NUVEEN Exchange-Traded Funds
April 30, 1999
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, 1999
Contents
1 Dear Shareholder
3 Portfolio Manager Roundtable
6 NPI's Performance Overview
7 NPM's Performance Overview
8 NPT's Performance Overview
9 Portfolio of Investments
33 Statement of Net Assets
34 Statement of Operations
35 Statement of Changes in Net Assets
36 Notes to Financial Statements
41 Financial Highlights
44 Building a Better Portfolio
45 Fund Information
Nuveen Premium Income Municipal Fund, Inc. (NPI)
o Taxable-equivalent yield of 8.13% *
o Outperformed the total return of its Lipper Peer Group
and the Lehman Brothers Municipal Bond Index **
Pie Chart:
AAA/U.S. Guaranteed 63%
AA 23%
A 7%
BBB/NR 7%
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
o Taxable-equivalent yield of 8.42% *
o Outperformed the total return of its Lipper Peer Group
and the Lehman Brothers Municipal Bond Index **
Pie Chart:
AAA/U.S. Guaranteed 59%
AA 11%
A 20%
BBB/NR 10%
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
o Taxable-equivalent yield of 8.38% *
o Outperformed the total return of its Lipper Peer Group
and the Lehman Brothers Municipal Bond Index **
Pie Chart:
AAA/U.S. Guaranteed 50%
AA 17%
A 17%
BBB/NR 16%
* For investors in the 31% federal income tax bracket. See your Fund's
Performance Overview for more information.
** The Lipper Peer Group return represents the average annualized returns
of the funds in the appropriate Lipper Municipal Debt category. The
return assumes reinvestment of dividends and does not reflect any
applicable sales charge.
The Lehman Brothers Municipal Bond Index is an unleveraged index
covering a broad range of investment-grade municipal bonds. The return
for the index does not reflect any initial or ongoing expenses.
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: Wealth takes a lifetime to build. Once achieved, it should be
preserved.
Dear Shareholder
I'm pleased to inform you that over the past six months, your Nuveen
Exchange-Traded Fund continued to meet its primary objective of providing you
dependable tax-free income and an attractive after-tax total return. The
combination of these two components demonstrates once again that Nuveen's
municipal bond funds can serve as excellent investment options for
income-oriented investors.
The Year in Review
The past six to 12 months saw the U.S. economy continue its pattern of
non-inflationary growth, accompanied by low interest rates and unemployment
levels that remain among the lowest in three decades. Much of the current
economic growth is propelled by consumer demand, which has helped the U.S.
resist the downward pull of weaker overseas markets. All indications point to a
confident American consumer who is comfortable with the current state of the
economy, especially the performance of the housing, stock, and job markets. This
confidence is reflected in the most recent Consumer Confidence Index report
issued by the Conference Board, which showed a record-setting seventh
consecutive month of gains in May. On the global front, the turmoil of the past
two years appears to be fading somewhat, as international financial markets have
begun to recover.
Inflation in the U.S. continued to operate at benign levels, with an increase of
2.2% for the 12 months ended April 30, 1999. Despite a spike in consumer prices
in April, which was propelled by rising energy costs (which have subsequently
declined), the general backdrop of inflation indicators continued to be mild,
with the employment cost index, average hourly earnings, and import and producer
price trends all remaining favorable. As Federal Reserve Chairman Alan Greenspan
recently stated, one of the key factors in achieving today's peaceful
coexistence of economic growth and low inflation has been increased
productivity. Improvements in productivity, spurred by technological advances,
have been responsible for offsetting wage and other inflationary pressures that
we would normally expect to see as part of a growing economy.
On the interest rate front, last fall saw the Federal Reserve ease short-term
rates for the first time in almost three years. Between the end of September and
mid-November 1998, three successive cuts brought the federal funds rate to
4.75%, averting a potential domestic credit crunch and restoring some stability
to global markets. Following the success of these preemptive moves, the Federal
Reserve indicated that fighting inflation continued to be a top priority by
remaining in a proactive mode and responding to April's increased consumer
prices with a shift to a tightening bias. By doing this, the Fed signaled its
continued support of the market without changing interest rates or fundamentally
altering the economy. In the months ahead, we will continue to watch for
indications from the Fed and other factors that affect the economy's future,
including wage and employment statistics, reports on productivity growth,
capital equipment spending, and the progress of international economic recovery.
We believe these key components will influence the outlook for fixed-income
markets well into the new millennium.
Municipal Bonds:
An Attractive Investment Option
As interest rates declined over the past year, our municipal bond funds
continued to provide bright spots among the various investment options,
generally offering attractive, stable income in a market that places a high
premium on yield. In 1998, municipal bonds represented a reasonably insulated
haven in an otherwise turbulent market, with lower volatility relative to
Treasury bonds and other fixed-income investments. In fact, for the first four
months of 1999, municipals continued to outperform Treasuries.
The high ratio of tax-exempt municipal yields to Treasury yields sheltered
municipal bonds from the price decline that occurred in the
<PAGE>
Treasury market during the first four months of the year. While the interest
rate on 30-year Treasury bonds rose from 5.10% at the end of December to 5.66%
as of April 30, 1999, the yield on the Bond Buyer Revenue Bond Index, an
unmanaged index of long-term municipal revenue bonds, gained just three basis
points - from 5.26% to 5.29%. Given the inverse relationship between interest
rates and bond prices, Treasury bond prices fell as rates rose over this period.
Though municipal bond prices did decrease, the decline was not as dramatic as
the drop in Treasuries. The differential in performance reflects the fact that
Treasuries had become relatively expensive as the result of safe-haven buying
during the international economic crises of the past year.
Line Chart of: The Bond Buyer Revenue Bond Index
As the financial turmoil subsided in the first quarter of 1999, however, foreign
investors returned to investing in their own countries rather than in U.S.
dollar-denominated securities. The combination of an increase in interest rates
and a decline in demand caused U.S. Treasuries to drop in price.
At the end of April 1999, the ratio between long-term municipal yields and
30-year Treasury yields stood at 94%, compared with the historical average of
86% for the period of 1986-1999. For investors, this meant that quality
long-term municipal bonds offered yields comparable to those of long Treasury
bonds - even before the tax advantages of municipal bonds were taken into
account. On an after-tax basis in today's market, municipal bonds continue to
present an exceptionally attractive investment option relative to Treasuries.
During 1998, lower interest rates and the strong economy combined to generate
high levels of new municipal issuance and a significant increase in the
refinancing of existing bonds. Municipal issuance in 1998 reached $284 billion,
up 29% over 1997. In terms of total municipal issuance, 1998 ranked as the
second largest year on record, next to 1993's $292 billion. In the first four
months of 1999, however, as the market settled into a more stable interest rate
environment, refunding activity dropped off dramatically. As a result, municipal
supply in 1999 has declined by approximately 25% from the levels of a year ago.
This, in turn, has enhanced the attractive ness of the municipal bonds that were
brought to market, as demand - especially from individual investors - remained
relatively strong.
The Value of Nuveen Expertise
The solid track record of a proven investment manager is one key to taking
advantage of the attractive values currently available in the municipal market.
The near-record level of municipal issuance in 1998, for example, highlighted
the value of Nuveen's in-depth knowledge of the municipal market, as our
portfolio management teams carefully analyzed each issue to select those
securities best suited to help the funds achieve their investment objectives.
With the outlook for tighter supply and continued demand in 1999, Nuveen's
established market position ensures that we will have exceptional access to the
bond offerings that have the potential to add value for our shareholders.
As a further enhancement to our management capabilities, Nuveen has assembled a
strong group of investment managers - experts in their particular areas of the
market - to provide investors with the advantage of their experience and
insights. In addition to Nuveen Advisory Services for tax-free investing, you
and your financial adviser can rely on Institutional Capital Corporation for
value-oriented equity investing and Rittenhouse Financial Services, Inc. for
growth-oriented equity investing. We encourage you to talk with your financial
adviser about Nuveen's expanding array of investments and the ways that Nuveen
funds can help you establish a diversified portfolio designed to build and
sustain long-term financial security. For more information on our funds, contact
your adviser for a prospectus, or call Nuveen at (800) 621-7227. Please read it
carefully before you invest or send money.
Thank you for the confidence you have placed in Nuveen. We are committed to
maintaining the trust you have shown in us, and we look forward to meeting your
investment needs well into the next century.
Signature
Timothy R. Schwertfeger
Chairman of the Board
June 15, 1999
Sidebar text: "The solid track record of a proven investment manager is one key
to taking advantage of the attractive values currently available in the
municipal market."
<PAGE>
Nuveen Exchange-Traded Funds Portfolio Manager Roundtable
Portfolio managers Tom Futrell, Steve Peterson, and Ted Neild discuss the
municipal market, recent fund performance, and key investment strategies for the
Nuveen Premium Income exchange-traded funds. Tom assumed portfolio management
responsibility for NPI in 1988, while Steve has served as the portfolio manager
of NPM since 1994. Ted has managed NPT since its inception in February 1993.
What factors have influenced the municipal market during the past 12 months?
Over the past 12 months, the U.S. economy continued to enjoy strong
non-inflationary growth, low interest rates, and low unemployment. With tax
revenues rising along with the growth in personal income, the national
government is generating a budget surplus, putting an end to 28 straight years
of federal budget deficits (1970-97). In this environment, long-term municipal
bonds continued to outperform 30-year Treasury bonds, with yields that rivaled
and even surpassed those offered by Treasuries. Over the past year, this
municipal-to-Treasury ratio ranged as high as 104%, offering investors in
quality long-term municipal bonds yields comparable to those of Treasury bonds,
even before the tax advantage of municipals was taken into account.
The other major story in the municipal market over the past year was 1998's
impressive supply of new issuance. In the fourth quarter of 1998, investors saw
$25-30 billion in new bonds brought to market each month. Demand for municipal
bonds also remained high, due to cash flow from non-traditional investors as
well as from the traditional buyers of mutual and exchange-traded funds, such as
individual investors and insurance companies. In the first four months of 1999,
however, a higher interest rate environment than we experienced in 1998 prompted
fewer refundings and a 25% drop-off in new issue volume from 1998 levels. During
this period, the continued demand from individual investors compen sated for
lower demand from insurance companies, which currently have fewer assets to
invest due to heavy insurance premium price competition and mounting claims from
a series of devastating spring storms in the Midwest and South.
For the remainder of 1999, the municipal market will be heavily influenced by
the direction of interest rates and inflation. If interest rates remain stable
or increase, we expect to see lower refinancing volume and a continuation of the
tighter supply scenario of the past four months. Demand should remain strong, as
individual investors look to diversify their portfolios by reallocating profits
from the equity market into fixed-income invest ments. These reallocation
efforts will be expanded if the volatility in equities continues. Even with
lower supply and high demand, Nuveen's position in the municipal market ensures
that we will have access to the best offerings in the marketplace.
How did the Premium Income Funds perform over the past 12 months?
For the 12 months ended April 30, 1999, the Nuveen Premium Income Funds produced
total returns on net asset value (NAV) ranging from 7.19% to 7.74%, providing
taxable-equivalent total returns of 9.84% to 10.47%, as shown in the
accompanying table. For the year, all three funds outperformed both their
benchmark - the Lehman Brothers Municipal Bond Index - as well as the average
for the Lipper General Leveraged Municipal Debt category.
1-Yr Ended Taxable-
4/30/99 Equivalent(3)
- --------------------------------------------------------------------------------
NPI
Total Return on NAV 7.19% 9.81%
Lehman Total Return(1) 6.95% N/A
Lipper Average(2) 7.01% N/A
Market Yield 5.61% 8.13%
- --------------------------------------------------------------------------------
NPM
Total Return on NAV 7.74% 10.47%
Lehman Total Return(1) 6.95% N/A
Lipper Average(2) 7.01% N/A
Market Yield 5.81% 8.42%
- --------------------------------------------------------------------------------
NPT
Total Return on NAV 7.44% 10.03%
Lehman Total Return(1) 6.95% N/A
Lipper Average(2) 7.01% N/A
Market Yield 5.78% 8.38%
- --------------------------------------------------------------------------------
1. The funds are compared with the Lehman Brothers Municipal Bond Index, an
unleveraged index comprising a broad range of investment-grade municipal
bonds. The return for the Lehman index does not reflect any initial or
ongoing expenses.
2. The Lipper Peer Group return represents the average annualized return of
funds in the Lipper General Leveraged Municipal Debt category. This return
assumes reinvestment of dividends and does not reflect any applicable sales
charges.
3. Based on the 31% federal income tax rate.
<PAGE>
Over the past year, the yield on the Bond Buyer Revenue Bond Index, an unmanaged
index of long-term municipal revenue bonds, fell only 23 basis points, an
indication of a relatively stable interest rate climate. In this environment,
the Funds' durations (the measure of a bond fund's price volatility in response
to interest rate changes) played a smaller, though still significant role in
determining their returns relative to the market, as measured by the Lehman
index. All three of the Nuveen Premium Income Funds had leveraged-adjusted
durations that exceeded the duration of 7.21 for the unleveraged Lehman index,
which enhanced the Funds' ability to participate in the market gains of the past
year.
How were the Funds' dividends and share prices affected?
Good call protection helped support the dividends of NPM and NPT and shield the
income of these funds from erosion. In addition, excellent dividend manage ment
strategies enabled us to increase the dividend of NPT in February 1999,
enhancing the competitiveness of its market yield. As of April 30, 1999, NPT had
provided shareholders with 48 consecutive months of steady or increasing income,
while NPM had produced steady or increasing dividends since its inception (79
months). During the past year, lower interest rates also led to an increased
number of bond calls, as issuers sought to reduce debt financing costs. In
addition, declining rates meant that proceeds from prepaid or matured bonds had
to be reinvested in issues paying relatively lower current rates. Both of these
situations contributed to a reduction in the income level of NPI and
necessitated a dividend cut in August 1998.
As interest rates declined, active demand for the Nuveen Premium Income Funds
resulted in solid share price performance. At the same time, the Funds' NAVs
were boosted by gains in the overall bond market. As a result of these factors,
NPI and NPT saw their discounts (share price below NAV) narrow over the past
year, while NPM moved from a discount to a slight premium (share price over
NAV).
3. Based on the 31% federal income tax rate.
4. A fund's premium or discount represents the percentage difference between
the fund's share price and its NAV.
4/30/98 4/30/99
- --------------------------------------------------------
NPI
Share Price ($) 14.5625 15.1875
NAV$ 15.21 15.36
Premium/Discount to NAV(4) -4.26% -1.12%
1-Yr Ended Taxable-
4/30/99 Equivalent(3)
- --------------------------------------------------------
Total Return on Share Price 10.89% 13.63%
- --------------------------------------------------------
NPM
Share Price ($) 15.375 16.00
NAV$ 15.73 15.95
Premium/Discount to NAV(4) -2.26% 0.31%
1-Yr Ended Taxable-
4/30/99 Equivalent(3)
- --------------------------------------------------------
Total Return on Share Price 10.44% 13.24%
- --------------------------------------------------------
NPT
Share Price ($) 13.9375 14.4375
NAV$ 14.59 14.84
Premium/Discount to NAV(4) -4.47% -2.71%
1-Yr Ended Taxable-
4/30/99 Equivalent(3)
- --------------------------------------------------------
Total Return on Share Price 9.56% 12.28%
- --------------------------------------------------------
For additional information, see the individual Performance Overview for your
fund in this report.
What key strategies were used to manage the Funds during the past year?
The focus of our management strategies for the Nuveen Premium Income Funds
continued to be on supporting the highest level of tax-exempt dividends
consistent with capital preservation. Each of these funds is managed on a
relative value basis, a strategy designed to add value and maximize income.
In NPI, our strategies over the past year focused on enhancing the Fund's yield
and using the proceeds from called and matured bonds to purchase, when possible,
noncallable securities. As spreads narrowed between the single family housing
sector and the rest of the market, we reduced our exposure to single family
housing bonds by selling some of the portfolio's older issues at attractive
prices due to the fact that bond prices rose as interest rates fell over the
period. These bonds were scheduled to be called in the near future, so we
proactively managed the Fund and reinvested the proceeds from the sales into
basic sectors like utilities and tax obligation bonds. Nuveen's excellent
surveillance and research helped us make the buy/sell decisions that can benefit
the fund and add value for NPI shareholders.
Our strategies in NPM focused on ways to take advantage of changes in the yield
curve. The yield curve plots the relationship between bond yields and
corresponding maturities. Usually, but not always, bonds with longer maturities
offer higher yields than those with shorter terms to maturity. When the yield
curve "steepens," the difference between short-term
<PAGE>
and long-term interest rates widens; when the yield curve "flattens," the
difference is relatively small. As the yield curve steepens or flattens,
different maturities on the curve become more or less attractive. Over the past
year, our objective was to purchase bonds at the most attractive part of the
curve and sell those at the least attractive part. These trades enabled us to
manage interest rate risk while maintaining the Fund's yield. We also bought
some zero coupon bonds in the 18- to 23-year range, which we regard as an
inexpensive way to add yield, enhance duration, and create more performance
potential for the Fund. This is due to the fact that zero coupon bonds have
longer durations, which make them more sensitive to interest rate changes.
NPT holds a high proportion of noncallable paper, which helps the Fund's
performance regardless of interest rate direction. Over the past year, we took
advantage of numerous trading opportunities to reduce our exposure to sectors
that were underperforming the market and increase our allocations to those with
greater potential. On the up side, these included the utilities sector, where we
found several attractive BBB and non-rated natural gas and electric deals that
enabled us to add yield, as well as the multi-family housing sector. The
multi-family housing sector is a place where we expect to see continued issuance
due to the large number of new participants who are actively in the market with
capital needs. Continued volatility in the healthcare sector led us to sell some
of our holdings at attractive prices in the retail market. Among the issues sold
from our portfolio were AA rated bonds issued by the Daughters of Charity
National Health System in Alabama and Duke University Health System in North
Carolina. Over the year, we also added some intermediate paper to increase the
Fund's total return potential.
In the area of call protection, NPI, the oldest fund among the three, has
generally completed the normal part of the market cycle in which bond calls are
likely to occur, and the Fund again offers good levels of call protection.
Between now and 2003, approximately 22% of NPT's portfolio faces calls, while
NPM is fairly well protected until 2002. To minimize the impact of future bond
calls, we are already at work on strategies for managing through this period.
Overall, the credit quality of the Nuveen Premium Income Funds remained high.
During the past year, NPI and NPM traded up in credit quality, with 86% and 70%,
respectively, of their portfolios invested in bonds rated AAA and AA at the end
of April 1999, up from 77% and 63% a year ago. In NPM, this reflects a higher
level of prerefunded (escrowed) bonds, while NPI's percentage of U.S. guaranteed
issues actually dropped over the past year as bonds were called or sold from the
portfolio in order to purchase attractive investments in the long end of the
market. For NPT, the widening of credit spreads in late 1998 due to the global
financial crisis presented opportunities to add yield through the purchase of
lower-rated paper. The Fund's allocation of BBB and non-rated bonds rose from
11% to 16% over the past six months, balanced against a 67% concentration in
bonds rated AAA and AA.
What is Nuveen's outlook for the Funds' future?
Looking ahead for the Nuveen Premium Income Funds, our focus will remain on
supporting the income streams of these funds. One of our strategies for
protecting fund income is to continue taking advantage of changes in the yield
curve. We will also look at repositioning assets by investing in bonds found on
the long end of the yield curve to move the Funds' durations to a more
market-neutral position and boost both income and total return potential. In
NPM, we plan to continue trying to enhance the Fund through our selective
purchase of zero coupon bonds, while we will continue looking for opportunities
in the BBB and non-rated sector to further boost the yield of NPT. These
strategies demonstrate the value that can be added by an active bond manager
such as Nuveen. As an experienced investment manager knowledgeable about the
unique aspects of the municipal market, we are in the marketplace every day,
monitoring market dynamics, looking for opportunities, and capitalizing on them
to the benefit of shareholders.
In our opinion, municipal bonds are currently one of the most compelling values
in the investment marketplace. Over the past 12 months, the value of these
quality investments has been enhanced by excellent municipal-to-Treasury ratios
as well as a market environment characterized by low interest rates and benign
inflation. With continued volatility in the equity markets and investors'
increasing awareness of the need for asset allocation rebalancing, the demand
for municipal bond funds is expected to grow. We believe that investors who take
advantage of current opportunities in the municipal market should be rewarded
with healthy returns and attractive yields in the months ahead.
<PAGE>
Nuveen Premium Income Municipal Fund, Inc.
Performance Overview
As of April 30, 1999
NPI
Portfolio Statistics
Inception Date 7/88
- --------------------------------------------------
Share Price $15 3/16
- --------------------------------------------------
Net Asset Value $15.36
- --------------------------------------------------
Market Yield 5.61%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 8.13%
- --------------------------------------------------
Fund Net Assets ($000) $1,454,691
- --------------------------------------------------
Effective Maturity (Years) 21.54
- --------------------------------------------------
Leverage-Adjusted Duration 11.36
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 10.89% 7.19%
- --------------------------------------------------
5-Year 7.01% 7.73%
- --------------------------------------------------
10-Year 7.81% 8.10%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 13.63% 9.81%
- --------------------------------------------------
5-Year 10.10% 10.74%
- --------------------------------------------------
10-Year 11.08% 11.41%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
Utilities 21%
- --------------------------------------------------
Tax Obligation/General 16%
- --------------------------------------------------
Tax Obligation/Limited 14%
- --------------------------------------------------
Housing/Single Family 11%
- --------------------------------------------------
U.S. Guaranteed 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. The
federal only rate is based on the 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 capital gains distributions in December of
$0.0678 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
5/98 0.074
6/98 0.074
7/98 0.074
8/98 0.071
9/98 0.071
10/98 0.071
11/98 0.071
12/98 0.071
1/99 0.071
2/99 0.071
3/99 0.071
4/99 0.071
Line Chart:
Share Price Performance
5/1/98 14.438
14.438
14.438
14.563
14.813
14.813
14.813
14.813
14.875
15
14.938
15
15
14.875
14.625
14.625
14.688
14.563
14.625
14.688
14.938
15.25
15
15.25
15.13
15.19
15.13
15.25
15.25
15.31
15.19
15.13
15.31
15.25
15.19
15.25
15.25
15.38
15.25
15.31
15.13
15.06
15.06
14.94
15.19
15.875
15.13
15.13
4/30/99 15.19
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc.
Performance Overview
As of April 30, 1999
NPM
Portfolio Statistics
Inception Date 7/92
- --------------------------------------------------
Share Price $16
- --------------------------------------------------
Net Asset Value $15.95
- --------------------------------------------------
Market Yield 5.81%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 8.42%
- --------------------------------------------------
Fund Net Assets ($000) $953,811
- --------------------------------------------------
Effective Maturity (Years) 16.15
- --------------------------------------------------
Leverage-Adjusted Duration 7.70
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 10.44% 7.74%
- --------------------------------------------------
5-Year 11.60% 9.56%
- --------------------------------------------------
Since Inception 7.64% 8.37%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 13.24% 10.47%
- --------------------------------------------------
5-Year 14.72% 12.50%
- --------------------------------------------------
Since Inception 10.62% 11.23%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
U.S. Guaranteed 30%
- --------------------------------------------------
Tax Obligation/General 17%
- --------------------------------------------------
Housing/Single Family 12%
- --------------------------------------------------
Housing/Multifamily 8%
- --------------------------------------------------
Healthcare 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. The
federal only rate is based on the 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 capital gains distributions in December of
$0.0448 per share.
Bar Chart:
1998-1999 Monthly Tax-Free Dividends Per Share(3)
5/98 0.0775
6/98 0.0775
7/98 0.0775
8/98 0.0775
9/98 0.0775
10/98 0.0775
11/98 0.0775
12/98 0.0775
1/99 0.0775
2/99 0.0775
3/99 0.0775
4/99 0.0775
Line Chart:
Share Price Performance
5/1/98 15.625
15.438
15.375
15.438
15.813
15.688
15.938
15.938
15.875
16.188
16.25
16.125
16.063
15.875
15.75
15.875
16.188
16.25
16.25
16.063
16.375
17.063
16.438
16.875
16.81
16.88
16.81
16.81
16.75
17
16.81
16.56
16.63
16.75
16.63
16.5
16.31
16.63
16.69
16.69
16.56
16.63
16.44
16.44
16.31
16.3125
16
16.13
4/30/99 16
Weekly Closing Price
Past performance is not predictive of future results.
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc.
Performance Overview
As of April 30, 1999
NPT
Portfolio Statistics
Inception Date 2/93
- --------------------------------------------------
Share Price $14 7/16
- --------------------------------------------------
Net Asset Value Per Share $14.84
- --------------------------------------------------
Market Yield 5.78%
- --------------------------------------------------
Taxable-Equivalent Yield (Federal Only)(1) 8.38%
- --------------------------------------------------
Fund Net Assets ($000) $915,275
- --------------------------------------------------
Effective Maturity (Years) 17.54
- --------------------------------------------------
Leverage-Adjusted Duration 9.38
- --------------------------------------------------
Annualized Total Return
On Share Price On NAV
- --------------------------------------------------
1-Year 9.56% 7.44%
- --------------------------------------------------
5-Year 10.78% 9.16%
- --------------------------------------------------
Since Inception 5.68% 6.85%
- --------------------------------------------------
Taxable-Equivalent Total Return(2)
On Share Price On NAV
- --------------------------------------------------
1-Year 12.28% 10.03%
- --------------------------------------------------
5-Year 13.84% 11.95%
- --------------------------------------------------
Since Inception 8.55% 9.55%
- --------------------------------------------------
Top Five Sectors (as a % of total investments)
Utilities 19%
- --------------------------------------------------
U.S. Guaranteed 15%
- --------------------------------------------------
Healthcare 13%
- --------------------------------------------------
Housing/Multifamily 10%
- --------------------------------------------------
Tax Obligation/General 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. The
federal only rate is based on the 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:
5/98 0.068
6/98 0.068
7/98 0.068
8/98 0.068
9/98 0.068
10/98 0.068
11/98 0.068
12/98 0.068
1/99 0.068
2/99 0.0695
3/99 0.0695
4/99 0.0695
Line Chart:
Share Price Performance
5/1/98 15.625
15.438
15.375
15.438
15.813
15.688
15.938
15.938
15.875
16.188
16.25
16.125
16.063
15.875
15.75
15.875
16.188
16.25
16.25
16.063
16.375
17.063
16.438
16.875
16.81
16.88
16.81
16.81
16.75
17
16.81
16.56
16.63
16.75
16.63
16.5
16.31
16.63
16.69
16.69
16.56
16.63
16.44
16.44
16.31
16.3125
16
16.13
4/30/99 16
Weekly Closing Price Past performance is not predictive of future results.
<PAGE>
Portfolio of Investments
Nuveen Premium Income Municipal Fund, Inc. (NPI)
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Arizona - 1.0%
$ 10,730,000 The Industrial Development Authority of the County of Pima, Arizona, 1/02 at 103 AAA $ 11,867,380
Industrial Development Lease Obligation Refunding Revenue Bonds,
1988 Series A (Irvington Project), 7.250%, 7/15/10
2,395,000 The Industrial Development Authority of the County of Pima, Arizona, 9/99 at 102 AAA 2,445,894
Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Series 1988, 8.125%, 9/01/20 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.8%
5,250,000 Arkansas Development Finance Authority, Drivers License Revenue 6/07 at 100 AAA 5,403,878
Bonds (Arkansas State Police - Headquarters and Wireless Data
Equipment), Series 1997, 5.400%, 6/01/18
6,245,000 Board of Trustees of the University of Arkansas, Athletic 9/09 at 100 Aaa 6,245,000
Facilities Revenue Bonds (Razorback Stadium Project), Series 1999,
5.050%, 9/15/20 (WI)
- ------------------------------------------------------------------------------------------------------------------------------------
California - 13.9%
13,000,000 State of California, Various Purpose General Obligation 10/03 at 102 Aa3 13,059,410
Refunding Bonds, 5.150%, 10/01/19
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 10,428,658
6,000,000 5.600%, 12/01/32 (Alternative Minimum Tax) 12/03 at 102 AA- 6,162,360
15,975,000 State of California, Department of Transportation, East Bay 3/01 at 102 A1*** 17,130,152
State Building Authority, Certificates of Participation, Series 1991A,
6.500%, 3/01/16 (Pre-refunded to 3/01/01)
23,725,000 State Public Works Board of the State of California, Lease Revenue 6/03 at 102 Aa3 24,534,497
Refunding Bonds (The Regents of the University of California),
1993 Series A (Various University of California Projects),
5.500%, 6/01/21
11,395,000 State Public Works Board of the State of California, No Opt. Call A 12,368,247
Lease Revenue Bonds (Department ofCorrections), 1993 Series E
(California State Prison - Madera County II), 5.500%, 6/01/15
15,420,000 Los Angeles Convention and Exhibition Center Authority, 8/03 at 102 AAA 15,790,234
Lease Revenue Bonds, 1993 Refunding Series A, The City of
Los Angeles, California, 5.375%, 8/15/18
5,000,000 Department of Water and Power of the City of Los Angeles, 11/03 at 102 AAA 4,787,900
California, Electric Plant Refunding Revenue Bonds, Second Issue
of 1993, 4.750%, 11/15/19
12,250,000 Los Angeles County Transportation Commission, California, Sales 7/01 at 100 AA- 12,606,965
Tax Revenue Refunding Bonds, Series 1991-B, 5.750%, 7/01/18
1,285,000 City of Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,968,466
1983 Issue A, 10.750%, 2/01/16
4,125,000 Redevelopment Agency of the City of Moorpark, Moorpark 10/03 at 102 A- 4,373,944
Redevelopment Project, 1993 Tax Allocation Bonds, 6.125%, 10/01/18
20,000,000 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 26,237,400
Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities),
Series 1990A, 7.600%, 5/01/23
5,000,000 Municipal Utility District, Sacramento, California, Electric Revenue 11/03 at 102 AAA 5,070,300
Refunding Bonds, 1993 Series D,5.250%, 11/15/20
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 7,183,368
12,500,000 5.750%, 10/01/25 10/05 at 102 AAA 13,363,125
3,000,000 San Diego Public Facilities Financing Authority, Sewer Revenue 5/03 at 102 AAA 3,039,390
Bonds, Series 1993, 5.250%, 5/15/20
10,000,000 San Joaquin Hills Transportation Corridor Agency, Toll Road 1/07 at 102 AAA 10,147,400
Refunding Revenue Bonds, Series 1997A, 5.250%, 1/15/30
15,540,000 University of California, 4.750%, 9/01/21 9/03 at 102 AAA 14,769,061
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.0%
$ 3,000,000 Colorado Housing and Finance Authority, Single Family Program, 5/07 at 105 Aa2 $ 3,334,590
1997 Series B-2 Senior Bonds, 7.000%, 5/01/26
(Alternative Minimum Tax)
4,500,000 Colorado Housing and Finance Authority, Single Family Program, 11/07 at 105 Aa2 5,047,695
1997 Series C-2 Senior Bonds, 6.875%, 11/01/28 (Alternative Minimum Tax)
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 BBB+ 11,892,636
1,725,000 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,926,842
6,550,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 BBB+ 7,145,330
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
715,000 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 810,181
2,785,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 BBB+ 3,059,963
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 2,044,824
6,870,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 BBB+ 7,414,035
629,618 El Paso County, Colorado, Single Family Mortgage Revenue No Opt. Call Aaa 696,584
Tax - Exempt Refunding Bonds, Series 1992A, Class A-2, 8.750%, 6/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.1%
7,505,000 District of Columbia, General Obligation Bonds, Series 1998B, 6.000%,
6/01/20 No Opt. Call AAA 8,459,936
14,800,000 District of Columbia Housing Finance Agency, Collateralized Single 12/04 at 103 AAA 15,717,452
Family Mortgage Revenue Bonds, Series 1988E-4, 6.375%, 6/01/26
(Alternative Minimum Tax)
5,850,000 District of Columbia Revenue Bonds (Association of American 8/07 at 102 AAA 5,951,322
Medical Colleges Issue), Series 1997A, 5.375%, 2/15/27
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 0.8%
780,000 Florida Housing Finance Agency, GNMA Collateralized Home Ownership 6/99 at 103 Aaa 804,133
Mortgage Revenue Bonds, 1988 Series G1 Bonds, 8.300%, 6/01/20
(Alternative Minimum Tax)
9,290,000 State of Florida, Full Faith and Credit, Department of Transportation, 7/05 at 101 AA+ 10,265,729
Right-of-Way Acquisition and Bridge Construction Bonds,
Series 1995, 5.800%, 7/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.4%
9,950,000 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 10,669,186
Series 1999A, 5.500%, 11/01/22
23,420,000 Development Authority of Monroe County, Georgia, Pollution Control 10/99 at 102 A+ 24,101,288
Revenue Bonds (Georgia Power Company Plant Scherer Project),
Second Series 1994, 6.750%, 10/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 6.2%
19,220,000 Chicago School Reform Board of Trustees of the Board of Education 12/07 at 102 AAA 19,205,008
of the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds
(Dedicated Tax Revenues), Series 1997A, 5.250%, 12/01/27
6,280,000 City of Chicago, Illinois, Chicago O'Hare International Airport, 1/04 at 102 AAA 6,185,926
General Airport Second Lien Revenue Refunding Bonds, 1993 Series C,
5.000%, 1/01/18
4,860,000 City of Chicago, Illinois, Collateralized Single Family Mortgage 3/06 at 105 Aaa 5,420,358
Revenue Bonds, Series 1996-A, 7.000%, 9/01/27 (Alternative Minimum Tax)
10,000,000 The County of Cook, Illinois, General Obligation Bonds, Series 1993A, 11/03 at 100 AAA 9,637,000
5.000%, 11/15/23
8,740,000 Illinois Development Finance Authority, Pollution Control Refunding 2/04 at 102 AAA 9,093,795
Revenue Bonds, 1994 Series A (Illinois Power Company Project),
5.700%, 2/01/24
8,500,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds, 7/03 at 102 Aa1 8,806,000
The University of Chicago, Series 1993B, 5.600%, 7/01/24
5,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 10/02 at 102 AAA 5,417,850
(Highland Park Hospital Project), 6.200%, 10/01/22
2,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997A 10/07 at 102 AAA 2,108,120
(Highland Park Hospital Project), 5.750%, 10/01/26
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois (continued)
$ 17,545,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997 8/07 at 101 AAA $ 17,301,826
(Sherman Health Systems), 5.250%, 8/01/27
4,925,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 6,344,927
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/06
785,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 1,011,323
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992B, 9.000%, 6/01/06
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 1.3%
4,300,000 Indiana State Office Building Commission, Correctional Facilities 7/05 at 102 AAA 4,423,539
Program Revenue Bonds, Series 1995A, 5.500%, 7/01/20
8,000,000 Metropolitan School District of Steuben County Middle School Building 7/05 at 102 AAA 9,152,800
Corporation, First Mortgage Bonds, Series 1995, Steuben County, Indiana,
6.375%, 7/15/16 (Pre-refunded to 7/15/05)
5,300,000 Whitley County Middle School Building Corporation, First Mortgage 1/04 at 102 AAA 5,917,821
Bonds, Series 1994, Columbia City, Indiana, 6.250%, 7/15/15
(Pre-refunded to 1/15/04)
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.6%
3,000,000 Iowa Finance Authority, Private College Refunding Revenue Bonds 12/05 at 102 AAA 3,106,740
(Drake University Project), Series 1996, 5.400%, 12/01/16
5,565,000 Iowa Finance Authority, Variable Rate Demand Industrial Revenue 7/14 at 100 AAA 7,726,112
Refunding Bonds, 1989 Series A (Urbandale Hotel Corporation Project),
8.500%, 8/01/16 (Alternative Minimum Tax) (Pre-refunded to
7/15/14) (Mandatory put 7/15/14)
12,085,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102 AAA 11,870,250
Series 1998 A (Iowa Health System), 5.125%, 1/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.4%
5,890,000 Kentucky Development Finance Authority (St. Elizabeth Medical No Opt. Call AAA 6,216,424
Center), 9.000%, 11/01/00
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 3.0%
9,000,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds 7/08 at 101 AAA 8,671,770
(Franciscan Missionaries of Our Lady Health System Project),
Series 1998C, 5.000%, 7/01/28
2,000,000 Louisiana Public Facilities Authority, Hospital Revenue Refunding 10/08 at 102 AAA 1,936,900
Bonds (Louisiana Health System Corporation Project), Series 1998,
5.000%, 10/01/22
11,860,000 Louisiana Stadium and Exposition District, Hotel Occupancy 7/05 at 102 AAA 13,567,959
Tax Bonds, Series 1995-B, 6.375%, 7/01/25
Louisiana Stadium and Exposition District, Hotel Occupancy Tax
Refunding Bonds, Series 1998B:
3,000,000 4.750%, 7/01/21 7/09 at 102 AAA 2,836,590
6,000,000 5.000%, 7/01/26 7/09 at 102 AAA 5,821,740
7,660,000 Louisiana Public Facilities Authority, Extended Care Facilities Revenue No Opt. Call BBB 10,758,317
Bonds (Comm-CareCorporation Project), Series 1994, 11.000%, 2/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.6%
8,330,000 Community Development Administration, Maryland Department of 4/09 at 101 Aa2 8,242,785
Housing and Community Development, Residential Revenue Bonds,
1998 Series D, 5.250%, 4/01/29 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 4.1%
25,000,000 Massachusetts Bay Transportation Authority, General Transportation 3/07 at 101 AA- 24,165,000
System Bonds, 1998 Series B, 5.000%, 3/01/28
2,900,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,204,964
Revenue Bonds, Semass Project, Series 1991B, 9.250%, 7/01/15
(Alternative Minimum Tax)
2,825,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 2,874,664
Revenue Refunding Bonds (Ogden Haverhill Project), Series 1998A,
5.450%, 12/01/12 (Alternative Minimum Tax)
15,000,000 Massachusetts Industrial Finance Agency, General Obligation 7/07 at 102 AAA 15,157,950
Bonds, Suffolk University, Series 1997, 5.250%, 7/01/27
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts (continued)
$ 5,000,000 Massachusetts Turnpike Authority, Metropolitan Highway System, 1/07 at 102 AAA $ 4,775,650
Revenue Bonds, 1997 Series C (Senior), 5.000%, 1/01/37
8,800,000 Massachusetts Water Resources Authority, General Revenue Bonds, 7/02 at 100 Aaa 9,297,728
1992 Series A, 5.500%, 7/15/22 (Pre-refunded to 7/15/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 3.9%
4,000,000 School District of the City of Detroit, Wayne County, Michigan, 5/03 at 102 AA+ 4,175,760
School Building and Site Improvement and Refunding Bonds
(Unlimited Tax General Obligation), Series 1993, 5.400%, 5/01/13
13,000,000 School District of the City of Detroit, Wayne County, Michigan, No Opt. Call AAA 13,383,630
School Building and Site Improvement Bonds (Unlimited Tax General
Obligation), Series 1998A, 5.250%, 5/01/25
10,550,000 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 100 AAA 10,271,375
Refunding Bonds, Series 1995-B, 5.000%, 7/01/25
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 10,495,917
8,145,000 5.150%, 5/01/27 5/08 at 100 Aaa 8,103,135
9,625,000 Livonia Public School District, General Obligation Bonds, 5.500%, 5/01/21 5/03 at 102 AAA 9,884,490
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.2%
2,910,000 The Minneapolis/Saint Paul Housing Finance Board, Single 11/04 at 102 AAA 3,118,676
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)
21,375,000 The Housing and Redevelopment Authority of the City of 11/15 at 103 AAA 26,509,703
Saint Paul, Minnesota, Sales Tax Revenue Refunding Bonds
(Civic Center Project), Series 1996, 7.100%, 11/01/23
1,927,000 The Housing and Redevelopment Authority of the City of No Opt. Call Aaa 2,090,776
Saint Paul, Minnesota, Single Family Mortgage Revenue Bonds,
Refunding Series 1991-B, 7.250%, 9/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.4%
5,880,000 Missouri Housing Development Commission, Single Family 3/07 at 105 AAA 6,529,505
Mortgage Revenue Bonds (Homeownership Loan Program),
1996 Series C, 7.450%, 9/01/27 (Alternative Minimum Tax)
11,120,000 Francis Howell School District, St. Charles County, Missouri, No Opt. Call Aaa 13,645,241
General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.1%
29,410,000 State of Nevada, Colorado River Commission, General 7/04 at 101 AA 30,454,643
Obligation Limited Tax - Revenue Supported Bonds,
Series 1994, 5.500%, 7/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.0%
10,405,000 New Hampshire Housing Finance Authority, Single Family 7/03 at 102 Aa 10,832,437
Mortgage Revenue Bonds, 1993 Series B, 6.050%, 7/01/25
10,000,000 Business Finance Authority of the State of New Hampshire, 10/03 at 102 BBB- 10,087,100
Pollution Control Refunding Revenue Bonds (The United
Illuminating Company Project), 1993 Series A, 5.875%, 10/01/33
8,060,000 New Hampshire Housing Finance Authority, Single Family 7/06 at 102 Aa3 8,540,457
Mortgage Acquisition Revenue Bonds, 1996 Series B,
6.400%, 1/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 1.7%
New Jersey Health Care Facilities Financing Authority, Revenue
and Refunding Bonds (Saint Barnabas Health Care System Issue),
Series 1998B:
1,600,000 5.250%, 7/01/12 1/09 at 101 AAA 1,673,744
6,490,000 5.250%, 7/01/15 1/09 at 101 AAA 6,701,055
15,000,000 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101 1/2 AAA 15,800,700
Home Buyer Revenue Bonds, 1997 Series U, 5.850%, 4/01/29
(Alternative Minimum Tax)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.3%
$ 4,420,000 New Mexico Mortgage Finance Authority, Single Family 7/02 at 102 Aa1 $ 4,669,067
Mortgage Purchase Refunding Senior Bonds, 1992 Series A2,
6.900%, 7/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 9.8%
11,950,000 Long Island Power Authority, New York, Electric System 6/08 at 101 A- 11,994,335
General Revenue Bonds, Series 1998A, 5.250%, 12/01/26
7,500,000 The City of New York, General Obligation Bonds, No Opt. Call A- 9,034,050
Fiscal 1991 Series B, 9.500%, 6/01/03
10,000,000 The City of New York, General Obligation Bonds, 2/06 at 101 1/2 A- 10,895,100
Fiscal 1996 Series G, 5.750%, 2/01/07
The City of New York, General Obligation Bonds, Fiscal 1997 Series G:
100,000 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A-*** 113,367
9,900,000 6.000%, 10/15/26 10/07 at 101 A- 10,809,216
16,000,000 New York City, New York, Municipal Water Finance Authority, 6/06 at 101 AAA 17,196,640
Water and Sewer System Revenue Bonds, Fiscal 1996 Series B,
5.750%, 6/15/26
New York City Transitional Finance Authority, Future Tax Secured
Bonds, Fiscal 1998 Series C:
31,625,000 4.750%, 5/01/23 5/08 at 101 AA 29,831,230
11,000,000 5.000%, 5/01/26 5/08 at 101 AA 10,690,460
12,365,000 New York State Energy Research and Development Authority, 3/03 at 102 A+ 13,046,188
Facilities Revenue Bonds, Series 1993 A (Consolidated Edison
Company of New York, Inc. Project), 6.000%, 3/15/28
(Alternative Minimum Tax)
10,000,000 New York Local Government Assistance Corporation, 4/04 at 100 A+ 9,694,300
Series 1993 B, Refunding Bonds, 5.000%, 4/01/23
18,280,000 New York State Medical Care Facilities Finance Agency, Hospital 2/04 at 102 AAA 18,667,536
and Nursing Home FHA - Insured Mortgage Revenue Bonds,
1993 Series B, 5.500%, 2/15/22
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 0.9%
12,360,000 State of Ohio, Turnpike Revenue Bonds, 1994 Series A, Issued by 2/04 at 102 Aaa 13,569,426
the Ohio Turnpike Commission, 5.750%, 2/15/24
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.6%
12,875,000 Allegheny County Hospital Development Authority, Pennsylvania, 11/02 at 100 AAA 13,955,341
Health Center Revenue Bonds, Series 1992A (Presbyterian
University Health System, Inc. Project), 6.250%, 11/01/23
(Pre-refunded to 11/01/02)
10,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102 AA+ 10,172,700
Revenue Bonds, Series 1993 - 37A, 5.450%, 10/01/17
8,405,000 Redevelopment Authority of the City of Philadelphia, Pennsylvania, 4/08 at 103 N/R 8,318,933
Multi-Family Housing Mortgage Revenue Bonds, Series 1998A
(Cricket Court Commons Project), 6.200%, 4/01/25
(Alternative Minimum Tax)
5,295,000 The School District of Philadelphia, Pennsylvania, General Obligation 9/05 at 101 AAA 5,471,482
Bonds, Series B of 1995, 5.500%, 9/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.4%
5,250,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 BBB+ 5,397,315
Series X, 5.500%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.9%
13,200,000 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 13,040,016
Hospital Financing Revenue Bonds, Lifespan Obligated Group Issue,
Series 1996, 5.250%, 5/15/26
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.2%
17,250,000 South Carolina Jobs - Economic Development Authority, Hospital 2/06 at 102 AAA 17,236,200
Revenue Bonds (Anderson Area Medical Center, Inc.),
Series 1996, 5.250%, 2/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 5.9%
10,305,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa2 10,995,023
Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29
(Alternative Minimum Tax)
11,020,000 Brazos River Authority, Texas, Collateralized Pollution Control 3/01 at 102 BBB+ 11,874,601
Revenue Bonds (Texas Utilities Electric Company Project),
Series 1994A, 7.875%, 3/01/21 (Alternative Minimum Tax)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Texas (continued)
$ 23,000,000 Brazos River Authority, Texas, Revenue Refunding Bonds (Houston 5/08 at 102 AAA $ 22,886,150
Industries Incorporated Project), Series 1998C, 5.125%, 5/01/19
5,615,000 Dallas-Fort Worth International Airport Facility Improvement 11/00 at 102 Baa2 5,977,841
Corporation, American Airlines, Inc., Revenue Bonds, Series 1990,
7.500%, 11/01/25 (Alternative Minimum Tax)
15,000,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102 AAA 15,664,800
Bonds, Series 1994, 5.300%, 8/15/13
4,750,000 Matagorda County Navigation, Texas, District Number One, 7/00 at 102 AAA 4,965,698
Pollution Control Revenue Refunding Bonds (Central Power and
Light Company Project), Series 1995, 6.100%, 7/01/28
13,350,000 Texas Department of Housing and Community Affairs, Residential 1/09 at 101 AAA 13,383,375
Mortgage Revenue Bonds, Series 1998A, 5.350%, 7/01/30
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.9%
15,000,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/08 at 101 AAA 14,588,400
Refunding Bonds, 1998 Series A, 5.000%, 7/01/20
7,990,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101 1/2 AAA 8,237,530
1997 Series F, 5.750%, 7/01/28 (Alternative Minimum Tax)
4,780,000 Utah Housing Finance Agency, Single Family Mortgage 7/08 at 101 1/2 AAA 4,701,226
Senior Bonds, Series 1998F2, 5.100%, 7/01/28
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.9%
12,510,000 Vermont Housing Finance Agency, Single Family Housing Bonds, 6/07 at 101 1/2 AAA 13,159,895
Series 9, 5.900%, 5/01/29 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.7%
10,000,000 Prince William County Service Authority, Virginia, Water and 7/03 at 102 AAA 9,783,000
Sewer System Refunding Revenue Bonds, Series 1993, 5.000%, 7/01/21
1,000,000 Virginia Housing Development Authority, Commonwealth 7/99 at 102 AA+ 1,004,490
Mortgage Bonds, 1987 Series C, Subseries C-7, 8.375%, 1/01/28
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 17.1%
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) 7/07 at 102 AA 12,220,934
(Optional put 7/01/09) (Mandatory put 7/01/24)
8,000,000 5.650%, 7/01/32 (Alternative Minimum Tax) 7/07 at 102 AA 8,271,360
(Optional put 7/01/09) (Mandatory put 7/01/27)
8,525,000 King County, Washington, Limited Tax General Obligation Refunding 1/08 at 101 AA+ 8,192,696
Bonds (Payable from Sewer Revenues), Series 1998B, 4.750%, 1/01/18
13,450,000 Public Hospital District No. 2, King County, Washington (Evergreen 12/08 at 101 AAA 12,879,048
Community Health Care), Limited Tax General Obligation Bonds,
Series 1998, 5.000%, 12/01/28
17,050,000 Municipality of Metropolitan Seattle, Washington, Sewer Refunding 1/03 at 102 AAA 17,393,387
Revenue Bonds, Series Z, 5.500%, 1/01/33
6,360,000 Public Utility District No. 1 of Snohomish County, Washington, 1/03 at 100 AAA 6,647,981
Generation System Revenue Bonds, Series 1993, 5.500%, 1/01/14
10,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 11/08 at 101 Aaa 9,785,700
Series 1998 (Swedish Health Services), 5.125%, 11/15/22
11,000,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 10,534,700
Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28
4,300,000 Washington Public Power Supply System, Nuclear Project No. 1, 1/00 at 102 AAA 4,494,962
Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15
(Pre-refunded to 1/01/00)
12,950,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/03 at 102 AAA 13,488,591
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
29,870,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/03 at 102 AAA 31,067,787
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 15,960,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/99 at 102 Aaa $ 16,388,046
Refunding Revenue Bonds, Series 1989A, 7.500%, 7/01/15
(Pre-refunded to 7/01/99)
7,500,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/01 at 100 Aaa 7,879,199
Refunding Revenue Bonds, Series 1991A, 6.000%, 7/01/12
(Pre-refunded to 7/01/01)
14,440,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/03 at 102 Aa1 15,400,837
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/12
6,770,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/03 at 102 Aa1 7,037,211
Refunding Revenue Bonds, Series 1993B, 5.625%, 7/01/12
14,500,000 Washington Public Power Supply System, Nuclear Project No. 2, 7/08 at 102 Aa1 14,666,169
Refunding Revenue Bonds, Series 1998A, 5.000%, 7/01/12
13,500,000 Washington Public Power Supply System, Nuclear Project No. 3, 1/00 at 102 AAA 14,112,089
Refunding Revenue Bonds, Series 1989B, 7.250%, 7/01/15
(Pre-refunded to 1/01/00)
22,880,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/03 at 102 Aa1 23,383,817
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
9,350,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/07 at 102 Aa1 9,552,614
Refunding Revenue Bonds, Series 1997-A, 5.250%, 7/01/15
7,275,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/08 at 102 Aa1 7,213,089
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.1%
15,000,000 West Virginia Housing Development Fund, Housing Finance Bonds, 5/02 at 102 AAA 16,042,349
1992 Series D, 7.050%, 11/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
$1,367,381,618 Total Investments - (cost $1,355,642,308) - 98.2% 1,428,558,432
==============----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 26,132,365
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,454,690,797
- ----------------------------------------------------------------------------------------------------------------------==============
</TABLE>
* 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.
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments Nuveen
Premium Income Municipal Fund 2, Inc. (NPM)
April 30, 1999
(Unaudited)
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, 12/02 at 102 Baa1 $ 3,792,110
Series 1993 (5th Avenue Garage Project), 6.750%, 12/01/08
605,000 City of Valdez, Alaska, Home Mortgage Revenue Refunding Bonds, 8/02 at 102 A1 646,539
1992 Series, 7.900%, 2/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 3.0%
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 6,145,198
3,000,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 3,390,000
9,000,000 City of Phoenix, Arizona, Civic Improvement Corporation, Wastewater 7/03 at 102 AAA 9,969,750
System Lease Revenue Bonds, Series 1993, 6.125%, 7/01/14
(Pre-refunded to 7/01/03)
4,380,000 City of Phoenix, Arizona, Civic Improvement Corporation, 7/04 at 102 Aa3 4,182,769
Wastewater System Lease Revenue Refunding Bonds, Series 1993,
4.750%, 7/01/23
4,655,000 The Industrial Development Authority of the County of Pima, Arizona, 1/02 at 103 AAA 5,148,430
Industrial Development Lease Obligation Refunding Revenue Bonds,
1988 Series A (Irvington Project), 7.250%, 7/15/10
- ------------------------------------------------------------------------------------------------------------------------------------
California - 13.4%
7,710,000 State of California, Veterans General Obligation Bonds, Series BH, 12/08 at 101 AAA 7,844,385
5.250%, 12/01/12 (Alternative Minimum Tax)
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 17,297,971
10,500,000 6.700%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 11,758,320
7,150,000 State Public Works Board of the State of California, Lease Revenue 10/04 at 102 A1*** 8,181,316
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)
17,500,000 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa 20,524,700
Revenue Bonds (Department of Corrections), 1994 Series A
(California State Prison - Monterey County Soledad II),
6.875%, 11/01/14 (Pre-refunded to 11/01/04)
30,000,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call BBB- 9,465,300
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21
5,000,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma 12/03 at 102 BBB- 5,289,800
Linda University Medical Center Project), Series 1993A, 6.500%, 12/01/18
3,490,000 Community Redevelopment Financing Authority of the City of Los Angeles, 9/02 at 102 N/R*** 3,718,141
California, Pooled Financing Bonds, Series D (Crenshaw Redevelopment
Project), 7.000%, 9/01/14 (Pre-refunded to 9/01/02)
7,000,000 Los Angeles State Building Authority, Lease Revenue Refunding Bonds No Opt. Call A1 7,713,930
(State of California Department of General Services Lease),
1993 Series A, 5.625%, 5/01/11
5,000,000 Los Angeles County Public Works Finance Authority, Revenue Bonds, 10/04 at 102 AA*** 5,660,400
Series 1994A (Los Angeles County Regional Park and Open Space
District), 6.125%, 10/01/10 (Pre-refunded to 10/01/04)
10,000,000 Los Angeles County Transportation Commission, California, 7/02 at 102 Aaa 11,143,900
Proposition C Sales Tax Revenue Bonds, Second Senior Bonds,
Series 1992-A, 6.750%, 7/01/19 (Pre-refunded to 7/01/02)
2,035,000 Parlier Redevelopment Agency (Parlier Redevelopment Project), 8/02 at 102 BBB*** 2,269,880
1992 Tax Allocation Bonds, Series A, 6.750%, 8/01/22
(Pre-refunded to 8/01/02)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
California (continued)
Redevelopment Agency of the City and County of San Francisco,
California, Hotel Tax Revenue Bonds, Series 1994:
$ 2,390,000 6.750%, 7/01/15 (Pre-refunded to 7/01/04) 7/04 at 102 AAA $ 2,768,911
5,905,000 6.750%, 7/01/25 (Pre-refunded to 7/01/04) at 102 AAA 6,841,179
960,000 6.750%, 7/01/25 7/04 at 102 AAA 1,088,832
5,605,000 County of San Joaquin, California, Certificates of Participation 4/04 at 102 A 6,137,363
(1994 Solid Waste System Facilities Project), 6.600%, 4/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 8.8%
9,870,000 Colorado Health Facilities Authority, Insured Hospital Revenue 2/01 at 102 AAA 10,509,773
Bonds (PSL Healthcare System Project), Series 1991A, 6.250%, 2/15/21
(Pre-refunded to 2/15/01)
1,015,000 Colorado Housing and Finance Authority, Single Family Program 12/04 at 105 Aa2 1,106,533
Senior Bonds, 1994 Series E, 8.125%, 12/01/24 (Alternative Minimum Tax)
Colorado Housing and Finance Authority, General Obligation Bonds,
1994 Series A:
5,785,000 6.850%, 8/01/24 8/02 at 102 A 6,153,794
2,295,000 6.875%, 8/01/30 8/02 at 102 A 2,432,379
4,050,000 Colorado Housing and Finance Authority, Single Family Program 12/05 at 105 Aa2 4,433,454
Senior Bonds, 1995 Series D, 7.375%, 6/01/26
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 BBB+ 503,392
3,155,000 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,524,167
12,115,000 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 BBB+ 13,216,132
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 1,637,358
5,635,000 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 BBB+ 6,191,344
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 2,374,454
16,120,000 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 BBB+ 17,412,985
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 2,126,702
5,315,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 5,741,688
City and County of Denver, Colorado, Multi-Family Housing Revenue
Bonds (FHA-Insured Mortgage Loan - The Boston Lofts Project),
Series 1997A:
1,700,000 5.750%, 10/01/27 (Alternative Minimum Tax) 10/07 at 102 AAA 1,759,194
4,795,000 5.850%, 10/01/38 (Alternative Minimum Tax) 10/07 at 102 AAA 4,961,099
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.4%
3,170,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 3,395,799
Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.6%
1,750,000 Alachua County Health Facilities Authority, Health Facilities 11/00 at 102 AAA 1,891,925
Revenue Bonds, Series 1992 (Santa Fe Healthcare Facilities
Project), 7.600%, 11/15/13 (Pre-refunded to 11/15/00)
5,000,000 Dade County, Florida, Aviation Bonds, Series 1996A, 10/06 at 102 AAA 5,269,150
5.750%, 10/01/18 (Alternative Minimum Tax)
2,850,000 State of Florida, Full Faith and Credit, Department of 7/05 at 101 AAA 3,169,172
Transportation, Right-of-Way Acquisition and Bridge Construction
Bonds, Series 1995, 5.875%, 7/01/24
12,500,000 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium Project), 5/02 at 102 N/R*** 14,083,375
Series 1992, 7.750%, 5/01/27 (Pre-refunded to 5/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.9%
5,500,000 City of Atlanta, Georgia, Water and Sewerage Revenue Bonds, 1/04 at 100 AAA 5,647,620
Series 1993, 4.500%, 1/01/18 (Pre-refunded to 1/01/04)
7,000,000 Development Authority of Burke County, Georgia, Pollution Control 1/03 at 103 AAA 8,192,380
Revenue Bonds (Oglethorpe Power Corporation Vogtle Project),
Series 1992, 8.000%, 1/01/15 (Pre-refunded to 1/01/03)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia (continued)
$ 650,000 Housing Authority of Fulton County, Georgia, Single Family 9/06 at 102 AAA $ 688,168
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities Program), Series 1996A, 6.200%, 9/01/27
(Alternative Minimum Tax)
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 AAA 5,883,869
6,610,000 6.700%, 12/01/25 (Alternative Minimum Tax) 9/04 at 102 AAA 7,089,886
- ------------------------------------------------------------------------------------------------------------------------------------
Idaho - 0.3%
2,335,000 Idaho Housing and Finance Association, Single Family Mortgage Bonds, 7/06 at 102 Aaa 2,486,588
1996 Series G, 6.350%, 7/01/26 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 12.2%
5,000,000 City of Chicago, General Obligation Bonds (Emergency Telephone 1/03 at 102 AAA 5,406,450
System), Series 1993, 5.625%, 1/01/23 (Pre-refunded to 1/01/03)
17,000,000 City of Chicago, General Obligation Bonds, Series A of 1992, 1/02 at 102 AAA 18,352,010
6.250%, 1/01/12 (Pre-refunded to 1/01/02)
1,000,000 City of Chicago, General Obligation Bonds, Project and Refunding 7/08 at 102 AAA 1,000,340
Series 1998, 5.250%, 1/01/20
Chicago School Reform Board of Trustees of the Board of Education of
the City of Chicago, Illinois, Unlimited Tax General Obligation Bonds
(Dedicated Tax Revenues), Series 1998A:
23,800,000 0.000%, 12/01/20 No Opt. Call AAA 7,710,724
61,300,000 0.000%, 12/01/21 No Opt. Call AAA 18,730,215
5,000,000 Chicago School Reform Board of Trustees of the Board of Education No Opt. Call AAA 1,619,900
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds (Dedicated Tax Revenues), Series 1999A, 0.000%, 12/01/20
8,270,000 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 6/02 at 102 AAA 8,738,826
(FHA-Insured Mortgage Loan - Lakeview Towers Project), 6.650%, 12/01/33
1,175,000 City of Chicago, Multi-Family Housing Revenue Bonds, 6/09 at 102 Aaa 1,239,778
Series 1997 (GNMA Collateralized - Bryn Mawr/Belle Shores Project),
5.800%, 6/01/23 (Alternative Minimum Tax)
5,500,000 Chicago Park District, Illinois, General Obligation Capital 1/02 at 102 AA*** 6,018,815
Improvement Bonds and Aquarium and Museum Bonds,
Series 1991, 6.700%, 1/01/11 (Pre-refunded to 1/01/02)
10,900,000 Public Building Commission of Chicago, Illinois, Building Revenue 12/03 at 102 AAA 11,992,725
Bonds, Series A of 1993 (Board of Education of the City of Chicago),
5.750%, 12/01/18 (Pre-refunded to 12/01/03)
4,475,000 City of Chicago, Illinois, Tax Increment Allocation Bonds 1/07 at 102 N/R 4,832,955
(Dunning Redevelopment Project), Series 1996B, 7.250%, 1/01/14
3,530,000 City of Chicago, Illinois, Tax Increment Finance Bonds (Sanitary 1/07 at 102 N/R 3,861,749
Drainage and Ship Canal), Series 1997A, 7.750%, 1/01/14
2,850,000 City of East Louis, Illinois, Mortgage Revenue Refunding Bonds, 7/03 at 102 AAA 3,021,998
Series 1994A (FHA-Insured Mortgage Loan - Dawson Manor
Apartments, Section 8 Assisted Project), 6.500%, 7/01/24
6,900,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 6,901,518
Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19
3,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A+ 3,313,110
Series 1993C (Lutheran General Health System), 6.000%, 4/01/18
11,510,000 The Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102 AA-*** 12,722,233
Revenue Bonds, 1992 Series A, 6.375%, 1/01/15 (Pre-refunded to 1/01/03)
780,000 Village of Wheeling, Cook and Lake Counties, Illinois, Single 11/02 at 102 AAA 827,549
Family Mortgage Revenue Refunding Bonds, Series 1992,
6.850%, 11/01/09
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 7.6%
8,000,000 East Chicago Elementary School Building Corporation, Lake County, 1/03 at 102 A*** 9,014,800
Indiana, First Mortgage Bonds, Series 1992, 7.000%, 1/15/16
(Pre-refunded to 1/15/03)
13,630,000 Hospital Authority of the City of Fort Wayne, Indiana, 11/02 at 102 A+ 15,053,790
Revenue Bonds, Series 1992 (Parkview Memorial Hospital,
Inc. Project), 6.400%, 11/15/22
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana (continued)
$ 6,031,000 City of Greenfield, Indiana, Multi-Family Housing Revenue Bonds, 12/05 at 105 Aaa $ 6,474,520
Series 1996 A (Pedcor Investments - 1988-V, L.P. Project),
6.200%, 12/01/28 (Alternative Minimum Tax)
10,675,000 Highland School Building Corporation, Highland, Indiana, First 1/02 at 102 AAA 11,712,397
Mortgage Bonds, Series 1992A, 6.750%, 1/15/20
(Pre-refunded to 1/15/02)
8,200,000 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/03 at 102 AAA 8,976,868
Series 1993A, Guarantee Revenue Bonds, 6.250%, 2/01/09
2,875,000 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/05 at 102 AAA 3,249,411
Series 1994B, Guarantee Revenue Bonds, 6.750%, 2/01/17
6,000,000 Indiana Development Finance Authority, Environmental Revenue Bonds, 2/03 at 102 AAA 6,218,760
Series 1993B (PSI Energy, Inc.), 5.750%, 2/15/28
(Alternative Minimum Tax)
5,250,000 Indiana Transportation Finance Authority, Aviation Technology 3/03 at 102 A+ 5,685,908
Center, Lease Revenue Bonds, Series A, 6.500%, 3/01/18
5,905,000 Muncie School Building Corporation, First Mortgage Bonds, 7/01 at 102 N/R*** 6,374,566
Series 1992, 6.625%, 7/15/14 (Pre-refunded to 7/15/01)
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.4%
1,680,000 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103 A2 1,826,093
Refunding Bonds, Series 1994, 7.100%, 5/01/12
1,900,000 Sedgwick and Shawnee County, Kansas, Collateralized Single No Opt. Call Aaa 2,107,062
Family Mortgage Refunding Revenue Bonds (GNMA Certificates),
Series 1994A1, 7.900%, 5/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.8%
7,000,000 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102 AAA 7,466,970
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.9%
4,000,000 Bossier Public Trust Financing Authority, Single Family Mortgage 8/05 at 102 AAA 4,177,120
Revenue Refunding Bonds, Series 1995B, 6.125%, 8/01/28
12,750,000 East Baton Rouge Mortgage Finance Authority, Single Family Mortgage 10/05 at 102 Aaa 13,473,308
Revenue Bonds (GNMA and FNMA Mortgage Backed Securities Program),
Series 1994C, 6.350%, 10/01/28 (Alternative Minimum Tax)
4,980,000 New Orleans Home Mortgage Authority, Single Family Mortgage 6/05 at 102 Aaa 5,359,625
Revenue Bonds, Series 1995A, 6.300%, 6/01/28
(Alternative Minimum Tax)
4,510,000 Orleans Levee District (A Political Subdivision of the State of 12/05 at 103 AAA 4,909,676
Louisiana), Public Improvement Bonds, Series 1986, 5.950%, 11/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.0%
1,220,000 Maine State Housing Authority, Mortgage Purchase Bonds, 11/05 at 102 AA 1,291,736
1995 Series B-2, 6.300%, 11/15/26 (Alternative Minimum Tax)
7,925,000 Maine State Housing Authority, Mortgage Purchase Bonds, 8/02 at 102 Aa2 8,257,692
1990 Series A-4, 6.400%, 11/15/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.3%
2,560,000 Community Development Administration, Department of Housing 5/03 at 102 Aa2 2,732,006
and Community Development, State of Maryland, Multi-Family
Housing Revenue Bonds (Insured Mortgage Loans), 1993 Series C,
6.625%, 5/15/23
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.1%
3,080,000 Massachusetts Industrial Finance Agency, Revenue Bonds (College 3/06 at 102 AAA 3,237,234
of the Holy Cross - 1996 Issue), 5.625%, 3/01/26
6,900,000 Massachusetts Water Resources Authority, General Revenue Bonds, 12/04 at 102 AAA 6,957,615
1993 Series C, 5.250%, 12/01/20
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.5%
$ 8,000,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/03 at 102 AAA $ 8,312,880
Refunding Bonds (Oakwood Hospital Obligated Group), Series 1993A,
5.625%, 11/01/18
5,285,000 Michigan State Housing Development Authority, Rental Housing 10/02 at 102 AA- 5,648,449
Revenue Bonds, 1992 Series A, 6.650%, 4/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.4%
3,560,000 Housing and Redevelopment Authority of the City of Saint Paul and 12/02 at 102 BBB+ 3,807,456
the City of Minneapolis, Minnesota, Health Care Facility Revenue
Bonds, Series 1992 (Group Health Plan, Inc. Project), 6.900%, 10/15/22
3,230,000 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 3,395,279
1995 Series D, 5.950%, 2/01/18
5,090,000 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 1/06 at 102 AA 5,378,705
1996 Series G, 6.250%, 7/01/26 (Alternative Minimum Tax)
2,000,000 Southern Minnesota Municipal Power Agency, Power Supply System 1/03 at 102 Aaa 2,159,960
Revenue Bonds, Series 1992B, 5.750%, 1/01/11
2,350,000 Washington County Housing and Redevelopment Authority, Pooled 1/03 at 102 BBB 2,488,791
Housing and Redevelopment Limited Annual Appropriation Tax and
Revenue Bonds (Pooled Refunding Project), Series 1992, 7.200%, 1/01/22
5,170,000 Washington County Housing and Redevelopment Authority, 12/02 at 100 A3*** 5,802,084
Lease Revenue Bonds (South Washington Count Schools Project),
Series 1992, 7.400%, 12/01/14 (Pre-refunded to 12/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.5%
4,000,000 Mississippi Hospital Equipment and Facilities Authority, 10/02 at 102 AAA 4,373,160
Revenue Bonds, Series 1992A (Wesley Health Systems),
6.050%, 4/01/12 (Pre-refunded to 10/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.3%
4,645,000 Missouri State Health and Educational Facilities Authority, 6/08 at 101 AAA 4,548,245
Revenue Bonds (SSM Health Care), Series 1998A, 5.000%, 6/01/22
5,500,000 The Industrial Development Authority of the City of St. Louis, Missouri, 12/02 at 102 N/R 5,907,605
Industrial Revenue Refunding Bonds (Kiel Center Multi-purpose Arena
Project), Series 1992, 7.625%, 12/01/09 (Alternative Minimum Tax)
11,000,000 St. Louis Municipal Finance Corporation, Leasehold Revenue 7/03 at 102 A1 11,774,840
Refunding Bonds, 6.000%, 7/15/13
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.5%
4,000,000 Clark County, Nevada, Industrial Development Revenue Bonds 6/02 at 102 AAA 4,350,120
(Nevada Power Company Project), Series 1992A, 6.700%, 6/01/22
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.6%
5,215,000 New Hampshire Higher Educational and Health Facilities Authority, 7/99 at 102 A- 5,349,025
Hospital Revenue Bonds, Catholic Medical Center Issue,
Series 1989, 8.000%, 7/01/04
- ------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 2.7%
4,500,000 New Jersey Economic Development Authority, Insured Revenue 5/05 at 102 AAA 5,058,630
Bonds (Educational Testing Service Issue), Series 1995A,
6.000%, 5/15/25
8,720,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101 1/2 AAA 8,991,715
Multi-Family Housing Revenue Bonds, 1997 Series A,
5.650%, 5/01/40 (Alternative Minimum Tax)
4,145,000 New Jersey Housing and Mortgage Finance Agency, 11/02 at 102 A+ 4,462,175
Housing Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
1,000,000 Toms River Board of Education, General Obligation Bonds, 7/07 at 100 AAA 1,109,910
Series 1997, 5.750%, 7/15/21 (Pre-refunded to 7/15/07)
6,000,000 The Union County Utilities Authority, New Jersey, Solid Waste Bonds, 6/08 at 101 AAA 6,143,400
County Deficiency Agreement, Series 1998A, 5.350%, 6/01/23
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.4%
3,990,000 New Mexico Mortgage Finance Authority, Single Family Mortgage 7/05 at 102 AAA 4,237,859
Program Bonds, 1995 Series E, 6.300%, 7/01/17
(Alternative Minimum Tax)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 14.1%
$ 7,695,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series E, No Opt. Call A- $ 8,480,736
6.600%, 8/01/03
17,365,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series F, No Opt. Call A- 20,080,539
7.000%, 2/01/06
11,130,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series I, 3/06 at 101 1/2 A- 11,933,252
5.875%, 3/15/18
9,000,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series J 2/06 at 101 1/2 A- 9,644,040
(Subseries J-1), 5.875%, 2/15/19
8,000,000 The City of New York, General Obligation Bonds, Fiscal 1997 Series E, 8/06 at 101 1/2 A- 8,603,360
5.875%, 8/01/24
The City of New York, General Obligation Bonds, Fiscal 1993 Series A:
3,140,000 6.375%, 8/01/08 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 3,444,392
6,860,000 6.375%, 8/01/08 8/02 at 101 1/2 A- 7,451,058
660,000 6.500%, 8/01/11 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 726,488
1,340,000 6.500%, 8/01/11 8/02 at 101 1/2 A- 1,458,362
The City of New York, General Obligation Bonds, Fiscal 1997 Series I:
5,940,000 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101 A-*** 6,796,904
6,080,000 6.250%, 4/15/27 4/07 at 101 A- 6,713,840
The City of New York, General Obligation Bonds, Fiscal 1995 Series D:
285,000 6.600%, 2/01/03 No Opt. Call A-*** 312,383
10,465,000 6.600%, 2/01/03 No Opt. Call A- 11,417,001
1,370,000 New York City, New York, Municipal Water Finance Authority, 6/07 at 101 AAA 1,432,376
Water and Sewer System Revenue Bonds, Fiscal 1997 Series B,
5.500%, 6/15/27
3,150,000 New York City, New York, Municipal Water Finance Authority, 6/05 at 101 AAA 3,394,125
Water and Sewer System Revenue Bonds, Fiscal 1996 Series A,
5.875%, 6/15/25
4,000,000 The Trust for Cultural Resources of the City of New York, Revenue 4/07 at 101 AAA 4,239,600
Bonds, Series 1997A (American Museum of Natural History),
5.650%, 4/01/27
2,500,000 Dormitory Authority of the State of New York, City University 7/06 at 102 BBB+ 2,719,550
System Consolidated Revenue Bonds, 1996 Series 2, 6.000%, 7/01/20
16,200,000 New York State Energy Research and Development Authority, 12/01 at 101 AAA 17,230,482
Facilities Revenue Bonds, Series 1992B (Consolidated Edison
Company of New York, Inc. Project), 6.375%, 12/01/27
(Alternative Minimum Tax)
7,635,000 New York State Medical Care Facilities Finance Agency, 5/05 at 102 AA- 8,125,549
Mercy Medical Center Project Revenue Bonds, 1995 Series A,
5.875%, 11/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.8%
5,185,000 City of Durham Urban Redevelopment Mortgage Revenue Bonds 8/07 at 105 AAA 5,782,053
(Durham Hosiery Mill Project), FHA-Insured, Series 1987,
7.500%, 8/01/29 (Alternative Minimum Tax)
1,915,000 North Carolina Housing Finance Agency, Single Family Revenue Bonds, 3/06 at 102 AA 2,049,088
Series JJ (1985 Resolution), 6.450%, 9/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.4%
4,095,000 Mercer County, North Dakota, Pollution Control Revenue Bonds 7/99 at 103 A 4,224,975
(Basin Electric Power Cooperative - Antelope Valley Station),
1984 Series B, 7.000%, 1/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.5%
2,000,000 Ohio Housing Finance Agency, Multi-Family Housing Mortgage Revenue 1/08 at 102 Aa2 2,025,540
Bonds, Series 1998B-1 (FHA- Insured Mortgage Loan - Courtyards
of Kettering Project), 5.550%, 1/01/40 (Alternative Minimum Tax)
5,250,000 State of Ohio, Ohio Air Quality Development Authority, Air Quality 4/07 at 102 AAA 5,439,473
Development Revenue Bonds (JMG Funding Limited Partnership
Project), Series 1997, 5.625%, 1/01/23 (Alternative Minimum Tax)
6,750,000 Ohio Water Development Authority, State of Ohio, Solid Waste 9/08 at 102 N/R 6,882,638
Disposal Revenue Bonds (Bay Shore Power Project), Tax Exempt
Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.5%
$ 1,000,000 Tulsa County Industrial Authority, Tulsa, Oklahoma, Recreational 9/02 at 102 A- $ 1,090,010
Facilities Revenue Bonds, Refunding Series 1992, 6.600%, 9/01/08
2,990,000 Tulsa County Public Facilities Authority, Tulsa, Oklahoma, Recreational 11/02 at 102 A- 3,269,087
Facility Refunding Revenue Bonds, Series 1992, 6.600%, 11/01/08
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 2.7%
13,350,000 State of Oregon, General Obligation Bonds, Elderly and Disabled 8/02 at 102 AA 14,475,539
Housing Bonds, 1992 Series B, 6.375%, 8/01/24
6,160,000 State of Oregon, General Obligation Veterans Welfare Bonds, 10/05 at 102 AA 6,475,084
Series 75, 6.000%, 4/01/27
1,750,000 State of Oregon, Housing and Community Services Department, 7/07 at 101 1/2 Aa2 1,800,313
Mortgage Revenue Bonds (Single Family Mortgage Program),
1997 Series H, 5.650%, 7/01/28 (Alternative Minimum Tax)
3,255,000 City of Portland, Oregon, Limited Tax Improvement Bonds, 6/06 at 100 Aa 3,424,162
1996 Series A, 5.550%, 6/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.1%
1,000,000 Delaware Valley Regional Finance Authority, Local Government No Opt. Call AAA 1,099,450
Revenue Bonds, Series 1997B, 5.700%, 7/01/27
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.1%
1,375,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 BBB+ 1,413,583
Series X, 5.500%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.2%
2,135,000 School District No. 4 of Lexington County, South Carolina, 7/04 at 102 Baa2 2,365,964
1994, 7.000%, 7/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 1.2%
10,370,000 South Dakota Building Authority, Revenue Bonds, Series 1992, No Opt. Call AAA 11,529,366
6.700%, 9/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.5%
4,850,000 The Health and Educational Facilities Board of the City of Johnson 1/09 at 101 AAA 4,794,516
City, Tennessee, Hospital Revenue Refunding and Improvement Bonds,
Series 1998C (Johnson City Medical Center Hospital), 5.125%, 7/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 2.2%
1,295,000 Baytown Housing Finance Corporation, Single Family Mortgage 9/02 at 103 Aa2 1,439,237
Revenue Refunding Bonds, Series 1992-A, 8.500%, 9/01/11
1,435,000 Hidalgo County Housing Finance Corporation, Florida, Single Family 4/04 at 102 Aaa 1,528,088
Mortgage Revenue Bonds (GNMA and FNMA Collateralized),
Series 1994A, 7.000%, 10/01/27 (Alternative Minimum Tax)
1,385,000 Houston Independent School District, Public Facility Corporation, No Opt. Call AAA 679,079
Harris County, Texas, Lease Revenue Bonds (Cesar E. Chavez High
School), Series 1998A, 0.000%, 9/15/13
6,630,000 Houston Independent School District, Public Facility Corporation No Opt. Call AAA 3,250,755
Harris County, Texas, Lease Revenue Bonds (West Side High School),
Series 1998B, 0.000%, 9/15/13
1,000,000 Humble Independent School District, Harris County, Texas, 2/10 at 100 AAA 810,620
Unlimited Tax Schoolhouse Bonds, Series II 1997, 3.500%, 2/15/18
1,970,000 Lufkin Health Facilities Development Corporation, Texas, 2/06 at 102 BBB 2,145,310
Health System Revenue and Refunding Bonds (Memorial Health
System of East Texas), Series 1995, 6.875%, 2/15/26
2,155,000 Port Arthur Housing Finance Corporation, Single Family Mortgage 9/02 at 103 A 2,348,627
Revenue Refunding Bonds, Series 1992, 8.700%, 3/01/12
8,345,000 State of Texas, Veterans Housing Assistance Bonds, 12/03 at 102 AA 8,951,264
Series 1993, General Obligation Bonds, 6.800%, 12/01/23
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.6%
6,000,000 Redevelopment Agency of Salt Lake County, Utah, 3/02 at 102 A 6,246,600
Central Business District Neighborhood Redevelopment, Junior Lien
Tax Increment Bonds, Series 1992A, 5.800%, 3/01/15
2,455,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102 AAA 2,607,824
1994 Issue B (Federally Insured or Guaranteed Mortgage Loans),
6.450%, 7/01/14
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Utah (continued)
$ 1,245,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101 1/2 AAA $ 1,305,607
1997 Series E2, Class I, 5.875%, 1/01/19 (Alternative Minimum Tax)
1,560,000 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101 1/2 AAA 1,586,629
1997 Series C, 5.600%, 7/01/18 (Alternative Minimum Tax)
3,000,000 Municipal Building Authority of Weber County, Utah, 12/04 at 102 AAA 3,588,030
Lease Revenue Bonds, Series 1994, 7.500%, 12/15/19
(Pre-refunded to 12/15/04)
- ------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.7%
6,620,000 Vermont Housing Finance Agency, Single Family Housing Bonds, 5/02 at 102 A+ 6,931,537
Series 4, 6.400%, 11/01/25
- ------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.8%
7,000,000 The County Commission of Harrison County, West Virginia, 5/03 at 102 AAA 7,600,249
Solid Waste Disposal Revenue Bonds (The Potomac Edison Company
Harrison Station Project), Series B, 6.250%, 5/01/23
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 2.0%
14,880,000 Wisconsin Housing and Economic Development Authority, 1/05 at 102 AA 15,972,042
Home Ownership Revenue Bonds, 1995 Series B, 7.100%, 9/01/15
(Alternative Minimum Tax)
3,215,000 Wisconsin Health and Educational Facilities Authority, 2/07 at 102 AAA 3,365,011
Revenue Bonds, Series 1997 (Marshfield Clinic Project),
5.625%, 2/15/17
- ------------------------------------------------------------------------------------------------------------------------------------
$ 958,061,000 Total Investments - (cost $859,470,845) - 98.5% 939,711,231
=============-----------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 14,099,360
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $953,810,591
- ------------------------------------------------------------------------------------------------------------------------============
</TABLE>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
government or U.S. government agency securities which ensures the timely payment
of principal and interest. Securities are normally considered to be equivalent
to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
April 30, 1999
(Unaudited)
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 4.1%
$ 8,000,000 Alabama Higher Education Loan Corporation, Student Loan Revenue No Opt. Call AAA $ 8,557,600
Refunding Bonds, Series 1994-D, 5.850%, 9/01/04
(Alternative Minimum Tax)
11,745,000 Alabama Special Care Facilities Financing Authority of Birmingham, 11/05 at 101 AA+ 11,319,244
Hospital Revenue Bonds (Daughters of Charity National
Health System - Providence Hospital and St. Vincent's Hospital),
Series 1995, 5.000%, 11/01/25
11,000,000 The DCH Health Care Authority, Health Care Facilities Revenue Bonds, 12/02 at 102 A+ 11,468,160
Series 1993-B, 5.750%, 6/01/23
6,000,000 Jefferson County, Alabama, Sewer Revenue Capital Improvement 2/09 at 101 AAA 6,406,920
Warrants, Series 1999-A, 5.750%, 2/01/38
- -----------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.2%
515,000 Arkansas Development Finance Authority, Single Family Mortgage 8/01 at 103 AA 540,209
Revenue Refunding Bonds, 1991 Series A (FHA - Insured or VA
Guaranteed Mortgage Loans), 8.000%, 8/15/11
416,262 City of Jacksonville, Arkansas, Residential Housing Facilities Board, 7/03 at 103 Aaa 452,615
Single Family Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 1/01/11
660,682 Residential Housing Facilities Board of Lonoke County, Arkansas, 4/05 at 103 Aaa 721,954
Single Family Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 4/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
California - 3.6%
5,000,000 California Health Facilities Financing Authority, Kaiser Permanente 12/00 at 102 A*** 5,339,250
Revenue Bonds, 1990 Series A, 6.500%, 12/01/20
(Pre-refunded to 12/01/00)
4,780,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call BBB- 2,285,079
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14
Community Redevelopment Financing Authority of the City of
Los Angeles, California, Grand Central Square Multi-Family
Housing Bonds, 1993 Series A:
500,000 5.750%, 12/01/13 (Alternative Minimum Tax) 6/03 at 102 BB 502,260
3,705,000 5.900%, 12/01/26 (Alternative Minimum Tax) 5/99 at 100 A 3,706,334
4,500,000 Los Angeles County Transportation Commission, California, 7/02 at 102 Aaa 5,014,755
Proposition C Sales Tax Revenue Bonds, Second Senior Bonds,
Series 1992-A, 6.750%, 7/01/19 (Pre-refunded to 7/01/02)
1,715,000 Housing Authority of the County of Merced, California, 1/04 at 102 Aaa 1,770,617
Multi-Family Housing Refunding Revenue Bonds, Series 1993A
(Belmont Park Apartments Project), 5.875%, 1/01/19
2,500,000 Transmission Agency of Northern California, California - 5/02 at 102 AAA 2,726,650
Oregon Transmission Project Revenue Bonds, 1992 Series A,
6.500%, 5/01/16
5,000,000 Airports Commission of the City and County of San Francisco, 5/04 at 101 AAA 5,499,300
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 8, 6.300%, 5/01/25 (Alternative Minimum Tax)
3,545,000 Redevelopment Agency of the City of San Leandro, 6/03 at 102 A- 3,746,498
Plaza 1 and Plaza 2 Redevelopment Projects, 1993
Tax Allocation Bonds, Series A, 6.125%, 6/01/23
1,945,000 South Gate Public Financing Authority, Los Angeles County, No Opt. Call AAA 2,235,369
California, Water Revenue Refunding Bonds, 1996 Series A,
6.000%, 10/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.2%
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 BBB+ 6,551,460
3,040,000 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call BBB+ 3,825,779
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Colorado (continued)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
$ 865,000 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa $ 966,214
3,280,000 7.750%, 11/15/21(Alternative Minimum Tax) 11/01 at 102 BBB+ 3,578,119
210,000 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 227,056
790,000 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 BBB+ 835,646
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
1,100,000 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,229,129
4,140,000 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 BBB+ 4,467,847
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 442,920
3,695,000 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 BBB+ 3,980,771
115,000 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Aaa 124,920
1,190,000 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 BBB+ 1,273,276
City and County 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 359,380
885,000 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 BBB+ 987,554
- ------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 1.4%
6,500,000 State of Connecticut, Health and Educational Facilities Authority, 7/00 at 102 AAA 6,900,075
Revenue Bonds, Yale-New Haven Hospital Issue, Series F,
7.100%, 7/01/25 (Pre-refunded to 7/01/00)
3,000,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 3,213,690
Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
2,400,000 Connecticut Development Authority, Water Facilities Revenue 12/03 at 102 AAA 2,699,976
Refunding Bonds (The Connecticut Water Company Project -
1993 Series), 6.650%, 12/15/20
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 4.4%
5,000,000 District of Columbia, General Obligation Bonds, 6.000%, 6/01/09 6/03 at 102 AAA 5,446,500
6,000,000 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 6,434,940
Series 1993 B, 5.500%, 6/01/10
3,240,000 District of Columbia, Hospital Revenue Refunding Bonds 8/02 at 102 A-*** 3,609,101
(Medlantic Healthcare Group, Inc. Issue), Series 1992B,
6.750%, 8/15/07 (Pre-refunded to 8/15/02)
4,250,000 District of Columbia, Hospital Revenue Refunding Bonds 8/06 at 102 AAA 4,671,303
(Medlantic Healthcare Group, Inc. Issue), Series 1993A,
5.750%, 8/15/14
9,500,000 District of Columbia, General Obligation Refunding Bonds, Series 1993A, No Opt. Call AAA 10,504,897
6.000% 6/01/07
4,615,000 District of Columbia, Housing Finance Agency, Collateralized 12/04 at 103 AAA 4,753,681
Single Family Mortgage Revenue Bonds, Series 1988F-1,
5.850%, 12/01/14 (Alternative Minimum Tax)
4,500,000 District of Columbia, University Revenue Refunding Bonds 10/02 at 102 AAA 5,018,580
(The Howard University Issue), Series 1992A, 6.750%, 10/01/12
(Pre-refunded to 10/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.0%
9,500,000 City of Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100 AAA 9,448,890
Series 1998, 5.000%, 10/01/28
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.3%
3,400,000 City of Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 3,645,752
Series 1999A, 5.500%, 11/01/22
2,425,000 Development Authority of Burke County, Georgia, Pollution No Opt. Call AAA 2,582,892
Control Revenue Bonds (Oglethorpe Power Corporation Vogtle
Project), Series 1992, 7.500%, 1/01/03
2,880,000 Municipal Electric Authority of Georgia, General Power No Opt. Call A 3,776,285
Revenue Bonds, 1992B Series, 8.250%, 1/01/11
4,185,000 Municipal Electric Authority of Georgia, General Power No Opt. Call AAA 5,471,469
Revenue Bonds, Series EE, 7.250%, 1/01/24
5,500,000 Municipal Electric Authority of Georgia, General Power No Opt. Call AAA 5,974,485
Revenue Bonds, 1993B Series, 5.700%, 1/01/19
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.7%
$ 1,500,000 State of Hawaii, Airports System Revenue Bonds, Series of 1990 7/00 at 102 AAA $ 1,589,400
(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)
City and County of Honolulu, Hawaii, General Obligation Bonds,
Refunding and Improvement, Series 1993B:
1,580,000 5.000%, 10/01/13 No Opt. Call Aaa 1,630,007
3,420,000 5.000%, 10/01/13 No Opt. Call AA- 3,513,811
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 12.5%
4,000,000 Board of Education of the City of Chicago, General Obligation No Opt. Call AAA 4,630,960
Lease Certificates, 1992 Series A, 6.250%, 1/01/15
5,000,000 City of Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102 AAA 4,995,950
5.250%, 1/01/28
Cook County School District 99, Cicero, General Obligation
School Bonds, Series 1997:
1,345,000 8.500%, 12/01/12 No Opt. Call Aaa 1,848,084
1,455,000 8.500%, 12/01/13 No Opt. Call Aaa 2,023,439
1,685,000 8.500%, 12/01/15 No Opt. Call Aaa 2,391,116
3,140,000 Illinois Development Finance Authority, Child Care Facility 9/02 at 102 N/R 3,316,845
Revenue Bonds, Series 1992 (Illinois Facilities Fund Project),
7.400%, 9/01/04
2,240,000 Illinois Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 2,623,242
Chicago College of Osteopathic Medicine, Series A,
8.750%, 7/01/05
10,360,000 Illinois Educational Facilities Authority, Revenue Refunding Bonds, 7/01 at 102 A1*** 11,294,058
Loyola University of Chicago, Series 1991-A, 7.125%, 7/01/21
(Pre-refunded to 7/01/01)
3,000,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 3,000,660
Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19
2,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 7/02 at 102 BBB 2,135,920
(Trinity Medical Center), 7.000%, 7/01/12
Illinois Health Facilities Authority, Revenue Refunding Bonds,
Series 1993C (Lutheran General Healthsystem):
5,705,000 7.000%, 4/01/08 No Opt. Call A+ 6,686,260
4,075,000 7.000%, 4/01/14 No Opt. Call A+ 4,988,167
8,190,000 Illinois Housing Development Authority, Multi-Family Program Bonds, 9/04 at 102 A+ 8,853,062
Series 5, 6.650%, 9/01/14
3,410,000 Illinois Housing Development Authority, Section 8 Elderly 11/02 at 102 A 3,588,275
Housing Revenue Bonds (Skyline Towers Apartments),
Series 1992B, 6.875%, 11/01/17
3,115,000 Illinois Housing Development Authority, Section 8 Elderly Housing 1/03 at 102 A*** 3,448,741
Revenue Bonds (Morningside North Development), Series 1992D,
6.600%, 1/01/07 (Pre-refunded to 1/01/03)
5,000,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1990 11/00 at 102 A3*** 5,381,000
(Riverside Senior Living Center Project), 7.500%, 11/01/20
(Pre-refunded to 11/01/00)
11,690,000 Illinois Health Facilities Authority, Refunding Revenue Bonds, 11/00 at 102 AAA 12,925,282
Series 1990-B (Hinsdale Hospital), 9.000%, 11/15/15
2,025,000 Long Creek Township, Macon County, Illinois, Waterworks 5/03 at 100 N/R 2,107,397
Refunding Revenue Bonds, Series 1993, 7.250%, 5/01/23
3,050,000 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 3,901,804
Lake, McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20
14,375,000 Village of Wheeling, Illinois, Multi-Family Housing Revenue Bonds, 2/03 at 100 AAA 14,855,988
Series 1993A (FHA-Insured Mortgage Loan - Arlington Club
Project), 6.400%, 2/01/40
4,510,000 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 4,842,838
Madison County, Illinois, General Obligation Bonds
(Alternate Revenue Source), Series 1993, 6.625%, 2/01/14
4,295,000 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 4,589,637
Madison County, Illinois, General Obligation Tort
Immunity Bonds, Series 1993, 6.500%, 2/01/14
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.4%
$ 2,250,000 Indiana Bond Bank, Special Program Bonds, Series 1992B, 6.750%, 8/01/12 2/03 at 102 A+ $ 2,485,193
3,200,000 Indiana Health Facility Financing Authority, Hospital Revenue 9/02 at 102 A 3,509,696
Refunding Bonds, Series 1992 (The Methodist Hospitals, Inc.),
6.750%, 9/15/09
2,100,000 City of Indianapolis, Indiana, Economic Development Revenue Bonds, 7/03 at 103 N/R 2,108,274
Series 1993A (The Meadows - Section 8 Assisted Project),
6.000%, 7/01/23 (Alternative Minimum Tax)
2,000,000 Hospital Authority of the City of Kokomo, Indiana, Hospital Revenue No Opt. Call N/R 2,188,980
Refunding Bonds, Series 1993 (Saint Joseph Hospital and Health
Center of Kokomo), 6.250%, 8/15/05
3,615,000 Mooresville Consolidated School Building Corporation, First 1/04 at 101 N/R*** 3,973,970
Mortgage Bonds, Series 1994A (Morgan County, Indiana),
6.200%, 7/15/15 (Pre-refunded to 1/15/04)
5,900,000 Muncie School Building Corporation, First Mortgage Bonds, 7/01 at 102 N/R*** 6,369,168
Series 1992, 6.625%, 7/15/14 (Pre-refunded to 7/15/01)
9,500,000 City of Petersburg, Indiana, Pollution Control Refunding 1/03 at 102 Aa2 10,104,675
Revenue Bonds, Series 1993A (Indianapolis Power
and Light Company Project), 6.100%, 1/01/16
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.5%
675,000 City of Davenport, Iowa, Home Ownership Mortgage Revenue 9/04 at 102 A1 720,995
Refunding Bonds, Series 1994, 7.900%, 3/01/10
3,810,000 Iowa Finance Authority, Hospital Revenue Bonds (Trinity Regional 7/02 at 102 N/R*** 4,233,939
Hospital Project), Series 1993, 7.000%, 7/01/12
(Pre-refunded to 7/01/02)
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 1.4%
1,265,000 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103 A2 1,375,004
Refunding Bonds, Series 1994, 7.100%, 5/01/12
Kansas Development Finance Authority, Multi-Family Housing
Refunding Revenue Bonds (First Kansas State Partnership, L.P. Project),
Series 1998Y:
7,910,000 6.000%, 12/01/20 (Alternative Minimum Tax) 12/08 at 101 N/R 7,852,732
2,460,000 6.125%, 12/01/28 (Alternative Minimum Tax) 12/08 at 101 N/R 2,439,902
985,000 Labette County, Kansas, Single Family Mortgage Revenue 6/03 at 103 Aa2 1,054,246
Refunding Bonds, 1993 Series A, 8.400%, 12/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.8%
7,000,000 Kentucky Housing Corporation, Housing Revenue Bonds, 1996 Series A, 7/06 at 102 AAA 7,466,970
6.375%, 7/01/28 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.2%
3,400,000 Clover Dale Housing Corporation, 1995 Multi-Family Mortgage 4/01 at 100 AA- 3,457,120
Revenue Refunding Bonds (Clover Dale Plaza - FHA Insured Mortgage,
Section 8 Assisted Project), Series A, 6.550%, 2/01/22
6,555,000 Orleans Levee District (A Political Subdivision of the State of 12/05 at 103 AAA 7,176,676
Louisiana), Public Improvement Bonds, Series 1986, 5.950%, 11/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.9%
8,000,000 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A 8,302,640
Student Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland - 2.6%
7,500,000 Community Development Administration, Maryland Department of 3/09 at 101 Aa2 7,488,150
Housing and Community Development, Residential Revenue Bonds,
1998 Series D, 5.250%, 9/01/29 (Alternative Minimum Tax)
5,000,000 Community Development Administration, Maryland Department of 1/07 at 102 Aa2 5,308,200
Housing and Community Development, Housing Revenue Bonds,
Series 1996A, 5.875%, 7/01/16
2,000,000 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 Baa1 2,040,340
Project and Refunding Revenue Bonds, Doctors Community
Hospital Issue, Series 1993, 5.750%, 7/01/13
1,790,000 Maryland Transportation Authority, Special Obligation Revenue 7/04 at 102 AAA 1,822,381
Bonds, Baltimore/Washington International Airport Projects,
Series 1994-A (Qualified Airport Bonds), 6.400%, 7/01/19
(Alternative Minimum Tax)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland (continued)
$ 6,800,000 Housing Opportunities Commission of Montgomery County, Maryland, 7/06 at 102 Aaa $ 7,325,708
Multi-Family Housing Revenue Bonds, 1996 Series B,
6.400%, 7/01/28 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.3%
2,000,000 Massachusetts Health and Educational Facilities Authority, 7/03 at 102 Baa1*** 2,192,080
Revenue Bonds, Faulkner Hospital Issue, Series C, 6.000%, 7/01/13
(Pre-refunded to 7/01/03)
2,000,000 Massachusetts Housing Finance Agency, Housing Project 4/03 at 102 A+ 2,134,700
Revenue Bonds, 6.300%, 10/01/13
4,195,000 Massachusetts Health and Educational Facilities Authority, 2/04 at 102 AA 4,315,019
Revenue Refunding Bonds, Youville Hospital Issue
(FHA-Insured Project), Series B, 6.000%, 2/15/34
3,300,000 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,647,028
Revenue Bonds, Semass Project, Series 1991B, 9.250%, 7/01/15
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 5.2%
5,000,000 City of Detroit, Michigan, Convention Facility Limited Tax 9/03 at 102 AAA 5,157,600
Revenue Refunding Bonds (Cobo Hall Expansion Project),
Series 1993, 5.250%, 9/30/12
10,225,000 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101 AAA 9,960,479
Senior Lien Bonds, Series 1997-A, 5.000%, 7/01/27
3,500,000 Hamilton Community Schools, County of Allegan, State of Michigan, 5/08 at 100 AAA 3,424,225
1998 School Building and Site and Refunding Bonds
(General Obligation-Unlimited Tax), 5.000%, 5/01/24
2,545,000 City of Hancock Hospital Finance Authority, FHA-Insured Mortgage 8/08 at 100 AAA 2,483,640
Hospital Revenue Bonds (Portage Health System, Inc.),
Series 1998, 4.625%, 8/01/18
1,000,000 City of Kalamazoo Hospital Finance Authority, Hospital Revenue 5/06 at 102 AAA 1,055,110
Refunding and Improvement Bonds (Bronson Methodist Hospital),
Series 1996, 5.750%, 5/15/16
2,000,000 Michigan State Hospital Finance Authority, Hospital Revenue and No Opt. Call BBB 2,029,460
Refunding Bonds (The Detroit Medical Center Obligated Group),
Series 1993B, 5.000%, 8/15/03
3,200,000 Michigan State Hospital Finance Authority, Hospital Revenue and 8/02 at 102 AAA 3,373,664
Refunding Bonds, Series 1992 Linked BC (Bon Secours Health
System Project), 6.100%, 8/15/22
10,500,000 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB 9,598,680
Bonds (The Detroit Medical Center Obligated Group), Series 1998A,
5.250%, 8/15/23
3,750,000 Michigan Strategic Fund, Limited Obligation Refunding 6/03 at 102 AAA 4,051,425
Revenue Bonds (Consumers Power Company Project),
Collateralized Series 1993B, 5.800%, 6/15/10
6,000,000 County of Monroe, Michigan, Pollution Control Revenue Bonds 9/03 at 102 AAA 6,626,940
(The Detroit Edison Company Project), Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.4%
5,000,000 Minneapolis/St. Paul, Minnesota, Housing Finance Board, 11/07 at 102 AAA 5,146,600
Single Family Mortgage Revenue Bonds, FNMA/GNMA Backed
Program, Phase XI-AB (Alternative Minimum Tax)
4,000,000 Minneapolis Community Development Agency, Limited Tax Supported 12/02 at 102 A- 4,414,760
Development Revenue Bonds, Series 1992G-3, 7.375%, 12/01/12
2,720,000 City of Minnetonka, Minnesota, Multi-Family Housing Revenue 6/04 at 102 AAA 2,919,322
Refunding Bonds, Series 1994A (GNMA Collateralized Mortgage
Loan - Brier Creek Project), 6.450%, 6/20/24
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 1.1%
2,000,000 Mississippi Higher Education Assistance Corporation, Student 9/02 at 102 Aaa 2,069,720
Loan Revenue Bonds, Senior Series 1993-B, 5.800%, 9/01/06
(Alternative Minimum Tax)
1,220,000 Mississippi Housing Finance Corporation, Single Family Mortgage 10/99 at 102 AAA 1,258,247
Purchase Revenue Bonds, Series 1989 (GNMA Mortgage - Backed
Securities Program), 8.250%, 10/15/18 (Alternative Minimum Tax)
2,620,000 Mississippi Home Corporation, Single Family Mortgage 4/05 at 102 Aaa 2,785,925
Revenue Bonds, Series 1995B, 6.550%, 4/01/21
(Alternative Minimum Tax)
1,695,000 Mississippi Regional Housing Authority No. V, Multi-Family Housing 7/00 at 105 AAA 1,798,497
Revenue Refunding Bonds, Series 1993A (FHA-Insured Mortgage
Loan - Deville Apartments Section 8 Assisted Project),
7.050%, 7/01/21
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Mississippi (continued)
$ 1,785,000 Mississippi Educational Facilities Authority, For Private Nonprofit 6/03 at 102 N/R $ 1,852,348
Institutions of Higher Learning, Educational Facilities Revenue Bonds
(Tougaloo College Project), Series 1993A, 6.500%, 6/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 2.8%
10,000,000 Energy America, Nebraska, Natural Gas Revenue Note (Metropolitan No Opt. Call N/R 10,089,600
Utility District Project), Series 1997B, 5.700%, 7/01/08
9,000,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate No Opt. Call AAA 9,484,560
Bonds, Series A-5A, 6.250%, 6/01/18 (Alternative Minimum Tax)
5,075,000 Airport Authority of the City of Omaha, Nebraska, Airport Facilities 1/02 at 102 A1 5,712,369
Revenue Refunding Bonds, Series 1991, 8.375%, 1/01/14
- ------------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.8%
4,500,000 Clark County School District, Nevada (General Obligation - No Opt. Call AAA 5,462,325
Limited Tax School Improvement Bonds - Current Coupon Bonds),
Series 1991A, 7.000%, 6/01/10
1,725,000 Nevada Housing Division, Single Family Program Senior Bonds, 4/04 at 102 A1 1,812,837
1993 Issue B, 6.200%, 10/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.5%
2,355,000 New Hampshire Housing Finance Authority, Single Family Residential 7/00 at 102 AA 2,447,763
Mortgage Bonds, 1990 Series A, 7.950%, 7/01/22
(Alternative Minimum Tax)
1,885,000 New Hampshire Housing Finance Authority, Single Family Mortgage 1/07 at 102 Aa3 1,991,446
Acquisition Revenue Bonds, 1996 Series C, 6.200%, 7/01/16
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.3%
365,000 New Mexico Educational Assistance Foundation, Student 12/02 at 101 A 384,309
Loan Revenue Bonds, 1992 Series One, Student Loan Revenue
Bonds, Subordinate 1992 Series One B, 6.850%, 12/01/05
(Alternative Minimum Tax)
2,215,000 New Mexico Mortgage Finance Authority, Single Family Mortgage 7/02 at 102 Aa1 2,339,815
Purchase Refunding Senior Bonds, 1992 Series A2, 6.900%, 7/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 12.1%
10,000,000 Erie County, New York, Industrial Development Agency, Solid Waste 12/10 at 103 N/R 10,203,500
Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna
Project), 9.050%, 12/01/25 (Alternative Minimum Tax)
14,000,000 Long Island Power Authority, New York, Electric System General 6/03 at 101 A- 14,382,620
Revenue Bonds, Series 1998A, 5.500%, 12/01/29
1,000,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series A, No Opt. Call A- 1,134,950
7.000%, 8/01/04
3,500,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series B, No Opt. Call A- 3,880,940
6.750%, 8/15/03
14,310,000 The City of New York, General Obligation Bonds, Fiscal 1996 Series F, No Opt. Call A- 15,979,262
6.500%, 2/01/05
The City of New York, General Obligation Bonds, Fiscal 1991 Series D:
4,240,000 9.500%, 8/01/02 (Pre-refunded to 8/01/01) 8/01 at 101 1/2 Aaa 4,838,391
160,000 9.500%, 8/01/02 8/01 at 101 1/2 A- 181,328
16,915,000 New York City Transitional Finance Authority, Future Tax Secured Bonds, 5/08 at 101 AA 16,439,012
Fiscal 1998 Series C, 5.000%, 5/01/26
Dormitory Authority of the State of New York, The New York and
Presbyterian Hospital, FHA-Insured Mortgage Hospital Revenue Bonds,
Series 1998:
4,350,000 5.500%, 8/01/10 No Opt. Call AAA 4,696,521
5,000,000 5.500%, 8/01/11 No Opt. Call AAA 5,400,500
10,500,000 New York State Medical Care Facilities Finance Agency, 8/02 at 102 AAA 11,136,300
Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series B, 6.200%, 8/15/22
4,200,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AA 4,534,992
FHA-Insured Mortgage Project Revenue Bonds, 1995 Series B,
6.150%, 2/15/35
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
New York (continued)
New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1994 Series
A:
$ 4,875,000 6.200%, 2/15/21 (Pre-refunded to 2/15/04) 2/04 at 102 AA*** $ 5,433,480
3,365,000 6.200%, 2/15/21 2/04 at 102 AA 3,697,664
7,500,000 New York State Thruway Authority, General Revenue Bonds, Series C, 1/05 at 102 AAA 8,375,550
6.000%, 1/01/15 (Pre-refunded to 1/01/05)
- ------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.2%
2,000,000 North Carolina Municipal Power Agency, Number 1 Catawba Electric No Opt. Call AAA 2,251,480
Revenue Bonds, Series 1992, 6.000%, 1/01/11
- ------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 1.0%
8,045,000 Mercer County, North Dakota, Pollution Control Revenue Bonds 7/99 at 103 A 8,300,348
(Basin Electric Power Cooperative - Antelope Valley Station),
1984 Series B, 7.000%, 1/01/19
755,000 City of Minot, North Dakota, Single Family Mortgage Revenue 8/03 at 102 AA 809,715
Refunding Bonds, Series 1993, 7.700%, 8/01/10
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 3.2%
4,500,000 Akron, Bath and Copley Joint Township Hospital District, Ohio, 11/02 at 102 Baa1 4,776,300
Hospital Facilities Revenue Bonds, Series 1992 (Summa Health
System Project), 6.250%, 11/15/07
1,995,000 County of Franklin, Ohio, Multi-Family Housing Mortgage Revenue 1/05 at 103 AA 2,008,466
Bonds, Series 1994A (FHA-Insured Mortgage Loan - Hamilton Creek
Apartments Project), 5.550%, 7/01/24 (Alternative Minimum Tax)
3,800,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Bonds 3/05 at 102 AAA 4,076,032
(GNMA Mortgage - Backed Securities Programs), 1995 Series A-1,
6.300%, 9/01/17
8,990,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue Bonds 9/99 at 102 AAA 9,199,107
(GNMA Mortgage - Backed Securities Program), 1989 Series A,
7.650%, 3/01/29 (Alternative Minimum Tax)
4,215,000 The Student Loan Funding Corporation, Cincinnati, Ohio, Student Loan No Opt. Call A1 4,303,557
Revenue Bonds, Series 1986A, 5.500%, 12/01/01
(Alternative Minimum Tax)
4,370,000 City of Toledo, Ohio, General Obligation - Limited Tax, Various Purpose 12/04 at 102 AAA 4,787,029
Improvement Bonds, Series 1994, 5.750%, 12/01/09
- ------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 2.7%
Oklahoma County Finance Authority, Multi-Family Housing First
Mortgage Revenue Bonds, Series 1998A (Multiple Apartments
Project):
3,495,000 7.000%, 4/01/18 4/06 at 102 N/R 3,533,934
7,000,000 7.125%, 4/01/28 4/06 at 102 N/R 7,079,870
10,000,000 Tulsa County Industrial Authority, First Mortgage Multi-Family 3/11 at 101 N/R 10,036,000
Housing Revenue Bonds, Series 1999 (Stoneridge Apartments Project),
6.125%, 3/01/39 (Alternative Minimum Tax)
3,340,000 Tulsa County Industrial Authority, Hospital Revenue and Refunding No Opt. Call AAA 3,919,624
Bonds (Hillcrest Medical Center Project), Series 1996, 6.500%, 6/01/09
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 1.6%
12,390,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1997 No Opt. Call AAA 14,870,354
(General Obligation Bonds), 6.500%, 7/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.8%
5,750,000 Piedmont Municipal Power Agency, Electric Revenue Refunding Bonds, 1/01 at 100 AAA 4,806,080
Series 1991, 4.000%, 1/01/23
2,460,000 Piedmont Municipal Power Agency, Electric Revenue Bonds, No Opt. Call AAA 2,655,373
1998A Refunding Series, 5.500%, 1/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 0.7%
5,845,000 South Dakota Student Loan Assistance Corporation, 8/99 at 102 AAA 6,020,876
7.625%, 8/01/06 (Alternative Minimum Tax) (Pre-refunded to 8/01/99)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.8%
$ 5,000,000 The Metropolitan Government of Nashville and Davidson County, 5/08 at 102 AA $ 5,010,300
Tennessee, Electric System Revenue Bonds, 1998 Series A,
5.200%, 5/15/23
2,400,000 Tennessee Housing Development Agency, Mortgage Finance 7/04 at 102 A+ 2,573,088
Program Bonds, 1994 Series A, 6.900%, 7/01/25
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 6.3%
1,000,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa2 1,066,960
Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29
(Alternative Minimum Tax)
9,950,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, No Opt. Call Baa2 11,684,484
Series 1991 (American Airlines, Inc. Project), 7.000%, 12/01/11
(Alternative Minimum Tax) (DD)
3,345,000 Columbia - Brazoria Independent School District, Brazoria County, 2/09 at 100 AAA 3,148,281
Texas, Unlimited Tax School Building Bonds, Series 1999,
4.750%, 2/01/25
6,000,000 Dallas - Fort Worth International Airport, Facility Improvement 11/00 at 102 Baa2 6,387,720
Corporation, American Airlines, Inc., Revenue Bonds, Series 1990,
7.500%, 11/01/25 (Alternative Minimum Tax)
2,500,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/01 at 102 AAA 2,683,675
Bonds, Series 1991A, 6.750% 7/01/21 (Alternative Minimum Tax)
5,000,000 City of Houston, Taxes, Water and Sewer System, Junior Lien Revenue 12/07 at 102 AAA 4,846,100
Refunding Bonds, Series 1997D, 5.000%, 12/01/25
5,000,000 Lower Neches Valley Authority, Texas, Industrial Development 3/08 at 101 AA 5,145,300
Corporation, Refunding Revenue Bonds, Series 1998
(Mobil Oil Refining Corporation Project), 5.550%, 3/01/33
1,265,187 The Midland Housing Finance Corporation, Midland, Texas, 11/05 at 103 Aaa 1,379,155
Single Family Mortgage Revenue Refunding Bonds, Series 1992A,
8.450%, 12/01/11
2,215,000 North Texas Higher Education Authority Inc., Student Loan Revenue 4/03 at 102 A 2,333,635
Bonds, Series 1993D, 6.300%, 4/01/09 (Alternative Minimum Tax)
3,410,000 Ratama Development Corporation, Special Facilities Revenue Bonds No Opt. Call AAA 4,815,534
(Retama Park Racetrack Project), Series 1993, 8.750%, 12/15/12
4,694,828 General Services Commission (an Agency of the State of Texas), 9/99 at 101 1/2 A 4,838,208
as Lessee, Participation Interests, 7.500%, 9/01/22
8,500,000 Travis County Health Facilities Development Corporation, Hospital 11/03 at 102 Aa 9,040,600
Revenue Bonds (Daughters of Charity National Health System -
Daughters of Charity Health Services of Austin), Series 1993B,
6.000%, 11/15/22
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 2.0%
3,595,000 City of Bountiful, Davis County, Utah, Hospital Revenue Refunding 12/08 at 101 N/R 3,481,793
Bonds (South Davis Community Hospital Project), Series 1998,
5.750%, 12/15/18
8,000,000 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, 7/06 at 102 A+ 8,795,200
Series 1996A, 6.150%, 7/01/14
6,000,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102 AAA 6,416,580
Refunding Bonds, 1997 Series B, 5.750%, 7/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 1.8%
2,645,000 Suffolk Redevelopment and Housing Authority, Multi-Family Housing 7/02 at 104 Baa2 2,886,885
Revenue Refunding Bonds, Series 1994 (Chase Heritage at
Dulles Project), 7.000%, 7/01/24 (Mandatory put 7/01/04)
14,405,000 Upper Occoquan Sewage Authority, Virginia, Regional Sewerage 7/06 at 100 AAA 13,579,017
System Revenue Bonds, Series of 1995A, 4.750%, 7/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 7.7%
4,705,000 City of Tacoma, Washington, Sewer Revenue Refunding Bonds, No Opt. Call AAA 6,024,235
1994 Series B, 8.000%, 12/01/08
4,500,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/03 at 102 Aa1 4,799,430
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/13
4,845,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/99 at 102 AAA 4,974,943
Refunding Revenue Bonds, Series 1989A, 7.500%, 7/01/15
(Pre-refunded to 7/01/99)
<PAGE>
Principal Optional Call Market
Amount Description Provisions* Ratings** Value
- ------------------------------------------------------------------------------------------------------------------------------------
Washington (continued)
$ 23,000,000 Washington Public Power Supply System, Nuclear Project No. 1, 7/03 at 102 Aa1 $ 23,506,460
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
Washington Public Power Supply System, Nuclear Project No. 2,
Refunding Revenue Bonds, Series 1992A:
5,710,000 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 6,247,539
1,540,000 6.250%, 7/01/12 7/02 at 102 Aa1 1,661,814
6,475,000 Washington Public Power Supply System, Nuclear Project No. 2, No Opt. Call Aa1 7,616,931
Refunding Revenue Bonds, Series 1990A, 7.250%, 7/01/06
10,000,000 Washington Public Power Supply System, Nuclear Project No. 3, No Opt. Call Aa1 11,908,599
Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09
3,700,000 Washington Public Power Supply System, Nuclear Project No. 3, 7/08 at 102 Aa1 3,668,512
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.1%
635,000 Wisconsin Housing and Economic Development Authority, 5/02 at 102 A1 667,854
Home Improvement Revenue Bonds, 1992 Series A,
7.000%, 5/01/10 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 848,606,959 Total Investments - (cost $851,058,494) - 98.6% 902,220,783
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 13,054,101
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $915,274,884
- ------------------------------------------------------------------------------------------------------------------------============
</TABLE>
*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.
(DD) Portion of security purchased on a delayed delivery basis (note 1).
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Statement of Net Assets April 30,
1999 (Unaudited)
Premium Income Premium Income 2 Premium Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in municipal securities, at market value (note 1) $1,428,558,432 $939,711,231 $902,220,783
Cash -- 776,813 473,849
Receivables:
Interest 26,740,630 16,855,100 17,225,110
Investments sold 17,601,266 463,427 140,000
Other assets 648,704 75,431 65,393
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,473,549,032 957,882,002 920,125,135
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 6,853,468 -- --
Payable for investments purchased 6,254,636 -- 1,016,749
Accrued expenses:
Management fees (note 6) 738,328 489,601 470,434
Other 343,763 325,556 427,187
Preferred share dividends payable 139,274 78,520 94,400
Common share dividends payable 4,528,766 3,177,734 2,841,481
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 18,858,235 4,071,411 4,850,251
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets (note 7) $1,454,690,797 $953,810,591 $915,274,884
- ------------------------------------------------------------------------------------------------------------------------------------
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 41,003,554 40,884,796
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value per Common share outstanding (net assets less Preferred shares
at liquidation value,
divided by Common shares outstanding) $ 15.36 $ 15.95 $ 14.84
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations
Six Months Ended April 30, 1999
(Unaudited)
Premium Income Premium Income 2 Premium Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income (note 1) $40,070,049 $27,533,127 $25,723,120
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 6) 4,474,245 2,958,641 2,848,118
Preferred shares - auction fees 588,869 371,917 382,332
Preferred shares - dividend disbursing agent fees 24,795 24,795 34,712
Shareholders' servicing agent fees and expenses 109,054 36,227 53,965
Custodian's fees and expenses 82,299 60,298 59,848
Directors' fees and expenses (note 6) 6,433 4,489 4,311
Professional fees 11,093 10,469 10,422
Shareholders' reports - printing and mailing expenses 135,138 93,092 92,728
Stock exchange listing fees 27,067 17,579 17,609
Investor relations expense 62,322 37,284 38,148
Other expenses 32,902 24,538 20,636
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 5,554,217 3,639,329 3,562,829
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 34,515,832 23,893,798 22,160,291
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain from investment transactions (notes 1 and 4) 1,782,170 1,030,465 1,730,947
Net change in unrealized appreciation or depreciation of investments (16,085,934) (7,522,155) (10,694,249)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (14,303,764) (6,491,690) (8,963,302)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $20,212,068 $17,402,108 $13,196,989
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
(Unaudited)
Premium Income Premium Income 2 Premium Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
4/30/99 10/31/98 4/30/99 10/31/98 4/30/99 10/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income $ 34,515,832 $ 73,113,768 $ 23,893,798 $ 47,792,561 $ 22,160,291 $ 43,819,541
Net realized gain from investment
transactions (notes 1 and 4) 1,782,170 5,695,107 1,030,465 2,300,084 1,730,947 4,094,161
Net change in unrealized
appreciation or depreciation of
investments (16,085,934) 22,102,303 (7,522,155) 16,299,650 (10,694,249) 12,806,701
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations 20,212,068 100,911,178 17,402,108 66,392,295 13,196,989 60,720,403
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
(note 1) From undistributed
net investment income:
Common shareholders (27,172,600) (56,136,763) (19,039,914) (37,981,891) (16,858,713) (33,322,374)
Preferred shareholders (6,534,214) (16,253,788) (4,338,116) (9,776,494) (4,626,155) (10,741,953)
From accumulated net realized
gains from investment
transactions:
Common shareholders (4,324,652) (3,623,618) (1,832,538) (3,704,032) -- --
Preferred shareholders (1,245,222) (801,154) (465,931) (896,110) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (39,276,688) (76,815,323) (25,676,499) (52,358,527) (21,484,868) (44,064,327)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions (note 2)
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- 2,245,087 2,218,879 559,088 583,436
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets (19,064,620) 24,095,855 (6,029,304) 16,252,647 (7,728,791) 17,239,512
Net assets at beginning
of period 1,473,755,417 1,449,659,562 959,839,895 943,587,248 923,003,675 905,764,163
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $1,454,690,797 $1,473,755,417 $953,810,591 $959,839,895 $915,274,884 $923,003,675
====================================================================================================================================
Balance of undistributed net
investment income at end
of period $ 2,288,637 $ 1,479,619 $ 2,626,260 $ 2,110,492 $ 1,904,058 $ 1,228,635
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<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, 1999, Premium Income and Premium Income 4 had outstanding delayed
delivery and when-issued purchase commitments of $6,254,636 and $1,016,749,
respectively. There were no such outstanding purchase commitments in Premium
Income 2.
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.
<PAGE>
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.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of shares outstanding, by Series and in total, for each of the Funds
is as follows:
Premium Premium Premium
Income Income 2 Income 4
- ----------------------------------------------------------------------
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
- ----------------------------------------------------------------------
Effective May 21, 1999, Premium Income issued 2,000 Series M2 $25,000 stated
value Preferred shares.
Effective May 28, 1999, Premium Income 2 issued 1,880 Series F2 $25,000 stated
value Preferred shares.
Effective June 18, 1999, Premium Income 4 issued 520 Series W2 $25,000 stated
value Preferred shares.
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the six months ended April 30, 1999.
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. Actual results may differ
from those estimates.
<TABLE>
<CAPTION>
2. Fund Shares
Transactions in Common shares were as follows:
Premium Income Premium Income 2
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
4/30/99 10/31/98 4/30/99 10/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares issued to shareholders
due to reinvestment of distributions -- -- 135,307 137,128
- ------------------------------------------------------------------------------------------------------------------------------------
Premium Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
4/30/99 10/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 37,115 39,216
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
3. Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 1999, to shareholders of record on
May 15, 1999, as follows:
Premium Premium Premium
Income Income 2 Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dividend per share $.0710 $.0790 $.0695
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
4. Securities Transactions
Purchases and sales (including maturities) of investments in long-term municipal
securities and temporary municipal securities for the six months ended April 30,
1999, were as follows:
Premium Premium Premium
Income Income 2 Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases:
Long-term municipal securities $126,025,759 $22,902,238 $84,587,894
Temporary municipal securities 82,350,000 17,400,000 17,700,000
Sales and Maturities:
Long-term municipal securities 130,824,857 22,429,045 79,222,040
Temporary municipal securities 84,350,000 18,200,000 19,700,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
At April 30, 1999, 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, 1998, the Funds' last fiscal year end, Premium Income 4 had
unused capital loss carryforwards of $13,256,518 available for federal income
tax purposes to be applied against future capital gains, if any. If not applied,
$8,044,841 of the carryforwards will expire in the year 2002 and $5,211,677 will
expire in the year 2003.
<PAGE>
<TABLE>
<CAPTION>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1999, were as follows:
Premium Premium Premium
Income Income 2 Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
appreciation $74,527,824 $80,650,413 $52,069,490
depreciation (1,611,700) (410,027) (907,201)
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation $72,916,124 $80,240,386 $51,162,289
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
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:
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.
<TABLE>
<CAPTION>
7. Composition of Net Assets At April 30, 1999, net assets consisted of:
Premium Premium Premium
Income Income 2 Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share, $ 475,000,000 $300,000,000 $308,400,000
at liquidation value
Common shares, $.01 par value per share 637,854 410,036 408,848
Paid-in surplus 901,946,521 569,875,607 564,925,374
Balance of undistributed net investment income 2,288,637 2,626,260 1,904,058
Accumulated net realized gain (loss) from investment transactions 1,901,661 658,302 (11,525,685)
Net unrealized appreciation of investments 72,916,124 80,240,386 51,162,289
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets $1,454,690,797 $953,810,591 $915,274,884
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
8. Investment Composition
At April 30, 1999, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
Premium Premium Premium
Income Income 2 Income 4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Education and Civic Organizations 5% 3% 4%
Health Care 9 8 13
Housing/Multifamily 1 8 10
Housing/Single Family 11 12 7
Tax Obligation/General 16 17 10
Tax Obligation/Limited 14 7 7
Transportation 7 6 7
U.S. Guaranteed 10 30 15
Utilities 21 7 19
Water and Sewer 5 2 7
Other 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 (55% for Premium Income, 48% for Premium Income 2 and 41%
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.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
Financial Highlights
(Unaudited)
Selected data for a Common share outstanding throughout each
period is as follows:
<TABLE>
<CAPTION>
Investment Operations
<S> <C> <C> <C> <C>
Net
Realized/
Beginning Net Unrealized
Net Asset Investment Investment
Value Income Gain (Loss) Total
Premium Income
Year Ended 10/31:
1999 (a) $15.66 $ .54 $ (.22) $ .32
1998 15.28 1.15 .43 1.58
1997 14.96 1.14 .37 1.51
1996 15.11 1.16 (.09) 1.07
1995 14.14 1.24 1.01 2.25
1994 16.30 1.26 (2.02)*** (.76)
Premium Income 2
Year Ended 10/31:
1999 (a) 16.15 .58 (.15) .43
1998 15.80 1.17 .46 1.63
1997 15.16 1.18 .65 1.83
1996 14.89 1.19 .27 1.46
1995 13.03 1.20 1.88 3.08
1994 15.60 1.18 (2.53) (1.35)
Premium Income 4
Year Ended 10/31:
1999 (a) 15.05 .54 (.23) .31
1998 14.64 1.07 .42 1.49
1997 14.07 1.08 .58 1.66
1996 13.87 1.10 .19 1.29
1995 12.09 1.10 1.81 2.91
1994 14.87 1.07 (2.76) (1.69)
</TABLE>
<TABLE>
<CAPTION>
Less Distributions
<S> <C> <C> <C> <C> <C>
Net Net
Investment Investment Capital Capital
Income Income Gains Gains
To Common To Preferred To Common To Preferred
Shareholders Shareholders+ Shareholders Shareholders+ Total
Premium Income
Year Ended 10/31:
1999 (a) $ (.43) $(.10) $(.07) $(.02) $ (.62)
1998 (.88) (.25) (.06) (.01) (1.20)
1997 (.94) (.20) (.03) -- (1.17)
1996 (.97) (.20) (.05) -- (1.22)
1995 (1.06) (.22) -- -- (1.28)
1994 (1.17) (.16) (.07) -- (1.40)
Premium Income 2
Year Ended 10/31:
1999 (a) (.47) (.11) (.04) (.01) (.63)
1998 (.93) (.24) (.09) (.02) (1.28)
1997 (.93) (.26) -- -- (1.19)
1996 (.93) (.26) -- -- (1.19)
1995 (.92) (.30) -- -- (1.22)
1994 (.94) (.24) (.03) (.01) (1.22)
Premium Income 4
Year Ended 10/31:
1999 (a) (.41) (.11) -- -- (.52)
1998 (.82) (.26) -- -- (1.08)
1997 (.82) (.27) -- -- (1.09)
1996 (.82) (.27) -- -- (1.09)
1995 (.84) (.29) -- -- (1.13)
1994 (.84) (.20) (.03) (.01) (1.08)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Returns
<S> <C> <C> <C> <C> <C> <C>
Organization and
Offering Costs and
Preferred Share Ending Ending
Underwriting Net Asset Ending Based on Based on Net Net Assets
Discounts Value Market Value Market Value** Asset Value** (000)
Premium Income
Year Ended 10/31:
1999 (a) $-- $15.36 $15.1875 3.29% 1.25% $1,454,691
1998 -- 15.66 15.1875 10.60 8.86 1,473,755
1997 (.02) 15.28 14.6250 7.81 8.89 1,449,660
1996 -- 14.96 14.5000 8.24 5.92 1,304,192
1995 -- 15.11 14.3750 16.88 14.84 1,313,673
1994 -- 14.14 13.2500 (19.13) (5.88) 1,252,208
Premium Income 2
Year Ended 10/31:
1999 (a) -- 15.95 16.0000 (2.21) 1.95 953,811
1998 -- 16.15 16.8750 15.98 8.93 959,840
1997 -- 15.80 15.5000 16.76 10.72 943,587
1996 -- 15.16 14.1250 14.94 8.28 917,603
1995 -- 14.89 13.1250 24.22 22.06 906,547
1994 -- 13.03 11.3750 (17.76) (10.64) 830,600
Premium Income 4
Year Ended 10/31:
1999 (a) -- 14.84 14.4375 .21 1.36 915,275
1998 -- 15.05 14.8125 14.54 8.58 923,004
1997 -- 14.64 13.6875 14.70 10.20 905,764
1996 -- 14.07 12.6875 11.57 7.53 882,563
1995 -- 13.87 12.1250 21.32 22.41 874,337
1994 (.01) 12.09 10.7500 (19.12) (13.29) 801,617
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses to Income to Expenses to Income to
Average Average Average Total Average Total
Net Assets Net Assets Net Assets Net Assets Portfolio
Applicable to Applicable to Including Including Turnover
Common Shares++ Common Shares++ Preferred++ Preferred++ Rate
<S> <C> <C> <C> <C> <C>
Premium Income
Year Ended 10/31:
1999 (a) 1.13%* 7.03%* .76%* 4.75%* 9%
1998 1.14 7.41 .77 5.00 19
1997 1.05 7.58 .76 5.51 10
1996 1.03 7.76 .75 5.67 16
1995 1.05 8.42 .76 6.13 12
1994 1.06 8.38 .77 6.08 15
Premium Income 2
Year Ended 10/31:
1999 (a) 1.12* 7.34* .77* 5.04* 2
1998 1.13 7.35 .77 5.03 7
1997 1.14 7.73 .77 5.23 19
1996 1.15 7.97 .77 5.34 24
1995 1.17 8.54 .77 5.60 27
1994 1.15 8.17 .76 5.41 26
Premium Income 4
Year Ended 10/31:
1999 (a) 1.18* 7.31* .78* 4.86* 9
1998 1.19 7.23 .79 4.79 21
1997 1.21 7.62 .79 4.98 26
1996 1.22 7.89 .79 5.11 20
1995 1.27 8.44 .80 5.35 32
1994 1.38 8.08 .88 5.15 47
</TABLE>
* 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; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended April 30, 1999.
<PAGE>
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Nuveen offers a variety of funds designed to help you reach your financial
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<PAGE>
Fund Information
Board of Directors
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
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Custodian, Transfer Agent
and Shareholder Services
The Chase Manhattan Bank
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New York, NY 10004-2413
(800) 257-8787
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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 thoroughly review all aspects of their operations. We have
undertaken just such an approach at Nuveen in preparation for the millennium.
Over the last 10 years, we have updated or replaced our trading, fund
management, and pricing systems at Nuveen - systems that directly affect our
investors and their financial advisers - to address Year 2000 concerns.
We continue to work closely with our transfer agent, custodian, firms through
whom we buy and sell portfolio securities, and other service partners to monitor
the Year 2000 readiness of their systems, while addressing other remaining
systems issues.
In addition, the Funds hold securities of issuers whose business operations
leave them susceptible to Year 2000 concerns. We seek to evaluate an issuer's
Year 2000 readiness as part of our initial and ongoing research of these
issuers. This is only one of the many factors considered in determining whether
to buy, sell, or continue holding a particular security.
We anticipate that all significant components of our Year 2000 review, repair,
and testing program will be complete by mid-1999. This includes appropriate
industry-wide testing of critical systems and receipt of satisfactory assurances
from critical service providers, vendors, and issuers regarding their Year 2000
readiness. We are also making Year 2000 contingency plans to guide recovery
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take all reasonable steps to prevent disruption of the services provided by your
Fund.
Each fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended April 30, 1999. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
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Photo of: John Nuveen, Sr.
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