 6/03 at 102 Ba2 1,696,128
Institutions of Higher Learning), Educational Facilities Revenue
Bonds (Tougaloo College Project), Series 1993A, 6.500%, 6/01/18
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.2%
2,000 The City of St. Louis, Missouri, Airport Revenue Bonds (Airport 7/11 at 100 AAA 1,976,120
Development Program), Series 2001A, 5.000%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 3.3%
10,000 Energy America, Nebraska, Natural Gas Revenue Bonds, 1998 Series A, No Opt. Call N/R 10,075,000
5.700%, 7/01/08
9,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate Bonds, No Opt. Call AAA 9,903,600
Series A-5A, 6.250%, 6/01/18 (Alternative Minimum Tax)
5,815 Nebraska Investment Finance Authority, Single Family Housing Revenue 3/07 at 101 1/2 AAA 6,002,069
Bonds, 1998 Series F, 5.600%, 9/01/20 (Alternative Minimum Tax)
5,075 Airport Authority of the City of Omaha, Nebraska, Airport Facilities 1/02 at 102 A1 5,228,620
Revenue Refunding Bonds, Series 1991, 8.375%, 1/01/14
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.8%
4,500 Clark County School District, Nevada, General Obligation School No Opt. Call AAA 5,466,960
Improvement Bonds, Series 1991A, 7.000%, 6/01/10
1,725 Nevada Housing Division, Senior Single Family Program Bonds, 1993 4/04 at 102 A1 1,805,489
Issue B, 6.200%, 10/01/15
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2%
$ 1,375 New Hampshire Housing Finance Authority, Single Family Mortgage 1/07 at 102 Aa2 $ 1,468,816
Acquisition Revenue Bonds, 1996 Series C, 6.200%, 7/01/16 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.3%
2,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C, No Opt. Call AAA 2,440,320
6.500%, 1/01/16
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.2%
195 New Mexico Educational Assistance Foundation, Student Loan Revenue 12/02 at 101 A2 204,836
Bonds, 1992 Subordinate Series 1B, 6.850%, 12/01/05 (Alternative
Minimum Tax)
1,195 New Mexico Mortgage Finance Authority, Senior Single Family 7/02 at 102 AAA 1,226,990
Mortgage Purchase Refunding Bonds, 1992 Series A2, 6.900%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.6%
30,050 Atlas Community Housing Opportunity Trust, New York, Class A 6/09 at 100 N/R 29,238,350
Certificates, Series 1999-1, 6.750%, 6/01/34 (Optional put 6/01/09)
10,000 Industrial Development Agency, Erie County, New York, Solid Waste 12/10 at 103 N/R 4,162,500
Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna
Project), 9.050%, 12/01/25 (Alternative Minimum Tax)
1,000 The City of New York, New York, General Obligation Bonds, Fiscal No Opt. Call A 1,103,510
1995 Series A, 7.000%, 8/01/04
3,500 The City of New York, New York, General Obligation Bonds, Fiscal No Opt. Call A 3,748,605
1996 Series B, 6.750%, 8/15/03
14,310 The City of New York, New York, General Obligation Bonds, Fiscal No Opt. Call A 15,730,268
1996 Series F, 6.500%, 2/01/05
85 The City of New York, New York, General Obligation Bonds, Fiscal 2/02 at 101 1/2 A 87,752
1991 Series D, 9.500%, 8/01/02
16,915 New York City Transitional Finance Authority, New York, Future Tax 5/08 at 101 AA+ 16,738,238
Secured Bonds, Fiscal 1998 Series C, 5.000%, 5/01/26
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal 2000 Series C:
3,850 5.875%, 11/01/16 5/10 at 101 AA+ 4,282,933
5,000 5.500%, 11/01/24 5/10 at 101 AA+ 5,245,000
8,845 New York State Medical Care Facilities Finance Agency, Hospital and 8/02 at 102 AAA 9,125,563
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 AA 4,455,570
Mortgage Project Revenue Bonds, 1995 Series B, 6.150%, 2/15/35
New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1994 Series A:
4,875 6.200%, 2/15/21 (Pre-refunded to 2/15/04) 2/04 at 102 AA*** 5,306,633
3,365 6.200%, 2/15/21 2/04 at 102 AA 3,620,101
7,500 New York State Thruway Authority, General Revenue Bonds, Series C, 1/05 at 102 AAA 8,433,975
6.000%, 1/01/15 (Pre-refunded to 1/01/05)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.2%
2,000 North Carolina Municipal Power Agency Number 1, Catawba Electric No Opt. Call AAA 2,295,220
Revenue Bonds, Series 1992, 6.000%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.0%
405 City of Minot, North Dakota, Single Family Mortgage Revenue Refunding 8/03 at 102 Aa2 421,722
Bonds, Series 1993, 7.700%, 8/01/10
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.9%
4,500 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital 11/02 at 102 Baa1 4,660,650
Facilities Revenue Bonds (Summa Health System Project), Series
1992, 6.250%, 11/15/07
9,000 City of Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101 AAA 8,897,220
5.000%, 1/01/31
3,000 County of Franklin, Ohio, Development Revenue Bonds (American 10/09 at 101 A 3,245,580
Chemical Society Project), Series 1999, 5.800%, 10/01/14
1,000 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue Bonds 1/05 at 103 Aa 998,120
(FHA-Insured Mortgage Loan - Hamilton Creek Apartments Project),
Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 3,005 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds 3/05 at 102 Aaa $ 3,180,582
(GNMA Mortgage-Backed Securities Programs), 1995 Series A-1,
6.300%, 9/01/17
1,630 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan No Opt. Call A1 1,633,195
Revenue Bonds, Series 1986A, 5.500%, 12/01/01 (Alternative
Minimum Tax)
4,370 City of Toledo, Ohio, Various Purpose Improvement Bonds (General 12/04 at 102 AAA 4,799,658
Obligation - Limited Tax), Series 1994, 5.750%, 12/01/09
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.8%
955 Oklahoma Housing Finance Agency, Single Family Mortgage Revenue 3/10 at 101 Aaa 1,014,239
Bonds (Homeownership Loan Program), 2000 Series C-2, 6.200%,
9/01/28 (Alternative Minimum Tax)
Oklahoma County Finance Authority, Multifamily Housing First
Mortgage Revenue Bonds (Multiple Apartments Project), Series
1998A:
3,495 7.000%, 4/01/18# 4/06 at 102 N/R 1,048,500
7,000 7.125%, 4/01/28# 4/06 at 102 N/R 2,100,000
9,965 Tulsa County Industrial Authority, Oklahoma, First Mortgage Multifamily 3/11 at 101 N/R 9,284,291
Housing Revenue Bonds (Stoneridge Apartments Project), Series 1999,
6.125%, 3/01/39 (Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Oklahoma, Hospital Revenue and Refunding No Opt. Call AAA 3,932,817
Bonds (Hillcrest Medical Center Project), Series 1996, 6.500%, 6/01/09
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.5%
5,000 Pennsylvania Economic Development Finance Authority, Resource 1/04 at 102 BBB- 5,110,800
Recovery Revenue Bonds (Northampton Generating Project), Senior
Series 1994A, 6.400%, 1/01/09 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.6%
12,390 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds No Opt. Call AAA 15,247,877
(General Obligation Bonds), Series 1997, 6.500%, 7/01/13
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.7%
Piedmont Municipal Power Agency, South Carolina, Electric Revenue
Refunding Bonds, Series 1991:
5,000 6.250%, 1/01/21 No Opt. Call AAA 5,794,950
5,750 4.000%, 1/01/23 1/02 at 100 AAA 4,847,538
5,085 Piedmont Municipal Power Agency, South Carolina, Electric Revenue No Opt. Call AAA 5,590,500
Bonds, 1998A Refunding Series, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4%
1,500 The Metropolitan Government of Nashville and Davidson County, 5/08 at 102 AA 1,527,180
Tennessee, Electric System Revenue Bonds, 1998 Series A,
5.200%, 5/15/23
2,080 Tennessee Housing Development Agency, Mortgage Finance Program 7/04 at 102 AA 2,182,336
Bonds, 1994 Series A, 6.900%, 7/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 9.3%
4,500 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue Bonds 12/01 at 101 BB 4,386,600
(American Airlines, Inc. Project), Series 1990, 7.500%, 12/01/29
(Alternative Minimum Tax)
6,060 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue Bonds No Opt. Call BB 5,849,839
(American Airlines, Inc. Project), Series 1991, 7.000%, 12/01/11
(Alternative Minimum Tax)
3,345 Columbia-Brazoria Independent School District, Brazoria County, Texas, 2/09 at 100 AAA 3,166,778
Unlimited Tax School Building Bonds, Series 1999, 4.750%, 2/01/25
6,000 Garland Housing Finance Corporation, Texas, Multifamily Housing 12/11 at 101 N/R 6,023,520
Mortgage Revenue Bonds (Edgewood Drive Apartments), Series 2000,
7.500%, 6/01/40 (Alternative Minimum Tax)
16,960 Housing Finance Corporation, Harris County, Texas, Multifamily Housing 12/10 at 105 N/R 17,555,296
Bonds (Coolwood Oaks and Haverstock Hill Apartments), Series A,
8.250%, 12/01/31
2,500 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, 1/02 at 102 AAA 2,556,275
Series 1991A, 6.750%, 7/01/21 (Alternative Minimum Tax)
28,305 City of Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 6,760,932
Bonds (Convention Project), Series 2001B, 0.000%, 9/01/28
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of Investments October 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 City of Houston, Texas, Water and Sewer System Junior Lien Revenue 12/07 at 102 AAA $ 4,927,500
Refunding Bonds, Series 1997D, 5.000%, 12/01/25
749 The Midland Housing Finance Corporation, Texas, Single Family 11/05 at 103 Aaa 822,037
Mortgage Revenue Refunding Bonds, Series 1992A, 8.450%, 12/01/11
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds, Series
2001:
2,300 5.500%, 2/15/21 2/11 at 100 AAA 2,406,168
2,400 5.500%, 2/15/23 2/11 at 100 AAA 2,505,336
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 Aaa 2,997,473
3,000 5.125%, 2/15/31 8/11 at 100 Aaa 3,013,740
2,215 North Texas Higher Education Authority Inc., Student Loan Revenue 4/03 at 102 A2 2,305,018
Bonds, Series 1993D, 6.300%, 4/01/09 (Alternative Minimum Tax)
3,410 Retama Development Corporation, Texas, Special Facilities Revenue No Opt. Call AAA 4,824,059
Bonds (Retama Park Racetrack Project), Series 1993, 8.750%, 12/15/12
4,700 Spring Branch Independent School District, Harris County, Texas, 2/11 at 100 AAA 4,727,495
Limited Tax Schoolhouse and Refunding Bonds, Series 2001,
5.125%, 2/01/26
4,452 General Services Commission (an agency of the state of Texas (as 9/03 at 100 1/2 A 4,503,186
Lessee)), Participation Interests, 7.500%, 9/01/22
8,500 Travis County Health Facilities Development Corporation, Texas, 11/03 at 102 Aaa 9,147,105
Hospital Revenue Bonds (Daughters of Charity National Health
System - Daughters of Charity Health Services of Austin), Series
1993B, 6.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.8%
4,845 City of Bountiful, Davis County, Utah, Hospital Revenue Refunding 12/08 at 101 N/R 4,180,799
Bonds (South Davis Community Hospital Project), Series 1998,
5.750%, 12/15/18
17,570 Intermountain Power Agency, Utah, Power Supply Revenue Refunding 7/07 at 102 AAA 18,770,031
Bonds, 1997 Series B, 5.750%, 7/01/19
Intermountain Power Agency, Utah, Power Supply Revenue Bonds,
Series 1996A:
5,065 6.150%, 7/01/14 7/06 at 102 A+*** 5,643,018
2,935 6.150%, 7/01/14 7/06 at 102 A+ 3,198,945
1,100 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100 AA 1,166,143
2000 Series G, 5.875%, 7/01/27 (Alternative Minimum Tax) Utah
Housing Finance Agency, Single Family Mortgage Bonds, 2001
Series C:
2,500 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100 AA- 2,575,450
1,000 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100 Aa2 1,037,720
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3%
2,645 Suffolk Redevelopment and Housing Authority, Virginia, Multifamily 7/02 at 104 Baa2 2,765,215
Housing Revenue Refunding Bonds (Chase Heritage at Dulles Project),
Series 1994, 7.000%, 7/01/24 (Mandatory put 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.3%
1,050 City of Bellevue, King County, Washington, Water and Sewer Revenue 7/04 at 100 Aa2 1,126,199
Refunding Bonds, Series 1994, 5.875%, 7/01/09
1,855 Public Utility District No. 1 of Chelan County, Washington, Chelan 7/09 at 101 AA 1,978,951
Hydro Consolidated System Revenue Bonds, Series 1999A, 6.200%,
7/01/34 (Alternative Minimum Tax)
1,035 Covington Water District, King County, Washington, Water Improvement 3/05 at 100 AAA 1,138,697
and Refunding Revenue Bonds, Series 1995, 6.050%, 3/01/20
(Pre-refunded to 3/01/05)
1,655 City of Everett, Washington, General Obligation - Limited Tax Bonds, 9/07 at 100 Aaa 1,685,849
Series 1997, 5.125%, 9/01/17
1,000 Seattle Indian Services Commission, Washington, Special Obligation 11/04 at 100 AAA 1,074,890
Bonds, Series 1994, 6.000%, 11/01/16
1,640 Housing Authority of Skagit County, Washington, Low-Income Housing 11/04 at 104 AAA 1,767,592
Assistance Revenue Bonds (GNMA Collateralized Mortgage Loan -
Sea Mar Project), Series 1993, 7.000%, 6/20/35
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 1,500 Mukilteo School District No. 6, Snohomish County, Washington, No Opt. Call AAA $ 1,721,370
Refunding Bonds (General Obligation - Unlimited Tax), Series 1993,
5.700%, 12/01/12
1,570 Spokane Downtown Foundation, Washington, Parking Revenue Bonds 8/08 at 102 D 973,400
(River Park Square Project), Series 1998, 5.600%, 8/01/19#
8,155 City of Tacoma, Washington, Electric System Revenue Bonds, Series 1/11 at 101 AAA 8,823,058
2001A Refunding, 5.750%, 1/01/20
4,705 City of Tacoma, Washington, Sewer Revenue Refunding Bonds, Series No Opt. Call AAA 5,930,229
1994B, 8.000%, 12/01/08
State of Washington, General Obligation Bonds, Series 1994B:
45 6.000%, 5/01/19 (Pre-refunded to 5/01/04) 5/04 at 100 AA+*** 48,697
1,955 6.000%, 5/01/19 5/04 at 100 AA+ 2,018,713
1,250 Washington Health Care Facilities Authority, Revenue Bonds (Franciscan 7/02 at 102 AAA 1,312,763
Health System/St. Clare Hospital, Tacoma), Refunding Series 1992,
6.625%, 7/01/20 (Pre-refunded to 7/01/02)
2,000 Washington Health Care Facilities Authority, Revenue Bonds (The 10/02 at 102 AAA 2,112,180
Children's Hospital and Medical Center, Seattle), Series 1992,
6.125%, 10/01/13
1,400 Washington Health Care Facilities Authority, Revenue Bonds (Swedish 11/02 at 102 AAA 1,487,220
Hospital Medical Center, Seattle), Series 1992, 6.300%, 11/15/22
(Pre-refunded to 11/15/02)
2,000 Washington State Health Care Facilities Authority, Revenue Bonds 8/08 at 102 AA 1,895,160
(Highline Community Hospital), Series 1998, 5.000%, 8/15/21
1,000 Washington Health Care Facilities Authority, Revenue Bonds (Harrison 8/13 at 102 AAA 971,040
Memorial Hospital), Series 1998, 5.000%, 8/15/28
4,500 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 Aa1*** 4,843,935
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/13
(Pre-refunded to 7/01/03)
23,000 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 Aa1 23,519,570
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1992A:
5,710 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 5,982,595
1,540 6.250%, 7/01/12 7/02 at 102 Aa1 1,607,852
6,475 Washington Public Power Supply System, Nuclear Project No. 2 No Opt. Call Aa1 7,504,072
Refunding Revenue Bonds, Series 1990A, 7.250%, 7/01/06
11,000 Washington Public Power Supply System, Nuclear Project No. 3 No Opt. Call Aa1 13,091,540
Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09
3,700 Washington Public Power Supply System, Nuclear Project No. 3 7/08 at 102 Aa1 3,741,033
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
1,400 Washington State University, Housing and Dining System Revenue and 10/04 at 101 AAA 1,561,093
Refunding Bonds, Series 1994, 6.375%, 10/01/18
1,000 Yakima-Tieton Irrigation District, Yakima County, Washington, 6/03 at 102 AAA 1,070,010
Refunding Revenue Bonds, Series 1992, 6.125%, 6/01/13
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.8%
7,000 Wisconsin Housing and Economic Development Authority, Home 7/10 at 100 AA 7,370,580
Ownership Revenue Bonds, 2000 Series E, 6.100%, 3/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 959,473 Total Investments (cost $911,922,656) - 98.7% 940,738,441
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 12,650,633
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 953,389,074
====================================================================================================================
* 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. 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.
See accompanying notes to financial statements.
Statement of
NET ASSETS October 31, 2001
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $1,482,733,362 $ 982,278,740 $940,738,441
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value 6,175,000 -- --
Cash 587,706 -- --
Receivables:
Interest 27,476,730 16,939,719 18,727,079
Investments sold 2,925,982 1,217,456 265,000
Other assets 31,498 1,397 78,116
-------------------------------------------------------------------------------------------------------------------------------
Total assets 1,519,930,278 1,000,437,312 959,808,636
-------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 9,300,317 2,654,991
Payable for investments purchased 15,021,572 1,831,638 --
Accrued expenses:
Management fees 782,572 520,805 504,282
Other 258,164 215,635 176,886
Preferred share dividends payable 98,860 60,586 56,834
Common share dividends payable 4,496,873 3,143,665 3,026,569
-------------------------------------------------------------------------------------------------------------------------------
Total liabilities 20,658,041 15,072,646 6,419,562
-------------------------------------------------------------------------------------------------------------------------------
Net assets $1,499,272,237 $ 985,364,666 $953,389,074
===============================================================================================================================
Preferred shares, at liquidation value $ 525,000,000 $ 347,000,000 $338,400,000
===============================================================================================================================
Preferred shares outstanding 21,000 13,880 13,536
===============================================================================================================================
Common shares outstanding 63,785,430 41,093,661 43,236,703
===============================================================================================================================
Net asset value per Common share outstanding (net
assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 15.27 $ 15.53 $ 14.22
===============================================================================================================================
See accompanying notes to financial statements.
Statement of
OPERATIONS Year Ended October 31, 2001
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 82,811,758 $57,220,458 $54,669,009
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 9,087,882 6,062,440 5,875,477
Preferred shares - auction fees 1,312,500 867,500 846,000
Preferred shares - dividend disbursing agent fees 60,000 60,000 80,000
Shareholders' servicing agent fees and expenses 292,986 105,013 137,760
Custodian's fees and expenses 305,703 240,218 212,116
Directors' fees and expenses 17,730 14,680 12,367
Professional fees 34,610 22,670 611,336
Shareholders' reports - printing and mailing expenses 146,843 78,865 87,878
Stock exchange listing fees 49,887 32,814 44,276
Investor relations expense 202,925 134,010 133,585
Other expenses 84,766 59,420 50,955
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 11,595,832 7,677,630 8,091,750
Custodian fee credit (76,259) (109,433) (102,317)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 11,519,573 7,568,197 7,989,433
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 71,292,185 49,652,261 46,679,576
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN FROM INVESTMENTS
Net realized gain from investment transactions 4,799,904 3,225,861 2,478,890
Change in net unrealized appreciation (depreciation) of investments 58,098,521 27,191,816 26,239,764
-----------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 62,898,425 30,417,677 28,718,654
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $134,190,610 $80,069,938 $75,398,230
===================================================================================================================================
See accompanying notes to financial statements.
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
10/31/01 10/31/00 10/31/01 10/31/00 10/31/01 10/31/00
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 71,292,185 $ 70,579,809 $ 49,652,261 $ 49,971,035 $ 46,679,576 $ 47,823,581
Net realized gain (loss)
from investment transactions 4,799,904 (13,990,162) 3,225,861 (541,636) 2,478,890 (2,840,014)
Change in net unrealized
appreciation (depreciation)
of investments 58,098,521 64,295,419 27,191,816 8,913,022 26,239,764 6,074,114
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
operations 134,190,610 120,885,066 80,069,938 58,342,421 75,398,230 51,057,681
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment
income:
Common shareholders (51,191,446) (50,718,989) (36,688,826) (37,973,136) (35,070,055) (35,419,871)
Preferred shareholders (16,366,471) (21,017,392) (10,989,373) (13,958,214) (10,725,951) (13,791,689)
From and in excess of net
realized gains from investment
transactions:
Common shareholders -- -- -- (715,277) -- --
Preferred shareholders -- -- -- (203,920) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (67,557,917) (71,736,381) (47,678,199) (52,850,547) (45,796,006) (49,211,560)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 66,632,693 49,148,685 32,391,739 5,491,874 29,602,224 1,846,121
Net assets at the beginning
of year 1,432,639,544 1,383,490,859 952,972,927 947,481,053 923,786,850 921,940,729
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $1,499,272,237 $1,432,639,544 $985,364,666 $952,972,927 $953,389,074 $923,786,850
===================================================================================================================================
Balance of undistributed net
investment income at the
end of year $ 4,183,239 $ 445,464 $ 2,439,961 $ 465,470 $ 1,661,078 $ 772,462
===================================================================================================================================
See accompanying notes to financial statements.
Notes to
Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
New York Stock Exchange symbols are Nuveen Premium Income Municipal Fund, Inc.
(NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen Premium
Income Municipal Fund 4, Inc. (NPT).
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors of the Funds may establish
a fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
October 31, 2001, Premium Income (NPI) and Premium Income 2 (NPM) had
outstanding when-issued purchase commitments of $15,021,572 and $1,831,638,
respectively. There were no such purchase commitments in Premium Income 4 (NPT).
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities.
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, 2001, have been designated Exempt Interest Dividends.
Notes to
Financial Statements (continued)
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of shares outstanding, by Series and in total, for each of the Funds
is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,800 2,000 2,200
Series M2 2,000 -- --
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series W2 -- -- 520
Series Th 3,800 3,000 2,680
Series F 3,800 2,000 1,800
Series F2 -- 1,880 1,328
--------------------------------------------------------------------------------
Total 21,000 13,880 13,536
================================================================================
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended October 31, 2001.
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 from operations during the reporting period. Actual
results may differ from those estimates.
Audit Guide
In November 2000, the American Institute of Certified Public Accountants (AICPA)
issued a revised version of the AICPA Audit and Accounting Guide for Investment
Companies (the "Guide"). The Guide is effective for annual financial statements
issued for fiscal years beginning after December 15, 2000. It is not anticipated
that the adoption of the Guide will have a significant effect on the financial
statements.
2. FUND SHARES
There were no share transactions during the fiscal year ended October 31, 2001,
nor during the fiscal year ended October 31, 2000, in any of the Funds.
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 3, 2001, to shareholders of record
on November 15, 2001, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0705 $.0765 $.0700
================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the fiscal year ended October
31, 2001, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $291,415,957 $130,239,124 $131,757,507
Short-term municipal securities 40,375,000 28,000,000 47,100,000
Sales and maturities:
Long-term municipal securities 297,902,661 115,528,202 95,019,729
Short-term municipal securities 34,200,000 32,000,000 55,100,000
================================================================================
At October 31, 2001, the cost of investments owned for federal income tax
purposes were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
$1,408,367,289 $919,895,089 $911,927,934
================================================================================
Notes to
Financial Statements (continued)
At October 31, 2001, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
PREMIUM PREMIUM
INCOME INCOME 4
(NPI) (NPT)
--------------------------------------------------------------------------------
Expiration year:
2002 $ -- $ 4,290,147
2003 -- 5,281,759
2004 -- --
2005 -- --
2006 -- --
2007 -- --
2008 12,335,442 2,835,520
--------------------------------------------------------------------------------
Total $12,335,442 $12,407,426
================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at October 31, 2001, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Gross unrealized:
appreciation $88,533,088 $64,069,218 $ 53,572,415
depreciation (7,992,015) (1,685,567) (24,761,908)
--------------------------------------------------------------------------------
Net unrealized appreciation $80,541,073 $62,383,651 $ 28,810,507
================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For the next $3 billion .5875 of 1
For net assets over $5 billion .5750 of 1
--------------------------------------------------------------------------------
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At October 31, 2001, net assets consisted of:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------------------------------------
Preferred shares, $25,000 stated value per share,
at liquidation value $ 525,000,000 $347,000,000 $338,400,000
Common shares, $.01 par value per share 637,854 410,937 432,367
Paid-in surplus 901,245,514 570,703,240 596,492,548
Balance of undistributed net investment income 4,183,239 2,439,961 1,661,078
Accumulated net realized gain (loss) from investment
transactions (12,347,166) 2,055,602 (12,412,704)
Net unrealized appreciation of investments 80,552,796 62,754,926 28,815,785
-------------------------------------------------------------------------------------------------------------
Net assets $1,499,272,237 $985,364,666 $953,389,074
=============================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
=============================================================================================================
Notes to
Financial Statements (continued)
8. INVESTMENT COMPOSITION
At October 31, 2001, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-----------------------------------------------------------------------------
Consumer Staples 5% 3% --%
Education and Civic Organizations 5 4 5
Healthcare 8 4 11
Housing/Multifamily 4 6 15
Housing/Single Family 12 10 7
Long-Term Care 3 -- 1
Tax Obligation/General 13 19 11
Tax Obligation/Limited 16 9 8
Transportation 8 5 7
U.S. Guaranteed 11 31 13
Utilities 13 8 17
Water and Sewer 2 1 5
-----------------------------------------------------------------------------
100% 100% 100%
=============================================================================
Certain long-term investments owned by the Funds are either covered by insurance
issued by several private insurers or are backed by an escrow or trust
containing U.S. Government or U.S. Government agency securities, both of which
ensure the timely payment of principal and interest in the event of default (57%
for Premium Income (NPI), 55% for Premium Income 2 (NPM) and 42% 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.
Financial
HIGHLIGHTs
Selected data for a Common share outstanding throughout each year ended October
31:
Investment Operations Less Distributions
---------------------------------- ---------------------------------------------------------
From From
and in and in
Net Net Excess Excess
Net Investment Investment of Capital of Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
=================================================================================================================
PREMIUM INCOME (NPI)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 $14.23 $1.12 $ .98 $ 2.10 $(.80) $(.26) $ -- $ -- $(1.06)
2000 13.46 1.11 .78 1.89 (.79) (.33) -- -- (1.12)
1999 15.66 1.09 (2.10) (1.01) (.85) (.24) (.07) (.02) (1.18)
1998 15.28 1.15 .43 1.58 (.88) (.25) (.06) (.01) (1.20)
1997 14.96 1.14 .37 1.51 (.94) (.20) (.03) -- (1.17)
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 14.75 1.21 .73 1.94 (.89) (.27) -- -- (1.16)
2000 14.61 1.22 .20 1.42 (.92) (.34) (.02) -- (1.28)
1999 16.15 1.18 (1.48) (.30) (.94) (.24) (.04) (.01) (1.23)
1998 15.80 1.17 .46 1.63 (.93) (.24) (.09) (.02) (1.28)
1997 15.16 1.18 .65 1.83 (.93) (.26) -- -- (1.19)
PREMIUM INCOME 4 (NPT)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 13.54 1.08 .66 1.74 (.81) (.25) -- -- (1.06)
2000 13.50 1.11 .07 1.18 (.82) (.32) -- -- (1.14)
1999 15.05 1.09 (1.56) (.47) (.83) (.24) -- -- (1.07)
1998 14.64 1.07 .42 1.49 (.82) (.26) -- -- (1.08)
1997 14.07 1.08 .58 1.66 (.82) (.27) -- -- (1.09)
=================================================================================================================
Total Returns
----------------------
Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
=============================================================================================
PREMIUM INCOME (NPI)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 $ -- $15.27 $14.2500 26.60% 13.22%
2000 -- 14.23 11.9375 4.10 12.03
1999 (.01) 13.46 12.2500 (14.03) (8.59)
1998 -- 15.66 15.1875 10.60 8.86
1997 (.02) 15.28 14.6250 7.81 8.89
PREMIUM INCOME 2 (NPM)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 -- 15.53 14.6100 17.31 11.63
2000 -- 14.75 13.2500 (2.03) 7.71
1999 (.01) 14.61 14.5000 (8.59) (3.66)
1998 -- 16.15 16.8750 15.98 8.93
1997 -- 15.80 15.5000 16.76 10.72
PREMIUM INCOME 4 (NPT)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 -- 14.22 13.7500 18.68 11.28
2000 -- 13.54 12.3125 3.28 6.58
1999 (.01) 13.50 12.7500 (8.77) (5.03)
1998 -- 15.05 14.8125 14.54 8.58
1997 -- 14.64 13.6875 14.70 10.20
=============================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------
Before Credit
------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
================================================================================================
PREMIUM INCOME (NPI)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 $1,499,272 1.22% 7.49% .79% 4.83%
2000 1,432,640 1.28 8.09 .80 5.05
1999 1,383,491 1.18 7.28 .77 4.79
1998 1,473,755 1.14 7.41 .77 5.00
1997 1,449,660 1.05 7.58 .76 5.51
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 985,365 1.23 7.93 .79 5.10
2000 952,973 1.23 8.38 .78 5.30
1999 947,481 1.15 7.60 .77 5.07
1998 959,840 1.13 7.35 .77 5.03
1997 943,587 1.14 7.73 .77 5.23
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2001 953,389 1.34 7.73 .86 4.95
2000 923,787 1.27 8.22 .80 5.19
1999 921,941 1.20 7.51 .79 4.92
1998 923,004 1.19 7.23 .79 4.79
1997 905,764 1.21 7.62 .79 4.98
================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------
After Credit**
-------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total
Applicable Applicable Net Assets Net Assets
to Common to Common Including Including
Shares++ Shares++ Preferred++ Preferred++
================================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------------------
Year Ended 10/31:
2001 1.21% 7.50% .78% 4.83%
2000 1.27 8.10 .79 5.05
1999 1.17 7.29 .77 4.79
1998 1.14 7.41 .77 5.00
1997 1.05 7.58 .76 5.51
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------
Year Ended 10/31:
2001 1.21 7.95 .78 5.11
2000 1.22 8.39 .77 5.30
1999 1.15 7.60 .77 5.07
1998 1.13 7.35 .77 5.03
1997 1.14 7.73 .77 5.23
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------------------
Year Ended 10/31:
2001 1.33 7.74 .85 4.96
2000 1.26 8.23 .79 5.20
1999 1.20 7.51 .79 4.92
1998 1.19 7.23 .79 4.79
1997 1.21 7.62 .79 4.98
================================================================================
Municipal Auction Rate Cumulative
Preferred Stock at End of Period
-----------------------------------------
Aggregate Liquidation
Portfolio Amount and Market Asset
Turnover Outstanding Value Coverage
Rate (000) Per Share Per Share
================================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------------------
Year Ended 10/31:
2001 20% $525,000 $25,000 $71,394
2000 18 525,000 25,000 68,221
1999 15 525,000 25,000 65,881
1998 19 475,000 25,000 77,566
1997 10 475,000 25,000 76,298
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------
Year Ended 10/31:
2001 12 347,000 25,000 70,992
2000 7 347,000 25,000 68,658
1999 5 347,000 25,000 68,262
1998 7 300,000 25,000 79,987
1997 19 300,000 25,000 78,632
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------------------
Year Ended 10/31:
2001 10 338,400 25,000 70,434
2000 14 338,400 25,000 68,247
1999 14 338,400 25,000 68,110
1998 21 308,400 25,000 74,822
1997 26 308,400 25,000 73,424
================================================================================
* 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 Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in 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.
Build Your Wealth
Automatically
Callout:
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Fund
Information
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
JPMorgan Chase Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the year ended October 31, 2001. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
Serving Investors
for Generations
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products
and services can help you preserve your financial security, talk with your
financial advisor, or call us at (800) 257-8787 for more information, including
a prospectus where applicable. Please read that information carefully before you
invest.
photo of John Nuveen, Sr.
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
logo: Nuveen Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com
FAN-5-10-01