Nuveen Exchange-Traded Funds
Providing tax-free income to help you live your dreams
PREMIUM INCOME (NPI)
PREMIUM INCOME 2 (NPM)
PREMIUM INCOME 4 (NPT)
SEMIANNUAL REPORT/APRIL 30, 1997
Photographic image of couple walking on beach.
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Commonly used terms
13 Portfolio of investments
56 Statement of net assets
57 Statement of operations
58 Statement of changes in net assets
60 Notes to financial statements
68 Financial highlights
<PAGE>
Dear shareholder
"Shareholders continue to enjoy very attractive current yields generated by
portfolios of quality bonds."
Photographic image of headshot of Chairman and Chief Executive Officer of
Nuveen.
It is my pleasure to report to you on the performance of Nuveen's
exchange-traded funds. Over the past year, shareholders in these funds were
rewarded with attractive tax-free income. A hallmark of Nuveen's fixed-income
investments, this dependable tax-free income makes these funds an excellent
choice for those seeking a stable addition to their core investment portfolio.
To safeguard our shareholders' interests, Nuveen continues to work to find ways
to protect this level of income through changing market conditions.
The funds' sound performance came during a year of volatility in the
municipal bond market, including a mid-year decline and a post-election rally.
However, by continuing to seek out undervalued bonds in sectors and regions we
believe are fundamentally strong, we were able to generate very attractive
current yields for shareholders while also preserving capital.
As of April 30, 1997, shareholders in the funds covered in this report
were receiving annual tax-free yields on net asset value that ranged from
6.34% to 6.75%. To match these attractive yields, investors in the 36% federal
income tax bracket would have had to earn at least 9.91% on taxable
alternatives.
<PAGE>
During the same period, all of the funds outperformed the benchmark Lehman
Brothers Municipal Bond Index, which posted a 6.66% return. Over the past year,
the funds generated total returns, including reinvested dividends and capital
gains (if any) and changes in net asset value, of 7.48% to 9.44%, equivalent to
taxable total returns of 11.25% to 13.12% for investors in the 36% tax bracket.
The level of these returns gains added significance when viewed in the context
of bond market results for the past year, which reflect the rather flat
performance of 1996 and the concern over Federal Reserve deliberations in early
1997.
Nuveen has recently made significant and exciting additions to the investment
options we offer--that make it easier to keep more of what you earn. We
introduced three new equity and balanced funds for investors seeking both
long-term growth and current income. Further, Nuveen's municipal bond fund
selection is now one of the largest in the industry, since our merger with
Flagship Resources, Inc., a highly regarded sponsor of fixed-income mutual
funds. As a Nuveen shareholder, this merger offers you even greater access to
the municipal market.
For more complete information regarding Nuveen investment products, including
charges and expenses, call Nuveen at (800) 257-8787, or contact your financial
adviser for a prospectus. Please read the information carefully before you
invest.
On behalf of everyone at Nuveen, I thank you for your continued confidence
in us and our family of investments. You can continue to depend on us for
high-quality investment products that withstand the test of time. We look
forward to serving you in the future.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
June 12, 1997
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, reviews recent events
in the municipal market and offers insights into the strategies Nuveen uses to
manage your funds
How would you summarize the bond market over the past 12 months?
Throughout the past year, mixed economic reports produced conflicting
interest rate and inflation forecasts, which caused investors to view the
markets with alternating enthusiasm and uncertainty. In late 1996, evidence of
an economic slowdown, the strong U.S. dollar, and lack of inflationary pressures
combined to allay investor fears, sparking a rally in bonds that continued
through the post-election period. The early months of 1997 saw a reemergence of
talk about inflation, and the markets continue to keep a close eye on the
Federal Reserve to see how seriously it regards such talk.
Over much of the past 12 months, euphoria in the equity market focused
investors' attention on stocks and brought record amounts of new money into
equity-based mutual funds, bypassing the bond market. Some investors, concerned
about a potential stock market correction, decided to take their profits, but
adopted a wait-and-see attitude about investing capital gains, electing to go
with short-term vehicles until a clearer picture of market trends emerged. These
events affected demand for bond issues of all types during the past year. Only
recently have we begun to see some evidence that investors are evaluating the
effect of the huge run-up in stock prices and are rebalancing their portfolios
by gradually shifting some assets from stocks into bonds.
The actions of the Federal Reserve also continue to play a role in bond
market performance. Although the Fed altered interest rates only once in 1996,
at the very beginning of the year, anticipation of further moves kept the
markets restless. With one rate increase approved already in March of this year,
the concern about potential changes in monetary policy--and the effect of such
changes on the markets--continues in 1997.
<PAGE>
What strategies did you use to add value during this market?
The fluctuations of 1996 created specific inefficiencies in the market,
enabling Nuveen to uncover and take advantage of price discrepancies to improve
fund portfolios. For example, we were able to enhance the durability of the
funds' dividends by purchasing bonds with longer call protection. These bonds
were priced similarly to those with shorter calls as interest rates began to
rise in 1996, creating a value investing opportunity. As rates moved down during
the year, the bonds with longer call protection then appreciated in value more
than those with shorter calls.
What role does research play in helping you achieve the funds' objectives?
As an integral part of our portfolio management strategy, Nuveen Research
provides portfolio managers with objective appraisals of the creditworthiness of
new municipal issues, while maintaining surveillance of the credit performance
for all portfolio holdings. To track individual holdings, each Nuveen Research
analyst is responsible for a specific surveillance portfolio, which is defined
in terms of geography and sector (e.g., healthcare, housing). Specialization by
sector enables our Research teams to focus their credit quality evaluation
efforts and complement the vantage point of each portfolio manager.
<PAGE>
What is the current economic outlook?
The economy in the second quarter has grown at a slower pace than during
the first quarter, however, the growth still may be at a level that exceeds the
Federal Reserve's long-term targets. Interest rates on 30-year Treasuries have
moved in a range of between 6.65% to 7.20% over the past several months, and
expectations are that this range of rates may continue through the third
quarter.
Of course, that's a short-term outlook. By following a disciplined value
strategy and depending on fundamental research, the long-term outlook for our
municipal bond funds--and for Nuveen shareholders--is very good. We will
continue to look for opportunities in sectors like healthcare and public power
and in regions like the Midwest and the Sun Belt. And will continue to identify
bonds that are structured in ways that make them attractive through a complete
interest rate cycle.
Photographic image of Tom Spalding, Portfolio Manager at Nuveen.
Tom Spalding, head of Nuveen's portfolio management team, answers
investors' questions on develop ments in the municipal market.
<PAGE>
<TABLE>
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC.
NPI
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. The fund also paid
shareholders a capital gains distribution in December.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0795
6/12/96 $0.0795
7/11/96 $0.0795
8/13/96 $0.0795
9/11/96 $0.0795
10/10/96 $0.0795
11/13/96 $0.0795
12/11/96 $0.0795 $0.0292
1/13/97 $0.0795
2/12/97 $0.0795
3/12/97 $0.0795
4/11/97 $0.0795
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.75%
Taxable-equivalent yield 10.55%
Annual total return on NAV 7.48%
Taxable-equivalent total return 11.25%
Share price $14.125
NAV $14.76
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 goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. The fund also paid
shareholders a capital gains distribution in December.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0775
6/12/96 $0.0775
7/11/96 $0.0775
8/13/96 $0.0775
9/11/96 $0.0775
10/10/96 $0.0775
11/13/96 $0.0775
12/11/96 $0.0775 $0.0026
1/13/97 $0.0775
2/12/97 $0.0775
3/12/97 $0.0775
4/11/97 $0.0775
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.36%
Taxable-equivalent yield 9.94%
Annual total return on NAV 9.44%
Taxable-equivalent total return 13.12%
Share price $14.625
NAV $15.05
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
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends. The fund also paid
shareholders a capital gains distribution in December.
<CAPTION>
12 MONTH DIVIDEND HISTORY
Date Monthly Dividends Supplemental Dividends Capital Gains
<S> <C> <C> <C>
5/13/96 $0.0680
6/12/96 $0.0680
7/11/96 $0.0680
8/13/96 $0.0680
9/11/96 $0.0680
10/10/96 $0.0680
11/13/96 $0.0680
12/11/96 $0.0680 0.0035
1/13/97 $0.0680
2/12/97 $0.0680
3/12/97 $0.0680
4/11/97 $0.0680
<CAPTION>
FUND HIGHLIGHTS 4/30/97
<S> <C>
Yield 6.34%
Taxable-equivalent yield 9.91%
Annual total return on NAV 8.06%
Taxable-equivalent total return 11.51%
Share price $12.875
NAV $13.91
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
</TABLE>
<PAGE>
Commonly used terms
Yield
An exchange-traded fund's annualized monthly dividend on a given date (in the
case of this report, April 30, 1997) divided by its closing price per share on
that date.
Taxable equivalent yield
The return an investor subject to a given 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, the tax rate is assumed to be 36% for
shareholders, based on 1997 incomes of $124,650-$271,050 for investors filing
singly, $151,750-$271,050 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.
<PAGE>
Taxable equivalent total return
The total return an investor subject to a given income tax rate would need to
obtain from a fully taxable investment to equal the fund's stated total return
on NAV.
Leverage
A technique used to enhance the income produced for common shareholders by
a long-term municipal bond fund through the issuance of short-term preferred
shares. The proceeds from the sale of the preferred shares can be used to
purchase additional long-term bonds, thus increasing the portfolio's income
stream. Changes in net asset value per share, both up and down, are also
magnified by leverage.
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 six-month period ended April 30, 1997. Any
future repur chases will be reported to shareholders in the next annual or
semiannual report.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. (NPI)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.7%
$ 1,770,000 Alaska Housing Finance Corporation, Insured
Mortgage Program Bonds, 1990 First Series,
7.800%, 12/01/30 Aa1 12/00 at 102 $ 1,781,700
880,000 Alaska State Housing Finance Corporation,
Collateralized Home Mortgage Bonds, 1987
Series B, 8.750%, 12/01/16 Aaa 6/98 at 102 900,152
6,000,000 North Slope Borough, Alaska, General Obligation
Refunding Bonds of 1988, Series G,
8.350%, 6/30/98 A- No Opt. Call 6,275,700
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ARIZONA - 1.6%
3,160,000 The Industrial Development Authority of the City
of Phoenix, Arizona, Home Purchase Mortgage
Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Series 1988B, 8.200%, 4/01/22
(Alternative Minimum Tax) AAA 10/98 at 102 3,289,592
12,465,000 The Industrial Development Authority of the County
of Pima (Arizona), Industrial Development Lease
Obligation Refunding Revenue Bonds, 1988 Series
A (Irvington Project), 7.250%, 7/15/10 Aaa 1/02 at 103 13,748,770
3,795,000 The Industrial Development Authority of the County
of Pima, Single Family Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program),
Series 1988, 8.125%, 9/01/20 (Alternative
Minimum Tax) AAA 3/99 at 102 3,951,658
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CALIFORNIA - 15.9%
17,000,000 California Health Facilities Financing Authority,
Kaiser Permanente, Medical Care Program,
Semiannual Tender Revenue Bonds, 1985 Tender
Bonds, 5.550%, 8/15/25 AA 2/02 at 101 16,039,840
14,650,000 California Health Facilities Financing Authority,
Hospital Revenue Bonds (Children's Hospital of
Los Angeles), 1991 Series A, 7.125%, 6/01/21
(Pre-refunded to 6/01/01) Aaa 6/01 at 102 16,218,576
26,725,000 State Public Works Board of the State of California,
Lease Revenue Refunding Bonds (The Regents of
the University of California), 1993 Series A
(Various University of California Projects),
5.500%, 6/01/21 A1 6/03 at 102 25,178,424
11,395,000 State Public Works Board of the State of California,
Lease Revenue Bonds (Department of Corrections),
1993 Series E (California State Prison-Madera
County (II)), 5.500%, 6/01/15 A No Opt. Call 11,221,340
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 15,975,000 State of California Department of Transportation
East Bay State Building Authority, Certificates of
Participation, Series 1991A, 6.500%, 3/01/16 A 3/01 at 102 $ 16,636,525
13,000,000 State of California, Various Purpose General
Obligation Refunding Bonds, 5.150%, 10/01/19 A1 10/03 at 102 11,893,570
15,285,000 Los Angeles Convention and Exhibition Center
Authority, Lease Revenue Bonds, 1993 Refunding
Series A, The City of Los Angeles (California),
5.375%, 8/15/18 Aaa 8/03 at 102 14,414,978
5,000,000 Department of Water and Power of The City of Los
Angeles, California, Electric Plant Refunding
Revenue Bonds, Second Issue of 1993,
4.750%, 11/15/19 Aaa 11/03 at 102 4,290,850
12,250,000 Los Angeles County Transportation Commission
(California), Sales Tax Revenue Refunding Bonds,
Series 1991-B, 5.750%, 7/01/18 AA- 7/01 at 100 12,167,313
1,285,000 City of Martinez (California), Home Mortgage
Revenue Bonds, 1983 Issue A, 10.750%, 2/01/16 Aaa No Opt. Call 1,953,637
4,125,000 Redevelopment Agency of the City of Moorpark,
Moorpark Redevelopment Project, 1993 Tax
Allocation Bonds, 6.125%, 10/01/18 A- 10/03 at 102 4,140,881
20,000,000 City of Pomona, California, Single Family Mortgage
Revenue Refunding Bonds (GNMA and FNMA
Mortgage-Backed Securities), Series 1990A,
7.600%, 5/01/23 Aaa No Opt. Call 25,015,200
3,955,000 City of Redlands, California, Refunding Certificates
of Participation (Loma Linda University Medical
Center Project), Series 1993-D, 5.000%, 12/01/22 Aaa 12/03 at 102 3,485,383
5,000,000 Sacramento, California, Municipal Utility District,
Electric Revenue Refunding Bonds, 1993 Series D,
5.250%, 11/15/20 Aaa 11/03 at 102 4,616,000
San Bernardino Joint Powers Financing Authority,
Tax Allocation Refunding Bonds, Series 1995A:
6,675,000 5.750%, 10/01/15 Aaa 10/05 at 102 6,655,843
12,500,000 5.750%, 10/01/25 Aaa 10/05 at 102 12,404,125
3,000,000 San Diego Public Facilities Financing Authority
Sewer Revenue Bonds, Series 1993,
5.250%, 5/15/20 Aaa 5/03 at 102 2,771,940
17,540,000 The Regents of the University of California,
Refunding Revenue Bonds (Multiple Purpose
Projects), Series B, 4.750%, 9/01/21 Aaa 9/03 at 102 14,920,226
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 2.9%
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991D:
$ 9,450,000 7.750%, 11/15/13 (Alternative Minimum Tax) Baa No Opt. Call $ 11,241,248
8,275,000 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 9,106,555
3,500,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1992B,
7.250%, 11/15/23 (Alternative Minimum Tax) Baa 11/02 at 102 3,765,160
8,700,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1992C,
6.750%, 11/15/22 (Alternative Minimum Tax) Baa 11/02 at 102 9,040,170
3,115,000 Colorado Local Single Family Mortgage Revenue
Bonds (City and County of Denver, Colorado -
Issuer, GNMA Mortgage-Backed Securities
Program), Series 1988A, 8.125%, 12/01/20
(Alternative Minimum Tax) AAA 12/98 at 102 3,235,052
1,023,489 El Paso County, Colorado, Single Family Mortgage
Revenue Tax-Exempt Refunding Bonds, Series
1992A Class A-2, 8.750%, 6/01/11 Aaa No Opt. Call 1,103,230
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DISTRICT OF COLUMBIA - 2.1%
10,740,000 District of Columbia, Hospital Revenue Refunding
Bonds (Providence Hospital Issue), Series 1988A,
7.875%, 12/01/15 AA 12/98 at 102 11,455,069
14,800,000 District of Columbia Housing Finance Agency,
Collateralized Single Family Mortgage Revenue
Bonds, Series 1988E-4, 6.375%, 6/01/26
(Alternative Minimum Tax) AAA 12/04 at 103 15,043,756
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FLORIDA - 4.4%
9,775,000 Florida Housing Finance Agency, GNMA
Collateralized Home Ownership Mortgage
Revenue Bonds, 1988 Series G1 Bonds,
8.300%, 6/01/20 (Alternative Minimum Tax) Aaa 12/98 at 103 10,172,256
9,290,000 State of Florida, Full Faith and Credit Department
of Transportation Right-of-Way Acquisition and
Bridge Construction Bonds, Series 1995,
5.800%, 7/01/21 Aa 7/05 at 101 9,247,266
Greater Orlando Aviation Authority, Airport
Facilities Revenue Bonds, Series 1988 of the City of
Orlando, Florida (Alternative Minimum Tax):
1,470,000 8.375%, 10/01/16 (Pre-refunded to 10/01/98) A1 10/98 at 102 1,580,735
13,530,000 8.375%, 10/01/16 A1 10/98 at 102 14,439,216
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
City of Pensacola Health Facilities Authority, Health
Facilities Revenue Refunding Bonds, Series 1988 (Daughters
of Charity National Health System Sacred Heart Hospital of
Pensacola Florida):
$ 11,655,000 7.875%, 1/01/08 (Pre-refunded to 1/01/98) Aaa 1/98 at 101 1/2 $ 12,130,407
9,435,000 7.875%, 1/01/11 (Pre-refunded to 1/01/98) Aaa 1/98 at 101 1/2 9,819,854
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GEORGIA - 3.2%
7,700,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series Q, 8.375%, 1/01/16 A 1/98 at 102 8,071,448
5,850,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series O, 8.125%, 1/01/17 A 1/98 at 102 6,117,053
2,210,000 Urban Residential Finance Authority of the City of
Atlanta, Georgia, Single Family Mortgage Revenue
Bonds (GNMA Collateralized Home Mortgage
Program), Series 1988, in cooperation with the
Housing Authority of Fulton County, Georgia,
8.250%, 10/01/21 (Alternative Minimum Tax) AAA 10/98 at 103 2,300,522
23,420,000 Development Authority of Monroe County (Georgia),
Pollution Control Revenue Bonds (Georgia Power
Company Plant Scherer Project), Second Series
1994, 6.750%, 10/01/24 A1 10/99 at 102 24,376,707
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 5.2%
8,230,000 Illinois Development Finance Authority, Pollution
Control Refunding Revenue Bonds, 1994 Series A
(Illinois Power Company Project), 5.700%, 2/01/24 Aaa 2/04 at 102 8,025,238
8,500,000 Illinois Educational Facilities Authority, Revenue
Refunding Bonds, The University of Chicago,
Series 1993B, 5.600%, 7/01/24 Aa1 7/03 at 102 8,095,400
5,000,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1992 (Highland Park Hospital),
6.200%, 10/01/22 Aaa 10/02 at 102 5,084,300
2,000,000 Illinois Health Facilities Authority Revenue Bonds,
Series 1997A (Highland Park Hospital Project),
5.750%, 10/01/26 (WI) Aaa 10/07 at 102 1,948,700
12,700,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1988B (Evangelical Hospitals Corporation),
8.100%, 1/01/08 (Pre-refunded to 1/01/99) Aaa 1/99 at 102 13,584,682
5,890,000 Illinois Housing Development Authority, Residential
Mortgage Revenue Bonds, 1988 Series C,
8.100%, 2/01/22 (Alternative Minimum Tax) Aa 8/98 at 102 6,087,079
5,695,000 Illinois Housing Development Authority, Residential
Mortgage Revenue Bonds, 1988 Series C,
8.100%, 8/01/17 Aa 8/98 at 103 5,968,303
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 6,000,000 City of Chicago (Illinois), Chicago-O'Hare
International Airport, General Airport Second Lien,
Revenue Refunding Bonds, 1993 Series C,
5.000%, 1/01/18 Aaa 1/04 at 102 $ 5,402,400
5,000,000 City of Chicago, Collateralized Single Family
Mortgage Revenue Bonds, Series 1996-A,
7.000%, 9/01/27 (Alternative Minimum Tax) Aaa 3/06 at 105 5,477,850
785,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992B,
9.000%, 6/01/06 Aaa No Opt. Call 998,449
4,925,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1992A,
9.000%, 6/01/06 Aaa No Opt. Call 6,264,157
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INDIANA - 3.7%
2,550,000 Indiana State Office Building Commission,
Correctional Facilities Program Revenue Bonds,
Series 1995A, 5.500%, 7/01/20 Aaa 7/05 at 102 2,445,119
30,000,000 The Indianapolis Local Public Improvement Bond
Bank, Series 1988 D Bonds, 8.500%, 2/01/18
(Pre-refunded to 2/01/98) N/R 2/98 at 102 31,588,800
8,000,000 Metropolitan School District of Steuben County Middle
School Building Corporation, First Mortgage
Bonds, Series 1995, Steuben County, Indiana,
6.375%, 7/15/16 Aaa 7/05 at 102 8,396,960
5,300,000 Whitley County Middle School Building Corporation,
First Mortgage Bonds, Series 1994, Columbia City,
Indiana, 6.250%, 7/15/15 Aaa 1/04 at 102 5,488,150
- -----------------------------------------------------------------------------------------------------------------
IOWA - 0.8%
3,000,000 Iowa Finance Authority, Private College Refunding
Revenue Bonds (Drake University Project), Series
1996, 5.400%, 12/01/16 Aaa 12/05 at 102 2,868,900
5,785,000 Iowa Finance Authority, Variable Rate Demand
Industrial Revenue Refunding Bonds, Series A
1989 (Urbandale Hotel Corporation Project No.
00475), 8.500%, 8/01/16 (Alternative Minimum
Tax) (Pre-refunded to 7/15/14) AAA 7/14 at 100 7,521,136
- -----------------------------------------------------------------------------------------------------------------
KANSAS - 0.8%
9,345,000 Sedgwick County, Kansas and Shawnee County,
Kansas, GNMA Collateralized Mortgage Revenue
Bonds, 1988 Series E, 8.250%, 11/01/20
(Alternative Minimum Tax) AAA 11/98 at 103 9,764,404
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
LOUISIANA - 0.8%
$ 7,660,000 Louisiana Public Facilities Authority, Extended Care
Facilities Revenue Bonds (Comm-Care Corporation
Project), Series 1994, 11.000%, 2/01/14 BBB No Opt. Call $ 10,323,229
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
3,000,000 Massachusetts Industrial Finance Agency, Resource
Recovery Revenue Bonds, SEMASS Project, Series
1991B, 9.250%, 7/01/15 (Alternative Minimum Tax) N/R 7/01 at 103 3,362,970
8,800,000 Massachusetts Water Resources Authority General
Revenue Bonds, 1992 Series A, 5.500%, 7/15/22 A 7/02 at 100 8,258,184
- -----------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.6%
4,000,000 School District of the City of Detroit, Wayne County,
Michigan, School Building and Site Improvement
and Refunding Bonds (Unlimited Tax General
Obligation), Series 1993, 5.400%, 5/01/13 AA 5/03 at 102 3,885,320
8,870,000 City of Detroit, Michigan, Sewage Disposal System
Revenue Bonds, Series 1995-A, 5.000%, 7/01/25 Aaa 7/05 at 100 7,862,279
9,625,000 Livonia Public Schools School District, County of
Wayne, State of Michigan, 1993 Refunding Bonds,
5.500%, 5/01/21 Aaa 5/03 at 102 9,187,448
- -----------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.5%
4,375,000 Minnesota Housing Finance Agency, Single Family
Mortgage Bonds, 1988 Series C, 8.500%, 7/01/19
(Alternative Minimum Tax) AA+ 7/98 at 102 4,513,600
2,945,000 The Minneapolis/Saint Paul Housing Finance Board,
Single Family Mortgage Revenue Bonds
(Minneapolis/Saint Paul Family Housing Program,
Phase X, FNMA and GNMA Mortgage-Backed
Securities Program), Series 1994, 7.500%, 11/01/27
(Alternative Minimum Tax) AAA 11/04 at 102 3,093,870
21,970,000 The Housing and Redevelopment Authority of the
City of Saint Paul, Minnesota, Sales Tax Revenue
Refunding Bonds (Civic Center Project), Series
1996, 7.100%, 11/01/23 Aaa 11/15 at 103 25,818,046
2,900,000 The Housing and Redevelopment Authority of the
City of Saint Paul, Minnesota, Single Family
Mortgage Revenue Bonds, Refunding Series
1991-B, 7.250%, 9/01/11 Aa No Opt. Call 3,047,871
8,175,000 Port Authority of the City of Saint Paul, Energy
Park Tax Increment Revenue Refunding Bonds,
Series 1988, 8.000%, 12/01/07 (Pre-refunded
to 12/01/98) AAA 12/98 at 102 8,529,877
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MISSOURI - 1.6%
$ 7,000,000 Missouri Housing Development Commission Single
Family Mortgage Revenue Bonds (Homeownership
Loan Program), 1996 Series C, 7.450%, 9/01/27
(Alternative Minimum Tax) AAA 3/07 at 105 $ 7,703,570
11,120,000 Francis Howell School District, St. Charles County,
Missouri, General Obligation Refunding Bonds,
Series 1994A, 7.800%, 3/01/08 Aaa No Opt. Call 13,518,918
- -----------------------------------------------------------------------------------------------------------------
NEVADA - 0.8%
10,000,000 Clark County School District, Nevada, General
Obligation, School Improvement Bonds, Series
1988A, 8.000%, 3/01/08 (Pre-refunded to 3/01/98) N/R 3/98 at 102 10,521,300
- -----------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 2.3%
10,000,000 Business Finance Authority of the State of New
Hampshire, Pollution Control Refunding Revenue
Bonds (The United Illuminating Company Project-
1993 Series A), 5.875%, 10/01/33 BBB- 10/03 at 102 9,292,200
11,000,000 New Hampshire Housing Finance Authority, Single
Family Mortgage Revenue Bonds, 1993 Series B,
6.050%, 7/01/25 Aa 7/03 at 102 10,998,900
9,135,000 New Hampshire Hosing Finance Authority Single
Family Mortgage Acquisition Revenue Bonds,
1996 Series B, 6.400%, 1/01/27 (Alternative
Minimum Tax) Aa 7/06 at 102 9,268,645
- -----------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4%
5,445,000 New Mexico Mortgage Finance Authority, Single
Family Mortgage Purchase Refunding Senior
Bonds, 1992 Series A, 6.900%, 7/01/24 Aa1 7/02 at 102 5,659,097
- -----------------------------------------------------------------------------------------------------------------
NEW YORK - 10.0%
12,365,000 New York State Energy Research and Development Authority,
Facilities Revenue Bonds, Series 1993 A (Consolidated Edison
Company of New York, Inc.
Project), 6.000%, 3/15/28 (Alternative Minimum Tax) A1 3/03 at 102 12,375,510
20,030,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home FHA-Insured
Mortgage Revenue Bonds, 1993 Series B,
5.500%, 2/15/22 AAA 2/04 at 102 18,953,988
18,000,000 Metropolitan Transportation Authority (New York),
Commuter Facilities 1987 Service Contract Bonds,
Series 2, 8.000%, 7/01/18 (Pre-refunded to 7/01/98) Aaa 7/98 at 102 19,166,040
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 7,060,000 Municipal Assistance Corporation for the City of
New York (A Public Benefit Corporation of the
State of New York), Series 61 Bonds,
6.875%, 7/01/07 (Pre-refunded to 7/01/97) AA 7/97 at 102 $ 7,237,277
11,540,000 Municipal Assistance Corporation for the City of
New York, New York, Series 60 Bonds,
7.000%, 7/01/06 (Pre-refunded to 7/01/97) AA 7/97 at 102 11,832,077
7,500,000 The City of New York, General Obligation Bonds,
Fiscal 1991 Series 9.500%, 6/01/03 Baa1 No Opt. Call 9,029,025
10,000,000 The City of New York, General Obligation Bonds,
Fiscal 1996 Series G, 5.750%, 2/01/07 Baa1 2/06 at 101 1/2 9,999,000
10,000,000 The City of New York, General Obligation Bonds,
Fiscal 1997 Series G, 6.000%, 10/15/26 Baa1 10/07 at 101 9,710,700
12,930,000 New York City Municipal Water Finance Authority,
Water and Sewer Revenue Bonds, Fiscal 1993
Series A, 5.500%, 6/15/20 A2 6/02 at 100 12,164,544
10,000,000 New York City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Fiscal
1996 Series B, 5.750%, 6/15/26 Aaa 6/06 at 101 9,936,300
7,955,000 New York City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Series
1992C, 6.500%, 6/15/21 (Pre-refunded to 6/15/97) Aaa 6/97 at 101 1/2 8,100,815
- -----------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.3%
16,415,000 North Carolina Eastern Municipal Power Agency,
Power System Revenue Bonds, Refunding Series
1988A, 8.000%, 1/01/21 (Pre-refunded to 1/01/98) Aaa 1/98 at 102 17,183,058
- -----------------------------------------------------------------------------------------------------------------
OHIO - 1.4%
7,065,000 Ohio Housing Finance Agency, Single Family
Mortgage Revenue Bonds (GNMA Mortgage-
Backed Securities Program), 1988 Series B,
8.250%, 12/15/19 (Alternative Minimum Tax) AAA 12/98 at 102 7,473,357
11,300,000 State of Ohio, Turnpike Revenue Bonds, 1994 Series
A, Issued by the Ohio Turnpike Commission,
5.750%, 2/15/24 AA- 2/04 at 102 11,139,427
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5%
11,770,000 Oklahoma Housing Finance Agency, GNMA
Collateralized Single Family Mortgage Revenue
Bonds, Series 1988A, 8.250%, 12/01/20 (Alternative
Minimum Tax) AAA 12/98 at 102 12,261,986
6,750,000 Washington County Medical Authority (Bartlesville,
Oklahoma), Hospital Revenue Bonds (Jane Phillips
Episcopal Hospital), Series 1989A,
8.500%, 11/01/10 (Pre-refunded to 5/01/99) N/R 5/99 at 102 7,373,498
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA - 4.2%
$ 10,000,000 Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1993 - 37A,
5.450%, 10/01/17 AA+ 10/03 at 102 $ 9,606,900
14,500,000 County of Allegheny, Pennsylvania, Airport Revenue
Bonds, Series 1988C (Greater Pittsburgh
International Airport), 8.250%, 1/01/16
(Alternative Minimum Tax) Aaa 1/98 at 102 15,140,030
12,875,000 Allegheny County Hospital Development Authority
(Pennsylvania), Health Center Revenue Bonds,
Series 1992A (Presbyterian University Health
System, Inc. Project), 6.250%, 11/01/23 Aaa 11/02 at 100 13,190,180
5,000,000 The School District of Philadelphia, Pennsylvania,
General Obligation Bonds, Series B of 1995,
5.500%, 9/01/25 Aaa 9/05 at 102 4,782,100
10,180,000 City of Philadelphia, Pennsylvania, Water and Sewer
Revenue Bonds, Sixteenth Series, 7.500%, 8/01/10
(Pre-refunded to 8/01/01) AAA 8/01 at 102 11,414,325
- -----------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.2%
17,250,000 South Carolina Jobs-Economic Development
Authority, Hospital Revenue Bonds (Anderson
Area Medical Center, Inc.), Series 1996,
5.250%, 2/01/26 Aaa 2/06 at 102 15,894,840
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 9.0%
10,305,000 Alliance Airport Authority, Inc., Special Facilities
Revenue Bonds, Series 1990 (American Airlines,
Inc. Project), 7.500%, 12/01/29 (Alternative
Minimum Tax) Baa2 12/00 at 102 10,994,405
11,020,000 Brazos River Authority (Texas), Collateralized
Pollution Control Revenue Bonds (Texas Utilities
Electric Company Project), Series 1994A,
7.875%, 3/01/21 (Alternative Minimum Tax) Baa1 3/01 at 102 12,027,008
10,095,000 Brazos River Authority (Texas), Collateralized
Revenue Refunding Bonds (Houston Lighting &
Power Company Project), Series 1988A,
8.250%, 5/01/19 A2 5/98 at 102 10,593,794
5,565,000 Dallas-Forth Worth International Airport Facility
Improvement Corporation, American Airlines, Inc.
Revenue Bonds, Series 1990, 7.500%, 11/01/25
(Alternative Minimum Tax) Baa2 11/00 at 102 5,918,934
40,000,000 Harris County Health Facilities Development
Corporation, Adjustable Convertible Extendable
Securities (Greater Houston Pooled Health Care
Loan Program), Series 1985B, 7.375%, 12/01/25
(Mandatory put 12/01/98) Aa3 11/97 at 100 40,324,000
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 3,385,000 Harris County, Texas, Toll Road Senior Lien Revenue
Bonds, Series 1985-B, 8.700%, 8/15/17
(Pre-refunded to 8/15/97) AAA 8/97 at 103 $ 3,533,297
12,700,000 Harris County, Texas, Toll Road Multiple Mode
Senior Lien Revenue Bonds, Series 1985-D,
8.300%, 8/15/17 (Pre-refunded to 8/15/98) AAA 8/98 at 103 13,728,573
15,000,000 Harris County, Texas, Toll Road Senior Lien Revenue
Refunding Bonds, Series 1994, 5.300%, 8/15/13 Aaa 8/04 at 102 14,639,250
4,500,000 Tyler Health Facilities Development Corporation,
Hospital Refunding Revenue Bonds (East Texas
Hospital Foundation Project), Series 1988A,
8.250%, 11/01/06 (Pre-refunded to 11/01/98) N/R 11/98 at 102 4,840,380
- -----------------------------------------------------------------------------------------------------------------
UTAH - 2.3%
6,550,000 Intermountain Power Agency, Utah, Power Supply
Revenue Refunding Bonds, 1987 Series D,
8.625%, 7/01/21 A1 7/97 at 102 6,728,291
3,000,000 Intermountain Power Agency, Utah, Power Supply
Revenue Refunding Bonds, 1987 Series C,
8.625%, 7/01/21 (Pre-refunded to 7/01/97) Aaa 7/97 at 102 3,083,820
20,000,000 Intermountain Power Agency (Utah), Power Supply
Revenue Bonds, Series 1987B, 7.200%, 7/01/19 A1 7/97 at 102 20,497,000
- -----------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3%
1,000,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1987 Series C,
Subseries C-7, 8.375%, 1/01/28 (Alternative
Minimum Tax) Aa1 1/99 at 102 1,002,860
3,355,000 Virginia Housing Development Authority,
Commonwealth Mortgage Bonds, 1992 Series
B-AMT, Subseries B-7, 5.650%, 1/01/27
(Alternative Minimum Tax) Aa1 1/02 at 102 3,215,231
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON - 12.1%
5,000,000 Washington Health Care Facilities Authority,
Revenue Bonds, Series 1987 (Virginia Mason
Medical Center, Seattle), 8.000%, 7/01/15 Aaa 7/97 at 102 5,133,200
12,900,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1993A, 5.700%, 7/01/17 Aaa 7/03 at 102 12,589,368
23,370,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1993B, 5.600%, 7/01/15 Aaa 7/03 at 102 22,755,135
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 4,300,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds, Series
1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 $ 4,660,684
15,960,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds,
Series 1989A, 7.500%, 7/01/15
(Pre-refunded to 7/01/99) Aaa 7/99 at 102 17,243,024
7,500,000 Washington Public Power Supply System, Nuclear
Project No. 2 Refunding Revenue Bonds, Series
1991A, 6.000%, 7/01/12 Aa1 7/01 at 100 7,539,000
14,440,000 Washington Public Power Supply System, Nuclear
Project No. 2 Refunding Revenue Bonds, Series
1993A, 5.750%, 7/01/12 Aa1 7/03 at 102 14,259,067
6,770,000 Washington Public Power Supply System, Nuclear
Project No. 2 Refunding Revenue Bonds, Series
1993B, 5.625%, 7/01/12 Aa1 7/03 at 102 6,600,953
21,530,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds, Series
1993C, 5.375%, 7/01/15 Aa1 7/03 at 102 20,175,763
13,500,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds, Series
1989B, 7.250%, 7/01/15 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 14,632,380
17,050,000 Municipality of Metropolitan Seattle, (Seattle,
Washington), Sewer Refunding Revenue Bonds,
Series Z, 5.500%, 1/01/33 Aaa 1/03 at 102 15,882,580
6,360,000 Public Utility District No. 1 of Snohomish County,
Washington, Generation System Revenue Bonds,
Series 1993, 5.500%, 1/01/14 Aaa 1/03 at 100 6,213,720
7,000,000 City of Spokane, Washington, Regional Solid Waste
Management System Revenue Bonds, Series 1989B,
7.750%, 1/01/11 (Alternative Minimum Tax) Aaa 1/99 at 102 7,460,250
- -----------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2%
15,000,000 West Virginia Housing Development Fund, Housing
Finance Bonds, 1992 Series D, 7.050%, 11/01/24 Aaa 5/02 at 102 15,776,250
- -----------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4%
5,250,000 Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series 5.500%, 7/01/25 Baa1 7/05 at 100 4,938,833
- -----------------------------------------------------------------------------------------------------------------
$1,234,983,489 Total Investments - (cost $1,230,212,288) - 98.1% 1,267,025,305
================
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 1,300,000 The Medical Clinic Board of the City of Birmingham-
UAHSF, Medical Clinic Revenue Bonds, UAHSF
Series 1991, Variable Rate Demand Bonds,
3.850%, 12/01/26+ A-1+ $ 1,300,000
700,000 Irvine Ranch Water District Variable Rate Demand
Bonds, 3.750%, 6/01/15+ VMIG-1 700,000
700,000 Health and Educational Facilities Authority of the
State of Missouri, Variable Rate Demand Bonds,
Health Facilities Revenue Bonds (St. Francis'
Medical Center), Series 1996A, 4.100%, 6/01/26+ A-1+ 700,000
225,000 New York City Municipal Water Finance Water and
Sewer System Revenue 1994 G, Variable Rate
Demand Bonds, 3.950%, 6/15/24+ VMIG-1 225,000
1,700,000 Santa Clara County Transit District, Refunding
Equipment Trust Certificates, Variable Rate
Demand Bonds, 3.950%, 6/01/15+ VMIG-1 1,700,000
$ 4,625,000 Total Temporary Investments - 0.4% 4,625,000
===============
Other Assets Less Liabilities - 1.5% 20,005,604
Net Assets - 100% $1,291,655,909
==============
<PAGE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 69 $ 652,255,010 51%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 25 241,147,958 19
PORTFOLIO OF A+ A1 8 117,069,453 9
INVESTMENTS A, A- A, A2, A3 9 83,479,469 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 13 115,386,467 9
TEMPORARY Non-rated Non-rated 5 57,686,948 5
INVESTMENTS):
TOTAL 129 $1,267,025,305 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** 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.
(WI) Security purchased on when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALASKA - 0.5%
$ 3,500,000 Anchorage Parking Authority, Lease Revenue
Refunding Bonds, Series 1993 (5th Avenue
Garage Project), 6.750%, 12/01/08 Baa1 12/02 at 102 $ 3,739,365
1,020,000 City of Valdez, Alaska, Home Mortgage Revenue
Refunding Bonds, 1992 Series, 7.900%, 2/01/10 A1 8/02 at 102 1,095,653
- -----------------------------------------------------------------------------------------------------------------
ARIZONA - 3.2%
The Industrial Development Authority of the
County of Mohave, Hospital System Revenue
Refunding Bonds (Medical Environments, Inc.
and Phoenix Baptist Hospital and Medical
Center, Inc.), Series 1993:
5,705,000 6.250%, 7/01/03 Aaa No Opt. Call 6,102,524
3,000,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) Aaa 7/03 at 102 3,339,210
City of Phoenix (Arizona), Civic Improvement
Corporation, Wastewater System Lease Revenue
Bonds, Series 1993:
9,000,000 6.125%, 7/01/14 (Pre-refunded to 7/01/03) AAA 7/03 at 102 9,736,290
4,380,000 4.750%, 7/01/23 A1 7/04 at 102 3,725,234
5,410,000 The Industrial Development Authority of the
County of Pima (Arizona), Industrial Development
Lease Obligation Refunding Revenue Bonds, 1988
Series A (Irvington Project), 7.250%, 7/15/10 Aaa 1/02 at 103 5,967,176
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.4%
10,500,000 State Public Works Board of the State of California
Lease Revenue Bonds (The Trustees of The
California State University), 1992 Series A (Various
California State University Project),
6.700%, 10/01/17 (Pre-refunded to 10/01/02) Aaa 10/02 at 102 11,638,515
7,150,000 State Public Works Board of the State of California,
Lease Revenue Bonds (The Trustees of the
California State University), 1994 Series A (Various
California State University Projects),
6.375%, 10/01/19 A 10/04 at 102 7,510,861
17,500,000 State Public Works Board of the State of California,
Lease Revenue Bonds (Department of Corrections),
1994 Series A (California State of Prison-Monterey
County (Soledad II), 6.875%, 11/01/14
(Pre-refunded to 11/01/04) Aaa 11/04 at 102 19,956,825
15,480,000 State Public Works Board of the State of California,
Lease Revenue Bonds (The Trustees of The
California State University), 1992 Series A (Various
California State University Projects),
6.625%, 10/01/10 (Pre-refunded to 10/01/02) A 10/02 at 102 17,048,898
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 30,000,000 Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue Bonds Series 1995A,
0.000%, 1/01/21 Baa No Opt. Call $ 6,661,500
5,000,000 City of Loma Linda, California, Hospital Revenue
Bonds (Loma Linda University Medical Center
Project), Series 1993-A, 6.500%, 12/01/18 BBB 12/03 at 102 5,102,700
12,980,000 Los Angeles Community College District, Refunding
Certificates of Participation, 1992 Series A, Laacd
Improvement Corporation, 6.000%, 8/15/20 Aaa 2/02 at 102 13,112,007
3,715,000 Community Development Financing Authority of
the Community Redevelopment Agency of the
City of Los Angeles, California Pooled Financing
Bonds, Series D (Crenshaw Redevelopment
Project), 7.000%, 9/01/14 Ba1 9/02 at 102 3,902,125
7,000,000 Los Angeles State Building Authority, Lease Revenue
Refunding Bonds (State of California Department
of General Services Lease), 1993 Series A,
5.625%, 5/01/11 A No Opt. Call 7,030,310
5,000,000 Los Angeles County Public Works Finance
Authority, Revenue Bonds, Series 1994A
(Los Angeles County Regional Park and Open
Space District), 6.125%, 10/01/10 Aa 10/04 at 102 5,230,800
10,000,000 Los Angeles County Transportation Commission
(California), Proposition C Sales Tax Revenue Bonds,
Second Senior Bonds, Series 1992-A,
6.750%, 7/01/19 (Pre-refunded to 7/01/02) Aaa 7/02 at 102 11,070,600
2,035,000 Parlier Redevelopment Agency (Parlier
Redevelopment Project), 1992 Tax Allocation
Bonds, Series A, 6.750%, 8/01/22 BBB 8/02 at 102 2,134,837
Redevelopment Agency of the City and County of
San Francisco (California), Hotel Tax Revenue
Bonds, Series 1994:
2,390,000 6.750%, 7/01/15 Aaa 7/04 at 102 2,615,831
6,865,000 6.750%, 7/01/25 Aaa 7/04 at 102 7,513,674
5,605,000 County of San Joaquin, California, Certificates of
Participation (1994 Solid Waste System Facilities
Project), 6.600%, 4/01/19 A 4/04 at 102 5,793,272
County of Santa Clara, California, Certificates of
Participation (The Terraces of Los Gatos Project),
American Baptist Homes of the West:
6,000,000 6.125%, 3/01/11 A 3/02 at 102 6,157,500
7,760,000 6.125%, 3/01/18 A 3/02 at 102 7,841,092
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
COLORADO - 8.9%
$ 9,870,000 Colorado Health Facilities Authority, Insured
Hospital Revenue Bonds (PSL Healthcare System
Project), Series 1991A, 6.250%, 2/15/21
(Pre-refunded to 2/15/01) Aaa 2/01 at 102 $ 10,544,318
2,200,000 Colorado Housing and Finance Authority, Single
Family Program Senior Bonds, 1994 Series E,
8.125%, 12/01/24 (Alternative Minimum Tax) Aa 12/04 at 105 2,408,890
Colorado Housing and Finance Authority, General
Obligation Bonds, 1994 Series A:
6,070,000 6.850%, 8/01/24 A 8/02 at 102 6,304,059
2,405,000 6.875%, 8/01/30 A 8/02 at 102 2,495,524
4,990,000 Colorado Housing and Finance Authority, Single
Family Program Senior Bonds, 1995 Series D,
7.375%, 6/01/26 Aa 12/05 at 105 5,470,387
7,240,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991A,
8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 8,027,350
15,270,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991D,
7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 16,804,482
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1992B:
7,080,000 7.250%, 11/15/23 (Alternative Minimum Tax) Baa 11/02 at 102 7,616,381
2,510,000 7.500%, 11/15/25 (Alternative Minimum Tax) Baa 11/97 at 102 2,593,357
18,245,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1992C,
6.750%, 11/15/13 (Alternative Minimum Tax) Baa 11/02 at 102 19,036,651
- -----------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.4%
3,170,000 Connecticut Housing Finance Authority Housing
Mortgage Finance Program Bonds, 1996
Series C-2, 6.250%, 11/15/18 Aa 5/06 At 102 3,251,215
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 2.7%
3,850,000 State of Florida, Full Faith and Credit, Department
of Transportation Right-of-Way Acquisition and
Bridge Construction Bonds, Series 1995,
5.875%, 7/01/24 Aaa 7/05 at 101 3,876,758
1,750,000 Alachua County Health Facilities Authority, Health
Facilities Revenue Bonds, Series 1992 (Santa Fe
Healthcare Facilities Project), 7.600%, 11/15/13
(Pre-refunded to 11/15/00) AAA 11/00 at 102 1,946,175
5,000,000 Dade County, Florida, Aviation Bonds, Series 1996A,
5.750%, 10/01/18 (Alternative Minimum Tax) Aaa 10/06 at 102 4,930,100
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$ 12,500,000 City of Tampa, Florida, Revenue Bonds (The Florida
Aquarium Project), Series 1992, 7.750%, 5/01/27
(Pre-refunded to 5/01/02) N/R 5/02 at 102 $ 14,215,125
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
Georgia Housing and Financing Authority, Single
Family Mortgage Bonds, 1994 Series B:
5,485,000 6.650%, 12/01/20 (Alternative Minimum Tax) AA+ 9/04 at 102 5,665,237
5,500,000 6.700%, 12/01/25 (Alternative Minimum Tax) AA+ 9/04 at 102 5,688,155
7,000,000 Development Authority of Burke County, Georgia,
Pollution Control Revenue Bonds (Oglethorpe
Power Corporation Vogtle Project), Series 1992,
8.000%, 1/01/15 Aaa 1/03 at 103 8,212,190
2,000,000 Housing Authority of Fulton County, Georgia,
Single Family Mortgage Revenue Refunding Bonds
(GNMA Mortgage-Backed Securities Program),
Series 1996A, 6.200%, 9/01/27 (Alternative
Minimum Tax) AAA 9/06 at 102 2,012,740
- -----------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
2,335,000 Idaho Housing and Finance Association, Single
Family Mortgage Bonds, 1996 Series G,
6.350%, 7/01/26 (Alternative Minimum Tax) Aaa 7/06 at 102 2,368,320
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.0%
3,000,000 Illinois Health Facilities Authority, Revenue
Refunding Bonds, Series 1993C (Lutheran General
Health System), 6.000%, 4/01/18 A1 No Opt. Call 3,041,010
6,900,000 Illinois Health Facilities Authority Revenue
Refunding Bonds, Series 1993 (Illinois Masonic
Medical Center), 5.500%, 10/01/19 A- 10/03 at 102 6,433,215
11,510,000 The Illinois State Toll Highway Authority, Toll
Highway Priority Revenue Bonds, 1992 Series A,
6.375%, 1/01/15 A1 1/03 at 102 12,033,360
17,000,000 City of Chicago, General Obligation Bonds, Project
Series A of 1992, 6.250%, 1/01/12 Aaa 1/02 at 102 17,726,240
5,000,000 City of Chicago, General Obligation Bonds
(Emergency Telephone System), Series 1993,
5.625%, 1/01/23 Aaa 1/03 at 102 4,790,250
8,270,000 City of Chicago, Illinois, Mortgage Revenue Bonds,
Series 1992 (FHA Insured Mortgage Loan-
Lakeview Towers Project), 6.650%, 12/01/33 AAA 6/02 at 102 8,523,145
5,500,000 Chicago Park District, Illinois, General Obligation
Capital Improvement Bonds and Aquarium and
Museum Bonds, Series 1991, 6.700%, 1/01/11 AA- 1/02 at 102 5,977,950
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 20,900,000 Public Building Commission of Chicago (Illinois),
Building Revenue Bonds, Series A of 1993 (Board of
Education of the City of Chicago), 5.750%, 12/01/18 Aaa 12/03 at 102 $ 20,556,404
4,535,000 City of Chicago, Illinois, Tax Increment Allocation
Bonds (Dunning Redevelopment Project),
Series 1996B, 7.250%, 1/01/14 N/R 1/07 at 102 4,537,857
3,530,000 City of Chicago, Illinois, Tax Increment Finance
Bonds (Sanitary Drainage & Ship Canal),
Series 1997A, 7.750%, 1/01/14 N/R 1/07 at 102 3,532,083
2,850,000 City of East Louis, Illinois, Mortgage Revenue
Refunding Bonds, Series 1994A (FHA Insured
Mortgage Loan-Dawson Manor Apartments
Section 8 Assisted Project), 6.500%, 7/01/24 Aaa 7/03 at 102 2,949,950
1,445,000 Village of Wheeling, Cook and Lake Counties,
Illinois, Single Family Mortgage Revenue
Refunding Bonds, Series 1992, 6.850%, 11/01/09 Aaa 11/02 at 102 1,526,267
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 7.7%
8,200,000 Indiana Bond Bank, State Revolving Fund Program
Bonds, Series 1993A Guarantee Revenue Bonds,
6.250%, 2/01/09 A 2/03 at 102 8,439,768
2,875,000 Indiana Bond Bank, State Revolving Fund Program
Bonds, Series 1994B Guarantee Revenue Bonds,
6.750%, 2/01/17 A 2/05 at 102 3,168,480
6,000,000 Indiana Development Finance Authority,
Environmental Revenue Bonds, Series 1993B
(PSI Energy, Inc.), 5.750%, 2/15/28 (Alternative
Minimum Tax) Aaa 2/03 at 102 5,802,120
5,250,000 Indiana Transportation Finance Authority, Aviation
Technology Center Lease Revenue Bonds, Series A,
6.500%, 3/01/18 A 3/03 at 102 5,496,750
8,000,000 East Chicago Elementary School Building
Corporation (Lake County, Indiana), First
Mortgage Bonds, Series 1992, 7.000%, 1/15/16
(Pre-refunded to 1/15/03) A 1/03 at 102 8,933,520
13,630,000 Hospital Authority of the City of Fort Wayne,
Indiana, Revenue Bonds, Series 1992 (Parkview
Memorial Hospital, Inc. Project), 6.400%, 11/15/22 A1 11/02 at 102 13,993,785
6,031,000 City of Greenfield, Indiana, Multifamily Housing
Revenue Bonds, Series 1996 A (Pedcor Investments-
1988-V, L.P. Project), 6.200%, 12/01/28
(Alternative Minimum Tax) Aaa 12/05 at 105 6,080,213
10,675,000 Highland School Building Corporation (Highland,
Indiana), First Mortgage Bonds, Series 1992A,
6.750%, 1/15/20 (Pre-refunded to 1/15/02) AAA 1/02 at 102 11,691,367
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
INDIANA (CONTINUED)
$ 5,905,000 Muncie School Building Corporation, First
Mortgage Bonds, Series 1992, 6.625%, 7/15/14
(Pre-refunded to 7/15/01) N/R 7/01 at 102 $ 6,392,103
- -----------------------------------------------------------------------------------------------------------------
KANSAS - 0.6%
2,780,000 Johnson County, Kansas, Single Family Mortgage
Revenue Refunding Bonds, Series 1994,
7.100%, 5/01/12 A 5/04 at 103 2,994,505
2,550,000 Sedgwick County, Kansas and Shawnee County,
Kansas, Collateralized Single Family Mortgage
Refunding Revenue Bonds (GNMA Certificates),
Series 1994A-I, 7.900%, 5/01/24 (Alternative
Minimum Tax) Aaa No Opt. Call 2,859,366
- -----------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.8%
7,000,000 Kentucky Housing Corporation, Housing Revenue
Bonds, 1996 Series A, 6.375%, 7/01/28
(Alternative Minimum Tax) Aaa 7/06 at 102 7,142,170
- -----------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.9%
5,500,000 Louisiana Public Facilities Authority, Hospital
Revenue and Refunding Bonds (Pendleton
Memorial Methodist Hospital Project), Series 1992,
6.750%, 6/01/10 BBB 6/02 at 102 5,569,190
4,000,000 Bossier Public Trust Financing Authority, Single
Family Mortgage Revenue Refunding Bonds,
Series 1995B, 6.125%, 8/01/28 AAA 8/05 at 102 4,019,200
12,750,000 East Baton Rouge Mortgage Finance Authority,
Single Family Mortgage Revenue Bonds (GNMA
and FNMA Mortgage Backed Securities Program),
Series 1994C, 6.350%, 10/01/28 (Alternative
Minimum Tax) Aaa 10/05 at 102 12,913,073
5,000,000 New Orleans Home Mortgage Authority, Single
Family Mortgage Revenue Bonds, Series 1995A,
6.300%, 6/01/28 (Alternative Minimum Tax) Aaa 6/05 at 102 5,018,150
7,780,000 Orleans Levee District (A Political Subdivision of
the State of Louisiana), Public Improvement Bonds,
Series 1986, 5.950%, 11/01/15 Aaa 12/05 at 103 7,959,562
- -----------------------------------------------------------------------------------------------------------------
MAINE - 1.0%
7,925,000 Maine State Housing Authority, Mortgage Purchase
Bonds, 1990 Series A-4, 6.400%, 11/15/24
(Alternative Minimum Tax) Aa2 8/02 at 102 8,058,457
1,250,000 Maine State Housing Authority Mortgage Purchase
Bonds, 1995 Series B-2, 6.300%, 11/15/26
(Alternative Minimum Tax) AA 11/05 at 102 1,260,775
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MARYLAND - 0.3%
$ 2,560,000 Community Development Administration,
Department of Housing and Community
Development, State of Maryland, Multi-Family
Housing Revenue Bonds (Insured Mortgage Loans),
1993 Series C, 6.625%, 5/15/23 Aa 5/03 at 102 $ 2,639,411
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.0%
3,080,000 Massachusetts Industrial Finance Agency, Revenue
Bonds (College of the Holy Cross - 1996 Issue),
5.625%, 3/01/26 Aaa 3/06 at 102 3,002,569
6,900,000 Massachusetts Water Resources Authority, General
Revenue Bonds, 1993 Series C, 5.250%, 12/01/20 Aaa 12/04 at 102 6,377,739
- -----------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.7%
8,000,000 Michigan State Hospital Finance Authority, Hospital
Revenue Refunding Bonds (Oakwood Hospital
Obligated Group), Series 1993A, 5.625%, 11/01/18 Aaa 11/03 at 102 7,691,520
Michigan State Housing Development Authority,
Rental Housing Revenue Bonds, 1992 Series A:
9,200,000 6.600%, 4/01/12 A+ 10/02 at 102 9,592,012
6,750,000 6.650%, 4/01/23 A+ 10/02 at 102 6,964,380
- -----------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.7%
3,765,000 Minnesota Housing Finance Agency, Rental
Housing Bonds, 1995 Series D (Non-AMT),
5.950%, 2/01/18 Aaa 2/05 at 102 3,755,700
5,500,000 Minnesota Housing Finance Agency Single Family
Mortgage Bonds, 1996 Series G, 6.250%, 7/01/26
(Alternative Minimum Tax) AA+ 1/06 at 102 5,559,125
3,560,000 Housing and Redevelopment Authority of the City of
Saint Paul, Minnesota and City of Minneapolis,
Minnesota, Health Care Facility Revenue Bonds,
Series 1992 (Group Health Plan, Inc. Project),
6.900%, 10/15/22 A 12/02 at 102 3,839,460
2,000,000 Southern Minnesota Municipal Power Agency, Power
Supply System Revenue Bonds, Series 1992B,
5.750%, 1/01/11 Aaa 1/03 at 102 2,032,240
4,000,000 Washington County Housing and Redevelopment
Authority, Pooled Housing and Redevelopment
Limited Annual Appropriation Tax and Revenue
Bonds (Pooled Refunding Project), Series 1992,
7.200%, 1/01/22 BBB 1/03 at 102 4,168,960
5,170,000 Washington County Housing and Redevelopment
Authority, Lease Revenue Bonds (South
Washington County Schools Project), Series 1992,
7.400%, 12/01/14 Baa1 12/02 at 100 5,558,267
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MISSISSIPPI - 0.4%
$ 4,000,000 Mississippi Hospital Equipment and Facilities
Authority, Revenue Bonds, Series 1992A (Wesley
Health Systems), 6.050%, 4/01/12 AAA 10/02 at 102 $ 4,105,400
- -----------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8%
5,500,000 The Industrial Development Authority of the City of
St. Louis, Missouri, Industrial Revenue Refunding
Bonds (Kiel Center Multipurpose Arena Project),
Series 1992, 7.625%, 12/01/09 (Alternative
Minimum Tax) N/R 12/02 at 102 5,857,445
11,000,000 St. Louis Municipal Finance Corporation, Leasehold
Revenue Refunding Bonds, 6.000%, 7/15/13 Aa3 7/03 at 102 10,715,540
- -----------------------------------------------------------------------------------------------------------------
NEVADA - 0.2%
2,000,000 Clark County, Nevada, Las Vegas-McCarran
International Airport Passenger Facility Charge
Revenue Bonds, 1992 Series A, 6.000%, 7/01/22 Aaa 7/02 at 102 2,020,080
- -----------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.6%
5,215,000 New Hampshire Higher Educational and Health
Facilities Authority, Hospital Revenue Bonds,
Catholic Medical Center Issue, Series 1989,
8.000%, 7/01/04 BBB+ 7/99 at 102 5,571,185
- -----------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.3%
4,500,000 New Jersey Economic Development Authority,
Insured Revenue Bonds (Educational Testing
Service Issue), Series 1995A, 6.000%, 5/15/25 Aaa 5/05 at 102 4,589,955
7,425,000 New Jersey Housing and Mortgage Finance Agency,
Housing Revenue Refunding Bonds, 1992
Series One, 6.700%, 11/01/28 A+ 11/02 at 102 7,694,528
- -----------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4%
3,990,000 New Mexico Mortgage Finance Authority, Single
Family Mortgage Program Bonds, 1995 Series E,
6.300%, 7/01/17 (Alternative Minimum Tax) AAA 7/05 at 102 4,064,533
- -----------------------------------------------------------------------------------------------------------------
NEW YORK - 13.4%
2,500,000 Dormitory Authority of the State of New York City
University System Consolidated Revenue Bonds,
1996 Series 2, 6.000%, 7/01/20 Baa1 7/06 at 102 2,473,525
16,200,000 New York State Energy Research and Development
Authority, Facilities Revenue Bonds, Series 1992B
(Consolidated Edison Company of New York, Inc.
Project), 6.375%, 12/01/27 (Alternative
Minimum Tax) Aaa 12/01 at 101 16,645,014
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 8,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home Insured
Mortgage Revenue Bonds, 1987 Series A,
8.000%, 2/15/27 (Pre-refunded to 8/15/97) Aa 8/97 at 102 $ 8,238,160
7,635,000 New York State Medical Care Facilities Finance
Agency, Mercy Medical Center Project Revenue
Bonds, 1995 Series A, 5.875%, 11/01/15 AA- 5/05 at 102 7,692,415
2,500,000 New York Medical Care Facilities Finance Agency,
Mental Health Services Facilities Improvement
Revenue Bonds, 1995 Series A, 6.000%, 2/15/25 Aaa 2/05 at 102 2,511,675
10,750,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series D, 6.600%, 2/01/03 Baa1 No Opt. Call 11,367,480
7,695,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series E, 6.600%, 8/01/03 Baa1 No Opt. Call 8,169,474
The City of New York, General Obligation Bonds,
Fiscal 1993 Series A:
10,000,000 6.375%, 8/01/08 Baa1 8/02 at 101 1/2 10,231,500
2,000,000 6.500%, 8/01/11 Baa1 8/02 at 101 1/2 2,057,280
17,365,000 The City of New York General Obligation Bonds,
Fiscal 1996 Series F, 7.000%, 2/01/06 Baa1 No Opt. Call 18,876,797
11,130,000 The City of New York, General Obligation Bonds,
Fiscal 1996 Series I, 5.875%, 3/15/18 Baa1 3/06 at 101 1/2 10,778,292
9,000,000 The City of New York, General Obligation Bonds,
Fiscal 1996 Series J (Subseries J-1),
5.875%, 2/15/19 Baa1 2/06 at 101 1/2 8,698,860
4,250,000 The City of New York General Obligation Bonds,
Fiscal 1997, Series E, 5.875%, 8/01/24 Baa1 8/06 at 101 1/2 4,071,628
7,200,000 The City of New York, General Obligation Bonds,
Fiscal 1997 Series G, 6.000%, 10/15/26 Baa1 10/07 at 101 6,991,704
3,150,000 New York City, New York, Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Fiscal 1996 Series A, 5.875%, 6/15/25 Aaa 6/05 at 101 3,166,443
- -----------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.2%
1,970,000 North Carolina Housing Finance Authority Single
Family Revenue Bonds, Series JJ (1985 Resolution),
6.450%, 9/01/27 (Alternative Minimum Tax) Aa 3/06 at 102 2,009,794
5,240,000 City of Durham Urban Redevelopment Mortgage
Revenue Bonds (Durham Hosiery Mill Project)
(FHA Insured LN), Series 1987, 7.500%, 8/01/29
(Alternative Minimum Tax) AAA 8/07 at 105 5,661,506
3,000,000 County of Pitt, North Carolina, Pitt County
Memorial Hospital Revenue Bonds, Series 1995,
5.500%, 12/01/15 AA- 12/05 at 102 2,886,720
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NORTH DAKOTA - 0.5%
$ 4,195,000 Mercer County, North Dakota, Pollution Control
Revenue Bonds (Basin Electric Power Cooperative-
Antelope Valley Station), 1984 Series B,
7.000%, 1/01/19 A 1/99 at 103 $ 4,359,192
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.5%
1,000,000 Tulsa County Industrial Authority (Tulsa, Oklahoma),
Recreational Facilities Revenue Bonds, Refunding
Series 1992, 6.600%, 9/01/08 A- 9/02 at 102 1,052,940
2,990,000 Tulsa County Public Facilities Authority (Tulsa,
Oklahoma), Recreational Facility Refunding
Revenue Bonds, Series 1992, 6.600%, 11/01/08 A- 11/02 at 102 3,168,324
- -----------------------------------------------------------------------------------------------------------------
OREGON - 2.7%
13,350,000 State of Oregon, General Obligation, Elderly &
Disabled Housing Bonds, 1992 Series B,
6.375%, 8/01/24 AA 8/02 at 102 13,986,662
7,000,000 State of Oregon, General Obligation, Veterans'
Welfare Bonds, Series 75, 6.000%, 4/01/27 AA 10/05 at 102 7,061,600
3,380,000 City of Portland, Oregon, Limited Tax Improvement
Bonds, 1996 Series A, 5.550%, 6/01/16 Aa 6/06 at 100 3,353,501
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.5%
4,730,000 City of Philadelphia, Pennsylvania, Airport Revenue
Bonds, Series 1978, Philadelphia International
Airport, 9.000%, 6/15/15 A- 5/97 at 102 4,854,399
- -----------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.2%
2,135,000 School District No. 4 of Lexington County, South
Carolina, Certificates of Participation, Series 1994,
7.000%, 7/01/12 Baa 7/04 at 102 2,282,870
- -----------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.3%
10,370,000 South Dakota Building Authority, Revenue Bonds,
Series 1992, 6.700%, 9/01/17 Aaa No Opt. Call 11,472,331
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 2.0%
9,870,000 State of Texas, Veterans' Housing Assistance Bonds,
Series 1993, General Obligation Bonds,
6.800%, 12/01/23 (Alternative Minimum Tax) Aa 12/03 at 102 10,258,977
1,800,000 Baytown Housing Finance Corporation, Single
Family Mortgage Revenue Refunding Bonds,
Series 1992-A, 8.500%, 9/01/11 A1 9/02 at 103 1,993,878
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
$ 1,500,000 Harris County, Texas, Toll Road Unlimited Tax and
Subordinate Lien, Revenue Refunding Bonds,
Series 1992A, 6.500%, 8/15/15 AA 8/02 at 102 $ 1,620,975
1,595,000 Hidalgo County Housing Finance Corporation,
Single Family Mortgage Revenue Bonds (GNMA
and FNMA Collateralized), Series 1994A,
7.000%, 10/01/27 (Alternative Minimum Tax) Aaa 4/04 at 102 1,640,617
2,840,000 Port Arthur Housing Finance Corporation, Single
Family Mortgage Revenue Refunding Bonds,
Series 1992, 8.700%, 3/01/12 A 9/02 at 103 3,105,028
- -----------------------------------------------------------------------------------------------------------------
UTAH - 1.4%
3,405,000 Utah Housing Finance Agency, Single Family
Mortgage Bonds, 1994 Issue B (Federally Insured
or Guaranteed Mortgage Loans), 6.450%, 7/01/14 Aa 7/04 at 102 3,535,820
6,000,000 Redevelopment Agency of Salt Lake County, Utah,
Central Business District Neighborhood
Redevelopment, Junior Lien Tax Increment Bonds,
Series 1992A, 5.800%, 3/01/15 A 3/02 at 102 5,739,480
3,000,000 Municipal Building Authority of Weber County,
Utah, Lease Revenue Bonds, Series 1994,
7.500%, 12/15/19 (Pre-refunded to 12/15/04) Aaa 12/04 at 102 3,521,010
- -----------------------------------------------------------------------------------------------------------------
VERMONT - 0.9%
1,085,000 Vermont Educational and Health Buildings Finance
Agency Revenue Refunding Bonds, Series 1994
(Saint Johnsbury Academy Project), 7.300%, 4/15/18 BBB 4/02 at 102 1,160,624
6,620,000 Vermont Housing Finance Agency, Single Family
Housing Bonds, Series 4, 6.400%, 11/01/25 A1 5/02 at 102 6,738,100
- -----------------------------------------------------------------------------------------------------------------
WASHINGTON - 0.6%
2,000,000 Washington Public Power Supply System, Nuclear
Project No. 3, Refunding Revenue Bonds,
Series 1989A, 6.000%, 7/01/18 Aaa 7/99 at 100 2,003,620
3,000,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1990B, 7.375%, 7/01/04 Aa1 7/00 at 102 3,259,320
- -----------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8%
7,000,000 The County Commission of Harrison County, West
Virginia, Solid Waste Disposal Revenue Bonds (The
Potomac Edison Company Harrison Station
Project), Series B, 6.250%, 5/01/23 (Alternative
Minimum Tax) Aaa 5/03 at 102 7,165,690
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WISCONSIN - 1.9%
$ 16,930,000 Wisconsin Housing and Economic Development
Authority, Home Ownership Revenue Bonds,
1995 Series B, 7.100%, 9/01/15 (Alternative
Minimum Tax) Aa 1/05 at 102 $ 17,785,133
- -----------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.1%
1,375,000 Puerto Rico Electric Power Authority, Power
Revenue Bonds, Series X, 5.500%, 7/01/25 Baa1 7/05 at 100 1,293,503
$875,876,000 Total Investments - (cost $843,243,964) - 97.2% 887,656,408
================
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 3,500,000 Hillsborough County Industrial Development
================
Authority (Tampa Electric Company) Variable
Rate Demand Bonds, 4.000%, 9/01/25+ Aa2 3,500,000
Other Assets Less Liabilities - 2.4% 21,828,728
Net Assets - 100% $912,985,136
============
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 50 $335,928,372 37%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 24 143,615,019 16
PORTFOLIO OF A+ A1 10 66,871,940 8
INVESTMENTS A, A- A, A2, A3 21 121,766,577 14
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 26 181,037,762 20
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 3,902,125 1
INVESTMENTS): Non-rated Non-rated 5 34,534,613 4
TOTAL 137 $887,656,408 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** 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.
+ 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.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT)
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ALABAMA - 2.1%
$ 8,000,000 Alabama Higher Education Loan Corporation, Student
Loan Revenue Refunding Bonds, Series 1994-D,
5.850%, 9/01/04 (Alternative Minimum Tax) Aaa No Opt. Call $ 8,234,560
11,000,000 The DCH Health Care Authority, Health Care
Facilities Revenue Bonds, Series 1993-B,
5.750%, 6/01/23 A1 12/02 at 102 10,520,510
- -----------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8%
6,700,000 Kyrene Elementary School District No. 28 of
Maricopa County, Arizona, School Improvement
Bonds, Project of 1993, Series A (1993),
5.200%, 7/01/13 (Pre-refunded to 7/01/03) Aaa 7/03 at 100 6,839,427
- -----------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.3%
740,000 Arkansas Development Finance Authority, Single
Family Mortgage Revenue Refunding Bonds,
1991 Series A (FHA Insured or VA Guaranteed
Mortgage Loans), 8.000%, 8/15/11 AA 8/01 at 103 793,998
562,679 City of Jacksonville, Arkansas, Residential Housing
Facilities Board, Single Family Mortgage Revenue
Refunding Bonds, Series 1993A, 7.900%, 1/01/11 Aaa 7/03 at 103 611,126
944,821 Residential Housing Facilities Board of Lonoke
County, Arkansas, Single Family Mortgage Revenue
Refunding Bonds, Series 1993A, 7.900%, 4/01/11 Aaa 4/05 at 103 1,020,114
- -----------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.5%
3,105,000 California Educational Facilities Authority, Revenue
Bonds (Loyola Marymount University), Series 1994,
5.750%, 10/01/24 A1 4/04 at 102 3,031,598
5,000,000 California Health Facilities Financing Authority,
Kaiser Permanente, Revenue Bonds, 1990 Series A,
6.500%, 12/01/20 AA 12/00 at 102 5,317,600
3,880,000 California Housing Finance Agency, Home Mortgage
Revenue Bonds, Series 1993-C, 5.650%, 8/01/14 Aa 2/04 at 102 3,808,414
4,780,000 Foothil/Eastern Transportation Corridor Agency, Toll
Road Revenue Bonds Series 1995A,
0.000%, 1/01/14 Baa No Opt. Call 1,696,996
Community Redevelopment Financing Authority of
the Community Redevelopment Agency of the
City of Los Angeles, California, Grand Central
Square, Multifamily Housing Bonds, 1993 Series A:
500,000 5.750%, 12/01/13 (Alternative Minimum Tax) Ba 6/03 at 102 466,080
3,900,000 5.900%, 12/01/26 (Alternative Minimum Tax) A No Opt. Call 3,770,208
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 4,500,000 Los Angeles County Transportation Commission
(California), Proposition C Sales Tax Revenue Bonds,
Second Senior Bonds, Series 1992-A,
6.750%, 7/01/19 (Pre-refunded to 7/01/02) Aaa 7/02 at 102 $ 4,981,770
3,000,000 Mountain View Shoreline Regional Park Community
(County of Santa Clara, California), Tax Allocation
Bonds, 1993 Series A, 5.750%, 8/01/18 A 8/02 at 102 2,958,090
2,500,000 Transmission Agency of Northern California,
California-Oregon Transmission Project, Revenue
Bonds, 1992 Series A, 6.500%, 5/01/16 Aaa 5/02 at 102 2,679,650
5,000,000 Airports Commission, City and County of San
Francisco, California, San Francisco International
Airport, Second Series Revenue Bonds, Issue 8,
6.300%, 5/01/25 (Alternative Minimum Tax) Aaa 5/04 at 101 5,130,900
3,545,000 Redevelopment Agency of the City of San Leandro,
Plaza 1 and Plaza 2 Redevelopment Projects, 1993
Tax Allocation Bonds, Series A, 6.125%, 6/01/23 A- 6/03 at 102 3,569,461
1,945,000 South Gate Public Financing Authority (Los Angeles
County, California), Water Revenue Refunding
Bonds, 1996 Series 6.000%, 10/01/12 Aaa No Opt. Call 2,052,383
- -----------------------------------------------------------------------------------------------------------------
COLORADO - 3.3%
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1990A:
4,100,000 8.500%, 11/15/23 (Alternative Minimum Tax) Baa 11/00 at 102 4,637,059
1,305,000 8.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/00 at 102 1,444,648
1,200,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991A,
8.750%, 11/15/23 (Alternative Minimum Tax) Baa 11/01 at 102 1,402,896
City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1991D:
6,000,000 7.500%, 11/15/02 (Alternative Minimum Tax) Baa 11/01 at 102 6,579,840
3,040,000 7.750%, 11/15/13 (Alternative Minimum Tax) Baa No Opt. Call 3,616,232
4,145,000 7.750%, 11/15/21 (Alternative Minimum Tax) Baa 11/01 at 102 4,561,531
1,000,000 7.000%, 11/15/25 (Alternative Minimum Tax) Baa 11/01 at 100 1,044,650
5,240,000 City and County of Denver, Colorado, Airport
System Revenue Bonds, Series 1992C,
6.750%, 11/15/22 (Alternative Minimum Tax) Baa 11/02 at 102 5,444,884
- -----------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.5%
2,400,000 Connecticut Development Authority, Water
Facilities Revenue Refunding Bonds (The
Connecticut Water Company Project-1993 Series),
6.650%, 12/15/20 Aaa 12/03 at 102 2,596,656
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
CONNECTICUT (CONTINUED)
$ 405,000 Connecticut Housing Finance Authority, Housing
Mortgage Finance Program Bonds, 1990 Series B,
1990 Subseries B1, 7.550%, 11/15/08 Aa 11/00 at 102 $ 407,754
3,000,000 Connecticut Housing Finance Authority Housing
Mortgage Finance Program Bonds, 1996 Series C-2,
6.250%, 11/15/18 Aa 5/06 at 102 3,076,860
6,500,000 State of Connecticut Health and Educational
Facilities Authority, Revenue Bonds, Yale-New
Haven Hospital Issue, Series F, 7.100%, 7/01/25
(Pre-refunded to 7/01/00) Aaa 7/00 at 102 7,071,090
- -----------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.2%
9,500,000 District of Columbia (Washington, D.C.), General
Obligation Refunding Bonds, Series 1993A,
6.000%, 6/01/07 Aaa No Opt. Call 9,923,320
6,000,000 District of Columbia (Washington, D.C.), General
Obligation Refunding Bonds, Series 1993 B,
5.500%, 6/01/10 Aaa No Opt Call 5,895,480
5,000,000 District of Columbia (Washington, D.C.), General
Obligation Bonds, Series 1993 E, 6.000%, 6/01/09 Aaa 6/03 at 102 5,134,900
3,890,000 District of Columbia (Washington, D.C.), General
Obligation Bonds, Series 1993-A3, 5.500%, 6/01/06 Aaa No Opt. Call 3,920,225
3,240,000 District of Columbia, Hospital Revenue Refunding
Bonds (Medlantic Healthcare Group, Inc. Issue),
Series 1992B, 6.750%, 8/15/07 Baa1 8/02 at 102 3,398,954
4,250,000 District of Columbia, Hospital Revenue Refunding
Bonds (Medlantic Healthcare Group, Inc. Issue),
Series 1993A, 5.750%, 8/15/14 Aaa 8/06 at 102 4,231,173
5,785,000 District of Columbia Housing Finance Agency,
Collateralized Single Family Mortgage Revenue
Bonds, Series 1988F-1, 5.850%, 12/01/14
(Alternative Minimum Tax) AAA 12/04 at 103 5,793,678
2,000,000 District of Columbia, Revenue Bonds (The American
College of Obstetricians and Gynecologists Issue),
Series 1991, 6.500%, 8/15/18 Aaa 8/01 at 102 2,106,580
4,500,000 District of Columbia, University Revenue Refunding
Bonds (The Howard University Issue), Series 1992A,
6.750%, 10/01/12 A+ 10/02 at 102 4,745,970
- -----------------------------------------------------------------------------------------------------------------
FLORIDA - 1.0%
2,500,000 State of Florida, Hillsborough County Expressway
Bonds, Series 1971, Division of Bond Finance of
the Department of General Services,
5.500%, 10/01/08 Aa 4/05 at 100 2,537,675
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
FLORIDA (CONTINUED)
$ 2,000,000 Jacksonville Health Facilities Authority, Hospital
Revenue Bonds (New Children's Hospital at Baptist
Medical Center Project), Series 1991,
7.000%, 6/01/21 Aaa 6/01 at 102 $ 2,162,140
3,530,000 Lee County, Florida, Capital Refunding Revenue
Bonds, Series 1989A, 7.300%, 10/01/07 Aaa 10/99 at 102 3,803,434
- -----------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2%
2,880,000 Municipal Electric Authority of Georgia, General
Power Revenue Bonds, 1992B Series,
8.250%, 1/01/11 A No Opt. Call 3,600,317
4,185,000 Municipal Electric Authority of Georgia, Power
Revenue Bonds, Series EE, 7.250%, 1/01/24 Aaa No Opt. Call 5,104,821
5,500,000 Municipal Electric Authority of Georgia, General
Power Revenue Bonds, Series 1993B,
5.700%, 1/01/19 Aaa No Opt. Call 5,543,945
3,400,000 Development Authority of Burke County, Georgia,
Pollution Control Revenue Bonds (Oglethorpe
Power Corporation Vogtle Project), Series 1992,
7.500%, 1/01/03 Aaa No Opt. Call 3,711,270
1,000,000 Development Authority of Monroe County (Georgia),
Pollution Control Revenue Bonds (Oglethorpe
Power Corporation Scherer Project), Series 1992A,
6.450%, 1/01/05 A No Opt. Call 1,068,370
- -----------------------------------------------------------------------------------------------------------------
HAWAII - 0.7%
1,500,000 State of Hawaii, Airports System Revenue Bonds,
Series of 1990 (Payable Solely from the Receipts of
the Aviation Fuel Tax and the Revenues of the State
of Hawaii Airports System), 7.300%, 7/01/20
(Alternative Minimum Tax) Aaa 7/00 at 102 1,622,490
5,000,000 City and County of Honolulu, Hawaii, Refunding
and Improvement Bonds, 1993 Series B,
5.000%, 10/01/13 Aa No Opt. Call 4,698,250
- -----------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.7%
3,955,000 Illinois Development Finance Authority, Child Care
Facility Revenue Bonds, Series 1992 (Illinois
Facilities Fund Project), 7.400%, 9/01/04 N/R 9/02 at 102 4,137,563
2,240,000 Illinois Educational Facilities Authority Revenue
Bonds, Chicago College of Osteopathic Medicine,
Series A, 8.750%, 7/01/05 Aaa No Opt. Call 2,599,318
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois Educational Facilities Authority, Revenue
Refunding Bonds, Loyola University of Chicago,
Series 1991-A:
$ 10,360,000 7.125%, 7/01/21 (Pre-refunded to 7/01/01) A1 7/01 at 102 $ 11,198,228
6,190,000 7.125%, 7/01/21 A+ 7/01 at 102 6,825,280
Illinois Health Facilities Authority, Revenue
Refunding Bonds, Series 1993C (Lutheran
General Healthsystem):
5,705,000 7.000%, 4/01/08 A1 No Opt. Call 6,462,909
4,075,000 7.000%, 4/01/14 A1 No Opt. Call 4,652,224
2,500,000 Illinois Health Facilities Authority, Hospital
Revenue Refunding Bonds, Series 1993 (Delnor-
Community Hospital), 5.500%, 5/15/13 Aaa 5/03 at 102 2,429,900
3,000,000 Illinois Health Facilities Authority Revenue
Refunding Bonds, Series 1993 (Illinois Masonic
Medical Center), 5.500%, 10/01/19 A- 10/03 at 102 2,797,050
2,000,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1992 (Trinity Medical Center),
7.000%, 7/01/12 BBB 7/02 at 102 2,065,340
5,000,000 Illinois Health Facilities Authority, Revenue Bonds,
Series 1990 (Riverside Senior Living Center Project),
7.500%, 11/01/20 (Pre-refunded to 11/01/00) A3 11/00 at 102 5,521,200
12,245,000 Illinois Health Facilities Authority, Refunding
Revenue Bonds, Series 1990-B (Hinsdale Hospital),
9.000%, 11/15/15 Baa1 11/00 at 102 13,835,503
8,190,000 Illinois Housing Development Authority, Multi-
Family Program Bonds, Series 5, 6.650%, 9/01/14 A1 9/04 at 102 8,482,547
3,410,000 Illinois Housing Development Authority, Section 8
Elderly Housing Revenue Bonds (Skyline Towers
Apartments), Series 1992B, 6.875%, 11/01/17 A 11/02 at 102 3,534,022
3,665,000 Illinois Housing Development Authority, Section 8
Elderly Housing Revenue Bonds (Morningside North
Development), Series 1992D, 6.600%, 1/01/07 A 1/03 at 102 3,849,533
4,000,000 Board of Education of the City of Chicago, General
Obligation Lease Certificates, 1992 Series A,
6.250%, 1/01/15 Aaa No Opt. Call 4,268,000
8,370,000 City of Chicago, Chicago Midway Airport Revenue
Bonds, Series 1996A, 5.625%, 1/01/17 Aaa 1/07 at 101 8,108,103
2,025,000 Long Creek Township, Macon County, Illinois,
Waterworks Refunding Revenue Bonds,
Series 1993, 7.250%, 5/01/23 N/R 5/03 at 100 1,981,017
3,050,000 Regional Transportation Authority, Cook, DuPage,
Kane, Lake, McHenry and Will Counties, Illinois,
General Obligation Bonds, Series 1990A,
7.200%, 11/01/20 Aaa No Opt. Call 3,636,180
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 14,375,000 Village of Wheeling, Illinois, Multifamily Housing
Revenue Bonds, Series 1993A (FHA Insured
Mortgage Loan-Arlington Club Project),
6.400%, 2/01/40 AAA 2/03 at 100 $ 14,496,756
4,850,000 Town of Wood River, Wood River Township
Hospital, Madison County, Illinois, General
Obligation Bonds (Alternate Revenue Source),
Series 1993, 6.625%, 2/01/14 BBB 2/04 at 102 5,143,231
4,620,000 Town of Wood River, Wood River Township
Hospital, Madison County, Illinois, General
Obligation Tort Immunity Bonds, Series 1993,
6.500%, 2/01/14 BBB 2/04 at 102 4,856,821
- -----------------------------------------------------------------------------------------------------------------
INDIANA - 3.4%
2,100,000 City of Indianapolis, Indiana, Economic Development
Revenue Bonds, Series 1993A (The Meadows-
Section 8 Assisted Project), 6.000%, 7/01/23
(Alternative Minimum Tax) A 7/03 at 103 2,019,507
2,250,000 Indiana Bond Bank, Special Program Bonds,
Series 1992B, 6.750%, 8/01/12 A 2/03 at 102 2,450,633
3,200,000 Indiana Health Facility Financing Authority,
Hospital Revenue Refunding Bonds, Series 1992
(The Methodist Hospitals, Inc.), 6.750%, 9/15/09 A 9/02 at 102 3,426,080
2,000,000 Hospital Authority of the City of Kokomo (Indiana),
Hospital Revenue Refunding Bonds, Series 1993
(Saint Joseph Hospital & Health Center of Kokomo),
6.250%, 8/15/05 BBB No Opt. Call 2,082,940
3,615,000 Mooresville Consolidated School Building
Corporation, First Mortgage Bonds, Series 1994A
(Morgan County, Indiana), 6.200%, 7/15/15 A 1/04 at 101 3,770,734
5,900,000 Muncie School Building Corporation, First Mortgage
Bonds, Series 1992, 6.625%, 7/15/14
(Pre-refunded to 7/15/01) N/R 7/01 at 102 6,386,691
9,500,000 City of Petersburg, Indiana, Pollution Control
Refunding Revenue Bonds, Series 1993A
(Indianapolis Power & Light Company Project),
6.100%, 1/01/16 Aa2 1/03 at 102 9,594,525
- -----------------------------------------------------------------------------------------------------------------
IOWA - 0.6%
3,810,000 Iowa Finance Authority, Hospital Revenue Bonds
(Trinity Regional Hospital Project), Series 1993,
7.000%, 7/01/12 A- 7/02 at 102 4,093,655
1,000,000 City of Davenport, Iowa, Home Ownership
Mortgage Revenue Refunding Bonds, Series 1994,
7.900%, 3/01/10 A1 9/04 at 102 1,058,050
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
KANSAS - 0.5%
$ 2,060,000 Johnson County, Kansas, Single Family Mortgage
Revenue Refunding Bonds, Series 1994,
7.100%, 5/01/12 A 5/04 at 103 $ 2,218,950
1,735,000 Labette County, Kansas, Single Family Mortgage
Revenue Refunding Bonds, 1993 Series A,
8.400%, 12/01/11 A1 6/03 at 103 1,834,138
- -----------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.8%
7,000,000 Kentucky Housing Corporation, Housing Revenue
Bonds, 1996 Series A, 6.375%, 7/01/28
(Alternative Minimum Tax) Aaa 7/06 at 102 7,142,170
- -----------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.0%
3,500,000 Clover Dale Housing Corporation, 1995 Multifamily
Mortgage Revenue Refunding Bonds (Clover Dale
Plaza-FHA Insured Mortgage Section 8 Assisted
Project), Series A, 6.550%, 2/01/22 AA- 4/01 at 100 3,541,580
6,000,000 City of New Orleans, Louisiana, General Obligation
Refunding Bonds, Series 1995, 6.500%, 10/01/02 Aaa No Opt. Call 6,445,860
6,965,000 Orleans Levee District (A Political Subdivision of the
State of Louisiana), Public Improvement Bonds,
Series 1986, 5.950%, 11/01/14 Aaa 12/05 at 102 7,122,061
- -----------------------------------------------------------------------------------------------------------------
MAINE - 1.0%
8,000,000 Maine Educational Loan Marketing Corporation,
Subordinate Student Loan Revenue Bonds,
Series 1994-2, 6.250%, 11/01/06 (Alternative
Minimum Tax) A No Opt. Call 8,472,880
- -----------------------------------------------------------------------------------------------------------------
MARYLAND - 2.2%
5,000,000 Community Development Administration Maryland
Department of Housing and Community
Development, Housing Revenue Bonds,
Series 1996A, 5.875%, 7/01/16 Aa 1/07 at 102 5,001,600
2,000,000 Maryland Health and Higher Educational Facilities
Authority, Project and Refunding Revenue Bonds,
Doctors Community Hospital Issue, Series 1993,
5.750%, 7/01/13 Baa2 7/03 at 102 1,943,080
4,305,000 Maryland Transportation Authority, Special
Obligation Revenue Bonds, Baltimore/Washington
International Airport Projects, Series 1994-A
(Qualified Airport Bonds), 6.400%, 7/01/19
(Alternative Minimum Tax) Aaa 7/04 at 102 4,435,054
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MARYLAND (CONTINUED)
$ 6,800,000 Housing Opportunities Commission of Montgomery
County (Montgomery County, Maryland),
Multifamily Housing Revenue Bonds,
1996 Series B, 6.400%, 7/01/28 Aa 7/06 at 102 $ 6,957,216
1,000,000 Prince George's County, Maryland, Project and
Refunding Revenue Bonds (Dimensions Health
Corporation Issue), Series 1994, 5.375%, 7/01/14 A 7/04 at 102 938,590
- -----------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.1%
4,195,000 Massachusetts Health and Educational, Facilities
Authority, Revenue Refunding Bonds, Youville
Hospital Issue (FHA Insured Project), Series B,
6.000%, 2/15/34 Aa 2/04 at 102 4,207,040
2,000,000 Massachusetts Housing Finance Agency, Housing
Project Revenue Bonds, 6.300%, 10/01/13 A1 4/03 at 102 2,049,920
3,300,000 Massachusetts Industrial Finance Agency, Resource
Recovery Revenue Bonds, SEMASS Project,
Series 1991B, 9.250%, 7/01/15 (Alternative
Minimum Tax) N/R 7/01 at 103 3,699,267
- -----------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.4%
2,000,000 Michigan State Hospital Finance Authority, Hospital
Revenue and Refunding Bonds (The Detroit
Medical Center Obligated Group), Series 1993B,
5.000%, 8/15/03 A No Opt. Call 1,984,960
3,750,000 Michigan Strategic Fund, Limited Obligation
Refunding Revenue Bonds (Consumers Power
Company Project), Collateralized Series 1993B,
5.800%, 6/15/10 Aaa 6/03 at 102 3,827,325
14,000,000 Michigan Strategic Fund, Limited Obligation
Revenue Bonds (WMX Technologies, Inc. Project),
Series 1993, 6.000%, 12/01/13 (Alternative
Minimum Tax) A1 12/03 at 102 14,056,280
5,000,000 City of Detroit, Michigan, Convention Facility
Limited Tax Revenue Refunding Bonds (Cobo
Hall Expansion Project), Series 1993,
5.250%, 9/30/12 Aaa 9/03 at 102 4,785,800
4,260,000 County of Jackson Hospital Finance Authority,
Hospital Revenue Refunding Bonds (W. A. Foote
Memorial Hospital, Jackson, Michigan),
Series 1993A, 4.750%, 6/01/15 Aaa 6/03 at 102 3,698,149
1,000,000 City of Kalamazoo Hospital Finance Authority,
Hospital Revenue Refunding and Improvement
Bonds (Bronson Methodist Hospital), Series 1996,
5.750%, 5/15/16 Aaa 5/06 at 102 991,410
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
MICHIGAN (CONTINUED)
$ 6,000,000 County of Monroe, Michigan, Pollution Control
Revenue Bonds (The Detroit Edison Company
Project), Series CC-1992, 6.550%, 9/01/24
(Alternative Minimum Tax) Aaa 9/03 at 103 $ 6,291,480
2,750,000 City of Royal Oak Hospital Finance Authority
(Michigan), Hospital Revenue Bonds (William
Beaumont Hospital), Series 1991D,
6.750%, 1/01/20 (Pre-refunded to 1/01/01) Aaa 1/01 at 102 2,980,725
- -----------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.8%
4,000,000 Minneapolis Community Development Agency,
Limited Tax Supported Development Revenue
Bonds, Common Bond Fund Series 1992G-3,
7.375%, 12/01/12 A- 12/02 at 102 4,361,800
2,720,000 City of Minnetonka, Minnesota, Multifamily Housing
Revenue Refunding Bonds, Series 1994A (GNMA
Collateralized Mortgage Loan-Brier Creek Project),
6.450%, 6/20/24 AAA 6/04 at 102 2,806,333
- -----------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.2%
1,875,000 Mississippi Educational Facilities Authority, For
Private Nonprofit Institutions of Higher Learning,
Educational Facilities Revenue Bonds (Tougaloo
College Project), 1993 Series A, 6.500%, 6/01/18 Baa3 6/03 at 102 1,928,813
2,000,000 Mississippi Higher Education Assistance Corporation,
Student Loan Revenue Bonds, Senior Series 1993-B,
5.800%, 9/01/06 (Alternative Minimum Tax) Aaa 9/02 at 102 2,021,820
3,000,000 Mississippi Home Corporation, Single Family
Mortgage Revenue Bonds, Series 1995B,
6.550%, 4/01/21 (Alternative Minimum Tax) Aaa 4/05 at 102 3,094,680
1,910,000 Mississippi Housing Finance Corporation, Single
Family Mortgage Purchase Revenue Bonds,
Series 1989 (GNMA Mortgage-Backed Securities
Program), 8.250%, 10/15/18 (Alternative
Minimum Tax) Aaa 10/99 at 102 2,006,130
1,695,000 Mississippi Regional Housing Authority No. V,
Multifamily Housing Revenue Refunding Bonds,
Series 1993A (FHA Insured Mortgage Loan-Deville
Apartments Section 8 Assisted Project),
7.050%, 7/01/21 AAA 7/00 at 105 1,782,733
- -----------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.1%
9,000,000 Nebraska Higher Education Loan Program, Inc.,
1993-1 Series A-2 Senior Notes, 6.250%, 6/01/18
(Alternative Minimum Tax) Aa No Opt. Call 9,078,390
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEBRASKA (CONTINUED)
$ 1,175,000 Nebraska Investment Finance Authority, Single
Family Mortgage Revenue Bonds, 1988 Series 1,
8.125%, 8/1/38 (Alternative Minimum Tax) Aaa 8/98 at 102 $ 1,222,975
Airport Authority of the City of Omaha (Nebraska),
Airport Facilities Revenue Refunding Bonds,
Series 1991:
1,665,000 8.375%, 1/01/14 (Pre-refunded to 1/01/02) A1 1/02 at 102 1,926,255
5,075,000 8.375%, 1/01/14 A1 1/02 at 102 5,781,795
- -----------------------------------------------------------------------------------------------------------------
NEVADA - 0.8%
1,725,000 Nevada Housing Division, Single Family Program
Senior Bonds, 1993 Issue B, 6.200%, 10/01/15 Aa 4/04 at 102 1,755,602
4,500,000 Clark County School District, Nevada, General
Obligation (Limited Tax), School Improvement
Bonds (Current Coupon Bonds), Series 1991A,
7.000%, 6/01/10 Aaa No Opt. Call 5,143,995
- -----------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.7%
3,875,000 New Hampshire Housing Finance Authority, Single
Family Residential Mortgage Bonds, 1990 Series A,
7.950%, 7/01/22 (Alternative Minimum Tax) Aa 7/00 at 102 4,066,231
2,000,000 New Hampshire Housing Finance Authority Single
Family Mortgage Acquisition Revenue Bonds,
1996 Series C, 6.200%, 7/01/16 (Alternative
Minimum Tax) Aa 1/07 at 102 1,997,560
- -----------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4%
715,000 New Mexico Educational Assistance Foundation,
Student Loan Revenue Bonds, 1992 Series One,
Student Loan Revenue Bonds, Subordinate
1992 Series One-B, 6.850%, 12/01/05
(Alternative Minimum Tax) A 12/02 at 101 746,675
2,740,000 New Mexico Mortgage Finance Authority, Single
Family Mortgage Purchase Refunding Senior
Bonds, 1992 Series A, 6.900%, 7/01/24 Aa1 7/02 at 102 2,847,737
- -----------------------------------------------------------------------------------------------------------------
NEW YORK - 7.5%
10,500,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home FHA-Insured
Mortgage Revenue Bonds, 1992 Series B,
6.200%, 8/15/22 AAA 8/02 at 102 10,643,010
8,240,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home FHA-Insured
Mortgage Revenue Bonds, 1994 Series A,
6.200%, 2/15/21 AAA 2/04 at 102 8,392,687
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
NEW YORK (CONTINUED)
$ 7,500,000 New York State Thruway Authority, General
Revenue Bonds, Series C 6.000%, 1/01/15 Aaa 1/05 at 102 $ 7,695,600
1,000,000 The City of New York, General Obligation Bonds,
Fiscal 1995 Series A, 7.000%, 8/01/04 Baa1 No Opt. Call 1,083,010
8,000,000 The City of New York, General Obligation Bonds,
Fiscal 1996 Series B, 6.750%, 8/15/03 Baa1 No Opt. Call 8,551,200
14,310,000 The City of New York, General Obligation Bonds,
Fiscal 1996 Series F, 6.500%, 2/01/05 Baa1 No Opt. Call 15,109,500
The City of New York, General Obligation Bonds,
Fiscal 1991 Series D:
2,105,000 9.500%, 8/01/02 (Pre-refunded to 8/01/01) Aaa 8/01 at 101 1/2 2,511,518
2,295,000 9.500%, 8/01/02 Baa1 8/01 at 101 1/2 2,680,170
4,000,000 New York City Housing Development Corporation,
Multi-Family Housing Revenue Bonds, 1993
Series A, 5.700%, 11/01/13 Aa 5/03 at 102 3,970,440
5,000,000 New York City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Fixed
Rate Fiscal 1994 Series F, 5.500%, 6/15/23 Aaa 6/04 at 101 1/2 4,770,000
- -----------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.5%
2,000,000 North Carolina Municipal Power Agency Number 1,
Catawba Electric Revenue Bonds, Series 1992,
6.000%, 1/01/11 Aaa No Opt. Call 2,121,740
2,500,000 North Carolina Municipal Power Agency Number 1,
Catawba Electric Revenue Bonds, Series 1993,
4.100%, 1/01/05 Aaa No Opt. Call 2,310,850
- -----------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.1%
8,245,000 Mercer County, North Dakota, Pollution Control
Revenue Bonds (Basin Electric Power Cooperative-
Antelope Valley Station), 1984 Series B,
7.000%, 1/01/19 A 1/99 at 103 8,567,709
1,340,000 City of Minot, North Dakota, Single Family
Mortgage Revenue Refunding Bonds, Series 1993,
7.700%, 8/01/10 Aa 8/03 at 102 1,433,452
- -----------------------------------------------------------------------------------------------------------------
OHIO - 6.4%
3,960,000 Ohio Housing Finance Agency, Residential
Mortgage Revenue Bonds (GNMA Mortgage-
Backed Securities Programs), 1995 Series A-1,
6.300%, 9/01/17 AAA 3/05 at 102 4,088,462
12,745,000 Ohio Housing Finance Agency, Single Family
Mortgage Revenue Bonds (GNMA Mortgage-
Backed Securities Program), 1989 Series A,
7.650%, 3/01/29 (Alternative Minimum Tax) AAA 9/99 at 102 13,404,171
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
OHIO (CONTINUED)
$ 10,000,000 State of Ohio, Pollution Control Revenue Bonds,
Series 1983 (Philip Morris Project),
7.250%, 12/01/08 A 12/97 at 103 $ 10,422,600
4,500,000 Akron, Bath and Copley Joint Township Hospital
District, Ohio, Hospital Facilities Revenue Bonds,
Series 1992 (Summa Health System Project),
6.250%, 11/15/07 A3 11/02 at 102 4,612,500
9,667,071 Bella Vista Housing Incorporated First Mortgage
Revenue Bonds, Ser 1981-A FHA Insured
Section 8 Assisted Project, 10.875%, 6/15/23 N/R 7/98 at 105 10,679,214
1,995,000 County of Franklin, Ohio, Multifamily Housing
Mortgage Revenue Bonds, Series 1994A (FHA
Insured Mortgage Loan-Hamilton Creek
Apartments Project), 5.550%, 7/01/24
(Alternative Minimum Tax) Aa 1/05 at 103 1,865,106
6,600,000 The Student Loan Funding Corporation, Cincinnati,
Ohio, Student Loan Revenue Bonds, Series 1986A,
5.500%, 12/01/01 (Alternative Minimum Tax) A1 No Opt. Call 6,687,582
4,370,000 City of Toledo, Ohio, General Obligation (Limited
Tax), Various Purpose Improvement Bonds,
Series 1994, 5.750%, 12/01/09 Aaa 12/04 at 102 4,484,713
- -----------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4%
3,340,000 Tulsa Industrial Authority Hospital Revenue and
Refunding Bonds (Hillcrest Medical Center
Project), Series 1996, 6.500%, 6/01/09 AAA No Opt. Call 3,595,109
- -----------------------------------------------------------------------------------------------------------------
OREGON - 0.6%
State of Oregon Department of Administrative Services,
Certificates of Participation, 1996 Series C:
1,000,000 5.350%, 5/01/08 Aaa 5/06 at 101 1,007,010
1,500,000 5.400%, 5/01/09 Aaa 5/06 at 101 1,505,175
Columbia River People's Utility District, Columbia
County, Oregon, General Obligation Refunding
Bonds, Series 1996:
1,200,000 5.000%, 6/01/05 Aaa No Opt. Call 1,198,764
1,215,000 5.000%, 6/01/06 Aaa No Opt. Call 1,208,378
- -----------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.6%
5,000,000 The Harrisburg Authority, Dauphin County,
Pennsylvania, Water Revenue Bonds, Series of 1991,
7.000%, 7/15/10 (Pre-refunded to 7/15/01) Aaa 7/01 at 100 5,425,050
5,400,000 City of Philadelphia, Pennsylvania, Water and
Wastewater Revenue Bonds, Series 1995,
5.300%, 8/01/06 Aaa No Opt. Call 5,440,770
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 3,600,000 The Philadelphia Municipal Authority Philadelphia,
Pennsylvania, Lease Revenue Refunding Bonds,
Series A (Financial Guaranty Insured),
5.625%, 11/15/18 Aaa 11/03 at 102 $ 3,520,800
- -----------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.1%
5,500,000 Rhode Island Health and Educational Building
Corporation, Higher Education Facility Revenue
Bonds, Johnson & Wales University (Series 1990),
8.375%, 4/01/20 (Pre-refunded to 4/01/00) AAA 4/00 at 102 6,155,270
3,950,000 Rhode Island Health and Educational Building
Corporation, Higher Education Facility Revenue
Bonds, Providence College Issue, Series 1993,
5.600%, 11/01/22 Aaa 11/03 at 102 3,718,017
- -----------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.7%
6,065,000 South Dakota Student Loan Assistance Corporation
Alternative Minimum Tax, 7.625%, 8/01/06
(Alternative Minimum Tax) Aaa 8/99 at 102 6,406,035
- -----------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3%
2,400,000 Tennessee Housing Development Agency, Mortgage
Finance Program Bonds, 1994 Series A,
6.900%, 7/01/25 (Alternative Minimum Tax) A1 7/04 at 102 2,505,648
- -----------------------------------------------------------------------------------------------------------------
TEXAS - 5.7%
4,831,035 General Services Commission (an Agency of the State
of Texas), as Lessee, Participation Interests,
7.500%, 9/01/22 A 9/97 at 102 4,816,735
8,500,000 Texas Turnpike Authority, Dallas North Tollway
Revenue Bonds, Series 1990, 7.250%, 1/01/10
(Pre-refunded to 1/01/99) Aaa 1/99 at 102 9,048,165
1,000,000 Alliance Airport Authority, Inc., Special Facilities
Revenue Bonds, Series 1990 (American Airlines,
Inc. Project), 7.500%, 12/01/29 (Alternative
Minimum Tax) Baa2 12/00 at 102 1,066,900
6,000,000 Dallas-Fort Worth International Airport Facility
Improvement Corporation, American Airlines, Inc.
Revenue Bonds, Series 1990, 7.500%, 11/01/25
(Alternative Minimum Tax) Baa2 11/00 at 102 6,381,600
2,850,000 City of Dallas, Texas (Dallas, Denton and Collin
Counties), Waterworks and Sewer System Revenue
Refunding Bonds, Series 1993, 5.000%, 4/01/09 Aa 4/03 at 100 2,754,269
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
TEXAS (CONTINUED)
Lien Revenue Bonds, Series 1991A:
$ 2,500,000 6.750%, 7/01/08 (Alternative Minimum Tax) Aaa 7/01 at 102 $ 2,715,625
2,500,000 6.750%, 7/01/21 (Alternative Minimum Tax) Aaa 7/01 at 102 2,664,775
2,094,648 The Midland Housing Finance Corporation
(Midland, Texas), Single Family Mortgage Revenue
Refunding, Series 1992A, 8.450%, 12/01/11 Aaa 11/05 at 103 2,243,996
2,215,000 North Texas Higher Educational Authority, Inc.,
Student Loan Revenue Bonds, Series 1993D,
6.300%, 4/01/09 (Alternative Minimum Tax) A 4/03 at 102 2,227,869
3,410,000 Ratama Development Corporation, Special Facilities
Revenue Bonds (Ratama Park Racetrack Project),
Series 1993, 8.750%, 12/15/12 Aaa No Opt. Call 4,554,976
8,500,000 Travis County Health Facilities Development
Corporation, Hospital Revenue Bonds (Daughters
of Charity National Health System - Daughters of
Charity Health Services of Austin), Series 1993B,
6.000%, 11/15/22 Aa 11/03 at 102 8,514,025
1,690,000 Board of Regents of the University of Texas System,
Revenue Financing System Refunding Bonds,
Series 1991A, 7.000%, 8/15/07 Aa1 8/01 at 102 1,849,367
810,000 University of Texas Financing System Revenue
Refunding Bonds, Series 1991-A, 7.000%, 8/15/07
(Pre-refunded to 8/15/01) Aaa 8/01 at 102 893,673
- -----------------------------------------------------------------------------------------------------------------
UTAH - 1.8%
1,500,000 Intermountain Power Agency (Utah), Power Supply
Revenue Refunding Bonds, 1988 Series A,
7.750%, 7/01/20 A1 7/98 at 102 1,583,535
8,000,000 Intermountain Power Agency (Utah), Power Supply
Revenue Bonds, Series 1996A, 6.150%, 7/01/14 A1 7/06 at 102 8,230,400
6,000,000 Intermountain Power Agency Power Supply Revenue
Refunding Bonds, 1997 Series B, 5.750%, 7/01/19 Aaa 7/07 at 102 5,943,840
- -----------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.3%
2,645,000 Suffolk Redevelopment and Housing Authority,
Multifamily Housing Revenue Refunding Bonds,
Series 1994 (Chase Heritage at Dulles Project),
7.000%, 7/01/24 (Mandatory put 7/01/04) Baa2 7/02 at 104 2,827,135
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
$ 4,500,000 Washington Health Care Facilities Authority
Revenue Bonds, Refunding Series 1993 (Franciscan
Health System/St. Joseph Hospital and Health Care
Center, Tacoma), 5.625%, 1/01/13 Aaa 1/03 at 102 $ 4,428,315
4,500,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds,
Series 1993A, 5.750%, 7/01/13 Aa1 7/03 at 102 4,418,370
23,000,000 Washington Public Power Supply System, Nuclear
Project No. 1 Refunding Revenue Bonds,
Series 1993C, 5.375%, 7/01/15 Aa1 7/03 at 102 21,553,300
4,845,000 Washington Public Power Supply System, Nuclear
Project No. 1, Refunding Revenue Bonds,
Series 1989A, 7.500%, 7/01/15 (Pre-refunded
to 7/01/99) Aaa 7/99 at 102 5,234,490
3,580,000 Washington Public Power Supply System, Nuclear
Project No. 2 Refunding Revenue Bonds,
Series 1990C, 7.625%, 7/01/10 (Pre-refunded
to 1/01/01) Aaa 1/01 at 102 3,988,585
7,250,000 Washington Public Power Supply System Nuclear
Project No. 2 Refunding Revenue Bonds,
Series 1992A, 6.250%, 7/01/12 Aa1 7/02 at 102 7,410,733
6,475,000 Washington Public Power Supply System, Nuclear
Project #2-Refunding Revenue, Series 1990-A,
7.250%, 7/01/06 Aa1 No Opt. Call 7,300,691
10,000,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1993B, 7.000%, 7/01/09 Aa1 No Opt. Call 11,212,900
2,380,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1989B, 5.500%, 7/01/17 Aa1 1/00 at 100 2,219,278
9,655,000 Washington Public Power Supply System, Nuclear
Project No. 3 Refunding Revenue Bonds,
Series 1993C, 5.000%, 7/01/05 Aaa No Opt. Call 9,527,070
5,000,000 Public Utility District No. 1 of Snohomish County,
Washington, Generation System Revenue Bonds,
Series 1993, 5.500%, 1/01/14 Aaa 1/03 at 100 4,885,000
3,500,000 City of Tacoma, Washington, Electric System
Refunding Revenue Bonds, 1992B, 6.150%, 1/01/08 Aaa 1/02 at 102 3,661,000
4,705,000 City of Tacoma, Washington, Sewer Revenue
Refunding Bonds, 1994 Series B, 8.000%, 12/01/08 Aaa No Opt. Call 5,773,316
5,505,000 Housing Authority of the City of Vancouver Revenue
Bonds, 1993, Series B (Fishers Mill Project),
(Junior Lien Bonds), 6.000%, 3/01/23 Aa No Opt. Call 5,490,136
<PAGE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION RATINGS* PROVISIONS** VALUE
<S> <C> <C> <C> <C>
WEST VIRGINIA - 0.2%
$ 1,405,000 West Virginia Housing Development Fund, Housing
Finance Bonds, 1990 Series A, 7.950%, 5/01/17
(Alternative Minimum Tax) Aaa 11/00 at 102 $ 1,423,447
- -----------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.3%
1,400,000 Wisconsin Health and Educational Facilities
Authority, Wheaton Franciscan Services, Inc. System,
Revenue Bonds, Series 1993, 5.750%, 8/15/22 Aaa 8/03 at 102 1,366,161
830,000 Wisconsin Housing and Economic Development
Authority, Home Improvement Revenue Bonds,
1992 Series A, 7.000%, 5/01/10 (Alternative
Minimum Tax) A1 5/02 at 102 863,963
- -----------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.6%
12,390,000 Commonwealth of Puerto Rico, Public Improvement
Bonds of 1997 (General Obligation Bonds),
6.500%, 7/01/13 Aaa No Opt. Call 13,810,760
$830,095,254 Total Investments - (cost $839,170,350) - 98.4% 861,984,236
================
Other Assets Less Liabilities - 1.6% 14,128,308
Net Assets - 100% $876,112,544
============
<PAGE>
<CAPTION>
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 84 $383,274,412 44%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 30 149,680,099 17
PORTFOLIO OF A+ A1 19 102,496,832 12
INVESTMENTS: A, A- A, A2, A3 25 95,800,128 11
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 24 103,382,933 12
BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 466,080 1
Non-rated Non-rated 5 26,883,752 3
TOTAL 188 $861,984,236 100%
<FN>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investments is not rated.
** 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.
</FN>
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) $1,267,025,305 $ 887,656,408 $ 861,984,236
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 4,625,000 3,500,000 --
Cash 26,414 -- --
Receivables:
Interest 26,724,221 17,367,870 17,028,314
Investments sold 1,072,936 8,380,768 1,135,675
Other assets 635,017 49,125 54,823
-------------- -------------- --------------
Total assets 1,300,108,893 916,954,171 880,203,048
-------------- -------------- --------------
LIABILITIES
Cash overdraft -- 17,517 436,998
Payable for investments purchased 1,920,692 -- --
Accrued expenses:
Management fees (note 6) 652,468 466,189 448,005
Other 270,459 197,019 306,546
Preferred share dividends payable 538,423 131,648 123,979
Common share dividends payable 5,070,942 3,156,662 2,774,976
-------------- -------------- --------------
Total liabilities 8,452,984 3,969,035 4,090,504
-------------- -------------- --------------
Net assets (note 7) $1,291,655,909 $ 912,985,136 $ 876,112,544
============== ============== ==============
Preferred shares, at liquidation value $ 350,000,000 $ 300,000,000 $ 308,400,000
============== ============== ==============
Preferred shares outstanding 14,000 12,000 12,336
============== ============== ==============
Common shares outstanding 63,785,431 40,731,119 40,808,465
============== ============== ==============
Net asset value per Common share outstanding (net assets less Preferred
shares at liquidation value,
divided by Common shares outstanding) $ 14.76 $ 15.05 $ 13.91
============== ============== ==============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
Six months ended April 30, 1997
(Unaudited)
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 41,411,281 $ 27,816,082 $ 25,601,900
------------ ------------ ------------
Expenses:
Management fees (note 6) 3,985,487 2,842,093 2,732,573
Preferred shares--remarketing/auction fees 408,330 375,000 385,500
Preferred shares--dividend disbursing agent fees 14,815 30,942 51,442
Shareholders' servicing agent fees and expenses 111,755 37,905 55,104
Custodian's fees and expenses 79,049 60,831 58,659
Directors' fees and expenses (note 6) 19,588 3,691 3,548
Professional fees 13,907 12,685 12,586
Shareholders' reports--printing and mailing expenses 137,721 88,902 97,450
Stock exchange listing fees 26,180 17,724 17,756
Investor relations expense 55,534 33,311 35,037
Other expenses 30,227 23,278 19,049
------------ ------------ ------------
Total expenses 4,882,593 3,526,362 3,468,704
------------ ------------ ------------
Net investment income 36,528,688 24,289,720 22,133,196
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS
Net realized gain from investment transactions
(notes 1 and 3) 78,189 1,034,492 287,041
Net change in unrealized appreciation or depreciation
of investments (10,840,877) (5,667,287) (6,756,634)
------------ ------------ ------------
Net gain (loss) from investments (10,762,688) (4,632,795) (6,469,593)
------------ ------------ ------------
Net increase in net assets from operations $ 25,766,000 $ 19,656,925 $ 15,663,603
============ ============ ============
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPI NPM
Six months ended Year ended Six months ended Year ended
4/30/97 10/31/96 4/30/97 10/31/96
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 36,528,688 $ 73,868,581 $ 24,289,720 $ 48,572,138
Net realized gain from investment transactions
(notes 1 and 3) 78,189 1,864,659 1,034,492 4,115,140
Net change in unrealized appreciation or
depreciation of investments (10,840,877) (8,027,802) (5,667,287) 6,744,631
--------------- --------------- --------------- ---------------
Net increase in net assets
from operations 25,766,000 67,705,438 19,656,925 59,431,909
--------------- --------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (30,425,648) (61,521,076) (19,075,019) (37,757,770)
Preferred shareholders (6,013,674) (12,507,980) (5,199,418) (10,618,502)
From accumulated net realized gains from
investment transactions:
Common shareholders (1,862,536) (3,157,383) -- --
Preferred shareholders -- -- -- --
--------------- --------------- --------------- ---------------
Decrease in net assets from distributions
to shareholders (38,301,858) (77,186,439) (24,274,437) (48,376,272)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (12,535,858) (9,481,001) (4,617,512) 11,055,637
Net assets at beginning of period 1,304,191,767 1,313,672,768 917,602,648 906,547,011
--------------- --------------- --------------- ---------------
Net assets at end of period $ 1,291,655,909 $ 1,304,191,767 $ 912,985,136 $ 917,602,648
=============== =============== =============== ===============
Balance of undistributed net investment
income at end of period $ 776,890 $ 687,524 $ 2,374,629 $ 2,359,346
=============== =============== =============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<CAPTION>
NPT
Six months ended Year ended
4/30/97 10/31/96
<S> <C> <C>
OPERATIONS
Net investment income $ 22,133,196 $ 44,783,671
Net realized gain from investment transactions
(notes 1 and 3) 287,041 3,382,309
Net change in unrealized appreciation or
depreciation of investments (6,756,634) 4,202,791
------------- -------------
Net increase in net assets
from operations 15,663,603 52,368,771
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Common shareholders (16,838,471) (33,267,660)
Preferred shareholders (5,275,186) (10,875,395)
From accumulated net realized gains from
investment transactions:
Common shareholders -- --
Preferred shareholders -- --
------------- -------------
Decrease in net assets from distributions
to shareholders (22,113,657) (44,143,055)
------------- -------------
Net increase (decrease) in net assets (6,450,054) 8,225,716
Net assets at beginning of period 882,562,598 874,336,882
------------- -------------
Net assets at end of period $ 876,112,544 $ 882,562,598
============= =============
Balance of undistributed net investment
income at end of period $ 1,650,192 $ 1,630,654
============= =============
See accompanying notes to financial statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At April 30, 1997, the National Funds (the "Funds")
covered in this report and their corresponding New
York Stock Exchange symbols are Nuveen Premium Income
Municipal Fund, Inc. (NPI), Nuveen Premium Income
Municipal Fund 2, Inc. (NPM) and Nuveen Premium Income
Municipal Fund 4, Inc. (NPT).
Each Fund invests primarily in a diversified portfolio
of municipal obligations issued by state and local
government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end,
diversified management investment companies.
The following is a summary of significant accounting
policies followed by the Funds in the preparation of
their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation The prices of municipal bonds in each Fund's
investment portfolio are provided by a pricing service
approved and supervised by the Fund's Board of
Directors. When price quotes are not readily available
(which is usually the case for municipal securities),
the pricing service establishes fair market value
based on yields or prices of municipal bonds of
comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities
dealers and general market conditions. Temporary
investments in securities that have variable rate and
demand features qualifying them as short-term
securities are 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, 1997, NPI had an outstanding purchase
commitment of $1,920,692. There were no such
purchase commitments in NPM and NPT.
<PAGE>
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 Each Fund is a separate taxpayer for federal income
tax purposes. Each Fund intends to comply with the
requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute
all of its tax-exempt net investment income, in
addition to any significant amounts of net realized
capital gains and/or market discount realized from
investment transactions. The Funds currently consider
significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common
share. Furthermore, each Fund intends to satisfy
conditions which will enable interest from municipal
securities, which is exempt from regular federal
income tax, to retain such tax-exempt status when
distributed to shareholders of the Funds. Net
realized capital gain and market discount
distributions are subject to federal taxation.
Dividends and Tax-exempt net investment income is declared as a
Distributions to dividend monthly and payment is made or reinvestment
Shareholders is credited to shareholder accounts after month-end.
Net realized capital gains and/or market
discount from investment transactions are
distributed to shareholders not less frequently than
annually. Furthermore, capital gains are distributed
only to the extent they exceed available capital
loss carryovers.
Distributions to shareholders of tax-exempt net
investment income, net realized capital gains and/or
market discount are recorded on the ex-dividend date.
The amount and timing of distributions are determined
in accordance with federal income tax regulations,
which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions
as a result of these differences may occur and will be
classified as either distributions in excess of net
investment income, distributions in excess of net
realized gains and/or distributions in excess of net
ordinary taxable income from investment transactions,
where applicable.
<PAGE>
Preferred Shares NPI has issued and outstanding 2,800 shares of
each Series A, B, C, D and E $25,000 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 seven days.
NPM and NPT have issued and outstanding $25,000 stated
value Preferred shares. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate
on each Series may change every seven days, as set by
the auction agent. The number of shares outstanding,
by Series and in total, for each of the Funds is as
follows:
<TABLE>
<CAPTION>
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
====== ======
</TABLE>
Derivative Financial The Funds may invest in transactions in certain
Instruments derivative financial instrumentsincluding futures,
forward, swap, and option contracts, and other
financial instruments with similar characteristics.
Although the Funds are authorized to invest in such
financial instruments, and may do so in the future,
they did not make any such investments during the
six months ended April 30, 1997.
Use of Estimates The preparation of financial statements
in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets
and liabilities at the date of the financial
statements and the reported amounts of increases and
decreases in net assets from operations during the
reporting period.
<PAGE>
2. FUND SHARES
There were no share transactions during the six months
ended April 30, 1997, or during the year ended October
31, 1996, in any of the Funds.
3. SECURITIES TRANSACTIONS
Purchase and sales (including maturities) of
investments in municipal securities and temporary
municipal investments during the six months ended
April 30, 1997, were as follows:
<TABLE>
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $35,291,613 $76,667,850 $57,291,018
Temporary municipal investments 33,325,000 35,100,000 27,900,000
SALES AND MATURITIES
Investments in municipal securities 37,126,820 84,401,400 54,480,192
Temporary municipal investments 28,800,000 34,600,000 27,900,000
=========== =========== ===========
</TABLE>
At April 30, 1997, 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, 1996, the Funds' last fiscal year end,
the following 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:
<TABLE>
<CAPTION>
NPM NPT
<S> <C> <C>
Expiration year:
2001 $ -- $ 3,894,138
2002 -- 12,137,697
2003 659,243 5,211,676
-------- -----------
Total $659,243 $21,243,511
======== ===========
</TABLE>
<PAGE>
<TABLE>
4. DISTRIBUTIONS TO COMMON SHAREHOLDERS
On May 1, 1997, the Funds declared Common share
dividend distributions from their tax-exempt net
investment income which were paid June 2, 1997, to
shareholders of record on May 15, 1997, as follows:
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
Dividend per share $.0765 $.0775 $.0680
====== ====== ======
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at April 30, 1997, were as
follows:
<CAPTION>
NPI NPM NPT
<S> <C> <C> <C>
Gross unrealized:
appreciation $42,399,109 $44,581,798 $24,618,826
depreciation (5,586,092) (169,354) (1,804,940)
----------- ----------- -----------
Net unrealized appreciation $36,813,017 $44,412,444 $22,813,886
=========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements with
Nuveen Advisory Corp. (the "Adviser"), a wholly owned
subsidiary of The John Nuveen Company, each Fund pays
an annual management fee, payable monthly, at the
rates set forth below, which are based upon the
average daily net asset value of each Fund:
<CAPTION>
Average daily net asset value Management fee
<S> <C>
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
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.
7. COMPOSITION OF NET ASSETS At April 30, 1997, 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 903,352,774 565,414,367 563,796,851
Balance of undistributed net investment income 776,890 2,374,629 1,650,192
Accumulated net realized gain (loss) from
investment transactions 75,374 376,385 (20,956,470)
Net unrealized appreciation of investments 36,813,017 44,412,444 22,813,886
-------------- -------------- --------------
Net assets $1,291,655,909 $ 912,985,136 $ 876,112,544
============== ============== ==============
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
============== ============== ==============
</TABLE>
<PAGE>
<TABLE>
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which
include general obligation, escrowed and revenue
bonds. At April 30, 1997, 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 14% 21% 20%
Electric Utilities 11 1 13
Health Care Facilities 10 9 12
Transportation 7 10 8
Pollution Control Facilities 9 6 8
Educational Facilities 4 2 8
Lease Rental Facilities 3 5 2
Water / Sewer Facilities 5 1 3
Other 7 7 3
General Obligation Bonds 8 20 13
Escrowed Bonds 22 18 10
----- ----- -----
100% 100% 100%
===== ===== =====
</TABLE>
Certain long-term and intermediate-term investments
owned by the Funds are either covered by insurance
issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S.
Government agency securities, both of which ensure the
timely payment of principal and interest in the event
of default (48% for NPI, 37% for NPM and 38% for NPT).
Such insurance or escrow, however, does not guarantee
the market value of the municipal securities or the
value of any of the Funds' shares.
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.
<PAGE>
9. OTHER MATTERS
On June 3, 1997, after notice to shareholders, the
federal district court in Chicago approved the
settlement of litigation pending and a similar lawsuit
(dismissed in December 1996) which was pending in
state court in Hennepin County, Minnesota, against
John Nuveen & Co., Incorporated, Nuveen Advisory
Corp., current and former directors of two of the
Nuveen exchange-traded investment companies, Nuveen
Municipal Value Fund, Inc. and Nuveen Premium Income
Municipal Fund, Inc., inside counsel to Nuveen & Co.
(collectively the "Nuveen Defendants") and the two
Funds' former outside legal counsel, making various
allegations with respect to the two Funds' January
1994 rights offerings. The settlement, which in no way
constitutes an admission of liability by any
defendant, will be paid one half each by the insurer
for the Funds' former outside counsel and by the
insurer for the Nuveen Defendants. The settlement will
become final 30 days after its approval, absent
appeal. If appealed, the settlement will become final
if and when the district court's approval is affirmed.
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD
IS AS FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance 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 shareholders+
NPI
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $14.960 $ .573 $ (.173) $ (.477) $(.094)
Year ended 10/31:
1996 15.110 1.158 (.097) (.965) (.196)
1995 14.140 1.235 1.006 (1.056) (.215)
1994 16.300 1.256 (2.016)*** (1.172) (.156)
1993 15.790 1.431 .612 (1.364) (.169)
5 months 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)
6/22/89 to
5/31/90 14.050 1.101 .741 (.747) (.268)
<CAPTION>
NPM
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 15.160 .593 (.110) (.465) (.128)
Year ended 10/31:
1996 14.890 1.193 .265 (.927) (.261)
1995 13.030 1.196 1.878 (.918) (.296)
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) --
<PAGE>
<CAPTION>
Distributions from capital gains
Per
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
NPI
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $(.029) $ -- $ -- $14.760 $14.125
Year ended 10/31:
1996 (.050) -- -- 14.960 14.500
1995 -- -- -- 15.110 14.375
1994 (.072) -- -- 14.140 13.250
1993 -- -- -- 16.300 17.750
5 months 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
6/22/89 to
5/31/90 -- -- (.157) 14.720 14.875
<CAPTION>
NPM
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 -- -- -- 15.050 14.625
Year ended 10/31:
1996 -- -- -- 15.160 14.125
1995 -- -- -- 14.890 13.125
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
<PAGE>
<CAPTION>
Ratios/Supplemental data
Per Total
Common invest- Ratio of
share ment net
market return Total Net assets Ratio of investment
value on return on end of expenses income Portfolio
end of market net asset period (in to average to average turnover
period value** value** thousands) net assets++ net assets++ rate
NPI
<S> <C> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $14.125 .93% 2.06% $1,291,656 .76%* 5.66%* 3%
Year ended 10/31:
1996 14.500 8.24 5.92 1,304,192 .75 5.67 16
1995 14.375 16.88 14.84 1,313,673 .76 6.13 12
1994 13.250 (19.13) (5.88) 1,252,208 .77 6.08 15
1993 17.750 20.96 12.33 1,213,064 .79 6.28 11
5 months ended
10/31/92 15.875 .73 3.46 1,173,329 .78* 6.33* 2
Year ended 5/31:
1992 16.250 13.32 11.72 1,167,042 .66 6.71 2
1991 15.375 10.14 11.88 1,127,103 .65 6.97 1
1990 15.000 8.39 6.74 1,090,365 .65 6.98 4
6/22/89 to
5/31/90 14.875 4.38 10.44 1,089,152 .62* 6.92* 7
<CAPTION>
NPM
<S> <C> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 14.625 6.87 2.37 912,985 .77* 5.34* 8
Year ended 10/31:
1996 14.125 14.94 8.28 917,603 .77 5.34 24
1995 13.125 24.22 22.06 906,547 .77 5.60 27
1994 11.375 (17.76) (10.64) 830,600 .76 5.41 26
1993 14.875 18.47 22.31 835,582 .73 5.19 20
7/23/92 to
10/31/92 13.375 (10.38) (2.89) 552,570 .73* 4.77* 12
See notes on page 70.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD
IS AS FOLLOWS:
<CAPTION>
Dividends from tax-exempt
Operating performance 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 shareholders+
NPT
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $14.070 $ .538 $ (.161) $(.408) $(.129)
Year ended 10/31:
1996 13.870 1.097 .185 (.816) (.266)
1995 12.090 1.100 1.810 (.840) (.290)
1994 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
Organization Common
and offering share
costs and market
To To Preferred share Net asset value
Common Preferred underwriting value end end of
shareholders shareholders+ discounts of period period
NPT
<S> <C> <C> <C> <C> <C>
Six months ended
4/30/97 $ -- $ -- $ -- $13.910 $12.875
Year ended 10/31:
1996 -- -- -- 14.070 12.688
1995 -- -- -- 13.870 12.125
1994 (.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
value** value** thousands) net assets++ net assets++ rate
NPT
<S> <C> <C> <C> <C> <C> <C>
Six months ended
4/30/97 4.72% 1.79% $876,113 .79%* 5.06%* 6%
Year ended 10/31:
1996 11.57 7.53 882,563 .79 5.11 20
1995 21.32 22.41 874,337 .80 5.35 32
1994 (19.12) (13.29) 801,617 .88 5.15 47
2/19/93 to
10/31/93 (2.13) 8.94 431,437 .82* 4.04* 10
<FN>
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination of
reinvested dividend income, reinvested capital gains distributions, if any, and
changes in net asset value per share.
*** Includes ($.187) effect of the Fund's Rights Offering of shares at a
price below NAV and costs of the offering. + The amounts shown are based on
Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders.
</FN>
</TABLE>
<PAGE>
Serving investors for generations
Photographic image of John Nuveen Sr., founder of Nuveen.
Since our founding in 1898, John Nuveen & Co. Incorporated has been synonymous
with investments that withstand the test of time. Today, we offer a broad range
of investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
entrusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach--purchasing securities of strong companies and
communities that represent good long-term value--is the cornerstone of Nuveen's
investment philosophy. It is a careful, long-term strategy that offers the
potential for attractive returns with moderated risk. Successful value investing
begins with in-depth research and a discerning eye for marketplace opportunity.
Nuveen's team of investment professionals is backed by the discipline, resources
and expertise of almost a century of investment experience, including one of the
most recognized municipal research departments in the industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of taxable and tax-free investment
products--including equity and fixed-income mutual funds, unit trusts,
exchange-traded funds, individual managed account services, and cash management
products.
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
FSA-5-4.97
