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, 2009
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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.
LOGO: NUVEEN Investments
Closed-End Funds
--------------------------------------------------------------------------------
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report
April 30, 2009
-------------------------- ------------------------ -------------------------
NUVEEN PREMIUM NUVEEN PREMIUM NUVEEN PREMIUM
INCOME MUNICIPAL INCOME MUNICIPAL INCOME MUNICIPAL
FUND, INC. FUND 2, INC. FUND 4, INC.
NPI NPM NPT
(April 09)
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LOGO: NUVEEN Investments
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The problems in the U.S. financial system and the slowdown in global economic
activity continue to create a very difficult environment for the U.S. economy.
The administration, the Federal Reserve System and Congress have initiated a
variety of programs directed at restoring liquidity to the financial markets,
providing financial support for critical financial institutions and stimulating
economic activity. There are encouraging signs that these initiatives are
beginning to have a constructive impact. It is not possible to predict whether
the actions taken to date will be sufficient to restore more normal conditions
in the financial markets or enable the economy to stabilize and set a course
toward recovery. However, the speed and scope of the government's actions are
very encouraging and more importantly, reflect a commitment to act decisively to
meet the economic challenges we face.
The performance information in the attached report reflects the impact of many
forces at work in the equity and fixed income markets. The comments by the
portfolio managers describe the strategies being used to pursue your Fund's
long-term investment goals. Parts of the financial markets continue to
experience serious dislocations and thorough research and strong investment
disciplines have never been more important in identifying risks and
opportunities. I hope you will read this information carefully.
Your Board is particularly sensitive to our shareholders' concerns in these
uncertain times. We believe that frequent and thorough communication is
essential in this regard and encourage you to visit the Nuveen website:
www.nuveen.com, for recent developments in all Nuveen funds. We also encourage
you to communicate with your financial consultant for answers to your questions
and to seek advice on your long-term investment strategy in the current market
environment.
Nuveen continues to work on resolving the issues related to the auction rate
preferred shares situation, but the unsettled conditions in the credit markets
have slowed progress. Nuveen is actively pursuing a number of solutions, all
with the goal of providing liquidity for preferred shareholders while preserving
the potential benefits of leverage for common shareholders. We appreciate the
patience you have shown as we work through the many issues involved.
On behalf of myself and the other members of your Fund's Board, we look forward
to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Nuveen Fund Board
June 19, 2009
Nuveen Investments 3
PORTFOLIO MANAGERS' COMMENTS
NUVEEN INVESTMENTS MUNICIPAL CLOSED-END FUNDS NPI, NPM, NPT
Portfolio managers Paul Brennan and Johnathan Wilhelm review key investment
strategies and the six-month performance of these three national Funds. With 20
years of industry experience, including 12 years at Nuveen, Paul has managed NPI
and NPM since 2006. Johnathan, who came to Nuveen in 2001 with 19 years of
industry experience, assumed portfolio management responsibility for NPT in
March 2009.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2009?
During this time, the municipal market remained under pressure from price
volatility, reduced liquidity and fundamental economic concerns. After a very
difficult start to the period, market conditions began to show signs of
improvement in mid-December 2008 and municipal bonds were on an improving trend
during the first four months of 2009. In this environment, we continued to focus
on finding bonds that offered relative value while seeking to manage liquidity
and invest for the long term.
Much of our investment activity during this period was driven by opportunities
created by recent market conditions. We sought to capitalize on this environment
by continuing to take a bottom-up approach to finding undervalued sectors and
individual credits with the potential to perform well over the long term. This
was true in both the new issuance secondary markets. In the primary market, we
found bonds with better structures (such as higher coupons, longer call
protection) than we have seen in a long time, as market conditions required
issuers to enhance offerings to make them more attractive to buyers. In the
secondary markets, we were able to purchase bonds, especially lower-rated
issues, at discounted prices as the result of selling by some municipal market
participants, particularly in November and December 2008.
Although we were able to find bonds at extremely discounted prices during this
period, our emphasis was always on carefully selecting bonds we believed offered
exceptional value. In general, the bonds we purchased were ones where we were
already familiar with the credit being offered or where we were adding to
positions or sectors currently held in the portfolio. Our focus was on bonds
issued by essential service providers--including water and sewer, utilities,
local public schools, hospitals and state and local general obligation and other
tax-backed bonds--with the view that these issuers would continue to have the
resources necessary to cover debt service in a difficult economic environment.
In general, we focused our purchases on bonds with longer maturities to take
advantage of the spreads offered by the extremely steep yield curve.
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
4 Nuveen Investments
Some of the cash for new purchases was generated by proceeds from bond
redemptions. In addition, we monitored the types of credits and bond structures
that were attractive to the retail market and took advantage of strong bids to
sell bonds into relatively consistent retail demand. The bonds we sold tended to
have shorter maturities, as these generally offered more liquidity and were in
greater demand by retail buyers. Selling shorter duration(1) bonds and
reinvesting further out on the yield curve also helped to improve the Funds'
total return potential and overall call protection profiles.
We continued to use inverse floating rate securities(2) in all three of these
Funds. We employ inverse floaters as part of our management strategies for a
variety of reasons, including duration management, income enhancement, and as a
form of leverage. NPI also invested in additional types of derivatives(3)
intended to help manage its duration and common share net asset value (NAV)
volatility without having a negative impact on its income stream or common share
dividends over the short term. As of April 30, 2009, the inverse floaters
remained in place in all three Funds, while we had removed the derivative
positions from NPI.
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.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE*
FOR PERIODS ENDED 4/30/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
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NPI 11.27% -3.94% 2.73% 3.94%
NPM 15.12% -2.50% 3.12% 4.15%
NPT 12.66% -3.93% 3.13% 3.33%
Lipper General Leveraged Municipal Debt
Funds Average(4) 9.55% -8.84% 1.64% 3.73%
Barclays Capital Municipal Bond Index(5) 8.20% 3.11% 4.11% 4.78%
S&P National Municipal Bond Index(6) 7.73% 1.14% 3.84% 4.61%
--------------------------------------------------------------------------------
For the six months ended April 30, 2009, the cumulative returns on common share
NAV for all three of these Funds exceeded the average return for the Lipper
General Leveraged Municipal Debt Funds Average, the Barclays Capital Municipal
Bond Index and the Standard & Poor's (S&P) National Municipal Bond Index.
Key management factors that influenced the Funds' returns during this six-month
period included duration and yield curve positioning, the use of derivatives,
credit and sector allocations and individual security selection. In addition,
the use of leverage was an important factor affecting the Funds' performances
over this period. The impact of leverage is discussed in more detail on page 8.
Over this period, the municipal bond yield curve remained steep. Bonds in the
Barclays Capital Municipal Bond Index maturing in 10 years or more, especially
bonds with maturities of approximately 15 years and those with maturities of 22
years and longer, benefited the most from this interest rate environment. While
NPM had the best overall
* 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.
(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
(2) An inverse floating rate security, also known as inverse floaters, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during the reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in this Report
sections of this report.
(3) Each Fund may invest in derivative instruments such as forwards, futures,
options, and swap transactions. For additional information on the
derivative instruments in which each Fund was invested during and at the
end of the reporting period, see the Portfolio of Investments, Financial
Statements, and Notes to Financial Statements sections of this 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 funds; 1-year, 54 funds; 5-year, 52 funds; and
10-year, 38 funds. Fund and Lipper returns assume reinvestment of
dividends.
(5) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds. Results for the Barclays Capital index
do not reflect any expenses.
(6) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the U.S. municipal bond market.
Nuveen Investments 5
duration and yield curve positioning for these market conditions, all of these
Funds had good exposure to the longer part of the yield curve, which benefited
their performances.
As mentioned earlier, all three Funds continued to use inverse floating rate
securities. During this period, these instruments generally had a positive
impact on the Funds' performance, while also helping to support their income
streams. NPI, which had a duration that was longer than our strategic target,
also used derivative positions during part of this period to synthetically
reduce its duration closer to the target. These derivative positions detracted
from NPI's total return performance.
Credit quality exposure was also an important positive performance factor.
Investors put a priority on higher quality investments, and bonds with higher
credit quality to perform very well. Bonds rated BBB or below and non-rated
bonds generally posted poorer returns.
The "essential service" sectors provided the biggest boost to the Funds' returns
during this period and included the general obligation/tax-supported, utility
and health care sectors. On the whole, the Funds had good weightings in these
top-performing sectors.
The Funds' sector allocations that generally detracted from the Funds'
performances included industrial development revenue (IDR) and resource recovery
bonds and tobacco settlement revenue-backed bonds, which underperformed the
municipal bond market during this period. The Funds' allocation to
pre-refunded(7) bonds, which had been the top-performing segment of the
municipal market for some time, also under-performed. Backed by U.S. Treasuries,
these bonds provide higher credit quality and an element of safety and
resilience, making them attractive holdings during periods of market distress.
As of April 30, 2009, NPI had the heaviest weighting of pre-refunded bonds among
these three Funds.
Individual security selection was also a factor in the Funds' performances
during this period. In particular, the Funds were impacted to varying degrees by
downgrades of municipal bond insurers (see below). Holdings initially purchased
with AAA-ratings began trading to their underlying (or issuer) credit
characteristics. While the insured bond segment of the municipal market
generally performed very well during this six-month period, insured bonds with
weaker underlying credits (rated BBB or non-rated), originally purchased because
of the higher yields they offered, generally underperformed insured bonds with
underlying credits rated AA or A.
(7) Pre-refundings, also known as advance 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.
6 Nuveen Investments
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factors previously discussed, one of the primary reasons for
the strong six-month returns recorded by Funds was the Funds' use of financial
leverage. This positive contribution to performance stands in sharp contrast to
the preceding six-month period, when leverage had a generally detrimental impact
on the Funds' returns. This can be seen by comparing the six-month and one-year
Fund returns shown on page 5.
Financial leverage offers opportunities to generate additional income and total
return for common shareholders under a variety of market conditions. However,
leverage may work to the common shareholders' disadvantage during periods when
bond prices are extraordinarily volatile or in sharp decline. During the six
months covered by this report, overall conditions within the municipal bond
market were relatively favorable, in contrast to the relatively unfavorable
market conditions during the fall of 2008.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
positions in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. During the period covered by this report, all bond
insurers experienced one or more rating reductions by at least one or more
rating agencies. At the time this report was prepared, there are no longer any
bond insurers rated AAA by all three of the major rating agencies (Moody's
Investor Service, S&P and Fitch) and at least one rating agency has placed each
insurer on "negative credit watch," "credit watch evolving," "credit outlook
developing," or "rating withdrawn," which may presage one or more rating
reductions for any insurer in the future. As concern increased about the balance
sheets of insurers, prices on insured bonds - especially those bonds issued by
weaker underlying credits - declined, detracting from the Funds' performance. By
the end of this period, most insured bonds were being valued according to their
fundamentals as if they were uninsured. On the whole, the holdings of all these
Funds continued to be well diversified and it is important to note that
municipal bonds historically have had a very low rate of default.
Nuveen Investments 7
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
As noted in the previous shareholder reports, beginning in February 2008, more
shares were submitted for sale in the regularly scheduled auctions for the
auction rate 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, of
the Funds' auction rate preferred shareholders who wanted to sell their shares
in these auctions were unable to do so. This decline in liquidity in auction
rate preferred shares did not lower the credit quality of these shares, and
auction rate 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 rate preferred
shares.
These developments generally have not affected the portfolio management or
investment policies of these Funds. However, one continuing implication for
common shareholders of these auction failures 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 might have been.
As previously reported, the Funds' Board of Directors authorized a plan to use
tender option bonds (TOBs), also known as floating rate securities, to refinance
a portion of the Funds' outstanding auction rate preferred shares. As of April
30, 2009, the amount of auction rate preferred securities redeemed by the Funds
are as shown in the accompanying table.
% OF
AUCTION RATE ORIGINAL
PREFERRED AUCTION RATE
SHARES PREFERRED
FUND REDEEMED SHARES
--------------------------------------------------------------------------------
NPI $ 124,350,000 23.7%
NPM $ 69,325,000 20.0%
NPT $ 67,350,000 19.9%
--------------------------------------------------------------------------------
While the Funds' Board of Directors and management continue to work to resolve
this situation, the Funds cannot provide any assurance on when the remaining
outstanding auction rate preferred shares might be redeemed.
On April 14, 2009, NPI filed with the Securities and Exchange Commission a
registration statement seeking to register municipal term preferred shares
(MTP), a new form of closed-end fund preferred shares. This registration
statement, if declared effective by the SEC, may enable the Fund to issue to the
public shares of MTP to refinance all or a portion of NPI's auction rate
preferred shares. The issuance of MTP by NPI is subject to market conditions,
the receipt of ratings, and on final approval by NPI's Board of Directors. There
is no assurance that MTP will be issued.
As of April 30, 2009, sixty-seven Nuveen closed-end municipal funds have
redeemed and/or noticed for redemption at par a portion of their outstanding
auction rate preferred shares. These redemptions bring the total amount of
Nuveen's municipal closed-end funds' auction rate preferred share redemptions to
approximately $2.1 billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
8 Nuveen Investments
COMMON SHARE DIVIDEND AND SHARE PRICE INFORMATION
During the six-month period ended April 30, 2009, NPI, NPM and NPT each had one
monthly dividend increase.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of April 30, 2009, 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.
COMMON SHARE REPURCHASE AND SHARE PRICE INFORMATION
The Funds' Board of Directors approved an open-market share repurchase program
on July 10, 2007, for NPM and on July 30, 2008, for NPI and NPT under which each
Fund may repurchase an aggregate of up to 10% of its outstanding common shares.
Since the inception of this program, NPI and NPT have not repurchased any of
their outstanding common shares.
As of April 30, 2009, NPM repurchased common shares as shown in the accompanying
table.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
--------------------------------------------------------------------------------
NPM 299,500 0.7%
--------------------------------------------------------------------------------
During the six-month reporting period, NPM's common shares were repurchased at a
weighted average price and a weighted average discount per common share as shown
in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NPM $ 10.87 15.34%
--------------------------------------------------------------------------------
As of April 30, 2009, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying table.
4/30/09 SIX-MONTH
FUND DISCOUNT AVERAGE DISCOUNT
--------------------------------------------------------------------------------
NPI -5.00% -8.52%
NPM -6.87% -11.15%
NPT -8.46% -12.33%
--------------------------------------------------------------------------------
Nuveen Investments 9
NPI Performance OVERVIEW | Nuveen Premium Income Municipal Fund, Inc.
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.17
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.81
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.00%
--------------------------------------------------------------------------------
Market Yield 6.11%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.49%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 816,836
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.36
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.74
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/18/88)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 14.97% 11.27%
--------------------------------------------------------------------------------
1-Year -1.40% -3.94%
--------------------------------------------------------------------------------
5-Year 4.26% 2.73%
--------------------------------------------------------------------------------
10-Year 3.95% 3.94%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 13.3%
--------------------------------------------------------------------------------
Texas 10.4%
--------------------------------------------------------------------------------
New York 8.3%
--------------------------------------------------------------------------------
New Jersey 6.2%
--------------------------------------------------------------------------------
Illinois 6.0%
--------------------------------------------------------------------------------
Florida 3.7%
--------------------------------------------------------------------------------
South Carolina 3.3%
--------------------------------------------------------------------------------
Minnesota 3.2%
--------------------------------------------------------------------------------
Massachusetts 3.2%
--------------------------------------------------------------------------------
Pennsylvania 3.1%
--------------------------------------------------------------------------------
Colorado 3.0%
--------------------------------------------------------------------------------
Nevada 2.7%
--------------------------------------------------------------------------------
District of Columbia 2.7%
--------------------------------------------------------------------------------
Michigan 2.5%
--------------------------------------------------------------------------------
Wisconsin 2.5%
--------------------------------------------------------------------------------
Louisiana 2.4%
--------------------------------------------------------------------------------
Alabama 2.4%
--------------------------------------------------------------------------------
Washington 2.3%
--------------------------------------------------------------------------------
Other 18.8%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 25.2%
--------------------------------------------------------------------------------
Health Care 15.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.9%
--------------------------------------------------------------------------------
Tax Obligation/General 12.2%
--------------------------------------------------------------------------------
Transportation 10.6%
--------------------------------------------------------------------------------
Utilities 5.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.3%
--------------------------------------------------------------------------------
Other 11.6%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 41%
AA 32%
A 17%
BBB 8%
BB or Lower 1%
N/R 1%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.059
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.06
Oct 0.06
Nov 0.06
Dec 0.06
Jan 0.06
Feb 0.06
Mar 0.062
Apr 0.062
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.18
13.22
13.26
13.33
13.23
13.25
13.29
13.04
12.75
12.73
12.92
12.96
12.71
12.77
12.65
12.85
12.76
12.71
12.92
13.05
12.79
12.55
11.39
11.24
8.22
9.85
10.98
10.93
11.8
11.07
9.75
10.4
9.75
8.97
10.11
9.9
11.02
11.8
11.73
11.79
12.04
12.09
11.65
10.85
11.46
10.93
11.51
11.65
11.73
11.54
11.56
11.98
12.11
4/30/09 12.17
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' 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.
10 Nuveen Investments
NPM Performance OVERVIEW | Nuveen Premium Income Municipal Fund 2, Inc.
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 31%
AA 36%
A 16%
BBB 12%
BB or Lower 1%
N/R 4%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
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 0.0635
Apr 0.0635
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.15
13.23
13.44
13.41
13.24
13.53
13.51
13.32
12.88
12.45
12.56
12.72
12.55
12.72
12.67
12.85
12.62
12.6
12.67
12.73
12.35
11.89
10.6
10.87
7.73
9.53
10.7
10.28
10.8
10.94
9.21
9.9
9.21
8.72
9.67
9.83
10.71
11.44
11.49
11.2
11.4
11.71
11.69
10.91
11.36
10.74
11.49
11.63
11.73
11.93
11.93
12
12.26
4/30/09 12.2
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.20
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.10
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.87%
--------------------------------------------------------------------------------
Market Yield 6.25%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.68%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 534,482
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.08
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.95
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/23/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 22.48% 15.12%
--------------------------------------------------------------------------------
1-Year -1.79% -2.50%
--------------------------------------------------------------------------------
5-Year 4.17% 3.12%
--------------------------------------------------------------------------------
10-Year 3.78% 4.15%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 10.4%
--------------------------------------------------------------------------------
Illinois 9.4%
--------------------------------------------------------------------------------
Texas 8.4%
--------------------------------------------------------------------------------
New York 6.8%
--------------------------------------------------------------------------------
South Carolina 6.4%
--------------------------------------------------------------------------------
Washington 6.4%
--------------------------------------------------------------------------------
Massachusetts 4.6%
--------------------------------------------------------------------------------
New Jersey 4.3%
--------------------------------------------------------------------------------
Louisiana 3.9%
--------------------------------------------------------------------------------
Michigan 2.8%
--------------------------------------------------------------------------------
Ohio 2.8%
--------------------------------------------------------------------------------
Oklahoma 2.8%
--------------------------------------------------------------------------------
Alabama 2.7%
--------------------------------------------------------------------------------
Missouri 2.6%
--------------------------------------------------------------------------------
Minnesota 2.6%
--------------------------------------------------------------------------------
Nevada 2.6%
--------------------------------------------------------------------------------
Wisconsin 2.0%
--------------------------------------------------------------------------------
Other 18.5%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 19.5%
--------------------------------------------------------------------------------
Health Care 17.3%
--------------------------------------------------------------------------------
Tax Obligation/General 15.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.9%
--------------------------------------------------------------------------------
Utilities 10.9%
--------------------------------------------------------------------------------
Transportation 5.3%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.8%
--------------------------------------------------------------------------------
Other 11.5%
--------------------------------------------------------------------------------
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' 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.
Nuveen Investments 11
NPT Performance OVERVIEW | Nuveen Premium Income Municipal Fund 4, Inc.
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 10.61
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.59
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.46%
--------------------------------------------------------------------------------
Market Yield 6.50%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.03%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 501,106
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.02
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.64
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/19/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 18.58% 12.66%
--------------------------------------------------------------------------------
1-Year -1.67% -3.93%
--------------------------------------------------------------------------------
5-Year 3.74% 3.13%
--------------------------------------------------------------------------------
10-Year 3.09% 3.33%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 12.8%
--------------------------------------------------------------------------------
Illinois 9.8%
--------------------------------------------------------------------------------
California 8.9%
--------------------------------------------------------------------------------
Indiana 6.1%
--------------------------------------------------------------------------------
Washington 5.5%
--------------------------------------------------------------------------------
New York 5.0%
--------------------------------------------------------------------------------
Florida 4.3%
--------------------------------------------------------------------------------
Michigan 3.9%
--------------------------------------------------------------------------------
Louisiana 3.4%
--------------------------------------------------------------------------------
Alabama 3.1%
--------------------------------------------------------------------------------
New Jersey 3.1%
--------------------------------------------------------------------------------
Colorado 3.1%
--------------------------------------------------------------------------------
South Carolina 2.8%
--------------------------------------------------------------------------------
Ohio 2.1%
--------------------------------------------------------------------------------
North Carolina 1.9%
--------------------------------------------------------------------------------
Wisconsin 1.8%
--------------------------------------------------------------------------------
Rhode Island 1.8%
--------------------------------------------------------------------------------
Georgia 1.8%
--------------------------------------------------------------------------------
Other 18.8%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 21.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.8%
--------------------------------------------------------------------------------
Health Care 15.1%
--------------------------------------------------------------------------------
Tax Obligation/General 13.7%
--------------------------------------------------------------------------------
Utilities 8.9%
--------------------------------------------------------------------------------
Transportation 7.0%
--------------------------------------------------------------------------------
Water and Sewer 4.6%
--------------------------------------------------------------------------------
Other 12.4%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 38%
AA 37%
A 14%
BBB 6%
BB or Lower 2%
N/R 3%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.0485
Jun 0.0485
Jul 0.0485
Aug 0.0485
Sep 0.0515
Oct 0.0515
Nov 0.0515
Dec 0.0515
Jan 0.0515
Feb 0.0515
Mar 0.0575
Apr 0.0575
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 11.5
11.49
11.5
11.6
11.53
11.63
11.62
11.29
11.09
11.11
11.19
11.07
10.85
10.85
10.87
10.89
11
10.96
10.98
11.07
10.97
10.52
9.57
9.54
7.74
8.49
9.3
9.24
9.83
9.55
8.46
8.7
8.33
7.95
8.75
8.89
9.75
10.15
10.12
10.17
10.16
10.2
10.21
9.49
9.88
9.57
10.07
10.06
10.09
10.13
10.15
10.26
10.44
4/30/09 10.61
1 The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Managers' 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.
12 Nuveen Investments
NPI | Nuveen Premium Income Municipal Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.8% (2.4% OF TOTAL INVESTMENTS)
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 3,898,328
Bonds, 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 (UB) 11/16 at 100.00 AA 1,397,331
4,000 5.000%, 11/15/39 (UB) 11/16 at 100.00 AA 3,872,320
6,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 AA 5,796,000
Bonds, Ascension Health, Series 2006D, 5.000%, 11/15/39 (UB)
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 4,636,860
1,300 5.000%, 11/15/30 11/15 at 100.00 Baa1 833,105
4,000 Birmingham Waterworks And Sewer Board, Alabama, Water and Sewer 1/17 at 100.00 A+ 2,650,200
Revenue Bonds, Tender Option Bond Trust 2707, 10.345%,
1/01/43 - AMBAC Insured (IF)
2,890 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 2,016,584
Control Revenue Bonds, International Paper Company, Series
2005A, 5.000%, 6/01/25
5,020 DCH Health Care Authority, Alabama, Healthcare Facilities 6/12 at 101.00 A 5,056,395
Revenue Bonds, Series 2002, 5.250%, 6/01/18
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,164,420
Alabama, Revenue Bonds, Baptist Medical Center, Series 2004C,
5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
35,695 Total Alabama 31,321,543
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.0% (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 9/13 at 100.00 AA (4) 2,302,580
2,035 5.250%, 9/01/18 (Pre-refunded 9/01/13) - FGIC Insured 9/13 at 100.00 AA (4) 2,342,875
5,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 5,317,050
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 6,299,895
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
19,535 Total Alaska 16,262,400
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.2% (0.7% 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 440,635
660 5.250%, 12/01/25 12/15 at 100.00 BBB 577,579
1,355 Pima County Industrial Development Authority, Arizona, Lease 7/09 at 100.00 Aa3 1,362,019
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 No Opt. Call A 2,779,349
Bonds, Series 2007, 5.000%, 12/01/37
4,130 University of Arizona, Certificates of Participation, Series 6/12 at 100.00 AA- 4,311,059
2002B, 5.125%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,745 Total Arizona 9,470,641
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 13
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS)
$ 480 Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100.00 A (4) $ 517,234
Series 2000, 5.650%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC
Insured
5,245 University of Arkansas, Fayetteville, Athletic Facilities 9/09 at 100.00 Aa3 5,250,035
Revenue 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 Baa1 1,685,800
Regional Medical Center, Series 2005B, 5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,725 Total Arkansas 7,453,069
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 21.0% (13.3% OF TOTAL INVESTMENTS)
9,200 Alameda Corridor Transportation Authority, California, No Opt. Call A 4,870,388
Subordinate 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 AA- 7,898,200
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 4,597,400
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+ 5,319,054
University of Southern California, Series 2005, 4.750%,
10/01/28 (UB)
1,500 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 1,290,960
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 3,070,186
7,000 5.000%, 3/01/33 3/13 at 100.00 A 5,606,510
5,425 California Health Facilities Financing Authority, Revenue Bonds, No Opt. Call A 5,431,998
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 7,833,513
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+ 7,222,368
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
980 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa3 926,717
Sutter Health, Tender Option Bond Trust 3175, 13.644%,
11/15/42 (IF)
11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call A 12,431,945
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 1,154,298
4,730 5.000%, 7/01/39 7/15 at 100.00 BBB 2,974,886
5,000 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 4,886,250
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
7,130 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 6,506,981
Bonds, Sutter Health, Tender Option Bond Trust 3175, 13.216%,
11/15/48 (IF)
4,000 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call A+ 4,456,200
5.250%, 7/01/14
California, General Obligation Bonds, Series 2004:
1,160 5.125%, 2/01/25 2/14 at 100.00 A 1,161,067
10,000 5.125%, 2/01/26 2/14 at 100.00 A 9,993,600
3,575 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 3,621,153
San Diego Gas and Electric Company, Series 1996A, 5.300%,
7/01/21
4,890 Clovis Unified School District, Fresno County, California, No Opt. Call AA 1,742,845
General Obligation Bonds, Series 2006B, 0.000%, 8/01/26 -
MBIA Insured
14 Nuveen Investments
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 $ 4,474,890
3,000 5.125%, 6/01/47 6/17 at 100.00 BBB 1,547,130
2,000 5.750%, 6/01/47 6/17 at 100.00 BBB 1,151,600
5,000 Kern Community College District, California, General Obligation No Opt. Call AAA 2,214,800
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 5,321,818
Series 2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative
Minimum Tax)
890 Martinez, California, Home Mortgage Revenue Bonds, Series 1983A, No Opt. Call AAA 1,163,675
10.750%, 2/01/16 (ETM)
17,785 Pomona, California, GNMA/FNMA Collateralized Securities Program No Opt. Call AAA 23,672,009
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) 5,953,650
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 AA- 1,992,740
General Obligation Bonds, Series 2002, 5.000%, 7/15/27 - FGIC
Insured
3,700 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AA- 3,753,502
Revenue Bonds, Series 2003R, 5.000%, 8/15/22 - MBIA Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
400 5.000%, 9/01/21 9/15 at 102.00 Baa3 327,104
445 5.000%, 9/01/23 9/15 at 102.00 Baa3 350,558
3,500 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AA- 3,447,080
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 AA- 1,903,990
7,150 0.000%, 1/15/32 - MBIA Insured No Opt. Call AA- 1,196,624
50,400 0.000%, 1/15/34 - MBIA Insured No Opt. Call AA- 7,165,368
24,025 0.000%, 1/15/36 - MBIA Insured No Opt. Call AA- 2,909,187
------------------------------------------------------------------------------------------------------------------------------------
266,070 Total California 171,542,244
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.8% (3.0% OF TOTAL INVESTMENTS)
2,500 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AA- 2,604,900
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 643,494
School Revenue Bonds, Bromley School, Series 2005, 5.125%,
9/15/20 - SYNCORA GTY Insured
2,125 Colorado Health Facilities Authority, Revenue Bonds, Evangelical 6/16 at 100.00 A- 1,670,165
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 899,590
Medical Center, Series 2004, 5.000%, 9/01/25
800 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 676,040
Valley Health Care, Series 2005F, 5.000%, 3/01/25
25 Colorado Housing Finance Authority, Single Family Program Senior 5/09 at 104.50 Aaa 25,452
Bonds, Series 1997B-2, 7.000%, 5/01/26 (Alternative Minimum
Tax)
75 Colorado Housing Finance Authority, Single Family Program Senior 5/09 at 105.00 Aaa 76,112
Bonds, Series 1997C-2, 6.875%, 11/01/28 (Alternative Minimum
Tax)
405 Colorado Housing Finance Authority, Single Family Program Senior 4/10 at 105.00 AA 415,688
Bonds, Series 2000B-2, 7.250%, 10/01/31 (Alternative Minimum
Tax)
7,235 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 7,798,172
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 21,433,624
Series 2001A, 5.500%, 9/01/18 (Pre-refunded 3/01/11) - FSA
Insured
Nuveen Investments 15
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 20,500 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call AA- $ 3,004,890
Series 2000B, 0.000%, 9/01/32 - MBIA Insured
14 El Paso County, Colorado, FNMA Mortgage-Backed Single Family No Opt. Call Aaa 15,268
Revenue Refunding Bonds, Series 1992A-2, 8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
55,179 Total Colorado 39,263,395
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,930 Connecticut, General Obligation Bonds, Series 2001C, 5.500%, No Opt. Call AA 2,321,327
12/15/16
2,310 Greater New Haven Water Pollution Control Authority, 11/15 at 100.00 AA- 2,265,163
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A, 5.000%, 11/15/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,240 Total Connecticut 4,586,490
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.2% (2.7% OF TOTAL INVESTMENTS)
4,300 District of Columbia Housing Finance Agency, GNMA 6/09 at 100.00 AAA 4,303,225
Collateralized 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 AA- 10,942,061
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 AA- (4) 6,526,807
7,625 0.000%, 4/01/25 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 44.82 AA- (4) 3,318,705
16,665 0.000%, 4/01/32 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 29.23 AA- (4) 4,730,527
2,130 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,777,826
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 10.676%, 10/01/30 - BHAC Insured (IF)
3,335 Washington DC Convention Center Authority, Dedicated Tax 10/16 at 100.00 AAA 2,783,591
Revenue Bonds, Residual Series 1730,1731, 1736, 10.633%,
10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
57,665 Total District of Columbia 34,382,742
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.8% (3.7% OF TOTAL INVESTMENTS)
4,225 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- 3,687,411
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 AA- 8,215,120
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 2,788,776
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 A 17,335,954
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 A1 (4) 5,481,100
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 8/17 at 100.00 AA- 6,053,022
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
1,785 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AA- 1,771,773
5.000%, 10/01/28 - MBIA Insured
2,375 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aa3 2,390,651
Participation, Series 2005B, 5.000%, 8/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
53,445 Total Florida 47,723,807
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.8% (1.1% OF TOTAL INVESTMENTS)
2,625 Fulton County Development Authority, Georgia, Revenue Bonds, 5/14 at 100.00 AA- 2,628,413
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 6,443,135
Certificates, Series 2003, 5.250%, 1/01/20 - FSA Insured
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call Aa3 5,624,706
Tax Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,495 Total Georgia 14,696,254
------------------------------------------------------------------------------------------------------------------------------------
16 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.3% (0.8% OF TOTAL INVESTMENTS)
$ 10,000 Hawaii, General Obligation Bonds, Series 2003DA, 5.250%, 9/13 at 100.00 AA $ 10,929,300
9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Boise City, Idaho, Airport Revenue Certificates of 9/10 at 100.00 A1 4,811,950
Participation, Series 2000, 5.500%, 9/01/25 - FGIC Insured
(Alternative Minimum Tax)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
2,185 5.250%, 9/01/30 9/16 at 100.00 BBB- 1,565,837
600 5.250%, 9/01/37 9/16 at 100.00 BBB- 407,664
------------------------------------------------------------------------------------------------------------------------------------
7,785 Total Idaho 6,785,451
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.5% (6.0% 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- 6,651,320
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AA- 5,802,800
10,130 0.000%, 12/01/24 - FGIC Insured No Opt. Call AA- 4,490,021
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- 8,171,100
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AA- 4,757,700
8,740 Illinois Development Finance Authority, Pollution Control 8/09 at 100.00 AA- 8,256,066
Revenue Refunding Bonds, Illinois Power Company, Series
1994A, 5.700%, 2/01/24 - MBIA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
1,050 5.250%, 11/15/22 5/14 at 100.00 A 969,413
3,000 5.250%, 11/15/23 5/14 at 100.00 A 2,721,390
985 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 736,613
Series 2006, 5.125%, 1/01/25
1,225 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,355,303
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
9,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman 8/09 at 100.00 A 8,480,356
Health 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 997,420
Conference Center and Hotel Revenue Bonds, Series 2005B,
5.250%, 1/01/30
10,040 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AA- 8,086,517
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/15 - FGIC Insured
9,200 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 9,430,736
Bonds, McCormick Place Expansion Project, Series 1999A,
5.500%, 12/15/24 - FGIC Insured
3,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 3,918,210
Bonds, McCormick Place Hospitality Facility, Series 1996A,
7.000%, 7/01/26 (ETM)
3,000 Upper Illinois River Valley Development Authority, Healthcare 12/11 at 101.00 BBB+ 2,656,920
Facilities Revenue Bonds, Morris Hospital, Series 2001,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
105,080 Total Illinois 77,481,885
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.4% (0.9% OF TOTAL INVESTMENTS)
2,005 Hamilton County Public Building Corporation, Indiana, First 8/14 at 100.00 AAA 2,105,330
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) 8,977,431
Bonds, New Elementary and Remodeling Building Corporation,
Series 2000, 5.750%, 1/15/20 (Pre-refunded 1/15/12)
------------------------------------------------------------------------------------------------------------------------------------
9,970 Total Indiana 11,082,761
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 17
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 $ 2,000,900
Medical Center, Series 2000, 6.250%, 7/01/25
3,570 Iowa Finance Authority, Industrial Remarketed Revenue Refunding No Opt. Call AAA 4,446,185
Bonds, Urbandale Hotel Corporation, Series 1989A, 8.500%,
8/01/16 (Alternative Minimum Tax) (ETM)
Iowa Tobacco Settlement Authority, Asset Backed Settlement
Revenue Bonds, Series 2005C:
10,000 5.500%, 6/01/42 6/15 at 100.00 BBB 5,613,700
2,000 5.625%, 6/01/46 6/15 at 100.00 BBB 1,129,700
------------------------------------------------------------------------------------------------------------------------------------
17,570 Total Iowa 13,190,485
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
6,000 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 6,416,220
Series 2004A, 5.000%, 3/01/21 (UB)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
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 Aa3 1,230,582
1,270 5.000%, 6/01/20 - AMBAC Insured 6/14 at 100.00 Aa3 1,283,576
1,335 5.000%, 6/01/21 - AMBAC Insured 6/14 at 100.00 Aa3 1,336,722
------------------------------------------------------------------------------------------------------------------------------------
3,815 Total Kentucky 3,850,880
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.8% (2.4% OF TOTAL INVESTMENTS)
2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 A (4) 3,309,983
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/19 (Pre-refunded 12/01/12) - AMBAC Insured
155 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa 159,233
Revenue Bonds, Series 2000A, 7.450%, 12/01/31 (Alternative
Minimum Tax)
Louisiana Public Facilities Authority, Extended Care Facilities
Revenue Bonds, Comm-Care Corporation Project, Series 1994:
485 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 599,911
4,330 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 5,355,084
2,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 1,680,760
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 4,333,528
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 1,233,612
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA 2,259,394
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA 2,541,450
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 895,488
10,105 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 9,041,348
------------------------------------------------------------------------------------------------------------------------------------
32,630 Total Louisiana 31,409,791
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,200 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 1,425,380
Revenue Bonds, Series 2006A, 5.250%, 9/01/27 - SYNCORA GTY
Insured
3,560 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AA- 3,090,863
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - MBIA Insured
3,600 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 3,624,984
Multifamily Housing Development Bonds, Series 2000B, 6.200%,
7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,360 Total Maryland 8,141,227
------------------------------------------------------------------------------------------------------------------------------------
18 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.0% (3.2% OF TOTAL INVESTMENTS)
$ 840 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA $ 844,763
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 Aa1 (4) 8,330,708
1,260 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1 (4) 1,328,695
7,930 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 A 7,455,231
Revenue Bonds, Series 2001A, 5.850%, 7/01/35 - AMBAC Insured
(Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 6/09 at 102.00 BBB 2,614,312
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
5,625 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 4,730,063
Program Bonds, Tender Option Bond Trust 2847, 9.057%,
8/01/36 (IF)
5,960 Massachusetts Water Resources Authority, General Revenue Bonds, 8/17 at 100.00 AA+ 6,406,881
Series 2005A, 5.250%, 8/01/25 - MBIA Insured
5,535 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 AAA 4,909,656
Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
3,820 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (4) 4,320,611
Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
41,695 Total Massachusetts 40,940,920
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.0% (2.5% OF TOTAL INVESTMENTS)
Detroit, Michigan, General Obligation Bonds, Series 2003A:
3,565 5.250%, 4/01/22 - SYNCORA GTY Insured 4/13 at 100.00 BB 2,660,952
1,275 5.250%, 4/01/23 - SYNCORA GTY Insured 4/13 at 100.00 BB 935,825
3,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BB+ 2,162,880
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
6,600 Michigan Housing Development Authority, Limited Obligation 7/09 at 100.00 AAA 6,602,838
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 AA- 9,918,500
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 3,747,840
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
850 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 499,197
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 AA- 6,241,560
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,680 Total Michigan 32,769,592
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.0% (3.2% OF TOTAL INVESTMENTS)
13,650 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A- 12,939,791
Inc., Series 2004, 4.950%, 7/01/22
2,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- (4) 2,316,620
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 1,064,040
2,000 6.200%, 2/20/43 8/11 at 105.00 Aaa 2,124,300
90 Minnesota Agricultural and Economic Development Board, 5/09 at 101.00 AA- 83,437
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 1997A, 5.750%, 11/15/26 - MBIA
Insured
1,500 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,533,255
Series 2004A, 5.250%, 10/01/24
1,545 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 1,251,110
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
Nuveen Investments 19
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 16,750 St. Paul Housing and Redevelopment Authority, Minnesota, Sales 11/15 at 103.00 AAA $ 19,787,106
Tax Revenue Refunding Bonds, Civic Center Project, Series
1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
38,535 Total Minnesota 41,099,659
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8% (0.5% OF TOTAL INVESTMENTS)
6,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 6,845,369
Revenue Bonds, Baptist Memorial Healthcare, 2004B-1, 5.000%,
9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8% (1.1% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R 1,626,900
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+ 445,345
Facilities Revenue Bonds, Hannibal Regional Hospital, Series
2006, 5.000%, 3/01/22
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
1,565 6.000%, 6/01/20 No Opt. Call BBB+ 1,508,519
1,660 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,261,202
1,295 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA- 1,315,034
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:
205 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 222,630
1,500 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 1,629,000
4,150 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 4,506,900
1,845 Missouri Housing Development Commission, Single Family Mortgage 9/09 at 103.00 AAA 1,863,930
Revenue Bonds, Homeownership Loan Program, Series 1999B-1,
6.700%, 9/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,720 Total Missouri 14,379,460
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,620 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 2,326,612
Revenue Bonds, Nebraska City 2, Series 2006A, Trust 11673,
17.921%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.2% (2.7% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AA (4) 11,753,098
Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) - MBIA
Insured
15,000 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AA+ (4) 16,277,250
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 A 277,046
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 A 3,610,080
2,700 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 2,769,201
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
46,535 Total Nevada 34,686,675
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.1% (0.0% OF TOTAL INVESTMENTS)
405 New Hampshire Housing Finance Authority, Single Family Mortgage 7/09 at 100.00 Aa2 405,251
Acquisition Revenue Bonds, Series 1996B, 6.400%, 1/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 9.9% (6.2% OF TOTAL INVESTMENTS)
10,150 Delaware River Port Authority, Pennsylvania and New Jersey, 1/10 at 100.00 AAA 10,170,605
Revenue Bonds, Port District Project, Series 1999B, 5.625%,
1/01/26 - FSA Insured
20 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 8,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 A1 (4) $ 8,593,600
Obligation Guaranteed Lease Revenue Bonds, County Correctional
Facility Project, Series 2000, 6.000%, 10/01/25 (Pre-refunded
10/01/10) - FGIC Insured
470 Middlesex County Improvement Authority, New Jersey, Senior No Opt. Call B1 360,297
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- 3,771,887
2,000 5.250%, 9/01/26 9/15 at 100.00 AA- 2,038,680
300 New Jersey Educational Facilities Authority Revenue Refunding 6/19 at 100.00 Baa2 306,993
Bonds, University of Medicine and Dentistry of New Jersey
Issue, Series 2009 B, 7.500%, 12/01/32
800 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 628,224
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,820 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/09 at 100.00 Aaa 3,823,667
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 6,265,051
9,250 5.500%, 6/15/23 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 10,711,963
3,850 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,146,566
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 AA- (4) 4,645,226
7,585 6.000%, 1/01/14 - MBIA Insured (ETM) No Opt. Call AA- (4) 8,999,754
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 2,595,000
5.000%, 1/01/19 - FGIC Insured
9,130 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 9,503,874
5.000%, 1/01/25 - FSA Insured (UB)
4,990 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 4,208,816
Settlement Asset-Backed Bonds, Series 2007-1A, 4.500%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
75,825 Total New Jersey 80,770,203
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
460 New Mexico Mortgage Finance Authority, Single Family Mortgage 3/10 at 102.50 AAA 465,262
Program Bonds, Series 2000D-2, 6.850%, 9/01/31 (Alternative
Minimum Tax)
5,585 Santa Fe County, New Mexico, Correctional System Gross Receipts No Opt. Call AAA 6,215,658
Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,045 Total New Mexico 6,680,920
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.2% (8.3% 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 Aa3 1,035,820
500 5.250%, 7/01/24 7/14 at 100.00 Aa3 513,380
1,025 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 1,199,609
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- 2,122,281
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 2,424,594
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
6,915 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 AA- 5,275,661
Series 2006A, 4.500%, 2/15/47 - MBIA Insured
6,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 5,333,100
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
Nuveen Investments 21
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
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 AA- $ 7,197,260
5,000 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 AA- 5,110,500
5,100 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 AA- 4,206,480
Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured
3,900 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 3,809,403
Transportation Revenue Bonds, Series 2005B, 5.000%,
11/15/30 - AMBAC Insured
5,780 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 5,580,301
Transportation Revenue Bonds, Series 2005F, 5.000%, 11/15/30
3,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AA- 3,050,880
Transportation 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 2,370,616
2,050 5.250%, 7/01/21 7/14 at 100.00 Aa1 2,199,753
2,420 5.250%, 7/01/22 4/14 at 100.00 Aa1 2,566,241
1,370 5.250%, 7/01/24 4/14 at 100.00 Aa1 1,433,541
12,500 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 AA 12,828,000
Series 2003D, 5.250%, 10/15/22 (UB)
525 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AAA 541,963
Series 2003J, 5.500%, 6/01/23
4,475 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AAA 5,188,002
Series 2003J, 5.500%, 6/01/23 (Pre-refunded 6/01/13)
7,960 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 8,068,734
Series 2005M, 5.000%, 4/01/24 (UB)
1,500 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 1,766,850
2008, Trust 3217, 18.095%, 8/15/20 (IF)
2,880 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AAA 2,949,984
Revenue Bonds, Trust 2364, 14.755%, 11/15/44 - AMBAC
Insured (IF)
650 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 542,282
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 1,450,238
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- 7,526,836
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 6,579,833
Income Tax Revenue Bonds, Series 2004A-1, 5.000%, 3/15/26 -
FGIC Insured
4,750 Port Authority of New York and New Jersey, Consolidated 3/14 at 101.00 AA- 4,821,488
Revenue Bonds, One Hundred Thirty-Fifth Series 2004,
5.000%, 9/15/28 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
108,025 Total New York 107,693,630
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.8% (1.2% OF TOTAL INVESTMENTS)
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
5,785 5.250%, 6/01/22 (UB) 6/13 at 100.00 AA+ 6,051,573
3,475 5.250%, 6/01/23 (UB) 6/13 at 100.00 AA+ 3,620,915
4,120 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 3,709,730
Carolinas HealthCare System Revenue Bonds, Series 2008,
Trust 1149, 9.538%, 1/15/47 (IF)
1,050 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 1,017,471
Health Care System Revenue Bonds, Carolinas Health Care,
Series 2007A, 5.000%, 1/15/31
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA (continued)
$ 1,000 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R $ 482,050
Financing Authority, North Carolina, National Gypsum
Company Project Exempt Facilities Revenue Bonds, Series
2005, 5.750%, 8/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,430 Total North Carolina 14,881,739
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.3% (0.8% OF TOTAL INVESTMENTS)
9,650 Dickinson, North Dakota, Health Care Facilities Revenue Bonds, 2/10 at 102.00 Aa2 (4) 10,376,163
BHS Long Term Care Inc., Series 1990, 7.625%, 2/15/20
(Pre-refunded 2/15/10) - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.0% (1.9% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
270 5.125%, 6/01/24 6/17 at 100.00 BBB 212,782
2,850 5.875%, 6/01/30 6/17 at 100.00 BBB 1,933,098
2,745 5.750%, 6/01/34 6/17 at 100.00 BBB 1,737,887
6,285 5.875%, 6/01/47 6/17 at 100.00 BBB 3,530,724
4,265 Franklin County, Ohio, Hospital Revenue and Improvement Bonds, 5/11 at 101.00 Aa2 (4) 4,676,445
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 2,936,240
5.250%, 6/01/20
665 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 681,765
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) 1,453,201
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) 7,571,900
Improvement Bonds, Trinity Health System, Series 2000,
6.500%, 10/01/30 (Pre-refunded 10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
28,135 Total Ohio 24,734,042
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.6% (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- 346,090
1,050 5.375%, 9/01/36 9/16 at 100.00 BBB- 688,863
3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA 3,617,915
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
8,150 5.000%, 2/15/37 2/17 at 100.00 A 7,093,190
1,335 5.000%, 2/15/42 2/17 at 100.00 A 1,132,667
10,035 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 8,604,913
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
143 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 105,909
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.325%, 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
24,713 Total Oklahoma 21,589,547
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,060 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 1,100,768
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 2,884,175
Revenue Bonds, Series 2004A, 5.000%, 11/15/21 (Pre-refunded
11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
3,560 Total Oregon 3,984,943
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 23
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.9% (3.1% OF TOTAL INVESTMENTS)
$ 980 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB $ 619,987
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+ 1,443,207
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,080,226
1,000 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 1,027,960
2005, 5.000%, 9/01/29
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 2,676,634
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 (UB) 9/14 at 100.00 AAA 4,677,001
4,735 5.000%, 9/01/22 - FSA Insured (UB) 9/14 at 100.00 AAA 4,885,147
8,145 Philadelphia Redevelopment Authority, Pennsylvania, 10/09 at 102.00 N/R 6,254,057
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 16,020,340
Revenue Bonds, Philadelphia School District, Series 2003,
5.250%, 6/01/24 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,290 Total Pennsylvania 39,684,559
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 A+ 2,107,200
Bonds, Series 2007A, 5.250%, 8/01/57
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.1% (0.0% OF TOTAL INVESTMENTS)
800 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 590,760
Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.2% (3.3% OF TOTAL INVESTMENTS)
8,610 Dorchester County School District 2, South Carolina, 12/14 at 100.00 AA- 8,827,144
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/24
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2008, Trust 3219:
1,275 17.894%, 12/01/18 (IF) 12/13 at 100.00 AA 1,547,825
895 17.998%, 12/01/20 (IF) 12/13 at 100.00 AA 1,028,588
465 17.972%, 12/01/21 (IF) 12/13 at 100.00 AA 523,478
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) 2,144,160
2,400 5.500%, 5/01/24 (Pre-refunded 5/01/14) 5/14 at 100.00 A+ (4) 2,794,152
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) 15,637,271
1,655 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 1,920,992
7,975 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 8,372,554
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
38,425 Total South Carolina 42,796,164
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.8% (1.2% OF TOTAL INVESTMENTS)
6,400 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 5,021,248
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
6,100 Knox County Health, Educational and Housing Facilities Board, 1/17 at 31.68 A- 630,984
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2006, 0.000%, 1/01/40
5,000 Metropolitan Government of Nashville-Davidson County Health 10/19 at 100.00 AA 5,076,950
and Educational Facilities Board, Tennessee, Revenue
Refunding Bonds, Vanderbilt University, Series 2009B,
5.000%, 10/01/39
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 410 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ $ 250,752
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:
1,300 5.500%, 11/01/37 11/17 at 100.00 N/R 660,283
3,000 5.500%, 11/01/46 11/17 at 100.00 N/R 1,479,030
1,745 Tennessee Housing Development Agency, Homeownership Program 7/13 at 100.00 AA 1,738,927
Bonds, Series 2004, 5.000%, 7/01/34 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,955 Total Tennessee 14,858,174
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.5% (10.4% OF TOTAL INVESTMENTS)
5,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 1,884,150
Bonds, American Airlines Inc., Series 2007, 5.250%,
12/01/29 (Alternative Minimum Tax)
3,183 Austin Housing Finance Corporation, Texas, GNMA Collateralized 12/10 at 105.00 Aaa 3,392,632
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 7,995,868
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
2,150 Brazos River Authority, Texas, Pollution Control Revenue 10/13 at 101.00 CCC 864,365
Bonds, 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 181,437
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 6.000%, 2/15/16
540 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA Single 9/10 at 105.00 AAA 571,001
Family Mortgage Revenue Bonds, Series 2000A, 6.700%,
9/01/33 (Alternative Minimum Tax)
1,335 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 1,385,009
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
145 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AA- (4) 151,802
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
19,125 Harris County Hospital District, Texas, Revenue Refunding 8/10 at 100.00 AA (4) 20,326,046
Bonds, 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 AA- 3,148,720
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 AA 5,119,800
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 6,409,200
Series 2001B, 5.500%, 3/01/15 - FSA Insured
13,975 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 13,493,002
General Obligation Bonds, Series 2007A, 4.750%, 8/01/43 (UB)
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- 1,825,180
2,800 5.125%, 8/15/26 No Opt. Call BBB- 2,319,576
1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 A 1,514,211
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 A1 (4) 280,741
Improvement Bonds, Series 2003, 5.250%, 5/15/24
(Pre-refunded 5/15/13) - AMBAC Insured
3,155 Lower Colorado River Authority, Texas, Revenue Refunding and 5/13 at 100.00 A1 3,158,313
Improvement Bonds, Series 2003, 5.250%, 5/15/24 - AMBAC
Insured
5,650 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 5,339,420
Refunding Bonds, Series 2008, 5.750%, 1/01/38
11,000 Pearland Independent School District, Brazoria County, Texas, 2/17 at 100.00 AAA 10,469,910
General Obligation Bonds, Tender Option Bond Trust 1124,
7.458%, 2/15/32 (IF)
Nuveen Investments 25
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 2,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC $ 765,400
Bonds, TXU Electric Company, Series 2001C, 5.200%, 5/01/28
12,130 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 11,365,204
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
7,255 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 7,437,536
Texas, GNMA Collateralized Mortgage Loan Revenue Bonds,
Eastview Nursing Home, Ebony Lake Nursing Center, Ft.
Stockton Nursing Center, Lynnhaven Nursing Center and
Mission Oaks Manor, Series 2000A-1, 7.625%, 12/20/32
4,000 Tarrant County Health Facilities Development Corporation, 11/10 at 101.00 A+ (4) 4,390,560
Texas, Hospital Revenue Bonds, Adventist Health System -
Sunbelt Obligated Group, Series 2000, 6.700%, 11/15/30
(Pre-refunded 11/15/10)
5,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 5,475,650
Refunding and Improvement Bonds, Series 1999, 5.250%,
3/01/17 - FSA Insured
2,985 Texas State, General Obligation Bonds, Series 2007, Trust 4/17 at 100.00 Aa1 3,679,192
3213, 12.946%, 4/01/33 (IF)
25,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central No Opt. Call A 9,447,750
Texas Turnpike System, Series 2002A, 0.000%, 8/15/24 -
AMBAC Insured
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,023,575
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
156,693 Total Texas 134,415,250
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.0% (0.0% OF TOTAL INVESTMENTS)
340 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 100.00 AAA 339,735
Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
4,725 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100.00 N/R 3,909,985
Residential Rental Housing Revenue Bonds, Mayfair
Apartments I and II, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.5% (2.2% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 2,737,200
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, General 6/14 at 100.00 A3 3,210,000
Obligation Bonds, Series 2004A, 5.375%, 12/01/20 - MBIA
Insured
5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AA 5,118,600
Bonds, Series 2001, 5.250%, 12/01/26 - MBIA Insured
4,750 Washington State Healthcare Facilities Authority, Revenue 5/09 at 101.00 A2 4,347,628
Bonds, Swedish Health Services, Series 1998, 5.125%,
11/15/22 - AMBAC Insured
Washington State Tobacco Settlement Authority, Tobacco
Settlement Asset-Backed Revenue Bonds, Series 2002:
1,770 6.500%, 6/01/26 6/13 at 100.00 BBB 1,706,315
2,100 6.625%, 6/01/32 6/13 at 100.00 BBB 1,676,010
6,480 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 3,142,994
Bonds, Series 2002-03C, 0.000%, 6/01/24 - MBIA Insured
11,000 Washington, General Obligation Bonds, Series 2000S-5, 0.000%, No Opt. Call AA+ 7,023,060
1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
36,725 Total Washington 28,961,807
------------------------------------------------------------------------------------------------------------------------------------
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0% (2.5% OF TOTAL INVESTMENTS)
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
$ 1,410 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA $ 1,512,803
300 6.375%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 337,308
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 A1 (4) 1,145,760
750 5.125%, 8/01/23 (Pre-refunded 8/01/13) - AMBAC Insured 8/13 at 100.00 A1 (4) 859,320
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,011,630
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%, 7/01/21
9,000 Wisconsin Health and Educational Facilities Authority, Revenue 4/13 at 100.00 BBB+ 8,070,480
Bonds, Aurora Healthcare Inc., Series 2003, 6.400%, 4/15/33
2,175 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 100.00 BBB 2,180,916
Bonds, Carroll College Inc., Series 2001, 6.125%, 10/01/16
790 Wisconsin Health and Educational Facilities Authority, Revenue 5/16 at 100.00 BBB 553,261
Bonds, Divine Savior Healthcare, Series 2006, 5.000%, 5/01/32
6,025 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 BBB+ (4) 7,072,507
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+ 3,581,015
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 BBB+ 1,370,540
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 BBB+ 1,377,380
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 188,860
1,265 5.250%, 5/01/21 - FGIC Insured 5/14 at 100.00 AA 1,345,898
1,545 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 Aa3 (4) 1,791,614
5/01/19 (Pre-refunded 5/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,430 Total Wisconsin 32,399,292
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.2% OF TOTAL INVESTMENTS)
3,900 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds, 12/15 at 100.00 BBB 2,911,389
FMC Corporation, Series 2005, 5.600%, 12/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,525,235 Total Long-Term Investments (cost $1,347,873,799) - 158.3% 1,293,129,625
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 27
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2% (0.1% OF TOTAL INVESTMENTS)
WASHINGTON - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 1,931 King County, Washington, Sewer Revenue Bonds, Series 2001, 1/12 at 100.00 A-1 $ 1,930,500
Trust 554, Variable Rate Demand Obligations 0.630%,
1/01/19 - FGIC Insured (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,930,500) 1,930,500
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,349,804,299) - 158.5% 1,295,060,125
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (12.6)% (103,139,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 25,564,586
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.0)% (6) (400,650,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 816,835,711
=====================================================================================================================
(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
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' 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 30.9%.
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 Notes to
Financial Statements, Footnote 1- Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
28 Nuveen Investments
NPM | Nuveen Premium Income Municipal Fund 2, Inc.
| Portfolio of INVESTMENTS April 30, 2009 Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.3% (2.7% OF TOTAL INVESTMENTS)
$ 6,995 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 6,771,720
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
(UB)
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A:
3,500 5.250%, 11/15/20 11/15 at 100.00 Baa1 2,704,835
1,000 5.000%, 11/15/30 11/15 at 100.00 Baa1 640,850
4,000 Birmingham Waterworks And Sewer Board, Alabama, Water and 1/17 at 100.00 A+ 3,148,560
Sewer Revenue Bonds, Tender Option Bond Trust 2707,
10.345%, 1/01/39 - AMBAC Insured (IF)
1,960 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,367,649
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) 1,967,870
Alabama, Revenue Bonds, Baptist Medical Center, Series
2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
6,255 University of South Alabama, Student Tuition Revenue Bonds, 3/14 at 100.00 A1 6,354,642
Series 2004, 5.000%, 3/15/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,400 Total Alabama 22,956,126
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.5% (0.3% 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 176,254
265 5.250%, 12/01/25 12/15 at 100.00 BBB 231,907
590 Pima County Industrial Development Authority, Arizona, Lease 7/09 at 100.00 Aa3 593,056
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 A 1,864,198
Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
3,805 Total Arizona 2,865,415
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 Baa1 842,900
Washington Regional Medical Center, Series 2005B, 5.000%,
2/01/25
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 16.8% (10.4% OF TOTAL INVESTMENTS)
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 Aa2 5,861,610
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 4,597,400
5,500 5.375%, 5/01/21 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 6,220,445
California Educational Facilities Authority, Revenue
Refunding Bonds, Loyola Marymount University, Series 2001A:
3,255 0.000%, 10/01/23 - MBIA Insured No Opt. Call A2 1,432,688
5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call A2 2,399,998
7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call A2 2,866,438
3,740 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A2 3,422,586
Bonds, Cedars-Sinai Medical Center, Series 2005, 5.000%,
11/15/27
Nuveen Investments 29
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 820 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 $ 775,417
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.644%, 11/15/42 (IF)
2,055 California Infrastructure Economic Development Bank, 10/14 at 100.00 AA+ 2,149,283
Infrastructure 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 628,940
Bonds, Daughters of Charity Health System, Series 2005A,
5.000%, 7/01/39
5,355 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 4,887,080
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.216%, 11/15/48 (IF)
2,500 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call A+ 2,785,125
5.250%, 7/01/14
7,440 California, General Obligation Bonds, Series 2004, 5.125%, 2/14 at 100.00 A 7,446,845
2/01/25
1,900 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 1,924,529
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,500 Fontana Public Financing Authority, California, Tax 10/15 at 100.00 A 2,369,400
Allocation 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 19,049,397
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21
(ETM)
1,385 Fullerton Public Financing Authority, California, Tax 9/15 at 100.00 A 1,205,684
Allocation 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 575,800
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 1,006,297
435 5.100%, 9/01/30 9/15 at 102.00 N/R 287,122
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 204,440
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 216,637
2,220 San Diego Redevelopment Agency, California, Subordinate Lien 9/14 at 100.00 A3 2,092,439
Tax Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/20 - SYNCORA GTY Insured
960 San Francisco Redevelopment Agency, California, Hotel Tax 7/09 at 100.00 AAA 961,661
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 AA- 769,019
32,400 0.000%, 1/15/34 - MBIA Insured No Opt. Call AA- 4,606,308
6,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AA- 6,038,040
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 A+ 2,904,780
Bonds, Turlock Irrigation District, Series 2004A, 5.000%,
1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
143,200 Total California 89,685,408
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.1% (1.3% OF TOTAL INVESTMENTS)
1,700 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AA- 1,767,031
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- 1,555,982
475 5.000%, 6/01/29 6/16 at 100.00 A- 373,331
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 338,020
Valley Health Care, Series 2005F, 5.000%, 3/01/25
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 305 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ $ 328,741
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum
Tax)
6,925 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- 5,389,243
Revenue Bonds, Convention Center Hotel, Series 2006,
5.125%, 12/01/25 - SYNCORA GTY Insured
1,700 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/09 at 100.00 BBB+ 1,688,457
Bonds, Boston Lofts Project, Series 1997A, 5.750%,
10/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,250 Total Colorado 11,440,805
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.0% (0.6% OF TOTAL INVESTMENTS)
5,000 Connecticut, Special Tax Obligation Transportation 1/14 at 100.00 AA 5,241,150
Infrastructure Purpose Bonds, Series 2003B, 5.000%,
1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.0% (1.9% 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 AA- (4) 4,507,629
13,780 0.000%, 4/01/28 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 37.21 AA- (4) 4,979,265
15,855 0.000%, 4/01/29 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 35.07 AA- (4) 5,399,103
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,114,271
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 10.676%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
42,690 Total District of Columbia 16,000,268
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.2% (1.4% OF TOTAL INVESTMENTS)
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- 3,691,775
Bonds, Health First Inc. Project, Series 2005, 5.000%,
4/01/24
2,500 Escambia County Health Facilities Authority, Florida, Health 10/10 at 100.00 Baa1 2,261,925
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 557,953
Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 - FSA
Insured (Alternative Minimum Tax)
3,600 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R 1,859,184
Florida, 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 BBB- 1,414,434
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 8/17 at 100.00 AA- 2,150,531
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
------------------------------------------------------------------------------------------------------------------------------------
15,040 Total Florida 11,935,802
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.8% (1.1% OF TOTAL INVESTMENTS)
500 Chatham County Hospital Authority, Savannah, Georgia, 1/14 at 100.00 BBB 377,065
Hospital Revenue Bonds, Memorial Health University Medical
Center Inc., Series 2004A, 5.375%, 1/01/26
10 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 11,577
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 AA 3,677,741
3,365 5.000%, 11/01/18 - MBIA Insured 11/13 at 100.00 AA- 3,513,127
2,235 Richmond County Development Authority, Georgia, Revenue 12/14 at 100.00 A 2,258,870
Bonds, Medical College of Georgia, Cancer Research Center
Project, Series 2004A, 5.000%, 12/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,515 Total Georgia 9,838,380
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.9% (0.6% OF TOTAL INVESTMENTS)
$ 125 Idaho Housing Agency, Senior Lien Single Family Mortgage 7/09 at 100.00 Aaa $ 129,258
Bonds, Series 1995F, 6.450%, 7/01/27 (Alternative Minimum
Tax)
3,135 Idaho Housing and Finance Association, GNMA Housing Revenue 3/12 at 105.00 Aaa 3,172,307
Refunding Bonds, Wedgewood Terrace Project, Series
2002A-1, 7.250%, 3/20/37
190 Idaho Housing and Finance Association, Single Family 7/09 at 100.00 Aa1 195,337
Mortgage Bonds, Series 1996G, 6.350%, 7/01/26
(Alternative Minimum Tax)
165 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 Aa2 170,255
Mortgage Bonds, Series 2000B, 6.250%, 7/01/22
(Alternative Minimum Tax)
270 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aaa 279,550
Mortgage Bonds, Series 2000E, 5.950%, 7/01/20
(Alternative Minimum Tax)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
1,000 5.250%, 9/01/30 9/16 at 100.00 BBB- 716,630
470 5.250%, 9/01/37 9/16 at 100.00 BBB- 319,337
------------------------------------------------------------------------------------------------------------------------------------
5,355 Total Idaho 4,982,674
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.1% (9.4% OF TOTAL INVESTMENTS)
5,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 2,901,400
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
22,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 10,345,001
Series 1999, 0.000%, 1/01/25 - FGIC Insured
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 6/09 at 102.00 Aaa 1,192,884
Revenue Bonds, Bryn Mawr-Belle Shores Project, Series
1997, 5.800%, 6/01/23 (Alternative Minimum Tax)
2,570 Chicago, Illinois, Tax Increment Allocation Bonds, 7/09 at 100.00 N/R 2,570,129
Read-Dunning Redevelopment Project, Series 1996B, 7.250%,
1/01/14
2,510 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 7/09 at 100.00 N/R 2,511,155
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) 2,855,220
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured (ETM)
2,575 Cook County Community High School District 219, Niles No Opt. Call Baa1 1,494,221
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 N/R (4) 2,319,709
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 2,019,600
4,420 5.250%, 11/15/15 5/14 at 100.00 A 4,429,194
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 295,393
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,106,370
Medical Center, Series 2002, 5.500%, 5/15/32
(Pre-refunded 5/15/12)
3,090 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 2,832,479
Forest Hospital, Series 2003, 6.000%, 7/01/33
3,000 Illinois Health Facilities Authority, Revenue Refunding No Opt. Call Aa3 3,420,180
Bonds, Lutheran General Health System, Series 1993C,
6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance
Bonds, Series 2000A:
175 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 178,645
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,251,735
11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AA- 13,105,727
Series 2001, 6.000%, 11/01/26 - FGIC Insured
2,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA- 2,166,800
Series 2002, 5.500%, 2/01/18 - FGIC Insured
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Lake County Community Unit School District 60, Waukegan,
Illinois, General Obligation Refunding Bonds, Series
2001B:
$ 3,230 0.000%, 11/01/19 - FSA Insured No Opt. Call Aa3 $ 2,060,966
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aa3 971,042
4,020 Lake, Cook, Kane and McHenry Counties Community Unit School No Opt. Call AAA 4,684,024
District 220, Barrington, Illinois, General Obligation
Bonds, Series 2002, 5.250%, 12/01/20 - FSA Insured (UB)
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 843,269
1,750 5.250%, 1/01/30 1/16 at 100.00 AA 1,745,485
17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call N/R 8,913,640
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, Marengo, No Opt. Call A1 1,667,314
Illinois, Capital Appreciation School Bonds, Series 2001,
0.000%, 1/01/21 - FGIC Insured
2,540 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 2,556,789
Revenue Bonds, McCormick Place Expansion Project, Series
2002A, 5.000%, 12/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
108,295 Total Illinois 80,438,371
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.0% (1.9% OF TOTAL INVESTMENTS)
1,000 Ball State University, Indiana, Student Fee Revenue Bonds, 1/12 at 100.00 A+ (4) 1,117,900
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 AA (4) 3,682,875
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) 863,958
4,195 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 4,502,242
Indiana University, Student Fee Revenue Bonds, Series 2004P:
2,750 5.000%, 8/01/22 - AMBAC Insured 8/14 at 100.00 Aa1 2,879,635
1,600 5.000%, 8/01/24 - AMBAC Insured 8/14 at 100.00 Aa1 1,655,712
1,550 St. Joseph County Hospital Authority, Indiana, Revenue 2/15 at 100.00 BBB- 1,245,270
Bonds, Madison Center Inc., Series 2005, 5.250%, 2/15/23
------------------------------------------------------------------------------------------------------------------------------------
15,400 Total Indiana 15,947,592
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.6% (1.0% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,000,900
Medical Center, Series 2000, 6.250%, 7/01/25
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 4,490,960
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
2,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 2,150,480
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Iowa 8,642,340
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
95 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 97,021
Single Family Mortgage Revenue Refunding Bonds, Series
1994A-1, 7.900%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.2% (3.9% OF TOTAL INVESTMENTS)
240 Bossier Public Trust Financing Authority, Louisiana, Single 8/09 at 100.00 AAA 240,163
Family Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
1,935 East Baton Rouge Parish Mortgage Finance Authority, 10/09 at 100.00 Aaa 1,941,676
Louisiana, GNMA/FNMA Mortgage-Backed Securities Program
Single Family Mortgage Revenue Bonds, Series 1994C,
6.350%, 10/01/28 (Alternative Minimum Tax)
Nuveen Investments 33
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 4,350 Louisiana Citizens Property Insurance Corporation, 6/16 at 100.00 A $ 3,905,256
Assessment Revenue Bonds, Series 2006, 5.000%, 6/01/22 -
AMBAC Insured
4,000 Louisiana Public Facilities Authority, Hospital Revenue 8/15 at 100.00 A+ 3,361,520
Bonds, Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
2,700 Louisiana Public Facilities Authority, Revenue Bonds, 5/17 at 100.00 A3 2,017,332
Ochsner Clinic Foundation Project, Series 2007A, 5.500%,
5/15/47
Louisiana State, Gasoline and Fuel Tax Revenue Bonds, Series
2006A:
14,550 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 14,010,050
5,920 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 5,296,860
2,485 Orleans Levee District, Louisiana, Levee District General 6/09 at 100.00 AAA 2,491,262
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
36,180 Total Louisiana 33,264,119
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 1,226,928
Revenue Bonds, Series 2006A, 5.250%, 9/01/26 - SYNCORA
GTY Insured
1,205 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 887,109
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 A2 (4) 1,600,807
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.250%, 7/01/19 (Pre-refunded 7/01/14)
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Maryland 3,714,844
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.5% (4.6% OF TOTAL INVESTMENTS)
1,920 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,785,773
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
1,595 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,376,102
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 766,510
Hampshire College, Series 2004, 5.700%, 10/01/34
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 7,569,467
Revenue Bonds, Berkshire Health System, Series 2001E,
5.700%, 10/01/25 - RAAI Insured
1,100 Massachusetts Health and Educational Facilities Authority, 1/11 at 100.00 BBB 941,611
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 N/R 2,102,987
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 N/R (4) 115,179
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 (Pre-refunded 5/15/12) -
FGIC Insured
3,795 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 3,366,241
Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
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 12,710,655
1,850 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 2,062,695
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) 2,544,863
4,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 4,524,200
------------------------------------------------------------------------------------------------------------------------------------
40,835 Total Massachusetts 39,866,283
------------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.5% (2.8% 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 $ 4,388,491
7,955 0.000%, 12/01/22 No Opt. Call AAA 4,300,950
8,260 0.000%, 12/01/23 No Opt. Call AAA 4,171,961
8,575 0.000%, 12/01/24 No Opt. Call AAA 4,057,519
1,200 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BB+ 865,152
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,405,440
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
1,220 Michigan State Hospital Finance Authority, Revenue Refunding 7/09 at 100.00 BB 1,220,281
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 199,679
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- 3,365,451
Obligation Bonds, Series 2003, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
39,980 Total Michigan 23,974,924
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.2% (2.6% OF TOTAL INVESTMENTS)
8,165 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A- 7,740,175
Inc., Series 2004, 4.950%, 7/01/22
Minneapolis-St. Paul Housing and Redevelopment Authority,
Minnesota, Revenue Bonds, HealthPartners Inc., Series
2003:
1,000 6.000%, 12/01/18 12/13 at 100.00 Baa1 1,002,320
1,050 5.875%, 12/01/29 12/13 at 100.00 Baa1 935,708
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,570,712
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) 3,211,830
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, 8/09 at 100.00 Aa1 311,153
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
315 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 315,176
Bonds, Series 1996G, 6.250%, 7/01/26 (Alternative Minimum
Tax)
660 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 673,880
Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
895 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 905,677
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 1,053,110
Series 2004A, 5.250%, 10/01/19
1,055 Southern Minnesota Municipal Power Agency, Power Supply 7/09 at 100.00 Aaa 1,080,942
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 N/R (4) 1,871,683
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 BB+ 809,780
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%,
11/15/25
------------------------------------------------------------------------------------------------------------------------------------
22,470 Total Minnesota 22,482,146
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.7% (0.4% OF TOTAL INVESTMENTS)
3,675 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 3,659,161
Revenue Bonds, Baptist Memorial Healthcare, Series
2004B-1, 5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 35
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.2% (2.6% OF TOTAL INVESTMENTS)
$ 2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R $ 1,626,900
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+ 178,138
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+ 2,523,625
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 AA- 9,413,460
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+ 751,850
1,525 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,158,634
1,000 Missouri Health and Educational Facilities Authority, 5/13 at 100.00 AA 1,003,410
Revenue Bonds, BJC Health System, Series 2003, 5.125%,
5/15/24
1,200 Missouri Health and Educational Facilities Authority, 2/14 at 100.00 BBB+ 1,130,520
Revenue Bonds, Lake Regional Health System, Series 2003,
5.125%, 2/15/18
1,080 Missouri Health and Educational Facilities Authority, 6/11 at 101.00 AA- 1,096,708
Revenue 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:
170 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 184,620
1,250 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 1,357,500
2,000 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 2,172,000
------------------------------------------------------------------------------------------------------------------------------------
23,090 Total Missouri 22,597,365
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.6% (0.3% OF TOTAL INVESTMENTS)
1,470 Municipal Energy Agency of Nebraska, Power Supply System 4/13 at 100.00 AAA 1,504,913
Revenue Bonds, Series 2003A, 5.250%, 4/01/23 - FSA
Insured
1,050 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 1,507,989
System Revenue Bonds, Nebraska City 2, Series 2006A,
Trust 11673, 17.921%, 2/01/49 - BHAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
2,520 Total Nebraska 3,012,902
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.1% (2.6% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 11,753,098
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded
6/15/12) - MBIA Insured
5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AA- 5,861,932
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 AA- 4,034,920
Bonds, Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
1,000 Director of Nevada State Department of Business and 1/10 at 100.00 A 300,840
Industry, Revenue Bonds, Las Vegas Monorail Project,
First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
21,205 Total Nevada 21,950,790
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.0% (4.3% OF TOTAL INVESTMENTS)
5,480 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aa3 5,902,344
Revenue Bonds, Series 2003, 5.125%, 12/15/20 - FSA
Insured
135 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aa3 (4) 155,727
Revenue 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- 1,367,374
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,019,340
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 520 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 $ 408,346
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,675 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/09 at 100.75 A+ 3,676,617
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 -
AMBAC Insured (Alternative Minimum Tax)
3,400 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 AAA 3,937,370
Transportation System Bonds, Series 2003C, 5.500%,
6/15/22 (Pre-refunded 6/15/13)
3,425 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 3,688,828
Transportation System Bonds, Series 2006A, 5.250%,
12/15/20
4,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 4,152,000
5.000%, 1/01/19 - FGIC Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,139,830
5.000%, 1/01/24 - FSA Insured
10,500 Tobacco Settlement Financing Corporation, New Jersey, 6/17 at 100.00 BBB 6,869,940
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A,
5.000%, 6/01/29
3,185 Union County Utilities Authority, New Jersey, Solid Waste 6/09 at 100.50 A 3,048,141
Facility 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 37,365,857
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.0% (6.8% OF TOTAL INVESTMENTS)
5,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AA- 4,927,850
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 BBB- 1,996,468
2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 BBB- 2,102,027
1,500 Dormitory Authority of the State of New York, State and 7/14 at 100.00 AA- 1,608,045
Local Appropriation Lease Bonds, Upstate Community
Colleges, Series 2004B, 5.250%, 7/01/19
1,250 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A 1,203,813
Revenue Bonds, Adelphi University, Civic Facility
Project, Series 2005, 5.000%, 10/01/30
5,025 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AA- 3,833,723
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured
3,300 Long Island Power Authority, New York, Electric System 11/16 at 100.00 AA- 2,721,840
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA
Insured
2,500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 2,615,475
Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%,
2/01/22 (UB)
New York City Transitional Finance Authority, New York,
Future Tax Secured Bonds, Tender Option Bond Trust 3218:
1,720 17.077%, 8/01/23 (IF) 8/13 at 100.00 AAA 1,962,486
1,815 17.089%, 8/01/24 (IF) 8/13 at 100.00 AAA 2,026,629
35 New York City, New York, General Obligation Bonds, Fiscal No Opt. Call AA 35,016
Series 1996J, 5.500%, 2/15/26
2,150 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AA 2,171,199
Series 2005J, 5.000%, 3/01/25
5,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 5,068,300
Series 2005M, 5.000%, 4/01/24 (UB)
1,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 1,177,900
2004, Trust 3217, 18.095%, 8/15/20 (IF)
1,855 New York Convention Center Development Corporation, Hotel 11/15 at 100.00 AAA 1,900,077
Fee Revenue Bonds, Trust 2364, 14.755%, 11/15/44 - AMBAC
Insured (IF)
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+ 6,236,340
5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,256,060
Nuveen Investments 37
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
New York State Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1:
$ 3,400 5.500%, 6/01/16 6/10 at 100.00 AA- $ 3,458,276
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,074,480
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AA- 6,173,500
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 6.250%, 12/01/15 - MBIA Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
58,955 Total New York 58,549,504
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6% (1.0% OF TOTAL INVESTMENTS)
2,565 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,309,577
Carolinas HealthCare System Revenue Bonds, Series 2008,
Trust 1149, 9.538%, 1/15/47 (IF)
2,065 Durham Urban Redevelopment Authority, North Carolina, 8/09 at 103.00 AAA 2,118,298
FHA-Insured Mortgage Loan Revenue Bonds, Durham Hosiery
Mill, Series 1987, 7.500%, 8/01/29 (Alternative Minimum
Tax)
450 North Carolina Housing Finance Agency, Single Family 9/09 at 100.00 AA 450,297
Revenue 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+ 1,299,375
2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,528,864
------------------------------------------------------------------------------------------------------------------------------------
8,775 Total North Carolina 8,706,411
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.1% (0.1% OF TOTAL INVESTMENTS)
605 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 625,147
Program Bonds, Series 2000C, 6.150%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.5% (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 70,927
900 5.875%, 6/01/30 6/17 at 100.00 BBB 610,452
845 5.750%, 6/01/34 6/17 at 100.00 BBB 534,978
1,965 5.875%, 6/01/47 6/17 at 100.00 BBB 1,103,878
3,000 Columbus City School District, Franklin County, Ohio, 12/14 at 100.00 AAA 3,501,780
General 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 AA 2,417,934
4,105 5.250%, 5/15/18 - MBIA Insured 5/13 at 100.00 AA 4,235,908
2,000 Ohio Housing Finance Agency, FHA-Insured Multifamily 7/09 at 101.00 Aa2 1,950,920
Housing Mortgage Revenue Bonds, Courtyards of Kettering,
Series 1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax)
5,550 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 101.00 N/R 4,421,463
Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%,
9/01/20 (Alternative Minimum Tax)
6,000 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 5,099,580
Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%,
9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
26,785 Total Ohio 23,947,820
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 4.5% (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- 346,090
750 5.375%, 9/01/36 9/16 at 100.00 BBB- 492,045
Oklahoma Development Finance Authority, Revenue Bonds,
Saint John Health System, Series 2007:
5,020 5.000%, 2/15/37 2/17 at 100.00 A 4,369,057
1,020 5.000%, 2/15/42 2/17 at 100.00 A 865,409
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA (continued)
$ 10,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 AA- $ 8,447,100
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 4,622,500
Bonds, Series 2001A-1, 5.625%, 6/01/31 (Alternative
Minimum Tax)
99 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 73,321
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.325%, 12/15/36 (IF)
5,460 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 4,681,895
Revenue Bonds, Saint Francis HealthSystem, Series 2006,
5.000%, 12/15/36 (UB)
------------------------------------------------------------------------------------------------------------------------------------
27,849 Total Oklahoma 23,897,417
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.5% (1.0% OF TOTAL INVESTMENTS)
7,860 Multnomah County Hospital Facilities Authority, Oregon, 10/14 at 100.00 AA 8,204,111
Revenue Bonds, Sisters of Providence Health System,
Series 2004, 5.500%, 10/01/21 (UB)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6% (1.6% OF TOTAL INVESTMENTS)
3,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AA- 3,560,725
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA
Insured
1,500 Annville-Cleona School District, Lebanon County, 3/15 at 100.00 Aa3 1,609,485
Pennsylvania, General Obligation Bonds, Series 2005,
6.000%, 3/01/28 - FSA Insured
500 Bucks County Industrial Development Authority, 3/17 at 100.00 BBB 316,320
Pennsylvania, 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 Aa2 1,137,518
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 5,237,856
Revenue Bonds, School District of Philadelphia, Series
2006B, 4.500%, 6/01/32 - FSA Insured
1,000 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 1,027,960
Series 2005, 5.000%, 9/01/29
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 1,070,654
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,450 Total Pennsylvania 13,960,518
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.5% (1.6% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed Bonds, Series 2002A:
9,710 6.000%, 6/01/23 6/12 at 100.00 BBB 8,962,718
6,000 6.125%, 6/01/32 6/12 at 100.00 BBB 4,420,680
------------------------------------------------------------------------------------------------------------------------------------
15,710 Total Rhode Island 13,383,398
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 10.3% (6.4% OF TOTAL INVESTMENTS)
9,000 Berkeley County School District, South Carolina, 12/13 at 100.00 A- 9,171,990
Installment Purchase Revenue Bonds, Securing Assets for
Education, Series 2003, 5.250%, 12/01/24
15,445 Greenville County School District, South Carolina, 12/12 at 101.00 AA (4) 18,075,126
Installment Purchase Revenue Bonds, Series 2002, 5.875%,
12/01/17 (Pre-refunded 12/01/12)
2,500 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AA- 2,430,250
Refunding Bonds, Series 2003A, 5.000%, 5/01/25 - AMBAC
Insured
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/09 at 100.00 AA 7,177,592
Revenue Bonds, Series 1991, 4.000%, 1/01/23 - MBIA
Insured
1,250 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A3 (4) 1,429,050
Economic 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, 11/12 at 100.00 A- 4,291,958
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002B, 5.625%, 11/15/30
Nuveen Investments 39
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
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) $ 1,591,013
165 6.875%, 8/01/27 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 194,799
4,450 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,214,377
550 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 638,396
4,475 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 4,698,079
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
51,520 Total South Carolina 54,912,630
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 2,510,624
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 A 1,518,375
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 406,328
1,000 5.500%, 11/01/46 11/17 at 100.00 N/R 493,010
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Tennessee 4,928,337
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.9% (8.0% OF TOTAL INVESTMENTS)
5,810 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 5,255,203
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 Caa2 2,104,962
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 BBB- 8,789,900
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, Series 2/12 at 100.00 AA (4) 3,746,166
2001, 5.625%, 2/15/19 (Pre-refunded 2/15/12)
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/10 at 100.00 BBB 3,923,000
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 931,540
1,000 5.000%, 12/01/21 12/14 at 100.00 A 912,480
2,500 5.125%, 12/01/22 12/14 at 100.00 A 2,270,450
2,800 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AA- 2,337,664
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 4,104,880
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call A 4,216,636
Bonds, Convention and Entertainment Project, Series
2001B, 0.000%, 9/01/25 - AMBAC Insured
725 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 AAA 742,219
Unlimited Tax General Obligation Refunding Bonds, Series
2001, 5.250%, 8/15/26
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- 730,072
1,250 5.125%, 8/15/26 No Opt. Call BBB- 1,035,525
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 3,100 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 $ 2,929,593
Refunding Bonds, Series 2008, 5.750%, 1/01/38
2,000 Pearland Independent School District, Brazoria County, 2/11 at 100.00 AAA 2,149,600
Texas, 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 11/15 at 100.00 CCC 382,700
Bonds, TXU Electric Company, Series 2001C, 5.200%,
5/01/28
3,935 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,220,130
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26 (Pre-refunded 2/01/11)
7,100 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 6,652,345
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
3,755 Texas State, General Obligation Bonds, Series 2007, Trust 4/17 at 100.00 Aa1 4,628,263
3213, 12.946%, 4/01/33 (IF)
3,900 Texas, General Obligation Bonds, Veterans Housing 12/11 at 101.00 Aa1 3,903,432
Assistance Program Fund II, Series 2001, 5.200%,
12/01/21 (Alternative Minimum Tax) (UB)
2,905 Weatherford Independent School District, Parker County, 2/11 at 44.73 AAA 1,186,634
Texas, Unlimited Tax School Building and Refunding
Bonds, Series 2001, 0.000%, 2/15/25
4,040 Weatherford Independent School District, Parker County, 2/11 at 44.73 AAA 1,760,268
Texas, Unlimited Tax School Building and Refunding
Bonds, Series 2001, 0.000%, 2/15/25 (Pre-refunded
2/15/11)
------------------------------------------------------------------------------------------------------------------------------------
85,925 Total Texas 68,913,662
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.0% (0.0% OF TOTAL INVESTMENTS)
145 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 101.50 AAA 148,177
Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax)
80 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/09 at 100.00 AAA 82,572
Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
225 Total Utah 230,749
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.3% (6.4% OF TOTAL INVESTMENTS)
15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AA 13,490,697
Consolidated System Revenue Bonds, Series 2002A, 5.450%,
7/01/37 - AMBAC Insured (Alternative Minimum Tax)
6,000 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 6,569,280
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 5,461,650
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
(UB)
10,080 King County School District 401, Highline, Washington, 6/12 at 100.00 AA+ 11,073,989
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 AA- 7,084,380
5.250%, 9/01/22 - FGIC Insured
2,820 Skagit County Public Hospital District 1, Washington, 12/14 at 100.00 A3 2,923,381
General Obligation Bonds, Series 2004A,
5.375%, 12/01/19 - MBIA Insured
2,500 Snohomish County, Washington, Limited Tax General 12/11 at 100.00 AA 2,596,400
Obligation Bonds, Series 2001, 5.125%, 12/01/22 - MBIA
Insured
1,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 635,230
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
4,905 Washington, Various Purpose General Obligation Bonds, 7/09 at 100.00 AA+ 4,917,704
Series 1999B, 5.000%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
54,270 Total Washington 54,752,711
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.5% (0.9% OF TOTAL INVESTMENTS)
$ 5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB $ 4,847,600
Bonds, Appalachian Power Company, Series 2003L, 5.500%,
10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue 10/09 at 101.00 Baa3 808,890
Bonds, West Penn Power Company Pleasants Station
Project, Series 1999E, 5.500%, 4/01/29 - AMBAC Insured
(Alternative Minimum Tax)
2,355 West Virginia University, Unlimited Tax General Revenue 10/14 at 100.00 AA- 2,396,260
Bonds, Student Fees, Series 2004C, 5.000%, 10/01/24 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,355 Total West Virginia 8,052,750
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.2% (2.0% OF TOTAL INVESTMENTS)
5,105 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 A3 4,184,773
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 220,604
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+ 875,781
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/24
3,215 Wisconsin Health and Educational Facilities Authority, 8/09 at 100.00 AA- 3,203,298
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 BBB+ 3,104,274
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 5,403,403
4.750%, 5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
19,465 Total Wisconsin 16,992,133
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,750 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB 2,052,904
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,024,104 Total Long-Term Investments (cost $878,080,791) - 160.0% 854,912,845
============------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.9% (0.6% OF TOTAL INVESTMENTS)
MARYLAND - 0.4% (0.2% OF TOTAL INVESTMENTS)
$ 2,000 Maryland Health and Higher Educational Facilities 5/09 at 100.00 A-1 $ 2,000,000
Authority, Goucher College, Variable Rate Demand
Obligations, Series 2007, 0.480%, 7/01/37 (5)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 0.5% (0.4% OF TOTAL INVESTMENTS)
3,000 Red River Authority, Texas, Pollution Control Revenue 5/09 at 100.00 VMIG-1 3,000,000
Bonds, Southwestern Public Service Company, Variable
Rate Demand Obligations, Series 1996, 8.500%, 7/01/16 -
AMBAC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 5,000 Total Short-Term Investments (cost $5,000,000) 5,000,000
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $883,080,791) - 160.9% 859,912,845
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (11.7)% (62,749,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 14,993,592
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (6) (277,675,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 534,482,437
=====================================================================================================================
(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
whose insurer has experienced Please downgrades as of the end of the
reporting period. see the Portfolio Managers' 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 32.3%.
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 Notes to
Financial Statements, Footnote 1- Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 43
NPT | Nuveen Premium Income Municipal Fund 4, Inc.
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 5.1% (3.1% OF TOTAL INVESTMENTS)
$ 5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 4,843,987
Bonds, Series 2001, 5.750%, 12/01/16
2,395 Alabama Housing Finance Authority, FNMA Multifamily 2/11 at 102.00 AAA 2,423,572
Housing Revenue Bonds, South Bay Apartments, Series
2000K, 5.950%, 2/01/33 (Alternative Minimum Tax)
11,895 Alabama Special Care Facilities Financing Authority, 5/09 at 100.00 Aaa 11,930,209
Birmingham, 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, 11/16 at 100.00 Aa1 4,840,400
Revenue Bonds, Ascension Health, Series 2006C-2,
5.000%, 11/15/39 (UB)
1,000 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa1 640,850
Alabama, Revenue Bonds, Baptist Health System Inc.,
Series 2005A, 5.000%, 11/15/30
1,000 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 697,780
Control Revenue Bonds, International Paper Company,
Series 2005A, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
26,440 Total Alabama 25,376,798
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0% (0.6% OF TOTAL INVESTMENTS)
1,665 Alaska Housing Finance Corporation, General Housing 12/14 at 100.00 AA 1,654,061
Purpose Bonds, Series 2005A, 5.000%, 12/01/30 - FGIC
Insured (UB)
3,065 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AA- (4) 3,551,109
Bonds, Series 2003E, 5.250%, 12/01/26 (Pre-refunded
12/01/13) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,730 Total Alaska 5,205,170
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.2% (0.7% OF TOTAL INVESTMENTS)
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 A2 4,550,500
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/31 - MBIA Insured
2,000 Salt Verde Financial Corporation, Arizona, Senior Gas No Opt. Call A 1,355,780
Revenue Bonds, Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total Arizona 5,906,280
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
15 Lonoke County Residential Housing Facilities Board, 10/09 at 100.00 Aaa 14,734
Arkansas, FNMA Mortgage-Backed Securities Program
Single Family Mortgage Revenue Refunding Bonds, Series
1993A, 7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.5% (8.9% OF TOTAL INVESTMENTS)
10,000 Anaheim Public Finance Authority, California, Public 9/17 at 100.00 AA- 7,898,200
Improvement Project Lease Bonds, Series 2007A-1,
4.375%, 3/01/37 - FGIC Insured
17,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 13,615,809
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
5,000 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 4,213,750
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
950 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 898,349
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.644%, 11/15/42 (IF)
2,000 California Infrastructure Economic Development Bank, 8/11 at 102.00 A+ 1,864,520
Revenue Bonds, Kaiser Hospital Assistance LLC, Series
2001A, 5.550%, 8/01/31
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB $ 628,940
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.000%, 7/01/39
1,685 California Statewide Community Development Authority, 5/18 at 100.00 Aa3 1,537,765
Revenue Bonds, Sutter Health, Tender Option Bond Trust
3175, 13.216%, 11/15/48 (IF)
19,095 California, General Obligation Bonds, Series 2005, 5.000%, 6/15 at 100.00 A+ 17,755,867
6/01/33 - CIFG Insured
4,780 Foothill/Eastern Transportation Corridor Agency, No Opt. Call AAA 4,299,849
California, 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 314,583
1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 575,800
1,000 Golden State Tobacco Securitization Corporation, 6/13 at 100.00 AAA 1,170,490
California, 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, No Opt. Call AAA 1,147,603
California, 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 9,549,372
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 AA- 741,405
31,300 0.000%, 1/15/34 - MBIA Insured No Opt. Call AA- 4,449,921
1,945 South Gate Public Financing Authority, California, Water No Opt. Call AA- 2,072,456
Revenue Refunding Bonds, Series 1996A, 6.000%, 10/01/12
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
116,295 Total California 72,734,679
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.0% (3.1% OF TOTAL INVESTMENTS)
2,000 Colorado Health Facilities Authority, Revenue Refunding 9/11 at 100.00 AA (4) 2,182,180
Bonds, Catholic Health Initiatives, Series 2001,
5.250%, 9/01/21 (Pre-refunded 9/01/11)
380 Colorado Housing Finance Authority, Single Family Program 10/09 at 105.00 Aa2 407,660
Senior Bonds, Series 1999C-3, 6.750%, 10/01/21
2,325 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 2,505,978
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) - SYNCORA GTY 12/13 at 100.00 N/R (4) 3,282,892
Insured
10,000 5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY 12/13 at 100.00 N/R (4) 11,166,300
Insured
4,345 El Paso County School District 20, Academy, Colorado, 12/12 at 100.00 Aa3 4,679,044
General Obligation Bonds, Series 2002, 5.250%, 12/15/17
- FGIC Insured
755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 788,024
Obligation Bonds, Series 2004, 5.000%, 12/15/22 - FSA
Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
22,745 Total Colorado 25,012,078
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.8% (1.1% OF TOTAL INVESTMENTS)
5 District of Columbia, General Obligation Bonds, Series 6/09 at 100.00 AAA 5,021
1993E, 6.000%, 6/01/09 - CAPMAC Insured
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 AA- (4) 3,957,157
15,235 0.000%, 4/01/30 (Pre-refunded 4/01/11) - MBIA Insured 4/11 at 32.93 AA- (4) 4,871,239
------------------------------------------------------------------------------------------------------------------------------------
24,910 Total District of Columbia 8,833,417
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 45
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.0% (4.3% OF TOTAL INVESTMENTS)
$ 5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AA- $ 4,914,950
Participation, Series 2003, 5.000%, 7/01/28 - MBIA
Insured
5,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AA- 5,028,550
Bonds, Tampa International Airport, Series 2003A,
5.250%, 10/01/18 - MBIA Insured (Alternative Minimum
Tax)
5,000 Martin County Industrial Development Authority, Florida, 6/09 at 100.00 BB+ 4,262,250
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25
(Alternative Minimum Tax)
1,380 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 1,415,052
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 2,798,447
International Airport, Series 2005A, 5.000%, 10/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
5,455 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 4,778,471
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
11,000 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 A 10,563,630
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
2,000 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 1,132,280
Assessment Bonds, Series 2006, 5.400%, 5/01/37
------------------------------------------------------------------------------------------------------------------------------------
38,220 Total Florida 34,893,630
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.9% (1.8% OF TOTAL INVESTMENTS)
4,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AA- 4,658,544
Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,880 Georgia Municipal Electric Authority, General Power No Opt. Call A+ 3,164,429
Revenue Bonds, Series 1992B, 8.250%, 1/01/11
5,500 Georgia Municipal Electric Authority, General Power No Opt. Call AAA 6,573,820
Revenue Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC
Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Georgia 14,396,793
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.2% (0.7% OF TOTAL INVESTMENTS)
3,720 Honolulu City and County, Hawaii, General Obligation No Opt. Call AA 4,219,261
Refunding and Improvement Bonds, Series 1993B, 5.000%,
10/01/13
1,580 Honolulu City and County, Hawaii, General Obligation No Opt. Call Aaa 1,811,581
Refunding and Improvement Bonds, Series 1993B, 5.000%,
10/01/13 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
5,300 Total Hawaii 6,030,842
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
750 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 509,580
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/37
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.9% (9.8% OF TOTAL INVESTMENTS)
4,000 Chicago Board of Education, Illinois, General Obligation No Opt. Call AA- 4,460,400
Lease Certificates, Series 1992A, 6.250%, 1/01/15 -
MBIA Insured
5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1/11 at 101.00 AAA 5,283,600
2001A, 5.125%, 1/01/26 - FSA Insured (Alternative
Minimum Tax)
5,000 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/09 at 101.00 AAA 5,026,650
5.250%, 1/01/28 - FGIC Insured
1,165 Chicago, Illinois, Third Lien General Airport Revenue 1/16 at 100.00 AA- 1,130,318
Bonds, 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 N/R 1,800,432
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call N/R 2,173,229
5,990 Illinois Development Finance Authority, GNMA 4/11 at 105.00 Aaa 6,797,931
Collateralized Mortgage Revenue Bonds, Greek American
Nursing Home Committee, Series 2000A, 7.600%, 4/20/40
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,385 Illinois Finance Authority, General Obligation Debt 12/14 at 100.00 A3 $ 1,455,649
Certificates, 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) 2,908,774
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 Baa1 3,793,549
Systems, Series 2007A, 5.500%, 8/01/37
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 3,731,520
Revenue Refunding Bonds, Sinai Health System, Series
2003, 5.150%, 2/15/37
4,000 Illinois Health Facilities Authority, Revenue Bonds, 5/12 at 100.00 Aaa 4,425,480
Condell Medical Center, Series 2002, 5.500%, 5/15/32
(Pre-refunded 5/15/12)
4,005 Illinois Health Facilities Authority, Revenue Refunding No Opt. Call Aa3 4,630,140
Bonds, Lutheran General Health System, Series 1993C,
7.000%, 4/01/14
9,795 Lake, Cook, Kane and McHenry Counties Community Unit No Opt. Call AAA 11,467,692
School District 220, Barrington, Illinois, General
Obligation Bonds, Series 2002, 5.250%, 12/01/20 - FSA
Insured (UB)
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 6,940,700
4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,570,009
36,040 0.000%, 6/15/40 - MBIA Insured No Opt. Call AAA 5,149,756
3,050 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call Aa2 3,791,882
Lake, McHenry and Will Counties, Illinois, General
Obligation Bonds, Series 1990A, 7.200%, 11/01/20 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
109,240 Total Illinois 79,537,711
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 10.0% (6.1% OF TOTAL INVESTMENTS)
Carmel Redevelopment Authority, Indiana, Lease Rent
Revenue Bonds, Series 2005:
1,950 0.000%, 2/01/24 No Opt. Call AA 896,025
2,705 0.000%, 2/01/25 No Opt. Call AA 1,156,036
3,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 1,908,330
Revenue Bonds, Cardinal Health System, Series 2006,
5.250%, 8/01/36
3,965 Indiana Educational Facilities Authority, Revenue Bonds, 2/11 at 100.00 AA- 3,976,419
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 1,539,030
University of Indianapolis, Series 1999, 5.750%,
10/01/19 - FSA Insured
22,000 Indiana Health Facility Financing Authority, Hospital 8/10 at 101.50 AA- (4) 23,673,536
Revenue 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 No Opt. Call AAA 3,426,840
Revenue Refunding Bonds, Columbus Regional Hospital,
Series 1993, 7.000%, 8/15/15 - FSA Insured
2,800 Indiana Health Facility Financing Authority, Revenue 5/15 at 100.00 A 2,014,152
Bonds, 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 4,144,400
Bonds, Series 2003A, 5.000%, 6/01/23 - FSA Insured
6,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 6,806,760
Bonds, Series 2003A, 5.000%, 6/01/24 (Pre-refunded
6/01/13) - FSA Insured
420 Marion County Convention and Recreational Facilities 6/09 at 100.00 AA- 413,595
Authority, Indiana, Excise Tax Lease Rental Revenue
Bonds, Series 1997A, 5.000%, 6/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,340 Total Indiana 49,955,123
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 47
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 1,000 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BB+ $ 765,330
Care Initiatives Project, Series 2006A, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.1% (1.3% OF TOTAL INVESTMENTS)
2,000 Olathe, Kansas, Health Facilities Revenue Bonds, Olathe 9/10 at 100.00 A 1,851,480
Medical Center, Series 2000A, 5.500%, 9/01/25 - AMBAC
Insured
6,825 Sedgwick County Unified School District 259, Wichita, 9/10 at 100.00 AA 6,904,375
Kansas, General Obligation Bonds, Series 2000, 3.500%,
9/01/16
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AA- 1,577,345
Gas and Electric Company, Series 2004, 5.300%, 6/01/31
- MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,575 Total Kansas 10,333,200
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.6% (3.4% OF TOTAL INVESTMENTS)
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,873,953
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 8/15 at 100.00 A+ 4,296,182
Bonds, Franciscan Missionaries of Our Lady Health
System, Series 2005A, 5.250%, 8/15/32
3,800 Louisiana Public Facilities Authority, Revenue Bonds, 5/17 at 100.00 A3 2,839,208
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 1,425,077
15,820 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 14,154,787
170 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 98,420
Residuals 660-1, 13.832%, 5/01/41 - FGIC Insured (IF)
3,365 Orleans Levee District, Louisiana, Levee District General 6/09 at 100.00 AAA 3,374,388
Obligation Bonds, Series 1986, 5.950%, 11/01/14 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
31,535 Total Louisiana 28,062,015
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.2% (1.4% OF TOTAL INVESTMENTS)
1,815 Maryland Community Development Administration, Housing 7/09 at 100.00 Aa2 1,817,432
Revenue Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Housing 7/09 at 100.00 Aa2 2,901,015
Revenue Bonds, Series 1997A, 6.000%, 7/01/39
(Alternative Minimum Tax)
50 Maryland Health and Higher Educational Facilities 8/14 at 100.00 A- 50,053
Authority, Revenue Bonds, MedStar Health, Series 2004,
5.375%, 8/15/24
2,210 Maryland Health and Higher Educational Facilities 7/16 at 100.00 AA- 1,918,766
Authority, Revenue Bonds, Western Maryland Health,
Series 2006A, 4.750%, 7/01/36 - MBIA Insured
1,935 Montgomery County Housing Opportunities Commission, 7/09 at 100.00 Aa2 1,936,742
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 2,344,817
Maryland, Multifamily Housing Development Bonds, Series
2000B, 6.125%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,225 Total Maryland 10,968,825
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,585 Massachusetts Development Finance Agency, Revenue Bonds, 3/15 at 100.00 BBB 2,726,608
Curry College, Series 2005A, 5.000%, 3/01/35 - ACA
Insured
1,000 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 N/R 627,770
Orchard Cove, Series 2007, 5.250%, 10/01/26
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
$ 1,000 Massachusetts Health and Educational Facilities 7/15 at 100.00 BB- $ 525,240
Authority, Revenue Bonds, Milton Hospital Project,
Series 2005D, 5.375%, 7/01/35
3,465 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 3,073,524
Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
9,050 Total Massachusetts 6,953,142
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.3% (3.9% OF TOTAL INVESTMENTS)
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AA- 5,079,960
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 - MBIA
Insured
8,915 Detroit, Michigan, Senior Lien Water Supply System 7/09 at 100.00 AA- 7,837,266
Revenue Bonds, Series 1997A, 5.000%, 7/01/27 - MBIA
Insured
5,400 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 AA- 4,259,466
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC
Insured
5,000 Michigan State Building Authority, Revenue Refunding 10/13 at 100.00 AA- 4,783,850
Bonds, Facilities Program, Series 2003II, 5.000%,
10/15/29 - MBIA Insured
10,500 Michigan State Hospital Finance Authority, Hospital 8/09 at 100.00 BB 6,847,575
Revenue 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 729,070
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 1,873,920
Trinity Health Care Group, Series 2006A, 5.000%,
12/01/31 (UB)
------------------------------------------------------------------------------------------------------------------------------------
38,815 Total Michigan 31,411,107
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.2% (0.7% OF TOTAL INVESTMENTS)
590 Minneapolis-St. Paul Housing Finance Board, Minnesota, 5/09 at 101.00 AAA 590,018
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 3,748,955
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 8/16 at 100.00 N/R 1,581,049
Bonds, Regions Hospital Parking Ramp Project, Series
2007-1, 5.000%, 8/01/36
------------------------------------------------------------------------------------------------------------------------------------
6,965 Total Minnesota 5,920,022
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.9% (1.2% OF TOTAL INVESTMENTS)
2,975 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 2,962,178
Revenue Bonds, Baptist Memorial Healthcare, Series
2004B-1, 5.000%, 9/01/24 (UB)
5,180 Mississippi, General Obligation Refunding Bonds, Series No Opt. Call AA 6,189,323
2002A, 5.500%, 12/01/18
1,000 Warren County, Mississippi, Gulf Opportunity Zone Revenue 8/11 at 100.00 BBB 628,040
Bonds, International Paper Company, Series 2006A,
4.800%, 8/01/30
------------------------------------------------------------------------------------------------------------------------------------
9,155 Total Mississippi 9,779,541
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,450 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 1,059,907
Missouri, Health Facilities Revenue Bonds, Southeast
Missouri Hospital Association, Series 2007, 5.000%,
6/01/36
2,450 Missouri Health and Educational Facilities Authority, 5/13 at 100.00 AA 2,458,355
Revenue Bonds, BJC Health System, Series 2003, 5.125%,
5/15/24
------------------------------------------------------------------------------------------------------------------------------------
3,900 Total Missouri 3,518,262
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.8% (1.1% OF TOTAL INVESTMENTS)
$ 9,000 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call Aa2 $ 9,263,790
Loan Program, Series 1993A-5A, 6.250%, 6/01/18 - MBIA
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.8% (1.7% OF TOTAL INVESTMENTS)
4,500 Clark County School District, Nevada, General Obligation No Opt. Call AA 4,751,010
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 AA- 7,080,850
Improvement Revenue Bonds, Series 2003, 5.000%,
7/01/23 - AMBAC Insured
5,425 Director of Nevada State Department of Business and No Opt. Call A 439,588
Industry, Revenue Bonds, Las Vegas Monorail Project,
First Tier, Series 2000, 0.000%, 1/01/25 - AMBAC
Insured
1,700 Las Vegas Redevelopment Agency, Nevada, Tax Increment 6/19 at 100.00 A 1,743,571
Revenue Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
18,625 Total Nevada 14,015,019
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.0% (3.1% OF TOTAL INVESTMENTS)
500 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 301,880
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) 1,197,383
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 No Opt. Call AA 1,066,657
1991C, 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 AA- (4) 378,648
2,345 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA- (4) 2,740,648
11,070 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 AAA 11,964,345
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 4,804,187
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 2,711,000
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A,
4.750%, 6/01/34
------------------------------------------------------------------------------------------------------------------------------------
25,190 Total New Jersey 25,164,748
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 8.1% (5.0% OF TOTAL INVESTMENTS)
855 Albany Industrial Development Agency, New York, Revenue 4/17 at 100.00 N/R 566,121
Bonds, Brighter Choice Charter Schools, Series 2007A,
5.000%, 4/01/32
1,200 Hempstead Industrial Development Agency, New York, No Opt. Call Baa3 1,172,268
Resource Recovery Revenue Refunding Bonds, American
Ref-Fuel Company of Hempstead LP, Series 2001, 5.000%,
12/01/10 (Mandatory put 6/01/10)
4,070 Hudson Yards Infrastructure Corporation, New York, 2/17 at 100.00 AA- 3,105,125
Revenue Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA
Insured
3,300 Long Island Power Authority, New York, Electric System 11/16 at 100.00 AA- 2,721,840
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA
Insured
1,000 Metropolitan Transportation Authority, New York, 11/19 at 100.00 AA 977,410
Dedicated Tax Fund Bonds, Series 2009B, 5.000%,
11/15/34
6,740 New York City Transitional Finance Authority, New York, 5/10 at 100.00 AAA 6,773,970
Future Tax Secured Bonds, Fiscal Series 1998C, 5.000%,
5/01/26
New York City Transitional Finance Authority, New York,
Future Tax Secured Bonds, Fiscal Series 2000C:
220 5.875%, 11/01/16 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 234,054
5,000 5.500%, 11/01/24 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 5,300,650
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
New York State Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1:
$ 10,800 5.500%, 6/01/16 6/10 at 100.00 AA- $ 10,985,112
2,500 5.500%, 6/01/18 6/12 at 100.00 AA- 2,586,400
6,250 Port Authority of New York and New Jersey, Special No Opt. Call AA- 6,173,500
Project Bonds, JFK International Air Terminal LLC,
Sixth Series 1997, 6.250%, 12/01/15 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
41,935 Total New York 40,596,450
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.1% (1.9% OF TOTAL INVESTMENTS)
750 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 726,765
Health Care System Revenue Bonds, Carolinas Health
Care, Series 2007A, 5.000%, 1/15/31
2,445 North Carolina Infrastructure Finance Corporation, 2/14 at 100.00 AA+ 2,541,578
Certificates of Participation, Correctional
Facilities, Series 2004A, 5.000%, 2/01/21
2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AA 2,123,840
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 AA- 10,401,300
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
15,195 Total North Carolina 15,793,483
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.3% (2.1% OF TOTAL INVESTMENTS)
5,830 Buckeye Tobacco Settlement Financing Authority, Ohio, 6/17 at 100.00 BBB 4,594,506
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 1/10 at 101.00 AAA 8,070,807
2001A, 5.000%, 1/01/31 - FSA Insured
3,000 Franklin County, Ohio, Development Revenue Bonds, 10/09 at 101.00 A+ 3,056,250
American Chemical Society, Series 1999, 5.800%,
10/01/14
1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/09 at 100.00 Aa2 1,000,080
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,895 Total Ohio 16,721,643
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.0% (0.6% OF TOTAL INVESTMENTS)
245 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa 249,089
Revenue Bonds, Homeownership Loan Program, Series
2000C-2, 6.200%, 9/01/28 (Alternative Minimum Tax)
5,615 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 4,814,807
Revenue Bonds, Saint Francis Health System, Series
2006, 5.000%, 12/15/36 (UB)
88 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 65,175
Revenue Bonds, Saint Francis Health System, Series
2006, Trust 3500, 8.325%, 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
5,948 Total Oklahoma 5,129,071
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.8% (1.7% OF TOTAL INVESTMENTS)
500 Bucks County Industrial Development Authority, 3/17 at 100.00 BBB 316,320
Pennsylvania, Charter School Revenue Bonds, School
Lane Charter School, Series 2007A, 5.000%, 3/15/37
5,410 Pennsylvania Housing Finance Agency, Single Family 10/17 at 100.00 AA+ 6,101,993
Mortgage Revenue Bonds, Tender Option Bond Trust 3212,
13.350%, 10/01/38 (IF)
5,490 Pennsylvania Public School Building Authority, Lease 12/16 at 100.00 AAA 4,915,527
Revenue 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 Aa3 2,658,734
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,000 Total Pennsylvania 13,992,574
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 51
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.6% (1.6% OF TOTAL INVESTMENTS)
$ 12,390 Puerto Rico, General Obligation and Public Improvement No Opt. Call AA- $ 13,102,052
Refunding Bonds, Series 1997, 6.500%, 7/01/13 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.9% (1.8% OF TOTAL INVESTMENTS)
20,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 14,768,999
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.6% (2.8% OF TOTAL INVESTMENTS)
4,120 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AA- 4,177,762
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/23 - MBIA Insured
3,000 Myrtle Beach, South Carolina, Hospitality and 6/14 at 100.00 AA- 2,670,270
Accommodation 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 AA- 5,357,250
5,750 4.000%, 1/01/23 - MBIA Insured 7/09 at 100.00 AA 5,430,415
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AA- 5,439,323
Revenue Refunding Bonds, Series 1998A, 5.500%, 1/01/13
- MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,955 Total South Carolina 23,075,020
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,716,803
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4% (0.3% OF TOTAL INVESTMENTS)
5,075 Knox County Health, Educational and Housing Facilities 1/17 at 30.07 A- 485,018
Board, Tennessee, Hospital Revenue Refunding Bonds,
Covenant Health, Series 2006, 0.000%, 1/01/41
680 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 415,881
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 436,803
1,500 5.500%, 11/01/46 11/17 at 100.00 N/R 739,515
------------------------------------------------------------------------------------------------------------------------------------
8,115 Total Tennessee 2,077,217
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 20.9% (12.8% OF TOTAL INVESTMENTS)
3,000 Alliance Airport Authority, Texas, Special Facilities 12/12 at 100.00 CCC+ 1,130,490
Revenue Bonds, American Airlines Inc., Series 2007,
5.250%, 12/01/29 (Alternative Minimum Tax)
5,440 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 4,920,534
System Revenue Bonds, Series 2006F, 4.250%, 8/15/36
(UB)
4,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AA- 3,071,600
Williamson Counties, Toll Road Revenue Bonds, Series
2005, 5.000%, 1/01/35 - FGIC Insured
2,250 Dallas-Ft. Worth International Airport, Texas, Joint 11/14 at 100.00 AAA 2,090,790
Revenue Bonds, Series 2004B, 5.000%, 11/01/27 - FSA
Insured (Alternative Minimum Tax)
8,000 Dallas-Ft. Worth International Airport, Texas, Joint 11/11 at 100.00 AA- 8,104,960
Revenue 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 5,710,740
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 AA- 6,680,100
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 A 8,757,567
Bonds, Convention and Entertainment Project, Series
2001B, 0.000%, 9/01/28 - AMBAC Insured
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 7,500 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA $ 8,847,600
Revenue Refunding Bonds, Series 2002A, 5.750%,
12/01/32 - FSA Insured (ETM)
33,505 Leander Independent School District, Williamson and 8/14 at 25.08 AAA 5,872,756
Travis Counties, Texas, General Obligation Bonds,
Series 2006, 0.000%, 8/15/39
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 763,653
760 5.500%, 2/15/23 2/11 at 100.00 AAA 790,028
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 1,696,432
1,640 5.500%, 2/15/23 (Pre-refunded 2/15/11) 2/11 at 100.00 Aaa 1,772,069
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 3,081,144
2,300 5.125%, 2/15/31 8/11 at 100.00 Aaa 2,325,323
700 Mt. Pleasant Independent School District, Titus County, 8/11 at 100.00 Aaa 764,260
Texas, General Obligation Refunding Bonds, Series
2001, 5.125%, 2/15/31 (Pre-refunded 8/15/11)
2,500 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 2,362,575
Refunding Bonds, Series 2008, 5.750%, 1/01/38
6,000 Raven Hills Higher Education Corporation, Texas, Student 8/12 at 100.00 N/R (4) 6,630,840
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 4,172,101
Revenue Bonds, Retama Park Racetrack, Series 1993,
8.750%, 12/15/18 (Pre-refunded 12/15/12) (5)
1,800 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 Baa2 1,671,570
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 5,040,562
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26 (Pre-refunded 2/01/11)
460 Tarrant County Cultural and Educational Facilities 2/17 at 100.00 AA- 397,063
Finance Corporation, Texas, Revenue Bonds, Texas
Health Resources Project, Trust 1031, 9.642%, 2/15/36
(IF)
5,200 Tarrant County Cultural & Educational Facilities 2/17 at 100.00 AA- 4,872,140
Financing Corporation, Texas, Revenue Bonds, Series
2007A, 5.000%, 2/15/36 (UB)
3,395 Texas State, General Obligation Bonds, Series 2007, Trust 4/17 at 100.00 Aa1 4,184,541
3213, 12.946%, 4/01/33 (IF)
8,500 Travis County Health Facilities Development Corporation, 5/09 at 100.00 Aaa 8,822,235
Texas, Hospital Revenue Bonds, Daughters of Charity
National Health System, Series 1993B, 6.000%, 11/15/22
(ETM)
------------------------------------------------------------------------------------------------------------------------------------
151,690 Total Texas 104,533,673
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.2% (1.4% OF TOTAL INVESTMENTS)
4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding 6/09 at 101.00 N/R 3,955,555
Bonds, South Davis Community Hospital Project, Series
1998, 5.750%, 12/15/18
4,995 Intermountain Power Agency, Utah, Power Supply Revenue 7/09 at 100.00 Aa3 (4) 5,166,578
Bonds, Series 1996A, 6.150%, 7/01/14 (ETM)
465 Utah Housing Finance Agency, Single Family Mortgage 7/10 at 100.00 AA 466,056
Bonds, Series 2000G, 5.875%, 7/01/27 (Alternative
Minimum Tax)
Nuveen Investments 53
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH (continued)
Utah Housing Finance Agency, Single Family Mortgage
Bonds, Series 2001C:
$ 1,165 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- $ 1,186,914
450 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aaa 453,591
------------------------------------------------------------------------------------------------------------------------------------
11,920 Total Utah 11,228,694
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
8,190 Hampton, Virginia, Revenue Bonds, Convention Center 1/13 at 100.00 A1 7,913,506
Project, Series 2002, 5.000%, 1/15/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.0% (5.5% OF TOTAL INVESTMENTS)
1,855 Chelan County Public Utility District 1, Washington, 7/09 at 101.00 AA 1,856,243
Hydro 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 2,737,200
Bonds, Columbia Generating Station - Nuclear Project
2, Series 2002C, 5.750%, 7/01/17 - MBIA Insured
220 Grant County Public Utility District 2, Washington, 1/15 at 100.00 Aa2 (4) 254,628
Revenue Bonds, Wanapum Hydroelectric Development,
Series 2005A, 5.000%, 1/01/34 (Pre-refunded 1/01/15)
- FGIC Insured
5,780 Grant County Public Utility District 2, Washington, 1/15 at 100.00 Aa2 5,675,093
Revenue Bonds, Wanapum Hydroelectric Development,
Series 2005A, 5.000%, 1/01/34 - FGIC Insured
1,500 Snohomish County School District 6, Mukilteo, No Opt. Call AA- 1,674,120
Washington, Unlimited Tax General Obligation and
Refunding Bonds, Series 1993, 5.700%, 12/01/12 - FGIC
Insured
8,155 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 8,882,671
Bonds, Series 2001A, 5.750%, 1/01/20 (Pre-refunded
1/01/11) - FSA Insured
11,000 Washington Public Power Supply System, Revenue Refunding No Opt. Call Aaa 11,117,700
Bonds, Nuclear Project 3, Series 1993B, 7.000%,
7/01/09
2,000 Washington State Health Care Facilities Authority, No Opt. Call N/R 1,270,460
Revenue Bonds, Northwest Hospital and Medical Center
of Seattle, Series 2007, 5.700%, 12/01/32
1,000 Washington State Healthcare Facilities Authority, 8/13 at 102.00 A 809,900
Revenue Bonds, Harrison Memorial Hospital, Series
1998, 5.000%, 8/15/28 - AMBAC Insured
5,500 Washington State Healthcare Facilities Authority, 11/10 at 100.00 A2 5,550,985
Revenue Bonds, Swedish Health Services, Series 1998,
5.500%, 11/15/14 - AMBAC Insured
1,460 Washington State Healthcare Facilities Authority, 8/17 at 100.00 BBB 1,075,976
Revenue Bonds, Virginia Mason Medical Center, Series
2007B, 5.750%, 8/15/37 - ACA Insured
4,300 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 4,145,286
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
45,270 Total Washington 45,050,262
------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.0% (1.8% OF TOTAL INVESTMENTS)
$ 500 Wisconsin Health and Educational Facilities Authority, 7/09 at 100.00 AA- $ 500,315
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 AA- 6,537,000
Revenue Bonds, Ministry Healthcare Inc., Series
2002A, 5.250%, 2/15/32 - MBIA Insured
4,000 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ 2,741,080
Revenue 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 5,097,550
4.750%, 5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
17,000 Total Wisconsin 14,875,945
------------------------------------------------------------------------------------------------------------------------------------
$ 989,053 Total Investments (cost $846,577,187) - 162.7% 815,137,228
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (11.6)% (58,033,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 15,051,893
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.1)% (6) (271,050,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 501,106,121
=====================================================================================================================
(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
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Managers' 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) 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 it is formally determined that the
interest on the bonds should be treated as taxable.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 33.3%.
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 Notes to
Financial Statements, Footnote 1- Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 55
| Statement of ASSETS & LIABILITIES April 30, 2009 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,349,804,299,
$883,080,791 and $846,577,187, respectively) $ 1,295,060,125 $ 859,912,845 $ 815,137,228
Cash 7,667,824 3,352,482 3,502,316
Receivables:
Interest 21,622,476 14,351,863 14,214,517
Investments sold 1,051,734 5,077 5,000
Other assets 273,672 181,304 164,426
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,325,675,831 877,803,571 833,023,487
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 103,139,000 62,749,000 58,033,000
Payables:
Investments purchased 590,205 -- --
Common share dividends 3,364,742 2,275,066 2,259,429
Preferred share dividends 58,089 21,949 20,307
Accrued expenses:
Management fees 618,491 415,296 394,868
Other 419,593 184,823 159,762
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 108,190,120 65,646,134 60,867,366
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 400,650,000 277,675,000 271,050,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 816,835,711 $ 534,482,437 $ 501,106,121
====================================================================================================================================
Common shares outstanding 63,785,430 40,794,161 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 12.81 $ 13.10 $ 11.59
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 407,942 $ 432,367
Paid-in surplus 901,373,142 566,731,259 586,863,748
Undistributed (Over-distribution of) net investment income 6,206,125 4,180,532 4,825,738
Accumulated net realized gain (loss) from investments and
derivative transactions (36,637,236) (13,669,350) (59,575,773)
Net unrealized appreciation (depreciation) of investments (54,744,174) (23,167,946) (31,439,959)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 816,835,711 $ 534,482,437 $ 501,106,121
====================================================================================================================================
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.
56 Nuveen Investments
| Statement of OPERATIONS Six Months Ended April 30, 2009 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 36,608,847 $ 23,985,870 $ 22,970,009
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 3,655,513 2,438,774 2,371,446
Preferred shares - auction fees 514,122 351,156 357,850
Preferred shares - dividend disbursing agent fees 29,753 29,753 39,671
Shareholders' servicing agent fees and expenses 62,846 20,247 31,123
Interest expense on floating rate obligations 522,428 346,980 301,415
Custodian's fees and expenses 100,123 69,064 65,087
Directors' fees and expenses 23,540 15,539 15,156
Professional fees 56,483 38,824 37,766
Shareholders' reports - printing and mailing expenses 140,642 86,290 98,063
Stock exchange listing fees 10,839 6,932 7,347
Investor relations expense 26,264 17,304 16,954
Other expenses 11,887 27,636 24,444
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 5,154,440 3,448,499 3,366,322
Custodian fee credit (44,758) (29,139) (29,041)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,109,682 3,419,360 3,337,281
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 31,499,165 20,566,510 19,632,728
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (1,916,490) (4,089,680) (2,308,649)
Forward swaps (12,560,000) -- --
Change in net unrealized appreciation (depreciation) of:
Investments 65,417,046 56,523,067 41,381,860
Forward swaps 3,082,340 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 54,022,896 52,433,387 39,073,211
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,250,453) (1,534,322) (1,587,057)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,250,453) (1,534,322) (1,587,057)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 83,271,608 $ 71,465,575 $ 57,118,882
====================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 57
| 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
4/30/09 10/31/08 4/30/09 10/31/08 4/30/09 10/31/08
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 31,499,165 $ 62,065,141 $ 20,566,510 $ 39,763,270 $ 19,632,728 $ 39,163,134
Net realized gain (loss) from:
Investments (1,916,490) (11,854,156) (4,089,680) (6,788,025) (2,308,649) (7,460,410)
Forward swaps (12,560,000) (526,200) -- (2,800,000) -- --
Change in net unrealized appreciation
(depreciation) of:
Investments 65,417,046 (167,308,446) 56,523,067 (117,638,815) 41,381,860 (107,428,586)
Forward swaps 3,082,340 (3,340,935) -- 791,405 -- --
Distributions to Preferred
Shareholders:
From net investment income (2,250,453) (18,128,385) (1,534,322) (11,883,074) (1,587,057) (12,256,484)
From accumulated net realized gains -- -- -- (408,199) -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 83,271,608 (139,092,981) 71,465,575 (98,963,438) 57,118,882 (87,982,346)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (23,217,899) (45,345,066) (14,563,978) (28,251,619) (13,878,988) (25,578,850)
From accumulated net realized gains -- -- -- (938,312) -- --
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (23,217,899) (45,345,066) (14,563,978) (29,189,931) (13,878,988) (25,578,850)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares repurchased -- -- (21,780) (60,864) -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions -- -- (21,780) (60,864) -- --
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 60,053,709 (184,438,047) 56,879,817 (128,214,233) 43,239,894 (113,561,196)
Net assets applicable to Common
shares at the beginning of period 756,782,002 941,220,049 477,602,620 605,816,853 457,866,227 571,427,423
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 816,835,711 $ 756,782,002 $ 534,482,437 $ 477,602,620 $ 501,106,121 $ 457,866,227
==================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 6,206,125 $ 175,312 $ 4,180,532 $ (287,678) $ 4,825,738 $ 659,055
==================================================================================================================================
See accompanying notes to financial statements.
58 Nuveen Investments
| Statement of CASH FLOWS Six Months Ended April 30, 2009 (Unaudited)
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 83,271,608 $ 71,465,575 $ 57,118,882
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 (25,761,736) (16,432,213) (10,474,458)
Proceeds from sales and maturities of investments 39,042,539 29,791,330 30,731,451
Proceeds from (Purchases of) short-term investments, net 5,847,872 (2,000,000) 6,000,000
Proceeds from (Payments for) terminated forward swaps (12,560,000) -- --
Amortization (Accretion) of premiums and discounts, net (1,247,630) (1,690,355) (718,545)
(Increase) Decrease in receivable for interest (373,456) (341,602) 105,984
(Increase) Decrease in receivable for investments sold (16,734) 275,076 35,908
(Increase) Decrease in other assets (135,964) (96,387) (45,664)
Increase (Decrease) in payable for investments purchased 590,205 -- --
Increase (Decrease) in payable for Preferred share dividends (86,057) (56,792) (61,839)
Increase (Decrease) in accrued management fees 4,302 10,639 (9,443)
Increase (Decrease) in accrued other liabilities (168,393) (150,647) (88,017)
Net realized (gain) loss from investments 1,916,490 4,089,680 2,308,649
Net realized (gain) loss from forward swaps 12,560,000 -- --
Change in net unrealized (appreciation) depreciation of investments (65,417,046) (56,523,067) (41,381,860)
Change in net unrealized (appreciation) depreciation of forward swaps (3,082,340) -- --
Net realized (gain) loss from paydowns 228 -- 193
Taxes paid on undistributed capital gains (129) -- (2,732)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 34,383,759 28,341,237 43,518,509
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in floating rate obligations 4,235,000 (6,675,000) (2,085,000)
Cash distributions paid to Common shareholders (23,091,413) (14,340,412) (13,630,102)
Cost of Common shares repurchased -- (21,780) --
Increase (Decrease) in Preferred shares, at liquidation value (14,800,000) (5,875,000) (31,150,000)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (33,656,413) (26,912,192) (46,865,102)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 727,346 1,429,045 (3,346,593)
Cash at the beginning of period 6,940,478 1,923,437 6,848,909
------------------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF PERIOD $ 7,667,824 $ 3,352,482 $ 3,502,316
====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid by Premium Income (NPI), Premium Income 2 (NPM) and Premium Income 4
(NPT) for interest was $522,428, $346,980 and $301,415, respectively.
See accompanying notes to financial statements.
Nuveen Investments 59
| 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,
management investment companies.
During the fiscal period, the Board of Directors/Trustees of each of the
following funds voted to recommend that each Nuveen Florida closed-end fund be
merged or reorganized into one of three existing Nuveen national municipal bond
closed-end funds, as follows:
o Nuveen Florida Investment Quality Municipal Fund (NQF) and Nuveen
Florida Quality Income Municipal Fund (NUF) into Premium Income 2,
Inc. (NPM);
o Nuveen Insured Florida Premium Income Municipal Fund (NFL) into
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO);
o Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) into
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA)
(collectively, the "Reorganizations"). The Board called a special meeting of
shareholders of each fund, originally scheduled in each case for May 15, 2009,
to vote on the Reorganizations. Those meetings were subsequently adjourned to
and reconvened in mid-June, at which time, shareholders of each of Florida
Investment Quality (NQF), Florida Quality Income (NUF), Insured Florida Premium
Income (NFL) and Insured Florida Tax-Free Advantage (NWF) approved its
respective Reorganization, with more than 80% of participating shares of each
fund voting in favor of the Reorganization. The consummation of the respective
Reorganizations remains subject to the approval of shareholders of Premium
Income 2 (NPM), Insured Opportunity (NIO) and Insured Tax-Free Advantage (NEA),
as the case may be, whose special shareholder meetings are now scheduled to be
reconvened on July 24, 2009. There can be no assurance that approval by those
funds' shareholders will be obtained.
On April 14, 2009, Premium Income (NPI) filed with the Securities and Exchange
Commission (SEC) a registration statement seeking to register municipal term
preferred shares (MTP), a new form of closed-end fund preferred shares. This
registration statement, if declared effective by the SEC, may enable the Fund to
issue to the public shares of MTP to refinance all or a portion of Premium
Income's (NPI) auction rate preferred shares. The issuance of MTP by Premium
Income (NPI) is subject to market conditions, the receipt of ratings, and on
final approval by Premium Income's (NPI) Board of Directors.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a 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 US
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. 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. When market price quotes are not readily available
(which is usually the case for municipal securities), the pricing service or, in
the absence of a pricing service for a particular investment or derivative
instrument, the Board of Directors of the Fund, or its designee, may establish
fair value using a wide variety of market data including yields or prices of
investments of comparable quality, type of issue, coupon, maturity and rating,
market quotes or indications of value from security dealers, evaluations of
anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates value.
60 Nuveen Investments
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, 2009, 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.
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.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. 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). Furthermore,
management of the Funds is 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 US
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. As
of April 30, 2009, 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 2,900 1,600 1,761
Series M2 1,526 -- --
Series T 2,900 2,401 1,602
Series T2 -- -- 1,063
Series W 2,900 1,600 1,345
Series W2 -- -- 423
Series TH 2,901 2,401 2,146
Series F 2,899 1,601 1,440
Series F2 -- 1,504 1,062
--------------------------------------------------------------------------------
Total 16,026 11,107 10,842
================================================================================
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.
Nuveen Investments 61
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
These developments have generally not affected the portfolio 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. As of April 30, 2009,
the aggregate amount of outstanding Preferred shares redeemed by each Fund is as
follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
---------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $ 124,350,000 $ 69,325,000 $ 67,350,000
===================================================================================================
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"). 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 "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (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
"(UB) - 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 the related interest paid to the holders of the short-term
floating rate certificates is recognized as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the six months ended April 30, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
62 Nuveen Investments
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") 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 issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At April 30, 2009, each Fund's maximum exposure to externally-deposited Recourse
Trusts is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ 16,635,000 $ 13,570,000 $ --
================================================================================
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, 2009, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Average floating rate obligations $ 94,928,006 $ 63,131,845 $56,761,923
Average annual interest rate
and fees 1.11% 1.11% 1.07%
================================================================================
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. Premium Income (NPI)
invested in forward interest rate swap transactions during the six months ended
April 30, 2009.
Market and Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (credit risk). Similar to credit risk, each Fund may be
exposed to counterparty risk, or the risk that an institution or other entity
with which the Fund has unsettled or open transactions will default. The
potential loss could exceed the value of the financial assets recorded on the
financial statements. Financial assets, which potentially expose each Fund to
credit risk, consist principally of cash due from counterparties on forward,
option and swap transactions. The extent of each Fund's exposure to credit and
counterparty risks in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage credit risk by entering into agreements only with
counterparties Nuveen Asset Management (the "Adviser"), a wholly owned
subsidiary of Nuveen believes have the financial resources to honor their
obligations and by having the Adviser monitor the financial stability of the
counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, 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 valuations fluctuate, either
up or down, by at least the predetermined threshold amount.
Nuveen Investments 63
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
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.
Use of Estimates
The preparation of financial statements in conformity with US 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. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.).
Level 3 - Significant unobservable inputs (including management's assumptions in
determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of April 30, 2009:
PREMIUM INCOME (NPI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments $ -- $ 1,295,060,125 $ -- $ 1,295,060,125
================================================================================
PREMIUM INCOME 2 (NPM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments $ -- $ 859,912,845 $ -- $ 859,912,845
================================================================================
PREMIUM INCOME 4 (NPT) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments $ -- $ 815,137,228 $ -- $ 815,137,228
================================================================================
64 Nuveen Investments
3. FUND SHARES
Common Shares
The Funds' Board of Directors approved an open-market share repurchase program
on July 10, 2007, for Premium Income 2 (NPM) and on July 30, 2008, for Premium
Income (NPI) and Premium Income 4 (NPT) under which each Fund may repurchase an
aggregate of up to approximately 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
4/30/09 10/31/08 4/30/09 10/31/08 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
Common shares repurchased -- -- (2,000) (4,800) -- --
------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- -- $ 10.87 $ 12.66 -- --
Discount per share repurchased -- -- 15.34% 12.81% -- --
==============================================================================================================================
Preferred Shares
Transactions in Preferred shares were as follows:
PREMIUM PREMIUM
INCOME (NPI) INCOME 2 (NPM)
----------------------------------------------- ---------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
4/30/09 10/31/08 4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M 107 $ 2,675,000 793 $ 19,825,000 34 $ 850,000 366 $ 9,150,000
Series M2 56 1,400,000 418 10,450,000 -- -- -- --
Series T 107 2,675,000 793 19,825,000 50 1,250,000 549 13,725,000
Series W 107 2,675,000 793 19,825,000 34 850,000 366 9,150,000
Series TH 107 2,675,000 792 19,800,000 51 1,275,000 548 13,700,000
Series F 108 2,700,000 793 19,825,000 34 850,000 365 9,125,000
Series F2 -- -- -- -- 32 800,000 344 8,600,000
------------------------------------------------------------------------------------------------------------------------------
Total 592 $ 14,800,000 4,382 $ 109,550,000 235 $ 5,875,000 2,538 $ 63,450,000
==============================================================================================================================
PREMIUM
INCOME 4 (NPT)
---------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
4/30/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M 204 $ 5,100,000 235 $ 5,875,000
Series T 185 4,625,000 213 5,325,000
Series T2 123 3,075,000 142 3,550,000
Series W 156 3,900,000 179 4,475,000
Series W2 41 1,025,000 56 1,400,000
Series TH 247 6,175,000 287 7,175,000
Series F 167 4,175,000 193 4,825,000
Series F2 123 3,075,000 143 3,575,000
------------------------------------------------------------------------------------------------------------------------------
Total 1,246 $ 31,150,000 1,448 $ 36,200,000
==============================================================================================================================
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended April 30, 2009, were as
follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------
Purchases $ 25,761,736 $ 16,432,213 $ 10,474,458
Sales and maturities 39,042,539 29,791,330 30,731,451
==============================================================================================================================
Nuveen Investments 65
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
5. 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.
At April 30, 2009, the cost of investments was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------
Cost of investments $ 1,246,119,486 $ 820,161,308 $ 788,479,212
============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2009, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 50,933,104 $ 34,773,083 $ 29,611,104
Depreciation (105,098,163) (57,687,105) (60,882,045)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (54,165,059) $ (22,914,022) $ (31,270,941)
============================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2008, 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 * $ 2,961,599 $ 1,706,806 $ 2,485,185
Undistributed net ordinary income ** 860 -- 18,210
Undistributed net long-term capital gains -- -- --
============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2008, paid on November 3, 2008.
** 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, 2008, 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 $ 63,352,587 $ 40,025,218 $37,511,796
Distributions from net ordinary income ** 80,967 234,668 224,617
Distributions from net long-term capital gains -- 1,257,894 --
============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
66 Nuveen Investments
At October 31, 2008, the Funds' last tax year end, the 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 PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------
Expiration:
October 31, 2010 $ -- $ -- $ 18,079,555
October 31, 2011 5,278,912 -- 24,792,603
October 31, 2013 -- -- 6,161,830
October 31, 2014 4,614,516 -- 806,337
October 31, 2016 11,536,998 9,320,812 7,113,122
------------------------------------------------------------------------------------------------------------
Total $ 21,430,426 $ 9,320,812 $ 56,953,447
============================================================================================================
Premium Income 4 (NPT) had $355,272 of its capital loss carryforward expire on
October 31, 2008.
6. 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 the
Adviser, 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 (1) 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 net assets managed as stated in the following
table. As of April 30, 2009, the complex-level fee rate was .1998%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET 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 daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets includes assets managed by the
Adviser that are attributable to each fund's use of financial leverage.
For these purposes, financial leverage includes the funds' use of
preferred stock and borrowings and investments in the residual interest
certificates (also called inverse floating rate securities) in tender
option bond (TOB) trusts, including the portion of assets held by the TOB
trust that has been effectively financed by the trust's issuance of
floating rate securities, subject to an agreement by the Adviser to limit
the amount of such assets for determining managed net assets in certain
circumstances.
Nuveen Investments 67
| Notes to FINANCIAL STATEMENTS (continued) (Unaudited)
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.
7. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS 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, 2009,
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.
Financial Accounting Standards Board Staff Position No. 157-4 (FSP No. 157-4)
On April 9, 2009, the Financial Accounting Standards Board issued FSP No. 157-4,
"Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are Not
Orderly." FSP No. 157-4 provides additional guidance for estimating fair value
in accordance with SFAS No. 157, "Fair Value Measurements," when the volume and
level of activity for the asset or liability have significantly decreased. FSP
No. 157-4 also requires additional disaggregation of the current SFAS No. 157
required disclosures. FSP No. 157-4 is effective for interim and annual
reporting periods ending after June 15, 2009, and shall be applied
prospectively. At this time, management is evaluating the implications of FSP
No. 157-4 and the impact it will have on the financial statement disclosures.
8. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2009, to shareholders of record on
May 15, 2009, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $ .0680 $ .0690 $ .0615
================================================================================
Auction Participation Fees
Effective May 1, 2009, auction participation fees for Nuveen Preferred shares
with respect to auctions that have failed have been reduced from 25 bps
(annualized) to 15 bps (annualized). All auction participants have signed new
agreements incorporating this change.
68 Nuveen Investments
| Financial HIGHLIGHTS (Unaudited)
Nuveen Investments 69
| Financial HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
----------------------------------------------------------------------------------------------------------
PREMIUM INCOME (NPI)
----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 11.86 $ .49 $ .86 $ (.04) $ -- $ 1.31
2008 14.76 .97 (2.88) (.28) -- (2.19)
2007 15.33 .98 (.55) (.29) -- .14
2006 14.85 1.00 .49 (.26) -- 1.23
2005 15.20 .98 (.26) (.16) -- .56
2004 14.87 1.01 .36 (.08) -- 1.29
PREMIUM INCOME 2 (NPM)
----------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 11.71 .50 1.29 (.04) -- 1.75
2008 14.85 .97 (3.10) (.29) (.01) (2.43)
2007 15.45 .97 (.55) (.30) (.01) .11
2006 15.07 .97 .49 (.25) (.01) 1.20
2005 15.53 .98 (.24) (.16) (.01) .57
2004 15.09 1.02 .48 (.08) -- 1.42
==========================================================================================================
Less Distributions
------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
------------------------------------------------------------------------------------
PREMIUM INCOME (NPI)
------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ (.36) $ -- $ (.36) $ 12.81 $ 12.17
2008 (.71) -- (.71) 11.86 10.93
2007 (.71) -- (.71) 14.76 13.30
2006 (.75) -- (.75) 15.33 14.13
2005 (.91) -- (.91) 14.85 13.87
2004 (.96) -- (.96) 15.20 14.30
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) (.36) -- (.36) 13.10 12.20
2008 (.69) (.02) (.71) 11.71 10.28
2007 (.69) (.02) (.71) 14.85 13.25
2006 (.76) (.06) (.82) 15.45 14.05
2005 (.93) (.10) (1.03) 15.07 13.97
2004 (.98) -- (.98) 15.53 14.57
====================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
-----------------------------------------------------------------------------------
PREMIUM INCOME (NPI)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 400,650 $ 25,000 $ 75,969
2008 415,450 25,000 70,540
2007 525,000 25,000 69,820
2006 525,000 25,000 71,552
2005 525,000 25,000 70,116
2004 525,000 25,000 71,169
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) 277,675 25,000 73,121
2008 283,550 25,000 67,109
2007 347,000 25,000 68,647
2006 347,000 25,000 70,748
2005 347,000 25,000 69,617
2004 347,000 25,000 70,964
===================================================================================
70 Nuveen Investments
Ratios/Supplemental Data
---------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Refund
------------------- --------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
-----------------------------------------------------------------------------------------------------------
PREMIUM INCOME (NPI)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31: 14.97% 11.27% $ 816,836 1.34%*** 1.20%*** 8.18%***
2009(b) (13.10) (15.39) 756,782 1.49 1.18 6.95
2008 (1.02) .93 941,220 1.56 1.17 6.52
2007 7.52 8.53 977,601 1.19 1.19 6.64
2006 3.37 3.71 947,446 1.19 1.19 6.44
2005 8.82 9.00 969,539 1.21 1.21 6.76
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31: 22.48 15.12 534,482 1.38*** 1.24*** 8.24***
2009(b) (17.95) (16.96) 477,603 1.56 1.22 6.93
2008 (.81) .71 605,817 1.62 1.19 6.44
2007 6.71 8.24 634,981 1.20 1.20 6.42
2006 2.98 3.71 619,282 1.20 1.20 6.40
2005 9.48 9.77 637,981 1.21 1.21 6.75
===========================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Refund**
-------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
---------------------------------------------------------------------------------------------
PREMIUM INCOME (NPI)
---------------------------------------------------------------------------------------------
Year Ended 10/31: 1.33%*** 1.19%*** 8.19%*** 2%
2009(b) 1.47 1.16 6.97 11
2008 1.54 1.16 6.54 14
2007 1.16 1.16 6.68 15
2006 1.18 1.18 6.45 20
2005 1.20 1.20 6.76 17
PREMIUM INCOME 2 (NPM)
---------------------------------------------------------------------------------------------
Year Ended 10/31: 1.37*** 1.23*** 8.25*** 2
2009(b) 1.54 1.20 6.95 8
2008 1.60 1.18 6.45 12
2007 1.20 1.20 6.43 15
2006 1.19 1.19 6.40 15
2005 1.21 1.21 6.76 23
=============================================================================================
* Total Return Based 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 Based 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, 2009.
See accompanying notes to financial statements.
Nuveen Investments 71
| Financial HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations
------------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
--------------------------------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
--------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 10.59 $ .45 $ .91 $ (.04) $ -- $ 1.32
2008 13.22 .91 (2.67) (.28) -- (2.04)
2007 13.69 .90 (.45) (.28) -- .17
2006 13.38 .90 .35 (.25) -- 1.00
2005 13.54 .91 (.10) (.16) -- .65
2004 13.15 .94 .40 (.08) -- 1.26
====================================================================================================================
Less Distributions
----------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
-------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
-------------------------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ (.32) $ -- $ (.32) $ 11.59 $ 10.61
2008 (.59) -- (.59) 10.59 9.24
2007 (.64) -- (.64) 13.22 11.77
2006 (.69) -- (.69) 13.69 12.80
2005 (.81) -- (.81) 13.38 12.31
2004 (.87) -- (.87) 13.54 12.74
===========================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
-------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
-------------------------------------------------------------------------
Year Ended 10/31:
2009(b) $ 271,050 $ 25,000 $ 71,219
2008 302,200 25,000 62,878
2007 338,400 25,000 67,215
2006 338,400 25,000 68,731
2005 338,400 25,000 67,739
2004 338,400 25,000 68,239
=========================================================================
72 Nuveen Investments
Ratios/Supplemental Data
----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Refund
--------------------- ------------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
-----------------------------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31: 18.58% 12.66% $ 501,106 1.43%*** 1.30%*** 8.33%***
2009(b) (17.19) (15.97) 457,866 1.62 1.25 7.19
2008 (3.30) 1.25 571,427 1.69 1.23 6.68
2007 9.89 7.72 591,941 1.25 1.25 6.70
2006 3.07 4.87 578,517 1.26 1.26 6.63
2005 8.98 9.90 585,284 1.30 1.30 7.10
=================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Refund**
--------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
-----------------------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
-----------------------------------------------------------------------------------------------------------
Year Ended 10/31: 1.42%*** 1.29%*** 8.34%*** 1%
2009(b) 1.61 1.24 7.21 10
2008 1.68 1.22 6.69 14
2007 1.23 1.23 6.71 9
2006 1.22 1.22 6.66 7
2005 1.29 1.29 7.10 6
===========================================================================================================
* Total Return Based 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 Based 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, 2009.
See accompanying notes to financial statements.
Nuveen Investments 73
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
74 Nuveen Investments
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.
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.
Nuveen Investments 75
GLOSSARY OF TERMS USED IN THIS REPORT
o 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.
o 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.
o 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.
o 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.
76 Nuveen Investments
o 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.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common 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 common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o 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.
o 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.
Nuveen Investments 77
NOTES
78 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
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
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, 2008, 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 SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem 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, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON PREFERRED
SHARES SHARES
FUND REPURCHASED REDEEMED
--------------------------------------------------------------------------------
NPI -- 592
NPM 2,000 235
NPT -- 1,246
--------------------------------------------------------------------------------
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 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.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $115 billion of
assets on March 31, 2009.
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/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
It's not what you earn,
it's what you keep.(R)
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ESA-E-0409D
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 of Directors or Trustees
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 8, 2009
-------------------------------------------------------------------
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 8, 2009
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 8, 2009
-------------------------------------------------------------------