Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams.
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC.
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC.
SEMIANNUAL REPORT/APRIL 30, 1995
Photo of man reading statement on porch.
CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
9 Amendment to dividend reinvestment plan
10 Getting to know your fund
12 Portfolio of investments
40 Statement of net assets
41 Statement of operations
42 Statement of changes in net assets
44 Notes to financial statements
52 Financial highlights
<PAGE>
Dear shareholder
"Providing secure income remains our top priority"
Photo of Richard J. Franke, Chairman of the Board
The 12 months ended April 30, 1995, was a difficult period for the bond
markets. Since February 1994, the Federal Reserve Board has raised interest
rates seven times to fend off future inflation, and during this period the
prices of all bonds and bond funds declined. Since April 30, the bond markets
have seen marked improvement.
This period of unusually high volatility and uncertainty has brought home a
basic fact about fixed-income securities: interest rates are subject to
change, and sometimes the changes can have dramatic effects on net asset
values. At Nuveen, we believe that the best approach to tax-free investing in
such tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives well, providing an
attractive level of tax free income while holding portfolio values well in
light of market conditions.
Looking first at income, on April 30, current yields on share prices for the
funds covered in this report ranged from 7.16% to 7.35%. To equal these
yields, an investor in the 36% federal income tax bracket would need to earn
at least 11.19% on taxable alternatives. This taxable yield is difficult to
achieve on investments of comparable quality.
The fact that your Fund is leveraged means that its net asset value per
share will be somewhat more sensitive to interest rate changes, both upward
and downward, than unleveraged funds. However, on a total return basis, for
the one-year period ended April 30, NPM and NPT ranked in the top 6 among 65
closed-end national leveraged funds ranked by Lipper Analytical Services.
As we have noted in past reports, the municipal market's supply and demand
fundamentals continue to be sound. To put these trends in perspective, in 1994
the supply of new municipal bonds declined by approximately 40% from 1993, a
trend expected to continue in 1995. At the same time, demand for tax-free
bonds, which has been subdued over the last 12 months as a result of the
market's extraordinary volatility, seems to be resuming its long-term upward
trend as investors recognize the exceptional yields tax-free bonds offer at
current price levels.
This combination of lower supply, which may be reduced further by the high
volume of bond calls expected in 1995, and the likelihood of rising demand
should help support municipal bond prices in the long term.
Through our value approach to investing--a disciplined approach to security
selection and portfolio construction supported by one of the largest and most
respected research teams in the municipal industry--we will continue to pursue
the objectives of your Fund: attractive tax-free income and the enhancement of
portfolio value relative to the municipal bond market.
In closing, I want to welcome new investors to the Nuveen Exchange-Traded
Funds and thank those who have been with us for some time. All of us at Nuveen
appreciate your confidence in our family of municipal bond funds, and we look
forward to helping you reach your tax-free investment objectives in the
future.
Sincerely,
Richard J. Franke
Chairman of the Board
June 15, 1995
<PAGE>
Answering your questions
We spoke recently with Tom Spalding, head of Nuveen's portfolio management
team, and asked him about developments in the municipal market and the outlook
for Nuveen's Tax-Free Exchange-Traded Funds.
How did my Fund hold its value compared with the market?
These have been difficult times for all fixed-income investors. The Bond Buyer
40 index--a measure of municipal market value--declined by 0.37% over the past
12 months and 30-year Treasury bonds declined by 0.90% during the year. The
net asset values of the funds covered in this report, however, either showed
modest gains from levels of a year ago or declined less than the market.
Viewed in that context, the Nuveen funds covered in this report held their
value well for the 12 months ended April 30, 1995.
The fact that these funds are leveraged also increases the impact of
interest rate changes on the funds' net asset values per common share. Keep in
mind, however, that leverage also has enabled these funds to generate a higher
level of tax-free income than unleveraged funds.
Since my Fund is leveraged, will rising short-term interest rates affect my
dividends?
With the long-term bonds in these funds' portfolios yielding over 7.0% and the
average 7-day rate on short-term preferred shares averaging 4.0% over the past
three months, leverage has provided an important income benefit to our
shareholders over the past year.
Although the funds' core dividends are set to provide relatively stable
income, steady increases in short-term interest rates will affect these
dividends over time.
In general, our leveraged funds' dividends continue to be highly attractive
compared with both unleveraged and taxable alternatives. All things
considered, prudent leverage can provide highly attractive returns in a
variety of market conditions to investors who understand its uses, benefits,
and characteristics, and are willing to accept somewhat higher short-term NAV
fluctuations in anticipation of greater long-range returns.
Will bond calls affect my income or the stability of the net asset value of my
shares?
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher are replaced with lower-yielding bonds in today's market. The effect of
bond calls--both on income and net asset values--depends to some extent on the
age of a fund and the types of bonds in its portfolio.
Bond calls may have an effect on asset values especially for older funds
that hold high coupon bonds that may be subject to calls. These bonds also
often are priced at premiums to their par values and to their call prices. As
we saw last year, this premium is a "cushion" that can soften the effect of
rising and falling interest rates. As these bonds approach their call dates,
the premiums gradually approach the bonds' call prices, potentially reducing
net asset values.
Newer funds, on the other hand, primarily hold bonds priced at discounts to
their par values. As a result, these funds will experience fewer calls. At the
same time, these bonds are more sensitive to interest rate changes, both up
and down, and they are unaffected by the declining premium values related to
called bonds.
Of course, we manage all of our portfolios with calls in mind. As part of
our basic management process, we continually evaluate opportunities to sell
bonds approaching their call dates and to reinvest the proceeds in bonds we
think have high potential to provide above-market returns.
<PAGE>
<TABLE>
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC.
NPI
Dividends of NPI remain at an attractive level, though they have been more
affected by bond calls than dividends of newer funds.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0940
6/94 $0.0940
7/94 $0.0940
8/94 $0.0940
9/94 $0.0940
10/94 $0.0940
11/94 $0.0910
12/94 $0.0910
1/95 $0.0910
2/95 $0.0880
3/95 $0.0880
4/95 $0.0880
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.16%
Taxable-equivalent yield 11.19%
Annual total return on NAV 7.70%
Taxable-equivalent total return 12.04%
Share price $14.75
NAV $14.75
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC.
NPM
In keeping with the Fund's objective of providing steady tax-free income,
shareholders enjoyed 12 months of steady dividends. In addition, the Fund paid
two supplemental dividends.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0765 $0.0100
6/94 $0.0765
7/94 $0.0765
8/94 $0.0765 $0.0150
9/94 $0.0765
10/94 $0.0765
11/94 $0.0765
12/94 $0.0765
1/95 $0.0765
2/95 $0.0765
3/95 $0.0765
4/95 $0.0765
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.27%
Taxable-equivalent yield 11.36%
Annual total return on NAV 9.00%
Taxable-equivalent total return 12.94%
Share price $12.625
NAV $14.11
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC.
NPT
Shareholders enjoyed a year of relatively stable dividends and a dividend
increase in October following a fund merger.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/94 $0.0694
6/94 $0.0694
7/94 $0.0694
8/94 $0.0694
9/94 $0.0694
10/94 $0.0720
11/94 $0.0720
12/94 $0.0720
1/95 $0.0720
2/95 $0.0720
3/95 $0.0720
4/95 $0.0720
<CAPTION>
FUND HIGHLIGHTS 4/30/95
<S> <C>
Yield 7.35%
Taxable-equivalent yield 11.48%
Annual total return on NAV 9.18%
Taxable-equivalent total return 13.02%
Share price $11.75
NAV $13.12
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
Amendment to Dividend Reinvestment Plan
Effective October 1, 1995, your Fund's Dividend Reinvestment Plan will be
amended in order to enhance the ability of the Plan Agent to obtain the best
execution when making open-market purchases of Fund shares in connection with
the Plan. As of the effective date, the Plan Agent, United States Trust
Company of New York, may make Plan purchases in advance of the payment date of
the applicable Fund distribution, provided that settlement for such purchases
shall occur no earlier than the payment date for such distribution.
<PAGE>
Getting to know your fund
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1995) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given federal and state income tax rate
would need to obtain from a fully taxable investment to equal the fund's
stated annualized yield on share price. In this report, this tax rate is
assumed to be 36% for shareholders, based on incomes of $117,950-$256,500 for
investors filing singly, $143,600-$256,500 for those filing jointly.
Net Asset Value (NAV)
The market value of all securities and other assets held by an exchange-traded
fund, minus any liabilities. The NAV per share is the fund's net assets, less
the value of its preferred shares, divided by its total number of common
shares outstanding.
Total return on NAV
The percentage change in a fund's NAV per common share for a given period,
assuming reinvestment of all dividends and capital gains distributions, if
any.
Taxable equivalent total return
The total return an investor subject to a given state and federal income tax
rate would need to obtain from a fully taxable investment to equal the Fund's
stated total return on NAV.
Leverage
A fund structure that enhances the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. Preferred shareholders receive short-term tax-free income, while the
proceeds can be used to purchase additional long-term bonds, thus increasing
the portfolio's income for common shareholders.
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as are deemed advisable. No
shares were repurchased during the 6-months ended April 30, 1995. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. (NPI)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.9%
$ 2,365,000 Alaska Housing Finance Corporation, Collateralized
Home Mortgage, 8.750%, 12/01/16 6/98 at 102 Aaa $ 2,522,367
1,950,000 Alaska Housing Finance Corporation, Insured
Mortgage Program, 7.800%, 12/01/30 12/00 at 102 Aa 2,033,480
6,000,000 North Slope Borough General Obligation,
8.350%, 6/30/98 No Opt. Call A- 6,566,040
ARIZONA - 0.7%
3,765,000 Phoenix Industrial Development Authority, Home
Purchase Mortgage (GNMA), Alternative
Minimum Tax, 8.200%, 4/01/22 10/98 at 102 AAA 4,018,874
4,260,000 Pima Industrial Development Authority, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.125%, 9/01/20 3/99 at 102 AAA 4,549,041
CALIFORNIA - 10.0%
13,000,000 California General Obligation, 5.150%, 10/01/19 10/03 at 102 A1 11,191,180
17,000,000 California Health Facilities Financing Authority
(Kaiser Permanente), 5.550%, 8/15/25 2/02 at 101 Aa2 15,325,500
13,425,000 California Public Works Board (Regents of the
University of California), 5.500%, 6/01/21 6/03 at 102 Con (A1) 11,900,994
11,395,000 California Public Works Board (California State
Prison-Madera County), 5.500%, 6/01/15 No Opt. Call A- 10,291,394
12,300,000 Los Angeles Convention and Exhibition Center
Authority, 5.375%, 8/15/18 8/03 at 102 Aaa 11,126,703
7,250,000 Los Angeles County Transportation Commission,
Sales Tax, 5.750%, 7/01/18 7/01 at 100 A1 6,791,728
1,285,000 Martinez Home Mortgage, 10.750%, 2/01/16 No Opt. Call Aaa 1,974,595
4,125,000 Moorpark Redevelopment Agency, Tax Allocation,
6.125%, 10/01/18 10/03 at 102 A- 3,925,680
20,000,000 Pomona Single Family Mortgage (GNMA and FNMA),
7.600%, 5/01/23 No Opt. Call Aaa 24,536,000
5,955,000 Redlands (Loma Linda University Medical Center),
5.000%, 12/01/22 12/03 at 102 Aaa 4,981,596
5,000,000 Sacramento Municipal Utility District,
5.250%, 11/15/20 11/03 at 102 Aaa 4,400,500
3,000,000 San Francisco City and County Redevelopment
Agency, GNMA (South Beach Marina),
5.700%, 3/01/29 3/04 at 102 Aaa 2,741,220
University of California:
6,455,000 5.000%, 9/01/11 9/03 at 102 Aaa 5,757,150
17,540,000 4.750%, 9/01/21 9/03 at 102 Aaa 14,122,682
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 2.8%
City and County of Denver Airport System,
Alternative Minimum Tax:
$ 9,325,000 7.750%, 11/15/13 No Opt. Call Baa $ 10,229,432
8,250,000 7.750%, 11/15/21 11/01 at 102 Baa 8,631,728
8,700,000 6.750%, 11/15/22 11/02 at 102 Baa 8,518,605
3,500,000 7.250%, 11/15/23 11/02 at 102 Baa 3,509,345
4,100,000 Colorado Local Single Family Mortgage (GNMA),
Alternative Minimum Tax, 8.125%, 12/01/20 12/98 at 102 AAA 4,340,014
1,514,825 El Paso County, Single Family Mortgage (FNMA),
8.750%, 6/01/11 No Opt. Call Aaa 1,637,996
DISTRICT OF COLUMBIA - 2.1%
11,280,000 District of Columbia Hospital (Daughters of Charity),
7.875%, 12/01/15 12/98 at 102 Aa 12,319,452
14,800,000 District of Columbia Housing Finance Agency, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 6.375%, 6/01/26 12/04 at 103 AAA 14,342,236
FLORIDA - 5.9%
12,515,000 Florida Housing Finance Agency, Home Mortgage
(GNMA), Alternative Minimum Tax,
8.300%, 6/01/20 12/98 at 103 Aaa 13,515,074
Greater Orlando Aviation Authority, Alternative
Minimum Tax:
1,470,000 8.375%, 10/01/16 (Pre-refunded to 10/01/98) 10/98 at 102 A1 1,659,057
13,530,000 8.375%, 10/01/16 10/98 at 102 A1 15,006,800
Jacksonville Electric Authority:
4,000,000 9.375%, 10/01/05 10/95 at 102 Aa1 4,176,800
17,945,000 7.375%, 10/01/13 (Pre-refunded to 10/01/95) 10/95 at 101 1/2 Aaa 18,449,434
Pensacola Health Facilities Authority (Daughters of
Charity):
11,655,000 7.875%, 1/01/08 (Pre-refunded to 1/01/98) 1/98 at 101 1/2 Aaa 12,691,246
9,435,000 7.875%, 1/01/11 (Pre-refunded to 1/01/98) 1/98 at 101 1/2 Aaa 10,273,866
GEORGIA - 9.0%
Georgia Municipal Electric Authority:
7,700,000 8.375%, 10/01/16 1/98 at 102 A+ 8,479,240
5,850,000 8.125%, 1/01/17 1/98 at 102 A+ 6,353,567
25,205,000 Appling County Development Authority, Pollution
Control (Georgia Power Company),
10.600%, 10/10/15 10/95 at 102 A3 26,291,588
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
GEORGIA (CONTINUED)
$ 2,820,000 Atlanta Urban Residential Finance Authority, Single
Family (GNMA), Alternative Minimum Tax,
8.250%, 10/01/21 10/98 at 103 AAA $ 2,999,408
Burke County Development Authority, Pollution
Control (Georgia Power Company):
11,000,000 10.600%, 10/01/15 10/95 at 102 A3 11,469,920
40,000,000 5.750%, 09/01/23 9/98 at 102 A2 36,908,400
23,420,000 Monroe County Development Authority, Pollution
Control (Georgia Power Company),
6.750%, 10/01/24 10/99 at 102 A2 23,869,196
ILLINOIS - 5.3%
7,590,000 Illinois Development Finance Authority, Pollution
Control (Illinois Power Company), 5.700%, 2/01/24 2/04 at 102 Aaa 6,959,575
8,500,000 Illinois Educational Facilities Authority (The
University of Chicago), 5.600%, 7/01/24 7/03 at 102 Aaa 7,605,715
5,000,000 Illinois Health Facilities Authority (Highland Park
Hospital), 6.200%, 10/01/22 10/02 at 102 Aaa 4,871,200
13,905,000 Illinois Health Facilities Authority (Evangelical
Hospitals Corporation), 8.100%, 1/01/08
(Pre-refunded to 1/01/99) 1/99 at 102 Aaa 15,043,680
7,915,000 Illinois Housing Development Authority, Alternative
Minimum Tax, 8.100%, 2/01/22 8/98 at 102 Aa 8,399,161
9,695,000 Illinois Housing Development Authority,
8.100%, 8/01/17 8/98 at 103 Aa 10,390,325
5,900,000 Chicago O'Hare International Airport, 5.000%, 1/01/18 1/04 at 102 Aaa 5,030,753
5,710,000 Regional Transportation Authority, 9.000%, 6/01/06 No Opt. Call Aaa 7,335,923
3,470,000 Schaumburg Park District General Obligation,
5.450%, 12/01/11 12/03 at 100 Aaa 3,274,431
INDIANA - 3.8%
30,000,000 Indianapolis Redevelopment District, Local
Improvement Bond Bank, 8.500%, 2/01/18
(Pre-refunded to 2/01/98) 2/98 at 102 A+ 33,358,500
2,100,000 Hamilton County Hospital Authority (Daughters of
Charity), 9.875%, 11/01/05 10/95 at 102 Aa 2,191,266
8,000,000 Steuben County Middle School Building Corporation,
6.375%, 7/15/16 7/05 at 102 Aaa 7,998,960
5,300,000 Whitley County Middle School Building Corporation,
6.250%, 7/15/15 1/04 at 102 Aaa 5,307,526
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
IOWA - 0.6%
$ 5,975,000 Iowa Finance Authority (Urbandale Hotel Corporation),
Alternative Minimum Tax, 8.500%, 8/01/16
(Pre-refunded to 7/15/14) 7/14 at 100 AAA $ 7,720,716
KANSAS - 1.0%
11,950,000 Sedgwick County and Shawnee County Mortgage
(GNMA), Alternative Minimum Tax,
8.250%, 11/01/20 11/98 at 103 AAA 12,834,181
LOUISIANA - 0.1%
1,800,000 East Baton Rouge Mortgage Finance Authority
(GNMA and FNMA), 5,300%, 10/01/14 10/03 at 102 Aaa 1,563,498
MASSACHUSETTS - 0.3%
3,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative Minimum
Tax, 9.250%, 7/01/15 7/01 at 103 N/R 3,256,230
MICHIGAN - 1.8%
6,695,000 Michigan Building Authority (University of Michigan,
Adult General Hospital), 7.875%, 12/01/04
(Pre-refunded to 12/01/96) 12/96 at 102 AAA 7,148,720
11,550,000 Michigan State Hospital Finance Authority (St. John
Hospital), 9.200%, 12/01/10 (Pre-refunded to
12/01/95) 12/95 at 102 N/R 12,074,255
4,000,000 Detroit City School District, General Obligation,
5.400%, 5/01/13 5/03 at 102 AA 3,591,720
MINNESOTA - 3.6%
15,305,000 Minnesota Housing Finance Agency, Alternative
Minimum Tax, 8.500%, 7/01/19 7/98 at 102 AA 16,286,357
15,500,000 Minneapolis/St. Paul Housing Finance Board
(GNMA and FNMA), Alternative Minimum Tax,
7.500%, 11/01/27 11/04 at 102 AAA 16,638,165
2,900,000 St. Paul Housing and Redevelopment Authority,
Single Family Mortgage, 7.250%, 9/01/11 No Opt. Call A 3,134,900
9,055,000 St. Paul Port Authority, 8.000%, 12/01/07
(Pre-refunded to 12/01/98) 12/98 at 102 AAA 10,162,698
MISSISSIPPI - 0.1%
110,000 Mississippi Housing Finance Corporation,
8.800%, 4/15/10 10/95 at 103 Aaa 115,590
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MISSOURI - 1.0%
$ 11,120,000 St. Charles County, Francis Howell School District,
General Obligation, 7.800%, 3/01/08 No Opt. Call Aaa $ 13,337,773
NEVADA - 0.9%
10,000,000 Clark County School District, General Obligation,
8.000%, 3/01/08 (Pre-refunded to 3/01/98) 3/98 at 102 N/R 11,017,200
NEW HAMPSHIRE - 1.5%
10,000,000 New Hampshire Business Finance Authority,
Pollution Control (United Illuminating Company),
5.875%, 10/01/33 10/03 at 102 Baa3 8,694,900
11,000,000 New Hampshire Housing Finance Authority, Single
Family Mortgage, 6.050%, 7/01/25 7/03 at 102 Aa 10,306,450
NEW MEXICO - 0.5%
6,540,000 New Mexico Mortgage Finance Authority, Single
Family Mortgage, 6.900%, 7/01/24 7/02 at 102 AA 6,677,078
NEW YORK - 5.8%
12,065,000 New York State Energy Research and Development
Authority, Electric Facilities (Consolidated Edison
Company), Alternative Minimum Tax,
6.000%, 3/15/28 3/03 at 102 Aa3 11,389,119
16,210,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(FHA-Insured), 5.500%, 2/15/22 2/04 at 102 AAA 14,793,408
18,000,000 Metropolitan Transportation Authority, Transit
Facilities, Service Contract, 8.000%, 7/01/18
(Pre-refunded to 7/01/98) 7/98 at 102 Aaa 20,036,160
New York City Municipal Assistance Corporation:
11,540,000 7.000%, 7/01/06 7/97 at 102 AA- 12,223,630
7,060,000 6.875%, 7/01/07 7/97 at 102 AA- 7,460,231
7,500,000 New York City General Obligation, 9.500%, 6/01/03 No Opt. Call A- 9,055,425
NORTH CAROLINA - 4.6%
North Carolina Eastern Municipal Power Agency:
15,630,000 7.750%, 1/01/15 (Pre-refunded to 1/01/96) 1/96 at 103 Aaa 16,439,009
395,000 7.250%, 1/01/21 (Pre-refunded to 1/01/97) 1/97 at 102 Aaa 417,653
16,415,000 8.000%, 1/01/21 (Pre-refunded to 1/01/98) 1/98 at 102 Aaa 18,015,134
2,605,000 7.250%, 1/01/21 1/97 at 102 A- 2,708,314
North Carolina Municipal Power Agency
No. 1 (Catawba):
13,000,000 8.500%, 1/01/17 (Pre-refunded to 1/01/96) 1/96 at 102 Aaa 13,587,470
7,555,000 7.000%, 1/01/18 (Pre-refunded to 1/01/96) 1/96 at 101 Aaa 7,743,120
605,000 7.000%, 1/01/18 1/96 at 101 A 617,548
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
OHIO - 2.0%
$ 6,000,000 Ohio Air Quality Development Authority (Dayton
Power and Light Company), 9.500%, 12/01/15 12/95 at 102 1/2 A $ 6,305,160
9,435,000 Ohio Housing Finance Agency, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
8.250%, 12/15/19 12/98 at 102 AAA 9,963,926
11,300,000 Ohio Turnpike Commission, 5.750%, 2/15/24 2/04 at 102 AA- 10,853,989
OKLAHOMA - 1.8%
14,780,000 Oklahoma Housing Finance Agency, Single Family
Mortgage (GMNA), Alternative Minimum Tax,
8.250%, 12/01/20 12/98 at 102 AAA 15,503,185
6,750,000 Washington County Medical Authority (Jane Phillips
Episcopal Hospital), 8.500%, 11/01/10 5/99 at 102 BBB 7,193,677
PENNSYLVANIA - 2.7%
10,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage, 5.450%, 10/01/17 10/03 at 102 AA 8,941,900
14,500,000 Allegheny County, Greater Pittsburgh International
Airport, Alternative Minimum Tax,
8.250%, 1/01/16 1/98 at 102 Aaa 15,945,650
10,500,000 Allegheny County Hospital Development Authority
(Presbyterian University Health System),
6.250%, 11/01/23 11/02 at 100 Aaa 10,537,275
SOUTH CAROLINA - 2.8%
5,000,000 Oconee County Pollution Control (Duke Power
Company), 5.800%, 4/01/14 4/03 at 102 Aa2 4,805,550
29,950,000 Piedmont Municipal Power Agency, 8.000%, 1/01/23
(Pre-refunded to 1/01/96) 1/96 at 101 1/2 Aaa 31,088,400
TEXAS - 13.4%
10,305,000 Alliance Airport Authority (American Airlines),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 10,542,633
Bexar County Health Facilities Development
Corporation (Incarnate Word Health Services):
15,000,000 9.375%, 11/01/04 11/95 at 102 A 15,634,050
16,915,000 9.500%, 11/01/15 11/95 at 102 A 17,608,176
15,310,000 Brazos River Authority, Pollution Control (Houston
Lighting and Power Company), Alternative
Minimum Tax, 9.875%, 8/01/15 8/95 at 102 A3 15,797,930
10,000,000 Brazos River Authority (Houston Lighting and
Power Company), 8.250%, 5/01/19 5/98 at 102 A3 10,876,200
5,000,000 Brownsville Utilities System, 8.000%, 9/01/06
(Pre-refunded to 9/01/96) 9/96 at 102 N/R 5,313,700
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 5,500,000 Dallas-Fort Worth International Airport (American
Airlines, Inc.), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 $ 5,626,280
40,000,000 Harris County Health Facilities Development
Corporation, 7.375%, 12/01/25 (Mandatory put
12/01/98) 5/95 at 101 1/2 Aa2 40,672,800
Harris County Toll Road, Senior Lien:
15,000,000 5.300%, 8/15/13 8/04 at 102 Aaa 13,873,200
3,385,000 8.700%, 8/15/17 (Pre-refunded to 8/15/97) 8/97 at 103 AAA 3,792,046
12,700,000 8.300%, 8/15/17 (Pre-refunded to 8/15/98) 8/98 at 103 AAA 14,364,970
14,500,000 San Antonio Electric and Gas Systems,
8.625%, 2/01/14 (Pre-refunded to 2/01/96) 2/96 at 101 1/2 Aaa 15,138,435
4,500,000 Tyler Health Facilities Development Corporation
(East Texas Hospital), 8.250%, 11/01/06
(Pre-refunded to 11/01/98) 11/98 at 102 AA 5,073,525
UTAH - 3.0%
Intermountain Power Agency:
7,500,000 7.875%, 7/01/14 7/96 at 102 AA- 7,858,275
20,000,000 7.200%, 7/01/19 7/97 at 102 AA- 21,003,400
3,000,000 8.625%, 7/01/21 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 3,288,750
6,550,000 8.625%, 7/01/21 7/97 at 102 AA 7,120,636
VIRGINIA - 0.8%
Virginia Housing Development Authority,
Alternative Minimum Tax:
2,445,000 5.600%, 7/01/21 1/02 at 102 AA+ 2,178,055
7,605,000 5.650%, 1/01/27 1/02 at 102 AA+ 6,586,691
1,000,000 8.375%, 1/01/28 1/99 at 102 AA+ 1,044,810
WASHINGTON - 7.6%
5,000,000 Washington Health Care Facilities Authority
(Virginia Mason Medical Center), 8.000%, 7/01/15 7/97 at 102 Aaa 5,366,850
Washington Public Power Supply System, Nuclear
Project No. 1:
4,060,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 4,524,220
2,640,000 7.500%, 7/01/15 7/99 at 102 AA 2,848,639
4,300,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 4,762,938
4,695,000 15.000%, 7/01/17 (Pre-refunded to 7/01/96) 7/96 at 103 Aaa 5,382,911
3,000,000 Washington Public Power Supply System, Nuclear
Project No. 2, Bonneville Power Administration,
5.750%, 7/01/12 7/03 at 102 AA 2,819,040
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
Washington Public Power Supply System, Nuclear
Project No. 2:
$ 7,500,000 6.000%, 7/01/12 7/01 at 100 AA $ 7,196,775
6,770,000 5.625%, 7/01/12 7/03 at 102 AA 6,253,854
Washington Public Power Supply System, Nuclear
Project No. 3:
13,500,000 7.250%, 7/01/15 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 14,953,410
17,200,000 5.375%, 7/01/15 7/03 at 102 AA 15,057,740
17,050,000 Seattle Metropolitan Municipality Sewer System,
5.500%, 1/01/33 1/03 at 102 Aaa 15,092,318
6,360,000 Snohomish County Public Utility District No. 1,
5.500%, 1/01/14 1/03 at 100 Aaa 5,884,144
7,000,000 Spokane Solid Waste System, Alternative Minimum
Tax, 7.750%, 1/01/11 1/99 at 102 Aaa 7,687,960
WEST VIRGINIA - 1.2%
15,000,000 West Virginia Housing Development Fund,
7.050%, 11/01/24 5/02 at 102 Aa 15,514,350
$1,230,754,825 Total Investments - (cost $1,224,797,477) - 97.6% 1,259,121,218
==============
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.3%
$ 1,400,000 Louisiana Recovery District, Sales Tax, Variable Rate
Demand Bonds, 5.150%, 7/01/97t VMIG-1 1,400,000
1,000,000 Massachusetts Health and Educational Facilities
Authority (M.I.T. Project), Variable Rate Demand
Bonds, 4.500%, 7/01/21t VMIG-1 1,000,000
400,000 North Carolina Medical Care Commission, Hospital
Pooled Financing (Duke University Hospital),
Variable Rate Demand Bonds, 5.000%, 10/01/20t VMIG-1 400,000
1,500,000 Santa Ana Health Facilities Authority (Town and
Country), Variable Rate Demand Bonds,
4.850%, 10/01/20t A-1 1,500,000
$ 4,300,000 Total Temporary Investments - 0.3% 4,300,000
==============
Other Assets Less Liabilities - 2.1% 27,680,902
Net Assets - 100% $1,291,102,120
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 61 $ 580,111,648 45%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 31 288,600,598 23
PORTFOLIO OF A+ A1 8 94,741,066 8
INVESTMENTS A, A- A, A2, A3 16 201,059,921 16
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 8 62,946,600 5
TEMPORARY Non-rated Non-rated 4 31,661,385 3
INVESTMENTS):
TOTAL 128 $1,259,121,218 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 1.0%
$ 3,925,000 Alaska Housing Finance Corporation, Collateralized
Mortgage, 5.850%, 6/01/25 12/03 at 102 Aaa $ 3,565,549
3,500,000 Anchorage Parking Authority (5th Avenue Garage
Project), 6.750%, 12/01/08 12/02 at 102 Baa1 3,599,120
1,625,000 Valdez Home Mortgage, 7.900%, 2/01/10 8/02 at 102 A 1,766,294
ARIZONA - 7.6%
Mohave County Industrial Development Authority
(Medical Environments Inc. and Phoenix
Baptist Hospital):
5,705,000 6.250%, 7/01/03 No Opt. Call Baa 5,718,407
3,000,000 6.750%, 7/01/08 7/03 at 102 Baa 3,068,250
20,090,000 Navajo County Pollution Control Corporation
(Arizona Public Service Company),
5.875%, 8/15/28 8/03 at 102 Baa2 18,385,564
Phoenix Civic Improvement Corporation,
Wastewater System:
9,000,000 6.125%, 7/01/14 (Pre-refunded to 7/01/03) 7/03 at 102 AAA 9,722,520
14,980,000 4.750%, 7/01/23 7/04 at 102 A1 11,984,899
6,510,000 Pima County Industrial Development Authority
(Tucson Electric), 7.250%, 7/15/10 1/02 at 103 Aaa 7,138,020
Salt River Project Agricultural Improvement and
Power District:
6,875,000 4.750%, 1/01/17 1/04 at 100 AA 5,666,169
5,000,000 5.750%, 1/01/19 1/02 at 100 AA 4,781,750
CALIFORNIA - 14.5%
California Public Works Board (California
State University):
15,480,000 6.625%, 10/01/10 10/02 at 102 A- 15,821,334
10,500,000 6.700%, 10/01/17 10/02 at 102 A- 10,809,435
7,150,000 6.375%, 10/01/19 10/04 at 102 A- 7,101,380
17,500,000 California Public Works Board (California State
Prison-Monterey County), 6.875%, 11/01/14 11/04 at 102 A- 18,191,250
5,000,000 Loma Linda (Loma Linda University Medical
Center), 6.500%, 12/01/18 12/03 at 102 BBB 4,680,150
12,980,000 Los Angeles Community College District,
Certificates of Participation, 6.000%, 8/15/20 2/02 at 102 Aaa 12,633,045
3,910,000 Los Angeles Community Redevelopment Agency
(Crenshaw Redevelopment Project),
7.000%, 9/01/14 9/02 at 102 Baa 3,989,960
7,000,000 Los Angeles State Building Authority (California
Department of General Services), 5.625%, 5/01/11 No Opt. Call A- 6,608,560
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 5,000,000 Los Angeles County Public Works Finance
Authority (Los Angeles County Regional Park and
Open Space), 6.125%, 10/01/10 10/04 at 102 AA $ 5,075,650
10,000,000 Los Angeles County Transportation Commission,
6.750%, 7/01/19 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 11,125,800
2,035,000 Parlier Redevelopment Agency, Tax Allocation,
6.750%, 8/01/22 8/02 at 102 BBB 2,019,656
San Francisco City and County Redevelopment
Agency:
2,390,000 6.750%, 7/01/15 7/04 at 102 Aaa 2,530,150
6,865,000 6.750%, 7/01/25 7/04 at 102 Aaa 7,233,307
5,605,000 San Joaquin County, Certificates of Participation,
6.600%, 4/01/19 4/04 at 102 A 5,584,542
Santa Clara County (American Baptist Homes of
the West), Certificates of Participation:
6,000,000 6.125%, 3/01/11 3/02 at 102 A 5,948,400
7,760,000 6.125%, 3/01/18 3/02 at 102 A 7,292,615
COLORADO - 8.4%
9,970,000 Colorado Health Facilities Authority (PSL
Healthcare System), 6.250%, 2/15/21 2/01 at 102 Aaa 10,116,061
2,995,000 Colorado Housing Finance Authority, Single Family
Mortgage, Alternative Minimum Tax,
8.125%, 12/01/24 12/04 at 105 Aa 3,314,177
Colorado Housing Finance Authority:
6,310,000 6.850%, 8/01/24 8/02 at 102 A 6,421,435
2,490,000 6.875%, 8/01/30 8/02 at 102 A 2,529,641
City and County of Denver Airport System,
Alternative Minimum Tax:
18,245,000 6.750%, 11/15/13 11/02 at 102 Baa 18,110,717
15,270,000 7.750%, 11/15/21 11/01 at 102 Baa 15,976,543
7,080,000 7.250%, 11/15/23 11/02 at 102 Baa 7,098,904
7,240,000 8.000%, 11/15/25 11/01 at 100 Baa 7,606,923
2,510,000 7.500%, 11/15/25 11/97 at 102 Baa 2,549,256
CONNECTICUT - 1.4%
6,300,000 Connecticut Health and Educational Facilities
Authority (University of Hartford),
6.750%, 7/01/12 7/02 at 102 BBB 5,974,731
Connecticut Housing Finance Authority:
3,000,000 6.200%, 5/15/12 5/03 at 102 AA 3,024,390
3,500,000 6.300%, 5/15/24 5/03 at 102 AA 3,502,415
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
FLORIDA - 1.7%
$ 1,750,000 Alachua County Health Facilities Authority and
Bradford County Health Facilities Authority
(Santa Fe Healthcare), 7.600%, 11/15/13 10/00 at 102 Baa1 $ 1,803,900
12,500,000 Tampa (The Florida Aquarium Project),
7.750%, 5/01/27 5/02 at 102 N/R 12,906,250
GEORGIA - 3.6%
Georgia Housing and Finance Authority, Single
Family Mortgage, Alternative Minimum Tax:
5,720,000 6.650%, 12/01/20 9/04 at 102 AA+ 5,769,135
5,735,000 6.700%, 12/01/25 9/04 at 102 AA+ 5,848,381
12,500,000 Burke County Development Authority, Pollution
Control (Georgia Power Company), Alternative
Minimum Tax, 6.350%, 5/01/19 6/99 at 102 A2 12,082,250
7,000,000 Burke County Development Authority, Pollution
Control (Oglethorpe Power Corporation),
8.000%, 1/01/15 1/03 at 103 Aaa 8,042,160
ILLINOIS - 9.9%
3,000,000 Illinois Health Facilities Authority (Lutheran General
Health System), 6.000%, 4/01/18 No Opt. Call A+ 2,825,670
5,750,000 Illinois Health Facilities Authority (Illinois Masonic
Medical Center), 5.500%, 10/01/19 10/03 at 102 A- 4,919,585
4,510,000 Illinois Toll Highway Authority, Toll Highway
Priority, 6.375%, 1/01/15 1/03 at 102 A1 4,520,734
15,000,000 Central Lake County Joint Action Water Agency,
General Obligation, 7.350%, 2/01/19
(Pre-refunded to 8/01/99) 8/99 at 100 Aaa 16,410,450
22,000,000 Chicago General Obligation, 6.250%, 1/01/12 1/02 at 102 Aaa 22,114,400
8,650,000 Chicago Gas Supply (People's Gas, Light and
Coke Company), Alternative Minimum Tax,
5.750%, 12/01/23 12/03 at 102 Aa3 7,926,428
8,270,000 Chicago, FHA-Insured (Lakeview Towers Project),
6.650%, 12/01/33 6/02 at 102 AAA 8,370,398
14,900,000 Chicago Public Building Commission (Board of
Education), 5.750%, 12/01/18 12/03 at 102 Aaa 14,020,900
2,850,000 East St. Louis, FHA-Insured (Dawson Manor),
6.500%, 7/01/24 7/03 at 102 Aaa 2,887,734
2,160,000 Wheeling Single Family Mortgage,
6.850%, 11/01/09 11/02 at 102 Aaa 2,323,966
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
INDIANA - 6.6%
Indiana Bond Bank:
$ 5,200,000 6.250%, 2/01/09 2/03 at 102 A $ 5,348,512
2,875,000 6.750%, 2/01/17 2/05 at 102 A 2,916,515
5,250,000 Indiana Transportation Finance Authority (Aviation
Technology Center), 6.500%, 3/01/18 3/03 at 102 A 5,236,980
8,000,000 East Chicago Elementary School Building
Corporation, 7.000%, 1/15/16 1/03 at 102 A 8,545,040
13,630,000 Fort Wayne Hospital Authority (Parkview Memorial
Hospital), 6.400%, 11/15/22 11/02 at 102 A1 13,353,038
10,675,000 Highland School Building Corporation,
6.750%, 1/15/20 (Pre-refunded to 1/15/02) 1/02 at 102 AAA 11,727,235
5,905,000 Muncie School Building Corporation,
6.625%, 7/15/14 7/01 at 102 A 6,067,683
4,750,000 St. Joseph County Hospital Authority (Memorial
Hospital of South Bend), 6.250%, 8/15/12 8/03 at 102 Aaa 4,777,075
KANSAS - 0.7%
3,000,000 Johnson County Single Family Mortgage,
7.100%, 5/01/12 5/04 at 103 A 3,210,480
2,675,000 Sedgwick and Shawnee Counties, Single Family
Mortgage, Alternative Minimum Tax,
7.900%, 5/01/24 No Opt. Call Aaa 3,241,940
LOUISIANA - 3.3%
Louisiana Public Facilities Authority (Pendleton
Memorial Methodist Hospital):
5,500,000 6.750%, 6/01/10 6/02 at 102 Baa1 5,540,920
9,130,000 6.750%, 6/01/22 6/02 at 102 Baa1 8,519,568
12,000,000 Louisiana Public Facilities Authority (General
Health), 6.000%, 11/01/22 11/02 at 102 Aaa 11,517,000
3,000,000 Mississippi River Bridge Authority,
6.750%, 11/01/12 11/02 at 102 A- 3,141,300
MAINE - 1.5%
13,925,000 Maine State Housing Authority, Alternative
Minimum Tax, 6.400%, 11/15/24 8/02 at 102 AA- 13,424,396
MARYLAND - 0.5%
4,000,000 Maryland Community Development Administration,
Multi-Family Housing, 6.625%, 5/15/23 5/03 at 102 Aa 4,056,880
MASSACHUSETTS - 0.8%
8,000,000 Massachusetts Water Resources Authority,
5.000%, 3/01/22 3/03 at 100 A 6,724,160
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MICHIGAN - 2.7%
Michigan Housing Development Authority,
Rental Housing:
$ 9,200,000 6.600%, 4/01/12 10/02 at 102 A+ $ 9,360,632
6,750,000 6.650%, 4/01/23 10/02 at 102 A+ 6,820,065
8,000,000 Michigan Hospital Finance Authority (Oakwood
Hospital), 5.625%, 11/01/18 11/03 at 102 Aaa 7,397,440
MINNESOTA - 1.9%
3,500,000 Minnesota Housing Finance Agency,
5.600%, 1/01/17 1/03 at 102 AA+ 3,231,515
3,560,000 Minneapolis/St. Paul Housing and Redevelopment
Authority (Group Health Plan Project),
6.900%, 10/15/22 12/02 at 102 A- 3,665,269
4,000,000 Washington County Housing and Redevelopment
Authority, 7.200%, 1/01/22 1/03 at 102 BBB 4,114,360
5,170,000 Washington County Housing and Redevelopment
Authority (South Washington County Schools
Project), 7.400%, 12/01/14 12/02 at 100 Baa1 5,372,819
MISSISSIPPI - 1.3%
Mississippi Hospital Equipment and Facilities
Authority (Wesley Health Systems):
4,000,000 6.050%, 4/01/12 10/02 at 102 AAA 3,941,520
8,000,000 6.100%, 4/01/22 10/02 at 102 AAA 7,703,120
MISSOURI - 1.8%
5,500,000 St. Louis County Industrial Development Authority
(Kiel Center Multi-Purpose Arena), Alternative
Minimum Tax, 7.625%, 12/01/09 12/02 at 102 N/R 5,636,400
11,000,000 St. Louis Municipal Finance Corporation (Cervantes
Center and NFL Stadium), 6.000%, 7/15/13 7/03 at 102 Aa3 10,495,320
NEVADA - 2.2%
15,000,000 Clark County (Las Vegas-McCarran International
Airport), Passenger Facility, 6.000%, 7/01/22 7/02 at 102 Aaa 14,416,500
4,500,000 Humboldt County Pollution Control (Sierra Pacific
Power Company), 6.300%, 7/01/22 7/02 at 102 Aaa 4,524,570
NEW JERSEY - 0.9%
7,425,000 New Jersey Housing and Mortgage Finance Agency,
6.700%, 11/01/28 11/02 at 102 A+ 7,508,012
NEW MEXICO - 0.2%
2,040,000 New Mexico Mortgage Finance Authority, Single
Family Mortgage, 6.900%, 7/01/24 7/02 at 102 AA 2,082,758
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEW YORK - 6.7%
$ 14,730,000 New York State Energy Research and Development
Authority (Consolidated Edison Company),
Alternative Minimum Tax, 6.375%, 12/01/27 12/01 at 101 Aaa $ 14,618,789
New York City General Obligation:
10,750,000 6.600%, 2/01/03 No Opt. Call A- 11,057,235
7,695,000 6.600%, 8/01/03 No Opt. Call A- 7,924,388
10,000,000 6.375%, 8/01/08 8/02 at 101 1/2 A- 9,888,700
15,000,000 6.500%, 8/01/11 8/02 at 101 1/2 A- 14,776,350
NORTH DAKOTA - 0.5%
4,280,000 Mercer County Pollution Control (Basin Electric
Power Co-op), 7.000%, 1/01/19 1/99 at 103 A2 4,392,735
OKLAHOMA - 1.3%
1,590,000 Tulsa County Industrial Authority, Recreational
Facilities, 6.600%, 9/01/08 9/02 at 102 A- 1,653,839
4,990,000 Tulsa County Public Facilities Authority,
Recreational Facilities, 6.600%, 11/01/08 11/02 at 102 A- 5,175,229
2,000,000 Tulsa Industrial Authority (St. John's Medical
Center), 6.250%, 2/15/17 2/04 at 102 AA 2,001,320
2,655,000 Tulsa Metropolitan Utilities Authority,
5.125%, 9/01/18 9/03 at 102 Aaa 2,325,833
OREGON - 1.6%
13,350,000 Oregon General Obligation, 6.375%, 8/01/24 8/02 at 102 AA- 13,671,468
RHODE ISLAND - 0.2%
2,115,000 Rhode Island Health and Educational Building
Corporation (Miriam Hospital), 6.600%, 4/01/19 4/03 at 102 A 2,112,314
SOUTH CAROLINA - 0.3%
2,135,000 Lexington County School District No. 4, Certificates
of Participation, 7.000%, 7/01/12 7/04 at 102 Baa 2,263,890
SOUTH DAKOTA - 1.3%
10,370,000 South Dakota Building Authority, 6.700%, 9/01/17 9/02 at 102 Aaa 11,655,776
TEXAS - 3.9%
10,925,000 Texas Veterans Housing, General Obligation,
Alternative Minimum Tax, 6.800%, 12/01/23 12/03 at 102 AA 11,113,675
6,000,000 Texas Veterans Land Board, General Obligation,
6.500%, 12/01/21 12/01 at 102 AA 6,118,020
2,570,000 Baytown Housing Finance Corporation, Single
Family Mortgage, 8.500%, 9/01/11 9/02 at 103 A 2,836,072
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 3,500,000 Harris County Toll Road, Unlimited Tax and
Subordinate Lien, 6.500%, 8/15/15 8/02 at 102 AA+ $ 3,622,920
6,425,000 Hidalgo County Housing Finance Corporation,
Single Family Mortgage (GNMA and FNMA),
Alternative Minimum Tax, 7.000%, 10/01/27 4/04 at 102 Aaa 6,627,388
3,755,000 Port Arthur Housing Finance Corporation, Single
Family Mortgage, 8.700%, 3/01/12 9/02 at 103 A 4,113,377
UTAH - 1.5%
4,065,000 Utah Housing Finance Agency, 6.450%, 7/01/14 7/04 at 102 Aa 4,125,934
6,000,000 Salt Lake City Redevelopment Agency (Central
Business District), 5.800%, 3/01/15 3/02 at 102 A 5,399,220
3,000,000 Weber County Municipal Building Authority,
7.500%, 12/15/19 12/04 at 102 AA 3,257,820
VERMONT - 1.1%
8,000,000 Vermont Housing Finance Agency,
6.400%, 11/01/25 5/02 at 102 A1 7,883,840
2,030,000 Vermont Municipal Bond Bank, 6.250%, 12/01/18 12/02 at 102 A- 1,999,083
WASHINGTON - 2.8%
15,000,000 Washington General Obligation,
5.800%, 7/01/20 (WI) 7/05 at 100 AA 14,367,600
3,000,000 Washington Public Power Supply System, Nuclear
Project No. 3, 6.000%, 7/01/18 7/99 at 100 Aaa 2,887,200
7,150,000 Municipality of Metropolitan Seattle Sewer System,
6.600%, 1/01/32 1/01 at 102 Aaa 7,317,382
WEST VIRGINIA - 0.8%
7,000,000 Harrison County Commission, Solid Waste (Potomac
Edison Company), Alternative Minimum Tax,
6.250%, 5/01/23 5/03 at 102 Aaa 6,886,320
WISCONSIN - 2.1%
18,500,000 Wisconsin Housing and Economic Development
Authority, Alternative Minimum Tax,
7.100%, 9/01/15 1/05 at 102 AA 19,075,159
$846,330,000 Total Investments - (cost $833,690,429) - 96.6% 845,807,208
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 3.3%
$ 7,000,000 Gulf Coast Waste Disposal Authority, Pollution
Control (Amoco Oil Company Project), Series
1992, Variable Rate Demand Bonds,
5.000%, 10/01/17t VMIG-1 $ 7,000,000
8,300,000 Harris County Health Facilities Development
Corporation (The Methodist Hospital), Variable
Rate Demand Bonds, 5.000%, 12/01/25t A-1+ 8,300,000
3,700,000 New York City General Obligation, Variable Rate
Demand Bonds, 5.000%, 2/01/21t VMIG-1 3,700,000
10,000,000 Washington Health Care Facilities Authority (Sisters
of Providence), Variable Rate Demand Bonds,
5.000%, 10/01/05t VMIG-1 10,000,000
$ 29,000,000 Total Temporary Investments - 3.3% 29,000,000
============
Other Assets Less Liabilities - 0.1% 39,893
Net Assets - 100% $874,847,101
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 31 $259,799,548 31%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 23 155,553,280 18
PORTFOLIO OF A+ A1 8 64,256,890 8
INVESTMENTS A, A- A, A2, A3 34 221,261,202 26
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 19 126,393,638 15
TEMPORARY Non-rated Non-rated 2 18,542,650 2
INVESTMENTS):
TOTAL 117 $845,807,208 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call
provisions at varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 3.0%
$ 7,500,000 Alabama General Obligation, 5.900%, 3/01/99 No Opt. Call AA $ 7,799,025
8,000,000 Alabama Higher Education Loan Corporation,
Student Loan, Alternative Minimum Tax,
5.850%, 9/01/04 No Opt. Call Aaa 8,044,960
11,000,000 DCH Health Care Authority, 5.750%, 6/01/23 12/02 at 102 A1 9,862,490
ARIZONA - 0.8%
6,700,000 Maricopa County School District No. 28, General
Obligation, 5.200%, 7/01/13 (Pre-refunded
to 7/01/03) 7/03 at 100 Aaa 6,703,886
ARKANSAS - 0.4%
1,030,000 Arkansas Development Finance Authority, Single
Family Mortgage, 8.000%, 8/15/11 8/01 at 103 AA 1,114,233
750,000 Jacksonville Resident Housing Facilities Board,
Single Family Mortgage, 7.900%, 1/01/11 7/03 at 103 Aaa 820,463
1,181,753 Lonoke County Residential Housing Facilities
Board, 7.900%, 4/01/11 4/05 at 103 Aaa 1,264,901
CALIFORNIA - 4.7%
3,105,000 California Educational Facilities Authority (Loyola
Marymount University), 5.750%, 10/01/24 4/04 at 102 A1 2,835,051
5,000,000 California Health Facilities Financing Authority
(Kaiser Permanente Medical Care Program),
6.500%, 12/01/20 12/00 at 102 Aa2 5,050,200
10,000,000 Culver City Redevelopment Finance Authority, Tax
Allocation, 4.600%, 11/01/20 11/03 at 102 Aaa 7,919,900
500,000 Los Angeles Community Redevelopment Agency,
Multi-Family Housing, Alternative Minimum
Tax, 5.750%, 12/01/13 6/03 at 102 A 456,320
3,900,000 Los Angeles Community Redevelopment Agency,
Alternative Minimum Tax, 5.900%, 12/01/26 6/95 at 100 A 3,597,204
3,135,000 Los Angeles Department of Water and Power,
9.000%, 5/15/00 No Opt. Call AA 3,668,358
4,500,000 Los Angeles County Transportation Commission,
6.750%, 7/01/19 (Pre-refunded to 7/01/02) 7/02 at 102 Aaa 5,006,610
3,000,000 Mountain View Shoreline Regional Park Community,
Tax Allocation, 5.750%, 8/01/18 8/02 at 102 A 2,715,060
4,000,000 Riverside County, Single Family Mortgage (GNMA),
Alternative Minimum Tax, 7.800%, 5/01/21 No Opt. Call Aaa 4,833,160
3,545,000 San Leandro Redevelopment Agency, Tax Allocation,
6.125%, 6/01/23 6/03 at 102 A- 3,369,735
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 3.3%
City and County of Denver Airport System,
Alternative Minimum Tax:
$ 6,000,000 7.500%, 11/15/02 11/01 at 102 Baa $ 6,335,460
3,040,000 7.750%, 11/15/13 No Opt. Call Baa 3,334,850
4,145,000 7.750%, 11/15/21 11/01 at 102 Baa 4,336,789
5,240,000 6.750%, 11/15/22 11/02 at 102 Baa 5,130,746
1,200,000 8.750%, 11/15/23 11/01 at 102 Baa 1,330,692
4,100,000 8.500%, 11/15/23 11/00 at 102 Baa 4,432,510
1,305,000 8.000%, 11/15/25 11/00 at 102 Baa 1,378,863
1,000,000 7.000%, 11/15/25 11/01 at 100 Baa 977,780
915,000 City and County of Denver Airport System,
8.875%, 8/01/15 8/95 at 101 Baa 930,802
CONNECTICUT - 2.0%
2,400,000 Connecticut Development Authority, Water
Facilities, 6.650%, 12/15/20 12/03 at 102 Aaa 2,534,592
6,500,000 Connecticut Health and Educational Facilities
Authority (Yale-New Haven Hospital),
7.100%, 7/01/25 7/00 at 102 Aaa 7,054,190
4,860,000 Connecticut Housing Finance Authority,
7.550%, 11/15/08 11/00 at 102 AA 5,028,739
2,000,000 Connecticut Special Tax Obligation,
5.375%, 9/01/08 No Opt. Call AA- 1,910,900
DISTRICT OF COLUMBIA - 4.6%
District of Columbia, General Obligation:
3,890,000 5.500%, 6/01/06 No Opt. Call Aaa 3,804,576
9,500,000 6.000%, 6/01/07 No Opt. Call Aaa 9,475,110
5,000,000 6.000%, 6/01/09 6/03 at 102 Aaa 4,925,000
6,000,000 5.500%, 6/01/10 No Opt. Call Aaa 5,597,280
District of Columbia (Medlantic Health Care Group):
3,240,000 6.750%, 8/15/07 8/02 at 102 Baa1 3,137,227
4,000,000 5.750%, 8/15/14 8/03 at 102 Aaa 3,705,400
4,500,000 District of Columbia (The Howard University),
6.750%, 10/01/12 10/02 at 102 AA- 4,585,770
3,500,000 Metropolitan Washington DC Airports Authority,
Alternative Minimum Tax, 5.750%, 10/01/20 10/04 at 102 Aaa 3,274,145
FLORIDA - 0.3%
2,500,000 Florida Division of Bond Finance (Hillsborough
County Expressway), 5.500%, 10/01/08 4/05 at 100 AA 2,469,525
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
GEORGIA - 2.0%
$ 5,000,000 Georgia General Obligation, 6.700%, 8/01/09 No Opt. Call Aaa $ 5,613,450
Georgia Municipal Electric Authority:
2,480,000 8.250%, 1/01/11 No Opt. Call AA- 3,021,458
4,185,000 7.250%, 1/01/24 No Opt. Call Aaa 4,877,032
3,000,000 Burke County Development Authority, Pollution
Control (Oglethorpe Power Corporation),
7.500%, 1/01/03 No Opt. Call Aaa 3,302,190
HAWAII - 0.2%
1,500,000 Hawaii Department of Transportation, Airports
System, Alternative Minimum Tax,
7.300%, 7/01/20 7/00 at 102 Aaa 1,604,100
ILLINOIS - 18.3%
6,500,000 Illinois Development Finance Authority, Pollution
Control (Commonwealth Edison Company),
5.300%, 1/15/04 No Opt. Call Baa2 6,097,000
4,730,000 Illinois Development Finance Authority (Child Care
Facility), 7.400%, 9/01/04 9/02 at 102 N/R 4,816,937
2,240,000 Illinois Educational Facilities Authority (Chicago
College of Osteopathic Medicine), 8.750%, 7/01/05 No Opt. Call Aaa 2,628,864
4,725,000 Illinois Educational Facilities Authority (The Art
Institute of Chicago), 5.800%, 3/01/27 3/03 at 102 A 4,365,144
Illinois Educational Facilities Authority
(Loyola University):
6,190,000 7.125%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 A+ 6,950,999
10,360,000 7.125%, 7/01/21 7/01 at 102 A1 10,898,306
Illinois Health Facilities Authority (Lutheran
General Health):
5,705,000 7.000%, 4/01/08 No Opt. Call A+ 6,059,338
4,075,000 7.000%, 4/01/14 No Opt. Call A+ 4,271,986
3,500,000 7.500%, 4/01/18 (Pre-refunded to 4/01/99) 4/99 at 102 AAA 3,881,710
2,500,000 Illinois Health Facilities Authority
(Delnor-Community Hospital), 5.500%, 5/15/13 5/03 at 102 Aaa 2,293,625
3,500,000 Illinois Health Facilities Authority (Illinois Masonic
Medical Center), 5.500%, 10/01/19 10/03 at 102 A- 2,994,530
5,000,000 Illinois Health Facilities Authority (Riverside Senior
Living Center Project), 7.500%, 11/01/20 11/00 at 102 Baa1 5,106,050
12,710,000 Illinois Health Facilities Authority (Hinsdale
Hospital), 9.000%, 11/15/15 11/00 at 102 Baa1 14,366,749
3,000,000 Illinois Housing Development Authority,
Multi-Family Housing, 6.650%, 9/01/14 9/04 at 102 A1 3,016,230
3,410,000 Illinois Housing Development Authority (Skyline
Towers), 6.875%, 11/01/17 11/02 at 102 A 3,485,054
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 4,155,000 Illinois Housing Development Authority, Elderly
Housing (Morningside North), 6.600%, 1/01/07 1/03 at 102 A $ 4,275,620
12,415,000 Illinois Sales Tax, 5.500%, 6/15/20 6/02 at 101 AAA 11,183,432
6,000,000 Chicago General Obligation, 6.250%, 10/31/02 No Opt. Call Aaa 6,372,060
9,700,000 Chicago Tax Increment (Stockyards Industrial
Redevelopment), 9.250%, 1/01/12 No Opt. Call N/R 10,233,500
7,850,000 Cook County High School District No. 205
(Thornton Township), General Obligation,
6.750%, 12/01/01 No Opt. Call Aaa 8,534,834
2,025,000 Long Creek Township Waterworks, 7.250%, 5/01/23 5/03 at 100 N/R 1,943,251
3,050,000 Regional Transportation Authority, General
Obligation, 7.200%, 11/01/20 No Opt. Call Aaa 3,470,382
3,400,000 Vermilion County, Community Consolidated School
District No. 118 (Danville), 5.500%, 12/01/11 12/07 at 100 Aaa 3,236,392
14,375,000 Wheeling Multi-Family Housing (Arlington Club),
6.400%, 2/01/40 2/03 at 100 AAA 13,881,363
Wood River Township Hospital, General Obligation:
5,000,000 6.625%, 2/01/14 2/04 at 102 BBB 4,999,300
4,905,000 6.500%, 2/01/14 2/04 at 102 BBB 4,893,817
INDIANA - 3.7%
2,250,000 Indiana Bond Bank, 6.750%, 8/01/12 2/03 at 102 A 2,317,725
3,200,000 Indiana Health Facilities Financing Authority
(Methodist Hospitals), 6.750%, 9/15/09 9/02 at 102 A 3,316,544
Indianapolis Economic Development (The
Meadows Project):
680,000 5.875%, 7/01/14 7/03 at 103 A 628,816
2,100,000 6.000%, 7/01/23 7/03 at 103 A 1,861,629
2,000,000 Kokomo Hospital Authority (Saint Joseph Hospital
and Health Center), 6.250%, 8/15/05 No Opt. Call BBB 2,007,260
2,000,000 Marion County Hospital Authority (Daughters of
Charity), 10.125%, 11/01/15 11/95 at 102 Aa 2,094,060
3,615,000 Mooresville School Building Corporation,
6.200%, 7/15/15 1/04 at 101 A 3,481,715
5,900,000 Muncie School Building Corporation,
6.625%, 7/15/14 7/01 at 102 A 6,062,545
9,500,000 Petersburg Pollution Control (Indianapolis Power
and Light Company), 6.100%, 1/01/16 1/03 at 102 Aa2 9,291,760
IOWA - 1.5%
3,810,000 Iowa Finance Authority (Trinity Hospital),
7.000%, 7/01/12 7/00 at 100 BBB+ 3,805,695
4,000,000 Iowa Student Loan Liquidity Corporation,
Alternative Minimum Tax, 5.950%, 12/01/10 12/02 at 102 Aaa 3,889,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
IOWA (CONTINUED)
$ 4,100,000 Council Bluffs Pollution Control (Midwest Power
Systems, Inc.), 5.950%, 5/01/23 5/03 at 102 Aaa $ 3,964,536
1,000,000 Davenport Home Ownership, 7.900%, 3/01/10 9/04 at 102 A 1,087,890
KANSAS - 0.6%
2,225,000 Johnson County Single Family Mortgage,
7.100%, 5/01/12 5/04 at 103 A 2,381,106
2,550,000 Labette County Single Family Mortgage,
8.400%, 12/01/11 6/03 at 103 A 2,740,383
KENTUCKY - 0.2%
1,500,000 Dayton Elderly Housing Corporation,
6.000%, 9/01/24 9/03 at 102 AAA 1,394,730
LOUISIANA - 0.3%
2,330,000 Louisiana Health Education Authority (Tulane
University Medical Center), 7.875%, 7/01/09 No Opt. Call Aaa 2,511,041
MAINE - 1.0%
8,000,000 Maine Educational Loan Marketing Corporation,
Alternative Minimum Tax, 6.250%, 11/01/06 No Opt. Call A 8,204,560
MARYLAND - 1.7%
5,000,000 Maryland General Obligation, 4.600%, 7/15/06 7/03 at 101 Aaa 4,587,350
2,710,000 Maryland Health and Higher Educational Facilities
Authority (Francis Scott Key Medical Center),
5.625%, 7/01/25 7/03 at 102 Aa 2,410,843
2,000,000 Maryland Health and Higher Educational Facilities
Authority (Doctor's Community Hospital),
5.750%, 7/01/13 7/03 at 102 BBB- 1,706,540
5,000,000 Maryland Transportation Authority
(Baltimore/Washington International Airport),
Alternative Minimum Tax, 6.400%, 7/01/19 7/04 at 102 Aaa 5,156,500
1,000,000 Prince George's County (Dimensions Health
Corporation), 5.375%, 7/01/14 7/04 at 102 A 875,600
MASSACHUSETTS - 1.1%
4,195,000 Massachusetts Health and Educational Facilities
Authority (Youville Hospital), 6.000%, 2/15/34 2/04 at 102 Aa 3,898,791
2,000,000 Massachusetts Housing Finance Agency, Housing
Project, 6.300%, 10/01/13 4/03 at 102 A1 1,983,740
3,300,000 Massachusetts Industrial Finance Agency, Resource
Recovery (SEMASS Project), Alternative
Minimum Tax, 9.250%, 7/01/15 7/01 at 103 N/R 3,581,853
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
MICHIGAN - 4.0%
$ 2,000,000 Michigan Hospital Finance Authority (Genesys
Health System), 7.500%, 10/01/27 10/05 at 100 BBB $ 1,966,380
2,000,000 Michigan Hospital Finance Authority (Henry Ford
Health System), 5.750%, 9/01/17 9/02 at 102 AA 1,884,840
2,000,000 Michigan Hospital Finance Authority (The Detroit
Medical Center), 5.000%, 8/15/03 No Opt. Call A- 1,884,300
3,750,000 Michigan Strategic Fund (Consumers Power),
5.800%, 6/15/10 6/03 at 102 Aaa 3,697,725
14,000,000 Michigan Strategic Fund (WMX Technologies),
Alternative Minimum Tax, 6.000%, 12/01/13 12/03 at 102 A1 13,498,240
5,000,000 Detroit Convention Facility (Cobo Hall),
5.250%, 9/30/12 9/03 at 102 A 4,429,850
6,000,000 Monroe County Pollution Control (Detroit Edison),
Alternative Minimum Tax, 6.550%, 9/01/24 9/03 at 103 Aaa 6,112,020
MINNESOTA - 0.8%
4,000,000 Minneapolis Community Development Agency,
7.375%, 12/01/12 12/02 at 102 BBB+ 4,308,440
2,720,000 Minnetonka Multi-Family Housing (Brier Creek
Project), 6.450%, 6/20/24 6/04 at 102 AAA 2,719,701
MISSISSIPPI - 1.3%
2,000,000 Mississippi Educational Facilities Authority
(Tougaloo College), 6.500%, 6/01/18 6/03 at 102 Baa 1,928,180
2,000,000 Mississippi Higher Education Assistance
Corporation Student Loan, Alternative Minimum
Tax, 5.800%, 9/01/06 9/02 at 102 Aaa 1,967,240
3,000,000 Mississippi Home Corporation, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
6.550%, 4/01/21 4/05 at 102 Aaa 2,966,610
2,435,000 Mississippi Housing Finance Corporation, Single
Family Mortgage (GNMA), Alternative Minimum
Tax, 8.250%, 10/15/18 10/99 at 102 Aaa 2,584,728
1,695,000 Mississippi Regional Housing Authority No. 5
(FHA-Insured) 7.050%, 7/01/21 7/00 at 105 AAA 1,751,918
NEBRASKA - 3.5%
17,000,000 Nebraska Higher Education Loan Program,
Alternative Minimum Tax, 6.250%, 6/01/18 No Opt. Call Aa 16,298,410
1,620,000 Nebraska Investment Finance Authority, Single
Family Mortgage, Alternative Minimum Tax,
8.125%, 8/15/38 8/98 at 102 Aaa 1,708,663
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NEBRASKA (CONTINUED)
Omaha Airport Authority:
$ 1,665,000 8.375%, 1/01/14 (Pre-refunded to 1/01/02) 1/02 at 102 A- $ 1,987,544
5,075,000 8.375%, 1/01/14 1/02 at 102 A 5,879,844
3,500,000 Omaha Public Power District, 5.700%, 2/01/17 2/03 at 102 AA 3,328,150
NEVADA - 1.1%
3,305,000 Nevada Housing Division, Single Family Mortgage,
Alternative Minimum Tax, 5.950%, 10/01/13 10/04 at 102 Aa 3,145,203
1,750,000 Nevada Housing Division, Single Family Program,
6.200%, 10/01/15 4/04 at 102 Aa 1,706,408
4,300,000 Clark County School District, General Obligation,
7.000%, 6/01/10 No Opt. Call Aaa 4,795,489
NEW HAMPSHIRE - 0.6%
4,495,000 New Hampshire Housing Finance Authority,
Alternative Minimum Tax, 7.950%, 7/01/22 7/00 at 102 Aa 4,757,868
NEW JERSEY - 0.3%
2,000,000 New Jersey Turnpike Authority, 6.500%, 1/01/16 No Opt. Call A 2,110,020
NEW MEXICO - 0.5%
1,000,000 New Mexico Educational Assistance Foundation,
Student Loan, Alternative Minimum Tax,
6.850%, 12/01/05 12/02 at 101 A 1,021,030
2,825,000 New Mexico Mortgage Finance Authority, Single
Family Mortgage, 6.900%, 7/01/24 7/02 at 102 AA 2,884,212
NEW YORK - 5.0%
10,500,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(FHA-Insured), 6.200%, 8/15/22 8/02 at 102 AAA 10,484,985
8,240,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home,
FHA-Insured (St. Vincent's Medical Center),
6.200%, 2/15/21 2/04 at 102 AAA 8,228,464
13,500,000 New York State Thruway Authority,
6.000%, 1/01/15 1/05 at 102 Aaa 13,284,405
3,000,000 New York State Urban Development Corporation,
Correctional Facilities, 5.250%, 1/01/14 No Opt. Call Aaa 2,736,480
New York City General Obligation:
1,000,000 7.000%, 8/01/04 No Opt. Call A- 1,049,290
2,500,000 8.000%, 8/01/05 No Opt. Call Aaa 3,006,525
4,000,000 New York Housing Development Corporation,
Multi-Family Housing, 5.700%, 11/01/13 5/03 at 102 AA 3,790,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
NORTH DAKOTA - 1.1%
$ 7,415,000 Mercer County Pollution Control (Basin Electric
Power Coop), 7.000%, 1/01/19 1/99 at 103 A2 $ 7,610,311
1,795,000 Minot Single Family Mortgage, 7.700%, 8/01/10 8/03 at 102 A 1,922,230
OHIO - 4.4%
3,960,000 Ohio Housing Finance Agency (GNMA),
6.300%, 9/01/17 3/05 at 102 AAA 3,992,432
16,080,000 Ohio Housing Finance Agency, Single Family
Mortgage (GNMA), Alternative Minimum Tax,
7.650%, 3/01/29 9/99 at 102 AAA 16,772,405
4,500,000 Akron Bath Copley Joint Township Hospital District
(Summa Health System), 6.250%, 11/15/07 11/02 at 102 A 4,580,685
2,000,000 Franklin County Multi-Family Housing (Hamilton
Creek Apartments), Alternative Minimum Tax,
5.550%, 7/01/24 1/05 at 103 Aa 1,738,700
6,500,000 Cincinnati Student Loan Funding Corporation,
Alternative Minimum Tax, 5.500%, 12/01/01 No Opt. Call A1 6,418,490
4,370,000 Toledo General Obligation, Limited Tax,
5.750%, 12/01/09 12/04 at 102 Aaa 4,377,036
OKLAHOMA - 0.7%
3,925,000 Muskogee Industrial Trust (Oklahoma Gas and
Electric Company), 7.000%, 3/01/17 3/97 at 102 AA- 4,088,280
2,000,000 Tulsa Municipal Airport Trust (AMR Corporation),
9.500%, 6/01/20 12/95 at 102 Baa2 2,096,300
PENNSYLVANIA - 1.0%
5,000,000 Harrisburg Authority Water System,
7.000%, 7/15/10 (Pre-refunded to 7/15/01) 7/01 at 100 Aaa 5,527,950
3,000,000 Philadelphia Water and Wastewater System,
5.500%, 6/15/14 6/03 at 102 Aaa 2,827,170
RHODE ISLAND - 1.2%
5,500,000 Rhode Island Health and Educational Building
Corporation (Johnson and Wales University),
8.375%, 4/01/20 (Pre-refunded to 4/01/00) 4/00 at 102 AAA 6,397,875
3,950,000 Rhode Island Health and Educational Building
Corporation (Providence College),
5.600%, 11/01/22 11/03 at 102 Aaa 3,600,307
SOUTH CAROLINA - 1.1%
5,615,000 South Carolina Public Service Authority,
7.300%, 7/01/21 7/96 at 102 A1 5,866,664
3,800,000 Piedmont Municipal Power Agency, 5.000%, 1/01/22 1/01 at 100 Aaa 3,234,674
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
SOUTH DAKOTA - 0.3%
$ 2,500,000 South Dakota Student Loan Assistance Corporation,
Alternative Minimum Tax, 7.625%, 8/01/06 8/99 at 102 A $ 2,620,150
TENNESSEE - 0.3%
2,400,000 Tennessee Housing Development Agency,
Alternative Minimum Tax, 6.900%, 7/01/25 7/04 at 102 A1 2,448,360
TEXAS - 7.1%
4,948,276 Texas General Services Commission,
7.500%, 9/01/22 9/95 at 102 1/2 A 5,134,578
8,500,000 Texas Turnpike Authority, 7.250%, 1/01/10
(Pre-refunded to 1/01/99) 1/99 at 102 Aaa 9,323,905
1,000,000 Alliance Airport Authority (AMR Corporation),
Alternative Minimum Tax, 7.500%, 12/01/29 12/00 at 102 Baa2 1,023,060
13,000,000 Dallas-Fort Worth International Airport (AMR
Corporation), Alternative Minimum Tax,
7.500%, 11/01/25 11/00 at 102 Baa2 13,298,480
2,850,000 Dallas Waterworks and Sewer System,
5.000%, 4/01/09 4/03 at 100 AA 2,595,951
Houston Airport System, Subordinate Lien,
Alternative Minimum Tax:
2,500,000 6.750%, 7/01/08 7/01 at 102 Aaa 2,640,125
2,500,000 6.750%, 7/01/21 7/01 at 102 Aaa 2,572,325
2,883,000 Midland Housing Finance Corporation, Single
Family Mortgage, 8.450%, 12/01/11 11/05 at 103 Aaa 3,151,668
2,215,000 North Texas Higher Educational Authority, Student
Loan, Alternative Minimum Tax, 6.300%, 4/01/09 4/03 at 102 A 2,198,653
14,000,000 San Antonio Electric and Gas System,
5.000%, 2/01/17 2/02 at 101 Aa1 12,111,540
6,500,000 Travis County Health Facilities Development
Corporation (Daughters of Charity Health System),
6.000%, 11/15/22 11/03 at 102 Aa 5,961,540
VIRGINIA - 0.6%
2,000,000 Hampton Roads Sanitation District,
4.500%, 10/01/02 No Opt. Call AA 1,887,480
2,645,000 Suffolk Redevelopment Authority, Multi-Family
Housing (Chase Heritage Project),
7.000%, 7/01/24 (Mandatory put 7/01/04) 7/02 at 104 N/R 2,796,823
WASHINGTON - 10.8%
9,800,000 Washington General Obligation, 4.500%, 10/01/18 10/03 at 100 AA 7,724,850
5,750,000 Washington Health Care Facilities Authority
(Franciscan Health System/St. Joseph Hospital
and Health Care of Tacoma), 5.625%, 1/01/13 1/03 at 102 Aaa 5,438,638
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
Washington Public Power Supply System Nuclear
Project No. 1:
$ 4,500,000 5.750%, 7/01/13 7/03 at 102 AA $ 4,178,790
4,845,000 7.500%, 7/01/15 (Pre-refunded to 7/01/99) 7/99 at 102 AAA 5,398,977
23,000,000 5.375%, 7/01/15 7/03 at 102 AA 20,135,350
Washington Public Power Supply System, Nuclear
Project No. 2:
6,475,000 7.250%, 7/01/06 No Opt. Call AA 7,154,163
3,580,000 7.625%, 7/01/10 (Pre-refunded to 1/01/01) 1/01 at 102 AAA 4,081,630
8,000,000 6.250%, 7/01/12 7/02 at 102 AA 7,858,800
Washington Public Power Supply System, Nuclear
Project No. 3:
10,000,000 7.000%, 7/01/09 No Opt. Call AA 10,706,900
2,900,000 5.375%, 7/01/15 7/03 at 102 AA 2,538,805
5,000,000 Snohomish County Public Utility District No. 1,
5.500%, 1/01/14 1/03 at 100 Aaa 4,625,900
4,705,000 Tacoma Department of Public Utilities, Sewer
System, 8.000%, 12/01/08 No Opt. Call Aaa 5,698,649
5,680,000 Vancouver Housing Authority (Fishers Mill Project),
6.000%, 3/01/23 3/03 at 100 Aa 5,309,153
WEST VIRGINIA - 1.0%
West Virginia Housing Development, Alternative
Minimum Tax:
4,255,000 7.950%, 5/01/17 11/00 at 102 Aa1 4,525,447
4,675,000 5.650%, 11/01/19 5/04 at 102 Aa1 4,139,057
WISCONSIN - 0.3%
1,400,000 Wisconsin Health and Educational Facilities
Authority (Wheaton Franciscan Services),
5.750%, 8/15/22 8/03 at 102 Aaa 1,281,447
970,000 Wisconsin Housing and Economic Development
Authority, Alternative Minimum Tax,
7.000%, 5/01/10 5/02 at 102 A1 1,016,123
WYOMING - 0.4%
3,750,000 Wyoming Community Development Authority,
Single Family Mortgage, 6.100%, 6/01/33 6/03 at 102 AA 3,529,124
PUERTO RICO - 1.0%
4,000,000 Puerto Rico Highway and Transportation Authority,
5.500%, 7/01/19 7/03 at 101 1/2 A 3,627,999
5,000,000 Puerto Rico Public Improvement, 7.625%, 7/01/10
(Pre-refunded to 7/01/00) 7/00 at 102 AAA 5,698,399
$826,843,029 Total Investments - (cost $833,070,221) - 98.1% 828,056,927
============
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 1,200,000 Charleston County Pollution Control, Variable Rate
============
Demand Bonds (Massey), 5.000%, 1/01/07t AAA $ 1,200,000
Other Assets Less Liabilities - 1.7% 14,438,064
Net Assets - 100% $843,694,991
============
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 67 $330,033,229 40%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 38 196,322,683 24
PORTFOLIO OF A+ A1 13 75,126,017 9
INVESTMENTS A, A- A, A2, A3 33 104,273,664 12
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 24 98,928,970 12
TEMPORARY Non-rated Non-rated 5 23,372,364 3
INVESTMENTS):
TOTAL 180 $828,056,927 100%
<FN>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
t The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS
(Unaudited)
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $1,259,121,218 $845,807,208 $828,056,927
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 4,300,000 29,000,000 1,200,000
Cash 1,612,970 81,240 752,194
Receivables:
Interest 28,188,711 18,293,413 17,470,937
Investments sold 4,577,516 75,000 40,275
Other assets 461,359 90,884 158,362
-------------- ------------ ------------
Total assets 1,298,261,774 893,347,745 847,678,695
-------------- ------------ ------------
LIABILITIES
Payable for investments purchased -- 14,425,817 --
Accrued expenses:
Management fees (note 6) 659,134 453,179 437,189
Other 392,334 209,530 423,914
Preferred share dividends payable 495,068 296,187 184,391
Common share dividends payable 5,613,118 3,115,931 2,938,210
-------------- ------------ ------------
Total liabilities 7,159,654 18,500,644 3,983,704
-------------- ------------ ------------
Net assets (note 7) $1,291,102,120 $874,847,101 $843,694,991
============== ============ ============
Preferred shares, at liquidation value $ 350,000,000 $300,000,000 $308,400,000
============== ============ ============
Preferred shares outstanding 3,500 12,000 12,336
============== ============ ============
Common shares outstanding 63,785,430 40,731,119 40,808,467
============== ============ ============
Net asset value per Common share outstanding
(net assets less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 14.75 $ 14.11 $ 13.12
============== ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1995
(Unaudited)
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $44,473,633 $27,669,712 $25,819,816
Taxable market discount -- 7,123 46,621
----------- ----------- -----------
Total income 44,473,633 27,676,835 25,866,437
----------- ----------- -----------
Expenses:
Management fees (note 6) 3,875,780 2,621,254 2,534,248
Preferred shares--remarketing/auction fees 433,904 308,904 337,879
Preferred shares--dividend disbursing agent fees 17,356 32,178 48,836
Shareholders' servicing agent fees and expenses 133,328 44,178 63,434
Custodian's fees and expenses 70,078 53,789 53,612
Directors' fees and expenses (note 6) 5,135 4,302 3,821
Professional fees 14,623 10,525 11,194
Shareholders' reports--printing and mailing expenses 133,402 86,575 99,205
Stock exchange listing fees 24,416 18,385 28,757
Investor relations expense 18,587 22,033 29,246
Other expenses 39,402 40,121 59,079
----------- ----------- -----------
Total expenses 4,766,011 3,242,244 3,269,311
----------- ----------- -----------
Net investment income 39,707,622 24,434,591 22,597,126
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions
(note 3) 2,040,683 (3,493,353) (6,704,215)
Net change in unrealized appreciation of investments 38,286,769 48,068,327 49,749,242
----------- ----------- -----------
Net gain from investments 40,327,452 44,574,974 43,045,027
----------- ----------- -----------
Net increase in net assets from operations $80,035,074 $69,009,565 $65,642,153
=========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPI NPM
6 months ended Year ended 6 months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 39,707,622 $ 77,349,172 $ 24,434,591 $ 48,011,778
Net realized gain (loss) from investment transactions 2,040,683 (976,603) (3,493,353) (2,198,448)
Net change in unrealized appreciation or depreciation
of investments 38,286,769 (114,951,624) 48,068,327 (101,035,737)
-------------- -------------- ------------ -------------
Net increase (decrease) in net assets from operations 80,035,074 (38,579,055) 69,009,565 (55,222,407)
-------------- -------------- ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (34,252,776) (71,046,899) (18,695,593) (38,299,487)
Preferred shareholders (6,887,880) (9,558,578) (6,066,950) (9,744,389)
From accumulated net realized gains from
investment transactions:
Common shareholders -- (3,806,398) -- (1,307,469)
Preferred shareholders -- -- -- (407,759)
-------------- -------------- ------------ -------------
Decrease in net assets from distributions
to shareholders (41,140,656) (84,411,875) (24,762,543) (49,759,104)
-------------- -------------- ------------ -------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued in
acquisition of NPN, NPU and NPB (note 1) -- -- -- --
Net proceeds from sale of Common shares -- 149,874,661 -- --
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- 12,259,938 -- --
Cost of offering Preferred shares (note 1) -- -- -- --
-------------- -------------- ------------ -------------
Net increase in net assets derived from capital
share transactions -- 162,134,599 -- --
-------------- -------------- ------------ -------------
Net increase (decrease) in net assets 38,894,418 39,143,669 44,247,022 (104,981,511)
Net assets at beginning of period 1,252,207,702 1,213,064,033 830,600,079 935,581,590
-------------- -------------- ------------ -------------
Net assets at end of period $1,291,102,120 $1,252,207,702 $874,847,101 $ 830,600,079
============== ============== ============ =============
Balance of undistributed net investment income
at end of period $ 1,723,671 $ 3,156,705 $ 2,586,654 $ 2,914,605
============== ============== ============ =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPT
6 months ended Year ended
4/30/95 10/31/94
<S> <C> <C>
OPERATIONS
Net investment income $ 22,597,126 $ 24,071,031
Net realized gain (loss) from investment transactions (6,704,215) (12,137,697)
Net change in unrealized appreciation or depreciation
of investments 49,749,242 (60,635,386)
------------ ------------
Net increase (decrease) in net assets from operations 65,642,153 (48,702,052)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (17,629,248) (17,956,574)
Preferred shareholders (5,934,635) (4,533,640)
From accumulated net realized gains from
investment transactions:
Common shareholders -- (593,119)
Preferred shareholders -- (118,525)
------------ ------------
Decrease in net assets from distributions
to shareholders (23,563,883) (23,201,858)
------------ ------------
CAPITAL SHARE TRANSACTIONS (note 2)
Common shares:
Net proceeds from Common shares issued in
acquisition of NPN, NPU and NPB (note 1) -- 442,239,803
Net proceeds from sale of Common shares -- --
Net proceeds from Common shares issued to
shareholders due to reinvestment of distributions
from net investment income and from net
realized gains from investment transactions -- --
Cost of offering Preferred shares (note 1) -- (155,897)
------------ ------------
Net increase in net assets derived from capital
share transactions -- 442,083,906
------------ ------------
Net increase (decrease) in net assets 42,078,270 370,179,996
Net assets at beginning of period 801,616,721 431,436,725
------------ ------------
Net assets at end of period $843,694,991 $801,616,721
============ ============
Balance of undistributed net investment income
at end of period $ 1,270,483 $ 2,237,240
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1995, 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), Nuveen Premium Income Municipal Fund 4, Inc. (NPT).
The Funds are registered under the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
On September 8, 1994, NPT acquired all of the net assets of Nuveen Premium
Income Municipal Fund 3, Inc. (NPN), Nuveen Premium Income Municipal Fund 5
(NPU) and Nuveen Premium Income Municipal Fund 6 (NPB) pursuant to a plan of
reorganization approved by the shareholders of the Funds on August 12, 1994.
The acquisition was accomplished by a tax-free exchange of 21,551,349 shares
of NPT (valued at $442,239,803) for 7,144,440 shares of NPN, 8,657,118 shares
of NPU and 5,745,310 shares of NPB. The combined net assets of the acquired
funds on that date of $442,239,803 included net depreciation of $12,148,054
which was combined with that of NPT. The net assets of NPT immediately after
the acquisition were $836,395,975.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term securities are traded and valued at amortized cost.
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 be settled a month or more after the transaction date. 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 their purchase
commitments. At April 30, 1995, NPM had outstanding purchase commitments of
$14,425,817. There were no such purchase commitments in either NPI or NPT.
Interest 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
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing all of their net
investment income, in addition to any significant amounts of net realized
gains from investments, to shareholders. The Funds currently consider
significant net realized gains 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.
<PAGE>
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and payment is made or
reinvestment is credited to shareholder accounts after month-end. Net realized
gains from securities transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized
capital gains are recorded on the ex-dividend date. The amount and timing of
such distributions are determined in accordance with federal income tax
regulations, which may differ from generally accepted accounting principles.
Accordingly, temporary over-distributions as a result of these differences may
result and will be classified as either distributions in excess of net
investment income or distributions in excess of accumulated net realized
capital gains, if applicable.
<TABLE>
Preferred Shares
NPI has issued and outstanding 700 shares of each of Series A, B, C, D and E
$100,000 stated value Preferred shares. The dividend rate on each Series may
change every 28 days as set by the Auction Agent, except for series E which
may change every 7 days.
The following 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, except for those Series which have lengthened their
current dividend periods from seven days to three years (as indicated below).
The number of shares outstanding, by series and in total, at April 30, 1995,
for each Fund is as follows:
<CAPTION>
NPM NPT
<S> <C> <C>
Number of shares:
Series M 2,000 2,200
Series T 3,000 2,000
Series T2 -- 1,328
Series W 2,000 1,680
Series Th 3,000 2,000
Series F 2,000* 1,800
Series F2 -- 1,328
------ ------
Total 12,000 12,336
====== ======
<FN>
*Three year period
Preferred share auction fees paid in connection with lengthening the dividend
periods on the Series noted above were recorded as a reduction of the proceeds
received from the public offering of Preferred shares.
</TABLE>
<PAGE>
<TABLE>
2. FUND SHARES
Transactions in Common shares were as follows:
<CAPTION>
NPI NPM
Six months ended Year ended Six months ended Year ended
4/30/95 10/31/94 4/30/95 10/31/94
<S> <C> <C> <C> <C>
Common shares:
Shares issued in connection with rights offering* -- 10,062,425 -- --
Shares issued in the acquisition of NPN, NPU and NPB -- -- -- --
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- 776,204 -- --
------ ---------- ------ ------
Net increase -- 10,838,629 -- --
====== ========== ====== ======
<CAPTION>
NPT
Six months ended Year ended
4/30/95 10/31/94
<S> <C> <C>
Common shares:
Shares issued in connection with rights offering* -- --
Shares issued in the acquisition of NPN, NPU and NPB -- 21,551,349
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions -- --
------ ----------
Net increase -- 21,551,349
====== ==========
<FN>
*NPI issued to shareholders of record on December 20, 1993, one
non-transferable right for each Common share held which entitled shareholders
to subscribe for additional shares at the rate of one share for each three
rights received. In January, 1994, based on subscriptions received, the Fund
issued 10,062,425 additional Common shares and recorded proceeds of
$149,874,661 net of $764,930 of offering costs.
</TABLE>
<PAGE>
<TABLE>
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments during the six months ended
April 30, 1995, were as follows:
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $45,470,250 $144,759,537 $173,970,821
Temporary municipal investments 35,950,000 106,100,000 36,820,000
SALES AND MATURITIES
Investments in municipal securities 47,442,759 169,067,044 173,923,820
Temporary municipal investments 37,850,000 82,100,000 36,170,000
=========== ============ ============
At April 30, 1995, the identified cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for each
Fund.
At October 31, 1994, the Funds' last fiscal year end, the Funds had unused capital
loss carryovers available for federal income tax purposes to be applied
against future capital gains, if any. If not applied the carryovers will
expire as follows:
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
Expiration year:
2001 $ -- $ -- $ 12,020
2002 976,603 2,198,448 19,416,144
-------- ---------- -----------
Total $976,603 $2,198,448 $19,428,164
======== ========== ===========
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1995, the Funds declared dividend distributions from their ordinary
income which were paid June 1, 1995, to shareholders of record on May 15,
1995, as follows:
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
Dividend per share $.0880 $.0765 $.0680
====== ====== ======
</TABLE>
<PAGE>
<TABLE>
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 1995, were as follows:
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
Gross unrealized:
Appreciation $57,363,484 $18,926,201 $11,034,556
Depreciation (23,039,743) (6,809,422) (16,047,850)
----------- ----------- -----------
Net unrealized appreciation (depreciation) $34,323,741 $12,116,779 $(5,013,294)
=========== =========== ===========
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 to the Adviser an annual management fee, payable monthly, at the
rates set forth below, which are based upon the average daily net asset value
of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125,000,000 .65 of 1%
For the next $125,000,000 .6375 of 1
For the next $250,000,000 .625 of 1
For the next $500,000,000 .6125 of 1
For the next $1,000,000,000 .6 of 1
For net assets over $2,000,000,000 .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 Directors who are affiliated with the Adviser or to their officers,
all of whom receive remuneration for their services to the Funds from the
Adviser.
</TABLE>
<PAGE>
<TABLE>
7. COMPOSITION OF NET ASSETS
At April 30, 1995, net assets consisted of:
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
Preferred shares, $25,000 stated value per share,
at liquidation value* $ 350,000,000 $300,000,000 $308,400,000
Common shares, $.01 par value per share 637,854 407,311 408,085
Paid-in surplus 903,352,774 565,428,158 563,780,203
Balance of undistributed net investment income 1,723,671 2,586,654 1,270,483
Accumulated net realized gain (loss) from investment
transactions 1,064,080 (5,691,801) (25,150,486)
Net unrealized appreciation or depreciation
of investments 34,323,741 12,116,779 (5,013,294)
-------------- ------------ ------------
Net assets $1,291,102,120 $874,847,101 $843,694,991
============== ============ ============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============== ============ ============
<FN>
*Stated value for NPI is $100,000 per
share.
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At April 30, 1995, the revenue sources by
municipal purpose for these investments, expressed as a percent of total
investments, were as
follows:
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 17% 18% 17%
Pollution Control Facilities 14 10 9
Health Care Facilities 11 12 13
Lease Rental Facilities 2 12 1
Electric Utilities 7 2 11
Transportation 7 9 8
Educational Facilities 3 4 9
Water / Sewer Facilities 1 3 3
Other 5 8 8
General Obligation Bonds 5 16 12
Escrowed Bonds 28 6 9
---- ---- ----
100% 100% 100%
==== ==== ====
</TABLE>
<PAGE>
Certain long-term and intermediate-term investments owned by the Funds are
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, either of which ensure the timely payment of principal and
interest in the event of default (41% for NPI, 29% for NPM, 30% for NPT).
Such insurance or escrow, however, does not guarantee the market value of
the municipal securities or the value of the Funds' shares.
All of the temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third
party domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
9. OTHER MATTERS
In connection with the Rights Offering described in note 2, certain legal
actions have been filed by NPI shareholders in federal district court in
Chicago against John Nuveen & Co. Incorporated, Nuveen Advisory Corp., and
directors of the Fund, alleging that the defendants violated federal and
state laws and the Fund's articles of incorporation in connection with the
Rights Offering. Fund shareholders have also filed actions against the Fund's
former outside legal counsel and in-house counsel to John Nuveen & Co.
Incorporated seeking unspecified damages and alleging, among other things,
negligence and professional malpractice. The defendants have denied the
allegations and are defending the suits. The Fund's Board of Directors has
created a committee, comprised of outside directors who are not defendants
in the suits, to investigate the claims being pursued in the Fund's name and
to explore all options. The Committee has substantially completed its
investigation. Any conclusions the Committee reaches will remain confidential
until the Court rules on certain motions now pending before it. While there
can be no assurance as to the outcome of these suits, based on their current
status Fund management believes that they will not have a material effect on
the Fund.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<CAPTION>
selected data for a common share outstanding throughout each period is as
follows:
Operating performance Dividends from net investment income
Net
realized &
Net asset Net unrealized
value invest- gain (loss) To To
beginning ment from invest- Common Preferred
of period income ments shareholders shareholderstt
NPI
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $14.140 $ .623 $ .632 $ (.537) $(.108)
Year ended 10/31,
1994 16.300 1.256 (2.016)** (1.172) (.156)
1993 15.790 1.431 .612 (1.364) (.169)
5 mos. ended
10/31/92 15.760 .602 .023 (.516) (.079)
Year ended 5/31,
1992 15.180 1.492 .492 (1.135) (.269)
1991 14.600 1.504 .532 (1.080) (.376)
1990 14.720 1.508 (.115) (1.080) (.433)
7/18/88 to
5/31/89 14.050 1.101 .741 (.747) (.268)
<CAPTION>
NPM
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 13.030 .600 1.088 (.459) (.149)
Year ended 10/31,
1994 15.600 1.179 (2.528) (.940) (.239)
1993 13.570 1.143 2.182 (.907) (.250)
7/23/92 to
10/31/92 14.050 .162 (.545) (.076) --
<CAPTION>
NPT
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 12.090 .554 1.054 (.432) (.146)
Year ended
10/31/94 14.870 1.069 (2.770) (.835) (.201)
2/19/93 to
10/31/93 14.050 .510 .972 (.416) (.073)
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Common
share
market
To To Organiza- Net asset value
Common Preferred tion and value end end of
shareholders shareholderstt offering costs of period
NPI
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 $ -- $ -- $ -- $14.750 $14.750
Year ended 10/31,
1994 (.072) -- -- 14.140 13.250
1993 -- -- -- 16.300 17.750
5 mos. ended
10/31/92 -- -- -- 15.790 15.875
Year ended 5/31,
1992 -- -- -- 15.760 16.250
1991 -- -- -- 15.180 15.375
1990 -- -- -- 14.600 15.000
7/18/88 to
5/31/89 -- -- (.157) 14.720 14.875
<CAPTION>
NPM
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 -- -- -- 14.110 12.625
Year ended 10/31,
1994 (.032) (.010) -- 13.030 11.375
1993 -- -- (.138) 15.600 14.875
7/23/92 to
10/31/92 -- -- (.021) 13.570 13.375
<CAPTION>
NPT
<S> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 -- -- -- 13.120 11.750
Year ended
10/31/94 (.031) (.005) (.007) 12.090 10.750
2/19/93 to
10/31/93 -- -- (.173) 14.870 14.250
<PAGE>
<CAPTION>
Ratios/Supplemental data
Total
invest- Ratio of
ment net
return Total Net assets Ratio of investment
on return on end of expenses income Portfolio
market net asset period (in to average to average turnover
valuet valuet thousands) net assets# net assets# rate
NPI
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 15.74% 8.31% $1,291,102 .76*% 6.33*% 4%
Year ended 10/31,
1994 (19.13) (5.88) 1,252,208 .77 6.08 15
1993 20.96 12.33 1,213,064 .79 6.28 11
5 mos. ended
10/31/92 .73 3.46 1,173,329 .78* 6.33* 2
Year ended 5/31,
1992 13.32 11.72 1,167,042 .66 6.71 2
1991 10.14 11.88 1,127,103 .65 6.97 1
1990 8.39 6.74 1,090,365 .65 6.98 4
7/18/88 to
5/31/89 4.38 10.44 1,089,152 .62* 6.92* 7
<CAPTION>
NPM
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 15.35 12.10 874,847 .77* 5.83* 17
Year ended 10/31,
1994 (17.76) (10.64) 830,600 .76 5.41 26
1993 18.47 22.31 935,582 .73 5.19 20
7/23/92 to
10/31/92 (10.38) (2.89) 552,570 .73* 4.77* 12
<CAPTION>
NPT
<S> <C> <C> <C> <C> <C> <C>
6 mos. ended
4/30/95 13.61 12.38 843,695 .81* 5.58* 22
Year ended
10/31/94 (19.12) (13.29) 801,617 .88 5.15 47
2/19/93 to
10/31/93 (2.13) 8.94 431,437 .82* 4.04* 10
<FN>
* Annualized.
** Includes effect of $(.187) per share due to dilution from rights offering.
t Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes
in stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if any,
and changes in net asset value per share.
tt The amounts shown are based on Common share equivalents.
# Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</TABLE>
<PAGE>
Our commitment to you
Photo of John Nuveen
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
For almost a century, John Nuveen & Co. Incorporated has concentrated its
resources and expertise in one area: municipal bonds. We are one of the oldest
and largest investment banking firms specializing exclusively in municipal
securities, and we strive to be the best.
Our approach to managing our shareholders' investments endures. We maintain
a sharp focus on the needs of prudent investors and their families, offer
investments of quality, and then work to make them better by seeking out
opportunity. We hold to a dedicated belief in the importance of research. And
we sustain a commitment to sound financial management through value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we strive to provide our
shareholders with the attractive level of income they need to achieve their
personal goals and aspirations.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
ETF5-JUN 95
