LOGO: NUVEEN INVESTMENTS.
ANNUAL REPORT October 31, 2000
Municipal Closed-End Exchange-Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
PREMIUM INCOME FUND
NPI
NPM
NPT
INVEST WELL.
LOOK AHEAD.
LEAVE YOUR MARK.(SM)
photo: man and girl
photo: men fishing, girl, dog.
<PAGE>
Credit Quality
HIGHLIGHTS As of October 31, 2000
PIE CHART:
Nuveen Premium Income Municipal Fund, Inc. (NPI)
AAA/U.S. Guaranteed 63%
AA 22%
A 9%
BBB 4%
NR 2%
PIE CHART:
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
AAA/U.S. Guaranteed 64%
AA 12%
A 20%
BBB 1%
NR 3%
PIE CHART:
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
AAA/U.S. Guaranteed 48%
AA 19%
A 16%
BBB 3%
NR 14%
CONTENTS
1 Dear Shareholder
3 Portfolio Managers' Comments
6 NPI Performance Overview
7 NPM Performance Overview
8 NPT Performance Overview
9 Shareholder Meeting Report
12 Report of Independent Auditors
13 Portfolio of Investments
38 Statement of Net Assets
39 Statement of Operations
40 Statement of Changes in Net Assets
41 Notes to Financial Statements
46 Financial Highlights
48 Build Your Wealth Automatically
49 Fund Information
--------------------------------------------------------------------------------
COMPOUND YOUR WEALTH - AUTOMATICALLY
All Nuveen Municipal Closed-End ETFs let you reinvest dividends and capital
gains directly into additional shares of your Fund. This is a great way to see
your investment grow through the power of compounding.
For more information about Dividend Reinvestment, see the last page of this
report or speak with your financial advisor.
--------------------------------------------------------------------------------
<PAGE>
Photo of: Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "A WELL-BALANCED PORTFOLIO CAN HELP YOU REDUCE YOUR INVESTMENT
RISKS."
Dear
SHAREHOLDER
One of the primary goals of your Nuveen Fund is to provide you with attractive,
dependable tax-free income from a quality port-folio. I am pleased to report
that over the past fiscal year your Fund has continued to meet these objectives.
I urge you to read the Portfolio Managers' Comments and Performance Overview
pages included in this report, which provide more details about Fund results,
how they were achieved, and how the Funds are trying to position themselves for
the future.
The uncertain markets of this past reporting period also remind us of another
important reason for investing in Nuveen Funds. In times such as these, your
Nuveen Fund can help bring a measure of diversification to your overall
portfolio and serve as a useful counterbalance to other holdings. A
well-balanced portfolio can help you reduce your investment risks and provide
one of the keys to strong long-term performance.
Invest Well. Look Ahead. Leave Your Mark.
At Nuveen, we believe that investors should focus not only on investments that
can help them accumulate wealth, but also on the plans and services that can
help preserve that wealth and pass it along to future generations. This
long-term perspective is an integral part of our portfolio management
strategies, our insistence on quality, and our desire to provide investments
that can withstand the test of time.
1
<PAGE>
In establishing a program tailored to your needs, the sound ongoing advice and
disciplined focus provided by a trusted financial advisor can be an invaluable
resource, enabling you to make wise investment decisions and build a program
that can result in a lasting legacy.
For more than a century, Nuveen has offered quality investments to those who
recognize and embrace the need for building, preserving and managing wealth. All
of us at Nuveen are dedicated to working with you and your financial advisor to
provide the services, products, perspectives, and solutions that can help you
meet your personal and family financial goals, now and for years to come. We
thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2000
Sidebar text: "IN ESTABLISHING A PROGRAM TAILORED TO YOUR NEEDS, THE SOUND
ONGOING ADVICE AND DISCIPLINED FOCUS PROVIDED BY A TRUSTED FINANCIAL ADVISOR CAN
BE AN INVALUABLE RESOURCE."
2
<PAGE>
Nuveen National Premium Income Closed-End Exchange-Traded Funds (NPI, NPM, NPT)
Portfolio Managers'
COMMENTS
Portfolio managers Tom Futrell and Steve Peterson look at the economic
environment, key investment strategies, and the performance of the Nuveen
Premium Income Municipal Funds. Tom has served as portfolio manager for NPI
since 1988. Steve, who has managed NPM since 1994, assumed portfolio management
responsibility for NPT in August 2000.
WHAT MAJOR FACTORS AFFECTED THE U.S. ECONOMY AND THE MUNICIPAL MARKET OVER THE
PAST 12 MONTHS?
The major news affecting the fixed-income markets over the past fiscal year has
been the Federal Reserve's tightening policy. In an effort to keep inflation in
check, the Fed continued to raise interest rates through May 2000, eventually
bringing the federal funds target rate to 6.50%, the highest level in almost a
decade. The Fed's policy has been to try to slow economic growth without causing
a recession.
Some recent evidence has suggested that the Fed effort may be having an impact.
While the U.S. economic expansion has reached a record tenth year, several
indicators point to slowing growth. As a result, the Fed now seems to have put
additional rate increases on hold, with some anticipating that the current
tightening cycle may have reached its end.
Although the Fed rate hikes and hints of an economic slowdown have affected the
municipal bond market, several supply and demand factors helped to prevent a
major increase in rates or drop in value. New issue supply of municipal bonds
during the first 10 months of 2000 totaled $154 billion nationwide, down 17.5%
from 1999 levels. At this rate, the supply of municipal bonds could finish 2000
at its lowest level since 1995. The generally favorable economic conditions in
many cities and states have enabled many issuers to use pay-as-you-go funding
for necessary projects, holding the supply of new bonds in check. At the same
time, demand from individual investors looking for diversification and income
has remained strong. As a result, current municipal bond prices and yields are
comparable to those of a year ago.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE PAST YEAR?
For the fiscal year ended October 31, 2000, the Nuveen Premium Income Municipal
Funds produced total returns on net asset value (NAV) as shown in the
accompanying table. The annual returns for the Lehman Brothers Municipal Bond
Index1 and the Funds' Lipper Peer Group2 are also presented.
MARKET TOTAL RETURN LEHMAN LIPPER
YIELD ON NAV TOTAL RETURN(1) AVERAGE(2)
--------------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
10/31/00 EQUIVALENT(3) 10/31/00 10/31/00 10/31/00
--------------------------------------------------------------------------------
NPI 6.33% 9.17% 12.03% 8.51% 9.47%
--------------------------------------------------------------------------------
NPM 6.70% 9.71% 7.71% 8.51% 9.47%
--------------------------------------------------------------------------------
NPT 6.48% 9.39% 6.58% 8.51% 9.47%
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Early in the year, as the Fed's series of interest rate hikes pushed yields
higher, municipal bond prices underwent a corresponding drop. Over the summer,
however, the tight supply of new municipal issues and generally favorable
technicals helped to prompt a shift in market outlook, rallying the municipal
market and boosting the prices of many bonds. In this recent environment, we
would expect Funds with longer durations4 to perform well. As of October 31,
2000, NPI had a duration of 13.13, while NPM's duration was 8.37. Although NPT's
duration was 11.00, some credit issues within the portfolio kept the Fund from
participating fully in the summer and fall market recovery.
The total returns on NAV for all three Nuveen Funds have demonstrated dramatic
improvement over the results presented in their last semiannual report. As of
October 31, 2000, long-term municipal yields were more than 99% of 30-year
Treasury yields, compared with the historical average of 86% for the period
1986-1999.
1 The Funds' performances are compared with that of the Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 The total returns of the Funds are compared with the average annualized
return of the 53 funds in the Lipper General Leveraged Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 31%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a Fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the Fund. Unless otherwise noted, references to duration
in this commentary are intended to indicate Fund duration.
3
<PAGE>
WERE THE FUNDS' DIVIDENDS AFFECTED BY THE MARKET ENVIRONMENT?
All three of the Nuveen Premium Income Municipal Funds use leverage as a way to
potentially enhance the dividends paid to common shareholders. The extent of
this benefit, however, is tied in part to the short-term rates that the Funds
pay their MuniPreferred(R) shareholders. When short-term rates rise, the Funds
must pay out more income to preferred shareholders, decreasing the amount of
income available for common shareholders. As the Federal Reserve raised
short-term rates six times between June 1999 and May 2000, these increases had a
corresponding impact on short-term municipal rates, leading to decreases in the
common share dividends of each of these Funds over the past year. However,
despite these dividend adjustments, all of the Funds continued to provide
competitive market yields, as shown in the accompanying table.
Recently, investor demand for municipal bonds with shorter maturities has caused
the slope of the municipal yield curve to become very steep. The increased
demand for short-maturity bonds could have beneficial effects on the dividend
stability of these leveraged Funds going forward by holding short-term rates
down and reducing the amount the Funds pay their MuniPreferred(R) shareholders.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
During late 1999 and the first half of 2000, uncertainties about inflation and
interest rates, coupled with investors' focus on equity market performance,
tended to dampen interest in most fixed-income products. The lack of demand put
pressure on the prices of many municipal bond investments, including these
Nuveen Funds.
As a result, all of these Funds saw their discounts (share price below NAV)
widen over the past 12 months. With the market prices of the Nuveen Premium
Income Funds lower than the actual value of the bonds in their portfolios,
shareholders may want to consider taking advantage of this opportunity to add to
their holdings of their Nuveen Funds.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE FISCAL YEAR ENDED
OCTOBER 31, 2000?
Despite a slow start, the past fiscal year turned out to be generally positive
for the fixed-income markets, including municipal bonds. During this period, we
focused on strengthening the Funds' long-term dividend-paying capabilities,
improving call protection, and finding value in specific areas of the market,
including healthcare, utilities, and tobacco bonds.
For example, while the healthcare industry continues to face challenging times,
we believed hospitals were becoming more efficient in coping with an environment
of higher costs and lower revenues. Over the past year, we saw credit spreads
(or the difference between yields offered by AAA bonds and those offered by
bonds rated BBB or lower) on hospital bonds widen from 40-50 basis points to
150-200 basis points. We took advantage of this situation to make selective
purchases of healthcare bonds that we believed could add value for our
shareholders. For instance, in NPI, we purchased bonds issued by the Minnesota
Agricultural and Economic Development Board for Fairview Hospital and Healthcare
Services. Since our purchase last spring, this credit has performed well for the
Fund.
The utilities sector continued to represent the largest weighting in NPI and NPT
and ranked among the top five in NPM. Over the past 12 months, both NPM and NPT
added to holdings in this sector by purchasing high-yield bond issued by
co-generation projects, in which an independent power producer burns natural gas
to produce electricity. With the price of electricity rising due to the current
supply/demand imbalance, we
4
<PAGE>
believe that power producers have become increasingly economically viable and
creditworthy, and these bonds having been performing well for the Funds.
Tobacco bonds, which are secured by payments under the $250 billion master
settlement agreement reached between four major tobacco companies and 46 states
in 1998, were another area of the market that we believed offered value. During
the past year, NPI purchased bonds issued by the Northern Tobacco Securitization
Corporation (Alaska) that provided both attractive yields and good performance.
As of October 31, 2000, NPT held several bonds that were facing credit issues.
Most of these involved multifamily housing projects, where workout strategies
are currently underway. Another involved bonds issued by the Erie County (New
York) Industrial Development Agency for the CanFibre of Lackawanna project.
These bonds, which performed well earlier this year, were adversely affected by
the bankruptcy filing of the project contractor. We believe this situation is
now improving, with the plant near completion and operation, and the market
could recognize a turnaround in this credit within the next year. We continue to
monitor all of these holdings very closely in an effort to preserve shareholder
value.
All three Funds continued to offer excellent credit quality, with between 67%
and 85% of their assets invested in bonds rated AAA/U.S. guaranteed and AA as of
October 31, 2000. The Funds also had allocations of BBB/non-rated bonds that
ranged from 4% to 17%, which generally provided higher yields. The high overall
credit quality of these Funds, especially NPI, will continue to allow us to look
for opportunities to enhance yield among lower investment-grade credits.
WHAT IS YOUR OUTLOOK FOR THE NUVEEN PREMIUM INCOME FUNDS?
In general, our outlook for the fixed-income markets over the next 12 months is
positive. Our current projections call for continued strong demand for municipal
bonds, while new municipal issuance nationwide in 2001 is expected to stay under
$200 billion. These supply-and-demand dynamics should continue to provide
support for the municipal market and municipal bond prices.
Looking specifically at the Nuveen Premium Income Municipal Funds, all three
Funds offer excellent levels of call protection over the next year, with less
than 9% of their portfolios subject to calls in 2001. NPI and NPT should
continue to be well protected through 2002. In July 2002, NPM will reach the
10-year anniversary of its inception, a period when the potential for bond calls
normally increase. Calls could affect as much as 27% of NPM's portfolio that
year, depending upon market conditions at the time.
While we cannot control the direction of interest rates, we will continue to
work to reduce the Funds' call exposure, especially in NPM, and actively manage
all the Funds in an effort to mitigate the longer-term effects of the bond call
process. In addition, we plan to focus on strengthening the Funds'
dividend-payment capabilities by continuing to take advantage of the wider
credit spreads as long as they remain available in the market. We believe these
Nuveen Funds will continue to serve as a dependable source of tax-free income
and portfolio diversification, two essential elements of a comprehensive
investment strategy.
5
<PAGE>
Nuveen Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of October 31, 2000
NPI
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 7/88
--------------------------------------------------
Share Price $11 15/16
--------------------------------------------------
Net Asset Value $14.23
--------------------------------------------------
Market Yield 6.33%
--------------------------------------------------
Taxable-Equivalent Yield(1) 9.17%
--------------------------------------------------
Fund Net Assets ($000) $1,432,640
--------------------------------------------------
Average Effective Maturity (Years) 21.14
--------------------------------------------------
Leverage-Adjusted Duration 13.13
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 4.10% 12.03%
--------------------------------------------------
5-Year 2.92% 5.16%
--------------------------------------------------
10-Year 5.30% 7.03%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Utilities 17%
--------------------------------------------------
Tax Obligation/General 13%
--------------------------------------------------
Housing Single Family 12%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
BAR CHART:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
11/99 0.071
12/99 0.069
1/00 0.069
2/00 0.069
3/00 0.067
4/00 0.067
5/00 0.067
6/00 0.063
7/00 0.063
8/00 0.063
9/00 0.063
10/00 0.063
LINE CHART:
SHARE PRICE PERFORMANCE
11/5/99 12.75
12.5
12
12.13
11.63
11.63
11.5
11.94
12.19
11.69
11.56
12
12.19
12.25
12.25
12.13
11.81
11.31
11.31
11.5
11.81
11.94
11.5
11.56
11.5
11.31
11.06
11
11.19
11.75
11.56
11.63
11.69
11.94
12
12
11.94
12.06
12.19
12.13
12.25
12.31
12.25
12.25
12.25
12.06
12.13
12
11.88
12
10/31/00 11.94
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
6
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc.
Performance
OVERVIEW As of October 31, 2000
NPM
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 7/92
--------------------------------------------------
Share Price $13 1/4
--------------------------------------------------
Net Asset Value $14.75
--------------------------------------------------
Market Yield 6.70%
--------------------------------------------------
Taxable-Equivalent Yield1 9.71%
--------------------------------------------------
Fund Net Assets ($000) $952,973
--------------------------------------------------
Average Effective Maturity (Years) 14.61
--------------------------------------------------
Leverage-Adjusted Duration 8.37
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -2.03% 7.71%
--------------------------------------------------
5-Year 6.86% 6.27%
--------------------------------------------------
Since Inception 5.09% 7.03%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
U.S. Guaranteed 32%
--------------------------------------------------
Tax Obligation/General 19%
--------------------------------------------------
Housing Single Family 11%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Housing Multifamily 7%
--------------------------------------------------
BAR CHART:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE(2)
11/99 0.079
12/99 0.079
1/00 0.079
2/00 0.079
3/00 0.079
4/00 0.079
5/00 0.079
6/00 0.074
7/00 0.074
8/00 0.074
9/00 0.074
10/00 0.074
LINE CHART:
SHARE PRICE PERFORMANCE
11/5/99 14.94
14.44
13.94
13.44
13.56
13.81
13.81
13.75
13.75
13.38
13.19
13.63
14.13
13.75
13.19
13.31
13
12.56
12.69
12.75
13.44
13.63
13.19
13.31
13.38
12.94
12.63
12.69
12.75
13.25
12.63
12.94
12.81
13.13
13.31
13.38
13.31
13.25
13.31
13.38
13.5
13.63
13.63
14
13.63
13.63
13.63
13.31
13.19
13
10/31/00 13.13
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 1999 of $0.0182 per share.
7
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc.
Performance
OVERVIEW As of October 31, 2000
NPT
PORTFOLIO STATISTICS
--------------------------------------------------
Inception Date 2/93
--------------------------------------------------
Share Price $12 5/16
--------------------------------------------------
Net Asset Value $13.54
--------------------------------------------------
Market Yield 6.48%
--------------------------------------------------
Taxable-Equivalent Yield1 9.39%
--------------------------------------------------
Fund Net Assets ($000) $923,787
--------------------------------------------------
Average Effective Maturity (Years) 17.66
--------------------------------------------------
Leverage-Adjusted Duration 11.00
--------------------------------------------------
ANNUALIZED TOTAL RETURN
--------------------------------------------------
On Share Price On NAV
--------------------------------------------------
1-Year 3.28% 6.58%
--------------------------------------------------
5-Year 6.68% 5.43%
--------------------------------------------------
Since Inception 3.72% 5.46%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
--------------------------------------------------
Utilities 16%
--------------------------------------------------
Housing Multifamily 16%
--------------------------------------------------
U.S. Guaranteed 13%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Healthcare 9%
--------------------------------------------------
BAR CHART:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
11/99 0.0695
12/99 0.0695
1/00 0.0695
2/00 0.0695
3/00 0.0695
4/00 0.0695
5/00 0.0695
6/00 0.0665
7/00 0.0665
8/00 0.0665
9/00 0.0665
10/00 0.0665
LINE CHART:
SHARE PRICE PERFORMANCE
11/5/99 13.06
12.75
12.75
12.06
12.16
11.94
11.63
12.13
12.06
12
11.88
12.31
12.56
12.13
12
11.88
11.75
11.5
11.5
11.75
11.88
12
11.75
11.81
11.75
11.75
11.38
11.25
11.38
11.81
11.75
11.94
12.06
12.19
12.25
12.13
12
12.06
12.13
12.44
12.5
12.5
12.56
12.5
12.38
12.31
12.31
12.19
12.19
11.88
12
10/31/00 12.31
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
8
<PAGE>
<TABLE>
Shareholder
MEETING REPORT
The annual shareholder meeting was held on July 26, 2000, at the Northern Trust
Bank, Chicago, Illinois.
<CAPTION>
NPI
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares
Shares Series-M Series-M2 Series-T Series-W Series-TH Series-F
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 54,338,527 3,148 1,736 3,080 3,083 3,253 2,603
Withhold 1,089,557 54 -- 46 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 55,428,084 3,202 1,736 3,126 3,083 3,253 2,603
====================================================================================================================================
Lawrence H. Brown
For 54,318,578 3,148 1,736 3,080 3,083 3,253 2,603
Withhold 1,109,506 54 -- 46 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 55,428,084 3,202 1,736 3,126 3,083 3,253 2,603
====================================================================================================================================
Anne E. Impellizzeri
For 54,293,325 3,148 1,736 3,060 3,083 3,253 2,603
Withhold 1,134,759 54 -- 66 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 55,428,084 3,202 1,736 3,126 3,083 3,253 2,603
====================================================================================================================================
Peter R. Sawers
For 54,308,173 3,148 1,736 3,080 3,083 3,253 2,603
Withhold 1,119,911 54 -- 46 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 55,428,084 3,202 1,736 3,126 3,083 3,253 2,603
====================================================================================================================================
Judith M. Stockdale
For 54,296,123 3,148 1,736 3,080 3,083 3,253 2,603
Withhold 1,131,961 54 -- 46 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 55,428,084 3,202 1,736 3,126 3,083 3,253 2,603
====================================================================================================================================
William J. Schneider
For -- 3,148 1,736 3,080 3,083 3,253 2,603
Withhold -- 54 -- 46 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,202 1,736 3,126 3,083 3,253 2,603
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,148 1,736 3,080 3,083 3,253 2,603
Withhold -- 54 -- 46 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,202 1,736 3,126 3,083 3,253 2,603
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 54,438,361 3,071 1,734 3,069 3,083 3,250 2,599
Against 314,788 -- -- -- -- -- --
Abstain 674,935 131 2 57 -- 3 4
------------------------------------------------------------------------------------------------------------------------------------
Total 55,428,084 3,202 1,736 3,126 3,083 3,253 2,603
====================================================================================================================================
</TABLE>
9
<PAGE>
<TABLE>
Shareholder MEETING REPORT (continued)
The annual shareholder meeting was held on July 26, 2000, at the
Northern Trust Bank, Chicago, Illinois.
NPM
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-W Series-TH Series-F Series-F2
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 37,616,768 1,810 2,568 1,605 2,224 1,842 1,818
Withhold 535,273 5 -- -- 1 -- 52
------------------------------------------------------------------------------------------------------------------------------------
Total 38,152,041 1,815 2,568 1,605 2,225 1,842 1,870
====================================================================================================================================
Lawrence H. Brown
For 37,618,956 1,810 2,568 1,605 2,224 1,842 1,818
Withhold 533,085 5 -- -- 1 -- 52
------------------------------------------------------------------------------------------------------------------------------------
Total 38,152,041 1,815 2,568 1,605 2,225 1,842 1,870
====================================================================================================================================
Anne E. Impellizzeri
For 37,603,298 1,810 2,568 1,605 2,224 1,842 1,818
Withhold 548,743 5 -- -- 1 -- 52
------------------------------------------------------------------------------------------------------------------------------------
Total 38,152,041 1,815 2,568 1,605 2,225 1,842 1,870
====================================================================================================================================
Peter R. Sawers
For 37,617,790 1,810 2,568 1,605 2,224 1,842 1,818
Withhold 534,251 5 -- -- 1 -- 52
------------------------------------------------------------------------------------------------------------------------------------
Total 38,152,041 1,815 2,568 1,605 2,225 1,842 1,870
====================================================================================================================================
Judith M. Stockdale
For 37,598,638 1,810 2,568 1,605 2,224 1,842 1,818
Withhold 553,403 5 -- -- 1 -- 52
------------------------------------------------------------------------------------------------------------------------------------
Total 38,152,041 1,815 2,568 1,605 2,225 1,842 1,870
====================================================================================================================================
William J. Schneider
For -- 1,810 2,568 1,605 2,224 1,842 1,818
Withhold -- 5 -- -- 1 -- 52
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,815 2,568 1,605 2,225 1,842 1,870
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,810 2,568 1,605 2,224 1,842 1,818
Withhold -- 5 -- -- 1 -- 52
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,815 2,568 1,605 2,225 1,842 1,870
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 37,716,319 1,810 2,568 1,605 2,225 1,826 1,818
Against 170,819 -- -- -- -- -- 52
Abstain 264,903 5 -- -- -- 16 --
------------------------------------------------------------------------------------------------------------------------------------
Total 38,152,041 1,815 2,568 1,605 2,225 1,842 1,870
====================================================================================================================================
10
<PAGE>
NPT
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE DIRECTORS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Common Shares Shares Shares Shares Shares Shares Shares Shares
Shares Series-M Series-T Series-T2 Series-W Series-W2 Series-TH Series-F Series-F2
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Robert P. Bremner
For 38,855,214 1,735 1,544 966 1,445 506 2,279 1,597 1,203
Withhold 518,262 10 -- -- 2 12 2 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 39,373,476 1,745 1,544 966 1,447 518 2,281 1,597 1,205
====================================================================================================================================
Lawrence H. Brown
For 38,860,358 1,735 1,544 966 1,445 506 2,279 1,597 1,203
Withhold 513,118 10 -- -- 2 12 2 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 39,373,476 1,745 1,544 966 1,447 518 2,281 1,597 1,205
====================================================================================================================================
Anne E. Impellizzeri
For 38,849,853 1,735 1,536 966 1,445 506 2,279 1,597 1,203
Withhold 523,623 10 8 -- 2 12 2 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 39,373,476 1,745 1,544 966 1,447 518 2,281 1,597 1,205
====================================================================================================================================
Peter R. Sawers
For 38,860,237 1,735 1,544 966 1,445 506 2,279 1,597 1,203
Withhold 513,239 10 -- -- 2 12 2 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 39,373,476 1,745 1,544 966 1,447 518 2,281 1,597 1,205
====================================================================================================================================
Judith M. Stockdale
For 38,857,568 1,735 1,536 966 1,445 506 2,275 1,597 1,203
Withhold 515,908 10 8 -- 2 12 6 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 39,373,476 1,745 1,544 966 1,447 518 2,281 1,597 1,205
====================================================================================================================================
William J. Schneider
For -- 1,735 1,544 966 1,445 506 2,279 1,597 1,203
Withhold -- 10 -- -- 2 12 2 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,745 1,544 966 1,447 518 2,281 1,597 1,205
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,735 1,544 966 1,445 506 2,279 1,597 1,203
Withhold -- 10 -- -- 2 12 2 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,745 1,544 966 1,447 518 2,281 1,597 1,205
====================================================================================================================================
RATIFICATION OF AUDITORS WAS REACHED AS FOLLOWS:
For 38,931,796 1,734 1,540 948 1,433 506 2,277 1,592 1,202
Against 126,294 9 -- -- -- -- -- 2 --
Abstain 315,386 2 4 18 14 12 4 3 3
------------------------------------------------------------------------------------------------------------------------------------
Total 39,373,476 1,745 1,544 966 1,447 518 2,281 1,597 1,205
====================================================================================================================================
11
<PAGE>
Report of
INDEPENDENT AUDITORS
THE BOARDS OF DIRECTORS AND SHAREHOLDERS
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC.
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC.
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Premium Income Municipal Fund, Inc., Nuveen
Premium Income Municipal Fund 2, Inc. and Nuveen Premium Income Municipal Fund
4, Inc. as of October 31, 2000, and the related statements of operations,
changes in net assets and the financial highlights for the years indicated
therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of October 31, 2000, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Premium Income Municipal Fund, Inc., Nuveen Premium Income Municipal Fund
2, Inc. and Nuveen Premium Income Municipal Fund 4, Inc. at October 31, 2000,
and the results of their operations, changes in their net assets and financial
highlights for the years indicated therein in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst &Young LLP
Chicago, Illinois
December 18, 2000
12
<PAGE>
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 0.6%
$ 9,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102 Aa1 $ 9,230,005
Bonds, Series 2000, 6.125%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
Alaska - 0.7%
10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100 Aa3 9,927,000
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 0.7%
9,930 The Industrial Development Authority of the County of Pima 1/02 at 103 AAA 10,450,431
(Arizona), Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A (Irvington Project),
7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.7%
3,500 Arkansas Development Finance Authority, Drivers License 6/07 at 100 AAA 3,493,910
Revenue Bonds (Arkansas State Police - Headquarters and Wireless
Data Equipment), Series 1997, 5.400%, 6/01/18
580 City of Paragould, Arkansas, Water, Sewer, and Electric 12/10 at 100 AAA 581,160
Revenue Bonds, Series 2000, 5.650%, 12/01/25
(WI, settling 12/05/00)
1,000 Sebastian County (Arkansas), Community Junior College 4/09 at 100 AAA 1,034,640
District, General Obligation Improvement Bonds, Series 1999,
5.950%, 4/01/29
5,245 Board of Trustees of the University of Arkansas, Athletic 9/09 at 100 Aaa 4,905,596
Facilities Revenue Bonds (Razorback Stadium Project),
Series 1999, 5.050%, 9/15/20
------------------------------------------------------------------------------------------------------------------------------------
California - 11.2%
13,000 State of California, Various Purpose General Obligation Refunding 10/03 at 102 AA 12,775,880
Bonds, 5.150%, 10/01/19
10,250 State of California, General Obligation Veteran's Welfare Bonds, 12/08 at 101 AAA 10,453,565
Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax)
15,975 East Bay State Building Authority, State of California Department 3/01 at 102 Aa3*** 16,436,039
of Transportation, Certificates of Participation, Series 1991A,
6.500%, 3/01/16 (Pre-refunded to 3/01/01)
23,725 State Public Works Board of the State of California, 6/03 at 102 Aa2 23,823,696
Lease Revenue Refunding Bonds (The Regents of the University
of California), 1993 Series A (Various University of California
Projects), 5.500%, 6/01/21
11,395 State Public Works Board of the State of California, No Opt. Call AA- 12,058,303
Lease Revenue Bonds (Department of Corrections),
1993 Series E (California State Prison - Madera
County (II)), 5.500%, 6/01/15
15,420 Los Angeles Convention and Exhibition Center Authority, 8/03 at 102 AAA 15,512,983
Lease Revenue Bonds, 1993 Refunding Series A,
5.375%, 8/15/18
5,000 Department of Water and Power of the City of Los Angeles, 11/03 at 102 AAA 4,552,500
California, Electric Plant Refunding Revenue Bonds,
Second Issue of 1993, 4.750%, 11/15/19
1,285 City of Martinez (California), Home Mortgage Revenue Bonds, No Opt. Call AAA 1,857,686
1983 Issue A, 10.750%, 2/01/16
4,125 Redevelopment Agency of the City of Moorpark, Moorpark 10/03 at 102 N/R*** 4,422,619
Redevelopment Project, 1993 Tax Allocation Bonds,
6.125%, 10/01/18 (Pre-refunded to 10/01/03)
20,000 City of Pomona, California, Single Family Mortgage No Opt. Call AAA 25,207,600
Revenue Refunding Bonds (GNMA and FNMA Mortgage-Backed
Securities), Series 1990A, 7.600%, 5/01/23
3,000 Sacramento Municipal Utility District, California, Electric 11/03 at 102 AAA 2,965,140
Revenue Refunding Bonds, 1993 Series D, 5.250%, 11/15/20
San Bernardino Joint Powers Financing Authority, Tax Allocation
Refunding Bonds, Series 1995A:
6,675 5.750%, 10/01/15 10/05 at 102 AAA 6,990,194
10,000 5.750%, 10/01/25 10/05 at 102 AAA 10,225,300
15,540 The Regents of the University of California, Refunding Revenue 9/03 at 102 AAA 14,023,762
Bonds (Multiple Purpose Projects), Series B, 4.750%, 9/01/21
13
<PAGE>
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Colorado - 4.3%
$ 3,000 Colorado Housing and Finance Authority, Single Family 4/10 at 105 AA $ 3,435,630
Program, 2000 Series B-2 Senior Bonds, 7.250%, 10/01/31
(Alternative Minimum Tax)
2,345 Colorado Housing and Finance Authority, Single Family 5/07 at 105 Aa2 2,507,837
Program, 1997 Series B-2 Senior Bonds, 7.000%, 5/01/26
(Alternative Minimum Tax)
4,205 Colorado Housing and Finance Authority, Single Family 11/07 at 105 Aa2 4,462,052
Program, 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 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 11,285,757
1,725 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,815,804
6,550 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 6,841,148
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1992B:
715 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 765,865
2,785 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 2,938,899
City and County of Denver, Colorado, Airport System
Revenue Bonds, Series 1992C:
1,830 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,942,929
6,870 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 7,170,494
4,035 City and County of Denver, Colorado, Airport System Revenue No Opt. Call AAA 4,023,783
Refunding Bonds, Series 2000A, 4.900%, 11/15/08
(Alternative Minimum Tax)
13,505 City and County of Denver, Colorado, Special Facilities 10/02 at 102 Baa3 13,612,770
Airport Revenue Bonds (United Air Lines Project),
Series 1992A, 6.875%, 10/01/32 (Alternative Minimum Tax)
437 El Paso County, Colorado, Single Family Mortgage Revenue No Opt. Call Aaa 461,110
Tax-Exempt Refunding Bonds, Series 1992A Class A-2,
8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.5%
9,505 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 10,134,991
6.000%, 6/01/20
14,800 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103 AAA 15,004,832
Single Family Mortgage Revenue Bonds, Series 1988E-4,
6.375%, 6/01/26 (Alternative Minimum Tax)
10,350 District of Columbia, Revenue Bonds (Association of 8/07 at 102 AAA 9,967,257
American Medical Colleges Issue), Series 1997A,
5.375%, 2/15/27
------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.0%
9,290 State of Florida, Full Faith and Credit Department of 7/05 at 101 AAA 9,862,078
Transportation, Right-of-Way Acquisition and Bridge
Construction Bonds, Series 1995, 5.800%, 7/01/21
5,000 Orange County, Florida, Health Facilities Authority, 11/10 at 101 A- 4,963,900
Hospital Revenue Bonds, Series 2000, Adventist Health
System/Sunbelt Obligated Group, 6.500%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 2.4%
9,950 City of Atlanta (Georgia), Water and Wastewater Revenue No Opt. Call AAA 10,057,958
Bonds, Series 1999A, 5.500%, 11/01/22
23,420 Development Authority of Monroe County (Georgia), 4/01 at 101 A+ 23,676,449
Pollution Control Revenue Bonds (Georgia Power Company
Plant Scherer Project), Second Series 1994, 6.750%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 7.8%
19,220 Chicago School Reform Board of Trustees of the Board 12/07 at 102 AAA 18,098,321
of Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues),
Series 1997A, 5.250%, 12/01/27
10,000 City of Chicago, O'Hare International Airport, Special 11/00 at 102 Baa1 10,211,400
Facility Revenue Bonds (American Airlines Inc. Project),
Series 1990A, 7.875%, 11/01/25 (Alternative Minimum Tax)
6,280 City of Chicago, O'Hare International Airport, General Airport 1/04 at 102 AAA 5,903,640
Second Lien Revenue Refunding Bonds, 1993 Series C,
5.000%, 1/01/18
4,225 City of Chicago, Collateralized Single Family Mortgage 3/06 at 105 Aaa 4,601,448
Revenue Bonds, Series 1996-A, 7.000%, 9/01/27
(Alternative Minimum Tax)
7,150 City of Chicago, Collateralized Single Family Mortgage 9/07 at 105 Aaa 7,776,483
Revenue Bonds, Series 1997-B, 6.950%, 9/01/28
(Alternative Minimum Tax)
10,000 The County of Cook, Illinois, General Obligation Bonds, 11/03 at 100 AAA 9,102,100
Series 1993A, 5.000%, 11/15/23
8,740 Illinois Development Finance Authority, Pollution Control 2/04 at 102 AAA 8,713,430
Refunding Revenue Bonds, 1994 Series A (Illinois Power
Company Project), 5.700%, 2/01/24
14
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
$ 8,500 Illinois Educational Facilities Authority, Revenue Refunding 7/03 at 102 Aa1 $ 8,471,610
Bonds, The University of Chicago, Series 1993B,
5.600%, 7/01/24
5,015 Illinois Health Facilities Authority, Revenue Bonds, 10/02 at 102 AAA 5,111,639
Series 1992 (Highland Park Hospital), 6.200%, 10/01/22
1,500 Illinois Health Facilities Authority, Revenue Bonds, 10/07 at 102 AAA 1,492,905
Series 1997A (Highland Park Hospital Project),
5.750%, 10/01/26
17,545 Illinois Health Facilities Authority, Revenue Bonds, 8/07 at 101 AAA 15,950,686
Series 1997 (Sherman Health Systems), 5.250%, 8/01/27
9,200 Metropolitan Pier and Exposition Authority (Illinois), 12/09 at 101 AAA 9,048,568
McCormick Place Expansion Project Bonds, Series 1999A,
5.500%, 12/15/24
4,925 Regional Transportation Authority, Cook, DuPage, No Opt. Call AAA 5,960,826
Kane, Lake, McHenry and Will Counties, Illinois, General
Obligation Bonds, Series 1992A, 9.000%, 6/01/06
785 Regional Transportation Authority, Cook, DuPage, No Opt. Call AAA 950,101
Kane, Lake, McHenry and Will Counties, Illinois, General
Obligation Bonds, Series 1992B, 9.000%, 6/01/06
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 1.9%
4,300 Indiana State Office Building Commission, Correctional 7/05 at 102 AAA 4,246,250
Facilities Program Revenue Bonds, Series 1995A,
5.500%, 7/01/20
8,000 Metropolitan School District of Steuben County Middle 7/05 at 102 AAA 8,739,200
School Building Corporation, First Mortgage Bonds,
Series 1995, 6.375%, 7/15/16 (Pre-refunded to 7/15/05)
7,965 Wawasee Community School Corporation, Indiana, 1/12 at 101 AA- 8,030,313
New Elementary and Remodeling Building Corporation,
First Mortgage Bonds, Series 2000, 5.750%, 1/15/20
5,300 Whitley County Middle School Building Corporation, 1/04 at 102 AAA 5,662,997
Columbia City, Indiana, First Mortgage Bonds, Series 1994,
6.250%, 7/15/15 (Pre-refunded to 1/15/04)
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 1.3%
3,000 Iowa Finance Authority, Private College Refunding Revenue 12/05 at 102 AAA 3,004,560
Bonds (Drake University Project), Series 1996,
5.400%, 12/01/16
5,295 Iowa Finance Authority, Variable Rate Demand Industrial 7/14 at 100 AAA 7,010,527
Revenue Refunding Bonds, Series A 1989 (Urbandale Hotel
Corporation Project), Remarketed, 8.500%, 8/01/16
(Alternative Minimum Tax) (Pre-refunded to 7/15/14)
Iowa Finance Authority, Mortgage Revenue Bonds, Abbey
Healthcare Series 2001, GNMA Guaranteed:
2,795 6.150%, 4/20/31 (WI, settling 1/30/01) 10/10 at 103 1/2 Aaa 2,795,839
5,655 6.250%, 4/20/42 (WI, settling 1/30/01) 10/10 at 103 1/2 Aaa 5,657,319
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.4%
6,000 Sedgwick County, Kansas and Shawnee County, Kansas, 6/08 at 105 Aaa 6,442,200
Single Family Mortgage Revenue Bonds (Mortgaged-Backed
Securities Program), 1998 Series A1, 0.000%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.2%
3,070 Kentucky Development Finance Authority (St. Elizabeth No Opt. Call AAA 3,070,000
Medical Center), 9.000%, 11/01/00
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.6%
2,610 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101 Aaa 2,894,072
Revenue Bonds (Home Ownership Program), Series 2000A,
7.450%, 12/01/31 (Alternative Minimum Tax)
11,860 Louisiana Stadium and Exposition District, Hotel Occupancy 7/05 at 102 AAA 12,949,578
Tax Bonds, Series 1995-B, 6.375%, 7/01/25
12,735 Louisiana Stadium and Exposition District, Hotel Occupancy 7/09 at 102 AAA 11,525,430
Tax Refunding Bonds, Series 1998-B, 5.000%, 7/01/26
7,660 Louisiana Public Facilities Authority, Extended Care No Opt. Call BBB 9,662,554
Facilities Revenue Bonds (Comm-Care Corporation Project),
Series 1994, 11.000%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 0.4%
5,600 Housing Opportunities Commission of Montgomery County, 7/10 at 100 Aaa 5,684,784
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
15
<PAGE>
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts - 4.1%
$ 10,000 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100 AAA $ 9,502,500
2000 Series A, 5.250%, 7/01/30
13,000 The Commonwealth of Massachusetts, General Obligation 6/10 at 100 Aa2 13,821,860
Bonds, Series B, Consolidated Loan of 2000, 6.000%, 6/01/16
4,790 Massachusetts Development Finance Agency, Assisted 9/10 at 105 AAA 5,521,194
Living Facility Revenue Bonds (The Monastery at West
Springfield Project) (GNMA Collateralized), Series 1999A,
7.625%, 3/20/41 (Alternative Minimum Tax)
2,850 Massachusetts Industrial Finance Agency, Resource 7/01 at 103 N/R 2,987,826
Recovery Revenue Bonds, SEMASS Project, Series 1991B,
9.250%, 7/01/15 (Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB 2,664,145
Revenue Refunding Bonds (Ogden Haverhill Project),
Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
16,000 Massachusetts Industrial Finance Agency, General 7/07 at 102 AAA 15,206,720
Obligation Bonds, Suffolk University, Series 1997,
5.250%, 7/01/27
8,800 Massachusetts Water Resources Authority, General 7/02 at 100 Aaa 8,966,144
Revenue Bonds, 1992 Series A, 5.500%, 7/15/22
(Pre-refunded to 7/15/02)
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 3.3%
4,000 School District of the City of Detroit, Wayne County, 5/03 at 102 AAA 4,020,120
Michigan, School Building and Site Improvement and
Refunding Bonds (General Obligation - Unlimited Tax),
Series 1993, 5.400%, 5/01/13
10,550 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 100 AAA 9,636,054
Refunding Bonds, Series 1995-B, 5.000%, 7/01/25
Hudsonville Public Schools, Counties of Ottawa and Allegan,
Michigan, 1997 School Building and Site and Refunding Bonds
(General Obligation - Unlimited Tax):
10,510 5.150%, 5/01/22 5/08 at 100 AAA 9,969,576
8,045 5.150%, 5/01/27 5/08 at 100 AAA 7,539,694
9,625 Livonia Public School District, County of Wayne, Michigan, 5/03 at 102 AAA 9,537,413
1993 Refunding Bonds (General Obligation - Unlimited Tax),
5.500%, 5/01/21
6,600 Michigan State Housing Development Authority, Limited 7/07 at 102 AAA 6,445,428
Obligation Multifamily Mortgage Revenue Refunding Bonds,
Series 1999A (Forest Hills Regency Square Project),
5.750%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.3%
2,615 The Minneapolis/Saint Paul Housing Finance Board, 11/04 at 102 AAA 2,700,066
Single Family Mortgage Revenue Bonds (Minneapolis/Saint
Paul Family Housing Program, Phase X, FNMA and GNMA
Mortgage-Backed Securities Program), Series 1994,
7.500%, 11/01/27 (Alternative Minimum Tax)
5,000 Minnesota Agricultural and Economic Development Board, 11/07 at 102 AAA 5,015,550
Health Care System Revenue Bonds, Series 1997A (Fairview
Hospital and Healthcare Services), 5.750%, 11/15/26
20,690 The Housing and Redevelopment Authority of the City 11/15 at 103 AAA 24,370,958
of Saint Paul, Minnesota, Sales Tax Revenue Refunding
Bonds (Civic Center Project), Series 1996, 7.100%, 11/01/23
697 Housing and Redevelopment Authority of the City of No Opt. Call Aaa 719,597
Saint Paul, Minnesota, Single Family Mortgage Revenue
Bonds, Refunding Series 1991-B, 7.250%, 9/01/11
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 2.6%
5,565 Missouri Housing Development Commission, Single Family 3/07 at 105 AAA 5,990,166
Mortgage Revenue Bonds (Homeownership Loan Program),
1996 Series C, 7.450%, 9/01/27 (Alternative Minimum Tax)
17,595 Missouri Housing Development Commission, Single Family 3/09 at 103 AAA 18,565,716
Mortgage Revenue Bonds (Homeownership Loan Program),
1999 Series B-1, 6.700%, 9/01/30 (Alternative Minimum Tax)
11,120 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 12,863,727
General Obligation Refunding Bonds, Series 1994A,
7.800%, 3/01/08
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 2.0%
29,410 State of Nevada, Colorado River Commission, General 7/04 at 101 AA 28,763,862
Obligation - Limited Tax Revenue Supported Bonds,
Series 1994, 5.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 1.7%
9,915 New Hampshire Housing Finance Authority, Single Family 7/03 at 102 Aa3 9,953,867
Mortgage Revenue Bonds, 1993 Series B, 6.050%, 7/01/25
16
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New Hampshire (continued)
$ 8,000 Business Finance Authority of the State of New Hampshire, 10/03 at 102 A3 $ 7,254,000
Pollution Control Refunding Revenue Bonds (The United
Illuminating Company Project), 1993 Series A,
5.875%, 10/01/33
7,475 New Hampshire Housing Finance Authority, Single Family 7/06 at 102 Aa3 7,720,703
Mortgage Acquisition Revenue Bonds, 1996 Series B,
6.400%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.4%
10,000 Delaware River Port Authority (New Jersey), Port District 1/10 at 100 AAA 10,084,600
Project Bonds, Series B of 1999, 5.625%, 1/01/26
10,000 The Essex County Improvement Authority (New Jersey), 10/10 at 100 Aaa 10,522,200
General Obligation Guaranteed Lease Revenue Bonds
(County Correctional Facility Project), Series 2000,
6.000%, 10/01/25
15,000 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101 1/2 AAA 15,249,000
Home Buyer Revenue Bonds, 1997 Series U,
5.850%, 4/01/29 (Alternative Minimum Tax)
11,500 New Jersey Turnpike Authority, Turnpike Revenue No Opt. Call AAA 12,592,845
Bonds, Series 2000 A, 6.000%, 1/01/14
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.5%
3,480 New Mexico Mortgage Finance Authority, Single Family 7/02 at 102 AAA 3,559,553
Mortgage Purchase Refunding Senior Bonds, 1992 Series A2,
6.900%, 7/01/24
2,760 Mew Mexico Mortgage Finance Authority, Single Family 3/10 at 102 1/2 AAA 3,036,524
Mortgage Program Bonds, 2000 Series D-2, 6.850%, 9/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New York - 8.7%
18,500 Erie Tobacco Asset Securitization Corporation, Erie County, 7/10 at 101 Aa3 18,296,870
New York, Tobacco Settlement Asset-Backed Bonds,
Series 2000, Senior, 6.250%, 7/15/40
20,700 Long Island Power Authority, New York, Electric System 6/08 at 101 A- 19,322,415
General Revenue Bonds, Series 1998A, 5.250%, 12/01/26
10,000 The City of New York, General Obligation Bonds, 2/06 at 101 1/2 A 10,553,800
Fiscal 1996 Series G, 5.750%, 2/01/07
The City of New York, General Obligation Bonds, Fiscal 1997 Series G:
100 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101 A*** 109,073
5,900 6.000%, 10/15/26 10/07 at 101 A 6,066,321
The City of New York, General Obligation Bonds, Fiscal 1991 Series B:
540 9.500%, 6/01/03 No Opt. Call A*** 606,452
6,960 9.500%, 6/01/03 No Opt. Call A 7,782,185
16,000 New York City Municipal Water Finance Authority, Water and 6/06 at 101 AAA 16,143,360
Sewer System Revenue Bonds, Fiscal 1996 Series B,
5.750%, 6/15/26
14,625 New York City Transitional Finance Authority, Future Tax 5/08 at 101 AA 12,884,186
Secured Bonds, Fiscal 1998 Series C, 4.750%, 5/01/23
2,430 Dormitory Authority of the State of New York, The Miriam 7/10 at 102 A 2,690,010
Osborn Memorial Home Association, Revenue Bonds,
Series 2000B, 6.875%, 7/01/19
4,000 New York State Energy Research and Development 3/03 at 102 A+ 4,021,440
Authority, Facilities Revenue Bonds, Series 1993 A
(Consolidated Edison Company of New York, Inc. Project),
6.000%, 3/15/28 (Alternative Minimum Tax)
10,000 New York Local Government Assistance Corporation, 4/04 at 100 AA- 9,149,400
Refunding Bonds, Series 1993D, 5.000%, 4/01/23
16,845 New York State Medical Care Facilities Finance Agency, 2/04 at 102 AAA 16,786,885
Hospital and Nursing Home FHA-Insured Mortgage Revenue
Bonds, 1993 Series B, 5.500%, 2/15/22
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.8%
9,650 Dickinson, North Dakota, Health Care Facilities Revenue Bonds, 2/10 at 102 AA 11,047,127
Series 1990, BHS Long Term Care Inc, 7.625%, 2/15/20
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.5%
12,360 State of Ohio, Turnpike Revenue Bonds, 1994 Series A, 2/04 at 102 Aaa 13,045,856
Issued by the Ohio Turnpike Commission, 5.750%, 2/15/24
2,000 County of Richland, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101 A- 1,970,860
Bonds, Series 2000A, MedCentral Health System
Obligated Group, 6.125%, 11/15/16
7,000 City of Steubenville, Ohio, Hospital Facilities Revenue 10/10 at 100 A3 6,931,190
Refunding and Improvement Bonds, Series 2000, Trinity
Health System, 6.500%, 10/01/30
17
<PAGE>
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pennsylvania - 2.5%
$ 12,875 Allegheny County Hospital Development Authority 11/02 at 100 AAA $ 13,322,535
(Pennsylvania), 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 Pennsylvania Housing Finance Agency, Single Family 10/03 at 102 AA+ 9,886,400
Mortgage Revenue Bonds, Series 1993 - 37A, 5.450%, 10/01/17
8,405 Redevelopment Authority of the City of Philadelphia 4/08 at 103 N/R 7,723,691
(Pennsylvania), Multifamily Housing Mortgage Revenue
Bonds, Series 1998A (Cricket Court Commons Project),
6.200%, 4/01/25 (Alternative Minimum Tax)
5,295 The School District of Philadelphia, Pennsylvania, General 9/05 at 101 AAA 5,220,499
Obligation Bonds, Series B of 1995, 5.500%, 9/01/25
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 0.4%
5,250 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 A- 5,183,273
Series X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
Rhode Island - 0.9%
13,200 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 12,279,960
Hospital Financing Revenue Bonds, Lifespan Obligated Group
Issue, Series 1996, 5.250%, 5/15/26
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.1%
16,250 South Carolina Jobs and Economic Development Authority, 2/06 at 102 AAA 15,122,088
Hospital Revenue Bonds (Anderson Area Medical Center, Inc.),
Series 1996, 5.250%, 2/01/26
------------------------------------------------------------------------------------------------------------------------------------
Texas - 8.8%
10,305 Alliance Airport Authority, Inc., Special Facilities Revenue 12/00 at 102 Baa1 10,521,405
Bonds, Series 1990 (American Airlines, Inc. Project),
7.500%, 12/01/29 (Alternative Minimum Tax)
3,289 Austin Housing Finance Corporation (Texas), Multifamily 12/10 at 105 Aaa 3,688,548
Housing Revenue Bonds, Series 2000A (GNMA Collateralized
Mortgage Loan - Fairway Village Project), 7.375%, 6/20/35
(Alternative Minimum Tax)
11,020 Brazos River Authority (Texas), Collateralized Pollution Control 3/01 at 102 BBB+ 11,314,675
Revenue Bonds (Texas Utilities Electric Company Project),
Series 1994A, 7.875%, 3/01/21 (Alternative Minimum Tax)
6,800 Brazos River Authority (Texas), Revenue Refunding Bonds 5/08 at 102 AAA 6,367,588
(Houston Industries Incorporated Project), Series 1998C,
5.125%, 5/01/19
5,025 Clear Creek Independent School District, Galveston and Harris 2/10 at 100 AAA 5,304,491
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 6.000%, 2/15/16
15,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102 AAA 15,091,500
Bonds, Series 1994, 5.300%, 8/15/13
10,000 Harris County Hospital District, Refunding Revenue Bonds, No Opt. Call AAA 11,363,823
Texas, Series 1990, 7.400%, 2/15/10
15,000 Harris County Housing Finance Corporation (Texas), Multifamily 12/10 at 105 N/R 15,204,750
Housing Bonds (Coolwood Oaks and Haverstock Hill Apartments),
Series A, 8.250%, 12/01/31
19,125 Harris County, Texas, Hospital District, Refunding Revenue 8/10 at 100 AAA 19,994,231
Bonds, Series 2000, 6.000%, 2/15/15
1,343 Heart of Texas Housing Finance Corporation, Multifamily 9/10 at 105 Aaa 1,507,061
Housing Revenue Bonds, Series 2000A (GNMA Collateralized
Mortgage Loan - Parkside Village Project), 7.400%, 9/20/35
(Alternative Minimum Tax)
4,000 Tarrant County, Texas, Health Facilities Development 11/10 at 101 A- 3,925,320
Corporation, Hospital Revenue Bonds, Series 2000, Adventist
Health System/Sunbelt Obligated Group, 6.700%, 11/15/30
10,000 Board of Regents of the Texas A&M University, Revenue 5/09 at 100 AAA 9,879,800
Financing System Bonds, Series 1999, 5.550%, 5/15/29
13,150 Texas Department of Housing and Community Affairs, 1/09 at 101 AAA 12,023,308
Residential Mortgage Revenue Bonds, Series 1998A,
5.350%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Utah - 0.5%
7,785 Utah Housing Finance Agency, Single Family Mortgage 7/07 at 101 1/2 AAA 7,657,248
Bonds, 1997 Series F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.9%
12,510 Vermont Housing Finance Agency, Single Family Housing 6/07 at 101 1/2 AAA 12,492,861
Bonds, Series 9, 5.900%, 5/01/29 (Alternative Minimum Tax)
18
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Virginia - 1.1%
$ 10,000 Prince William County Service Authority (Virginia), Water 7/03 at 102 AAA $ 9,275,800
and Sewer System Refunding Revenue Bonds, Series 1993,
5.000%, 7/01/21
5,000 City of Virginia Beach Development Authority, Multifamily 10/14 at 100 N/R 4,937,350
Housing Revenue Bonds (Residential Rental Hamptons
Project), Series 1999, 7.500%, 10/01/39
1,000 Virginia Housing Development Authority, Commonwealth 1/01 at 100 AA+ 1,002,070
Mortgage Bonds, 1987 Series C, Subseries C-7,
8.375%, 1/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Washington - 12.8%
Public Utility District No.1 of Chelan County, Washington,
Chelan Hydro Consolidated System Revenue Bonds, Series 1997A:
11,820 5.650%, 7/01/32 (Alternative Minimum Tax) 7/07 at 102 AA 11,335,616
(Optional put 7/01/09) (Mandatory put 7/01/24)
5.650%, 7/01/32 (Alternative Minimum Tax) 7/07 at 102 AA 7,629,040
(Optional put 7/01/09) (Mandatory put 7/01/27)
15,050 Municipality of Metropolitan Seattle, Washington, Sewer 1/03 at 102 AAA 14,618,065
Refunding Revenue Bonds, Series Z, 5.500%, 1/01/33
6,360 Public Utility District No. 1 of Snohomish County, Washington, 1/03 at 100 AAA 6,392,309
Generation System Revenue Bonds, Series 1993,
5.500%, 1/01/14
10,000 Washington Health Care Facilities Authority, Revenue Bonds, 11/08 at 101 Aaa 9,251,400
Series 1998 (Swedish Health Services), 5.125%, 11/15/22
11,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 9,649,090
Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28
12,950 Washington Public Power Supply System, Nuclear 7/03 at 102 AAA 13,109,933
Project No. 1 Refunding Revenue Bonds, Series 1993A,
5.700%, 7/01/17
29,870 Washington Public Power Supply System, Nuclear 7/03 at 102 AAA 30,244,869
Project No. 1 Refunding Revenue Bonds, Series 1993B,
5.600%, 7/01/15
7,500 Washington Public Power Supply System, Nuclear 7/01 at 100 Aaa 7,581,150
Project No. 2 Refunding Revenue Bonds, Series 1991A,
6.000%, 7/01/12 (Pre-refunded to 7/01/01)
14,440 Washington Public Power Supply System, Nuclear 7/03 at 102 Aa1 14,803,166
Project No. 2 Refunding Revenue Bonds, Series 1993A,
5.750%, 7/01/12
6,770 Washington Public Power Supply System, Nuclear 7/03 at 102 Aa1 6,902,760
Project No. 2 Refunding Revenue Bonds, Series 1993B,
5.625%, 7/01/12
14,500 Washington Public Power Supply System, Nuclear 7/08 at 102 Aa1 14,296,274
Project No. 2 Refunding Revenue Bonds, Series 1998A,
5.000%, 7/01/12
22,880 Washington Public Power Supply System, Nuclear 7/03 at 102 Aa1 22,763,540
Project No. 3 Refunding Revenue Bonds, Series 1993C,
5.375%, 7/01/15
9,350 Washington Public Power Supply System, Nuclear 7/07 at 102 Aa1 9,185,250
Project No. 3 Refunding Revenue Bonds, Series 1997-A,
5.250%, 7/01/15
7,775 Washington Public Power Supply System, Nuclear 7/08 at 102 Aa1 7,289,680
Project No. 3 Refunding Revenue Bonds, Series 1998A,
5.125%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 1.1%
15,000 West Virginia Housing Development Fund, Housing Finance 5/02 at 102 AAA 15,585,000
Bonds, 1992 Series D, 7.050%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
$ 1,410,311 Total Investments (cost $1,405,290,512) - 99.7% 1,427,744,787
================--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 4,894,757
------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,432,639,544
====================================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
19
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alaska - 0.4%
$ 3,500 Anchorage Parking Authority, Lease Revenue Refunding Bonds, 12/02 at 102 A2 $ 3,655,785
Series 1993 (5th Avenue Garage Project), 6.750%, 12/01/08
415 City of Valdez, Alaska, Home Mortgage Revenue Refunding 8/02 at 102 A1 430,558
Bonds, 1992 Series, 7.900%, 2/01/10
------------------------------------------------------------------------------------------------------------------------------------
Arizona - 3.1%
2,850 The Industrial Development Authority of the County of 1/07 at 102 AAA 3,043,344
Maricopa (Arizona), Multifamily Housing Revenue Bonds
(Place Five and the Greenery Apartments Projects),
Series 1996A, 6.625%, 1/01/27
The Industrial Development Authority of the County of Mohave,
Hospital System Revenue Refunding Bonds (Medical Environments,
Inc. and Phoenix Baptist Hospital and Medical Center Inc.),
Series 1993:
5,705 6.250%, 7/01/03 No Opt. Call Aaa 5,867,878
3,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 3,224,430
9,000 City of Phoenix Civic Improvement Corporation (Arizona), 7/03 at 102 AAA 9,540,360
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/14 (Pre-refunded to 7/01/03)
3,880 City of Phoenix Civic Improvement Corporation (Arizona), 7/04 at 102 AA- 3,452,346
Wastewater System Lease Revenue Refunding Bonds,
Series 1993, 4.750%, 7/01/23
4,310 The Industrial Development Authority of the County 1/02 at 103 AAA 4,535,887
of Pima (Arizona), Industrial Development Lease Obligation
Refunding Revenue Bonds, 1988 Series A (Irvington Project),
7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
California - 12.1%
7,710 State of California, General Obligation Veterans Welfare Bonds, 12/08 at 101 AAA 7,863,121
Series 1997BH, 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 6.625%, 10/01/10 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 16,522,268
10,500 6.700%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 11,221,350
7,150 State Public Works Board of the State of California, 10/04 at 102 Aa3*** 7,853,346
Lease Revenue Bonds (The Trustees of the California State
University), 1994 Series A (Various California State University
Projects), 6.375%, 10/01/19 (Pre-refunded to 10/01/04)
17,500 State Public Works Board of the State of California, 11/04 at 102 Aaa 19,586,175
Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State Prison, Monterey County
(Soledad II)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04)
30,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 9,762,600
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21
5,000 City of Loma Linda, California, Hospital Revenue Bonds 12/03 at 102 N/R 4,509,000
(Loma Linda University Medical Center Project),
Series 1993-A, 6.500%, 12/01/18
3,230 Community Redevelopment Financing Authority of the 9/02 at 102 N/R*** 3,380,227
Community Redevelopment Agency of the City of
Los Angeles, California, Pooled Financing Bonds,
Series D (Crenshaw Redevelopment Project),
7.000%, 9/01/14 (Pre-refunded to 9/01/02)
5,000 Los Angeles County Public Works Finance Authority, Revenue 10/04 at 102 AA*** 5,447,100
Bonds, Series 1994A (Los Angeles County Regional Park
and Open Space District), 6.125%, 10/01/10
(Pre-refunded to 10/01/04)
10,000 Los Angeles County Transportation Commission (California), 7/02 at 102 Aaa 10,633,200
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 Parlier Redevelopment Agency (Parlier Redevelopment 8/02 at 102 N/R*** 2,167,031
Project), 1992 Tax Allocation Bonds, Series A,
6.750%, 8/01/22 (Pre-refunded to 8/01/02)
20
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California (continued)
Redevelopment Agency of the City and County of San Francisco
(California), Hotel Tax Revenue Bonds, Series 1994:
$ 2,390 6.750%, 7/01/15 (Pre-refunded to 7/01/04) 7/04 at 102 AAA $ 2,646,758
5,905 6.750%, 7/01/25 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 6,539,374
960 6.750%, 7/01/25 7/04 at 102 AAA 1,051,402
5,605 County of San Joaquin, California, Certificates of Participation 4/04 at 102 A 5,866,922
(1994 Solid Waste System Facilities Project), 6.600%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 7.7%
9,870 Colorado Health Facilities Authority, Insured Hospital 2/01 at 102 AAA 10,117,737
Revenue Bonds (PSL Healthcare System Project), Series 1991A,
6.250%, 2/15/21 (Pre-refunded to 2/15/01)
535 Colorado Housing and Finance Authority, Single Family 12/04 at 105 Aa2 560,739
Program Senior Bonds, 1994 Series E, 8.125%, 12/01/24
(Alternative Minimum Tax)
Colorado Housing and Finance Authority, General Obligation
Bonds, 1994 Series A:
5,645 6.850%, 8/01/24 (Pre-refunded to 8/01/02) 8/02 at 102 A*** 5,969,870
1,245 6.875%, 8/01/30 (Pre-refunded to 8/01/02) 8/02 at 102 A*** 1,317,148
2,980 Colorado Housing and Finance Authority, Single Family 12/05 at 105 Aa2 3,191,997
Program Senior Bonds, 1995 Series D, 7.375%, 6/01/26
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991D:
400 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 477,704
3,155 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Aaa 3,321,079
(Pre-refunded to 11/15/01)
12,115 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 12,653,512
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992B:
1,445 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,547,797
5,635 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 5,946,390
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992C:
2,125 6.750%, 11/15/13 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,256,134
16,120 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 A 16,857,006
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991A:
1,925 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 1,994,377
5,315 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 5,461,694
1,700 City and County of Denver (Colorado), Multifamily Housing 10/07 at 102 AAA 1,679,260
Revenue Bonds (FHA-Insured Mortgage Loan - The Boston
Lofts Project), Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.3%
3,170 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102 AA 3,293,250
Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.2%
5,000 Dade County, Florida, Aviation Bonds, Series 1996A, 10/06 at 102 AAA 5,067,900
5.750%, 10/01/18 (Alternative Minimum Tax)
2,850 State of Florida, Full Faith and Credit Department of 7/05 at 101 AAA 3,034,395
Transportation, Right-of-Way Acquisition and Bridge
Construction Bonds, Series 1995, 5.875%, 7/01/24
12,500 City of Tampa, Florida, Revenue Bonds (The Florida 5/02 at 102 N/R*** 13,297,000
Aquarium Project), Series 1992, 7.750%, 5/01/27
(Pre-refunded to 5/01/02)
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.5%
5,500 City of Atlanta (Georgia), Water and Sewerage Revenue 1/04 at 100 AAA 5,490,870
Bonds, Series 1993, 4.500%, 1/01/18 (Pre-refunded to 1/01/04)
7,000 Development Authority of Burke County, Georgia, Pollution 1/03 at 103 AAA 7,697,340
Control Revenue Bonds (Oglethorpe Power Corporation
Vogtle Project), Series 1992, 8.000%, 1/01/15
(Pre-refunded to 1/01/03)
650 Housing Authority of Fulton County, Georgia, Single Family 9/06 at 102 AAA 663,663
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities Program), Series 1996A, 6.200%, 9/01/27
(Alternative Minimum Tax)
21
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Idaho - 1.3%
$ 1,930 Idaho Housing Finance Agency, Single Family Mortgage 7/05 at 102 AAA $ 1,991,895
Revenue Bonds, Series F, 6.450%, 7/01/27
(Alternative Minimum Tax)
3,305 Idaho Housing Finance Agency, Housing Revenue Bonds 6/05 at 102 Aa 3,368,423
(Park Place Project), 1995 Series A, FHA-Insured Mortgage,
6.500%, 12/01/36 (Alternative Minimum Tax)
2,225 Idaho Housing and Finance Association, Single Family 7/06 at 102 Aaa 2,257,062
Mortgage Bonds, 1996 Series G, 6.350%, 7/01/26
(Alternative Minimum Tax)
2,275 Idaho Housing and Finance Association, Single Family 1/10 at 100 Aa2 2,332,148
Mortgage Bonds, 2000 Series B, 6.250%, 7/01/22
(Alternative Minimum Tax)
2,375 Idaho Housing and Finance Association, Single Family 7/10 at 100 Aaa 2,404,711
Mortgage Bonds, 2000 Series E, 5.950%, 7/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 13.6%
5,000 City of Chicago, General Obligation Bonds (Emergency 1/03 at 102 AAA 5,208,000
Telephone System), Series 1993, 5.625%, 1/01/23
(Pre-refunded to 1/01/03)
17,000 City of Chicago, General Obligation Bonds, Project Series A 1/02 at 102 AAA 17,647,020
of 1992, 6.250%, 1/01/12 (Pre-refunded to 1/01/02)
18,200 City of Chicago (Illinois), General Obligation Bonds, 1/06 at 102 AAA 16,868,306
Series 1995A-1 Project Bonds, 5.125%, 1/01/25
1,000 City of Chicago (Illinois), General Obligation Bonds, 7/08 at 102 AAA 960,470
Project and Refunding Series 1998, 5.250%, 1/01/20
22,670 City of Chicago (Illinois), General Obligation Bonds No Opt. Call AAA 5,626,921
(City Colleges of Chicago Capital Improvement Project),
Series 1999, 0.000%, 1/01/25
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 0.000%, 12/01/20 No Opt. Call AAA 7,493,192
41,300 0.000%, 12/01/21 No Opt. Call AAA 12,205,802
5,000 Chicago School Reform Board of Trustees of the Board of No Opt. Call AAA 1,577,300
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues),
Series 1999A, 0.000%, 12/01/20
8,270 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 6/02 at 102 AAA 8,499,327
(FHA-Insured Mortgage Loan - Lakeview Towers Project),
6.650%, 12/01/33
1,175 City of Chicago, Multifamily Housing Revenue Bonds, 6/09 at 102 Aaa 1,161,817
Series 1997 (GNMA Collateralized - Bryn Mawr/Belle
Shores Project), 5.800%, 6/01/23 (Alternative Minimum Tax)
5,500 Chicago Park District, Illinois, General Obligation Capital 1/02 at 102 AA*** 5,745,465
Improvement Bonds and Aquarium and Museum Bonds,
Series 1991, 6.700%, 1/01/11 (Pre-refunded to 1/01/02)
10,900 Public Building Commission of Chicago (Illinois), Building 12/03 at 102 AAA 11,476,174
Revenue Bonds, Series A of 1993 (Board of Education of the
City of Chicago), 5.750%, 12/01/18 (Pre-refunded to 12/01/03)
4,415 City of Chicago, Illinois, Tax Increment Allocation Bonds 1/07 at 102 N/R 4,558,267
(Read-Dunning Redevelopment Project), Series 1996B,
7.250%, 1/01/14
3,530 City of Chicago, Illinois, Tax Increment Allocation Bonds 1/07 at 102 N/R 3,697,640
(Sanitary Drainage and Ship Canal Redevelopment Project),
Series 1997A, 7.750%, 1/01/14
2,850 City of East St. Louis, Illinois, Mortgage Revenue Refunding 7/03 at 102 AAA 2,925,582
Bonds, Series 1994A (FHA-Insured Mortgage Loan - Dawson
Manor Apartments - Section 8 Assisted Project), 6.500%, 7/01/24
6,900 Illinois Health Facilities Authority, Revenue Refunding 10/03 at 102 A- 6,062,616
Bonds, Series 1993 (Illinois Masonic Medical Center),
5.500%, 10/01/19
3,000 Illinois Health Facilities Authority, Revenue Refunding No Opt. Call A+ 2,950,560
Bonds, Series 1993C (Lutheran General Health System),
6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance Bonds,
2000 Series A:
1,210 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100 AA 1,233,522
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100 AA 1,264,248
22
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
$ 11,510 The Illinois State Toll Highway Authority, Toll Highway Priority 1/03 at 102 AA-*** $ 12,150,416
Revenue Bonds, 1992 Series A, 6.375%, 1/01/15
(Pre-refunded to 1/01/03)
405 Village of Wheeling, Cook and Lake Counties, Illinois, 11/02 at 102 AAA 415,623
Single Family Mortgage Revenue Refunding Bonds,
Series 1992, 6.850%, 11/01/09
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 7.0%
8,000 East Chicago Elementary School Building Corporation 1/03 at 102 A*** 8,558,880
(Lake County, Indiana), First Mortgage Bonds, Series 1992,
7.000%, 1/15/16 (Pre-refunded to 1/15/03)
13,630 Hospital Authority of the City of Fort Wayne, Indiana, Revenue 11/02 at 102 A+*** 14,390,145
Bonds, Series 1992 (Parkview Memorial Hospital, Inc. Project),
6.400%, 11/15/22 (Pre-refunded to 11/15/02)
6,031 City of Greenfield, Indiana, Multifamily Housing Revenue 12/05 at 105 Aaa 6,125,445
Bonds, Series 1996 A (Pedcor Investments, 1988-V, L.P. Project),
6.200%, 12/01/28 (Alternative Minimum Tax)
10,675 Highland School Building Corporation (Highland, Indiana), 1/02 at 102 AAA 11,169,786
First Mortgage Bonds, Series 1992A, 6.750%, 1/15/20
(Pre-refunded to 1/15/02)
8,200 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/03 at 102 AAA 8,610,000
Series 1993A, Guarantee Revenue Bonds, 6.250%, 2/01/09
2,875 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/05 at 102 AAA 3,088,325
Series 1994B, Guarantee Revenue Bonds, 6.750%, 2/01/17
3,500 Indiana Bond Bank, Special Program Bonds, Series 2000A 2/10 at 101 AAA 3,629,290
(City of East Chicago Facilities Building Corporation Project),
6.125%, 2/01/25
5,250 Indiana Transportation Finance Authority, Aviation Technology 3/03 at 102 AA 5,405,715
Center Lease Revenue Bonds, Series A, 6.500%, 3/01/18
5,905 Muncie School Building Corporation, First Mortgage Bonds, 7/01 at 102 N/R*** 6,109,018
Series 1992, 6.625%, 7/15/14 (Pre-refunded to 7/15/01)
------------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.3%
1,210 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103 Aa2 1,262,296
Refunding Bonds, Series 1994, 7.100%, 5/01/12
1,390 Sedgwick County, Kansas and Shawnee County, Kansas, No Opt. Call Aaa 1,460,348
Collateralized Single Family Mortgage Refunding Revenue
Bonds (GNMA Certificates), Series 1994A1, 7.900%, 5/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.6%
5,780 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102 AAA 5,957,562
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.7%
3,595 Bossier Public Trust Financing Authority, Single Family 8/05 at 102 AAA 3,601,471
Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
12,100 East Baton Rouge Mortgage Finance Authority, Single 10/05 at 102 Aaa 12,205,633
Family Mortgage Revenue Bonds (GNMA and FNMA
Mortgage-Backed Securities Program), Series 1994C,
6.350%, 10/01/28 (Alternative Minimum Tax)
4,980 New Orleans Home Mortgage Authority, Single Family Mortgage 6/05 at 102 Aaa 5,119,838
Revenue Bonds, Series 1995A, 6.300%, 6/01/28
(Alternative Minimum Tax)
4,205 Orleans Levee District (A Political Subdivision of the State 12/05 at 103 AAA 4,416,722
of Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/15
------------------------------------------------------------------------------------------------------------------------------------
Maine - 0.9%
1,035 Maine State Housing Authority, Mortgage Purchase Bonds, 11/05 at 102 AA 1,061,527
1995 Series B-2, 6.300%, 11/15/26 (Alternative Minimum Tax)
7,925 Maine State Housing Authority, Mortgage Purchase Bonds, 8/02 at 102 Aa2 7,990,936
1990 Series A-4, 6.400%, 11/15/24 (Alternative Minimum Tax)
23
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Maryland - 0.1%
$ 965 Community Development Administration, Department of 5/03 at 102 Aa2 $ 995,562
Housing and Community Development, State of Maryland,
Multifamily Housing Revenue Bonds (Insured Mortgage Loans),
1993 Series C, 6.625%, 5/15/23
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 0.7%
3,080 Massachusetts Industrial Finance Agency, Revenue Bonds 3/06 at 102 AAA 3,083,388
(College of the Holy Cross - 1996 Issue), 5.625%, 3/01/26
3,605 Massachusetts Water Resources Authority, General Revenue 12/04 at 102 AAA 3,493,930
Bonds, 1993 Series C, 5.250%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 1.4%
8,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/03 at 102 AAA 8,006,880
Refunding Bonds (Oakwood Hospital Obligated Group),
Series 1993A, 5.625%, 11/01/18
5,285 Michigan State Housing Development Authority, Rental Housing 10/02 at 102 AA- 5,487,098
Revenue Bonds, 1992 Series A, 6.650%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.8%
3,560 Housing and Redevelopment Authority of the City of Saint Paul, 12/02 at 102 BBB+ 3,577,230
Minnesota and City of Minneapolis, Minnesota, Health Care
Facility Revenue Bonds, Series 1992 (Group Health Plan,
Inc. Project), 6.900%, 10/15/22
2,450 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100 AA+ 2,490,768
Bonds, 2000 Series C, 6.100%, 7/01/30 (Alternative Minimum Tax)
3,095 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 3,139,754
1995 Series D, 5.950%, 2/01/18
4,395 Minnesota Housing Finance Agency, Single Family Mortgage 1/06 at 102 AA+ 4,542,980
Bonds, 1996 Series G, 6.250%, 7/01/26 (Alternative Minimum Tax)
2,500 Minnesota Housing Finance Agency, Single Family Mortgage 1/11 at 101 AA+ 2,547,725
Bonds, 1997 Series H, Remarketed, 6.050%, 7/01/31
(Alternative Minimum Tax)
2,000 Southern Minnesota Municipal Power Agency, Power Supply 1/03 at 102 Aaa 2,075,000
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11
2,350 Washington County Housing and Redevelopment Authority, 1/03 at 102 BBB 2,401,183
Pooled Housing and Redevelopment Limited Annual
Appropriation Tax and Revenue Bonds (Pooled Refunding
Project), Series 1992, 7.200%, 1/01/22
5,170 Washington County Housing and Redevelopment Authority, 12/02 at 100 A3*** 5,469,446
Lease Revenue Bonds (South Washington County Schools
Project), Series 1992, 7.400%, 12/01/14 (Pre-refunded
to 12/01/02)
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.4%
4,000 Mississippi Hospital Equipment and Facilities Authority, 10/02 at 102 AAA 4,191,560
Revenue Bonds, Series 1992A (Wesley Health Systems),
6.050%, 4/01/12 (Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
Missouri - 1.8%
5,500 The Industrial Development Authority of the City of St. Louis, 12/02 at 102 N/R 5,693,930
Missouri, Industrial Revenue Refunding Bonds (Kiel Center
Multipurpose Arena Project), Series 1992, 7.625%, 12/01/09
(Alternative Minimum Tax)
11,000 St. Louis Municipal Finance Corporation, Leasehold Revenue 7/03 at 102 AAA 11,327,470
Refunding Bonds, 6.000%, 7/15/13
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.4%
4,000 Clark County, Nevada, Industrial Development Revenue Bonds 6/02 at 102 AAA 4,173,240
(Nevada Power Company Project), Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.4%
3,735 New Hampshire Higher Educational and Health Facilities 1/01 at 101 BBB+ 3,773,732
Authority, Hospital Revenue Bonds, Catholic Medical Center
Issue, Series 1989, 8.000%, 7/01/04
24
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New Jersey - 2.4%
$ 4,500 New Jersey Economic Development Authority, Insured 5/05 at 102 AAA $ 4,841,010
Revenue Bonds (Educational Testing Service Issue),
Series 1995A, 6.000%, 5/15/25
8,720 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101 1/2 AAA 8,611,349
Housing Revenue Bonds, 1997 Series A, 5.650%, 5/01/40
(Alternative Minimum Tax)
4,145 New Jersey Housing and Mortgage Finance Agency, Housing 11/02 at 102 A+ 4,313,992
Revenue Refunding Bonds, 1992 Series One, 6.700%, 11/01/28
1,000 Toms River Board of Education, General Obligation Bonds, 7/07 at 100 AAA 1,064,740
Series 1997, 5.750%, 7/15/21 (Pre-refunded to 7/15/07)
3,755 The Union County Utilities Authority (New Jersey), Solid Waste 6/08 at 101 AAA 3,619,031
Facility Subordinated Lease Revenue Bonds, Ogden Martin
Systems of Union, Inc., Lessee, Series 1998A, 5.350%, 6/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.4%
3,820 New Mexico Mortgage Finance Authority, Single Family 7/05 at 102 AAA 3,877,644
Mortgage Program Bonds, 1995 Series E, 6.300%, 7/01/17
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New York - 16.7%
22,400 Long Island Power Authority, New York, Electric System General 6/08 at 101 AAA 21,154,784
Revenue Bonds, Series 1998A, 5.125%, 12/01/22
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2000A:
10,000 0.000%, 6/01/22 No Opt. Call AAA 2,951,200
15,000 0.000%, 6/01/23 No Opt. Call AAA 4,174,200
7,695 The City of New York, General Obligation Bonds, Fiscal 1995 No Opt. Call A 8,108,914
Series E, 6.600%, 8/01/03
17,365 The City of New York, General Obligation Bonds, Fiscal 1996 No Opt. Call A 19,198,223
Series F, 7.000%, 2/01/06
11,130 The City of New York, General Obligation Bonds, Fiscal 1996 3/06 at 101 1/2 A 11,369,184
Series I, 5.875%, 3/15/18
The City of New York, General Obligation Bonds, Fiscal 1996
Series J1:
9,000 5.875%, 2/15/19 2/06 at 101 1/2 A 9,175,230
3,820 5.500%, 2/15/26 2/06 at 101 1/2 A 3,725,455
4,250 The City of New York, General Obligation Bonds, Fiscal 1997 8/06 at 101 1/2 A 4,307,588
Series E, 5.875%, 8/01/24
The City of New York, General Obligation Bonds, Fiscal 1993
Series A:
3,140 6.375%, 8/01/08 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 3,294,080
6,860 6.375%, 8/01/08 8/02 at 101 1/2 A 7,141,603
660 6.500%, 8/01/11 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 693,759
1,340 6.500%, 8/01/11 8/02 at 101 1/2 A 1,397,781
The City of New York, General Obligation Bonds, Fiscal 1997
Series I:
6,950 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101 A*** 7,642,012
5,070 6.250%, 4/15/27 4/07 at 101 A 5,290,748
The City of New York, General Obligation Bonds, Fiscal 1995
Series D:
285 6.600%, 2/01/03 No Opt. Call A*** 298,486
10,465 6.600%, 2/01/03 No Opt. Call A 10,930,483
1,370 New York City Municipal Water Finance Authority, Water and 6/07 at 101 AAA 1,347,340
Sewer System Revenue Bonds, Fiscal 1997 Series B,
5.500%, 6/15/27
3,150 New York City Municipal Water Finance Authority, Water and 6/05 at 101 AAA 3,201,503
Sewer System Revenue Bonds, Fiscal 1996 Series A,
5.875%, 6/15/25
4,000 The Trust for Cultural Resources of the City of New York, 4/07 at 101 AAA 4,016,520
Revenue Bonds, Series 1997A (American Museum of Natural
History), 5.650%, 4/01/27
2,500 Dormitory Authority of the State of New York, City University 7/06 at 102 A 2,562,200
System Consolidated Third General Resolution Bonds,
1996 Series 2, 6.000%, 7/01/20
17,450 New York State Energy Research and Development Authority, 12/01 at 101 AAA 17,776,839
Facilities Revenue Bonds, Series 1992B (Consolidated Edison
Company of New York, Inc. Project), 6.375%, 12/01/27
(Alternative Minimum Tax)
7,635 New York State Medical Care Facilities Finance Agency, Mercy 5/05 at 102 AA- 8,201,212
Medical Center Project Revenue Bonds, 1995 Series A,
5.875%, 11/01/15
25
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
North Carolina - 1.4%
$ 7,000 County of Cumberland, North Carolina, Hospital Facility Revenue 10/09 at 101 A- $ 6,211,520
Bonds (Cumberland County Hospital System Inc.), Series 1999
(Cape Fear Valley Health System), 5.250%, 10/01/19
5,160 City of Durham, Urban Redevelopment Mortgage Revenue Bonds 8/07 at 105 AAA 5,512,996
(Durham Hosiery Mill Project) (FHA-Insured), Series 1987,
7.500%, 8/01/29 (Alternative Minimum Tax)
1,760 North Carolina Housing Finance Agency, Single Family Revenue 3/06 at 102 AA 1,794,760
Bonds, Series JJ (1985 Resolution), 6.450%, 9/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 1.1%
4,035 Mercer County, North Dakota, Pollution Control Revenue Bonds 1/01 at 102 A 4,139,547
(Basin Electric Power Cooperative-Antelope Valley Station),
1984 Series B, 7.000%, 1/01/19
5,000 North Dakota Housing Finance Agency, Housing Finance Program, 7/10 at 100 Aa3 5,063,400
Series 2000C, Mortgage Revenue Bonds, 6.150%, 7/01/31
(Alternative Minimum Tax)
1,205 North Dakota Housing Finance Agency, Housing Finance Program 1/07 at 102 Aa3 1,234,860
Bonds, Home Mortgage Finance Program, 1996 Series B,
6.400%, 1/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 1.3%
2,000 Ohio Housing Finance Agency, Multifamily Housing Mortgage 1/08 at 102 Aa2 1,844,960
Revenue Bonds, Series 1998B-1 (FHA- Insured Mortgage
Loan - Courtyards of Kettering Project), 5.550%, 1/01/40
(Alternative Minimum Tax)
5,000 Ohio Water Development Authority, Collateralized Water 8/02 at 102 A2 5,083,900
Development Revenue Refunding Bonds, 1992 Series A
(The Dayton Power and Light Company Project), 6.400%, 8/15/27
6,750 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102 N/R 5,399,663
Revenue Bonds (Bay Shore Power Project), Convertible
Series 1998B, 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Oklahoma - 0.4%
1,000 Tulsa County Industrial Authority (Tulsa, Oklahoma), Recreational 9/02 at 102 A- 1,045,880
Facilities Revenue Bonds, Refunding Series 1992,
6.600%, 9/01/08
2,990 Tulsa County Public Facilities Authority (Tulsa, Oklahoma), 11/02 at 102 A 3,134,148
Recreational Facility Refunding Revenue Bonds, Series 1992,
6.600%, 11/01/08
------------------------------------------------------------------------------------------------------------------------------------
Oregon - 2.9%
13,350 State of Oregon, General Obligation Elderly and Disabled 8/02 at 102 AA 13,835,940
Housing Bonds, 1992 Series B, 6.375%, 8/01/24
4,995 State of Oregon, General Obligation Veterans Welfare Bonds, 10/05 at 102 AA 5,146,349
Series 75, 6.000%, 4/01/27
5,250 State of Oregon, Housing and Community Services Department, 1/10 at 100 Aa2 5,408,130
Mortgage Revenue Bonds (Single Family Mortgage Program),
Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax)
2,805 City of Portland, Oregon, Limited Tax Improvement Bonds, 6/06 at 100 Aa 2,850,693
1996 Series A, 5.550%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 0.4%
2,400 Beaver County Industrial Development Authority (Pennsylvania), 7/05 at 102 A 2,653,368
Collateralized Pollution Control Revenue Refunding Bonds,
Series 1995-A (The Cleveland Electric Illuminating Company -
Beaver Valley Project), 7.750%, 7/15/25
1,000 Delaware Valley Regional Finance Authority, Local Government No Opt. Call AAA 1,010,900
Revenue Bonds, Series 1997B, 5.700%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 1.0%
4,000 The Children's Trust Fund, Tobacco Settlement Asset-Backed 7/10 at 100 Aa3 3,976,280
Bonds, Series 2000, 6.000%, 7/01/26 (WI, settling 11/15/00)
5,000 Commonwealth of Puerto Rico, Public Improvement Refunding 7/08 at 101 AAA 4,328,400
Bonds, Series 1998 (General Obligation Bonds), 4.500%, 7/01/23
1,375 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 A- 1,357,524
Series X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 0.2%
2,135 School District No. 4 of Lexington County, South Carolina, 7/04 at 102 Baa2 2,273,711
Certificates of Participation, Series 1994, 7.000%, 7/01/12
26
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
South Dakota - 1.1%
South Dakota Building Authority, Revenue Bonds, Series 1992:
$ 510 6.700%, 9/01/17 (Pre-refunded to 9/01/02) 9/02 at 102 AAA $ 539,871
9,860 6.700%, 9/01/17 (Pre-refunded to 9/01/04) 9/04 at 100 AAA 10,415,907
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.6%
The Health and Educational Facilities Board of the City of
Johnson City, Tennessee, Hospital Revenue Refunding and
Improvement Bonds, Series 1998C (Johnson City Medical Center
Hospital):
2,740 5.125%, 7/01/25 (Pre-refunded to 7/01/23) 7/23 at 100 AAA 2,572,175
2,110 5.125%, 7/01/25 1/09 at 101 AAA 1,970,023
1,500 Memphis-Shelby County Airport Authority (Tennessee), 3/10 at 101 AAA 1,547,055
Airport Revenue Bonds Series 1999D, 6.000%, 3/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Texas - 2.2%
855 Baytown Housing Finance Corporation, Single Family Mortgage 9/02 at 103 Aa2 951,111
Revenue Refunding Bonds, Series 1992-A, 8.500%, 9/01/11
3,000 Brazos River Authority (Texas), Revenue Refunding Bonds No Opt. Call AAA 2,734,740
(Houston Lighting and Power Company Project), Series 1998,
5.050%, 11/01/18 (Alternative Minimum Tax)
1,635 Garland Independent School District (Dallas County, Texas), 2/07 at 100 AAA 1,412,656
School Building Unlimited Tax Bonds, Series 1997-A,
4.000%, 2/15/15
1,125 Hidalgo County Housing Finance Corporation (Texas), Single Family 4/04 at 102 Aaa 1,155,409
Mortgage Revenue Bonds (GNMA and FNMA Collateralized),
Series 1994A, 7.000%, 10/01/27 (Alternative Minimum Tax)
1,385 Houston Independent School District Public Facility Corporation No Opt. Call AAA 697,555
(Harris County, Texas), Lease Revenue Bonds (Cesar E. Chavez
High School), Series 1998A, 0.000%, 9/15/13
6,630 Houston Independent School District Public Facility Corporation No Opt. Call AAA 3,339,200
(Harris County, Texas), Lease Revenue Bonds (West Side
High School), Series 1998B, 0.000%, 9/15/13
1,000 Humble Independent School District (Harris County, Texas), 2/10 at 100 AAA 777,220
Unlimited Tax Schoolhouse Bonds, Series II 1997, 3.500%, 2/15/18
1,600 Port Arthur Housing Finance Corporation, Single Family 9/02 at 103 A 1,758,240
Mortgage Revenue Refunding Bonds, Series 1992,
8.700%, 3/01/12
7,490 State of Texas, Veterans Housing Assistance Bonds, Series 1993, 12/03 at 102 Aa1 7,791,847
General Obligation Bonds, 6.800%, 12/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Utah - 1.5%
6,000 Redevelopment Agency of Salt Lake County, Utah, Central 3/02 at 102 A 6,054,540
Business District Neighborhood Redevelopment, Junior Lien
Tax Increment Bonds, Series 1992A, 5.800%, 3/01/15
1,795 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102 AAA 1,828,818
1994 Issue B (Federally Insured or Guaranteed Mortgage
Loans), 6.450%, 7/01/14
1,215 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101 1/2 AAA 1,233,833
1997 Series E2 Class I, 5.875%, 1/01/19 (Alternative Minimum Tax)
1,520 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101 1/2 AAA 1,501,410
1997 Series C, 5.600%, 7/01/18 (Alternative Minimum Tax)
3,000 Municipal Building Authority of Weber County, Utah, Lease %, 12/04 at 102 AAA 3,381,900
Revenue Bonds, Series 1994, 7.500 12/15/19 (Pre-refunded
to 12/15/04)
------------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.7%
6,620 Vermont Housing Finance Agency, Single Family Housing 5/02 at 102 A+ 6,696,593
Bonds, Series 4, 6.400%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
West Virginia - 0.9%
7,000 The County Commission of Harrison County, West Virginia, Solid 5/03 at 102 AAA 7,169,050
Waste Disposal Revenue Bonds (The Potomac Edison Company -
Harrison Station Project), Series B, 6.250%, 5/01/23
(Alternative Minimum Tax)
1,000 The County Commission of Pleasants County, West Virginia, 4/09 at 101 AAA 955,070
Pollution Control Revenue Bonds (West Penn Power
Company - Pleasants Station Project), 1999 Series E,
5.500%, 4/01/29 (Alternative Minimum Tax)
27
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WISCONSIN - 1.1%
$ 6,915 Wisconsin Housing and Economic Development Authority, 1/05 at 102 AA $ 7,143,401
Home Ownership Revenue Bonds, 1995 Series B, 7.100%, 9/01/15
(Alternative Minimum Tax)
3,215 Wisconsin Health and Educational Facilities Authority, Revenue 2/07 at 102 AAA 3,225,251
Bonds, Series 1997 (Marshfield Clinic Project), 5.625%, 2/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 1,017,376 Total Investments (cost $898,297,448) - 98.0% 933,860,558
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4%
$ 4,000 Sabine River Authority of Texas, Collateralized Pollution Control A-1+ 4,000,000
============= Bonds (Texas Utilities Electric Company), Variable Rate
Demand Bonds, 4.750%, 4/01/30 (Alternative Minimum Tax)+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 15,112,369
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 952,972,927
====================================================================================================================
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but
has variable rate and demand features which qualify
it as a short-term security. The rate disclosed is
that currently in effect. This rate changes
periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
28
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Alabama - 3.2%
$ 8,000 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 8,255,040
Revenue Refunding Bonds, Series 1994-D, 5.850%, 9/01/04
(Alternative Minimum Tax)
11,745 Alabama Special Care Facilities Financing Authority of 11/05 at 101 Aaa 10,854,846
Birmingham, Hospital Revenue Bonds (Daughters of Charity
National Health System - Providence Hospital and St. Vincent's
Hospital), Series 1995, 5.000%, 11/01/25
11,000 The DCH Health Care Authority, Health Care Facilities Revenue 12/02 at 102 A+ 10,294,460
Bonds, Series 1993-B, 5.750%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
Arkansas - 0.1%
355 Arkansas Development Finance Authority, Single Family 8/01 at 103 AA 368,483
Mortgage Revenue Refunding Bonds, 1991 Series A (FHA-Insured
or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11
303 City of Jacksonville, Arkansas, Residential Housing Facilities 7/03 at 103 Aaa 319,338
Board, Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 1/01/11
483 Residential Housing Facilities Board of Lonoke County, 4/05 at 103 Aaa 508,838
Arkansas, Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
California - 2.9%
4,780 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 2,429,961
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 Multifamily Housing
Bonds, 1993 Series A:
500 5.750%, 12/01/13 (Alternative Minimum Tax) 6/03 at 102 BB 474,425
3,705 5.900%, 12/01/26 (Alternative Minimum Tax) 11/00 at 100 A 3,704,889
4,500 Los Angeles County Transportation Commission (California), 7/02 at 102 Aaa 4,784,940
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 Housing Authority of the County of Merced (California), 1/04 at 102 Aaa 1,746,899
Multifamily Housing Refunding Revenue Bonds, Series 1993A
(Belmont Park Apartments Project), 5.875%, 1/01/19
2,500 Transmission Agency of Northern California, California-Oregon 5/02 at 102 AAA 2,624,300
Transmission Project, Revenue Bonds, 1992 Series A,
6.500%, 5/01/16
5,000 Airports Commission, City and County of San Francisco, 5/04 at 101 AAA 5,206,750
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 8A, 6.300%, 5/01/25 (Alternative Minimum Tax)
3,545 Redevelopment Agency of the City of San Leandro, Plaza 1 6/03 at 102 A- 3,637,099
and Plaza 2 Redevelopment Projects, 1993 Tax Allocation Bonds,
Series A, 6.125%, 6/01/23
1,945 South Gate Public Financing Authority (Los Angeles County, No Opt. Call AAA 2,201,176
California), Water Revenue Refunding Bonds, 1996 Series A,
6.000%, 10/01/12
------------------------------------------------------------------------------------------------------------------------------------
Colorado - 3.6%
4,000 Colorado Housing and Finance Authority, Single Family Program 10/09 at 105 Aa2 4,439,280
Bonds, 1999 Series C-3, Senior Bonds, 6.750%, 10/01/21
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991D:
6,000 7.500%, 11/15/02 (Alternative Minimum Tax) 11/01 at 102 A 6,275,040
3,040 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 3,630,550
865 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 910,534
3,280 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 3,425,796
210 7.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 215,458
790 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 803,414
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1992C:
1,100 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,167,881
4,140 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 4,321,084
29
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Colorado (continued)
$ 1,190 City and County of Denver, Colorado, Airport System Revenue 11/00 at 102 A $ 1,215,335
Bonds, Series 1990A, 8.000%, 11/15/25 (Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991A:
5,000 8.750%, 11/15/05 (Alternative Minimum Tax) 11/01 at 102 A 5,276,200
315 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 334,672
885 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 A 932,825
------------------------------------------------------------------------------------------------------------------------------------
Connecticut - 0.3%
3,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 3,116,640
Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 4.0%
6,000 District of Columbia, General Obligation Bonds, No Opt. Call AAA 6,246,780
Series 1993B2, 5.500%, 6/01/10
3,240 District of Columbia, Hospital Revenue Refunding Bonds 8/02 at 102 A-*** 3,430,447
(Medlantic Healthcare Group, Inc. Issue), Series 1992B,
6.750%, 8/15/07 (Pre-refunded to 8/15/02)
4,250 District of Columbia, Hospital Revenue Refunding Bonds 8/06 at 102 AAA 4,455,445
(Medlantic Healthcare Group, Inc. Issue), Series 1993A,
5.750%, 8/15/14
8,800 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 9,387,048
Series 1993A, 6.000%, 6/01/07
4,815 District of Columbia, General Obligation Bonds, Series 1993E, 6/03 at 102 AAA 5,041,161
6.000%, 6/01/09
3,305 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103 AAA 3,350,080
Single Family Mortgage Revenue Bonds, Series 1988F-1,
5.850%, 12/01/14 (Alternative Minimum Tax)
4,500 District of Columbia, University Revenue Refunding Bonds 10/02 at 102 AAA 4,773,645
(The Howard University Issue), Series 1992A,
6.750%, 10/01/12 (Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.5%
5,000 Martin County Industrial Development Authority (Florida), 12/04 at 102 BBB- 5,059,100
Industrial Development Revenue Bonds (Indianatown
Cogeneration - L.P. Project), Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
9,500 City of Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100 AAA 8,810,490
Series 1998, 5.000%, 10/01/28
------------------------------------------------------------------------------------------------------------------------------------
Georgia - 1.6%
3,400 City of Atlanta (Georgia), Water and Wastewater Revenue No Opt. Call AAA 3,436,890
Bonds, Series 1999A, 5.500%, 11/01/22
1,880 Development Authority of Burke County, Georgia, Pollution Control No Opt. Call AAA 1,938,656
Revenue Bonds (Oglethorpe Power Corporation - Vogtle
Project), Series 1992, 7.500%, 1/01/03
2,880 Municipal Electric Authority of Georgia, General Power Revenue No Opt. Call A 3,591,936
Bonds, 1992B Series, 8.250%, 1/01/11
5,500 Municipal Electric Authority of Georgia, General Power Revenue No Opt. Call AAA 5,697,450
Bonds, 1993B Series, 5.700%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.5%
City and County of Honolulu, Hawaii, General Obligation Bonds,
Refunding and Improvement Series 1993B:
1,580 5.000%, 10/01/13 No Opt. Call Aaa 1,580,679
3,420 5.000%, 10/01/13 No Opt. Call AA- 3,363,980
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 11.6%
4,000 Board of Education of the City of Chicago, General Obligation No Opt. Call AAA 4,427,640
Lease Certificates, 1992 Series A, 6.250%, 1/01/15
5,000 City of Chicago (Illinois), Sales Tax Revenue Bonds, Series 1998, 7/08 at 102 AAA 4,700,450
5.250%, 1/01/28
City of Chicago (Illinois), Senior Lien Water Revenue Bonds, Series 2000:
7,555 0.000%, 11/01/13 No Opt. Call AAA 3,803,187
7,550 0.000%, 11/01/14 No Opt. Call AAA 3,570,999
7,555 0.000%, 11/01/15 No Opt. Call AAA 3,352,833
7,555 0.000%, 11/01/16 No Opt. Call AAA 3,141,671
Cook County School District 99 (Cicero), General Obligation School
Bonds, Series 1997:
1,455 8.500%, 12/01/13 No Opt. Call Aaa 1,919,683
1,685 8.500%, 12/01/15 No Opt. Call Aaa 2,252,710
30
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Illinois (continued)
$ 6,205 Illinois Development Finance Authority, Revenue Bonds (Greek 4/11 at 105 Aaa $ 7,174,345
American Nursing Home Project), Series 2000A, 7.600%, 4/20/40
2,145 Illinois Development Finance Authority, Child Care Facility Revenue 9/02 at 102 N/R 2,203,108
Bonds, Series 1992 (Illinois Facilities Fund Project), 7.400%, 9/01/04
1,945 Illinois Educational Facilities Authority, Revenue Bonds, Chicago 1/01 at 100 AAA 2,145,277
College of Osteopathic Medicine, Series A, 8.750%, 7/01/05
10,360 Illinois Educational Facilities Authority, Revenue Refunding Bonds, 7/01 at 102 AAA 10,749,122
Loyola University of Chicago, Series 1991-A, 7.125%, 7/01/21
(Pre-refunded to 7/01/01)
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 2,635,920
Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19
2,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 7/02 at 102 Baa2*** 2,111,920
(Trinity Medical Center), 7.000%, 7/01/12 (Pre-refunded to 7/01/02)
Illinois Health Facilities Authority, Revenue Refunding Bonds,
Series 1993C (Lutheran General Health System):
5,705 7.000%, 4/01/08 No Opt. Call A+ 6,275,842
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,614,123
8,190 Illinois Housing Development Authority, Multifamily Program 9/04 at 102 A+ 8,558,304
Bonds, Series 5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly 11/02 at 102 A 3,480,792
Housing Revenue Bonds (Skyline Towers Apartments),
Series 1992B, 6.875%, 11/01/17
2,805 Illinois Housing Development Authority, Section 8 Elderly 1/03 at 102 A*** 2,966,764
Housing Revenue Bonds (Morningside North Development),
Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03)
2,025 Long Creek Township, Macon County, Illinois, Waterworks 5/03 at 100 N/R 2,071,676
Refunding Revenue Bonds, Series 1993, 7.250%, 5/01/23
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,671,712
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20
14,375 Village of Wheeling, Illinois, Multifamily Housing Revenue 2/03 at 100 AAA 14,510,700
Bonds, Series 1993A (FHA-Insured Mortgage Loan - Arlington
Club Project), 6.400%, 2/01/40
4,325 Town of Wood River, Wood River Township Hospital, 2/04 at 102 N/R 3,611,591
Madison County, Illinois, General Obligation Bonds (Alternate
Revenue Source), Series 1993, 6.625%, 2/01/14
4,120 Town of Wood River, Wood River Township Hospital, Madison 2/04 at 102 N/R 3,400,483
County, Illinois, General Obligation Tort Immunity Bonds,
Series 1993, 6.500%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
Indiana - 2.7%
2,250 Indiana Bond Bank, Special Program Bonds, Series 1992B, 2/03 at 102 A+ 2,369,655
6.750%, 8/01/12
3,200 Indiana Health Facility Financing Authority, Hospital Revenue 9/02 at 102 A2 3,347,040
Refunding Bonds, Series 1992 (The Methodist Hospitals, Inc.),
6.750%, 9/15/09
2,100 City of Indianapolis, Indiana, Economic Development Revenue 7/03 at 103 N/R 1,717,821
Bonds, Series 1993A (The Meadows-Section 8 Assisted
Project), 6.000%, 7/01/23 (Alternative Minimum Tax)
6,065 City of Indianapolis, Indiana, Multifamily Housing First Mortgage 5/09 at 102 N/R 5,061,424
Revenue Bonds, Series 1999A (Keystone at Fall Creek
Apartments), 6.500%, 5/01/31 (Alternative Minimum Tax)
2,000 Hospital Authority of the City of Kokomo (Indiana), Hospital 8/03 at 102 N/R*** 2,095,800
Revenue Refunding Bonds, Series 1993 (Saint Joseph
Hospital and Health Center of Kokomo), 6.250%, 8/15/05
3,615 Mooresville Consolidated School Building Corporation, 1/04 at 101 N/R*** 3,812,632
First Mortgage Bonds, Series 1994A (Morgan County, Indiana),
6.200%, 7/15/15 (Pre-refunded to 1/15/04)
5,900 Muncie School Building Corporation, First Mortgage Bonds, 7/01 at 102 N/R*** 6,103,845
Series 1992, 6.625%, 7/15/14 (Pre-refunded to 7/15/01)
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 0.5%
465 City of Davenport, Iowa, Home Ownership Mortgage Revenue 9/04 at 102 A1 479,187
Refunding Bonds, Series 1994, 7.900%, 3/01/10
3,810 Iowa Finance Authority, Hospital Revenue Bonds 7/02 at 102 N/R*** 4,010,330
(Trinity Regional Hospital Project), Series 1993,
7.000%, 7/01/12 (Pre-refunded to 7/01/02)
31
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Kansas - 1.8%
$ 910 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103 Aa2 $ 949,330
Refunding Bonds, Series 1994, 7.100%, 5/01/12
Kansas Development Finance Authority, Multifamily Housing
Refunding Revenue Bonds (First Kansas State Partnership - L.P.
Project), Series 1998Y:
7,910 6.000%, 12/01/20 (Alternative Minimum Tax) 12/08 at 101 N/R 7,197,705
2,460 6.125%, 12/01/28 (Alternative Minimum Tax) 12/08 at 101 N/R 2,244,406
620 Labette County, Kansas, Single Family Mortgage Revenue 6/03 at 103 Aa2 642,047
Refunding Bonds, 1993 Series A, 8.400%, 12/01/11
6,825 Sedgwick County, Kansas, Unified School District No. 259, 9/10 at 100 AA 5,471,876
Wichita, General Obligation Bonds, Series 2000, 3.500%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 0.6%
5,785 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102 AAA 5,962,715
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.1%
3,330 Clover Dale Housing Corporation, 1995 Multifamily Mortgage 4/01 at 100 AA- 3,337,759
Revenue Refunding Bonds (Clover Dale Plaza - FHA-Insured
Mortgage - Section 8 Assisted Project), Series A, 6.550%, 2/01/22
6,080 Orleans Levee District (A Political Subdivision of the State 12/05 at 103 AAA 6,410,752
of Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/14
------------------------------------------------------------------------------------------------------------------------------------
Maine - 2.3%
7,520 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A 7,672,280
Student Loan Revenue Bonds, Series 1994-2, 6.250%, 11/01/06
(Alternative Minimum Tax)
13,835 Maine State Housing Authority, Mortgage Purchase Bonds, 5/10 at 100 AA 13,989,399
2000 Series C-1, 6.050%, 11/15/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.5%
4,625 Community Development Administration, Maryland Department 1/07 at 102 Aa2 4,734,428
of Housing and Community Development, Housing Revenue
Bonds, Series 1996A, 5.875%, 7/01/16
6,800 Housing Opportunities Commission of Montgomery County 7/06 at 102 Aa2 7,002,368
(Montgomery County, Maryland), Multifamily Housing
Revenue Bonds, 1996 Series B, 6.400%, 7/01/28
(Alternative Minimum Tax)
2,315 Housing Opportunities Commission of Montgomery County, 7/10 at 100 Aaa 2,348,475
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.125%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 0.6%
2,000 Massachusetts Housing Finance Agency, Housing Project 4/03 at 102 A+ 2,050,860
Revenue Bonds, 6.300%, 10/01/13
3,250 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,407,170
Revenue Bonds, SEMASS Project, Series 1991B,
9.250%, 7/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 4.8%
5,000 City of Detroit, Michigan, Convention Facility Limited Tax Revenue 9/03 at 102 AAA 5,037,450
Refunding Bonds (Cobo Hall Expansion Project),
Series 1993, 5.250%, 9/30/12
10,225 City of Detroit, Michigan, Water Supply System Revenue Bonds 7/07 at 101 AAA 9,379,904
(Senior Lien), Series 1997-A, 5.000%, 7/01/27
City of Hancock Hospital Finance Authority, FHA-Insured Mortgage
Hospital Revenue Bonds (Portage Health System, Inc.), Series 1998:
2,545 4.625%, 8/01/18 8/08 at 100 AAA 2,459,844
4,400 5.450%, 8/01/47 8/08 at 100 AAA 4,123,680
2,000 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call BBB- 1,945,220
and Refunding Bonds (The Detroit Medical Center Obligated
Group), Series 1993B, 5.000%, 8/15/03
3,150 Michigan State Hospital Finance Authority, Hospital Revenue 8/02 at 102 AAA 3,216,245
and Refunding Bonds, Series 1992 (Bon Secours Health
System Project), 6.100%, 8/15/22
32
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Michigan (continued)
$ 10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- $ 7,692,720
Bonds (The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/23
3,750 Michigan Strategic Fund, Limited Obligation Refunding Revenue 6/03 at 102 AAA 3,896,475
Bonds (Consumers Power Company Project), Collateralized
Series 1993B, 5.800%, 6/15/10
6,000 County of Monroe, Michigan, Pollution Control Revenue Bonds 9/03 at 102 AAA 6,329,520
(The Detroit Edison Company Project), Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 1.3%
4,905 Minneapolis/St. Paul, Minnesota, Housing Finance Board, 11/07 at 102 AAA 4,855,460
Single Family Mortgage Revenue Bonds, FNMA/GNMA Backed
Program, Phase XI-AB, 5.800%, 11/01/30 (Alternative Minimum Tax)
4,000 Minneapolis Community Development Agency, Limited Tax 12/02 at 102 A- 4,223,480
Supported Development Revenue Bonds, Series 1992G-3,
7.375%, 12/01/12
2,720 City of Minnetonka, Minnesota, Multifamily Housing Revenue 6/04 at 102 AAA 2,812,779
Refunding Bonds, Series 1994A (GNMA Collateralized
Mortgage Loan - Brier Creek Project), 6.450%, 6/20/24
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.8%
2,000 Mississippi Higher Education Assistance Corporation, 9/02 at 102 Aaa 2,063,820
Student Loan Revenue Bonds, Senior Series 1993-B,
5.800%, 9/01/06 (Alternative Minimum Tax)
950 Mississippi Housing Finance Corporation, Single Family 4/01 at 101 AAA 960,840
Mortgage Purchase Revenue Bonds, Series 1989 (GNMA
Mortgage-Backed Securities Program), 8.250%, 10/15/18
(Alternative Minimum Tax)
1,245 Mississippi Home Corporation, Single Family Mortgage Revenue 4/05 at 102 Aaa 1,266,377
Bonds, Series 1995B, 6.550%, 4/01/21 (Alternative Minimum Tax)
1,695 Mississippi Regional Housing Authority No. V, Multifamily 1/01 at 105 AAA 1,744,138
Housing Revenue Refunding Bonds, Series 1993A (FHA-Insured
Mortgage Loan - Deville Apartments - Section 8 Assisted Project),
7.050%, 7/01/21
1,735 Mississippi Educational Facilities Authority, For Private 6/03 at 102 N/R 1,703,718
Nonprofit Institutions of Higher Learning, Educational Facilities
Revenue Bonds (Tougaloo College Project), Series 1993A,
6.500%, 6/01/18
------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 2.7%
10,000 Energy America (Nebraska), Natural Gas Revenue Note No Opt. Call N/R 9,752,500
(Metropolitan Utility District Project), Series 1997B,
5.700%, 7/01/08
9,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate No Opt. Call AAA 9,612,000
Bonds, Series A-5A, 6.250%, 6/01/18 (Alternative Minimum Tax)
5,075 Airport Authority of the City of Omaha (Nebraska), Airport 1/02 at 102 A1 5,365,290
Facilities Revenue Refunding Bonds, Series 1991, 8.375%, 1/01/14
------------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.8%
4,500 Clark County School District, Nevada, General Obligation - No Opt. Call AAA 5,228,685
Limited Tax School Improvement Bonds (Current Coupon Bonds),
Series 1991A, 7.000%, 6/01/10
1,725 Nevada Housing Division, Single Family Program Senior 4/04 at 102 A1 1,773,818
Bonds, 1993 Issue B, 6.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 0.2%
1,545 New Hampshire Housing Finance Authority, Single Family 1/07 at 102 Aa3 1,599,214
Mortgage Acquisition Revenue Bonds, 1996 Series C,
6.200%, 7/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
New Jersey - 0.2%
2,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 2,271,200
Series 1991C, 6.500%, 1/01/16
------------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.2%
280 New Mexico Educational Assistance Foundation, Student Loan 12/02 at 101 A 286,502
Revenue Bonds, 1992 Series One, Student Loan Revenue
Bonds, Subordinate 1992 Series One B, 6.850%, 12/01/05
(Alternative Minimum Tax)
1,740 New Mexico Mortgage Finance Authority, Single Family 7/02 at 102 AAA 1,779,776
Mortgage Purchase Refunding Senior Bonds, 1992 Series A2,
6.900%, 7/01/24
33
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York - 12.5%
$ 30,050 Atlas Community Housing Opportunity Trust, Series 1999-1, 6/09 at 100 N/R $ 28,565,530
Class A Certificates, 6.750%, 6/01/34
10,000 Erie County Industrial Development Agency (New York), Solid Waste 12/10 at 103 N/R 7,000,000
Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna
Project), 9.050%, 12/01/25 (Alternative Minimum Tax)
1,000 The City of New York, General Obligation Bonds, Fiscal No Opt. Call A 1,081,890
1995 Series A, 7.000%, 8/01/04
3,500 The City of New York, General Obligation Bonds, Fiscal No Opt. Call A 3,704,400
1996 Series B, 6.750%, 8/15/03
14,310 The City of New York, General Obligation Bonds, Fiscal No Opt. Call A 15,344,613
1996 Series F, 6.500%, 2/01/05
The City of New York, General Obligation Bonds, Fiscal 1991 Series D:
4,315 9.500%, 8/01/02 (Pre-refunded to 8/01/01) 8/01 at 101 1/2 Aaa 4,543,393
85 9.500%, 8/01/02 8/01 at 101 1/2 A 89,293
16,915 New York City Transitional Finance Authority, Future Tax Secured 5/08 at 101 AA 15,513,761
Bonds, Fiscal 1998 Series C, 5.000%, 5/01/26
New York City Transitional Finance Authority, Future Tax Secured
Bonds, Fiscal 2000 Series C:
3,850 5.875%, 11/01/16 5/10 at 101 AA 4,050,239
5,000 5.500%, 11/01/24 5/10 at 101 AA 4,937,700
9,705 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 9,931,903
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series B, 6.200%, 8/15/22
4,200 New York State Medical Care Facilities Finance Agency, FHA-Insured 2/05 at 102 AA 4,309,200
Mortgage Project Revenue Bonds, 1995 Series B, 6.150%, 2/15/35
New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds, 1994 Series
A:
4,875 6.200%, 2/15/21 (Pre-refunded to 2/15/04) 2/04 at 102 AA*** 5,114,850
3,365 6.200%, 2/15/21 2/04 at 102 AA 3,467,599
7,500 New York State Thruway Authority, General Revenue Bonds, 1/05 at 102 AAA 8,075,400
Series C, 6.000%, 1/01/15 (Pre-refunded to 1/01/05)
------------------------------------------------------------------------------------------------------------------------------------
North Carolina - 0.2%
2,000 North Carolina Municipal Power Agency Number 1, Catawba No Opt. Call AAA 2,161,860
Electric Revenue Bonds, Series 1992, 6.000%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
North Dakota - 0.9%
7,925 Mercer County, North Dakota, Pollution Control Revenue 1/01 at 102 A 8,130,337
Bonds (Basin Electric Power Cooperative - Antelope Valley
Station), 1984 Series B, 7.000%, 1/01/19
520 City of Minot, North Dakota, Single Family Mortgage Revenue 8/03 at 102 Aa 540,306
Refunding Bonds, Series 1993, 7.700%, 8/01/10
------------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.0%
4,500 Akron, Bath and Copley Joint Township Hospital District, 11/02 at 102 Baa1 4,530,060
Ohio, Hospital Facilities Revenue Bonds, Series 1992 (Summa
Health System Project), 6.250%, 11/15/07
3,000 County of Franklin, Ohio, Development Revenue Bonds, 10/09 at 101 A 3,071,370
Series 1999, American Chemical Society Project, 5.800%, 10/01/14
1,000 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue 1/05 at 103 Aa 939,820
Bonds, Series 1994A (FHA-Insured Mortgage Loan - Hamilton
Creek Apartments Project), 5.550%, 7/01/24
(Alternative Minimum Tax)
3,375 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102 Aaa 3,503,925
Bonds (GNMA Mortgage-backed Securities Programs),
1995 Series A-1, 6.300%, 9/01/17
1,630 The Student Loan Funding Corporation, Cincinnati, Ohio, Student No Opt. Call A1 1,637,188
Loan Revenue Bonds, Series 1986A, 5.500%, 12/01/01
(Alternative Minimum Tax)
4,370 City of Toledo, Ohio, General Obligation - Limited Tax Various 12/04 at 102 AAA 4,604,232
Purpose Improvement Bonds, Series 1994, 5.750%, 12/01/09
34
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oklahoma - 1.9%
$ 1,000 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101 Aaa $ 1,025,200
Revenue Bonds, 2000 Series C-2 (Homeownership Loan
Program), 6.200%, 9/01/28 (Alternative Minimum Tax)
Oklahoma County Finance Authority, Multifamily Housing First
Mortgage Revenue Bonds, Series 1998A (Multiple Apartments
Project):
3,495 7.000%, 4/01/18# 4/06 at 102 N/R 1,223,250
7,000 7.125%, 4/01/28# 4/06 at 102 N/R 2,450,000
10,000 Tulsa County Industrial Authority (Oklahoma), First Mortgage 3/11 at 101 N/R 9,032,900
Multifamily Housing Revenue Bonds, Series 1999
(Stoneridge Apartments Project), 6.125%, 3/01/39
(Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Hospital Revenue and Refunding No Opt. Call AAA 3,746,678
Bonds (Hillcrest Medical Center Project), Series 1996,
6.500%, 6/01/09
------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico - 2.0%
12,390 Commonwealth of Puerto Rico, Public Improvement Refunding No Opt. Call AAA 14,389,994
Bonds, Series 1997 (General Obligation Bonds), 6.500%, 7/01/13
5,000 Commonwealth of Puerto Rico, Public Improvement Refunding 7/08 at 101 AAA 4,328,400
Bonds, Series 1998 (General Obligation Bonds), 4.500%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.6%
Piedmont Municipal Power Agency, Electric Revenue Refunding
Bonds, Series 1991:
5,000 6.250%, 1/01/21 No Opt. Call AAA 5,475,600
5,750 4.000%, 1/01/23 1/01 at 100 AAA 4,488,680
5,085 Piedmont Municipal Power Agency (South Carolina), Electric No Opt. Call AAA 5,246,347
Revenue Bonds, 1998A Refunding Series, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.8%
5,000 The Metropolitan Government of Nashville and Davidson County 5/08 at 102 AA 4,771,400
(Tennessee), Electric System Revenue Bonds, 1998 Series A,
5.200%, 5/15/23
2,200 Tennessee Housing Development Agency, Mortgage Finance 7/04 at 102 AA 2,277,704
Program Bonds, 1994 Series A, 6.900%, 7/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Texas - 7.8%
1,000 Alliance Airport Authority, Inc. (Texas), Special Facilities 12/00 at 102 Baa1 1,021,000
Revenue Bonds, Series 1990 (American Airlines, Inc. Project),
7.500%, 12/01/29 (Alternative Minimum Tax)
6,060 Alliance Airport Authority, Inc. (Texas), Special Facilities No Opt. Call Baa1 6,560,374
Revenue Bonds, Series 1991 (American Airlines, Inc. Project),
7.000%, 12/01/11 (Alternative Minimum Tax)
3,345 Columbia-Brazoria Independent School District (Brazoria 2/09 at 100 AAA 2,904,196
County, Texas), Unlimited Tax School Building Bonds,
Series 1999, 4.750%, 2/01/25
6,000 Garland Housing Finance Corporation (Texas), Multifamily 12/11 at 101 N/R 6,140,160
Housing Mortgage Revenue Bonds (Edgewood Drive
Apartments), Series 2000, 7.500%, 6/01/40
(Alternative Minimum Tax)
16,960 Harris County Housing Finance Corporation (Texas), Multifamily 12/10 at 105 N/R 17,191,504
Housing Bonds (Coolwood Oaks and Haverstock Hill Apartments),
Series A, 8.250%, 12/01/31
2,500 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/01 at 102 AAA 2,576,600
Bonds, Series 1991A, 6.750%, 7/01/21 (Alternative Minimum Tax)
5,000 City of Houston, Texas, Water and Sewer System, Junior Lien 12/07 at 102 AAA 4,594,950
Revenue Refunding Bonds, Series 1997D, 5.000%, 12/01/25
5,000 Lower Neches Valley Authority, Industrial Development 3/08 at 101 AAA 4,729,650
Corporation (Texas), Refunding Revenue Bonds, Series 1998
(Mobil Oil Refining Corporation Project), 5.550%, 3/01/33
960 The Midland Housing Finance Corporation (Midland, Texas), 11/05 at 103 Aaa 1,048,040
Single Family Mortgage Revenue Refunding Bonds, Series 1992A,
8.450%, 12/01/11
2,215 North Texas Higher Education Authority Inc., Student Loan 4/03 at 102 A 2,297,996
Revenue Bonds, Series 1993D, 6.300%, 4/01/09
(Alternative Minimum Tax)
3,410 Retama Development Corporation, Special Facilities Revenue No Opt. Call AAA 4,593,406
Bonds (Retama Park Racetrack Project), Series 1993,
8.750%, 12/15/12
35
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Texas (continued)
$ 4,538 General Services Commission (An Agency of the State of Texas), 9/01 at 101 A $ 4,679,378
as Lessee, Participation Interests, 7.500%, 9/01/22
5,550 State of Texas, College Student Loan General Obligation Bonds, 8/10 at 100 Aa1 4,981,125
Series 2000, 5.000%, 8/01/24 (WI, settling 11/09/00)
8,500 Travis County Health Facilities Development Corporation, 11/03 at 102 Aaa 8,674,335
Hospital 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%
4,845 City of Bountiful, Davis County, Utah Hospital Revenue 12/08 at 101 N/R 4,024,257
Refunding Bonds (South Davis Community Hospital Project),
Series 1998, 5.750%, 12/15/18
6,000 Intermountain Power Agency (Utah), Power Supply Revenue 7/07 at 102 AAA 6,095,580
Refunding Bonds, 1997 Series B, 5.750%, 7/01/19
Intermountain Power Agency (Utah), Power Supply Revenue
Bonds, Series 1996A:
5,065 6.150%, 7/01/14 7/06 at 102 A+*** 5,358,618
2,935 6.150%, 7/01/14 7/06 at 102 A+ 3,089,675
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 1.2%
2,645 Suffolk Redevelopment and Housing Authority, Multifamily 7/02 at 104 Baa2 2,767,728
Housing Revenue Refunding Bonds, Series 1994 (Chase Heritage
at Dulles Project), 7.000%, 7/01/24 (Mandatory put 7/01/04)
9,405 Upper Occoquan Sewage Authority (Virginia), Regional Sewerage 7/06 at 100 AAA 8,191,473
System Revenue Bonds, Series of 1995A, 4.750%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
Washington - 9.7%
1,050 City of Bellevue, King County, Washington, Water and Sewer 7/04 at 100 Aa2 1,087,811
Revenue Refunding Bonds, Series 1994, 5.875%, 7/01/09
1,855 Public Utility District No. 1 of Chelan County, Washington, 7/09 at 101 AA 1,885,663
Chelan Hydro Consolidated System Revenue Bonds,
Series 1999A, 6.200%, 7/01/34 (Alternative Minimum Tax)
1,035 Covington Water District, King County, Washington, Water 3/05 at 100 AAA 1,059,592
Improvement and Refunding Revenue Bonds, Series 1995,
6.050%, 3/01/20
1,655 City of Everett, Washington, Limited Tax General Obligation 9/07 at 100 Aaa 1,606,922
Bonds, Series 1997, 5.125%, 9/01/17
1,000 Port of Seattle, Washington, Revenue Bonds, Series 1990A, 12/00 at 100 Aa2*** 1,001,310
6.000%, 12/01/14 (Pre-refunded to 12/01/00)
1,000 Seattle Indian Services Commission, Special Obligation Bonds, 11/04 at 100 AA+ 1,026,200
Series 1994, 6.000%, 11/01/16
1,640 Housing Authority of Skagit County, Low-Income Housing 11/04 at 104 AAA 1,735,251
Assistance Revenue Bonds, Series 1993 (GNMA Collateralized
Mortgage Loan - Sea Mar Project), 7.000%, 6/20/35
1,500 Mukilteo School District No. 6, Snohomish County, Washington, No Opt. Call AAA 1,601,745
Unlimited Tax General Obligation and Refunding Bonds,
Series 1993, 5.700%, 12/01/12
1,570 Spokane Downtown Foundation, Parking Revenue Bonds, 8/08 at 102 N/R 1,148,926
Series 1998 (River Park Square Project), 5.600%, 8/01/19
4,705 City of Tacoma, Washington, Sewer Revenue Refunding No Opt. Call AAA 5,719,492
Bonds, 1994 Series B, 8.000%, 12/01/08
2,000 State of Washington, General Obligation Bonds, 5/04 at 100 AA+ 2,036,860
Series 1994B, 6.000%, 5/01/19
1,250 Washington Health Care Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 1,316,863
Refunding Series 1992 (Franciscan Health System/Saint Clare
Hospital, Tacoma), 6.625%, 7/01/20 (Pre-refunded to 7/01/02)
2,000 Washington Health Care Facilities Authority, Revenue Bonds, 10/02 at 102 AAA 2,098,520
Series 1992 (The Children's Hospital and Medical Center,
Seattle), 6.125%, 10/01/13
1,400 Washington Health Care Facilities Authority, Revenue Bonds, 11/02 at 102 AAA 1,475,376
Series 1992 (Swedish Hospital Medical Center, Seattle),
6.300%, 11/15/22 (Pre-refunded to 11/15/02)
945 Washington State Housing Finance Commission, Multifamily 1/01 at 101 AAA 965,762
Mortgage Revenue Bonds (GNMA Mortgage-Backed Securities
Program), Series 1989A, 7.700%, 7/01/32 (Alternative Minimum Tax)
2,000 Washington State Health Care Facilities Authority, Revenue 8/08 at 102 AA 1,767,700
Bonds, Series 1998 (Highline Community Hospital),
5.000%, 8/15/21
36
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Washington (continued)
$ 1,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA $ 877,190
Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28
4,500 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 Aa1 4,594,500
Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/13
23,000 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102 Aa1 22,882,930
Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
Washington Public Power Supply System, Nuclear Project No. 2
Refunding Revenue Bonds, Series 1992A:
5,710 6.250%, 7/01/12 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 5,981,396
1,540 6.250%, 7/01/12 7/02 at 102 Aa1 1,600,661
6,475 Washington Public Power Supply System, Nuclear Project No. 2 No Opt. Call Aa1 7,258,475
Refunding Revenue Bonds, Series 1990A, 7.250%, 7/01/06
11,000 Washington Public Power Supply System, Nuclear Project No. 3 No Opt. Call Aa1 12,576,740
Refunding Revenue Bonds, Series 1993B, 7.000%, 7/01/09
3,700 Washington Public Power Supply System, Nuclear Project No. 3 7/08 at 102 Aa1 3,469,045
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
1,400 Washington State University, Housing and Dining System Revenue 10/04 at 101 AAA 1,488,660
and Refunding Bonds, Series 1994, 6.375%, 10/01/18
1,000 Yakima-Tieton Irrigation District, Yakima County, Washington, 6/03 at 102 AAA 1,050,850
Refunding Revenue Bonds, Series 1992, 6.125%, 6/01/13
------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 0.8%
7,000 Wisconsin Housing and Economic Development Authority, 7/10 at 100 AA 7,121,940
Home Ownership Revenue Bonds, 2000 Series E,
6.100%, 3/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 895,519 Total Investments (cost $873,476,177) - 94.8% 876,052,198
=============-----------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 0.9%
$ 8,000 Forsyth, Montana, Pollution Control Revenue Bonds VMIG-1 8,000,000
============= (Pacificorp Colstrip), Variable Rate Demand Bonds,
4.700%, 12/01/16 (Alternative Minimum Tax)+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.3% 39,734,652
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 923,786,850
====================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report
of independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices
at later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust
containing sufficient U.S. Government or U.S.
Government agency securities which ensures the
timely payment of principal and interest. Securities
are normally considered to be equivalent to AAA
rated securities.
# Non-income producing security, in the case of a bond,
generally denotes that issuer has defaulted on the
payment of principal or interest or has filed
for bankruptcy.
N/R Investment is not rated.(WI) Security purchased on a
when-issued basis.
+ Security has a maturity of more than one year, but
has variable rate and demand features which qualify
it as a short-term security. The rate disclosed is
that currently in effect. This rate changes
periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
37
<PAGE>
Statement of
NET ASSETS October 31, 2000
<TABLE>
<CAPTION>
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C>
Investments in municipal securities, at market value $1,427,744,787 $933,860,558 $876,052,198
Temporary investments in short-term municipal securities, at
amortized cost, which approximates market value -- 4,000,000 8,000,000
Cash -- 3,527,408 2,263,805
Receivables:
Interest 26,424,555 17,228,219 18,844,844
Investments sold 6,779,184 2,232,186 27,399,900
Other assets 25,696 17,552 347
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,460,974,222 960,865,923 932,561,094
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 14,071,942 -- --
Payable for investments purchased 9,072,682 3,959,880 4,999,625
Accrued expenses:
Management fees 744,393 502,254 487,594
Other 199,312 228,159 251,177
Preferred share dividends payable 227,877 161,787 160,870
Common share dividends payable 4,018,472 3,040,916 2,874,978
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 28,334,678 7,892,996 8,774,244
------------------------------------------------------------------------------------------------------------------------------------
Net assets $1,432,639,544 $952,972,927 $923,786,850
====================================================================================================================================
Preferred shares, at liquidation value $ 525,000,000 $347,000,000 $338,400,000
====================================================================================================================================
Preferred shares outstanding 21,000 13,880 13,536
====================================================================================================================================
Common shares outstanding 63,785,430 41,093,661 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding (net
assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 14.23 $ 14.75 $ 13.54
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
Statement of
OPERATIONS Year Ended October 31, 2000
<TABLE>
<CAPTION>
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME $ 81,660,236 $57,227,088 $55,134,157
---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 8,609,665 5,880,505 5,741,692
Preferred shares - auction fees 1,316,096 850,239 848,318
Preferred shares - dividend disbursing agent fees 55,875 110,229 82,741
Shareholders' servicing agent fees and expenses 152,767 55,549 71,258
Custodian's fees and expenses 187,011 145,899 169,774
Directors' fees and expenses 24,234 16,210 17,483
Professional fees 255,088 48,941 200,688
Shareholders' reports - printing and mailing expenses 227,278 10,861 39,264
Stock exchange listing fees 53,643 36,985 41,379
Investor relations expense 128,973 79,532 78,605
Other expenses 145,293 70,936 78,600
---------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 11,155,923 7,305,886 7,369,802
Custodian fee credit (75,496) (49,833) (59,226)
---------------------------------------------------------------------------------------------------------------------------------
Net expenses 11,080,427 7,256,053 7,310,576
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 70,579,809 49,971,035 47,823,581
---------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions (13,990,162) (541,636) (2,840,014)
Change in net unrealized appreciation (depreciation) of investments 64,295,419 8,913,022 6,074,114
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 50,305,257 8,371,386 3,234,100
---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $120,885,066 $58,342,421 $51,057,681
=================================================================================================================================
</TABLE>
39
<PAGE>
See accompanying notes to financial statements.
Statement of
CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PREMIUM INCOME (NPI) PREMIUM INCOME 2 (NPM) PREMIUM INCOME 4 (NPT)
---------------------------------- -------------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 70,579,809 $ 69,490,071 $ 49,971,035 $ 48,699,868 $ 47,823,581 $ 44,979,576
Net realized gain (loss)
from investment
transactions (13,990,162) (3,286,652) (541,636) 660,037 (2,840,014) 1,550,458
Change in net unrealized
appreciation (depreciation)
of investments 64,295,419 (130,843,202) 8,913,022 (61,112,453) 6,074,114 (66,400,219)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets from operations 120,885,066 (64,639,783) 58,342,421 (11,752,548) 51,057,681 (19,870,185)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net
investment income:
Common shareholders (50,718,989) (54,345,201) (37,973,136) (38,507,522) (35,419,871) (34,088,309)
Preferred shareholders (21,017,392) (15,095,799) (13,958,214) (9,888,106) (13,791,689) (9,968,342)
From and in excess of net
realized gains from
investment transactions:
Common shareholders -- (4,324,653) (715,277) (1,832,537) -- --
Preferred shareholders -- (1,245,222) (203,920) (465,930) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (71,736,381) (75,010,875) (52,850,547) (50,694,095) (49,211,560) (44,056,651)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued
in acquisition of NPW -- -- -- -- -- 32,550,416
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- -- 3,673,867 -- 559,088
Preferred shares:
Net proceeds from sale of shares -- 49,386,100 -- 46,413,934 -- 12,754,386
Net proceeds from shares issued in
acquisition of NPW -- -- -- -- -- 17,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions -- 49,386,100 -- 50,087,801 -- 62,863,890
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets 49,148,685 (90,264,558) 5,491,874 (12,358,842) 1,846,121 (1,062,946)
Net assets at the
beginning of year 1,383,490,859 1,473,755,417 947,481,053 959,839,895 921,940,729 923,003,675
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $1,432,639,544 $1,383,490,859 $952,972,927 $947,481,053 $923,786,850 $921,940,729
====================================================================================================================================
Balance of undistributed
net investment income at
the end of year $ 445,464 $ 1,528,690 $ 465,470 $ 2,414,732 $ 772,462 $ 2,151,560
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
New York Stock Exchange symbols are Nuveen Premium Income Municipal Fund, Inc.
(NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen Premium
Income Municipal Fund 4, Inc. (NPT).
Each Fund 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.
On September 9, 1999, Premium Income 4 (NPT) acquired all of the net assets of
Nuveen Washington Premium Income Municipal Fund (NPW) pursuant to a plan of
reorganization approved by the common shareholders of Washington Premium Income
(NPW) and the preferred shareholders of Premium Income 4 (NPT) and Washington
Premium Income (NPW) on August 17, 1999. The acquisition was accomplished by a
tax-free exchange of 2,351,909 common shares of Premium Income 4 (NPT) for the
2,320,051 common shares of Washington Premium Income (NPW) outstanding on
September 9, 1999. Washington Premium Income's (NPW) net assets at that date of
$49,550,416 included $1,045,588 of net unrealized appreciation and $17,000,000
of preferred shares at liquidation value which were combined with that of
Premium Income 4 (NPT). The combined net assets of Premium Income 4 (NPT)
immediately after the acquisition were $936,836,305.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
October 31, 2000, Premium Income (NPI), Premium Income 2 (NPM) and Premium
Income 4 (NPT) had outstanding when-issued purchase commitments of $9,072,682,
$3,959,880 and $4,999,625, respectively.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. Furthermore, each Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal income tax, to retain such
tax-exempt status when distributed to shareholders of the Funds. All monthly
tax-exempt income dividends paid during the fiscal year ended October 31, 2000,
have been designated Exempt Interest Dividends. Net realized capital gain and
market discount distributions are subject to federal taxation.
41
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of shares outstanding, by Series and in total, for each of the Funds
is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-----------------------------------------------------------------------------
Number of shares:
Series M 3,800 2,000 2,200
Series M2 2,000 -- --
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series W2 -- -- 520
Series Th 3,800 3,000 2,680
Series F 3,800 2,000 1,800
Series F2 -- 1,880 1,328
-----------------------------------------------------------------------------
Total 21,000 13,880 13,536
=============================================================================
Derivative Financial Instruments
The Funds may invest in 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 fiscal year ended October 31, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Organization and Offering Costs
Costs incurred by the Funds in connection with their organization and offering
of Preferred shares were recorded as a reduction of the proceeds from the sale
of the shares.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
42
<PAGE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
PREMIUM INCOME (NPI) PREMIUM INCOME 2 (NPM)
------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/00 10/31/99 10/31/00 10/31/99
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due
to reinvestment of distributions -- -- -- 225,414
-----------------------------------------------------------------------------------------------------------
-- -- -- 225,414
===========================================================================================================
Preferred shares sold -- 2,000 -- 1,880
==========================================================================================================
PREMIUM INCOME 4 (NPT)
---------------------------
YEAR ENDED YEAR ENDED
10/31/00 10/31/99
-----------------------------------------------------------------------------------------------------------
Common shares:
Shares issued in acquisition of NPW -- 2,351,909
Shares issued to shareholders due to reinvestment of distributions -- 37,115
-----------------------------------------------------------------------------------------------------------
-- 2,389,024
===========================================================================================================
Preferred shares sold -- 520
===========================================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2000, to shareholders of record
on November 15, 2000, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0630 $.0740 $.0665
================================================================================
4. Securities Transactions
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the fiscal year ended October
31, 2000, were as follows:
<TABLE>
<CAPTION>
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases:
Long-term municipal securities $261,521,938 $64,869,178 $128,159,944
Short-term municipal securities 67,400,000 42,800,000 131,970,000
Sales and maturities:
Long-term municipal securities 249,997,752 62,350,165 146,683,840
Short-term municipal securities 67,400,000 47,800,000 140,470,000
===========================================================================================
</TABLE>
At October 31, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
$1,405,291,652 $902,668,723 $881,481,455
================================================================================
43
<PAGE>
Notes to
FINANCIAL STATEMENTS (continued)
At October 31, 2000, the Funds had unused capital loss carryforwards available
for federal income tax purposes to be applied against future capital gains, if
any. If not applied, the carryforwards will expire as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------
Expiration year:
2002 $ -- $ -- $ 6,769,037
2003 -- -- 5,281,759
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 3,163,437 -- --
2008 13,982,492 798,984 2,835,520
------------------------------------------------------------------------------
Total $17,145,929 $798,984 $14,886,316
==============================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at October 31, 2000, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Gross unrealized:
appreciation $ 36,647,986 $ 43,599,416 $ 28,113,656
depreciation (14,194,851) (8,407,581) (25,542,913)
--------------------------------------------------------------------------------
Net unrealized appreciation $ 22,453,135 $ 35,191,835 $ 2,570,743
================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
--------------------------------------------------------------------------------
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
44
<PAGE>
7. COMPOSITION OF NET ASSETS
At October 31, 2000, net assets consisted of:
<TABLE>
<CAPTION>
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Preferred shares, $25,000 stated value
per share, at liquidation value $ 525,000,000 $347,000,000 $338,400,000
Common shares, $.01 par value per share 637,854 410,937 432,367
Paid-in surplus 901,249,021 570,703,669 596,497,594
Balance of undistributed net investment income 445,464 465,470 772,462
Accumulated net realized gain (loss)
from investment transactions (17,147,070) (1,170,259) (14,891,594)
Net unrealized appreciation of investments 22,454,275 35,563,110 2,576,021
-----------------------------------------------------------------------------------------------------------------
Net assets $1,432,639,544 $952,972,927 $923,786,850
=================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
=================================================================================================================
</TABLE>
8. INVESTMENT COMPOSITION
At October 31, 2000, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Education and Civic Organizations 6% 3% 4%
Healthcare 10 5 9
Housing/Multifamily 4 7 16
Housing/Single Family 12 11 7
Tax Obligation/General 13 19 12
Tax Obligation/Limited 12 6 8
Transportation 9 6 6
U.S. Guaranteed 8 32 13
Utilities 17 10 16
Water and Sewer 4 1 7
Other 5 -- 2
--------------------------------------------------------------------------------
100% 100% 100%
================================================================================
Certain long-term investments owned by the Funds are either covered by insurance
issued by several private insurers or are backed by an escrow or trust
containing U.S. Government or U.S. Government agency securities, both of which
ensure the timely payment of principal and interest in the event of default (50%
for Premium Income (NPI), 54% for Premium Income 2 (NPM) and 41% for Premium
Income 4 (NPT)). Such insurance or escrow, however, does not guarantee the
market value of the municipal securities or the value of any of the Funds'
shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
45
<PAGE>
Financial HIGHLIGHTS
Selected data for a Common share outstanding throughout each year ended
October 31:
<TABLE>
<CAPTION>
Investment Operations Less Distributions
-------------------------------------- ------------------------------------------------
From From
and In and In
Net Net Excess Excess
Net Investment Investment of Capital of Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
====================================================================================================================================
PREMIUM INCOME (NPI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $13.46 $1.11 $ .78 $1.89 $ (.79) $ (.33) $ -- $ -- $(1.12)
1999 15.66 1.09 (2.10) (1.01) (.85) (.24) (.07) (.02) (1.18)
1998 15.28 1.15 .43 1.58 (.88) (.25) (.06) (.01) (1.20)
1997 14.96 1.14 .37 1.51 (.94) (.20) (.03) -- (1.17)
1996 15.11 1.16 (.09) 1.07 (.97) (.20) (.05) -- (1.22)
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 14.61 1.22 .20 1.42 (.92) (.34) (.02) -- (1.28)
1999 16.15 1.18 (1.48) (.30) (.94) (.24) (.04) (.01) (1.23)
1998 15.80 1.17 .46 1.63 (.93) (.24) (.09) (.02) (1.28)
1997 15.16 1.18 .65 1.83 (.93) (.26) -- -- (1.19)
1996 14.89 1.19 .27 1.46 (.93) (.26) -- -- (1.19)
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 13.50 1.11 .07 1.18 (.82) (.32) -- -- (1.14)
1999 15.05 1.09 (1.56) (.47) (.83) (.24) -- -- (1.07)
1998 14.64 1.07 .42 1.49 (.82) (.26) -- -- (1.08)
1997 14.07 1.08 .58 1.66 (.82) (.27) -- -- (1.09)
1996 13.87 1.10 .19 1.29 (.82) (.27) -- -- (1.09)
====================================================================================================================================
</TABLE>
Total Returns
----------------
Organization
and Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value* Value*
================================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 $ -- $14.23 $11.9375 4.10% 12.03%
1999 (.01) 13.46 12.2500 (14.03) (8.59)
1998 -- 15.66 15.1875 10.60 8.86
1997 (.02) 15.28 14.6250 7.81 8.89
1996 -- 14.96 14.5000 8.24 5.92
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 -- 14.75 13.2500 (2.03) 7.71
1999 (.01) 14.61 14.5000 (8.59) (3.66)
1998 -- 16.15 16.8750 15.98 8.93
1997 -- 15.80 15.5000 16.76 10.72
1996 -- 15.16 14.1250 14.94 8.28
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 -- 13.54 12.3125 3.28 6.58
1999 (.01) 13.50 12.7500 (8.77) (5.03)
1998 -- 15.05 14.8125 14.54 8.58
1997 -- 14.64 13.6875 14.70 10.20
1996 -- 14.07 12.6875 11.57 7.53
================================================================================
Ratio/Supplemental Data
-------------------------------------------------------------
Before Credit
---------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
================================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 $1,432,640 1.28% 8.09% .80% 5.05%
1999 1,383,491 1.18 7.28 .77 4.79
1998 1,473,755 1.14 7.41 .77 5.00
1997 1,449,660 1.05 7.58 .76 5.51
1996 1,304,192 1.03 7.76 .75 5.67
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 952,973 1.23 8.38 .78 5.30
1999 947,481 1.15 7.60 .77 5.07
1998 959,840 1.13 7.35 .77 5.03
1997 943,587 1.14 7.73 .77 5.23
1996 917,603 1.15 7.97 .77 5.34
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------------------
Year Ended 10/31:
2000 923,787 1.27 8.22 .80 5.19
1999 921,941 1.20 7.51 .79 4.92
1998 923,004 1.19 7.23 .79 4.79
1997 905,764 1.21 7.62 .79 4.98
1996 882,563 1.22 7.89 .79 5.11
================================================================================
<TABLE>
<CAPTION>
Ratio/Supplemental Data
------------------------------------------------------------------------------------------ Municipal Auction Rate Cumulative
After Credit** Preferred Stock at End of Year
---------------------------------------------------------- ---------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share
====================================================================================================================================
PREMIUM INCOME (NPI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000 1.27% 8.10% .79% 5.05% 18% $525,000 $25,000 $68,221
1999 1.17 7.29 .77 4.79 15 525,000 25,000 65,881
1998 1.14 7.41 .77 5.00 19 475,000 25,000 77,566
1997 1.05 7.58 .76 5.51 10 475,000 25,000 76,298
1996 1.03 7.76 .75 5.67 16 350,000 25,000 93,157
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.22 8.39 .77 5.30 7 347,000 25,000 68,658
1999 1.15 7.60 .77 5.07 5 347,000 25,000 68,262
1998 1.13 7.35 .77 5.03 7 300,000 25,000 79,987
1997 1.14 7.73 .77 5.23 19 300,000 25,000 78,632
1996 1.15 7.97 .77 5.34 24 300,000 25,000 76,467
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2000 1.26 8.23 .79 5.20 14 338,400 25,000 68,247
1999 1.20 7.51 .79 4.92 14 338,400 25,000 68,110
1998 1.19 7.23 .79 4.79 21 308,400 25,000 74,822
1997 1.21 7.62 .79 4.98 26 308,400 25,000 73,424
1996 1.22 7.89 .79 5.11 20 308,400 25,000 71,544
====================================================================================================================================
</TABLE>
* 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.
** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
46-47 spread
<PAGE>
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial adviser or call us at (800)
257-8787.
48
<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.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 12-month period ended October 31, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
49
<PAGE>
Serving Investors
FOR GENERATIONS
PHOTO OF: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Invest well. Look ahead. LEAVE YOUR MARK.(SM)
LOGO: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive FAN-5-10-00
Chicago, IL 60606 o www.nuveen.com