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
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Nuveen Premium Income Municipal Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2008
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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.
Semi-Annual Report
April 30, 2008
Nuveen Investments
Municipal Closed-End Funds
Photo of: Small child
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND, INC.
NPI
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND 2, INC.
NPM
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND 4, INC.
NPT
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
Photo of: Man working on computer
LIFE IS COMPLEX.
NUVEEN
MAKES THINGS
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Logo: NUVEEN Investments
Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger | Chairman of the Board
It is with a variety of emotions that I write my last letter to Nuveen Fund
shareholders. For a dozen years, it has been my privilege to communicate
periodically with you through these annual and semi-annual reports about the
performance and uses of your Fund. Over that time, I've tried to emphasize the
central role that quality municipal bonds can play in creating attractive
opportunities for current tax-free income, long-term return and portfolio
diversification. I firmly believe that all our Fund shareholders, working in
conjunction with a trusted financial advisor, have the potential to reach their
financial objectives by using Nuveen Funds as a core component of a
well-balanced portfolio.
As I noted in your Fund's last shareholder report, Nuveen Investments was
acquired in November 2007 by a group led by Madison Dearborn Partners, LLC.
While this event had no impact on the investment objectives, portfolio
management strategies or dividend policies of your Fund, it did provide a
convenient point to begin implementing a long-planned transition in the senior
management team at Nuveen. As a part of this process, I will be leaving the
Board of the Nuveen Funds on June 30, 2008.
In addition, Nuveen and your Fund's Board determined that Fund shareholders
would be best served by having an independent director serve as the new chairman
of the Fund Board. Therefore, I am very excited and pleased to report that I
will be succeeded as chairman of your Nuveen Fund Board by Robert Bremner. A
member of the Board since 1997, Bob is a management consultant and private
investor not affiliated with Nuveen. Over the years, he has played a critical
role on the Fund Board, most recently as the lead independent director, and I
know Bob and the other Board members are determined to maintain the standards
and commitment to quality that you have come to expect from your Nuveen
investment.
Please take the time to review the Portfolio Manager's Comments, the Common
Share Dividend and Share Price Information, and the Performance Overview
sections of this report. All of us are grateful that you have chosen Nuveen
Investments as a partner as you pursue your financial goals, and, on behalf of
Bob Bremner and the other members of your Fund's Board, let me say we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 16, 2008
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NPI, NPM, NPT
Portfolio manager Paul Brennan reviews key investment strategies and the
six-month performance of these three national Funds. With 19 years of industry
experience, including 17 years at Nuveen, Paul assumed portfolio management
responsibility for the three national Funds in 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2008?
During this six-month period, the municipal market experienced a great deal of
volatility, as issues related to the sub-prime mortgage industry had an indirect
but important, influence on the municipal market's performance. Other major
factors influencing the municipal market included tighter liquidity stemming
from problems in the credit markets, a flight to quality driven by dislocations
in the financial markets, and continued uncertainty about municipal bond
insurers. We sought to capitalize on this turbulent environment by continuing to
focus on relative value, using a fundamental approach to find undervalued
sectors and individual credits with the potential to perform well over the long
term.
As the market discounted bonds that were out of favor, such as those with lower
credit quality and higher yields, we took advantage of opportunities that we
considered overlooked and undervalued to selectively add these types of bonds to
our portfolios, including bonds rated BBB. In addition, we believed that the
steepening municipal yield curve began to offer better reward opportunities for
purchases made further out on the curve. As a result, many of the additions to
our portfolios emphasized longer maturities. Among the credits we added to the
Funds were uninsured health care bonds, marking the first time in a while that
we found bonds in this sector at attractive levels relative to their credit
quality. We also added exposure to the short end of the yield curve by
purchasing variable rate demand obligations (VRDOs) at very attractive yields.
VRDOs are floating-rate securities that offer interest rates set daily or weekly
based on an index of short-term municipal rates.
To generate cash for purchases, we selectively sold holdings with shorter
durations,(1) including pre-refunded bonds,(2) at attractive prices resulting
from high demand. Selling shorter duration bonds and reinvesting further out on
the yield curve also helped to
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
(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) 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.
4
improve the Funds' overall call protection profiles. In addition, a number of
our new purchases were funded with cash generated by bond redemptions.
As noted earlier, over the course of the entire reporting period, we saw the
municipal yield curve steepen, as municipal bond interest rates at the short end
of the curve declined while longer-term rates rose. In this environment, we
continued to emphasize a disciplined approach to duration management. As part of
this strategy, we use inverse floating rate securities,(3) a type of derivative
financial instrument, in all three of these Funds. Inverse floaters typically
provide the dual benefit of lengthening the Funds' durations to be closer to our
strategic target and enhancing their income- generation capabilities. Going into
this period, NPI, NPM and NPT also used forward interest rate swaps. The goal of
this strategy was to help us manage the common share net asset value (NAV)
volatility of these Funds without having a negative impact on their income
streams or common share dividends over the short term. During this period, we
removed the forward interest rate swaps from NPM and NPT.
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 Common Share Net Asset Value*
For periods ended 4/30/08
Six-Month 1-Year 5-Year 10-Year
NPI -1.99% -2.52% 4.32% 5.09%
NPM -1.94% -2.78% 4.22% 5.20%
NPT -1.47% -1.81% 4.43% 4.49%
Lipper General
Leveraged
Municipal Debt
Funds Average(4) -2.54% -3.47% 4.64% 5.24%
Lehman Brothers
Municipal
Bond Index(5) 1.47% 2.79% 4.03% 5.16%
*Six-month returns are cumulative; returns for one-year, five-year, and ten-year
are annualized.
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.
(3) An inverse floating rate security 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 this reporting period, are
further defined within the Notes to Financial Statements and Glossary of
Terms Used in This Report sections of this shareholder report.
(4) 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: six months, 54; 1 year, 54; 5 years, 52; and 10 years, 38. Fund
and Lipper returns assume reinvestment of dividends.
(5) 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
For the six months ended April 30, 2008, the cumulative returns on NAV for all
three of the Funds in this report underperformed the return on the Lehman
Brothers Municipal Bond Index. At the same time, the six-month returns for all
three Funds outperformed the average return for their Lipper peer group.
One of the major factors impacting the six-month performance of these Funds in
relation to that of the unleveraged Lehman Brothers Municipal Bond Index was the
use of financial leverage. While leverage provides opportunities for additional
income and total returns for common shareholders, the benefits of leveraging are
tied in part to the short-term rates that leveraged Funds pay their preferred
shareholders. During this period, as the yields on longer-term bonds rose and
their prices correspondingly fell, declining valuations had a negative effect on
performance that was magnified by the use of leverage. In addition, the Funds'
borrowing costs remained relatively high, negatively impacting their total
returns. (See Recent Developments in the Auction Rate Preferred Markets at the
end of this commentary.)
Other key factors that influenced the Funds' returns included yield curve and
duration positioning, the use of derivatives, credit exposure and sector
allocations, and holdings of bonds backed by certain municipal bond insurers.
During this six-month period, bonds in the Lehman Brothers Municipal Bond Index
with maturities of eight years or less, especially those maturing in two to six
years, benefited the most from changes in the interest rate environment. As a
result, these shorter maturity bonds generally outperformed credits with longer
maturities. Bonds having the longest maturities (22 years and longer) posted the
worst returns. As previously noted, one of our strategies during this period
focused on adding longer maturity bonds to our portfolios as the yield curve
steepened, based on our belief that these bonds offer good long-term potential.
This purchase activity helped to extend the Funds' durations, which generally
had a negative impact on performance during these past six months.
As mentioned earlier, all three Funds used forward interest rate swaps. In these
Funds, which had durations that exceeded our strategic target, the interest rate
swaps were used to synthetically shorten duration. During this period, in
contrast to historical trends, the U.S. Treasury market and the municipal market
moved in the opposite
6
directions. As municipal market performance lagged the significant gains made by
Treasuries, these derivatives performed poorly, hurting the performance of the
three Funds. In addition, the inverse floaters used by all three of these Funds
had a negative on performance. This resulted from the fact that the inverse
floaters effectively increased the Funds' exposure to longer maturity bonds
during a period when shorter maturities were in favor in the market. However,
the inverse floaters also benefited the Funds by helping to support their income
streams.
As credit spreads widened, bonds rated BBB or below posted poor returns. The
underperformance of the lower credit quality sector was largely the result of
risk- averse investors' flight to quality as disruptions in the financial and
housing markets deepened. As of April 30, 2008, the Funds' holdings of bonds
rated BBB ranged from approximately 7% in NPT to 12% in NPM. The Funds'
allocations to this credit quality sector were generally higher than that of the
Lehman Brothers Municipal Bond Index, and the negative impact of this greater
exposure to credit risk accounted for some of the performance differential
between these Funds and the index.
In general, bonds that carried any credit risk, regardless of sector, tended to
perform poorly. Revenue bonds as a whole and especially the industrial
development and health care sectors that had ranked among the top performers in
the Lehman Brothers Municipal Bond Index over the past few years, underperformed
the general municipal market. The housing sector also performed poorly, as did
lower-rated bonds backed by the 1998 master tobacco settlement agreement.
Sectors of the market that generally contributed to the Funds' performances
included general obligation bonds, water and sewer, electric utilities, and
special tax issues. Pre-refunded bonds performed exceptionally well, due
primarily to their shorter effective maturities and higher credit quality.
Another factor that had an impact on the performance of these Funds was their
position in bonds backed by certain municipal insurers. As concern increased
about the balance sheets of municipal bond insurers, prices on bonds insured by
these companies declined, detracting from the performance of the Funds. On the
whole, the
7
holdings of all of our Funds continued to be well diversified not only between
insured and uninsured bonds, but also within the insured bond category.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
The portfolios of investments reflect the ratings on certain bonds insured by
AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30, 2008. During the period covered
by this report, at least one rating agency reduced the rating for AMBAC-insured
and MBIA-insured bonds to AA and at least one rating agency further reduced the
ratings for FGIC-insured and XLCA-insured bonds to BB. Subsequent to April 30,
2008, and at the time this report was prepared, at least one rating agency
further reduced the rating for CIFG-insured bonds to BB and MBIA-insured bonds
to A. As of April 30, 2008, at least one rating agency has placed XLCA-insured
bonds on "negative credit watch" and one or more rating agencies have placed
each of these insurers on "negative outlook", which may presage one or more
rating reductions for such insurer or insurers in the future. If one or more
insurers' ratings are reduced by these rating agencies, it would likely reduce
the effective rating of many of the bonds insured by that insurer or insurers.
It is important to note that municipal bonds historically have had a very low
rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the preferred shares issued by these Funds than there
were offers to buy. This meant that these auctions "failed to clear'' and that
many or all auction preferred shareholders who wanted to sell their shares in
these auctions were unable to do so. This decline in liquidity in auction
preferred shares did not lower the credit quality of these shares, and auction
preferred shareholders unable to sell their shares received distributions at the
"maximum rate'' applicable to failed auctions as calculated in accordance with
the pre-established terms of the auction preferred shares. At the time this
report was prepared, the Funds' managers could not predict when future auctions
might succeed in attracting sufficient buyers for the shares offered, if ever.
The Funds' managers are working diligently to refund the auction preferred
shares, and have made progress in these efforts, but at present there is no
assurance that these efforts will succeed. These developments generally do not
affect
8
the management or investment policies of these Funds. However, one implication
of these auction failures for common shareholders is that the Funds' cost of
leverage will likely be higher, at least temporarily, than it otherwise would
have been had the auctions continued to be successful. As a result, the Funds'
future common share earnings may be lower than they otherwise would have been.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
9
Common Share
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. This
strategy continued to provide support for the Funds' income streams during this
turbulent period. As a result, the dividends of all three of these Funds
remained stable throughout the six-month reporting period ended April 30, 2008.
Due to capital gains generated by normal portfolio activity, common shareholders
of the Funds received capital gains and/or net ordinary income distributions at
the end of December 2007 as follows:
Short-Term Capital Gains
Long-Term Capital Gains and/or Ordinary Income
(per share) (per share)
NPI -- $0.0009
NPM $0.0215 $0.0040
NPT -- $0.0036
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 common share 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 common share NAV. Each Fund will, over time,
pay all of its net investment income as dividends to shareholders. As of April
30, 2008, all three of the Funds in this report had positive UNII balances,
based upon our best estimate, for tax purposes and positive UNII balances for
financial statement purposes.
10
As of April 30, 2008, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
4/30/08 Six-Month
Discount Average Discount
NPI -7.02% -8.14%
NPM -7.05% -8.20%
NPT -9.98% -10.72%
COMMON SHARE REPURCHASE AND SHARE PRICE INFORMATION
On July 10, 2007, the Board of Directors of NPM approved an open market share
repurchase program, as part of a broad, ongoing effort designed to support the
market prices of the Fund's common shares. Repurchases not only help to support
the market price, but because such purchases are made at a discount to NAV, they
have the effect of augmenting NAV. Under the terms of the program, NPM may
repurchase up to 10% of its outstanding common shares. As of April 30, 2008, NPM
had repurchased 297,500 common shares, representing 0.7% of the Fund's total
common shares outstanding.
11
NPI
Performance
OVERVIEW
Nuveen Premium
Income Municipal
Fund, Inc.
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments(1)
AAA/U.S. Guaranteed 58%
AA 17%
A 14%
BBB 9%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share
May 0.059
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
5/01/07 14.35
14.41
14.31
14.33
14.21
14.2
13.82
13.63
13.66
13.8
13.83
13.61
13.6
13.55
13.5
13.3
13.23
13.41
13.48
13.95
13.68
13.59
13.61
13.61
13.42
13.36
13.12
13.3
12.8
12.55
12.82
13.12
13.21
12.9
12.71
13.17
13.66
13.87
13.63
13.94
13.79
13.99
13.17
12.68
12.41
13.04
12.96
13.08
13.18
13.22
13.32
13.36
13.26
4/30/08 13.12
FUND SNAPSHOT
------------------------------------
Common Share Price $13.12
------------------------------------
Common Share
Net Asset Value $14.11
------------------------------------
Premium/(Discount) to NAV -7.02%
------------------------------------
Market Yield 5.40%
------------------------------------
Taxable-Equivalent Yield(2) 7.50%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $899,956
------------------------------------
Average Effective Maturity
on Securities (Years) 15.58
------------------------------------
Leverage-Adjusted Duration 12.13
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/18/88)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.33% -1.99%
------------------------------------
1-Year -3.37% -2.52%
------------------------------------
5-Year 3.89% 4.32%
------------------------------------
10-Year 5.18% 5.09%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 12.3%
------------------------------------
Texas 9.5%
------------------------------------
New York 9.3%
------------------------------------
Illinois 7.3%
------------------------------------
New Jersey 5.2%
------------------------------------
South Carolina 4.2%
------------------------------------
Florida 3.6%
------------------------------------
Massachusetts 3.1%
------------------------------------
Washington 3.1%
------------------------------------
Minnesota 3.0%
------------------------------------
Colorado 3.0%
------------------------------------
Alabama 2.8%
------------------------------------
Pennsylvania 2.8%
------------------------------------
Louisiana 2.6%
------------------------------------
Nevada 2.6%
------------------------------------
Michigan 2.5%
------------------------------------
District of Columbia 2.3%
------------------------------------
Wisconsin 2.3%
------------------------------------
Other 18.5%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 22.8%
------------------------------------
Tax Obligation/Limited 15.0%
------------------------------------
Health Care 14.7%
------------------------------------
Transportation 11.1%
------------------------------------
Tax Obligation/General 11.1%
------------------------------------
Utilities 6.7%
------------------------------------
Consumer Staples 4.2%
------------------------------------
Other 14.4%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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.
(3) The Fund paid shareholders net ordinary income distributions in December
2007 of $0.0009 per share.
12
NPM
Performance
OVERVIEW
Nuveen Premium
Income Municipal
Fund 2, Inc.
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 49%
AA 20%
A 16%
BBB 11%
BB or Lower 1%
N/R 3%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share(3)
May 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
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
5/01/07 14.39
14.43
14.39
14.25
14.1
14.03
13.77
13.58
13.72
13.88
13.8
13.61
13.82
13.66
13.75
13.41
13.28
13.42
13.5
13.76
13.7
13.49
13.46
13.45
13.32
13.35
13.2
13.24
12.86
12.53
13.16
13.17
13.41
13.15
13.16
13.45
13.97
14.01
13.81
13.99
14
14.14
13.27
13.01
12.59
13.09
12.61
12.72
13.01
12.99
13
13.17
13.26
4/30/08 13.19
FUND SNAPSHOT
------------------------------------
Common Share Price $13.19
------------------------------------
Common Share
Net Asset Value $14.19
------------------------------------
Premium/(Discount) to NAV -7.05%
------------------------------------
Market Yield 5.23%
------------------------------------
Taxable-Equivalent Yield(2) 7.26%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $578,923
------------------------------------
Average Effective Maturity
on Securities (Years) 15.41
------------------------------------
Leverage-Adjusted Duration 13.04
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/23/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 2.32% -1.94%
------------------------------------
1-Year -3.45% -2.78%
------------------------------------
5-Year 4.08% 4.22%
------------------------------------
10-Year 5.00% 5.20%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 10.3%
------------------------------------
California 9.3%
------------------------------------
New York 8.4%
------------------------------------
Texas 7.9%
------------------------------------
South Carolina 6.2%
------------------------------------
Washington 6.0%
------------------------------------
Massachusetts 4.2%
------------------------------------
New Jersey 4.1%
------------------------------------
Louisiana 4.0%
------------------------------------
Alabama 3.5%
------------------------------------
Ohio 3.2%
------------------------------------
Oklahoma 2.8%
------------------------------------
Missouri 2.6%
------------------------------------
Minnesota 2.5%
------------------------------------
Michigan 2.5%
------------------------------------
Nevada 2.3%
------------------------------------
Wisconsin 1.9%
------------------------------------
Other 18.3%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 18.3%
------------------------------------
Health Care 16.7%
------------------------------------
Tax Obligation/Limited 16.1%
------------------------------------
Tax Obligation/General 15.2%
------------------------------------
Utilities 11.3%
------------------------------------
Transportation 4.8%
------------------------------------
Education and Civic
Organizations 4.5%
------------------------------------
Other 13.1%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0255 per share.
13
NPT
Performance
OVERVIEW
Nuveen Premium
Income Municipal
Fund 4, Inc.
as of April 30, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 61%
AA 15%
A 13%
BBB 7%
BB or Lower 2%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share(3)
May 0.0545
Jun 0.0515
Jul 0.0515
Aug 0.0515
Sep 0.0515
Oct 0.0485
Nov 0.0485
Dec 0.0485
Jan 0.0485
Feb 0.0485
Mar 0.0485
Apr 0.0485
Line Chart:
Share Price Performance -- Weekly Closing Price
5/01/07 13.05
13.08
13.03
12.9
12.83
12.89
12.56
12.17
12.07
12.22
12.17
12.06
12.06
12.12
12.1
11.81
11.61
11.78
11.95
12.37
12.06
12.04
12.05
11.85
11.7301
11.73
11.75
11.77
11.35
11.21
11.39
11.63
11.51
11.47
11.39
11.56
12.01
12.03
11.98
12.1
11.98
12.1
11.54
11.32
10.96
11.46
11.08
11.13
11.31
11.45
11.42
11.54
11.45
4/30/08 11.46
FUND SNAPSHOT
------------------------------------
Common Share Price $11.46
------------------------------------
Common Share
Net Asset Value $12.73
------------------------------------
Premium/(Discount) to NAV -9.98%
------------------------------------
Market Yield 5.08%
------------------------------------
Taxable-Equivalent Yield(2) 7.06%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $550,293
------------------------------------
Average Effective Maturity
on Securities (Years) 16.10
------------------------------------
Leverage-Adjusted Duration 12.56
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/19/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -0.14% -1.47%
------------------------------------
1-Year -7.21% -1.81%
------------------------------------
5-Year 3.37% 4.43%
------------------------------------
10-Year 4.21% 4.49%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Texas 11.2%
------------------------------------
Illinois 10.7%
------------------------------------
California 10.0%
------------------------------------
Washington 6.3%
------------------------------------
Indiana 5.5%
------------------------------------
Louisiana 5.1%
------------------------------------
New York 4.9%
------------------------------------
Michigan 4.4%
------------------------------------
Florida 3.7%
------------------------------------
New Jersey 2.9%
------------------------------------
Alabama 2.7%
------------------------------------
Colorado 2.7%
------------------------------------
South Carolina 2.5%
------------------------------------
Rhode Island 2.1%
------------------------------------
Ohio 1.9%
------------------------------------
Wisconsin 1.8%
------------------------------------
North Carolina 1.7%
------------------------------------
Other 19.9%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 22.5%
------------------------------------
Health Care 16.2%
------------------------------------
Tax Obligation/Limited 15.7%
------------------------------------
Tax Obligation/General 13.0%
------------------------------------
Utilities 9.4%
------------------------------------
Transportation 6.6%
------------------------------------
Water and Sewer 4.5%
------------------------------------
Other 12.1%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as of April 30,
2008. Please see the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(2) 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.
(3) The Fund paid shareholders net ordinary income distributions in December
2007 of $0.0036 per share.
14
NPI
Nuveen Premium Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.6% (2.8% OF TOTAL INVESTMENTS)
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, 6/10 at 102.00 A- $ 4,174,092
Series 2000, 6.125%, 12/01/16
Alabama Special Care Facilities Financing Authority, Revenue Bonds,
Ascension Health, Series 2006C-2:
1,435 5.000%, 11/15/36 11/16 at 100.00 Aa1 1,417,766
4,000 5.000%, 11/15/39 11/16 at 100.00 Aa1 3,941,200
6,000 Alabama Special Care Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa1 5,911,800
Ascension Health, Series 2006D, 5.000%, 11/15/39
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 5,838,720
1,300 5.000%, 11/15/30 11/15 at 100.00 Baa1 1,131,767
12,000 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/17 at 100.00 Aaa 11,056,800
Sewerage Revenue Bonds, Series 2007A, 4.500%, 1/01/43 -
AMBAC Insured (UB)
2,190 Courtland Industrial Development Board, Alabama, Pollution Control 6/15 at 100.00 BBB 1,910,118
Revenue Bonds, International Paper Company, Series 2005A,
5.000%, 6/01/25
5,020 DCH Health Care Authority, Alabama, Healthcare Facilities Revenue 6/12 at 101.00 A+ 5,120,651
Bonds, Series 2002, 5.250%, 6/01/18
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,110,960
Alabama, Revenue Bonds, Baptist Medical Center, Series 2004C,
5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
42,995 Total Alabama 41,613,874
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.1% (1.3% 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 (5) 9/13 at 100.00 AA (4) 2,214,260
2,035 5.250%, 9/01/18 (Pre-refunded 9/01/13) - FGIC Insured 9/13 at 100.00 AA (4) 2,253,010
5,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 5,375,900
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
(Pre-refunded 6/01/10)
10,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 8,628,480
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
19,535 Total Alaska 18,471,650
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.3% (0.8% 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 493,440
660 5.250%, 12/01/25 12/15 at 100.00 BBB 647,348
2,910 Pima County Industrial Development Authority, Arizona, Lease 7/08 at 100.00 Aaa 3,001,811
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
4,100 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 6/10 at 102.00 AA- 3,680,980
Series 2007, 5.000%, 12/01/37
4,130 University of Arizona, Certificates of Participation, Series 2002B, 6/12 at 100.00 AAA 4,297,885
5.125%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,300 Total Arizona 12,121,464
------------------------------------------------------------------------------------------------------------------------------------
15
NPI
Nuveen Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9% (0.5% OF TOTAL INVESTMENTS)
$ 480 Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100.00 AAA $ 517,349
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 5,346,124
Bonds, Razorback Stadium, Series 1999, 5.050%, 9/15/20 -
AMBAC Insured
2,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 BBB 1,920,880
Regional Medical Center, Series 2005B, 5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,725 Total Arkansas 7,784,353
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.0% (12.3% OF TOTAL INVESTMENTS)
9,200 Alameda Corridor Transportation Authority, California, Subordinate No Opt. Call AAA 4,964,136
Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 -
AMBAC Insured
10,000 Anaheim Public Finance Authority, California, Public Improvement 9/17 at 100.00 A 8,855,500
Project Lease Bonds, Series 2007A-1, 4.375%, 3/01/37 -
FGIC Insured
4,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa 4,508,840
Bonds, Series 2002A, 6.000%, 5/01/15 (Pre-refunded 5/01/12)
5,400 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 5,453,622
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 1,500,000
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 3,595,475
7,000 5.000%, 3/01/33 3/13 at 100.00 A 6,600,790
5,425 California Health Facilities Financing Authority, Revenue Bonds, No Opt. Call A 5,685,888
Catholic Healthcare West, Series 2004I, 4.950%, 7/01/26
(Mandatory put 7/01/14)
8,560 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 8,575,750
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+ 8,302,273
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
3,015 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- 2,942,278
Sutter Health, Series 2007A, 5.000%, 11/15/42
11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call A 12,301,586
Department of Corrections, Series 1993E, 5.500%, 6/01/15
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+ 1,518,509
2,730 5.000%, 7/01/39 7/15 at 100.00 BBB+ 2,350,257
5,000 California Statewide Community Development Authority, 7/18 at 100.00 AA- 5,195,050
Revenue Bonds, St. Joseph Health System, Series 2007A,
5.750%, 7/01/47 - FGIC Insured
4,000 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA+ 4,410,880
5.250%, 7/01/14
California, General Obligation Bonds, Series 2004:
2,000 5.125%, 2/01/25 2/14 at 100.00 A+ 2,044,280
10,000 5.125%, 2/01/26 2/14 at 100.00 A+ 10,196,200
3,575 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 3,640,709
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 1,891,159
Obligation Bonds, Series 2006B, 0.000%, 8/01/26 - MBIA Insured
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
$ 7,000 5.000%, 6/01/33 6/17 at 100.00 BBB $ 5,977,090
2,000 5.750%, 6/01/47 6/17 at 100.00 BBB 1,795,780
5,000 Kern Community College District, California, General Obligation No Opt. Call AAA 2,186,300
Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured
5,470 Los Angeles Harbors Department, California, Revenue Bonds, 8/16 at 102.00 AA 5,441,994
Series 2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative
Minimum Tax)
965 Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,246,105
Series 1983A, 10.750%, 2/01/16 (ETM)
18,480 Pomona, California, GNMA/FNMA Collateralized Securities No Opt. Call AAA 23,404,730
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 (4) 5,657,950
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26 (Pre-refunded 7/01/14)
2,000 Redwood City School District, San Mateo County, California, 7/12 at 100.00 A+ 2,005,120
General Obligation Bonds, Series 2002, 5.000%, 7/15/27 -
FGIC Insured
3,700 Sacramento Municipal Utility District, California, Electric Revenue 8/13 at 100.00 AAA 3,815,884
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 384,348
445 5.000%, 9/01/23 9/15 at 102.00 Baa3 420,133
3,500 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA 3,541,440
Series 2004B, 5.000%, 9/01/29 - MBIA Insured
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 2,693,697
7,150 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 1,728,298
50,400 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 10,753,344
24,025 0.000%, 1/15/36 - MBIA Insured No Opt. Call AAA 4,533,277
------------------------------------------------------------------------------------------------------------------------------------
257,585 Total California 180,118,672
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.8% (3.0% OF TOTAL INVESTMENTS)
2,500 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AA- 2,602,275
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 A 715,682
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- 2,000,836
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 981,740
Medical Center, Series 2004, 5.000%, 9/01/25
800 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 762,296
Valley Health Care, Series 2005F, 5.000%, 3/01/25
130 Colorado Housing Finance Authority, Single Family Program 5/08 at 105.00 Aaa 132,553
Senior Bonds, Series 1997B-2, 7.000%, 5/01/26
(Alternative Minimum Tax)
110 Colorado Housing Finance Authority, Single Family Program 5/08 at 105.00 Aaa 111,822
Senior Bonds, Series 1997C-2, 6.875%, 11/01/28
(Alternative Minimum Tax)
490 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 AA 525,128
Senior Bonds, Series 2000B-2, 7.250%, 10/01/31
(Alternative Minimum Tax)
17
NPI
Nuveen Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 8,385 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ $ 9,346,089
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
19,810 Denver, Colorado, Excise Tax Revenue Bonds, Convention Center, 3/11 at 100.00 AAA 21,343,094
Series 2001A, 5.500%, 9/01/18 (Pre-refunded 3/01/11) -
FSA Insured
20,500 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AAA 4,898,065
Series 2000B, 0.000%, 9/01/32 - MBIA Insured
32 El Paso County, Colorado, FNMA Mortgage-Backed Single Family No Opt. Call Aaa 33,887
Revenue Refunding Bonds, Series 1992A-2, 8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
56,572 Total Colorado 43,453,467
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,930 Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,214,077
5.500%, 12/15/16
2,310 Greater New Haven Water Pollution Control Authority, Connecticut, 11/15 at 100.00 AAA 2,350,587
Regional Wastewater System Revenue Bonds, Series 2005A,
5.000%, 11/15/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,240 Total Connecticut 4,564,664
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.8% (2.3% OF TOTAL INVESTMENTS)
4,460 District of Columbia Housing Finance Agency, GNMA Collateralized 6/08 at 100.00 AAA 4,523,733
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 11,011,352
6.000%, 6/01/20 - MBIA 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 6,156,833
7,625 0.000%, 4/01/25 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 44.82 AAA 3,130,520
16,665 0.000%, 4/01/32 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 29.23 AAA 4,462,387
2,130 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 1,759,550
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
3,335 Washington DC Convention Center Authority, Dedicated Tax 10/16 at 100.00 Aaa 2,754,977
Revenue Bonds, Residual Series 1730, 1731, 1736,
5.234%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
57,825 Total District of Columbia 33,799,352
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.8% (3.6% OF TOTAL INVESTMENTS)
4,225 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 4,188,243
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 8,223,440
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 5,259,600
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 18,397,123
Revenue Bonds, Series 2006, 4.500%, 7/01/33 - AMBAC Insured
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A+ (4) 5,514,250
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
6,910 South Miami Health Facilities Authority, Florida, Hospital Revenue, 8/17 at 100.00 AA- 6,743,400
Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42
1,785 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 1,828,251
5.000%, 10/01/28 - MBIA Insured
2,375 Volusia County School Board, Florida, Certificates of Participation, 8/15 at 100.00 Aaa 2,468,480
Series 2005B, 5.000%, 8/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
53,445 Total Florida 52,622,787
------------------------------------------------------------------------------------------------------------------------------------
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 2,625 Fulton County Development Authority, Georgia, Revenue Bonds, 5/14 at 100.00 AAA $ 2,745,120
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 6,474,766
Certificates, Series 2003, 5.250%, 1/01/20 - FSA Insured
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax No Opt. Call AAA 5,603,872
Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,495 Total Georgia 14,823,758
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.2% (0.7% OF TOTAL INVESTMENTS)
10,000 Hawaii, General Obligation Bonds, Series 2003DA, 9/13 at 100.00 AAA 10,646,600
5.250%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, 9/10 at 100.00 A1 5,010,450
Series 2000, 5.500%, 9/01/25 - FGIC Insured
(Alternative Minimum Tax)
2,185 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 1,907,024
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
7,185 Total Idaho 6,917,474
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.9% (7.3% OF TOTAL INVESTMENTS)
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 AA- 6,133,922
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AA- 5,424,000
10,130 0.000%, 12/01/24 - FGIC Insured No Opt. Call AA- 4,337,463
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 AA- 7,637,850
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AA- 4,540,800
26,350 Chicago Greater Metropolitan Area Sanitary District, Illinois, 12/16 at 100.00 Aaa 29,397,378
General Obligation Bonds, Series 2006, 5.000%, 12/01/35
(Pre-refunded 12/01/16) (UB)
125 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 9/08 at 104.00 Aaa 129,255
Mortgage Revenue Bonds, Series 1997B, 6.950%, 9/01/28
(Alternative Minimum Tax)
8,740 Illinois Development Finance Authority, Pollution Control Revenue 8/08 at 100.00 AAA 8,745,768
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 1,039,458
3,000 5.250%, 11/15/23 5/14 at 100.00 A 2,959,200
985 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 896,823
Series 2006, 5.125%, 1/01/25
1,225 Illinois Health Facilities Authority, Revenue Bonds, Condell Medical 5/12 at 100.00 Baa3 1,171,517
Center, Series 2002, 5.500%, 5/15/32
9,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman Health 8/08 at 100.50 AAA 9,969,853
Systems, Series 1997, 5.250%, 8/01/27 - AMBAC Insured
1,000 Lombard Public Facilities Corporation, Illinois, Second Tier 1/16 at 100.00 AA- 985,920
Conference Center and Hotel Revenue Bonds, Series 2005B,
5.250%, 1/01/30
10,040 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, No Opt. Call A1 7,535,120
McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/15 - FGIC Insured
9,200 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, 12/09 at 101.00 AAA 9,537,732
McCormick Place Expansion Project, Series 1999A,
5.500%, 12/15/24 - FGIC Insured
19
NPI
Nuveen Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 3,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, No Opt. Call AAA $ 3,790,980
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+ 3,131,520
Facilities Revenue Bonds, Morris Hospital, Series 2001,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
131,555 Total Illinois 107,364,559
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.2% (0.7% OF TOTAL INVESTMENTS)
2,005 Hamilton County Public Building Corporation, Indiana, First 8/14 at 100.00 AAA 2,082,213
Mortgage Bonds, Series 2004, 5.000%, 8/01/22 - FSA Insured
7,965 Wawasee Community School Corporation, Indiana, First Mortgage 1/12 at 101.00 AA (4) 8,824,105
Bonds, New Elementary and Remodeling Building Corporation,
Series 2000, 5.750%, 1/15/20 (Pre-refunded 1/15/12)
------------------------------------------------------------------------------------------------------------------------------------
9,970 Total Indiana 10,906,318
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.0% (1.2% 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 1,218,827
1,410 5.800%, 6/01/18 - MBIA Insured 6/08 at 100.00 AAA 1,414,498
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,051,460
Medical Center, Series 2000, 6.250%, 7/01/25
3,860 Iowa Finance Authority, Industrial Remarketed Revenue Refunding No Opt. Call AAA 4,662,185
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 8,550,600
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
18,485 Total Iowa 17,897,570
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7% (0.4% OF TOTAL INVESTMENTS)
6,000 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 6,287,280
Series 2004A, 5.000%, 3/01/21
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.9% (0.5% OF TOTAL INVESTMENTS)
3,770 Kentucky Turnpike Authority, Economic Development Road Revenue 7/15 at 100.00 AAA 3,895,843
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 1,277,288
1,270 5.000%, 6/01/20 - AMBAC Insured 6/14 at 100.00 Aaa 1,330,757
1,335 5.000%, 6/01/21 - AMBAC Insured 6/14 at 100.00 Aaa 1,390,336
------------------------------------------------------------------------------------------------------------------------------------
7,585 Total Kentucky 7,894,224
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.8% (2.3% OF TOTAL INVESTMENTS)
2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, Special 12/12 at 100.00 AAA 3,203,818
Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/19 (Pre-refunded 12/01/12) - AMBAC Insured
185 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa 191,895
Revenue Bonds, Series 2000A, 7.450%, 12/01/31
(Alternative Minimum Tax)
4,950 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 5,764,721
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
555 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call N/R (4) 687,157
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14 (ETM)
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 2,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ $ 2,005,840
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
5,800 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 5,572,640
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA- 1,222,704
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA- 2,249,161
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA- 2,539,850
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2006:
930 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 Aaa 919,593
10,105 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aa3 9,573,578
------------------------------------------------------------------------------------------------------------------------------------
33,350 Total Louisiana 33,930,957
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,200 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 A- 2,102,078
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 3,500,085
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - MBIA Insured (UB)
3,600 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 3,646,152
Multifamily Housing Development Bonds, Series 2000B,
6.200%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,360 Total Maryland 9,248,315
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.1% (3.1% OF TOTAL INVESTMENTS)
840 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 864,982
Series 2000A, 5.250%, 7/01/30
Massachusetts Bay Transportation Authority, Assessment Bonds,
Series 2000A:
7,900 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 AAA 8,372,025
1,260 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1 (4) 1,335,285
8,505 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 AAA 8,558,326
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 2,831,921
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 12,055,490
Program Bonds, Series 12, 4.375%, 8/01/36 (UB)
5,960 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 6,350,559
Bonds, Series 2005A, 5.250%, 8/01/25 - MBIA Insured
1,845 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 Aaa 1,453,602
Bonds, Series 2007, Residual Trust 7039, 4.069%, 8/01/46 -
FSA Insured (IF)
3,820 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (4) 4,168,078
Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
45,955 Total Massachusetts 45,990,268
------------------------------------------------------------------------------------------------------------------------------------
21
NPI
Nuveen Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.0% (2.5% OF TOTAL INVESTMENTS)
Detroit, Michigan, General Obligation Bonds, Series 2003A:
$ 3,565 5.250%, 4/01/22 - XLCA Insured 4/13 at 100.00 A- $ 3,618,796
1,275 5.250%, 4/01/23 - XLCA Insured 4/13 at 100.00 A- 1,289,803
3,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 2,987,760
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
6,600 Michigan Housing Development Authority, Limited Obligation 7/08 at 101.00 AAA 6,640,128
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 10,278,400
Facilities Program, Series 2003II, 5.000%, 10/15/23 -
MBIA Insured
4,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 3,988,840
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
850 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 732,207
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 A2 6,454,795
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,680 Total Michigan 35,990,729
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.9% (3.0% OF TOTAL INVESTMENTS)
13,650 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete Inc., 7/14 at 100.00 A- 13,411,808
Series 2004, 4.950%, 7/01/22
2,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- (4) 2,223,740
Facilities Revenue Bonds, Benedictine Health System - St. Mary's
Duluth Clinic, Series 2004, 5.375%, 2/15/22 (Pre-refunded 2/15/14)
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 Aaa 1,066,800
2,000 6.200%, 2/20/43 8/11 at 105.00 Aaa 2,123,160
90 Minnesota Agricultural and Economic Development Board, 5/08 at 102.00 AAA 91,932
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 Bonds, 4/16 at 100.00 A2 1,348,857
University of St. Thomas, Series 2006-6I, 5.000%, 4/01/23
1,500 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,541,850
Series 2004A, 5.250%, 10/01/24
1,545 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,565,023
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
17,370 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 20,846,951
Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
40,490 Total Minnesota 44,220,121
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8% (0.5% OF TOTAL INVESTMENTS)
6,875 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 6,911,575
Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R 1,991,340
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+ 487,780
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
$ 1,565 6.000%, 6/01/20 No Opt. Call BBB+ $ 1,669,699
1,260 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,112,933
1,500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 1,566,705
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 1,624,530
4,150 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 4,494,533
225 Missouri Housing Development Commission, GNMA/FNMA 9/08 at 104.00 AAA 229,282
Single Family Mortgage Revenue Bonds, Homeownership Loan
Program, Series 1996C, 7.450%, 9/01/27
(Alternative Minimum Tax)
2,220 Missouri Housing Development Commission, Single Family 3/09 at 103.00 AAA 2,249,815
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1999B-1, 6.700%, 9/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,920 Total Missouri 15,426,617
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.8% (0.5% OF TOTAL INVESTMENTS)
7,260 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 Aaa 7,186,021
System Revenue Bonds, Nebraska City 2, Series 2006A,
5.000%, 2/01/49 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.3% (2.6% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,444,546
Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) -
MBIA Insured
15,000 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AA+ (4) 16,135,050
Southern 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 1,585,754
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 9,588,000
------------------------------------------------------------------------------------------------------------------------------------
43,835 Total Nevada 38,753,350
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.1% (0.0% OF TOTAL INVESTMENTS)
455 New Hampshire Housing Finance Authority, Single Family 7/08 at 100.00 Aa2 461,566
Mortgage Acquisition Revenue Bonds, Series 1996B,
6.400%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.4% (5.2% OF TOTAL INVESTMENTS)
10,150 Delaware River Port Authority, Pennsylvania and New Jersey, 1/10 at 100.00 AAA 10,451,252
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 A1 (4) 8,640,480
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 476,900
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- 3,845,426
2,000 5.250%, 9/01/26 9/15 at 100.00 AA- 2,091,440
23
NPI
Nuveen Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 800 New Jersey Health Care Facilities Financing Authority, 7/18 at 100.00 Baa2 $ 780,056
New Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,890 New Jersey Housing and Mortgage Finance Agency, Home 10/08 at 100.75 AAA 3,909,839
Buyer 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 6,039,183
9,250 5.500%, 6/15/23 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 10,325,775
3,850 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,262,720
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 4,486,707
7,585 6.000%, 1/01/14 - MBIA Insured (ETM) No Opt. Call AAA 8,692,638
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A 2,573,775
5.000%, 1/01/19 - FGIC Insured
9,130 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 9,448,454
5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
70,635 Total New Jersey 76,024,645
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
600 New Mexico Mortgage Finance Authority, Single Family Mortgage 3/10 at 102.50 AAA 608,700
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 6,466,872
Receipts Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,185 Total New Mexico 7,075,572
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.2% (9.3% 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+ 1,050,390
500 5.250%, 7/01/24 7/14 at 100.00 A+ 521,615
1,025 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 1,144,484
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- 2,114,919
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 2,429,871
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
6,915 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 Aaa 6,451,073
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
6,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call AA- 6,240,600
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
5,100 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 Aaa 4,715,205
Bonds, Series 2006F, 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 A- 7,172,760
5,000 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A- 5,103,100
3,900 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 3,948,789
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 -
AMBAC Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 5,780 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A $ 5,826,818
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
3,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 A 3,066,780
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 Aa1 2,343,019
2,050 5.250%, 7/01/21 7/14 at 100.00 Aa1 2,183,804
2,420 5.250%, 7/01/22 4/14 at 100.00 Aa1 2,556,706
1,370 5.250%, 7/01/24 4/14 at 100.00 Aa1 1,437,514
12,500 New York City, New York, General Obligation Bonds, 10/13 at 100.00 AA 12,991,875
Fiscal Series 2003D, 5.250%, 10/15/22
525 New York City, New York, General Obligation Bonds, 6/13 at 100.00 AAA 550,552
Fiscal Series 2003J, 5.500%, 6/01/23
4,475 New York City, New York, General Obligation Bonds, 6/13 at 100.00 AAA 4,996,740
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 6,319,020
Fiscal Series 2004C, 5.250%, 8/15/20
7,960 New York City, New York, General Obligation Bonds, 4/15 at 100.00 AA 8,184,552
Fiscal Series 2005M, 5.000%, 4/01/24
11,515 New York Convention Center Development Corporation, 11/15 at 100.00 Aaa 11,526,170
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 667,440
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 1,476,077
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
(Pre-refunded 6/01/10)
7,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 7,630,214
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
6,460 New York State Urban Development Corporation, State Personal 3/14 at 100.00 AAA 6,648,309
Income Tax Revenue Bonds, Series 2004A-1, 5.000%, 3/15/26 -
FGIC Insured
5,000 Port Authority of New York and New Jersey, Consolidated 3/14 at 101.00 AA- 5,137,250
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 2,808,808
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 9,842,506
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
133,645 Total New York 137,086,960
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.3% (0.8% 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+ 5,998,698
3,475 5.250%, 6/01/23 6/13 at 100.00 AA+ 3,592,177
1,050 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 1,042,871
Health Care System Revenue Bonds, Carolinas Health Care,
Series 2007A, 5.000%, 1/15/31
1,000 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 797,520
Financing Authority, North Carolina, National Gypsum Company
Project Exempt Facilities Revenue Bonds, Series 2005,
5.750%, 8/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,310 Total North Carolina 11,431,266
------------------------------------------------------------------------------------------------------------------------------------
25
NPI
Nuveen Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.2% (0.7% OF TOTAL INVESTMENTS)
$ 9,650 Dickinson, North Dakota, Health Care Facilities Revenue Bonds, 2/10 at 102.00 AA (4) $10,702,622
BHS Long Term Care Inc., Series 1990, 7.625%, 2/15/20
(Pre-refunded 2/15/10) - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.1% (1.9% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
285 5.125%, 6/01/24 6/17 at 100.00 BBB 268,450
2,850 5.875%, 6/01/30 6/17 at 100.00 BBB 2,651,925
2,745 5.750%, 6/01/34 6/17 at 100.00 BBB 2,481,453
6,285 5.875%, 6/01/47 6/17 at 100.00 BBB 5,561,722
4,265 Franklin County, Ohio, Hospital Revenue and Improvement Bonds, 5/11 at 101.00 Aaa 4,638,571
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 2,898,813
5.250%, 6/01/20
665 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 693,834
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 A- (4) 1,460,076
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 and 10/10 at 100.00 A3 (4) 7,652,330
Improvement Bonds, Trinity Health System, Series 2000,
6.500%, 10/01/30 (Pre-refunded 10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
28,150 Total Ohio 28,307,174
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.8% (1.7% 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 498,075
1,050 5.375%, 9/01/36 9/16 at 100.00 BBB 1,020,905
3,500 Oklahoma Capitol Improvement Authority, State Facilities Revenue 7/15 at 100.00 AAA 3,595,200
Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
Oklahoma Development Finance Authority, Revenue Bonds,
Saint John Health System, Series 2007:
10,000 5.000%, 2/15/37 2/17 at 100.00 AA- 9,849,200
4,165 5.000%, 2/15/42 2/17 at 100.00 AA- 4,071,662
6,685 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 6,594,418
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36
------------------------------------------------------------------------------------------------------------------------------------
25,900 Total Oklahoma 25,629,460
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,060 Oregon Department of Administrative Services, Certificates 5/15 at 100.00 AAA 2,135,046
of Participation, Series 2005A, 5.000%, 5/01/24 - FSA Insured
2,500 Oregon State Department of Transportation, Highway User Tax 11/14 at 100.00 AAA 2,756,375
Revenue Bonds, Series 2004A, 5.000%, 11/15/21
(Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
4,560 Total Oregon 4,891,421
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.6% (2.8% OF TOTAL INVESTMENTS)
980 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 815,380
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+ 1,432,473
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,068,800
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,000 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA $ 1,027,740
Series 2005, 5.000%, 9/01/29
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,723,858
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
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 4,671,189
4,735 5.000%, 9/01/22 - FSA Insured 9/14 at 100.00 AAA 4,887,704
8,405 Philadelphia Redevelopment Authority, Pennsylvania, 10/08 at 103.00 N/R 8,170,585
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 15,399,020
Revenue Bonds, Philadelphia School District, Series 2003,
5.250%, 6/01/24 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,550 Total Pennsylvania 41,196,749
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/17 at 100.00 A+ 2,505,225
Revenue Bonds, Series 2007A, 5.250%, 8/01/57
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.9% (4.2% OF TOTAL INVESTMENTS)
8,610 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 8,497,037
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- 5,359,159
3,595 5.250%, 12/01/20 12/13 at 100.00 AA- 3,752,173
1,865 5.250%, 12/01/21 12/13 at 100.00 AA- 1,937,996
Lexington County Health Service District, South Carolina,
Hospital Revenue Bonds, Series 2004:
1,805 6.000%, 5/01/19 (Pre-refunded 5/01/14) 5/14 at 100.00 A+ (4) 2,049,704
2,400 5.500%, 5/01/24 (Pre-refunded 5/01/14) 5/14 at 100.00 A+ (4) 2,660,856
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) 15,414,810
1,655 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 1,907,371
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 8,981,328
7,500 6.375%, 5/15/28 5/11 at 101.00 BBB 7,545,450
4,150 6.375%, 5/15/30 No Opt. Call BBB 4,084,762
------------------------------------------------------------------------------------------------------------------------------------
58,930 Total South Carolina 62,190,646
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.5% (0.9% OF TOTAL INVESTMENTS)
6,400 Johnson City Health and Educational Facilities Board, Tennessee, 7/16 at 100.00 BBB+ 5,966,976
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- 876,753
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2006, 0.000%, 1/01/40
410 Sullivan County Health Educational and Housing Facilities Board, 9/16 at 100.00 BBB+ 368,311
Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36
27
NPI
Nuveen Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
Sumner County Health, Educational, and Housing Facilities Board,
Tennessee, Revenue Refunding Bonds, Sumner Regional Health
System Inc., Series 2007:
$ 1,300 5.500%, 11/01/37 11/17 at 100.00 N/R $ 1,208,904
3,000 5.500%, 11/01/46 11/17 at 100.00 N/R 2,720,190
2,400 Tennessee Housing Development Agency, Homeownership 7/13 at 100.00 AA 2,427,072
Program Bonds, Series 2004, 5.000%, 7/01/34
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,610 Total Tennessee 13,568,206
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.5% (9.5% OF TOTAL INVESTMENTS)
5,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 2,907,150
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
3,222 Austin Housing Finance Corporation, Texas, GNMA Collateralized 12/10 at 105.00 Aaa 3,432,590
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 System 2/17 at 100.00 Aaa 7,464,097
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 Caa1 1,856,654
TXU Energy Company LLC Project, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
175 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 184,683
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 6.000%, 2/15/16
655 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA 9/10 at 105.00 AAA 676,451
Single Family Mortgage Revenue Bonds, Series 2000A,
6.700%, 9/01/33 (Alternative Minimum Tax)
2,395 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 2,528,282
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
580 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 607,794
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
19,125 Harris County Hospital District, Texas, Revenue Refunding Bonds, 8/10 at 100.00 AAA 20,588,634
Series 2000, 6.000%, 2/15/15 (Pre-refunded 8/15/10) -
MBIA Insured
4,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 4,018,880
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 5,193,650
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 6,389,820
Series 2001B, 5.500%, 3/01/15 - FSA Insured
9,250 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 9,851,343
Series 2000B, 5.500%, 7/01/30 (Pre-refunded 7/01/10) -
FSA Insured
4,660 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 4,127,595
General Obligation Bonds, Series 2007, Residuals 07-1001,
8.867%, 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- 1,945,780
2,800 5.125%, 8/15/26 No Opt. Call BBB- 2,588,404
1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 1,558,127
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/23 - AMBAC Insured
245 Lower Colorado River Authority, Texas, Revenue Refunding and 5/13 at 100.00 AAA 270,044
Improvement Bonds, Series 2003, 5.250%, 5/15/24
(Pre-refunded 5/15/13) - AMBAC Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,155 Lower Colorado River Authority, Texas, Revenue Refunding and 5/13 at 100.00 AAA $ 3,256,307
Improvement Bonds, Series 2003, 5.250%, 5/15/24 -
AMBAC Insured
7,000 Pearland Independent School District, Brazoria County, Texas, 2/17 at 100.00 AAA 6,347,880
General Obligation Bonds, Series 2007, Rites-PA- 1449,
8.277%, 2/15/32 (IF)
2,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Caa1 1,483,280
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
10,930 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 10,767,690
Corporation, Texas, Revenue Bonds, Series 2007A,
5.000%, 2/15/36
10,810 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa 11,662,152
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) 4,440,320
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 Refunding 3/13 at 100.00 AAA 5,389,400
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 4,140,160
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 10,510,500
Texas Turnpike System, Series 2002A, 0.000%, 8/15/24 -
AMBAC Insured
3,335 Texas, General Obligation Bonds, Transportation Commission 4/17 at 100.00 AA 3,085,847
Mobility Fund, Series 2007, Residuals 1873, 8.231%, 4/01/33 (IF)
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,392,100
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
155,332 Total Texas 139,665,614
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.0% OF TOTAL INVESTMENTS)
515 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/08 at 101.00 AAA 526,629
Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
4,765 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100.00 N/R 5,071,480
Residential Rental Housing Revenue Bonds, Mayfair
Apartments I and II, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.7% (2.3% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,715,825
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
3,125 Skagit County Public Hospital District 1, Washington, 6/14 at 100.00 Aaa 3,276,344
General Obligation Bonds, Series 2004A, 5.375%, 12/01/20 -
MBIA Insured
5,000 Snohomish County, Washington, Limited Tax General 12/11 at 100.00 AAA 5,185,700
Obligation Bonds, Series 2001, 5.250%, 12/01/26 -
MBIA Insured
7,775 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 7,949,860
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 4,828,850
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 2,909,650
Bonds, Series 2002-03C, 0.000%, 6/01/24 - MBIA Insured
11,000 Washington, General Obligation Bonds, Series 2000S-5, No Opt. Call AA+ 6,367,570
0.000%, 1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
40,630 Total Washington 33,233,799
------------------------------------------------------------------------------------------------------------------------------------
29
NPI
Nuveen Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.7% (2.3% 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 $ 1,098,590
750 5.125%, 8/01/23 (Pre-refunded 8/01/13) - AMBAC Insured 8/13 at 100.00 AAA 823,943
1,000 Wisconsin Health and Educational Facilities Authority, 7/11 at 100.00 A- 1,029,480
Revenue Bonds, Agnesian Healthcare Inc., Series 2001,
6.000%, 7/01/21
9,000 Wisconsin Health and Educational Facilities Authority, 4/13 at 100.00 BBB+ 9,246,690
Revenue Bonds, Aurora Healthcare Inc., Series 2003,
6.400%, 4/15/33
2,175 Wisconsin Health and Educational Facilities Authority, 10/11 at 100.00 BBB 2,256,106
Revenue Bonds, Carroll College Inc., Series 2001,
6.125%, 10/01/16
790 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 697,491
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
6,025 Wisconsin Health and Educational Facilities Authority, 9/13 at 100.00 BBB+ (4) 6,846,870
Revenue Bonds, Franciscan Sisters of Christian Charity
Healthcare Ministry, Series 2003A, 6.000%, 9/01/22
(Pre-refunded 9/01/13)
4,995 Wisconsin Health and Educational Facilities Authority, Revenue 9/17 at 100.00 BBB+ 4,256,190
Bonds, Franciscan Sisters of Christian Charity HealthCare
Ministry, Series 2007, 5.000%, 9/01/33
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 A- 1,718,040
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 1,835,720
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 Aa3 187,362
1,265 5.250%, 5/01/21 - FGIC Insured 5/14 at 100.00 AA- 1,336,207
1,545 Wisconsin, General Obligation Bonds, Series 2004-3, 5/14 at 100.00 Aaa 1,717,803
5.250%, 5/01/19 (Pre-refunded 5/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,720 Total Wisconsin 33,050,492
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,900 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB 3,594,786
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,603,164 Total Long-Term Investments (cost $1,435,716,984) - 161.2% 1,451,160,331
=============-----------------------------------------------------------------------------------------------------------------------
30
DESCRIPTION (1) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.3% (1.4% OF TOTAL INVESTMENTS)
$ 12,315 King County, Washington, Sewer Revenue Bonds, Series 2001, A-1+ $ 12,315,000
Trust 554, Variable Rate Demand Obligations, 5.870%, 1/01/19 -
FGIC Insured (6)
4,970 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, VMIG-1 4,970,000
ROCS 660, Variable Rate Demand Obligations, 4.010%, 5/01/34 -
FGIC Insured (6)
3,415 North Carolina Eastern Municipal Power Agency, Power System A-1+ 3,415,000
Revenue Bonds, Variable Rate Demand Obligations, Series 2003G,
4.000%, 1/01/18 (6)
------------------------------------------------------------------------------------------------------------------------------------
$ 20,700 Total Short-Term Investments (cost $20,700,000) 20,700,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,456,416,984) - 163.5% 1,471,860,331
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (8.0)% (71,704,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 24,799,753
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.3)% (7) (525,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 899,956,084
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2008:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (8) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Royal Bank
of Canada $23,000,000 Receive 3-Month USD-LIBOR 5.320% Semi-Annually 1/15/09 1/15/38 $(1,486,024)
====================================================================================================================================
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 Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the
Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period
end.
(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) Portion of investment, with an aggregate market value of
$1,042,916, has been pledged to collateralize the net
payment obligations under forward swap contracts.
(6) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
(7) Preferred Shares, at Liquidation Value as a percentage of
total investments is (35.7)%.
(8) 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.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
31
NPM
Nuveen Premium Income Municipal Fund 2, Inc.
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 5.9% (3.5% OF TOTAL INVESTMENTS)
$ 6,995 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 6,892,174
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
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 3,503,232
1,000 5.000%, 11/15/30 11/15 at 100.00 Baa1 870,590
12,000 Birmingham Waterworks and Sewerage Board, Alabama, Water 1/17 at 100.00 Aaa 11,152,080
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 1,360,632
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) 1,877,522
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 A2 8,296,275
Series 2004, 5.000%, 3/15/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
35,100 Total Alabama 33,952,505
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.3% (0.8% 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 197,376
265 5.250%, 12/01/25 12/15 at 100.00 BBB 259,920
2,850 Maricopa County Industrial Development Authority, Arizona, 5/08 at 101.00 AAA 3,113,454
Multifamily Housing Revenue Bonds, Place Five and The
Greenery Apartments, Series 1996A, 6.625%, 1/01/27 (ETM)
1,265 Pima County Industrial Development Authority, Arizona, 7/08 at 100.00 Aaa 1,304,911
Lease Obligation Revenue Refunding Bonds, Tucson Electric
Power Company, Series 1988A, 7.250%, 7/15/10 -
FSA Insured
2,750 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 2,468,950
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
7,330 Total Arizona 7,344,611
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 960,440
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.7% (9.3% OF TOTAL INVESTMENTS)
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 5,988,953
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 4,508,840
5,500 5.375%, 5/01/21 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 6,070,515
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
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 $ 1,504,070
5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call Aaa 2,568,099
7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call Aaa 3,119,180
3,740 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A2 3,746,882
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- 2,439,700
Sutter Health, Series 2007A, 5.000%, 11/15/42
2,055 California Infrastructure Economic Development Bank, Infrastructure 10/14 at 100.00 AA 2,158,387
State Revolving Fund Revenue Bonds, Series 2004,
5.000%, 10/01/21
1,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB+ 860,900
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+ 2,756,800
5.250%, 7/01/14
8,000 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/25 2/14 at 100.00 A+ 8,177,120
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 1,934,922
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 2,559,000
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 17,049,899
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 1,398,462
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 897,890
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2007A-1, 5.750%, 6/01/47
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 1,300,351
435 5.100%, 9/01/30 9/15 at 102.00 N/R 390,834
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 240,218
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 259,633
2,220 San Diego Redevelopment Agency, California, Subordinate 9/14 at 100.00 A- 2,320,300
Lien Tax Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/20 - XLCA Insured
960 San Francisco Redevelopment Agency, California, Hotel Tax 7/08 at 100.00 AAA 978,365
Revenue Bonds, Series 1994, 6.750%, 7/01/25 - FSA Insured
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
4,595 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 1,110,703
32,400 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 6,912,864
6,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 6,346,620
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - MBIA Insured
3,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 AAA 3,013,020
Bonds, Turlock Irrigation District, Series 2004A, 5.000%, 1/01/34 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
140,085 Total California 90,612,527
------------------------------------------------------------------------------------------------------------------------------------
33
NPM
Nuveen Premium Income Municipal Fund 2, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.3% (1.4% OF TOTAL INVESTMENTS)
$ 1,700 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AA- $ 1,760,656
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- 1,759,780
475 5.000%, 6/01/29 6/16 at 100.00 A- 447,246
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 381,148
Valley Health Care, Series 2005F, 5.000%, 3/01/25
55 Colorado Housing Finance Authority, Single Family Program 6/08 at 104.00 Aaa 57,006
Senior Bonds, Series 1995D, 7.375%, 6/01/26
(Alternative Minimum Tax)
355 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 395,690
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
6,925 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 A- 6,641,837
Revenue Bonds, Convention Center Hotel, Series 2006,
5.125%, 12/01/25 - XLCA Insured
1,700 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/08 at 101.00 AAA 1,704,488
Bonds, Boston Lofts Project, Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,355 Total Colorado 13,147,851
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.9% (0.5% OF TOTAL INVESTMENTS)
5,000 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AA 5,209,900
Purpose Bonds, Series 2003B, 5.000%, 1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.6% (1.6% 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 4,252,133
13,780 0.000%, 4/01/28 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 37.21 AAA 4,696,913
15,855 0.000%, 4/01/29 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 35.07 AAA 5,092,943
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 Aaa 1,102,817
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 8.033%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
42,690 Total District of Columbia 15,144,806
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.6% (1.5% OF TOTAL INVESTMENTS)
4,230 Brevard County Health Facilities Authority, Florida, Revenue Bonds, 4/16 at 100.00 A 4,193,199
Health First Inc. Project, Series 2005, 5.000%, 4/01/24
2,500 Escambia County Health Facilities Authority, Florida, Health 10/08 at 101.00 BBB+ 2,490,275
Facility Revenue Refunding Bonds, Baptist Hospital and Baptist
Manor, Series 1998, 5.125%, 10/01/19
555 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 560,544
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 3,506,400
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 1,706,426
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured
2,455 South Miami Health Facilities Authority, Florida, Hospital Revenue, 8/17 at 100.00 AA- 2,395,810
Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42
------------------------------------------------------------------------------------------------------------------------------------
15,040 Total Florida 14,852,654
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.7% (1.0% OF TOTAL INVESTMENTS)
$ 500 Chatham County Hospital Authority, Savannah, Georgia, Hospital 1/14 at 100.00 BBB $ 436,705
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 11,100
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 3,674,029
3,365 5.000%, 11/01/18 - MBIA Insured 11/13 at 100.00 AAA 3,520,429
2,235 Richmond County Development Authority, Georgia, Revenue 12/14 at 100.00 AAA 2,266,312
Bonds, Medical College of Georgia, Cancer Research Center
Project, Series 2004A, 5.000%, 12/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,515 Total Georgia 9,908,575
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.9% (0.5% OF TOTAL INVESTMENTS)
175 Idaho Housing Agency, Senior Lien Single Family Mortgage Bonds, 7/08 at 100.00 Aaa 179,986
Series 1995F, 6.450%, 7/01/27 (Alternative Minimum Tax)
3,160 Idaho Housing and Finance Association, GNMA Housing Revenue 3/12 at 105.00 Aaa 3,402,593
Refunding Bonds, Wedgewood Terrace Project, Series 2002A-1,
7.250%, 3/20/37
215 Idaho Housing and Finance Association, Single Family Mortgage 7/08 at 100.00 Aa1 221,347
Bonds, Series 1996G, 6.350%, 7/01/26 (Alternative Minimum Tax)
185 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 190,004
Bonds, Series 2000B, 6.250%, 7/01/22 (Alternative Minimum Tax)
330 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 338,649
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax)
1,000 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 872,780
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
5,065 Total Idaho 5,205,359
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.2% (10.3% OF TOTAL INVESTMENTS)
5,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 2,712,000
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 19,747,005
General Obligation Bonds, Series 2006, 5.000%, 12/01/35
(Pre-refunded 12/01/16) (UB)
22,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 9,417,571
Series 1999, 0.000%, 1/01/25 - FGIC Insured
620 Chicago, Illinois, General Obligation Refunding Bonds, 7/08 at 102.00 AA- 633,931
Series 1998, 5.250%, 1/01/20 - FGIC Insured
120 Chicago, Illinois, General Obligation Refunding Bonds, 7/08 at 102.00 AA- (4) 123,047
Series 1998, 5.250%, 1/01/20 (Pre-refunded 7/01/08) -
FGIC Insured
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 6/09 at 102.00 Aaa 1,186,868
Revenue Bonds, Bryn Mawr-Belle Shores Project, Series 1997,
5.800%, 6/01/23 (Alternative Minimum Tax)
2,875 Chicago, Illinois, Tax Increment Allocation Bonds, Read-Dunning 7/08 at 101.00 N/R 2,907,919
Redevelopment Project, Series 1996B, 7.250%, 1/01/14
2,815 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 7/08 at 101.00 N/R 2,848,358
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 Aa3 (4) 2,609,781
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured (ETM)
35
NPM
Nuveen Premium Income Municipal Fund 2, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 2,575 Cook County Community High School District 219, Niles No Opt. Call Aaa $ 1,431,443
Township, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - MBIA Insured
3,615 Cook County Community High School District 219, Niles No Opt. Call Aaa 2,080,035
Township, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - MBIA Insured (ETM)
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,000 5.250%, 11/15/14 5/14 at 100.00 A 2,079,620
4,420 5.250%, 11/15/15 5/14 at 100.00 A 4,560,556
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 359,640
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa3 956,340
Medical Center, Series 2002, 5.500%, 5/15/32
3,090 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- 3,185,728
Hospital, Series 2003, 6.000%, 7/01/33
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call Aa3 3,377,460
Lutheran General Health System, Series 1993C,
6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance Bonds,
Series 2000A:
340 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 348,109
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,255,570
11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AA 12,732,169
Series 2001, 6.000%, 11/01/26 - FGIC Insured
2,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA 2,107,360
Series 2002, 5.500%, 2/01/18 - FGIC Insured
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 1,920,752
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aaa 915,849
4,020 Lake, Cook, Kane and McHenry Counties Community Unit No Opt. Call AAA 4,504,933
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- 861,378
1,750 5.250%, 1/01/30 1/16 at 100.00 AA- 1,725,360
17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call Baa3 8,627,597
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 A1 1,533,628
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 2,591,587
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
127,510 Total Illinois 99,341,594
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.8% (1.7% OF TOTAL INVESTMENTS)
1,000 Ball State University, Indiana, Student Fee Revenue Bonds, 1/12 at 100.00 A+ (4) 1,097,940
Series 2002K, 5.750%, 7/01/20 (Pre-refunded 1/01/12) -
FGIC Insured
3,500 Indiana Bond Bank, Special Program Bonds, East Chicago 2/10 at 101.00 AAA 3,758,720
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) 862,131
4,195 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA (4) 4,492,719
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
Indiana University, Student Fee Revenue Bonds, Series 2004P:
$ 2,750 5.000%, 8/01/22 - AMBAC Insured 8/14 at 100.00 AAA $ 2,846,745
1,600 5.000%, 8/01/24 - AMBAC Insured 8/14 at 100.00 AAA 1,643,952
1,550 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BBB 1,460,100
Madison Center Inc., Series 2005, 5.250%, 2/15/23
------------------------------------------------------------------------------------------------------------------------------------
15,400 Total Indiana 16,162,307
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.9% (1.1% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,051,460
Medical Center, Series 2000, 6.250%, 7/01/25
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 6,840,480
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
2,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 2,136,180
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Iowa 11,028,120
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
105 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 107,359
Single Family Mortgage Revenue Refunding Bonds,
Series 1994A-1, 7.900%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.3% (3.7% OF TOTAL INVESTMENTS)
355 Bossier Public Trust Financing Authority, Louisiana, Single Family 8/08 at 100.00 AAA 364,518
Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
2,205 East Baton Rouge Parish Mortgage Finance Authority, Louisiana, 10/08 at 100.50 Aaa 2,234,856
GNMA/FNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Bonds, Series 1994C,
6.350%, 10/01/28 (Alternative Minimum Tax)
4,350 Louisiana Citizens Property Insurance Corporation, Assessment 6/16 at 100.00 AAA 4,306,457
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+ 4,011,680
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
2,700 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 2,594,160
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2006:
14,550 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 Aaa 14,387,186
5,920 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aa3 5,608,668
2,755 Orleans Levee District, Louisiana, Levee District General 6/08 at 102.00 AAA 2,791,035
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
36,835 Total Louisiana 36,298,560
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 A- 1,788,572
Bonds, Series 2006A, 5.250%, 9/01/26 - XLCA Insured
1,205 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 A+ 1,122,530
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 A (4) 1,533,990
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.250%, 7/01/19 (Pre-refunded 7/01/14)
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Maryland 4,445,092
------------------------------------------------------------------------------------------------------------------------------------
37
NPM
Nuveen Premium Income Municipal Fund 2, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.9% (4.2% OF TOTAL INVESTMENTS)
$ 2,195 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R $ 2,288,112
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
1,770 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,702,775
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 975,300
Hampshire College, Series 2004, 5.700%, 10/01/34
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 AA 9,442,910
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 1,086,096
Revenue Bonds, Caritas Christi Obligated Group, Series 1999A,
5.625%, 7/01/20
2,645 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 Aaa 2,442,049
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 - FGIC Insured
105 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 Aaa 113,176
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 (Pre-refunded 5/15/12) -
FGIC Insured
1,265 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 Aaa 996,643
Bonds, Series 2007, Residual Trust 7039, 4.069%, 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 12,346,428
1,850 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 2,003,587
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 A (4) 2,455,020
4,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 4,364,480
------------------------------------------------------------------------------------------------------------------------------------
38,755 Total Massachusetts 40,216,576
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.1% (2.5% 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 4,015,908
7,955 0.000%, 12/01/22 No Opt. Call AAA 3,937,486
8,260 0.000%, 12/01/23 No Opt. Call AAA 3,854,777
8,575 0.000%, 12/01/24 No Opt. Call AAA 3,773,943
1,200 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,195,104
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,495,815
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
1,935 Michigan State Hospital Finance Authority, Revenue Refunding 8/08 at 100.00 BB- 1,937,264
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 Baa3 292,883
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
3,270 Romulus Community Schools, Wayne County, Michigan, General 5/13 at 100.00 AA- 3,406,392
Obligation Bonds, Series 2003, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
40,695 Total Michigan 23,909,572
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.2% (2.5% OF TOTAL INVESTMENTS)
$ 8,165 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete Inc., 7/14 at 100.00 A- $ 8,022,521
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 1,046,680
1,050 5.875%, 12/01/29 12/13 at 100.00 Baa1 1,063,881
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,561,952
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 A (4) 3,202,440
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 (Pre-refunded 1/01/11) - FGIC Insured
310 Minnesota Housing Finance Agency, Rental Housing Bonds, 8/08 at 100.00 AAA 310,843
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
550 Minnesota Housing Finance Agency, Single Family Mortgage 7/08 at 100.00 AA+ 557,541
Bonds, Series 1996G, 6.250%, 7/01/26
(Alternative Minimum Tax)
820 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 856,096
Revenue Bonds, Series 2000C, 6.100%, 7/01/30
(Alternative Minimum Tax)
1,065 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 1,079,303
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 1,042,510
Series 2004A, 5.250%, 10/01/19
1,540 Southern Minnesota Municipal Power Agency, Power Supply 6/08 at 100.00 AAA 1,603,063
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 (4) 1,821,722
Health Services, Series 2003B, 5.500%, 7/01/25
(Pre-refunded 7/01/14)
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,012,960
Revenue Bonds, Healtheast Inc., Series 2005,
6.000%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
23,520 Total Minnesota 24,181,512
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,675 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 3,694,551
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.3% (2.6% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,991,340
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+ 195,112
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
2,885 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 2,922,851
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 A+ 9,326,160
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+ 832,182
1,225 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,082,018
2,500 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 2,528,150
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
39
NPM
Nuveen Premium Income Municipal Fund 2, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
$ 1,200 Missouri Health and Educational Facilities Authority, Revenue 2/14 at 100.00 BBB+ $ 1,209,768
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 1,305,588
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 1,353,775
2,000 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 2,166,040
------------------------------------------------------------------------------------------------------------------------------------
24,290 Total Missouri 24,912,984
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.1% (0.6% OF TOTAL INVESTMENTS)
1,470 Municipal Energy Agency of Nebraska, Power Supply System 4/13 at 100.00 AAA 1,557,333
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 4,622,413
System Revenue Bonds, Nebraska City 2, Series 2006A,
5.000%, 2/01/49 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
6,140 Total Nebraska 6,179,746
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.8% (2.3% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,444,546
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 5,975,456
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
4,000 Clark County, Nevada, Subordinate Lien Airport Revenue 7/14 at 100.00 Aa3 4,032,320
Bonds, Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
1,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 AAA 799,000
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
21,205 Total Nevada 22,251,322
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.9% (4.1% OF TOTAL INVESTMENTS)
5,480 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 5,830,391
Revenue Bonds, Series 2003, 5.125%, 12/15/20 - FSA Insured
135 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aaa 149,418
Bonds, Series 2003, 5.125%, 12/15/20 (Pre-refunded 12/15/13) -
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- 1,394,033
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,045,720
520 New Jersey Health Care Facilities Financing Authority, 7/18 at 100.00 Baa2 507,036
New Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,675 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/08 at 101.50 AAA 3,690,913
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 3,795,420
System Bonds, Series 2003C, 5.500%, 6/15/22
(Pre-refunded 6/15/13)
3,425 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 3,792,160
System Bonds, Series 2006A, 5.250%, 12/15/20
4,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A 4,118,040
5.000%, 1/01/19 - FGIC Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,115,170
5.000%, 1/01/24 - FSA Insured
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 10,500 Tobacco Settlement Financing Corporation, New Jersey, 6/17 at 100.00 BBB $ 9,094,575
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A,
5.000%, 6/01/29
3,185 Union County Utilities Authority, New Jersey, Solid Waste Facility 6/08 at 101.00 AAA 3,194,173
Subordinate Lease Revenue Bonds, Ogden Martin Systems of
Union Inc., Series 1998A, 5.350%, 6/01/23 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
39,645 Total New Jersey 39,727,049
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.0% (8.4% OF TOTAL INVESTMENTS)
5,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 Baa3 5,019,500
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 2,070,827
2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 AA 2,180,922
1,500 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 1,596,885
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- 1,260,738
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/30
150 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA 119,820
Bonds, Driver Trust 1649, 2006, 6.799%, 2/15/47 -
MBIA Insured (IF)
4,580 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 Aaa 4,272,728
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 Aaa 3,051,015
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
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 7,183,481
7,260 5.000%, 8/01/24 8/13 at 100.00 AAA 7,540,454
2,500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 2,599,550
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/22
35 New York City, New York, General Obligation Bonds, No Opt. Call AA 35,695
Fiscal Series 1996J, 5.500%, 2/15/26
4,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA 4,212,680
Fiscal Series 2004C, 5.250%, 8/15/20
2,150 New York City, New York, General Obligation Bonds, 3/15 at 100.00 AA 2,207,427
Fiscal Series 2005J, 5.000%, 3/01/25
5,000 New York City, New York, General Obligation Bonds, 4/15 at 100.00 AA 5,141,050
Fiscal Series 2005M, 5.000%, 4/01/24
7,425 New York Convention Center Development Corporation, 11/15 at 100.00 Aaa 7,432,202
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+ 6,363,120
5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,303,898
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- 3,505,774
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,110,380
6,250 Port Authority of New York and New Jersey, Special Project Bonds, No Opt. Call AAA 6,884,500
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 1,032,650
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
78,830 Total New York 81,125,296
------------------------------------------------------------------------------------------------------------------------------------
41
NPM
Nuveen Premium Income Municipal Fund 2, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 2,150 Durham Urban Redevelopment Authority, North Carolina, 8/08 at 104.00 AAA $ 2,206,029
FHA-Insured Mortgage Loan Revenue Bonds, Durham Hosiery
Mill, Series 1987, 7.500%, 8/01/29 (Alternative Minimum Tax)
495 North Carolina Housing Finance Agency, Single Family Revenue 9/08 at 100.00 AA 498,559
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+ 1,297,900
2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,526,223
------------------------------------------------------------------------------------------------------------------------------------
6,340 Total North Carolina 6,528,711
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,010 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 1,038,432
Program Bonds, Series 2000C, 6.150%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.7% (2.8% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
90 5.125%, 6/01/24 6/17 at 100.00 BBB 84,774
900 5.875%, 6/01/30 6/17 at 100.00 BBB 837,450
845 5.750%, 6/01/34 6/17 at 100.00 BBB 763,872
1,965 5.875%, 6/01/47 6/17 at 100.00 BBB 1,738,868
3,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 3,352,320
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 2,458,709
4,105 5.250%, 5/15/18 - MBIA Insured 5/13 at 100.00 AAA 4,308,239
2,000 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 7/08 at 102.00 Aa2 1,993,320
Mortgage Revenue Bonds, Courtyards of Kettering,
Series 1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax)
5,850 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 5,573,354
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
6,200 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 6,224,490
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
27,285 Total Ohio 27,335,396
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.7% (2.8% 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 498,075
750 5.375%, 9/01/36 9/16 at 100.00 BBB 729,218
Oklahoma Development Finance Authority, Revenue Bonds,
Saint John Health System, Series 2007:
6,200 5.000%, 2/15/37 2/17 at 100.00 AA- 6,106,504
2,560 5.000%, 2/15/42 2/17 at 100.00 AA- 2,502,630
10,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 A 8,874,400
Revenue Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
5,000 Oklahoma State Student Loan Authority, Senior Lien Revenue 6/11 at 102.00 AAA 5,078,050
Bonds, Series 2001A-1, 5.625%, 6/01/31
(Alternative Minimum Tax)
3,660 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 3,610,407
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36
------------------------------------------------------------------------------------------------------------------------------------
28,670 Total Oklahoma 27,399,284
------------------------------------------------------------------------------------------------------------------------------------
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 7,860 Multnomah County Hospital Facilities Authority, Oregon, 10/14 at 100.00 AA $ 8,257,952
Revenue Bonds, Sisters of Providence Health System,
Series 2004, 5.500%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5% (1.5% OF TOTAL INVESTMENTS)
3,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,595,445
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 1,651,410
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 416,010
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AAA 1,175,948
Local Government Revenue Bonds, Series 1997B,
5.700%, 7/01/27 - AMBAC Insured
5,850 Pennsylvania Public School Building Authority, Lease 12/16 at 100.00 Aaa 5,698,719
Revenue 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 1,027,740
Series 2005, 5.000%, 9/01/29
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 1,089,543
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,450 Total Pennsylvania 14,654,815
------------------------------------------------------------------------------------------------------------------------------------
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 9,905,500
6,000 6.125%, 6/01/32 6/12 at 100.00 BBB 5,920,800
------------------------------------------------------------------------------------------------------------------------------------
16,000 Total Rhode Island 15,826,300
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 10.4% (6.2% OF TOTAL INVESTMENTS)
14,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 14,277,339
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) 17,564,822
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17
(Pre-refunded 12/01/12)
2,500 Greenville, South Carolina, Hospital Facilities Revenue Refunding 5/13 at 100.00 AAA 2,559,925
Bonds, Series 2003A, 5.000%, 5/01/25 - AMBAC Insured
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/08 at 100.00 AAA 7,179,112
Revenue Bonds, Series 1991, 4.000%, 1/01/23 - MBIA Insured
1,250 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- (4) 1,389,738
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
4,750 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 4,818,163
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 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) 1,573,791
165 6.875%, 8/01/27 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 194,076
4,450 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,140,195
550 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 633,870
5,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 5,037,200
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
57,045 Total South Carolina 60,368,231
------------------------------------------------------------------------------------------------------------------------------------
43
NPM
Nuveen Premium Income Municipal Fund 2, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1% (0.6% OF TOTAL INVESTMENTS)
$ 3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ $ 2,983,488
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
1,500 Memphis-Shelby County Airport Authority, Tennessee, 3/10 at 101.00 AAA 1,535,580
Airport Revenue Bonds, Series 1999D, 6.000%, 3/01/19 -
AMBAC Insured (Alternative Minimum Tax)
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
800 5.500%, 11/01/37 11/17 at 100.00 N/R 743,944
1,000 5.500%, 11/01/46 11/17 at 100.00 N/R 906,730
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Tennessee 6,169,742
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.3% (7.9% OF TOTAL INVESTMENTS)
5,810 Board of Regents, University of Texas System, Financing 2/17 at 100.00 Aaa 4,971,669
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 Caa1 4,997,529
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- 10,109,200
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) 3,667,759
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 4,587,100
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 1,011,420
1,000 5.000%, 12/01/21 12/14 at 100.00 A 1,008,610
2,500 5.125%, 12/01/22 12/14 at 100.00 A 2,529,125
2,800 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,826,908
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 AA 4,082,840
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call AAA 4,351,718
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 754,232
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 5,894,616
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- 778,312
1,250 5.125%, 8/15/26 No Opt. Call BBB- 1,155,538
2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,136,180
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 Caa1 741,640
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
3,935 Spring Branch Independent School District, Harris County, Texas, 2/11 at 100.00 AAA 4,193,687
Limited Tax Schoolhouse and Refunding Bonds, Series 2001,
5.125%, 2/01/26 (Pre-refunded 2/01/11)
6,500 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 6,403,475
Corporation, Texas, Revenue Bonds, Series 2007A,
5.000%, 2/15/36
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 870 Texas, General Obligation Bonds, Transportation Commission 4/17 at 100.00 AA $ 805,002
Mobility Fund, Series 2007, Residuals 1871-1,
8.206%, 4/01/33 (IF)
3,335 Texas, General Obligation Bonds, Transportation Commission 4/17 at 100.00 AA 3,085,842
Mobility Fund, Series 2007, Residuals 1871-2,
8.233%, 4/01/33 (IF)
3,900 Texas, General Obligation Bonds, Veterans Housing Assistance 12/11 at 101.00 Aa1 3,961,776
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 1,154,186
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 1,667,510
Unlimited Tax School Building and Refunding Bonds,
Series 2001, 0.000%, 2/15/25 (Pre-refunded 2/15/11)
------------------------------------------------------------------------------------------------------------------------------------
88,135 Total Texas 76,875,874
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.0% OF TOTAL INVESTMENTS)
185 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101.50 AAA 189,135
Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax)
115 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/08 at 101.00 AAA 117,860
Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
300 Total Utah 306,995
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.0% (6.0% OF TOTAL INVESTMENTS)
15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 14,890,349
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 8,147,475
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 5,419,650
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
10,080 King County School District 401, Highline, Washington, 6/12 at 100.00 AA+ 10,812,413
General 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 A1 7,221,869
5.250%, 9/01/22 - FGIC Insured
2,820 Skagit County Public Hospital District 1, Washington, General 12/14 at 100.00 Aaa 2,974,621
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 2,600,625
Bonds, Series 2001, 5.125%, 12/01/22 - MBIA Insured
1,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 934,050
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
4,905 Washington, Various Purpose General Obligation Bonds, 1/09 at 100.00 AA+ 4,955,129
Series 1999B, 5.000%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
55,770 Total Washington 57,956,181
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.4% (0.9% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,895,100
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue Bonds, 4/09 at 101.00 Aaa 1,005,550
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 A+ 2,379,374
Student Fees, Series 2004C, 5.000%, 10/01/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,355 Total West Virginia 8,280,024
------------------------------------------------------------------------------------------------------------------------------------
45
NPM
Nuveen Premium Income Municipal Fund 2, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.2% (1.9% OF TOTAL INVESTMENTS)
$ 5,105 Wisconsin Health and Educational Facilities Authority, 2/09 at 101.00 BBB+ $ 4,868,383
Revenue 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 278,114
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,004,520
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/24
3,215 Wisconsin Health and Educational Facilities Authority, 8/08 at 101.00 AAA 3,254,191
Revenue Bonds, Marshfield Clinic, Series 1997,
5.625%, 2/15/17 - MBIA Insured
4,530 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 A- 3,891,361
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006, 5.250%, 8/15/34
5,300 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA- 5,402,503
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,465 Total Wisconsin 18,699,072
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,750 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB 2,534,785
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,087,180 Total Long-Term Investments (cost $942,812,253) - 166.2% 962,152,662
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.2% (0.7% OF TOTAL INVESTMENTS)
2,910 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, VMIG-1 2,910,000
ROCS 660, Variable Rate Demand Obligations, 4.010%, 5/01/34 -
FGIC Insured (5)
4,000 Ohio Air Quality Development Authority, Pollution Control VMIG-1 4,000,000
Revenue Bonds, Dayton Power and Light Company Project,
Variable Rate Demand Obligations, Trust 1219, 5.500%, 1/01/34 (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 6,910 Total Short-Term Investments (cost $6,910,000) 6,910,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $949,722,253) - 167.4% 969,062,662
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.6)% (55,440,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 12,300,670
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.9)% (6) (347,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $578,923,332
====================================================================================================================
(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 Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the
Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period
end.
(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) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
(6) Preferred Shares, at Liquidation Value as a percentage of
total investments is (35.8)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
46
NPT
Nuveen Premium Income Municipal Fund 4, Inc.
Portfolio of INVESTMENTS
April 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.6% (2.7% OF TOTAL INVESTMENTS)
$ 5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 5,265,515
Bonds, Series 2001, 5.750%, 12/01/16
2,395 Alabama Housing Finance Authority, FNMA Multifamily Housing 2/11 at 102.00 AAA 2,417,393
Revenue Bonds, South Bay Apartments, Series 2000K,
5.950%, 2/01/33 (Alternative Minimum Tax)
11,895 Alabama Special Care Facilities Financing Authority, Birmingham, 5/08 at 100.00 Aaa 11,908,679
Hospital Revenue Bonds, Daughters of Charity National Health
System - Providence Hospital and St. Vincent's Hospital,
Series 1995, 5.000%, 11/01/25 (ETM)
5,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 4,926,500
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
1,000 Birmingham Special Care Facilities Financing Authority, Alabama, 11/15 at 100.00 Baa1 870,590
Revenue Bonds, Baptist Health System Inc., Series 2005A,
5.000%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
25,440 Total Alabama 25,388,677
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9% (0.5% OF TOTAL INVESTMENTS)
1,665 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 1,678,869
Bonds, Series 2005A, 5.000%, 12/01/30 - FGIC Insured
3,065 Alaska Municipal Bond Bank Authority, General Obligation Bonds, 12/13 at 100.00 AAA 3,406,686
Series 2003E, 5.250%, 12/01/26 (Pre-refunded 12/01/13) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,730 Total Alaska 5,085,555
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.0% (1.2% OF TOTAL INVESTMENTS)
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,056,400
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 4,268,715
Arizona, Electric System Revenue Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
2,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call AA- 1,795,600
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
11,100 Total Arizona 11,120,715
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
39 Lonoke County Residential Housing Facilities Board, Arkansas, 10/08 at 100.00 Aaa 39,725
FNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 17.1% (10.0% OF TOTAL INVESTMENTS)
10,000 Anaheim Public Finance Authority, California, Public Improvement 9/17 at 100.00 A 8,855,500
Project Lease Bonds, Series 2007A-1, 4.375%, 3/01/37 -
FGIC Insured
17,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 16,030,489
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+ 4,843,800
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
47
NPT
Nuveen Premium Income Municipal Fund 4, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,900 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 AA- $ 2,830,052
Sutter Health, Series 2007A, 5.000%, 11/15/42
11,000 California Infrastructure Economic Development Bank, First Lien 1/28 at 100.00 AAA 11,749,540
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+ 2,029,720
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
19,545 California, General Obligation Bonds, Series 2005, 6/15 at 100.00 A1 19,835,439
5.000%, 6/01/33 - CIFG Insured (UB)
4,780 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 3,926,435
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14 (ETM)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
610 5.125%, 6/01/47 6/17 at 100.00 BBB 493,679
1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 897,890
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,152,190
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 1,192,964
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 10,505,180
Sales Tax Revenue Bonds, Refunding Series 2006A,
4.250%, 7/01/31 - FSA Insured (UB)
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
4,430 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 1,070,820
31,300 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 6,678,168
1,945 South Gate Public Financing Authority, California, Water Revenue No Opt. Call Baa3 2,105,249
Refunding Bonds, Series 1996A, 6.000%, 10/01/12 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
127,010 Total California 94,197,115
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.6% (2.7% OF TOTAL INVESTMENTS)
2,000 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA (4) 2,154,820
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
(Pre-refunded 9/01/11)
450 Colorado Housing Finance Authority, Single Family Program 10/09 at 105.00 Aa2 481,046
Senior Bonds, Series 1999C-3, 6.750%, 10/01/21
2,695 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 3,003,901
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 A3 (4) 3,184,726
10,000 5.000%, 12/01/33 (Pre-refunded 12/01/13) - XLCA Insured 12/13 at 100.00 A3 (4) 10,832,400
4,345 El Paso County School District 20, Academy, Colorado, General 12/12 at 100.00 Aa3 4,642,198
Obligation Bonds, Series 2002, 5.250%, 12/15/17 - FGIC Insured
755 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 787,359
Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
23,185 Total Colorado 25,086,450
------------------------------------------------------------------------------------------------------------------------------------
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.3% (1.3% OF TOTAL INVESTMENTS)
$ 5 District of Columbia, General Obligation Bonds, Series 1993E, 6/08 at 100.00 AAA $ 5,016
6.000%, 6/01/09 - CAPMAC Insured
4,250 District of Columbia, Hospital Revenue Refunding Bonds, 6/08 at 101.00 AAA 4,289,355
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 3,732,910
15,235 0.000%, 4/01/30 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 32.93 AAA 4,595,028
------------------------------------------------------------------------------------------------------------------------------------
29,160 Total District of Columbia 12,622,309
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 6.3% (3.7% OF TOTAL INVESTMENTS)
5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 5,033,600
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 5,051,400
Tampa International Airport, Series 2003A, 5.250%, 10/01/18 -
MBIA Insured (Alternative Minimum Tax)
5,000 Martin County Industrial Development Authority, Florida, Industrial 6/08 at 100.00 BB+ 5,010,900
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 1,410,691
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.850%, 7/01/20 - FSA Insured
(Alternative Minimum Tax)
3,385 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 3,111,831
International Airport, Series 2005A, 5.000%, 10/01/37 -
XLCA Insured (Alternative Minimum Tax)
5,455 South Miami Health Facilities Authority, Florida, Hospital Revenue, 8/17 at 100.00 AA- 5,323,480
Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42
9,500 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 9,661,785
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,720 Total Florida 34,603,687
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.6% (1.5% OF TOTAL INVESTMENTS)
4,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call A 4,655,332
Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,880 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call A+ 3,260,938
Bonds, Series 1992B, 8.250%, 1/01/11
5,500 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call AAA 6,231,060
Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Georgia 14,147,330
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.1% (0.6% OF TOTAL INVESTMENTS)
3,720 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call AA 4,050,634
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13
1,580 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aaa 1,733,623
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
5,300 Total Hawaii 5,784,257
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
750 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 632,933
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/37
------------------------------------------------------------------------------------------------------------------------------------
49
NPT
Nuveen Premium Income Municipal Fund 4, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.2% (10.7% OF TOTAL INVESTMENTS)
$ 4,000 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA $ 4,429,240
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 18,966,050
General Obligation Bonds, Series 2006, 5.000%, 12/01/35
(Pre-refunded 12/01/16) (UB)
5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 5,482,901
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 5,089,000
5.250%, 1/01/28 - FGIC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 1,623,408
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 Baa3 1,811,621
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call Baa3 2,201,840
6,030 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 6,766,504
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 1,437,949
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+ (4) 2,801,735
Memorial Hospital, Series 2004A, 5.250%, 8/15/34
(Pre-refunded 8/15/14)
5,565 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 A- 5,219,302
Systems, Series 2007A, 5.500%, 8/01/37
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,009,600
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 Baa3 3,825,360
Medical Center, Series 2002, 5.500%, 5/15/32
4,075 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call Aa3 4,704,465
Lutheran General Health System, Series 1993C, 7.000%, 4/01/14
9,795 Lake, Cook, Kane and McHenry Counties Community Unit School No Opt. Call AAA 10,980,979
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 6,413,355
4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,632,207
36,040 0.000%, 6/15/40 - MBIA Insured No Opt. Call AAA 6,486,840
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,671,712
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
126,850 Total Illinois 100,554,068
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.3% (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 856,713
2,705 0.000%, 2/01/25 No Opt. Call AA 1,113,324
3,000 Hospital Authority of Delaware County, Indiana, Hospital Revenue 8/16 at 100.00 Baa2 2,544,660
Bonds, Cardinal Health System, Series 2006, 5.250%, 8/01/36
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 3,965 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 AAA $ 4,110,991
Butler University, Series 2001, 5.500%, 2/01/26 -
MBIA Insured
1,500 Indiana Educational Facilities Authority, Revenue Bonds, 10/09 at 101.00 AAA 1,564,500
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 23,767,256
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 3,434,490
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 2,800,000
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 4,173,680
Bonds, Series 2003A, 5.000%, 6/01/23 - FSA Insured
6,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 6,547,200
Bonds, Series 2003A, 5.000%, 6/01/24 (Pre-refunded 6/01/13) -
FSA Insured
420 Marion County Convention and Recreational Facilities Authority, 6/09 at 100.00 AAA 420,643
Indiana, Excise Tax Lease Rental Revenue Bonds, Series 1997A,
5.000%, 6/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,340 Total Indiana 51,333,457
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BBB- 916,040
Care Initiatives Project, Series 2006A, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.9% (1.1% OF TOTAL INVESTMENTS)
2,000 Olathe, Kansas, Health Facilities Revenue Bonds, Olathe Medical 9/10 at 100.00 AAA 2,063,900
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 6,783,777
General Obligation Bonds, Series 2000, 3.500%, 9/01/16
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 1,776,443
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,575 Total Kansas 10,624,120
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 7.2% (4.2% OF TOTAL INVESTMENTS)
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,878,975
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+ 5,155,768
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/32
10,000 Louisiana Public Facilities Authority, Revenue Bonds, 7/17 at 100.00 A+ 8,645,500
Archdiocese of New Orleans, Series 2007, 4.500%, 7/01/37 -
CIFG Insured
3,800 Louisiana Public Facilities Authority, Revenue Bonds, 5/17 at 100.00 A3 3,651,040
Ochsner Clinic Foundation Project, Series 2007A,
5.500%, 5/15/47
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2006:
1,480 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 Aaa 1,463,439
15,820 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aa3 14,988,026
170 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 Aa3 143,179
Residuals 660-1, 5.082%, 5/01/41 - FGIC Insured (IF)
3,795 Orleans Levee District, Louisiana, Levee District General 6/08 at 100.50 AAA 3,840,236
Obligation Bonds, Series 1986, 5.950%, 11/01/14 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
41,965 Total Louisiana 39,766,163
------------------------------------------------------------------------------------------------------------------------------------
51
NPT
Nuveen Premium Income Municipal Fund 4, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.1% (1.2% OF TOTAL INVESTMENTS)
$ 2,050 Maryland Community Development Administration, Housing 7/08 at 101.00 Aa2 $ 2,067,220
Revenue Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Housing 7/08 at 101.00 Aa2 2,913,659
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 A- 50,367
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 2,172,806
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - MBIA Insured (UB)
1,935 Montgomery County Housing Opportunities Commission, 7/08 at 100.00 Aa2 1,962,206
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 2,356,068
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.125%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,460 Total Maryland 11,522,326
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.1% (0.6% OF TOTAL INVESTMENTS)
3,585 Massachusetts Development Finance Agency, Revenue Bonds, 3/15 at 100.00 BBB 3,090,306
Curry College, Series 2005A, 5.000%, 3/01/35 - ACA Insured
1,000 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 BB- 894,460
Orchard Cove, Series 2007, 5.250%, 10/01/26
1,000 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB- 900,620
Revenue Bonds, Milton Hospital Project, Series 2005D,
5.375%, 7/01/35
1,155 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 Aaa 909,978
Bonds, Series 2007, Residual Trust 7039, 4.069%, 8/01/46 -
FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
6,740 Total Massachusetts 5,795,364
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.6% (4.4% OF TOTAL INVESTMENTS)
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 6,021,120
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA Insured
8,915 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/08 at 100.00 AAA 8,919,725
Bonds, Series 1997A, 5.000%, 7/01/27 - MBIA Insured
5,400 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 A 5,038,740
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
4,290 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 4,325,693
Mortgage Hospital Revenue Bonds, Portage Health System Inc.,
Series 1998, 5.450%, 8/01/47 (Pre-refunded 8/01/08) -
MBIA Insured
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,052,200
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 Ba3 9,469,740
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 BBB 867,600
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30
2,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,994,420
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
43,105 Total Michigan 41,689,238
------------------------------------------------------------------------------------------------------------------------------------
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.2% (0.7% OF TOTAL INVESTMENTS)
$ 650 Minneapolis-St. Paul Housing Finance Board, Minnesota, 5/08 at 102.00 AAA $ 658,002
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 3,736,180
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 2,337,519
Regions Hospital Parking Ramp Project, Series 2007-1,
5.000%, 8/01/36
------------------------------------------------------------------------------------------------------------------------------------
7,025 Total Minnesota 6,731,701
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6% (0.9% OF TOTAL INVESTMENTS)
2,975 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,990,827
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
5,180 Mississippi, General Obligation Refunding Bonds, No Opt. Call AA 5,880,025
Series 2002A, 5.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
8,155 Total Mississippi 8,870,852
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,450 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 1,229,963
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 3,033,780
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
------------------------------------------------------------------------------------------------------------------------------------
4,450 Total Missouri 4,263,743
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.7% (1.0% OF TOTAL INVESTMENTS)
9,000 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call Aaa 9,359,820
Loan Program, Series 1993A-5A, 6.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.5% (1.5% OF TOTAL INVESTMENTS)
4,500 Clark County School District, Nevada, General Obligation No Opt. Call AAA 4,912,155
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 7,217,980
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 1,755,313
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 0.000%, 1/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,925 Total Nevada 13,885,448
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.0% (2.9% OF TOTAL INVESTMENTS)
500 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 457,505
Development Revenue Bonds, The Evergreens Project,
Series 2007, 5.625%, 1/01/38
1,100 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- (4) 1,223,695
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10)
880 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AAA 1,013,223
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 344,865
2,345 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 2,695,695
11,960 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 AAA 12,975,881
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 4,651,618
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 3,954,600
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A,
4.750%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
26,080 Total New Jersey 27,317,082
------------------------------------------------------------------------------------------------------------------------------------
53
NPT
Nuveen Premium Income Municipal Fund 4, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.3% (4.9% OF TOTAL INVESTMENTS)
$ 855 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R $ 753,512
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/32
1,200 Hempstead Industrial Development Agency, New York, Resource No Opt. Call Baa3 1,198,656
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 3,796,944
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 Aaa 3,051,015
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
6,740 New York City Transitional Finance Authority, New York, Future 5/08 at 101.00 AAA 6,813,668
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 2000C:
3,630 5.875%, 11/01/16 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 3,916,879
220 5.875%, 11/01/16 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 237,343
5,000 5.500%, 11/01/24 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 5,357,650
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- 11,135,988
2,500 5.500%, 6/01/18 6/12 at 100.00 AA- 2,620,775
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 6,884,500
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
44,565 Total New York 45,766,930
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.9% (1.7% OF TOTAL INVESTMENTS)
750 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 744,908
Health Care System Revenue Bonds, Carolinas Health Care,
Series 2007A, 5.000%, 1/15/31
2,445 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 2,538,692
of Participation, Correctional Facilities, Series 2004A,
5.000%, 2/01/21
2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 2,143,680
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 10,503,100
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,195 Total North Carolina 15,930,380
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.3% (1.9% OF TOTAL INVESTMENTS)
6,065 Buckeye Tobacco Settlement Financing Authority, Ohio, 6/17 at 100.00 BBB 5,712,805
Tobacco Settlement Asset-Backed Revenue Bonds,
Senior Lien, Series 2007A-2, 5.125%, 6/01/24
8,065 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 8,108,470
5.000%, 1/01/31 - FSA Insured
3,000 Franklin County, Ohio, Development Revenue Bonds, American 10/09 at 101.00 A+ 3,099,090
Chemical Society, Series 1999, 5.800%, 10/01/14
1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/08 at 100.00 Aa2 999,970
Mortgage Revenue Bonds, Hamilton Creek Apartments Project,
Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
18,130 Total Ohio 17,920,335
------------------------------------------------------------------------------------------------------------------------------------
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.8% (1.6% OF TOTAL INVESTMENTS)
Oklahoma Development Finance Authority, Revenue Bonds,
Saint John Health System, Series 2007:
$ 4,800 5.000%, 2/15/37 2/17 at 100.00 AA- $ 4,727,616
2,655 5.000%, 2/15/42 2/17 at 100.00 AA- 2,595,501
280 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa 285,939
Revenue Bonds, Homeownership Loan Program, Series 2000C-2,
6.200%, 9/01/28 (Alternative Minimum Tax)
4,185 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 4,128,293
Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36
3,340 Tulsa Industrial Authority, Oklahoma, Hospital Revenue No Opt. Call AAA 3,495,611
Refunding Bonds, Hillcrest Medical Center, Series 1996,
6.500%, 6/01/09 - CONNIE LEE Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
15,260 Total Oklahoma 15,232,960
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.9% (1.1% OF TOTAL INVESTMENTS)
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 416,010
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
1,800 Pennsylvania Economic Development Financing Authority, 7/08 at 100.00 B+ 1,791,792
Senior Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994A, 6.400%, 1/01/09
(Alternative Minimum Tax)
5,490 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 Aaa 5,348,028
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 2,727,790
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,390 Total Pennsylvania 10,283,620
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.5% (1.5% OF TOTAL INVESTMENTS)
12,390 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 13,952,130
Refunding Bonds, Series 1997, 6.500%, 7/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.5% (2.1% OF TOTAL INVESTMENTS)
20,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 19,316,199
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.3% (2.5% OF TOTAL INVESTMENTS)
4,120 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 4,273,676
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 A+ 2,946,540
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 Baa1 5,697,200
5,750 4.000%, 1/01/23 - MBIA Insured 7/08 at 100.00 AAA 5,431,565
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 5,510,208
Revenue Refunding Bonds, Series 1998A, 5.500%, 1/01/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,955 Total South Carolina 23,859,189
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,779,610
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
55
NPT
Nuveen Premium Income Municipal Fund 4, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.9% (0.5% OF TOTAL INVESTMENTS)
$ 5,075 Knox County Health, Educational and Housing Facilities Board, 1/17 at 30.07 A- $ 683,907
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 1,531,890
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+ 610,858
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36
Sumner County Health, Educational, and Housing Facilities Board,
Tennessee, Revenue Refunding Bonds, Sumner Regional Health
System Inc., Series 2007:
860 5.500%, 11/01/37 11/17 at 100.00 N/R 799,740
1,500 5.500%, 11/01/46 11/17 at 100.00 N/R 1,360,095
------------------------------------------------------------------------------------------------------------------------------------
9,615 Total Tennessee 4,986,490
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 19.1% (11.2% OF TOTAL INVESTMENTS)
3,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 1,744,290
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 4,668,357
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 BBB- 3,618,200
Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
3,345 Columbia-Brazoria Independent School District, Texas, 2/09 at 100.00 AAA 3,410,897
Unlimited Tax School Building Bonds, Series 1999,
4.750%, 2/01/25 (Pre-refunded 2/01/09)
2,250 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/14 at 100.00 AAA 2,179,193
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 A+ 8,126,640
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 6,216,000
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 7,036,820
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 9,151,573
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 8,743,425
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 5,961,210
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/39
89 Midland Housing Finance Corporation, Texas, Single Family 5/08 at 101.00 Aaa 90,881
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 765,193
760 5.500%, 2/15/23 2/11 at 100.00 AAA 795,720
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 1,690,011
1,640 5.500%, 2/15/23 (Pre-refunded 2/15/11) 2/11 at 100.00 Aaa 1,765,362
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
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 $ 3,072,432
2,300 5.125%, 2/15/31 8/11 at 100.00 Aaa 2,329,532
700 Mt. Pleasant Independent School District, Titus County, Texas, 8/11 at 100.00 Aaa 752,976
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 6,481,740
Housing Revenue Bonds, Angelo State University - Texan
Hall LLC, Series 2002A, 5.000%, 8/01/25 (Pre-refunded 8/01/12) -
MBIA Insured
3,410 Retama Development Corporation, Texas, Special Facilities 12/12 at 100.00 AAA 4,050,432
Revenue Bonds, Retama Park Racetrack, Series 1993,
8.750%, 12/15/18 (Pre-refunded 12/15/12) (6)
1,800 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 1,886,256
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 5,008,978
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26 (Pre-refunded 2/01/11)
3,200 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 3,152,480
Corporation, Texas, Revenue Bonds, Series 2007A,
5.000%, 2/15/36
800 Texas, General Obligation Bonds, Transportation Commission 4/17 at 100.00 AA 740,232
Mobility Fund, Series 2007, Residuals 1872-1,
8.234%, 4/01/33 (IF)
3,000 Texas, General Obligation Bonds, Transportation 4/17 at 100.00 AA 2,775,870
Commission Mobility Fund, Series 2007, Residuals 1872-2,
8.234%, 4/01/33 (IF)
8,500 Travis County Health Facilities Development Corporation, 5/08 at 100.00 Aaa 8,934,435
Texas, Hospital Revenue Bonds, Daughters of Charity National
Health System, Series 1993B, 6.000%, 11/15/22 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
150,569 Total Texas 105,149,135
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.2% (1.3% OF TOTAL INVESTMENTS)
4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding 12/08 at 101.00 N/R 4,441,751
Bonds, South Davis Community Hospital Project,
Series 1998, 5.750%, 12/15/18
4,995 Intermountain Power Agency, Utah, Power Supply Revenue 6/08 at 101.00 Aa3 (4) 5,005,440
Bonds, Series 1996A, 6.150%, 7/01/14 (ETM)
500 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 512,735
Series 2000G, 5.875%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 2001C:
1,400 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 1,431,010
490 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aaa 493,597
------------------------------------------------------------------------------------------------------------------------------------
12,230 Total Utah 11,884,533
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.5% (0.9% OF TOTAL INVESTMENTS)
8,190 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 AAA 8,226,855
Series 2002, 5.000%, 1/15/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.7% (6.3% OF TOTAL INVESTMENTS)
1,855 Chelan County Public Utility District 1, Washington, Hydro 7/09 at 101.00 AA 1,917,903
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 2,715,825
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
220 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 N/R (4) 241,595
Bonds, Wanapum Hydroelectric Development, Series 2005A,
5.000%, 1/01/34 (Pre-refunded 1/01/15) - FGIC Insured
57
NPT
Nuveen Premium Income Municipal Fund 4, Inc. (continued)
Portfolio of INVESTMENTS April 30, (2008) (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 5,780 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 AA- $ 5,730,061
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 Aa3 1,641,045
Unlimited Tax General Obligation and Refunding Bonds,
Series 1993, 5.700%, 12/01/12 - FGIC Insured
8,155 Tacoma, Washington, Electric System Revenue Refunding Bonds, 1/11 at 101.00 AAA 8,885,851
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 Aa3 4,856,736
Series 1994B, 8.000%, 12/01/08 - FGIC Insured
11,000 Washington Public Power Supply System, Revenue Refunding No Opt. Call Aaa 11,587,400
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 4,805,703
Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
2,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 1,868,100
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
1,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 8/13 at 102.00 AAA 1,005,390
Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 -
AMBAC Insured
2,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 8/08 at 102.00 AA 1,997,920
Highline Community Hospital, Series 1998, 5.000%, 8/15/21 -
RAAI Insured
5,500 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 5,624,355
Bonds, Swedish Health Services, Series 1998,
5.500%, 11/15/14 - AMBAC Insured
1,460 Washington State Healthcare Facilities Authority, Revenue 8/17 at 100.00 BBB 1,374,400
Bonds, Virginia Mason Medical Center, Series 2007B,
5.750%, 8/15/37 - ACA Insured
4,485 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 4,575,866
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
56,860 Total Washington 58,828,150
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.0% (1.8% OF TOTAL INVESTMENTS)
500 Wisconsin Health and Educational Facilities Authority, 12/08 at 100.00 AAA 504,890
Revenue 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 7,562,550
Revenue Bonds, Ministry Healthcare Inc., Series 2002A,
5.250%, 2/15/32 - MBIA Insured
4,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 A- 3,436,080
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
5,000 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA- 5,096,702
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,000 Total Wisconsin 16,600,222
------------------------------------------------------------------------------------------------------------------------------------
$ 1,053,983 Total Long-Term Investments (cost $914,130,046) - 169.2% 931,054,913
=============-----------------------------------------------------------------------------------------------------------------------
58
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.5% (0.9% OF TOTAL INVESTMENTS)
$ 8,035 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, VMIG-1 $ 8,035,000
ROCS 660, Variable Rate Demand Obligations, 4.010%, 5/01/34 -
FGIC Insured (5)
=============-----------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $8,035,000) 8,035,000
--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $922,165,046) - 170.7% 939,089,913
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (11.7)% (64,348,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 13,950,967
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (61.5)% (7) (338,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $550,292,880
====================================================================================================================
(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 Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by AMBAC, CIFG, FGIC, MBIA and XLCA as
of April 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the
Fund of changes to the ratings of certain bonds in the
portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period
end.
(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) Investment has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
(6) 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.
(7) Preferred Shares, at Liquidation Value as a percentage of
total investments is (36.0)%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
59
Statement of
ASSETS & LIABILITIES
April 30, 2008 (Unaudited)
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,456,416,984,
$949,722,253 and $922,165,046, respectively) $1,471,860,331 $969,062,662 $939,089,913
Cash 7,961,532 6,287,115 2,269,348
Receivables:
Interest 22,588,939 14,569,655 15,066,553
Investments sold 4,983,063 140,307 197,755
Other assets 162,926 108,087 92,476
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,507,556,791 990,167,826 956,716,045
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 71,704,000 55,440,000 64,348,000
Unrealized depreciation on forward swaps 1,486,024 -- --
Payable for investments purchased 4,950,847 5,932,951 992,186
Accrued expenses:
Management fees 703,429 462,873 444,492
Other 407,647 230,888 228,196
Common share dividends payable 3,162,593 2,053,729 1,891,348
Preferred share dividends payable 186,167 124,053 118,943
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 82,600,707 64,244,494 68,023,165
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 525,000,000 347,000,000 338,400,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 899,956,084 $578,923,332 $550,292,880
====================================================================================================================================
Common shares outstanding 63,785,430 40,796,161 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.11 $ 14.19 $ 12.73
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 407,962 $ 432,367
Paid-in surplus 901,373,271 566,753,019 587,213,985
Undistributed (Over-distribution of) net investment income 1,310,002 96,027 143,915
Accumulated net realized gain (loss) from investments and
derivative transactions (17,322,366) (7,674,085) (54,422,254)
Net unrealized appreciation (depreciation) of investments and
derivative transactions 13,957,323 19,340,409 16,924,867
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 899,956,084 $578,923,332 $550,292,880
====================================================================================================================================
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.
60
Statement of
OPERATIONS
Six Months Ended April 30, 2008 (Unaudited)
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 38,228,015 $ 24,560,494 $ 24,152,719
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,319,499 2,842,682 2,724,996
Preferred shares - auction fees 652,665 431,380 420,689
Preferred shares - dividend disbursing agent fees 29,857 29,825 39,708
Shareholders' servicing agent fees and expenses 65,817 22,959 32,679
Interest expense on floating rate obligations 1,243,528 857,974 991,635
Custodian's fees and expenses 118,334 83,513 83,422
Directors' fees and expenses 13,445 9,245 8,937
Professional fees 34,772 26,426 25,747
Shareholders' reports - printing and mailing expenses 73,261 47,228 50,766
Stock exchange listing fees 11,054 7,087 7,492
Investor relations expense 90,407 56,917 56,789
Other expenses 31,995 23,083 22,525
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 6,684,634 4,438,319 4,465,385
Custodian fee credit (92,884) (61,357) (23,346)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 6,591,750 4,376,962 4,442,039
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 31,636,265 20,183,532 19,710,680
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (6,902,739) (4,871,181) (4,234,423)
Forward swaps (526,200) (2,800,000) --
Change in net unrealized appreciation (depreciation) of:
Investments (31,703,879) (18,607,393) (17,681,900)
Forward swaps (1,744,619) 791,405 --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (40,877,437) (25,487,169) (21,916,323)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (9,385,342) (6,005,565) (6,191,352)
From accumulated net realized gains -- (408,199) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (9,385,342) (6,413,764) (6,191,352)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $(18,626,514) $(11,717,401) $ (8,396,995)
====================================================================================================================================
See accompanying notes to financial statements.
61
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
4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 10/31/07
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 31,636,265 $ 62,570,194 $ 20,183,532 $ 40,002,526 $ 19,710,680 $ 38,765,346
Net realized gain (loss) from:
Investments (6,902,739) 1,507,533 (4,871,181) 195,490 (4,234,423) 1,759,555
Forward swaps (526,200) -- (2,800,000) -- -- --
Futures -- -- -- 1,150,416 -- --
Change in net unrealized
appreciation
(depreciation) of:
Investments (31,703,879) (36,823,378) (18,607,393) (24,279,042) (17,681,900) (21,333,407)
Forward swaps (1,744,619) 258,595 791,405 (791,405) -- --
Distributions to
Preferred Shareholders:
From net investment income (9,385,342) (18,733,665) (6,005,565) (12,176,545) (6,191,352) (12,206,944)
From accumulated net
realized gains -- -- (408,199) (242,538) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (18,626,514) 8,779,279 (11,717,401) 3,858,902 (8,396,995) 6,984,550
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (22,637,451) (45,160,091) (14,176,944) (28,315,494) (12,737,548) (27,498,549)
From accumulated net
realized gains -- -- (938,312) (706,808) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from distributions
to Common shareholders (22,637,451) (45,160,091) (15,115,256) (29,022,302) (12,737,548) (27,498,549)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares repurchased -- -- (60,864) (4,000,767) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares
from capital
share transactions -- -- (60,864) (4,000,767) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares (41,263,965) (36,380,812) (26,893,521) (29,164,167) (21,134,543) (20,513,999)
Net assets applicable
to Common shares
at the beginning
of period 941,220,049 977,600,861 605,816,853 634,981,020 571,427,423 591,941,422
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $899,956,084 $941,220,049 $578,923,332 $605,816,853 $550,292,880 $571,427,423
====================================================================================================================================
Undistributed
(Over-distribution of)
net investment income
at the end of period $ 1,310,002 $ 1,696,530 $ 96,027 $ 95,004 $ 143,915 $ (637,865)
====================================================================================================================================
See accompanying notes to financial statements.
62
Statement of
CASH FLOWS
Six Months Ended April 30, 2008 (Unaudited)
PREMIUM
INCOME 4
(NPT)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ (8,396,995)
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 (38,798,913)
Proceeds from sales and maturities of investments 52,629,832
Proceeds from (Purchases of) short-term investments, net (8,035,000)
Amortization/(Accretion) of premiums and discounts, net (358,510)
(Increase) Decrease in receivable for interest (171,538)
(Increase) Decrease in receivable for investments sold 1,326,994
(Increase) Decrease in other assets 29,719
Increase (Decrease) in payable for investments purchased 992,186
Increase (Decrease) in accrued management fees (25,732)
Increase (Decrease) in accrued other liabilities 26,811
Increase (Decrease) in Preferred share dividends payable 6,008
Net realized (gain) loss from investments 4,234,423
Net realized (gain) loss from paydowns 434
Change in net unrealized (appreciation) depreciation of investments 17,681,900
Taxes paid on undistributed capital gains (7,766)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 21,133,853
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in floating rate obligations (6,310,000)
Cash distributions paid to Common shareholders (12,722,055)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (19,032,055)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 2,101,798
Cash at the beginning of period 167,550
------------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF PERIOD $ 2,269,348
====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest on floating rate obligations was $991,635.
See accompanying notes to financial statements.
63
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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) (collectively, the "Funds"). 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 or futures contract, each Fund may use market
quotes provided by major broker/dealers in such investments. If it is determined
that the market price for an investment or derivative instrument is unavailable
or inappropriate, the Board of Directors of the Funds, or its designee, may
establish fair value in accordance with procedures established in good faith by
the Board of Directors. 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, 2008, there were
no such outstanding purchase commitments in any of the Funds.
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.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its 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.
64
Effective April 30, 2008, the Funds adopted Financial Accounting Standards Board
(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 affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax benefit or expense in the
current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the six months ended April 30, 2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
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 at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
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
================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear,'' and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate'' applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
65
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
Inverse Floating Rate Securities
Each Fund is authorized to 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"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate certificates, as well as any shortfalls in interest
cash flows. The inverse floater held by a Fund gives the Fund the right (a) to
cause the holders of the floating rate certificates to tender their notes at
par, and (b) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. 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, recourse trust or credit recovery swap 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 "Interest
expense on floating rate obligations" in the Statement of Operations.
During the six months ended April 30, 2008, 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, 2008, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Average floating rate obligations $84,538,393 $58,707,325 $67,893,850
Average annual interest rate and fees 2.96% 2.94% 2.94%
================================================================================
66
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
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. Each Fund invested in
forward interest rate swap transactions during the six months ended April 30,
2008.
Futures Contracts
Each Fund is 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 recognized 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. None of the Funds invested in futures contracts during the six
months ended April 30, 2008.
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.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
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.
67
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
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.
2. FUND SHARES
On July 10, 2007, the Board of Directors of Premium Income 2 (NPM) approved an
open-market share repurchase program, as part of a broad, ongoing effort
designed to support the market prices of the Fund's Common shares. Under the
terms of the program, the Fund may repurchase up to 10% of its outstanding
Common shares.
Transactions in Common shares were as follows:
PREMIUM PREMIUM PREMIUM
INCOME (NPI) INCOME 2 (NPM) INCOME 4 (NPT)
------------------------ ----------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
4/30/08 10/31/07 4/30/08 10/31/07 4/30/08 10/31/07
---------------------------------------------------------------------------------------------------------------------
Common shares repurchased -- -- (4,800) (292,700) -- --
---------------------------------------------------------------------------------------------------------------------
Weighted average price per
Common share repurchased -- -- $12.66 $13.65 -- --
Weighted average discount per
Common share repurchased -- -- 12.81% 7.30% -- --
=====================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2008, were as
follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Purchases $ 60,774,801 $35,741,648 $38,798,913
Sales and maturities 122,873,189 50,229,911 52,629,832
================================================================================
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 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.
68
At April 30, 2008, the cost of investments was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Cost of investments $1,383,613,534 $893,899,398 $857,387,887
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2008, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
----------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 49,383,545 $ 33,270,376 $ 32,133,395
Depreciation (32,850,048) (13,553,411) (14,782,658)
----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 16,533,497 $ 19,716,965 $ 17,350,737
======================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2007, 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 * $4,476,869 $2,091,171 $945,176
Undistributed net ordinary income ** 79,841 231,532 224,239
Undistributed net long-term capital gains -- 1,257,894 --
================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2007, paid on November 1, 2007.
** 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, 2007, 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 $63,910,797 $40,521,587 $39,978,752
Distributions from net ordinary income ** -- -- --
Distributions from net long-term capital gains -- 949,346 --
======================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2007, 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:
October 31, 2008 $ -- $ 355,272
October 31, 2009 -- --
October 31, 2010 -- 18,079,555
October 31, 2011 5,278,911 24,792,603
October 31, 2012 -- --
October 31, 2013 -- 6,161,830
October 31, 2014 4,614,516 806,337
--------------------------------------------------------------------------------
Total $9,893,427 $50,195,597
================================================================================
69
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
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, 2008, the complex-level fee rate was .1855%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(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.
70
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 Statement on Financial Accounting Standards
No. 157
In September 2006, the FASB issued 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, 2008,
management does 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.
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of April 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
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 2, 2008, to shareholders of record on
May 15, 2008, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0590 $.0575 $.0485
================================================================================
Auction Rate Preferred Shares (ARPS)
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as inverse floating rate securities or
inverse floaters, to refinance a portion of the funds' outstanding ARPS, whose
auctions have been failing for several months, including an initial phase of
approximately $1 billion in forty-one funds. Of this amount, Nuveen expects that
approximately $560 million in ARPS redemption notices will be issued shortly for
thirteen funds, including Premium Income Municipal Fund (NPI), Premium Income
Municipal Fund 2 (NPM) and Premium Income Municipal Fund 4 (NPT).
71
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:
2008(b) $14.76 $ .50 $(.65) $(.15) $ -- $ (.30) $(.35) $ -- $ (.35)
2007 15.33 .98 (.55) (.29) -- .14 (.71) -- (.71)
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)
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 14.85 .49 (.62) (.15) (.01) (.29) (.35) (.02) (.37)
2007 15.45 .97 (.55) (.30) (.01) .11 (.69) (.02) (.71)
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)
===================================================================================================================================
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:
2008(b) $14.11 $13.12 1.33% (1.99)%
2007 14.76 13.30 (1.02) .93
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
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------
Year Ended 10/31:
2008(b) 14.19 13.19 2.32 (1.94)
2007 14.85 13.25 (.81) .71
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
=======================================================================
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:
2008(b) $899,956 1.46%*** 1.19%*** 6.90%*** 1.44%*** 1.17%*** 6.92%*** 4%
2007 941,220 1.56 1.17 6.52 1.54 1.16 6.54 14
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
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 578,923 1.51*** 1.22*** 6.85*** 1.49*** 1.20*** 6.87*** 4
2007 605,817 1.62 1.19 6.44 1.60 1.18 6.45 12
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
====================================================================================================================================
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:
2008(b) $525,000 $25,000 $67,855 $71,704 $20,873
2007 525,000 25,000 69,820 93,734 16,642
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 -- --
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) 347,000 25,000 66,709 55,440 17,701
2007 347,000 25,000 68,647 61,125 16,588
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 -- --
================================================================================
* 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. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and legal fee refund, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) 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, 2008.
See accompanying notes to financial statements.
72-73 SPREAD
Financial
HIGHLIGHTS (continued) (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 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2008(b) $13.22 $.46 $(.52) $(.14) $ -- $ (.20) $(.29) $ -- $(.29)
2007 13.69 .90 (.45) (.28) -- .17 (.64) -- (.64)
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)
====================================================================================================================================
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:
2008(b) $12.73 $11.46 (.14)% (1.47)%
2007 13.22 11.77 (3.30) 1.25
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
====================================================================
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:
2008(b) $550,293 1.60%*** 1.25%*** 7.07%*** 1.59%*** 1.24%*** 7.08%*** 4%
2007 571,427 1.69 1.23 6.68 1.68 1.22 6.69 14
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
====================================================================================================================================
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:
2008(b) $338,400 $25,000 $65,654 $64,348 $14,811
2007 338,400 25,000 67,215 70,818 13,847
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 -- --
================================================================================
* 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. The last dividend declared in the period, which
is typically paid on the first business day of the following month, is
assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
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. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested
at the ending net asset value. The actual reinvest price for the last
dividend declared in the period may often be based on the Fund's market
price (and not its net asset value), and therefore may be different from
the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and legal fee refund, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) 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, 2008.
See accompanying notes to financial statements.
74-75 SPREAD
Reinvest Automatically
EASILY and CONVENIENTLY
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.
76
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.
77
Glossary of
TERMS USED in this REPORT
[] Auction Rate Bond: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
[] 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 Preferred 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.
[] Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
78
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2007, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) 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
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
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 or preferred stock in
the future at such times and in such amounts as is deemed advisable. During the
period covered by this report, NPM repurchased 4,800 common shares. Any future
repurchases will be reported to shareholders in the next annual or semi-annual
report.
79
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
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 $153 billion in assets, as of March 31, 2008, 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: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; Symphony,
a leading institutional manager of market-neutral alternative investment
portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader
in global equities.
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.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
ESA-E-0408D
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: See
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: See 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, 2008
-------------------------------------------------------------------
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
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2008
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2008
-------------------------------------------------------------------