UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05570
---------------------
Nuveen Premium Income Municipal Fund, Inc.
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: April 30, 2006
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT April 30, 2006
Nuveen Investments
Municipal Exchange-Traded
Closed-End Funds
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND, INC.
NPI
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND 2, INC.
NPM
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND 4, INC.
NPT
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six-month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Managers' Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
"PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK
THAT COMES WITH INVESTING."
Municipal bonds can be an important building block in a well balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a recognized way
to try to reduce some of the risk that comes with investing. I encourage you to
contact your personal financial advisor who may help explain this important
investment strategy.
Nuveen Investments is pleased to offer you choices when it comes to receiving
your fund reports. In addition to mailed print copies, you can also sign up to
receive future Fund reports and other Fund information by e-mail and the
Internet. Not only will you receive the information faster, but this also may
help lower your Fund's expenses. The inside front cover of this report contains
information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 12, 2006
Nuveen Investments Municipal Exchange-Traded Closed-End Funds
NPI, NPM, NPT
Portfolio Managers'
COMMENTS
Portfolio managers Dan Solender and Tom Spalding review key investment
strategies and the six-month performance of these three Funds. With 19 years of
investment experience, including 10 at Nuveen, Dan assumed portfolio management
responsibility for NPI and NPM in 2003. A 29-year veteran of Nuveen, Tom has
managed NPT since 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX MONTHS ENDED
APRIL 30, 2006?
During this reporting period, we saw a general increase in interest rates,
although rates at the longer end of the yield curve remained more stable than
those at the short end throughout much of the period. Between November 1, 2005
and April 30, 2006, the Federal Reserve implemented four increases of 0.25% each
in the fed funds rate, raising this short-term target by 100 basis points--from
3.75% to 4.75%. (On May 10, 2006, the fed funds rate was increased by another 25
basis points to 5%, marking the Fed's 16th consecutive quarter-point hike since
June 2004.) In contrast, the yield on the benchmark 10-year U.S. Treasury note
ended April 2006 at 5.06%, up from 4.55% six months earlier, while the yield on
the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term
municipal market rates, was 5.22% at the end of April 2006, an increase of just
two basis points from the beginning of November 2005. As interest rates
increased, bond valuations generally declined, and the yield curve flattened as
short-term rates approached the levels of longer-term rates.
In this environment, one of our key strategies continued to be careful duration1
management, part of which included efforts to more closely align the duration
and yield curve positioning of these Funds. In general, our purchase activity
during this period targeted attractively priced bonds maturing in 15 to 20
years. We believed that bonds in this part of the curve generally offered better
value and reward opportunities more commensurate with their risk levels. As the
yield curve continued to flatten, we started to see more opportunities to add
value at the longer end of the curve, and we began to move our purchases into
the 20-year and longer range. The longer durations of the bonds we added to all
of the Funds' portfolios enabled us to maintain the Funds' durations within our
preferred strategic range and contributed to their performance for the period.
In NPI and NPM, we were also selectively selling holdings with shorter durations
and reinvesting further out on the yield curve, which helped to improve the
Funds' overall call protection. As yields rose during this period, we also found
some opportunities to sell a few of NPI's and NPM's holdings that had been
purchased when yields were lower. We then replaced these holdings with similar,
newer credits that yielded comparatively more.
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.
4
This process allowed us to maintain these Funds' current portfolio
characteristics while strengthening their income streams. It also enabled us to
realize some capital losses that can be used to offset any capital gains
realized in 2006 or carried forward to offset future realized gains.
In looking for potential purchase candidates, we kept an opportunistic eye
toward all types of issuance that we believed could add value to the Funds'
portfolios and keep the Funds well diversified geographically. Overall,
portfolio activity was relatively light during this period. This was due in part
to the fact that these Funds entered the reporting period fully invested and
with routine call exposure. Another factor was the 5.5% decline in municipal
supply during this six-month period compared with the same period 12 months
earlier (November 2004-April 2005). The decrease in supply was even more evident
during the first four months of 2006, when new issuance dropped almost 25% from
the levels of January-April 2005. At the same time, demand for municipal bonds
continued to be diverse and broad-based, with retail investors, property and
casualty insurance companies, and third-party investors--such as hedge funds and
arbitrage accounts--all participating in the market.
In general, much of the new supply was highly rated and/or insured, and the
majority of our new purchases during this time were higher-rated credits. While
we continued to emphasize maintaining the Funds' weightings of bonds rated BBB
or lower and nonrated bonds, tighter supply meant fewer opportunities to find
additional lower-rated issues that we believed represented value for
shareholders. In NPI and NPM, however, we did continue to make some progress in
adding to the Funds' weightings of bonds rated BBB and lower, purchasing
higher-yielding credits that could potentially help to support the Funds' income
streams. In NPT, one of the few lower credit quality areas where we found
opportunities to add value was the tobacco sector, and we purchased selected
tobacco issues to maintain NPT's exposure to this sector.
Given the tight spreads in all parts of the municipal market, NPI and NPM also
continued to purchase paper issued in specialty states such as California and
New York when we found attractively priced opportunities. Because of the
relatively higher tax levels in many of these specialty states, municipal bonds
issued in these states are generally in great demand by retail investors, which
helps to support their value. They also provide additional liquidity, making it
easier for us to execute trades as part of implementing our strategies.
5
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant benchmark and peer group
information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 4/30/06
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NPI 2.24% 2.57% 6.47% 6.31%
--------------------------------------------------------------------------------
NPM 1.86% 2.38% 6.68% 6.79%
--------------------------------------------------------------------------------
NPT 1.88% 2.60% 5.61% 5.83%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index2 1.56% 2.16% 5.40% 5.90%
--------------------------------------------------------------------------------
Lipper General
Leveraged
Municipal Debt
Funds Average3 2.60% 3.86% 7.34% 6.68%
--------------------------------------------------------------------------------
* Six-month returns are cumulative; returns for one year, five years, and ten
years 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.
For the six months ended April 30, 2006, the cumulative returns on net asset
value (NAV) for all three of the Funds in this report exceeded the return on
their Lehman Brothers municipal benchmark. Each of the Funds underperformed the
average return for their Lipper peer group for this period.
One of the factors that, on balance, benefited the six-month performance of
these Funds relative to that of the unleveraged Lehman Brothers Municipal Bond
Index was the Funds' use of financial leverage. While leveraging can add
volatility to a Fund's NAV and share price, this strategy can also provide
opportunities for additional income and total return for common shareholders.
The benefits of leveraging are tied in part to the short-term rates leveraged
Funds pay their MuniPreferred(R) shareholders. During periods of low short-term
rates, leveraged Funds generally pay lower dividends to their MuniPreferred
shareholders, which can leave more earnings to support common share dividends.
Conversely, when short-term interest rates rise, as they did during this
reporting period, the Funds' borrowing costs also rise, which can impact the
Funds' income streams and total returns. However, as long as short-term yields
are lower than those of the long-term bonds in the Funds' portfolios, the income
received by the common shareholders of leveraged Funds will be higher than it
would be if the Funds were unleveraged. Despite the impact of rising interest
rates on bond valuations, the extra income, or yield advantage, resulting from
leveraging during this period remained strong enough to help the Funds' total
returns outperform the return on the Lehman index for this six months. Over the
long term, we believe the use of financial leverage will continue to work to the
benefit of the
2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
3 The Lipper General Leveraged Municipal Debt Funds category average is
calculated using the returns of all closed-end exchange-traded funds in
this category for each period as follows: 6 months, 56; 1 year, 56; 5
years, 45; and 10 years, 39. Fund and Lipper returns assume reinvestment of
dividends.
6
Funds, as demonstrated by the five-year and ten-year return performance--both
absolute and relative--of the Funds in this report.
During this reporting period, positive contributors to the Funds' returns
included yield curve and duration positioning; exposure to lower-rated credits,
including airline bonds; and pre-refunding activity.
As the yield curve continued to flatten over the course of this period, yield
curve and duration positioning played important roles in the Funds'
performances. On the whole, shorter maturity bonds were the most impacted by
recent changes in the yield curve. As a result, these bonds generally
underperformed both intermediate and long bonds, with credits having the longest
durations posting the best returns for this period. Yield curve positioning or,
more specifically, greater exposure to those parts of the yield curve that
performed well helped the performances of these Funds during this period.
However, the Funds' holdings of bonds in the shortest part of the curve (with
maturities of six years or less) hampered their performances to a small degree.
With bonds rated BBB or lower and nonrated bonds generally outperforming other
credit quality sectors during this period, all of these Funds benefited from
their allocations of lower-quality credits. The performance of this sector was
largely the result of investor demand for the higher yields typically associated
with lower-quality bonds, which drove up their value and kept credit spreads
narrow. As of April 30, 2006, allocations of bonds rated BBB and lower and
nonrated bonds accounted for 12% of NPI, 14% of NPM and 11% of NPT.
Among the lower-rated holdings making contributions to the Funds' cumulative
returns for this period were health care bonds (including hospitals) and tobacco
credits backed by the 1998 master tobacco settlement agreement. In addition, NPI
had exposure to bonds issued for United and American airlines, which posted
strong performance for the period amid some signs of improvement in the airline
industry.
We also continued to see a number of advance refundings4 during this period,
which benefited the Funds through price appreciation and enhanced credit
quality. However, as the yield curve flattened, more lower coupon bonds were
being pre-refunded, which meant that, in general, the positive impact from
refinancings was less than in the previous reporting period.
4 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
7
While advance refundings generally enhanced total return performance for this
six-month period, the rising interest rate environment--especially at the short
end of the yield curve--meant that the Funds' holdings of older, previously
pre-refunded bonds tended to underperform the general municipal market, due
primarily to the shorter effective maturities of these bonds. Because these
pre-refunded bonds tended to produce strong income, we continued to hold them in
our portfolios. During this period, NPT also held a few multifamily housing and
project financing bonds that did not perform as well as expected due to credit
deterioration. As of April 30, 2006, these bonds had been sold out of the
portfolio.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
APRIL 30, 2006?
We continued to believe that maintaining strong credit quality was an important
requirement. As of April 30, 2006, all three of these Funds continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA of 73% in NPI and NPM and 79% in NPT.
As of April 30, 2006, potential call exposure for the period May 2006 through
the end of 2007 totaled 10% in NPI, 9% in NPM and 16% in NPT. In NPT in
particular, we continued to watch the market for opportunities to reinvest
proceeds from bonds with shorter call dates into bonds with maturities of at
least 15 years. The number of actual bond calls in all of these Funds depends
largely on future market interest rates.
8
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. During
periods of rising short-term interest rates, as was the case during this
reporting period, the Funds' borrowing costs also rise, reducing the extent of
the benefits of leveraging. This resulted in two monthly dividend reductions in
NPI, NPM, and NPT over the six-month period ended April 30, 2006.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and/or net ordinary income
distributions at the end of December 2005, as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NPI -- $0.0013
--------------------------------------------------------------------------------
NPM $0.0610 $0.0006
--------------------------------------------------------------------------------
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, 2006, all of the
Funds in this report had positive UNII balances for financial statement purposes
and positive UNII balances, based upon our best estimate, for tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
discounts to their NAVs as shown in the accompanying chart:
4/30/06 6-MONTH
DISCOUNT AVERAGE DISCOUNT
--------------------------------------------------------------------------------
NPI -8.45% -7.23%
--------------------------------------------------------------------------------
NPM -7.99% -8.34%
--------------------------------------------------------------------------------
NPT -8.29% -7.47%
--------------------------------------------------------------------------------
9
Nuveen Premium Income Municipal Fund, Inc.
NPI
Performance
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 13%
A 15%
BBB 9%
BB or Lower 1%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.077
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.0695
Oct 0.0695
Nov 0.0695
Dec 0.066
Jan 0.066
Feb 0.066
Mar 0.0625
Apr 0.0625
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 14.34
14.34
14.38
14.4
14.23
14.32
14.38
14.22
14.18
14.24
14.25
14.32
14.38
14.39
14.35
14.32
14.34
14.35
14.33
14.39
14.41
14.48
14.49
14.49
14.48
14.52
14.52
14.52
14.48
14.3
14.3
14.29
14.39
14.35
14.29
14.31
14.32
14.3
14.33
14.31
14.34
14.36
14.38
14.35
14.34
14.39
14.42
14.46
14.48
14.47
14.35
14.35
14.38
14.28
14.32
14.33
14.26
14.25
14.29
14.33
14.45
14.53
14.54
14.54
14.53
14.48
14.47
14.47
14.42
14.31
14.28
14.39
14.35
14.39
14.39
14.34
14.36
14.4
14.49
14.51
14.46
14.49
14.51
14.5
14.53
14.57
14.58
14.68
14.7
14.69
14.7
14.65
14.64
14.66
14.61
14.48
14.33
14.33
14.29
14.23
14.24
14.09
14.04
13.95
13.92
14.03
13.96
14
14.01
14.07
14.07
14.02
14.01
13.97
14.02
13.79
13.6
13.53
13.45
13.4
13.56
13.63
13.79
13.88
13.82
13.72
13.8
13.8
13.87
13.87
13.95
13.9
13.92
13.92
13.9
13.9
13.68
13.66
13.54
13.48
13.57
13.5
13.47
13.51
13.5
13.47
13.48
13.55
13.57
13.69
13.74
13.8
13.84
13.9
13.77
13.83
13.88
13.72
13.44
13.39
13.41
13.36
13.37
13.38
13.36
13.45
13.55
13.76
13.9
13.96
13.99
13.99
14.02
14.1
14.17
14.34
14.42
14.37
14.22
14.24
14.24
14.19
14.16
14.21
14.28
14.28
14.25
14.24
14.25
14.28
14.25
14.29
14.2
14.16
14.1
14
13.99
13.98
14.02
14.05
14
13.97
13.93
13.94
14.02
14.04
14.14
14.24
14.25
14.23
14.3
14.25
14.18
14.21
14.1
14.04
14.11
14.15
14.05
14
13.97
13.97
14.09
14.1
14.06
14.05
14.05
14.04
14.07
14.07
14.08
14.15
14.1
14.14
14.2
14.2
14.06
14
13.92
13.71
13.57
13.57
13.47
13.4
13.42
13.44
13.39
13.4
13.48
13.43
13.45
13.47
13.54
4/30/06 13.54
FUND SNAPSHOT
------------------------------------
Common Share Price $13.54
------------------------------------
Common Share
Net Asset Value $14.79
------------------------------------
Premium/(Discount) to NAV -8.45%
------------------------------------
Market Yield 5.54%
------------------------------------
Taxable-Equivalent Yield1 7.69%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $943,576
------------------------------------
Average Effective Maturity
on Securities (Years) 16.81
------------------------------------
Leverage-Adjusted Duration 9.32
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/18/88)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 0.39% 2.24%
------------------------------------
1-Year 0.78% 2.57%
------------------------------------
5-Year 6.91% 6.47%
------------------------------------
10-Year 6.35% 6.31%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 13.3%
------------------------------------
New York 13.2%
------------------------------------
Texas 8.2%
------------------------------------
New Jersey 5.8%
------------------------------------
Illinois 5.8%
------------------------------------
South Carolina 4.4%
------------------------------------
Washington 4.1%
------------------------------------
Minnesota 3.6%
------------------------------------
Pennsylvania 3.5%
------------------------------------
Colorado 3.3%
------------------------------------
District of Columbia 2.9%
------------------------------------
Nevada 2.9%
------------------------------------
Michigan 2.5%
------------------------------------
Massachusetts 2.2%
------------------------------------
Florida 2.0%
------------------------------------
Wisconsin 1.9%
------------------------------------
Missouri 1.6%
------------------------------------
Other 18.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 16.5%
------------------------------------
Tax Obligation/General 16.0%
------------------------------------
U.S. Guaranteed 13.5%
------------------------------------
Health Care 12.5%
------------------------------------
Transportation 12.0%
------------------------------------
Education and Civic
Organizations 7.9%
------------------------------------
Utilities 7.7%
------------------------------------
Other 13.9%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a net ordinary income distribution in December
2005 of $.0013 per share.
10
Nuveen Premium Income Municipal Fund 2, Inc.
NPM
Performance
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 62%
AA 11%
A 13%
BBB 10%
N/R 4%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.0785
Jun 0.0745
Jul 0.0745
Aug 0.0745
Sep 0.071
Oct 0.071
Nov 0.071
Dec 0.0675
Jan 0.0675
Feb 0.0675
Mar 0.064
Apr 0.064
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 14.08
14.18
14.2
14.29
14.2
14.28
14.38
14.29
14.35
14.28
14.29
14.32
14.41
14.39
14.38
14.4
14.55
14.48
14.46
14.47
14.5
14.58
14.58
14.53
14.47
14.52
14.46
14.49
14.49
14.33
14.32
14.37
14.43
14.42
14.42
14.49
14.55
14.57
14.66
14.74
14.67
14.7
14.77
14.75
14.75
14.79
14.81
14.85
14.91
14.92
14.78
14.77
14.72
14.6
14.65
14.68
14.62
14.64
14.55
14.64
14.68
14.72
14.7
14.7
14.7
14.71
14.7
14.65
14.56
14.49
14.5
14.53
14.46
14.45
14.4
14.52
14.51
14.49
14.49
14.5
14.55
14.59
14.59
14.58
14.62
14.64
14.66
14.74
14.75
14.74
14.72
14.81
14.9
14.89
14.85
14.82
14.75
14.72
14.69
14.66
14.67
14.6
14.54
14.39
14.4
14.55
14.5
14.53
14.55
14.53
14.54
14.52
14.47
14.4
14.49
14.25
14.12
14.06
14.14
14.01
14.02
13.98
14.05
14.02
14.04
13.85
13.89
13.88
13.97
14.02
13.98
13.95
13.92
13.98
13.98
13.96
13.76
13.7
13.64
13.58
13.64
13.69
13.63
13.67
13.63
13.59
13.66
13.73
13.7
13.6
13.67
13.66
13.68
13.72
13.7
13.68
13.62
13.62
13.42
13.42
13.46
13.45
13.41
13.35
13.35
13.38
13.39
13.48
13.57
13.6
13.76
13.76
13.79
13.85
13.88
14.06
14.29
14.17
14.14
14.16
14.18
14.05
14.03
13.97
14.01
14.06
14.18
14.22
14.06
14.12
14.13
14.1
14.07
14.1
14.08
14.09
14.14
14.17
14.14
14.12
14.11
14.06
14.08
14.06
14.15
14.16
14.19
14.17
14.22
14.22
14.34
14.35
14.35
14.26
14.19
14.05
14.02
14.05
14.02
13.97
13.96
14.01
14.16
14.13
14.11
14.07
14.1
14.05
14.06
14.06
13.98
13.94
13.91
13.93
13.89
13.95
13.98
13.87
13.82
13.77
13.63
13.61
13.6
13.56
13.59
13.63
13.52
13.58
13.63
13.63
13.56
13.59
13.7
4/30/06 13.7
FUND SNAPSHOT
------------------------------------
Common Share Price $13.70
------------------------------------
Common Share
Net Asset Value $14.89
------------------------------------
Premium/(Discount) to NAV -7.99%
------------------------------------
Market Yield 5.61%
------------------------------------
Taxable-Equivalent Yield1 7.79%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $612,080
------------------------------------
Average Effective Maturity
on Securities (Years) 16.12
------------------------------------
Leverage-Adjusted Duration 9.78
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/23/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.39% 1.86%
------------------------------------
1-Year 3.92% 2.38%
------------------------------------
5-Year 6.42% 6.68%
------------------------------------
10-Year 6.76% 6.79%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
New York 11.4%
------------------------------------
California 9.9%
------------------------------------
Illinois 9.2%
------------------------------------
Texas 8.1%
------------------------------------
South Carolina 6.4%
------------------------------------
Washington 6.1%
------------------------------------
Massachusetts 4.4%
------------------------------------
Missouri 4.3%
------------------------------------
New Jersey 2.9%
------------------------------------
Minnesota 2.8%
------------------------------------
Ohio 2.7%
------------------------------------
Nevada 2.3%
------------------------------------
Louisiana 2.2%
------------------------------------
Michigan 2.2%
------------------------------------
Iowa 2.2%
------------------------------------
Florida 2.0%
------------------------------------
Rhode Island 1.8%
------------------------------------
Alabama 1.8%
------------------------------------
Other 17.3%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 17.9%
------------------------------------
Tax Obligation/Limited 15.9%
------------------------------------
U.S. Guaranteed 14.4%
------------------------------------
Health Care 13.5%
------------------------------------
Utilities 10.6%
------------------------------------
Transportation 7.2%
------------------------------------
Education and Civic
Organizations 6.5%
------------------------------------
Other 14.0%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0616 per share.
11
Nuveen Premium Income Municipal Fund 4, Inc.
NPT
Performance
OVERVIEW As of April 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 71%
AA 8%
A 10%
BBB 6%
BB or Lower 3%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.068
Jun 0.0645
Jul 0.0645
Aug 0.0645
Sep 0.0645
Oct 0.0645
Nov 0.0645
Dec 0.061
Jan 0.061
Feb 0.061
Mar 0.0575
Apr 0.0575
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/01/05 12.36
12.37
12.35
12.37
12.36
12.4
12.35
12.33
12.3
12.3
12.35
12.37
12.47
12.48
12.44
12.52
12.53
12.5
12.48
12.5
12.57
12.57
12.64
12.62
12.62
12.66
12.62
12.57
12.6
12.6
12.51
12.49
12.56
12.53
12.5
12.45
12.51
12.51
12.54
12.61
12.57
12.63
12.62
12.61
12.62
12.63
12.71
12.78
12.74
12.75
12.65
12.67
12.74
12.6
12.6
12.61
12.61
12.67
12.68
12.7
12.75
12.89
12.86
12.86
12.79
12.85
12.83
12.8
12.73
12.65
12.7
12.8
12.7
12.7
12.7
12.66
12.67
12.68
12.69
12.66
12.65
12.66
12.66
12.68
12.7
12.71
12.75
12.88
13
12.98
12.95
12.98
12.99
13
12.91
12.83
12.77
12.76
12.7
12.69
12.71
12.7
12.7
12.69
12.6
12.7
12.75
12.8
12.79
12.79
12.8
12.73
12.64
12.57
12.56
12.45
12.23
12.2
12.25
12.12
12.2
12.22
12.3
12.35
12.31
12.28
12.34
12.32
12.31
12.35
12.32
12.31
12.33
12.41
12.44
12.48
12.23
12.23
12.19
12.17
12.23
12.19
12.22
12.22
12.24
12.2
12.25
12.35
12.33
12.38
12.38
12.46
12.49
12.45
12.39
12.44
12.38
12.4
12.22
12.05
12
12.01
11.89
11.89
11.9
12
12.01
12.04
12.15
12.29
12.31
12.31
12.22
12.35
12.44
12.47
12.52
12.6
12.42
12.53
12.48
12.47
12.45
12.54
12.54
12.59
12.6
12.56
12.6
12.63
12.58
12.6
12.61
12.52
12.55
12.57
12.56
12.56
12.6
12.61
12.46
12.39
12.47
12.42
12.47
12.45
12.57
12.63
12.63
12.65
12.77
12.73
12.72
12.65
12.57
12.58
12.68
12.67
12.71
12.63
12.65
12.67
12.77
12.76
12.65
12.68
12.75
12.8
12.75
12.75
12.77
12.82
12.77
12.79
12.82
12.83
12.68
12.64
12.48
12.43
12.29
12.25
12.18
12.1
12.13
12.12
12.08
12.06
12.12
12.13
12.14
12.12
12.17
4/30/06 12.17
FUND SNAPSHOT
------------------------------------
Common Share Price $12.17
------------------------------------
Common Share
Net Asset Value $13.27
------------------------------------
Premium/(Discount) to NAV -8.29%
------------------------------------
Market Yield 5.67%
------------------------------------
Taxable-Equivalent Yield1 7.88%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $573,783
------------------------------------
Average Effective Maturity
on Securities (Years) 16.14
------------------------------------
Leverage-Adjusted Duration 8.57
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/19/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 1.76% 1.88%
------------------------------------
1-Year 5.09% 2.60%
------------------------------------
5-Year 5.25% 5.61%
------------------------------------
10-Year 6.41% 5.83%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Texas 11.8%
------------------------------------
Illinois 9.0%
------------------------------------
Washington 6.5%
------------------------------------
New York 6.1%
------------------------------------
Indiana 5.8%
------------------------------------
California 5.4%
------------------------------------
Michigan 4.1%
------------------------------------
Colorado 4.0%
------------------------------------
Utah 4.0%
------------------------------------
Florida 3.7%
------------------------------------
District of Columbia 3.6%
------------------------------------
Nevada 2.9%
------------------------------------
South Carolina 2.7%
------------------------------------
New Jersey 2.7%
------------------------------------
Rhode Island 2.3%
------------------------------------
Alabama 2.2%
------------------------------------
North Carolina 2.0%
------------------------------------
Puerto Rico 2.0%
------------------------------------
Other 19.2%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 18.2%
------------------------------------
Tax Obligation/General 14.3%
------------------------------------
Tax Obligation/Limited 13.7%
------------------------------------
Utilities 11.8%
------------------------------------
Health Care 11.2%
------------------------------------
Transportation 8.0%
------------------------------------
Consumer Staples 5.7%
------------------------------------
Housing/Multifamily 5.3%
------------------------------------
Water and Sewer 5.2%
------------------------------------
Other 6.6%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
12
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 4,305,150
Bonds, Series 2000, 6.125%, 12/01/16
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
6,000 5.250%, 11/15/20 11/15 at 100.00 Baa1 6,128,580
1,300 5.000%, 11/15/30 11/15 at 100.00 Baa1 1,268,540
2,190 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 2,192,278
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+ 5,203,330
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) 1,076,220
Alabama, Revenue Bonds, Baptist Medical Center,
Series 2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
19,560 Total Alabama 20,174,098
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0% (0.7% OF TOTAL INVESTMENTS)
Anchorage, Alaska, General Obligation Refunding Bonds,
Series 2003A:
2,000 5.250%, 9/01/17 - FGIC Insured 9/13 at 100.00 AAA 2,133,340
2,035 5.250%, 9/01/18 - FGIC Insured 9/13 at 100.00 AAA 2,169,595
5,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 BBB 5,263,750
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
------------------------------------------------------------------------------------------------------------------------------------
9,035 Total Alaska 9,566,685
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.1% (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 513,050
660 5.250%, 12/01/25 12/15 at 100.00 BBB 677,226
4,820 Pima County Industrial Development Authority, Arizona, Lease 7/06 at 101.00 AAA 4,850,173
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
4,130 University of Arizona, Certificates of Participation, 6/12 at 100.00 AAA 4,331,709
Series 2002B, 5.125%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,110 Total Arizona 10,372,158
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
480 Paragould, Arkansas, Water, Sewer and Electric Revenue 12/10 at 100.00 AAA 518,083
Bonds, Series 2000, 5.650%, 12/01/25 (Pre-refunded 12/01/10) -
AMBAC Insured
5,245 University of Arkansas, Fayetteville, Athletic Facilities Revenue 9/09 at 100.00 Aaa 5,411,424
Bonds, Razorback Stadium, Series 1999, 5.050%, 9/15/20 -
AMBAC Insured
2,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 1,993,820
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,725 Total Arkansas 7,923,327
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.6% (13.3% OF TOTAL INVESTMENTS)
1,275 Acalanes Union High School District, Contra Costa County, 8/15 at 100.00 AAA 1,330,106
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - FGIC Insured
9,200 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 4,628,152
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/20 - AMBAC Insured
4,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 4,512,600
Revenue Bonds, Series 2002A, 6.000%, 5/01/15
(Pre-refunded 5/01/12)
13
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa $ 2,069,060
Occidental College, Series 2005A, 5.000%, 10/01/30 -
MBIA Insured
7,200 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 7,262,424
University of Southern California, Series 2005, 4.750%, 10/01/28
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 3,722,126
7,000 5.000%, 3/01/33 3/13 at 100.00 A 7,029,750
5,500 California Health Facilities Financing Authority, Health 7/26 at 100.00 A- 5,686,395
Facility Revenue Bonds, Catholic Healthcare West,
Series 2004I, 4.950%, 7/01/26 (Mandatory put 7/01/14)
9,560 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 9,671,948
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call A- 12,040,185
Department of Corrections, Series 1993E, 5.500%, 6/01/15
23,725 California State Public Works Board, Lease Revenue Refunding 6/06 at 100.00 Aa2 23,738,285
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/21
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+ 1,667,946
2,730 5.000%, 7/01/39 7/15 at 100.00 BBB+ 2,670,950
4,000 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA- 4,329,560
5.250%, 7/01/14
California, General Obligation Bonds, Series 2004:
2,000 5.125%, 2/01/25 2/14 at 100.00 A 2,073,660
10,000 5.125%, 2/01/26 2/14 at 100.00 A 10,355,100
7,000 California, General Obligation Bonds, Series 2005, 8/15 at 100.00 A 7,254,100
5.000%, 8/01/22
3,575 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 3,750,676
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,350 Grossmont-Cuyamaca Community College District, California, 8/15 at 100.00 AAA 2,446,138
General Obligation Bonds, Series 2005B, 5.000%, 8/01/26 -
FGIC Insured
5,120 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 5,341,286
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/24 - FSA Insured
5,470 Los Angeles Harbors Department, California, Revenue Bonds, 8/16 at 102.00 AAA 5,701,545
Series 2006A, 5.000%, 8/01/22 (WI/DD, Settling 5/04/06) -
FGIC Insured (Alternative Minimum Tax)
6,865 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 7,149,074
Obligation Bonds, Series 2005A-1, 5.000%, 7/01/25 -
FGIC Insured
1,095 Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,460,675
Series 1983A, 10.750%, 2/01/16 (ETM)
19,720 Pomona, California, GNMA/FNMA Collateralized Securities No Opt. Call AAA 25,213,399
Program Single Family Mortgage Revenue Bonds, Series 1990A,
7.600%, 5/01/23 (ETM)
5,000 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 5,380,550
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
2,000 Redwood City School District, San Mateo County, California, 7/12 at 100.00 AAA 2,049,520
General Obligation Bonds, Series 2002, 5.000%, 7/15/27 -
FGIC Insured
3,885 Sacramento City Unified School District, Sacramento County, 7/15 at 100.00 Aaa 4,063,671
California, General Obligation Bonds, Series 2005,
5.000%, 7/01/22 - MBIA Insured
3,700 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AAA 3,851,330
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 401,796
445 5.000%, 9/01/23 9/15 at 102.00 Baa3 443,794
3,500 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA 3,594,640
Series 2004B, 5.000%, 9/01/29 - MBIA Insured
4,700 San Diego Unified School District, San Diego County, 7/15 at 100.00 AAA 4,865,816
California, General Obligation Bonds, Series 2005G,
5.000%, 7/01/29 - FSA Insured
14
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
$ 10,000 0.000%, 1/15/31 - MBIA Insured No Opt. Call AAA $ 2,950,800
24,025 0.000%, 1/15/36 - MBIA Insured No Opt. Call AAA 5,411,151
------------------------------------------------------------------------------------------------------------------------------------
213,775 Total California 194,118,208
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.1% (3.3% OF TOTAL INVESTMENTS)
2,500 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AAA 2,614,450
Sewerage Revenue Bonds, Series 2004, 5.000%, 12/01/21 -
FGIC Insured
690 Colorado Educational and Cultural Facilities Authority, Charter 9/15 at 100.00 AAA 727,370
School Revenue Bonds, Bromley School, Series 2005,
5.125%, 9/15/20 - XLCA Insured
2,125 Colorado Health Facilities Authority, Revenue Bonds, Evangelical 6/16 at 100.00 A- 2,109,084
Lutheran Good Samaritan Society, Series 2005, 5.000%, 6/01/29
1,000 Colorado Health Facilities Authority, Revenue Bonds, Parkview 9/14 at 100.00 A3 1,001,460
Medical Center, Series 2004, 5.000%, 9/01/25
400 Colorado Housing Finance Authority, Single Family Program 5/07 at 105.00 Aa2 410,684
Senior Bonds, Series 1997B-2, 7.000%, 5/01/26 (Alternative
Minimum Tax)
290 Colorado Housing Finance Authority, Single Family Program 11/07 at 105.00 Aa2 294,089
Senior Bonds, Series 1997C-2, 6.875%, 11/01/28 (Alternative
Minimum Tax)
735 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 AA 758,101
Senior Bonds, Series 2000B-2, 7.250%, 10/01/31 (Alternative
Minimum Tax)
9,450 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 10,679,445
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
8,315 Denver City and County, Colorado, Special Facilities Airport 10/06 at 100.00 N/R 8,481,300
Revenue Bonds, United Air Lines Corporation, Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax) (5)
19,810 Denver, Colorado, Excise Tax Revenue Bonds, Convention 3/11 at 100.00 AAA 21,319,917
Center, Series 2001A, 5.500%, 9/01/18 (Pre-refunded 3/01/11) -
FSA Insured
98 El Paso County, Colorado, FNMA Mortgage-Backed Single No Opt. Call Aaa 98,749
Family Revenue Refunding Bonds, Series 1992A-2,
8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
45,413 Total Colorado 48,494,649
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,930 Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,147,801
5.500%, 12/15/16
2,310 Greater New Haven Water Pollution Control Authority, 11/15 at 100.00 AAA 2,399,697
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A, 5.000%, 11/15/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,240 Total Connecticut 4,547,498
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.5% (2.9% OF TOTAL INVESTMENTS)
8,620 District of Columbia Housing Finance Agency, GNMA 6/06 at 102.00 AAA 8,876,790
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 AAA 11,083,590
6.000%, 6/01/20 - MBIA Insured
10,350 District of Columbia, Revenue Bonds, Association of American 8/07 at 102.00 AAA 10,719,599
Medical Colleges, Series 1997A, 5.375%, 2/15/27 -
AMBAC Insured
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
14,105 0.000%, 4/01/24 - MBIA Insured 4/11 at 47.66 AAA 5,319,419
7,625 0.000%, 4/01/25 - MBIA Insured 4/11 at 44.82 AAA 2,705,960
16,665 0.000%, 4/01/32 - MBIA Insured 4/11 at 29.23 AAA 3,889,111
------------------------------------------------------------------------------------------------------------------------------------
66,870 Total District of Columbia 42,594,469
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.0% (2.0% OF TOTAL INVESTMENTS)
4,225 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 4,312,711
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
8,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 AAA 8,514,720
Tampa International Airport, Series 2003A, 5.375%, 10/01/16 -
MBIA Insured (Alternative Minimum Tax)
15
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 5,400 Hillsborough County Industrial Development Authority, 4/10 at 101.00 N/R $ 5,964,894
Florida, Exempt Facilities Remarketed Revenue Bonds,
National Gypsum Company, Apollo Beach Project,
Series 2000B, 7.125%, 4/01/30 (Alternative Minimum Tax)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A+ (4) 5,600,900
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
1,785 Tallahassee, Florida, Energy System Revenue Bonds, 10/15 at 100.00 AAA 1,846,636
Series 2005, 5.000%, 10/01/28 - MBIA Insured
2,375 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aaa 2,470,333
Participation, Series 2005B, 5.000%, 8/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,785 Total Florida 28,710,194
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.9% (1.2% OF TOTAL INVESTMENTS)
2,625 Fulton County Development Authority, Georgia, Revenue 5/14 at 100.00 AAA 2,790,611
Bonds, 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 6,401,502
Certificates, Series 2003, 5.250%, 1/01/20 - FSA Insured
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call AAA 5,621,363
Tax Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20 -
AMBAC Insured
2,730 Savannah Housing Authority, Georgia, GNMA Collateralized 5/08 at 103.00 Aaa 2,861,859
Mortgage Revenue Refunding Bonds, Plantation Oak Project,
Series 2000, 6.350%, 11/20/39
------------------------------------------------------------------------------------------------------------------------------------
16,225 Total Georgia 17,675,335
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.1% (0.7% OF TOTAL INVESTMENTS)
10,000 Hawaii, General Obligation Bonds, Series 2003DA, 9/13 at 100.00 AAA 10,632,900
5.250%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, 9/10 at 100.00 Aaa 5,244,700
Series 2000, 5.500%, 9/01/25 - FGIC Insured (Alternative
Minimum Tax)
685 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 692,309
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
5,685 Total Idaho 5,937,009
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.9% (5.8% OF TOTAL INVESTMENTS)
9,220 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 9,554,686
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
8,890 0.000%, 12/01/16 - FGIC Insured No Opt. Call AAA 5,509,844
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AAA 4,990,900
9,900 0.000%, 12/01/24 - FGIC Insured No Opt. Call AAA 4,039,596
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1999A:
15,000 0.000%, 12/01/21 - FGIC Insured No Opt. Call AAA 7,105,500
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AAA 4,274,600
90 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 9/06 at 105.00 Aaa 90,347
Mortgage Revenue Bonds, Series 1996A, 7.000%, 9/01/27
(Alternative Minimum Tax)
310 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 9/07 at 105.00 Aaa 311,060
Mortgage Revenue Bonds, Series 1997B, 6.950%, 9/01/28
(Alternative Minimum Tax)
8,740 Illinois Development Finance Authority, Pollution Control 8/06 at 100.00 AAA 8,786,759
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:
1,000 5.250%, 11/15/22 5/14 at 100.00 A 1,024,690
3,000 5.250%, 11/15/23 5/14 at 100.00 A 3,060,060
985 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 976,184
Series 2006, 5.125%, 1/01/25 (WI/DD, Settling 5/11/06)
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 $ 1,020,300
Medical Center, Series 2002, 5.500%, 5/15/32
9,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman 8/07 at 101.00 AAA 10,057,055
Health Systems, Series 1997, 5.250%, 8/01/27 -
AMBAC Insured
10,040 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 6,700,194
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 9,744,456
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 3,895,080
Bonds, McCormick Place Hospitality Facility, Series 1996A,
7.000%, 7/01/26 (ETM)
3,000 Upper Illinois River Valley Development Authority, Healthcare 12/11 at 101.00 BBB+ 3,256,320
Facilities Revenue Bonds, Morris Hospital, Series 2001,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
113,195 Total Illinois 84,397,631
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,005 Hamilton County Public Building Corporation, Indiana, First 8/14 at 100.00 AAA 2,076,879
Mortgage Bonds, Series 2004, 5.000%, 8/01/22 - FSA Insured
7,965 Wawasee Community School Corporation, Indiana, First 1/12 at 101.00 AA (4) 8,651,981
Mortgage Bonds, New Elementary and Remodeling Building
Corporation, Series 2000, 5.750%, 1/15/20 (Pre-refunded 1/15/12)
------------------------------------------------------------------------------------------------------------------------------------
9,970 Total Indiana 10,728,860
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.2% (1.4% OF TOTAL INVESTMENTS)
Des Moines, Iowa, General Obligation Bonds, Series 2000D:
1,215 5.750%, 6/01/17 - MBIA Insured 6/08 at 100.00 AAA 1,261,583
1,410 5.800%, 6/01/18 - MBIA Insured 6/08 at 100.00 AAA 1,465,695
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,121,180
Medical Center, Series 2000, 6.250%, 7/01/25
4,365 Iowa Finance Authority, Industrial Remarketed Revenue No Opt. Call AAA 5,370,958
Refunding Bonds, Urbandale Hotel Corporation, Series 1989A,
8.500%, 8/01/16 (Alternative Minimum Tax) (ETM)
10,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 10,088,400
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
18,990 Total Iowa 20,307,816
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS)
6,000 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AA+ 6,254,400
Series 2004A, 5.000%, 3/01/21
2,365 Sedgwick and Shawnee Counties, Kansas, GNMA 6/08 at 105.00 Aaa 2,412,371
Mortgage-Backed Securities Program Single Family
Revenue Bonds, Series 1998A-1, 6.500%, 12/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,365 Total Kansas 8,666,771
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.6% (1.0% OF TOTAL INVESTMENTS)
7,000 Kentucky State Property and Buildings Commission, Revenue 8/15 at 100.00 AAA 7,335,090
Bonds, Project 85, Series 2005, 5.000%, 8/01/22 - FSA Insured
3,770 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 3,931,771
Revenue Bonds, Revitalization Project, Series 2005B,
5.000%, 7/01/24 - AMBAC Insured
Marshall County School District Finance Corporation, Kentucky,
School Building Revenue Bonds, Series 2004:
1,210 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 Aaa 1,265,212
1,270 5.000%, 6/01/20 - AMBAC Insured 6/14 at 100.00 Aaa 1,325,309
1,335 5.000%, 6/01/21 - AMBAC Insured 6/14 at 100.00 Aaa 1,391,297
------------------------------------------------------------------------------------------------------------------------------------
14,585 Total Kentucky 15,248,679
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.1% (1.4% OF TOTAL INVESTMENTS)
2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,057,864
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/19 - AMBAC Insured
17
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 385 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa $ 386,367
Revenue Bonds, Series 2000A, 7.450%, 12/01/31 (Alternative
Minimum Tax)
6,680 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 8,342,518
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
2,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 2,041,880
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
Louisiana, Gasoline and Fuels Tax Revenue Bonds, Series 2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 1,237,308
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 2,275,416
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 2,579,575
------------------------------------------------------------------------------------------------------------------------------------
17,890 Total Louisiana 19,920,928
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,200 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 2,349,182
Revenue Bonds, Series 2006A, 5.250%, 9/01/27 -
XLCA Insured
3,600 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 3,739,104
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,800 Total Maryland 6,088,286
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.5% (2.2% OF TOTAL INVESTMENTS)
2,100 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 2,194,143
Bonds, Series 2000A, 5.250%, 7/01/30
7,900 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 8,355,198
Bonds, Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10)
4,770 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 4,731,125
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
8,505 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 8,772,737
Mortgage Revenue Bonds, Series 2001A, 5.850%, 7/01/35 -
AMBAC Insured (Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,936,277
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
1,500 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 1,621,140
Bonds, Series 2005A, 5.250%, 8/01/25 - MBIA Insured
3,820 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 4,100,044
Bonds, Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,420 Total Massachusetts 32,710,664
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.8% (2.5% OF TOTAL INVESTMENTS)
Detroit, Michigan, General Obligation Bonds, Series 2003A:
3,565 5.250%, 4/01/22 - XLCA Insured 4/13 at 100.00 AAA 3,747,350
1,275 5.250%, 4/01/23 - XLCA Insured 4/13 at 100.00 AAA 1,338,661
3,930 Hudsonville Public Schools, Ottawa and Allegan Counties, 5/08 at 100.00 AAA 4,017,914
Michigan, Unlimited Tax General Obligation School Building
and Site Refunding Bonds, Series 1997, 5.150%, 5/01/22 -
FGIC Insured
3,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 3,197,430
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
6,600 Michigan Housing Development Authority, Limited Obligation 7/07 at 102.00 AAA 6,722,760
Multifamily Mortgage Revenue Refunding Bonds, Forest Hills
Regency Square Project, Series 1999A, 5.750%, 7/01/29
10,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 10,371,600
Facilities Program, Series 2003II, 5.000%, 10/15/23 -
MBIA Insured
6,390 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/12 at 100.00 AAA 6,790,014
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
34,760 Total Michigan 36,185,729
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.5% (3.6% OF TOTAL INVESTMENTS)
13,650 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 13,602,498
Allete Inc., Series 2004, 4.950%, 7/01/22
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 2,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- $ 2,075,900
Facilities Revenue Bonds, Benedictine Health System -
St. Mary's Duluth Clinic, Series 2004, 5.375%, 2/15/22
Eden Prairie, Minnesota, GNMA Collateralized Multifamily
Housing Revenue Bonds, Rolling Hills Project, Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105.00 A1 1,077,900
2,000 6.200%, 2/20/43 8/11 at 105.00 A1 2,148,680
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101.00 AAA 3,075,060
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/22 - AMBAC Insured
90 Minnesota Agricultural and Economic Development Board, 11/07 at 102.00 AAA 94,142
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 1997A, 5.750%, 11/15/26 -
MBIA Insured
1,335 Minnesota Higher Education Facilities Authority, Revenue 4/16 at 100.00 A2 1,386,825
Bonds, University of St. Thomas, Series 2006-6I,
5.000%, 4/01/23
700 Minnesota Higher Education Facilities Authority, St. John's 10/15 at 100.00 A2 727,713
University Revenue Bonds, Series 2005-6G, 5.000%, 10/01/22
1,500 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,575,960
Series 2004A, 5.250%, 10/01/24
1,665 Rochester, Minnesota, Health Care Facilities Revenue Bonds, 5/16 at 100.00 AA 1,699,166
Series 2006, 5.000%, 11/15/36 (WI/DD, Settling 5/11/06)
1,545 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,667,812
Revenue Bonds, Healtheast Inc., Series 2005,
6.000%, 11/15/25
18,485 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 22,579,981
Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
46,970 Total Minnesota 51,711,637
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 4,271,153
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
3,045 Mississippi State University Educational Building Corporation, 8/15 at 100.00 AAA 3,125,388
Revenue Bonds, Residence Hall and Campus Improvement
Project, Series 2005, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,320 Total Mississippi 7,396,541
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.5% (1.6% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 2,040,040
Revenue 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 N/R 505,980
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+ 1,754,788
1,260 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,255,149
1,500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 1,579,050
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/21 - AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
1,500 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 1,614,690
4,150 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 4,457,308
705 Missouri Housing Development Commission, GNMA/FNMA 3/07 at 105.00 AAA 712,818
Single Family Mortgage Revenue Bonds, Homeownership
Loan Program, Series 1996C, 7.450%, 9/01/27 (Alternative
Minimum Tax)
3,495 Missouri Housing Development Commission, Single Family 3/09 at 103.00 AAA 3,550,151
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1999B-1, 6.700%, 9/01/30 (Alternative Minimum Tax)
5,810 St. Charles County Francis Howell School District, Missouri, No Opt. Call AAA 6,114,735
General Obligation Refunding Bonds, Series 1994A,
7.800%, 3/01/08 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,485 Total Missouri 23,584,709
------------------------------------------------------------------------------------------------------------------------------------
19
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.9% (0.6% OF TOTAL INVESTMENTS)
$ 4,060 Lincoln, Nebraska, Electric System Revenue Bonds, 9/12 at 100.00 AA $ 4,207,622
Series 2002, 5.000%, 9/01/23
4,410 University of Nebraska, Lincoln, Student Fees and Facilities 11/13 at 100.00 Aa2 4,488,939
Revenue Bonds, Series 2003B, 5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
8,470 Total Nebraska 8,696,561
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.4% (2.9% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,319,938
Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) -
MBIA Insured
15,000 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AAA 15,751,200
Nevada Water Authority Loan, Series 2001, 5.250%, 6/01/26 -
FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call AAA 2,066,794
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 12,437,520
------------------------------------------------------------------------------------------------------------------------------------
43,835 Total Nevada 41,575,452
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2% (0.2% OF TOTAL INVESTMENTS)
550 New Hampshire Housing Finance Agency, Single Family 7/06 at 102.00 Aa2 561,512
Mortgage Acquisition Revenue Bonds, Series 1996B,
6.400%, 1/01/27 (Alternative Minimum Tax)
1,655 New Hampshire Housing Finance Agency, Single Family 7/06 at 100.00 Aa2 1,659,088
Residential Mortgage Bonds, Series 1993B, 6.050%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
2,205 Total New Hampshire 2,220,600
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 9.0% (5.8% OF TOTAL INVESTMENTS)
10,150 Delaware River Port Authority, Pennsylvania and New Jersey, 1/10 at 100.00 AAA 10,725,708
Revenue Bonds, Port District Project, Series 1999B,
5.625%, 1/01/26 - FSA Insured
8,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 8,732,480
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25
(Pre-refunded 10/01/10) - FGIC Insured
Essex County, New Jersey, General Obligation Bonds,
Series 2005A:
2,065 5.000%, 5/01/24 - MBIA Insured 5/15 at 100.00 Aaa 2,152,411
3,030 5.000%, 5/01/25 - MBIA Insured 5/15 at 100.00 Aaa 3,155,987
500 Middlesex County Improvement Authority, New Jersey, Senior No Opt. Call Baa3 505,050
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A, 5.000%, 1/01/15
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
3,655 5.250%, 9/01/24 9/15 at 100.00 AA- 3,880,587
2,000 5.250%, 9/01/26 9/15 at 100.00 AA- 2,118,740
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 1,566,675
Princeton University, Series 2005A, 5.000%, 7/01/30
5,315 New Jersey Housing and Mortgage Finance Agency, Home 10/07 at 101.50 AAA 5,451,702
Buyer Program Revenue Bonds, Series 1997U, 5.850%, 4/01/29 -
MBIA Insured (Alternative Minimum Tax)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
5,000 5.500%, 6/15/19 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 5,482,150
5,410 5.500%, 6/15/20 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 5,931,686
9,250 5.500%, 6/15/23 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 10,141,978
New Jersey Turnpike Authority, Revenue Bonds, Series 2000A:
3,915 6.000%, 1/01/14 - MBIA Insured (ETM) No Opt. Call AAA 4,423,676
7,585 6.000%, 1/01/14 - MBIA Insured (ETM) No Opt. Call AAA 8,570,519
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,604,550
5.000%, 1/01/19 - FGIC Insured
9,130 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 9,497,574
5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
79,005 Total New Jersey 84,941,473
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
825 New Mexico Mortgage Finance Authority, Single Family 3/10 at 102.50 AAA 840,766
Mortgage Program Bonds, Series 2000D-2, 6.850%, 9/01/31
(Alternative Minimum Tax)
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO (continued)
$ 5,585 Santa Fe County, New Mexico, Correctional System Gross No Opt. Call AAA $ 6,481,728
Receipts Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,410 Total New Mexico 7,322,494
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 20.4% (13.2% OF TOTAL INVESTMENTS)
1,145 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,189,930
Mental Health Services Facilities Improvements, Series 2005B,
5.000%, 2/15/24 - AMBAC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
University of Rochester, Series 2004A:
1,025 5.250%, 7/01/20 7/14 at 100.00 A+ 1,085,301
1,000 5.250%, 7/01/22 7/14 at 100.00 A+ 1,059,530
500 5.250%, 7/01/24 7/14 at 100.00 A+ 528,005
1,995 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 2,105,343
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 2,430,852
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
6,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call Aa3 6,487,680
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
13,580 Long Island Power Authority, New York, Electric System 6/08 at 101.00 A- (4) 14,140,582
General Revenue Bonds, Series 1998A, 5.250%, 12/01/26
(Pre-refunded 6/01/08)
5,000 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 5,219,350
Revenue Bonds, Series 2006A, 5.000%, 12/01/24 - FGIC Insured
4,500 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 4,664,115
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 -
AMBAC Insured
7,400 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 7,583,890
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
3,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 3,157,860
Revenue Refunding Bonds, Series 2002A, 5.125%, 11/15/21 -
FGIC Insured
New York City Industrial Development Agency, New York, Civic
Facility Revenue Bonds, United Jewish Appeal - Federation of
Jewish Philanthropies of New York Inc., Series 2004A:
2,185 5.250%, 7/01/20 7/14 at 100.00 Aa2 2,322,021
2,050 5.250%, 7/01/21 7/14 at 100.00 Aa2 2,177,100
2,420 5.250%, 7/01/22 4/14 at 100.00 Aa2 2,582,914
1,370 5.250%, 7/01/24 4/14 at 100.00 Aa2 1,457,365
1,250 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 1,301,538
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005C, 5.000%, 6/15/25 - MBIA Insured
4,250 New York City Municipal Water Finance Authority, New York, 6/16 at 100.00 AA+ 4,394,925
Water and Sewerage System Revenue Bonds, Fiscal
Series 2006D, 5.000%, 6/15/29
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
10,000 5.000%, 10/15/22 - MBIA Insured 10/14 at 100.00 AAA 10,466,800
4,825 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 5,032,861
1,665 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,736,728
12,500 New York City, New York, General Obligation Bonds, 10/13 at 100.00 A+ 13,181,750
Fiscal Series 2003D, 5.250%, 10/15/22
4,960 New York City, New York, General Obligation Bonds, 6/13 at 100.00 A+ 5,299,958
Fiscal Series 2003J, 5.500%, 6/01/23
40 New York City, New York, General Obligation Bonds, 6/13 at 100.00 A+ (4) 43,866
Fiscal Series 2003J, 5.500%, 6/01/23 (Pre-refunded 6/01/13)
6,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 6,340,260
Fiscal Series 2004C, 5.250%, 8/15/20
8,270 New York City, New York, General Obligation Bonds, No Opt. Call A+ 8,734,857
Fiscal Series 2004G, 5.000%, 8/01/14
7,960 New York City, New York, General Obligation Bonds, 4/15 at 100.00 A+ 8,187,736
Fiscal Series 2005M, 5.000%, 4/01/24
650 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 690,579
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
21
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 1,350 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 AAA $ 1,505,939
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
(Pre-refunded 6/01/10)
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
3,770 5.000%, 1/01/25 - FSA Insured 7/15 at 100.00 AAA 3,926,003
5,980 5.000%, 1/01/26 - FSA Insured 7/15 at 100.00 AAA 6,222,908
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
5,000 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 5,243,000
2,000 5.000%, 4/01/22 - AMBAC Insured 10/15 at 100.00 AAA 2,095,640
3,000 New York State Thruway Authority, State Personal Income 3/15 at 100.00 AAA 3,150,120
Tax Revenue Bonds, Series 2005A, 5.000%, 3/15/19 -
FSA Insured
7,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 7,790,572
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
14,000 New York State Urban Development Corporation, Service 1/17 at 100.00 AA- 14,914,200
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
6,460 New York State Urban Development Corporation, State 3/14 at 100.00 AAA 6,691,526
Personal Income Tax Revenue Bonds, Series 2004A-1,
5.000%, 3/15/26 - FGIC Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 2,083,820
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/27 - XLCA Insured
5,000 Port Authority of New York and New Jersey, Consolidated 3/14 at 101.00 AAA 5,175,200
Revenue Bonds, One Hundred Thirty-Fifth Series 2004,
5.000%, 9/15/28 - XLCA Insured
9,515 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 9,818,433
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
183,350 Total New York 192,221,057
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
5,785 5.250%, 6/01/22 6/13 at 100.00 AA+ 6,074,366
3,475 5.250%, 6/01/23 6/13 at 100.00 AA+ 3,646,665
1,000 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 1,047,660
Financing Authority, North Carolina, National Gypsum
Company Project Exempt Facilities Revenue Bonds,
Series 2005, 5.750%, 8/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,260 Total North Carolina 10,768,691
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.2% (0.8% OF TOTAL INVESTMENTS)
9,650 Dickinson, North Dakota, Health Care Facilities Revenue 2/10 at 102.00 AA 10,938,758
Bonds, BHS Long Term Care Inc., Series 1990,
7.625%, 2/15/20 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.0% (1.3% OF TOTAL INVESTMENTS)
4,265 Franklin County, Ohio, Hospital Revenue and Improvement 5/11 at 101.00 Aaa 4,625,094
Bonds, Children's Hospital Project, Series 2001,
5.500%, 5/01/28 (Pre-refunded 5/01/11) - AMBAC Insured
1,785 Marysville, Ohio, Wastewater Treatment System First 12/15 at 100.00 AAA 1,863,022
Mortgage Revenue Bonds, Series 2005, 5.000%, 12/01/24 -
MBIA Insured
2,720 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 2,885,784
5.250%, 6/01/20
2,000 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 2,144,240
Bonds, MedCentral Health System Obligated Group,
Series 2000A, 6.125%, 11/15/16
7,000 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 A3 7,583,450
Improvement Bonds, Trinity Health System, Series 2000,
6.500%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
17,770 Total Ohio 19,101,590
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.6% (0.4% 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- 501,735
1,050 5.375%, 9/01/36 9/16 at 100.00 BBB- 1,052,394
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA (continued)
$ 3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AAA $ 3,647,525
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,050 Total Oklahoma 5,201,654
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.0% (0.6% OF TOTAL INVESTMENTS)
Oregon Department of Administrative Services, Certificates
of Participation, Series 2005A:
2,060 5.000%, 5/01/24 - FSA Insured 5/15 at 100.00 AAA 2,134,819
4,220 5.000%, 5/01/30 - FSA Insured 5/15 at 100.00 AAA 4,341,747
2,500 Oregon State Department of Transportation, Highway User 11/14 at 100.00 AA+ 2,614,000
Tax Revenue Bonds, Series 2004A, 5.000%, 11/15/21
------------------------------------------------------------------------------------------------------------------------------------
8,780 Total Oregon 9,090,566
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.4% (3.5% OF TOTAL INVESTMENTS)
2,440 Chester County, Pennsylvania, General Obligation Bonds, 5/15 at 100.00 Aa1 2,541,772
Series 2005, 5.000%, 11/15/24
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+ 1,420,762
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,068,231
Montgomery County Industrial Development Authority,
Pennsylvania, Revenue Bonds, Hill School, Series 2005:
4,000 5.000%, 8/15/25 - MBIA Insured 8/15 at 100.00 Aaa 4,164,200
3,550 5.000%, 8/15/26 - MBIA Insured 8/15 at 100.00 Aaa 3,690,260
3,300 5.000%, 8/15/27 - MBIA Insured 8/15 at 100.00 Aaa 3,422,760
1,000 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 1,033,490
Series 2005, 5.000%, 9/01/29
Philadelphia Gas Works, Pennsylvania, Revenue Bonds,
General Ordinance, Fifth Series 2004A-1:
4,505 5.000%, 9/01/21 - FSA Insured 9/14 at 100.00 AAA 4,658,350
4,735 5.000%, 9/01/22 - FSA Insured 9/14 at 100.00 AAA 4,892,865
8,405 Philadelphia Redevelopment Authority, Pennsylvania, 4/08 at 103.00 N/R 8,484,932
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 14,845,320
Revenue Bonds, Philadelphia School District, Series 2003,
5.250%, 6/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
49,235 Total Pennsylvania 51,222,942
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,552,920
Series 2005RR, 5.000%, 7/01/30 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.7% (4.4% OF TOTAL INVESTMENTS)
8,610 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 8,962,838
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/24
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
5,090 5.250%, 12/01/18 12/13 at 100.00 AA- 5,350,048
3,595 5.250%, 12/01/20 12/13 at 100.00 AA- 3,773,707
1,865 5.250%, 12/01/21 12/13 at 100.00 AA- 1,956,478
Lexington County Health Service District, South Carolina,
Hospital Revenue Bonds, Series 2004:
1,805 6.000%, 5/01/19 5/14 at 100.00 A 1,969,526
2,400 5.500%, 5/01/24 5/14 at 100.00 A 2,504,928
1,655 South Carolina JOBS Economic Development Authority, 8/13 at 100.00 BBB+ 1,838,175
Hospital Refunding and Improvement Revenue Bonds,
Palmetto Health Alliance, Series 2003C, 6.375%, 8/01/34
13,345 South Carolina JOBS Economic Development Authority, 8/13 at 100.00 BBB+ (4) 15,262,143
Hospital Refunding and Improvement Revenue Bonds,
Palmetto Health Alliance, Series 2003C, 6.375%, 8/01/34
(Pre-refunded 8/01/13)
23
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
Tobacco Settlement Revenue Management Authority,
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B:
$ 8,915 6.000%, 5/15/22 5/11 at 101.00 BBB $ 9,339,532
7,500 6.375%, 5/15/28 5/11 at 101.00 BBB 8,014,950
4,150 6.375%, 5/15/30 No Opt. Call BBB 4,616,128
------------------------------------------------------------------------------------------------------------------------------------
58,930 Total South Carolina 63,588,453
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1% (0.7% OF TOTAL INVESTMENTS)
6,400 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 6,634,176
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
3,595 Tennessee Housing Development Agency, Homeownership 7/13 at 100.00 AA 3,636,882
Program Bonds, Series 2004, 5.000%, 7/01/34 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,995 Total Tennessee 10,271,058
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.7% (8.2% OF TOTAL INVESTMENTS)
10,205 Alliance Airport Authority, Texas, Special Facilities Revenue 6/06 at 100.00 CCC 9,897,319
Bonds, American Airlines Inc., Series 1990, 7.500%, 12/01/29
(Alternative Minimum Tax)
3,289 Austin Housing Finance Corporation, Texas, GNMA Collateralized 12/10 at 105.00 Aaa 3,614,381
Multifamily Housing Revenue Bonds, Fairway Village Project,
Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax)
2,150 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 10/13 at 101.00 Baa2 2,420,986
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 188,354
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 6.000%, 2/15/16
680 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA 9/10 at 105.00 AAA 689,098
Single Family Mortgage Revenue Bonds, Series 2000A,
6.700%, 9/01/33 (Alternative Minimum Tax)
4,295 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 4,624,770
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
1,435 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 1,526,065
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
19,125 Harris County Hospital District, Texas, Revenue Refunding 8/10 at 100.00 AAA 20,573,144
Bonds, Series 2000, 6.000%, 2/15/15 - MBIA Insured
4,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 4,140,560
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
MBIA Insured
5,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 5,276,600
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 6,426,900
Series 2001B, 5.500%, 3/01/15 - FSA Insured
9,250 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 9,767,167
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series
2005:
2,000 5.250%, 8/15/21 No Opt. Call BBB- 2,040,540
2,500 5.125%, 8/15/26 No Opt. Call BBB- 2,484,200
1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 1,588,663
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/23 - AMBAC Insured
3,400 Lower Colorado River Authority, Texas, Revenue Refunding 5/13 at 100.00 AAA 3,593,664
and Improvement Bonds, Series 2003, 5.250%, 5/15/24 -
AMBAC Insured
2,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Baa2 2,040,580
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
10,810 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 12,078,121
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
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,000 Tarrant County Health Facilities Development Corporation, 11/10 at 101.00 A+ (4) $ 4,503,160
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 5,295,400
Refunding and Improvement Bonds, Series 1999,
5.250%, 3/01/17 - FSA Insured
4,000 Texas A&M University, Financing System Revenue Bonds, 5/09 at 100.00 AAA 4,206,600
Series 1999, 5.550%, 5/15/29 (Pre-refunded 5/15/09) -
MBIA Insured
25,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central No Opt. Call AAA 10,310,000
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 2,488,525
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
128,319 Total Texas 119,774,797
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,290 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 Aaa 1,317,413
Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.4% OF TOTAL INVESTMENTS)
4,835 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100.00 N/R 5,165,521
Residential Rental Housing Revenue Bonds, Mayfair
Apartments I and II, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.4% (4.1% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,727,125
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
Public Utility District 1, Chelan County, Washington, Revenue
Bonds, Chelan Hydro Consolidated System, Series 1997A:
11,820 5.650%, 7/01/32 (Mandatory put 7/01/24) 7/07 at 102.00 AA 12,117,628
(Alternative Minimum Tax)
8,000 5.650%, 7/01/32 (Mandatory put 7/01/27) 7/07 at 102.00 AA 8,177,360
(Alternative Minimum Tax)
3,125 Skagit County Public Hospital District 1, Washington, General 6/14 at 100.00 Aaa 3,367,563
Obligation Bonds, Series 2004A, 5.375%, 12/01/20 - MBIA Insured
5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 5,243,550
Bonds, Series 2001, 5.250%, 12/01/26 - MBIA Insured
9,350 Washington Public Power Supply System, Revenue Refunding 7/07 at 102.00 Aaa 9,670,705
Bonds, Nuclear Project 3, Series 1997A, 5.250%, 7/01/15
7,775 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 8,039,817
Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
4,750 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,899,673
Bonds, Swedish Health Services, Series 1998, 5.125%, 11/15/22 -
AMBAC Insured
11,000 Washington, General Obligation Bonds, Series 2000S-5, No Opt. Call AAA 5,734,960
0.000%, 1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
63,320 Total Washington 59,978,381
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.0% (1.9% OF TOTAL INVESTMENTS)
Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue
Bonds, Public Schools, Series 2003A:
1,000 5.125%, 8/01/22 - AMBAC Insured 8/13 at 100.00 AAA 1,041,850
1,345 5.125%, 8/01/23 - AMBAC Insured 8/13 at 100.00 AAA 1,399,594
1,000 Wisconsin Health and Educational Facilities Authority, 7/11 at 100.00 A- 1,055,040
Revenue Bonds, Agnesian Healthcare Inc., Series 2001,
6.000%, 7/01/21
9,000 Wisconsin Health and Educational Facilities Authority, Revenue 4/13 at 100.00 BBB+ 9,842,040
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 2,335,254
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 765,960
Bonds, Divine Savior Healthcare, Series 2006, 5.000%, 5/01/32
25
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 6,025 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 A- $ 6,457,836
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 6.000%, 9/01/22
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,047,900
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.250%, 8/15/25
Wisconsin, General Obligation Bonds, Series 2004-3:
1,720 5.250%, 5/01/19 - FGIC Insured 5/14 at 100.00 AAA 1,832,110
1,265 5.250%, 5/01/21 - FGIC Insured 5/14 at 100.00 AAA 1,345,694
------------------------------------------------------------------------------------------------------------------------------------
26,320 Total Wisconsin 28,123,278
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,900 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB- 4,074,252
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,489,602 Total Investments (cost $1,403,996,334) - 154.2% 1,454,842,692
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 13,733,806
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.6)% (525,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 943,576,498
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) On December 9, 2002, UAL Corporation, the holding
company of United Air Lines, Inc., filed for federal
bankruptcy protection. The Adviser determined that it
was likely United would not remain current on their
interest payment obligations with respect to these
bonds and thus has stopped accruing interest.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
26
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.7% (1.8% OF TOTAL INVESTMENTS)
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
$ 3,600 5.250%, 11/15/20 11/15 at 100.00 Baa1 $ 3,677,148
1,000 5.000%, 11/15/30 11/15 at 100.00 Baa1 975,800
1,560 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,561,622
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) 1,818,812
Alabama, Revenue Bonds, Baptist Medical Center,
Series 2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
8,255 University of South Alabama, Student Tuition Revenue Bonds, 3/14 at 100.00 Aaa 8,561,921
Series 2004, 5.000%, 3/15/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,105 Total Alabama 16,595,303
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.9% (0.6% 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 205,220
265 5.250%, 12/01/25 12/15 at 100.00 BBB 271,917
2,850 Maricopa County Industrial Development Authority, Arizona, 1/07 at 102.00 AAA 3,045,368
Multifamily Housing Revenue Bonds, Place Five and The
Greenery Apartments, Series 1996A, 6.625%, 1/01/27 (ETM)
2,095 Pima County Industrial Development Authority, Arizona, Lease 7/06 at 101.00 AAA 2,108,115
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,410 Total Arizona 5,630,620
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 996,910
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.2% (9.9% OF TOTAL INVESTMENTS)
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 6,018,370
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 4,512,600
5,500 5.375%, 5/01/21 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 6,024,535
California Educational Facilities Authority, Revenue Refunding
Bonds, Loyola Marymount University, Series 2001A:
3,255 0.000%, 10/01/23 - MBIA Insured No Opt. Call Aaa 1,397,892
5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call Aaa 2,405,417
7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call Aaa 2,951,117
6,240 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 6,313,070
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
2,055 California Infrastructure Economic Development Bank, 10/14 at 100.00 AA 2,128,507
Infrastructure State Revolving Fund Revenue Bonds,
Series 2004, 5.000%, 10/01/21
1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 978,370
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.000%, 7/01/39
2,500 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA- 2,705,975
5.250%, 7/01/14
3,500 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A 3,555,510
5.000%, 2/01/32
27
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 8,000 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/25 2/14 at 100.00 A $ 8,294,640
5,000 California, General Obligation Bonds, Series 2006, 5.000%, 3/01/13 No Opt. Call A 5,288,750
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 1,993,366
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,170 Cotati-Rohnert Park Unified School District, Sonoma County, 8/15 at 100.00 Aaa 2,270,514
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/22 - FGIC Insured
2,500 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 2,601,900
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 15,106,800
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21
(ETM)
1,385 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 1,430,317
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
Perris, California, Special Tax Bonds, Community Facilities
District 2001-1, May Farms Improvement Area 4, Series 2005A:
1,420 5.000%, 9/01/25 9/15 at 102.00 N/R 1,420,511
435 5.100%, 9/01/30 9/15 at 102.00 N/R 435,526
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 251,123
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 274,255
2,220 San Diego Redevelopment Agency, California, Subordinate 9/14 at 100.00 AAA 2,303,405
Lien Tax Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/20 - XLCA Insured
960 San Francisco Redevelopment Agency, California, Hotel Tax 7/06 at 100.00 AAA 962,678
Revenue Bonds, Series 1994, 6.750%, 7/01/25 - FSA Insured
6,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 6,403,020
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - MBIA Insured
2,000 Sonoma County Junior College District, California, General 8/13 at 100.00 AAA 2,140,140
Obligation Bonds, Series 2003A, 5.000%, 8/01/27
(Pre-refunded 8/01/13) - FSA Insured
3,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 AAA 3,069,840
Bonds, Turlock Irrigation District, Series 2004A,
5.000%, 1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
114,760 Total California 93,238,148
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.2% (1.4% OF TOTAL INVESTMENTS)
1,700 Centennial Water and Sanitation District, Colorado, Water 12/14 at 100.00 AAA 1,775,344
and Sewerage Revenue Bonds, Series 2004, 5.000%, 12/01/22 -
FGIC Insured
Colorado Health Facilities Authority, Revenue Bonds, Evangelical
Lutheran Good Samaritan Society, Series 2005:
1,745 5.250%, 6/01/23 6/16 at 100.00 A- 1,795,186
475 5.000%, 6/01/29 6/16 at 100.00 A- 471,442
130 Colorado Housing Finance Authority, Single Family Program 6/06 at 105.00 Aa2 130,407
Senior Bonds, Series 1995D, 7.375%, 6/01/26 (Alternative
Minimum Tax)
400 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 452,040
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 AAA 7,265,295
Revenue Bonds, Convention Center Hotel, Series 2006,
5.125%, 12/01/25 (WI/DD, Settling 5/02/06) - XLCA Insured
1,700 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/07 at 102.00 AAA 1,737,196
Bonds, Boston Lofts Project, Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,075 Total Colorado 13,626,910
------------------------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.5% (1.6% OF TOTAL INVESTMENTS)
$ 3,170 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA $ 3,236,855
Finance Program Bonds, Series 1996C-2, 6.250%, 11/15/18
Connecticut, Special Tax Obligation Transportation Infrastructure
Purpose Bonds, Series 2003B:
8,310 5.000%, 1/01/21 - FGIC Insured 1/14 at 100.00 AAA 8,666,998
3,000 5.000%, 1/01/24 - FGIC Insured 1/14 at 100.00 AAA 3,116,970
------------------------------------------------------------------------------------------------------------------------------------
14,480 Total Connecticut 15,020,823
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.0% (1.3% OF TOTAL INVESTMENTS)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
11,720 0.000%, 4/01/27 - MBIA Insured 4/11 at 39.61 AAA 3,703,051
13,780 0.000%, 4/01/28 - MBIA Insured 4/11 at 37.21 AAA 4,091,971
15,855 0.000%, 4/01/29 - MBIA Insured 4/11 at 35.07 AAA 4,437,339
------------------------------------------------------------------------------------------------------------------------------------
41,355 Total District of Columbia 12,232,361
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.0% (2.0% OF TOTAL INVESTMENTS)
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 4,317,815
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 5,135,700
5.750%, 10/01/18 - MBIA Insured (Alternative Minimum Tax)
2,500 Escambia County Health Facilities Authority, Florida, Health 10/08 at 101.00 BBB+ 2,533,450
Facility Revenue Refunding Bonds, Baptist Hospital and
Baptist Manor, Series 1998, 5.125%, 10/01/19
655 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 675,488
Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 - FSA
Insured (Alternative Minimum Tax)
3,600 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 3,976,596
Exempt Facilities Remarketed Revenue Bonds, National
Gypsum Company, Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 AA 1,824,151
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
17,685 Total Florida 18,463,200
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.0% (1.3% OF TOTAL INVESTMENTS)
500 Chatham County Hospital Authority, Savannah, Georgia, 1/14 at 100.00 A- 519,215
Hospital Revenue Bonds, Memorial Health University Medical
Center Inc., Series 2004A, 5.375%, 1/01/26
1,745 Columbus, Georgia, Water and Sewerage Revenue Bonds, 5/14 at 100.00 AAA 1,814,416
Series 2005, 5.000%, 5/01/24 - MBIA Insured
150 Fulton County Housing Authority, Georgia, GNMA 9/06 at 102.00 AAA 152,544
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Refunding Bonds, Series 1996A, 6.200%, 9/01/27
(Alternative Minimum Tax)
10 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 10,825
Revenue Bonds, Series 2003A, 5.250%, 11/01/15
(Pre-refunded 11/01/13) - MBIA Insured
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
3,405 5.250%, 11/01/15 - MBIA Insured 11/13 at 100.00 AAA 3,648,594
3,365 5.000%, 11/01/18 - MBIA Insured 11/13 at 100.00 AAA 3,513,666
2,235 Richmond County Development Authority, Georgia, Revenue 12/14 at 100.00 AAA 2,319,751
Bonds, Medical College of Georgia, Cancer Research Center
Project, Series 2004A, 5.000%, 12/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,410 Total Georgia 11,979,011
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.5% (1.0% OF TOTAL INVESTMENTS)
3,170 Idaho Housing Agency, FHA-Insured Mortgage Revenue Bonds, 6/06 at 101.00 Aa2 3,203,856
Park Place Project, Series 1995A, 6.500%, 12/01/36
(Alternative Minimum Tax)
29
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO (continued)
$ 365 Idaho Housing Agency, Senior Lien Single Family Mortgage 7/06 at 101.00 Aaa $ 369,964
Bonds, Series 1995F, 6.450%, 7/01/27 (Alternative Minimum Tax)
3,160 Idaho Housing and Finance Association, GNMA Housing Revenue 3/12 at 105.00 Aaa 3,525,043
Refunding Bonds, Wedgewood Terrace Project, Series 2002A-1,
7.250%, 3/20/37
375 Idaho Housing and Finance Association, Single Family Mortgage 7/06 at 102.00 Aaa 376,380
Bonds, Series 1996G, 6.350%, 7/01/26 (Alternative
Minimum Tax)
415 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 430,504
Bonds, Series 2000B, 6.250%, 7/01/22 (Alternative
Minimum Tax)
645 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 647,341
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative
Minimum Tax)
500 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 505,335
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
8,630 Total Idaho 9,058,423
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.2% (9.2% OF TOTAL INVESTMENTS)
5,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA 2,499,000
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
22,670 Chicago, Illinois, General Obligation Bonds, City Colleges of No Opt. Call AAA 9,179,763
Chicago Capital Improvement Project, Series 1999,
0.000%, 1/01/25 - FGIC Insured
1,585 Chicago, Illinois, General Obligation Bonds, Series 1995A-1, 1/08 at 100.00 AAA 1,610,170
5.125%, 1/01/25 - AMBAC Insured
880 Chicago, Illinois, General Obligation Refunding Bonds, 7/08 at 102.00 AAA 919,582
Series 1998, 5.250%, 1/01/20 - FGIC Insured
120 Chicago, Illinois, General Obligation Refunding Bonds, 7/08 at 102.00 AAA 126,101
Series 1998, 5.250%, 1/01/20 (Pre-refunded 7/01/08) -
FGIC Insured
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 6/09 at 102.00 Aaa 1,213,810
Revenue Bonds, Bryn Mawr-Belle Shores Project, Series 1997,
5.800%, 6/01/23 (Alternative Minimum Tax)
3,315 Chicago, Illinois, Tax Increment Allocation Bonds, Read-Dunning 1/07 at 102.00 N/R 3,437,953
Redevelopment Project, Series 1996B, 7.250%, 1/01/14
3,325 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 1/07 at 102.00 N/R 3,459,230
Drainage and Ship Canal Redevelopment Project, Series 1997A,
7.750%, 1/01/14
4,865 Cook County Community Consolidated School District 15, No Opt. Call Aaa 2,431,527
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured
6,190 Cook County Community High School District 219, Niles No Opt. Call Aaa 3,093,762
Township, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - MBIA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,000 5.250%, 11/15/14 5/14 at 100.00 A 2,088,060
4,420 5.250%, 11/15/15 5/14 at 100.00 A 4,598,922
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 391,465
Series 2006, 5.125%, 1/01/25 (WI/DD, Settling 5/11/06)
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 1,020,300
Medical Center, Series 2002, 5.500%, 5/15/32
3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- 3,220,800
Hospital, Series 2003, 6.000%, 7/01/33
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A+ 3,330,510
Lutheran General Health System, Series 1993C,
6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance
Bonds, Series 2000A:
650 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 657,254
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,274,220
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AAA $ 13,269,410
Series 2001, 6.000%, 11/01/26 - FGIC Insured
2,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 2,141,340
Series 2002, 5.500%, 2/01/18 - FGIC Insured
Lake County Community Unit School District 60, Waukegan,
Illinois, General Obligation Refunding Bonds, Series 2001B:
3,230 0.000%, 11/01/19 - FSA Insured No Opt. Call Aaa 1,704,148
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aaa 825,038
4,020 Lake, Cook, Kane and McHenry Counties Community Unit No Opt. Call AAA 4,387,187
School District 220, Barrington, Illinois, School Refunding
Bonds, Series 2002, 5.250%, 12/01/20 - FSA Insured
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
855 5.250%, 1/01/25 1/16 at 100.00 AA- 893,868
1,750 5.250%, 1/01/30 1/16 at 100.00 AA- 1,818,495
17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call Aaa 8,428,049
District 158, Huntley, Illinois, General Obligation Bonds,
Series 2003, 0.000%, 1/01/22 - FGIC Insured
4,505 McHenry County Community Consolidated School District 47, 2/09 at 100.00 Aaa 4,712,590
Crystal Lake, Illinois, General Obligation Refunding Bonds,
Series 1999, 5.750%, 2/01/19 - FSA Insured
2,910 McHenry County Community High School District 154, No Opt. Call Aaa 1,436,260
Marengo, Illinois, Capital Appreciation School Bonds,
Series 2001, 0.000%, 1/01/21 - FGIC Insured
2,540 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,606,472
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
117,330 Total Illinois 86,775,286
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,000 Ball State University, Indiana, Student Fee Revenue Bonds, 1/12 at 100.00 AAA 1,084,040
Series 2002K, 5.750%, 7/01/20 - FGIC Insured
3,500 Indiana Bond Bank, Special Program Bonds, East Chicago 2/10 at 101.00 AAA 3,798,550
Facilities Building Corporation, Series 2000A, 6.125%, 2/01/25 -
AMBAC Insured
4,195 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA 4,416,622
Bonds, Series 2000, 5.375%, 12/01/25
805 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA (4) 859,402
Bonds, Series 2000, 5.375%, 12/01/25 (Pre-refunded 12/01/10)
Indiana University, Student Fee Revenue Bonds, Series 2004P:
2,750 5.000%, 8/01/22 - AMBAC Insured 8/14 at 100.00 AAA 2,852,437
1,600 5.000%, 8/01/24 - AMBAC Insured 8/14 at 100.00 AAA 1,654,000
1,550 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BBB 1,552,573
Madison Center Inc., Series 2005, 5.250%, 2/15/23
------------------------------------------------------------------------------------------------------------------------------------
15,400 Total Indiana 16,217,624
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.4% (2.2% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,121,180
Medical Center, Series 2000, 6.250%, 7/01/25
8,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA 8,379,120
Iowa Health System, Series 1998A, 5.125%, 1/01/28
(Pre-refunded 7/01/08) - MBIA Insured
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 8,070,720
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
2,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 2,126,900
Asset-Backed Revenue Bonds, Series 2001B,
5.300%, 6/01/25 (Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
20,000 Total Iowa 20,697,920
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.1% (0.1% OF TOTAL INVESTMENTS)
$ 1,000 Johnson County Unified School District 232, Kansas, General 3/15 at 100.00 Aaa $ 1,043,130
Obligation Bonds, Series 2005, 5.000%, 3/01/23 - MBIA Insured
140 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 141,149
Single Family Mortgage Revenue Refunding Bonds,
Series 1994A-1, 7.900%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,140 Total Kansas 1,184,279
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.5% (2.2% OF TOTAL INVESTMENTS)
680 Bossier Public Trust Financing Authority, Louisiana, Single 8/06 at 101.00 AAA 691,737
Family Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
2,920 East Baton Rouge Parish Mortgage Finance Authority, 10/06 at 101.50 Aaa 2,942,542
Louisiana, GNMA/FNMA Mortgage-Backed Securities
Program Single Family Mortgage Revenue Bonds,
Series 1994C, 6.350%, 10/01/28 (Alternative Minimum Tax)
3,230 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,386,429
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/21 - AMBAC Insured
4,350 Louisiana Citizens Property Insurance Corporation, Assessment 6/06 at 100.00 AAA 4,530,047
Revenue Bonds, Series 2006, 5.000%, 6/01/22 -
AMBAC Insured
4,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 4,083,760
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
2,215 New Orleans Home Mortgage Authority, Louisiana, 6/06 at 101.00 Aaa 2,263,819
GNMA/FNMA Single Family Mortgage Revenue Bonds,
Series 1995A, 6.300%, 6/01/28 (Alternative Minimum Tax)
3,240 Orleans Levee District, Louisiana, Levee District General 6/06 at 103.00 AAA 3,340,861
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,635 Total Louisiana 21,239,195
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,996,259
Revenue Bonds, Series 2006A, 5.250%, 9/01/26 - XLCA Insured
1,205 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 1,245,970
Revenue Bonds, University of Maryland College Park Projects
Refunding, Series 2006, 5.000%, 6/01/28 - CIFG Insured
1,390 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 1,452,342
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.250%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Maryland 4,694,571
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.9% (4.4% OF TOTAL INVESTMENTS)
2,700 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 2,973,591
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
1,975 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,976,323
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB 1,046,840
Hampshire College, Series 2004, 5.700%, 10/01/34
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 AA 9,807,158
Revenue Bonds, Berkshire Health System, Series 2001E,
5.700%, 10/01/25 - RAAI Insured
1,100 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 BBB 1,122,517
Revenue Bonds, Caritas Christi Obligated Group, Series 1999A,
5.625%, 7/01/20
2,750 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 2,838,495
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 - FGIC Insured
1,325 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 1,314,201
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
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 12,202,788
1,850 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 1,980,277
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
Massachusetts, Special Obligation Dedicated Tax Revenue Bonds,
Series 2004:
$ 2,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA $ 2,414,948
4,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 4,293,240
------------------------------------------------------------------------------------------------------------------------------------
39,525 Total Massachusetts 41,970,378
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.4% (2.2% OF TOTAL INVESTMENTS)
Grand Rapids and Kent County Joint Building Authority, Michigan,
Limited Tax General Obligation Bonds, Devos Place Project,
Series 2001:
7,660 0.000%, 12/01/21 No Opt. Call AAA 3,673,047
7,955 0.000%, 12/01/22 No Opt. Call AAA 3,615,309
8,260 0.000%, 12/01/23 No Opt. Call AAA 3,567,411
8,575 0.000%, 12/01/24 No Opt. Call AAA 3,518,065
1,200 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,278,972
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
2,000 Michigan State Hospital Finance Authority, Revenue Refunding 8/09 at 100.00 BB- 2,001,120
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.375%, 8/15/09
3,270 Romulus Community Schools, Wayne County, Michigan, General 5/13 at 100.00 AA 3,394,587
Obligation Bonds, Series 2003, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
38,920 Total Michigan 21,048,511
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.4% (2.8% OF TOTAL INVESTMENTS)
8,165 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 8,136,586
Allete Inc., Series 2004, 4.950%, 7/01/22
Minneapolis-St. Paul Housing and Redevelopment Authority,
Minnesota, Revenue Bonds, HealthPartners Inc., Series 2003:
1,000 6.000%, 12/01/18 12/13 at 100.00 BBB+ 1,082,620
1,050 5.875%, 12/01/29 12/13 at 100.00 BBB+ 1,111,814
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,509,968
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 - FGIC Insured
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,133,560
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 - FGIC Insured
1,375 Minnesota Higher Education Facilities Authority, St. John's 10/15 at 100.00 A2 1,429,436
University Revenue Bonds, Series 2005-6G, 5.000%, 10/01/22
320 Minnesota Housing Finance Agency, Rental Housing Bonds, 8/06 at 101.00 AAA 322,570
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
730 Minnesota Housing Finance Agency, Single Family Mortgage 7/06 at 102.00 AA+ 743,425
Bonds, Series 1996G, 6.250%, 7/01/26 (Alternative
Minimum Tax)
1,020 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 1,032,281
Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
1,330 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 1,351,599
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 1,054,940
Series 2004A, 5.250%, 10/01/19
2,000 Southern Minnesota Municipal Power Agency, Power Supply 6/06 at 100.00 AAA 2,025,140
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11 (ETM)
1,620 St. Louis Park, Minnesota, Revenue Bonds, Park Nicollet 7/14 at 100.00 A 1,695,265
Health Services, Series 2003B, 5.500%, 7/01/25
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,079,490
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
26,010 Total Minnesota 26,708,694
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 2,472,773
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
33
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 6.7% (4.3% OF TOTAL INVESTMENTS)
$ 2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R $ 2,040,040
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 N/R 202,392
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+ 3,010,122
Facilities Revenue Bonds, Freeman Health System, Series 2004,
5.500%, 2/15/24
9,000 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 AAA 9,516,690
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+ 874,591
1,225 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,220,284
2,500 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 2,581,225
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
1,200 Missouri Health and Educational Facilities Authority, Revenue 2/14 at 100.00 BBB+ 1,228,404
Bonds, Lake Regional Health System, Series 2003,
5.125%, 2/15/18
1,250 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 1,315,875
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/21 - AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
1,250 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 1,345,575
2,000 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 2,148,100
4,095 Missouri, General Obligation Refunding Bonds, Fourth State 10/12 at 100.00 AAA 4,286,114
Building, Series 2002A, 5.000%, 10/01/18
4,000 Missouri, Water Pollution Control Revenue Refunding Bonds, 10/12 at 100.00 AAA 4,194,960
Series 2002B, 5.000%, 10/01/18
4,500 St. Louis County Industrial Development Authority, Missouri, 6/06 at 100.00 N/R 4,497,795
Revenue Bonds, Kiel Center Multipurpose Arena, Series 1992,
7.625%, 12/01/09 (Alternative Minimum Tax)
2,200 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 2,267,518
Program, Series 2001A, 5.125%, 7/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
39,085 Total Missouri 40,729,685
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,470 Municipal Energy Agency of Nebraska, Power Supply System 4/13 at 100.00 AAA 1,557,156
Revenue Bonds, Series 2003A, 5.250%, 4/01/23 - FSA Insured
1,000 University of Nebraska, Lincoln, Student Fees and Facilities 11/13 at 100.00 Aa2 1,017,900
Revenue Bonds, Series 2003B, 5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
2,470 Total Nebraska 2,575,056
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.5% (2.3% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 11,319,938
Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) -
MBIA Insured
5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 6,005,127
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
4,000 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 AAA 4,160,280
Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
20,205 Total Nevada 21,485,345
------------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.5% (2.9% OF TOTAL INVESTMENTS)
$ 5,615 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aaa $ 5,910,742
Bonds, Series 2003, 5.125%, 12/15/20 - FSA Insured
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
1,325 5.250%, 9/01/24 9/15 at 100.00 AA- 1,406,779
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,059,370
4,310 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 4,464,772
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 -
AMBAC Insured (Alternative Minimum Tax)
3,400 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,727,862
System Bonds, Series 2003C, 5.500%, 6/15/22
(Pre-refunded 6/15/13)
4,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 4,167,280
5.000%, 1/01/19 - FGIC Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,122,970
5.000%, 1/01/24 - FSA Insured
3,435 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,538,668
Facility Subordinate Lease Revenue Bonds, Ogden Martin
Systems of Union Inc., Series 1998A, 5.350%, 6/01/23 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
26,085 Total New Jersey 27,398,443
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 17.7% (11.4% OF TOTAL INVESTMENTS)
Dormitory Authority of the State of New York, Revenue Bonds,
Marymount Manhattan College, Series 1999:
1,975 6.375%, 7/01/16 - RAAI Insured 7/09 at 101.00 AA 2,132,072
2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 AA 2,243,155
1,500 Dormitory Authority of the State of New York, State and 7/14 at 100.00 AA- 1,582,965
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- 1,274,237
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/30
2,375 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 2,457,626
General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 -
FSA Insured
1,000 Metropolitan Transportation Authority, New York, Transportation No Opt. Call A 1,056,750
Revenue Bonds, Series 2005C, 5.000%, 11/15/16
4,600 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 4,714,310
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
4,250 New York City Municipal Water Finance Authority, New York, 6/16 at 100.00 AA+ 4,394,925
Water and Sewerage System Revenue Bonds, Fiscal
Series 2006D, 5.000%, 6/15/29
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2004B:
6,875 5.000%, 8/01/23 8/13 at 100.00 AAA 7,126,281
7,260 5.000%, 8/01/24 8/13 at 100.00 AAA 7,516,278
2,500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 2,601,700
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/22
4,000 New York City Trust for Cultural Resources, New York, 4/07 at 101.00 AAA 4,104,760
Revenue Bonds, American Museum of Natural History,
Series 1997A, 5.650%, 4/01/27 - MBIA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 1996J:
30 5.875%, 2/15/19 2/08 at 100.00 A+ 30,494
935 5.500%, 2/15/26 No Opt. Call A+ 944,930
8,020 New York City, New York, General Obligation Bonds, 4/07 at 101.00 AAA 8,293,241
Fiscal Series 1997I, 6.250%, 4/15/27 (Pre-refunded 4/15/07)
4,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 A+ 4,226,840
Fiscal Series 2004C, 5.250%, 8/15/20
2,150 New York City, New York, General Obligation Bonds, 3/15 at 100.00 A+ 2,209,405
Fiscal Series 2005J, 5.000%, 3/01/25
5,000 New York City, New York, General Obligation Bonds, 4/15 at 100.00 A+ 5,143,050
Fiscal Series 2005M, 5.000%, 4/01/24
35
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
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+ $ 6,283,380
5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,378,562
5,980 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 6,222,908
Series 2005G, 5.000%, 1/01/26 - FSA Insured
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
3,770 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 3,953,222
2,135 5.000%, 4/01/23 - AMBAC Insured 10/15 at 100.00 AAA 2,232,057
2,835 5.000%, 4/01/24 - AMBAC Insured 10/15 at 100.00 AAA 2,959,428
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- 3,579,452
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,147,180
6,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 6,251,460
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/27 - XLCA Insured
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 6,979,000
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
103,270 Total New York 108,039,668
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6% (1.0% OF TOTAL INVESTMENTS)
2,550 Cumberland County, North Carolina, Hospital Facility Revenue 10/09 at 101.00 A- 2,629,025
Bonds, Cumberland County Hospital System Inc., Cape Fear
Valley Health System, Series 1999, 5.250%, 10/01/19
2,480 Durham Urban Redevelopment Authority, North Carolina, 8/07 at 105.00 AAA 2,625,700
FHA-Insured Mortgage Loan Revenue Bonds, Durham
Hosiery Mill, Series 1987, 7.500%, 8/01/29 (Alternative
Minimum Tax)
635 North Carolina Housing Finance Agency, Single Family Revenue 9/06 at 102.00 AA 648,583
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+ 1,294,188
2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,529,817
------------------------------------------------------------------------------------------------------------------------------------
9,360 Total North Carolina 9,727,313
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.3% (0.1% OF TOTAL INVESTMENTS)
1,605 North Dakota Housing Finance Agency, Home Mortgage 7/10 at 100.00 Aa3 1,611,388
Finance Program Bonds, Series 2000C, 6.150%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.1% (2.7% OF TOTAL INVESTMENTS)
3,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 3,200,580
Obligation Bonds, Series 2004, 5.250%, 12/01/24 -
FSA Insured
Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth
Corporation, Series 2003C:
2,330 5.250%, 5/15/17 - MBIA Insured 5/13 at 100.00 AAA 2,465,606
4,105 5.250%, 5/15/18 - MBIA Insured 5/13 at 100.00 AAA 4,336,276
2,000 Ohio Housing Finance Agency, FHA-Insured Multifamily 1/08 at 102.00 Aa2 2,027,580
Housing Mortgage Revenue Bonds, Courtyards of Kettering,
Series 1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax)
6,250 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,299,813
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
6,600 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 6,819,978
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
24,285 Total Ohio 25,149,833
------------------------------------------------------------------------------------------------------------------------------------
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.1% (0.7% 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- $ 501,735
750 5.375%, 9/01/36 9/16 at 100.00 BBB- 751,710
5,000 Oklahoma State Student Loan Authority, Senior Lien Revenue 6/11 at 102.00 AAA 5,175,350
Bonds, Series 2001A-1, 5.625%, 6/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,250 Total Oklahoma 6,428,795
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.6% (1.1% OF TOTAL INVESTMENTS)
7,860 Multnomah County Hospital Facilities Authority, Oregon, 10/14 at 100.00 AA 8,480,075
Revenue Bonds, Sisters of Providence Health System,
Series 2004, 5.500%, 10/01/21
735 Oregon, General Obligation Veterans Welfare Bonds, 10/06 at 101.00 AA- 745,915
Series 75, 6.000%, 4/01/27
870 Portland, Oregon, Limited Tax General Obligation and 6/06 at 100.00 Aa2 (4) 871,436
Improvement Bonds, Series 1996A, 5.550%, 6/01/16
(Pre-refunded 6/01/06)
------------------------------------------------------------------------------------------------------------------------------------
9,465 Total Oregon 10,097,426
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.5% (1.0% OF TOTAL INVESTMENTS)
3,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,644,655
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 -
MBIA Insured
1,500 Annville-Cleona School District, Lebanon County, Pennsylvania, 3/15 at 100.00 Aaa 1,706,505
General Obligation Bonds, Series 2005, 6.000%, 3/01/28 -
FSA Insured
1,225 Central Dauphin School District, Dauphin County, Pennsylvania, 2/16 at 100.00 AAA 1,477,791
General Obligation Bonds, Series 2006, 6.750%, 2/01/24
(WI/DD, Settling 5/15/06) - MBIA Insured
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AAA 1,182,962
Local Government Revenue Bonds, Series 1997B,
5.700%, 7/01/27 - AMBAC Insured
1,000 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 1,033,490
Series 2005, 5.000%, 9/01/29
------------------------------------------------------------------------------------------------------------------------------------
8,275 Total Pennsylvania 9,045,403
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.7% (1.8% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed Bonds, Series 2002A:
10,000 6.000%, 6/01/23 6/12 at 100.00 BBB 10,473,600
6,000 6.125%, 6/01/32 6/12 at 100.00 BBB 6,310,200
------------------------------------------------------------------------------------------------------------------------------------
16,000 Total Rhode Island 16,783,800
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.8% (6.4% OF TOTAL INVESTMENTS)
14,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 AA 14,450,100
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
15,445 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 17,277,236
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17
(Pre-refunded 12/01/12)
2,500 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AAA 2,574,425
Refunding Bonds, Series 2003A, 5.000%, 5/01/25 -
AMBAC Insured
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/06 at 100.00 AAA 6,985,236
Revenue Bonds, Series 1991, 4.000%, 1/01/23 - MBIA Insured
6,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 6,252,900
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
165 6.875%, 8/01/27 8/13 at 100.00 BBB+ 188,857
550 6.375%, 8/01/34 8/13 at 100.00 BBB+ 610,874
37
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2006 (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) $ 1,566,529
4,450 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,089,287
5,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 5,238,100
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
57,045 Total South Carolina 60,233,544
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 3,317,088
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
1,500 Memphis-Shelby County Airport Authority, Tennessee, 3/10 at 101.00 AAA 1,604,250
Airport Revenue Bonds, Series 1999D, 6.000%, 3/01/19 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,700 Total Tennessee 4,921,338
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.5% (8.1% OF TOTAL INVESTMENTS)
2,290 Austin, Texas, Revenue Bonds, Town Lake Park Community 11/09 at 100.00 AAA 2,458,819
Events Center, Series 1999, 6.000%, 11/15/25 (Pre-refunded
11/15/09) - FGIC Insured
5,000 Brazos River Authority, Texas, Pollution Control Revenue 4/08 at 102.00 AAA 5,239,950
Bonds, Texas Utilities Electric Company, Series 1995C,
5.550%, 6/01/30 (Pre-refunded 4/01/08) - MBIA Insured
(Alternative Minimum Tax)
5,000 Brazos River Authority, Texas, Pollution Control Revenue 5/08 at 102.00 Aaa 5,245,950
Refunding Bonds, Texas Utilities Electric Company,
Series 1998A, 5.550%, 5/01/33 (Pre-refunded 5/01/08) - AMBAC
Insured (Alternative Minimum Tax)
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Baa2 5,981,204
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
10,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 10,910,500
Texas, Environmental Facilities Revenue Bonds, Dow
Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
3,345 Fort Worth, Texas, Water and Sewerage Revenue Bonds, 2/12 at 100.00 AA (4) 3,649,763
Series 2001, 5.625%, 2/15/19 (Pre-refunded 2/15/12)
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/08 at 102.00 BBB- 5,087,350
Disposal Revenue Bonds, Valero Refining and Marketing
Company Project, Series 1997, 5.600%, 12/01/31 (Alternative
Minimum Tax)
Harris County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Memorial Hermann Healthcare System,
Series 2004A:
1,000 5.000%, 12/01/20 12/14 at 100.00 A 1,014,250
1,000 5.000%, 12/01/21 12/14 at 100.00 A 1,012,150
2,500 5.125%, 12/01/22 12/14 at 100.00 A 2,550,375
2,800 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,902,704
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 -
MBIA Insured
4,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 4,221,280
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 4,229,873
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/25 - AMBAC Insured
6,185 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 AAA 6,429,122
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- 816,216
1,000 5.125%, 8/15/26 No Opt. Call BBB- 993,680
2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,128,680
Unlimited Tax Schoolhouse Bonds, Series 2001A,
5.250%, 2/15/22 (Pre-refunded 2/15/11)
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 1,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 Baa2 $ 1,020,290
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 4,035,303
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
3,900 Texas, General Obligation Bonds, Veterans Housing Assistance 12/11 at 101.00 Aa1 3,997,266
Program Fund II, Series 2001C-1, 5.200%, 12/01/21
(Alternative Minimum Tax)
6,945 Weatherford Independent School District, Parker County, Texas, 2/11 at 44.73 AAA 2,503,186
Unlimited Tax School Building and Refunding Bonds,
Series 2001, 0.000%, 2/15/25
------------------------------------------------------------------------------------------------------------------------------------
83,660 Total Texas 76,427,911
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.1% OF TOTAL INVESTMENTS)
120 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/06 at 100.00 AAA 120,058
Series 1994B, 6.450%, 7/01/14
325 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101.50 Aaa 326,004
Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax)
180 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 Aaa 180,504
Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
625 Total Utah 626,566
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.5% (6.1% OF TOTAL INVESTMENTS)
15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 15,709,650
Consolidated System Revenue Bonds, Series 2002A,
5.450%, 7/01/37 - AMBAC Insured (Alternative Minimum Tax)
7,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,181,375
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 5,371,500
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
10,080 King County School District 401, Highline, Washington, General 6/12 at 100.00 AAA 10,891,541
Obligation Bonds, Series 2002, 5.500%, 12/01/16 - FGIC Insured
6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 9/12 at 100.00 AAA 7,316,593
5.250%, 9/01/22 - FGIC Insured
2,820 Skagit County Public Hospital District 1, Washington, General 12/14 at 100.00 Aaa 3,036,773
Obligation Bonds, Series 2004A, 5.375%, 12/01/19 -
MBIA Insured
2,500 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 2,618,275
Bonds, Series 2001, 5.125%, 12/01/22 - MBIA Insured
4,905 Washington, Various Purpose General Obligation Bonds, 1/09 at 100.00 Aa1 5,017,374
Series 1999B, 5.000%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
54,770 Total Washington 58,143,081
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.5% (1.6% OF TOTAL INVESTMENTS)
7,000 Harrison County Commission, West Virginia, Solid Waste 5/06 at 100.00 AAA 7,001,610
Disposal Revenue Bonds, Potomac Edison Company - Harrison
Station, Series 1993B, 6.250%, 5/01/23 - AMBAC Insured
(Alternative Minimum Tax)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,092,350
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue 4/09 at 101.00 AAA 1,043,130
Bonds, West Penn Power Company Pleasants Station Project,
Series 1999E, 5.500%, 4/01/29 - AMBAC Insured (Alternative
Minimum Tax)
2,355 West Virginia University, Unlimited Tax General Revenue Bonds, 10/14 at 100.00 AAA 2,447,622
Student Fees, Series 2004C, 5.000%, 10/01/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,355 Total West Virginia 15,584,712
------------------------------------------------------------------------------------------------------------------------------------
39
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 4,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/09 at 101.00 BBB+ $ 4,083,840
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 305,415
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 1,063,570
Bonds, Fort Healthcare Inc., Series 2004, 5.750%, 5/01/24
3,215 Wisconsin Health and Educational Facilities Authority, Revenue 2/07 at 102.00 AAA 3,316,530
Bonds, Marshfield Clinic, Series 1997, 5.625%, 2/15/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,530 Total Wisconsin 8,769,355
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.2% OF TOTAL INVESTMENTS)
2,750 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB- 2,872,870
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,023,595 Total Investments (cost $907,758,957) - 154.6% 946,502,472
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 12,577,489
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.7)% (347,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $612,079,961
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
40
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.5% (2.2% OF TOTAL INVESTMENTS)
$ 5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 5,412,495
Bonds, Series 2001, 5.750%, 12/01/16
2,395 Alabama Housing Finance Authority, FNMA Multifamily Housing 2/11 at 102.00 AAA 2,488,980
Revenue Bonds, South Bay Apartments, Series 2000K,
5.950%, 2/01/33 (Alternative Minimum Tax)
11,895 Alabama Special Care Facilities Financing Authority, 7/06 at 101.00 Aaa 12,024,418
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)
------------------------------------------------------------------------------------------------------------------------------------
19,440 Total Alabama 19,925,893
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9% (0.5% OF TOTAL INVESTMENTS)
1,665 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AAA 1,702,862
Bonds, Series 2005A, 5.000%, 12/01/30 - FGIC Insured
3,065 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA 3,233,912
Bonds, Series 2003E, 5.250%, 12/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,730 Total Alaska 4,936,774
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.6% (1.0% OF TOTAL INVESTMENTS)
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,137,650
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/31 - MBIA Insured
4,100 Salt River Project Agricultural Improvement and Power District, 12/13 at 100.00 AAA 4,263,836
Arizona, Electric System Revenue Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,100 Total Arizona 9,401,486
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
45 Arkansas Development Finance Authority, FHA-Insured or 8/06 at 100.00 AA+ 46,109
VA Guaranteed Single Family Mortgage Revenue Refunding
Bonds, Series 1991A, 8.000%, 8/15/11
44 Jacksonville Residential Housing Facilities Board, Arkansas, 7/06 at 100.00 Aaa 43,952
FNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1993A-2,
7.900%, 1/01/11
93 Lonoke County Residential Housing Facilities Board, Arkansas, 10/06 at 102.00 Aaa 94,561
FNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
182 Total Arkansas 184,622
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.5% (5.4% OF TOTAL INVESTMENTS)
1,800 California Department of Water Resources, Power Supply 5/12 at 101.00 AAA 1,966,086
Revenue Bonds, Series 2002A, 5.500%, 5/01/14 -
AMBAC Insured
17,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 17,072,249
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,094,100
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
12,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/22 8/13 at 100.00 A 12,661,440
4,500 California, General Obligation Bonds, Series 2004, 5.100%, 2/01/34 2/09 at 100.00 A 4,539,690
4,780 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 3,456,179
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14 (ETM)
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 1,113,760
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
41
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,000 Los Angeles Department of Water and Power, California, 7/06 at 100.00 AA- $ 3,004,620
Power System Revenue Bonds, Series 2001A-3,
5.375%, 7/01/20
795 Santa Clara Valley Water District, California, Water Utility 6/10 at 100.00 AA 823,095
System Revenue Bonds, Series 2000A, 5.000%, 6/01/18
1,945 South Gate Public Financing Authority, California, Water No Opt. Call AAA 2,183,904
Revenue Refunding Bonds, Series 1996A,
6.000%, 10/01/12 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
48,820 Total California 48,915,123
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.3% (4.0% OF TOTAL INVESTMENTS)
6,500 Adams 12 Five Star Schools, Adams County, Colorado, General 12/15 at 100.00 AAA 6,628,115
Obligation Bonds, Series 2005, 4.750%, 12/15/23 - FSA Insured
2,000 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA 2,070,400
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
570 Colorado Housing Finance Authority, Single Family Program 10/09 at 105.00 Aa2 576,971
Senior Bonds, Series 1999C-3, 6.750%, 10/01/21
3,040 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,435,504
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
Denver Convention Center Hotel Authority, Colorado, Senior
Revenue Bonds, Convention Center Hotel, Series 2003A:
2,940 5.000%, 12/01/20 (Pre-refunded 12/01/13) - XLCA Insured 12/13 at 100.00 AAA 3,116,518
10,000 5.000%, 12/01/33 (Pre-refunded 12/01/13) - XLCA Insured 12/13 at 100.00 AAA 10,600,400
4,345 El Paso County School District 20, Academy, Colorado, General 12/12 at 100.00 Aaa 4,628,685
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
4,125 Municipal Subdistrict Northern Colorado Water District, 12/07 at 101.00 AAA 4,254,608
Revenue Bonds, Series 1997G, 5.250%, 12/01/15 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,275 Total Colorado 36,099,225
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 3,063,270
Finance Program Bonds, Series 1996C-2, 6.250%, 11/15/18
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 5.6% (3.6% OF TOTAL INVESTMENTS)
6,000 District of Columbia, General Obligation Bonds, No Opt. Call AAA 6,361,440
Series 1993B-2, 5.500%, 6/01/10 - FSA Insured
5 District of Columbia, General Obligation Bonds, Series 1993E, 6/06 at 100.00 AAA 5,009
6.000%, 6/01/09 - CAPMAC Insured
7,215 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 7,254,394
Series 1993A, 6.000%, 6/01/07 - MBIA Insured
1,585 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 1,593,321
Series 1993A, 6.000%, 6/01/07 - MBIA Insured (ETM)
4,250 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 4,358,885
Medlantic Healthcare Group, Series 1993A, 5.750%, 8/15/14 -
MBIA Insured (ETM)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
9,670 0.000%, 4/01/26 - MBIA Insured 4/11 at 42.15 AAA 3,227,749
15,235 0.000%, 4/01/30 - MBIA Insured 4/11 at 32.93 AAA 4,004,824
5,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 5,196,600
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.250%, 10/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
48,960 Total District of Columbia 32,002,222
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.7% (3.7% OF TOTAL INVESTMENTS)
5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 5,125,350
Participation, Series 2003, 5.000%,7/01/28 - MBIA Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,500 Florida State Board of Education, Full Faith and Credit Public 6/06 at 101.00 AAA $ 2,528,375
Education Capital Outlay Bonds, Series 1996A, 5.250%, 6/01/22
(Pre-refunded 6/01/06)
5,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 AAA 5,258,450
Tampa International Airport, Series 2003A, 5.250%, 10/01/18 -
MBIA Insured (Alternative Minimum Tax)
5,000 Martin County Industrial Development Authority, Florida, 6/06 at 101.00 BB+ 5,072,600
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 1,439,961
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.850%, 7/01/20 - FSA Insured (Alternative
Minimum Tax)
3,500 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/15 at 100.00 AAA 3,562,545
Miami International Airport, Series 2005A,
5.000%, 10/01/37 - XLCA Insured (Alternative Minimum Tax)
9,500 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 9,943,365
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,880 Total Florida 32,930,646
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.5% (1.6% OF TOTAL INVESTMENTS)
4,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 4,885,892
Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,880 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call A+ 3,400,992
Bonds, Series 1992B, 8.250%, 1/01/11
5,500 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call AAA 6,173,255
Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Georgia 14,460,139
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,720 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aa2 3,945,767
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13
1,580 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aaa 1,686,334
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
5,300 Total Hawaii 5,632,101
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.1% (9.0% OF TOTAL INVESTMENTS)
4,000 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA 4,482,320
Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured
5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 5,655,950
5.125%, 1/01/26 - FSA Insured (Alternative Minimum Tax)
5,000 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 5,204,850
5.250%, 1/01/28 - FGIC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,714,467
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
Cook County School District 99, Cicero, Illinois, General
Obligation School Bonds, Series 1997:
1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call Aaa 1,863,258
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call Aaa 2,245,465
6,110 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 6,282,974
Mortgage Revenue Bonds, Greek American Nursing Home
Committee, Series 2000A, 7.600%, 4/20/40
1,385 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aaa 1,446,383
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/18 - AMBAC Insured
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,090,240
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
4,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 4,081,200
Medical Center, Series 2002, 5.500%, 5/15/32
43
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Illinois Health Facilities Authority, Revenue Refunding Bonds,
Lutheran General Health System, Series 1993C:
$ 3,045 7.000%, 4/01/08 No Opt. Call A+ $ 3,169,754
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,789,185
720 Illinois Housing Development Authority, Multifamily Program 9/06 at 100.00 A+ 723,146
Bonds, Series 1994-5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly 5/06 at 100.00 A- 3,481,440
Housing Revenue Bonds, Skyline Towers Apartments,
Series 1992B, 6.875%, 11/01/17
9,795 Lake, Cook, Kane and McHenry Counties Community Unit No Opt. Call AAA 10,655,197
School District 220, Barrington, Illinois, School Refunding
Bonds, Series 2002, 5.250%, 12/01/19 - FSA Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
9,500 5.700%, 6/15/24 - MBIA Insured 6/22 at 101.00 AAA 5,833,665
4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,658,812
36,040 0.000%, 6/15/40 - MBIA Insured No Opt. Call AAA 6,604,690
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,732,194
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
109,025 Total Illinois 80,715,190
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.1% (5.8% OF TOTAL INVESTMENTS)
3,965 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 AAA 4,203,891
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
1,500 Indiana Educational Facilities Authority, Revenue Bonds, 10/09 at 101.00 AAA 1,596,285
University of Indianapolis, Series 1999, 5.750%, 10/01/19 -
FSA Insured
22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 23,763,078
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA Insured
3,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 3,473,910
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
2,800 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,867,312
Community Hospitals of Indiana, Series 2005A,
5.000%, 5/01/35 - AMBAC Insured
Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series 2003A:
4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,137,280
6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,194,880
420 Marion County Convention and Recreational Facilities Authority, 6/07 at 102.00 AAA 424,834
Indiana, Excise Tax Lease Rental Revenue Bonds, Series 1997A,
5.000%, 6/01/27 - MBIA Insured
5,000 Metropolitan School District Warren Township Vision 2005 1/11 at 100.00 AAA 5,368,500
School Building Corporation, Marion County, Indiana, First
Mortgage Bonds, Series 2000, 5.500%, 7/15/20
(Pre-refunded 1/15/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
48,685 Total Indiana 52,029,970
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.8% (1.1% OF TOTAL INVESTMENTS)
2,000 Olathe, Kansas, Health Facilities Revenue Bonds, Olathe 9/10 at 100.00 AAA 2,118,360
Medical Center, Series 2000A, 5.500%, 9/01/25 -
AMBAC Insured
6,825 Sedgwick County Unified School District 259, Wichita, Kansas, 9/10 at 100.00 AA 6,352,164
General Obligation Bonds, Series 2000, 3.500%, 9/01/16
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 1,846,548
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,575 Total Kansas 10,317,072
------------------------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.6% (1.7% OF TOTAL INVESTMENTS)
$ 3,070 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA $ 3,218,680
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/20 - AMBAC Insured
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,911,962
Community Development Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds, Sharlo Apartments,
Series 2002A, 6.500%, 6/20/37
5,150 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 5,250,167
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/32
4,565 Orleans Levee District, Louisiana, Levee District General 6/06 at 102.50 AAA 4,707,291
Obligation Bonds, Series 1986, 5.950%, 11/01/14 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,535 Total Louisiana 15,088,100
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.3% (0.8% OF TOTAL INVESTMENTS)
7,520 Maine Educational Loan Marketing Corporation, Student Loan No Opt. Call A2 7,598,960
Revenue Bonds, Subordinate Series 1994B-2,
6.250%, 11/01/06 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.7% (1.7% OF TOTAL INVESTMENTS)
2,905 Maryland Community Development Administration, Housing 1/07 at 102.00 Aa2 2,977,160
Revenue Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Housing 7/07 at 102.00 Aa2 2,975,197
Revenue Bonds, Series 1997A, 6.000%, 7/01/39
(Alternative Minimum Tax)
6,800 Montgomery County Housing Opportunities Commission, 7/06 at 102.00 Aa2 6,964,696
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 2,410,517
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.125%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,920 Total Maryland 15,327,570
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.5% (1.0% OF TOTAL INVESTMENTS)
3,585 Massachusetts Development Finance Agency, Revenue Bonds, 3/15 at 100.00 A 3,565,784
Curry College, Series 2005A, 5.000%, 3/01/35 - ACA Insured
5,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 5,066,800
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,585 Total Massachusetts 8,632,584
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.5% (4.1% OF TOTAL INVESTMENTS)
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 6,170,820
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 -
MBIA Insured
1,535 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/07 at 101.00 AAA 1,573,160
Bonds, Series 1997A, 5.000%, 7/01/27 (Pre-refunded
7/01/07) - MBIA Insured
8,915 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/07 at 101.00 AAA 9,052,024
Bonds, Series 1997A, 5.000%, 7/01/27 - MBIA Insured
Hancock Hospital Finance Authority, Michigan, FHA-Insured
Mortgage Hospital Revenue Bonds, Portage Health System Inc.,
Series 1998:
740 4.625%, 8/01/18 - MBIA Insured 8/08 at 100.00 AAA 741,369
4,400 5.450%, 8/01/47 - MBIA Insured 8/08 at 100.00 AAA 4,527,556
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,145,750
Facilities Program, Series 2003II, 5.000%, 10/15/29 -
MBIA Insured
10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- 10,032,540
Bonds, Detroit Medical Center Obligated Group,
Series 1998A, 5.250%, 8/15/23
------------------------------------------------------------------------------------------------------------------------------------
37,090 Total Michigan 37,243,219
------------------------------------------------------------------------------------------------------------------------------------
45
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 1,025 Minneapolis-St. Paul Housing Finance Board, Minnesota, 11/07 at 102.00 AAA $ 1,046,494
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 3,660,370
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,525 Total Minnesota 4,706,864
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,285 Jones County, Mississippi, Hospital Revenue Bonds, South 12/07 at 100.00 BBB+ 1,305,432
Central Regional Medical Center, Series 1997,
5.350%, 12/01/10
2,000 Mississippi Higher Education Assistance Corporation, 9/06 at 100.00 Aaa 2,002,620
Student Loan Revenue Bonds, Senior Series 1993B,
5.800%, 9/01/06 (Alternative Minimum Tax)
1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,873,313
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
5,180 Mississippi, General Obligation Refunding Bonds, No Opt. Call AA 5,739,388
Series 2002A, 5.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
10,340 Total Mississippi 10,920,753
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,000 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 3,097,470
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
2,000 St. Louis, Missouri, Airport Revenue Bonds, Airport 7/11 at 100.00 AAA 2,045,120
Development Program, Series 2001A, 5.000%, 7/01/26 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Missouri 5,142,590
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6% (1.0% OF TOTAL INVESTMENTS)
9,000 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call AAA 9,134,460
Loan Program, Series 1993A-5A, 6.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.5% (2.9% OF TOTAL INVESTMENTS)
10,420 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,330,812
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded
6/15/12) - MBIA Insured
4,500 Clark County School District, Nevada, General Obligation No Opt. Call AAA 5,036,220
School Improvement Bonds, Series 1991A, 7.000%, 6/01/10 -
MBIA Insured
7,000 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 7,253,820
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
5,425 Director of Nevada State Department of Business and Industry, No Opt. Call AAA 2,155,515
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 0.000%, 1/01/25 - AMBAC Insured
270 Nevada Housing Division, Single Family Mortgage Bonds, 10/06 at 100.00 A1 270,319
Senior Series 1992B-1, 6.200%, 10/01/15
------------------------------------------------------------------------------------------------------------------------------------
27,615 Total Nevada 26,046,686
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.2% (2.7% OF TOTAL INVESTMENTS)
1,100 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 1,212,398
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
880 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AAA 1,011,243
6.500%, 1/01/16 - MBIA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
300 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 345,681
2,345 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 2,702,073
13,775 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 14,292,801
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
3,995 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 4,436,807
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
22,395 Total New Jersey 24,001,003
------------------------------------------------------------------------------------------------------------------------------------
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.5% (6.1% OF TOTAL INVESTMENTS)
$ 1,200 Hempstead Industrial Development Agency, New York, 12/10 at 100.00 BB+ $ 1,243,008
Resource Recovery Revenue Refunding Bonds, American
Ref-Fuel Company of Hempstead LP, Series 2001,
5.000%, 12/01/10 (Mandatory put 6/01/10)
11,825 New York City Transitional Finance Authority, New York, 5/08 at 101.00 AAA 12,050,503
Future Tax Secured Bonds, Fiscal Series 1998C,
5.000%, 5/01/26
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 1998C:
1,350 5.000%, 5/01/26 (Pre-refunded 5/01/08) 5/08 at 101.00 AAA 1,398,020
35 5.000%, 5/01/26 (Pre-refunded 5/01/08) 5/08 at 101.00 AAA 36,245
3,705 5.000%, 5/01/26 (Pre-refunded 5/01/08) 5/08 at 101.00 AAA 3,835,305
220 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AAA 239,633
Future Tax Secured Bonds, Fiscal Series 2000A,
5.875%, 11/01/16 (Pre-refunded 5/01/10)
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2000C:
3,630 5.875%, 11/01/16 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 3,956,773
5,000 5.500%, 11/01/24 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 5,377,900
1,395 New York State Medical Care Facilities Finance Agency, 8/06 at 100.00 AAA 1,399,548
FHA-Insured Mortgage Revenue Bonds, Hospital and
Nursing Home Projects, Series 1992B, 6.200%, 8/15/22
4,200 New York State Medical Care Facilities Finance Agency, 8/06 at 101.00 AA 4,248,720
FHA-Insured Mortgage Revenue Bonds, Kenmore Mercy
Hospital, Series 1995B, 6.150%, 2/15/35
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
5,400 5.500%, 6/01/16 6/10 at 100.00 AA- 5,685,012
2,500 5.500%, 6/01/18 6/12 at 100.00 AA-
5,000 New York State Urban Development Corporation, Service 1/17 at 100.00 AA- 5,326,500
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
6,250 Port Authority of New York and New Jersey, Special No Opt. Call AAA 6,979,000
Project Bonds, JFK International Air Terminal LLC,
Sixth Series 1997, 6.250%, 12/01/15 - MBIA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
51,710 Total New York 54,451,242
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.2% (2.0% OF TOTAL INVESTMENTS)
2,675 Charlotte, North Carolina, Water and Sewerage System 6/11 at 101.00 AAA 2,903,392
Revenue Bonds, Series 2001, 5.500%, 6/01/13
2,445 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 2,531,431
of Participation, Correctional Facilities, Series 2004A,
5.000%, 2/01/21
2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 2,184,480
Revenue Bonds, Series 1992, 6.000%, 1/01/11 - MBIA Insured
10,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 10,590,200
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
17,120 Total North Carolina 18,209,503
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.3% (1.5% OF TOTAL INVESTMENTS)
9,000 Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101.00 AAA 9,147,420
Series 2000A, 5.000%, 1/01/31 - FSA Insured
3,000 Franklin County, Ohio, Development Revenue Bonds, American 10/09 at 101.00 A 3,158,910
Chemical Society, Series 1999, 5.800%, 10/01/14
1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing 7/06 at 102.00 Aa2 1,008,670
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total Ohio 13,315,000
------------------------------------------------------------------------------------------------------------------------------------
47
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.7% (0.4% OF TOTAL INVESTMENTS)
$ 330 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa $ 345,012
Revenue Bonds, Homeownership Loan Program,
Series 2000C-2, 6.200%, 9/01/28 (Alternative Minimum Tax)
3,340 Tulsa Industrial Authority, Oklahoma, Hospital Revenue No Opt. Call AAA 3,597,347
Refunding Bonds, Hillcrest Medical Center, Series 1996,
6.500%, 6/01/09 - CONNIE LEE/AMBAC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
3,670 Total Oklahoma 3,942,359
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,530 Beaver Area School District, Beaver County, Pennsylvania, 7/06 at 100.00 AAA 1,534,345
General Obligation Bonds, Series 2001, 5.000%, 1/15/20
(Pre-refunded 7/15/06) - FGIC Insured
5,000 Pennsylvania Economic Development Financing Authority, 7/06 at 100.00 BB 4,999,400
Senior Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994A, 6.400%, 1/01/09
(Alternative Minimum Tax)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 2,826,902
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,130 Total Pennsylvania 9,360,647
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 3.1% (2.0% OF TOTAL INVESTMENTS)
12,390 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 14,317,140
Refunding Bonds, Series 1997, 6.500%, 7/01/13 - MBIA Insured
3,470 University of Puerto Rico, University System Revenue Bonds, 6/10 at 100.00 AAA 3,722,269
Series 2000O, 5.750%, 6/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,860 Total Puerto Rico 18,039,409
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.7% (2.3% OF TOTAL INVESTMENTS)
20,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 20,992,999
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.2% (2.7% OF TOTAL INVESTMENTS)
4,120 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 4,355,087
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/23 - MBIA Insured
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation 6/14 at 100.00 AAA 3,071,040
Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 -
FGIC Insured
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Bonds, Series 1991:
5,000 6.250%, 1/01/21 - FGIC Insured No Opt. Call AAA 5,929,100
5,750 4.000%, 1/01/23 - MBIA Insured 7/06 at 100.00 AAA 5,284,883
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 5,513,716
Revenue Refunding Bonds, Series 1998A, 5.500%, 1/01/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,955 Total South Carolina 24,153,826
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.4% (0.4% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,844,115
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.3% (0.3% OF TOTAL INVESTMENTS)
1,500 Metropolitan Government of Nashville-Davidson County, 5/08 at 102.00 AA 1,561,710
Tennessee, Electric System Revenue Bonds, Series 1998A,
5.200%, 5/15/23
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 18.5% (11.8% OF TOTAL INVESTMENTS)
4,500 Alliance Airport Authority, Texas, Special Facilities Revenue 6/06 at 100.00 CCC 4,364,325
Bonds, American Airlines Inc., Series 1990,
7.500%, 12/01/29 (Alternative Minimum Tax)
4,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 4,080,120
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
3,345 Columbia-Brazoria Independent School District, Texas, 2/09 at 100.00 AAA 3,353,764
Unlimited Tax School Building Bonds, Series 1999,
4.750%, 2/01/25
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 2,250 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/14 at 100.00 AAA $ 2,274,075
Bonds, Series 2004B, 5.000%, 11/01/27 - FSA Insured
(Alternative Minimum Tax)
8,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 8,593,840
Refunding and Improvement Bonds, Series 2001A,
5.875%, 11/01/19 - FGIC Insured (Alternative Minimum Tax)
6,000 Garland Housing Finance Corporation, Texas, Multifamily 12/11 at 101.00 N/R 6,454,500
Housing Revenue Bonds, Legacy Pointe Apartments,
Series 2000, 7.500%, 6/01/40 (Alternative Minimum Tax)
3,750 Harris County Flood Control District, Texas, General Obligation 10/13 at 100.00 AA+ 3,888,675
Bonds, Series 2003, 5.000%, 10/01/23
7,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 7,123,060
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
28,305 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 9,410,846
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/28 - AMBAC Insured
5,000 Houston, Texas, Junior Lien Water and Sewerage System 12/07 at 102.00 AAA 5,193,350
Revenue Refunding Bonds, Series 1997D, 5.000%, 12/01/25
(Pre-refunded 12/01/07) - FGIC Insured
7,500 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 8,862,900
Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 -
FSA Insured (ETM)
6,950 Liberty County Housing Development Corporation, Texas, 6/34 at 100.00 N/R 5,586,202
Multifamily Housing Revenue Bonds, Series 1999,
7.250%, 6/01/34
190 Midland Housing Finance Corporation, Texas, Single Family 5/06 at 103.00 Aaa 195,816
Mortgage Revenue Refunding Bonds, Series 1992A,
8.450%, 12/01/11
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds, Series
2001:
2,300 5.500%, 2/15/21 2/11 at 100.00 AAA 2,439,311
2,400 5.500%, 2/15/23 2/11 at 100.00 AAA 2,545,368
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 3,088,949
3,000 5.125%, 2/15/31 8/11 at 100.00 Aaa 3,070,260
6,000 Raven Hills Higher Education Corporation, Texas, Student 8/12 at 100.00 Aaa 6,174,840
Housing Revenue Bonds, Angelo State University - Texan
Hall LLC, Series 2002A, 5.000%, 8/01/25 - MBIA Insured
3,410 Retama Development Corporation, Texas, Special Facilities 12/12 at 100.00 AAA 4,003,340
Revenue Bonds, Retama Park Racetrack, Series 1993,
8.750%, 12/15/18 (Pre-refunded 12/15/12) (5)
1,800 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 1,944,054
System Revenue Refunding Bonds, Series 2002A,
5.750%, 10/01/21 - RAAI Insured
4,700 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,819,803
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
8,500 Travis County Health Facilities Development Corporation, 7/06 at 100.00 Aaa 8,588,995
Texas, Hospital Revenue Bonds, Daughters of Charity
National Health System, Series 1993B, 6.000%, 11/15/22 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
121,925 Total Texas 106,056,393
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 6.2% (4.0% OF TOTAL INVESTMENTS)
4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding 12/08 at 101.00 N/R 4,550,618
Bonds, South Davis Community Hospital Project, Series 1998,
5.750%, 12/15/18
5,065 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 A+ (4) 5,187,522
Bonds, Series 1996A, 6.150%, 7/01/14 (ETM)
2,935 Intermountain Power Agency, Utah, Power Supply Revenue 7/06 at 102.00 A+ (4) 3,005,469
Bonds, Series 1996A, 6.150%, 7/01/14 (Pre-refunded 7/01/06)
5,820 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 6,070,202
Refunding Bonds, Series 1997B, 5.750%, 7/01/19
(Pre-refunded 7/01/07) - MBIA Insured
11,750 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 12,227,403
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 -
MBIA Insured
49
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS April 30, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH (continued)
$ 1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa $ 1,490,994
Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 -
AMBAC Insured
570 Utah Housing Finance Agency, Single Family Mortgage 7/10 at 100.00 AA 571,699
Bonds, Series 2000G, 5.875%, 7/01/27 (Alternative
Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage
Bonds, Series 2001C:
1,915 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 1,954,813
590 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aa2 602,980
------------------------------------------------------------------------------------------------------------------------------------
34,925 Total Utah 35,661,700
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.8% (1.1% OF TOTAL INVESTMENTS)
8,190 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 AAA 8,364,938
Series 2002, 5.000%, 1/15/35 - AMBAC Insured
1,775 Virginia Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 1,814,210
Refunding Bonds, U.S. Route 58 Corridor Development
Program, Series 1997C, 5.125%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
9,965 Total Virginia 10,179,148
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.2% (6.5% OF TOTAL INVESTMENTS)
1,855 Chelan County Public Utility District 1, Washington, Hydro 7/09 at 101.00 AA 1,973,219
Consolidated System Revenue Bonds, Series 1999A,
6.200%, 7/01/34 (Alternative Minimum Tax)
1,655 Everett, Washington, Limited Tax General Obligation Bonds, 9/07 at 100.00 Aaa 1,681,927
Series 1997, 5.125%, 9/01/17 - FSA Insured
6,000 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 AAA 6,150,300
Bonds, Wanapum Hydroelectric Development, Series 2005A,
5.000%, 1/01/34 - FGIC Insured
1,604 Skagit County Housing Authority, Washington, GNMA 5/06 at 103.00 AAA 1,654,879
Collateralized Mortgage Loan Nursing Facility Revenue
Bonds, Sea Mar Community Health Centers, Series 1993,
7.000%, 6/20/35
1,500 Snohomish County School District 6, Mukilteo, Washington, No Opt. Call AAA 1,650,975
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 8,914,720
Bonds, Series 2001A, 5.750%, 1/01/20 (Pre-refunded 1/01/11) -
FSA Insured
4,705 Tacoma, Washington, Sewerage Revenue Refunding Bonds, No Opt. Call AAA 5,185,428
Series 1994B, 8.000%, 12/01/08 - FGIC Insured
Washington Public Power Supply System, Revenue Refunding
Bonds, Nuclear Project 2, Series 1990A:
6,080 7.250%, 7/01/06 (ETM) No Opt. Call Aaa 6,116,906
395 7.250%, 7/01/06 (ETM) No Opt. Call Aaa 397,398
11,000 Washington Public Power Supply System, Revenue Refunding No Opt. Call Aaa 12,027,180
Bonds, Nuclear Project 3, Series 1993B, 7.000%, 7/01/09
4,700 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 4,860,082
Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
1,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 1,024,130
Bonds, Harrison Memorial Hospital, Series 1998,
5.000%, 8/15/28 - AMBAC Insured
2,000 Washington State Healthcare Facilities Authority, Revenue 8/08 at 102.00 AA 2,026,060
Bonds, Highline Community Hospital, Series 1998,
5.000%, 8/15/21 - RAAI Insured
4,710 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 5,122,832
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
55,359 Total Washington 58,786,036
------------------------------------------------------------------------------------------------------------------------------------
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 500 Wisconsin Health and Educational Facilities Authority, 12/06 at 102.00 AAA $ 514,480
Revenue Bonds, Medical College of Wisconsin Inc.,
Series 1996, 5.500%, 12/01/26 - MBIA Insured
7,500 Wisconsin Health and Educational Facilities Authority, 2/12 at 101.00 AAA 7,779,975
Revenue Bonds, Ministry Healthcare Inc., Series 2002A,
5.250%, 2/15/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,000 Total Wisconsin 8,294,455
------------------------------------------------------------------------------------------------------------------------------------
$ 935,146 Total Investments (cost $863,178,822) - 156.7% 899,305,064
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 12,877,554
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.0)% (338,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $573,782,618
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The issuer has received a proposed adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
51
Statement of
ASSETS AND LIABILITIES April 30, 2006 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,403,996,334,
$907,758,957 and $863,178,822, respectively) $1,454,842,692 $946,502,472 $899,305,064
Receivables:
Interest 22,792,742 13,907,486 15,763,594
Investments sold 1,098,030 10,134,515 145,103
Other assets 140,124 93,268 78,337
------------------------------------------------------------------------------------------------------------------------------
Total assets 1,478,873,588 970,637,741 915,292,098
------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 610,469 1,598,228 2,304,112
Payable for investments purchased 8,363,603 9,124,156 --
Accrued expenses:
Management fees 731,605 484,312 460,556
Other 325,994 176,713 177,811
Preferred share dividends payable 265,419 174,371 167,001
------------------------------------------------------------------------------------------------------------------------------
Total liabilities 10,297,090 11,557,780 3,109,480
------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 525,000,000 347,000,000 338,400,000
------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 943,576,498 $612,079,961 $573,782,618
==============================================================================================================================
Common shares outstanding 63,785,430 41,093,661 43,236,703
==============================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.79 $ 14.89 $ 13.27
==============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 410,937 $ 432,367
Paid-in surplus 901,333,523 570,811,675 587,220,598
Undistributed (Over-distribution of) net investment income 1,775,090 1,341,995 1,140,192
Accumulated net realized gain (loss) from investments (11,016,327) 771,839 (51,136,781)
Net unrealized appreciation (depreciation) of investments 50,846,358 38,743,515 36,126,242
------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 943,576,498 $612,079,961 $573,782,618
==============================================================================================================================
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.
52
Statement of
OPERATIONS Six Months Ended April 30, 2006 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $36,234,547 $23,708,539 $23,131,971
------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,442,289 2,946,842 2,797,489
Preferred shares - auction fees 651,506 429,268 419,914
Preferred shares - dividend disbursing agent fees 29,754 33,947 39,581
Shareholders' servicing agent fees and expenses 87,647 31,553 44,323
Custodian's fees and expenses 183,797 118,414 91,286
Directors' fees and expenses 14,994 10,005 8,629
Professional fees 104,420 21,039 34,018
Shareholders' reports - printing and mailing expenses 62,672 37,388 39,144
Stock exchange listing fees 11,781 7,590 7,985
Investor relations expense 45,688 30,854 28,305
Other expenses 36,452 25,672 20,484
------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 5,671,000 3,692,572 3,531,158
Custodian fee credit (5,796) (10,454) (43,341)
------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,665,204 3,682,118 3,487,817
------------------------------------------------------------------------------------------------------------------------------
Net investment income 30,569,343 20,026,421 19,644,154
------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (4,057,478) 771,870 47,560
Change in net unrealized appreciation (depreciation) of investments 2,407,335 (3,870,697) (3,867,869)
------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (1,650,143) (3,098,827) (3,820,309)
------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (7,669,597) (4,606,394) (4,884,979)
From accumulated net realized gains -- (492,501) --
------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (7,669,597) (5,098,895) (4,884,979)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $21,249,603 $11,828,699 $10,938,866
==============================================================================================================================
See accompanying notes to financial statements.
53
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
4/30/06 10/31/05 4/30/06 10/31/05 4/30/06 10/31/05
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 30,569,343 $ 62,548,870 $ 20,026,421 $ 40,512,147 $ 19,644,154 $ 39,204,634
Net realized gain (loss) from
investments (4,057,478) 15,187,341 771,870 2,929,207 47,560 (6,218,283)
Change in net unrealized appreciation
(depreciation) of investments 2,407,335 (31,573,368) (3,870,697) (13,011,728) (3,867,869) 2,030,792
Distributions to Preferred Shareholders:
From net investment income (7,669,597) (10,275,032) (4,606,394) (6,593,605) (4,884,979) (6,741,182)
From accumulated net realized gains -- -- (492,501) (333,998) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 21,249,603 35,887,811 11,828,699 23,502,023 10,938,866 28,275,961
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (25,118,709) (57,980,964) (16,523,580) (38,210,760) (15,673,308) (35,043,351)
From accumulated net realized gains -- -- (2,506,898) (3,990,843) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (25,118,709) (57,980,964) (19,030,478) (42,201,603) (15,673,308) (35,043,351)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,869,106) (22,093,153) (7,201,779) (18,699,580) (4,734,442) (6,767,390)
Net assets applicable to Common
shares at the beginning of period 947,445,604 969,538,757 619,281,740 637,981,320 578,517,060 585,284,450
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $943,576,498 $947,445,604 $612,079,961 $619,281,740 $573,782,618 $578,517,060
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 1,775,090 $ 3,994,053 $ 1,341,995 $ 2,445,548 $ 1,140,192 $ 2,054,325
===================================================================================================================================
See accompanying notes to financial statements.
54
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share New York Stock Exchange symbols are Nuveen Premium Income Municipal Fund,
Inc. (NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen
Premium Income Municipal Fund 4, Inc. (NPT). The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When market
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service or, in the absence of a pricing service for a
particular security, the Board of Directors of the Funds, or its designee, may
establish fair market value using a wide variety of market data including yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, market quotes or indications of value from securities
dealers, evaluations of anticipated cash flows or collateral, general market
conditions and other information and analysis, including the obligor's credit
characteristics considered relevant by the pricing service or the Board of
Directors' designee. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or 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 and delayed delivery purchase commitments. At April 30, 2006,
Premium Income (NPI) and Premium Income 2 (NPM) had outstanding
when-issued/delayed delivery purchase commitments of $8,363,603 and $9,124,156,
respectively. There were no such outstanding purchase commitments in Premium
Income 4 (NPT).
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of Fund shareholders.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
55
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------
Number of shares:
Series M 3,800 2,000 2,200
Series M2 2,000 -- --
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series W2 -- -- 520
Series TH 3,800 3,000 2,680
Series F 3,800 2,000 1,800
Series F2 -- 1,880 1,328
-------------------------------------------------------------------------------
Total 21,000 13,880 13,536
===============================================================================
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not invest in
any such instruments during the six months ended April 30, 2006.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
56
2. FUND SHARES
None of the Funds engaged in transactions in their own shares during the six
months ended April 30, 2006, nor during the fiscal year ended October 31, 2005.
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended April 30, 2006, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------
Purchases $109,056,099 $90,240,580 $12,854,099
Sales and maturities 116,770,720 96,879,213 12,367,166
===============================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At April 30, 2006, the cost of investments was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------
Cost of investments $1,402,918,011 $907,384,619 $862,610,208
===============================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2006, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------
Gross unrealized:
Appreciation $57,772,323 $40,820,242 $40,043,033
Depreciation (5,847,642) (1,702,389) (3,348,177)
-------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $51,924,681 $39,117,853 $36,694,856
===============================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2005, 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 * $7,430,722 $5,088,588 $4,400,045
Undistributed net ordinary income ** 98,830 26,320 4,412
Undistributed net long-term capital gains -- 2,999,374 --
===================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 3, 2005, paid on November 1, 2005.
** 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 fiscal year ended October 31,
2005, the Funds' last tax year end, 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 $68,878,627 $45,079,031 $42,030,160
Distributions from net ordinary income ** -- 126,711 --
Distributions from net long-term capital gains -- 4,324,841 --
========================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At October 31, 2005, the Funds' last tax year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
PREMIUM PREMIUM
INCOME INCOME 4
(NPI) (NPT)
-------------------------------------------------------------------------------
Expiration year:
2008 $ -- $ 2,151,015
2009 -- --
2010 695,347 18,079,555
2011 6,263,502 24,792,603
2012 -- --
2013 -- 6,161,830
-------------------------------------------------------------------------------
Total $6,958,849 $51,185,003
===============================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., and a specific fund-level component, based only on the amount
of assets within each individual Fund. This pricing structure enables Nuveen
fund shareholders to benefit from growth in the assets within each individual
fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
58
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2006, the complex-level fee rate was .1888%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to their Directors who are affiliated with the Adviser or
to their Officers, all of whom receive remuneration for their services to the
Funds from the Adviser or its affiliates. The Board of Directors has adopted a
deferred compensation plan for independent Directors that enables Directors to
elect to defer receipt of all or a portion of the annual compensation they are
entitled to receive from certain Nuveen advised funds. Under the plan, deferred
amounts are treated as though equal dollar amounts had been invested in shares
of select Nuveen advised funds.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2006, to shareholders of record on
May 15, 2006, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------
Dividend per share $.0625 $.0640 $.0575
===============================================================================
59
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- ----------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
=================================================================================================================================
PREMIUM INCOME (NPI)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) $14.85 $ .48 $ (.03) $(.12) $ -- $ .33 $(.39) $-- $ (.39)
2005 15.20 .98 (.26) (.16) -- .56 (.91) -- (.91)
2004 14.87 1.01 .36 (.08) -- 1.29 (.96) -- (.96)
2003 14.87 1.05 (.03) (.07) -- .95 (.95) -- (.95)
2002 15.27 1.10 (.48) (.11) -- .51 (.91) -- (.91)
2001 14.23 1.12 .98 (.26) -- 1.84 (.80) -- (.80)
PREMIUM INCOME 2 (NPM)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 15.07 .49 (.09) (.11) (.01) .28 (.40) (.06) (.46)
2005 15.53 .98 (.24) (.16) (.01) .57 (.93) (.10) (1.03)
2004 15.09 1.02 .48 (.08) -- 1.42 (.98) -- (.98)
2003 15.27 1.08 (.10) (.07) (.01) .90 (.98) (.10) (1.08)
2002 15.53 1.17 (.30) (.11) (.01) .75 (.96) (.05) (1.01)
2001 14.75 1.21 .73 (.27) -- 1.67 (.89) -- (.89)
PREMIUM INCOME 4 (NPT)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 13.38 .45 (.09) (.11) -- .25 (.36) -- (.36)
2005 13.54 .91 (.10) (.16) -- .65 (.81) -- (.81)
2004 13.15 .94 .40 (.08) -- 1.26 (.87) -- (.87)
2003 13.46 .93 (.32) (.07) -- .54 (.85) -- (.85)
2002 14.22 1.00 (.80) (.11) -- .09 (.85) -- (.85)
2001 13.54 1.08 .66 (.25) -- 1.49 (.81) -- (.81)
=================================================================================================================================
Total Returns
-------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value** Value**
======================================================================
PREMIUM INCOME (NPI)
----------------------------------------------------------------------
Year Ended 10/31:
2006(a) $14.79 $13.54 0.39% 2.24%
2005 14.85 13.87 3.37 3.71
2004 15.20 14.30 8.82 9.00
2003 14.87 14.06 6.48 6.58
2002 14.87 14.11 5.51 3.47
2001 15.27 14.25 26.60 13.22
PREMIUM INCOME 2 (NPM)
----------------------------------------------------------------------
Year Ended 10/31:
2006(a) 14.89 13.70 1.39 1.86
2005 15.07 13.97 2.98 3.71
2004 15.53 14.57 9.48 9.77
2003 15.09 14.25 6.57 6.07
2002 15.27 14.40 5.59 5.03
2001 15.53 14.61 17.31 11.63
PREMIUM INCOME 4 (NPT)
----------------------------------------------------------------------
Year Ended 10/31:
2006(a) 13.27 12.17 1.76% 1.88%
2005 13.38 12.31 3.07 4.87
2004 13.54 12.74 8.98 9.90
2003 13.15 12.52 3.09 4.12
2002 13.46 12.97 .52 .76
2001 14.22 13.75 18.68 11.28
======================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------
Before Credit/Refund After Credit/Refund***
-------------------------- --------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
=================================================================================================================
PREMIUM INCOME (NPI)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) $943,576 1.20%* 6.45%* 1.20%* 6.45%* 7%
2005 947,446 1.19 6.44 1.18 6.45 20
2004 969,539 1.21 6.76 1.20 6.76 17
2003 948,312 1.22 7.02 1.22 7.02 24
2002 948,726 1.22 7.39 1.22 7.39 4
2001 974,272 1.22 7.49 1.21 7.50 20
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 612,080 1.20* 6.49* 1.19* 6.49* 9
2005 619,282 1.20 6.40 1.19 6.40 15
2004 637,981 1.21 6.75 1.21 6.76 23
2003 619,916 1.22 7.06 1.21 7.07 21
2002 627,659 1.22 7.70 1.21 7.71 21
2001 638,365 1.23 7.93 1.21 7.95 12
PREMIUM INCOME 4 (NPT)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006(a) 573,783 1.23* 6.80* 1.21* 6.82* 1
2005 578,517 1.26 6.63 1.22 6.66 7
2004 585,284 1.30 7.10 1.29 7.10 6
2003 568,776 1.36 6.95 1.35 6.96 17
2002 581,961 1.36 7.36 1.35 7.37 16
2001 614,989 1.34 7.73 1.33 7.74 10
=================================================================================================================
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:
2006(a) $525,000 $25,000 $69,932
2005 525,000 25,000 70,116
2004 525,000 25,000 71,169
2003 525,000 25,000 70,158
2002 525,000 25,000 70,177
2001 525,000 25,000 71,394
PREMIUM INCOME 2 (NPM)
----------------------------------------------------------
Year Ended 10/31:
2006(a) 347,000 25,000 69,098
2005 347,000 25,000 69,617
2004 347,000 25,000 70,964
2003 347,000 25,000 69,663
2002 347,000 25,000 70,220
2001 347,000 25,000 70,992
PREMIUM INCOME 4 (NPT)
----------------------------------------------------------
Year Ended 10/31:
2006(a) 338,400 25,000 67,389
2005 338,400 25,000 67,739
2004 338,400 25,000 68,239
2003 338,400 25,000 67,019
2002 338,400 25,000 67,983
2001 338,400 25,000 70,434
==========================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and legal fee refund, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the six months ended April 30, 2006.
See accompanying notes to financial statements.
60-61 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded 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
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
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.
62
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (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.
MODIFIED 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.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
63
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $145 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/CEF o Interactive planning tools
Logo: NUVEEN Investments
ESA-E-0406D
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.
During this reporting period, the registrant's Board of Directors implemented a
change to the procedures by which shareholders may recommend nominees to the
registrant's board of directors by amending the registrant's by-laws to include
a provision specifying the date by which shareholder nominations for election as
director at a subsequent meeting must be submitted to the registrant.
Shareholders must deliver or mail notice to the registrant not less than
forty-five days nor more than sixty days prior to the first anniversary date of
the date on which the registrant first mailed its proxy materials for the prior
year's annual meeting; provided, however, if an only if the annual meeting is
not scheduled to be held within a period that commences thirty days before the
first anniversary date of the annual meeting for the preceding year and ends
thirty days after such anniversary date (an annual meeting date outside such
period being referred to as an "Other Annual Meeting Date" hereafter), the
shareholder notice must be given no later than the close of business on the date
forty-five days prior to such Other Annual Meeting Date or the tenth business
day following the date such Other Annual Meeting Date is first publicly
announced or disclosed. The shareholder's notice must be in writing and set
forth the name, age, date of birth, business address, residence address and
nationality of the person(s) being nominated and the class or series, number of
all shares of the registrant owned of record or beneficially be each such
person(s), any other information regarding such person required by Item 401 of
Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities
Exchange Act of 1934, as amended, any other information regarding the person(s)
to be nominated that would be required to be disclosed in a proxy statement or
other filings required to be made in connection with solicitation of proxies for
election of directors, and whether such shareholder believes any nominee is or
will be an "interested person" (as that term is defined in the Investment
Company Act of 1940, as amended) of the registrant or sufficient information to
enable the registrant to make that determination and the written and signed
consent of the person(s) to be nominated.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Premium Income Municipal Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: July 7, 2006
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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 7, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 7, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.