SEMIANNUAL REPORT April 30, 2000
NUVEEN Investments Invest well. Look ahead. LEAVE YOUR MARK.sm
Dependable, tax-free income to help you keep more of what you earn.
EXCHANGE-TRADED FUNDS
PREMIUM INCOME
NPI
PREMIUM INCOME 2
NPM
PREMIUM INCOME 4
NPT
PHOTO OF: WATER
PHOTO OF: MAN HOLDING BABY
<PAGE>
Credit Quality Highlights
As of April 30, 2000
Nuveen Premium Income Municipal Fund, Inc. (NPI)
PIE CHART:
AAA/U.S. Guaranteed 62%
AA 20%
A 6%
BBB/NR 12%
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
PIE CHART:
AAA/U.S. Guaranteed 65%
AA 10%
A 16%
BBB/NR 9%
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
PIE CHART:
AAA/U.S. Guaranteed 51%
AA 14%
A 15%
BBB/NR 20%
CONTENTS
1 Dear Shareholder
3 Portfolio Manager's Comments
6 NPI's Performance Overview
7 NPM's Performance Overview
8 NPT's Performance Overview
9 Portfolio of Investments
36 Statement of Net Assets
37 Statement of Operations
38 Statement of Changes in Net Assets
39 Notes to Financial Statements
45 Financial Highlights
48 Build Your Wealth Automatically
49 Fund Information
<PAGE>
Photo of: TIMOTHY R. SCHWERTFEGER
CHAIRMAN OF THE BOARD
Sidebar text: "Building and sustaining wealth requires sound, ongoing advice."
Dear Shareholder
The primary objective of your Nuveen Municipal Exchange-Traded Fund is to
provide dependable, attractive tax-free dividends. I am pleased to report that
your Fund continued to achieve this goal during the period covered by this
report. I also encourage you to read the Portfolio Manager's Comments later in
this report, where your Fund's manager takes a comprehensive look at the
investment environment and performance of your Fund for this period.
As an income-oriented investment, we believe your Nuveen Exchange-Traded Fund is
well positioned to be a core element of your long-term investment program. With
the help of your financial advisor, all of us at Nuveen Investments are
dedicated to providing the services, products, perspectives and solutions you
need to help you meet your personal and family goals.
NEW WAYS TO THINK ABOUT WEALTH
In the past few years, much attention has been directed toward the ways we're
accumulating wealth. At Nuveen, we believe it is just as important for investors
also to focus on preserving that wealth, on the responsibilities wealth brings
with it, and on the legacies we will leave for future generations.
This long-term perspective is a key to understanding our portfolio management
strategies, our insistence on quality and our determination to provide
investments that can withstand the test of time. It is a philosophy that we
think is encapsulated well in our brand theme: Invest Well. Look Ahead. Leave
Your Mark.SM
INVEST WELL
Building and sustaining the wealth that can result in lasting legacies requires
a well-developed plan, sound on-going advice, and the discipline to stay focused
on long-term results. With today's abundance of investment products and offers,
it also increasingly requires an experienced and trusted advisor who can guide
you through the opportunities and the pitfalls. With so much potentially at
stake, Nuveen Investments is dedicated to delivering quality products like your
Nuveen Fund through the financial advisors who assist you in making wise
investment choices and help you manage your most important financial assets.
<PAGE>
LOOK AHEAD
We urge all our investors to look ahead, not only to their own goals and
futures, but toward those of future generations as well. We now stand on the
threshold of a new century, anticipating a time of change, discovery and
potential that may one day make the year 2000 seem as archaic as the year 1900.
We don't know all that the future will bring, but we do know that a
well-diversified, carefully-monitored investment program that combines elements
of growth, income and capital preservation will form a solid foundation that can
help meet whatever opportunities and challenges the new century has to offer.
LEAVE YOUR MARK
With the enormous wealth creation of the last decade and the considerable
intergenerational transfer of wealth that is expected to occur over the next 20
years, investors today have a significant opportunity to shape their own and
their family's financial future. These may include establishing trusts,
endowments or legacies that can directly affect our families and communities for
generations to come. We at Nuveen Investments are committed to facilitating and
raising the level of dialogue between investors and their financial advisors in
ways that can help meet goals that extend far beyond the boundaries of a single
lifespan.
Since 1898, the name Nuveen has been synonymous with quality investments,
careful research and prudent management. Today, more than ever, the investments
and services we offer through financial advisors may be well suited to those who
recognize and embrace the need for building and managing wealth. We encourage
you to speak with your financial advisor about how you can enhance your
investment program in ways that help you Look Ahead, Invest Well and Leave Your
Mark.
Sincerely,
/s/TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
June 15, 2000
Sidebar text:"We believe your Nuveen Exchange-Traded Fund is well positioned to
be a core element of your long-term investment program."
<PAGE>
Nuveen Premium Income Exchange-Traded Funds (NPI, NPM, NPT)
Portfolio Managers' Comments
PORTFOLIO MANAGERS TOM FUTRELL, STEVE PETERSON, AND TED NEILD REVIEW THE
NATIONAL ECONOMY, ITS IMPACT ON THE MUNICIPAL MARKET AND FUND PERFORMANCE, AND
THE KEY STRATEGIES THEY'RE USING TO MANAGE THE NUVEEN PREMIUM INCOME
EXCHANGE-TRADED FUNDS. TOM HAS MANAGED NPI SINCE 1988, WHILE STEVE HAS SERVED AS
PORTFOLIO MANAGER FOR NPM SINCE 1994. TED HAS MANAGED NPT SINCE THE FUND'S
INCEPTION IN 1993.
WHAT FACTORS AFFECTED THE U.S. ECONOMY OVER THE PAST 12 MONTHS?
In April 2000, the United States entered its tenth year of uninterrupted
economic expansion, the longest continuous expansion in the nation's history.
While the strong growth trends and relatively benign inflation that have been
the hallmarks of this expansion remained largely in place, unabated consumer
spending and tight labor markets have kept the Federal Reserve concerned that
the pace of growth would eventually trigger a resurgence of inflation.
The shift in financial market sentiment to worries about runaway growth and
inflationary pressures is a marked contrast from the concerns about slower
growth and deflation that followed the global financial crisis of 1998. The
primary catalysts behind this change in sentiment - in addition to consumer
spending and the scarcity of qualified workers - include the quick recovery of
the global economy following the 1998 events, rising commodity prices, and the
accelerating effect of excess cash created to ensure liquidity during the
transition into the year 2000.
All of this prompted the Federal Reserve to embark on a tightening path. In June
1999 the Fed began a series of five short-term interest rate increases that
eventually pushed the federal funds rate up 1.25% to 6.0%. (In May, the Fed
raised rates a sixth time, bringing the fed funds rate to 6.5%). As the Fed
acted and then continued to leave the door open for additional tightenings,
investor uncertainty grew, the equity markets became increasingly volatile, and
bond prices declined as yields pushed higher. The shift in the economic
landscape has been complicated by the rapidly shrinking supply of long-term
Treasuries, as the U.S. government accelerated its program to buy back Treasury
debt. This has created some severe dislocations within and between Treasuries
and other bond markets. Following the Fed's rate hikes, the Treasury yield curve
remained inverted, with the yield on a two-year notes about 60 basis points
higher than that of a 30-year bond.
The Fed's rapid action to rein in the monetary base, plus the shift in policy
from global monetary stimulus to restraint, has provided a foundation that may
help to counterbalance some of the current pressures in the economy. Investors
continue to hope that the Fed's moves will not jeopardize the expansion by doing
too little or too much, but instead successfully engineer a soft landing for the
U.S. economy.
HOW HAVE THESE EVENTS AFFECTED THE MUNICIPAL MARKET?
The cumulative effects of the economic events of the past 12 months were
negative for the fixed-income markets, including municipal bonds. Once the Fed
began its series of interest rate hikes, the rise in municipal yields
accelerated. Over the 12 months ending April 2000, long-term municipal yields
rose about 80 basis points, compared with a 30-point gain in 30-year Treasury
yields. Concurrent with the rise in yields, municipal bond prices slumped. As a
result, by the end of April 2000, long-term municipal yields were 102% of
30-year Treasury yields, compared with the historical average of 86% for the
period 1986-1999.
During the first four months of 2000, new municipal issuance declined more than
26% from the level of the first four months of 1999. This continued the trend
begun last year, as the rising interest rate environment deterred municipalities
from issuing new bonds or refinancing old debt. In addition, robust tax revenue
collections have enabled many state and local governments to use more
pay-as-you-go financings rather than bond issuance to fund projects. Overall,
the decline in supply helped to offset some of the negative impact that higher
interest rates and equity market activity had on the demand for municipal bonds
and, ultimately, on bond prices.
<PAGE>
According to the most recent data released by the Federal Reserve Board, demand
for municipal bonds on the part of individual investors continued to grow in
1999, maintaining a trend seen over the past four years. While total U.S.
municipal debt grew by 5% in 1999, holdings by individual investors grew 11%. As
of January 2000, these investors held 34% of the outstanding municipal debt in
the U.S. This provided some support for a municipal market experiencing a
decline in demand from institutional investors. Buying by mutual and money
market funds, which together accounted for 29% of municipal debt holdings,
reflected the lower demand for bond funds. Property and casualty insurance
companies, the fourth largest group of municipal bond holders with 14%, had less
cash to spend on municipals due to claims from natural disasters and pricing
competition - although we have seen some recovery in buying by this group
lately.
The economic prosperity of the past decade has benefited all sectors of the
municipal bond market, resulting in upgrades in debt ratings. In 1999, upgrades
by Standard & Poor's outnumbered downgrades by a ratio of almost 4 to 1. In
fact, the fourth quarter of 1999 marked the 17th consecutive quarter in which
upgrades exceeded downgrades. The tax-backed sector, which includes general
obligation bonds issued by states, local municipalities, and school and special
purpose districts, fared particularly well in 1999, with upgrades outnumbering
downgrades 30 to 1.
WERE THE FUNDS' DIVIDENDS AFFECTED BY THIS ENVIRONMENT?
During the past year, good call protection within the NPM and NPT portfolios
helped maintain the dividends of these Funds by reducing some of the forced
turnover calls can generate. As of April 30, 2000, NPM had provided
shareholders with steady or increasing dividends since paying its first dividend
in October 1992, and NPT had offered 60 consecutive months of stable or
increasing dividends.
The income-eroding effect of bond calls did impact the portfolio income
generated by NPI and led to dividend adjustments in this Fund over the past 12
months. We have been actively managing the Fund in an effort to mitigate the
longer-term effects of this inevitable process, and we believe NPI will continue
to offer attractive income as we work through this period of portfolio
adjustment.
All of the Funds covered in this report are leveraged, which means the
short-term rates they pay their MuniPreferred(R) shareholders have a direct
impact on the Fund income available to pay common share dividends. As short-term
rates rise, the income available for common shareholders decreases. As we noted,
the Federal Reserve has raised short-term rates six times between June 1999 and
May 2000, and these actions have had a corresponding impact on short-term
municipal rates. This contributed to the dividend reductions in NPI, and may
begin to exert an influence on the common share dividends of all three Funds if
short-term rates continue at historically high recent levels.
OVERALL, HOW DID THE NUVEEN PREMIUM INCOME FUNDS PERFORM OVER THE PAST YEAR?
For the 12 months ended April 30, 2000, the Nuveen Premium Income Funds produced
total returns on NAV as shown in the accompanying table. For comparison
purposes, the annual returns for the Lehman Brothers Municipal Bond Index1 and
Lipper Peer Group2 are also presented.
<TABLE>
<CAPTION>
LEHMAN
TOTAL LIPPER
MARKET YIELD TOTAL RETURN ON NAV RETURN1 AVERAGE2
--------------------------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED TAXABLE- ENDED ENDED
4/30/00 EQUIVALENT3 4/30/00 EQUIVALENT3 4/30/00 4/30/00
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NPI 6.99% 10.13% -6.43% -3.91% -0.92% -5.73%
--------------------------------------------------------------------------------------------
NPM 7.09% 10.28% -3.89% -1.14% -0.92% -5.73%
--------------------------------------------------------------------------------------------
NPT 7.10% 10.29% - 4.26% -1.67% -0.92% -5.73%
--------------------------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
The relative underperformance of the Funds' total returns on NAV when compared
with the Lehman Index can be attributed largely to their duration,4 which is a
measure of the fund's NAV volatility in reaction to interest rate movements.
While leveraging a Fund can enhance the dividends paid to common shareholders,
it also has the effect of lengthening a Fund's duration. In addition, the
durations often are lengthened when we look to add call protection to the
portfolios. As a result, as of April 30, 2000, the durations of the three Nuveen
Premium Income Funds ranged from 10.00 to 14.96, compared with the unleveraged
Lehman Brothers Index's 7.42.
The longer the duration, the more sensitive the Fund's NAV is to changes in
interest rates in either direction. During a period of falling interest rates,
bond prices rise
1 The Funds' performance is compared with that of the Lehman Brothers
Municipal Bond Index, an unleveraged index comprising a broad range of
investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 The Funds' total returns are compared with the average annualized return of
the 50 funds in the Lipper General Leveraged Municipal Debt Funds category.
Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield/ total return represents the yield/total
return that must be earned on a taxable investment in order to equal the
yield/total return of the Nuveen Fund on an after-tax basis. The
taxable-equivalent yield is based on the Fund's market yield on the
indicated date and a federal income tax rate of 31%, while the tax
able-equivalent total return is based on the annualized total return as of
the indicated date and the 31% federal income tax rate.
4 Fund duration, also known as leverage-adjusted duration, takes into account
the leveraging process for the Funds and therefore generally is greater
than the duration of the actual portfolio of individual bonds that make up
the Funds. Unless otherwise noted, references to duration in this
commentary are intended to indicate Fund duration.
<PAGE>
and a long duration enables a Fund's NAV to participate more fully in market
gains. Conversely, when interest rates rise (as they have over most of the past
year), a long duration can make the Fund's NAV more vulnerable to price declines
and weaken total return performance.
We continue to believe that the Funds' longer durations and increased call
production should help to strengthen the relative stability of their common
share dividends over the long-term, and will position the Funds to benefit from
any market recovery.
WHAT ABOUT THE FUNDS' SHARE PRICE PERFORMANCE?
The uncertain economic environment, coupled with an investor focus on equity
market performance, has tended to dampen interest in most fixed-income products.
This lack of demand has put pressure on the prices of many municipal bond
investments, including these three Funds.
As shown in the charts on the Performance Overview pages, the share prices for
all three Funds gradually have declined over much of the past year. These price
declines generally were larger than the declines in the Funds' NAVs. As a
result, over the past year NPI and NPT have seen their discounts (share price
below NAV) widen, while NPM's premium (share price above NAV) has moved to a
discount. With the market prices of all these Funds now lower than the actual
value of the bonds in their portfolios, shareholders may want to consider taking
advantage of this opportunity to add to their holdings of the Nuveen Premium
Income Funds.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN PREMIUM INCOME FUNDS DURING
THE 12 MONTHS ENDED APRIL 30, 2000?
The past 12 months represented a challenging period for all fixed-income
investments. However, the period also provided opportunities to improve the
Funds' structures, provide additional diversification, strengthen the Funds'
long-term dividend-paying capabilities, and enhance tax efficiency by offsetting
potential capital gains with capital losses.
To improve the Funds' structures, we have been selling bonds in demand by
individual investors at attractive prices, including prerefunded bonds and bonds
with short call dates, and buying issues that offer higher yields, longer
maturities, and extended call protection. We also have been watching for pricing
inefficiencies, buying or selling bonds with special features that we don't
believe the market is valuing correctly.
We continue to watch the healthcare sector very care fully. This sector has been
under considerable pressure as hospitals adjust to deregulation and tighter
federal reimbursement guidelines. In our opinion, this has resulted in bonds
from a number of strong issuers carrying what we believe to be very attractive
prices relative to their underlying value. These are the types of bonds we seek.
We believe our experienced Research team provides an advantage in this area,
helping us identify attractive situations and supplying the back ground we need
to understand issuers.
As of April 30, 2000, all three Nuveen Premium Income Funds offered excellent
credit quality, with the portion of their assets invested in bonds rated
AAA/U.S. guaranteed and AA ranging from 65% to 82%. This was balanced by
allocations of BBB/non-rated bonds - from 9% in NPM to 20% in NPT. These
lower-rated bonds generally provided higher yields, especially as credit spreads
have widened in recent months.
WHAT IS YOUR OUTLOOK FOR THE NUVEEN PREMIUM INCOME FUNDS?
NPI, NPM, and NPT all currently offer good levels of call protection, with each
having less than 13% of their portfolios subject to calls between now and the
end of 2001. We will continue to closely monitor bond call activity and try to
take advantage of opportunities to add bonds that extend call protection.
Overall, we plan to focus on the same strategies that we have emphasized over
the past year, including improving Fund structure, enhancing call protection,
and strengthening dividend payment capabilities. We expect the market to
continue working its way through a period of uncertainty that may last beyond
the fall elections. Opportunities do arise in these types of markets, and we
believe we are ready to take advantage of developing situations. We believe the
Funds continue to be well positioned to provide attractive income and a measure
of portfolio diversification that can be a valuable benefit to investors now and
in the future.
<PAGE>
Nuveen Premium Income Municipal Fund, Inc.
Performance Overview
As of April 30, 2000
NPI
PORTFOLIO STATISTICS
Inception Date 7/88
--------------------------------------------------
Share Price $11 1/2
--------------------------------------------------
Net Asset Value $13.53
--------------------------------------------------
Market Yield 6.99%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 10.13%
--------------------------------------------------
Fund Net Assets ($000) $1,388,197
--------------------------------------------------
Average Effective Maturity (Years) 21.64
--------------------------------------------------
Leverage-Adjusted Duration 14.96
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -19.13% -6.43%
--------------------------------------------------
5-Year 1.70% 4.75%
--------------------------------------------------
10-Year 4.69% 6.68%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -16.58% -3.91%
--------------------------------------------------
5-Year 4.62% 7.58%
--------------------------------------------------
10-Year 7.87% 9.88%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
Utilities 17%
--------------------------------------------------
Tax Obligation/General 15%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
Housing/Single Family 12%
--------------------------------------------------
Transportation 12%
--------------------------------------------------
BAR CHART:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/99 0.071
6/99 0.071
7/99 0.071
8/99 0.071
9/99 0.071
10/99 0.071
11/99 0.071
12/99 0.069
1/00 0.069
2/00 0.069
3/00 0.067
4/00 0.067
LINE CHART:
SHARE PRICE PERFORMANCE
5/7/99 15.13
14.63
14.44
14.63
14.38
14.38
14.44
14.31
14.25
14.31
14.19
14.13
14.13
14.06
13.44
13.31
13.44
13.19
12.94
12.75
12.69
12.75
12.38
12.13
12.25
12.75
12.5
12
12.13
11.63
11.63
11.5
11.94
12.19
11.69
11.56
12
12.19
12.25
12.25
12.13
11.81
11.31
11.31
11.5
11.81
11.94
11.5
11.56
4/28/00 11.5
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen Fund on an after-tax
basis.
<PAGE>
Nuveen Premium Income Municipal Fund 2, Inc.
Performance Overview
As of April 30, 2000
NPM
PORTFOLIO STATISTICS
Inception Date 7/92
--------------------------------------------------
Share Price $13 3/8
--------------------------------------------------
Net Asset Value $14.36
--------------------------------------------------
Market Yield 7.09%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 10.28%
--------------------------------------------------
Fund Net Assets ($000) $937,269
--------------------------------------------------
Average Effective Maturity (Years) 14.81
--------------------------------------------------
Leverage-Adjusted Duration 10.00
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -10.59% -3.89%
--------------------------------------------------
5-Year 7.93% 6.86%
--------------------------------------------------
Since Inception 5.10% 6.71%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -7.85% -1.14%
--------------------------------------------------
5-Year 10.92% 9.72%
--------------------------------------------------
Since Inception 8.04% 9.55%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
U.S. Guaranteed 32%
--------------------------------------------------
Tax Obligation/General 19%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Housing/Single Family 9%
--------------------------------------------------
Tax Obligation/Limited 7%
--------------------------------------------------
BAR CHART:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE3
5/99 0.079
6/99 0.079
7/99 0.079
8/99 0.079
9/99 0.079
10/99 0.079
11/99 0.079
12/99 0.079
1/00 0.079
2/00 0.079
3/00 0.079
4/00 0.079
LINECHART:
SHARE PRICE PERFORMANCE
5/7/99 16
15.88
15.69
16.06
16.06
15.75
15.75
15.56
16
16.06
15.81
15.75
15.63
15.5
15.06
14.94
15.13
15.19
14.5
14.5
14.81
14.75
13.88
13.94
14.5
14.94
14.44
13.94
13.44
13.56
13.81
13.81
13.75
13.75
13.38
13.19
13.63
14.13
13.75
13.19
13.31
13
12.56
12.69
12.75
13.44
13.63
13.19
13.31
4/28/00 13.38
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen Fund on an after-tax
basis.
3 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 1999 of $0.0182 per share.
<PAGE>
Nuveen Premium Income Municipal Fund 4, Inc.
Performance Overview
As of April 30, 2000
NPT
PORTFOLIO STATISTICS
Inception Date 2/93
--------------------------------------------------
Share Price $11 3/4
--------------------------------------------------
Net Asset Value $13.37
--------------------------------------------------
Market Yield 7.10%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 10.29%
--------------------------------------------------
Fund Net Assets ($000) $916,538
--------------------------------------------------
Average Effective Maturity (Years) 17.82
--------------------------------------------------
Leverage-Adjusted Duration 11.32
--------------------------------------------------
ANNUALIZED TOTAL RETURN
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -13.11% -4.26%
--------------------------------------------------
5-Year 6.37% 6.34%
--------------------------------------------------
Since Inception 2.84% 5.23%
--------------------------------------------------
TAXABLE-EQUIVALENT TOTAL RETURN2
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -10.44% -1.67%
--------------------------------------------------
5-Year 9.29% 9.05%
--------------------------------------------------
Since Inception 5.69% 7.92%
--------------------------------------------------
TOP FIVE SECTORS (AS A % OF TOTAL INVESTMENTS)
Utilities 19%
--------------------------------------------------
Housing/Multifamily 15%
--------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
BAR CHART:
1999-2000 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/99 0.0695
6/99 0.0695
7/99 0.0695
8/99 0.0695
9/99 0.0695
10/99 0.0695
11/99 0.0695
12/99 0.0695
1/00 0.0695
2/00 0.0695
3/00 0.0695
4/00 0.0695
LINE CHART:
SHARE PRICE PERFORMANCE
5/7/99 14.31
14.06
14
13.94
13.88
13.88
14.06
14.06
14.06
14.31
14.25
14.06
14.13
13.75
13.31
13.56
13.31
13
12.88
12.56
12.44
12.44
12.25
12.25
12.75
13.06
12.75
12.75
12.06
12.16
11.94
11.63
12.13
12.06
12
11.88
12.31
12.56
12.13
12
11.88
11.75
11.5
11.5
11.75
11.88
12
11.75
11.81
4/28/00 11.75
Weekly Closing Price
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 31%.
2 Taxable-equivalent total return is based on the annualized total return and
a federal income tax rate of 31%. It represents the return on a taxable
investment necessary to equal the return of the Nuveen Fund on an after-tax
basis.
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. (NPI)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ARIZONA - 0.9%
$ 9,930 The Industrial Development Authority of the County of Pima 1/02 at 103 AAA $10,526,297
(Arizona), Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A (Irvington Project), 7.250%, 7/15/10
1,850 The Industrial Development Authority of the County of Pima, 9/00 at 101 AAA 1,866,650
Single Family Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Series 1988, 8.125%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8%
4,250 Arkansas Development Finance Authority, Drivers License 6/07 at 100 AAA 4,104,650
Revenue Bonds (Arkansas State Police - Headquarters and
Wireless Data Equipment), Series 1997, 5.400%, 6/01/18
500 City of Fort Smith, Arkansas, Water and Sewer Revenue 10/09 at 100 AAA 492,850
Bonds, Series 1999, 5.650%, 10/01/19
1,000 Sebastian County (Arkansas), Community Junior College District, 4/09 at 100 AAA 1,010,630
General Obligation Improvement Bonds, Series 1999,
5.950%, 4/01/29
6,245 Board of Trustees of the University of Arkansas, Athletic 9/09 at 100 Aaa 5,621,312
Facilities Revenue Bonds (Razorback Stadium Project),
Series 1999, 5.050%, 9/15/20
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.7%
13,000 State of California, Various Purpose General Obligation 10/03 at 102 AA- 11,947,130
Refunding Bonds, 5.150%, 10/01/19
10,250 State of California, Veterans General Obligation Bonds, 12/08 at 101 AAA 10,151,805
Series BH, 5.250%, 12/01/12 (Alternative Minimum Tax)
15,975 State of California Department of Transportation, East Bay 3/01 at 102 A1*** 16,596,108
State Building Authority, Certificates of Participation,
Series 1991A, 6.500%, 3/01/16 (Pre-refunded to 3/01/01)
23,725 State Public Works Board of the State of California, Lease Revenue 6/03 at 102 Aa3 22,850,022
Refunding Bonds (The Regents of the University of California),
1993 Series A (Various University of California Projects),
5.500%, 6/01/21
11,395 State Public Works Board of the State of California, Lease No Opt. Call A+ 11,493,339
Revenue Bonds (Department of Corrections), 1993 Series E
(California State Prison - Madera County (II)), 5.500%, 6/01/15
15,420 Los Angeles Convention and Exhibition Center Authority (California), 8/03 at 102 AAA 14,913,299
Lease Revenue Bonds, 1993 Refunding Series A, 5.375%, 8/15/18
5,000 Department of Water and Power of the City of Los Angeles, 11/03 at 102 AAA 4,314,600
California, Electric Plant Refunding Revenue Bonds, Second
Issue of 1993, 4.750%, 11/15/19
12,250 Los Angeles County Transportation Commission (California), 7/01 at 100 AA- 12,187,403
Sales Tax Revenue Refunding Bonds, Series 1991-B,
5.750%, 7/01/18
1,285 City of Martinez (California), Home Mortgage Revenue Bonds, No Opt. Call AAA 1,817,067
1983 Issue A, 10.750%, 2/01/16
4,125 Redevelopment Agency of the City of Moorpark, Moorpark 10/03 at 102 N/R*** 4,369,035
Redevelopment Project, 1993 Tax Allocation Bonds,
6.125%, 10/01/18 (Pre-refunded to 10/01/03)
20,000 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 24,049,800
Refunding Bonds (GNMA and FNMA Mortgage-Backed Securities),
Series 1990A, 7.600%, 5/01/23
3,000 Sacramento, California, Municipal Utility District, Electric 11/03 at 102 AAA 2,791,380
Revenue Refunding Bonds, 1993 Series D, 5.250%, 11/15/20
San Bernardino Joint Powers Financing Authority, Tax Allocation
Refunding Bonds, Series 1995A:
6,675 5.750%, 10/01/15 10/05 at 102 AAA 6,789,543
10,000 5.750%, 10/01/25 10/05 at 102 AAA 9,900,600
10,000 San Joaquin Hills Transportation Corridor Agency, Toll Road 1/07 at 102 AAA 9,047,900
Refunding Revenue Bonds, Series 1997A, 5.250%, 1/15/30
15,540 Regents of the University of California, Refunding Revenue 9/03 at 102 AAA 13,193,305
Bonds (Multiple Purpose Projects), Series B, 4.750%, 9/01/21
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. (NPI) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COLORADO - 4.2%
$ 2,000 Colorado Housing and Finance Authority, Single Family Program 4/10 at 105 AA $ 2,177,060
Bonds, 2000 Series B-2 Senior Bonds, 7.250%, 10/01/31
(Alternative Minimum Tax)
2,585 Colorado Housing and Finance Authority, Single Family Program 5/07 at 105 Aa2 2,734,568
Bonds, 1997 Series B-2 Senior Bonds, 7.000%, 5/01/26
(Alternative Minimum Tax)
4,500 Colorado Housing and Finance Authority, Single Family Program 11/07 at 105 Aa2 4,712,760
Bonds, 1997 Series C-2 Senior Bonds, 6.875%, 11/01/28
(Alternative Minimum Tax)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
9,450 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 10,906,340
1,725 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 1,834,037
6,550 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 6,895,447
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
715 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 767,839
2,785 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 2,935,195
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
1,830 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,943,570
6,870 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 6,909,571
15,505 City and County of Denver, Colorado, Special Facilities Airport 10/02 at 102 Baa3 15,516,164
Revenue Bonds (United Air Lines Project), Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax)
498 El Paso County, Colorado, Single Family Mortgage Revenue No Opt. Call Aaa 520,452
Tax-Exempt Refunding Bonds, Series 1992A Class A-2,
8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.0%
7,505 District of Columbia, (Washington, D.C.), General Obligation Bonds, No Opt. Call AAA 7,703,732
Series 1998B, 6.000%, 6/01/20
14,800 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103 AAA 14,900,492
Single Family Mortgage Revenue Bonds, Series 1988E-4,
6.375%, 6/01/26 (Alternative Minimum Tax)
5,850 District of Columbia, Revenue Bonds (Association of American 8/07 at 102 AAA 5,375,273
Medical Colleges Issue), Series 1997A, 5.375%, 2/15/27
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.7%
9,290 State of Florida, Full Faith and Credit Department of Transportation 7/05 at 101 AAA 9,702,848
Right-of-Way Acquisition and Bridge Construction Bonds,
Series 1995, 5.800%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
9,950 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, No Opt. Call AAA 9,668,614
Series 1999A, 5.500%, 11/01/22
23,420 Development Authority of Monroe County (Georgia), Pollution 10/00 at 101 A+ 23,787,694
Control Revenue Bonds (Georgia Power Company Plant Scherer
Project), Second Series 1994, 6.750%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 7.7%
19,220 Chicago School Reform Board of Trustees of the Board of 12/07 at 102 AAA 17,088,310
Education of the City of Chicago, Illinois, Unlimited Tax General
Obligation Bonds (Dedicated Tax Revenues), Series 1997A,
5.250%, 12/01/27
10,000 City of Chicago, Chicago O'Hare International Airport, Special Facility 11/00 at 102 Baa1 10,255,100
Revenue Bonds (American Airlines Inc. Project), Series 1990A,
7.875%, 11/01/25 (Alternative Minimum Tax)
6,280 City of Chicago, Chicago O'Hare International Airport, General 1/04 at 102 AAA 5,610,364
Airport Second Lien Revenue Refunding Bonds, 1993 Series C,
5.000%, 1/01/18
4,350 City of Chicago, Collateralized Single Family Mortgage Revenue 3/06 at 105 Aaa 4,562,063
Bonds, Series 1996-A, 7.000%, 9/01/27 (Alternative Minimum Tax)
10,000 The County of Cook, Illinois, General Obligation Bonds, 11/03 at 100 AAA 8,551,300
Series 1993A, 5.000%, 11/15/23
8,740 Illinois Development Finance Authority, Pollution Control 2/04 at 102 AAA 8,382,709
Refunding Revenue Bonds, 1994 Series A (Illinois Power
Company Project), 5.700%, 2/01/24
7,650 Illinois Educational Facilities Authority, Revenue Bonds, 7/08 at 101 Aa1 6,428,678
The University of Chicago, Series 1998A, 5.125%, 7/01/38
8,500 Illinois Educational Facilities Authority, Revenue Refunding Bonds, 7/03 at 102 Aa1 8,157,110
The University of Chicago, Series 1993B, 5.600%, 7/01/24
5,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 10/02 at 102 AAA 5,026,350
(Highland Park Hospital), 6.200%, 10/01/22
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 2,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1997A 10/07 at 102 AAA $ 1,904,820
(Highland Park Hospital Project), 5.750%, 10/01/26
17,545 Illinois Health Facilities Authority, Revenue Bonds, Series 1997 8/07 at 101 AAA 15,081,156
(Sherman Health Systems), 5.250%, 8/01/27
9,500 Metropolitan Pier and Exposition Authority (Illinois), McCormick 12/09 at 101 AAA 8,991,370
Place Expansion Project Bonds, Series 1999A, 5.500%, 12/15/24
4,925 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 5,886,803
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/06
785 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 938,303
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992B, 9.000%, 6/01/06
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.3%
4,300 Indiana State Office Building Commission, Correctional 7/05 at 102 AAA 4,095,836
Facilities Program Revenue Bonds, Series 1995A, 5.500%, 7/01/20
8,000 Metropolitan School District of Steuben County Middle School 7/05 at 102 AAA 8,612,720
Building Corporation, First Mortgage Bonds, Series 1995, Steuben
County, Indiana, 6.375%, 7/15/16 (Pre-refunded to 7/15/05)
5,300 Whitley County Middle School Building Corporation, Columbia City, 1/04 at 102 AAA 5,612,541
Indiana, First Mortgage Bonds, Series 1994, 6.250%, 7/15/15
(Pre-refunded to 1/15/04)
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.5%
3,000 Iowa Finance Authority, Private College Refunding Revenue 12/05 at 102 AAA 2,910,030
Bonds (Drake University Project), Series 1996, 5.400%, 12/01/16
5,435 Iowa Finance Authority, Industrial Revenue Refunding Bonds, 7/14 at 100 AAA 6,985,823
Series A 1989 (Urbandale Hotel Corporation Project), Remarketed,
8.500%, 8/01/16 (Alternative Minimum Tax) (Pre-refunded to 7/15/14)
12,085 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102 AAA 10,361,075
Series 1998A (Iowa Health System), 5.125%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5%
6,000 Sedgwick County, Kansas and Shawnee County, Kansas, 6/08 at 105 Aaa 6,258,420
Single Family Mortgage Revenue Bonds, (Mortgaged-Backed
Securities Program), 1998 Series A1, 6.500%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2%
3,070 Kentucky Development Finance Authority (St. Elizabeth No Opt. Call AAA 3,138,891
Medical Center), 9.000%, 11/01/00
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.2%
2,610 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101 Aaa 2,847,928
Revenue Bonds (Home Ownership Program), Series 2000A,
7.450%, 12/01/31 (Alternative Minimum Tax)
4,600 Louisiana Public Facilities Authority, Hospital Revenue Bonds 7/08 at 101 AAA 3,856,916
(Franciscan Missionaries of Our Lady Health System Project),
Series 1998C, 5.000%, 7/01/28
11,860 Louisiana Stadium and Exposition District, Hotel Occupancy 7/05 at 102 AAA 12,764,088
Tax Bonds, Series 1995-B, 6.375%, 7/01/25
Louisiana Stadium and Exposition District, Hotel Occupancy
Tax Refunding Bonds, Series 1998B:
3,000 4.750%, 7/01/21 7/09 at 102 AAA 2,517,120
14,735 5.000%, 7/01/26 7/09 at 102 AAA 12,705,106
7,660 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 9,672,129
Revenue Bonds (Comm-Care Corporation Project), Series 1994,
11.000%, 2/01/14
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.7%
20,000 Massachusetts Bay Transportation Authority, General Transportation 3/07 at 101 Aa2 17,123,200
System Bonds, 1998 Series B, 5.000%, 3/01/28
4,790 Massachusetts Development Finance Agency, Assisted Living 9/10 at 105 AAA 5,306,793
Facility Revenue Bonds (The Monastery at West Springfield
Project), Series 1999A (GNMA Collateralized), 7.625%, 3/20/41
(Alternative Minimum Tax)
2,890 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,065,741
Revenue Bonds, SEMASS Project, Series 1991B,
9.250%, 7/01/15 (Alternative Minimum Tax)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. (NPI) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS (continued)
$ 2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102 BBB $ 2,574,451
Revenue Refunding Bonds (Ogden Haverhill Project),
Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
16,000 Massachusetts Industrial Finance Agency, General Obligation 7/07 at 102 AAA 14,439,200
Bonds, Suffolk University, Series 1997, 5.250%, 7/01/27
8,800 Massachusetts Water Resources Authority, General Revenue 7/02 at 100 Aaa 8,931,824
Bonds, 1992 Series A, 5.500%, 7/15/22 (Pre-refunded to 7/15/02)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.1%
4,000 School District of the City of Detroit, Wayne County, Michigan, 5/03 at 102 AA+ 3,891,160
School Building and Site Improvement and Refunding Bonds
(Unlimited Tax - General Obligation), Series 1993,
5.400%, 5/01/13
13,000 School District of the City of Detroit, Wayne County, Michigan, No Opt. Call AAA 11,926,070
School Building and Site Improvement Bonds (Unlimited Tax -
General Obligation), Series 1998A, 5.250%, 5/01/25
10,550 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 100 AAA 9,120,370
Refunding Bonds, Series 1995-B, 5.000%, 7/01/25
Hudsonville Public Schools, Counties of Ottawa and Allegan,
State of Michigan, 1997 School Building and Site and Refunding
Bonds (General Obligation - Unlimited Tax):
10,510 5.150%, 5/01/22 5/08 at 100 Aaa 9,466,672
8,045 5.150%, 5/01/27 5/08 at 100 Aaa 7,141,949
9,625 Livonia Public School District, County of Wayne, State 5/03 at 102 AAA 9,214,975
of Michigan, 1993 Refunding Bonds (General Obligation -
Unlimited Tax), 5.500%, 5/01/21
6,600 Michigan State Housing Development Authority, Limited 7/07 at 102 AAA 6,192,582
Obligation Multifamily Mortgage Revenue Refunding Bonds,
Series 1999A (Forest Hills Regency Square Project), 5.750%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.0%
2,765 The Minneapolis/Saint Paul Housing Finance Board, 11/04 at 102 AAA 2,842,061
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)
21,045 The Housing and Redevelopment Authority of the City of St. Paul, 11/15 at 103 AAA 24,019,500
Minnesota, Sales Tax Revenue Refunding Bonds (Civic Center
Project), Series 1996, 7.100%, 11/01/23
992 The Housing and Redevelopment Authority of the City of St. Paul, No Opt. Call Aaa 1,012,614
Minnesota, Single Family Mortgage Revenue Bonds,
Refunding Series 1991-B, 7.250%, 9/01/11
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.7%
5,885 Missouri Housing Development Commission, Single Family 3/07 at 105 AAA 6,212,029
Mortgage Revenue Bonds (Homeownership Loan Program),
1996 Series C, 7.450%, 9/01/27 (Alternative Minimum Tax)
17,775 Missouri Housing Development Commission, Single Family 3/09 at 103 AAA 18,442,807
Mortgage Revenue Bonds (Homeownership Loan Program),
1999 Series B-1, 6.700%, 9/01/30 (Alternative Minimum Tax)
11,120 Francis Howell School District, St. Charles County, Missouri, No Opt. Call AAA 12,705,823
General Obligation Refunding Bonds, Series 1994A,
7.800%, 3/01/08
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.0%
29,410 State of Nevada, Colorado River Commission, General Obligation 7/04 at 101 AA 27,635,107
Revenue Supported Bonds (Limited Tax), Series 1994,
5.500%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.8%
9,915 New Hampshire Housing Finance Authority, Single Family 7/03 at 102 Aa3 9,837,960
Mortgage Revenue Bonds, 1993 Series B, 6.050%, 7/01/25
9,000 Business Finance Authority of the State of New Hampshire, 10/03 at 102 BBB+ 7,981,200
Pollution Control Refunding Revenue Bonds (The United
Illuminating Company Project), 1993 Series A, 5.875%, 10/01/33
7,620 New Hampshire Housing Finance Authority, Single Family 7/06 at 102 Aa3 7,754,798
Mortgage Acquisition Revenue Bonds, 1996 Series B,
6.400%, 1/01/27 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY - 3.8%
$ 10,000 Delaware River Port Authority (New Jersey), Port District Project 1/10 at 100 AAA $ 9,760,400
Bonds, Series B of 1999, 5.625%, 1/01/26
10,000 The Essex County Improvement Authority, Essex County, 10/10 at 100 Aaa 10,150,400
New Jersey, General Obligation Guaranteed Lease Revenue
Bonds, Series 2000 (County Correctional Facility Project),
6.000%, 10/01/25
6,490 New Jersey Health Care Facilities Financing Authority, Revenue 1/09 at 101 AAA 6,173,288
and Refunding Bonds (Saint Barnabas Health Care System
Issue), Series 1998B, 5.250%, 7/01/15
15,000 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101 1/2 AAA 14,692,050
Home Buyer Revenue Bonds, 1997 Series U,
5.850%, 4/01/29 (Alternative Minimum Tax)
11,500 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 12,246,235
Series 2000A, 6.000%, 1/01/14
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.3%
3,555 New Mexico Mortgage Finance Authority, Single Family Mortgage 7/02 at 102 AAA 3,625,282
Purchase Refunding Senior Bonds, 1992 Series A2,
6.900%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.7%
20,700 Long Island Power Authority (New York), Electric System General 6/08 at 101 A- 18,213,309
Revenue Bonds, Series 1998A, 5.250%, 12/01/26
7,500 The City of New York, General Obligation Bonds, Fiscal No Opt. Call A- 8,417,475
1991 Series B, 9.500%, 6/01/03
10,000 The City of New York, General Obligation Bonds, Fiscal 2/06 at 101 1/2 A- 10,243,400
1996 Series G, 5.750%, 2/01/07
100 The City of New York, General Obligation Bonds, Fiscal 10/07 at 101 A-*** 105,990
1997 Series G, 6.000%, 10/15/26 (Pre-refunded to 10/15/07)
9,900 The City of New York, General Obligation Bonds, Fiscal 10/07 at 101 A- 9,867,132
1997 Series G, 6.000%, 10/15/26
16,000 New York City Municipal Water Finance Authority, Water and 6/06 at 101 AAA 15,691,360
Sewer System Revenue Bonds, Fiscal 1996 Series B,
5.750%, 6/15/26
31,625 New York City Transitional Finance Authority, Future Tax Secured 5/08 at 101 AA 26,467,911
Bonds, Fiscal 1998 Series C, 4.750%, 5/01/23
2,430 Dormitory Authority of the State of New York, The Miriam 7/10 at 102 A 2,575,946
Osborn Memorial Home Association, Revenue Bonds,
Series 2000B, 6.875%, 7/01/19
4,000 New York State Energy Research and Development Authority, 3/03 at 102 A+ 3,878,160
Facilities Revenue Bonds, Series 1993A (Consolidated Edison
Company of New York, Inc. Project), 6.000%, 3/15/28
(Alternative Minimum Tax)
10,000 New York Local Government Assistance Corporation, Refunding 4/04 at 100 AA- 8,623,400
Bonds, Series 1993B, 5.000%, 4/01/23
17,340 New York State Medical Care Facilities Finance Agency, Hospital 2/04 at 102 AAA 16,898,177
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1993 Series B, 5.500%, 2/15/22
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.9%
12,360 State of Ohio, Turnpike Revenue Bonds, 1994 Series A, Issued 2/04 at 102 Aaa 12,900,626
by the Ohio Turnpike Commission, 5.750%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6%
12,875 Allegheny County Hospital Development Authority (Pennsylvania), 11/02 at 100 AAA 13,303,480
Health Center Revenue Bonds, Series 1992A (Presbyterian
University Health System, Inc. Project), 6.250%, 11/01/23
(Pre-refunded to 11/01/02)
10,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/03 at 102 AA+ 9,593,500
Revenue Bonds, Series 1993-37A, 5.450%, 10/01/17
8,405 Redevelopment Authority of the City of Philadelphia 4/08 at 103 N/R 7,580,301
(Pennsylvania), Multifamily Housing Mortgage Revenue
Bonds, Series 1998A (Cricket Court Commons Project),
6.200%, 4/01/25 (Alternative Minimum Tax)
5,295 The School District of Philadelphia, Pennsylvania, General 9/05 at 101 AAA 4,987,996
Obligation Bonds, Series B of 1995, 5.500%, 9/01/25
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4%
5,250 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100 BBB+ 4,979,205
Bonds, Series X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.8%
13,200 Rhode Island Health and Educational Building Corporation, 5/07 at 102 AAA 11,658,900
Hospital Financing Revenue Bonds, Lifespan Obligated
Group Issue, Series 1996, 5.250%, 5/15/26
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. (NPI) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SOUTH CAROLINA - 1.1%
$ 17,250 South Carolina Jobs and Economic Development Authority, 2/06 at 102 AAA $15,244,170
Hospital Revenue Bonds (Anderson Area Medical Center, Inc.),
Series 1996, 5.250%, 2/01/26
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.7%
15,155 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa1 15,452,038
Series 1990 (American Airlines, Inc. Project),
7.500%, 12/01/29 (Alternative Minimum Tax)
3,383 Austin Housing Finance Corporation (Texas), Multifamily Housing 12/10 at 105 Aaa 3,762,302
Revenue Bonds, Series 2000A (GNMA Collateralized
Mortgage Loan - Fairway Village Project), 7.375%, 6/20/35
(Alternative Minimum Tax) (DD)
11,020 Brazos River Authority (Texas), Collateralized Pollution Control 3/01 at 102 BBB+ 11,422,230
Revenue Bonds (Texas Utilities Electric Company Project),
Series 1994A, 7.875%, 3/01/21 (Alternative Minimum Tax)
7,800 Brazos River Authority (Texas), Revenue Refunding Bonds 5/08 at 102 AAA 7,021,560
(Houston Industries Incorporated Project), Series 1998C,
5.125%, 5/01/19
5,025 Clear Creek Independent School District, Galveston and Harris 2/10 at 100 AAA 5,161,127
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 6.000%, 2/15/16 (WI)
5,615 Dallas-Fort Worth International Airport Facility Improvement 11/00 at 102 Baa1 5,727,412
Corporation, American Airlines, Inc., Revenue Bonds,
Series 1990, 7.500%, 11/01/25 (Alternative Minimum Tax)
20,000 Dallas-Fort Worth International Airport Facility Improvement 11/02 at 102 Baa1 20,414,000
Corporation, American Airlines, Inc., Revenue Bonds,
Series 1992, 7.250%, 11/01/30 (Alternative Minimum Tax)
15,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102 AAA 14,683,800
Bonds, Series 1994, 5.300%, 8/15/13
10,000 Harris County Hospital District, Texas, Refunding Revenue No Opt. Call AAA 11,192,200
Bonds, 7.400%, 2/15/10
15,000 Harris County (Texas), Housing Finance Corporation, Multifamily 12/10 at 105 N/R 14,981,400
Housing Bonds (Coolwood Oaks and Haverstock Hill
Apartments), Series A, 8.250%, 12/01/31
13,190 Texas Department of Housing and Community Affairs, Residential 1/09 at 101 AAA 11,579,501
Mortgage Revenue Bonds, Series 1998A, 5.350%, 7/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.8%
7,830 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101 1/2 AAA 7,422,370
1997 Series F, 5.750%, 7/01/28 (Alternative Minimum Tax)
4,755 Utah Housing Finance Agency, Single Family Mortgage Senior 7/08 at 101 1/2 AAA 4,066,428
Bonds, Series 1998F2, 5.100%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.9%
12,510 Vermont Housing Finance Agency, Single Family Housing 6/07 at 101 1/2 AAA 12,105,552
Bonds, Series 9, 5.900%, 5/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.1%
10,000 Prince William County Service Authority (Virginia), Water 7/03 at 102 AAA 8,781,900
and Sewer System Refunding Revenue Bonds, Series 1993,
5.000%, 7/01/21
5,000 City of Virginia Beach Development Authority, Multifamily 10/14 at 100 N/R 4,846,300
Housing Revenue Bonds (Residential Rental Hamptons Project),
Series 1999, 7.500%, 10/01/39
1,000 Virginia Housing Development Authority, Commonwealth 7/00 at 101 AA+ 1,000,480
Mortgage Bonds, 1987 Series C, Subseries C-7,
8.375%, 1/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 13.6%
Public Utility District No.1 of Chelan County, Washington,
Chelan Hydro Consolidated System Revenue Bonds, Series 1997A:
11,820 5.650%, 7/01/32 (Alternative Minimum Tax) 7/07 at 102 AA 11,091,415
8,000 5.650%, 7/01/32 (Alternative Minimum Tax) 7/07 at 102 AA 7,459,280
13,450 Public Hospital District No. 2, King County, Washington (Evergreen 12/08 at 101 AAA 11,262,761
Community Health Care), Limited Tax General Obligation
Bonds, Series 1998, 5.000%, 12/01/28
15,050 Municipality of Metropolitan Seattle, Washington, Sewer 1/03 at 102 AAA 13,945,932
Refunding Revenue Bonds, Series Z, 5.500%, 1/01/33
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON (continued)
$ 6,360 Public Utility District No. 1 of Snohomish County, Washington, 1/03 at 100 AAA $ 6,284,316
Generation System Revenue Bonds, Series 1993, 5.500%, 1/01/14
10,000 Washington Health Care Facilities, Authority Revenue Bonds, 11/08 at 101 Aaa 8,730,800
Series 1998 (Swedish Health Services), 5.125%, 11/15/22
11,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 9,155,520
Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28
12,950 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 12,774,528
No. 1 Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17
29,870 Washington Public Power Supply System, Nuclear Project 7/03 at 102 AAA 29,462,275
No. 1 Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/15
7,500 Washington Public Power Supply System, Nuclear Project 7/01 at 100 Aaa 7,618,650
No. 2 Refunding Revenue Bonds, Series 1991A, 6.000%, 7/01/12
(Pre-refunded to 7/01/01)
14,440 Washington Public Power Supply System, Nuclear Project 7/03 at 102 Aa1 14,538,048
No. 2 Refunding Revenue Bonds, Series 1993A, 5.750%, 7/01/12
6,770 Washington Public Power Supply System, Nuclear Project 7/03 at 102 Aa1 6,778,395
No. 2 Refunding Revenue Bonds, Series 1993B, 5.625%, 7/01/12
14,500 Washington Public Power Supply System, Nuclear Project 7/08 at 102 Aa1 13,525,890
No. 2 Refunding Revenue Bonds, Series 1998A, 5.000%, 7/01/12
22,880 Washington Public Power Supply System, Nuclear Project 7/03 at 102 Aa1 21,695,502
No. 3 Refunding Revenue Bonds, Series 1993C, 5.375%, 7/01/15
9,350 Washington Public Power Supply System, Nuclear Project 7/07 at 102 Aa1 8,714,292
No. 3 Refunding Revenue Bonds, Series 1997A, 5.250%, 7/01/15
7,275 Washington Public Power Supply System, Nuclear Project 7/08 at 102 Aa1 6,512,721
No. 3 Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.1%
15,000 West Virginia Housing Development Fund, Housing Finance 5/02 at 102 AAA 15,629,550
Bonds, 1992 Series D, 7.050%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
$ 1,415,828 Total Investments - (cost $1,409,337,371) - 99.2% 1,377,746,894
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 10,450,081
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $1,388,196,975
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a when-issued basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALASKA - 0.4%
$ 3,500 Anchorage Parking Authority, Lease Revenue Refunding Bonds, 12/02 at 102 A2 $ 3,644,970
6.750%, 12/01/08
455 City of Valdez, Alaska, Home Mortgage Revenue Refunding 8/02 at 102 A1 472,636
Bonds, 1992 Series, 7.900%, 2/01/10
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.1%
2,850 The Industrial Development Authority of the County of Maricopa 1/07 at 102 AAA 3,002,618
(Arizona), Multifamily Housing Revenue Bonds (Place Five and
the Greenery Apartments Projects), Series 1996A, 6.625%, 1/01/27
The Industrial Development Authority of the County of Mohave,
Hospital System Revenue Refunding Bonds (Medical Environments,
Inc. and Phoenix Baptist Hospital and Medical Center Inc), Series 1993:
5,705 6.250%, 7/01/03 No Opt. Call Aaa 5,869,817
3,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 3,206,580
9,000 City of Phoenix (Arizona), Civic Improvement Corporation, 7/03 at 102 AAA 9,472,770
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/14 (Pre-refunded to 7/01/03)
3,880 City of Phoenix (Arizona), Civic Improvement Corporation, 7/04 at 102 Aa3 3,232,234
Wastewater System Lease Revenue Refunding Bonds,
Series 1993, 4.750%, 7/01/23
4,310 The Industrial Development Authority of the County of Pima 1/02 at 103 AAA 4,568,816
(Arizona), Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A (Irvington Project), 7.250%, 7/15/10
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.8%
7,710 State of California, Veterans General Obligation Bonds, 12/08 at 101 AAA 7,636,138
Series BH, 5.250%, 12/01/12 (Alternative Minimum Tax)
State Public Works Board of the State of California, Lease
Revenue Bonds (The Trustees of The California State University),
1992 Series A (Various California State University Projects):
15,480 6.625%, 10/01/10 (Pre-refunded to 10/01/02) 10/02 at 102 Aaa 16,506,788
10,500 6.700%, 10/01/17 (Pre-refunded to 10/01/02) 10/02 at 102 AAA 11,214,420
7,150 State Public Works Board of the State of California, Lease 10/04 at 102 A+*** 7,706,771
Revenue Bonds (The Trustees of the California State
University), 1994 Series A (Various California State University
Projects), 6.375%, 10/01/19 (Pre-refunded to 10/01/04)
17,500 State Public Works Board of the State of California, Lease 11/04 at 102 Aaa 19,295,325
1994 Series A (California State Prison - Monterey County
(Soledad II)), 6.875%, 11/01/14 (Pre-refunded to 11/01/04)
30,000 Foothill/Eastern Transportation Corridor Agency (California), No Opt. Call AAA 8,863,500
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21
5,000 City of Loma Linda, California, Hospital Revenue Bonds (Loma 12/03 at 102 N/R 4,380,400
Linda University Medical Center Project), Series 1993-A,
6.500%, 12/01/18
3,365 Community Redevelopment Financing Authority of the Community 9/02 at 102 N/R*** 3,522,146
Redevelopment Agency of the City of Los Angeles, California,
Pooled Financing Bonds, Series D (Crenshaw Redevelopment
Project), 7.000%, 9/01/14 (Pre-refunded to 9/01/02)
7,000 Los Angeles State Building Authority, Lease Revenue Refunding No Opt. Call A+ 7,270,760
Bonds (State of California Department of General Services
Lease), 1993 Series A, 5.625%, 5/01/11
5,000 Los Angeles County Public Works Finance Authority, Revenue 10/04 at 102 AA*** 5,349,400
Bonds, Series 1994A (Los Angeles County Regional Park
and Open Space District), 6.125%, 10/01/10
(Pre-refunded to 10/01/04)
10,000 Los Angeles County Transportation Commission (California), 7/02 at 102 Aaa 10,643,000
Proposition C Sales Tax Revenue Bonds, Second Senior Bonds,
Series 1992-A, 6.750%, 7/01/19 (Pre-refunded to 7/01/02)
2,035 Parlier Redevelopment Agency (Parlier Redevelopment Project), 8/02 at 102 N/R*** 2,167,316
1992 Tax Allocation Bonds, Series A, 6.750%, 8/01/22
(Pre-refunded to 8/01/02)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA (continued)
Redevelopment Agency of the City and County of San Francisco
(California), Hotel Tax Revenue Bonds, Series 1994:
$ 2,390 6.750%, 7/01/15 (Pre-refunded to 7/01/04) 7/04 at 102 AAA $ 2,610,573
960 6.750%, 7/01/25 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 1,020,912
5,905 Redevelopment Agency of the City and County of San Francisco 7/04 at 102 AAA 6,449,972
(California), Hotel Tax Revenue Bonds, Series 1994,
6.750%, 7/01/25
5,605 County of San Joaquin, California, Certificates of Participation 4/04 at 102 A 5,698,604
(1994 Solid Waste System Facilities Project), 6.600%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.8%
9,870 Colorado Health Facilities Authority, Insured Hospital Revenue 2/01 at 102 AAA 10,205,777
Bonds (PSL Healthcare System Project), Series 1991A,
6.250%, 2/15/21 (Pre-refunded to 2/15/01)
615 Colorado Housing and Finance Authority, Single Family Program 12/04 at 105 Aa2 649,016
Senior Bonds, 1994 Series E, 8.125%, 12/01/24
(Alternative Minimum Tax)
Colorado Housing and Finance Authority, General Obligation
Bonds, 1994 Series A:
5,645 6.850%, 8/01/24 (Pre-refunded to 8/01/02) 8/02 at 102 A*** 5,976,418
1,245 6.875%, 8/01/30 (Pre-refunded to 8/01/02) 8/02 at 102 A*** 1,318,741
3,240 Colorado Housing and Finance Authority, Single Family Program 12/05 at 105 Aa2 3,410,359
Senior Bonds, 1995 Series D, 7.375%, 6/01/26
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991D:
400 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 461,644
3,155 7.750%, 11/15/21 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 3,354,428
12,115 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 12,753,945
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992B:
1,445 7.250%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 1,551,786
5,635 7.250%, 11/15/23 (Alternative Minimum Tax) 11/02 at 102 A 5,938,896
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
2,125 6.750%, 11/15/13 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa 2,256,878
16,120 6.750%, 11/15/13 (Alternative Minimum Tax) 11/02 at 102 A 16,383,240
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
1,925 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 100 Aaa 2,017,670
5,315 8.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 5,506,181
1,700 City and County of Denver (Colorado), Multifamily Housing Revenue 10/07 at 102 AAA 1,603,899
Bonds (FHA-Insured Mortgage Loan - The Boston Lofts Project),
Series 1997A, 5.750%, 10/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.3%
3,170 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102 AA 3,242,181
Finance Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.5%
1,750 Alachua County Health Facilities Authority, Health Facilities 11/00 at 102 AAA 1,814,750
Revenue Bonds, Series 1992 (Santa Fe Healthcare Facilities
Project), 7.600%, 11/15/13 (Pre-refunded to 11/15/00)
5,000 Dade County, Florida, Aviation Bonds, Series 1996A, 10/06 at 102 AAA 4,952,150
5.750%, 10/01/18 (Alternative Minimum Tax)
2,850 State of Florida, Full Faith and Credit, Department of 7/05 at 101 AAA 2,986,316
Transportation, Right-of-Way Acquisition and Bridge Construction
Bonds, Series 1995, 5.875%, 7/01/24
12,500 City of Tampa, Florida, Revenue Bonds (The Florida Aquarium 5/02 at 102 N/R*** 13,372,500
Project), Series 1992, 7.750%, 5/01/27 (Pre-refunded to 5/01/02)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.5%
5,500 City of Atlanta (Georgia), Water and Sewerage Revenue Bonds, 1/04 at 100 AAA 5,391,210
Series 1993, 4.500%, 1/01/18 (Pre-refunded to 1/01/04)
7,000 Development Authority of Burke County, Georgia, Pollution 1/03 at 103 AAA 7,711,340
Control Revenue Bonds (Oglethorpe Power Corporation
Vogtle Project), Series 1992, 8.000%, 1/01/15
(Pre-refunded to 1/01/03)
650 Housing Authority of Fulton County, Georgia, Single Family 9/06 at 102 AAA 652,873
Mortgage Revenue Refunding Bonds (GNMA Mortgage-Backed
Securities Program), Series 1996A, 6.200%, 9/01/27
(Alternative Minimum Tax)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
IDAHO - 0.8%
$ 3,315 Idaho Housing Finance Agency, Housing Revenue Bonds 6/05 at 102 Aa $ 3,331,542
(Park Place Project), 1995 Series A, FHA-Insured Mortgage,
6.500%, 12/01/36 (Alternative Minimum Tax)
2,240 Idaho Housing and Finance Association, Single Family Mortgage 7/06 at 102 Aaa 2,251,066
Bonds, 1996 Series G, 6.350%, 7/01/26 (Alternative Minimum Tax)
2,275 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100 Aa2 2,291,153
Bonds, 2000 Series B, 6.250%, 7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.1%
5,000 City of Chicago, General Obligation Bonds (Emergency Telephone 1/03 at 102 AAA 5,172,850
System), Series 1993, 5.625%, 1/01/23 (Pre-refunded to 1/01/03)
17,000 City of Chicago, General Obligation Bonds, Project 1/02 at 102 AAA 17,650,250
Series A of 1992, 6.250%, 1/01/12 (Pre-refunded to 1/01/02)
18,200 City of Chicago, Illinois, General Obligation Bonds, 1/06 at 102 AAA 15,943,564
Series 1995A-1 Project Bonds, 5.125%, 1/01/25
1,000 City of Chicago (Illinois), General Obligation Bonds, Project 7/08 at 102 AAA 914,510
and Refunding Series 1998, 5.250%, 1/01/20
22,670 City of Chicago (Illinois), General Obligation Bonds (City Colleges No Opt. Call AAA 5,049,062
of Chicago Capital Improvement Project), Series 1999,
0.000%, 1/01/25
Chicago School Reform Board of Trustees of the Board of
Education of the City of Chicago, Illinois, Unlimited Tax
General Obligation Bonds (Dedicated Tax Revenues), Series 1998A:
61,300 0.000%, 12/01/20 No Opt. Call AAA 16,436,982
23,800 0.000%, 12/01/21 No Opt. Call AAA 6,823,460
5,000 Chicago School Reform Board of Trustees of the Board of Education No Opt. Call AAA 1,433,500
of the City of Chicago, Illinois, Unlimited Tax General Obligation
Bonds (Dedicated Tax Revenues), Series 1999A, 0.000%, 12/01/20
8,270 City of Chicago, Illinois, Mortgage Revenue Bonds, Series 1992 6/02 at 102 AAA 8,479,893
(FHA-Insured Mortgage Loan - Lakeview Towers Project),
6.650%, 12/01/33
1,175 City of Chicago, Multifamily Housing Revenue Bonds, Series 1997 6/09 at 102 Aaa 1,125,955
(GNMA Collateralized - Bryn Mawr/Belle Shores Project),
5.800%, 6/01/23 (Alternative Minimum Tax)
5,500 Chicago Park District, Illinois, General Obligation Capital 1/02 at 102 AA*** 5,765,100
Improvement Bonds, Aquarium and Museum Bonds,
Series 1991, 6.700%, 1/01/11 (Pre-refunded to 1/01/02)
10,900 Public Building Commission of Chicago (Illinois), Building Revenue 12/03 at 102 AAA 11,353,222
Bonds, Series A of 1993 (Board of Education of the City
of Chicago), 5.750%, 12/01/18 (Pre-refunded to 12/01/03)
4,415 City of Chicago, Illinois, Tax Increment Allocation Bonds 1/07 at 102 N/R 4,501,313
(Read-Dunning Redevelopment Project), Series 1996B,
7.250%, 1/01/14
3,530 City of Chicago, Illinois, Tax Increment Allocation Bonds (Sanitary 1/07 at 102 N/R 3,654,044
Drainage and Ship Canal Redevelopment Project), Series 1997A,
7.750%, 1/01/14
2,850 City of East St. Louis, Illinois, Mortgage Revenue Refunding 7/03 at 102 AAA 2,912,273
Bonds, Series 1994A (FHA-Insured Mortgage Loan - Dawson
Manor Apartments, Section 8 Assisted Project), 6.500%, 7/01/24
6,900 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 5,937,036
Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A+ 2,874,480
Series 1993C (Lutheran General HealthSystem), 6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance Bonds,
2000 Series A:
1,210 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100 AA 1,212,602
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100 AA 1,247,602
11,510 The Illinois State Toll Highway Authority, Toll Highway 1/03 at 102 AA-*** 12,105,297
Priority Revenue Bonds, 1992 Series A, 6.375%, 1/01/15
(Pre-refunded to 1/01/03)
495 Village of Wheeling, Cook and Lake Counties, Illinois, 11/02 at 102 AAA 506,296
Single Family Mortgage Revenue Refunding Bonds, Series 1992,
6.850%, 11/01/09
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDIANA - 7.7%
$ 8,000 East Chicago Elementary School Building Corporation 1/03 at 102 A*** $ 8,541,520
(Lake County, Indiana), First Mortgage Bonds, Series 1992,
7.000%, 1/15/16 (Pre-refunded to 1/15/03)
13,630 Hospital Authority of the City of Fort Wayne, Indiana, 11/02 at 102 A+*** 14,360,977
Revenue Bonds, Series 1992 (Parkview Memorial Hospital, Inc.
Project), 6.400%, 11/15/22 (Pre-refunded to 11/15/02)
6,031 City of Greenfield, Indiana, Multifamily Housing Revenue Bonds, 12/05 at 105 Aaa 5,990,653
Series 1996A (Pedcor Investments, 1988-V, L.P. Project),
6.200%, 12/01/28 (Alternative Minimum Tax)
10,675 Highland School Building Corporation (Highland, Indiana), 1/02 at 102 AAA 11,212,059
First Mortgage Bonds, Series 1992A, 6.750%, 1/15/20
(Pre-refunded to 1/15/02)
8,200 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/03 at 102 AAA 8,543,990
Series 1993A Guarantee Revenue Bonds, 6.250%, 2/01/09
2,875 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/05 at 102 AAA 3,028,036
Series 1994B Guarantee Revenue Bonds, 6.750%, 2/01/17
3,500 Indiana Bond Bank, Special Program Bonds, Series 2000A 2/10 at 101 AAA 3,511,235
(City of East Chicago Facilities Building Corporation Project),
6.125%, 2/01/25
6,000 Indiana Development Finance Authority, Environmental 2/03 at 102 AAA 5,650,440
Revenue Bonds, Series 1993B (PSI Energy, Inc.),
5.750%, 2/15/28 (Alternative Minimum Tax)
5,250 Indiana Transportation Finance Authority, Aviation Technology 3/03 at 102 AA 5,352,848
Center Lease Revenue Bonds, Series A, 6.500%, 3/01/18
5,905 Muncie School Building Corporation, First Mortgage Bonds, 7/01 at 102 N/R*** 6,151,298
Series 1992, 6.625%, 7/15/14 (Pre-refunded to 7/15/01)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3%
1,335 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103 A2 1,384,061
Refunding Bonds, Series 1994, 7.100%, 5/01/12
1,535 Sedgwick County, Kansas and Shawnee County, Kansas, No Opt. Call Aaa 1,612,211
Collateralized Single Family Mortgage Refunding Revenue
Bonds (GNMA Certificates), Series 1994A1, 7.900%, 5/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.6%
5,780 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102 AAA 5,865,660
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.8%
3,835 Bossier Public Trust Financing Authority, Single Family Mortgage 8/05 at 102 AAA 3,771,339
Revenue Refunding Bonds, Series 1995B, 6.125%, 8/01/28
12,505 East Baton Rouge Mortgage Finance Authority, Single Family 10/05 at 102 Aaa 12,504,250
Mortgage Revenue Bonds (GNMA and FNMA Mortgage-Backed
Securities Program), Series 1994C, 6.350%, 10/01/28
(Alternative Minimum Tax)
4,980 New Orleans Home Mortgage Authority, Single Family 6/05 at 102 Aaa 5,090,855
Mortgage Revenue Bonds, Series 1995A, 6.300%, 6/01/28
(Alternative Minimum Tax)
4,360 Orleans Levee District (A Political Subdivision of the State 12/05 at 103 AAA 4,464,771
of Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/15
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.0%
1,065 Maine State Housing Authority, Mortgage Purchase Bonds, 11/05 at 102 AA 1,067,492
1995 Series B-2, 6.300%, 11/15/26 (Alternative Minimum Tax)
7,925 Maine State Housing Authority, Mortgage Purchase Bonds, 8/02 at 102 Aa2 7,950,836
1990 Series A-4, 6.400%, 11/15/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.1%
965 Community Development Administration, Department of Housing 5/03 at 102 Aa2 991,740
and Community Development, State of Maryland, Multifamily
Housing Revenue Bonds (Insured Mortgage Loans),
1993 Series C, 6.625%, 5/15/23
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MASSACHUSETTS - 0.7%
$ 3,080 Massachusetts Industrial Finance Agency, Revenue Bonds 3/06 at 102 AAA $ 2,958,278
(College of the Holy Cross - 1996 Issue), 5.625%, 3/01/26
3,605 Massachusetts Water Resources Authority, General Revenue 12/04 at 102 AAA 3,325,540
Bonds, 1993 Series C, 5.250%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.4%
8,000 Michigan State Hospital Finance Authority, Hospital Revenue 11/03 at 102 AAA 7,732,320
Refunding Bonds (Oakwood Hospital Obligated Group),
Series 1993A, 5.625%, 11/01/18
5,285 Michigan State Housing Development Authority, Rental Housing 10/02 at 102 AA- 5,459,881
Revenue Bonds, 1992 Series A, 6.650%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.3%
3,560 Housing and Redevelopment Authority of the City of St. Paul, 12/02 at 102 BBB+ 3,486,344
Minnesota and City of Minneapolis, Minnesota, Health Care
Facility Revenue Bonds, Series 1992 (Group Health Plan, Inc.
Project), 6.900%, 10/15/22
3,140 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102 AAA 3,105,774
1995 Series D, 5.950%, 2/01/18
4,590 Minnesota Housing Finance Agency, Single Family Mortgage 1/06 at 102 AA 4,653,663
Bonds, 1996 Series G, 6.250%, 7/01/26 (Alternative Minimum Tax)
2,000 Southern Minnesota Municipal Power Agency, Power Supply 1/03 at 102 Aaa 2,056,220
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11
2,350 Washington County Housing and Redevelopment Authority, 1/03 at 102 BBB 2,392,418
Pooled Housing and Redevelopment Limited Annual Appropriation
Tax and Revenue Bonds (Pooled Refunding Project), Series 1992,
7.200%, 1/01/22
5,170 Washington County Housing and Redevelopment Authority, 12/02 at 100 A3*** 5,483,922
Lease Revenue Bonds (South Washington County Schools
Project), Series 1992, 7.400%, 12/01/14 (Pre-refunded to 12/01/02)
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4%
4,000 Mississippi Hospital Equipment and Facilities Authority, Revenue 10/02 at 102 AAA 4,181,960
Bonds, Series 1992A (Wesley Health Systems),
6.050%, 4/01/12 (Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8%
5,500 The Industrial Development Authority of the City of St. Louis, 12/02 at 102 N/R 5,692,720
Missouri, Industrial Revenue Refunding Bonds (Kiel Center
Multipurpose Arena Project), Series 1992, 7.625%, 12/01/09
(Alternative Minimum Tax)
11,000 St. Louis Municipal Finance Corporation, Leasehold Revenue 7/03 at 102 AAA 11,153,340
Refunding Bonds, 6.000%, 7/15/13
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.4%
4,000 Clark County, Nevada, Industrial Development Revenue 6/02 at 102 AAA 4,156,240
Bonds (Nevada Power Company Project), Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.5%
4,505 New Hampshire Higher Educational and Health Facilities Authority, 7/00 at 101 BBB+ 4,601,542
Hospital Revenue Bonds, Catholic Medical Center Issue,
Series 1989, 8.000%, 7/01/04
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.3%
4,500 New Jersey Economic Development Authority, Insured Revenue 5/05 at 102 AAA 4,769,595
Bonds (Educational Testing Service Issue), Series 1995A,
6.000%, 5/15/25
8,720 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101 1/2 AAA 8,037,573
Multifamily Housing Revenue Bonds, 1997 Series A,
5.650%, 5/01/40 (Alternative Minimum Tax)
4,145 New Jersey Housing and Mortgage Finance Agency, 11/02 at 102 A+ 4,325,432
Housing Revenue Refunding Bonds, 1992 Series One,
6.700%, 11/01/28
1,000 Toms River Board of Education, General Obligation Bonds, 7/07 at 100 AAA 1,040,260
Series 1997, 5.750%, 7/15/21 (Pre-refunded to 7/15/07)
3,820 The Union County Utilities Authority (New Jersey), Solid Waste 6/08 at 101 AAA 3,528,190
Bonds, County Deficiency Agreement, Series 1998A,
5.350%, 6/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4%
3,875 New Mexico Mortgage Finance Authority, Single Family 7/05 at 102 AAA 3,907,899
Mortgage Program Bonds, 1995 Series E, 6.300%, 7/01/17
(Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK - 16.5%
$ 22,400 Long Island Power Authority (New York), Electric System General 6/08 at 101 AAA $19,852,224
Revenue Bonds, Series 1998A, 5.125%, 12/01/22
Long Island Power Authority (New York), Electric System General
Revenue Bonds, Series 2000A:
10,000 0.000%, 6/01/22 (WI) No Opt. Call AAA 2,688,700
15,000 0.000%, 6/01/23 (WI) No Opt. Call AAA 3,791,850
7,695 The City of New York, General Obligation Bonds, No Opt. Call A- 8,036,966
Fiscal 1995 Series E, 6.600%, 8/01/03
17,365 The City of New York, General Obligation Bonds, No Opt. Call A- 18,789,277
Fiscal 1996 Series F, 7.000%, 2/01/06
11,130 The City of New York, General Obligation Bonds, 3/06 at 101 1/2 A- 11,129,110
Fiscal 1996 Series I, 5.875%, 3/15/18
The City of New York, General Obligation Bonds, Fiscal 1996
Series J (Subseries J-1):
9,000 5.875%, 2/15/19 2/06 at 101 1/2 A- 8,959,590
3,820 5.500%, 2/15/26 2/06 at 101 1/2 A- 3,544,616
4,250 The City of New York, General Obligation Bonds, 8/06 at 101 1/2 A- 4,179,450
Fiscal 1997 Series E, 5.875%, 8/01/24
The City of New York, General Obligation Bonds, Fiscal 1993 Series A:
3,140 6.375%, 8/01/08 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 3,288,742
6,860 6.375%, 8/01/08 8/02 at 101 1/2 A- 7,137,007
660 6.500%, 8/01/11 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 692,941
1,340 6.500%, 8/01/11 8/02 at 101 1/2 A- 1,397,633
The City of New York, General Obligation Bonds, Fiscal 1997 Series I:
6,950 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101 A-*** 7,447,551
5,070 6.250%, 4/15/27 4/07 at 101 A- 5,165,164
The City of New York, New York, General Obligation Bonds, Fiscal
1995 Series D:
285 6.600%, 2/01/03 No Opt. Call A-*** 296,548
10,465 6.600%, 2/01/03 No Opt. Call A- 10,863,403
1,370 New York City Municipal Water Finance Authority, Water and 6/07 at 101 AAA 1,294,431
Sewer System Revenue Bonds, Fiscal 1997 Series B,
5.500%, 6/15/27
3,150 New York City, New York, Municipal Water Finance Authority, 6/05 at 101 AAA 3,129,273
Water and Sewer System Revenue Bonds, Fiscal 1996 Series A,
5.875%, 6/15/25
4,000 The Trust for Cultural Resources of The City of New York, 4/07 at 101 AAA 3,862,040
Revenue Bonds, Series 1997A (American Museum of Natural
History), 5.650%, 4/01/27
2,500 Dormitory Authority of the State of New York, City University 7/06 at 102 A 2,498,300
System Consolidated Revenue Bonds, 1996 Series 2,
6.000%, 7/01/20
17,450 New York State Energy Research and Development Authority, 12/01 at 101 AAA 17,694,475
Facilities Revenue Bonds, Series 1992B (Consolidated Edison
Company of New York, Inc. Project), 6.375%, 12/01/27
(Alternative Minimum Tax)
7,635 New York State Medical Care Facilities Finance Agency, Mercy 5/05 at 102 AA- 8,017,437
Medical Center Project Revenue Bonds, 1995 Series A,
5.875%, 11/01/15
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4%
7,000 County of Cumberland, North Carolina, Hospital Facility 10/09 at 101 A- 6,038,550
Revenue Bonds (Cumberland County Hospital System Inc.),
Series 1999 (Cape Fear Valley Health System),
5.250%, 10/01/19
5,185 City of Durham, Urban Redevelopment Mortgage Revenue 8/07 at 105 AAA 5,478,367
Bonds (Durham Hosiery Mill Project) (FHA-Insured), Series 1987,
7.500%, 8/01/29 (Alternative Minimum Tax)
1,765 North Carolina Housing Finance Agency, Single Family Revenue 3/06 at 102 AA 1,784,256
Bonds, Series JJ (1985 Resolution), 6.450%, 9/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.4%
4,035 Mercer County, North Dakota, Pollution Control Revenue Bonds 7/00 at 102 1/2 A 4,138,861
(Basin Electric Power Cooperative-Antelope Valley Station),
1984 Series B, 7.000%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.8%
2,000 Ohio Housing Finance Agency, Multifamily Housing Mortgage 1/08 at 102 Aa2 1,768,940
Revenue Bonds, Series 1998B-1 (FHA-Insured Mortgage Loan -
Courtyards of Kettering Project), 5.550%, 1/01/40
(Alternative Minimum Tax)
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OHIO (continued)
$ 5,250 State of Ohio, Ohio Air Quality Development Authority, Air Quality 4/07 at 102 AAA $ 4,979,258
Development Revenue Bonds (JMG Funding, Limited
Partnership Project), Series 1997, 5.625%, 1/01/23
(Alternative Minimum Tax)
5,000 Ohio Water Development Authority, State of Ohio, Collateralized 8/02 at 102 A2 5,027,650
Water Development Revenue Refunding Bonds,
1992 Series A (The Dayton Power and Light Company Project),
6.400%, 8/15/27
6,750 Ohio Water Development Authority, State of Ohio, Solid 9/08 at 102 N/R 5,348,160
Waste Disposal Revenue Bonds (Bay Shore Power Project),
Convertible Series 1998B, 5.875%, 9/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.6%
1,430 Oklahoma Housing Finance Agency, Single Family Mortgage 9/09 at 101 Aaa 1,442,784
Revenue Bonds (Homeownership Loan Program), 2000 Series A-2,
6.350%, 9/01/27 (Alternative Minimum Tax)
1,000 Tulsa County Industrial Authority (Tulsa, Oklahoma), Recreational 9/02 at 102 A- 1,042,500
Facilities Revenue Bonds, Refunding Series 1992,
6.600%, 9/01/08
2,990 Tulsa County Public Facilities Authority (Tulsa, Oklahoma), 11/02 at 102 A 3,121,829
Recreational Facility Refunding Revenue Bonds,
Series 1992, 6.600%, 11/01/08
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.5%
13,350 State of Oregon, General Obligation, Elderly and Disabled 8/02 at 102 AA 13,672,403
Housing Bonds, 1992 Series B, 6.375%, 8/01/24
5,450 State of Oregon, General Obligation Veterans Welfare Bonds, 10/05 at 102 AA 5,492,837
Series 75, 6.000%, 4/01/27
1,750 State of Oregon, Housing and Community Services Department, 7/07 at 101 1/2 Aa2 1,656,165
Mortgage Revenue Bonds (Single Family Mortgage Program),
1997 Series H, 5.650%, 7/01/28 (Alternative Minimum Tax)
2,835 City of Portland, Oregon, Limited Tax Improvement Bonds, 6/06 at 100 Aa 2,839,905
1996 Series A, 5.550%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.4%
2,400 Beaver County Industrial Development Authority (Pennsylvania), 7/05 at 102 A 2,622,312
Collateralized Pollution Control Revenue Refunding Bonds,
Series 1995-A (The Cleveland Electric Illuminating Company -
Beaver Valley Project), 7.750%, 7/15/25
1,000 Delaware Valley Regional Finance Authority, Local Government No Opt. Call AAA 970,750
Revenue Bonds, Series 1997B, 5.700%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.6%
5,000 Commonwealth of Puerto Rico, Public Improvement Refunding 7/08 at 101 AAA 4,059,200
Bonds, Series 1998 (General Obligation Bonds), 4.500%, 7/01/23
1,375 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 BBB+ 1,304,078
Series X, 5.500%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.2%
2,135 School District No. 4 of Lexington County, South Carolina, 7/04 at 102 Baa2 2,243,138
Certificates of Participation, Series 1994, 7.000%, 7/01/12
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 1.2%
South Dakota Building Authority, Revenue Bonds, Series 1992:
510 6.700%, 9/01/17 (Pre-refunded to 9/01/02) 9/02 at 102 AAA 540,365
9,860 6.700%, 9/01/17 (Pre-refunded to 9/01/04) 9/04 at 100 AAA 10,404,272
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.6%
The Health and Educational Facilities Board of the City of
Johnson City, Tennessee, Hospital Revenue Refunding and
Improvement Bonds, Series 1998C (Johnson City Medical Center
Hospital):
2,740 5.125%, 7/01/25 (Pre-refunded to 7/01/23) 7/23 at 100 AAA 2,481,399
2,110 5.125%, 7/01/25 1/09 at 101 AAA 1,898,051
1,500 Memphis-Shelby County Airport Authority (Tennessee), Airport 3/10 at 101 AAA 1,509,960
Revenue Bonds, Series 1999D, 6.000%, 3/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 2.2%
1,000 Baytown Housing Finance Corporation, Single Family Mortgage 9/02 at 103 Aa2 1,109,760
Revenue Refunding Bonds, Series 1992-A, 8.500%, 9/01/11
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEXAS (continued)
$ 3,000 Brazos River Authority (Texas), Revenue Refunding Bonds No Opt. Call AAA $ 2,633,760
(Houston Lighting and Power Company Project), Series 1998,
5.050%, 11/01/18 (Alternative Minimum Tax)
1,635 Garland Independent School District (Dallas County, Texas), 2/07 at 100 AAA 1,370,408
School Building Unlimited Tax Bonds, Series 1997-A,
4.000%, 2/15/15
1,220 Hidalgo County Housing Finance Corporation (Florida), 4/04 at 102 Aaa 1,247,718
Single Family Mortgage Revenue Bonds (GNMA and FNMA
Collateralized), Series 1994A, 7.000%, 10/01/27
(Alternative Minimum Tax)
1,385 Houston Independent School District Public Facility Corporation No Opt. Call AAA 641,961
(Harris County, Texas), Lease Revenue Bonds (Cesar E. Chavez
High School), Series 1998A, 0.000%, 9/15/13
6,630 Houston Independent School District Public Facility Corporation No Opt. Call AAA 3,073,071
(Harris County, Texas), Lease Revenue Bonds (West Side
High School), Series 1998B, 0.000%, 9/15/13
1,000 Humble Independent School District (Harris County, Texas), 2/10 at 100 AAA 751,770
Unlimited Tax Schoolhouse Bonds, Series II 1997, 3.500%, 2/15/18
1,835 Port Arthur Housing Finance Corporation, Single Family Mortgage 9/02 at 103 A 2,019,711
Revenue Refunding Bonds, Series 1992, 8.700%, 3/01/12
7,490 State of Texas, Veterans Housing Assistance Bonds, Series 1993, 12/03 at 102 Aa1 7,731,103
General Obligation Bonds, 6.800%, 12/01/23
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.5%
6,000 Redevelopment Agency of Salt Lake County, Utah, Central 3/02 at 102 A 5,984,700
Business District Neighborhood Redevelopment, Junior Lien
Tax Increment Bonds, Series 1992A, 5.800%, 3/01/15
1,890 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102 AAA 1,912,756
1994 Issue B (Federally Insured or Guaranteed Mortgage Loans),
6.450%, 7/01/14
1,225 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101 1/2 AAA 1,218,704
1997 Series E2 Class I, 5.875%, 1/01/19
(Alternative Minimum Tax)
1,530 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101 1/2 AAA 1,465,615
1997 Series C, 5.600%, 7/01/18 (Alternative Minimum Tax)
3,000 Municipal Building Authority of Weber County, Utah, Lease 12/04 at 102 AAA 3,357,390
Revenue Bonds, Series 1994, 7.500%, 12/15/19
(Pre-refunded to 12/15/04)
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.7%
6,620 Vermont Housing Finance Agency, Single Family Housing 5/02 at 102 A+ 6,663,623
Bonds, Series 4, 6.400%, 11/01/25
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9%
7,000 The County Commission of Harrison County, West Virginia, 5/03 at 102 AAA 7,061,180
Solid Waste Disposal Revenue Bonds (The Potomac Edison
Company Harrison Station Project), Series B, 6.250%, 5/01/23
(Alternative Minimum Tax)
1,000 The County Commission of Pleasants County, West Virginia, 4/09 at 101 AAA 918,250
Pollution Control Revenue Bonds (West Penn Power Company,
Pleasants Station Project), 1999 Series E, 5.500%, 4/01/29
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.2%
7,740 Wisconsin Housing and Economic Development Authority, 1/05 at 102 AA 7,945,182
Home Ownership Revenue Bonds, 1995 Series B,
7.100%, 9/01/15 (Alternative Minimum Tax)
3,215 Wisconsin Health and Educational Facilities Authority, 2/07 at 102 AAA 3,106,300
Revenue Bonds, Series 1997 (Marshfield Clinic Project),
5.625%, 2/15/17
------------------------------------------------------------------------------------------------------------------------------------
$ 1,040,636 Total Investments - (cost $906,011,528) - 98.7% 925,222,778
============= --------------------------------------------------------------------------------------------------------------------
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS - 0.4%
$ 3,000 Port Authority of Cincinnati and Hamiltion County, Daily VMIG-1 $ 3,000,000
Adjustable Economic Development Revenue Bonds (Kenwood
Office Associates Project), Series 1985, Variable Rate
Demand Bonds, 6.100%, 9/01/25+
500 The City of New York, General Obligation Bonds, Fiscal VMIG-1 500,000
1995 Series B, Variable Rate Demand Bonds,
5.850%, 8/15/05+
------------------------------------------------------------------------------------------------------------------------------------
$ 3,500 Total Short-Term Investments - (cost $3,500,000) 3,500,000
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 8,546,598
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $937,269,376
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ALABAMA - 4.3%
$ 8,000 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 8,126,160
Revenue Refunding Bonds, Series 1994-D, 5.850%, 9/01/04
(Alternative Minimum Tax)
11,745 Alabama Special Care Facilities Financing Authority of Birmingham, 11/05 at 101 Aaa 10,352,865
Hospital Revenue Bonds (Daughters of Charity National
Health System - Providence Hospital and St. Vincent's
Hospital), Series 1995, 5.000%, 11/01/25
11,000 The DCH Health Care Authority, Health Care Facilities 12/02 at 102 A+ 9,965,120
Revenue Bonds, Series 1993-B, 5.750%, 6/01/23
11,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101 AAA 10,597,620
Improvement Warrants, Series 1999-A, 5.750%, 2/01/38
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1%
420 Arkansas Development Finance Authority, Single Family 8/01 at 103 AA 439,026
Mortgage Revenue Refunding Bonds, 1991 Series A (FHA-Insured
or VA Guaranteed Mortgage Loans), 8.000%, 8/15/11
325 City of Jacksonville, Arkansas, Residential Housing Facilities 7/03 at 103 Aaa 342,297
Board, Single Family Mortgage Revenue Refunding Bonds,
Series 1993A, 7.900%, 1/01/11
523 Residential Housing Facilities Board of Lonoke County, Arkansas, 4/05 at 103 Aaa 546,754
Single Family Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.8%
4,780 Foothill/Eastern Transportation Corridor Agency (California), No Opt. Call AAA 2,244,545
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14
Community Redevelopment Financing Authority of the City of Los
Angeles, California, Grand Central Square Multifamily Housing
Bonds, 1993 Series A:
500 5.750%, 12/01/13 (Alternative Minimum Tax) 6/03 at 102 BB 467,315
3,705 5.900%, 12/01/26 (Alternative Minimum Tax) 5/00 at 100 A 3,506,968
4,500 Los Angeles County Transportation Commission (California), 7/02 at 102 Aaa 4,789,350
Proposition C Sales Tax Revenue Bonds, Second Senior Bonds,
Series 1992-A, 6.750%, 7/01/19 (Pre-refunded to 7/01/02)
1,715 Housing Authority of the County of Merced (California), 1/04 at 102 Aaa 1,657,342
Multifamily Housing Refunding Revenue Bonds, Series 1993A
(Belmont Park Apartments Project), 5.875%, 1/01/19
2,500 Transmission Agency of Northern California, California-Oregon 5/02 at 102 AAA 2,614,375
Transmission Project, Revenue Bonds, 1992 Series A,
6.500%, 5/01/16
5,000 Airports Commission, City and County of San Francisco, California, 5/04 at 101 AAA 5,085,400
San Francisco International Airport, Second Series Revenue
Bonds, Issue 8, 6.300%, 5/01/25 (Alternative Minimum Tax)
3,545 Redevelopment Agency of the City of San Leandro, Plaza 1 6/03 at 102 A- 3,553,969
and Plaza 2 Redevelopment Projects, 1993 Tax Allocation
Bonds, Series A, 6.125%, 6/01/23
1,945 South Gate Public Financing Authority (Los Angeles County, No Opt. Call AAA 2,107,349
California), Water Revenue Refunding Bonds, 1996 Series A,
6.000%, 10/01/12
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.0%
4,000 Colorado Housing and Finance Authority, Single Family Program 10/09 at 105 Aa2 4,268,840
Bonds, 1999 Series C-3, Senior Bonds, 6.750%, 10/01/21
City and County of Denver, Colorado, Airport System Revenue
Bonds, Series 1991D:
6,000 7.500%, 11/15/02 (Alternative Minimum Tax) 11/01 at 102 A 6,298,080
3,040 7.750%, 11/15/13 (Alternative Minimum Tax) No Opt. Call A 3,508,494
865 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 Aaa 919,677
(Pre-refunded to 11/15/01)
3,280 7.750%, 11/15/21 (Alternative Minimum Tax) 11/01 at 102 A 3,452,987
210 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 Aaa 217,106
(Pre-refunded to 11/15/01)
790 7.000%, 11/15/25 (Alternative Minimum Tax) 11/01 at 100 A 793,966
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COLORADO (continued)
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1992C:
$ 1,100 6.750%, 11/15/22 (Alternative Minimum Tax) (Pre-refunded to 11/15/02) 11/02 at 102 Aaa $ 1,168,266
4,140 6.750%, 11/15/22 (Alternative Minimum Tax) 11/02 at 102 A 4,163,846
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1990A:
405 8.500%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Aaa 421,751
3,695 8.500%, 11/15/23 (Alternative Minimum Tax) 11/00 at 102 A 3,828,242
115 8.000%, 11/15/25 (Alternative Minimum Tax) (Pre-refunded to 11/15/00) 11/00 at 102 Aaa 119,472
1,190 8.000%, 11/15/25 (Alternative Minimum Tax) 11/00 at 102 A 1,229,746
City and County of Denver, Colorado, Airport System Revenue Bonds,
Series 1991A:
5,000 8.750%, 11/15/05 (Alternative Minimum Tax) 11/01 at 102 A 5,321,750
315 8.750%, 11/15/23 (Alternative Minimum Tax) (Pre-refunded to 11/15/01) 11/01 at 102 Aaa 339,435
885 8.750%, 11/15/23 (Alternative Minimum Tax) 11/01 at 102 A 942,808
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6%
3,000 Connecticut Housing Finance Authority, Housing Mortgage Finance 5/06 at 102 AA 3,068,310
Program Bonds, 1996 Series C-2, 6.250%, 11/15/18
2,400 Connecticut Development Authority, Water Facilities Revenue 12/03 at 102 AAA 2,517,816
Refunding Bonds (The Connecticut Water Company Project),
1993 Series, 6.650%, 12/15/20
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.1%
6,000 District of Columbia (Washington, D.C.), General Obligation No Opt. Call AAA 6,034,260
Refunding Bonds, Series 1993B, 5.500%, 6/01/10
3,240 District of Columbia, Hospital Revenue Refunding Bonds (Medlantic 8/02 at 102 A-*** 3,412,368
Healthcare Group, Inc. Issue), Series 1992B, 6.750%, 8/15/07
(Pre-refunded to 8/15/02)
4,250 District of Columbia, Hospital Revenue Refunding Bonds (Medlantic 8/06 at 102 AAA 4,314,558
Healthcare Group, Inc. Issue), Series 1993A, 5.750%, 8/15/14
District of Columbia (Washington, D.C.), General Obligation
Refunding Bonds, Series 1993A:
700 6.000%, 6/01/07 No Opt. Call AAA 734,300
8,800 6.000%, 6/01/07 No Opt. Call AAA 9,172,856
District of Columbia (Washington, D.C.), General Obligation Bonds,
Series 1993E:
185 6.000%, 6/01/09 (Pre-refunded to 6/01/03) 6/03 at 102 AAA 193,379
4,815 6.000%, 6/01/09 6/03 at 102 AAA 4,956,946
3,595 District of Columbia Housing Finance Agency, Collateralized 12/04 at 103 AAA 3,608,302
Single Family Mortgage Revenue Bonds, Series 1988F-1,
5.850%, 12/01/14 (Alternative Minimum Tax)
4,500 District of Columbia, University Revenue Refunding Bonds 10/02 at 102 AAA 4,775,985
(The Howard University Issue), Series 1992A, 6.750%, 10/01/12
(Pre-refunded to 10/01/02)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.9%
9,500 City of Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100 AAA 8,346,890
Series 1998, 5.000%, 10/01/28
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.1%
3,400 City of Atlanta (Georgia), Water and Wastewater Revenue Bonds, No Opt. Call AAA 3,303,848
Series 1999A, 5.500%, 11/01/22
1,880 Development Authority of Burke County, Georgia, Pollution No Opt. Call AAA 1,951,459
Control Revenue Bonds (Oglethorpe Power Corporation,
Vogtle Project), Series 1992, 7.500%, 1/01/03
2,880 Municipal Electric Authority of Georgia, General Power No Opt. Call A 3,504,902
Revenue Bonds, 1992B Series, 8.250%, 1/01/11
4,185 Municipal Electric Authority of Georgia, Power Revenue No Opt. Call AAA 4,945,373
Bonds, Series EE, 7.250%, 1/01/24
5,500 Municipal Electric Authority of Georgia, General Power No Opt. Call AAA 5,531,625
Revenue Bonds, 1993B Series, 5.700%, 1/01/19
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HAWAII - 0.7%
$ 1,500 State of Hawaii, Airports System Revenue Bonds, Series of 1990 7/00 at 102 AAA $ 1,535,865
(Payable Solely from the Receipts of the Aviation Fuel Tax and
the Revenues of the State of Hawaii Airports System),
7.300%, 7/01/20 (Alternative Minimum Tax)
City and County of Honolulu, Hawaii, General Obligation Bonds,
Refunding and Improvement Series 1993B:
1,580 5.000%, 10/01/13 No Opt. Call Aaa 1,526,722
3,420 5.000%, 10/01/13 No Opt. Call AA- 3,254,335
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.8%
4,000 Board of Education of the City of Chicago, General Obligation No Opt. Call AAA 4,288,600
Lease Certificates, 1992 Series A, 6.250%, 1/01/15
5,000 City of Chicago (Illinois), Sales Tax Revenue Bonds, 7/08 at 102 AAA 4,444,050
Series 1998, 5.250%, 1/01/28
City of Chicago (Illinois), Senior Lien Water Revenue Bonds,
Series 2000:
7,555 0.000%, 11/01/13 (WI) No Opt. Call AAA 3,494,490
7,550 0.000%, 11/01/14 (WI) No Opt. Call AAA 3,275,266
7,555 0.000%, 11/01/15 (WI) No Opt. Call AAA 3,061,664
7,555 0.000%, 11/01/16 (WI) No Opt. Call AAA 2,856,168
Cook County School District 99 (Cicero), General Obligation
School Bonds, Series 1997:
1,345 8.500%, 12/01/12 No Opt. Call Aaa 1,711,580
1,455 8.500%, 12/01/13 No Opt. Call Aaa 1,868,074
1,685 8.500%, 12/01/15 No Opt. Call Aaa 2,178,250
6,205 Illinois Development Finance Authority, Revenue Bonds 4/11 at 105 Aaa 6,866,577
(Greek American Nursing Home Project), Series 2000A,
7.600%, 4/20/40 (WI)
2,685 Illinois Development Finance Authority, Child Care Facility 9/02 at 102 N/R 2,703,258
Revenue Bonds, Series 1992 (Illinois Facilities Fund Project),
7.400%, 9/01/04
2,240 Illinois Educational Facilities Authority, Revenue Bonds, 7/00 at 100 AAA 2,449,731
Chicago College of Osteopathic Medicine, Series A,
8.750%, 7/01/05
10,360 Illinois Educational Facilities Authority, Revenue Refunding 7/01 at 102 A1*** 10,850,753
Bonds, Loyola University of Chicago, Series 1991-A ,
7.125%, 7/01/21 (Pre-refunded to 7/01/01)
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 10/03 at 102 A- 2,581,320
Series 1993 (Illinois Masonic Medical Center), 5.500%, 10/01/19
2,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1992 7/02 at 102 Baa2*** 2,115,720
(Trinity Medical Center), 7.000%, 7/01/12 (Pre-refunded to 7/01/02)
Illinois Health Facilities Authority, Revenue Refunding Bonds,
Series 1993C (Lutheran General Health System):
5,705 7.000%, 4/01/08 No Opt. Call A+ 6,170,072
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,494,358
8,190 Illinois Housing Development Authority, Multifamily Program Bonds, 9/04 at 102 A+ 8,514,570
Series 5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly Housing 11/02 at 102 A 3,467,220
Revenue Bonds (Skyline Towers Apartments), Series 1992B,
6.875%, 11/01/17
2,805 Illinois Housing Development Authority, Section 8 Elderly Housing 1/03 at 102 A*** 2,955,937
Revenue Bonds (Morningside North Development),
Series 1992D, 6.600%, 1/01/07 (Pre-refunded to 1/01/03)
5,000 Illinois Health Facilities Authority, Revenue Bonds, Series 1990 11/00 at 102 A3*** 5,173,250
(Riverside Senior Living Center Project), 7.500%, 11/01/20
(Pre-refunded to 11/01/00)
11,375 Illinois Health Facilities Authority, Refunding Revenue Bonds, 11/00 at 102 AAA 11,891,084
Series 1990-B (Hinsdale Hospital), 9.000%, 11/15/15
2,025 Long Creek Township, Macon County, Illinois, Waterworks 5/03 at 100 N/R 2,061,470
Refunding Revenue Bonds, Series 1993, 7.250%, 5/01/23
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,574,539
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 14,375 Village of Wheeling, Illinois, Multifamily Housing Revenue Bonds, 2/03 at 100 AAA $14,481,231
Series 1993A (FHA-Insured Mortgage Loan - Arlington Club
Project), 6.400%, 2/01/40
4,325 Town of Wood River, Wood River Township Hospital, Madison 2/04 at 102 N/R 4,170,771
County, Illinois, General Obligation Bonds (Alternate Revenue
Source), Series 1993, 6.625%, 2/01/14
4,120 Town of Wood River, Wood River Township Hospital, Madison 2/04 at 102 N/R 3,928,173
County, Illinois, General Obligation Tort Immunity Bonds,
Series 1993, 6.500%, 2/01/14
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INDIANA - 3.8%
2,250 Indiana Bond Bank, Special Program Bonds, Series 1992B, 2/03 at 102 A+ 2,360,453
6.750%, 8/01/12
3,200 Indiana Health Facility Financing Authority, Hospital Revenue 9/02 at 102 A 3,358,016
Refunding Bonds, Series 1992 (The Methodist Hospitals, Inc.),
6.750%, 9/15/09
2,100 City of Indianapolis, Indiana, Economic Development Revenue 7/03 at 103 N/R 1,873,851
Bonds, Series 1993A (The Meadows-Section 8 Assisted Project),
6.000%, 7/01/23 (Alternative Minimum Tax)
6,065 City of Indianapolis, Indiana, Multifamily Housing First Mortgage 5/09 at 102 A3 5,569,004
Revenue Bonds, Series 1999A (Keystone at Fall Creek
Apartments), 6.500%, 5/01/31 (Alternative Minimum Tax)
2,000 Hospital Authority of the City of Kokomo (Indiana), Hospital 8/03 at 102 N/R*** 2,069,020
Revenue Refunding Bonds, Series 1993 (Saint Joseph
Hospital and Health Center of Kokomo), 6.250%, 8/15/05
3,615 Mooresville Consolidated School Building Corporation (Morgan 1/04 at 101 N/R*** 3,774,530
County, Indiana), First Mortgage Bonds, Series 1994A,
6.200%, 7/15/15 (Pre-refunded to 1/15/04)
5,900 Muncie School Building Corporation, First Mortgage Bonds, 7/01 at 102 N/R*** 6,146,089
Series 1992, 6.625%, 7/15/14 (Pre-refunded to 7/15/01)
9,500 City of Petersburg, Indiana, Pollution Control Refunding Revenue 1/03 at 102 Aa2 9,620,080
Bonds, Series 1993A (Indianapolis Power and Light Company
Project), 6.100%, 1/01/16
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.5%
505 City of Davenport, Iowa, Home Ownership Mortgage Revenue 9/04 at 102 A1 517,367
Refunding Bonds, Series 1994, 7.900%, 3/01/10
3,810 Iowa Finance Authority, Hospital Revenue Bonds (Trinity 7/02 at 102 N/R*** 4,031,247
Regional Hospital Project), Series 1993, 7.000%, 7/01/12
(Pre-refunded to 7/01/02)
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.2%
1,000 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103 A2 1,036,750
Refunding Bonds, Series 1994, 7.100%, 5/01/12
Kansas Development Finance Authority, Multifamily Housing
Refunding Revenue Bonds (First Kansas State Partnership,
L.P. Project), Series 1998Y:
7,910 6.000%, 12/01/20 (Alternative Minimum Tax) 12/08 at 101 N/R 7,069,167
2,460 6.125%, 12/01/28 (Alternative Minimum Tax) 12/08 at 101 N/R 2,200,839
715 Labette County, Kansas, Single Family Mortgage Revenue 6/03 at 103 Aa2 736,657
Refunding Bonds, 1993 Series A, 8.400%, 12/01/11
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.6%
5,785 Kentucky Housing Corporation, Housing Revenue Bonds, 7/06 at 102 AAA 5,870,734
1996 Series A, 6.375%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.1%
3,360 Clover Dale Housing Corporation, 1995 Multifamily Mortgage 4/01 at 100 AA- 3,366,418
Revenue Refunding Bonds (Clover Dale Plaza - FHA-Insured
Mortgage, Section 8 Assisted Project), Series A, 6.550%, 2/01/22
6,325 Orleans Levee District (A Political Subdivision of the State 12/05 at 103 AAA 6,503,049
of Louisiana), Public Improvement Bonds, Series 1986,
5.950%, 11/01/14
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.8%
7,520 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A 7,498,117
Student Loan Revenue Bonds, Series 1994-2,
6.250%, 11/01/06 (Alternative Minimum Tax)
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MARYLAND - 1.5%
$ 4,630 Community Development Administration, Maryland Department 1/07 at 102 Aa2 $ 4,631,111
of Housing and Community Development, Housing Revenue
Bonds, Series 1996A, 5.875%, 7/01/16
2,000 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 Baa1 1,736,400
Project and Refunding Revenue Bonds, Doctors Community
Hospital Issue, Series 1993, 5.750%, 7/01/13
540 Maryland Transportation Authority, Special Obligation 7/04 at 102 AAA 541,652
Revenue Bonds, Baltimore/Washington International Airport
Projects, Series 1994-A (Qualified Airport Bonds),
6.400%, 7/01/19 (Alternative Minimum Tax)
6,800 Housing Opportunities Commission of Montgomery County 7/06 at 102 Aaa 6,942,188
(Montgomery County, Maryland), Multifamily Housing
Revenue Bonds, 1996 Series B, 6.400%, 7/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.3%
2,000 Massachusetts Health and Educational Facilities Authority, 7/03 at 102 Baa1*** 2,083,380
Revenue Bonds, Faulkner Hospital Issue, Series C,
6.000%, 7/01/13 (Pre-refunded to 7/01/03)
2,000 Massachusetts Housing Finance Agency, Housing Project 4/03 at 102 A+ 2,043,920
Revenue Bonds, 6.300%, 10/01/13
4,195 Massachusetts Health and Educational Facilities Authority, 2/04 at 102 Aa2 3,960,206
Revenue Refunding Bonds, Youville Hospital Issue
(FHA-Insured Project), Series B, 6.000%, 2/15/34
3,290 Massachusetts Industrial Finance Agency, Resource Recovery 7/01 at 103 N/R 3,490,065
Revenue Bonds, SEMASS Project, Series 1991B,
9.250%, 7/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.8%
5,000 City of Detroit, Michigan, Convention Facility Limited Tax 9/03 at 102 AAA 4,877,350
Revenue Refunding Bonds (Cobo Hall Expansion Project),
Series 1993, 5.250%, 9/30/12
10,225 City of Detroit, Michigan, Water Supply System Revenue Bonds 7/07 at 101 AAA 8,837,365
(Senior Lien), Series 1997-A, 5.000%, 7/01/27
2,545 City of Hancock Hospital Finance Authority, FHA-Insured Mortgage 8/08 at 100 AAA 2,400,266
Hospital Revenue Bonds (Portage Health System, Inc.),
Series 1998, 4.625%, 8/01/18
4,400 City of Hancock Hospital Finance Authority, FHA-Insured 8/08 at 100 AAA 3,923,656
Mortgage Hospital Revenue Bonds (Portage Health System,
Inc.), Series 1998, 5.450%, 8/01/47
1,000 City of Kalamazoo Hospital Finance Authority, Hospital Revenue 5/06 at 102 AAA 996,340
Refunding and Improvement Bonds (Bronson Methodist
Hospital), Series 1996, 5.750%, 5/15/16
2,000 Michigan State Hospital Finance Authority, Hospital Revenue No Opt. Call BBB- 1,929,740
and Refunding Bonds (The Detroit Medical Center
Obligated Group), Series 1993B, 5.000%, 8/15/03
3,200 Michigan State Hospital Finance Authority, Hospital Revenue 8/02 at 102 AAA 3,221,824
and Refunding Bonds, Series 1992 (Bon Secours Health
System Project), 6.100%, 8/15/22
10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 7,710,045
Bonds (The Detroit Medical Center Obligated Group),
Series 1998A, 5.250%, 8/15/23
3,750 Michigan Strategic Fund, Limited Obligation Refunding 6/03 at 102 AAA 3,833,850
Revenue Bonds (Consumers Power Company Project),
Collateralized Series 1993B, 5.800%, 6/15/10
6,000 County of Monroe, Michigan, Pollution Control Revenue Bonds 9/03 at 102 AAA 6,232,860
(The Detroit Edison Company Project), Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.3%
4,905 Minneapolis/St. Paul, Minnesota, Housing Finance Board, 11/07 at 102 AAA 4,628,701
Single Family Mortgage Revenue Bonds, FNMA/GNMA
Backed Program, Phase XI-AB, 5.800%, 11/01/30
(Alternative Minimum Tax)
4,000 Minneapolis Community Development Agency, Limited Tax 12/02 at 102 A- 4,217,360
Supported Development Revenue Bonds, Series 1992G-3,
7.375%, 12/01/12
2,720 City of Minnetonka, Minnesota, Multifamily Housing Revenue 6/04 at 102 AAA 2,794,990
Refunding Bonds, Series 1994A (GNMA Collateralized
Mortgage Loan - Brier Creek Project), 6.450%, 6/20/24
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MISSISSIPPI - 0.9%
$ 2,000 Mississippi Higher Education Assistance Corporation, Student 9/02 at 102 Aaa $ 2,026,960
Loan Revenue Bonds, Senior Series 1993-B,
5.800%, 9/01/06 (Alternative Minimum Tax)
985 Mississippi Housing Finance Corporation, Single Family 10/00 at 101 AAA 1,005,931
Mortgage Purchase Revenue Bonds, Series 1989
(GNMA Mortgage-Backed Securities Program),
8.250%, 10/15/18 (Alternative Minimum Tax)
1,630 Mississippi Home Corporation, Single Family Mortgage 4/05 at 102 Aaa 1,647,930
Revenue Bonds, Series 1995B, 6.550%, 4/01/21
(Alternative Minimum Tax)
1,695 Mississippi Regional Housing Authority No. V, Multifamily 7/00 at 105 AAA 1,737,443
Housing Revenue Refunding Bonds, Series 1993A (FHA-Insured
Mortgage Loan - Deville Apartments, Section 8 Assisted Project),
7.050%, 7/01/21
1,735 Mississippi Educational Facilities Authority, For Private, 6/03 at 102 N/R 1,650,887
Nonprofit Institutions of Higher Learning, Educational Facilities
Revenue Bonds (Tougaloo College Project), Series 1993A,
6.500%, 6/01/18
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.6%
10,000 Energy America (Nebraska), Natural Gas Revenue Note No Opt. Call N/R 9,563,400
(Metropolitan Utility District Project), Series 1997B,
5.700%, 7/01/08
9,000 Nebraska Higher Education Loan Program Inc., Senior Subordinate No Opt. Call AAA 9,210,690
Bonds, Series A-5A, 6.250%, 6/01/18 (Alternative Minimum Tax)
5,075 Airport Authority of the City of Omaha (Nebraska), Airport 1/02 at 102 A1 5,414,771
Facilities Revenue Refunding Bonds, Series 1991, 8.375%, 1/01/14
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.7%
4,500 Clark County School District, Nevada, General Obligation - No Opt. Call AAA 5,067,315
Limited Tax School Improvement Bonds (Current Coupon Bonds),
Series 1991A, 7.000%, 6/01/10
1,725 Nevada Housing Division, Single Family Program Senior Bonds, 4/04 at 102 A1 1,729,968
1993 Issue B, 6.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.4%
1,870 New Hampshire Housing Finance Authority, Single Family 7/00 at 102 Aa3 1,910,055
Residential Mortgage Bonds, 1990 Series A, 7.950%, 7/01/22
(Alternative Minimum Tax)
1,545 New Hampshire Housing Finance Authority, Single Family 1/07 at 102 Aa3 1,573,227
Mortgage Acquisition Revenue Bonds, 1996 Series C,
6.200%, 7/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.2%
2,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call AAA 2,202,320
Series 1991C, 6.500%, 1/01/16
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.2%
280 New Mexico Educational Assistance Foundation, 12/02 at 101 A 285,611
Student Loan Revenue Bonds, Subordinate 1992 Series One B,
6.850%, 12/01/05 (Alternative Minimum Tax)
1,780 New Mexico Mortgage Finance Authority, Single Family 7/02 at 102 AAA 1,815,191
Mortgage Purchase Refunding Senior Bonds, 1992 Series A2,
6.900%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.9%
30,050 Atlas Community Housing Opportunity Trust, Series 1999-1, 6/09 at 100 N/R 28,018,620
Class A Certificates, 6.750%, 6/01/34
10,000 Erie County (New York), Industrial Development Agency, 12/10 at 103 N/R 10,916,700
Solid Waste Disposal Facility Revenue Bonds (1998 CanFibre of
Lackawanna Project), 9.050%, 12/01/25 (Alternative Minimum Tax)
14,000 Long Island Power Authority (New York), Electric System General 6/03 at 101 A- 12,792,500
Revenue Bonds, Series 1998A, 5.500%, 12/01/29
1,000 The City of New York, General Obligation Bonds, Fiscal No Opt. Call A- 1,068,450
1995 Series A, 7.000%, 8/01/04
3,500 The City of New York, General Obligation Bonds, Fiscal No Opt. Call A- 3,672,340
1996 Series B, 6.750%, 8/15/03
14,310 The City of New York, General Obligation Bonds, Fiscal No Opt. Call A- 15,056,123
1996 Series F, 6.500%, 2/01/05
The City of New York, General Obligation Bonds, Fiscal
1991 Series D:
4,315 9.500%, 8/01/02 (Pre-refunded to 8/01/01) 8/01 at 101 1/2 Aaa 4,632,196
85 9.500%, 8/01/02 8/01 at 101 1/2 A- 90,736
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW YORK (continued)
$ 16,915 New York City Transitional Finance Authority, Future Tax Secured 5/08 at 101 AA $14,572,611
Bonds, Fiscal 1998 Series C, 5.000%, 5/01/26
New York City Transitional Finance Authority, Future Tax Secured
Bonds, Fiscal 2000 Series C:
3,850 5.875%, 11/01/16 (WI) 5/10 at 101 AA 3,929,811
5,000 5.500%, 11/01/24 (WI) 5/10 at 101 AA 4,764,250
5,000 Dormitory Authority of the State of New York, The New York No Opt. Call AAA 5,035,000
and Presbyterian Hospital, FHA-Insured Mortgage Hospital
Revenue Bonds, Series 1998, 5.500%, 8/01/11
10,110 New York State Medical Care Facilities Finance Agency, Hospital 8/02 at 102 AAA 10,192,498
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series B, 6.200%, 8/15/22
4,200 New York State Medical Care Facilities Finance Agency, 2/05 at 102 AA 4,210,374
FHA-Insured Mortgage Project Revenue Bonds, 1995 Series B,
6.150%, 2/15/35
4,875 New York State Medical Care Facilities Finance Agency, Hospital 2/04 at 102 AA*** 5,054,595
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1994 Series A, 6.200%, 2/15/21 (Pre-refunded to 2/15/04)
3,365 New York State Medical Care Facilities Finance Agency, Hospital 2/04 at 102 AA 3,399,289
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1994 Series A, 6.200%, 2/15/21
7,500 New York State Thruway Authority, General Revenue Bonds, 1/05 at 102 AAA 7,913,175
Series C, 6.000%, 1/01/15 (Pre-refunded to 1/01/05)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.2%
2,000 North Carolina Municipal Power Agency Number 1, Catawba No Opt. Call AAA 2,102,020
Electric Revenue Bonds, Series 1992, 6.000%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.9%
7,925 Mercer County, North Dakota, Pollution Control Revenue 7/00 at 102 1/2 A 8,128,990
Bonds (Basin Electric Power Cooperative -Antelope Valley
Station), 1984 Series B, 7.000%, 1/01/19
545 City of Minot, North Dakota, Single Family Mortgage Revenue 8/03 at 102 Aa 564,304
Refunding Bonds, Series 1993, 7.700%, 8/01/10
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.9%
4,500 Akron, Bath and Copley Joint Township Hospital District, 11/02 at 102 Baa1 4,501,575
Ohio, Hospital Facilities Revenue Bonds, Series 1992 (Summa
Health System Project), 6.250%, 11/15/07
1,000 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue 1/05 at 103 Aa 906,280
Bonds, Series 1994A (FHA-Insured Mortgage Loan, Hamilton
Creek Apartments Project), 5.550%, 7/01/24
(Alternative Minimum Tax)
3,595 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102 Aaa 3,666,541
Bonds (GNMA Mortgage-Backed Securities Programs),
1995 Series A-1, 6.300%, 9/01/17
4,215 The Student Loan Funding Corporation, Cincinnati, Ohio, No Opt. Call A1 4,201,470
Student Loan Revenue Bonds, Series 1986A, 5.500%, 12/01/01
(Alternative Minimum Tax)
4,370 City of Toledo, Ohio, General Obligation (Limited Tax), Various 12/04 at 102 AAA 4,506,126
Purpose Improvement Bonds, Series 1994, 5.750%, 12/01/09
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.4%
Oklahoma County Finance Authority, Multifamily Housing First
Mortgage Revenue Bonds, Series 1998A (Multiple Apartments
Project):
3,495 7.000%, 4/01/18 4/06 at 102 N/R 3,116,317
7,000 7.125%, 4/01/28 4/06 at 102 N/R 6,137,810
10,000 Tulsa County Industrial Authority (Oklahoma), First Mortgage 3/11 at 101 N/R 8,847,200
Multifamily Housing Revenue Bonds, Series 1999 (Stoneridge
Apartments Project), 6.125%, 3/01/39 (Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Hospital Revenue and Refunding Bonds No Opt. Call AAA 3,649,952
(Hillcrest Medical Center Project), Series 1996, 6.500%, 6/01/09
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PUERTO RICO - 2.0%
$ 12,390 Commonwealth of Puerto Rico, Public Improvement Bonds No Opt. Call AAA $13,879,774
of 1997 (General Obligation Bonds), 6.500%, 7/01/13
5,000 Commonwealth of Puerto Rico, Public Improvement Refunding 7/08 at 101 AAA 4,059,200
Bonds, Series 1998 (General Obligation Bonds), 4.500%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.6%
Piedmont Municipal Power Agency, Electric Revenue Refunding
Bonds, Series 1991:
5,000 6.250%, 1/01/21 No Opt. Call AAA 5,271,550
5,750 4.000%, 1/01/23 1/01 at 100 AAA 4,245,628
5,085 Piedmont Municipal Power Agency, Electric Revenue Bonds, No Opt. Call AAA 5,100,713
1998A Refunding Series, 5.500%, 1/01/13
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7%
5,000 The Metropolitan Government of Nashville and Davidson County 5/08 at 102 AA 4,510,750
(Tennessee), Electric System Revenue Bonds, 1998 Series A,
5.200%, 5/15/23
2,200 Tennessee Housing Development Agency, Mortgage Finance 7/04 at 102 AA 2,249,500
Program Bonds, 1994 Series A, 6.900%, 7/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.7%
1,000 Alliance Airport Authority, Inc., Special Facilities Revenue Bonds, 12/00 at 102 Baa1 1,019,600
Series 1990 (American Airlines, Inc. Project), 7.500%, 12/01/29
(Alternative Minimum Tax)
9,950 Alliance Airport Authority, Inc. (Texas), Special Facilities Revenue No Opt. Call Baa1 10,745,901
Bonds, Series 1991 (American Airlines, Inc. Project),
7.000%, 12/01/11 (Alternative Minimum Tax)
3,345 Columbia-Brazoria Independent School District (Brazoria County, 2/09 at 100 AAA 2,769,794
Texas), Unlimited Tax School Building Bonds, Series 1999,
4.750%, 2/01/25
6,000 Dallas-Fort Worth International Airport Facility Improvement 11/00 at 102 Baa1 6,120,120
Corporation, American Airlines, Inc., Revenue Bonds,
Series 1990, 7.500%, 11/01/25 (Alternative Minimum Tax)
16,960 Harris County Housing Finance Corporation (Texas), Multifamily 12/10 at 105 N/R 16,938,970
Housing Bonds (Coolwood Oaks and Haverstock Hill
Apartments), Series A, 8.250%, 12/01/31
2,500 City of Houston, Texas, Airport System Subordinate Lien 7/01 at 102 AAA 2,594,225
Revenue Bonds, Series 1991A, 6.750%, 7/01/21
(Alternative Minimum Tax)
5,000 City of Houston, Texas, Water and Sewer System, Junior 12/07 at 102 AAA 4,323,650
Lien Revenue Refunding Bonds, Series 1997D, 5.000%, 12/01/25
5,000 Lower Neches Valley Authority Industrial Development 3/08 at 101 AAA 4,542,700
Corporation (Texas), Refunding Revenue Bonds, Series 1998
(Mobil Oil Refining Corporation Project), 5.550%, 3/01/33
1,012 The Midland Housing Finance Corporation (Midland, Texas), 11/05 at 103 Aaa 1,101,799
Single Family Mortgage Revenue Refunding Bonds,
Series 1992A, 8.450%, 12/01/11
2,215 North Texas Higher Education Authority Inc., Student Loan 4/03 at 102 A 2,259,366
Revenue Bonds, Series 1993D, 6.300%, 4/01/09
(Alternative Minimum Tax)
3,410 Retama Development Corporation, Special Facilities Revenue No Opt. Call AAA 4,473,579
Bonds (Retama Park Racetrack Project), Series 1993,
8.750%, 12/15/12
4,619 General Services Commission (An Agency of the State of Texas), 9/01 at 101 A 4,803,678
as Lessee, Participation Interests, 7.500%, 9/01/22
8,500 Travis County Health Facilities Development Corporation, 11/03 at 102 Aaa 8,561,200
Hospital Revenue Bonds (Daughters of Charity National
Health System - Daughters of Charity Health Services of Austin),
Series 1993B, 6.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.0%
4,845 City of Bountiful, Davis County, Utah Hospital Revenue 12/08 at 101 N/R 3,994,460
Refunding Bonds (South Davis Community Hospital
Project), Series 1998, 5.750%, 12/15/18
8,000 Intermountain Power Agency (Utah), Power Supply Revenue 7/06 at 102 A+ 8,232,400
Bonds, Series 1996A, 6.150%, 7/01/14
6,000 Intermountain Power Agency (Utah), Power Supply Revenue 7/07 at 102 AAA 5,934,240
Refunding Bonds, 1997 Series B, 5.750%, 7/01/19
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VIRGINIA - 1.1%
$ 2,645 Suffolk Redevelopment and Housing Authority, Multifamily 7/02 at 104 Baa2 $ 2,767,887
Housing Revenue Refunding Bonds, Series 1994 (Chase
Heritage at Dulles Project), 7.000%, 7/01/24
9,405 Upper Occoquan Sewage Authority (Virginia), Regional 7/06 at 100 AAA 7,710,877
Sewerage System Revenue Bonds, Series of 1995A,
4.750%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.5%
1,050 City of Bellevue, King County, Washington, Water and Sewer 7/04 at 100 Aa2 1,074,224
Revenue Refunding Bonds, Series 1994, 5.875%, 7/01/09
1,035 Covington Water District, King County Washington, Water 3/05 at 100 AAA 1,044,170
Improvement and Refunding Revenue Bonds, Series 1995,
6.050%, 3/01/20
1,655 City of Everett, Washington, Limited Tax General Obligation 9/07 at 100 Aaa 1,529,634
Bonds, 1997, 5.125%, 9/01/17
1,000 Federal Way School District No. 210, King County, Washington, No Opt. Call AAA 1,037,650
Unlimited Tax General Obligation and Refunding Bonds,
5.750%, 12/01/12
800 Kitsap County, Washington, Sewer Revenue Bonds, Series 1996, 7/06 at 100 AAA 803,016
5.750%, 7/01/16
1,000 Port of Seattle, Washington, Revenue Bonds, Series 1990A, 12/00 at 100 AA-*** 1,009,520
6.000%, 12/01/14 (Pre-refunded to 12/01/00)
1,000 Port of Vancouver, Clark County, Washington, Limited Tax General No Opt. Call AAA 1,039,480
Obligation Bonds, 1994 Series B, 6.000%, 12/01/04
(Alternative Minimum Tax)
900 City of Richland, Washington, Water and Sewer Improvement 4/03 at 101 AAA 924,237
Revenue Bonds, Series 1993, 5.625%, 4/01/12
(Pre-refunded to 4/01/03)
1,000 Seattle Indian Services Commission, Special Obligation Bonds, 11/04 at 100 AA+ 1,013,550
Series 1994, 6.000%, 11/01/16
1,000 The City of Seattle, Washington, Municipal Light and Power 10/06 at 102 AAA 968,520
Revenue Bonds, 5.625%, 10/01/21
500 The City of Seattle, Washington, Municipal Light and Power 8/02 at 102 AA 505,680
Revenue Bonds, Series 1992A, 5.750%, 8/01/12
1,640 Housing Authority of Skagit County, Low-Income Housing 11/04 at 104 AAA 1,719,983
Assistance Revenue Bonds, Series 1993 (GNMA Collateralized
Mortgage Loan - Sea Mar Project), 7.000%, 6/20/35
1,385 Public Utility District No. 1 of Snohomish County, Washington, 1/04 at 102 A+ 1,392,521
Generation System Revenue Bonds, Series 1993B,
5.750%, 1/01/09 (Alternative Minimum Tax)
1,500 Mukilteo School District No. 6 of Snohomish County, Washington, No Opt. Call AAA 1,551,885
Unlimited Tax General Obligation and Refunding Bonds,
Series 1993, 5.700%, 12/01/12
500 Edmonds School District No. 15 of Snohomish County, No Opt. Call AA- 542,565
Washington, Unlimited Tax General Obligation Bonds,
Series 1994, 6.500%, 12/01/08
980 Central Valley School District No.356, Spokane County, No Opt. Call AAA 392,833
Washington, Unlimited Tax Deferred Interest General
Obligation Bonds, Series 1998B, 0.000%, 12/01/15
1,675 Spokane Downtown Foundation, Parking Revenue Bonds, 8/08 at 102 N/R 1,287,254
Series 1998 (River Park Square Project), 5.600%, 8/01/19
4,705 City of Tacoma, Washington, Sewer Revenue Refunding Bonds, No Opt. Call AAA 5,566,956
1994 Series B, 8.000%, 12/01/08
1,000 University of Washington, Housing and Dining System Revenue 12/06 at 102 AAA 937,730
Refunding Bonds, Junior Lien Series 1996, 5.125%, 12/01/15
2,000 State of Washington, General Obligation Bonds, Series 1994B 5/04 at 100 AA+ 2,015,180
6.000%, 5/01/19
1,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/04 at 102 AA-*** 1,043,720
Series 1993A (The Heart Institute of Spokane),
5.800%, 8/15/18 (Pre-refunded to 8/15/04)
1,250 Washington Health Care Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 1,316,500
Refunding Series 1992 (Franciscan Health System/ Saint
Clare Hospital, Tacoma), 6.625%, 7/01/20
(Pre-refunded to 7/01/02)
2,000 Washington Health Care Facilities Authority, Revenue Bonds, 10/02 at 102 AAA 2,091,560
Series 1992 (The Children's Hospital and Medical Center,
Seattle), 6.125%, 10/01/13
<PAGE>
PORTFOLIO OF INVESTMENTS (Unaudited)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT) (continued)
April 30, 2000
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WASHINGTON (continued)
$ 1,400 Washington Health Care Facilities Authority, Revenue Bonds, 11/02 at 102 AAA $ 1,471,554
Series 1992 (Swedish Hospital Medical Center, Seattle),
6.300%, 11/15/22 (Pre-refunded to 11/15/02)
950 Washington State Housing Finance Commission, Multifamily 7/00 at 102 AAA 969,903
Mortgage Revenue Bonds (GNMA Mortgage-Backed
Securities Program), Series 1989A, 7.700%, 7/01/32
(Alternative Minimum Tax)
2,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/08 at 102 AA 1,679,740
Series 1998 (Highline Community Hospital), 5.000%, 8/15/21
1,000 Washington Health Care Facilities Authority, Revenue Bonds, 8/13 at 102 AAA 832,320
Series 1998 (Harrison Memorial Hospital), 5.000%, 8/15/28
470 Washington State Housing Finance Commission, 6/07 at 102 Aaa 464,163
Single Family Program Bonds, 1997 Series 2A, 6.050%,12/01/16
Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1993A:
4,500 5.750%, 7/01/13 7/03 at 102 Aa1 4,516,560
1,000 5.700%, 7/01/17 7/03 at 102 AAA 986,450
23,000 Washington Public Power Supply System (Bonneville), 7/03 at 102 Aa1 21,809,290
Nuclear Project No. 1 Refunding Revenue Bonds,
Series 1993C, 5.375%, 7/01/15
5,710 Washington Public Power Supply System, Nuclear 7/02 at 102 Aaa 5,976,143
Project No. 2 Refunding Revenue Bonds, Series 1992A,
6.250%, 7/01/12 (Pre-refunded to 7/01/02)
1,540 Washington Public Power Supply System, Nuclear 7/02 at 102 Aa1 1,585,599
Project No. 2 Refunding Revenue Bonds, Series 1992A,
6.250%, 7/01/12
6,475 Washington Public Power Supply System, Nuclear No Opt. Call Aa1 7,112,982
Project No. 2 Refunding Revenue Bonds, Series 1990-A,
7.250%, 7/01/06
11,000 Washington Public Power Supply System, Nuclear No Opt. Call Aa1 12,196,140
Project No. 3 Refunding Revenue Bonds, Series 1993B,
7.000%, 7/01/09
3,700 Washington Public Power Supply System, Nuclear Project 7/08 at 102 Aa1 3,312,313
No. 3 Refunding Revenue Bonds, Series 1998A,
5.125%, 7/01/18
1,400 Washington State University, Housing and Dining System 10/04 at 101 AAA 1,465,193
Revenue and Refunding Bonds, Series 1994,
6.375%, 10/01/18
65 Western Washington University, Housing and Dining System 10/02 at 101 AAA 66,060
Revenue Bonds, Series 1992, 6.375%, 10/01/22
1,000 Yakima-Tieton Irrigation District, Yakima County, Washington, 6/03 at 102 AAA 1,031,620
Refunding Revenue Bonds, 1992, 6.125%, 6/01/13
------------------------------------------------------------------------------------------------------------------------------------
$ 952,424 Total Investments - (cost $934,475,326) - 101.2% 927,329,364
============= --------------------------------------------------------------------------------------------------------------------
<PAGE>
<CAPTION>
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS - 2.6%
$ 3,000 Residential Care Facility for the Elderly Authority of Fulton A-1+ $ 3,000,000
County (Georgia), Variable Rate Demand Refunding Revenue
Bonds (Lenbrook Square Foundation, Inc. Project), Series 1996,
6.000%, 1/01/18+
5,000 Grand Forks Health Care Facilities, Revenue Series 1992B VMIG-1 5,000,000
(The United Hospital Obligated Group), Variable Rate
Demand Bonds, 6.000%, 12/01/16+
6,100 Joliet Regional Port District Marine Terminal Revenue Refunding A-1+ 6,100,000
Bonds (Exxon Project), Series 1989, Variable Rate
Demand Bonds, 5.850%, 10/01/24+
4,720 Sabine River Authority of Texas Collateralized Pollution A-1+ 4,720,000
Control, Variable Rate Demand Bonds(Texas Utilities
Electric Company), 5.950%, 4/01/30 (Alternative Minimum Tax)+
5,000 City of Valdez, Alaska, Marine Terminal Revenue Refunding VMIG-1 5,000,000
Bonds (Exxon Pipeline Company Project), 1993 Series C,
Variable Rate Demand Bonds, 5.850%, 12/01/33+
------------------------------------------------------------------------------------------------------------------------------------
$ 23,820 Total Short-Term Investments - (cost $23,820,000) 23,820,000
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (3.8%) (34,611,727)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $916,537,637
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS (Unaudited)
April 30, 2000
<CAPTION>
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value $1,377,746,894 $925,222,778 $927,329,364
Temporary investments in short-term municipal securities, at
amortized cost, which approximates market value -- 3,500,000 23,820,000
Cash -- 1,796,484 --
Receivables:
Interest 26,423,909 17,238,882 18,574,031
Investments sold 9,735,693 297,457 105,000
Other assets 189,514 90,679 26,110
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,414,096,010 948,146,280 969,854,505
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 11,428,385 -- 20,828,168
Payable for investments purchased 9,024,389 6,681,300 28,470,148
Accrued expenses:
Management fees 709,097 482,461 480,604
Other 127,138 245,812 319,732
Preferred share dividends payable 336,412 220,947 216,657
Common share dividends payable 4,273,614 3,246,384 3,001,559
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 25,899,035 10,876,904 53,316,868
------------------------------------------------------------------------------------------------------------------------------------
Net assets $1,388,196,975 $937,269,376 $916,537,637
====================================================================================================================================
Preferred shares, at liquidation value $ 525,000,000 $347,000,000 $338,400,000
====================================================================================================================================
Preferred shares outstanding 21,000 13,880 13,536
====================================================================================================================================
Common shares outstanding 63,785,430 41,093,661 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding (net assets
less Preferred shares at liquidation value,
divided by Common shares outstanding) $ 13.53 $ 14.36 $ 13.37
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS (Unaudited)
Six Months Ended April 30, 2000
<CAPTION>
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME $40,610,332 $28,449,815 $27,480,564
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,240,295 2,915,871 2,849,531
Preferred shares - auction fees 654,452 412,924 421,841
Preferred shares - dividend disbursing agent fees 25,629 29,917 42,412
Shareholders' servicing agent fees and expenses 84,614 29,411 37,169
Custodian's fees and expenses 106,721 70,947 88,810
Directors' fees and expenses 16,218 11,057 11,674
Professional fees 162,550 16,208 27,345
Shareholders' reports - printing and mailing expenses 105,818 20,903 18,173
Stock exchange listing fees 26,128 18,465 23,478
Investor relations expense 66,289 42,077 40,605
Other expenses 116,021 45,738 42,389
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 5,604,735 3,613,518 3,603,427
Custodian fee credit (39,841) (42,684) (29,655)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,564,894 3,570,834 3,573,772
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 35,045,438 24,878,981 23,906,792
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions (4,166,054) (481,184) (968,058)
Change in net unrealized appreciation
(depreciation) of investments 10,250,667 (7,438,838) (3,647,869)
-----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 6,084,613 (7,920,022) (4,615,927)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $41,130,051 $16,958,959 $19,290,865
====================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS (Unaudited)
<CAPTION>
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
--------------------------------- ---------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99 4/30/00 10/31/99 4/30/00 10/31/99
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 35,045,438 $ 69,490,071 $ 24,878,981 $ 48,699,868 $ 23,906,792 $ 44,979,576
Net realized gain (loss)
from investment transactions (4,166,054) (3,286,652) (481,184) 660,037 (968,058) 1,550,458
Change in net unrealized
appreciation (depreciation)
of investments 10,250,667 (130,843,202) (7,438,838) (61,112,453) (3,647,869) (66,400,219)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
from operations 41,130,051 (64,639,783) 16,958,959 (11,752,548) 19,290,865 (19,870,185)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net
investment income:
Common shareholders (26,279,603) (54,345,201) (19,511,028) (38,507,522) (18,029,709) (34,088,309)
Preferred shareholders (10,144,332) (15,095,799) (6,740,411) (9,888,106) (6,664,248) (9,968,342)
From accumulated net realized gains
from investment transactions:
Common shareholders -- (4,324,653) (715,277) (1,832,537) -- --
Preferred shareholders -- (1,245,222) (203,920) (465,930) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (36,423,935) (75,010,875) (27,170,636) (50,694,095) (24,693,957) (44,056,651)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued
in acquisition of NPW -- -- -- -- -- 32,550,416
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- -- 3,673,867 -- 559,088
Preferred shares:
Net proceeds from sale of shares -- 49,386,100 -- 46,413,934 -- 12,754,386
Net proceeds from shares issued in
acquisition of NPW -- -- -- -- -- 17,000,000
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
capital share transactions -- 49,386,100 -- 50,087,801 -- 62,863,890
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets 4,706,116 (90,264,558) (10,211,677) (12,358,842) (5,403,092) (1,062,946)
Net assets at the
beginning of period 1,383,490,859 1,473,755,417 947,481,053 959,839,895 921,940,729 923,003,675
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the
end of period $1,388,196,975 $1,383,490,859 $937,269,376 $947,481,053 $916,537,637 $921,940,729
===================================================================================================================================
Balance of undistributed
net investment
income at the end of period $ 150,193 $ 1,528,690 $ 1,042,274 $ 2,414,732 $ 1,364,395 $ 2,151,560
===================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National Funds (the "Funds") covered in this report and their corresponding
New York Stock Exchange symbols are Nuveen Premium Income Municipal Fund, Inc.
(NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen Premium
Income Municipal Fund 4, Inc. (NPT).
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities. The Funds are registered under
the Investment Company Act of 1940 as closed-end, diversified management
investment companies.
On September 9, 1999, NPT acquired all of the net assets of Nuveen Washington
Premium Income Municipal Fund (NPW) pursuant to a plan of reorganization
approved by the common shareholders of NPW and the preferred shareholders of NPT
and NPW on August 17, 1999. The acquisition was accomplished by a tax-free
exchange of 2,351,909 common shares of NPT for the 2,320,051 common shares of
NPW outstanding on September 9, 1999. NPW's net assets at that date of
$49,550,416 included $1,045,588 of net unrealized appreciation and $17,000,000
of preferred shares at liquidation value which were combined with that of NPT.
The combined net assets of NPT immediately after the acquisition were
$936,836,305.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
April 30, 2000, Premium Income, Premium Income 2 and Premium Income 4 had
outstanding when-issued and delayed delivery purchase commitments of $9,024,389,
$6,681,300 and $28,470,148 respectively.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount realized from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.01 per Common share. Furthermore, each Fund
intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal income tax, to retain such
tax-exempt status when distributed to shareholders of the Funds. Net realized
capital gain and market discount distributions are subject to federal taxation.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. Net realized capital gains and/or market discount
from investment transactions, if any, are distributed to shareholders not less
frequently than annually. Furthermore, capital gains are distributed only to the
extent they exceed available capital loss carryforwards.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may occur and will be classified as either distributions in excess
of net investment income, distributions in excess of net realized gains and/or
distributions in excess of net ordinary taxable income from investment
transactions, where applicable.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set by the auction agent.
The number of shares outstanding, by Series and in total, for each of the Funds
is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
--------------------------------------------------------------------------------
Number of shares:
Series M 3,800 2,000 2,200
Series M2 2,000 -- --
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series W2 -- -- 520
Series Th 3,800 3,000 2,680
Series F 3,800 2,000 1,800
Series F2 -- 1,880 1,328
--------------------------------------------------------------------------------
Total 21,000 13,880 13,536
================================================================================
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics. Although the Funds are authorized to
invest in such financial instruments, and may do so in the future, they did not
make any such investments during the six months ended April 30, 2000.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby the custodian fees
and expenses are reduced by credits earned on each Fund's cash on deposit with
the bank. Such deposit arrangements are an alternative to overnight investments.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results may differ
from those estimates.
<PAGE>
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
<TABLE>
<CAPTION>
PREMIUM INCOME PREMIUM INCOME 2
----------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99 4/30/00 10/31/99
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common shares:
Shares issued to shareholders due to
reinvestment of distributions -- -- -- 225,414
-------------------------------------------------------------------------------------------------------------------
-- -- -- 225,414
===================================================================================================================
Preferred shares sold -- 2,000 -- 1,880
===================================================================================================================
<CAPTION>
PREMIUM INCOME 4
------------------------------
SIX MONTHS ENDED YEAR ENDED
4/30/00 10/31/99
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common shares:
Shares issued in acquisition of NPW -- 2,351,909
Shares issued to shareholders due to
reinvestment of distributions -- 37,115
-------------------------------------------------------------------------------------------------------------------
-- 2,389,024
===================================================================================================================
Preferred shares sold -- 520
===================================================================================================================
</TABLE>
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2000, to shareholders of record on
May 15, 2000, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
--------------------------------------------------------------------------------
Dividend per share $.0670 $.0790 $.0695
================================================================================
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the six months ended April
30, 2000, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
--------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $88,212,467 $40,055,196 $65,341,065
Short-term municipal securities 47,400,000 19,500,000 51,120,000
Sales and maturities:
Long-term municipal securities 83,485,044 28,554,170 25,354,950
Short-term municipal securities 47,400,000 25,000,000 43,800,000
================================================================================
At April 30, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
--------------------------------------------------------------------------------
$1,409,339,307 $909,882,803 $958,300,604
================================================================================
At October 31, 1999, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
PREMIUM PREMIUM
INCOME INCOME 4
--------------------------------------------------------------------------------
Expiration year:
2002 $ -- $ 6,769,037
2003 -- 5,281,759
2004 -- --
2005 -- --
2006 -- --
2007 3,163,437 --
--------------------------------------------------------------------------------
Total $3,163,437 $12,050,796
================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at April 30, 2000, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
--------------------------------------------------------------------------------
Gross unrealized:
appreciation $17,350,533 $ 35,652,389 $ 19,021,458
depreciation (48,942,946) (16,812,414) (26,172,698)
--------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) $(31,592,413) $ 18,839,975 $ (7,151,240)
================================================================================
<PAGE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5875 of 1
================================================================================
The fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
7. COMPOSITION OF NET ASSETS
At April 30, 2000, net assets consisted of:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
-------------------------------------------------------------------------------
Preferred shares, $25,000 stated value
per share, at liquidation value $ 525,000,000 $347,000,000 $338,400,000
Common shares, $.01 par value per share 637,854 410,937 432,367
Paid-in surplus 901,322,367 570,717,420 596,506,475
Balance of undistributed
net investment income 150,193 1,042,274 1,364,395
Accumulated net realized gain (loss)
from investment transactions (7,322,962) (1,112,505) (13,019,638)
Net unrealized appreciation
(depreciation) of investments (31,590,477) 19,211,250 (7,145,962)
-------------------------------------------------------------------------------
Net assets $1,388,196,975 $937,269,376 $916,537,637
===============================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
===============================================================================
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
8. INVESTMENT COMPOSITION
At April 30, 2000, the revenue sources by municipal purpose, expressed as a
percent of long-term investments, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
--------------------------------------------------------------------------------
Education and Civic Organizations 6% 3% 4%
Healthcare 9 5 10
Housing/Multifamily 3 7 15
Housing/Single Family 12 9 4
Tax Obligation/General 15 19 10
Tax Obligation/Limited 14 7 7
Transportation 12 6 7
U.S. Guaranteed 7 32 14
Utilities 17 11 19
Water and Sewer 4 1 8
Other 1 -- 2
--------------------------------------------------------------------------------
100% 100% 100%
================================================================================
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 (50% for Premium Income, 55% for Premium Income 2 and 43%
for Premium Income 4). Such insurance or escrow, however, does not guarantee the
market value of the municipal securities or the value of any of the Funds'
shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
<CAPTION>
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------ ------------------------------------------------------------------
NET NET NET
REALIZED/ INVESTMENT INVESTMENT CAPITAL CAPITAL
BEGINNING NET UNREALIZED INCOME INCOME GAINS GAINS
NET ASSET INVESTMENT INVESTMENT TO COMMON TO PREFERRED TO COMMON TO PREFERRED
VALUE INCOME GAIN (LOSS) TOTAL SHAREHOLDERS SHAREHOLDERS+ SHAREHOLDERS SHAREHOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------------------
PREMIUM INCOME
Year Ended 10/31:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 (a) $13.46 $ .55 $ .09 $ .64 $ (.41) $ (.16) $ -- $ -- $ (.57)
1999 15.66 1.09 (2.10) (1.01) (.85) (.24) (.07) (.02) (1.18)
1998 15.28 1.15 .43 1.58 (.88) (.25) (.06) (.01) (1.20)
1997 14.96 1.14 .37 1.51 (.94) (.20) (.03) -- (1.17)
1996 15.11 1.16 (.09) 1.07 (.97) (.20) (.05) -- (1.22)
1995 14.14 1.24 1.01 2.25 (1.06) (.22) -- -- (1.28)
PREMIUM INCOME 2
Year Ended 10/31:
2000 (a) 14.61 .61 (.20) .41 (.47) (.16) (.02) (.01) (.66)
1999 16.15 1.18 (1.48) (.30) (.94) (.24) (.04) (.01) (1.23)
1998 15.80 1.17 .46 1.63 (.93) (.24) (.09) (.02) (1.28)
1997 15.16 1.18 .65 1.83 (.93) (.26) -- -- (1.19)
1996 14.89 1.19 .27 1.46 (.93) (.26) -- -- (1.19)
1995 13.03 1.20 1.88 3.08 (.92) (.30) -- -- (1.22)
PREMIUM INCOME 4
Year Ended 10/31:
2000 (a) 13.50 .55 (.11) .44 (.42) (.15) -- -- (.57)
1999 15.05 1.09 (1.56) (.47) (.83) (.24) -- -- (1.07)
1998 14.64 1.07 .42 1.49 (.82) (.26) -- -- (1.08)
1997 14.07 1.08 .58 1.66 (.82) (.27) -- -- (1.09)
1996 13.87 1.10 .19 1.29 (.82) (.27) -- -- (1.09)
1995 12.09 1.10 1.81 2.91 (.84) (.29) -- -- (1.13)
====================================================================================================================================
<PAGE>
<CAPTION>
TOTAL RETURNS
----------------------
ORGANIZATION
AND OFFERING
COSTS BASED
AND PREFERRED ENDING BASED ON
SHARE NET ENDING ON NET
UNDERWRITING ASSET MARKET MARKET ASSET
DISCOUNTS VALUE VALUE VALUE** VALUE**
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PREMIUM INCOME
Year Ended 10/31:
2000 (a) $ -- $13.53 $11.5000 (2.83)% 3.65%
1999 (.01) 13.46 12.2500 (14.03) (8.59)
1998 -- 15.66 15.1875 10.60 8.86
1997 (.02) 15.28 14.6250 7.81 8.89
1996 -- 14.96 14.5000 8.24 5.92
1995 -- 15.11 14.3750 16.88 14.84
PREMIUM INCOME 2
Year Ended 10/31:
2000 (a) -- 14.36 13.3750 (4.35) 1.70
1999 (.01) 14.61 14.5000 (8.59) (3.66)
1998 -- 16.15 16.8750 15.98 8.93
1997 -- 15.80 15.5000 16.76 10.72
1996 -- 15.16 14.1250 14.94 8.28
1995 -- 14.89 13.1250 24.22 22.06
PREMIUM INCOME 4
Year Ended 10/31:
2000 (a) -- 13.37 11.7500 (4.60) 2.17
1999 (.01) 13.50 12.7500 (8.77) (5.03)
1998 -- 15.05 14.8125 14.54 8.58
1997 -- 14.64 13.6875 14.70 10.20
1996 -- 14.07 12.6875 11.57 7.53
1995 -- 13.87 12.1250 21.32 22.41
======================================================================================================
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------------------
BEFORE CREDIT
--------------------------------------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
EXPENSES INCOME EXPENSES INCOME
TO AVERAGE TO AVERAGE TO AVERAGE TO AVERAGE
ENDING NET ASSETS NET ASSETS TOTAL TOTAL
NET APPLICABLE APPLICABLE NET ASSETS NET ASSETS
ASSETS TO COMMON TO COMMON INCLUDING INCLUDING
(000) SHARES++ SHARES++ PREFERRED++ PREFERRED++
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PREMIUM INCOME
Year Ended 10/31:
2000 (a) $1,388,197 1.31%* 8.19%* .81%* 5.08%*
1999 1,383,491 1.18 7.28 .77 4.79
1998 1,473,755 1.14 7.41 .77 5.00
1997 1,449,660 1.05 7.58 .76 5.51
1996 1,304,192 1.03 7.76 .75 5.67
1995 1,313,673 1.05 8.42 .76 6.13
PREMIUM INCOME 2
Year Ended 10/31:
2000 (a) 937,269 1.22* 8.41* .77* 5.30*
1999 947,481 1.15 7.60 .77 5.07
1998 959,840 1.13 7.35 .77 5.03
1997 943,587 1.14 7.73 .77 5.23
1996 917,603 1.15 7.97 .77 5.34
1995 906,547 1.17 8.54 .77 5.60
PREMIUM INCOME 4
Year Ended 10/31:
2000 (a) 916,538 1.25* 8.26* .79* 5.22*
1999 921,941 1.20 7.51 .79 4.92
1998 923,004 1.19 7.23 .79 4.79
1997 905,764 1.21 7.62 .79 4.98
1996 882,563 1.22 7.89 .79 5.11
1995 874,337 1.27 8.44 .80 5.35
=================================================================================================
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------------
AFTER CREDIT***
------------------------------------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
EXPENSES INCOME EXPENSES INCOME
TO AVERAGE TO AVERAGE TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS TOTAL TOTAL
APPLICABLE APPLICABLE NET ASSETS NET ASSETS PORTFOLIO
TO COMMON TO COMMON INCLUDING INCLUDING TURNOVER
SHARES++ SHARES++ PREFERRED++ PREFERRED++ RATE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PREMIUM INCOME
Year Ended 10/31:
2000 (a) 1.30%* 8.20%* .81%* 5.08%* 6%
1999 1.17 7.29 .77 4.79 15
1998 1.14 7.41 .77 5.00 19
1997 1.05 7.58 .76 5.51 10
1996 1.03 7.76 .75 5.67 16
1995 1.05 8.42 .76 6.13 12
PREMIUM INCOME 2
Year Ended 10/31:
2000 (a) 1.21* 8.42* .76* 5.31* 3
1999 1.15 7.60 .77 5.07 5
1998 1.13 7.35 .77 5.03 7
1997 1.14 7.73 .77 5.23 19
1996 1.15 7.97 .77 5.34 24
1995 1.17 8.54 .77 5.60 27
PREMIUM INCOME 4
Year Ended 10/31:
2000 (a) 1.24* 8.27* .78* 5.22* 3
1999 1.20 7.51 .79 4.92 14
1998 1.19 7.23 .79 4.79 21
1997 1.21 7.62 .79 4.98 26
1996 1.22 7.89 .79 5.11 20
1995 1.27 8.44 .80 5.35 32
=================================================================================================
* Annualized.
** Total Return on Market Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in
stock price per share. Total Return on Net Asset Value is the combination
of reinvested dividend income, reinvested capital gains distributions, if
any, and changes in net asset value per share. Total returns are not
annualized.
*** After custodian fee credit, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended April 30, 2000.
</TABLE>
<PAGE>
Build Your Wealth Automatically
Sidebar text: Nuveen offers a number of convenient ways to add to your portfolio
and earn the tax-free income you need to achieve your financial goals.
Sidebar text:
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Fund allows you to conveniently reinvest dividends
and/or capital gains distributions in additional fund shares. If you do not
elect to reinvest distributions, all distributions are paid by check or can be
deposited directly into your bank or brokerage account.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. You'll also potentially benefit from dollar-cost averaging, a
technique of investing at regular intervals, which allows you to build a
high-quality, tax-free portfolio conveniently and cost effectively over time.
Dollar-cost averaging does not ensure a profit, nor does it protect you against
loss in a declining market. Because such a plan involves continuous investment
regardless of fluctuating prices, investors should consider their financial
ability to continue purchases through periods of low price levels.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
Income or capital gains taxes may be payable on dividends or distributions that
are reinvested.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may, of course, change your distribution option or withdraw from the Plan at
any time, should your needs or situation change. Should you withdraw, you can
receive a certificate for all whole shares credited to your reinvestment account
and cash payment for fractional shares, or cash payment for all reinvestment
account shares, less brokerage commissions and a $2.50 service fee.
You can also reinvest if your shares are registered in the name of a brokerage
firm, bank, or other nominee. Just ask your investment advisor if the firm will
participate on your behalf. If not, it's easy to have the shares registered in
your name and to apply for a reinvestment account directly. Participants whose
shares are registered in the name of one firm may not be able to transfer the
shares to another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
<PAGE>
Fund Information
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the 6-month period ended April 30, 2000. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
<PAGE>
Serving Investors
FOR GENERATIONS
PHOTO OF:John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen to help them
grow and keep the money they've earned. Financial advisors, investors and their
families have associated Nuveen investments with quality, expertise and
dependability since 1898. That is why financial advisors have entrusted the
assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen investment products and services can help you
preserve your financial security, talk with your financial advisor, or call us
at (800) 257-8787 for more information, including a prospectus where applicable.
Please read that information carefully before you invest.
LOGO: NUVEEN Investments
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John Nuveen & Co. Incorporated o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com
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