UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05570
---------------------
Nuveen Premium Income Municipal Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: April 30, 2007
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT April 30, 2007
Nuveen Investments
Municipal Closed-End Funds
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND, INC.
NPI
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND 2, INC.
NPM
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND 4, INC.
NPT
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six-month period covered
by this report your Fund continued to provide you with attractive monthly
tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well-balanced investment portfolio.
In addition to providing attractive tax-free monthly income, a municipal
bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with investing.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues to
be to assist you and your financial advisor by offering investment services
and products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 15, 2007
Nuveen Investments Municipal Closed-End Funds
NPI, NPM, NPT
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan reviews key investment strategies and the
six-month performance of these three national Funds. With 16 years of investment
experience, including 10 years at Nuveen, Paul assumed portfolio management
responsibility for NPI, NPM, and NPT in July 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2007?
During this six-month period, we continued to see a further flattening of the
municipal bond yield curve. In this environment, where the slope of the yield
curve remained a dominant market factor, we continued to emphasize a disciplined
approach to duration1 management and yield curve positioning. As part of this
approach, our purchases for the Funds' portfolios focused mainly on attractively
priced bonds with maturities of 25 years and longer. We believed that bonds in
this part of the curve generally offered more attractive yields, better value
and reward opportunities more commensurate with their risk levels.
Our duration management strategies during this period included the use of
inverse floating rate trusts,2 a type of derivative financial instrument, in all
three of these Funds. The inverse floaters had the dual benefit of increasing
the Funds' distributable income and bringing their durations closer to our
preferred strategic target. Since late 2004, we have also used forward interest
rate swaps and futures contracts, which are additional types of derivative
instruments, as duration management tools in Funds where we believed this would
support our overall investment performance strategies. The goal of this strategy
is to help us manage the Funds' net asset value (NAV) volatility without having
a negative impact on their income streams or common share dividends over the
short term. During this reporting period, we deployed this strategy in NPI and
NPM. NPT did not use this strategy during this period because we believed its
duration was adequately positioned relative to the general market.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 An inverse floating rate trust is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Funds invested during the six-month period, are
further defined within the "Notes to Financial Statements" and "Glossary of
Terms Used in This Report" sections of this shareholder report.
4
We also continued to put an emphasis on individual credit selection. During this
period, the municipal market saw steady new money issuance as well as a number
of major advance refundings3 and debt restructurings, which provided us with an
increased number of bonds from which to choose. For the six months ended April
30, 2007, municipal issuance nationwide totaled $223.7 billion, up 32% compared
with the six-month period ended April 30, 2006. During the first four months of
2007, supply increased 37% over that of the first four months of 2006--to $135.4
billion--primarily due to a 71% increase in refundings during this period.
Much of the new supply was highly rated and/or insured, and this factor,
combined with the enhanced credit quality resulting from a number of advance
refundings, meant that the Funds' allocations of credits rated AAA generally
increased over this period. We also continued to work to maintain our weightings
of lower credit quality bonds because of their strong performance and support
for the Funds' income streams. For NPT this included participating in the new
offerings of California and New Jersey tobacco bonds that were issued as part of
the advance refunding of older tobacco bonds in these two states. However, as
credit spreads continued to tighten, we generally found fewer attractively
structured lower-rated credit opportunities in the market.
In addition to reinvesting a few bond call proceeds, we selectively sold some of
the Funds' holdings that were nearing redemption in order to generate cash for
purchases. We also took advantage of opportunities to sell bonds that were
purchased when yields were lower and replace them with newer credits that
yielded comparatively more. We continued to redeploy proceeds to bonds that
could help us increase the Funds' income-generating potential, such as credits
with unusual types of coupons, including zero coupon and discount bonds.
3 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
5
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 4/30/07
CUMULATIVE ANNUALIZED
---------- ---------------------------------------------
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NPI 1.47% 7.71% 6.55% 6.34%
--------------------------------------------------------------------------------
NPM 1.58% 7.94% 6.82% 6.65%
--------------------------------------------------------------------------------
NPT 1.60% 7.41% 6.23% 5.77%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index4 1.59% 5.78% 5.16% 5.81%
--------------------------------------------------------------------------------
Lipper General
Leveraged
Municipal Debt
Funds Average5 1.66% 7.42% 7.34% 6.60%
--------------------------------------------------------------------------------
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended April 30, 2007, the cumulative returns on NAV for NPM
and NPT performed in line with the return on the Lehman Brothers Municipal Bond
Index while NPI slightly trailed this measure. All three Funds trailed the
average return for the Funds' Lipper peer group for this period.
Factors that influenced the Funds' returns during this period included duration,
individual security selection, exposure to lower-rated credits, sector
allocations, and advance refunding activity.
As the yield curve continued to flatten over the course of this period,
municipal bonds with maturities of 20 years and longer, as measured by the
Lehman Brothers Municipal Bond Index, performed best, generally outpacing
municipal bonds with shorter maturities. As mentioned earlier, one of our
strategies during this period focused on adding longer bonds to our portfolios.
Overall, this purchase activity and our duration manage-
4 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
5 The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 56; 1 year, 56; 5 years, 45; and 10 years, 39. Fund
and Lipper returns assume reinvestment of dividends.
6
ment strategies helped to extend the Funds' durations and bring them closer in
line with our preferred strategic range, which was generally beneficial.
During this period, we also continued to employ strategies that we believed
could help to strengthen the future income streams of our portfolios. In
addition to income potential, the Funds' holdings of zero coupon bonds, which we
continued to build, also provided a positive impact on performance for this
period.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, all of these Funds benefited from
their weightings in lower-quality credits. The outperformance of these credit
sectors was largely the result of investor demand for the higher yields
typically associated with lower-rated bonds, which drove up their value. NPT had
heavier exposure to subinvestment-grade bonds (those rated BB or lower) than NPI
or NPM, which was especially helpful during this period.
Among the lower-rated holdings making positive contributions to the Funds'
returns for this period were industrial development bonds and health-care
(including hospitals) credits. Lower-rated bonds backed by the 1998 master
tobacco settlement agreement, which comprised approximately 4% of the portfolios
of these Funds as of April 30, 2007, also performed well.
We also continued to see positive contributions from advance refunding activity,
which benefited the Funds through price appreciation and enhanced credit
quality. As previously mentioned, two of the more significant advance refundings
during this period involved BBB rated tobacco bonds issued by California's
Golden State Tobacco Securitization Corporation and New Jersey's Tobacco
Settlement Financing Corporation, which were upgraded to AAA as a result of the
refundings. At the same time, holdings of older, previously pre-refunded bonds
tended to underperform the general municipal market during this period,
particularly those with effective maturities between 5 and 10 years.
7
We should also note that all three of these Funds continued to use financial
leverage to provide opportunities for additional income and total return for
common shareholders. However, this strategy can also add volatility to a Fund's
NAV and share price. Over this period, these two characteristics tended to
offset one another, and the use of leverage was generally a neutral factor in
the total return performance of these three leveraged Funds.
8
Dividend and Share Price
INFORMATION
As previously noted, these three Funds use leverage to potentially enhance
opportunities for additional income for common shareholders. Although the extent
of this benefit was reduced during this period due to high short-term interest
rates that, in turn, kept the Funds' borrowing costs high, the Funds' use of
leverage continued to provide incremental income. Consequently, the dividends of
NPI, NPM, and NPT remained stable throughout this six-month reporting period.
Due to normal portfolio activity, common shareholders of NPM also received a
capital gains distribution of $0.0172 per share at the end of December 2006.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of April 30, 2007, NPI and
NPM had positive UNII balances for both financial statement and, based on our
best estimates, tax purposes, while NPT had a positive UNII balance, based on
our best estimates, for tax purposes and a negative UNII balance for financial
statement purposes.
As of April 30, 2007, the Funds' share prices were trading at discounts to their
NAVs as shown in the accompanying chart:
4/30/07 6-MONTH
DISCOUNT AVERAGE DISCOUNT
--------------------------------------------------------------------------------
NPI -5.86% -6.11%
--------------------------------------------------------------------------------
NPM -6.07% -7.53%
--------------------------------------------------------------------------------
NPT -4.34% -5.27%
--------------------------------------------------------------------------------
9
Nuveen Premium Income Municipal Fund, Inc.
NPI
Performance
OVERVIEW As of April 30, 2007
Pie Chart:
Credit Quality
(as a % of total investments)
AAA/U.S. Guaranteed 65%
AA 11%
A 11%
BBB 10%
N/R 3%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share
May 0.0625
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.059
Oct 0.059
Nov 0.059
Dec 0.059
Jan 0.059
Feb 0.059
Mar 0.059
Apr 0.059
Line Chart:
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
5/01/06 13.55
13.58
13.55
13.53
13.56
13.56
13.38
13.17
13.06
13.11
13.17
13.15
13.25
13.48
13.63
13.68
13.98
14.11
14.1
14.09
13.92
13.97
14.03
14.1
13.84
13.97
14.14
14.33
14.25
14.18
14.06
14.41
14.38
14.2399
14.23
14.25
14.2
14.18
14.32
14.3
14.37
14.47
14.37
14.39
14.48
14.66
14.55
14.48
14.47
14.34
14.26
14.35
4/30/07 14.31
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
FUND SNAPSHOT
------------------------------------
Common Share Price $14.31
------------------------------------
Common Share
Net Asset Value $15.20
------------------------------------
Premium/(Discount) to NAV -5.86%
------------------------------------
Market Yield 4.95%
------------------------------------
Taxable-Equivalent Yield1 6.88%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $969,653
------------------------------------
Average Effective Maturity
on Securities (Years) 15.97
------------------------------------
Leverage-Adjusted Duration 10.14
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/18/88)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 3.79% 1.47%
------------------------------------
1-Year 11.15% 7.71%
------------------------------------
5-Year 6.76% 6.55%
------------------------------------
10-Year 6.55% 6.34%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
New York 12.8%
------------------------------------
California 12.3%
------------------------------------
Texas 8.5%
------------------------------------
Illinois 7.4%
------------------------------------
New Jersey 4.9%
------------------------------------
South Carolina 4.1%
------------------------------------
Washington 4.0%
------------------------------------
Florida 3.4%
------------------------------------
Massachusetts 3.3%
------------------------------------
Minnesota 3.3%
------------------------------------
Colorado 3.1%
------------------------------------
District of Columbia 2.8%
------------------------------------
Nevada 2.6%
------------------------------------
Pennsylvania 2.6%
------------------------------------
Michigan 2.4%
------------------------------------
Wisconsin 2.1%
------------------------------------
Alabama 2.0%
------------------------------------
Other 18.4%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 18.9%
------------------------------------
Tax Obligation/Limited 16.0%
------------------------------------
Health Care 13.1%
------------------------------------
Transportation 12.9%
------------------------------------
Tax Obligation/General 12.9%
------------------------------------
Utilities 7.3%
------------------------------------
Education and Civic
Organizations 4.7%
------------------------------------
Other 14.2%
------------------------------------
10
Nuveen Premium Income Municipal Fund 2, Inc.
NPM
Performance
OVERVIEW As of April 30, 2007
Pie Chart:
Credit Quality
(as a % of total investments)
AAA/U.S. Guaranteed 67%
AA 9%
A 11%
BBB 10%
N/R 3%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share2
May 0.064
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0575
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
Line Chart:
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
5/01/06 13.6
13.5
13.49
13.63
13.82
13.84
13.69
13.45
13.31
13.35
13.32
13.22
13.28
13.63
13.68
13.86
14.12
14.24
14.19
14.16
13.95
14.04
14.06
13.98
13.67
13.8
13.96
13.99
14
13.94
14.05
14.22
14.26
13.97
14.07
14.14
14.229
14.15
14.12
14.11
14.13
14.21
14.42
14.53
14.63
14.65
14.36
14.31
14.33
14.42
14.36
14.42
4/30/07 14.4
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0172 per share.
FUND SNAPSHOT
------------------------------------
Common Share Price $14.40
------------------------------------
Common Share
Net Asset Value $15.33
------------------------------------
Premium/(Discount) to NAV -6.07%
------------------------------------
Market Yield 4.79%
------------------------------------
Taxable-Equivalent Yield1 6.65%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $630,018
------------------------------------
Average Effective Maturity
on Securities (Years) 15.75
------------------------------------
Leverage-Adjusted Duration 11.07
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/23/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.11% 1.58%
------------------------------------
1-Year 10.63% 7.94%
------------------------------------
5-Year 6.82% 6.82%
------------------------------------
10-Year 6.59% 6.65%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 11.9%
------------------------------------
Illinois 10.2%
------------------------------------
New York 10.0%
------------------------------------
Texas 6.7%
------------------------------------
South Carolina 5.9%
------------------------------------
Washington 5.6%
------------------------------------
Massachusetts 4.1%
------------------------------------
Louisiana 3.8%
------------------------------------
New Jersey 3.4%
------------------------------------
Missouri 3.1%
------------------------------------
Alabama 2.8%
------------------------------------
Minnesota 2.6%
------------------------------------
Ohio 2.4%
------------------------------------
Michigan 2.2%
------------------------------------
Nevada 2.1%
------------------------------------
Florida 2.0%
------------------------------------
Iowa 2.0%
------------------------------------
Other 19.2%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 18.7%
------------------------------------
U.S. Guaranteed 17.0%
------------------------------------
Tax Obligation/Limited 15.9%
------------------------------------
Health Care 13.3%
------------------------------------
Utilities 10.5%
------------------------------------
Transportation 6.4%
------------------------------------
Education and Civic
Organizations 4.9%
------------------------------------
Other 13.3%
------------------------------------
11
Nuveen Premium Income Municipal Fund 4, Inc.
NPT
Performance
OVERVIEW As of April 30, 2007
Pie Chart:
Credit Quality
(as a % of total investments)
AAA/U.S. Guaranteed 77%
AA 8%
A 7%
BBB 4%
BB or Lower 2%
N/R 2%
Bar Chart:
2006-2007 Monthly Tax-Free Dividends Per Share
May 0.0575
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
Line Chart:
Share Price Performance
Weekly Closing Price
Past performance is not predictive of future results.
5/01/06 12.17
12.19
12.07
12.02
11.95
12.09
12.1
11.89
11.9
11.95
11.97
11.91
12.23
12.41
12.45
12.34
12.55
12.58
12.65
12.63
12.62
12.65
12.75
12.75
12.58
12.65
12.74
12.75
12.79
12.79
12.68
12.96
12.97
12.83
12.71
12.88
12.88
12.84
12.93
12.87
12.95
13.02
12.91
13.09
13.05
13.16
13.07
13.05
13.16
13.07
12.86
12.95
4/30/07 12.99
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
FUND SNAPSHOT
------------------------------------
Common Share Price $12.99
------------------------------------
Common Share
Net Asset Value $13.58
------------------------------------
Premium/(Discount) to NAV -4.34%
------------------------------------
Market Yield 5.03%
------------------------------------
Taxable-Equivalent Yield1 6.99%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $587,288
------------------------------------
Average Effective Maturity
on Securities (Years) 15.79
------------------------------------
Leverage-Adjusted Duration 10.42
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/19/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 4.07% 1.60%
------------------------------------
1-Year 12.38% 7.41%
------------------------------------
5-Year 6.40% 6.23%
------------------------------------
10-Year 6.44% 5.77%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 10.9%
------------------------------------
Texas 10.6%
------------------------------------
Illinois 10.4%
------------------------------------
New York 7.1%
------------------------------------
Washington 5.9%
------------------------------------
Indiana 5.5%
------------------------------------
Michigan 4.2%
------------------------------------
Louisiana 3.6%
------------------------------------
Florida 3.4%
------------------------------------
Colorado 3.2%
------------------------------------
New Jersey 2.8%
------------------------------------
Nevada 2.6%
------------------------------------
Utah 2.5%
------------------------------------
South Carolina 2.5%
------------------------------------
Rhode Island 2.2%
------------------------------------
Alabama 2.0%
------------------------------------
Maryland 1.8%
------------------------------------
Other 18.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 22.8%
------------------------------------
Tax Obligation/General 16.3%
------------------------------------
Tax Obligation/Limited 15.2%
------------------------------------
Health Care 11.4%
------------------------------------
Utilities 10.6%
------------------------------------
Transportation 7.5%
------------------------------------
Water and Sewer 4.4%
------------------------------------
Other 11.8%
------------------------------------
12
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.3% (2.0% OF TOTAL INVESTMENTS)
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 4,330,503
Bonds, Series 2000, 6.125%, 12/01/16
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
6,000 5.250%, 11/15/20 11/15 at 100.00 Baa1 6,287,880
1,300 5.000%, 11/15/30 11/15 at 100.00 Baa1 1,326,689
12,000 Birmingham Waterworks and Sewerage Board, Alabama, Water 1/17 at 100.00 AAA 11,790,000
and Sewerage Revenue Bonds, Series 2007A, 4.500%, 1/01/43 -
AMBAC Insured (UB)
2,190 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 2,249,261
Control Revenue Bonds, International Paper Company,
Series 2005A, 5.000%, 6/01/25
5,020 DCH Health Care Authority, Alabama, Healthcare Facilities 6/12 at 101.00 A+ 5,306,692
Revenue Bonds, Series 2002, 5.250%, 6/01/18
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,090,730
Alabama, Revenue Bonds, Baptist Medical Center, Series 2004C,
5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
31,560 Total Alabama 32,381,755
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.8% (1.7% OF TOTAL INVESTMENTS)
Anchorage, Alaska, General Obligation Refunding Bonds,
Series 2003A:
2,000 5.250%, 9/01/17 (Pre-refunded 9/01/13) - FGIC Insured 9/13 at 100.00 AAA 2,171,800
2,035 5.250%, 9/01/18 (Pre-refunded 9/01/13) - FGIC Insured 9/13 at 100.00 AAA 2,209,807
5,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 5,399,250
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
(Pre-refunded 6/01/10)
17,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 17,363,325
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
26,535 Total Alaska 27,144,182
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.0% (0.6% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
500 5.250%, 12/01/24 12/15 at 100.00 BBB 522,640
660 5.250%, 12/01/25 12/15 at 100.00 BBB 689,885
3,900 Pima County Industrial Development Authority, Arizona, Lease 7/07 at 100.50 AAA 4,008,498
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
4,130 University of Arizona, Certificates of Participation, Series 2002B, 6/12 at 100.00 AAA 4,369,994
5.125%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,190 Total Arizona 9,591,017
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
480 Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100.00 AAA 511,066
Series 2000, 5.650%, 12/01/25 (Pre-refunded 12/01/10) -
AMBAC Insured
5,245 University of Arkansas, Fayetteville, Athletic Facilities Revenue 9/09 at 100.00 Aaa 5,397,000
Bonds, Razorback Stadium, Series 1999, 5.050%, 9/15/20 -
AMBAC Insured
2,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 2,050,880
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,725 Total Arkansas 7,958,946
------------------------------------------------------------------------------------------------------------------------------------
13
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.1% (12.3% OF TOTAL INVESTMENTS)
$ 1,275 Acalanes Union High School District, Contra Costa County, 8/15 at 100.00 AAA $ 1,357,799
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - FGIC Insured
9,200 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 5,239,216
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/20 - AMBAC Insured
4,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 4,470,360
Revenue Bonds, Series 2002A, 6.000%, 5/01/15
(Pre-refunded 5/01/12)
7,200 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 7,454,880
University of Southern California, Series 2005, 4.750%, 10/01/28
1,500 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 1,570,305
University of the Pacific, Series 2006, 5.000%, 11/01/30
California Health Facilities Financing Authority, Health Facility
Revenue Bonds, Adventist Health System/West, Series 2003A:
3,700 5.000%, 3/01/28 3/13 at 100.00 A 3,780,475
7,000 5.000%, 3/01/33 3/13 at 100.00 A 7,130,690
5,425 California Health Facilities Financing Authority, Health Facility 7/26 at 100.00 A 5,718,981
Revenue Bonds, Catholic Healthcare West, Series 2004I,
4.950%, 7/01/26 (Mandatory put 7/01/14)
9,560 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 9,875,098
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
8,570 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 8,808,675
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call A 12,259,767
Department of Corrections, Series 1993E, 5.500%, 6/01/15
23,725 California State Public Works Board, Lease Revenue Refunding 6/07 at 100.00 Aa2 (4) 23,761,534
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/21 (Pre-refunded 6/01/07)
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
1,640 5.250%, 7/01/30 7/15 at 100.00 BBB+ 1,705,567
2,730 5.000%, 7/01/39 7/15 at 100.00 BBB+ 2,767,292
4,000 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA+ 4,383,160
5.250%, 7/01/14
California, General Obligation Bonds, Series 2004:
2,000 5.125%, 2/01/25 2/14 at 100.00 A+ 2,125,180
10,000 5.125%, 2/01/26 2/14 at 100.00 A+ 10,619,900
3,575 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 3,869,830
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
4,890 Clovis Unified School District, Fresno County, California, General No Opt. Call AAA 2,113,018
Obligation Bonds, Series 2006B, 0.000%, 8/01/26 - MBIA Insured
5,000 Kern Community College District, California, General Obligation No Opt. Call AAA 2,329,400
Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured
5,470 Los Angeles Harbors Department, California, Revenue Bonds, 8/16 at 102.00 AAA 5,843,656
Series 2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative
Minimum Tax)
1,030 Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,346,159
Series 1983A, 10.750%, 2/01/16 (ETM)
19,120 Pomona, California, GNMA/FNMA Collateralized Securities No Opt. Call AAA 24,700,169
Program Single Family Mortgage Revenue Bonds, Series 1990A,
7.600%, 5/01/23 (ETM)
5,000 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 5,485,950
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
2,000 Redwood City School District, San Mateo County, California, 7/12 at 100.00 AAA 2,084,480
General Obligation Bonds, Series 2002, 5.000%, 7/15/27 -
FGIC Insured
3,700 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AAA 3,897,469
Revenue Bonds, Series 2003R, 5.000%, 8/15/22 - MBIA Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
400 5.000%, 9/01/21 9/15 at 102.00 Baa3 417,708
445 5.000%, 9/01/23 9/15 at 102.00 Baa3 464,326
14
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,500 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA $ 3,673,880
Series 2004B, 5.000%, 9/01/29 - MBIA Insured
50,400 San Joaquin Hills Transportation Corridor Agency, Orange County, No Opt. Call Aaa 15,597,288
California, Toll Road Revenue Refunding Bonds, Residual
Series 1997A, 0.000%, 1/15/34 - MBIA Insured (UB)
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
10,450 0.000%, 1/15/31 - MBIA Insured No Opt. Call AAA 3,680,908
24,025 0.000%, 1/15/36 - MBIA Insured No Opt. Call AAA 6,829,106
------------------------------------------------------------------------------------------------------------------------------------
251,925 Total California 195,362,226
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.0% (3.1% OF TOTAL INVESTMENTS)
2,500 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AAA 2,667,175
Sewerage Revenue Bonds, Series 2004, 5.000%, 12/01/21 -
FGIC Insured
690 Colorado Educational and Cultural Facilities Authority, Charter 9/15 at 100.00 AAA 743,530
School Revenue Bonds, Bromley School, Series 2005,
5.125%, 9/15/20 - XLCA Insured
2,125 Colorado Health Facilities Authority, Revenue Bonds, Evangelical 6/16 at 100.00 A- 2,180,314
Lutheran Good Samaritan Society, Series 2005, 5.000%, 6/01/29
1,000 Colorado Health Facilities Authority, Revenue Bonds, Parkview 9/14 at 100.00 A3 1,021,980
Medical Center, Series 2004, 5.000%, 9/01/25
800 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 817,896
Valley Health Care, Series 2005F, 5.000%, 3/01/25
275 Colorado Housing Finance Authority, Single Family Program 5/07 at 105.00 Aa2 275,542
Senior Bonds, Series 1997B-2, 7.000%, 5/01/26 (Alternative
Minimum Tax)
205 Colorado Housing Finance Authority, Single Family Program 11/07 at 105.00 Aa2 207,606
Senior Bonds, Series 1997C-2, 6.875%, 11/01/28 (Alternative
Minimum Tax)
640 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 AA 642,592
Senior Bonds, Series 2000B-2, 7.250%, 10/01/31 (Alternative
Minimum Tax)
9,450 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 10,478,349
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
8,315 Denver City and County, Colorado, Special Facilities Airport 10/07 at 100.00 N/R 8,435,568
Revenue Bonds, United Air Lines Corporation, Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax)
19,810 Denver, Colorado, Excise Tax Revenue Bonds, Convention Center, 3/11 at 100.00 AAA 21,084,176
Series 2001A, 5.500%, 9/01/18 (Pre-refunded 3/01/11) -
FSA Insured
58 El Paso County, Colorado, FNMA Mortgage-Backed Single Family No Opt. Call Aaa 60,201
Revenue Refunding Bonds, Series 1992A-2, 8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
45,868 Total Colorado 48,614,929
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,930 Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,190,010
5.500%, 12/15/16
2,310 Greater New Haven Water Pollution Control Authority, 11/15 at 100.00 AAA 2,452,527
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A, 5.000%, 11/15/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,240 Total Connecticut 4,642,537
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.7% (2.8% OF TOTAL INVESTMENTS)
5,370 District of Columbia Housing Finance Agency, GNMA Collateralized 6/07 at 101.00 AAA 5,431,164
Single Family Mortgage Revenue Bonds, Series 1988E-4,
6.375%, 6/01/26 (Alternative Minimum Tax)
9,505 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 11,356,954
6.000%, 6/01/20 - MBIA Insured
10,350 District of Columbia, Revenue Bonds, Association of American 8/07 at 102.00 AAA 10,593,639
Medical Colleges, Series 1997A, 5.375%, 2/15/27 -
AMBAC Insured
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
14,105 0.000%, 4/01/24 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 47.66 AAA 5,784,178
7,625 0.000%, 4/01/25 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 44.82 AAA 2,941,039
16,665 0.000%, 4/01/32 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 29.23 AAA 4,192,247
15
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA (continued)
$ 1,600 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa $ 1,568,928
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 4.500%, 10/01/30 - AMBAC Insured (IF)
3,335 Washington DC Convention Center Authority, Dedicated Tax 10/16 at 100.00 Aaa 3,270,234
Revenue Bonds, Residual Series 1730,1731, 1736,
4.500%, 10/01/30 (WI/DD, Settling 5/03/07) (IF)
------------------------------------------------------------------------------------------------------------------------------------
68,555 Total District of Columbia 45,138,383
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.5% (3.4% OF TOTAL INVESTMENTS)
4,225 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 4,369,242
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
8,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 AAA 8,595,040
Tampa International Airport, Series 2003A, 5.375%, 10/01/16 -
MBIA Insured (Alternative Minimum Tax)
5,400 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 5,857,920
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
19,750 Miami-Dade County Expressway Authority, Florida, Toll System 7/16 at 100.00 AAA 19,770,935
Revenue Bonds, Series 2006, 4.500%, 7/01/33 -
AMBAC Insured (UB)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A+ (4) 5,491,450
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
4,910 South Miami Florida Health Facilities Authority, Hospital 8/17 at 100.00 AA- 5,042,865
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42 (WI/DD, Settling 5/16/07)
1,785 Tallahassee, Florida, Energy System Revenue Bonds, 10/15 at 100.00 AAA 1,888,584
Series 2005, 5.000%, 10/01/28 - MBIA Insured
2,375 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aaa 2,515,553
Participation, Series 2005B, 5.000%, 8/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,445 Total Florida 53,531,589
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.8% (1.1% OF TOTAL INVESTMENTS)
2,625 Fulton County Development Authority, Georgia, Revenue Bonds, 5/14 at 100.00 AAA 2,835,315
Georgia Tech Molecular Science Building, Series 2004,
5.250%, 5/01/24 - MBIA Insured
6,025 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA 6,490,974
Certificates, Series 2003, 5.250%, 1/01/20 - FSA Insured
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call AAA 5,661,237
Tax Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20 -
AMBAC Insured
2,705 Savannah Housing Authority, Georgia, GNMA Collateralized 5/08 at 103.00 Aaa 2,822,018
Mortgage Revenue Refunding Bonds, Plantation Oak Project,
Series 2000, 6.350%, 11/20/39
------------------------------------------------------------------------------------------------------------------------------------
16,200 Total Georgia 17,809,544
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.1% (0.7% OF TOTAL INVESTMENTS)
10,000 Hawaii, General Obligation Bonds, Series 2003DA, 9/13 at 100.00 AAA 10,794,600
5.250%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, 9/10 at 100.00 Aaa 5,224,600
Series 2000, 5.500%, 9/01/25 - FGIC Insured (Alternative
Minimum Tax)
685 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 706,632
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
5,685 Total Idaho 5,931,232
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.1% (7.4% OF TOTAL INVESTMENTS)
9,220 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 9,465,897
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
8,890 0.000%, 12/01/16 - FGIC Insured No Opt. Call AAA 6,036,577
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AAA 5,647,600
10,130 0.000%, 12/01/24 - FGIC Insured No Opt. Call AAA 4,752,692
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1999A:
$ 15,000 0.000%, 12/01/21 - FGIC Insured No Opt. Call AAA $ 8,076,150
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AAA 4,913,900
26,350 Chicago Greater Metropolitan Area Sanitary District, Illinois, 12/16 at 100.00 AAA 28,858,784
General Obligation Bonds, Series 2006, 5.000%, 12/01/35 (UB)
45 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 9/07 at 104.00 Aaa 46,112
Mortgage Revenue Bonds, Series 1996A, 7.000%, 9/01/27
(Alternative Minimum Tax)
245 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 9/07 at 105.00 Aaa 251,336
Mortgage Revenue Bonds, Series 1997B, 6.950%, 9/01/28
(Alternative Minimum Tax)
8,740 Illinois Development Finance Authority, Pollution Control 8/07 at 100.00 AAA 8,852,484
Revenue Refunding Bonds, Illinois Power Company,
Series 1994A, 5.700%, 2/01/24 - MBIA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
1,050 5.250%, 11/15/22 5/14 at 100.00 A 1,095,770
3,000 5.250%, 11/15/23 5/14 at 100.00 A 3,128,910
985 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 1,007,773
Series 2006, 5.125%, 1/01/25
1,060 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 1,103,683
Medical Center, Series 2002, 5.500%, 5/15/32
9,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman 8/07 at 101.00 AAA 10,044,387
Health Systems, Series 1997, 5.250%, 8/01/27 -
AMBAC Insured
10,040 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 7,268,759
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/15 - FGIC Insured
9,200 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 9,653,652
Bonds, McCormick Place Expansion Project, Series 1999A,
5.500%, 12/15/24 - FGIC Insured
3,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 3,970,590
Bonds, McCormick Place Hospitality Facility, Series 1996A,
7.000%, 7/01/26 (ETM)
3,000 Upper Illinois River Valley Development Authority, Healthcare 12/11 at 101.00 BBB+ 3,299,580
Facilities Revenue Bonds, Morris Hospital, Series 2001,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
139,775 Total Illinois 117,474,636
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,005 Hamilton County Public Building Corporation, Indiana, First 8/14 at 100.00 AAA 2,111,305
Mortgage Bonds, Series 2004, 5.000%, 8/01/22 - FSA Insured
7,965 Wawasee Community School Corporation, Indiana, First 1/12 at 101.00 AA (4) 8,743,818
Mortgage Bonds, New Elementary and Remodeling Building
Corporation, Series 2000, 5.750%, 1/15/20
(Pre-refunded 1/15/12)
------------------------------------------------------------------------------------------------------------------------------------
9,970 Total Indiana 10,855,123
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.1% (1.3% OF TOTAL INVESTMENTS)
Des Moines, Iowa, General Obligation Bonds, Series 2000D:
1,215 5.750%, 6/01/17 - MBIA Insured 6/08 at 100.00 AAA 1,241,232
1,410 5.800%, 6/01/18 - MBIA Insured 6/08 at 100.00 AAA 1,440,964
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,128,280
Medical Center, Series 2000, 6.250%, 7/01/25
4,125 Iowa Finance Authority, Industrial Remarketed Revenue No Opt. Call AAA 5,023,549
Refunding Bonds, Urbandale Hotel Corporation, Series 1989A,
8.500%, 8/01/16 (Alternative Minimum Tax) (ETM)
10,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 10,390,100
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
18,750 Total Iowa 20,224,125
------------------------------------------------------------------------------------------------------------------------------------
17
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 6,000 Kansas Department of Transportation, Highway Revenue 3/14 at 100.00 AAA $ 6,373,920
Bonds, Series 2004A, 5.000%, 3/01/21
860 Sedgwick and Shawnee Counties, Kansas, GNMA 6/08 at 105.00 Aaa 866,192
Mortgage-Backed Securities Program Single Family Revenue
Bonds, Series 1998A-1, 6.500%, 12/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,860 Total Kansas 7,240,112
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,770 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 4,007,359
Revenue Bonds, Revitalization Project, Series 2005B,
5.000%, 7/01/24 - AMBAC Insured
Marshall County School District Finance Corporation, Kentucky,
School Building Revenue Bonds, Series 2004:
1,210 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 Aaa 1,288,590
1,270 5.000%, 6/01/20 - AMBAC Insured 6/14 at 100.00 Aaa 1,350,874
1,335 5.000%, 6/01/21 - AMBAC Insured 6/14 at 100.00 Aaa 1,419,158
------------------------------------------------------------------------------------------------------------------------------------
7,585 Total Kentucky 8,065,981
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.1% (1.9% OF TOTAL INVESTMENTS)
2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, Special 12/12 at 100.00 AAA 3,143,332
Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/19 (Pre-refunded 12/01/12) - AMBAC Insured
280 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa 288,081
Revenue Bonds, Series 2000A, 7.450%, 12/01/31
(Alternative Minimum Tax)
5,505 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 6,833,081
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
620 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call N/R (4) 771,113
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14 (ETM)
2,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 2,102,000
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 1,266,768
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 2,331,417
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 2,637,350
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2006:
7,725 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aaa 7,599,392
2,385 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aaa 2,346,220
930 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, 5/16 at 100.00 Aaa 953,631
Series 2006, 4.750%, 5/01/39 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
28,270 Total Louisiana 30,272,385
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,200 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 2,400,728
Revenue Bonds, Series 2006A, 5.250%, 9/01/27 -
XLCA Insured
3,560 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 3,654,340
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - MBIA Insured (UB)
3,600 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 3,733,308
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,360 Total Maryland 9,788,376
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.4% (3.3% OF TOTAL INVESTMENTS)
2,100 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 2,184,273
Series 2000A, 5.250%, 7/01/30
7,900 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 8,268,614
Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10)
4,770 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 4,844,794
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 8,505 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA $ 8,789,152
Mortgage Revenue Bonds, Series 2001A, 5.850%, 7/01/35 -
AMBAC Insured (Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,928,310
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
13,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 Aaa 12,746,760
Program Bonds, Series 12, 4.375%, 8/01/36 (UB)
5,960 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 6,557,490
Bonds, Series 2005A, 5.250%, 8/01/25 - MBIA Insured
1,600 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 Aaa 1,523,184
Bonds, Series 2007, Residual Trust 7039, 4.500%, 8/01/46 -
FSA Insured (IF)
3,820 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 4,151,614
Bonds, Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
50,480 Total Massachusetts 51,994,191
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.9% (2.4% OF TOTAL INVESTMENTS)
Detroit, Michigan, General Obligation Bonds, Series 2003A:
3,565 5.250%, 4/01/22 - XLCA Insured 4/13 at 100.00 AAA 3,787,100
1,275 5.250%, 4/01/23 - XLCA Insured 4/13 at 100.00 AAA 1,353,043
3,930 Hudsonville Public Schools, Ottawa and Allegan Counties, 5/08 at 100.00 AAA 3,977,867
Michigan, Unlimited Tax General Obligation School Building
and Site Refunding Bonds, Series 1997, 5.150%, 5/01/22 -
FGIC Insured
3,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 3,306,720
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
6,600 Michigan Housing Development Authority, Limited Obligation 7/07 at 102.00 AAA 6,732,000
Multifamily Mortgage Revenue Refunding Bonds, Forest Hills
Regency Square Project, Series 1999A, 5.750%, 7/01/29
10,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 10,534,900
Facilities Program, Series 2003II, 5.000%, 10/15/23 -
MBIA Insured
850 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 BBB- 899,071
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
6,390 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/12 at 100.00 AAA 6,837,300
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,610 Total Michigan 37,428,001
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.3% (3.3% OF TOTAL INVESTMENTS)
13,650 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A- 14,008,586
Inc., Series 2004, 4.950%, 7/01/22
2,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- 2,098,900
Facilities Revenue Bonds, Benedictine Health System -
St. Mary's Duluth Clinic, Series 2004, 5.375%, 2/15/22
Eden Prairie, Minnesota, GNMA Collateralized Multifamily
Housing Revenue Bonds, Rolling Hills Project, Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105.00 Aa2 1,087,470
2,000 6.200%, 2/20/43 8/11 at 105.00 Aa2 2,168,740
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101.00 AAA 3,056,190
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/22 (Pre-refunded 1/01/08) - AMBAC Insured
90 Minnesota Agricultural and Economic Development Board, 11/07 at 102.00 AAA 92,640
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 1997A, 5.750%, 11/15/26 -
MBIA Insured
1,335 Minnesota Higher Education Facilities Authority, Revenue 4/16 at 100.00 A2 1,412,203
Bonds, University of St. Thomas, Series 2006-6I,
5.000%, 4/01/23
700 Minnesota Higher Education Facilities Authority, St. John's 10/15 at 100.00 A2 741,125
University Revenue Bonds, Series 2005-6G, 5.000%, 10/01/22
1,500 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,593,075
Series 2004A, 5.250%, 10/01/24
19
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 1,665 Rochester, Minnesota, Health Care Facilities Revenue Bonds, 5/16 at 100.00 AA $ 1,739,459
Series 2006, 5.000%, 11/15/36
1,545 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,709,543
Revenue Bonds, Healtheast Inc., Series 2005,
6.000%, 11/15/25
17,945 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 22,054,223
Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
46,430 Total Minnesota 51,762,154
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
4,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 4,415,135
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.0% (1.2% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R 2,078,700
Bonds, Lutheran Senior Services - Heisinger Project,
Series 2004, 5.250%, 2/01/24
500 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 514,175
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
1,565 6.000%, 6/01/20 No Opt. Call BBB+ 1,799,891
1,260 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,302,260
1,500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 1,585,065
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/21 - AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
1,500 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 1,601,160
4,150 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 4,423,402
410 Missouri Housing Development Commission, GNMA/FNMA 9/07 at 105.00 AAA 416,248
Single Family Mortgage Revenue Bonds, Homeownership
Loan Program, Series 1996C, 7.450%, 9/01/27 (Alternative
Minimum Tax)
2,750 Missouri Housing Development Commission, Single Family 3/09 at 103.00 AAA 2,783,193
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1999B-1, 6.700%, 9/01/30 (Alternative Minimum Tax)
2,960 St. Charles County Francis Howell School District, Missouri, No Opt. Call AAA 3,058,006
General Obligation Refunding Bonds, Series 1994A,
7.800%, 3/01/08 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
18,595 Total Missouri 19,562,100
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.3% (0.8% OF TOTAL INVESTMENTS)
7,260 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 7,665,108
System Revenue Bonds, Nebraska City 2, Series 2006A,
5.000%, 2/01/49 - AMBAC Insured (UB)
4,410 University of Nebraska, Lincoln, Student Fees and Facilities 11/13 at 100.00 Aa2 4,600,909
Revenue Bonds, Series 2003B, 5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
11,670 Total Nebraska 12,266,017
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.3% (2.6% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,284,544
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) -
MBIA Insured
15,000 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AAA 15,882,450
Nevada Water Authority Loan, Series 2001, 5.250%, 6/01/26
(Pre-refunded 6/01/11) - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series 2000:
6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call AAA 2,453,643
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 12,382,440
------------------------------------------------------------------------------------------------------------------------------------
43,835 Total Nevada 42,003,077
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.0% (0.0% OF TOTAL INVESTMENTS)
455 New Hampshire Housing Finance Authority, Single Family 7/07 at 101.00 Aa2 456,574
Mortgage Acquisition Revenue Bonds, Series 1996B,
6.400%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.0% (4.9% OF TOTAL INVESTMENTS)
$ 10,150 Delaware River Port Authority, Pennsylvania and New Jersey, 1/10 at 100.00 AAA $ 10,607,562
Revenue Bonds, Port District Project, Series 1999B,
5.625%, 1/01/26 - FSA Insured
8,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 8,597,600
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25
(Pre-refunded 10/01/10) - FGIC Insured
500 Middlesex County Improvement Authority, New Jersey, Senior No Opt. Call Baa3 509,050
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A, 5.000%, 1/01/15
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
3,655 5.250%, 9/01/24 9/15 at 100.00 AA- 3,958,438
2,000 5.250%, 9/01/26 9/15 at 100.00 AA- 2,161,640
1,425 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 1,461,722
Bonds, Saint Barnabas Health Care System, Series 2006A,
5.000%, 7/01/29
3,985 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/07 at 101.50 AAA 4,061,233
Program Revenue Bonds, Series 1997U, 5.850%, 4/01/29 -
MBIA Insured (Alternative Minimum Tax)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
5,410 5.500%, 6/15/20 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 5,940,667
9,250 5.500%, 6/15/23 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 10,157,333
3,850 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,302,106
System Bonds, Series 2006A, 5.250%, 12/15/20
New Jersey Turnpike Authority, Revenue Bonds, Series 2000A:
3,915 6.000%, 1/01/14 - MBIA Insured (ETM) No Opt. Call AAA 4,431,545
7,585 6.000%, 1/01/14 - MBIA Insured (ETM) No Opt. Call AAA 8,585,765
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,657,125
5.000%, 1/01/19 - FGIC Insured
9,130 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 9,674,787
5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
71,355 Total New Jersey 77,106,573
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
740 New Mexico Mortgage Finance Authority, Single Family 3/10 at 102.50 AAA 750,279
Mortgage Program Bonds, Series 2000D-2, 6.850%, 9/01/31
(Alternative Minimum Tax)
5,585 Santa Fe County, New Mexico, Correctional System Gross No Opt. Call AAA 6,738,358
Receipts Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,325 Total New Mexico 7,488,637
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 20.9% (12.8% OF TOTAL INVESTMENTS)
Dormitory Authority of the State of New York, Revenue Bonds,
University of Rochester, Series 2004A:
1,000 5.250%, 7/01/22 7/14 at 100.00 A+ 1,074,930
500 5.250%, 7/01/24 7/14 at 100.00 A+ 536,500
1,025 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 A+ (4) 1,124,528
University of Rochester, Series 2004A, 5.250%, 7/01/20
(Pre-refunded 7/01/14)
1,995 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 2,145,782
Appropriation Lease Bonds, Upstate Community Colleges,
Series 2004B, 5.250%, 7/01/20
2,335 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 2,477,528
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
Dormitory Authority of the State of New York, State Personal
Income Tax Revenue Bonds, Education, Series 2006C:
3,160 5.000%, 12/15/31 (UB) 12/16 at 100.00 AAA 3,369,919
6,960 5.000%, 12/15/35 (UB) 12/16 at 100.00 AAA 7,405,301
6,320 5.000%, 12/15/35 (UB) 12/16 at 100.00 AAA 6,724,354
6,915 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 6,819,919
Bonds, 2006, 4.500%, 2/15/47 - MBIA Insured (UB)
6,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 6,881,100
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
21
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 13,580 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA $ 13,947,475
Revenue Bonds, Series 1998A, 5.250%, 12/01/26
(Pre-refunded 6/01/08)
5,100 Long Island Power Authority, New York, Electric System 11/16 at 100.00 Aaa 4,939,962
Revenue Bonds, Series 2006, 4.250%, 5/01/33 -
MBIA Insured (UB)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
7,000 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 7,470,890
5,000 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 AAA 5,332,450
4,500 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 4,777,650
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 -
AMBAC Insured
7,400 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 7,785,836
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
3,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 3,203,850
Revenue Refunding Bonds, Series 2002A, 5.125%, 11/15/21 -
FGIC Insured
New York City Industrial Development Agency, New York, Civic
Facility Revenue Bonds, United Jewish Appeal - Federation of
Jewish Philanthropies of New York Inc., Series 2004A:
2,185 5.250%, 7/01/20 7/14 at 100.00 Aa2 2,357,899
2,050 5.250%, 7/01/21 7/14 at 100.00 Aa2 2,210,884
2,420 5.250%, 7/01/22 4/14 at 100.00 Aa2 2,618,561
1,370 5.250%, 7/01/24 4/14 at 100.00 Aa2 1,479,737
12,500 New York City, New York, General Obligation Bonds, 10/13 at 100.00 AA- 13,348,375
Fiscal Series 2003D, 5.250%, 10/15/22
525 New York City, New York, General Obligation Bonds, 6/13 at 100.00 AA- 567,294
Fiscal Series 2003J, 5.500%, 6/01/23
4,475 New York City, New York, General Obligation Bonds, 6/13 at 100.00 AA- (4) 4,921,739
Fiscal Series 2003J, 5.500%, 6/01/23 (Pre-refunded 6/01/13)
6,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 6,448,320
Fiscal Series 2004C, 5.250%, 8/15/20
7,960 New York City, New York, General Obligation Bonds, 4/15 at 100.00 AA- 8,387,691
Fiscal Series 2005M, 5.000%, 4/01/24
11,525 New York Convention Center Development Corporation, 11/15 at 100.00 AAA 12,101,481
Hotel Unit Fee Revenue Bonds, Series 2005, 5.000%, 11/15/44 -
AMBAC Insured (UB)
650 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 694,252
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
1,350 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 AAA 1,474,808
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
(Pre-refunded 6/01/10)
3,770 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 4,010,036
Series 2005G, 5.000%, 1/01/25 - FSA Insured
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
5,000 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 5,349,100
2,000 5.000%, 4/01/22 - AMBAC Insured 10/15 at 100.00 AAA 2,139,940
7,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 7,759,492
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
13,010 New York State Urban Development Corporation, Service 1/17 at 100.00 AA- 13,767,052
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
6,460 New York State Urban Development Corporation, State 3/14 at 100.00 AAA 6,810,907
Personal Income Tax Revenue Bonds, Series 2004A-1,
5.000%, 3/15/26 - FGIC Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 2,132,180
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/27 - XLCA Insured
5,000 Port Authority of New York and New Jersey, Consolidated 3/14 at 101.00 AAA 5,284,800
Revenue Bonds, One Hundred Thirty-Fifth Series 2004,
5.000%, 9/15/28 - XLCA Insured
2,720 Rensselaer County Industrial Development Agency, New York, 3/16 at 100.00 A 2,882,194
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
9,515 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 10,002,929
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
191,675 Total New York 202,767,645
------------------------------------------------------------------------------------------------------------------------------------
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
$ 5,785 5.250%, 6/01/22 6/13 at 100.00 AA+ $ 6,131,926
3,475 5.250%, 6/01/23 6/13 at 100.00 AA+ 3,681,485
1,000 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 1,055,990
Financing Authority, North Carolina, National Gypsum
Company Project Exempt Facilities Revenue Bonds,
Series 2005, 5.750%, 8/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,260 Total North Carolina 10,869,401
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.1% (0.7% OF TOTAL INVESTMENTS)
9,650 Dickinson, North Dakota, Health Care Facilities Revenue 2/10 at 102.00 AA 10,722,308
Bonds, BHS Long Term Care Inc., Series 1990,
7.625%, 2/15/20 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.1% (1.3% OF TOTAL INVESTMENTS)
2,750 Cincinnati City School District, Hamilton County, Ohio, No Opt. Call AAA 3,133,680
General Obligation Bonds, Series 2006, 5.250%, 12/01/22 -
FGIC Insured
4,265 Franklin County, Ohio, Hospital Revenue and Improvement 5/11 at 101.00 Aaa 4,579,245
Bonds, Children's Hospital Project, Series 2001,
5.500%, 5/01/28 (Pre-refunded 5/01/11) - AMBAC Insured
2,720 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 2,928,597
5.250%, 6/01/20
665 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 713,465
Bonds, MedCentral Health System Obligated Group,
Series 2000A, 6.125%, 11/15/16
1,335 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 N/R (4) 1,452,080
Bonds, MedCentral Health System Obligated Group,
Series 2000A, 6.125%, 11/15/16 (Pre-refunded 11/15/10)
7,000 Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100.00 A3 7,517,930
and Improvement Bonds, Trinity Health System, Series 2000,
6.500%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
18,735 Total Ohio 20,324,997
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.6% (0.2% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital
Revenue Bonds, Series 2005:
500 5.375%, 9/01/29 9/16 at 100.00 BBB- 527,750
1,050 5.375%, 9/01/36 9/16 at 100.00 BBB- 1,102,994
3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AAA 3,720,360
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,050 Total Oklahoma 5,351,104
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.0% (0.6% OF TOTAL INVESTMENTS)
Oregon Department of Administrative Services, Certificates of
Participation, Series 2005A:
2,060 5.000%, 5/01/24 - FSA Insured 5/15 at 100.00 AAA 2,178,924
4,220 5.000%, 5/01/30 - FSA Insured 5/15 at 100.00 AAA 4,440,115
2,500 Oregon State Department of Transportation, Highway User 11/14 at 100.00 AAA 2,666,375
Tax Revenue Bonds, Series 2004A, 5.000%, 11/15/21
------------------------------------------------------------------------------------------------------------------------------------
8,780 Total Oregon 9,285,414
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.3% (2.6% OF TOTAL INVESTMENTS)
980 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 987,164
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
Lancaster Higher Education Authority, Pennsylvania, Revenue
Bonds, Franklin and Marshall College, Series 2003C:
1,340 5.250%, 4/15/15 4/13 at 100.00 A+ 1,431,589
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,086,459
1,000 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 1,059,690
Series 2005, 5.000%, 9/01/29
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,803,631
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
23
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fifth Series 2004A-1:
$ 4,505 5.000%, 9/01/21 - FSA Insured 9/14 at 100.00 AAA $ 4,760,839
4,735 5.000%, 9/01/22 - FSA Insured 9/14 at 100.00 AAA 4,994,715
8,405 Philadelphia Redevelopment Authority, Pennsylvania, 4/08 at 103.00 N/R 8,552,340
Multifamily Housing Mortgage Revenue Bonds, Cricket
Court Apartments, Series 1998A, 6.200%, 4/01/25
(Alternative Minimum Tax)
14,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 15,160,460
Revenue Bonds, Philadelphia School District, Series 2003,
5.250%, 6/01/24 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,550 Total Pennsylvania 41,836,887
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,588,020
Series 2005RR, 5.000%, 7/01/30 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.6% (4.1% OF TOTAL INVESTMENTS)
8,610 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 9,145,800
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/24
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
5,090 5.250%, 12/01/18 12/13 at 100.00 AA- 5,432,557
3,595 5.250%, 12/01/20 12/13 at 100.00 AA- 3,826,051
1,865 5.250%, 12/01/21 12/13 at 100.00 AA- 1,982,644
Lexington County Health Service District, South Carolina,
Hospital Revenue Bonds, Series 2004:
1,805 6.000%, 5/01/19 5/14 at 100.00 A+ 1,995,175
2,400 5.500%, 5/01/24 5/14 at 100.00 A+ 2,547,240
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
13,345 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 15,236,520
1,655 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 1,885,144
Tobacco Settlement Revenue Management Authority,
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B:
8,915 6.000%, 5/15/22 5/11 at 101.00 BBB 9,481,816
7,500 6.375%, 5/15/28 5/11 at 101.00 BBB 8,102,250
4,150 6.375%, 5/15/30 No Opt. Call BBB 4,838,568
------------------------------------------------------------------------------------------------------------------------------------
58,930 Total South Carolina 64,473,765
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.2% (0.7% OF TOTAL INVESTMENTS)
6,400 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 6,819,136
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
6,100 Knox County Health, Educational and Housing Facilities Board, 1/17 at 31.68 A- 1,180,838
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2006, 0.000%, 1/01/40
410 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 425,756
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36
3,025 Tennessee Housing Development Agency, Homeownership 7/13 at 100.00 AA 3,070,829
Program Bonds, Series 2004, 5.000%, 7/01/34
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,935 Total Tennessee 11,496,559
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.9% (8.5% OF TOTAL INVESTMENTS)
5,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 4,865,650
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
3,257 Austin Housing Finance Corporation, Texas, GNMA 12/10 at 105.00 Aaa 3,576,219
Collateralized Multifamily Housing Revenue Bonds, Fairway
Village Project, Series 2000A, 7.375%, 6/20/35
(Alternative Minimum Tax)
8,840 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 8,530,688
System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
2,150 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 10/13 at 101.00 Baa2 2,341,458
TXU Energy Company LLC Project, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
24
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 175 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA $ 185,190
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 6.000%, 2/15/16
665 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA 9/10 at 105.00 AAA 680,800
Single Family Mortgage Revenue Bonds, Series 2000A,
6.700%, 9/01/33 (Alternative Minimum Tax)
3,380 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 3,580,265
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
1,000 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 1,049,120
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
19,125 Harris County Hospital District, Texas, Revenue Refunding 8/10 at 100.00 AAA 20,274,218
Bonds, Series 2000, 6.000%, 2/15/15 - MBIA Insured
4,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 4,207,400
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
MBIA Insured
5,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 5,396,100
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
6,000 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,377,760
Series 2001B, 5.500%, 3/01/15 - FSA Insured
9,250 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 9,689,560
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
4,660 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 4,926,552
General Obligation Bonds, Series 2007, Residuals 07-1001,
4,750%, 8/01/43 (IF)
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005:
2,000 5.250%, 8/15/21 No Opt. Call BBB- 2,084,920
2,500 5.125%, 8/15/26 No Opt. Call BBB- 2,572,900
1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 1,602,569
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/23 - AMBAC Insured
245 Lower Colorado River Authority, Texas, Revenue Refunding 5/13 at 100.00 Aaa 264,906
and Improvement Bonds, Series 2003, 5.250%, 5/15/24
(Pre-refunded 5/15/13) - AMBAC Insured
3,155 Lower Colorado River Authority, Texas, Revenue Refunding 5/13 at 100.00 AAA 3,363,009
and Improvement Bonds, Series 2003, 5.250%, 5/15/24 -
AMBAC Insured
6,670 Pearland Independent School District, Brazoria County, Texas, 2/17 at 100.00 AAA 6,540,202
General Obligation Bonds, Series 2007, Rites-PA- 1449,
4.500%, 2/15/32 (IF)
2,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Baa2 2,032,280
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
10,810 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 12,168,709
Texas, GNMA Collateralized Mortgage Loan Revenue Bonds,
Eastview Nursing Home, Ebony Lake Nursing Center,
Ft. Stockton Nursing Center, Lynnhaven Nursing Center and
Mission Oaks Manor, Series 2000A-1, 7.625%, 12/20/32
4,000 Tarrant County Health Facilities Development Corporation, 11/10 at 101.00 A+ (4) 4,420,840
Texas, Hospital Revenue Bonds, Adventist Health System -
Sunbelt Obligated Group, Series 2000, 6.700%, 11/15/30
(Pre-refunded 11/15/10)
5,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 5,356,550
Refunding and Improvement Bonds, Series 1999,
5.250%, 3/01/17 - FSA Insured
4,000 Texas A&M University, Financing System Revenue Bonds, 5/09 at 100.00 AAA 4,147,760
Series 1999, 5.550%, 5/15/29 (Pre-refunded 5/15/09) -
MBIA Insured
25,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central No Opt. Call AAA 11,838,500
Texas Turnpike System, Series 2002A, 0.000%, 8/15/24 -
AMBAC Insured
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,529,075
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
141,887 Total Texas 134,603,200
------------------------------------------------------------------------------------------------------------------------------------
25
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.1% OF TOTAL INVESTMENTS)
$ 900 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA $ 912,483
Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.2% OF TOTAL INVESTMENTS)
4,800 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100.00 N/R 5,440,704
Residential Rental Housing Revenue Bonds, Mayfair
Apartments I and II, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.6% (4.0% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,729,775
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
Public Utility District 1, Chelan County, Washington, Revenue
Bonds, Chelan Hydro Consolidated System, Series 1997A:
11,820 5.650%, 7/01/32 (Mandatory put 7/01/24) (Alternative Minimum Tax) 7/07 at 102.00 AA 12,075,667
8,000 5.650%, 7/01/32 (Mandatory put 7/01/27) (Alternative Minimum Tax) 7/07 at 102.00 AA 8,173,280
3,125 Skagit County Public Hospital District 1, Washington, General 6/14 at 100.00 Aaa 3,416,469
Obligation Bonds, Series 2004A, 5.375%, 12/01/20 -
MBIA Insured
5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 5,274,350
Bonds, Series 2001, 5.250%, 12/01/26 - MBIA Insured
9,350 Washington Public Power Supply System, Revenue Refunding 7/07 at 102.00 Aaa 9,558,692
Bonds, Nuclear Project 3, Series 1997A, 5.250%, 7/01/15
(Pre-refunded 7/01/07)
7,775 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 8,033,363
Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
4,750 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,869,415
Bonds, Swedish Health Services, Series 1998,
5.125%, 11/15/22 - AMBAC Insured
6,480 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AAA 3,090,766
Bonds, Series 2002-03C, 0.000%, 6/01/24 - MBIA Insured
11,000 Washington, General Obligation Bonds, Series 2000S-5, No Opt. Call AAA 6,448,530
0.000%, 1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
69,800 Total Washington 63,670,307
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.4% (2.1% OF TOTAL INVESTMENTS)
Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue
Bonds, Public Schools, Series 2003A:
1,000 5.125%, 8/01/22 (Pre-refunded 8/01/13) - AMBAC Insured 8/13 at 100.00 AAA 1,074,510
750 5.125%, 8/01/23 (Pre-refunded 8/01/13) - AMBAC Insured at 100.00 AAA 805,883
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,060,270
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%, 7/01/21
9,000 Wisconsin Health and Educational Facilities Authority, Revenue 4/13 at 100.00 BBB+ 9,978,480
Bonds, Aurora Healthcare Inc., Series 2003, 6.400%, 4/15/33
2,175 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 100.00 BBB 2,345,368
Bonds, Carroll College Inc., Series 2001, 6.125%, 10/01/16
790 Wisconsin Health and Educational Facilities Authority, Revenue 5/16 at 100.00 BBB 804,623
Bonds, Divine Savior Healthcare, Series 2006, 5.000%, 5/01/32
6,025 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 BBB+ 6,516,279
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 6.000%, 9/01/22
4,995 Wisconsin Health and Educational Facilities Authority, Revenue 9/17 at 100.00 BBB+ 5,024,720
Bonds, Franciscan Sisters of Christian Charity HealthCare
Ministry, Series 2007, 5.000%, 9/01/33 (WI/DD, Settling 5/01/07)
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 2,072,940
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.250%, 8/15/25
Wisconsin, General Obligation Bonds, Series 2004-3:
175 5.250%, 5/01/19 - FGIC Insured 5/14 at 100.00 AAA 189,355
1,265 5.250%, 5/01/21 - FGIC Insured 5/14 at 100.00 AAA 1,365,555
1,545 Wisconsin, General Obligation Bonds, Series 2004-3, 5/14 at 100.00 Aaa 1,687,063
5.250%, 5/01/19 (Pre-refunded 5/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,720 Total Wisconsin 32,925,046
------------------------------------------------------------------------------------------------------------------------------------
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.2% OF TOTAL INVESTMENTS)
$ 3,900 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB- $ 4,144,063
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,650,600 Total Investments (cost $1,512,468,596) - 163.7% 1,587,716,040
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.8)% (104,509,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 11,445,625
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.1)% (525,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 969,652,665
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Citigroup Inc. $15,000,000 Receive 3-Month USD-LIBOR 5.235% Semi-Annually 12/12/07 12/12/36 $308,204
JPMorgan 31,000,000 Receive 3-Month USD-LIBOR 5.060 Semi-Annually 12/12/07 12/12/16 149,558
-----------------------------------------------------------------------------------------------------------------------------------
$457,762
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) 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. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
27
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.6% (2.8% OF TOTAL INVESTMENTS)
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
$ 3,600 5.250%, 11/15/20 11/15 at 100.00 Baa1 $ 3,772,728
1,000 5.000%, 11/15/30 11/15 at 100.00 Baa1 1,020,530
12,000 Birmingham Waterworks and Sewerage Board, Alabama, 1/17 at 100.00 AAA 11,790,000
Water and Sewerage Revenue Bonds, Series 2007A,
4.500%, 1/01/39 - AMBAC Insured (UB)
1,560 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,602,214
Control Revenue Bonds, International Paper Company,
Series 2005A, 5.000%, 6/01/25
1,690 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,843,334
Alabama, Revenue Bonds, Baptist Medical Center,
Series 2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
8,255 University of South Alabama, Student Tuition Revenue Bonds, 3/14 at 100.00 Aaa 8,698,376
Series 2004, 5.000%, 3/15/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
28,105 Total Alabama 28,727,182
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.7% (1.1% OF TOTAL INVESTMENTS)
10,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 10,417,995
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8% (0.5% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
200 5.250%, 12/01/24 12/15 at 100.00 BBB 209,056
265 5.250%, 12/01/25 12/15 at 100.00 BBB 276,999
2,850 Maricopa County Industrial Development Authority, Arizona, 5/07 at 102.00 AAA 3,056,625
Multifamily Housing Revenue Bonds, Place Five and The
Greenery Apartments, Series 1996A, 6.625%, 1/01/27 (ETM)
1,695 Pima County Industrial Development Authority, Arizona, 7/07 at 100.50 AAA 1,742,155
Lease Obligation Revenue Refunding Bonds, Tucson Electric
Power Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,010 Total Arizona 5,284,835
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 1,025,440
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 19.7% (11.9% OF TOTAL INVESTMENTS)
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 6,073,449
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
4,000 6.000%, 5/01/15 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 4,470,360
5,500 5.375%, 5/01/21 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 5,990,655
California Educational Facilities Authority, Revenue Refunding
Bonds, Loyola Marymount University, Series 2001A:
3,255 0.000%, 10/01/23 - MBIA Insured No Opt. Call Aaa 1,603,185
5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call Aaa 2,769,066
7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call Aaa 3,409,769
6,240 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 6,445,670
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
2,500 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 2,585,275
Sutter Health, Series 2007A, 5.000%, 11/15/42
(WI/DD, Settling 5/01/07)
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,055 California Infrastructure Economic Development Bank, 10/14 at 100.00 AA $ 2,168,847
Infrastructure State Revolving Fund Revenue Bonds,
Series 2004, 5.000%, 10/01/21
20,500 California, General Obligation Bonds, Series 2005, 6/15 at 100.00 Aaa 21,606,795
5.000%, 6/01/33 - CIFG Insured (UB)
1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 1,013,660
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.000%, 7/01/39
2,500 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA+ 2,739,475
5.250%, 7/01/14
3,500 California, General Obligation Bonds, Series 2003, 5.000%, 2/01/32 8/13 at 100.00 A+ 3,635,590
8,000 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/25 2/14 at 100.00 A+ 8,500,720
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 2,056,693
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,500 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 2,656,000
Revenue Bonds, North Fontana Redevelopment Project,
Series 2005A, 5.000%, 10/01/23 - AMBAC Insured
30,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 16,883,398
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21 (ETM)
1,385 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 1,464,665
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
Perris, California, Special Tax Bonds, Community Facilities
District 2001-1, May Farms Improvement Area 4, Series 2005A:
1,420 5.000%, 9/01/25 9/15 at 102.00 N/R 1,444,580
435 5.100%, 9/01/30 9/15 at 102.00 N/R 445,331
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 261,068
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 286,943
2,220 San Diego Redevelopment Agency, California, Subordinate 9/14 at 100.00 AAA 2,372,914
Lien Tax Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/20 - XLCA Insured
960 San Francisco Redevelopment Agency, California, Hotel Tax 7/07 at 100.00 AAA 973,910
Revenue Bonds, Series 1994, 6.750%, 7/01/25 - FSA Insured
32,400 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call Aaa 10,026,828
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/34 - MBIA Insured UB)
6,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 6,490,920
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - MBIA Insured
2,000 Sonoma County Junior College District, California, General 8/13 at 100.00 AAA 2,151,360
Obligation Bonds, Series 2003A, 5.000%, 8/01/27
(Pre-refunded 8/01/13) - FSA Insured
3,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 AAA 3,130,200
Bonds, Turlock Irrigation District, Series 2004A,
5.000%, 1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
162,990 Total California 123,657,326
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.3% (1.4% OF TOTAL INVESTMENTS)
1,700 Centennial Water and Sanitation District, Colorado, Water 12/14 at 100.00 AAA 1,813,679
and Sewerage Revenue Bonds, Series 2004,
5.000%, 12/01/22 - FGIC Insured
Colorado Health Facilities Authority, Revenue Bonds, Evangelical
Lutheran Good Samaritan Society, Series 2005:
1,745 5.250%, 6/01/23 6/16 at 100.00 A- 1,835,670
475 5.000%, 6/01/29 6/16 at 100.00 A- 487,364
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 408,948
Valley Health Care, Series 2005F, 5.000%, 3/01/25
120 Colorado Housing Finance Authority, Single Family Program 6/07 at 104.50 Aa2 123,490
Senior Bonds, Series 1995D, 7.375%, 6/01/26
(Alternative Minimum Tax)
400 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 443,528
Bonds, Series 1991D, 7.750%, 11/15/13
(Alternative Minimum Tax)
29
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 6,925 Denver Convention Center Hotel Authority, Colorado, 11/16 at 100.00 AAA $ 7,432,187
Senior Revenue Bonds, Convention Center Hotel,
Series 2006, 5.125%, 12/01/25 - XLCA Insured
1,700 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/07 at 102.00 AAA 1,734,255
Bonds, Boston Lofts Project, Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,465 Total Colorado 14,279,121
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AAA 5,298,900
Purpose Bonds, Series 2003B, 5.000%, 1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.2% (1.4% OF TOTAL INVESTMENTS)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
11,720 0.000%, 4/01/27 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 39.61 AAA 3,994,762
13,780 0.000%, 4/01/28 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 37.21 AAA 4,412,632
15,855 0.000%, 4/01/29 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 35.07 AAA 4,784,722
1,000 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 980,580
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 4.500%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
42,355 Total District of Columbia 14,172,696
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.3% (2.0% OF TOTAL INVESTMENTS)
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 4,374,412
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/07 at 101.00 AAA 5,106,350
5.750%, 10/01/18 - MBIA Insured (Alternative Minimum Tax)
2,500 Escambia County Health Facilities Authority, Florida, Health 10/08 at 101.00 BBB+ 2,545,150
Facility Revenue Refunding Bonds, Baptist Hospital and
Baptist Manor, Series 1998, 5.125%, 10/01/19
560 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 575,333
Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 -
FSA Insured (Alternative Minimum Tax)
3,600 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 3,905,280
Exempt Facilities Remarketed Revenue Bonds, National
Gypsum Company, Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 AA 1,838,703
Development District, Special Assessment Bonds,
Commercial Project, Series 2002A, 5.625%, 5/01/32 -
RAAI Insured
2,455 South Miami Florida Health Facilities Authority, Hospital 8/17 at 100.00 AA- 2,521,432
Revenue, Baptist Health System Obligation Group,
Series 2007, 5.000%, 8/15/42 (WI/DD, Settling 5/16/07)
------------------------------------------------------------------------------------------------------------------------------------
20,045 Total Florida 20,866,660
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
500 Chatham County Hospital Authority, Savannah, Georgia, 1/14 at 100.00 BBB+ 522,880
Hospital Revenue Bonds, Memorial Health University
Medical Center Inc., Series 2004A, 5.375%, 1/01/26
10 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 10,880
Revenue Bonds, Series 2003A, 5.250%, 11/01/15
(Pre-refunded 11/01/13) - MBIA Insured
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
3,405 5.250%, 11/01/15 - MBIA Insured 11/13 at 100.00 AAA 3,693,642
3,365 5.000%, 11/01/18 - MBIA Insured 11/13 at 100.00 AAA 3,578,778
2,235 Richmond County Development Authority, Georgia, Revenue 12/14 at 100.00 AAA 2,360,227
Bonds, Medical College of Georgia, Cancer Research Center
Project, Series 2004A, 5.000%, 12/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,515 Total Georgia 10,166,407
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.9% (0.5% OF TOTAL INVESTMENTS)
280 Idaho Housing Agency, Senior Lien Single Family Mortgage 7/07 at 100.00 Aaa 285,522
Bonds, Series 1995F, 6.450%, 7/01/27 (Alternative
Minimum Tax)
3,160 Idaho Housing and Finance Association, GNMA Housing 3/12 at 105.00 Aaa 3,579,206
Revenue Refunding Bonds, Wedgewood Terrace Project,
Series 2002A-1, 7.250%, 3/20/37
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO (continued)
$ 280 Idaho Housing and Finance Association, Single Family 7/07 at 101.00 Aaa $ 285,628
Mortgage Bonds, Series 1996G, 6.350%, 7/01/26
(Alternative Minimum Tax)
260 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 Aa2 264,776
Mortgage Bonds, Series 2000B, 6.250%, 7/01/22
(Alternative Minimum Tax)
465 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aaa 472,696
Mortgage Bonds, Series 2000E, 5.950%, 7/01/20
(Alternative Minimum Tax)
500 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 515,790
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
4,945 Total Idaho 5,403,618
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.8% (10.2% OF TOTAL INVESTMENTS)
5,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 2,823,800
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
17,700 Chicago Greater Metropolitan Area Sanitary District, Illinois, 12/16 at 100.00 AAA 19,385,217
General Obligation Bonds, Series 2006, 5.000%, 12/01/35 (UB)
22,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AAA 10,579,636
Series 1999, 0.000%, 1/01/25 - FGIC Insured
1,585 Chicago, Illinois, General Obligation Bonds, Series 1995A-1, 1/08 at 100.00 AAA 1,596,364
5.125%, 1/01/25 - AMBAC Insured
620 Chicago, Illinois, General Obligation Refunding Bonds, 7/08 at 102.00 AAA 642,345
Series 1998, 5.250%, 1/01/20 - FGIC Insured
Chicago, Illinois, General Obligation Refunding Bonds, Series 1998:
120 5.250%, 1/01/20 (Pre-refunded 7/01/08) - FGIC Insured 7/08 at 102.00 AAA 124,522
260 5.250%, 1/01/20 (Pre-refunded 7/01/08) - FGIC Insured 7/08 at 102.00 AAA 269,797
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 6/09 at 102.00 Aaa 1,214,856
Revenue Bonds, Bryn Mawr-Belle Shores Project, Series 1997,
5.800%, 6/01/23 (Alternative Minimum Tax)
3,145 Chicago, Illinois, Tax Increment Allocation Bonds, Read-Dunning 7/07 at 102.00 N/R 3,215,102
Redevelopment Project, Series 1996B, 7.250%, 1/01/14
3,105 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 7/07 at 102.00 N/R 3,175,484
Drainage and Ship Canal Redevelopment Project, Series 1997A,
7.750%, 1/01/14
4,865 Cook County Community Consolidated School District 15, No Opt. Call Aaa 2,740,260
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured (ETM)
6,190 Cook County Community High School District 219, Niles No Opt. Call Aaa 3,495,864
Township, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - MBIA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,000 5.250%, 11/15/14 5/14 at 100.00 A 2,126,840
4,420 5.250%, 11/15/15 5/14 at 100.00 A 4,675,432
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 404,132
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 1,041,210
Medical Center, Series 2002, 5.500%, 5/15/32
3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- 3,274,440
Hospital, Series 2003, 6.000%, 7/01/33
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A+ 3,402,480
Lutheran General Health System, Series 1993C, 6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance Bonds,
Series 2000A:
500 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 504,360
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,275,590
11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AAA 13,633,508
Series 2001, 6.000%, 11/01/26 - FGIC Insured
2,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 2,147,800
Series 2002, 5.500%, 2/01/18 - FGIC Insured
31
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Lake County Community Unit School District 60, Waukegan,
Illinois, General Obligation Refunding Bonds, Series 2001B:
$ 3,230 0.000%, 11/01/19 - FSA Insured No Opt. Call Aaa $ 1,918,555
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aaa 940,157
4,020 Lake, Cook, Kane and McHenry Counties Community Unit No Opt. Call AAA 4,526,842
School District 220, Barrington, Illinois, School Refunding
Bonds, Series 2002, 5.250%, 12/01/20 - FSA Insured
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
855 5.250%, 1/01/25 1/16 at 100.00 AA- 908,446
1,750 5.250%, 1/01/30 1/16 at 100.00 AA- 1,859,393
17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call Aaa 9,600,037
District 158, Huntley, Illinois, General Obligation Bonds,
Series 2003, 0.000%, 1/01/22 - FGIC Insured
2,910 McHenry County Community High School District 154, No Opt. Call Aaa 1,624,595
Marengo, Illinois, Capital Appreciation School Bonds,
Series 2001, 0.000%, 1/01/21 - FGIC Insured
2,540 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,653,513
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
129,985 Total Illinois 105,780,577
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.6% (1.6% OF TOTAL INVESTMENTS)
1,000 Ball State University, Indiana, Student Fee Revenue Bonds, 1/12 at 100.00 AAA 1,081,550
Series 2002K, 5.750%, 7/01/20 - FGIC Insured
3,500 Indiana Bond Bank, Special Program Bonds, East Chicago 2/10 at 101.00 AAA 3,753,015
Facilities Building Corporation, Series 2000A, 6.125%, 2/01/25
(Pre-refunded 2/01/10) - AMBAC Insured
Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series 2000:
805 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA (4) 850,563
4,195 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA (4) 4,432,437
Indiana University, Student Fee Revenue Bonds, Series 2004P:
2,750 5.000%, 8/01/22 - AMBAC Insured 8/14 at 100.00 AAA 2,899,353
1,600 5.000%, 8/01/24 - AMBAC Insured 8/14 at 100.00 AAA 1,682,784
1,550 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BBB 1,593,261
Madison Center Inc., Series 2005, 5.250%, 2/15/23
------------------------------------------------------------------------------------------------------------------------------------
15,400 Total Indiana 16,292,963
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.3% (2.0% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,128,280
Medical Center, Series 2000, 6.250%, 7/01/25
8,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA 8,287,360
Iowa Health System, Series 1998A, 5.125%, 1/01/28
(Pre-refunded 7/01/08) - MBIA Insured
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 8,312,080
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
2,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 2,118,320
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
20,000 Total Iowa 20,846,040
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
130 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 132,516
Single Family Mortgage Revenue Refunding Bonds,
Series 1994A-1, 7.900%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.3% (3.8% OF TOTAL INVESTMENTS)
465 Bossier Public Trust Financing Authority, Louisiana, 8/07 at 100.00 AAA 472,845
Single Family Mortgage Revenue Refunding Bonds,
Series 1995B, 6.125%, 8/01/28
2,610 East Baton Rouge Parish Mortgage Finance Authority, 10/07 at 101.00 Aaa 2,635,500
Louisiana, GNMA/FNMA Mortgage-Backed Securities
Program Single Family Mortgage Revenue Bonds,
Series 1994C, 6.350%, 10/01/28 (Alternative Minimum Tax)
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 3,230 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA $ 3,483,006
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/21 (Pre-refunded 12/01/12) - AMBAC Insured
4,350 Louisiana Citizens Property Insurance Corporation, Assessment 6/16 at 100.00 AAA 4,618,917
Revenue Bonds, Series 2006, 5.000%, 6/01/22 - AMBAC Insured
4,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 4,204,000
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 2006:
4,560 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aaa 4,485,854
1,365 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aaa 1,342,805
Louisiana State, Gasoline and Fuel Tax Revenue Bonds, Series 2006:
540 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 Aaa 553,721
14,000 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 Aaa 14,355,740
705 New Orleans Home Mortgage Authority, Louisiana, 6/07 at 100.00 Aaa 706,241
GNMA/FNMA Single Family Mortgage Revenue Bonds,
Series 1995A, 6.300%, 6/01/28 (Alternative Minimum Tax)
3,005 Orleans Levee District, Louisiana, Levee District General 6/07 at 102.50 AAA 3,084,602
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
38,830 Total Louisiana 39,943,231
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 2,033,652
Revenue Bonds, Series 2006A, 5.250%, 9/01/26 - XLCA Insured
1,205 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 1,282,301
Revenue Refunding Bonds, University of Maryland College
Park Projects, Series 2006, 5.000%, 6/01/28 - CIFG Insured
1,390 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A1 1,482,129
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.250%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Maryland 4,798,082
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.8% (4.1% OF TOTAL INVESTMENTS)
2,455 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 2,724,019
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
1,935 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,970,120
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB 1,072,270
Hampshire College, Series 2004, 5.700%, 10/01/34
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 AA 9,865,052
Revenue Bonds, Berkshire Health System, Series 2001E,
5.700%, 10/01/25 - RAAI Insured
1,100 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 BBB 1,130,096
Revenue Bonds, Caritas Christi Obligated Group, Series 1999A,
5.625%, 7/01/20
2,750 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 2,871,825
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 - FGIC Insured
1,325 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 1,345,776
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
1,100 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 Aaa 1,047,189
Bonds, Series 2007, Residual Trust 7039, 4.500%, 8/01/46 -
FSA Insured (IF)
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
11,400 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 12,256,368
1,850 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 1,988,972
Massachusetts, Special Obligation Dedicated Tax Revenue Bonds,
Series 2004:
2,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,445,323
4,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 4,347,240
------------------------------------------------------------------------------------------------------------------------------------
40,340 Total Massachusetts 43,064,250
------------------------------------------------------------------------------------------------------------------------------------
33
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7% (2.2% OF TOTAL INVESTMENTS)
Grand Rapids and Kent County Joint Building Authority, Michigan,
Limited Tax General Obligation Bonds, Devos Place Project,
Series 2001:
$ 7,660 0.000%, 12/01/21 No Opt. Call AAA $ 4,130,119
7,955 0.000%, 12/01/22 No Opt. Call AAA 4,092,609
8,260 0.000%, 12/01/23 No Opt. Call AAA 4,052,273
8,575 0.000%, 12/01/24 No Opt. Call AAA 4,009,327
1,200 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,322,688
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
2,000 Michigan State Hospital Finance Authority, Revenue Refunding 8/07 at 100.00 BB- 2,001,680
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.375%, 8/15/09
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 BBB- 359,628
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
3,270 Romulus Community Schools, Wayne County, Michigan, 5/13 at 100.00 AA 3,434,056
General Obligation Bonds, Series 2003, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
39,260 Total Michigan 23,402,380
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.2% (2.6% OF TOTAL INVESTMENTS)
8,165 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A- 8,379,495
Allete Inc., Series 2004, 4.950%, 7/01/22
Minneapolis-St. Paul Housing and Redevelopment Authority,
Minnesota, Revenue Bonds, HealthPartners Inc., Series 2003:
1,000 6.000%, 12/01/18 12/13 at 100.00 Baa1 1,090,280
1,050 5.875%, 12/01/29 12/13 at 100.00 Baa1 1,136,741
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,527,680
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 (Pre-refunded 1/01/11) - FGIC Insured
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,159,600
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 (Pre-refunded 1/01/11) - FGIC Insured
1,375 Minnesota Higher Education Facilities Authority, St. John's 10/15 at 100.00 A2 1,455,781
University Revenue Bonds, Series 2005-6G, 5.000%, 10/01/22
310 Minnesota Housing Finance Agency, Rental Housing Bonds, 8/07 at 100.00 AAA 310,549
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
610 Minnesota Housing Finance Agency, Single Family Mortgage 7/07 at 101.00 AA+ 611,891
Bonds, Series 1996G, 6.250%, 7/01/26 (Alternative Minimum Tax)
910 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 941,077
Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
1,135 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 1,145,294
Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31
(Alternative Minimum Tax)
1,000 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,066,830
Series 2004A, 5.250%, 10/01/19
2,000 Southern Minnesota Municipal Power Agency, Power Supply 7/07 at 100.00 AAA 2,079,580
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11 (ETM)
1,620 St. Louis Park, Minnesota, Revenue Bonds, Park Nicollet 7/14 at 100.00 A 1,719,241
Health Services, Series 2003B, 5.500%, 7/01/25
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,106,500
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
25,575 Total Minnesota 26,730,539
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 2,556,131
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 5.1% (3.1% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 2,078,700
Revenue Bonds, Lutheran Senior Services - Heisinger Project,
Series 2004, 5.250%, 2/01/24
200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 205,670
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
$ 2,885 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ $ 3,095,865
Facilities Revenue Bonds, Freeman Health System, Series 2004,
5.500%, 2/15/24
9,000 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 AAA 9,576,630
Improvement Projects, Series 2003B, 5.250%, 9/01/17 -
FGIC Insured
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
780 6.000%, 6/01/20 No Opt. Call BBB+ 897,070
1,225 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,266,087
2,500 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 2,633,800
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
1,200 Missouri Health and Educational Facilities Authority, Revenue 2/14 at 100.00 BBB+ 1,240,908
Bonds, Lake Regional Health System, Series 2003,
5.125%, 2/15/18
1,250 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 1,320,888
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/21 - AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
1,250 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 1,334,300
2,000 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 2,131,760
4,095 Missouri, General Obligation Refunding Bonds, Fourth State 10/12 at 100.00 AAA 4,336,605
Building, Series 2002A, 5.000%, 10/01/18
2,200 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 2,321,286
Program, Series 2001A, 5.125%, 7/01/22 (Pre-refunded 7/01/11) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,585 Total Missouri 32,439,569
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.2% (0.7% OF TOTAL INVESTMENTS)
1,470 Municipal Energy Agency of Nebraska, Power Supply System 4/13 at 100.00 AAA 1,567,549
Revenue Bonds, Series 2003A, 5.250%, 4/01/23 - FSA Insured
4,670 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 4,930,586
System Revenue Bonds, Nebraska City 2, Series 2006A,
5.000%, 2/01/49 - AMBAC Insured (UB)
1,000 University of Nebraska, Lincoln, Student Fees and Facilities 11/13 at 100.00 Aa2 1,043,290
Revenue Bonds, Series 2003B, 5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
7,140 Total Nebraska 7,541,425
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.4% (2.1% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,284,544
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) -
MBIA Insured
5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 6,092,573
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
4,000 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 AAA 4,236,160
Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,205 Total Nevada 21,613,277
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.7% (3.4% OF TOTAL INVESTMENTS)
5,615 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 6,031,577
Revenue Bonds, Series 2003, 5.125%, 12/15/20 - FSA Insured
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
1,325 5.250%, 9/01/24 9/15 at 100.00 AA- 1,435,002
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,080,820
1,080 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 AAA 1,054,415
Rowan College, Series 2007B, 4.250%, 7/01/34 - FGIC Insured
4,310 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 4,409,389
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 -
AMBAC Insured (Alternative Minimum Tax)
3,400 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,733,506
System Bonds, Series 2003C, 5.500%, 6/15/22
(Pre-refunded 6/15/13)
35
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 3,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA $ 3,305,040
System Bonds, Series 2005C, 5.250%, 6/15/15 -
MBIA Insured (ETM)
3,425 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 3,827,198
System Bonds, Series 2006A, 5.250%, 12/15/20
4,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 4,251,400
5.000%, 1/01/19 - FGIC Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,183,060
5.000%, 1/01/24 - FSA Insured
3,380 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,455,205
Facility Subordinate Lease Revenue Bonds, Ogden Martin
Systems of Union Inc., Series 1998A, 5.350%, 6/01/23 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
33,535 Total New Jersey 35,766,612
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.5% (10.0% OF TOTAL INVESTMENTS)
5,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 5,270,500
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/28 - FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Marymount Manhattan College, Series 1999:
1,975 6.375%, 7/01/16 - RAAI Insured 7/09 at 101.00 AA 2,091,229
2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 AA 2,205,091
1,500 Dormitory Authority of the State of New York, State and 7/14 at 100.00 AA- 1,612,875
Local Appropriation Lease Bonds, Upstate Community
Colleges, Series 2004B, 5.250%, 7/01/19
1,250 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 1,310,763
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/30
5,030 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 4,960,838
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
755 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 774,434
Revenue Bonds, Series 1998A, 5.125%, 12/01/22
(Pre-refunded 6/01/08) - FSA Insured
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 Aaa 3,196,446
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
1,000 Metropolitan Transportation Authority, New York, Transportation No Opt. Call A 1,084,270
Revenue Bonds, Series 2005C, 5.000%, 11/15/16
4,600 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 4,839,844
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2004B:
6,875 5.000%, 8/01/23 8/13 at 100.00 AAA 7,247,694
7,260 5.000%, 8/01/24 8/13 at 100.00 AAA 7,653,565
2,500 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 2,652,600
Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/22
35 New York City, New York, General Obligation Bonds, No Opt. Call AA- 35,237
Fiscal Series 1996J, 5.500%, 2/15/26
4,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 4,298,880
Fiscal Series 2004C, 5.250%, 8/15/20
2,150 New York City, New York, General Obligation Bonds, 3/15 at 100.00 AA- 2,261,521
Fiscal Series 2005J, 5.000%, 3/01/25
5,000 New York City, New York, General Obligation Bonds, 4/15 at 100.00 AA- 5,268,650
Fiscal Series 2005M, 5.000%, 4/01/24
7,420 New York Convention Center Development Corporation, 11/15 at 100.00 AAA 7,791,148
Hotel Unit Fee Revenue Bonds, Series 2005,
5.000%, 11/15/44 - AMBAC Insured (UB)
New York State Municipal Bond Bank Agency, Special School
Purpose Revenue Bonds, Series 2003C:
6,000 5.250%, 6/01/20 6/13 at 100.00 A+ 6,443,280
5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,424,207
New York State Thruway Authority, Highway and Bridge
Trust Fund Bonds, Second Generation, Series 2005B:
3,770 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 4,033,221
2,835 5.000%, 4/01/24 - AMBAC Insured 10/15 at 100.00 AAA 3,022,308
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
$ 3,400 5.500%, 6/01/16 6/10 at 100.00 AA- $ 3,565,172
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,172,380
6,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 6,396,540
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/27 - XLCA Insured
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 7,244,438
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 - MBIA Insured (Alternative Minimum Tax)
1,000 Rensselaer County Industrial Development Agency, New York, 3/16 at 100.00 A 1,059,630
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
98,085 Total New York 103,916,761
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.5% (0.9% OF TOTAL INVESTMENTS)
2,550 Cumberland County, North Carolina, Hospital Facility Revenue 10/09 at 101.00 A- (4) 2,664,240
Bonds, Cumberland County Hospital System Inc., Cape Fear
Valley Health System, Series 1999, 5.250%, 10/01/19
(Pre-refunded 10/01/09)
2,480 Durham Urban Redevelopment Authority, North Carolina, 8/07 at 105.00 AAA 2,609,704
FHA-Insured Mortgage Loan Revenue Bonds, Durham Hosiery
Mill, Series 1987, 7.500%, 8/01/29 (Alternative Minimum Tax)
535 North Carolina Housing Finance Agency, Single Family Revenue 9/07 at 101.00 AA 548,241
Bonds, Series 1996JJ, 6.450%, 9/01/27 (Alternative Minimum Tax)
North Carolina Infrastructure Finance Corporation, Certificates
of Participation, Correctional Facilities, Series 2004A:
1,250 5.000%, 2/01/21 2/14 at 100.00 AA+ 1,316,825
2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,571,284
------------------------------------------------------------------------------------------------------------------------------------
9,260 Total North Carolina 9,710,294
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,245 North Dakota Housing Finance Agency, Home Mortgage 7/10 at 100.00 Aa3 1,268,095
Finance Program Bonds, Series 2000C, 6.150%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.0% (2.4% OF TOTAL INVESTMENTS)
3,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 3,294,000
Obligation Bonds, Series 2004, 5.250%, 12/01/24
(Pre-refunded 12/01/14) - FSA Insured
Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth
Corporation, Series 2003C:
2,330 5.250%, 5/15/17 - MBIA Insured 5/13 at 100.00 AAA 2,488,510
4,105 5.250%, 5/15/18 - MBIA Insured 5/13 at 100.00 AAA 4,375,889
2,000 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 1/08 at 102.00 Aa2 2,033,560
Mortgage Revenue Bonds, Courtyards of Kettering,
Series 1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax)
6,050 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,151,277
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
6,400 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 6,618,432
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,885 Total Ohio 24,961,668
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5% (0.9% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital
Revenue Bonds, Series 2005:
500 5.375%, 9/01/29 9/16 at 100.00 BBB- 527,750
750 5.375%, 9/01/36 9/16 at 100.00 BBB- 787,853
3,000 Oklahoma Municipal Power Authority, Power Supply System No Opt. Call Aaa 2,954,610
Revenue Bonds, Series 2007, Drivers 1742, 4.500%, 1/01/47 -
FGIC Insured (IF)
5,000 Oklahoma State Student Loan Authority, Senior Lien Revenue 6/11 at 102.00 AAA 5,274,600
Bonds, Series 2001A-1, 5.625%, 6/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,250 Total Oklahoma 9,544,813
------------------------------------------------------------------------------------------------------------------------------------
37
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.4% (0.8% OF TOTAL INVESTMENTS)
$ 7,860 Multnomah County Hospital Facilities Authority, Oregon, 10/14 at 100.00 AA $ 8,581,155
Revenue Bonds, Sisters of Providence Health System,
Series 2004, 5.500%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6% (1.6% OF TOTAL INVESTMENTS)
3,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,735,060
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 -
MBIA Insured
1,500 Annville-Cleona School District, Lebanon County, Pennsylvania, 3/15 at 100.00 Aaa 1,723,395
General Obligation Bonds, Series 2005, 6.000%, 3/01/28 -
FSA Insured
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 503,655
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
1,225 Central Dauphin School District, Dauphin County, Pennsylvania, 2/16 at 100.00 AAA 1,488,289
General Obligation Bonds, Series 2006, 6.750%, 2/01/24
(Pre-refunded 2/01/16) - MBIA Insured
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AAA 1,227,324
Local Government Revenue Bonds, Series 1997B,
5.700%, 7/01/27 - AMBAC Insured
5,850 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 5,828,004
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
1,000 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 1,059,690
Series 2005, 5.000%, 9/01/29
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 1,121,453
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,675 Total Pennsylvania 16,686,870
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.7% (1.6% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed Bonds, Series 2002A:
10,000 6.000%, 6/01/23 6/12 at 100.00 BBB 10,659,300
6,000 6.125%, 6/01/32 6/12 at 100.00 BBB 6,418,320
------------------------------------------------------------------------------------------------------------------------------------
16,000 Total Rhode Island 17,077,620
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.7% (5.9% OF TOTAL INVESTMENTS)
14,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 14,738,918
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
15,445 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 17,230,901
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17
(Pre-refunded 12/01/12)
2,500 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AAA 2,620,000
Refunding Bonds, Series 2003A, 5.000%, 5/01/25 -
AMBAC Insured
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/07 at 100.00 AAA 7,278,824
Revenue Bonds, Series 1991, 4.000%, 1/01/23 - MBIA Insured
6,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 6,354,840
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002A, 5.625%, 11/15/30
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
1,335 6.875%, 8/01/27 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 1,560,655
165 6.875%, 8/01/27 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 192,440
4,450 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,080,743
550 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 626,483
5,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 5,317,900
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
57,045 Total South Carolina 61,001,704
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ $ 3,409,568
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,591,545
Revenue Bonds, Series 1999D, 6.000%, 3/01/19 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,700 Total Tennessee 5,001,113
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 11.1% (6.7% OF TOTAL INVESTMENTS)
5,810 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 5,606,708
System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Baa2 5,841,650
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
10,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 10,766,100
Texas, Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
3,345 Fort Worth, Texas, Water and Sewerage Revenue Bonds, 2/12 at 100.00 AA (4) 3,622,869
Series 2001, 5.625%, 2/15/19 (Pre-refunded 2/15/12)
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/08 at 102.00 BBB 5,118,300
Disposal Revenue Bonds, Valero Refining and Marketing
Company Project, Series 1997, 5.600%, 12/01/31
(Alternative Minimum Tax)
Harris County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Memorial Hermann Healthcare System,
Series 2004A:
1,000 5.000%, 12/01/20 12/14 at 100.00 A+ 1,036,670
1,000 5.000%, 12/01/21 12/14 at 100.00 A+ 1,035,370
2,500 5.125%, 12/01/22 12/14 at 100.00 A+ 2,610,000
2,800 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,951,116
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 -
MBIA Insured
4,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 4,316,880
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 4,884,779
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/25 - AMBAC Insured
725 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 AAA 761,533
Unlimited Tax General Obligation Refunding Bonds,
Series 2001, 5.250%, 8/15/26
5,460 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 Aaa 5,791,586
Unlimited Tax General Obligation Refunding Bonds,
Series 2001, 5.250%, 8/15/26 (Pre-refunded 8/15/11)
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series 2005:
800 5.250%, 8/15/21 No Opt. Call BBB- 833,968
1,000 5.125%, 8/15/26 No Opt. Call BBB- 1,029,160
2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,108,260
Unlimited Tax Schoolhouse Bonds, Series 2001A,
5.250%, 2/15/22 (Pre-refunded 2/15/11)
1,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Baa2 1,016,140
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
3,935 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,128,877
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26 (Pre-refunded 2/01/11)
3,900 Texas, General Obligation Bonds, Veterans Housing Assistance 12/11 at 101.00 Aa1 4,038,411
Program Fund II, Series 2001C-1, 5.200%, 12/01/21
(Alternative Minimum Tax)
2,905 Weatherford Independent School District, Parker County, Texas, 2/11 at 44.73 AAA 1,101,286
Unlimited Tax School Building and Refunding Bonds,
Series 2001, 0.000%, 2/15/25
4,040 Weatherford Independent School District, Parker County, Texas, 2/11 at 44.73 Aaa 1,565,540
Unlimited Tax School Building and Refunding Bonds,
Series 2001, 0.000%, 2/15/25 (Pre-refunded 2/15/11)
------------------------------------------------------------------------------------------------------------------------------------
77,180 Total Texas 70,165,203
------------------------------------------------------------------------------------------------------------------------------------
39
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.0% OF TOTAL INVESTMENTS)
$ 230 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101.50 AAA $ 233,020
Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax)
130 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 132,023
Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
360 Total Utah 365,043
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.3% (5.6% OF TOTAL INVESTMENTS)
15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 15,911,548
Consolidated System Revenue Bonds, Series 2002A,
5.450%, 7/01/37 - AMBAC Insured (Alternative Minimum Tax)
7,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,189,325
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,430,350
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
10,080 King County School District 401, Highline, Washington, General 6/12 at 100.00 AAA 10,902,226
Obligation Bonds, Series 2002, 5.500%, 12/01/16 - FGIC Insured
6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 9/12 at 100.00 AAA 7,396,412
5.250%, 9/01/22 - FGIC Insured
2,820 Skagit County Public Hospital District 1, Washington, General 12/14 at 100.00 Aaa 3,086,913
Obligation Bonds, Series 2004A, 5.375%, 12/01/19 - MBIA Insured
2,500 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 2,625,250
Bonds, Series 2001, 5.125%, 12/01/22 - MBIA Insured
4,905 Washington, Various Purpose General Obligation Bonds, 1/09 at 100.00 Aa1 5,001,089
Series 1999B, 5.000%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
54,770 Total Washington 58,543,113
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.5% (1.5% OF TOTAL INVESTMENTS)
7,000 Harrison County Commission, West Virginia, Solid Waste 5/07 at 100.00 AAA 7,090,370
Disposal Revenue Bonds, Potomac Edison Company - Harrison
Station, Series 1993B, 6.250%, 5/01/23 - AMBAC Insured
(Alternative Minimum Tax)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,260,550
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue 4/09 at 101.00 AAA 1,035,310
Bonds, West Penn Power Company Pleasants Station Project,
Series 1999E, 5.500%, 4/01/29 - AMBAC Insured (Alternative
Minimum Tax)
2,355 West Virginia University, Unlimited Tax General Revenue Bonds, 10/14 at 100.00 AAA 2,491,661
Student Fees, Series 2004C, 5.000%, 10/01/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,355 Total West Virginia 15,877,891
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.5% (1.5% OF TOTAL INVESTMENTS)
5,105 Wisconsin Health and Educational Facilities Authority, Revenue 2/09 at 101.00 BBB+ 5,259,579
Bonds, Aurora Health Care Inc., Series 1999A, 5.600%, 2/15/29
315 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 320,831
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 1,084,050
Bonds, Fort Healthcare Inc., Series 2004, 5.750%, 5/01/24
3,215 Wisconsin Health and Educational Facilities Authority, Revenue 8/07 at 102.00 AAA 3,282,965
Bonds, Marshfield Clinic, Series 1997, 5.625%, 2/15/17 -
MBIA Insured
5,300 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AAA 5,506,593
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,935 Total Wisconsin 15,454,018
------------------------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 2,750 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB- $ 2,922,094
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,119,205 Total Investments (cost $984,220,786) - 165.3% 1,041,285,227
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (11.9)% (74,965,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 10,697,589
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.1)% (347,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 630,017,816
====================================================================================================================
FUTURES CONTRACTS OUTSTANDING AT APRIL 30, 2007:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
COUNTERPARTY POSITION CONTRACTS EXPIRATION APRIL 30, 2007 (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------------
U.S. 3-Year Treasury Bond Short (255) 6/07 $(28,496,250) $(42,601)
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) 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. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
41
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.4% (2.0% OF TOTAL INVESTMENTS)
$ 5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 5,496,647
Bonds, Series 2001, 5.750%, 12/01/16
2,395 Alabama Housing Finance Authority, FNMA Multifamily Housing 2/11 at 102.00 AAA 2,508,403
Revenue Bonds, South Bay Apartments, Series 2000K,
5.950%, 2/01/33 (Alternative Minimum Tax)
11,895 Alabama Special Care Facilities Financing Authority, Birmingham, 5/07 at 100.50 Aaa 11,964,824
Hospital Revenue Bonds, Daughters of Charity National
Health System - Providence Hospital and St. Vincent's Hospital,
Series 1995, 5.000%, 11/01/25 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,440 Total Alabama 19,969,874
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9% (0.5% OF TOTAL INVESTMENTS)
1,665 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AAA 1,744,637
Bonds, Series 2005A, 5.000%, 12/01/30 - FGIC Insured
3,065 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA 3,275,657
Bonds, Series 2003E, 5.250%, 12/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,730 Total Alaska 5,020,294
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.6% (1.0% OF TOTAL INVESTMENTS)
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,213,750
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/31 - MBIA Insured
4,100 Salt River Project Agricultural Improvement and Power District, 12/13 at 100.00 AAA 4,339,071
Arizona, Electric System Revenue Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,100 Total Arizona 9,552,821
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
14 Jacksonville Residential Housing Facilities Board, Arkansas, 7/07 at 100.00 Aaa 14,063
FNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1993A-2,
7.900%, 1/01/11
65 Lonoke County Residential Housing Facilities Board, Arkansas, 10/07 at 101.00 Aaa 65,578
FNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
79 Total Arkansas 79,641
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 18.2% (10.9% OF TOTAL INVESTMENTS)
1,800 California Department of Water Resources, Power Supply 5/12 at 101.00 AAA 1,965,780
Revenue Bonds, Series 2002A, 5.500%, 5/01/14 -
AMBAC Insured
17,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 17,317,390
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
5,000 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 5,139,250
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
1,000 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 1,034,110
Sutter Health, Series 2007A, 5.000%, 11/15/42
(WI/DD, Settling 5/01/07)
11,000 California Infrastructure Economic Development Bank, 1/28 at 100.00 AAA 12,329,460
First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A. 5.000%, 7/01/33 (Pre-refunded 1/01/28) -
AMBAC Insured (UB)
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,115,820
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
19,545 California State, General Obligation Bonds, Series 2005, 6/15 at 100.00 Aaa 20,600,235
5.000%, 6/01/33 - CIFG Insured (UB)
12,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/22 8/13 at 100.00 A+ 12,866,400
4,500 California, General Obligation Bonds, Series 2004, 5.100%, 2/01/34 2/09 at 100.00 A+ (4) 4,621,500
(Pre-refunded 2/01/09)
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 4,780 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA $ 3,689,634
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14 (ETM)
610 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 611,879
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.125%, 6/01/47
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,160,970
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
3,190 Hillsborough City School District, San Mateo County, California, No Opt. Call AAA 1,313,833
General Obligation Bonds, Series 2006B, 0.000%, 9/01/27
11,310 San Francisco Bay Area Rapid Transit District, California, 7/16 at 100.00 AAA 10,984,838
Sales Tax Revenue Bonds, Refunding Series 2006A,
4.250%, 7/01/31 - FSA Insured (UB)
31,300 San Joaquin Hills Transportation Corridor Agency, No Opt. Call Aaa 9,686,411
Orange County, California, Toll Road Revenue Refunding
Bonds, Residual Series 1997A, 0.000%, 1/15/34 -
MBIA Insured (UB)
1,945 South Gate Public Financing Authority, California, Water No Opt. Call AAA 2,123,862
Revenue Refunding Bonds, Series 1996A, 6.000%, 10/01/12 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
127,980 Total California 107,561,372
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.5% (3.2% OF TOTAL INVESTMENTS)
6,500 Adams 12 Five Star Schools, Adams County, Colorado, 12/15 at 100.00 AAA 6,772,870
General Obligation Bonds, Series 2005, 4.750%, 12/15/23 -
FSA Insured
2,000 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA (4) 2,118,520
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
(Pre-refunded 9/01/11)
500 Colorado Housing Finance Authority, Single Family Program 10/09 at 105.00 Aa2 538,680
Senior Bonds, Series 1999C-3, 6.750%, 10/01/21
3,040 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 3,370,813
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
Denver Convention Center Hotel Authority, Colorado, Senior
Revenue Bonds, Convention Center Hotel, Series 2003A:
2,940 5.000%, 12/01/20 (Pre-refunded 12/01/13) - XLCA Insured 12/13 at 100.00 AAA 3,160,618
10,000 5.000%, 12/01/33 (Pre-refunded 12/01/13) - XLCA Insured 12/13 at 100.00 AAA 10,750,400
4,345 El Paso County School District 20, Academy, Colorado, General 12/12 at 100.00 Aaa 4,645,283
Obligation Bonds, Series 2002, 5.250%, 12/15/17 -
FGIC Insured
755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 805,698
Obligation Bonds, Series 2004, 5.000%, 12/15/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,080 Total Colorado 32,162,882
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.3% (1.4% OF TOTAL INVESTMENTS)
5 District of Columbia, General Obligation Bonds, Series 1993E, 6/07 at 100.00 AAA 5,009
6.000%, 6/01/09 - CAPMAC Insured
1,200 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 1,202,268
Series 1993A, 6.000%, 6/01/07 - MBIA Insured
145 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 145,274
Series 1993A, 6.000%, 6/01/07 - MBIA Insured (ETM)
4,250 District of Columbia, Hospital Revenue Refunding Bonds, 8/07 at 101.00 AAA 4,341,545
Medlantic Healthcare Group, Series 1993A, 5.750%, 8/15/14 -
MBIA Insured (ETM)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
9,670 0.000%, 4/01/26 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 42.15 AAA 3,506,922
15,235 0.000%, 4/01/30 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 32.93 AAA 4,316,990
------------------------------------------------------------------------------------------------------------------------------------
30,505 Total District of Columbia 13,518,008
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.7% (3.4% OF TOTAL INVESTMENTS)
5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 5,199,950
Participation, Series 2003, 5.000%, 7/01/28 - MBIA Insured
5,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 AAA 5,343,300
Tampa International Airport, Series 2003A, 5.250%, 10/01/18 -
MBIA Insured (Alternative Minimum Tax)
43
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 5,000 Martin County Industrial Development Authority, Florida, 6/07 at 100.00 BB+ $ 5,050,800
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
1,380 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 1,448,351
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.850%, 7/01/20 - FSA Insured
(Alternative Minimum Tax)
3,500 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/15 at 100.00 AAA 3,661,350
Miami International Airport, Series 2005A, 5.000%, 10/01/37 -
XLCA Insured (Alternative Minimum Tax)
2,455 South Miami Florida Health Facilities Authority, Hospital 8/17 at 100.00 AA- 2,521,432
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42 (WI/DD, Settling 5/16/07)
9,500 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 10,223,710
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,835 Total Florida 33,448,893
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.5% (1.5% OF TOTAL INVESTMENTS)
4,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 4,898,784
Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,880 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call A+ 3,310,070
Bonds, Series 1992B, 8.250%, 1/01/11
5,500 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call AAA 6,307,125
Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Georgia 14,515,979
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,720 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call AA 3,975,341
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13
1,580 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aaa 1,699,164
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
5,300 Total Hawaii 5,674,505
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.6% (10.4% OF TOTAL INVESTMENTS)
4,000 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA 4,504,440
Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured
17,000 Chicago Greater Metropolitan Area Sanitary District, Illinois, 12/16 at 100.00 AAA 18,618,570
General Obligation Bonds, Series 2006, 5.000%, 12/01/35 (UB)
5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 5,715,224
5.125%, 1/01/26 - FSA Insured (Alternative Minimum Tax)
5,000 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 5,164,150
5.250%, 1/01/28 - FGIC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,751,580
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
Cook County School District 99, Cicero, Illinois, General Obligation
School Bonds, Series 1997:
1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call Aaa 1,848,621
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call Aaa 2,249,795
6,070 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 6,304,545
Mortgage Revenue Bonds, Greek American Nursing Home
Committee, Series 2000A, 7.600%, 4/20/40
1,385 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aaa 1,472,574
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/18 - AMBAC Insured
2,515 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 2,670,301
Memorial Hospital, Series 2004A, 5.250%, 8/15/34
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,170,400
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
4,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 4,164,840
Medical Center, Series 2002, 5.500%, 5/15/32
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Illinois Health Facilities Authority, Revenue Refunding Bonds,
Lutheran General Health System, Series 1993C:
$ 1,570 7.000%, 4/01/08 No Opt. Call A+ $ 1,610,396
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,727,815
675 Illinois Housing Development Authority, Multifamily Program 9/07 at 100.00 A+ 675,837
Bonds, Series 1994-5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly 5/07 at 100.00 A 3,453,478
Housing Revenue Bonds, Skyline Towers Apartments,
Series 1992B, 6.875%, 11/01/17
9,795 Lake, Cook, Kane and McHenry Counties Community Unit No Opt. Call AAA 10,991,067
School District 220, Barrington, Illinois, School Refunding
Bonds, Series 2002, 5.250%, 12/01/19 - FSA Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
9,500 0.000%, 6/15/24 - MBIA Insured 6/22 at 101.00 AAA 6,424,470
4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,742,893
36,040 0.000%, 6/15/40 - MBIA Insured No Opt. Call AAA 8,279,469
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,768,855
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
126,980 Total Illinois 103,309,320
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.2% (5.5% OF TOTAL INVESTMENTS)
Carmel Redevelopment Authority, Indiana, Lease Rent Revenue
Bonds, Series 2005:
1,950 0.000%, 2/01/24 No Opt. Call AA 907,238
2,705 0.000%, 2/01/25 No Opt. Call AA 1,194,014
3,965 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 AAA 4,179,982
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
1,500 Indiana Educational Facilities Authority, Revenue Bonds, 10/09 at 101.00 AAA 1,579,755
University of Indianapolis, Series 1999, 5.750%, 10/01/19 -
FSA Insured
22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 23,472,458
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA Insured
3,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 3,433,560
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
2,800 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,928,632
Community Hospitals of Indiana, Series 2005A,
5.000%, 5/01/35 - AMBAC Insured
4,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 4,194,240
Bonds, Series 2003A, 5.000%, 6/01/23 - FSA Insured
6,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 6,419,700
Bonds, Series 2003A, 5.000%, 6/01/24 (Pre-refunded 6/01/13) -
FSA Insured
420 Marion County Convention and Recreational Facilities Authority, 6/07 at 102.00 AAA 426,586
Indiana, Excise Tax Lease Rental Revenue Bonds, Series 1997A,
5.000%, 6/01/27 - MBIA Insured
5,000 Metropolitan School District Warren Township Vision 2005 1/11 at 100.00 AAA 5,313,700
School Building Corporation, Marion County, Indiana, First
Mortgage Bonds, Series 2000, 5.500%, 7/15/20
(Pre-refunded 1/15/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
53,340 Total Indiana 54,049,865
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.2% (0.0% OF TOTAL INVESTMENTS)
1,000 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BBB - 1,011,300
Care Initiatives Project, Series 2006A, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.8% (1.1% OF TOTAL INVESTMENTS)
2,000 Olathe, Kansas, Health Facilities Revenue Bonds, Olathe 9/10 at 100.00 AAA 2,102,280
Medical Center, Series 2000A, 5.500%, 9/01/25 -
AMBAC Insured
6,825 Sedgwick County Unified School District 259, Wichita, Kansas, 9/10 at 100.00 AA 6,562,101
General Obligation Bonds, Series 2000, 3.500%, 9/01/16
45
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS (continued)
$ 1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA $ 1,875,160
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,575 Total Kansas 10,539,541
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.1% (3.6% OF TOTAL INVESTMENTS)
3,070 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,310,473
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/20 (Pre-refunded 12/01/12) - AMBAC Insured
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,933,295
Community Development Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds, Sharlo Apartments,
Series 2002A, 6.500%, 6/20/37
5,150 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 5,405,389
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/32
3,280 Louisiana Public Facilities Authority, Revenue Bonds, Archdiocese 7/17 at 100.00 Aaa 3,178,714
of New Orleans, Series 2007, Drivers 1754, 4.500%, 7/01/37 -
CIFG Insured (IF)
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2006:
12,930 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aaa 12,719,758
3,390 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aaa 3,334,879
1,485 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, 5/16 at 100.00 Aaa 1,522,734
Series 2006, 4.750%, 5/01/39 - FSA Insured (UB)
4,195 Orleans Levee District, Louisiana, Levee District General 6/07 at 101.50 AAA 4,285,318
Obligation Bonds, Series 1986, 5.950%, 11/01/14 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
35,250 Total Louisiana 35,690,560
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 3.0% (1.8% OF TOTAL INVESTMENTS)
2,905 Maryland Community Development Administration, Housing 7/07 at 102.00 Aa2 2,965,046
Revenue Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Housing 7/07 at 102.00 Aa2 2,962,524
Revenue Bonds, Series 1997A, 6.000%, 7/01/39
(Alternative Minimum Tax)
50 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A3 52,818
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
2,210 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,268,565
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - MBIA Insured (UB)
6,800 Montgomery County Housing Opportunities Commission, 7/07 at 101.00 Aa2 6,953,272
Maryland, GNMA/FHA-Insured Multifamily Housing Revenue
Bonds, Series 1996B, 6.400%, 7/01/28
(Alternative Minimum Tax)
2,315 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,404,012
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.125%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,180 Total Maryland 17,606,237
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.7% (1.0% OF TOTAL INVESTMENTS)
3,585 Massachusetts Development Finance Agency, Revenue Bonds, 3/15 at 100.00 A 3,697,282
Curry College, Series 2005A, 5.000%, 3/01/35 - ACA Insured
5,000 Massachusetts Turnpike Authority, Metropolitan Highway 7/07 at 102.00 AAA 5,074,850
System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 -
MBIA Insured
1,000 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 Aaa 951,990
Bonds, Series 2007, Residual Trust 7039, 4.500%, 8/01/46 -
FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
9,585 Total Massachusetts 9,724,122
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.0% (4.2% OF TOTAL INVESTMENTS)
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 6,305,400
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA Insured
8,915 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/07 at 101.00 AAA 9,013,332
Bonds, Series 1997A, 5.000%, 7/01/27 - MBIA Insured
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 5,400 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 AAA $ 5,427,756
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
Hancock Hospital Finance Authority, Michigan, FHA-Insured
Mortgage Hospital Revenue Bonds, Portage Health System Inc.,
Series 1998:
105 4.625%, 8/01/18 (Pre-refunded 8/01/07) - MBIA Insured 8/07 at 100.00 AAA 105,223
4,400 5.450%, 8/01/47 (Pre-refunded 8/01/08) - MBIA Insured 8/08 at 100.00 AAA 4,492,224
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,241,400
Facilities Program, Series 2003II, 5.000%, 10/15/29 -
MBIA Insured
10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 10,533,915
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
------------------------------------------------------------------------------------------------------------------------------------
40,320 Total Michigan 41,119,250
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.3% (0.8% OF TOTAL INVESTMENTS)
825 Minneapolis-St. Paul Housing Finance Board, Minnesota, 11/07 at 102.00 AAA 835,007
FNMA/GNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Bonds, Series 1997,
5.800%, 11/01/30 (Alternative Minimum Tax)
3,500 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,686,200
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 (Pre-refunded 1/01/11) - FGIC Insured
2,875 Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, 8/16 at 100.00 N/R 2,914,129
Regions Hospital Parking Ramp Project, Series 2007-1,
5.000%, 8/01/36
------------------------------------------------------------------------------------------------------------------------------------
7,200 Total Minnesota 7,435,336
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.3% (0.8% OF TOTAL INVESTMENTS)
1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,936,463
Revenue Bonds, Baptist Memorial Healthcare,
Series 2004B-1, 5.000%, 9/01/24
5,180 Mississippi, General Obligation Refunding Bonds, No Opt. Call AA 5,907,583
Series 2002A, 5.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
7,055 Total Mississippi 7,844,046
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.1% (0.6% OF TOTAL INVESTMENTS)
1,000 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 1,017,800
Missouri, Health Facilities Revenue Bonds, Southeast
Missouri Hospital Association, Series 2007, 5.000%, 6/01/36
3,000 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 3,160,560
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
2,000 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 2,100,680
Program, Series 2001A, 5.000%, 7/01/26 (Pre-refunded 7/01/11) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total Missouri 6,279,040
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6% (1.0% OF TOTAL INVESTMENTS)
9,000 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call AAA 9,652,410
Loan Program, Series 1993A-5A, 6.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.4% (2.6% OF TOTAL INVESTMENTS)
10,420 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,295,384
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) -
MBIA Insured
4,500 Clark County School District, Nevada, General Obligation No Opt. Call AAA 4,921,605
School Improvement Bonds, Series 1991A, 7.000%, 6/01/10 -
MBIA Insured
7,000 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 7,359,450
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
5,425 Director of Nevada State Department of Business and Industry, No Opt. Call AAA 2,469,514
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 0.000%, 1/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,345 Total Nevada 26,045,953
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.7% (2.8% OF TOTAL INVESTMENTS)
1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 1,211,232
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30
47
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 880 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AAA $ 1,015,573
6.500%, 1/01/16 - MBIA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
300 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 347,793
2,345 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 2,718,582
11,960 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 AAA 12,786,436
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32 (Pre-refunded 6/01/12)
3,995 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 AAA 4,645,146
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
5,000 Tobacco Settlement Financing Corporation, New Jersey, 6/17 at 100.00 BBB 4,758,450
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A,
4.750%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
25,580 Total New Jersey 27,483,212
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 12.0% (7.1% OF TOTAL INVESTMENTS)
855 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 868,671
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/32
Dormitory Authority of the State of New York, State Personal
Income Tax Revenue Bonds, Education, Series 2006C:
1,510 5.000%, 12/15/31 (UB) 12/16 at 100.00 AAA 1,610,309
3,330 5.000%, 12/15/35 (UB) 12/16 at 100.00 AAA 3,543,053
3,030 5.000%, 12/15/35 (UB) 12/16 at 100.00 AAA 3,223,859
1,200 Hempstead Industrial Development Agency, New York, 12/10 at 100.00 BB+ 1,231,032
Resource Recovery Revenue Refunding Bonds, American
Ref-Fuel Company of Hempstead LP, Series 2001,
5.000%, 12/01/10 (Mandatory put 6/01/10)
4,070 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 4,014,038
Bonds, 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
3,300 Long Island Power Authority, New York, Electric System 11/16 at 100.00 Aaa 3,196,446
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 -
MBIA Insured (UB)
6,740 New York City Transitional Finance Authority, New York, 5/08 at 101.00 AAA 6,872,374
Future Tax Secured Bonds, Fiscal Series 1998C,
5.000%, 5/01/26
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 1998C:
35 5.000%, 5/01/26 (Pre-refunded 5/01/08) 5/08 at 101.00 AAA 35,828
8,790 5.000%, 5/01/26 (Pre-refunded 5/01/08) 5/08 at 101.00 AAA 8,996,213
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2000C:
3,630 5.875%, 11/01/16 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 3,895,135
220 5.875%, 11/01/16 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 235,939
5,000 5.500%, 11/01/24 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 5,309,350
990 New York State Medical Care Facilities Finance Agency, 8/07 at 100.00 AAA 996,643
FHA-Insured Mortgage Revenue Bonds, Hospital and Nursing
Home Projects, Series 1992B, 6.200%, 8/15/22
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
10,800 5.500%, 6/01/16 6/10 at 100.00 AA- 11,324,664
2,500 5.500%, 6/01/18 6/12 at 100.00 AA- 2,685,825
4,645 New York State Urban Development Corporation, Service 1/17 at 100.00 AA- 4,915,293
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 7,244,438
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
66,895 Total New York 70,199,110
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.6% (1.6% OF TOTAL INVESTMENTS)
2,445 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 2,575,710
of Participation, Correctional Facilities, Series 2004A,
5.000%, 2/01/21
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA (continued)
$ 2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA $ 2,158,140
Revenue Bonds, Series 1992, 6.000%, 1/01/11 - MBIA Insured
10,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 10,709,100
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,445 Total North Carolina 15,442,950
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.3% (1.4% OF TOTAL INVESTMENTS)
8,065 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 8,272,190
5.000%, 1/01/31 - FSA Insured
935 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 Aaa 974,663
5.000%, 1/01/31 (Pre-refunded 1/01/10) - FSA Insured
3,000 Franklin County, Ohio, Development Revenue Bonds, American 10/09 at 101.00 A 3,150,150
Chemical Society, Series 1999, 5.800%, 10/01/14
1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/07 at 101.00 Aa2 1,004,690
Mortgage Revenue Bonds, Hamilton Creek Apartments Project,
Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total Ohio 13,401,693
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.7% (0.3% OF TOTAL INVESTMENTS)
310 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa 323,470
Revenue Bonds, Homeownership Loan Program, Series 2000C-2,
6.200%, 9/01/28 (Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Oklahoma, Hospital Revenue Refunding No Opt. Call AAA 3,528,376
Bonds, Hillcrest Medical Center, Series 1996, 6.500%, 6/01/09 -
CONNIE LEE/AMBA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
3,650 Total Oklahoma 3,851,846
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.1% (1.2% OF TOTAL INVESTMENTS)
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 503,655
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
3,500 Pennsylvania Economic Development Financing Authority, 7/07 at 100.00 BB+ 3,503,290
Senior Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994A, 6.400%, 1/01/09
(Alternative Minimum Tax)
5,485 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 5,464,376
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 2,865,434
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,085 Total Pennsylvania 12,336,755
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.4% (1.4% OF TOTAL INVESTMENTS)
12,390 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 14,276,130
Refunding Bonds, Series 1997, 6.500%, 7/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.7% (2.2% OF TOTAL INVESTMENTS)
20,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 21,590,400
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.2% (2.5% OF TOTAL INVESTMENTS)
4,120 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 4,406,381
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/23 - MBIA Insured
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation 6/14 at 100.00 AAA 3,135,390
Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 -
FGIC Insured
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Bonds, Series 1991:
5,000 6.250%, 1/01/21 - FGIC Insured No Opt. Call AAA 6,072,050
5,750 4.000%, 1/01/23 - MBIA Insured 7/07 at 100.00 AAA 5,507,005
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 5,517,835
Revenue Refunding Bonds, Series 1998A, 5.500%, 1/01/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,955 Total South Carolina 24,638,661
------------------------------------------------------------------------------------------------------------------------------------
49
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.1% OF TOTAL INVESTMENTS)
$ 1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- $ 1,888,110
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5% (0.2% OF TOTAL INVESTMENTS)
5,075 Knox County Health, Educational and Housing Facilities Board, 1/17 at 30.07 A- 934,257
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2006, 0.000%, 1/01/41
1,500 Metropolitan Government of Nashville-Davidson County, 5/08 at 102.00 AA 1,548,510
Tennessee, Electric System Revenue Bonds, Series 1998A,
5.200%, 5/15/23
680 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 706,132
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36
------------------------------------------------------------------------------------------------------------------------------------
7,255 Total Tennessee 3,188,899
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.8% (10.6% OF TOTAL INVESTMENTS)
3,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 2,919,390
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
5,440 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 AAA 5,249,654
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
4,000 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 AAA 4,174,400
Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
3,345 Columbia-Brazoria Independent School District, Texas, Unlimited 2/09 at 100.00 AAA 3,370,790
Tax School Building Bonds, Series 1999, 4.750%, 2/01/25
2,250 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/14 at 100.00 AAA 2,336,940
Bonds, Series 2004B, 5.000%, 11/01/27 - FSA Insured
(Alternative Minimum Tax)
8,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 8,600,560
Refunding and Improvement Bonds, Series 2001A,
5.875%, 11/01/19 - FGIC Insured (Alternative Minimum Tax)
6,000 Garland Housing Finance Corporation, Texas, Multifamily 12/11 at 101.00 N/R 6,460,080
Housing Revenue Bonds, Legacy Pointe Apartments,
Series 2000, 7.500%, 6/01/40 (Alternative Minimum Tax)
7,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 7,266,560
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
28,305 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 11,113,675
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/28 - AMBAC Insured
7,500 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 9,318,750
Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 -
FSA Insured (ETM)
33,505 Leander Independent School District, Williamson and Travis 8/14 at 25.08 AAA 5,993,709
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/39
125 Midland Housing Finance Corporation, Texas, Single Family 5/07 at 102.00 Aaa 125,253
Mortgage Revenue Refunding Bonds, Series 1992A,
8.450%, 12/01/11
Montgomery Independent School District, Montgomery County, Texas,
Unlimited Tax School Building and Refunding Bonds, Series 2001:
730 5.500%, 2/15/21 2/11 at 100.00 AAA 773,260
760 5.500%, 2/15/23 2/11 at 100.00 AAA 803,525
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds, Series
2001:
1,570 5.500%, 2/15/21 (Pre-refunded 2/15/11) 2/11 at 100.00 Aaa 1,668,737
1,640 5.500%, 2/15/23 (Pre-refunded 2/15/11) 2/11 at 100.00 Aaa 1,743,140
Mt. Pleasant Independent School District, Titus County, Texas,
General Obligation Refunding Bonds, Series 2001:
3,025 5.000%, 2/15/26 8/11 at 100.00 Aaa 3,121,951
2,300 5.125%, 2/15/31 8/11 at 100.00 Aaa 2,381,512
700 Mt. Pleasant Independent School District, Titus County, Texas, 8/11 at 100.00 Aaa 739,067
General Obligation Refunding Bonds, Series 2001,
5.125%, 2/15/31 (Pre-refunded 8/15/11)
6,000 Raven Hills Higher Education Corporation, Texas, Student 8/12 at 100.00 Aaa 6,364,500
Housing Revenue Bonds, Angelo State University - Texan
Hall LLC, Series 2002A, 5.000%, 8/01/25 (Pre-refunded
8/01/12) - MBIA Insured
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,410 Retama Development Corporation, Texas, Special Facilities 12/12 at 100.00 AAA $ 4,030,688
Revenue Bonds, Retama Park Racetrack, Series 1993,
8.750%, 12/15/18 (Pre-refunded 12/15/12) (5)
1,800 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 1,954,332
System Revenue Refunding Bonds, Series 2002A,
5.750%, 10/01/21 - RAAI Insured
4,700 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,931,569
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26 (Pre-refunded 2/01/11)
8,500 Travis County Health Facilities Development Corporation, Texas, 5/07 at 100.00 Aaa 9,218,675
Hospital Revenue Bonds, Daughters of Charity National
Health System, Series 1993B, 6.000%, 11/15/22 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
143,605 Total Texas 104,660,717
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 4.2% (2.5% OF TOTAL INVESTMENTS)
4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding 12/08 at 101.00 N/R 4,849,312
Bonds, South Davis Community Hospital Project, Series 1998,
5.750%, 12/15/18
5,065 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, 7/07 at 101.00 Aa3 (4) 5,083,639
Series 1996A, 6.150%, 7/01/14 (ETM)
40 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, 7/08 at 100.00 Aa3 40,832
Series 1996A, 6.150%, 7/01/14
11,750 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 12,023,305
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 -
MBIA Insured
525 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 533,290
Series 2000G, 5.875%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 2001C:
1,630 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 1,656,292
515 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aaa 527,911
------------------------------------------------------------------------------------------------------------------------------------
24,370 Total Utah 24,714,581
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.4% (0.9% OF TOTAL INVESTMENTS)
8,190 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 AAA 8,500,073
Series 2002, 5.000%, 1/15/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.0% (5.9% OF TOTAL INVESTMENTS)
1,855 Chelan County Public Utility District 1, Washington, Hydro 7/09 at 101.00 AA 1,949,475
Consolidated System Revenue Bonds, Series 1999A,
6.200%, 7/01/34 (Alternative Minimum Tax)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,729,775
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
1,655 Everett, Washington, Limited Tax General Obligation Bonds, 9/07 at 100.00 Aaa 1,662,431
Series 1997, 5.125%, 9/01/17 - FSA Insured
220 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 Aaa 237,789
Bonds, Wanapum Hydroelectric Development, Series 2005A,
5.000%, 1/01/34 (Pre-refunded 1/01/15) - FGIC Insured
5,780 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 AAA 6,058,943
Bonds, Wanapum Hydroelectric Development, Series 2005A,
5.000%, 1/01/34 - FGIC Insured
1,500 Snohomish County School District 6, Mukilteo, Washington, No Opt. Call AAA 1,646,850
Unlimited Tax General Obligation and Refunding Bonds,
Series 1993, 5.700%, 12/01/12 - FGIC Insured
8,155 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 8,798,919
Bonds, Series 2001A, 5.750%, 1/01/20 (Pre-refunded 1/01/11) -
FSA Insured
4,705 Tacoma, Washington, Sewerage Revenue Refunding Bonds, No Opt. Call AAA 5,008,755
Series 1994B, 8.000%, 12/01/08 - FGIC Insured
11,000 Washington Public Power Supply System, Revenue Refunding No Opt. Call Aaa 11,729,190
Bonds, Nuclear Project 3, Series 1993B, 7.000%, 7/01/09
4,700 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 4,856,181
Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
1,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 1,049,390
Bonds, Harrison Memorial Hospital, Series 1998,
5.000%, 8/15/28 - AMBAC Insured
2,000 Washington State Healthcare Facilities Authority, Revenue 8/08 at 102.00 AA 2,042,100
Bonds, Highline Community Hospital, Series 1998,
5.000%, 8/15/21 - RAAI Insured
51
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 5,500 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa $ 5,685,515
Bonds, Swedish Health Services, Series 1998,
5.500%, 11/15/14 - AMBAC Insured
4,620 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 5,087,821
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
55,190 Total Washington 58,543,134
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.3% (1.4% OF TOTAL INVESTMENTS)
500 Wisconsin Health and Educational Facilities Authority, Revenue 12/08 at 100.00 AAA 510,615
Bonds, Medical College of Wisconsin Inc., Series 1996,
5.500%, 12/01/26 - MBIA Insured
7,500 Wisconsin Health and Educational Facilities Authority, 2/12 at 101.00 AAA 7,886,850
Revenue Bonds, Ministry Healthcare Inc., Series 2002A,
5.250%, 2/15/32 - MBIA Insured
5,000 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AAA 5,194,900
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total Wisconsin 13,592,365
------------------------------------------------------------------------------------------------------------------------------------
$ 1,067,019 Total Investments (cost $938,913,132) - 168.6% 990,119,885
------------------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (13.0)% (76,273,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 11,840,722
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (57.6)% (338,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 587,287,607
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) 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. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The Issuer has received a formal adverse determination
from the Internal Revenue Service (the "IRS") regarding
the tax-exempt status of the bonds' coupon payments.
The Fund will continue to treat coupon payments as
tax-exempt income until such time that it is formally
determined that the interest on the bonds should be
treated as taxable.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
52
Statement of
ASSETS AND LIABILITIES April 30, 2007 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,512,468,596,
$984,220,786 and $938,913,132, respectively) $1,587,716,040 $1,041,285,227 $ 990,119,885
Cash 1,907,546 1,907,833 --
Receivables:
Interest 23,057,355 14,632,030 15,236,411
Investments sold 405,621 20,238 1,585,000
Unrealized appreciation on forward swaps 457,762 -- --
Other assets 154,016 112,396 86,970
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,613,698,340 1,057,957,724 1,007,028,266
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 730,806
Floating rate obligations 104,509,000 74,965,000 76,273,000
Payables:
Investments purchased 13,170,785 5,080,789 3,538,414
Variation margin on futures contracts -- 215,156 --
Accrued expenses:
Management fees 733,743 485,957 461,059
Other 373,185 40,549 178,428
Preferred share dividends payable 258,962 152,457 158,952
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 119,045,675 80,939,908 81,340,659
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 525,000,000 347,000,000 338,400,00
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 969,652,665 $ 630,017,816 $ 587,287,607
====================================================================================================================================
Common shares outstanding 63,785,430 41,093,661 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.20 $ 15.33 $ 13.58
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 410,937 $ 432,367
Paid-in surplus 901,326,509 570,811,675 587,216,314
Undistributed (Over-distribution of) net investment income 3,081,195 635,489 (233,863)
Accumulated net realized gain (loss) from investments and
derivative transactions (11,098,099) 1,137,875 (51,333,964)
Net unrealized appreciation (depreciation) of investments and
derivative transactions 75,705,206 57,021,840 51,206,753
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 969,652,665 $ 630,017,816 $ 587,287,607
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
====================================================================================================================================
See accompanying notes to financial statements.
53
Statement of
OPERATIONS Six Months Ended April 30, 2007 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $38,783,226 $24,858,123 $24,270,139
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,458,584 2,952,355 2,800,405
Preferred shares - auction fees 650,856 430,185 419,524
Preferred shares - dividend disbursing agent fees 29,753 29,753 39,671
Shareholders' servicing agent fees and expenses 70,296 25,270 34,082
Floating rate obligations interest expense and fees 1,810,280 1,163,228 1,291,837
Custodian's fees and expenses 131,228 105,138 110,775
Directors' fees and expenses 15,459 8,881 8,436
Professional fees 14,640 22,242 13,811
Shareholders' reports - printing and mailing expenses 65,839 45,079 42,183
Stock exchange listing fees 11,411 7,351 7,735
Investor relations expense 93,934 60,175 59,133
Other expenses 38,596 28,469 22,148
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and legal fee refund 7,390,876 4,878,126 4,849,740
Custodian fee credit (99,203) (69,165) (43,853)
Legal fee refund -- -- (3,535)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 7,291,673 4,808,961 4,802,352
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 31,491,553 20,049,162 19,467,787
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 468,252 593,341 648,680
Net realized gain (loss) from futures -- 548,314 --
Change in net unrealized appreciation (depreciation) of investments (8,723,160) (5,162,403) (4,733,421)
Change in net unrealized appreciation (depreciation) of forward swaps 457,762 -- --
Change in net unrealized appreciation (depreciation) of futures -- (42,601) --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (7,797,146) (4,063,349) (4,084,741)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (9,062,557) (5,822,352) (5,898,459)
From accumulated net realized gains -- (242,538) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (9,062,557) (6,064,890) (5,898,459)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $14,631,850 $ 9,920,923 $ 9,484,587
====================================================================================================================================
See accompanying notes to financial statements.
54
Statement of
CHANGES IN NET ASSETS (Unaudited)
PREMIUM INCOME (NPI) PREMIUM INCOME 2 (NPM) PREMIUM INCOME 4 (NPT)
----------------------------- ------------------------------ -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/07 10/31/06 4/30/07 10/31/06 4/30/07 10/31/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 31,491,553 $ 63,713,302 $ 20,049,162 $ 39,883,922 $ 19,467,787 $ 38,892,247
Net realized gain (loss) from
investments 468,252 (4,641,502) 593,341 941,224 648,680 (819,649)
Net realized gain (loss)
from futures -- -- 548,314 -- -- --
Change in net unrealized
appreciation (depreciation)
of investments (8,723,160) 35,531,581 (5,162,403) 19,612,632 (4,733,421) 15,946,063
Change in net unrealized
appreciation (depreciation)
of forward swaps 457,762 -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of futures -- -- (42,601) -- -- --
Distributions to
Preferred Shareholders:
From net investment income (9,062,557) (16,526,117) (5,822,352) (10,401,251) (5,898,459) (10,652,875)
From accumulated net
realized gains -- -- (242,538) (492,501) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 14,631,850 78,077,264 9,920,923 49,544,026 9,484,587 43,365,786
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (22,580,046) (47,922,007) (14,177,319) (31,337,848) (14,138,402) (29,941,424)
From accumulated net realized gains -- -- (706,808) (2,506,898) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (22,580,046) (47,922,007) (14,884,127) (33,844,746) (14,138,402) (29,941,424)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (7,948,196) 30,155,257 (4,963,204) 15,699,280 (4,653,815) 13,424,362
Net assets applicable to
Common shares at the
beginning of period 977,600,861 947,445,604 634,981,020 619,281,740 591,941,422 578,517,060
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $969,652,665 $977,600,861 $630,017,816 $634,981,020 $587,287,607 $591,941,422
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 3,081,195 $ 3,232,245 $ 635,489 $ 585,998 $ (233,863) $ 335,211
====================================================================================================================================
See accompanying notes to financial statements.
55
Statement of
CASH FLOWS Six Months Ended April 30, 2007 (Unaudited)
PREMIUM INCOME 4
(NPT)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 9,484,587
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations
to net cash provided by (used in) operating activities:
Purchases of investments (112,635,139)
Proceeds from sales and maturities of investments 67,210,005
Amortization/(Accretion) of premiums and discounts, net 146,585
(Increase) Decrease in receivable for interest 114,934
(Increase) Decrease in receivable for investments sold 13,639,896
(Increase) Decrease in other assets 19,621
Increase (Decrease) in payable for investments purchased (25,281,495)
Increase (Decrease) in accrued management fees (17,727)
Increase (Decrease) in accrued other liabilities (25,289)
Increase (Decrease) in Preferred shares dividends payable 32,177
Net realized (gain) loss from investments (648,680)
Net realized (gain) loss from paydowns 797
Change in net unrealized (appreciation) depreciation of investments 4,733,421
Taxes paid on undistributed capital gains (8,596)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities (43,234,903)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in floating rate obligations 59,328,000
Cash distributions paid to Common shareholders (14,138,402)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 45,189,598
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 1,954,695
Cash at the beginning of period (2,685,501)
------------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF PERIOD $ (730,806)
====================================================================================================================================
See accompanying notes to financial statements.
56
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share 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). The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment 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 market
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service may establish fair 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, evaluations of
anticipated cash flows or collateral and general market conditions. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors. Futures contracts are valued using
the closing settlement price, or, in the absence of such a price, at the mean of
the bid and asked prices. If the pricing service is unable to supply a price for
a municipal bond, forward swap contract or futures contract, each Fund may use a
market price or fair market value quote provided by a major broker/dealer in
such investments. If it is determined that the market price or fair market value
for an investment is unavailable or inappropriate, the Board of Directors of the
Funds, or its designee, may establish a fair value for the investment. Temporary
investments in securities that have variable rate and demand features qualifying
them as short-term investments are valued at amortized cost, which approximates
market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2007, Premium
Income (NPI), Premium Income 2 (NPM) and Premium Income 4 (NPT) had outstanding
when-issued/delayed delivery purchase commitments of $13,170,785, $5,080,789 and
$3,538,414, respectively.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of Fund shareholders. Legal fee refund presented on the
Statement of Operations for Premium Income 4 (NPT) reflects a refund of workout
expenditures paid in prior reporting period.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. 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 gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. 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.
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, 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 U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,800 2,000 2,200
Series M2 2,000 -- --
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series W2 -- -- 520
Series TH 3,800 3,000 2,680
Series F 3,800 2,000 1,800
Series F2 -- 1,880 1,328
--------------------------------------------------------------------------------
Total 21,000 13,880 13,536
================================================================================
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short term floating rate certificates as "Floating
rate obligations interest expense and fees" in the Statement of Operations.
58
During the six months ended April 30, 2007, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2007, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Average floating rate obligations $94,491,099 $60,679,669 $67,462,807
Average annual interest rate and fees 3.86% 3.87% 3.86%
================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
Futures Contracts
The Funds are authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is noted in the
Statement of Assets and Liabilities. Additionally, the Statement of Assets and
Liabilities reflects a receivable or payable for the variation margin when
applicable.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. 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 applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
59
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
2. FUND SHARES
None of the Funds engaged in transactions in their own shares during the six
months ended April 30, 2007, nor during the fiscal year ended October 31, 2006.
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2007, were as
follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Purchases $193,672,555 $113,736,925 $112,635,139
Sales and maturities 74,068,332 49,300,566 67,210,005
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No. 140. To
the extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At April 30, 2007, the cost of investments was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Cost of investments $1,406,689,381 $908,970,486 $862,278,189
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2007, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $77,727,123 $58,050,164 $52,653,514
Depreciation (1,238,424) (540,087) (1,062,696)
--------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $76,488,699 $57,510,077 $51,590,818
================================================================================
60
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2006, the Funds' last tax year
end, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Undistributed net tax-exempt income * $5,987,415 $2,669,892 $2,199,795
Undistributed net ordinary income ** 46,762 -- 5,337
Undistributed net long-term capital gains -- 945,566 --
================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 2, 2006, paid on November 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2006, was designated for purposes of the dividends paid deduction as
follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Distributions from net
tax-exempt income $64,988,153 $42,229,150 $40,998,508
Distributions from net
ordinary income ** 99,455 27,952 --
Distributions from net
long-term capital gains -- 3,000,248 --
================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2006, the Funds' last tax 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
(NPI) (NPT)
--------------------------------------------------------------------------------
Expiration year:
2008 $ -- $ 2,151,015
2009 -- --
2010 695,347 18,079,555
2011 6,263,502 24,792,603
2012 -- --
2013 -- 6,161,830
2014 4,614,516 806,337
--------------------------------------------------------------------------------
Total $11,573,365 $51,991,340
================================================================================
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on
the amount of assets within each individual fund. This pricing structure enables
Nuveen fund shareholders to benefit from growth in the assets within each
individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2007, the complex-level fee rate was .1824%.
61
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management 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 its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Directors has
adopted a deferred compensation plan for independent Directors that enables
Directors to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006, and is to be
applied to all open tax years as of the effective date. Recent SEC guidance
allows funds to delay implementing FIN 48 into NAV calculations until the fund's
last NAV calculation in the first required financial statement reporting period.
As a result, the Funds must begin to incorporate FIN 48 into their NAV
calculations by October 31, 2007. At this time, management is continuing to
evaluate the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
62
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of April 30, 2007, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2007, to shareholders of record on
May 15, 2007, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0590 $.0575 $.0545
================================================================================
Agreement and Plan of Merger
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with an investor
group majority-led by Madison Dearborn Partners, LLC. Madison Dearborn Partners,
LLC is a private equity investment firm based in Chicago, Illinois. The investor
group includes affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank
and Morgan Stanley. It is anticipated that Merrill Lynch and its affiliates will
be indirect "affiliated persons" (as that term is defined in the Investment
Company Act of 1940) of the Funds. Under the terms of the merger, each
outstanding share of Nuveen Investments' common stock (other than dissenting
shares) will be converted into the right to receive a specified amount of cash,
without interest. The merger is expected to be completed by the end of the year,
subject to customary conditions, including obtaining the approval of Nuveen
Investments shareholders, obtaining necessary fund and client consents
sufficient to satisfy the terms of the Merger Agreement, and expiration of
certain regulatory waiting periods. The obligations of Madison Dearborn
Partners, LLC to consummate the merger are not conditioned on its obtaining
financing. The Merger Agreement includes a "go shop" provision through July 19,
2007 during which Nuveen Investments may actively solicit and negotiate
competing takeover proposals.
The consummation of the merger will be deemed to be an "assignment" (as defined
in the 1940 Act) of the investment management agreement between each Fund and
the Adviser, and will result in the automatic termination of each Fund's
agreement. Prior to the consummation of the merger, it is anticipated that the
Board of Directors of each Fund will consider a new investment management
agreement with the Adviser. If approved by the Board, the new agreement would be
presented to the Fund's shareholders for approval, and, if so approved by
shareholders, would take effect upon consummation of the merger. There can be no
assurance that the merger described above will be consummated as contemplated or
that necessary shareholder approvals will be obtained.
63
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ ----------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PREMIUM INCOME (NPI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $15.33 $ .49 $(.13) $(.14) $ -- $ .22 $(.35) $ -- $(.35)
2006 14.85 1.00 .49 (.26) -- 1.23 (.75) -- (.75)
2005 15.20 .98 (.26) (.16) -- .56 (.91) -- (.91)
2004 14.87 1.01 .36 (.08) -- 1.29 (.96) -- (.96)
2003 14.87 1.05 (.03) (.07) -- .95 (.95) -- (.95)
2002 15.27 1.10 (.48) (.11) -- .51 (.91) -- (.91)
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 15.45 .49 (.09) (.14) (.01) .25 (.35) (.02) (.37)
2006 15.07 .97 .49 (.25) (.01) 1.20 (.76) (.06) (.82)
2005 15.53 .98 (.24) (.16) (.01) .57 (.93) (.10) (1.03)
2004 15.09 1.02 .48 (.08) -- 1.42 (.98) -- (.98)
2003 15.27 1.08 (.10) (.07) (.01) .90 (.98) (.10) (1.08)
2002 15.53 1.17 (.30) (.11) (.01) .75 (.96) (.05) (1.01)
====================================================================================================================================
Total Returns
-----------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value** Value**
=====================================================================
PREMIUM INCOME (NPI)
---------------------------------------------------------------------
Year Ended 10/31:
2007(b) $15.20 $14.31 3.79% 1.47%
2006 15.33 14.13 7.52 8.53
2005 14.85 13.87 3.37 3.71
2004 15.20 14.30 8.82 9.00
2003 14.87 14.06 6.48 6.58
2002 14.87 14.11 5.51 3.47
PREMIUM INCOME 2 (NPM)
---------------------------------------------------------------------
Year Ended 10/31:
2007(b) 15.33 14.40 5.11 1.58
2006 15.45 14.05 6.71 8.24
2005 15.07 13.97 2.98 3.71
2004 15.53 14.57 9.48 9.77
2003 15.09 14.25 6.57 6.07
2002 15.27 14.40 5.59 5.03
=====================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Refund After Credit/Refund***
------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
PREMIUM
INCOME (NPI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $969,653 1.53%* 1.16%* 6.50%* 1.51%* 1.13%* 6.52%* 5%
2006 977,601 1.19 1.19 6.64 1.16 1.16 6.68 15
2005 947,446 1.19 1.19 6.44 1.18 1.18 6.45 20
2004 969,539 1.21 1.21 6.76 1.20 1.20 6.76 17
2003 948,312 1.22 1.22 7.02 1.22 1.22 7.02 24
2002 948,726 1.22 1.22 7.39 1.22 1.22 7.39 4
PREMIUM
INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 630,018 1.55* 1.18* 6.37* 1.53* 1.16* 6.39* 5
2006 634,981 1.20 1.20 6.42 1.20 1.20 6.43 15
2005 619,282 1.20 1.20 6.40 1.19 1.19 6.40 15
2004 637,981 1.21 1.21 6.75 1.21 1.21 6.76 23
2003 619,916 1.22 1.22 7.06 1.21 1.21 7.07 21
2002 627,659 1.22 1.22 7.70 1.21 1.21 7.71 21
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $525,000 $25,000 $71,174 $104,509 $15,302
2006 525,000 25,000 71,552 -- --
2005 525,000 25,000 70,116 -- --
2004 525,000 25,000 71,169 -- --
2003 525,000 25,000 70,158 -- --
2002 525,000 25,000 70,177 -- --
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) 347,000 25,000 70,390 74,965 14,033
2006 347,000 25,000 70,748 -- --
2005 347,000 25,000 69,617 -- --
2004 347,000 25,000 70,964 -- --
2003 347,000 25,000 69,663 -- --
2002 347,000 25,000 70,220 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and legal fee refund, 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, where applicable.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1-Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2007.
See accompanying notes to financial statements.
64-65 spread
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ ----------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $13.69 $ .45 $(.09) $(.14) $ -- $ .22 $(.33) $ -- $(.33)
2006 13.38 .90 .35 (.25) -- 1.00 (.69) -- (.69)
2005 13.54 .91 (.10) (.16) -- .65 (.81) -- (.81)
2004 13.15 .94 .40 (.08) -- 1.26 (.87) -- (.87)
2003 13.46 .93 (.32) (.07) -- .54 (.85) -- (.85)
2002 14.22 1.00 (.80) (.11) -- .09 (.85) -- (.85)
====================================================================================================================================
Total Returns
-----------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value** Value**
=====================================================================
PREMIUM
INCOME 4 (NPT)
---------------------------------------------------------------------
Year Ended 10/31:
2007(b) $13.58 $12.99 4.07% 1.60%
2006 13.69 12.80 9.89 7.72
2005 13.38 12.31 3.07 4.87
2004 13.54 12.74 8.98 9.90
2003 13.15 12.52 3.09 4.12
2002 13.46 12.97 .52 .76
=====================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Refund After Credit/Refund***
------------------------------------------ --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
PREMIUM
INCOME 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $587,288 1.66%* 1.22%* 6.64%* 1.64%* 1.20%* 6.66%* 7%
2006 591,941 1.25 1.25 6.70 1.23 1.23 6.71 9
2005 578,517 1.26 1.26 6.63 1.22 1.22 6.66 7
2004 585,284 1.30 1.30 7.10 1.29 1.29 7.10 6
2003 568,776 1.36 1.36 6.95 1.35 1.35 6.96 17
2002 581,961 1.36 1.36 7.36 1.35 1.35 7.37 16
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------------------
Year Ended 10/31:
2007(b) $338,400 $25,000 $68,387 $76,273 $13,137
2006 338,400 25,000 68,731 -- --
2005 338,400 25,000 67,739 -- --
2004 338,400 25,000 68,239 -- --
2003 338,400 25,000 67,019 -- --
2002 338,400 25,000 67,983 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and legal fee refund, 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, where applicable.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1-Inverse Floating Rate Securities.
(b) For the six months ended April 30, 2007.
See accompanying notes to financial statements.
66-67 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. 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 the 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.
68
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
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.
69
Glossary of
TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
70
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
For Funds listed on the New York Stock Exchange, each Fund's Chief Executive
Officer has submitted to the Exchange the annual CEO certification as required
by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
BOARD OF DIRECTORS
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carol E. Stone
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. No shares were
repurchased during the period covered by this report. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
71
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $166 billion in assets, as of March 31, 2007, Nuveen Investments offers
access to a number of different asset classes and investing solutions through a
variety of products. Nuveen Investments markets its capabilities under six
distinct brands: NWQ, specializing in value-style equities; Nuveen, managing
fixed-income investments; Santa Barbara, committed to growth equities;
Tradewinds, specializing in global value equities; Rittenhouse, focused on
"blue-chip" growth equities; and Symphony, with expertise in alternative
investments as well as equity and income portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-E-0407D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Premium Income Municipal Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: July 9, 2007
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2007
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2007
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* Print the name and title of each signing officer under his or her signature.