NUVEEN Exchange-Traded Funds
APRIL 30, 1998
Semiannual Report
DEPENDABLE, TAX-FREE INCOME TO HELP YOU KEEP MORE OF WHAT YOU EARN.
NPI
Premium Income
NPM
Premium Income 2
NPT
Premium Income 4
Photo of: Man fishing.
<PAGE>
Highlights
As of April 30, 1998
Contents
1 Dear Shareholder
3 Portfolio Manager Roundtable
5 NPI Performance Overview
6 NPM Performance Overview
7 NPT Performance Overview
8 Portfolio of Investments
31 Statement of Net Assets
32 Statement of Operations
33 Statement of Changes in Net Assets
34 Notes to Financial Statements
38 Financial Highlights
40 Building Better Portfolios
41 Fund Information
================================================================================
Credit Quality Performance Highlights
Nuveen Premium Income Municipal Fund, Inc. (NPI)
o Graphic: 4 stars
Four-star rating by Morningstar*
o Outperformed Lehman Brothers Municipal Bond Index
for one-year period**
o Taxable equivalent yield of 8.84% for investors
in the 31% federal income tax bracket
PIE CHART:
AAA 58%
AA 19%
A 15%
BBB/NR 8%
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
o Steady dividend for 27 consecutive months
o Outperformed Lehman Brothers Municipal Bond Index
for one-year period**
o Taxable equivalent yield of 8.77% for investors
in the 31% federal income tax bracket
PIE CHART:
AAA 47%
AA 16%
A 25%
BBB/NR 12%
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
o Steady dividend for 36 consecutive months
o Outperformed Lehman Brothers Municipal Bond Index
for one-year period**
o Taxable equivalent yield of 8.48% for investors
in the 31% federal income tax bracket
PIE CHART:
AAA 46%
AA 20%
A 20%
BBB/NR 14%
================================================================================
A New Benefit for Nuveen Exchange-Traded Fund Shareholders
The benefits of your Nuveen Exchange-Traded Fund just got better. Now investors
with at least $50,000 in Nuveen holdings - including Exchange-Traded Funds - are
eligible for a reduction in the sales charge on purchases of Class A shares of
any Nuveen Mutual Fund.
This program is available for any of Nuveen's collection of Premier AdviserSM
equity and municipal bond investments. Now you can diversify your portfolio with
the quality investments you count on from Nuveen and the benefit of reduced
rates.
For more information, contact your financial adviser and ask for a prospectus.
Or call Nuveen Investor Services at (800) 257-8787. Please read it carefully
before you invest.
* Overall rating within the municipal bond category for the period ended April
30, 1998. Morningstar proprietary ratings reflect historical risk-adjusted
performance and are subject to change every month. Ratings are calculated from
a fund's three-, five- and 10-year average annual returns in excess of 90-day
Treasury bill returns, with appropriate fee adjustments and a risk factor that
reflects fund performance below 90-day Treasury bill returns. NPI earned three
stars for the three-year period and four stars for the five-year period ended
April 30, 1998. In an investment category, 10% of funds receive five stars and
22.5% receive four stars. 195 funds were rated for the three-year period and
155 for the five-year period, each ending April 30, 1998.
**The Lehman Brothers Municipal Bond Index is an unleveraged index comprised of
more than 42,000 separate issues.
<PAGE>
Blow-in copy:
NOW MAY BE THE TIME TO INVEST IN EUROPE
Europe's strong stock markets and continuing economic development are creating
exceptional opportunities for investors around the world. Now may be the time
to move some of your portfolio into European companies by investing in the
Nuveen European Value Fund.
The Nuveen European Value Fund seeks to invest in a portfolio of quality,
currently undervalued European companies that offer the potential for
significant price appreciation. The fund's overall management is provided by
Nuveen, with Institutional Capital Corporation -- Nuveen's Premier Adviser(sm)
for value investing -- serving as portfolio manager.
Diversifying your portfolio with investments in European stocks can provide the
potential for enhanced returns and reduced risk. As a Nuveen investor, you may
be eligible for a reduced sales charge based on the amount of your current
Nuveen holdings.
Investing overseas may present some special risks, and is not for everyone. To
determine if the European Value Fund would help you build a better portfolio,
talk with your financial adviser and ask for a prospectus, which details all
fees and expenses. A prospectus is also available from Nuveen by calling
(800) 621-7227. Please read it carefully before you invest.
(See other side for a Nuveen product listing)
NUVEEN INVESTMENTS CAN HELP
YOU SUSTAIN THE WEALTH OF A LIFETIME
MUTUAL FUNDS
Nuveen European Value Fund
Nuveen Rittenhouse Growth Fund
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
National Municipal Bond Funds
State-Specific Municipal Bond Funds
UNIT TRUSTS
Equity
Corporate Bond
Municipal Bond
EXCHANGE-TRADED FUNDS
MUNI PREFFERED(R)
PRIVATE ASSET MANAGEMENT
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Mountain Chart:
Bond Buyer 40
4/30/97 5.89
5/31/97 5.74
6/30/97 5.69
7/31/97 5.4
8/31/97 5.55
9/30/97 5.47
10/31/97 5.4
11/30/97 5.36
12/31/97 5.26
1/31/98 5.19
2/28/98 5.24
3/31/98 5.27
4/30/98 5.39
Dear Shareholder
I'm pleased to report that over the past 12 months, the Nuveen Premium Income
exchange-traded funds continued to perform well and meet their objectives of
providing attractive income and after-tax total returns. As of April 30, 1998,
shareholders in these funds were receiving annual current market yields that
ranged from 5.85% to 6.10%. To match these yields, investors in the 31% federal
income tax bracket would have to earn between 8.48% and 8.84% on taxable
alternatives.
The declining interest rate environment over the past year had a significant
impact on the funds' performance. As you can see on the chart below, the yield
on the Bond Buyer 40, a representation of the long-term municipal bond market,
fell from 5.89% to 5.39% during the year. The decline had an impact on the
income of NPI, and its dividend was reduced during the year. As interest rates
declined, higher-yielding bonds that were called or sold from the portfolio had
to be replaced with bonds paying today's lower interest rates. As a result, the
fund's dividend was reduced to compensate for the lower levels of income being
earned by the portfolio.
However, the decline in interest rates also had a positive impact on the funds
because many portfolio holdings appreciated in value during the period. Many of
the bonds in the portfolios have higher coupon rates than are available in
today's market, and the value of those bonds increased as rates trended
downward. The price appreciation resulting from this and other factors led to
the funds' strong total returns over the year.
The Economy in Review
The past 12 months were noteworthy for the ongoing performance of the equity
markets, which continued to exhibit remarkable strength. Fixed-income
investments also enjoyed bullish performance, as declining interest rates and
low inflation provided the ideal backdrop for a bond market rally. Much of the
decline in interest rates resulted from expectations that the financial problems
of Asia would restrain the prices of imported goods and reduce foreign demand
for U.S. products and services, thereby keeping inflation at moderate levels.
These inflation expectations were largely fulfilled, as the Consumer Price Index
rose only 1.4% for the 12 months ended April 1998, remaining at one of its
lowest levels in more than 30 years.
In coming months, we will continue to watch closely several key factors that
are likely to affect the future of the economy, including demand for goods and
services, changes in U.S. production capacity, the availability of qualified
employees, and stability of the money supply. While it is still too early for
the full impact of Asia's financial difficulties to show up in U.S. economic
statistics, the potential long-term effect of this crisis on American markets
is of special concern. We expect that the development of these factors will
continue to influence the tone of the fixed-income markets during the remainder
of the year.
Building Better Portfolios
As economic events unfold, we believe that many investors will find
diversification to be an increasingly important investment strategy. An
appropriately diversified portfolio that is invested in a variety of asset
classes that each react differently to changes in the economic environment can
help to cushion your portfolio against risk.
Many investors select Nuveen's exchange-traded funds because their emphasis on
dependable tax-free income and attractive after-tax returns makes them ideal for
building and maintaining long-term financial security. These funds can work
together with other Nuveen investments to create the foundation of a
diversified, well-balanced portfolio. Recent studies by Nuveen Research have
demonstrated that balanced portfolios combining municipal bonds and stocks
provided superior after-tax returns and lower levels of risk compared with
blends of stocks and taxable bonds. You and your financial adviser may want to
consider combining your Nuveen municipal bond fund with an investment in the new
Nuveen European Value Fund, an equity mutual fund that offers a portfolio of
quality European company stocks for investors seeking long-term growth and
international diversification. This fund is just one of an ever-expanding range
of Nuveen products and services designed to help investors achieve
diversification while building a tax-efficient, risk-sensitive investment
portfolio. If you'd like to learn more about the Nuveen European Value Fund or
any of our other investments, contact your financial adviser or call Nuveen
Investor Services for a prospectus at (800) 257-8787. Please read it carefully
before you invest.
When seeking quality investment solutions that withstand the test of time, we
hope that you continue to think of John Nuveen & Co. On behalf of everyone at
Nuveen, I thank you for your continued confidence in us and our family of
investments.
Sincerely,
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
June 15, 1998
Sidebar text: Nuveen offers an ever-expanding range of products designed to help
investors build a diversified, tax-efficient portfolio.
<PAGE>
Nuveen Exchange-Traded Funds
Portfolio Manager Roundtable
Tom Futrell, Ted Neild and Steve Peterson, portfolio managers of the Nuveen
Premium Income exchange-traded funds, review the past year in the municipal
market and talk about fund performance and opportunities to find value.
What factors influenced the performance of municipal bond funds over the past
year?
Over the past 12 months, we have enjoyed a bull market in fixed-income
investments, including municipal bonds. Bond prices rose as interest rates
continued to drop and inflation remained at 30-year lows. Although still strong,
the performance of the municipal market was moderated by the effect of heavy
supply, as the lower rate environment stimulated a substantial increase in new
issuance as well as the refinancing of existing bonds. The first quarter of 1998
saw $68 billion of new municipal issuance, up 70% from the same period in 1997.
The flood of new issues continued in recent weeks with May's long-awaited sale
of the first segment of Long Island (New York) Power Authority's $7 billion
offering, the largest issuance in municipal bond history. The publicity
surrounding this issue brought an unusual level of attention to the municipal
market and may stimulate additional interest in municipal bonds.
How did the funds perform in this environment?
For the year ended April 30, 1998, the funds posted strong total returns on net
asset value that ranged from 9.72% to 11.48%, equivalent to taxable returns of
12.55% to 14.34% for investors in the 31% federal income tax bracket. The total
returns compare with the unleveraged Lehman Brothers Municipal Bond Index's
annual return of 9.30%.
The strong performance of these funds compared with the Lehman Index can be
attributed in part to their longer durations, which range from 8.95 to 10.37
years on a leverage-adjusted basis, compared with the Lehman index's 7.12 years.
Duration measures a fund's price volatility, or reaction to interest rate
movements. The longer the duration, the more sensitive the fund is to changes in
interest rates. In a year when the yield on the Bond Buyer 40 dropped 50 basis
points, longer duration helped these funds participate more fully in the market
rally. However, it also made them more susceptible to price fluctuations during
periods of rising interest rates.
In reviewing the performance of these funds, it is important to look at
both components of total return: income and price appreciation. Understanding
what influences them can help us measure how well the funds are meeting their
objectives of providing investors with the highest possible level of tax-free
income consistent with capital preservation, as well as enhanced portfolio value
relative to the market.
Income
Despite the steady decline of interest rates over the past year, the Nuveen
Premium Income Municipal Fund (NPI) was the only fund in this report to see a
dividend adjustment. The reason for this can be traced to the larger number of
bond calls that NPI has experienced recently. Whenever a bond is called, sold or
reaches its maturity date, it must be replaced with a bond paying a current
coupon rate. Both of the other premium income funds are newer and were
introduced during periods of lower interest rates than NPI. As a result, they
have not experienced the level of bond calls that affected NPI, and have
produced more stable dividends.
<PAGE>
Price Appreciation
Three major factors impacted the growth in price appreciation over the past
year:
o Declining interest rates: As interest rates declined, the funds' underlying
bonds appreciated in value. The coupon rates of these bonds are also higher
than those available in the current market, making the income level offered by
these funds more attractive.
o Pre-refundings: Declining interest rates also meant an increased number of
pre-refundings. In a pre-refunding, a bond issue is essentially repaid early and
becomes secured by U.S. government or agency securities until it can be called
by the issuer. When bonds are pre-refunded and backed by Treasury securities,
the credit quality of the bond improves, resulting in price appreciation. These
funds have large percentages of pre-refunded bonds, which led to additional
price appreciation.
o Credit upgrades: The continued strength of the U.S. economy helped to boost
the credit quality of many municipal bonds, as evidenced by the fact that credit
upgrades outnumbered down-grades by a margin of approximately 17 to 1 among the
2,879 credit rating revisions issued by Moody's in 1997. During the first
quarter of 1998, upgrades continued to exceed downgrades by a significant
margin. These upgrades, in turn, increased the credit quality and value of many
of the bonds in the portfolios.
Where did you find value in the current market?
The heavy supply of new issues played a large role in our ability to find value
investing opportunities over the past year. The growing new issue supply forced
issuers and underwriters to customize the structure of new deals by including
attractive features such as above-market yields, flexible pricing and special
call provisions. This created several opportunities, especially in undervalued
areas such as FHA-insured hospitals and housing bonds. Heavy volume also enabled
us to purchase bonds with favorable structures at attractive prices in smaller
states such as Arkansas, Kentucky, Michigan and Ohio.
What are your key strategies for the future?
If the difference in yields between higher- and lower-rated bonds remains tight,
we plan to upgrade the credit quality of our portfolios by taking
advantage of the opportunity to purchase high- quality bonds while they are
priced comparably to lower-quality bonds. In the coming year, we will also
continue to work toward diversifying the call risk of the funds. This means we
will strive to purchase bonds with varied call dates so that no large portions
of the portfolios are subject to being called away at any one time.
Our focus remains on selecting undervalued securities that provide attractive
income and the opportunity for price appreciation. We plan to maintain some
liquidity in our portfolio by adding bonds with strong retail appeal that are
easier to sell when a more attractive candidate becomes available. The
research-intensive bond selection process in which Nuveen excels will help us
identify those issues that are most appropriate to our strategies.
<PAGE>
Nuveen Premium Income Municipal Fund, Inc.
Performance Overview
As of April 30, 1998
NPI
Portfolio Statistics
==================================================
Inception Date 7/88
- --------------------------------------------------
Share Price 14 9/16
- --------------------------------------------------
Net Asset Value $15.21
- --------------------------------------------------
Current Market Yield 6.10%
- --------------------------------------------------
Taxable Equivalent Yield(1) 8.84%
- --------------------------------------------------
Fund Net Assets ($000) $1,445,054
- --------------------------------------------------
Average Weighted Maturity (Years) 22.40
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 9.64
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 10.04% 9.72%
- --------------------------------------------------
3-Year 6.66% 7.94%
- --------------------------------------------------
5-Year 3.95% 6.08%
- --------------------------------------------------
Since Inception 7.08% 8.35%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 12.99% 12.55%
- --------------------------------------------------
3-Year 9.77% 10.94%
- --------------------------------------------------
5-Year 7.20% 9.33%
- --------------------------------------------------
Since Inception 10.35% 11.70%
==================================================
Top 5 Sectors
Utilities 19%
- --------------------------------------------------
U.S. Guaranteed 15%
- --------------------------------------------------
Housing (Single-Family) 13%
- --------------------------------------------------
Tax Obligation (General) 12%
- --------------------------------------------------
Tax Obligation (Limited) 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
based on current market yield and a federal income tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The fund also paid shareholders taxable distributions in December of $0.0577.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends(3)
5/97 0.0765
6/97 0.0765
7/97 0.0765
8/97 0.0765
9/97 0.0765
10/97 0.0765
11/97 0.074
12/97 0.074
1/98 0.074
2/98 0.074
3/98 0.074
4/98 0.074
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc.
Performance Overview
As of April 30, 1998
NPM
Portfolio Statistics
==================================================
Inception Date 7/92
- --------------------------------------------------
Share Price 15 3/8
- --------------------------------------------------
Net Asset Value $15.73
- --------------------------------------------------
Current Market Yield 6.05%
- --------------------------------------------------
Taxable Equivalent Yield(1) 8.77%
- --------------------------------------------------
Fund Net Assets ($000) $941,721
- --------------------------------------------------
Average Weighted Maturity (Years) 20.86
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 8.47
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 12.19% 11.48%
- --------------------------------------------------
3-Year 14.04% 10.40%
- --------------------------------------------------
5-Year 8.43% 8.01%
- --------------------------------------------------
Since Inception 7.16% 8.48%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 15.14% 14.34%
- --------------------------------------------------
3-Year 17.18% 13.34%
- --------------------------------------------------
5-Year 11.58% 10.97%
- --------------------------------------------------
Since Inception 10.17% 11.36%
==================================================
Top 5 Sectors
U.S. Guaranteed 24%
- --------------------------------------------------
Tax Obligation (General) 16%
- --------------------------------------------------
Housing (Single-Family) 13%
- --------------------------------------------------
Tax Obligation (Limited) 12%
- --------------------------------------------------
Housing (Multifamily) 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
based on current market yield and a federal income tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
3 The fund also paid shareholders taxable distributions in December of $0.0891.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends(3)
5/97 0.0775
6/97 0.0775
7/97 0.0775
8/97 0.0775
9/97 0.0775
10/97 0.0775
11/97 0.0775
12/97 0.0775
1/98 0.0775
2/98 0.0775
3/98 0.0775
4/98 0.0775
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc.
Performance Overview
As of April 30, 1998
NPT
Portfolio Statistics
==================================================
Inception Date 2/93
- --------------------------------------------------
Share Price 13 15/16
- --------------------------------------------------
Net Asset Value $14.59
- --------------------------------------------------
Current Market Yield 5.85%
- --------------------------------------------------
Taxable Equivalent Yield(1) 8.48%
- --------------------------------------------------
Fund Net Assets ($000) $904,386
- --------------------------------------------------
Average Weighted Maturity (Years) 19.25
- --------------------------------------------------
Leverage-Adjusted Duration (Years) 10.37
==================================================
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 14.75% 10.90%
- --------------------------------------------------
3-Year 12.67% 9.75%
- --------------------------------------------------
5-Year 5.86% 6.95%
- --------------------------------------------------
Since Inception 4.95% 6.74%
==================================================
Taxable Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 17.68% 13.61%
- --------------------------------------------------
3-Year 15.75% 12.53%
- --------------------------------------------------
5-Year 8.90% 9.77%
- --------------------------------------------------
Since Inception 7.85% 9.46%
==================================================
Top 5 Sectors
Health Care 17%
- --------------------------------------------------
Utilities 15%
- --------------------------------------------------
U.S. Guaranteed 13%
- --------------------------------------------------
Tax Obligation (General) 12%
- --------------------------------------------------
Housing (Multifamily) 10%
- --------------------------------------------------
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
based on current market yield and a federal income tax rate of 31%.
2 Taxable equivalent total return is based on the annualized total return and a
federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen fund on an after-tax
basis.
Bar Chart:
1997-1998 Monthly Tax-Free Dividends
5/97 0.068
6/97 0.068
7/97 0.068
8/97 0.068
9/97 0.068
10/97 0.068
11/97 0.068
12/97 0.068
1/98 0.068
2/98 0.068
3/98 0.068
4/98 0.068
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. (NPI)
April 30, 1998
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alaska - 0.4%
$ 170,000 Alaska State Housing Finance Corporation, Collateralized Home Mortgage Bonds, 1987 Series B,
8.750%, 12/01/16 6/98 at 102 Aaa $ 172,395
6,000,000 North Slope Borough, Alaska, General Obligation Refunding Bonds of 1988, Series G
8.350%, 6/30/98 No Opt. Call A- 6,041,340
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.3%
2,630,000 The Industrial Development Authority of the City of Phoenix, Arizona, Home Purchase Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1988B, 8.200%, 4/01/22
(Alternative Minimum Tax) 10/98 at 102 AAA 2,701,931
11,630,000 The Industrial Development Authority of the County of Pima (Arizona), Industrial Development
Lease Obligation Refunding Revenue Bonds, 1998 Series A (Irvington Project),
7.250%, 7/15/10 1/02 at 103 Aaa 12,902,089
3,340,000 The Industrial Development Authority of the County of Pima, Single Family Mortgage
Revenue Bonds (GNMA Mortgage-Backed Securities Program), Series 1988, 8.125%, 9/01/20
(Alternative Minimum Tax) 3/99 at 102 AAA 3,446,980
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.4%
5,250,000 Arkansas Development Finance Authority, Driver's License Revenue Bonds (Arkansas State Police -
Headquarters and Wireless Data Equipment), Series 1997, 5.400%, 6/01/18 6/07 at 100 Aaa 5,275,935
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 16.0%
16,720,000 California Health Facilities Financing Authority, Kaiser Permanente, Medical Care Program,
Semiannual Tender Revenue Bonds, 1985 Tender Bonds, 5.550%, 8/15/25 2/02 at 101 A+ 16,759,459
13,650,000 California Health Facilities Financing Authority, Hospital Revenue Bonds (Children's Hospital
of Los Angeles), 1991 Series A, 7.125%, 6/01/21 (Pre-refunded to 6/01/01) 6/01 at 102 Aaa 15,030,561
23,725,000 State Public WorksBoard of the State of California, Lease Revenue Refunding Bonds (The
Regents of the University of California), 1993 Series A (Various University of California Projects),
5.500%, 6/01/21 6/03 at 102 Aa3 23,959,166
11,395,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department of
Corrections), 1993 Series E (California State Prison-Madera County (II)),
5.500%, 6/01/15 No Opt. Call A 11,870,399
State of California, Veterans General Obligation Bonds, Series BH:
10,250,000 5.250% 12/01/12 (Alternative Minimum Tax) 12/08 at 101 Aaa 10,284,850
6,000,000 5.600%, 12/01/32 (Alternative Minimum Tax) 12/03 at 102 A1 6,047,580
15,975,000 State of California Department of Transportation, East Bay State Building Authority,
Certificates of Participation, Series 1991A, 6.500%, 3/01/16
(Pre-refunded to 3/01/01) 3/01 at 102 A*** 17,246,291
13,000,000 State of California, Various Purpose General Obligation Refunding Bonds,
5.150%, 10/01/19 10/03 at 102 A1 12,735,190
15,420,000 Los Angeles Convention and Exhibition Center Authority, Lease Revenue Bonds, 1993
Refunding Series A, The City of Los Angeles (California), 5.375%, 8/15/18 8/03 at 102 Aaa 15,460,092
5,000,000 Department of Water and Power of the City of Los Angeles, California, Electric Plant Refunding Revenue
Bonds, Second Issue of 1993, 4.750%, 11/15/19 11/03 at 102 Aaa 4,631,000
12,250,000 Los Angeles County Transportation Commission (California), Sales Tax Revenue Refunding Bonds,
Series 1991-B, 5.750%, 7/01/18 7/01 at 100 AA- 12,457,883
1,285,000 City of Martinez (California), Home Mortgage Revenue Bonds, 1983 Issue A,
10.750%, 2/01/16 No Opt. Call Aaa 1,964,123
4,125,000 Redevelopment Agency of the City of Moorpark, Moorpark Redevelopment Project, 1993 Tax
Allocation Bonds, 6.125%, 10/01/18 10/03 at 102 A- 4,303,076
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
$ 20,000,000 City of Pomona, California, Single Family Mortgage Revenue Refunding Bonds (GNMA and FNMA
Mortgage-Backed Securities), Series 1990A, 7.600%, 5/01/23 No Opt. Call Aaa $ 26,018,000
5,000,000 Sacramento MunicipalUtility District, Electric Revenue Refunding Bonds, Series 1993D,
5.250%, 11/15/20 11/03 at 102 Aaa 4,947,750
San Bernardino Joint Powers Financing Authority, Tax Allocation Refunding Bonds, Series 1995A:
6,675,000 5.750%, 10/01/15 10/05 at 102 Aaa 7,006,214
12,500,000 5.750%, 10/01/25 10/05 at 102 Aaa 12,978,000
3,000,000 San Diego Public Facilities Financing Authority, Sewer Revenue Bonds,
Series 1993, 5.250% 5/15/20 5/03 at 102 Aaa 2,969,010
10,000,000 San Joaquin Hills Transportation Corridor Agency, Toll Road Refunding Revenue Bonds, Series 1997A
5.250%, 1/15/30 1/07 at 102 Aaa 9,832,300
17,540,000 The Regents of the University of California, Refunding Revenue Bonds (Multiple Purpose Projects),
Series B, 4.750%, 9/01/21 9/03 at 102 Aaa 16,123,645
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.2%
3,000,000 Colorado Housing and Finance Authority, Single Family Program, 1997 Series B-2 Senior Bonds,
7.000%, 5/01/26 (Alternative Minimum Tax) 5/07 at 105 Aa2 3,327,600
4,500,000 Colorado Housing and Finance Authority, Single Family Program, 1997 Series C-2 Senior Bonds,
6.875%, 11/01/28 (Alternative Minimum Tax) 11/07 at 105 Aa2 5,012,190
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D:
9,450,000 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call Baa1 11,731,325
1,725,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Aaa 1,947,301
6,550,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa1 7,271,679
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C:
1,830,000 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,034,320
6,870,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Baa1 7,427,707
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B:
715,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Aaa 810,345
2,785,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Baa1 3,081,213
2,500,000 Colorado Local Single Family Mortgage Revenue Bonds (City and County of Denver, Colorado -
GNMA Mortgage-Backed Securities Program), Series 1988A, 8.125%, 12/01/20
(Alternative Minimum Tax) 12/98 at 102 AAA 2,571,850
882,051 El Paso County, Colorado, Single Family Mortgage Revenue Tax-Exempt Refunding Bonds,
Series 1992A Class A-2, 8.750%, 6/01/11 No Opt. Call Aaa 966,384
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.8%
10,470,000 District of Columbia, Hospital Revenue Refunding Bonds (Providence Hospital Issue), Series 1988A,
7.875%, 12/01/15 (Pre-refunded to 12/01/98) 12/98 at 102 AA+*** 10,917,069
7,505,000 District of Columbia (Washington, D.C.), General ObligationBonds, Series 1998B
6.000%, 6/01/20 No Opt. Call Aaa 8,204,241
14,800,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage Revenue
Bonds, Series 1988E-4, 6.375%, 6/01/26 (Alternative Minimum Tax) 12/04 at 103 AAA 15,573,744
5,750,000 District of Columbia, Revenue Bonds (Association of American Medical Colleges Issue),
Series 1997A, 5.375%, 2/15/27 8/07 at 102 Aaa 5,728,610
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.3%
8,250,000 Florida Housing Finance Agency, GNMA Collateralized Home Ownership Mortgage Revenue
Bonds, 1988 Series G1 Bonds, 8.300%, 6/01/20 (Alternative Minimum Tax) 12/98 at 103 Aaa 8,550,548
9,290,000 State of Florida, Full Faith and Credit Department of Transportation Right-of-Way Acquisition
and Bridge Construction Bonds, Series 1995, 5.800%, 7/01/21 7/05 at 101 AA+ 9,675,256
Greater Orlando Aviation Authority, Airport Facilities Revenue
Bonds, Series 1988 of the City of Orlando, Florida:
1,470,000 8.375%, 10/01/16 (Alternative Minimum Tax) (Pre-refunded to 10/01/98) 10/98 at 102 A1 1,526,580
13,530,000 8.375%, 10/01/16 (Alternative Minimum Tax) 10/98 at 102 A1 14,016,133
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Georgia - 1.8%
$ 1,925,000 Urban Residential Finance Authority of the City of Atlanta, Georgia, Single Family Mortgage Revenue
Bonds (GNMA Collateralized Home Mortgage Program), Series 1988, in cooperation with the
Housing Authority of Fulton County, Georgia, 8.250%, 10/01/21
(Alternative Minimum Tax) 10/98 at 103 AAA $ 1,989,545
23,420,000 Development Authority of Monroe County (Georgia), Pollution Control Revenue Bonds (Georgia Power
Company Plant Scherer Project), Second Series 1994, 6.750%, 10/01/24 10/99 at 102 A1 24,456,335
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 6.5%
8,440,000 Illinois Development Finance Authority, Pollution Control Refunding Revenue Bonds, 1994
Series A (Illinois Power Company Project), 5.700%, 2/01/24 2/04 at 102 Aaa 8,694,804
8,500,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds, The University of Chicago,
Series 1993B, 5.600%, 7/01/24 7/03 at 102 Aa1 8,659,885
5,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 (Highland Park Hospital)
6.200%, 10/01/22 10/02 at 102 Aaa 5,360,750
2,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997A (Highland Park Hospital
Project), 5.750%, 10/01/26 10/07 at 102 Aaa 2,062,420
17,545,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997 (Sherman Health Systems),
5.250%, 8/01/27 8/07 at 101 Aaa 17,058,126
11,900,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1988B (Evangelical Hospital Corporation),
8.100%, 1/01/08 (Pre-refunded to 1/01/99) 1/99 at 102 Aaa 12,462,513
690,000 Illinois Housing Development Authority, Residential Mortgage Revenue Bonds, 1988 Series C,
8.100%, 2/01/22 (Alternative Minimum Tax) 8/98 at 102 Aa2 706,160
10,595,000 City of Chicago - O'Hare International Airport, Special
Facility Revenue Bonds (United Airlines, Inc. Project), Series
1988A, 8.400%, 5/01/18 (Alternative Minimum Tax) 5/99 at 103 Baa2 11,267,677
6,280,000 City of Chicago (Illinois), Chicago - O'Hare International Airport,General Airport Second Lien
Revenue Refunding Bonds, 1993 Series C, 5.000%, 1/01/18 1/04 at 102 Aaa 6,028,863
4,860,000 City of Chicago, Collateralized Single Family Mortgage Revenue Bonds, Series 1996-A,
7.000%, 9/01/27 (Alternative Minimum Tax) 3/06 at 105 Aaa 5,391,295
10,000,000 The County of Cook, Illinois, General Obligation Bonds, Series 1993A,
5.000%, 11/15/23 11/03 at 100 Aaa 9,502,000
785,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties,
Illinois, General Obligation Bonds, Series 1992B, 9.000%, 6/01/06 No Opt. Call Aaa 1,013,529
4,925,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties,
Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/06 No Opt. Call Aaa 6,358,766
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 1.3%
4,300,000 Indiana State Office Building Commission, Correctional Facilities Program Revenue Bonds,
Series 1995A, 5.500%, 7/01/20 7/05 at 102 Aaa 4,349,020
8,000,000 Metropolitan School District of Steuben County Middle School Building Corporation, First Mortgage
Bonds, Series 1995, Steuben County, Indiana, 6.375%, 7/15/16 7/05 at 102 Aaa 8,808,640
5,300,000 Whitley County Middle School Building Corporation,First Mortgage Bonds, Series 1994, Columbia City,
Indiana, 6.250%, 7/15/15 1/04 at 102 Aaa 5,737,992
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.7%
3,000,000 Iowa Finance Authority, Private College Refunding Revenue Bonds (Drake University Project) Series 1996
5.400%, 12/01/16 12/05 at 102 Aaa 3,032,970
5,680,000 Iowa Finance Authority, Variable Rate Demand Industrial Revenue Refunding Bonds, Series A 1989
(Urbandale Hotel Corporation Project No. 00475), 8.500%, 8/01/16 (Alternative Minimum Tax)
(Pre-refunded to 7/15/14) 7/14 at 100 AAA 7,792,790
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.6%
7,735,000 Sedgwick County, Kansas and Shawnee County, Kansas, GNMA Collateralized Mortgage
Revenue Bonds, 1988 Series E, 8.250%, 11/01/20 (Alternative Minimum Tax) 11/98 at 103 AAA 8,016,786
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Kentucky - 0.6%
$ 8,470,000 Kentucky Development Finance Authority, Hospital Facility Revenue Refunding Bonds (St. Elizabeth
Medical Center), Series 1991-A 9.000%, 11/01/00 No Opt. Call Aaa $ 9,135,319
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.7%
7,660,000 Louisiana Public Facilities Authority, ExtendedCare Facilities RevenueBonds (Comm-Care
Corporation Project), Series 1994, 11.000%, 2/01/14 No Opt.Call BBB 10,869,617
11,860,000 Louisiana Stadium and Exposition District, Hotel Occupancy Tax Bonds, Series 1995-B Series 1995-B,
6.375%, 7/01/25 7/05 at 102 Aaa 13,130,562
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.9%
3,000,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds, Semass Project,
Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 7/01 at 103 N/R 3,365,280
15,000,000 Massachusetts Industrial Finance Agency, GeneralObligation Bonds, Suffolk University, Series 1997,
5.250%, 7/01/27 7/07 at 102 Aaa 14,778,600
8,800,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1992 Series A, 5.500%,
7/15/22 (Pre-refunded to 7/15/02) 7/02 at 100 Aaa 9,193,008
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 2.9%
4,000,000 School District of the City of Detroit, Wayne County, Michigan School Building and Site Improvement and
Refunding Bonds (Unlimited Tax General Obligation), Series 1993,
5.400%, 5/01/13 5/03 at 102 AA+ 4,069,920
10,550,000 City of Detroit, Michigan, Sewage Disposal System Revenue Bonds,
Series 1995-A, 5.000%, 7/01/25 7/05 at 100 Aaa 10,052,462
Hudsonville Public Schools, Counties of Ottawa and Allegan,
State of Michigan, 1997 School Building and Site and Refunding
Bonds (General Obligation - Unlimited Tax):
10,510,000 5.150%, 5/01/22 5/08 at 100 Aaa 10,241,575
8,145,000 5.150%, 5/01/27 5/08 at 100 Aaa 7,917,999
9,625,000 Livonia Public Schools School District, County of Wayne, State of Michigan, 1993 Refunding Bonds,
5.500%, 5/01/21 5/03 at 102 Aaa 9,713,935
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.8%
2,910,000 The Minneapolis/Saint Paul Housing FinanceBoard, Single Family Mortgage Revenue Bonds
(Minneapolis/Saint Paul Family Housing Program, Phase X, FNMA and GNMA Mortgage-Backed
Securities Program), Series 1994, 7.500%, 11/01/27
(Alternative Minimum Tax) 11/04 at 102 AAA 3,107,589
21,680,000 The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, Sales Tax Revenue
Refunding Bonds (Civic Center Project), Series 1996, 7.100%, 11/01/23 11/15 at 103 Aaa 26,327,758
2,900,000 Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, Single Family Mortgage
Revenue Bonds, Refunding Series 1991-B, 7.250%, 9/01/11 No Opt. Call Aa 3,110,453
7,675,000 Port Authority of the City of Saint Paul, Energy Park Tax Increment Revenue Refunding Bonds, Series 1998,
8.000%, 12/01/07 (Pre-refunded to 12/01/98) 12/98 at 102 AAA 8,011,472
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.5%
6,540,000 Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds
(Homeownership Loan Program), 1996 Series C, 7.450%, 9/01/27
(Alternative Minimum Tax) 3/07 at 105 AAA 7,382,548
11,120,000 Francis Howell School District,St. Charles County, Missouri, General Obligation Refunding Bonds
Series 1994A, 7.800%, 3/01/08 No Opt. Call Aaa 13,793,137
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.1%
29,410,000 State of Nevada, Colorado River Commission, General Obligation (Limited Tax) (Revenue Supported)
Bonds, Series 1994, 5.500%, 7/01/27 7/04 at 101 AA 29,793,506
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.1%
10,000,000 Business Finance Authority of the State of New Hampshire, Pollution Control Refunding Revenue
Bonds (The United Illuminating Company Project-1993 Series A),
5.875%, 10/01/33 10/03 at 102 BBB- 10,109,500
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New Hampshire (continued)
$ 11,000,000 New Hampshire Housing FinanceAuthority, Single Family Mortgage Revenue Bonds, 1993 Series B,
6.050%, 7/01/25 7/03 at 102 Aa $ 11,393,030
8,900,000 New Hampshire Housing Finance Authority, SingleFamily Mortgage Acquisition Revenue Bonds
1996 Series B, 6.400%, 1/01/27 (Alternative Minimum Tax) 7/06 at 102 Aa3 9,346,869
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.1%
15,000,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue Bonds, 1997 Series U,
5.850%, 4/01/29 (Alternative Minimum Tax) 10/07 at 101 1/2 Aaa 15,633,900
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.4%
5,190,000 New Mexico Mortgage Finance Authority,Single Family Mortgage Purchase Refunding Senior Bonds,
1992 Series A, 6.900%, 7/01/24 7/02 at 102 Aa1 5,499,791
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 8.4%
10,000,000 New York Local Government Assistance Corporation, Series 1993 B, Refunding Bonds,
5.000%, 4/01/23 4/04 at 100 A+ 9,468,200
12,365,000 New York State Energy Research and Development Authority, Facilities Revenue Bonds, Series
1993 A (Consolidated Edison Company of New York, Inc. Project), 6.000%, 3/15/28,
(Alternative Minimum Tax) 3/03 at 102 A1 12,937,129
19,180,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home FHA-Insured
Mortgage Revenue Bonds, 1993 Series B, 5.500%, 2/15/22 2/04 at 102 AAA 19,298,916
18,000,000 Metropolitan Transportation Authority (New York), Commuter Facilities 1987 Service Contract Bonds,
Series 2, 8.000%, 7/01/18 (Pre-refunded to 7/01/98) 7/98 at 102 Aaa 18,477,720
7,500,000 The City of New York, General Obligation Bonds, Fiscal 1991 Series B,
9.500%, 6/01/03 No Opt. Call A3 9,110,550
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series G,
5.750%, 2/01/07 2/06 at 101 1/2 A3 10,576,400
10,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series G,
6.000%, 10/15/26 10/07 at 101 A3 10,553,200
16,000,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds,
Fiscal 1996 Series B, 5.750%, 6/15/26 6/06 at 101 Aaa 16,608,320
16,125,000 New York City Transitional Finance Authority, Future Tax Secured Bonds, Fiscal 1998 Series C
4.750%, 5/01/23 (WI) 5/08 at 101 AA 14,799,686
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.3%
5,935,000 Ohio Housing Finance Agency,Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), 1988 Series B, 8.250%, 12/15/19
(Alternative Minimum Tax) 12/98 at 102 AAA 6,242,967
12,360,000 State of Ohio Turnpike Revenue Bonds, 1994 Series A, Issued by the Ohio Turnpike Commission,
5.750%, 2/15/24 2/04 at 102 AA- 12,902,480
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.2%
10,390,000 Oklahoma Housing FinanceAgency, GNMA (Collateralized Single Family Mortgage Revenue
Bonds, Series 1988A, 8.250%, 12/01/20 (Alternative Minimum Tax) 12/98 at 102 AAA 10,726,844
6,605,000 Washington County Medical Authority (Bartlesville, Oklahoma), Hospital Revenue Bonds (Jane Phillips
Episcopal Hospital), Series 1989A, 8.500%, 11/01/10
(Pre-refunded to 5/01/99) 5/99 at 102 N/R*** 7,027,984
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.8%
10,000,000 Pennsylvania Housing Finance Agency,Single Family MortgageRevenue Bonds, Series 1993 - 37A,
5.450%, 10/01/17 10/03 at 102 AA+ 10,084,500
12,875,000 Allegheny County Hospital Development Authority (Pennsylvania), Health Center Revenue Bonds,
Series 1992A (Presbyterian University Health System, Inc. Project),
6.250%, 11/01/23 11/02 at 100 Aaa 13,665,654
5,295,000 The School District of Philadelphia, Pennsylvania, General Obligation Bonds, Series B of 1995,
5.500%, 9/01/25 9/05 at 101 Aaa 5,356,210
10,180,000 City of Philadelphia, Pennsylvania, Water and Sewer RevenueBonds, Sixteenth Series, 7.500%,
8/01/10 (Pre-refunded to 8/01/01) 8/01 at 102 AAA 11,350,191
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Rhode Island - 0.9%
$ 13,200,000 Rhode Island Health and Educational Building Corporation, Hospital Financing RevenueBonds,
Lifespan Obligated Group Issue, Series 1996, 5.250%, 5/15/26 5/07 at 102 Aaa $ 12,804,000
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.2%
17,250,000 South Carolina Jobs-Economic Development Authority, Hospital Revenue Bonds (Anderson Area
Medical Center, Inc.), Series 1996, 5.250%, 2/01/26 2/06 at 102 Aaa 16,878,608
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 9.2%
10,305,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, Series 1990 (American Airlines, Inc.
Project), 7.500%, 12/01/29 (Alternative Minimum Tax) 12/00 at 102 Baa2 11,119,095
11,020,000 Brazos River Authority (Texas), Collateralized Pollution Control Revenue Bonds (Texas
Utilities Electric Company Project), Series 1994A, 7.875%, 3/01/21
(Alternative Minimum Tax) 3/01 at 102 Baa1 12,088,720
25,000,000 Brazos River Authority, Revenue Refunding Bonds (Houston Industries, Inc. Project), Series 98A,
5.125%, 5/01/19 5/08 at 102 Aaa 24,203,500
5,615,000 Dallas-Fort Worth International Airport Facility Improvement Corporation, American Airlines, Inc.,
Revenue Bonds, Series 1990, 7.500%, 11/01/25 (Alternative Minimum Tax) 11/00 at 102 Baa2 6,048,927
40,000,000 Harris County Health Facilities Development Corporation, Adjustable Convertible Extendable Securities
(GreaterHouston Pooled Health Care Loan Program), Series 1985B, 7.375%, 12/01/25
(Mandatory put 12/01/98) 12/98 at 100 A1 40,628,800
12,700,000 Harris County, Texas, Toll Road Multiple Mode Senior Lien Revenue Bonds, Series 1985-D,
8.300%, 8/15/17 (Pre-refunded to 8/15/98) 8/98 at 103 AAA 13,237,464
15,000,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding Bonds,
Series 1994, 5.300%, 8/15/13 8/04 at 102 Aaa 15,229,950
4,750,000 Matagorda County Navigation, District Number One (Texas), Pollution Control Revenue Refunding Bonds
(Central Power and Light Company Project), Series 1995, 6.100%, 7/01/28 7/00 at 102 Aaa 4,991,823
4,500,000 Tyler Health Facilities Development Corporation, Hospital Refunding Revenue Bonds (East Texas
Hospital Foundation Project), Series 1988A, 8.250%, 11/01/06
(Pre-refunded to 11/01/98) 11/98 at 102 N/R*** 4,686,075
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.6%
8,000,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1997 Series F, 5.750%, 7/01/28
(Alternative Minimum Tax) 7/07 at 101 1/2 Aaa 8,191,440
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont - 1.5%
20,330,000 Vermont Housing Finance Agency,Single Family Housing Bonds, Series 9, 5.900%, 5/01/29
(Alternative Minimum Tax) 6/07 at 101 1/2 Aaa 21,099,694
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.7%
1,000,000 Virginia Housing Development Authority, Commonwealth Mortgage Bonds, 1987 Series C,
Subseries C-7, 8,375% 1/01/28 (Alternative Minimum Tax) 1/99 at 102 Aa1 1,005,110
10,000,000 Prince William County Service Authority (Virginia), Water and Sewer System Refunding Revenue
Bonds, Series 1993, 5.000%, 7/01/21 7/03 at 102 Aaa 9,576,000
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 14.8%
14,500,000 Washington Public Power Supply System, Nuclear Project No. 2 Refunding Bonds, Series 1998A,
5.000%, 7/01/12 7/08 at 102 Aa1 14,125,610
9,350,000 Washington Public Power Supply System, Refunding Revenue Bonds, Series 1997A, Nuclear Project No. 3
5.250%, 7/01/15 7/07 at 102 Aa1 9,198,717
12,950,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds, Series 1993A
5.700%, 7/01/17 7/03 at 102 Aaa 13,233,605
29,870,000 Washington Public Power Supply System Nuclear Project No. 1, Refunding Revenue Bonds,
Series 1993B, 5.600%, 7/01/15 7/03 at 102 Aaa 30,439,024
4,300,000 Washington Public Power Supply System Nuclear Project No. 1, Refunding RevenueBonds,
Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 4,600,441
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Washington (continued)
$ 15,960,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds,
Series 1989A, 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa $ 16,918,255
14,440,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds,
Series 1993A, 5.750%, 7/01/12 7/03 at 102 Aa1 14,943,956
6,770,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds,
Series 1993B, 5.625%, 7/01/12 7/03 at 102 Aa1 6,952,045
7,500,000 Washington Public Power Supply System, Nuclear Project No. 2, Refunding Revenue Bonds,
Series 1991A, 6.000%, 7/01/12 (Pre-refunded to 7/01/01) 7/01 at 100 Aa1 7,870,125
22,880,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds,
Series 1993C, 5.375%, 7/01/15 7/03 at 102 Aa1 22,638,158
13,500,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds,
Series 1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 14,443,245
7,275,000 Washington Public Power Supply System, Nuclear Project No. 3, Refunding Revenue Bonds,
Series 1998A, 5.125%, 7/01/18 7/08 at 102 Aa1 7,039,145
Public Utility District No. 1 of Chelan County, Washington, Chelan Hydro Consolidated System Revenue
Bonds, Series 1997A:
11,820,000 5.650%, 7/01/32 (Alternative Minimum Tax) (Mandatory put 7/01/09) 7/07 at 102 AA 11,928,152
8,000,000 5,650%, 7/01/32 (Alternative Minimum Tax) (Mandatory put 7/01/09) 7/07 at 102 AA 8,073,199
17,050,000 Municipality of Metropolitan Seattle (Seattle, Washington), Sewer Refunding Revenue Bonds,
Series Z, 5.500%, 1/01/33 1/03 at 102 Aaa 17,162,018
6,360,000 Public Utility District No. 1 of Snohomish County,Washington, Generation System Revenue Bonds,
Series 1993, 5.500%, 1/01/14 1/03 at 100 Aaa 6,440,326
7,000,000 City of Spokane, Washington, Regional Solid Waste Management System Revenue Bonds,
Series 1989B, 7.750%, 1/01/11 (Alternative Minimum Tax) 1/99 at 102 Aaa 7,288,819
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.1%
15,000,000 West Virginia Housing Development Fund, Housing Finance Bonds,
1992 Series D, 7.050%, 11/01/24 5/02 at 102 Aaa 16,158,149
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.4%
5,250,000 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series X, 5.500%, 7/01/25 7/05 at 100 Baa1 5,274,254
- ------------------------------------------------------------------------------------------------------------------------------------
$1,366,482,051 Total Investments - (cost $1,362,041,639) - 98.5% 1,423,971,450
==============
Other Assets Less Liabilities - 1.5% 21,082,357
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,445,053,807
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM)
April 30, 1998
(Unaudited)
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alaska - 0.5%
$ 3,500,000 Anchorage Parking Authority, Lease Revenue Refunding Bonds, Series 1993 (5th Avenue Garage Project),
6.750%, 12/01/08 12/02 at 102 Baa1 $ 3,820,460
845,000 City of Valdez, Alaska, Home Mortgage Revenue Refunding Bonds, 1992 Series,
7.900%, 2/01/10 8/02 at 102 A1 908,231
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 3.1%
The Industrial Development Authority of the County of Mohave, Hospital System Revenue Refunding Bonds
(Medical Environments, Inc. and Phoenix Baptist Hospital and Medical Center, Inc.), Series 1993:
5,705,000 6.250%, 7/01/03 No Opt. Call Aaa 6,167,333
3,000,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 3,366,780
9,000,000 City of Phoenix (Arizona), Civic Improvement Corporation, Wastewater System Lease Revenue Bonds,
Series 1993, 6.125%, 7/01/14 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 9,864,900
4,380,000 City of Phoenix Civic Improvement Corporation (Arizona), Wastewater System Lease Revenue Refunding
Bonds, Series 1993, 4.750%, 7/01/23 7/04 at 102 Aa3 3,995,962
5,045,000 The Industrial Development Authority of the County of Pima (Arizona), Industrial Development
Lease Obligation Refunding Revenue Bonds, 1988 Series A (Irvington Project),
7.250%, 7/15/10 1/02 at 103 Aaa 5,596,822
- ------------------------------------------------------------------------------------------------------------------------------------
California - 13.9%
7,150,000 State Public Works Board of the State of California, Lease Revenue Bonds (The 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) 10/04 at 102 A+*** 8,008,072
17,500,000 State Public Works Board of the State of California, Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State of Prison-Monterey County (Soledad II)), 6.875%, 11/01/14
(Pre-refunded to 11/01/04) 11/04 at 102 Aaa 20,206,375
State Public Works Board of the State of California, Lease
Revenue Bonds (The Trustees of The California State University),
1992 Series A (Various California State University Projects):
15,480,000 6.625%, 10/01/10 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 17,196,887
10,500,000 6.700%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 11,696,055
7,710,000 State of California Veterans General Obligation Bonds, Series BH, 5.250%, 12/01/12
(Alternative Minimum Tax) 12/08 at 101 Aaa 7,736,214
30,000,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds
Series 1995A, 0.000%, 1/01/21 No Opt.Call Baa 8,362,800
5,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma Linda University Medical Center Project),
Series 1993-A, 6.500%, 12/01/18 12/03 at 102 BBB 5,371,250
5,480,000 Los Angeles Community College District, Refunding Certificates of Participation, 1992 Series A,
Laacd Improvement Corporation, 6.000%, 8/15/20 2/02 at 102 Aaa 5,832,254
3,605,000 Community Redevelopment Financing Authority of the Community Redevelopment Agency of the City
of Los Angeles, California Pooled Financing Bonds, Series D (Crenshaw Redevelopment Project),
7.000%, 9/01/14 9/02 at 102 Ba1 3,807,421
7,000,000 Los Angeles State Building Authority, Lease Revenue Refunding Bonds (State of California Department
of General Services Lease), 1993 Series A, 5.625%, 5/01/11 No Opt. Call A 7,449,120
5,000,000 Los Angeles County Public Works Finance Authority, Revenue
Bonds, Series 1994A (Los Angeles County Regional Park and Open
Space District), 6.125%, 10/01/10 (Pre-refunded to 10/01/04) 10/04 at 102 AA*** 5,545,800
10,000,000 Los Angeles County Transportation Commission (California), Proposition C Sales Tax Revenue Bonds,
Second Senior Bonds, Series 1992-A, 6.750%, 7/01/19
(Pre-refunded to 7/01/02) 7/02 at 102 Aaa 11,111,100
2,035,000 Parlier Redevelopment Agency (Parlier Redevelopment Project), 1992 Tax Allocation Bonds, Series A,
6.750%, 8/01/22 8/02 at 102 BBB 2,180,828
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
Redevelopment Agency of the City and County of San Francisco
(California), Hotel Tax Revenue Bonds, Series 1994:
$ 2,390,000 6.750%, 7/01/15 (Pre-refunded to 7/01/04) 7/04 at 102 Aaa $ 2,730,432
6,865,000 6.750%, 7/01/25 7/04 at 102 Aaa 7,745,230
5,605,000 County of San Joaquin, California, Certificates of Participation (1994 Solid Waste System Facilities
Project), 6.600%, 4/01/19 4/04 at 102 A 6,050,037
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 9.7%
9,870,000 Colorado Health Facilities Authority, Insured Hospital Revenue Bonds (PSL Healthcare System Project),
Series 1991A, 6.250%, 2/15/21 (Pre-refunded to 2/15/01) 2/01 at 102 Aaa 10,567,414
1,860,000 Colorado Housing and Finance Authority, Single Family Program Senior Bonds, 1994 Series E,
8.125%, 12/01/24 (Alternative Minimum Tax) 12/04 at 105 Aa2 2,043,322
Colorado Housing and Finance Authority, General Obligation Bonds, 1994 SeriesA:
6,070,000 6.850%, 8/01/24 8/02 at 102 A 6,413,441
2,405,000 6.875%, 8/01/30 8/02 at 102 A 2,527,126
4,990,000 Colorado Housing and Finance Authority, Single Family Program Senior Bonds, 1995 Series D,
7.375%, 6/01/26 12/05 at 105 Aa2 5,587,153
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D:
400,000 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call Baa1 496,564
3,155,000 7.500%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,561,585
12,115,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa1 13,449,831
4,250,000 City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1997E, 5.250%, 11/15/23 11/07 at 101 Aaa 4,191,053
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C:
2,125,000 6.750%, 11/15/13 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,362,256
16,120,000 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 Baa1 17,476,337
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992B:
1,445,000 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,637,691
5,635,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 Baa1 6,234,339
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991A:
1,925,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 2,155,615
5,315,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 5,844,587
Denver City and County (FHA Insured), Boston Lofts Projects, Series 1997A:
1,700,000 5.750%, 10/01/27 (Alternative Minimum Tax) 10/07 at 102 AAA 1,732,708
4,795,000 5.850%, 10/01/38 (Alternative Minimum Tax) 10/07 at 102 AAA 4,886,776
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.4%
3,170,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, 1996 Series C-2,
6.250%, 11/15/18 5/06 at 102 Aa 3,381,724
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.6%
2,850,000 State of Florida, Full Faith and Credit, Department of Transportation Right-of-Way Acquisition and
Bridge Construction Bonds, Series 1995, 5.875%, 7/01/24 7/05 at 101 Aaa 2,980,331
1,750,000 Alachua County Health Facilities Authority, Health Facilities Revenue Bonds, Series 1992 (Santa Fe
Healthcare Facilities Project), 7.600%, 11/15/13
(Pre-refunded to 11/15/00) 11/00 at 102 AAA 1,926,278
5,000,000 Dade County, Florida, Aviation Bonds, Series 1996A, 5.750%, 10/01/08
(Alternative Minimum Tax) 10/06 at 102 Aaa 5,170,050
12,500,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), Series 1992, 7.750%, 5/01/27
(Pre-refunded to 5/01/02) 5/02 at 102 N/R*** 14,186,125
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.1%
Georgia Housing and Finance Authority, Single Family Mortgage Bonds, 1994 Series B:
5,485,000 6.650%, 12/01/20 (Alternative Minimum Tax) 9/04 at 102 AA+ 5,874,545
5,500,000 6.700%, 12/01/25 (Alternative Minimum Tax) 9/04 at 102 AA+ 5,889,840
10,000,000 Atlanta Water and Sewerage System, 4.500%, 1/01/18 1/04 at 100 Aaa 8,984,200
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Georgia (continued)
$ 7,000,000 Development Authority of Burke County, Georgia, Pollution Control Revenue Bonds (Oglethorpe Power
Corporation Vogtle Project), Series 1992, 8.000%, 1/01/15
(Pre-refunded to 1/01/03) 1/03 at 103 Aaa $ 8,228,850
650,000 Housing Authority of Fulton County, Georgia, Single Family Mortgage Revenue Refunding Bonds (GNMA
Mortgage-Backed Securities Program), Series 1996A, 6.200%, 9/01/27
(Alternative Minimum Tax) 9/06 at 102 AAA 680,752
- ------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.3%
2,335,000 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 1996 Series G,
6.350%, 7/01/26 (Alternative Minimum Tax) 7/06 at 102 Aaa 2,465,456
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 9.2%
3,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1993C (Lutheran General
HealthSystem), 6.000%, 4/01/18 No Opt.Call A1 3,303,270
6,900,000 Illinois Health Facilities Authority Revenue Refunding Bonds, Series 1993 (Illinois Masonic Medical
Center), 5.500%, 10/01/19 10/03 at 102 A- 6,949,749
11,510,000 The Illinois State Toll Highway Authority, Toll Highway Priority Revenue Bonds, 1992 Series A,
6.375%, 1/01/15 1/03 at 102 A1 12,378,545
17,000,000 City of Chicago, General Obligation Bonds, Project Series A of 1992, 6.250%, 1/01/12
(Pre-refunded to 1/01/02) 1/02 at 102 Aaa 18,295,400
5,000,000 City of Chicago, General Obligation Bonds (Emergency Telephone System),
Series 1993, 5.625%, 1/01/23 1/03 at 102 Aaa 5,078,650
1,000,000 City of Chicago, General Obligation Bonds, Project and Refunding
Series 1998, 5.250%, 1/01/20 7/08 at 102 Aaa 980,900
8,270,000 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 (FHA Insured Mortgage Loan-
Lakeview Towers Project), 6.650%, 12/01/33 6/02 at 102 AAA 8,668,779
1,175,000 City of Chicago, Multifamily Housing Revenue Bonds, Series 1997 (GNMA Collateralized-Bryn Mawr/
Belle Shores Project), 5.800%, 6/01/23 (Alternative Minimum Tax) 6/09 at 102 Aaa 1,199,804
5,500,000 Chicago Park District, Illinois, General Obligation Capital Improvement Bonds and Aquarium and
Museum Bonds, Series 1991, 6.700%, 1/01/11 (Pre-refunded to 1/01/02) 1/02 at 102 AA-*** 6,030,475
10,900,000 Public Building Commission of Chicago (Illinois), Building Revenue Bonds, Series A of 1993 (Board
of Education of the City of Chicago), 5.750%, 12/01/18 12/03 at 102 Aaa 11,285,097
4,535,000 City of Chicago, Illinois, TaxIncrement Allocation Bonds (Dunning Redevelopment Project),
Series 1996B, 7.250%, 1/01/14 1/07 at 102 N/R 4,875,306
3,530,000 City of Chicago, Illinois, Tax Increment Finance Bonds (Sanitary Drainage and Ship Canal),
Series 1997A, 7.750%, 1/01/14 1/07 at 102 N/R 3,832,274
2,850,000 City of East Louis, Illinois, Mortgage Revenue Refunding Bonds, Series 1994A (FHA Insured Mortgage
Loan-Dawson Manor Apartments Section 8 Assisted Project), 6.500%, 7/01/24 7/03 at 102 Aaa 2,999,483
1,130,000 Village of Wheeling, Cook and Lake Counties, Illinois, Single Family Mortgage Revenue Refunding
Bonds, Series 1992, 6.850%, 11/01/09 11/02 at 102 Aaa 1,201,721
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 7.6%
8,200,000 Indiana Bond Bank, State Revolving Fund Program Bonds, Series 1993A Guarantee Revenue Bonds,
6.250%, 2/01/09 2/03 at 102 AAA 8,928,898
2,875,000 Indiana Bond Bank, State Revolving Fund Program Bonds, Series 1994B Guarantee Revenue Bonds,
6.750%, 2/01/17 2/05 at 102 AAA 3,240,125
6,000,000 Indiana Development Finance Authority, Environmental Revenue Bonds, Series 1993B
(PSI Energy, Inc.), 5.750%, 2/15/28 (Alternative Minimum Tax) 2/03 at 102 Aaa 6,114,120
5,250,000 Indiana Transportation Finance Authority, Aviation Technology Center Lease Revenue Bonds, Series A,
6.500%, 3/01/18 3/03 at 102 A1 5,657,453
8,000,000 East Chicago Elementary School Building Corporation (Lake County, Indiana), First Mortgage Bonds,
Series 1992, 7.000%, 1/15/16 (Pre-refunded to 1/15/03) 1/03 at 102 A*** 8,992,800
13,630,000 Hospital Authority of the City of Fort Wayne, Indiana, Revenue Bonds, Series 1992 (Parkview Memorial
Hospital, Inc. Project), 6.400%, 11/15/22 11/02 at 102 A1 14,562,565
6,031,000 City of Greenfield, Indiana, Multifamily Housing Revenue Bonds, Series 1996 A (Pedcor
Investments-1988-V, L.P. Project), 6.200%, 12/01/28
(Alternative Minimum Tax) 12/05 at 105 Aaa 6,332,068
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Indiana (continued)
$ 10,675,000 Highland School Building Corporation (Highland, Indiana), First Mortgage Bonds, Series 1992A,
6.750%, 1/15/20 (Pre-refunded to 1/15/02) 1/02 at 102 AAA $ 11,748,798
5,905,000 Muncie School Building Corporation, First Mortgage Bonds, Series 1992, 6.625%, 7/15/14
(Pre-refunded to 7/15/01) 7/01 at 102 N/R*** 6,406,571
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.2%
1,675,000 Polk County, Iowa, Health Facilities Revenue Bonds, Catholic
Health Corporation (Mercy Health Center of Central Iowa
Project), Series 1991, 6.750%, 11/01/15 (Pre-refunded to 11/01/01) 11/01 at 101 Aaa 1,825,264
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.6%
2,315,000 Johnson County, Kansas, Single Family Mortgage Revenue Refunding Bonds,
Series 1994, 7.100%, 5/01/12 5/04 at 103 A 2,516,243
2,550,000 Sedgwick County, Kansas and Shawnee County, Kansas, Collateralized Single Family Mortgage
Refunding Revenue Bonds (GNMACertificates), Series 1994A-I, 7.900%, 5/01/24
(Alternative Minimum Tax) No Opt. Call Aaa 2,897,846
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 1.3%
7,000,000 Kentucky Housing Corporation, Housing Revenue Bonds, 1996 Series A, 6.375%, 7/01/28
(Alternative Minimum Tax) 7/06 at 102 Aaa 7,404,460
5,000,000 Pendleton County, Kentucky, County Lease Revenue Bonds, Kentucky Associated Counties
Leasing Trust Program Series 1993-A, 6.500%, 3/01/19 3/03 at 102 A 5,301,600
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 3.0%
4,000,000 Bossier Public Trust Financing Authority, Single Family Mortgage Revenue Refunding Bonds,
Series 1995B, 6.125%, 8/01/28 8/05 at 102 AAA 4,137,960
12,750,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage Revenue Bonds (GNMA and
FNMA Mortgage Backed Securities Program), Series 1994C, 6.350%, 10/01/28
(Alternative Minimum Tax) 10/05 at 102 Aaa 13,373,475
4,980,000 New Orleans Home Mortgage Authority, Single Family Mortgage Revenue Bonds, Series 1995A,
6.300%, 6/01/28 (Alternative Minimum Tax) 6/05 at 102 Aaa 5,331,439
4,650,000 Orleans Levee District (A Political Subdivision of the State of Louisiana), Public Improvement Bonds,
Series 1986, 5.950%, 11/01/15 12/05 at 103 Aaa 4,946,531
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.0%
7,925,000 Maine State Housing Authority, Mortgage Purchase Bonds, 1990 Series A-4, 6.400%, 11/15/24
(Alternative Minimum Tax) 8/02 at 102 Aa2 8,232,886
1,250,000 Maine State Housing Authority Mortgage Purchase Bonds, 1995 Series B-2, 6.300%, 11/15/26
(Alternative Minimum Tax) 11/05 at 102 AA 1,313,025
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.3%
2,560,000 Community Development Administration, Department of Housing and Community Development,
State of Maryland, Multi-Family Housing Revenue Bonds (Insured Mortgage Loans), 1993
Series C, 6.625%, 5/15/23 5/03 at 102 Aa 2,732,339
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.2%
2,000,000 Massachusetts Industrial Finance Agency, Revenue Bonds, Series 1998 (WGBH Educational
Foundation), 5.000%, 3/01/28 3/08 at 102 Aaa 1,890,400
3,080,000 Massachusetts Industrial Finance Agency, Revenue Bonds (College of the Holy Cross -
1996 Issue), 5.625%, 3/01/26 3/06 at 102 Aaa 3,148,622
6,900,000 Massachusetts Water Resources Authority, General Revenue Bonds, 1993 Series C,
5.250%, 12/01/20 12/04 at 102 Aaa 6,809,817
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.6%
8,000,000 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds (Oakwood
Hospital Obligated Group), Series 1993A, 5.625%, 11/01/18 11/03 at 102 Aaa 8,124,640
6,185,000 Michigan State Housing Development Authority, Rental Housing Revenue Bonds, 1992 Series A,
6.650%, 4/01/23 10/02 at 102 AA- 6,630,753
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Minnesota - 2.5%
$ 3,460,000 Minnesota Housing Finance Agency, Rental Housing Bonds, 1995 Series D (Non-AMT),
5.950%, 2/01/18 2/05 at 102 Aaa $ 3,595,909
5,175,000 Minnesota Housing Finance Agency Single Family Mortgage Bonds, 1996 Series G, 6.250%, 7/01/26
(Alternative Minimum Tax) 1/06 at 102 AA+ 5,423,038
3,560,000 Housing and Redevelopment Authority of the City of Saint Paul, Minnesota and City of Minneapolis,
Minnesota, Health Care Facility Revenue Bonds, Series 1992 (Group Health Plan, Inc. Project),
6.900%, 10/15/22 12/02 at 102 A- 3,890,724
2,000,000 Southern Minnesota Municipal Power Agency, Power Supply System Revenue Bonds, Series 1992B,
5.750%, 1/01/11 1/03 at 102 Aaa 2,111,460
2,350,000 Washington County Housing and Redevelopment Authority, Pooled Housing and Redevelopment Limited
Annual Appropriation Tax and Revenue Bonds (Pooled Refunding Project),
Series 1992, 7.200%, 1/01/22 1/03 at 102 BBB 2,476,501
5,170,000 Washington County Housing and Redevelopment Authority, Lease Revenue Bonds (South Washington
County Schools Project), Series 1992, 7.400%, 12/01/14
(Pre-refunded to 12/01/02) 12/02 at 100 A3*** 5,795,467
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.5%
4,000,000 Mississippi Hospital Equipment and Facilities Authority, Revenue Bonds, Series 1992A (Wesley Health
Systems), 6.050%, 4/01/12 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 4,331,640
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.9%
10,000,000 Missouri Health and Educational Facilities Authority, Revenue Bonds, Series 1998A (SSM Health Care),
5.000%, 6/01/22 (WI) 6/08 at 101 Aaa 9,528,700
5,500,000 The Industrial Development Authority of the City of St. Louis, Missouri, Industrial Revenue Refunding Bonds
(Kiel Center Multipurpose Arena Project), Series 1992, 7.625%, 12/01/09
(Alternative Minimum Tax) 2/02 at 102 N/R 5,971,295
11,000,000 St. Louis Municipal Finance Corporation, Leasehold Revenue Refunding Bonds,
6.000%, 7/15/13 7/03 at 102 Aa3 11,569,580
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.5%
4,000,000 Clark County, Nevada, Industrial Development Revenue Bonds (Nevada Power Company Project),
Series 1992A, 6.700%, 6/01/22 (Alternative Minimum Tax) 6/02 at 102 Aaa 4,324,480
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.6%
5,215,000 New Hampshire Higher Educational and Health Facilities Authority, Hospital Revenue Bonds, Catholic
Medical Center Issue, Series 1989, 8.000%, 7/01/04 7/99 at 102 A 5,494,889
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 2.3%
4,500,000 New Jersey Economic Development Authority, Insured Revenue Bonds (Educational Testing Service
Issue), Series 1995A, 6.000%, 5/15/25 5/05 at 102 Aaa 4,783,635
8,720,000 New Jersey Housing and Mortgage Finance Agency, Multi-Family Housing Revenue Bonds,
1997 Series A, 5.650%, 5/01/40 (Alternative Minimum Tax) 11/07 at 101 1/2 Aaa 8,875,042
6,670,000 New Jersey Housing and Mortgage Finance Agency, Housing Revenue Refunding Bonds,
1992 Series One, 6.700%, 11/01/28 11/02 at 102 A+ 7,134,032
1,000,000 Toms River Board of Education, General Obligation Bonds, Series 1997,
5.750%, 7/15/21 7/07 at 100 Aaa 1,042,580
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.4%
3,990,000 New Mexico Mortgage Finance Authority, Single Family Mortgage Program Bonds, 1995 Series E,
6.300%, 7/01/17 (Alternative Minimum Tax) 7/05 at 102 AAA 4,202,428
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 14.8%
2,500,000 Dormitory Authority of the State of New York, City University System Consolidated Revenue Bonds,
1996 Series 2, 6.000%, 7/01/20 7/06 at 102 Baa1 2,619,975
2,465,000 Empire Development Corporation, New York State Urban Development Corporation, Correctional Capital
Facilities Revenue Bonds Series 6, 5.375%, 1/01/25 1/06 at 102 Aaa 2,471,261
16,200,000 New York State Energy Research and Development Authority, Facilities Revenue Bonds, Series 1992B
(Consolidated Edison Company of New York, Inc. Project), 6.375%, 12/01/27
(Alternative Minimum Tax) 12/01 at 101 Aaa 17,216,712
3,500,000 New York State Medical Care Facilities Finance Agency, Mental Health Services Facilities Improvement
Revenue Bonds, 1994 Series A, 5.250%, 8/15/23 2/04 at 102 Aaa 3,427,760
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (continued)
$ 7,635,000 New York State Medical Care Facilities Finance Agency, Mercy Medical Center Project Revenue Bonds,
1995 Series A, 5.875%, 11/01/15 5/05 at 102 AA- $ 8,018,582
2,500,000 New York State Urban Development Corporation, Correctional Facilities Revenue Bonds, 1993A
Refunding Series, 5.250%, 1/01/21 1/04 at 102 Aaa 2,467,200
10,750,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series D,
6.600%, 2/01/03 No Opt. Call A3 11,659,020
7,695,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series E,
6.600%, 8/01/03 No Opt. Call A3 8,397,707
The City of New York, General Obligation Bonds, Fiscal 1993 Series A:
10,000,000 6.375%, 8/01/08 8/02 at 101 1/2 A3 10,732,300
1,340,000 6.500%, 8/01/11 8/02 at 101 1/2 A3 1,447,294
17,365,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series F,
7.000%, 2/01/06 No Opt.Call A3 19,679,928
11,130,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series I,
5.875%, 3/15/18 3/06 at 101 1/2 A3 11,607,700
9,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J (Subseries J-1),
5.875%, 2/15/19 2/06 at 101 1/2 A3 9,390,510
8,000,000 The City of New York General Obligation Bonds, Fiscal 1997, Series E,
5.875%, 8/01/24 8/06 at 101 1/2 A3 8,353,040
12,020,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series I,
6.250%, 4/15/27 4/07 at 101 A3 12,874,261
660,000 New York City, General Obligation Bonds, Fiscal 1993 Series A, 6.500%, 8/01/11
(Pre-refunded to 8/01/02) 8/02 at 101 1/2 A3*** 721,479
3,150,000 New York City, New York, Municipal Water Finance Authority, Water and Sewer System Revenue
Bonds, Fiscal 1996 Series A, 5.875%, 6/15/25 6/05 at 101 Aaa 3,300,728
1,370,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds,
Fiscal 1997 Series B, 5.500%, 6/15/27 6/07 at 101 Aaa 1,386,878
4,000,000 The Trust for Cultural Resources of The City of New York, Revenue Bonds, Series 1997A (American
Museum of Natural History), 5.650%, 4/01/27 4/07 at 101 Aaa 4,104,720
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.8%
1,945,000 North Carolina Housing Finance Authority, Single Family Revenue Bonds, Series JJ (1985 Resolution),
6.450%, 9/01/27 (Alternative Minimum Tax) 3/06 at 102 AA 2,065,532
5,210,000 City of Durham Urban Redevelopment Mortgage Revenue Bonds (Durham Hosiery Mill Project)
(FHA Insured LN), Series 1987, 7.500%, 8/01/29 (Alternative Minimum Tax) 8/07 at 105 AAA 5,765,699
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.5%
4,150,000 Mercer County, North Dakota, Pollution Control Revenue Bonds (Basin Electric Power Cooperative-
Antelope Valley Station), 1984 Series B, 7.000%, 1/01/19 1/99 at 103 A 4,332,061
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 0.8%
2,000,000 Ohio Housing Finance Agency, Multifamily Housing Revenue Bonds, 1998B1 (Courtyards Kettering
Apts), FHA Mortgage, 5.550%, 1/01/40 (Alternative Minimum Tax) 1/08 at 102 Aa2 1,993,380
5,250,000 State of Ohio, Ohio Air Quality Development Authority, Percent Air Quality Development Revenue
Bonds (JMG Funding, Limited Partnership Project), Series 1997, 5.625%, 1/01/23
(Alternative Minimum Tax) 4/07 at 102 Aaa 5,367,968
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.5%
1,000,000 Tulsa County Industrial Authority (Tulsa, Oklahoma), Recreational Facilities Revenue Bonds, Refunding
Series 1992, 6.600%, 9/01/08 9/02 at 102 A- 1,076,520
2,990,000 Tulsa County Public Facilities Authority (Tulsa, Oklahoma), Recreational Facility Refunding Revenue
Bonds, Series 1992, 6.600%, 11/01/08 11/02 at 102 A- 3,236,197
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 2.8%
13,350,000 State of Oregon, General Obligation, Elderly and Disabled Housing Bonds,
1992 Series B, 6.375%, 8/01/24 8/02 at 102 AA 14,442,431
6,585,000 State of Oregon, General Obligation, Veterans' Welfare Bonds, Series 75,
6.000%, 4/01/27 10/05 at 102 AA 6,863,480
1,750,000 State of Oregon, Housing and Community Services Department, Mortgage Revenue Bonds (Single-Family
Mortgage Program), 1997 Series H, 5.650%, 7/01/28
(Alternative Minimum Tax) 7/07 at 101 1/2 Aa2 1,767,168
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oregon (continued)
$ 3,380,000 City of Portland, Oregon, Limited Tax Improvement Bonds, 1996 Series A,
5.550%, 6/01/16 6/06 at 100 Aa $ 3,489,985
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.1%
1,000,000 Delaware Valley Regional Finance Authority, Local Government Revenue Bonds, Series 1997B,
5.700%, 7/01/27 No Opt. Call Aaa 1,072,990
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.2%
2,135,000 School District No. 4 of Lexington County, South Carolina, Certificates of Participation, Series 1994,
7.000%, 7/01/12 7/04 at 102 Baa 2,356,976
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 1.3%
10,370,000 South Dakota Building Authority, Revenue Bonds, Series 1992, 6.700%, 9/01/17 No Opt.Call Aaa 11,847,103
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 2.5%
9,870,000 State of Texas, Veterans' Housing Assistance Bonds, Series 1993, General Obligation Bonds,
6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102 AA 10,595,445
1,545,000 Baytown Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds,
Series 1992-A, 8.500%, 9/01/11 9/02 at 103 A1 1,739,021
1,520,000 Hidalgo County Housing Finance Corporation, Single Family Mortgage Revenue Bonds (GNMA and
FNMA Collateralized), Series 1994A, 7.000%, 10/01/27
(Alternative Minimum Tax) 4/04 at 102 Aaa 1,612,643
1,385,000 Houston Independent School District Public Facilities Corporation, Lease Revenue Bonds,
Series 1998A, Cesar E Chavez, 0.000%, 9/15/13 (WI) No Opt. Call Aaa 619,676
6,630,000 Houston Independent School District Public Facilities Corporation, Lease Revenue Bonds,
Series 1998B, West Side, 0.000%, 9/15/13 (WI) No Opt. Call Aaa 2,966,394
1,000,000 Humble Independent School District (Harris County, Texas), Unlimited Tax Schoolhouse Bonds,
Series II 1997, 3.500%, 2/15/18 2/10 at 100 Aaa 778,860
1,985,000 Lufkin Health Facilities Development Corporation Health System Revenue Bonds (Memorial Health
System of East Texas), 6.875%, 2/15/26 2/06 at 102 BBB- 2,171,926
2,595,000 Port Arthur Housing Finance Corporation, Single Family Mortgage Revenue Refunding Bonds,
Series 1992, 8.700%, 3/01/12 9/02 at 103 A 2,850,062
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.5%
2,980,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1994 Issue B (Federally Insured or
Guaranteed Mortgage Loans), 6.450%, 7/01/14 7/04 at 102 Aa2 3,147,952
1,245,000 Utah Housing Finance, Single Family Mortgage Bonds, 1997 Series E2 Class I, 5.875%, 1/01/19
(Alternative Minimum Tax) 7/07 at 101 1/2 Aaa 1,290,840
6,000,000 Redevelopment Agency of Salt Lake County, Utah, Central Business District Neighborhood
Redevelopment, Junior Lien Tax Increment Bonds, Series 1992A,
5.800%, 3/01/15 3/02 at 102 A 6,115,260
3,000,000 Municipal Building Authority of Weber County, Utah, Lease Revenue Bonds, Series 1994,
7.500%, 12/15/19 (Pre-refunded to 12/15/04) 12/04 at 102 Aaa 3,563,670
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.7%
6,620,000 Vermont Housing Finance Agency, Single Family Housing Bonds, Series 4,
6.400%, 11/01/25 5/02 at 102 A1 6,912,670
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 0.3%
3,000,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds, Series 1990B,
7.375%, 7/01/04 7/00 at 102 Aa1 3,241,650
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.8%
7,000,000 The County Commission of Harrison County,West Virginia, Solid Waste Disposal Revenue Bonds (The
Potomac Edison Company Harrison Station Project), Series B,
6.250%, 5/01/23 (Alternative Minimum Tax) 5/03 at 102 Aaa 7,457,170
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 2.1%
3,215,000 Wisconsin Health and Educational Facilities Authority Revenue Bonds, Series 1997 (Marshfield Clinic
Project), 5.625%, 2/15/17 2/07 at 102 Aaa 3,297,110
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Wisconsin (continued)
$ 15,200,000 Wisconsin Housing and Economic Development Authority, Home Ownership Revenue Bonds,
1995 Series B, 7.100%, 9/01/15 (Alternative Minimum Tax) 1/05 at 102 AA $ 16,273,271
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.5%
1,375,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series X,
5.500%, 7/01/25 7/05 at 100 Baa1 1,381,352
3,390,000 Puerto Rico Public Buildings Authority, Government Facilities Revenue Bonds, Series B, Guaranteed
by the Commonwealth of Puerto Rico, 5.000%, 7/01/27 7/07 at 101 1/2 Aaa 3,259,043
- ------------------------------------------------------------------------------------------------------------------------------------
$ 903,156,000 Total Investments - (cost $865,298,411) - 99.5% 936,746,423
=============
Temporary Investments in Short-Term Municipal Securities - 0.4%
2,000,000 Gulf Coast Waste Disposal Authority, Pollution Control Revenue Refunding (Amoco Oil Company Project),
Series 1992, Variable Rate Demand Bonds, 4.200%, 10/01/17+ VMIG-1 2,000,000
1,300,000 Sublette County, Wyoming, Adjustable Tender Pollution Control Revenue Bonds (Exxon Project),
Series 1987A, Variable Rate Demand Bonds, 4.300%, 7/01/17+ (Alternative Minimum Tax) A-1+ 1,300,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,300,000 Total Temporary Investments - 0.4% 3,300,000
=============
Other Assets Less Liabilities - 0.1% 1,674,316
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 941,720,739
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient
U.S. government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Portfolio of Investments
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT)
April 30, 1998
(Unaudited)
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 5.0%
$ 8,000,000 Alabama Higher Education Loan Corporation, Student Loan Revenue Refunding Bonds
Series 1994-D, 5.850%, 9/01/04, (Alternative Minimum Tax) No Opt. Call Aaa $ 8,385,120
27,445,000 Alabama Special Care Facilities Financing Authority of Birmingham Hospital Revenue Bonds
(Daughters of Charity National Health System - Providence Hospital and St. Vincent's Hospital),
Series 1995, 5.000%, 11/01/25 11/05 at 101 AA+ 25,769,483
11,000,000 The DCH Health Care Authority, Health Care Facilities Revenue Bonds, Series 1993-B,
5.750%, 6/01/23 12/02 at 102 A1 11,431,090
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.2%
665,000 Arkansas Development Finance Authority, Single Family Mortgage Revenue Refunding Bonds,
1991 Series A (FHA Insured or VAGuaranteed Mortgage Loans),
8.000%, 8/15/11 8/01 at 103 AA 712,268
498,363 City of Jacksonville, Arkansas, Residential Housing Facilities Board, Single Family Mortgage
Revenue Refunding Bonds, Series 1993A, 7.900%, 1/01/11 7/03 at 103 Aaa 543,265
811,045 Residential Housing Facilities Board of Lonoke County, Arkansas, Single Family Mortgage
Revenue Refunding Bonds, Series 1993A, 7.900%, 4/01/11 4/05 at 103 Aaa 883,958
- ------------------------------------------------------------------------------------------------------------------------------------
California - 3.6%
5,000,000 California Health Facilities Authority, Kaiser Permanente, Revenue Bonds, 1990 Series A,
6.500%, 12/01/20 12/00 at 102 A+ 5,315,250
4,780,000 Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue Bonds Series 1995A,
0.000%, 1/01/14 No Opt. Call Baa 2,007,170
Community Redevelopment Financing Authority of the Community
Redevelopment Agency of the City of Los Angeles,
California,Grand Central Square, Multifamily Housing Bonds, 1993
Series A:
500,000 5,750%, 12/01/13 (Alternative Minimum Tax) 6/03 at 102 Ba 494,905
3,900,000 5.900%, 12/01/26 (Alternative Minimum Tax) 6/98 at 100 A 3,900,780
4,500,000 Los Angeles County Transportation Commission (California), Proposition C Sales Tax Revenue
Bonds, Second Senior Bonds, Series 1992-A, 6.750%, 7/01/19
(Pre-refunded to 7/01/02) 7/02 at 102 Aaa 4,999,995
1,715,000 Housing Authority of the County of Merced (California), Multifamily Housing Refunding
Revenue Bonds, Series 1993A (Belmont Park Apartments Project),
5.875%, 1/01/19 1/04 at 102 Aaa 1,756,812
2,500,000 Transmission Agency of Northern California, California-Oregon Transmission Project, Revenue Bonds,
1992 Series A, 6.500%, 5/01/16 5/02 at 102 Aaa 2,706,850
5,000,000 Airports Commission, City and County of San Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 8, 6.300%, 5/01/25
(Alternative Minimum Tax) 5/04 at 101 Aaa 5,319,900
3,545,000 Redevelopment Agency of the City of San Leandro, Plaza 1 and Plaza 2 Redevelopment Projects,
1993 Tax Allocation Bonds, Series A, 6.125%, 6/01/23 6/03 at 102 A- 3,692,366
1,945,000 South Gate Public Financing Authority (Los Angeles County, California), Water Revenue Refunding
Bonds, 1996 Series A, 6.000%, 10/01/12 No Opt. Call Aaa 2,153,640
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.2%
City and County of Denver, Colorado,Airport System Revenue Bonds, Series 1990A:
405,000 8.500%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Aaa 454,297
3,695,000 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 Baa1 4,083,862
115,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Aaa 127,624
1,190,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 Baa1 1,299,659
City andCounty of Denver, Colorado, Airport System Revenue Bonds, Series 1991A:
315,000 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 365,835
885,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 Baa1 1,009,431
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Colorado (continued)
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1991D:
$ 6,000,000 7.500%, 11/15/02 (Alternative Minimum Tax) 11/01 at 102 Baa1 $ 6,654,300
3,040,000 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call Baa1 3,773,886
865,000 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 976,473
3,280,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Baa1 3,641,390
210,000 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 228,331
790,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Baa1 843,317
City and County of Denver, Colorado, Airport System Revenue Bonds, Series 1992C:
1,100,000 6.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,222,815
4,140,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 Baa1 4,476,085
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 1.4%
2,400,000 Connecticut Development Authority, Water Facilities Revenue RefundingBonds
(The Connecticut Water Company Project-1993 Series), 6.650%, 12/15/20 12/03 at 102 Aaa 2,668,296
3,000,000 Connecticut Housing Finance Authority Housing Mortgage Finance Program Bonds,
1996 Series C-2, 6.250%, 11/15/18 5/06 at 102 Aa 3,200,370
6,500,000 State of Connecticut Health and Educational Facilities Authority, Revenue Bonds,
Yale-New Haven Hospital Issue, Series F, 7.100%, 7/01/25
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 7,015,840
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 5.4%
9,500,000 District of Columbia (Washington, D.C.), General Obligation Refunding Bonds, Series 1993A
6.000%, 6/01/07 No Opt. Call Aaa 10,247,650
6,000,000 District of Columbia (Washington, D.C.), General Obligation Refunding Bonds, Series 1993 B
5.500%, 6/01/10 No Opt. Call Aaa 6,266,640
5,000,000 District of Columbia (Washington, D.C.) General ObligationBonds, Series 1993E
6.000%, 6/01/09 6/03 at 102 Aaa 5,376,100
3,890,000 District of Columbia (Washington, D.C.) General Obligation Bonds,
Series 1993-A3, 5.500%, 6/01/06 No Opt. Call Aaa 4,058,632
3,240,000 District of Columbia, Hospital Revenue Refunding Bonds (Medlantic Healthcare Group, Inc. Issue)
Series 1992B, 6.750% 8/15/07 8/02 at 102 A3 3,487,795
4,250,000 District of Columbia, Hospital Revenue Refunding Bonds (Medlantic Healthcare Group, Inc. Issue),
Series 1993A, 5.750%, 8/15/14 8/06 at 102 Aaa 4,444,438
5,345,000 District of Columbia Housing Finance Agency, Collateralized Single Family Mortgage Revenue
Bonds, Series 1988F-1, 5.850%, 12/01/14 (Alternative Minimum Tax) 12/04 at 103 AAA 5,447,945
3,930,000 District of Columbia, Revenue Bonds (The American College of Obstetricians and
Gynecologists Issue), Series 1991, 6.500%, 8/15/18 8/01 at 102 Aaa 4,231,785
4,500,000 District of Columbia, University Revenue Refunding Bonds (The Howard University Issue),
Series 1992A, 6.750%, 10/01/12 (Pre-refunded to 10/01/02) 10/02 at 102 A+*** 4,988,835
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 0.8%
8,000,000 City of Sunrise, Florida, Utility System Revenue Refunding Bonds,
Series 1998, 5.000%, 10/01/28 10/18 at 100 Aaa 7,685,680
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.0%
2,880,000 Municipal Electric Authority of Georgia, General Power Revenue Bonds,
1992B Series, 8.250%, 1/01/11 No Opt. Call A 3,721,824
4,185,000 Municipal Electric Authority of Georgia, Power Revenue Bonds, Series EE,
7.250%, 1/01/24 No Opt. Call Aaa 5,377,097
5,500,000 Municipal Electric Authority of Georgia, General Power Revenue Bonds,
Series 1993B, 5.700%, 1/01/19 No Opt. Call Aaa 5,867,070
2,930,000 Development Authority of Burke County, Georgia, Georgia, Pollution Control Revenue Bonds (Oglethorpe
Power Corporation Vogtle Project), Series 1992, 7.500%, 1/01/03 No Opt.Call Aaa 3,158,833
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.7%
1,500,000 State of Hawaii, Airports System Revenue Bonds, Series of 1990
(Payable Solely from the Receipts of the Aviation Fuel Tax and
the Revenues of the State of Hawaii Airports System), 7.300%, 7/01/20
(Alternative Minimum Tax) 7/00 at 102 Aaa 1,608,150
5,000,000 Honolulu, Hawaii, City and County Refunding and Improvement Bonds,
Series 1993B, 5.000%, 10/01/13 No Opt.Call AA 4,973,250
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois - 14.1%
$ 3,220,000 Illinois Development Finance Authority, Child Care Facility Revenue Bonds, Series 1992 (Illinois
Facilities Fund Project), 7.400%, 9/01/04 9/02 at 102 N/R $ 3,432,230
2,240,000 Illinois Educational Facilities Authority Revenue Bonds, Chicago College of Osteopathic Medicine,
Series A, 8.750%, 7/01/05 No Opt.Call Aaa 2,633,299
10,360,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds, Loyola University of Chicago,
Series 1991-A, 7.125%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 A1*** 11,387,401
Illinois Health Facilities Authority, Revenue Refunding Bonds, Series 1993C (Lutheran General Healthsystem):
5,705,000 7.000%, 4/01/08 No Opt.Call A1 6,710,734
4,075,000 7.000%, 4/01/14 No Opt.Call A1 4,911,924
3,000,000 Illinois Health Facilities Authority Revenue Refunding Bonds, Series 1993 (Illinois Masonic Medical
Center), 5.500%, 10/01/19 10/03 at 102 A- 3,021,630
2,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992
(Trinity Medical Center), 7.000%, 7/01/12 7/02 at 102 BBB 2,162,360
5,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1990 (Riverside Senior Living Center Project),
7.500%, 11/01/20 (Pre-refunded to 11/01/00) 11/00 at 102 A3*** 5,477,650
11,980,000 Illinois Health Facilities Authority, Refunding Revenue Bonds, Series 1990-B (Hinsdale Hospital),
9.000%, 11/15/15 11/00 at 102 Baa1 13,654,205
8,190,000 Illinois Housing Development Authority, Multi-Family Program Bonds,
Series 5, 6.650%, 9/01/14 9/04 at 102 A1 8,738,894
3,410,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds (Skyline Towers
Apartments), Series 1992B, 6.875%, 11/01/17 11/02 at 102 A 3,581,796
3,400,000 Illinois Housing Development Authority, Section 8 Elderly Housing Revenue Bonds (Morningside North
Development), Series 1992D, 6.600%, 1/01/07 1/03 at 102 A 3,608,896
17,500,000 City of Chicago, General Obligation Bonds, Project and Refunding
Series 1998, 5.250%, 1/01/28 7/08 at 102 Aaa 17,036,775
4,000,000 Board of Education of the City of Chicago, General Obligation Lease Certificates, 1992 Series A,
6.250%, 1/01/15 No Opt.Call Aaa 4,507,200
Cook County School District 99 (Cicero), General Obligation School Bonds, Series 1997:
1,345,000 8.500%, 12/01/12 No Opt. Call Aaa 1,818,978
1,455,000 8.500%, 12/01/13 No Opt. Call Aaa 1,987,210
1,685,000 8.500%, 12/01/15 No Opt. Call Aaa 2,333,944
2,025,000 Long Creek Township, Macon County, Illinois, Waterworks Refunding Revenue Bonds, Series 1993,
7.250%, 5/01/23 5/03 at 100 N/R 2,112,703
3,050,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1990A, 7.200%, 11/01/20 No Opt. Call Aaa 3,847,850
14,375,000 Village of Wheeling, Illinois, Multifamily Housing Revenue Bonds, Series 1993A (FHA Insured Mortgage
Loan-Arlington Club Project), 6.400%, 2/01/40 2/03 at 100 AAA 14,769,163
4,685,000 Town of Wood River, Wood River Township Hospital, Madison County, Illinois, General Obligation Bonds
(Alternate Revenue Source), Series 1993, 6.625%, 2/01/14 2/04 at 102 BBB 5,099,669
4,460,000 Town of Wood River, Wood River Township Hospital, Madison County, Illinois General Obligation Tort
Immunity Bonds, Series 1993, 6.500%, 2/01/14 2/04 at 102 BBB 4,834,239
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.4%
2,100,000 City of Indianapolis, Indiana, Economic Development Revenue Bonds, Series 1993A (The Meadows-
Section 8 Assisted Project), 6.000%, 7/01/23 (Alternative Minimum Tax) 7/03 at 103 B2 2,083,620
2,250,000 Indiana Bond Bank, Special Program Bonds, Series 1992B, 6.750%, 8/01/12 2/03 at 102 A+ 2,491,470
3,200,000 Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, Series 1992 (The
Methodist Hospitals, Inc.), 6.750%, 9/15/09 9/02 at 102 A 3,483,456
2,000,000 Hospital Authority of the City of Kokomo (Indiana), Hospital Revenue Refunding Bonds, Series 1993
(Saint Joseph Hospital and Health Center of Kokomo), 6.250%, 8/15/05 No Opt. Call Baa2 2,174,160
3,615,000 Mooresville Consolidated School Building Corporation, First Mortgage Bonds, Series 1994A (Morgan
County, Indiana), 6.200%, 7/15/15 1/04 at 101 A 3,881,136
5,900,000 Muncie School Building Corporation, First Mortgage Bonds, Series 1992, 6.625%, 7/15/14
(Pre-refunded to 7/15/01) 7/01 at 102 N/R*** 6,401,146
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Indiana (continued)
$ 9,500,000 City of Petersburg, Indiana, Pollution Control Refunding Revenue Bonds, Series 1993A (Indianapolis Power
and Light Company Project), 6.100%, 1/01/16 1/03 at 102 Aa2 $ 10,058,125
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.6%
3,810,000 Iowa Finance Authority, Hospital Revenue Bonds (Trinity Regional Hospital Project), Series 1993,
7.000%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 N/R*** 4,233,710
910,000 City of Davenport, Iowa, Home Ownership Mortgage Revenue Refunding Bonds, Series 1994,
7.900%, 3/01/10 9/04 at 102 A1 969,441
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.4%
1,725,000 Johnson County, Kansas, Single Family Mortgage Revenue Refunding Bonds,
Series 1994, 7.100%, 5/01/12 5/04 at 103 A 1,874,954
1,390,000 Labette County, Kansas, Single Family Mortgage Revenue Refunding Bonds, 1993 Series A,
8.400%, 12/01/11 6/03 at 103 Aa2 1,488,092
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.8%
7,000,000 Kentucky Housing Corporation, Housing Revenue Bonds, 1996 Series A, 6.375%, 7/01/28
(Alternative Minimum Tax) 7/06 at 102 Aaa 7,404,460
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.2%
3,500,000 Clover Dale Housing Corporation, 1995 Multifamily Mortgage Revenue Refunding Bonds (Clover Dale Plaza-
FHA Insured Mortgage, Section 8 Assisted Project),
Series A, 6.550%, 2/01/22 4/01 at 100 AA- 3,569,405
6,770,000 Orleans Levee District (A Political Subdivision of the State of Louisiana) Public Improvement Bonds,
Series 1986, 5.950%, 11/01/14 12/05 at 102 Aaa 7,264,549
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.0%
8,000,000 Maine Educational Loan Marketing Corporation, Subordinate Student Loan Revenue Bonds, Series 1994-2,
6.250%, 11/01/06 (Alternative Minimum Tax) No Opt. Call A 8,680,000
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 2.2%
5,000,000 Community Development Administration, Maryland Department of Housing and Community Development,
Housing Revenue Bonds, Series 1996 A, 5.875%, 7/01/16 1/07 at 102 Aa2 5,248,200
2,000,000 Maryland Health and Higher Educational Facilities Authority, Project and Refunding Revenue Bonds, Doctors
Community Hospital Issue, Series 1993, 5.750%, 7/01/13 7/03 at 102 Baa1 2,039,800
3,620,000 Maryland Transportation Authority, Special Obligation Revenue Bonds, Baltimore/Washington International
Airport Projects, Series 1994-A (Qualified Airport Bonds), 6.400%, 7/01/19
(Alternative Minimum Tax) 7/04 at 102 Aaa 3,834,666
6,800,000 Housing Opportunities Commission of Montgomery County (Montgomery County, Maryland), Multifamily
Housing Revenue Bonds, 1996 Series B, 6.400%, 7/01/28
(Alternative Minimum Tax) 7/06 at 102 Aa 7,205,960
1,900,000 Prince George's County, Maryland, Project and Refunding Revenue Bonds (Dimensions Health
Corporation Issue), Series 1994, 5.375%, 7/01/14 7/04 at 102 A 1,914,212
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.2%
4,500,000 Massachusetts Health and Educational Facilities Authority Revenue Bonds, Series 1991-C (New England
Deaconess Hospital), 7.200%, 4/01/22 (Pre-refunded to 4/01/01) 4/01 at 102 AAA 4,938,300
4,195,000 Massachusetts Health and Educational, Facilities Authority, Revenue Refunding Bonds, Youville Hospital
Issue (FHA Insured Project), Series B, 6.000%, 2/15/34 2/04 at 102 Aa 4,329,282
2,000,000 Massachusetts Housing Finance Authority, Housing Project Revenue Bonds,
6.300%, 10/01/13 4/03 at 102 A1 2,119,240
3,300,000 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds, Semass Project,
Series 1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) 7/01 at 103 N/R 3,701,808
15,000,000 Massachusetts Turnpike Authority Metropolitan Highway System Revenue Bonds, 1997 Series A
(Senior), 5.000%, 1/01/37 1/07 at 102 Aaa 14,098,500
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan - 5.4%
$ 3,200,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds, Series 1992
Linked BC (Bon Secours Health System Project), 6.100%, 8/15/22 8/02 at 102 Aaa $ 3,360,992
2,000,000 Michigan State Hospital Finance Authority, Hospital Revenue and Refunding Bonds (The Detroit Medical
Center Obligated Group), Series 1993B, 5.000%, 8/15/03 No Opt. Call A 2,044,120
3,750,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue Bonds (Consumers Power Company Project),
Collateralized Series 1993B, 5.800%, 6/15/10 6/03 at 102 Aaa 3,959,438
5,000,000 City of Detroit, Michigan, Convention Facility Limited Tax Revenue Refunding Bonds (Cobo Hall
Expansion Project), Series 1993, 5.250%, 9/30/12 9/03 at 102 Aaa 5,018,050
5,000,000 City of Detroit, Michigan, Sewage Disposal System Revenue Bonds,
Series 1997-A, 5.000%, 7/01/27 7/07 at 101 Aaa 4,763,900
10,225,000 City of Detroit, Michigan, Water Supply System Revenue (Senior Lein) Bonds, Series 1997-A,
5.000%, 7/01/27 7/07 at 101 Aaa 9,742,176
2,545,000 City of Hancock Hospital Finance Authority, FHA-Insured Mortgage Hospital Revenue Bonds
(Portage Health System, Inc.), Series 1998, 4.625%, 8/01/18 8/08 at 100 Aaa 2,442,309
4,260,000 County of Jackson Hospital Finance Authority, Hospital Revenue Refunding Bonds (W. A. Foote
Memorial Hospital, Jackson Michigan), Series 1993A, 4.750%, 6/01/15 6/03 at 102 Aaa 3,957,838
1,000,000 City of Kalamazoo Hospital Finance Authority, Hospital Revenue Refunding and Improvement Bonds
(Bronson Methodist Hospital), Series 1996, 5.750%, 5/15/16 5/06 at 102 Aaa 1,040,190
4,000,000 County of Kent, Michigan, Airport Revenue Bonds, Series 1998 (Kent County International Airport),
5.000%, 1/01/21 (Alternative Minimum Tax) 1/08 at 101 Aaa 3,781,960
6,000,000 County of Monroe, Michigan, Pollution Control Revenue Bonds (The Detroit Edison Company Project),
Series CC-1992, 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 103 Aaa 6,522,540
2,000,000 Oakland County Economic Development Corporation, Limited Obligation Revenue Bonds, Series 1997B
(Cranbrook Educational Community Project), 5.000%, 11/01/170 11/07 at 102 Aa2 1,946,560
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.4%
5,000,000 Minneapolis/St. Paul, Minnesota, Housing Finance Board, Single Family Mortgage Revenue Bonds,
FNMA/GNMA Backed Program Phase XI-AB, 5.800%, 11/01/30
(Alternative Minimum Tax) 11/07 at 102 AAA 5,100,950
4,000,000 Minneapolis Community Development Agency, Limited Tax Supported Development Revenue Bonds,
Common Bond Fund Series 1992G-3, 7.375%, 12/01/12 11/07 at 102 AAA 5,100,950
2,720,000 City of Minnetonka, Minnesota, Multifamily Housing Revenue Refunding Bonds, Series 1994A (GNMA
Collateralized Mortgage Loan-Brier Creek Project), 6.450%, 6/20/24 6/04 at 102 AAA 2,874,496
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.2%
1,875,000 Mississippi Educational Facilities Authority, For Private, Nonprofit Institutions of Higher Learning,
Educational Facilities Revenue Bonds (Tougaloo College Project),
1993 Series A, 6.500%, 6/01/18 6/03 at 102 Ba1 1,982,569
2,000,000 Mississippi Higher Education Assistance Corporation, Student Loan Revenue Bonds, Senior Series 1993-B,
5.800%, 9/01/06 (Alternative Minimum Tax) 9/02 at 102 Aaa 2,072,640
3,000,000 Mississippi Home Corporation, Single Family Mortgage Revenue Bonds, Series 1995B, 6.550%, 4/01/21
(Alternative Minimum Tax) 4/05 at 102 Aaa 3,165,480
1,670,000 Mississippi Housing Finance Corporation, Single Family Mortgage Purchase Revenue Bonds, Series 1989
(GNMA Mortgage-Backed Securities Program), 8.250%, 10/15/18
(Alternative Minimum Tax) 10/99 at 102 Aaa 1,757,575
1,695,000 Mississippi Regional Housing Authority, No. V, Multifamily Housing Revenue Refunding Bonds, Series 1993A
(FHA Insured Mortgage Loan-Deville Apartments Section 8 Assisted Project),
7.050%, 7/01/21 7/00 at 105 AAA 1,804,378
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 3.1%
980,000 Nebraska Investment Finance Authority, Single Family Mortgage Revenue Bonds, 1988 Series 1,
8.125%, 8/15/38 (Alternative Minimum Tax) 8/98 at 102 Aaa 1,005,539
10,000,000 Energy America Gas Supply Revenue Bonds, Series 1998A, Metropolitan Utilities District Project,
5.700%, 7/01/08 No Opt. Call N/R 9,794,600
9,000,000 Nebhelp Inc. Senior Subordinate Revenue Bonds, 1993 Series A-5A, 6.250%, 6/01/18
(Alternative Minimum Tax) No Opt. Call Aa 9,639,720
Airport Authority of the City of Omaha (Nebraska), Airport Facilities Revenue Refunding Bonds, Series 1991:
1,665,000 8.375%, 1/01/14 (Pre-refunded to 1/01/02) 1/02 at 102 A1*** 1,914,933
5,075,000 8.375%, 1/01/14 1/02 at 102 A1 5,787,530
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nevada - 0.8%
$ 1,725,000 Nevada Housing Division, Single Family Program Senior Bonds, 1993 Issue B,
6.200%, 10/01/15 4/04 at 102 Aa2 $ 1,802,711
4,500,000 Clark County School District, Nevada, General Obligation (Limited Tax), School Improvement Bonds
(Current Coupon Bonds), Series 1991A, 7.000%, 6/01/10 No Opt. Call Aaa 5,379,030
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.6%
3,395,000 New Hampshire Housing Finance Authority, Single Family Residential Mortgage Bonds, 1990 Series A,
7.950%, 7/01/22 (Alternative Minimum Tax) 7/00 at 102 Aa 3,569,096
1,950,000 New Hampshire Housing Finance Authority Single Family Mortgage Acquisition Revenue Bonds,
1996 Series C, 6.200%, 7/01/16 (Alternative Minimum Tax) 1/07 at 102 Aa3 2,039,661
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.4%
455,000 New Mexico Educational Assistance Foundation, Student Loan Revenue Bonds, 1992 Series One,
Student Loan Revenue Bonds, Subordinate 1992 Series One-B, 6.850%, 12/01/05
(Alternative Minimum Tax) 12/02 at 101 A 484,452
2,605,000 New Mexico Mortgage Finance Authority, Single Family Mortgage Purchase Refunding Senior Bonds,
1992 Series A, 6.900%, 7/01/24 7/02 at 102 Aa1 2,760,492
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 10.1%
Dormitory Authority of the State of New York, The New York and
Presbyterian Hospital, FHA-Insured Mortgage Hospital Revenue
Bonds, Series 1998:
5,000,000 5.500%, 2/01/09 No Opt. Call Aaa 5,258,700
6,450,000 5.500%, 8/01/09 No Opt. Call Aaa 6,795,462
4,350,000 5.500%, 8/01/10 No Opt. Call Aaa 4,573,590
5,000,000 5.500%, 8/01/11 No Opt. Call Aaa 5,247,150
10,500,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home, FHA-Insured
Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22 8/02 at 102 AAA 11,108,370
8,240,000 New York State Medical Care Facilities Finance Agency, Hospital and Nursing Home, FHA-Insured
Mortgage Revenue Bonds, 1994 Series A, 6.200%, 2/15/21 2/04 at 102 AAA 8,811,938
7,500,000 New York State Thruway Authority, General Revenue Bonds, Series C,
6.000%, 1/01/15 1/05 at 102 Aaa 7,994,625
1,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series A,
7.000%, 8/01/04 No Opt. Call A3 1,120,390
3,500,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series B,
6.750%, 8/15/03 No Opt. Call A3 3,846,115
14,310,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series F,
6.500%, 2/01/05 No Opt. Call A3 15,680,326
The City of New York, General Obligation Bonds, Fiscal 1991 Series D:
3,925,000 9.500%, 8/01/02 (Pre-refunded to 8/01/01) 8/01 at 101 1/2 Aaa 4,597,039
475,000 9.500%, 8/01/02 8/01 at 101 1/2 A3 549,798
16,915,000 New York City Transitional Finance Authority, Future Tax Secured Bonds Fiscal 1998 Series C,
5.000%, 5/01/26 (WI) 5/08 at 101 AA 16,084,135
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.2%
2,000,000 North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue Bonds, Series 1992,
6.000%, 1/01/11 No Opt. Call Aaa 2,204,680
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 1.1%
8,150,000 Mercer County, North Dakota, Pollution Control Revenue Bonds (Basin Electric Power Cooperative-
Antelope Valley Station), 1984 Series B, 7.00%, 1/01/19 1/99 at 103 A 8,507,541
1,125,000 City of Minot, North Dakota, Single Family Mortgage Revenue Refunding Bonds, Series 1993,
7.700%, 8/01/10 8/03 at 102 Aa 1,208,914
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 4.6%
3,800,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Programs), 1995 Series A-1, 6.300%, 9/01/17 3/05 at 102 AAA 4,056,728
11,215,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), 1989 Series A, 7.650%, 3/01/29
(Alternative Minimum Tax) 9/99 at 102 AAA 11,772,722
4,500,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, Hospital Facilities Revenue Bonds,
Series 1992 (Summa Health System Project), 6.250%, 11/15/07 11/02 at 102 A3 4,849,290
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio (continued)
$ 9,587,286 Bella Vista Housing Incorporated First Mortgage Revenue Bonds, Series 1981-A (FHA Insured, Section 8
Assisted Project), 10.875%, 6/15/23 7/98 at 105 N/R $ 10,165,016
1,995,000 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue Bonds, Series 1994A (FHA Insured
Mortgage Loan-Hamilton Creek Apartments Project), 5.550%, 7/01/24
(Alternative Minimum Tax) 1/05 at 103 Aa 1,973,115
4,215,000 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan Revenue Bonds, Series 1986A,
5.500%, 12/01/01 (Alternative Minimum Tax) No Opt. Call A1 4,323,494
4,370,000 City of Toledo, Ohio, General Obligation (Limited Tax), Various Purpose Improvement Bonds, Series 1994,
5.750%, 12/01/09 12/04 at 102 Aaa 4,652,783
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 1.5%
Oklahoma County Finance Authority Multi-Family Housing First Mortgage Multiple Apts Project-A:
3,000,000 7.000%, 4/01/18 4/06 at 102 N/R 2,943,000
7,000,000 7.125%, 4/01/28 4/06 at 102 N/R 6,893,040
3,340,000 Tulsa Industrial Authority Hospital Revenue and Refunding Bonds (Hillcrest Medical Center Project),
Series 1996, 6.500%, 6/01/09 No Opt. Call AAA 3,785,088
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 0.3%
State of Oregon Department of Administrative Services, Certificates of Participation, 1996 Series C:
1,000,000 5.350%, 5/01/08 5/06 at 101 Aaa 1,047,270
1,500,000 5.400%, 5/01/09 5/06 at 101 Aaa 1,570,755
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.2%
1,460,000 Piedmont Municipal Power Agency (South Carolina), Electric Revenue Bonds, 1998A, Refunding
Series, 5.500%, 1/01/13 No Opt. Call Aaa 1,532,036
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 0.7%
5,845,000 South Dakota Student Loan Assistance Corporation, 7.625%, 8/01/06 (Alternative Minimum Tax)
(Pre-refunded to 8/01/99) 8/99 at 102 Aaa 6,217,853
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.3%
2,400,000 Tennessee Housing Development Agency, Mortgage Finance Program Bonds, 1994 Series A,
6.900%, 7/01/25 (Alternative Minimum Tax) 7/04 at 102 A1 2,570,064
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 5.2%
4,765,517 General Services Commission (An Agency of the State of Texas), as Lessee, Participation Interests,
7.500%, 9/01/22 9/99 at 101 1/2 A 5,178,259
8,500,000 Texas Turnpike Authority, Dallas North Tollway Revenue Bonds, Series 1990, 7.250%, 1/01/10
(Pre-refunded to 1/01/99) 1/99 at 102 Aaa 8,859,210
1,000,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, Series 1990
(American Airlines, Inc. Project), 7.500%, 12/01/29
(Alternative Minimum Tax) 12/00 at 102 Baa2 1,079,000
6,000,000 Dallas-Fort Worth International Airport Facility Improvement Corporation, American Airlines, Inc.
Revenue Bonds, Series 1990, 7.500%, 11/01/25 (Alternative Minimum Tax) 11/00 at 102 Baa2 6,463,680
2,500,000 City of Houston, Texas, Airport System Subordinate Lien Revenue Bonds, Series 1991A,
6.750%, 7/01/21 (Alternative Minimum Tax) 7/01 at 102 Aaa 2,686,100
5,000,000 City of Houston, Taxes, Water and Sewer System, Junior Lien Revenue Refunding Bonds, Series 1997D,
5.000%, 12/01/25 12/07 at 102 Aaa 4,769,650
1,731,532 The Midland Housing Finance Corporation (Midland, Texas), Single Family Mortgage Revenue Refunding,
Series 1992A, 8.450%, 12/01/11 11/05 at 103 Aaa 1,879,370
2,215,000 North Texas Higher Education Authority, Inc., Student Loan Revenue Bonds, Series 1993D,
6.300%, 4/01/09 (Alternative Minimum Tax) 4/03 at 102 A 2,332,639
3,410,000 Ratama Development Corporation, Special Facilities Revenue Bonds (Retama Park Racetrack Project),
Series 1993, 8.750%, 12/15/12 No Opt. Call Aaa 4,720,736
8,500,000 Travis County Health Facilities Development Corporation, Hospital Revenue Bonds (Daughters of
Charity National Health System - Daughters of Charity Health System Services of Austin),
Series 1993B, 6.000%, 11/15/22 11/03 at 102 Aa2 9,026,320
<PAGE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utah - 1.7%
$ 8,000,000 Intermountain Power Agency (Utah), Power Supply Revenue Bonds,
Series 1996A, 6.150%, 7/01/14 7/06 at 102 A1 $ 8,666,000
6,000,000 Intermountain Power Agency Power Supply Revenue Refunding Bonds,
1997 Series B, 5.750%, 7/01/19 7/07 at 102 Aaa 6,266,100
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.3%
2,645,000 Suffolk Redevelopment and Housing Authority, Multifamily Housing Revenue Refunding Bonds,
Series 1994 (Chase Heritage at Dulles Project), 7.000%, 7/01/24
(Mandatory put 7/01/04) 7/02 at 104 Baa2 2,891,805
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 7.9%
4,500,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1993A,
5.750%, 7/01/13 7/03 at 102 Aa1 4,657,050
23,000,000 Washington Public Power Supply System, Nuclear Project No. 1 Refunding Revenue Bonds, Series 1993C,
5.375%, 7/01/15 7/03 at 102 Aa1 23,018,400
4,845,000 Washington Public Power Supply System, Nuclear Project No. 1, Refunding Revenue Bonds, Series 1989A,
7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 Aaa 5,136,766
Washington Public Power Supply System Nuclear Project No. 2 Refunding Revenue Bonds, Series 1992A:
5,710,000 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 Aa1*** 6,197,520
1,540,000 6.250%, 7/01/12 7/02 at 102 Aa1 1,646,814
6,475,000 Washington Public Power Supply System, Nuclear Project #2-Refunding Revenue, Series 1990-A,
7.250%, 7/01/06 No Opt. Call Aa1 7,507,632
10,000,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds,
Series 1993B, 7.000%, 7/01/09 No Opt. Call Aa1 11,709,000
2,380,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds,
Series 1989B, 5.500%, 7/01/17 1/00 at 100 Aa1 2,380,546
3,700,000 Washington Public Power Supply System, Nuclear Project No. 3 Refunding Revenue Bonds,
Series 1998A, 5.125%, 7/01/18 7/08 at 102 Aa1 3,580,045
4,705,000 City of Tacoma, Washington, Sewer Revenue Refunding Bonds, 1994 Series B,
8.000%, 12/01/08 No Opt. Call Aaa 5,956,388
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.1%
635,000 Wisconsin Housing and Economic Development Authority, Home Improvement Revenue Bonds,
1992 Series A, 7.000%, 5/01/10 (Alternative Minimum Tax) 5/02 at 102 A1 669,645
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 1.6%
12,390,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1997 (General Obligation Bonds),
6.500%, 7/01/13 No Opt. Call Aaa 14,420,720
- ------------------------------------------------------------------------------------------------------------------------------------
$ 838,633,743 Total Investments - (cost $841,333,987) - 97.9% 885,796,936
=============
Temporary Investments in Short-Term Municipal Securities - 2.3%
$ 9,000,000 California Pollution Control Financing, Pollution Control Refunding Revenue (Pacific Gas and
Electric Company) 1996-F, Variable Rate Demand Bonds, 4.100%, 11/01/26+ A-1+ $ 9,000,000
12,000,000 Harris County Health Facilities Development Corporation, Hospital Revenue Bonds (The Methodist Hospital),
Series 1994, Variable Rate Demand Bonds, 4.250%, 12/01/25+ A-1+ 12,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
$ 21,000,000 Total Temporary Investments - 2.3% 21,000,000
=============
Other Assets Less Liabilities - (0.2)% (2,410,655)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 904,386,281
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable
rate and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Net Assets
April 30, 1998
(Unaudited)
<CAPTION>
Premium Income Premium Income 2 Premium Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $1,423,971,450 $936,746,423 $885,796,936
Temporary investments in short-term municipal securities,
at amortized cost, which approximates market value (note 1) -- 3,300,000 21,000,000
Cash 739,532 -- 144,154
Receivables:
Interest 27,889,965 17,324,653 16,650,107
Investments sold 12,264,165 1,433,381 747,100
Other assets 1,150,850 70,207 60,081
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,466,015,962 958,874,664 924,398,378
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- 5,906 --
Payable for investments purchased 15,094,935 13,183,089 16,346,318
Accrued expenses:
Management fees (note 6) 736,452 485,945 467,487
Other 230,040 206,932 303,613
Preferred share dividends payable 180,607 110,709 117,037
Common share dividends payable 4,720,121 3,161,344 2,777,642
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 20,962,155 17,153,925 20,012,097
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $1,445,053,807 $941,720,739 $904,386,281
====================================================================================================================================
Preferred shares, at liquidation value $ 475,000,000 $300,000,000 $308,400,000
====================================================================================================================================
Preferred shares outstanding 19,000 12,000 12,336
====================================================================================================================================
Common shares outstanding 63,785,431 40,791,537 40,847,681
====================================================================================================================================
Net asset value per Common share outstanding (net assets less Preferred shares
at liquidation value,
divided by Common shares outstanding) $ 15.21 $ 15.73 $ 14.59
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Operations
Six Months Ended April 30, 1998
(Unaudited)
<CAPTION>
Premium Income Premium Income 2 Premium Income 4
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income (note 1) $42,677,067 $27,592,536 $25,492,484
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 4,452,816 2,933,755 2,826,295
Preferred shares - auction fees 588,869 371,917 382,332
Preferred shares - dividend disbursing agent fees 24,795 21,177 34,712
Shareholders' servicing agent fees and expenses 114,411 37,979 56,495
Custodian's fees and expenses . 81,558 59,895 59,918
Directors' fees and expenses (note 6) 7,426 4,229 4,062
Professional fees 15,309 10,517 10,630
Shareholders' reports - printing and mailing expenses 139,041 95,760 95,090
Stock exchange listing fees 27,067 17,579 17,609
Investor relations expense 60,493 36,497 37,511
Other expenses 31,967 24,691 21,087
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses 5,543,752 3,613,996 3,545,741
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 37,133,315 23,978,540 21,946,743
- -----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain from investment transactions (notes 1 and 4) 3,981,937 1,330,352 2,672,731
Net change in unrealized appreciation or depreciation of investments (4,969,943) (14,879) (4,586,887)
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (988,006) 1,315,473 (1,914,156)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $36,145,309 $25,294,013 $20,032,587
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
Statement of Changes in Net Assets
(Unaudited)
<CAPTION>
Premium Income Premium Income 2 Premium Income 4
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
4/30/98 10/31/97 4/30/98 10/31/97 4/30/98 10/31/97
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income $ 37,133,315 $ 72,579,397 $ 23,978,540 $ 48,365,729 $ 21,946,743 $ 44,221,844
Net realized gain from investment
transactions (notes 1 and 4) 3,981,937 4,421,843 1,330,352 4,884,470 2,672,731 3,879,483
Net change in unrealized appreciation
or depreciation of investments (4,969,943) 19,245,861 (14,879) 21,383,160 (4,586,887) 19,479,315
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 36,145,309 96,247,101 25,294,013 74,633,359 20,032,587 67,580,642
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1)
From undistributed net investment income:
Common shareholders (28,390,106) (59,703,177) (19,114,188) (38,015,000) (16,656,519) (33,488,322)
Preferred shareholders (7,936,186) (12,807,342) (4,537,619) (10,633,759) (5,337,386) (10,890,755)
From accumulated net realized gains
from investment transactions:
Common shareholders (3,623,618) (1,862,537) (3,588,709) -- -- --
Preferred shareholders (801,154) -- (896,110) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (40,751,064) (74,373,056) (28,136,626) (48,648,759) (21,993,905) (44,379,077)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Common shares - net proceeds
from shares issued to shareholders
due to reinvestment of distributions -- -- 976,104 -- 583,436 --
Preferred shares - net proceeds
from sale of shares -- 123,593,750 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions -- 123,593,750 976,104 -- 583,436 --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets (4,605,755) 145,467,795 (1,866,509) 25,984,600 (1,377,882) 23,201,565
Net assets at beginning
of period 1,449,659,562 1,304,191,767 943,587,248 917,602,648 905,764,163 882,562,598
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,445,053,807 $1,449,659,562 $941,720,739 $943,587,248 $904,386,281 $905,764,163
=================================================================================================================================
Balance of undistributed net
investment income at
end of period $ 1,563,425 $ 756,402 $ 2,403,049 $ 2,076,316 $ 1,426,259 $ 1,473,421
=================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
(Unaudited)
1. General Information and Significant Accounting Policies The National Funds
(the "Funds") covered in this report and their corresponding New York Stock
Exchange symbols are Nuveen Premium Income Municipal Fund, Inc. (NPI), Nuveen
Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen Premium Income Municipal
Fund 4, Inc. (NPT).
Each Fund invests 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
generally accepted accounting principles.
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. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
April 30, 1998, Premium Income, Premium Income 2 and Premium Income 4 had
outstanding when-issued purchase commitments of $15,094,935, $13,183,089 and
$16,346,318, respectively.
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
when required for federal income tax purposes.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. 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. Net realized
capital gain and market discount distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend monthly 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 generally accepted accounting
principles. 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.
<PAGE>
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:
<TABLE>
<CAPTION>
Premium Premium Premium
Income Income 2 Income 4
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Number of Shares:
Series M 3,800 2,000 2,200
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series Th 3,800 3,000 2,000
Series F 3,800 2,000 1,800
Series F2 -- -- 1,328
- ---------------------------------------------------------------------------------------------------------
Total 19,000 12,000 12,336
=========================================================================================================
</TABLE>
Effective August 12, 1997, the terms of Premium Income's preferred stock were
amended, whereby the Fund's preferred shares were converted from Remarketed
Preferred (dividend rates established primarily every 28 days by a remarketing
process) to MuniPreferred (dividend rates established every seven days by a
"Dutch auction" process), as approved by shareholders on August 6, 1997. In
addition, the Fund issued an additional 5,000 preferred shares, comprising 1,000
shares each of Series M, T, W, Th and F between September 30, 1997 and October
6, 1997.
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap, option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the six months ended April 30, 1998.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles 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.
2. Fund Shares
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
Premium Income Premium Income 2
- ----------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
4/30/98 10/31/97 4/30/98 10/31/97
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions -- -- 60,418 --
================================================================================================================
<CAPTION>
Premium Income 4
- ----------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
4/30/98 10/31/97
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions 39,216 --
================================================================================================================
</TABLE>
Premium Income issued 5,000 additional preferred shares, comprising 1,000 shares
of each M, T, W, Th and F, during the fiscal year ended October 31, 1997.
3. Distributions to Common Shareholders
On May 1, 1998, the Funds declared Common share dividend distributions from
their tax-exempt net investment income which were paid on June 1, 1998, to
shareholders of record on May 15, 1998, as follows:
<TABLE>
<CAPTION>
Premium Premium Premium
Income Income 2 Income 4
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dividend per share $.0740 $.0775 $.0680
=========================================================================================================
</TABLE>
<PAGE>
4. Securities Transactions
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments for the six months ended April
30, 1998, were as follows:
<TABLE>
<CAPTION>
Premium Premium Premium
Income Income 2 Income 4
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases:
Investments in municipal securities $162,192,065 $55,248,819 $123,658,572
Temporary municipal investments 122,180,000 20,900,000 91,150,000
Sales and Maturities:
Investments in municipal securities 142,721,328 30,862,306 104,872,045
Temporary municipal investments 150,180,000 33,400,000 70,150,000
=========================================================================================================
</TABLE>
At April 30, 1998, the identified cost of investments owned for federal income
tax purposes was the same as the cost for financial reporting purposes for each
Fund.
At October 31, 1997, the Funds' last fiscal year end, Premium Income 4
had unused capital loss carryforwards of $17,365,717 available for federal
income tax purposes to be applied against future capital gains, if any. If not
applied, $16,344 of the carryforwards will expire in the year 2001, $12,137,697
will expire in the year 2002 and $5,211,676 will expire in the year 2003.
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1998, were as follows:
<TABLE>
<CAPTION>
Premium Premium Premium
Income Income 2 Income 4
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
appreciation $64,026,023 $71,660,086 $46,557,023
depreciation (2,096,212) (212,074) (2,094,074)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $61,929,811 $71,448,012 $44,462,949
=========================================================================================================
</TABLE>
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 asset value of each Fund as follows:
<TABLE>
<CAPTION>
Average Daily Net Asset Value Management Fee
- --------------------------------------------------------------------------------------------------------
<S> <C>
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 net assets over $2 billion .5875 of 1
========================================================================================================
</TABLE>
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.
<PAGE>
7. Composition of Net Assets
At April 30, 1998, net assets consisted of:
<TABLE>
<CAPTION>
Premium Premium Premium
Income Income 2 Income 4
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value $ 475,000,000 $300,000,000 $308,400,000
Common shares, $.01 par value per share 637,854 407,915 408,477
Paid-in surplus 901,946,523 566,389,866 564,371,822
Balance of undistributed net investment income 1,563,425 2,403,049 1,426,259
Accumulated net realized gain (loss) from investment transactions 3,976,194 1,071,897 (14,683,226)
Net unrealized appreciation of investments 61,929,811 71,448,012 44,462,949
- ---------------------------------------------------------------------------------------------------------
Net assets $1,445,053,807 $941,720,739 $904,386,281
=========================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
=========================================================================================================
</TABLE>
8. Investment Composition
At April 30, 1998, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<CAPTION>
Premium Premium Premium
Income Income 2 Income 4
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Education and Civic Organizations 5% 2% 5%
Financials 3 -- --
Health Care 8 7 17
Housing/Multifamily -- 8 10
Housing/Single Family 13 13 7
Tax Obligation/General 12 16 12
Tax Obligation/Limited 11 12 7
Transportation 8 8 9
U.S. Guaranteed 15 24 13
Utilities 19 6 15
Water and Sewer 4 3 4
Other 2 1 1
- --------------------------------------------------------------------------------------------------------
100% 100% 100%
========================================================================================================
</TABLE>
Certain long-term and intermediate-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 (53% for Premium Income, 44% for Premium Income 2 and 43%
for Premium Income 4). Such insurance or escrow, however, does not guarantee the
market value of the municipal securities or the value of any of the Funds'
shares.
All temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
<TABLE>
Financial Highlights
(Unaudited)
Selected data for a Common share outstanding throughout each period is
as follows:
<CAPTION>
Investment Operations Less Distributions
Net Net
Net Realized/ Investment Investment Capital Capital
Beginning Net Unrealized Income Income Gains Gains
Net Asset Investment Investment To Common To Preferred To Common To Preferred
Value Income Gain (Loss) Total Shareholders Shareholders+ Shareholders Shareholders+ Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Premium Income
Six Months Ended
4/30/98 $15.28 $ .58 $ (.02) $ .56 $ (.44) $(.12) $(.06) $(.01) $ (.63)
Year Ended 10/31:
1997 14.96 1.14 .37 1.51 (.94) (.20) (.03) -- (1.18)
1996 15.11 1.16 (.09) 1.07 (.97) (.20) (.05) -- (1.22)
1995 14.14 1.24 1.01 2.25 (1.06) (.22) -- -- (1.28)
1994 16.30 1.26 (2.02)*** (.76) (1.17) (.16) (.07) -- (1.40)
1993 15.79 1.43 .61 2.04 (1.36) (.17) -- -- (1.53)
<CAPTION>
Premium Income 2
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 15.80 .58 .04 .62 (.47) (.11) (.09) (.02) (.69)
Year Ended 10/31:
1997 15.16 1.18 .65 1.83 (.93) (.26) -- -- (1.19)
1996 14.89 1.19 .27 1.46 (.93) (.26) -- -- (1.19)
1995 13.03 1.20 1.88 3.08 (.92) (.30) -- -- (1.22)
1994 15.60 1.18 (2.53) (1.35) (.94) (.24) (.03) (.01) (1.22)
1993 13.57 1.14 2.19 3.33 (.91) (.25) -- -- (1.16)
<CAPTION>
Premium Income 4
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 14.64 .54 (.05) .49 (.41) (.13) -- -- (.54)
Year Ended 10/31:
1997 14.07 1.08 .58 1.66 (.82) (.27) -- -- (1.09)
1996 13.87 1.10 .19 1.29 (.82) (.27) -- -- (1.09)
1995 12.09 1.10 1.81 2.91 (.84) (.29) -- -- (1.13)
1994 14.87 1.07 (2.76) (1.69) (.84) (.20) (.03) (.01) (1.08)
2/19/93 to
10/31/93 14.05 .51 .97 1.48 (.42) (.07) -- -- (.49)
<PAGE>
<CAPTION>
Total Returns
Organization and
Offering Costs and
Preferred Share Ending
Underwriting Net Asset Ending Based on Based on Net
Discounts Value Market Value Market Value** Asset Value**
<S> <C> <C> <C> <C> <C>
Premium Income
Six Months Ended
4/30/98 $ -- $15.21 $14.5625 3.01% 2.83%
Year Ended 10/31:
1997 (.02) 15.28 14.6250 7.81 8.89
1996 -- 14.96 14.5000 8.24 5.92
1995 -- 15.11 14.3750 16.88 14.84
1994 -- 14.14 13.2500 (19.13) (5.88)
1993 -- 16.30 17.7500 20.96 12.33
<CAPTION>
Premium Income 2
<S> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 -- 15.73 15.3750 2.69 3.08
Year Ended 10/31:
1997 -- 15.80 15.5000 16.76 10.72
1996 -- 15.16 14.1250 14.94 8.28
1995 -- 14.89 13.1250 24.22 22.06
1994 -- 13.03 11.3750 (17.76) (10.64)
1993 (.14) 15.60 14.8750 18.47 22.31
<CAPTION>
Premium Income 4
<S> <C> <C> <C> <C> <C>
Six Months Ended
4/30/98 -- 14.59 13.9375 4.76 2.44
Year Ended 10/31:
1997 -- 14.64 13.6875 14.70 10.20
1996 -- 14.07 12.6880 11.57 7.53
1995 -- 13.87 12.1250 21.32 22.41
1994 (.01) 12.09 10.7500 (19.12) (13.29)
2/19/93 to
10/31/93 (.17) 14.87 14.2500 (2.13) 8.94
<PAGE>
<CAPTION>
Ratios/Supplemental Data
Ratio of Net
Ratio of Investment
Ending Expenses to Income to Portfolio
Net Assets Average Average Turnover
(000) Net Assets++ Net Assets++ Rate
<S> <C> <C> <C> <C>
Premium Income
Six Months Ended
4/30/98 $1,445,054 .77%* 5.14%* 10%
Year Ended 10/31:
1997 1,449,660 .76 5.51 10
1996 1,304,192 .75 5.67 16
1995 1,313,673 .76 6.13 12
1994 1,252,208 .77 6.08 15
1993 1,213,064 .79 6.28 11
<CAPTION>
Premium Income 2
Six Months Ended
<S> <C> <C> <C> <C>
4/30/98 941,721 .77* 5.10* 3
Year Ended 10/31:
1997 943,587 .77 5.23 19
1996 917,603 .77 5.34 24
1995 906,547 .77 5.60 27
1994 830,600 .76 5.41 26
1993 835,582 .73 5.19 20
<CAPTION>
Premium Income 4
<S> <C> <C> <C> <C>
Six Months Ended
4/30/98 904,386 .78* 4.85* 12
Year Ended 10/31:
1997 905,764 .79 4.98 26
1996 882,563 .79 5.11 20
1995 874,337 .80 5.35 32
1994 801,617 .88 5.15 47
2/19/93 to
10/31/93 431,437 .82* 4.04* 10
* Annualized.
** Total 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.
*** Includes $(.19) effect of the Fund's Rights Offering of shares at a price
below NAV and costs of the offering.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
Building Better Portfolios with Nuveen
Nuveen Family of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
Growth Funds
Nuveen Rittenhouse Growth Fund
Growth and
Income Funds
European Value Fund
Growth and
Income Stock Fund
Balanced Municipal
and Stock Fund
Balanced Stock
and Bond Fund
Municipal
Bond Funds
National Funds
Long-Term
Insured
Intermediate-Term
Limited Term
State Funds
Alabama
Arizona
California
Colorado
Connecticut
Florida
Georgia
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania
South Carolina
Tennessee
Virginia
Wisconsin
Reducing the impact of taxes and moderating risk are important goals for many
risk-sensitive investors seeking to build better portfolios. For these
investors, a tax-efficient, risk-resistant investment portfolio often forms the
foundation of a carefully crafted financial plan for building and sustaining
wealth. Nuveen is committed to providing investors and their financial advisers
with a range of products and investment tools to help build better portfolios.
EXCHANGE-TRADED FUNDS
Nuveen Exchange-Traded Funds offer investors actively managed portfolios of
investment-grade quality municipal bonds. The fund shares are listed and traded
on the New York and American stock exchanges. Exchange-traded funds provide the
investment convenience, price visibility and liquidity of common stocks.
MUTUAL FUNDS
Nuveen Mutual Funds offer investors access to the Nuveen family of Premier
Advisers(sm), including Nuveen Advisory Corp., Institutional Capital Corp. and
Rittenhouse Financial Services. Our equity, balanced and income funds seek
to provide consistent performance, time-tested strategies to reduce risk and
experienced, professional management.
PRIVATE ASSET MANAGEMENT
Rittenhouse Financial Services and Nuveen Asset Management offer comprehensive,
customized investment management solutions to investors with assets of $250,000
or more to invest. A range of actively managed growth, balanced and municipal
income-oriented portfolios are available, all based upon a disciplined
investment philosophy.
UNIT TRUSTS
Nuveen Unit Trusts are fixed portfolios of quality securities that are a
convenient, attractive alternative to purchasing individual securities. They
provide low-cost diversification to reduce risk, experienced, professional
security selection and surveillance and daily liquidity at that day's net asset
value for quick access to your assets.
MUNIPREFERRED(R)
Nuveen MuniPreferred offers investors a AAA-rated investment with an attractive
tax-free yield for the cash reserves portion of an investment portfolio.
MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen
dual-class exchange-traded funds and are available for national as well as a
wide variety of state-specific portfolios.
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
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
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
Legal Counsel
Fried, Frank, Harris,
Shriver & Jacobson
Washington, D.C.
Independent Auditors
Ernst & Young LLP
Chicago, IL
Year 2000
The concern that computer systems may have problems processing date-related
information in the year 2000 and beyond has challenged businesses and
organizations to review thoroughly all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the new
millennium. Over the last 10 years, our trading, fund management and pricing
systems at Nuveen - the systems that directly effect our investors and their
financial advisers - have been updated or replaced to address the Year 2000
concerns.
We continue to work closely with our transfer agent, custodian and other
service partners to monitor readiness and address other remaining systems
issues. Our initial testing indicates we are on schedule and we have targeted
year-end 1998 to complete verification of vendor compliance and service partner
readiness. However, we can give no complete assurance at this time that the
steps we have taken will be sufficient to prevent any problems that would impact
the Nuveen Exchange-Traded Funds.
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 12-month period ended April 30, 1998. Any
future repurchases will be reported to shareholders in the next annual or
semiannual report.
<PAGE>
Serving Investors for Generations
Photo of: John Nuveen, Sr.
Since our founding in 1898, John Nuveen &Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for risk-sensitive individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them maintain the lifestyle they currently enjoy.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time - with moderated risk. We emphasize quality securities
carefully chosen through in-depth research, and we follow those securities
closely over time to ensure that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of products and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and income funds, along with our unit trusts and private asset
management, can form the foundation of a tax-efficient and risk-resistant
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you build and sustain your long-term financial
security. Or call us at (800) 257-8787 for more information, including a
prospectus where applicable. Please read that information carefully before you
invest.
GRAPHIC:
1898 1998
NUVEEN
OUR SECOND CENTURY
helping investors sustain the wealth of a lifetime.(tm)
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
FSA-5.4.98
