UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05570
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Nuveen Premium Income Municipal Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: April 30, 2010
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO]
NUVEEN
INVESTMENTS
Closed-End Funds
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Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report
April 30, 2010
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--------------------- --------------------- -----------------------
NUVEEN PREMIUM NUVEEN PREMIUM NUVEEN PREMIUM
INCOME MUNICIPAL INCOME MUNICIPAL INCOME MUNICIPAL
FUND, INC. FUND 2, INC. FUND 4, INC.
NPI NPM NPT
(APRIL 10)
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OR
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If you receive your Nuveen Fund dividends and statements directly from Nuveen.
[LOGO]
NUVEEN
INVESTMENTS
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The economic environment in which your Fund operates reflects continuing but
uneven economic recovery. The U.S. and other major industrial countries are
experiencing steady but comparatively low levels of economic growth, while
emerging market countries are seeing a resumption of relatively strong economic
expansion. The potential impact of steps being considered by many governments to
counteract the extraordinary governmental spending and credit expansion to deal
with the recent financial and economic crisis is injecting uncertainty into
global financial markets. The implications for future tax rates, government
spending, interest rates and the pace of economic recovery in the U.S. and other
leading economies are extremely difficult to predict at the present time. The
long term health of the global economy depends on restoring some measure of
fiscal discipline around the world, but since all of the corrective steps
require economic pain, it is not surprising that governments are reluctant to
undertake them.
In the near term, governments remain committed to furthering economic recovery
and realizing a meaningful reduction in their national unemployment rates. Such
an environment should produce continued economic growth and, consequently,
attractive investment opportunities. Over the longer term, the larger
uncertainty mentioned earlier carries the risk of unexpected potholes in the
road to sustained recovery. For this reason, Nuveen's investment management
teams are working hard to balance return and risk by building well-diversified
portfolios, among other strategies. I encourage you to read the following
commentary on the management of your Fund. As always, I also encourage you to
contact your financial consultant if you have any questions about your Nuveen
Fund investment. Please consult the Nuveen web site for the most recent
information on your Nuveen Funds at: www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
June 21, 2010
Nuveen Investments 1
Portfolio Managers' Comments
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
PORTFOLIO MANAGERS PAUL BRENNAN AND JOHN WILHELM REVIEW KEY INVESTMENT
STRATEGIES AND THE SIX-MONTH PERFORMANCE OF THESE THREE NATIONAL FUNDS. WITH 20
YEARS OF INDUSTRY EXPERIENCE, INCLUDING TWELVE YEARS AT NUVEEN, PAUL HAS MANAGED
NPI AND NPM SINCE 2006. JOHN, WHO CAME TO NUVEEN IN 2001 WITH 20 YEARS OF
INDUSTRY EXPERIENCE, ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY FOR NPT IN
MARCH 2009.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2010?
Municipal market conditions began to show general signs of improvement
throughout most of the period. This trend was bolstered by the reduced issuance
of tax-exempt municipal debt, due in part to the introduction of the Build
America Bond program in April 2009. Build America Bonds are a new class of
taxable municipal debt created as part of the February 2009 economic stimulus
package. These bonds currently offer municipal issuers a federal subsidy equal
to 35% of the bonds' interest payments and therefore provide issuers with an
attractive alternative to traditional tax-exempt debt. For the six-month period
ended April 30, 2010, taxable Build America Bond issuance totaled $48.9 billion,
accounting for almost 24% of new bonds in the municipal marketplace nationwide.
Despite the constrained issuance of tax-exempt municipal bonds, we continued to
find attractive value opportunities, taking a bottom-up approach to discovering
undervalued sectors and individual credits with the potential to perform
relatively well over the long term. In NPI and NPM, we found value in essential
services bonds such as general obligation (GO) and other tax-supported credits,
health care and transportation (specifically tollroads and airports). In
general, these two Funds focused on purchasing credits with medium to higher
credit quality. NPT also purchased health care bonds as well as student loan and
housing credits. Our emphasis in this Fund was on bonds in a variety of credit
sectors--primarily A, BBB, and below-investment grade and non-rated bonds--in
sectors that have not yet fully participated in the market rally. We believe
these bonds offer strong potential for price appreciation as the economy
recovers.
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS
EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND
OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE
ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
2 Nuveen Investments
Some of the areas of investment opportunity that we discovered during this
period were created by the parameters of the Build America Bond program. For
example, tax-exempt supply was usually more plentiful in the health care sector
because, as 501(c)(3) (nonprofit) organizations, hospitals generally do not
qualify for the Build America Bond program and must continue to issue bonds in
the tax-exempt municipal market. In addition, health care entities were active
issuers during this period, as they sought to replace variable rate issuance
with fixed rates. Refunding issues also are not covered by the Build America
Bond program, and this resulted in attractive opportunities in sectors such as
airports and tollroads. The impact of the Build America Bond program was also
evident in the area of longer-term issuance, as municipal issuers sought to take
full advantage of the attractive financing terms offered by these bonds.
Approximately 70% of Build America Bonds were issued with maturities of at least
30 years or more. Even though this significantly reduced the availability of
tax-exempt bonds with longer maturities, we continued to find good opportunities
to purchase attractive longer-term bonds for these Funds.
Cash for new purchases during this period was generated primarily by the
proceeds from bond calls and redemptions including pre-refunded bonds. In NPT,
we took advantage of attractive opportunities to sell bonds with less
advantageous structures, such as low embedded yields or short call dates, that
had experienced most of their price appreciation potential.
Shortly before the beginning of this reporting period, the Nuveen Florida
Investment Quality Municipal Fund (NQF) and the Nuveen Florida Quality Income
Municipal Fund (NUF) were Reorganized into NPM (the "Reorganization"). In the
Reorganization, NPM acquired substantially all of the assets and liabilities of
the two Florida funds in a tax-free transaction in exchange for an equal
aggregate value of newly-issued common shares. In general, the securities
acquired through the Reorganization matched the investment parameters and
strategies of NPM and required little immediate portfolio activity.
Nevertheless, as a result of the Reorganization, NPM's exposure to Florida bonds
rose significantly. During this period, we worked to reduce this exposure and
bring it more in line with our standard investment parameters. We intend to
continue to reduce NPM's Florida exposure over time as appropriate opportunities
arise.
As of April 30, 2010, all three of these Funds continued to use inverse floating
rate securities.(1) We employ inverse floaters for a variety of reasons,
including leverage, duration management and both income and total return
enhancement.
(1) An inverse floating rate security, also known as an inverse floater, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
Nuveen Investments 3
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE*
FOR PERIODS ENDED 4/30/10
6-MONTH 1-YEAR 5-YEAR 10-YEAR
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NPI 5.83% 16.88% 3.87% 6.28%
NPM 5.99% 18.19% 4.36% 6.33%
NPT 6.18% 18.85% 4.32% 5.59%
Standard & Poor's (S&P) National Municipal
Bond Index(2) 3.85% 10.04% 4.35% 5.73%
Lipper General Leveraged Municipal Debt
Funds Average(3) 6.90% 22.67% 3.84% 6.38%
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For the six months ended April 30, 2010, the cumulative returns on common share
net asset value (NAV) for all three of these Funds exceeded the return for the
Standard & Poor's (S&P) National Municipal Bond Index. For the same period, the
three Funds lagged the average return for the Lipper General Leveraged Municipal
Debt Funds Average.
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure and sector
allocation. In addition, the use of leverage was an important factor affecting
each Fund's performance over this period. The impact of leverage is discussed in
more detail on page five.
During this period, bonds with longer maturities generally outperformed credits
with shorter maturities, with bonds at the longest end of the yield curve
posting the strongest returns. The outperformance of longer bonds was due in
part to the decline in interest rates, particularly at the longer end of the
curve. The scarcity of tax-exempt bonds with longer maturities also drove up
prices. Overall, duration and yield curve positioning proved positive for the
performance of these Funds.
Credit exposure also played an important role in the performance of these Funds.
The demand for municipal bonds increased during the period, driven by a variety
of factors, including concerns about potential tax increases, the need to
rebalance portfolio allocations and a growing appetite for additional risk. At
the same time, the supply of issuance of new tax-exempt municipal securities
declined. As investors bid up municipal bond prices, bonds rated BBB or below
generally outperformed those rated AAA. On the whole, the Funds' performance
benefited from their allocations to lower quality credits. This was especially
true in NPT, which had the heaviest weightings of bonds rated BBB or lower among
these three Funds.
* Six-month returns are cumulative; returns for one-year, five-year and
ten-year are annualized.
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(2) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This
index does not reflect any initial or ongoing expenses and is not
available for direct investment.
(3) The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6-months, 48 funds; 1-year, 46 funds; 5-year, 44 funds; and
10-year, 30 funds. Lipper returns account for the effects of management
fees and assume reinvestment of dividends, but do not reflect any
applicable sales charges. The Lipper average is not available for direct
investment.
4 Nuveen Investments
Holdings that generally contributed positively to the Fund's performance during
this period included industrial development revenue, health care and housing
bonds. Revenue bonds as a whole performed well, with transportation, leasing and
special tax among the sectors outperforming the general municipal market for
this period. Zero coupon bonds also were among the strongest performers, as were
lower-rated bonds backed by the 1998 master tobacco settlement agreement.
Pre-refunded bonds, which are often backed by U.S. Treasury securities,
performed relatively poorly during this period. The underperformance of these
bonds can be attributed primarily to their shorter effective maturities and
higher credit quality. As of April 30, 2010, NPI had the largest exposure to
pre-refunded bonds, while NPM had the smallest allocation. On the whole, general
obligation (GO) bonds lagged the overall municipal market by a small margin,
while water and sewer, education, electric utilities and resource recovery bonds
trailed the other revenue sectors for the six months. NPT, in particular, was
negatively impacted by its holdings of resource recovery bonds.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of most of these Funds relative to
the comparative index was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total return for common shareholders.
However, use of leverage also can expose common shareholders to additional
volatility. For example, as the prices of securities held by a Fund decline, the
negative impact of these valuation changes on common share net asset value and
common shareholder total return is magnified by the use of leverage. Conversely,
leverage may enhance common share returns during periods when bond prices
generally are rising.
Leverage made a positive contribution to the performance of these Funds over
this reporting period.
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
Shortly after their inceptions, each of the Funds issued auction rate preferred
shares (ARPS) to create financial leverage. As noted in past shareholder
reports, the ARPS issued by many closed-end funds, including these Funds, have
been hampered by a lack of liquidity since February 2008. Since that time, more
ARPS have been submitted for sale in each of their regularly scheduled auctions
than there have been offers to buy. In fact, offers to buy have been almost
completely non-existent since late February 2008. This means that these auctions
have "failed to clear," and that many, or all, of the ARPS
Nuveen Investments 5
shareholders who wanted to sell their shares in these auctions were unable to do
so. This lack of liquidity in ARPS did not lower the credit quality of these
shares, and ARPS shareholders unable to sell their shares have continued to
receive distributions at the "maximum rate" applicable to failed auctions, as
calculated in accordance with the pre-established terms of the ARPS. In the
recent market, with short-term rates at multi-generational lows, those maximum
rates also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Nuveen funds' Board of
Directors/Trustees authorized several methods to refinance a portion of the
Nuveen funds' outstanding ARPS. Some funds have utilized tender option bonds
(TOBs), also known as floating rate securities for leverage purposes. The amount
of TOBs that a fund may use varies according to the composition of each fund's
portfolio. Some funds have a greater ability to use TOBs than others. Some funds
have issued Variable Rate Demand Preferred Shares (VRDP), but these issuances
have been limited since it has been difficult to find liquidity providers on
economically viable terms given the constrained credit environment. Some funds
have issued MuniFund Term Preferred Shares (MTP), a fixed rate form of preferred
stock with a mandatory redemption period of five years.
While all these efforts have reduced the total amount of outstanding ARPS issued
by the Nuveen funds, the Funds cannot provide any assurance on when the
remaining outstanding ARPS might be redeemed.
On April 9, 2010, twenty-six Nuveen leveraged closed-end funds, including NPI
and NPM, received a demand letter from a law firm on behalf of each fund's
common shareholders, alleging that Nuveen and the fund's officers and Board of
Directors/Trustees breached their fiduciary duties related to the redemption at
par of the fund's ARPS. The funds' independent Board is evaluating the demand
letter for each fund.
6 Nuveen Investments
As of April 30, 2010, the amounts of ARPS redeemed at par by the Funds are as
shown in the accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
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NPI $124,350,000 23.7%
NPM $108,475,000 18.2%
NPT $338,400,000 100.0%
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As of April 30, 2010, NPT had issued and outstanding $262.2 million VRDP. (Refer
to Notes to Financial Statements, Footnote 1 - General Information and
Significant Accounting Policies and Footnote 4 - Fund Shares for further details
on VRDP.)
As of April 30, 2010, 83 out of the 84 Nuveen closed-end municipal funds that
had issued ARPS have redeemed at par all or a portion of these shares. These
redemptions bring the total amount of Nuveen's municipal closed-end funds' ARPS
redemptions to approximately $4.4 billion of the approximately $11.0 billion
originally outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at: http://www.nuveen.com/arps.
Nuveen Investments 7
Common Share Dividend and Share Price Information
During the six-month reporting period ended April 30, 2010, NPI and NPT each had
two monthly dividend increases and NPM had one monthly dividend increase.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of April 30, 2010, all three
Funds in this report had positive UNII balances, based upon our best estimate,
for tax purposes and positive UNII balances for financial reporting purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of April 30, 2010, and since the inception of the Funds' repurchase program,
NPM has cumulatively repurchased common shares as shown in the accompanying
table. Since the inception of the Funds' repurchase program, NPI and NPT have
not repurchased any of their outstanding common shares.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
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NPM 422,900 0.6%
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During the six-month reporting period, NPM repurchased common shares at a
weighted average price and a weighted average discount per common share as shown
in the accompanying table. NPI and NPT did not repurchase any of their
outstanding common shares during the six-month reporting period.
WEIGHTED AVERAGE WEIGHTED AVERAGE
COMMON SHARES PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED REPURCHASED
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NPM 122,900 $12.90 8.42%
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8 Nuveen Investments
As of April 30, 2010, the Funds' common share prices were trading at (-)
discounts to their common share NAVs as shown in the accompanying table.
4/30/10 SIX-MONTH AVERAGE
FUND (-) DISCOUNT (-) DISCOUNT
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NPI -2.77% -4.04%
NPM -4.60% -6.26%
NPT -1.85% -3.67%
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Nuveen Investments 9
NPI Performance OVERVIEW | Nuveen Premium Income Municipal Fund, Inc.
| as of April 30, 2010
FUND SNAPSHOT
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Common Share Price $ 13.69
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Common Share
Net Asset Value $ 14.08
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Premium/(Discount) to NAV -2.77%
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Market Yield 6.40%
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Taxable-Equivalent Yield(1) 8.89%
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Net Assets Applicable to Common Shares ($000) $898,322
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Average Effective Maturity on Securities (Years) 14.59
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Leverage-Adjusted Duration 9.88
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AVERAGE ANNUAL TOTAL RETURN
(Inception 7/18/88)
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ON SHARE PRICE ON NAV
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6-Month (Cumulative) 10.67% 5.83%
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1-Year 19.94% 16.88%
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5-Year 5.06% 3.87%
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10-Year 8.13% 6.28%
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STATES
(as a % of total investments)
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California 13.1%
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Texas 10.2%
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New York 8.6%
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Illinois 6.1%
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New Jersey 5.5%
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Massachusetts 3.7%
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Florida 3.7%
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South Carolina 3.3%
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Alabama 3.1%
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Minnesota 3.0%
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Pennsylvania 2.9%
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Nevada 2.8%
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Colorado 2.8%
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Louisiana 2.8%
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Wisconsin 2.6%
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District of Columbia 2.6%
--------------------------------------------------------------------------------
Michigan 2.5%
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Washington 2.3%
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Other 18.4%
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PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 21.6%
--------------------------------------------------------------------------------
Health Care 17.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.4%
--------------------------------------------------------------------------------
Tax Obligation/General 11.8%
--------------------------------------------------------------------------------
Transportation 10.4%
--------------------------------------------------------------------------------
Utilities 5.7%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.7%
--------------------------------------------------------------------------------
Other 13.4%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(2)
[PIE CHART]
AAA/U.S.
Guaranteed 37%
AA 27%
A 21%
BBB 12%
BB or Lower 1%
N/R 2%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
May $ 0.068
Jun $ 0.068
Jul $ 0.068
Aug $ 0.068
Sep $ 0.07
Oct $ 0.07
Nov $ 0.07
Dec $ 0.071
Jan $ 0.071
Feb $ 0.071
Mar $ 0.073
Apr $ 0.073
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/1/2009 $ 12.15
$ 12.27
$ 12.47
$ 12.61
$ 12.43
$ 12.32
$ 12.06
$ 12.22
$ 12.35
$ 12.21
$ 12.42
$ 12.4
$ 12.51
$ 12.33
$ 12.33
$ 12.25
$ 12.62
$ 12.75
$ 13.03
$ 13.31
$ 13.34
$ 13.39
$ 13.44
$ 13.42
$ 12.9
$ 13
$ 12.77
$ 13.06
$ 12.71
$ 12.99
$ 13.09
$ 13.22
$ 13.31
$ 13.14
$ 13.11
$ 13.15
$ 13.24
$ 13.14
$ 13.19
$ 13.27
$ 13.28
$ 13.36
$ 13.26
$ 13.36
$ 13.47
$13.4326
$ 13.56
$13.7201
$ 13.78
$ 13.7
$ 13.57
$ 13.7
4/30/2010 $ 13.69
(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) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
10 Nuveen Investments
NPM Performance OVERVIEW | Nuveen Premium Income Municipal Fund 2, Inc.
| as of April 30, 2010
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(3)
[PIE CHART]
AAA/U.S.
Guaranteed 32%
AA 28%
A 26%
BBB 10%
BB or Lower 1%
N/R 3%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
May $ 0.069
Jun $ 0.069
Jul $ 0.069
Aug $ 0.069
Sep $ 0.072
Oct $ 0.072
Nov $ 0.072
Dec $ 0.073
Jan $ 0.073
Feb $ 0.073
Mar $ 0.073
Apr $ 0.073
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/1/2009 $ 12.26
$ 12.61
$ 12.55
$ 12.6
$ 12.5
$ 12.47
$ 12.05
$ 12.31
$ 12.452
$ 12.6
$ 12.77
$ 12.61
$ 12.82
$ 12.67
$ 12.79
$ 12.64
$ 12.8
$ 13.14
$ 13.36
$ 13.5
$ 13.74
$ 13.82
$ 13.82
$ 13.73
$13.1299
$ 13.11
$ 13.02
$ 13.02
$ 12.81
$ 13.08
$ 13.14
$ 13.32
$ 13.4
$ 13.35
$13.4095
$ 13.33
$ 13.39
$ 13.41
$ 13.4
$ 13.43
$ 13.46
$ 13.54
$ 13.41
$ 13.59
$ 13.67
$ 13.72
$ 13.7
$ 13.69
$ 13.73
$ 13.73
$ 13.72
$ 13.77
$ 13.9
4/30/2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.90
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.57
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.60%
--------------------------------------------------------------------------------
Market Yield 6.30%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.75%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $1,030,264
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.30
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.59
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/23/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 10.24% 5.99%
--------------------------------------------------------------------------------
1-Year 21.50% 18.19%
--------------------------------------------------------------------------------
5-Year 5.78% 4.36%
--------------------------------------------------------------------------------
10-Year 7.01% 6.33%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Florida(2) 33.7%
--------------------------------------------------------------------------------
California 7.8%
--------------------------------------------------------------------------------
Illinois 5.9%
--------------------------------------------------------------------------------
Texas 4.8%
--------------------------------------------------------------------------------
New York 4.5%
--------------------------------------------------------------------------------
Washington 4.1%
--------------------------------------------------------------------------------
South Carolina 3.8%
--------------------------------------------------------------------------------
Nevada 3.3%
--------------------------------------------------------------------------------
New Jersey 3.1%
--------------------------------------------------------------------------------
Massachusetts 2.6%
--------------------------------------------------------------------------------
Michigan 2.4%
--------------------------------------------------------------------------------
Louisiana 2.3%
--------------------------------------------------------------------------------
Alabama 2.1%
--------------------------------------------------------------------------------
Other 19.6%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.6%
--------------------------------------------------------------------------------
Health Care 14.9%
--------------------------------------------------------------------------------
Tax Obligation/General 14.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.4%
--------------------------------------------------------------------------------
Transportation 9.7%
--------------------------------------------------------------------------------
Utilities 6.8%
--------------------------------------------------------------------------------
Water and Sewer 5.4%
--------------------------------------------------------------------------------
Other 12.7%
--------------------------------------------------------------------------------
(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) Percentage includes assets acquired in the Reorganization of Nuveen
Florida Investment Quality Municipal Fund (NQF) and Nuveen Florida Quality
Income Municipal Fund (NUF). Please see the Portfolio Managers' Comments
for an expanded discussion on the intention overtime to reduce the Fund's
concentration of Florida holdings.
(3) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
Nuveen Investments 11
NPT Performance OVERVIEW | Nuveen Premium Income Municipal Fund 4, Inc.
| as of April 30, 2010
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.70
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 12.94
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.85%
--------------------------------------------------------------------------------
Market Yield 6.52%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.06%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $559,576
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.35
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.50
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/19/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) 12.25% 6.18%
--------------------------------------------------------------------------------
1-Year 27.80% 18.85%
--------------------------------------------------------------------------------
5-Year 6.61% 4.32%
--------------------------------------------------------------------------------
10-Year 7.14% 5.59%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 12.9%
--------------------------------------------------------------------------------
California 11.7%
--------------------------------------------------------------------------------
Illinois 10.3%
--------------------------------------------------------------------------------
Indiana 5.7%
--------------------------------------------------------------------------------
Michigan 4.7%
--------------------------------------------------------------------------------
Florida 4.5%
--------------------------------------------------------------------------------
Louisiana 3.4%
--------------------------------------------------------------------------------
Alabama 2.8%
--------------------------------------------------------------------------------
New Jersey 2.8%
--------------------------------------------------------------------------------
New York 2.7%
--------------------------------------------------------------------------------
Washington 2.6%
--------------------------------------------------------------------------------
Colorado 2.5%
--------------------------------------------------------------------------------
South Carolina 2.5%
--------------------------------------------------------------------------------
Georgia 2.3%
--------------------------------------------------------------------------------
Rhode Island 2.2%
--------------------------------------------------------------------------------
Nevada 2.2%
--------------------------------------------------------------------------------
Ohio 2.0%
--------------------------------------------------------------------------------
North Carolina 1.9%
--------------------------------------------------------------------------------
Pennsylvania 1.8%
--------------------------------------------------------------------------------
Other 18.5%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 19.3%
--------------------------------------------------------------------------------
U.S. Guaranteed 18.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.9%
--------------------------------------------------------------------------------
Tax Obligation/General 11.9%
--------------------------------------------------------------------------------
Utilities 8.0%
--------------------------------------------------------------------------------
Transportation 7.2%
--------------------------------------------------------------------------------
Water and Sewer 5.4%
--------------------------------------------------------------------------------
Other 13.8%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(2)
[PIE CHART]
AAA/U.S. Guaranteed 26%
AA 23%
A 31%
BBB 11%
BB or Lower 3%
N/R 6%
2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
May $ 0.0615
Jun $ 0.0615
Jul $ 0.0615
Aug $ 0.0615
Sep $ 0.066
Oct $ 0.066
Nov $ 0.066
Dec $ 0.067
Jan $ 0.067
Feb $ 0.067
Mar $ 0.069
Apr $ 0.069
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE GRAPH]
5/1/2009 $ 10.65
$ 10.96
$ 11.06
$ 11.09
$ 10.99
$ 11
$ 10.66
$ 10.83
$ 10.84
$ 10.77
$ 11.1
$ 11.04
$ 11.19
$ 11.19
$ 11.32
$ 11.26
$ 11.47
$ 11.55
$ 11.92
$ 12.27
$ 12.53
$ 12.37
$ 12.61
$ 12.35
$ 11.88
$ 11.89
$ 11.69
$ 12.09
$ 11.631
$ 11.9
$ 12.05
$ 12.13
$ 12.22
$ 12.21
$ 12.26
$ 12.15
$ 12.3
$ 12.27
$ 12.2
$ 12.16
$ 12.2
$ 12.2
$ 12.05
$ 12.12
$ 12.37
$ 12.25
$ 12.48
$ 12.51
$ 12.58
$ 12.61
$ 12.58
$ 12.71
4/30/2010 $ 12.7
(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) Ratings shown are the highest rating given by one or more national rating
agencies. AAA includes bonds with an implied AAA rating since they are
backed by U.S. Government or agency securities. AAA, AA, A and BBB are
investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade
ratings. Holdings designated N/R are not rated by a national rating
agency.
12 Nuveen Investments
NPI | Nuveen Premium Income Municipal Fund, Inc.
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.8% (3.1% OF TOTAL INVESTMENTS)
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 4,135,212
Bonds, Series 2000, 6.125%, 12/01/16
Alabama Special Care Facilities Financing Authority, Revenue
Bonds, Ascension Health, Series 2006C-2:
1,435 5.000%, 11/15/36 (UB) 11/16 at 100.00 Aa1 1,454,129
4,000 5.000%, 11/15/39 (UB) 11/16 at 100.00 Aa1 4,053,320
6,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 6,069,900
Bonds, Ascension Health, Series 2006D, 5.000%, 11/15/39 (UB)
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A:
6,000 5.250%, 11/15/20 11/15 at 100.00 Baa2 5,871,660
1,300 5.000%, 11/15/30 11/15 at 100.00 Baa2 1,144,832
12,000 Birmingham Waterworks and Sewer Board, Alabama, Water and Sewer 1/17 at 100.00 AA+ 11,581,200
Revenue Bonds, Series 2007A, 4.500%, 1/01/43 - AMBAC Insured
(UB)
2,890 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 2,667,701
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 5,101,123
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) 1,144,860
Alabama, Revenue Bonds, Baptist Medical Center, Series
2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
43,695 Total Alabama 43,223,937
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.0% (1.3% OF TOTAL INVESTMENTS)
Anchorage, Alaska, General Obligation Refunding Bonds, Series
2003A:
2,000 5.250%, 9/01/17 (Pre-refunded 9/01/13) - FGIC Insured 9/13 at 100.00 AA (4) 2,268,360
2,035 5.250%, 9/01/18 (Pre-refunded 9/01/13) - FGIC Insured 9/13 at 100.00 AA (4) 2,308,056
5,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 5,026,300
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
(Pre-refunded 6/01/10)
10,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 8,284,185
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
19,535 Total Alaska 17,886,901
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.0% (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 501,655
660 5.250%, 12/01/25 12/15 at 100.00 BBB 660,350
4,100 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 3,656,216
Bonds, Citigroup Energy Inc Prepay Contract Obligations,
Series 2007, 5.000%, 12/01/37
4,130 University of Arizona, Certificates of Participation, Series 6/12 at 100.00 AA- 4,401,424
2002B, 5.125%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,390 Total Arizona 9,219,645
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS)
480 Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100.00 N/R (4) 495,182
Series 2000, 5.650%, 12/01/25 (Pre-refunded 12/01/10) -
AMBAC Insured
5,245 University of Arkansas, Fayetteville, Athletic Facilities 9/10 at 100.00 Aa3 5,258,375
Revenue Bonds, Razorback Stadium, Series 1999, 5.050%,
9/15/20 - AMBAC Insured
2,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 Baa1 1,997,360
Regional Medical Center, Series 2005B, 5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,725 Total Arkansas 7,750,917
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.5% (13.1% OF TOTAL INVESTMENTS)
9,200 Alameda Corridor Transportation Authority, California, No Opt. Call A- 5,076,836
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/20 - AMBAC Insured
10,000 Anaheim Public Finance Authority, California, Public 9/17 at 100.00 A1 8,598,500
Improvement Project Lease Bonds, Series 2007A-1, 4.375%,
3/01/37 - FGIC Insured
Nuveen Investments 13
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 4,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 Aaa $ 4,459,040
Bonds, Series 2002A, 6.000%, 5/01/15 (Pre-refunded 5/01/12)
5,400 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 5,530,626
University of Southern California, Series 2005, 4.750%,
10/01/28 (UB)
1,500 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 1,500,000
University of the Pacific, Series 2006, 5.000%, 11/01/30
California Health Facilities Financing Authority, Health
Facility Revenue Bonds, Adventist Health System/West, Series
2003A:
3,700 5.000%, 3/01/28 3/13 at 100.00 A 3,682,462
7,000 5.000%, 3/01/33 3/13 at 100.00 A 6,804,560
5,425 California Health Facilities Financing Authority, Revenue No Opt. Call A 5,866,107
Bonds, Catholic Healthcare West, Series 2004I, 4.950%,
7/01/26 (Mandatory put 7/01/14)
8,560 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 AAA 8,572,070
Bonds, Cedars-Sinai Medical Center, Series 2005, 5.000%,
11/15/27
8,570 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 8,226,857
Bonds, Kaiser Permanante System, Series 2006,
5.000%, 4/01/37
4,250 California Health Facilities Financing Authority, Revenue 10/19 at 100.00 AA 4,469,853
Bonds, Providence Health & Services, Series 2009B, 5.500%,
10/01/39
3,015 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 2,779,197
Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call A2 12,008,963
Department of Corrections, Series 1993E, 5.500%, 6/01/15
1,000 California State Public Works Board, Lease Revenue Bonds, 3/20 at 100.00 A2 1,044,460
Various Capital Projects, Series 2010A-1, 6.000%, 3/01/35
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 1,500,649
4,730 5.000%, 7/01/39 7/15 at 100.00 BBB 3,973,910
5,000 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 5,148,200
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
7,130 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 7,465,680
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.554%, 11/15/48 (IF)
3,095 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call Aa3 3,505,985
5.250%, 7/01/14
905 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AAA 1,049,402
5.250%, 7/01/14 (ETM)
California, General Obligation Bonds, Series 2004:
1,160 5.125%, 2/01/25 2/14 at 100.00 A1 1,182,295
10,000 5.125%, 2/01/26 2/14 at 100.00 A1 10,164,600
3,575 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 3,800,726
San Diego Gas and Electric Company, Series 1996A, 5.300%,
7/01/21
4,890 Clovis Unified School District, Fresno County, California, No Opt. Call AA 1,900,547
General Obligation Bonds, Series 2006B, 0.000%, 8/01/26 -
NPFG Insured
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
7,200 5.000%, 6/01/33 6/17 at 100.00 BBB 5,880,600
2,000 5.750%, 6/01/47 6/17 at 100.00 BBB 1,541,660
3,000 5.125%, 6/01/47 6/17 at 100.00 BBB 2,095,170
5,000 Kern Community College District, California, General Obligation No Opt. Call AAA 2,276,950
Bonds, Series 2006, 0.000%, 11/01/24 - AGM Insured
800 Martinez, California, Home Mortgage Revenue Bonds, Series No Opt. Call AAA 1,020,032
1983A, 10.750%, 2/01/16 (ETM)
17,045 Pomona, California, GNMA/FNMA Collateralized Securities Program No Opt. Call AAA 22,514,393
Single Family Mortgage Revenue Bonds, Series 1990A, 7.600%,
5/01/23 (ETM)
5,000 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 (4) 5,897,450
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26 (Pre-refunded 7/01/14)
2,000 Redwood City School District, San Mateo County, California, 7/12 at 100.00 A+ 2,015,220
General Obligation Bonds, Series 2002, 5.000%, 7/15/27 -
FGIC Insured
14 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,700 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 A+ $ 3,811,814
Revenue Bonds, Series 2003R, 5.000%, 8/15/22 - NPFG Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
400 5.000%, 9/01/21 9/15 at 102.00 Baa3 381,320
445 5.000%, 9/01/23 9/15 at 102.00 Baa3 416,934
3,500 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 A+ 3,529,610
Series 2004B, 5.000%, 9/01/29 -NPFG Insured
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
10,450 0.000%, 1/15/31 - NPFG Insured No Opt. Call A 2,042,662
7,150 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 1,291,648
50,400 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 7,776,720
24,025 0.000%, 1/15/36 - NPFG Insured No Opt. Call A 3,127,575
------------------------------------------------------------------------------------------------------------------------------------
267,255 Total California 183,931,283
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.4% (2.8% OF TOTAL INVESTMENTS)
2,500 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AA- 2,721,175
Sewerage Revenue Bonds, Series 2004, 5.000%, 12/01/21 -
FGIC Insured
690 Colorado Educational and Cultural Facilities Authority, 9/15 at 100.00 A 709,127
Charter School Revenue Bonds, Bromley School, Series 2005,
5.125%, 9/15/20 - SYNCORA GTY Insured
2,125 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 2,017,135
Evangelical 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 1,001,060
Medical Center, Series 2004, 5.000%, 9/01/25
800 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 A- 801,544
Valley Health Care, Series 2005F, 5.000%, 3/01/25
20 Colorado Housing Finance Authority, Single Family Program 5/10 at 104.00 Aaa 20,303
Senior Bonds, Series 1997C-2, 6.875%, 11/01/28 (Alternative
Minimum Tax)
320 Colorado Housing Finance Authority, Single Family Program 10/10 at 105.00 AA 328,864
Senior Bonds, Series 2000B-2, 7.250%, 10/01/31 (Alternative
Minimum Tax)
5,995 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 6,607,809
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum
Tax)
19,810 Denver, Colorado, Excise Tax Revenue Bonds, Convention Center, 3/11 at 100.00 AAA 20,643,602
Series 2001A, 5.500%, 9/01/18 (Pre-refunded 3/01/11) - AGM
Insured
20,500 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 4,693,885
Bonds, Series 2000B, 0.000%, 9/01/32 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
53,760 Total Colorado 39,544,504
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,930 Connecticut, General Obligation Bonds, Series 2001C, 5.500%, No Opt. Call AA 2,297,395
12/15/16
2,310 Greater New Haven Water Pollution Control Authority, 11/15 at 100.00 A1 2,366,041
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A, 5.000%, 11/15/30 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
4,240 Total Connecticut 4,663,436
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.0% (2.6% OF TOTAL INVESTMENTS)
4,135 District of Columbia Housing Finance Agency, GNMA 6/10 at 100.00 AAA 4,140,210
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 Aa2 11,374,443
6.000%, 6/01/20 - NPFG Insured District of Columbia,
Revenue Bonds, Georgetown University, Series 2001A:
14,105 0.000%, 4/01/24 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 47.66 A (4) 6,684,360
7,625 0.000%, 4/01/25 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 44.83 A (4) 3,398,844
16,665 0.000%, 4/01/32 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 29.23 A (4) 4,844,682
2,130 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AA+ 2,110,447
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.356%, 10/01/30 - AMBAC Insured (IF)
3,335 Washington DC Convention Center Authority, Dedicated Tax 10/16 at 100.00 AA+ 3,304,385
Revenue Bonds, Residual Series 1731, 11.272%, 10/01/30 -
AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
57,500 Total District of Columbia 35,857,371
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 15
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.8% (3.7% OF TOTAL INVESTMENTS)
$ 4,225 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- $ 4,224,831
Bonds, Health First Inc. Project, Series 2005, 5.000%,
4/01/24
8,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 Aa3 8,426,960
Bonds, Tampa International Airport, Series 2003A, 5.375%,
10/01/16 - NPFG Insured (Alternative Minimum Tax)
5,400 Hillsborough County Industrial Development Authority, Florida, 4/12 at 100.00 N/R 4,731,480
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%,
4/01/30 (Alternative Minimum Tax)
19,750 Miami-Dade County Expressway Authority, Florida, Toll System 7/16 at 100.00 A 18,583,562
Revenue Bonds, Series 2006, 4.500%, 7/01/33 - AMBAC Insured
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A1 (4) 5,214,300
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
6,910 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 6,789,904
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
1,785 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AA 1,836,944
2005, 5.000%, 10/01/28 - NPFG Insured
2,375 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aa3 2,455,988
Participation, Series 2005B, 5.000%, 8/01/22 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
53,445 Total Florida 52,263,969
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,625 Fulton County Development Authority, Georgia, Revenue Bonds, 5/14 at 100.00 Aa3 2,704,144
Georgia Tech Molecular Science Building, Series 2004,
5.250%, 5/01/24 - NPFG Insured
6,025 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA 6,408,311
Certificates, Series 2003, 5.250%, 1/01/20 - AGM Insured
4,860 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call Aa2 5,816,351
Tax Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20
- AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,510 Total Georgia 14,928,806
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.2% (0.8% OF TOTAL INVESTMENTS)
10,000 Hawaii, General Obligation Bonds, Series 2003DA, 5.250%, 9/13 at 100.00 Aa1 11,107,500
9/01/21 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Boise City, Idaho, Airport Revenue Certificates of 9/10 at 100.00 A1 5,003,500
Participation, Series 2000, 5.500%, 9/01/25 - FGIC Insured
(Alternative Minimum Tax)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
2,185 5.250%, 9/01/30 9/16 at 100.00 BBB- 2,003,361
600 5.250%, 9/01/37 9/16 at 100.00 BBB- 528,906
------------------------------------------------------------------------------------------------------------------------------------
7,785 Total Idaho 7,535,767
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.6% (6.1% OF TOTAL INVESTMENTS)
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
8,890 0.000%, 12/01/16 - FGIC Insured No Opt. Call Aa2 7,011,010
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call Aa2 6,220,000
10,130 0.000%, 12/01/24 - FGIC Insured No Opt. Call Aa2 4,936,856
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 Aa2 8,748,600
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call Aa2 5,181,800
8,740 Illinois Development Finance Authority, Pollution Control 8/10 at 100.00 A 8,741,661
Revenue Refunding Bonds, Illinois Power Company, Series
1994A, 5.700%, 2/01/24 - NPFG Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
1,050 5.250%, 11/15/22 5/14 at 100.00 A 1,063,304
3,000 5.250%, 11/15/23 5/14 at 100.00 A 3,029,250
985 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BB+ 853,867
Series 2006, 5.125%, 1/01/25
2,880 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 3,263,155
Series 2009A, 7.750%, 8/15/34
16 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,225 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa $ 1,338,631
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
9,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman 8/10 at 100.00 BBB 8,965,267
Health Systems, Series 1997, 5.250%, 8/01/27 - AMBAC Insured
1,000 Lombard Public Facilities Corporation, Illinois, Second Tier 1/16 at 100.00 AA 1,017,070
Conference Center and Hotel Revenue Bonds, Series 2005B,
5.250%, 1/01/30
10,040 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A1 8,510,908
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/15 - FGIC Insured
9,870 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/10 at 101.00 AAA 10,004,726
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 4,026,390
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+ 3,054,630
Facilities Revenue Bonds, Morris Hospital, Series 2001,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
108,630 Total Illinois 85,967,125
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,005 Hamilton County Public Building Corporation, Indiana, First 8/14 at 100.00 AAA 2,151,786
Mortgage Bonds, Series 2004, 5.000%, 8/01/22 - AGM Insured
7,965 Wawasee Community School Corporation, Indiana, First Mortgage 1/12 at 101.00 AA+ (4) 8,718,250
Bonds, New Elementary and Remodeling Building Corporation,
Series 2000, 5.750%, 1/15/20 (Pre-refunded 1/15/12)
------------------------------------------------------------------------------------------------------------------------------------
9,970 Total Indiana 10,870,036
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,003,480
Medical Center, Series 2000, 6.250%, 7/01/25
3,250 Iowa Finance Authority, Industrial Remarketed Revenue No Opt. Call AAA 3,984,890
Refunding Bonds, Urbandale Hotel Corporation, Series 1989A,
8.500%, 8/01/16 (Alternative Minimum Tax) (ETM)
Iowa Tobacco Settlement Authority, Asset Backed Settlement
Revenue Bonds, Series 2005C:
10,000 5.500%, 6/01/42 6/15 at 100.00 BBB 7,385,900
2,000 5.625%, 6/01/46 6/15 at 100.00 BBB 1,496,160
------------------------------------------------------------------------------------------------------------------------------------
17,250 Total Iowa 14,870,430
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7% (0.5% OF TOTAL INVESTMENTS)
6,000 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 6,590,940
Series 2004A, 5.000%, 3/01/21 (UB)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,800 Kentucky Economic Development Finance Authority, Hospital No Opt. Call Baa2 3,939,042
Facilities Revenue Bonds, Owensboro Medical Health System,
Series 2010A, 6.500%, 3/01/45
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 Aa2 1,236,838
1,270 5.000%, 6/01/20 - AMBAC Insured 6/14 at 100.00 Aa2 1,291,044
1,335 5.000%, 6/01/21 - AMBAC Insured 6/14 at 100.00 Aa2 1,348,684
------------------------------------------------------------------------------------------------------------------------------------
7,615 Total Kentucky 7,815,608
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.4% (2.8% OF TOTAL INVESTMENTS)
2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 A+ (4) 3,231,103
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/19 (Pre-refunded 12/01/12) - AMBAC Insured
40 Louisiana Housing Finance Agency, Single Family Mortgage 9/10 at 100.00 Aaa 41,143
Revenue Bonds, Series 2000A, 7.450%, 12/01/31 (Alternative
Minimum Tax)
Louisiana Public Facilities Authority, Extended Care
Facilities Revenue Bonds, Comm-Care Corporation Project,
Series 1994:
405 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 488,288
3,635 11.000%, 2/01/14 (ETM) No Opt. Call N/R (4) 4,382,538
2,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 2,000,740
Franciscan Missionaries of Our Lady Health System, Series
2005A, 5.250%, 8/15/31
Nuveen Investments 17
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 5,800 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 Baa1 $ 5,269,764
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 Aa1 1,242,360
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 Aa1 2,279,969
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 Aa1 2,582,575
Louisiana State, Gasoline Tax Revenue Bonds, Series 2006A:
930 4.750%, 5/01/39 - AGM Insured (UB) 5/16 at 100.000 AAA 932,167
10,105 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.000 Aa1 9,955,345
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
450 5.500%, 5/15/30 5/11 at 101.00 BBB 450,590
6,685 5.875%, 5/15/39 5/11 at 101.00 BBB 6,481,241
------------------------------------------------------------------------------------------------------------------------------------
38,875 Total Louisiana 39,337,823
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,200 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 1,928,762
Revenue Bonds, Series 2006A, 5.250%, 9/01/27 - SYNCORA GTY
Insured
2,000 Maryland Health and Higher Educational Facilities Authority, No Opt. Call BBB- 1,992,280
Revenue Bonds, Washington County Hospital, Series 2008,
5.750%, 1/01/33
3,560 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 3,385,774
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - NPFG Insured
3,600 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 3,607,020
Multifamily Housing Development Bonds, Series 2000B,
6.200%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,360 Total Maryland 10,913,836
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.8% (3.7% OF TOTAL INVESTMENTS)
840 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 847,073
Series 2000A, 5.250%, 7/01/30
Massachusetts Bay Transportation Authority, Assessment Bonds,
Series 2000A:
7,900 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aaa 7,966,913
1,260 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1 (4) 1,270,672
2,175 Massachusetts Health and Educational Facilities Authority, 7/19 at 100.00 BBB 2,219,044
Revenue Refunding Bonds, Suffolk University Issue, Series
2009A, 5.750%, 7/01/39
7,930 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 N/R 7,935,392
Revenue Bonds, Series 2001A, 5.850%, 7/01/35 - AMBAC
Insured (Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 6/10 at 101.00 BBB 2,855,595
Revenue Refunding Bonds, Ogden Haverhill Project, Series
1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
13,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 13,006,240
Program Bonds, Series 2006, 4.375%, 8/01/36 (UB)
5,960 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AA+ 6,542,590
Bonds, Series 2005A, 5.250%, 8/01/25 - NPFG Insured
5,535 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 5,401,219
Bonds, Series 2007A, 4.500%, 8/01/46 - AGM Insured (UB)
3,820 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A1 (4) 4,298,149
Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
51,245 Total Massachusetts 52,342,887
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.0% (2.5% OF TOTAL INVESTMENTS)
Detroit, Michigan, General Obligation Bonds, Series 2003A:
3,565 5.250%, 4/01/22 - SYNCORA GTY Insured 4/13 at 100.00 BB 3,058,271
1,275 5.250%, 4/01/23 - SYNCORA GTY Insured 4/13 at 100.00 BB 1,086,249
3,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BB+ 2,698,710
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
18 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 6,600 Michigan Housing Development Authority, Limited Obligation 7/10 at 100.00 AAA $ 6,604,026
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 Aa3 10,286,300
Facilities Program, Series 2003II, 5.000%, 10/15/23 - NPFG
Insured
1,000 Michigan State Hospital Finance Authority, Hospital Revenue 7/10 at 100.00 BB- 799,510
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1997A, 5.250%, 8/15/27 - AMBAC Insured
4,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 3,963,320
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
850 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 705,424
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
6,390 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/12 at 100.00 A 6,430,449
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
36,680 Total Michigan 35,632,259
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.7% (3.0% OF TOTAL INVESTMENTS)
13,650 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A2 13,864,715
Inc., Series 2004, 4.950%, 7/01/22
2,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 N/R (4) 2,287,600
Facilities Revenue Bonds, Benedictine Health System - St.
Mary's Duluth Clinic, Series 2004, 5.375%, 2/15/22
(Pre-refunded 2/15/14)
Eden Prairie, Minnesota, GNMA Collateralized Multifamily
Housing Revenue Bonds, Rolling Hills Project, Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105.00 Aaa 1,063,400
2,000 6.200%, 2/20/43 8/11 at 105.00 Aaa 2,124,980
90 Minnesota Agricultural and Economic Development Board, 7/10 at 100.00 A 90,032
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 1997A, 5.750%, 11/15/26 - NPFG
Insured
1,500 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,562,880
Series 2004A, 5.250%, 10/01/24
1,545 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 1,538,774
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%,
11/15/25
16,090 St. Paul Housing and Redevelopment Authority, Minnesota, Sales 11/15 at 103.00 AAA 19,387,803
Tax Revenue Refunding Bonds, Civic Center Project, Series
1996, 7.100%, 11/01/23 - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
37,875 Total Minnesota 41,920,184
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8% (0.5% OF TOTAL INVESTMENTS)
6,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 7,057,669
Revenue Bonds, Baptist Memorial Healthcare, Series 2004,
5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.5% (0.9% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,988,220
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 BBB+ 489,910
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 A 1,711,719
1,660 5.000%, 6/01/35 6/15 at 100.00 A 1,526,553
1,295 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA- 1,324,254
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21
- AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
205 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 217,382
1,500 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 1,590,600
4,150 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 4,400,660
------------------------------------------------------------------------------------------------------------------------------------
12,875 Total Missouri 13,249,298
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,620 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AA+ 2,525,969
System Revenue Bonds, Nebraska City 2, Series 2006A, Trust
11673, 19.751%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 19
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.4% (2.8% OF TOTAL INVESTMENTS)
$ 10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) $ 11,409,985
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12)
- NPFG Insured
5,000 Clark County, Nevada, Airport Revenue Bonds, Subordinte Lien 1/20 at 100.00 Aa3 5,311,950
Series 2010B, 5.750%, 7/01/42
15,000 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 Aaa 15,775,500
Nevada Water Authority Loan, Series 2001, 5.250%, 6/01/26
(Pre-refunded 6/01/11) - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call Caa2 649,696
10,600 5.375%, 1/01/40 - AMBAC Insured (5) 7/10 at 100.00 Caa2 3,404,614
2,700 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 3,095,388
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
50,135 Total Nevada 39,647,133
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.0% (0.0% OF TOTAL INVESTMENTS)
405 New Hampshire Housing Finance Authority, Single Family 7/10 at 100.00 Aa2 405,470
Mortgage Acquisition Revenue Bonds, Series 1996B, 6.400%,
1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.6% (5.5% OF TOTAL INVESTMENTS)
10,150 Delaware River Port Authority, Pennsylvania and New Jersey, 7/10 at 100.00 AAA 10,160,049
Revenue Bonds, Port District Project, Series 1999B, 5.625%,
1/01/26 - AGM Insured
8,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aa2 (4) 8,189,760
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%,
10/01/25 (Pre-refunded 10/01/10) - FGIC Insured
435 Middlesex County Improvement Authority, New Jersey, Senior No Opt. Call B3 261,705
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- 3,911,508
2,000 5.250%, 9/01/26 9/15 at 100.00 AA- 2,115,600
300 New Jersey Educational Facilities Authority, Revenue Refunding 6/19 at 100.00 Baa2 344,520
Bonds, University of Medicine and Dentistry of New Jersey,
Series 2009B, 7.500%, 12/01/32
800 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 797,744
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,850 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,327,670
System Bonds, Refunding Series 2006A, 5.250%, 12/15/20
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
5,410 5.500%, 6/15/20 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 6,143,109
9,250 5.500%, 6/15/23 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 10,503,468
New Jersey Turnpike Authority, Revenue Bonds, Series 2000A:
3,915 6.000%, 1/01/14 - NPFG Insured (ETM) No Opt. Call A+ (4) 4,566,808
7,585 6.000%, 1/01/14 - NPFG Insured (ETM) No Opt. Call A+ (4) 8,847,827
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A+ 2,688,425
5.000%, 1/01/19 - FGIC Insured
9,130 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 9,702,725
5.000%, 1/01/25 - AGM Insured (UB)
4,465 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 4,281,265
Settlement Asset-Backed Bonds, Series 2007-1A, 4.500%,
6/01/23
------------------------------------------------------------------------------------------------------------------------------------
71,445 Total New Jersey 76,842,183
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.7% (0.5% OF TOTAL INVESTMENTS)
5,585 Santa Fe County, New Mexico, Correctional System Gross No Opt. Call AAA 6,528,921
Receipts Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 -
AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.4% (8.6% OF TOTAL INVESTMENTS)
Brooklyn Areba Local Development Corporation, New York,
Payment in Lieu of Taxes Revenue Bonds, Barclays Center
Project, Series 2009:
2,000 6.000%, 7/15/30 1/20 at 100.00 BBB- 2,060,600
5,000 0.000%, 7/15/44 No Opt. Call BBB- 453,650
20 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
Dormitory Authority of the State of New York, Revenue Bonds,
University of Rochester, Series 2004A:
$ 1,000 5.250%, 7/01/22 7/14 at 100.00 Aa3 $ 1,055,960
500 5.250%, 7/01/24 7/14 at 100.00 Aa3 524,145
1,025 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 1,189,461
University of Rochester, Series 2004A, 5.250%, 7/01/20
(Pre-refunded 7/01/14)
1,995 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 2,139,657
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 2,489,133
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
6,915 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 6,436,275
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
6,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 6,058,740
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
7,000 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 A 7,336,840
5,000 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A 5,212,700
5,100 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 A 4,731,984
Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
3,900 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 3,988,881
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 - AMBAC
Insured
5,780 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 5,911,726
Transportation Revenue Bonds, Series 2005F, 5.000%, 11/15/30
3,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 A 3,152,970
Revenue Refunding Bonds, Series 2002A, 5.125%, 11/15/21 -
FGIC Insured
New York City Industrial Development Agency, New York, Civic
Facility Revenue Bonds, United Jewish Appeal - Federation
of Jewish Philanthropies of New York Inc., Series 2004A:
2,185 5.250%, 7/01/20 7/14 at 100.00 Aa1 2,441,082
2,050 5.250%, 7/01/21 7/14 at 100.00 Aa1 2,277,591
2,420 5.250%, 7/01/22 4/14 at 100.00 Aa1 2,650,892
1,370 5.250%, 7/01/24 4/14 at 100.00 Aa1 1,462,187
12,500 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 AA 13,510,750
Series 2003D, 5.250%, 10/15/22 (UB)
525 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA 571,636
Series 2003J, 5.500%, 6/01/23
4,475 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AAA 5,086,598
Series 2003J, 5.500%, 6/01/23 (Pre-refunded 6/01/13)
7,960 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 8,370,099
Series 2005M, 5.000%, 4/01/24 (UB)
6,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 6,651,000
2004C-1, 5.250%, 8/15/20 (UB)
2,880 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AA+ 3,267,936
Revenue Bonds, Trust 2364, 16.925%, 11/15/44 - AMBAC
Insured (IF)
650 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 651,099
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
1,350 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 AAA 1,370,750
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
(Pre-refunded 6/01/10)
7,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 7,425,086
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
6,460 New York State Urban Development Corporation, State Personal 3/14 at 100.00 AAA 6,785,584
Income Tax Revenue Bonds, Series 2004A-1, 5.000%, 3/15/26 -
FGIC Insured
4,750 Port Authority of New York and New Jersey, Consolidated 3/14 at 101.00 Aa2 4,982,180
Revenue Bonds, One Hundred Thirty-Fifth Series 2004, 5.000%,
9/15/28 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
119,525 Total New York 120,247,192
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 21
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7% (1.1% OF TOTAL INVESTMENTS)
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
$ 5,785 5.250%, 6/01/22 (UB) 6/13 at 100.00 AA+ $ 6,326,881
3,475 5.250%, 6/01/23 (UB) 6/13 at 100.00 AA+ 3,769,889
2,850 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,909,223
Carolinas Health Care System Revenue Bonds, Series 2008,
Trust 1149, 14.932%, 1/15/47 (IF)
1,050 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 1,069,688
Health Care System Revenue Bonds, Carolinas Health Care,
Series 2007A, 5.000%, 1/15/31
1,000 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 723,140
Financing Authority, North Carolina, National Gypsum
Company Project Exempt Facilities Revenue Bonds, Series
2005, 5.750%, 8/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,160 Total North Carolina 14,798,821
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.9% (1.9% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
250 5.125%, 6/01/24 6/17 at 100.00 BBB 230,950
2,850 5.875%, 6/01/30 6/17 at 100.00 BBB 2,413,352
2,745 5.750%, 6/01/34 6/17 at 100.00 BBB 2,159,793
6,285 5.875%, 6/01/47 6/17 at 100.00 BBB 4,717,647
4,265 Franklin County, Ohio, Hospital Revenue and Improvement Bonds, 5/11 at 101.00 Aa2 (4) 4,520,132
Children's Hospital Project, Series 2001, 5.500%, 5/01/28
(Pre-refunded 5/01/11) - AMBAC Insured
Ohio State University, General Receipts Bonds, Series 2003B:
2,225 5.250%, 6/01/20 6/13 at 100.00 N/R 2,501,367
495 5.250%, 6/01/20 6/13 at 100.00 Aa2 545,861
665 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 679,038
Bonds, MedCentral Health System Obligated Group, Series
2000A, 6.125%, 11/15/16
1,335 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- (4) 1,389,521
Bonds, MedCentral Health System Obligated Group, Series
2000A, 6.125%, 11/15/16 (Pre-refunded 11/15/10)
7,000 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 N/R (4) 7,178,290
Improvement Bonds, Trinity Health System, Series 2000,
6.500%, 10/01/30 (Pre-refunded 10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
28,115 Total Ohio 26,335,951
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.5% (1.6% OF TOTAL INVESTMENTS)
1,050 Norman Regional Hospital Authority, Oklahoma, Hospital Revenue 9/16 at 100.00 BB+ 871,007
Bonds, Series 2005, 5.375%, 9/01/36
3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA 3,631,985
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
7,290 5.000%, 2/15/37 2/17 at 100.00 A 6,888,831
1,335 5.000%, 2/15/42 2/17 at 100.00 A 1,244,607
10,035 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 10,051,257
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
143 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 143,188
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.380% 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
23,353 Total Oklahoma 22,830,875
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,060 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 1,118,597
Participation, Series 2005A, 5.000%, 5/01/24 - AGM Insured
2,500 Oregon State Department of Transportation, Highway User Tax 11/14 at 100.00 AAA 2,883,350
Revenue Bonds, Series 2004A, 5.000%, 11/15/21 (Pre-refunded
11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
3,560 Total Oregon 4,001,947
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.5% (2.9% OF TOTAL INVESTMENTS)
980 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 844,123
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
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+ $ 1,447,615
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,127,776
1,000 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 1,073,600
2005, 5.000%, 9/01/29
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 2,756,801
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fifth Series 2004A-1:
4,505 5.000%, 9/01/21 - AGM Insured 9/14 at 100.00 AAA 4,722,141
4,735 5.000%, 9/01/22 - AGM Insured 9/14 at 100.00 AAA 4,942,630
7,870 Philadelphia Redevelopment Authority, Pennsylvania, Multifamily 10/10 at 101.00 N/R 6,839,187
Housing Mortgage Revenue Bonds, Cricket Court Apartments,
Series 1998A, 6.200%, 4/01/25 (Alternative Minimum Tax)
14,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 15,748,040
Revenue Bonds, Philadelphia School District, Series 2003,
5.250%, 6/01/24 (Pre-refunded 6/01/13) - AGM Insured
------------------------------------------------------------------------------------------------------------------------------------
39,015 Total Pennsylvania 40,501,913
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 Aa2 2,522,150
Bonds, Series 2007A, 5.250%, 8/01/57
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.4% (0.3% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed Bonds, Series 2002A:
495 6.125%, 6/01/32 6/12 at 100.00 BBB 480,125
3,315 6.250%, 6/01/42 6/12 at 100.00 BBB 3,182,135
------------------------------------------------------------------------------------------------------------------------------------
3,810 Total Rhode Island 3,662,260
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.2% (3.3% OF TOTAL INVESTMENTS)
8,610 Dorchester County School District 2, South Carolina, 12/14 at 100.00 AA- 8,983,244
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/24
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
5,090 5.250%, 12/01/18 (UB) 12/13 at 100.00 AA 5,551,816
3,595 5.250%, 12/01/20 (UB) 12/13 at 100.00 AA 3,877,136
1,865 5.250%, 12/01/21 (UB) 12/13 at 100.00 AA 1,993,834
Lexington County Health Service District, South Carolina,
Hospital Revenue Bonds, Series 2004:
1,805 6.000%, 5/01/19 (Pre-refunded 5/01/14) 5/14 at 100.00 A+ (4) 2,116,724
2,400 5.500%, 5/01/24 (Pre-refunded 5/01/14) 5/14 at 100.00 A+ (4) 2,768,064
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
13,345 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 15,442,967
1,655 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 1,922,084
3,530 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 3,648,079
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
41,895 Total South Carolina 46,303,948
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.9% (1.2% OF TOTAL INVESTMENTS)
6,400 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 6,134,272
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
6,100 Knox County Health, Educational and Housing Facilities Board, 1/17 at 31.69 A- 1,026,996
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2006, 0.000%, 1/01/40
5,000 Metropolitan Government of Nashville-Davidson County Health and 10/19 at 100.00 AA 5,314,350
Educational Facilities Board, Tennessee, Revenue Refunding
Bonds, Vanderbilt University, Series 2009B, 5.000%, 10/01/39
410 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 377,126
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36
Nuveen Investments 23
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
$ 1,300 5.500%, 11/01/37 (7) 11/17 at 100.00 N/R $ 844,220
3,000 5.500%, 11/01/46 (7) 11/17 at 100.00 N/R 1,948,200
1,300 Tennessee Housing Development Agency, Homeownership Program 7/13 at 100.00 AA+ 1,350,349
Bonds, Series 2004, 5.000%, 7/01/34 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,510 Total Tennessee 16,995,513
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.9% (10.2% OF TOTAL INVESTMENTS)
5,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 3,494,400
Bonds, American Airlines Inc., Series 2007, 5.250%,
12/01/29 (Alternative Minimum Tax)
3,140 Austin Housing Finance Corporation, Texas, GNMA Collateralized 12/10 at 105.00 Aaa 3,327,898
Multifamily Housing Revenue Bonds, Fairway Village Project,
Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax)
8,840 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 AAA 8,735,953
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
2,150 Brazos River Authority, Texas, Pollution Control Revenue 10/13 at 101.00 CCC 1,189,294
Bonds, TXU Energy Company LLC Project, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
2,500 Capital Area Cultural Education Facilities Finance 4/20 at 100.00 Aaa 2,513,675
Corporation, Texas, Revenue Bonds, The Roman Catholic
Diocese of Austin, Series 2005B. Remarketed, 6.125%, 4/01/45
475 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA Single 9/10 at 105.00 AAA 499,529
Family Mortgage Revenue Bonds, Series 2000A, 6.700%,
9/01/33 (Alternative Minimum Tax)
19,125 Harris County Hospital District, Texas, Revenue Refunding 8/10 at 100.00 A (4) 19,442,090
Bonds, Series 2000, 6.000%, 2/15/15 (Pre-refunded 8/15/10)
- NPFG Insured
4,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 A 3,762,840
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
NPFG Insured
5,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 5,344,550
Bonds, Series 2004A, 5.250%, 5/15/25 - NPFG Insured
6,000 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,247,440
Series 2001B, 5.500%, 3/01/15 - AGM Insured
13,975 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 14,158,911
General Obligation Bonds, Series 2007A, 4.750%, 8/01/43 (UB)
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project,
Series 2005:
2,000 5.250%, 8/15/21 No Opt. Call BBB- 1,954,900
2,800 5.125%, 8/15/26 No Opt. Call BBB- 2,571,268
1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 A 1,569,866
Refunding Bonds, Transmission Services Corporation, Series
2003C, 5.250%, 5/15/23 - AMBAC Insured
Lower Colorado River Authority, Texas, Revenue Refunding and
Improvement Bonds, Series 2003:
245 5.250%, 5/15/24 (Pre-refunded 5/15/13) - AMBAC Insured 5/13 at 100.00 A1 (4) 274,674
125 5.250%, 5/15/24 (Pre-refunded 5/15/13) - AMBAC Insured 5/13 at 100.00 A1 (4) 138,358
3,030 Lower Colorado River Authority, Texas, Revenue Refunding and 5/13 at 100.00 A1 3,148,655
Improvement Bonds, Series 2003, 5.250%, 5/15/24 - AMBAC
Insured
5,650 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 5,931,427
Refunding Bonds, Series 2008, 5.750%, 1/01/38
11,000 Pearland Independent School District, Brazoria County, Texas, 2/17 at 100.00 AAA 11,121,110
General Obligation Bonds, Tender Option Bond Trust 1124,
7.514%, 2/15/32 (IF)
2,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC 936,600
Bonds, TXU Electric Company, Series 2001C, 5.200%, 5/01/28
12,130 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 12,212,363
Corporation, Texas, Revenue Bonds, Texas Health Resources,
Series 2007, 5.000%, 2/15/36 (UB)
7,255 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 7,693,420
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 Nuveen Investments
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 N/R (4) $ 4,175,800
Texas, Hospital Revenue Bonds, Adventist Health System -
Sunbelt Obligated Group, Series 2000, 6.700%, 11/15/30
(Pre-refunded 11/15/10)
5,000 Tarrant Regional Water District, Texas, Water Revenue Refunding 3/13 at 100.00 AAA 5,506,300
and Improvement Bonds, Series 1999, 5.250%, 3/01/17 - AGM
Insured
2,985 Texas State, General Obligation Bonds, Series 2008, Trust 3213, 4/17 at 100.00 Aaa 4,033,242
13.470%, 4/01/33 (IF)
25,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central No Opt. Call BBB+ 10,812,000
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 2,320,525
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
157,430 Total Texas 143,117,088
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.0% (0.0% OF TOTAL INVESTMENTS)
100 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 Aaa 100,140
Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
4,680 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100.00 N/R 4,528,930
Residential Rental Housing Revenue Bonds, Mayfair Apartments
I and II, Series 1999, 7.500%, 10/01/39 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.5% (2.3% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 Aaa 2,730,400
Columbia Generating Station - Nuclear Project 2, Series
2002C, 5.750%, 7/01/17 - NPFG Insured
3,125 Skagit County Public Hospital District 1, Washington, General 6/14 at 100.00 A1 3,326,750
Obligation Bonds, Series 2004A, 5.375%, 12/01/20 - NPFG
Insured
5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AA 5,198,900
Bonds, Series 2001, 5.250%, 12/01/26 - NPFG Insured
4,750 Washington State Healthcare Facilities Authority, Revenue 5/10 at 100.50 A2 4,755,510
Bonds, Swedish Health Services, Series 1998, 5.125%,
11/15/22 - AMBAC Insured
Washington State Tobacco Settlement Authority, Tobacco
Settlement Asset-Backed Revenue Bonds, Series 2002:
1,770 6.500%, 6/01/26 6/13 at 100.00 BBB 1,800,940
2,645 6.625%, 6/01/32 6/13 at 100.00 BBB 2,659,045
6,480 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 3,586,421
Bonds, Series 2002-03C, 0.000%, 6/01/24 - NPFG Insured
11,000 Washington, General Obligation Bonds, Series 2000S-5, 0.000%, No Opt. Call AA+ 7,731,460
1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,270 Total Washington 31,789,426
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.1% (2.6% OF TOTAL INVESTMENTS)
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
1,100 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,177,913
300 6.375%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 333,435
Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue
Bonds, Public Schools, Series 2003A:
1,000 5.125%, 8/01/22 (Pre-refunded 8/01/13) - AMBAC Insured 8/13 at 100.00 A1 (4) 1,125,440
750 5.125%, 8/01/23 (Pre-refunded 8/01/13) - AMBAC Insured 8/13 at 100.00 A1 (4) 844,080
1,415 Monroe Redevelopment Authority, Wisconsin, Development Revenue 2/19 at 100.00 A3 1,436,678
Bonds, The Monroe Clinic, Inc., Series 2009, 5.875%, 2/15/39
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,009,780
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+ 9,200,880
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 2,233,529
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 661,214
Bonds, Divine Savior Healthcare, Series 2006, 5.000%,
5/01/32
Nuveen Investments 25
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments April 30, 2010 (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 BBB+ (4) $ 6,933,871
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 6.000%, 9/01/22 (Pre-refunded
9/01/13)
4,995 Wisconsin Health and Educational Facilities Authority, Revenue 9/17 at 100.00 BBB+ 4,446,199
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2007, 5.000%, 9/01/33
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 BBB+ 1,825,940
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 BBB+ 1,918,240
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.250%, 8/15/25
Wisconsin, General Obligation Bonds, Series 2004-3:
175 5.250%, 5/01/19 - FGIC Insured 5/14 at 100.00 AA 189,851
1,265 5.250%, 5/01/21 - FGIC Insured 5/14 at 100.00 AA 1,359,635
1,545 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 Aa2 (4) 1,778,697
5/01/19 (Pre-refunded 5/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
35,535 Total Wisconsin 36,475,382
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,900 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds, 12/15 at 100.00 BBB+ 3,776,254
FMC Corporation, Series 2005, 5.600%, 12/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,560,638 Total Investments (cost $1,381,915,748) - 155.7% 1,398,419,597
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (13.8)% (124,294,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 24,846,722
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation
Value - (44.6)% (6) (400,650,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 898,322,319
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(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 Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 28.7%.
(7) For fair value measurement disclosure purposes, investment categorized as
Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value
Measurements for more information.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1- Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26 Nuveen Investments
NPM | Nuveen Premium Income Municipal Fund 2, Inc.
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.2% (2.1% OF TOTAL INVESTMENTS)
$ 6,995 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 7,088,243
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
(UB)
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A:
3,500 5.250%, 11/15/20 11/15 at 100.00 Baa2 3,425,135
1,000 5.000%, 11/15/30 11/15 at 100.00 Baa2 880,640
12,000 Birmingham Waterworks and Sewer Board, Alabama, Water and Sewer 1/17 at 100.00 AA+ 11,846,880
Revenue Bonds, Series 2007A, 4.500%, 1/01/39 - AMBAC Insured
(UB)
1,960 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,809,237
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) 1,934,813
Alabama, Revenue Bonds, Baptist Medical Center,
Series 2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
6,255 University of South Alabama, Student Tuition Revenue Bonds, 3/14 at 100.00 A1 6,362,523
Series 2004, 5.000%, 3/15/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
33,400 Total Alabama 33,347,471
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.4% (0.2% 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 200,662
265 5.250%, 12/01/25 12/15 at 100.00 BBB 265,140
800 Pima County Industrial Development Authority, Arizona, Revenue 1/15 at 100.00 BBB- 815,400
Bonds, Tucson Electric Power Company, Refunding Series 2008,
5.750%, 9/01/29
2,750 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 2,452,340
Bonds, Citigroup Energy Inc Prepay Contract Obligations,
Series 2007, 5.000%, 12/01/37
------------------------------------------------------------------------------------------------------------------------------------
4,015 Total Arizona 3,733,542
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 Baa1 998,680
Regional Medical Center, Series 2005B, 5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 12.1% (7.8% OF TOTAL INVESTMENTS)
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AA- 5,836,404
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 4,459,040
5,500 5.375%, 5/01/21 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 6,062,980
California Educational Facilities Authority, Revenue Refunding
Bonds, Loyola Marymount University, Series 2001A:
3,255 0.000%, 10/01/23 - NPFG Insured No Opt. Call A2 1,481,025
5,890 0.000%, 10/01/24 - NPFG Insured No Opt. Call A2 2,490,999
7,615 0.000%, 10/01/25 - NPFG Insured No Opt. Call A2 3,015,007
3,740 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 AAA 3,745,273
Bonds, Cedars-Sinai Medical Center, Series 2005, 5.000%,
11/15/27
2,550 California Health Facilities Financing Authority, Revenue 10/19 at 100.00 AA 2,681,911
Bonds, Providence Health & Services, Series 2009B, 5.500%,
10/01/39
2,500 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 2,304,475
Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
2,055 California Infrastructure Economic Development Bank, 10/14 at 100.00 AA+ 2,175,402
Infrastructure State Revolving Fund Revenue Bonds, Series
2004, 5.000%, 10/01/21
1,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 840,150
Bonds, Daughters of Charity Health System, Series 2005A,
5.000%, 7/01/39
5,355 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 5,607,113
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.554%, 11/15/48 (IF)
1,935 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call Aa3 2,191,949
5.250%, 7/01/14
Nuveen Investments 27
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 565 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AAA $ 655,151
5.250%, 7/01/14 (ETM)
7,440 California, General Obligation Bonds, Series 2004, 5.125%, 2/14 at 100.00 A1 7,582,997
2/01/25
20,000 California, General Obligation Bonds, Various Purpose Series 11/19 at 100.00 A1 21,926,200
2009, 6.000%, 11/01/39
4,000 California, State Economic Recovery Revenue Bonds, Refunding 7/19 at 100.00 Aa3 4,486,440
Series 2009A, 5.250%, 7/01/21
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 2,019,966
San Diego Gas and Electric Company, Series 1996A, 5.300%,
7/01/21
2,500 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 A 2,465,075
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 20,458,800
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21 (ETM)
1,385 Fullerton Public Financing Authority, California, Tax 9/15 at 100.00 A- 1,320,043
Allocation Revenue Bonds, Series 2005, 5.000%, 9/01/27 -
AMBAC Insured
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 770,830
Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.750%, 6/01/47
Perris, California, Special Tax Bonds, Community Facilities
District 2001-1, May Farms Improvement Area 4, Series 2005A:
1,420 5.000%, 9/01/25 9/15 at 102.00 N/R 1,110,426
435 5.100%, 9/01/30 9/15 at 102.00 N/R 325,432
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 238,325
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 257,656
2,220 San Diego Redevelopment Agency, California, Subordinate Lien 9/14 at 100.00 A 2,251,546
Tax Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/20 - SYNCORA GTY Insured
960 San Francisco Redevelopment Agency, California, Hotel Tax 7/10 at 100.00 AAA 963,082
Revenue Bonds, Series 1994, 6.750%, 7/01/25 - AGM Insured
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
4,595 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 830,087
32,400 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 4,999,320
6,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 A 6,205,560
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - NPFG Insured
3,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 A+ 2,995,650
Bonds, Turlock Irrigation District, Series 2004A, 5.000%,
1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
171,430 Total California 124,754,314
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.3% (0.8% OF TOTAL INVESTMENTS)
1,700 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AA- 1,823,743
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- 1,769,395
475 5.000%, 6/01/29 6/16 at 100.00 A- 450,889
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 A- 400,772
Valley Health Care, Series 2005F, 5.000%, 3/01/25
270 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 297,599
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
6,925 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- 6,551,188
Revenue Bonds, Convention Center Hotel, Series 2006, 5.125%,
12/01/25 - SYNCORA GTY Insured
1,700 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/10 at 100.00 BB+ 1,661,546
Bonds, Boston Lofts Project, Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,215 Total Colorado 12,955,132
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
5,000 Connecticut, Special Tax Obligation Transportation 1/14 at 100.00 AA 5,408,850
Infrastructure Purpose Bonds, Series 2003B, 5.000%, 1/01/21
- FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
$ 11,720 0.000%, 4/01/27 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 39.61 A (4) $ 4,616,391
13,780 0.000%, 4/01/28 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 37.21 A (4) 5,099,427
15,855 0.000%, 4/01/29 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 35.07 A (4) 5,529,431
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AA+ 1,322,745
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.356%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
42,690 Total District of Columbia 16,567,994
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 52.3% (33.7% OF TOTAL INVESTMENTS)
1,000 Alachua County School Board, Florida, Certificates of 7/11 at 101.00 A1 1,031,390
Participation, Series 2001, 5.000%, 7/01/21 - AMBAC Insured
1,055 Bay County School Board, Florida, Certificates of 7/14 at 100.00 N/R 1,038,109
Participation, Series 2004, 5.000%, 7/01/24 - AMBAC Insured
1,700 Beacon Tradeport Community Development District, Miami-Dade 5/12 at 102.00 N/R 1,614,728
County, Florida, Special Assessment Bonds, Commercial
Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured
1,500 Bradford County Health Facility Authority, Florida, Revenue No Opt. Call AAA 1,729,275
Refunding Bonds, Santa Fe Healthcare Inc., Series 1993,
6.050%, 11/15/16 (ETM)
1,730 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- 1,729,931
Bonds, Health First Inc. Project, Series 2005, 5.000%,
4/01/24
2,500 Broward County Educational Facilities Authority, Florida, 4/14 at 100.00 BBB 2,494,975
Revenue Bonds, Nova Southeastern University, Series 2004B,
5.625%, 4/01/34
900 Broward County Housing Finance Authority, Florida, Multifamily 5/10 at 101.00 Aaa 908,982
Housing Revenue Bonds, Emerald Palms Apartments, Series
2001A, 5.600%, 7/01/21 (Alternative Minimum Tax)
290 Broward County Housing Finance Authority, Florida, Single 7/10 at 25.77 Aaa 73,515
Family Mortgage Revenue Bonds, Series 2001C, 0.000%,
4/01/33 (Alternative Minimum Tax)
205 Broward County Housing Finance Authority, Florida, Single 7/10 at 27.56 Aaa 57,945
Family Mortgage Revenue Refunding Bonds, Series 2000B,
0.000%, 4/01/29 (Alternative Minimum Tax)
1,870 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 1,962,864
Participation, Series 2004C, 5.250%, 7/01/20 - AGM Insured
Broward County, Florida, Airport System Revenue Bonds, Series
2001-J1:
2,225 5.250%, 10/01/21 - AMBAC Insured (Alternative Minimum Tax) 10/11 at 101.00 A+ 2,245,603
8,900 5.250%, 10/01/26 - AMBAC Insured (Alternative Minimum Tax) 10/11 at 101.00 A+ 8,860,840
2,150 Broward County, Florida, Airport System Revenue Bonds, Series 10/14 at 100.00 A+ 2,239,332
2004L, 5.000%, 10/01/23 - AMBAC Insured
2,000 Broward County, Florida, Water and Sewer System Revenue Bonds, 10/18 at 100.00 AA 2,091,240
Series 2009A, 5.250%, 10/01/34
650 Cape Coral, Florida, Water and Sewer Revenue Bonds, Series 10/16 at 100.00 A1 609,264
2006, 5.000%, 10/01/36 - AMBAC Insured
1,500 Citrus County Hospital Board, Florida, Revenue Bonds, Citrus 8/13 at 100.00 Baa3 1,513,740
Memorial Hospital, Refunding Series 2002, 6.375%, 8/15/32
750 City of Gainesville, Florida, Utilities System Revenue Bonds, 10/13 at 100.00 AA (4) 852,405
Series 2003A, 5.250%, 10/01/21 (Pre-refunded 10/01/13)
3,010 Cocoa, Florida, Water and Sewerage System Revenue Refunding No Opt. Call AA- 3,439,828
Bonds, Series 2003, 5.500%, 10/01/23 - AMBAC Insured
2,815 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 2,943,561
Series 2005, 5.000%, 10/01/23 - NPFG Insured
1,290 Escambia County, Florida, Tourist Development Revenue 10/12 at 100.00 A1 1,385,060
Refunding Bonds, Series 2002, 5.000%, 10/01/18 - NPFG
Insured
4,230 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 A 4,285,878
Series 2005, 5.000%, 10/01/30 - NPFG Insured
2,000 Florida Board of Education, Lottery Revenue Bonds, Series 7/11 at 101.00 AAA 2,069,920
2001B, 5.000%, 7/01/20 - FGIC Insured
90 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 97,732
Ownership Revenue Refunding Bonds, Series 1987G-1, 8.595%,
11/01/17
255 Florida Housing Finance Agency, Homeowner Mortgage Revenue 7/10 at 100.00 AA+ 255,278
Bonds, New Money and Refunding Issue, Series 1996-2,
6.350%, 7/01/28 (Alternative Minimum Tax)
Nuveen Investments 29
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 670 Florida Housing Finance Agency, Homeowner Mortgage Revenue 7/10 at 100.00 AA+ $ 677,544
Bonds, Series 1997-2, 5.900%, 7/01/29 - NPFG Insured
(Alternative Minimum Tax)
1,000 Florida Housing Finance Agency, Housing Revenue Bonds, Holly 10/10 at 100.00 N/R 999,880
Cove Apartments, Series 1995F, 6.150%, 10/01/25 - AMBAC
Insured (Alternative Minimum Tax)
5,790 Florida Housing Finance Corporation, FNMA Revenue Bonds, Villa 10/10 at 102.00 Aaa 5,924,733
de Mallorca Apartments, Series 2000H-1, 6.000%, 7/01/33
(Alternative Minimum Tax)
540 Florida Housing Finance Corporation, Homeowner Mortgage 7/10 at 100.00 AAA 540,513
Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 - AGM
Insured (Alternative Minimum Tax)
1,575 Florida Housing Finance Corporation, Homeowner Mortgage 1/16 at 100.00 AA+ 1,550,871
Revenue Bonds, Series 2006-6, 4.625%, 7/01/31 (Alternative
Minimum Tax)
3,170 Florida Housing Finance Corporation, Housing Revenue Refunding 6/10 at 101.00 AA 3,181,602
Bonds, Hunters Ridge at Deerwood Apartments, Series 1998-0,
5.300%, 12/01/28
1,280 Florida Intergovernmental Finance Commission, Capital Revenue 8/11 at 100.00 Aa3 1,312,474
Bonds, Daytona Beach Community Redevelopment Agency, Series
2001C-1, 5.000%, 2/01/20 - AMBAC Insured
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
1,040 0.000%, 11/01/25 - NPFG Insured No Opt. Call A 436,457
1,590 0.000%, 11/01/26 - NPFG Insured No Opt. Call A 622,882
1,685 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, 5/13 at 100.00 A 1,734,640
5.000%, 5/01/22 - NPFG Insured
5,000 Florida Ports Financing Commission, Revenue Bonds, State 6/10 at 100.00 A 5,000,150
Transportation Trust Fund, Series 1996, 5.375%, 6/01/27 -
NPFG Insured (Alternative Minimum Tax)
13,925 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 15,049,304
Education Capital Outlay Bonds, Series 2002B, 5.000%,
6/01/20 - NPFG Insured
185 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 197,066
Education Capital Outlay Bonds, Series 2002F, 5.000%,
6/01/22 - NPFG Insured
9,230 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 9,370,850
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/31 - FGIC Insured
5,000 Florida State Board of Education, Public Education Capital 6/18 at 101.00 AAA 5,264,600
Outlay Bonds, Series 2009B, 5.000%, 6/01/34
14,985 Florida State Board of Education, State University System 7/15 at 101.00 AA 15,530,754
Revenue Bonds, Series 2006A, 5.000%, 7/01/30 - FGIC Insured
(UB)
5,980 Florida State Department of Management Services, Certificates 8/15 at 101.00 AA+ 6,286,654
of Participation, Series 2006A, 5.000%, 8/01/23 - NPFG
Insured
2,580 Florida State Education System, Housing Facility Revenue No Opt. Call A 2,746,333
Bonds, Florida International University, Series 2004A,
5.000%, 7/01/14 - NPFG Insured
6,000 Florida State Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 101.00 AA- 6,123,960
Department of Transportation, Series 2003C, 5.000%, 7/01/33
3,500 Florida State Water Pollution Control Financing Corporation, 1/19 at 100.00 AAA 3,686,585
Revolving Fund Revenue Bonds, Series 2009A, 5.000%, 1/15/29
2,345 FSU Financial Assistance Inc., Florida, General Revenue Bonds, 10/14 at 100.00 A1 2,506,125
Educational and Athletic Facilities Improvements, Series
2004, 5.000%, 10/01/16 - AMBAC Insured
12,000 Greater Orlando Aviation Authority, Florida, Airport 10/10 at 100.00 Aa3 12,002,640
Facilities Revenue Bonds, Series 1999A, 5.125%, 10/01/28 -
FGIC Insured (Alternative Minimum Tax)
8,000 Greater Orlando Aviation Authority, Florida, Airport 10/12 at 100.00 AAA 8,082,960
Facilities Revenue Bonds, Series 2002B, 5.125%, 10/01/21 -
AGM Insured (Alternative Minimum Tax)
Halifax Hospital Medical Center, Florida, Revenue Bonds,
Series 2006:
5,385 5.500%, 6/01/38 - AGM Insured 6/18 at 100.00 AAA 5,454,790
1,300 5.000%, 6/01/38 6/16 at 100.00 A- 1,202,266
1,755 5.375%, 6/01/46 6/16 at 100.00 A- 1,672,638
5,000 Hernando County, Florida, Revenue Bonds, Criminal Justice No Opt. Call A 5,929,450
Complex Financing Program, Series 1986, 7.650%, 7/01/16 -
FGIC Insured
7,200 Highlands County Health Facilities Authority, Florida, 11/11 at 101.00 N/R (4) 7,820,208
Hospital Revenue Bonds, Adventist Health System/Sunbelt
Obligated Group, Series 2001A, 6.000%, 11/15/31
(Pre-refunded 11/15/11)
3,600 Hillsborough County Industrial Development Authority, Florida, 4/12 at 100.00 N/R 3,154,320
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%,
4/01/30 (Alternative Minimum Tax)
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 1,365 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 $ 1,308,271
Hospital Revenue Bonds, Tampa General Hospital, Series
2006, 5.250%, 10/01/41
2,000 Hillsborough County Industrial Development Authority, Florida, 10/13 at 100.00 A3 2,015,460
Hospital Revenue Refunding Bonds, Tampa General Hospital,
Series 2003A, 5.250%, 10/01/24
1,535 Hillsborough County, Florida, Community Investment Tax Revenue 11/13 at 101.00 AA+ 1,601,036
Bonds, Series 2004, 5.000%, 5/01/24 - AMBAC Insured
2,170 Hillsborough County, Florida, Revenue Refunding Bonds, Tampa 10/15 at 100.00 AA+ 2,277,957
Bay Arena, Series 2005, 5.000%, 10/01/25 - FGIC Insured
1,500 Hollywood, Florida, Water and Sewer Revenue Refunding and 10/13 at 100.00 Aa2 1,571,730
Improvement Bonds, Series 2003, 5.000%, 10/01/20 - AGM
Insured
1,430 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 Aa2 1,451,607
Bonds, Series 2001, 5.000%, 10/01/23 - AMBAC Insured
Jacksonville, Florida, Better Jacksonville Sales Tax Revenue
Bonds, Series 2003:
4,990 5.250%, 10/01/21 - NPFG Insured 10/13 at 100.00 Aa2 5,265,697
2,090 5.000%, 10/01/22 - NPFG Insured 10/13 at 100.00 Aa2 2,180,204
3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 10/13 at 100.00 Aa2 3,225,575
Series 2003C, 5.250%, 10/01/18 - NPFG Insured (Alternative
Minimum Tax)
Jacksonville, Florida, Guaranteed Entitlement Revenue
Refunding and Improvement Bonds, Series 2002:
2,230 5.000%, 10/01/21 - FGIC Insured 10/12 at 100.00 A+ 2,286,307
2,000 5.000%, 10/01/22 - FGIC Insured 10/12 at 100.00 A+ 2,045,940
2,750 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AA+ 2,968,433
Refunding and Improvement Bonds, Series 2002, 5.375%,
10/01/17 - FGIC Insured
JEA, Florida, Water and Sewerage System Revenue Bonds, Series
2004A:
3,235 5.000%, 10/01/18 - FGIC Insured 10/13 at 100.00 Aa2 3,537,117
5,090 5.000%, 10/01/19 - FGIC Insured 10/13 at 100.00 Aa2 5,528,860
Lake County School Board, Florida, Certificates of
Participation, Series 2004A:
1,190 5.000%, 7/01/20 - AMBAC Insured 7/14 at 100.00 A 1,218,905
1,470 5.000%, 7/01/24 - AMBAC Insured 7/14 at 100.00 A 1,481,451
4,250 Lakeland, Florida, Energy System Revenue Refunding Bonds, No Opt. Call AAA 4,554,087
Series 1999C, 6.050%, 10/01/11 - FGIC Insured
1,460 Lakeland, Florida, Hospital System Revenue Bonds, Lakeland 11/16 at 100.00 A2 1,445,867
Regional Medical Center, Series 2006, 5.000%, 11/15/26
1,065 Lee County Industrial Development Authority, Florida, 11/12 at 100.00 Aa3 1,076,119
Utilities Revenue Bonds, Bonita Springs Utilities Inc.
Project, Series 2002, 5.000%, 11/01/19 - NPFG Insured
(Alternative Minimum Tax)
1,000 Lee County, Florida, Transportation Facilities Revenue Bonds, No Opt. Call A- 1,111,270
Series 2004B, 5.000%, 10/01/14 - AMBAC Insured
3,500 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 A 3,377,850
Series 2007A, 5.000%, 4/01/32 - NPFG Insured
2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 BBB+ 2,304,783
Medical Center Project, Series 2002, 5.375%, 7/01/22
3,430 Leesburg, Florida, Hospital Revenue Refunding Bonds, Leesburg No Opt. Call BBB+ 3,543,670
Regional Medical Center Project, Series 2003, 5.000%,
7/01/12
5,130 Manatee County School District, Florida, Sales Tax Revenue 10/13 at 100.00 A1 5,384,243
Bonds, Series 2003, 5.000%, 10/01/17 - AMBAC Insured
6,500 Marion County Hospital District, Florida, Revenue Bonds, 10/17 at 100.00 A3 5,984,030
Munroe Regional Medical Center, Series 2007, 5.000%,
10/01/34
Miami-Dade County Educational Facilities Authority, Florida,
Revenue Bonds, University of Miami, Series 2004A:
2,290 5.000%, 4/01/19 (Pre-refunded 4/01/14) - AMBAC Insured 4/14 at 100.00 N/R (4) 2,587,425
3,305 5.000%, 4/01/22 (Pre-refunded 4/01/14) - AMBAC Insured 4/14 at 100.00 N/R (4) 3,734,253
Miami-Dade County Expressway Authority, Florida, Toll System
Revenue Bonds, Series 2004B:
2,000 5.250%, 7/01/18 - FGIC Insured 7/14 at 100.00 A 2,131,400
2,000 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 A 2,064,360
2,000 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 A3 2,041,900
Revenue Refunding Bonds, Series 2001, 5.000%, 7/01/21 -
FGIC Insured
Nuveen Investments 31
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 3,000 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA $ 3,204,990
Revenue Refunding Bonds, Miami Children's Hospital, Series
2001A, 5.125%, 8/15/26 (Pre-refunded 8/15/11) - AMBAC
Insured
30 Miami-Dade County Housing Authority, Florida, Home Owner 10/10 at 100.00 Aaa 30,817
Mortgage Revenue Bonds, Series 1999A-1, 5.550%, 10/01/19
(Alternative Minimum Tax)
3,630 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 3,715,813
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.950%, 7/01/30 - AGM Insured (Alternative
Minimum Tax)
1,480 Miami-Dade County Industrial Development Authority, Florida, 10/10 at 100.00 N/R 1,417,337
Industrial Development Revenue Bonds, Airis Miami II LLC -
Miami International Airport, Series 1999, 6.000%, 10/15/25
- AMBAC Insured (Alternative Minimum Tax)
1,970 Miami-Dade County School Board, Florida, Certificates of 11/16 at 100.00 A1 1,962,278
Participation, Series 2006B, 5.000%, 11/01/31 - AMBAC
Insured
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/10 at 100.00 A 7,431,300
International Airport, Series 1998A, 5.000%, 10/01/24 -
FGIC Insured (Alternative Minimum Tax)
4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/10 at 100.00 A 3,999,920
International Airport, Series 1998C, 5.000%, 10/01/23 -
NPFG Insured (Alternative Minimum Tax)
5,390 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A 5,551,323
International Airport, Series 2002, 5.750%, 10/01/18 - FGIC
Insured (Alternative Minimum Tax)
2,645 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 2,455,882
International Airport, Series 2005A, 5.000%, 10/01/38 -
CIFG Insured (Alternative Minimum Tax)
5,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/19 at 100.00 A2 5,088,000
International Airport, Series 2009A, 5.500%, 10/01/41
4,000 Miami-Dade County, Florida, General Obligation Bonds, Build 7/18 at 100.00 Aa2 4,253,920
Better Communities Program, Series 2009-B1, 5.625%, 7/01/38
11,300 Miami-Dade County, Florida, Transit System Sales Surtax 7/18 at 100.00 AAA 11,550,182
Revenue Bonds, Series 2008, 5.000%, 7/01/35 - AGM Insured
3,300 Miami-Dade County, Florida, Water and Sewer System Revenue 10/10 at 100.50 Aa2 3,328,182
Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured
1,175 Naples, Florida, Water and Sewer Revenue Bonds, Series 2002, 9/12 at 100.00 Aa2 (4) 1,287,859
5.000%, 9/01/14 (Pre-refunded 9/01/12)
North Broward Hospital District, Florida, Revenue and
Improvement Bonds, Series 2001:
12,125 6.000%, 1/15/31 (Pre-refunded 1/15/11) 1/11 at 101.00 A2 (4) 12,724,218
1,375 6.000%, 1/15/31 (Pre-refunded 1/15/11) 1/11 at 101.00 A2 (4) 1,442,952
2,475 Northern Palm Beach County Improvement District, Florida, 8/10 at 102.00 N/R 2,522,074
Revenue Bonds, Water Control and Improvement Development
Unit 19, Series 2000, 6.100%, 8/01/21 - RAAI Insured
1,100 Okaloosa County, Florida, Water and Sewer Revenue Bonds, 7/16 at 100.00 AAA 1,118,018
Series 2006, 5.000%, 7/01/36 - AGM Insured
2,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, Series 7/10 at 100.00 A 2,007,560
1994, 6.125%, 1/01/24 - FGIC Insured
6,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A1 (4) 6,257,160
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/12 at 101.00 N/R (4) 5,516,650
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2002, 5.250%, 11/15/18 (Pre-refunded 11/15/12)
Orange County Health Facilities Authority, Florida, Hospital
Revenue Bonds, Orlando Regional Healthcare System, Series 2002:
3,695 5.750%, 12/01/27 (Pre-refunded 12/01/12) 12/12 at 100.00 AAA 4,127,611
1,000 5.750%, 12/01/32 (Pre-refunded 12/01/12) 12/12 at 100.00 AAA 1,117,080
2,440 Orange County School Board, Florida, Certificates of 8/14 at 100.00 Aa3 2,518,300
Participation, Series 2004A, 5.000%, 8/01/22 - AMBAC Insured
Orange County, Florida, Sales Tax Revenue Bonds, Series 2002A:
1,665 5.125%, 1/01/20 - FGIC Insured 1/13 at 100.00 AA 1,729,852
3,400 5.125%, 1/01/23 - FGIC Insured 1/13 at 100.00 AA 3,559,018
Orlando Community Redevelopment Agency, Florida, Tax Increment
Revenue Bonds, Republic Drive-Universal Boulevard - I-4
Interchange Project, Series 2002:
1,495 5.125%, 4/01/20 - AMBAC Insured 4/12 at 100.00 N/R 1,484,954
1,225 5.125%, 4/01/21 - AMBAC Insured 4/12 at 100.00 N/R 1,206,845
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 5,000 Orlando Utilities Commission, Florida, Water and Electric No Opt. Call Aa1 $ 5,116,900
Revenue Refunding Bonds, Series 1992, 6.000%, 10/01/10
4,295 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 (4) 4,736,225
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/18
(Pre-refunded 10/01/12)
575 Osceola County Industrial Development Authority, Florida, 8/11 at 101.00 A 550,649
Industrial Development Revenue Bonds, P.M. Wells Charter
School Project, Series 2001A, 5.000%, 8/01/23 - NPFG Insured
Osceola County, Florida, Transportation Revenue Bonds, Osceola
Parkway, Series 2004:
3,745 5.000%, 4/01/22 - NPFG Insured 4/14 at 100.00 Aa3 3,860,983
2,000 5.000%, 4/01/23 - NPFG Insured 4/14 at 100.00 Aa3 2,055,600
Palm Beach County Health Facilities Authority, Florida,
Hospital Revenue Refunding Bonds, BRCH Corporation Obligated
Group, Series 2001:
3,895 5.500%, 12/01/21 12/11 at 101.00 BBB- 3,533,895
6,470 5.625%, 12/01/31 12/11 at 101.00 BBB- 5,524,733
6,090 Palm Beach County School Board, Florida, Certificates of 8/16 at 100.00 AAA 6,702,349
Participation, Drivers Trust 2089, 12.735%, 8/01/31 - AGM
Insured (IF)
2,040 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,160,768
Participation, Series 2002D, 5.250%, 8/01/21 - AGM Insured
1,500 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AA- 1,555,245
Participation, Series 2004A, 5.000%, 8/01/22 - FGIC Insured
3,000 Palm Beach County School Board, Florida, Certificates of 8/17 at 100.00 AA- 3,097,380
Participation, Series 2007E, 5.000%, 8/01/27 - NPFG Insured
4,490 Palm Beach County, Florida, Public Improvement Revenue Bonds, 6/15 at 100.00 AA+ 4,601,127
Biomedical Research Park Project, Series 2005A, 5.000%,
6/01/25 - AMBAC Insured
4,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, FPL 10/19 at 100.00 AAA 4,354,680
Reclaimed Water Project, Series 2009, 5.250%, 10/01/33
6,545 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/16 at 100.00 AAA 7,233,141
Series 2006A, Trust 2622, 11.746%, 10/01/36 (IF)
10,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/16 at 100.00 AAA 10,491,600
Series 2006A, 5.000%, 10/01/31 (UB)
2,500 Polk County School District, Florida, Sales Tax Revenue Bonds, 10/14 at 100.00 AAA 2,781,375
Series 2004, 5.250%, 10/01/18 - AGM Insured
2,060 Polk County, Florida, Utility System Revenue Bonds, Series 10/13 at 100.00 Aa3 2,167,635
2003, 5.250%, 10/01/22 - FGIC Insured
2,000 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A 1,837,880
Southwest Annexation District 1B, Series 2007, 5.000%,
7/01/33 - NPFG Insured
1,350 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 A+ 1,426,653
5.000%, 9/01/21 - NPFG Insured
650 Reedy Creek Improvement District, Florida, Utility Revenue 10/15 at 100.00 A1 669,545
Bonds, Series 2005-1, 5.000%, 10/01/25 - AMBAC Insured
3,240 Reedy Creek Improvement District, Orange and Osceola Counties, 4/14 at 100.00 Aa3 3,308,947
Florida, General Obligation Bonds, Series 2004A, 5.000%,
6/01/22 - NPFG Insured
1,640 Rivercrest Community Development District, Florida, Special 5/18 at 100.00 A- 1,507,701
Assessment Bonds, Series 2007, 5.000%, 5/01/30 - RAAI
Insured
2,750 Saint Johns County, Florida, Transportation Improvement 10/13 at 100.00 Aa3 2,828,485
Revenue Bonds, Series 2003, 5.000%, 10/01/23 - AMBAC Insured
3,570 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call A (4) 4,295,424
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 - NPFG
Insured (ETM)
1,680 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call A 1,951,522
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 - NPFG
Insured
625 Sonoma Bay Community Development District, Florida, Special 5/15 at 100.00 N/R 562,619
Assessment Bonds, Series 2005A, 5.450%, 5/01/36
10,000 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 Aa3 (4) 11,007,600
Bonds, Series 2002, 5.625%, 5/01/32 (Pre-refunded 5/01/12)
7,500 South Florida Water Management District, Certificates of 10/16 at 100.00 AA+ 7,746,375
Participation, Series 2006, Trust 1036, 9.062%, 10/01/36 -
AMBAC Insured (IF)
Nuveen Investments 33
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 5,000 South Florida Water Management District, Certificates of 10/16 at 100.00 AA+ $ 5,082,100
Participation, Series 2006, 5.000%, 10/01/36 - AMBAC Insured
2,455 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 2,412,332
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
St. John's County Industrial Development Authority, Florida,
First Mortgage Revenue Bonds, Presbyterian Retirement
Communities, Series 2004A:
2,250 5.850%, 8/01/24 8/14 at 101.00 N/R 2,236,882
3,135 5.625%, 8/01/34 8/14 at 101.00 N/R 2,895,298
5,000 Sumter County, Florida, Capital Improvement Revenue Bonds, 6/16 at 100.00 A 4,956,600
Series 2006, 5.000%, 6/01/36 - AMBAC Insured
620 Tallahassee, Florida, Consolidated Utility System Revenue 10/15 at 100.00 Aa1 651,769
Bonds, Series 2005, 5.000%, 10/01/25 - AMBAC Insured
5,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AA 5,106,800
2005, 5.000%, 10/01/35 - NPFG Insured
5,000 Tampa Ba, Florida, Regional Water Supply Authority Utility 10/18 at 100.00 AA+ 5,201,850
System Revenue Bonds, Series 2008, 5.000%, 10/01/34
Tampa Sports Authority, Hillsborough County, Florida, Sales
Tax Payments Special Purpose Bonds, Stadium Project, Series
1995:
1,250 5.750%, 10/01/20 - NPFG Insured No Opt. Call A 1,358,387
2,785 5.750%, 10/01/25 - NPFG Insured No Opt. Call A 3,010,669
9,535 Tampa-Hillsborough County Expressway Authority, Florida, 7/15 at 101.00 A- 10,391,529
Revenue Bonds, Series 2005, 5.000%, 7/01/16 - AMBAC Insured
Volusia County School Board, Florida, Sales Tax Revenue Bonds,
Series 2002:
11,815 5.375%, 10/01/14 - AGM Insured 10/12 at 100.00 AAA 12,753,465
8,605 5.375%, 10/01/15 - AGM Insured 10/12 at 100.00 AAA 9,288,495
1,000 Volusia County, Florida, Tax Revenue Bonds, Tourist 12/14 at 100.00 Aa3 1,034,290
Development, Series 2004, 5.000%, 12/01/24 - AGM Insured
1,585 Winter Springs, Florida, Water and Sewer Revenue Refunding 4/11 at 101.00 A 1,647,401
Bonds, Series 2001, 5.000%, 4/01/20 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
522,050 Total Florida 539,205,449
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.0% (0.6% OF TOTAL INVESTMENTS)
500 Chatham County Hospital Authority, Savannah, Georgia, Hospital 1/14 at 100.00 Baa2 458,040
Revenue Bonds, Memorial Health University Medical Center
Inc., Series 2004A, 5.375%, 1/01/26
10 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 Aaa 11,394
Revenue Bonds, Series 2003A, 5.250%, 11/01/15 (Pre-refunded
11/01/13) - NPFG Insured
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
3,405 5.250%, 11/01/15 - NPFG Insured 11/13 at 100.00 A1 3,770,867
3,365 5.000%, 11/01/18 - NPFG Insured 11/13 at 100.00 A1 3,631,845
2,235 Richmond County Development Authority, Georgia, Revenue Bonds, 12/14 at 100.00 N/R 2,151,813
Medical College of Georgia, Cancer Research Center Project,
Series 2004A, 5.000%, 12/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,515 Total Georgia 10,023,959
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.5% (0.3% OF TOTAL INVESTMENTS)
100 Idaho Housing Agency, Senior Lien Single Family Mortgage 7/10 at 100.00 Aaa 100,581
Bonds, Series 1995F, 6.450%, 7/01/27 (Alternative Minimum
Tax)
3,095 Idaho Housing and Finance Association, GNMA Housing Revenue 3/12 at 105.00 Aaa 3,318,645
Refunding Bonds, Wedgewood Terrace Project, Series 2002A-1,
7.250%, 3/20/37
140 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aa1 140,784
Bonds, Series 1996G, 6.350%, 7/01/26 (Alternative Minimum
Tax)
150 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aa2 153,951
Bonds, Series 2000B, 6.250%, 7/01/22 (Alternative Minimum
Tax)
235 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 244,151
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum
Tax)
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO (continued)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
$ 1,000 5.250%, 9/01/30 9/16 at 100.00 BBB- $ 916,870
470 5.250%, 9/01/37 9/16 at 100.00 BBB- 414,310
------------------------------------------------------------------------------------------------------------------------------------
5,190 Total Idaho 5,289,292
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.2% (5.9% OF TOTAL INVESTMENTS)
5,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call Aa2 3,110,000
Obligation Bonds, Dedicated Tax Revenues, Series 1999A,
0.000%, 12/01/20 - FGIC Insured
22,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call Aa2 10,891,802
Series 1999, 0.000%, 1/01/25 - FGIC Insured
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 6/10 at 101.00 Aaa 1,190,604
Revenue Bonds, Bryn Mawr-Belle Shores Project, Series 1997,
5.800%, 6/01/23 (Alternative Minimum Tax)
2,135 Chicago, Illinois, Tax Increment Allocation Bonds, 7/10 at 100.00 N/R 2,137,413
Read-Dunning Redevelopment Project, Series 1996B, 7.250%,
1/01/14
2,180 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 7/10 at 100.00 N/R 2,183,357
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 Aa2 (4) 3,089,324
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured (ETM)
2,575 Cook County Community High School District 219, Niles No Opt. Call Baa1 1,471,561
Township, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - NPFG Insured
3,615 Cook County Community High School District 219, Niles No Opt. Call N/R (4) 2,456,284
Township, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - NPFG Insured (ETM)
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,000 5.250%, 11/15/14 5/14 at 100.00 A 2,151,740
4,420 5.250%, 11/15/15 5/14 at 100.00 A 4,696,736
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BB+ 342,414
Series 2006, 5.125%, 1/01/25
1,900 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 2,152,776
Series 2009A, 7.750%, 8/15/34
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,092,760
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
3,090 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 AA+ 3,181,093
Forest Hospital, Series 2003, 6.000%, 7/01/33
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call Aa2 3,465,810
Lutheran General Health System, Series 1993C, 6.000%,
4/01/18
10,000 Illinois State, General Obligation Refunding Bonds, Series 1/20 at 100.00 AAA 10,662,600
2010, 5.000%, 1/01/21 - AGM Insured
11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call Aa3 12,852,510
Series 2001, 6.000%, 11/01/26 - FGIC Insured
2,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 Aa3 2,166,380
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 - AGM Insured No Opt. Call Aa3 2,134,933
1,740 0.000%, 11/01/21 - AGM Insured No Opt. Call Aa3 1,029,262
4,020 Lake, Cook, Kane and McHenry Counties Community Unit School No Opt. Call AAA 4,766,072
District 220, Barrington, Illinois, General Obligation
Bonds, Series 2002, 5.250%, 12/01/20 - AGM Insured (UB)
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
855 5.250%, 1/01/25 1/16 at 100.00 AA 882,830
1,750 5.250%, 1/01/30 1/16 at 100.00 AA 1,779,872
17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call N/R 9,868,853
District 158, Huntley, Illinois, General Obligation Bonds,
Series 2003, 0.000%, 1/01/22 - FGIC Insured
2,910 McHenry County Community High School District 154, Marengo, No Opt. Call Aa2 1,823,319
Illinois, Capital Appreciation School Bonds, Series 2001,
0.000%, 1/01/21 - FGIC Insured
Nuveen Investments 35
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 2,975 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA $ 3,019,506
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
118,445 Total Illinois 94,599,811
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,000 Ball State University, Indiana, Student Fee Revenue Bonds, 1/12 at 100.00 A+ (4) 1,084,100
Series 2002K, 5.750%, 7/01/20 (Pre-refunded 1/01/12) - FGIC
Insured
3,880 Indiana Finance Authority Health System Revenue Bonds, Sisters 11/19 at 100.00 Aa3 3,964,429
of St. Francis Health Services, Inc. Obligated Group,
Series 2009, 5.250%, 11/01/39
Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series 2000:
805 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 829,174
4,195 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 4,320,976
Indiana University, Student Fee Revenue Bonds, Series 2004P:
2,750 5.000%, 8/01/22 - AMBAC Insured 8/14 at 100.00 Aa1 2,903,532
1,600 5.000%, 8/01/24 - AMBAC Insured 8/14 at 100.00 Aa1 1,677,728
4,300 Saint Joseph County, Indiana, Educational Facilities Revenue 3/18 at 100.00 Aaa 4,561,354
Bonds, University of Notre Dame du Lac, Refunding Series
2009., 5.000%, 3/01/36
1,550 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BB+ 1,373,409
Madison Center Inc., Series 2005, 5.250%, 2/15/23
------------------------------------------------------------------------------------------------------------------------------------
20,080 Total Indiana 20,714,702
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,003,480
Medical Center, Series 2000, 6.250%, 7/01/25
8,100 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 5,982,579
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
1,920 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 2,016,058
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
12,020 Total Iowa 10,002,117
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
90 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 91,921
Single Family Mortgage Revenue Refunding Bonds, Series
1994A-1, 7.900%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4% (0.3% OF TOTAL INVESTMENTS)
4,300 Kentucky Economic Development Finance Authority, Hospital No Opt. Call Baa2 4,457,337
Facilities Revenue Bonds, Owensboro Medical Health System,
Series 2010A, 6.500%, 3/01/45
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.6% (2.3% OF TOTAL INVESTMENTS)
60 Bossier Public Trust Financing Authority, Louisiana, Single 8/10 at 100.00 AAA 60,065
Family Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
4,350 Louisiana Citizens Property Insurance Corporation, Assessment 6/16 at 100.00 A- 4,394,805
Revenue Bonds, Series 2006B, 5.000%, 6/01/22 - AMBAC Insured
4,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 4,001,480
Franciscan Missionaries of Our Lady Health System, Series
2005A, 5.250%, 8/15/31
2,700 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 Baa1 2,453,166
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline Tax Revenue Bonds, Series 2006A:
14,550 4.750%, 5/01/39 - AGM Insured (UB) 5/16 at 100.000 AAA 14,583,902
5,920 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.000 Aa1 5,832,324
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
25 5.500%, 5/15/30 5/11 at 101.00 BBB 25,033
6,265 5.875%, 5/15/39 5/11 at 101.00 BBB 6,074,043
------------------------------------------------------------------------------------------------------------------------------------
37,870 Total Louisiana 37,424,818
------------------------------------------------------------------------------------------------------------------------------------
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 $ 1,651,532
Revenue Bonds, Series 2006A, 5.250%, 9/01/26 - SYNCORA GTY
Insured
1,205 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 1,153,763
Revenue Refunding Bonds, University of Maryland College Park
Projects, Series 2006, 5.000%, 6/01/28 - CIFG Insured
1,390 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 1,594,719
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.250%, 7/01/19 (Pre-refunded 7/01/14)
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Maryland 4,400,014
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.1% (2.6% OF TOTAL INVESTMENTS)
1,625 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,567,459
Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series
2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
1,410 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,279,913
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 988,260
Hampshire College, Series 2004, 5.700%, 10/01/34
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 9,195,644
Revenue Bonds, Berkshire Health System, Series 2001E,
5.700%, 10/01/25 - RAAI Insured
1,100 Massachusetts Health and Educational Facilities Authority, 1/11 at 100.00 BBB 1,086,096
Revenue Bonds, Caritas Christi Obligated Group, Series
1999A, 5.625%, 7/01/20
2,645 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R 2,330,959
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.000%, 5/15/25 - FGIC Insured
105 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) 113,680
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.000%, 5/15/25 (Pre-refunded 5/15/12) - FGIC Insured
3,795 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 AAA 3,703,275
Series 2007A, 4.500%, 8/01/46 - AGM Insured (UB)
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
11,400 5.250%, 1/01/21 (Pre-refunded 1/01/13) - AGM Insured 1/13 at 100.00 AAA 12,607,602
1,850 5.250%, 1/01/21 (Pre-refunded 1/01/13) - AGM Insured 1/13 at 100.00 AAA 2,045,970
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 A1 (4) 2,531,633
4,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A1 (4) 4,500,680
------------------------------------------------------------------------------------------------------------------------------------
40,355 Total Massachusetts 41,951,171
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7% (2.4% OF TOTAL INVESTMENTS)
7,000 Detroit, Michigan, Distributable State Aid General Obligation 11/20 at 100.00 AA- 7,022,400
Bonds, Limited Tax Series 2010, 5.250%, 11/01/35
Grand Rapids and Kent County Joint Building Authority,
Michigan, Limited Tax General Obligation Bonds, Devos Place
Project, Series 2001:
7,660 0.000%, 12/01/21 No Opt. Call AAA 4,809,331
7,955 0.000%, 12/01/22 No Opt. Call AAA 4,721,531
8,260 0.000%, 12/01/23 No Opt. Call AAA 4,641,377
8,575 0.000%, 12/01/24 No Opt. Call AAA 4,558,642
1,200 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BB+ 1,079,484
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
6,200 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 6,156,228
Bonds, Henry Ford Health System, Refunding Series 2009,
5.750%, 11/15/39
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,486,245
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 282,169
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
Nuveen Investments 37
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 3,270 Romulus Community Schools, Wayne County, Michigan, General 5/13 at 100.00 Aa2 $ 3,454,330
Obligation Bonds, Series 2003, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
51,960 Total Michigan 38,211,737
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.1% (1.4% OF TOTAL INVESTMENTS)
8,165 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A2 8,293,435
Inc., Series 2004, 4.950%, 7/01/22
Minneapolis-St. Paul Housing and Redevelopment Authority,
Minnesota, Revenue Bonds, HealthPartners Inc., Series 2003:
1,000 6.000%, 12/01/18 12/13 at 100.00 Baa1 1,036,720
1,050 5.875%, 12/01/29 12/13 at 100.00 Baa1 1,055,481
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,479,800
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%,
1/01/25 (Pre-refunded 1/01/11) - FGIC Insured
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 A (4) 3,099,750
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 (Pre-refunded 1/01/11) - FGIC Insured
275 Minnesota Housing Finance Agency, Rental Housing Bonds, Series 8/10 at 100.00 AA+ 276,158
1995D, 5.950%, 2/01/18 - NPFG Insured
260 Minnesota Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA+ 260,281
Series 1996G, 6.250%, 7/01/26 (Alternative Minimum Tax)
800 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 812,048
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 1,063,680
Series 2004A, 5.250%, 10/01/19
540 Southern Minnesota Municipal Power Agency, Power Supply System 7/10 at 100.00 Aaa 548,386
Revenue Bonds, Series 1992B, 5.750%, 1/01/11 (ETM)
1,620 St. Louis Park, Minnesota, Revenue Bonds, Park Nicollet Health 7/14 at 100.00 N/R (4) 1,869,205
Services, Series 2003B, 5.500%, 7/01/25 (Pre-refunded
7/01/14)
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 995,970
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
21,110 Total Minnesota 21,790,914
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4% (0.2% OF TOTAL INVESTMENTS)
3,675 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 3,772,645
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24 (UB)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.3% (1.5% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R 1,988,220
Bonds, Lutheran Senior Services - Heisinger Project, Series
2004, 5.250%, 2/01/24
200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 195,964
Facilities Revenue Bonds, Hannibal Regional Hospital, Series
2006, 5.000%, 3/01/22
2,885 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 2,879,230
Facilities Revenue Bonds, Freeman Health System, Series
2004, 5.500%, 2/15/24
9,000 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 A+ 9,626,310
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 A 853,125
1,525 5.000%, 6/01/35 6/15 at 100.00 A 1,402,405
1,000 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 1,023,270
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+ 1,224,540
Bonds, Lake Regional Health System, Series 2003, 5.125%,
2/15/18
1,080 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA- 1,104,397
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21
- AMBAC Insured
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
$ 170 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) $ 180,268
1,250 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 1,325,500
2,000 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 2,120,800
------------------------------------------------------------------------------------------------------------------------------------
23,090 Total Missouri 23,924,029
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,470 Municipal Energy Agency of Nebraska, Power Supply System 4/13 at 100.00 AAA 1,544,470
Revenue Bonds, Series 2003A, 5.250%, 4/01/23 - AGM Insured
5,000 Omaha Public Power District, Nebraska, Electric System Revenue 2/17 at 100.00 Aa1 5,135,050
Bonds, Series 2007A, 5.000%, 2/01/43
1,050 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AA+ 1,637,202
System Revenue Bonds, Nebraska City 2, Series 2006A, Trust
11673, 19.751%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
7,520 Total Nebraska 8,316,722
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.2% (3.3% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AA (4) 11,409,985
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12)
- NPFG Insured
10,000 Clark County, Nevada, Airport Revenue Bonds, Subordinte Lien 1/20 at 100.00 Aa3 10,623,900
Series 2010B, 5.750%, 7/01/42
Clark County, Nevada, General Obligation Bonds, Bond Bank
Refunding Series 2009:
3,520 5.000%, 6/01/27 6/19 at 100.00 Aaa 3,679,315
3,695 5.000%, 6/01/28 6/19 at 100.00 Aaa 3,842,578
3,880 5.000%, 6/01/29 6/19 at 100.00 Aaa 4,014,442
Clark County, Nevada, General Obligation Transportation Bonds,
Refunding Series 2010B:
4,915 5.000%, 7/01/25 1/20 at 100.00 Aaa 5,180,557
4,160 5.000%, 7/01/26 1/20 at 100.00 Aaa 4,357,933
5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AA- 5,949,958
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 Aa3 4,089,240
Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
1,000 Director of Nevada State Department of Business and Industry, 7/10 at 100.00 Caa2 321,190
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
51,375 Total Nevada 53,469,098
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.8% (3.1% OF TOTAL INVESTMENTS)
5,480 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aa2 5,817,513
Bonds, Series 2003, 5.125%, 12/15/20 - AGM Insured
135 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aa2 (4) 153,791
Bonds, Series 2003, 5.125%, 12/15/20 (Pre-refunded
12/15/13) - AGM 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- 1,417,989
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,057,800
520 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 518,534
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,675 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/10 at 100.00 A+ 3,675,919
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 -
AMBAC Insured (Alternative Minimum Tax)
17,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,681,380
System Bonds, Capital Appreciation Series 2010A, 0.000%,
12/15/33
3,425 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 3,849,940
System Bonds, Refunding Series 2006A, 5.250%, 12/15/20
3,400 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,860,734
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 A+ 4,301,480
5.000%, 1/01/19 - FGIC Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,196,170
5.000%, 1/01/24 - AGM Insured
5,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2009H, 1/19 at 100.00 A+ 5,166,650
5.000%, 1/01/36
Nuveen Investments 39
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 10,555 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB $ 8,857,439
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%,
6/01/29
2,870 Union County Utilities Authority, New Jersey, Solid Waste 6/10 at 100.00 Baa3 2,870,144
Facility Subordinate Lease Revenue Bonds, Ogden Martin
Systems of Union Inc., Series 1998A, 5.350%, 6/01/23 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
61,685 Total New Jersey 49,425,483
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.0% (4.5% OF TOTAL INVESTMENTS)
5,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 5,016,400
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/28 - FGIC Insured
1,500 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 1,617,240
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 1,280,925
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/30
5,025 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 4,677,119
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 A 3,061,872
Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
2,500 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 2,677,025
Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/22 (UB)
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Series 2003B:
6,875 5.000%, 8/01/23 (UB) 8/13 at 100.00 AAA 7,306,338
7,260 5.000%, 8/01/24 (UB) 8/13 at 100.00 AAA 7,716,218
35 New York City, New York, General Obligation Bonds, Fiscal No Opt. Call AA 35,082
Series 1996J, 5.500%, 2/15/26
2,150 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AA 2,252,233
Series 2005J, 5.000%, 3/01/25
5,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 5,257,600
Series 2005M, 5.000%, 4/01/24 (UB)
4,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 4,434,000
2004C-1, 5.250%, 8/15/20 (UB)
1,855 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AA+ 2,104,869
Revenue Bonds, Trust 2364, 16.925%, 11/15/44 - AMBAC
Insured (IF)
New York State Municipal Bond Bank Agency, Special School
Purpose Revenue Bonds, Series 2003C:
6,000 5.250%, 6/01/20 6/13 at 100.00 A+ 6,437,280
5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,440,017
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- 3,411,526
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,183,880
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call A 6,617,000
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 6.250%, 12/01/15 - NPFG Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
68,500 Total New York 71,526,624
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,775 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,811,884
Carolinas HealthCare System Revenue Bonds, Series 2008,
Trust 1149, 14.932%, 1/15/47 (IF)
1,995 Durham Urban Redevelopment Authority, North Carolina, 8/10 at 102.00 AAA 2,041,464
FHA-Insured Mortgage Loan Revenue Bonds, Durham Hosiery
Mill, Series 1987, 7.500%, 8/01/29 (Alternative Minimum Tax)
420 North Carolina Housing Finance Agency, Single Family Revenue 9/10 at 100.00 AA 420,500
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+ 1,343,850
2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,620,453
------------------------------------------------------------------------------------------------------------------------------------
7,885 Total North Carolina 8,238,151
------------------------------------------------------------------------------------------------------------------------------------
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.0% (0.0% OF TOTAL INVESTMENTS)
$ 325 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 $ 339,999
Program Bonds, Series 2000C, 6.150%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.6% (1.7% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
1,085 5.125%, 6/01/24 6/17 at 100.00 BBB 1,002,323
900 5.875%, 6/01/30 6/17 at 100.00 BBB 762,111
845 5.750%, 6/01/34 6/17 at 100.00 BBB 664,854
1,965 5.875%, 6/01/47 6/17 at 100.00 BBB 1,474,968
3,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 3,491,670
Obligation Bonds, Series 2004, 5.250%, 12/01/24
(Pre-refunded 12/01/14) - AGM Insured
Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth
Corporation, Series 2003C:
2,330 5.250%, 5/15/17 - NPFG Insured 5/13 at 100.00 AA 2,442,539
4,105 5.250%, 5/15/18 - NPFG Insured 5/13 at 100.00 AA 4,286,400
10,000 Greene County, Ohio, Hospital Facilities Revenue Bonds, 4/19 at 100.00 A 10,182,900
Kettering Health Nretwork Series 2009, 5.500%, 4/01/39
2,000 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 7/10 at 100.00 Aa2 2,000,480
Mortgage Revenue Bonds, Courtyards of Kettering, Series
1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
26,230 Total Ohio 26,308,245
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.3% (1.5% OF TOTAL INVESTMENTS)
750 Norman Regional Hospital Authority, Oklahoma, Hospital Revenue 9/16 at 100.00 BB+ 622,148
Bonds, Series 2005, 5.375%, 9/01/36
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
2,690 5.000%, 2/15/37 2/17 at 100.00 A 2,541,969
1,020 5.000%, 2/15/42 2/17 at 100.00 A 950,936
10,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 A 9,340,700
Revenue Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
5,000 Oklahoma State Student Loan Authority, Senior Lien Revenue 6/11 at 102.00 AAA 5,022,850
Bonds, Series 2001A-1, 5.625%, 6/01/31 (Alternative
Minimum Tax)
5,460 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 5,468,845
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
99 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 99,129
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.380% 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
25,019 Total Oklahoma 24,046,577
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.8% (0.5% OF TOTAL INVESTMENTS)
7,860 Multnomah County Hospital Facilities Authority, Oregon, 10/14 at 100.00 AA 8,631,931
Revenue Bonds, Sisters of Providence Health System, Series
2004, 5.500%, 10/01/21 (UB)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.4% (1.5% OF TOTAL INVESTMENTS)
3,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 3,580,605
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG Insured
1,500 Annville-Cleona School District, Lebanon County, Pennsylvania, 3/15 at 100.00 Aa3 1,633,380
General Obligation Bonds, Series 2005, 6.000%, 3/01/28 - AGM
Insured
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 430,675
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call A2 1,158,822
Local Government Revenue Bonds, Series 1997B, 5.700%,
7/01/27 - AMBAC Insured
5,850 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 5,581,719
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - AGM Insured
1,000 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 1,073,600
2005, 5.000%, 9/01/29
15,000 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/27 at 100.00 A2 10,081,350
Capital Appreciation Series 2009E, 0.000%, 12/01/38
Nuveen Investments 41
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 $ 1,102,721
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,450 Total Pennsylvania 24,642,872
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.9% (0.6% OF TOTAL INVESTMENTS)
8,750 Puerto Rico Sales Tax Financing Corporation, Sales Tax 8/29 at 100.00 A+ 5,210,013
Revenue Bonds, First Subordinate Series 2010A, 0.000%,
8/01/33
5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 4,368,150
Asset-Backed Refunding Bonds, Series 2002, 5.500%,
5/15/39
------------------------------------------------------------------------------------------------------------------------------------
13,750 Total Puerto Rico 9,578,163
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.7% (1.1% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed Bonds, Series 2002A:
7,700 6.000%, 6/01/23 6/12 at 100.00 BBB 7,777,462
6,160 6.125%, 6/01/32 6/12 at 100.00 BBB 5,974,892
4,300 6.250%, 6/01/42 6/12 at 100.00 BBB 4,127,656
------------------------------------------------------------------------------------------------------------------------------------
18,160 Total Rhode Island 17,880,010
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.9% (3.8% OF TOTAL INVESTMENTS)
9,000 Berkeley County School District, South Carolina, 12/13 at 100.00 A1 9,253,890
Installment Purchase Revenue Bonds, Securing Assets for
Education, Series 2003, 5.250%, 12/01/24
15,445 Greenville County School District, South Carolina, 12/12 at 101.00 AA (4) 17,533,318
Installment Purchase Revenue Bonds, Series 2002,
5.875%, 12/01/17 (Pre-refunded 12/01/12)
2,500 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AA- 2,535,450
Refunding Bonds, Series 2003A, 5.000%, 5/01/25 - AMBAC
Insured
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/10 at 100.00 A 7,207,536
Revenue Bonds, Series 1991, 4.000%, 1/01/23 - NPFG
Insured
1,250 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A3 (4) 1,392,050
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002A, 5.625%, 11/15/30
(Pre-refunded 11/15/12)
4,750 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 4,754,845
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002B, 5.625%, 11/15/30
South Carolina JOBS Economic Development Authority,
Hospital Refunding and Improvement Revenue Bonds,
Palmetto Health Alliance, Series 2003C:
1,335 6.875%, 8/01/27 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 1,565,795
165 6.875%, 8/01/27 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 194,218
4,450 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,149,585
550 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 638,759
8,100 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 Aa3 8,149,167
Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured
1,980 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 2,046,231
Carolina, Tobacco Settlement Asset-Backed Bonds, Series
2001B, 6.000%, 5/15/22 (Pre-refunded 5/15/12)
------------------------------------------------------------------------------------------------------------------------------------
57,125 Total South Carolina 60,420,844
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 3,067,136
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
530 Memphis-Shelby County Airport Authority, Tennessee, 9/10 at 101.00 A2 535,963
Airport Revenue Bonds, Series 1999D, 6.000%, 3/01/19 -
AMBAC Insured (Alternative Minimum Tax)
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner
Regional Health System Inc., Series 2007:
800 5.500%, 11/01/37 (7) 11/17 at 100.00 N/R 519,520
1,000 5.500%, 11/01/46 (7) 11/17 at 100.00 N/R 649,400
------------------------------------------------------------------------------------------------------------------------------------
5,530 Total Tennessee 4,772,019
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.4% (4.8% OF TOTAL INVESTMENTS)
5,810 Board of Regents, University of Texas System, Financing 2/17 at 100.00 AAA 5,741,616
System Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa3 $ 3,057,364
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
10,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 BBB- 10,104,100
Texas, Environmental Facilities Revenue Bonds, Dow
Chemical Company Project, Series 2002A-6, 6.250%,
5/15/33 (Mandatory put 5/15/17) (Alternative Minimum
Tax)
1,000 Bryan, Brazos County, Texas, Electric System Revenue 7/17 at 100.00 A+ 1,016,190
Bonds, Series 2009, 5.000%, 7/01/34
3,345 Fort Worth, Texas, Water and Sewerage Revenue Bonds, 2/12 at 100.00 Aa1 (4) 3,638,390
Series 2001, 5.625%, 2/15/19 (Pre-refunded 2/15/12)
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/10 at 100.00 BBB 4,719,050
Disposal Revenue Bonds, Valero Refining and Marketing
Company Project, Series 1997, 5.600%, 12/01/31
(Alternative Minimum Tax)
Harris County Health Facilities Development Corporation,
Texas, Hospital Revenue Bonds, Memorial Hermann
Healthcare System, Series 2004A:
1,000 5.000%, 12/01/20 12/14 at 100.00 A 1,011,380
1,000 5.000%, 12/01/21 12/14 at 100.00 A 1,008,100
2,500 5.125%, 12/01/22 12/14 at 100.00 A 2,525,800
2,925 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 A 2,749,939
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 - NPFG
Insured
4,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 4,288,440
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call A2 4,596,169
Bonds, Convention and Entertainment Project, Series
2001B, 0.000%, 9/01/25 - AMBAC Insured
725 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 AAA 758,133
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- 781,960
1,250 5.125%, 8/15/26 No Opt. Call BBB- 1,147,888
3,100 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 3,254,411
Refunding Bonds, Series 2008, 5.750%, 1/01/38
2,000 Pearland Independent School District, Brazoria County, 2/11 at 100.00 AAA 2,077,080
Texas, Unlimited Tax Schoolhouse Bonds, Series 2001A,
5.250%, 2/15/22 (Pre-refunded 2/15/11)
1,000 Sabine River Authority, Texas, Pollution Control Revenue 11/15 at 100.00 CCC 468,300
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 4,077,683
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26 (Pre-refunded 2/01/11)
7,100 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 7,148,209
Corporation, Texas, Revenue Bonds, Texas Health
Resources, Series 2007, 5.000%, 2/15/36 (UB)
3,755 Texas State, General Obligation Bonds, Series 2008, Trust 4/17 at 100.00 Aaa 5,073,643
3213, 13.470%, 4/01/33 (IF)
3,900 Texas, General Obligation Bonds, Veterans Housing 12/11 at 101.00 Aaa 3,944,538
Assistance Program Fund II, Series 2001C-1, 5.200%,
12/01/21 (Alternative Minimum Tax) (UB)
2,905 Weatherford Independent School District, Parker County, 2/11 at 44.73 AAA 1,256,151
Texas, Unlimited Tax School Building and Refunding
Bonds, Series 2001, 0.000%, 2/15/25
4,040 Weatherford Independent School District, Parker County, 2/11 at 44.73 AAA 1,799,982
Texas, Unlimited Tax School Building and Refunding
Bonds, Series 2001, 0.000%, 2/15/25 (Pre-refunded
2/15/11)
------------------------------------------------------------------------------------------------------------------------------------
87,050 Total Texas 76,244,516
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6% (0.4% OF TOTAL INVESTMENTS)
6,335 Riverton, Utah, Hospital Revenue Bonds, IHC Health 8/19 at 100.00 AA+ 6,466,768
Services, Inc., Series 2009, 5.000%, 8/15/41
65 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 101.00 AAA 66,866
Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax)
50 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 Aaa 50,075
Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,450 Total Utah 6,583,709
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 43
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.1% (0.1% OF TOTAL INVESTMENTS)
$ 900 Virgin Islands Public Finance Authority, Revenue Bonds, 1/15 at 100.00 Baa3 $ 821,638
Refinery Project Hovensa LLC, Series 2007, 4.700%,
7/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.3% (4.1% OF TOTAL INVESTMENTS)
15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AA 14,914,500
Consolidated System Revenue Bonds, Series 2002A,
5.450%, 7/01/37 - AMBAC Insured (Alternative Minimum
Tax)
6,000 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 6,552,960
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - NPFG Insured
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,576,350
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
(UB)
10,080 King County School District 401, Highline, Washington, 6/12 at 100.00 AA+ 11,063,606
General Obligation Bonds, Series 2002, 5.500%, 12/01/16
- FGIC Insured
2,500 King County, Washington, Sewer Revenue Bonds, Series 2009, 1/19 at 100.00 AA+ 2,674,875
5.250%, 1/01/42
6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 9/12 at 100.00 A1 7,311,578
5.250%, 9/01/22 - FGIC Insured
2,820 Skagit County Public Hospital District 1, Washington, 12/14 at 100.00 A1 3,016,610
General Obligation Bonds, Series 2004A, 5.375%,
12/01/19 - NPFG Insured
2,500 Snohomish County, Washington, Limited Tax General 12/11 at 100.00 AA 2,634,400
Obligation Bonds, Series 2001, 5.125%, 12/01/22 - NPFG
Insured
5,000 Washington Health Care Facilities Authority, Revenue 7/19 at 100.00 A 5,163,150
Bonds, Fred Hutchinson Cancer Research Center, Series
2009A, 6.000%, 1/01/33
1,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 826,060
Bonds, Northwest Hospital and Medical Center of
Seattle, Series 2007, 5.700%, 12/01/32
Washington State Tobacco Settlement Authority, Tobacco
Settlement Asset-Backed Revenue Bonds, Series 2002:
3,025 6.500%, 6/01/26 6/13 at 100.00 BBB 3,077,877
2,115 6.625%, 6/01/32 6/13 at 100.00 BBB 2,126,231
------------------------------------------------------------------------------------------------------------------------------------
62,005 Total Washington 64,938,197
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,049,300
Bonds, Appalachian Power Company, Series 2003L, 5.500%,
10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue 10/10 at 100.00 Baa3 994,140
Bonds, West Penn Power Company Pleasants Station
Project, Series 1999E, 5.500%, 4/01/29 - AMBAC Insured
(Alternative Minimum Tax)
2,355 West Virginia University, Unlimited Tax General Revenue 10/14 at 100.00 A+ 2,433,069
Bonds, Student Fees, Series 2004C, 5.000%, 10/01/24 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,355 Total West Virginia 8,476,509
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.0% (1.3% OF TOTAL INVESTMENTS)
5,170 Wisconsin Health and Educational Facilities Authority, 7/10 at 100.00 A3 5,169,690
Revenue Bonds, Aurora Health Care Inc., Series 1999A,
5.600%, 2/15/29
1,000 Wisconsin Health and Educational Facilities Authority, 4/20 at 100.00 A3 1,009,460
Revenue Bonds, Aurora Health Care, Inc., Series 2010A,
5.625%, 4/15/39
315 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 263,649
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,001,060
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/24
3,215 Wisconsin Health and Educational Facilities Authority, 8/10 at 100.00 A 3,217,861
Revenue Bonds, Marshfield Clinic, Series 1997, 5.625%,
2/15/17 - NPFG Insured
4,530 Wisconsin Health and Educational Facilities Authority, 8/16 at 100.00 BBB+ 4,135,754
Revenue Bonds, Wheaton Franciscan Healthcare System,
Series 2006, 5.250%, 8/15/34
5,300 Wisconsin State, General Obligation Bonds, Series 2006, 5/16 at 100.00 AA 5,560,707
4.750%, 5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
20,530 Total Wisconsin 20,358,181
------------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 2,750 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB+ $ 2,662,743
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,713,414 Total Investments (cost $1,547,990,283) - 155.4% 1,601,308,130
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.9)% (102,434,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 18,914,930
--------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value -
(47.3)% (6) (487,525,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 1,030,264,060
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(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 Fund's Adviser has concluded this issue is not likely to meet its
future interest payment obligations and has directed the Fund's custodian
to cease accruing additional income on the Fund's records.
(6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 30.4%.
(7) For fair value measurement disclosure purposes, investment categorized as
Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value
Measurements for more information.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 45
NPT | Nuveen Premium Income Municipal Fund 4, Inc.
| Portfolio of Investments
April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.3% (2.8% OF TOTAL INVESTMENTS)
$ 5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 5,280,913
Bonds, Series 2001, 5.750%, 12/01/16
11,895 Alabama Special Care Facilities Financing Authority, 7/10 at 100.00 Aaa 11,939,487
Birmingham, Hospital Revenue Bonds, Daughters of Charity
National Health System - Providence Hospital and St.
Vincent's Hospital, Series 1995, 5.000%, 11/01/25 (ETM)
5,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 5,066,650
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
(UB)
1,000 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa2 880,640
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A, 5.000%, 11/15/30
1,000 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 923,080
Control Revenue Bonds, International Paper Company, Series
2005A, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
24,045 Total Alabama 24,090,770
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,665 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 1,703,245
Bonds, Series 2005A, 5.000%, 12/01/30 - FGIC Insured (UB)
3,065 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 A+ (4) 3,501,150
Bonds, Series 2003E, 5.250%, 12/01/26 (Pre-refunded
12/01/13) - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
4,730 Total Alaska 5,204,395
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.5% (1.0% OF TOTAL INVESTMENTS)
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 A1 4,948,150
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/31 - NPFG Insured
3,000 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 2,675,280
Bonds, Citigroup Energy Inc Prepay Contract Obligations,
Series 2007, 5.000%, 12/01/37
1,000 Watson Road Community Facilities District, Arizona, Special 7/16 at 100.00 N/R 812,340
Assessment Revenue Bonds, Series 2005, 6.000%, 7/01/30
------------------------------------------------------------------------------------------------------------------------------------
9,000 Total Arizona 8,435,770
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
-- (5) Lonoke County Residential Housing Facilities Board, Arkansas, 10/10 at 100.00 Aa1 49
FNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%,
4/01/11
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 17.9% (11.7% OF TOTAL INVESTMENTS)
10,000 Anaheim Public Finance Authority, California, Public 9/17 at 100.00 A1 8,598,500
Improvement Project Lease Bonds, Series 2007A-1, 4.375%,
3/01/37 - FGIC Insured
17,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 16,525,359
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
5,000 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 4,799,800
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
2,900 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 2,673,191
Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,022,900
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
1,220 California State Public Works Board, Lease Revenue Bonds, 11/19 at 100.00 A2 1,310,805
Various Capital Projects, Series 2009I-1, 6.375%, 11/01/34
1,500 California State Public Works Board, Lease Revenue Bonds, 3/20 at 100.00 A2 1,542,990
Various Capital Projects, Series 2010A-1, 5.750%, 3/01/30
1,030 California Statewide Communities Development Authority, 10/19 at 100.00 BBB- 1,029,938
Revenue Bonds, American Baptist Homes of the West, Series
2010, 6.250%, 10/01/39
1,050 California Statewide Communities Development Authority, School 1/19 at 100.00 N/R 1,039,784
Facility Revenue Bonds, Aspire Public Schools, Series 2010,
6.000%, 7/01/40
1,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 840,150
Bonds, Daughters of Charity Health System, Series 2005A,
5.000%, 7/01/39
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,685 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 $ 1,764,330
Bonds, Sutter Health, Tender Option Bond Trust 3175,
13.554%, 11/15/48 (IF)
19,095 California, General Obligation Bonds, Series 2005, 5.000%, 6/15 at 100.00 A1 19,119,632
6/01/33 - CIFG Insured
4,780 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 4,500,274
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14 (ETM)
1,000 Glendale Redevelopment Agency, Central Glendale Redevelopment 12/16 at 100.00 A- 1,002,140
Project, California, Tax Allocation Bonds, Series 2010,
5.500%, 12/01/24
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 1,167,570
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
Golden State Tobacco Securitization Corporation, California,
Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 770,830
610 5.125%, 6/01/47 6/17 at 100.00 BBB 426,018
3,190 Hillsborough City School District, San Mateo County, No Opt. Call AAA 1,367,776
California, General Obligation Bonds, Series 2006B, 0.000%,
9/01/27
2,700 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 3,192,480
Citigroup Prepay Contracts, Series 2009C, 7.000%, 11/01/34
3,000 Palomar Pomerado Health Care District, California, 11/19 at 100.00 Baa2 3,165,420
Certificates of Participation, Series 2009, 6.625%, 11/01/29
11,310 San Francisco Bay Area Rapid Transit District, California, 7/16 at 100.00 AAA 10,545,218
Sales Tax Revenue Bonds, Refunding Series 2006A, 4.250%,
7/01/31 - AGM Insured (UB)
670 San Francisco Redevelopment Finance Authority, California, Tax 8/19 at 100.00 A- 721,530
Allocation Revenue Bonds, Mission Bay North Redevelopment
Project, Series 2009C, 6.500%, 8/01/39
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
4,430 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 800,280
31,300 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 4,829,590
4,000 San Luis Obispo County Financing Authority, California, 9/17 at 100.00 AA+ 4,155,440
Revenue Bonds, Nacimiento Water Project, Tender Option Bond
Trust 3030, 17.078%, 9/01/38 - NPFG Insured (IF)
1,945 South Gate Public Financing Authority, California, Water No Opt. Call A 2,048,202
Revenue Refunding Bonds, Series 1996A, 6.000%, 10/01/12 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
134,415 Total California 99,960,147
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.8% (2.5% OF TOTAL INVESTMENTS)
1,465 Colorado Health Facilities Authority, Colorado, Revenue Bonds, No Opt. Call N/R 1,492,278
American Baptist Homes Project, Series 2009A, 7.750%,
8/01/39
2,000 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA (4) 2,122,560
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
(Pre-refunded 9/01/11)
280 Colorado Housing Finance Authority, Single Family Program 10/10 at 105.00 Aa2 303,873
Senior Bonds, Series 1999C-3, 6.750%, 10/01/21
1,925 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 2,121,774
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum
Tax)
Denver Convention Center Hotel Authority, Colorado, Senior
Revenue Bonds, Convention Center Hotel, Series 2003A:
2,940 5.000%, 12/01/20 (Pre-refunded 12/01/13) - SYNCORA GTY 12/13 at 100.00 N/R (4) 3,296,269
Insured
10,000 5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY 12/13 at 100.00 N/R (4) 11,211,800
Insured
755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 873,588
Obligation Bonds, Series 2004, 5.000%, 12/15/22
(Pre-refunded 12/15/14) - AGM Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
19,365 Total Colorado 21,422,142
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Harbor Point Infrastructure Improvement District, Connecticut, 4/20 at 100.00 N/R 2,629,350
Special Obligation Revenue Bonds, Harbor Point Project,
Series 2010A, 7.875%, 4/01/39
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 47
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6% (1.1% OF TOTAL INVESTMENTS)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
$ 9,670 0.000%, 4/01/26 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 42.15 A (4) $ 4,052,697
15,235 0.000%, 4/01/30 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 32.93 A (4) 4,988,701
------------------------------------------------------------------------------------------------------------------------------------
24,905 Total District of Columbia 9,041,398
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.0% (4.5% OF TOTAL INVESTMENTS)
250 Brevard County Health Facilities Authority, Florida, Revenue 4/19 at 100.00 A- 276,328
Bonds, Health First Inc. Project, Series 2009B, 7.000%,
4/01/39
5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 Aa3 5,024,350
Participation, Series 2003, 5.000%, 7/01/28 - NPFG Insured
5,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 Aa3 5,180,250
Tampa International Airport, Series 2003A, 5.250%, 10/01/18
- NPFG Insured (Alternative Minimum Tax)
5,000 Martin County Industrial Development Authority, Florida, 6/10 at 100.00 BB+ 4,999,300
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 1,417,205
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.850%, 7/01/20 - AGM Insured (Alternative
Minimum Tax)
3,385 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 3,151,164
International Airport, Series 2005A, 5.000%, 10/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
5,455 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 5,360,192
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
11,000 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 N/R 10,999,560
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
1,470 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 1,087,991
Assessment Bonds, Series 2006, 5.400%, 5/01/37
1,765 Westchester Community Development District 1, Florida, Special 5/13 at 101.00 N/R 1,455,543
Assessment Bonds, Series 2003, 6.000%, 5/01/23
------------------------------------------------------------------------------------------------------------------------------------
39,705 Total Florida 38,951,883
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.4% (2.3% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Tax Allocation Bonds, Beltline Project Series 1/19 at 100.00 N/R 1,018,950
2008A. Remarketed, 7.500%, 1/01/31
4,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series No Opt. Call A1 4,803,128
1999A, 5.500%, 11/01/22 - FGIC Insured
1,500 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 1,566,150
2009B, 5.250%, 11/01/34 - AGM Insured
2,500 Gainesville and Hall County Hospital Authority, Georgia, 2/20 at 100.00 A- 2,432,450
Revenue Anticipation Certificates, Northeast Georgia Health
Services Inc., Series 2010A, 5.000%, 2/15/30
2,880 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call A+ 3,020,918
Bonds, Series 1992B, 8.250%, 1/01/11
5,450 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call A1 (4) 6,493,730
Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
17,730 Total Georgia 19,335,326
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.7% (0.5% OF TOTAL INVESTMENTS)
2,000 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aa1 2,247,040
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13
1,580 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aaa 1,782,524
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
3,580 Total Hawaii 4,029,564
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS)
985 Idaho Housing and Finance Association, Single Family Mortgage No Opt. Call Aa3 1,022,016
Revenue Bonds, Series 2009BI, 5.650%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.9% (10.3% OF TOTAL INVESTMENTS)
4,000 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call Aa2 4,421,200
Certificates, Series 1992A, 6.250%, 1/01/15 - NPFG Insured
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA $ 5,550,888
5.125%, 1/01/26 - AGM Insured (Alternative Minimum Tax)
415 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 416,191
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33
- FGIC Insured
Cook County School District 99, Cicero, Illinois, General
Obligation School Bonds, Series 1997:
1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call N/R 1,776,540
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call N/R 2,169,033
5,945 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 6,760,476
Mortgage Revenue Bonds, Greek American Nursing Home
Committee, Series 2000A, 7.600%, 4/20/40
2,515 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 N/R (4) 2,912,898
Memorial Hospital, Series 2004A, 5.250%, 8/15/34
(Pre-refunded 8/15/14)
500 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 566,520
Series 2009A, 7.750%, 8/15/34
1,665 Illinois Finance Authority, Revenue Bonds, Rush University 5/19 at 100.00 A- 1,800,281
Medical Center Obligated Group, Series 2009C, 6.625%,
11/01/39
5,565 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 BBB 5,055,079
Systems, Series 2007A, 5.500%, 8/01/37
Illinois Finance Authority, Revenue Bonds, Silver Cross
Hospital and Medical Centers, Series 2009:
2,000 6.875%, 8/15/38 8/19 at 100.00 BBB 2,128,880
2,000 7.000%, 8/15/44 8/19 at 100.00 BBB 2,134,180
500 Illinois Finance Authority, Revenue Bonds, Southern Illinois 3/20 at 100.00 AAA 514,675
Healthcare Enterprises, Inc., Series 2005 Remarketed,
5.250%, 3/01/30 - AGM Insured
3,000 Illinois Finance Authority, Revenue Refunding Bonds, 5/19 at 100.00 BBB+ 3,059,940
Resurrection Health Care Corporation, Series 2009, 6.125%,
5/15/25
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,005,680
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 Aaa 4,371,040
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, 1/13 at 100.00 Baa1 2,989,530
Elmhurst Memorial Healthcare, Series 2002, 5.500%, 1/01/22
3,930 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call Aa2 4,453,397
Lutheran General Health System, Series 1993C, 7.000%, 4/01/14
9,795 Lake, Cook, Kane and McHenry Counties Community Unit School No Opt. Call AAA 11,574,164
District 220, Barrington, Illinois, General Obligation
Bonds, Series 2002, 5.250%, 12/01/19 - AGM Insured (UB)
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
9,500 0.000%, 6/15/24 - NPFG Insured 6/22 at 101.00 AAA 7,634,105
4,540 5.000%, 12/15/28 - NPFG Insured 6/12 at 101.00 AAA 4,607,918
36,040 0.000%, 6/15/40 - NPFG Insured No Opt. Call AAA 6,090,039
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call Aa2 3,748,786
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
114,650 Total Illinois 88,741,440
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.7% (5.7% OF TOTAL INVESTMENTS)
Carmel Redevelopment Authority, Indiana, Lease Rent Revenue
Bonds, Series 2005:
1,950 0.000%, 2/01/24 No Opt. Call AA+ 1,018,212
2,705 0.000%, 2/01/25 No Opt. Call AA+ 1,330,671
3,000 Hospital Authority of Delaware County, Indiana, Hospital 8/16 at 100.00 Baa3 2,671,590
Revenue Bonds, Cardinal Health System, Series 2006, 5.250%,
8/01/36
3,965 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 A 4,028,519
University, Series 2001, 5.500%, 2/01/26 - NPFG Insured
1,050 Indiana Finance Authority, Educational Facilities Revenue 10/19 at 100.00 BBB- 1,100,789
Bonds, Drexel Foundation For Educational Excellence, Inc.,
Series 2009A, 7.000%, 10/01/39
1,500 Indiana Finance Authority, Hospital Refunding Revenue Bonds, 3/20 at 100.00 A- 1,441,230
Floyd Memorial Hospital and Health Services Project, Series
2010, 5.125%, 3/01/30
Nuveen Investments 49
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 A+ (4) $ 22,660,435
Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%,
2/15/30 (Pre-refunded 8/15/10) - NPFG Insured
2,650 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 3,007,724
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - AGM Insured
4,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 4,163,480
Bonds, Series 2003A, 5.000%, 6/01/23 - AGM Insured
6,000 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 6,707,700
Bonds, Series 2003A, 5.000%, 6/01/24 (Pre-refunded 6/01/13)
- AGM Insured
420 Marion County Convention and Recreational Facilities Authority, 7/10 at 100.00 A 420,134
Indiana, Excise Tax Lease Rental Revenue Bonds, Series
1997A, 5.000%, 6/01/27 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
49,240 Total Indiana 48,550,484
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.6% (0.4% OF TOTAL INVESTMENTS)
400 Iowa Finance Authority, Health Facilities Revenue Bonds, Iowa 8/19 at 100.00 Aa3 428,188
Health System, Series 2008A, 5.625%, 8/15/37 - AGC Insured
1,000 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ 829,850
Initiatives Project, Series 2006A, 5.000%, 7/01/20
2,000 Iowa Student Loan Liquidity Corporation, Student Loan Revenue 12/19 at 100.00 A1 2,047,780
Bonds, Refunding Series 2009-2, 5.500%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
3,400 Total Iowa 3,305,818
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.0% (1.3% OF TOTAL INVESTMENTS)
2,000 Olathe, Kansas, Health Facilities Revenue Bonds, Olathe Medical 9/10 at 100.00 A+ 2,003,340
Center, Series 2000A, 5.500%, 9/01/25 - AMBAC Insured
600 Overland Park Transportation Development District, Kansas, 4/20 at 100.00 BBB 603,996
Sales Tax Revenue Bonds, Oak Park Mall Project, Series 2010,
5.900%, 4/01/32 (WI/DD, Settling 5/13/10)
6,825 Sedgwick County Unified School District 259, Wichita, Kansas, 9/10 at 100.00 AA 6,851,140
General Obligation Bonds, Series 2000, 3.500%, 9/01/16
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and 6/14 at 100.00 A 1,780,100
Electric Company, Series 2004, 5.300%, 6/01/31 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
11,175 Total Kansas 11,238,576
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Kentucky Economic Development Finance Authority, Hospital 6/20 at 100.00 Baa2 1,021,180
Facilities Revenue Bonds, Owensboro Medical Health System,
Series 2010A, 6.000%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.2% (3.4% OF TOTAL INVESTMENTS)
165 DeSoto Parish, Louisiana, Environmental Improvement Revenue 11/14 at 100.00 BBB 164,210
Bonds, International Paper Company Project, Series 2004A,
5.000%, 11/01/18 (Alternative Minimum Tax)
1,000 Louisiana Local Government Environmental Facilities & Community 11/17 at 100.00 BB 1,031,940
Development Authority, Revenue Bonds, Westlake Chemical
Corporation Project, Series 2007, 6.750%, 11/01/32
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,876,543
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+ 5,149,588
Franciscan Missionaries of Our Lady Health System, Series
2005A, 5.250%, 8/15/32
3,800 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 Baa1 3,452,604
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline Tax Revenue Bonds, Series 2006A:
1,480 4.750%, 5/01/39 - AGM Insured (UB) 5/16 at 100.00 AAA 1,483,448
15,820 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 Aa1 15,585,706
170 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 Aa1 159,943
Residuals 660, 15.661%, 5/01/41 - FGIC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
29,335 Total Louisiana 28,903,982
------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 1,250 Maine Health and Higher Educational Facilities Authority 7/20 at 100.00 Aa3 $ 1,264,825
Revenue Bonds, Series 2010A, 5.000%, 7/01/40
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,815 Maryland Community Development Administration, Housing Revenue 7/10 at 100.00 Aa2 1,817,741
Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Housing Revenue 7/10 at 100.00 Aa2 2,902,697
Bonds, Series 1997A, 6.000%, 7/01/39 (Alternative Minimum
Tax)
50 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 51,314
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
2,210 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 2,101,843
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - NPFG Insured
2,315 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 2,320,649
Multifamily Housing Development Bonds, Series 2000B, 6.125%,
7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,290 Total Maryland 9,194,244
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.8% (1.2% OF TOTAL INVESTMENTS)
3,585 Massachusetts Development Finance Agency, Revenue Bonds, Curry 3/15 at 100.00 BBB 3,240,266
College, Series 2005A, 5.000%, 3/01/35 - ACA Insured
1,000 Massachusetts Development Finance Agency, Revenue Bonds, 10/12 at 102.00 N/R 809,750
Orchard Cove, Series 2007, 5.250%, 10/01/26
1,000 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BB- 659,570
Revenue Bonds, Milton Hospital Project, Series 2005D,
5.375%, 7/01/35
1,900 Massachusetts Health and Educational Facilities Authority, 7/19 at 100.00 BBB 1,938,475
Revenue Refunding Bonds, Suffolk University Issue, Series
2009A, 5.750%, 7/01/39
3,465 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 3,381,251
Bonds, Series 2007A, 4.500%, 8/01/46 - AGM Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
10,950 Total Massachusetts 10,029,312
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.3% (4.7% OF TOTAL INVESTMENTS)
625 Detroit, Michigan, Distributable State Aid General Obligation 11/20 at 100.00 AA- 624,206
Bonds, Limited Tax Series 2010, 5.000%, 11/01/30
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 A1 5,856,900
Bonds, Series 2005A, 5.000%, 7/01/35 - NPFG Insured
8,915 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/10 at 100.00 Aa3 8,914,376
Bonds, Series 1997A, 5.000%, 7/01/27 - NPFG Insured
5,400 Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second 7/16 at 100.00 A1 4,975,182
Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 Aa3 5,029,800
Facilities Program, Series 2003II, 5.000%, 10/15/29 - NPFG
Insured
10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/10 at 100.00 Ba3 8,990,835
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
3,210 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 3,187,337
Bonds, Henry Ford Health System, Refunding Series 2009,
5.750%, 11/15/39
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 1,153,350
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30
(Pre-refunded 5/15/15)
2,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,981,660
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
------------------------------------------------------------------------------------------------------------------------------------
42,650 Total Michigan 40,713,646
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,500 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,616,375
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%,
1/01/25 (Pre-refunded 1/01/11) - FGIC Insured
2,875 Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, 8/16 at 100.00 N/R 2,292,410
Regions Hospital Parking Ramp Project, Series 2007-1,
5.000%, 8/01/36
Nuveen Investments 51
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 2,315 Washington County Housing & Redevelopment Authority, Minnesota, 5/10 at 100.50 BB+ $ 2,145,449
Hospital Facility Revenue Bonds, Healtheast Project, Series
1998, 5.500%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
8,690 Total Minnesota 8,054,234
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,000 Mississippi Business Finance Corporation, Pollution Control 10/10 at 100.00 BBB 999,890
Revenue Refunding Bonds, System Energy Resources Inc.
Project, Series 1998, 5.875%, 4/01/22
2,975 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 3,054,046
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24 (UB)
5,180 Mississippi, General Obligation Refunding Bonds, Series 2002A, No Opt. Call AA 6,194,866
5.500%, 12/01/18
1,000 Warren County, Mississippi, Gulf Opportunity Zone Revenue 9/18 at 100.00 BBB 1,041,630
Bonds, International Paper Company Project, Series 2008A,
6.500%, 9/01/32
------------------------------------------------------------------------------------------------------------------------------------
10,155 Total Mississippi 11,290,432
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0% (0.7% OF TOTAL INVESTMENTS)
1,450 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 1,273,782
Missouri, Health Facilities Revenue Bonds, Southeast
Missouri Hospital Association, Series 2007, 5.000%, 6/01/36
1,000 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R 969,680
Bonds, Lutheran Senior Services - Heisinger Project, Series
2004, 5.500%, 2/01/35
1,000 Hanley Road Corridor Transportation Development District, 10/19 at 100.00 A- 1,027,970
Brentwood and Maplewood, Missouri, Transportation Sales
Revenue Bonds, Refunding Series 2009A, 5.875%, 10/01/36
2,450 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 2,507,012
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
------------------------------------------------------------------------------------------------------------------------------------
5,900 Total Missouri 5,778,444
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.3% (2.2% OF TOTAL INVESTMENTS)
4,500 Clark County School District, Nevada, General Obligation School No Opt. Call Aa1 4,525,110
Improvement Bonds, Series 1991A, 7.000%, 6/01/10 - NPFG
Insured
4,000 Clark County, Nevada, Airport Revenue Bonds, Subordinte Lien 1/20 at 100.00 Aa3 4,249,560
Series 2010B, 5.750%, 7/01/42
7,000 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AA- 7,187,180
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 Caa2 706,118
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 0.000%, 1/01/25 - AMBAC Insured
1,700 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 1,948,948
Bonds, Series 2009A, 8.000%, 6/15/30
------------------------------------------------------------------------------------------------------------------------------------
22,625 Total Nevada 18,616,916
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.3% (2.8% OF TOTAL INVESTMENTS)
500 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 432,675
Development Revenue Bonds, The Evergreens Project, Series
2007, 5.625%, 1/01/38
1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 1,124,211
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30 (Pre-refunded 7/01/10)
880 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A+ 1,042,457
6.500%, 1/01/16 - NPFG Insured New Jersey Turnpike
Authority, Revenue Bonds, Series 1991C:
300 6.500%, 1/01/16 - NPFG Insured (ETM) No Opt. Call A+ (4) 370,467
2,345 6.500%, 1/01/16 - NPFG Insured (ETM) No Opt. Call A+ (4) 2,716,073
10,055 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 10,777,452
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
3,995 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 4,672,432
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
(Pre-refunded 6/01/13)
3,750 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 2,689,313
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%,
6/01/34
------------------------------------------------------------------------------------------------------------------------------------
22,925 Total New Jersey 23,825,080
------------------------------------------------------------------------------------------------------------------------------------
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.1% (2.7% OF TOTAL INVESTMENTS)
$ 855 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R $ 734,702
Brighter Choice Charter Schools, Series 2007A, 5.000%,
4/01/32
Brooklyn Areba Local Development Corporation, New York, Payment
in Lieu of Taxes Revenue Bonds, Barclays Center Project, Series
2009:
1,945 6.000%, 7/15/30 1/20 at 100.00 BBB- 2,003,934
3,065 6.250%, 7/15/40 No Opt. Call BBB- 3,156,797
4,070 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,788,234
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 A 3,061,872
Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
1,000 Metropolitan Transportation Authority, New York, Dedicated Tax 11/19 at 100.00 AA 1,050,300
Fund Bonds, Series 2009B, 5.000%, 11/15/34
2,500 New York State Tobacco Settlement Financing Corporation, 6/12 at 100.00 AA- 2,667,675
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/18
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call A 6,617,000
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 6.250%, 12/01/15 - NPFG Insured (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
22,985 Total New York 23,080,514
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.9% (1.9% OF TOTAL INVESTMENTS)
750 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 764,063
Health Care System Revenue Bonds, Carolinas Health Care,
Series 2007A, 5.000%, 1/15/31
2,445 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 2,628,571
of Participation, Correctional Facilities, Series 2004A,
5.000%, 2/01/21
2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call A 2,068,300
Revenue Bonds, Series 1992, 6.000%, 1/01/11 - NPFG Insured
10,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 A 10,859,500
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
15,195 Total North Carolina 16,320,434
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.0% (2.0% OF TOTAL INVESTMENTS)
5,425 Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco 6/17 at 100.00 BBB 5,011,615
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2, 5.125%, 6/01/24
8,065 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 7/10 at 101.00 AAA 8,074,436
5.000%, 1/01/31 - AGM Insured
3,000 Franklin County, Ohio, Development Revenue Bonds, American 10/10 at 100.00 A+ 3,036,630
Chemical Society, Series 1999, 5.800%, 10/01/14
800 Ohio Air Quality Development Authority, Ohio, Revenue Bonds, No Opt. Call BBB- 850,752
Ohio Valley Electric Corporation Project, Series 2009E,
5.625%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
17,290 Total Ohio 16,973,433
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.1% (0.7% OF TOTAL INVESTMENTS)
170 Oklahoma Housing Finance Agency, Single Family Mortgage Revenue 9/10 at 101.00 Aaa 171,901
Bonds, Homeownership Loan Program, Series 2000C-2, 6.200%,
9/01/28 (Alternative Minimum Tax)
5,615 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 5,624,097
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
88 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 88,115
Revenue Bonds, Saint Francis Health System, Series 2006,
Trust 3500, 8.380% 12/15/36 (IF)
------------------------------------------------------------------------------------------------------------------------------------
5,873 Total Oklahoma 5,884,113
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.8% (1.8% OF TOTAL INVESTMENTS)
1,000 Allegheny Country Industrial Development Authority, Allegheny No Opt. Call BB 1,065,650
County, Pennsylvania, Environmental Improvement Revenue
Bonds, United States Steel Corporation Project, Refunding
Series 2009, 6.750%, 11/01/24
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 430,675
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
Nuveen Investments 53
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,000 Cumberland County Municipal Authority Revenue Bonds, 1/19 at 100.00 N/R $ 1,008,250
Pennsylvania, Diakon Lutheran Social Ministries Project,
Series 2009, 6.125%, 1/01/29
1,000 Pennsylvania Economic Development Financing Authority, Health No Opt. Call A3 1,085,420
System Revenue Bonds, Albert Einstein Healthcare, Series
2009A, 6.250%, 10/15/23
5,410 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/17 at 100.00 AA+ 6,643,101
Revenue Bonds, Tender Option Bond Trust 3212, 13.751%,
10/01/38 (IF)
5,490 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 5,238,228
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - AGM Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
14,400 Total Pennsylvania 15,471,324
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.5% (1.6% OF TOTAL INVESTMENTS)
12,390 Puerto Rico, General Obligation and Public Improvement No Opt. Call A 13,810,760
Refunding Bonds, Series 1997, 6.500%, 7/01/13 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.4% (2.2% OF TOTAL INVESTMENTS)
20,000 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 19,198,399
Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.8% (2.5% OF TOTAL INVESTMENTS)
4,120 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 A 4,284,553
FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%,
2/15/23 - NPFG Insured
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Bonds, Series 1991:
5,000 6.250%, 1/01/21 - FGIC Insured No Opt. Call A 5,916,400
5,750 4.000%, 1/01/23 - NPFG Insured 7/10 at 100.00 A 5,453,070
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call A 5,532,785
Revenue Refunding Bonds, Series 1998A, 5.500%, 1/01/13 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
19,955 Total South Carolina 21,186,808
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- 1,784,178
Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%,
11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,075 Knox County Health, Educational and Housing Facilities Board, 1/17 at 30.07 A- 798,450
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2006, 0.000%, 1/01/41
2,000 Sullivan County Health Educational and Housing Facilities 3/13 at 100.00 N/R 1,854,900
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Refunding Series 200A, 5.486%, 9/01/32
680 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 625,478
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
860 5.500%, 11/01/37 (7) 11/17 at 100.00 N/R 558,484
1,000 5.500%, 11/01/46 (7) 11/17 at 100.00 N/R 649,400
------------------------------------------------------------------------------------------------------------------------------------
9,615 Total Tennessee 4,486,712
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 19.8% (12.9% OF TOTAL INVESTMENTS)
3,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 2,096,640
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
5,440 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 AAA 5,375,971
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
2,250 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/14 at 100.00 AAA 2,198,700
Bonds, Series 2004B, 5.000%, 11/01/27 - AGM Insured
(Alternative Minimum Tax)
8,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 8,262,160
Refunding and Improvement Bonds, Series 2001A, 5.875%,
11/01/19 - FGIC Insured (Alternative Minimum Tax)
6,000 Garland Housing Finance Corporation, Texas, Multifamily Housing 12/11 at 101.00 N/R 6,001,260
Revenue Bonds, Legacy Pointe Apartments, Series 2000,
7.500%, 6/01/40 (Alternative Minimum Tax)
7,000 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AA 7,090,370
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - NPFG Insured
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 28,305 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call A2 $ 9,608,132
Convention and Entertainment Project, Series 2001B, 0.000%,
9/01/28 - AMBAC Insured
7,500 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 9,330,225
Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - AGM
Insured (ETM)
33,505 Leander Independent School District, Williamson and Travis 8/14 at 25.08 AAA 6,776,721
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/39
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds,
Series 2001:
730 5.500%, 2/15/21 2/11 at 100.00 AAA 755,893
760 5.500%, 2/15/23 2/11 at 100.00 AAA 784,267
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds,
Series 2001:
1,570 5.500%, 2/15/21 (Pre-refunded 2/15/11) 2/11 at 100.00 Aaa 1,634,370
1,640 5.500%, 2/15/23 (Pre-refunded 2/15/11) 2/11 at 100.00 Aaa 1,707,240
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 3,153,623
2,300 5.125%, 2/15/31 8/11 at 100.00 Aaa 2,331,441
700 Mt. Pleasant Independent School District, Titus County, Texas, 8/11 at 100.00 Aaa 741,727
General Obligation Refunding Bonds, Series 2001, 5.125%,
2/15/31 (Pre-refunded 8/15/11)
1,100 North Texas Thruway Authority, First Tier System Revenue 1/18 at 100.00 AAA 1,183,842
Refunding Bonds, Series 2008A, 5.750%, 1/01/40 - AGC Insured
2,500 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 2,624,525
Refunding Bonds, Series 2008, 5.750%, 1/01/38
1,100 North Texas Tollway Authority, System Revenue Bonds, First Tier 1/19 at 100.00 A2 1,218,525
Series 2009A, 6.250%, 1/01/39
2,000 Port of Bay City Authority of Matagorda County, Texas, Revenue 5/10 at 100.00 B+ 1,951,520
Bonds (Hoechst Celanese Corporation Project) Series 1996,
6.500%, 5/01/26 (Alternative Minimum Tax)
6,000 Raven Hills Higher Education Corporation, Texas, Student 8/12 at 100.00 N/R (4) 6,507,660
Housing Revenue Bonds, Angelo State University - Texan Hall
LLC, Series 2002A, 5.000%, 8/01/25 (Pre-refunded 8/01/12) -
NPFG Insured
3,410 Retama Development Corporation, Texas, Special Facilities 12/12 at 100.00 AAA 4,041,668
Revenue Bonds, Retama Park Racetrack, Series 1993, 8.750%,
12/15/18 (Pre-refunded 12/15/12)
1,800 Sam Rayburn Municipal Power Agency, Texas, Power Supply System 10/12 at 100.00 BBB 1,842,264
Revenue Refunding Bonds, Series 2002A, 5.750%, 10/01/21 -
RAAI Insured
5,200 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 5,235,308
Corporation, Texas, Revenue Bonds, Texas Health Resources,
Series 2007, 5.000%, 2/15/36 (UB)
370 Tarrant County Cultural & Educational Facilities Finance 2/17 at 100.00 AA- 376,790
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 12.134%, 2/15/36 (IF)
1,505 Texas Municipal Gas Acquisition and Supply Corporation I, Gas No Opt. Call A 1,634,912
Supply Revenue Bonds, Senior Lien Series 2008D, 6.250%,
12/15/26
1,620 Texas Private Activity Bond Surface Transporation Corporation, 12/19 at 100.00 Baa2 1,699,639
Senior Lien Revenue Bonds, NTE Mobility Partners LLC North
Tarrant Express Managed Lanes Project, Series 2009, 6.875%,
12/31/39
1,000 Texas Public Finance Authority, Charter School Finance 8/17 at 100.00 BBB 847,550
Corporation Revenue Bonds, Idea Public School Project,
Series 2007A, 5.000%, 8/15/37 - ACA Insured
3,395 Texas State, General Obligation Bonds, Series 2008, Trust 3213, 4/17 at 100.00 Aaa 4,587,222
13.470%, 4/01/33 (IF)
8,500 Travis County Health Facilities Development Corporation, Texas, 7/10 at 100.00 Aaa 8,860,145
Hospital Revenue Bonds, Daughters of Charity National Health
System, Series 1993B, 6.000%, 11/15/22 (ETM)
375 Travis County Health Facilities Development Corporation, Texas, No Opt. Call N/R 378,885
Revenue Bonds, Westminster Manor, Series 2010, 7.000%,
11/01/30
------------------------------------------------------------------------------------------------------------------------------------
151,600 Total Texas 110,839,195
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 55
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments April 30, 2010 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding 6/10 at 100.00 N/R $ 4,599,891
Bonds, South Davis Community Hospital Project, Series 1998,
5.750%, 12/15/18
4,840 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, 7/10 at 100.00 Aa3 (4) 5,144,146
Series 1996A, 6.150%, 7/01/14 (ETM)
430 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 433,784
Series 2000G, 5.875%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 2001C:
965 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 987,147
415 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aaa 417,457
------------------------------------------------------------------------------------------------------------------------------------
11,495 Total Utah 11,582,425
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.5% (0.3% OF TOTAL INVESTMENTS)
250 Virgin Islands Public Finance Authority, Matching Fund Loan 10/19 at 100.00 Baa3 260,760
Notes Revenue Bonds, Subordinate Lien Series 2009A, 6.000%,
10/01/39
2,480 Virgin Islands Public Finance Authority, Matching Fund Revenue 10/19 at 100.00 BBB 2,703,101
Loan Note - Diageo Project, Series 2009A, 6.750%, 10/01/37
------------------------------------------------------------------------------------------------------------------------------------
2,730 Total Virgin Islands 2,963,861
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.5% (1.0% OF TOTAL INVESTMENTS)
8,190 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 Aa3 8,247,084
Series 2002, 5.000%, 1/15/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.0% (2.6% OF TOTAL INVESTMENTS)
220 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 Aa3 (4) 252,718
Bonds, Wanapum Hydroelectric Development, Series 2005A,
5.000%, 1/01/34 (Pre-refunded 1/01/15) - FGIC Insured
5,780 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 AA- 5,866,064
Bonds, Wanapum Hydroelectric Development, Series 2005A,
5.000%, 1/01/34 - FGIC Insured
1,500 Snohomish County School District 6, Mukilteo, Washington, No Opt. Call Aa2 1,666,110
Unlimited Tax General Obligation and Refunding Bonds, Series
1993, 5.700%, 12/01/12 - FGIC Insured
4,155 Tacoma, Washington, Electric System Revenue Refunding Bonds, 1/11 at 101.00 AAA 4,347,626
Series 2001A, 5.750%, 1/01/20 (Pre-refunded 1/01/11) - AGM
Insured
2,000 Washington Health Care Facilities Authority, Revenue Bonds, 7/19 at 100.00 A 2,065,260
Fred Hutchinson Cancer Research Center, Series 2009A,
6.000%, 1/01/33
2,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 1,652,120
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
1,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 N/R 921,040
Bonds, Harrison Memorial Hospital, Series 1998, 5.000%,
8/15/28 - AMBAC Insured
1,460 Washington State Healthcare Facilities Authority, Revenue 8/17 at 100.00 BBB 1,443,998
Bonds, Virginia Mason Medical Center, Series 2007B, 5.750%,
8/15/37 - ACA Insured
4,005 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 4,075,007
Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%,
6/01/26
------------------------------------------------------------------------------------------------------------------------------------
22,120 Total Washington 22,289,943
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,950 West Virginia Hospital Finance Authority, Hospital Revenue 9/19 at 100.00 A2 2,001,831
Bonds, Charleston Area Medical Center, Series 2009A, 5.625%,
9/01/32
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.6% (1.7% OF TOTAL INVESTMENTS)
815 Monroe Redevelopment Authority, Wisconsin, Development Revenue 2/19 at 100.00 A3 827,486
Bonds, The Monroe Clinic, Inc., Series 2009, 5.875%, 2/15/39
500 Wisconsin Health and Educational Facilities Authority, Revenue 7/10 at 100.00 A+ 500,280
Bonds, Medical College of Wisconsin Inc., Series 1996,
5.500%, 12/01/26 - NPFG Insured
7,150 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 101.00 A+ 6,915,194
Bonds, Ministry Healthcare Inc., Series 2002A, 5.250%,
2/15/32 - NPFG Insured
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 BBB+ 912,970
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 5,000 Wisconsin State, General Obligation Bonds, Series 2006A, 4.750%, 5/16 at 100.00 AA $ 5,245,950
5/01/25 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
14,465 Total Wisconsin 14,401,880
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,720 Sweetwater County, Wyoming, Pollution Control Revenue Refunding 8/19 at 100.00 A2 1,825,162
Bonds, Idaho Power Company Project, Series 2006, 5.250%,
7/15/26
------------------------------------------------------------------------------------------------------------------------------------
$ 977,918 Total Investments (cost $836,697,140) - 153.2% 856,999,479
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.7)% (59,703,000)
--------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred Shares, at Liquidation Value - (262,200,000)
(46.9)% (6)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.4% 24,479,568
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 559,576,047
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(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) Principal Amount (000) rounds to less than $1,000.
(6) Variable Rate Demand Preferred Shares, at Liquidation Value as a
percentage of Total Investments is 30.6%.
(7) For fair value measurement disclosure purposes, investment categorized as
Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value
Measurements for more information.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1- Inverse
Floating Rate Securities for more information.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 57
| Statement of
| Assets & Liabilities
April 30, 2010 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,381,915,748, $1,547,990,283 and
$836,697,140, respectively) $ 1,398,419,597 $ 1,601,308,130 $ 856,999,479
Cash 5,158,792 682,900 7,326,320
Receivables:
Interest 21,943,190 22,947,439 14,075,223
Investments sold 2,720,000 1,490,077 6,814,509
Deferred offering costs -- -- 1,913,275
Other assets 349,019 401,522 88,391
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,428,590,598 1,626,830,068 887,217,197
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 124,294,000 102,434,000 59,703,000
Payables:
Investments purchased -- -- 2,024,868
Auction Rate Preferred share dividends 16,338 21,089 21,049
Common share dividends 3,983,965 4,659,814 2,734,874
Offering costs -- -- 366,306
Variable Rate Demand Preferred shares, at liquidation value -- -- 262,200,000
Accrued expenses:
Management fees 700,360 786,432 435,663
Other 623,616 1,139,673 155,390
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 129,618,279 109,041,008 327,641,150
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 400,650,000 487,525,000 --
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 898,322,319 $ 1,030,264,060 $ 559,576,047
====================================================================================================================================
Common shares outstanding 63,785,430 70,692,851 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.08 $ 14.57 $ 12.94
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 706,929 $ 432,367
Paid-in surplus 904,479,011 999,220,227 588,756,749
Undistributed (Over-distribution of) net investment income 14,631,100 11,934,032 9,004,516
Accumulated net realized gain (loss) (37,929,495) (34,914,975) (58,919,924)
Net unrealized appreciation (depreciation) 16,503,849 53,317,847 20,302,339
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 898,322,319 $ 1,030,264,060 $ 559,576,047
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Auction Rate Preferred 1,000,000 1,000,000 1,000,000
Variable Rate Demand Preferred -- -- Unlimited
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
58 Nuveen Investments
| Statement of
| Operations
Six Months Ended April 30, 2010 (Unaudited)
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 37,313,609 $ 41,599,759 $ 23,274,630
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,226,439 4,745,779 2,632,022
Auction fees 298,018 362,639 203,607
Dividend disbursing agent fees 29,753 54,560 52,214
Shareholders' servicing agent fees and expenses 56,340 30,563 27,352
Interest expense and amortization of offering costs 379,906 335,296 288,231
Liquidity fees -- -- 409,922
Custodian's fees and expenses 109,304 131,727 69,364
Directors' fees and expenses 20,810 23,403 13,115
Professional fees 57,144 59,729 40,476
Shareholders' reports - printing and mailing expenses 116,170 88,013 89,658
Stock exchange listing fees 10,747 9,540 7,285
Investor relations expense 52,924 56,153 33,782
Other expenses 38,828 38,338 30,265
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 5,396,383 5,935,740 3,897,293
Custodian fee credit (4,069) (2,011) (5,536)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 5,392,314 5,933,729 3,891,757
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 31,921,295 35,666,030 19,382,873
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (807,775) (224,956) 297,264
Change in net unrealized appreciation (depreciation) of investments 19,988,607 24,866,334 14,026,621
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 19,180,832 24,641,378 14,323,885
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income (757,048) (919,248) (432,217)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions to
Auction Rate Preferred shareholders (757,048) (919,248) (432,217)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares from
operations $ 50,345,079 $ 59,388,160 $ 33,274,541
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 59
| 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
4/30/10 10/31/09 4/30/10 10/31/09 4/30/10 10/31/09
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 31,921,295 $ 63,405,736 $ 35,666,030 $ 42,387,921 $ 19,382,873 $ 39,500,335
Net realized gain
(loss) from:
Investments (807,775) 698,560 (224,956) (624,684) 297,264 (164,101)
Forward swaps -- (12,560,000) -- -- -- --
Change in net
unrealized appreciation
(depreciation) of:
Investments 19,988,607 116,676,462 24,866,334 89,299,077 14,026,621 79,097,537
Forward swaps -- 3,082,340 -- -- -- --
Distributions to
Auction Rate
Preferred Shareholders:
From net investment income (757,048) (3,246,414) (919,248) (2,280,590) (432,217) (2,265,160)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from operations 50,345,079 168,056,684 59,388,160 128,781,724 33,274,541 116,168,611
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (27,363,951) (49,497,495) (30,901,626) (31,697,528) (17,510,867) (30,222,465)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions
to Common shareholders (27,363,951) (49,497,495) (30,901,626) (31,697,528) (17,510,867) (30,222,465)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Issued in the
Reorganization(1) -- -- -- 428,707,039 -- --
Repurchased and retired -- -- (1,587,979) (28,350) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from capital share
transactions -- -- (1,587,979) 428,678,689 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares 22,981,128 118,559,189 26,898,555 525,762,885 15,763,674 85,946,146
Net assets applicable
to Common
shares at the beginning
of period 875,341,191 756,782,002 1,003,365,505 477,602,620 543,812,373 457,866,227
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common
shares at the end
of period $ 898,322,319 $ 875,341,191 $ 1,030,264,060 $ 1,003,365,505 $ 559,576,047 $ 543,812,373
====================================================================================================================================
Undistributed
(Over-distribution of)
net investment
income at the end
of period $ 14,631,100 $ 10,830,804 $ 11,934,032 $ 8,088,876 $ 9,004,516 $ 7,564,727
====================================================================================================================================
(1) Common shares issued in the Reorganization of Nuveen Florida Investment
Quality Municipal Fund (NQF) and Nuveen Florida Quality Income Municipal
Fund (NUF).
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
60 Nuveen Investments
| Statement of
| Cash Flows
Six Months Ended April 30, 2010 (Unuaudited)
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS $ 50,345,079 $ 59,388,160 $ 33,274,541
Adjustments to reconcile the net increase (decrease) in
net assets applicable to Common shares from operations to net cash
provided by (used in)
operating activities:
Purchases of investments (24,277,403) (108,335,497) (58,641,090)
Proceeds from sales and maturities of investments 20,594,088 66,324,457 58,264,187
Proceeds from (Purchases of) short-term investments, net -- 29,035,000 --
Amortization (Accretion) of premiums and discounts, net (1,624,045) (2,164,823) (1,128,607)
(Increase) Decrease in receivable for interest (76,569) (1,272,952) (190,866)
(Increase) Decrease in receivable for investments sold 81,204 33,587,256 4,241,324
(Increase) Decrease in other assets (70,413) (71,658) 129,397
Increase (Decrease) in payable for investments purchased -- (37,099,053) (2,123,210)
Increase (Decrease) in payable for Auction Rate Preferred
share dividends (2,817) (3,269) 8,160
Increase (Decrease) in accrued management fees (32,187) (42,304) (12,458)
Increase (Decrease) in accrued other liabilities 58,976 (251,170) (92,941)
Net realized (gain) loss from investments 807,775 224,956 (297,264)
Change in net unrealized (appreciation) depreciation of
investments (19,988,607) (24,866,334) (14,026,621)
Net realized (gain) loss from paydowns -- -- 42
Taxes paid on undistributed capital gains (4,245) (4,336) (636)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 25,810,836 14,448,433 19,403,958
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions paid to Common shareholders (27,186,708) (33,065,902) (17,379,243)
Cost of Common shares repurchased and retired -- (1,587,979) --
(Increase) Decrease in deferred offering costs -- -- (1,913,275)
Increase (Decrease) in payable for offering costs -- -- 366,306
Increase (Decrease) in Variable Rate Demand Preferred shares, at liquidation
value -- -- 262,200,000
Increase (Decrease) in Auction Rate Preferred shares, at liquidation value -- -- (259,050,000)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (27,186,708) (34,653,881) (15,776,212)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (1,375,872) (20,205,448) 3,627,746
Cash at the beginning of period 6,534,664 20,888,348 3,698,574
------------------------------------------------------------------------------------------------------------------------------------
Cash at the End of Period $ 5,158,792 $ 682,900 $ 7,326,320
====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Cash paid for interest (excluding amortization of offering costs, where
applicable) $ 379,906 $ 335,296 $ 280,506
====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 61
| Notes to
| Financial Statements(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds covered in this report and their corresponding Common share New York
Stock Exchange ("NYSE") symbols are Nuveen Premium Income Municipal Fund, Inc.
(NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen Premium
Income Municipal Fund 4, Inc. (NPT) (collectively, the "Funds"). The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end,
management investment companies.
During the fiscal year ended October 31, 2009, Nuveen Florida Investment Quality
Municipal Fund (NQF) and Nuveen Florida Quality Income Municipal Fund (NUF) were
reorganized into Premium Income 2 (NPM) (collectively, the "Reorganizations").
Each of these Funds called a special meeting of shareholders, originally
scheduled in each case for May 15, 2009, to vote on the Reorganizations. Those
meetings were subsequently adjourned to and reconvened in June and July, at
which time, shareholders of each of Florida Investment Quality (NQF), Florida
Quality Income (NUF) and Premium Income 2 (NPM) approved its respective
Reorganization, with more than 80% of participating shares of each fund voting
in favor of the Reorganization.
After the close of business on October 16, 2009, Premium Income 2 (NPM) acquired
all the net assets of Florida Investment Quality (NQF) and Florida Quality
Income (NUF) pursuant to the plan of Reorganizations described above. The
acquisition was accomplished by a tax-free exchange of Florida Investment
Quality (NQF) and Florida Quality Income (NUF) Common shares for Premium Income
2 (NPM) Common shares. On October 16, 2009, the net assets of Florida Investment
Quality (NQF) and Florida Quality Income (NUF) were $227,077,390 and
$201,629,650, respectively. Florida Investment Quality's (NQF) and Florida
Quality Income's (NUF) net assets applicable to Common shares at that date
included $10,786,142 and $8,057,306 of net unrealized appreciation,
respectively. Each Fund's net unrealized appreciation was combined with that of
Premium Income 2 (NPM). The combined net assets applicable to Common shares of
Premium Income 2 (NPM) immediately after the acquisition were $1,011,235,268.
For accounting and performance reporting purposes, Premium Income 2 (NPM) is the
survivor. Prior to the Reorganizations, each of Florida Investment Quality (NQF)
and Florida Quality Income (NUF) established a reserve for certain costs and
expenses associated with the Reorganizations, including amounts estimated for
the advancement of legal costs in connection with legal proceedings brought by a
shareholder of the funds challenging the Reorganizations. The amount of such
reserve is recognized as a component of "Accrued other expenses" on the
Statement of Assets and Liabilities for Premium Income 2 (NPM).
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a portfolio of municipal obligations issued by state
and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles ("U.S. GAAP").
INVESTMENT VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors of the Fund, or its
designee, may establish fair value using a wide variety of market data including
yields or prices of investments of comparable quality, type of issue, coupon,
maturity and rating, market quotes or indications of value from security
dealers, evaluations of anticipated cash flows or collateral, general market
conditions and other information and analysis, including the obligor's credit
characteristics considered relevant. Temporary investments in securities that
have variable rate and demand features qualifying them as short-term investments
are valued at amortized cost, which approximates value.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At April 30, 2010, Premium
Income 4 (NPT) had outstanding when-issued/delayed delivery purchase commitments
of $600,000. There were no such outstanding purchase commitments in Premium
Income (NPI) or Premium Income 2 (NPM).
62 Nuveen Investments
INVESTMENT INCOME
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions that will enable interest from municipal
securities, which is exempt from regular federal income tax, to retain such
tax-exempt status when distributed to shareholders of the Funds. Net realized
capital gains and ordinary income distributions paid by the Funds are subject to
federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S. GAAP.
AUCTION RATE PREFERRED SHARES
The following Funds have issued and outstanding Auction Rate Preferred Shares
("ARPS"), $25,000 stated value per share, as a means of effecting financial
leverage. Each Fund's ARPS are issued in more than one Series. The dividend rate
paid by the Funds on each Series is determined every seven days, pursuant to a
dutch auction process overseen by the auction agent, and is payable at the end
of each rate period. As of April 30, 2010, the number of ARPS outstanding, by
Series and in total, for each Fund is as follows:
PREMIUM PREMIUM
INCOME INCOME 2
(NPI) (NPM)
--------------------------------------------------------------------------------
Number of shares:
Series M 2,900 1,600
Series M2 1,526 1,379*
Series T 2,900 2,401
Series T2 -- 2,683*
Series W 2,900 1,600
Series TH 2,901 2,401
Series TH2 -- 1,379*
Series F 2,899 1,601
Series F2 -- 1,504
Series F3 -- 1,915*
Series F4 -- 1,038*
--------------------------------------------------------------------------------
Total 16,026 19,501
================================================================================
* ARPS issued in the Reorganization of Florida Investment Quality (NQF) and
Florida Quality Income (NUF).
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the ARPS issued by the Funds than there were offers to
buy. This meant that these auctions "failed to clear," and that many ARPS
shareholders who wanted to sell their shares in these auctions were unable to do
so. ARPS shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions as calculated in accordance with
the pre-established terms of the ARPS.
Nuveen Investments 63
| Notes to
| Financial Statements (Unaudited) (continued)
As of April 30, 2010, the aggregate amount of outstanding ARPS redeemed by each
Fund is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
ARPS redeemed, at liquidation value $124,350,000 $108,475,000 $338,400,000
================================================================================
VARIABLE RATE DEMAND PREFERRED SHARES
Premium Income 4 (NPT) has issued and outstanding 2,622 Series 1 Variable Rate
Demand Preferred ("VRDP") Shares, $100,000 liquidation value per share. The Fund
issued its VRDP Shares in a privately negotiated offering in March 2010.
Proceeds of the Fund's offering were used to redeem a portion of the Fund's
outstanding ARPS. The VRDP Shares were offered to institutional buyers as
defined pursuant to Rule 144A under the Securities Act of 1933 and have a
maturity date of March 1, 2040.
VRDP Shares include a liquidity feature that allows VRDP shareholders to have
their shares purchased by a liquidity provider with whom the Fund has contracted
in the event that purchase orders for VRDP Shares in a remarketing are not
sufficient in number to be matched with the sale orders in that remarketing. The
Fund is required to redeem any VRDP Shares that are still owned by the liquidity
provider after six months of continuous, unsuccessful remarketing.
Dividends on the VRDP Shares (which are treated as interest payments for
financial reporting purposes) are set weekly at a rate established by a
remarketing agent; therefore, the market value of the VRDP Shares is expected to
approximate its liquidation value. If remarketings for VRDP Shares are
continuously unsuccessful for six months, the maximum rate is designed to
escalate according to a specified schedule in order to enhance the remarketing
agent's ability to successfully remarket the VRDP Shares.
Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part,
at any time at the option of the Fund. The Fund may also redeem certain of the
VRDP Shares if the Fund fails to maintain certain asset coverage requirements
and such failures are not cured by the applicable cure date. The redemption
price per share is equal to the sum of the liquidation value per share plus any
accumulated but unpaid dividends.
Premium Income 4 (NPT) had all $262,200,000 of its VRDP Shares outstanding
during the period March 18, 2010 through April 30, 2010, with an annualized
interest rate of 0.37%.
For financial reporting purposes only, the liquidation value of VRDP Shares is
recognized as a liability on the Statement of Assets and Liabilities. Unpaid
dividends on VRDP Shares are recognized as a component of "Interest payable" on
the Statement of Assets and Liabilities. Dividends paid on the VRDP Shares are
recognized as a component of "Interest expense and amortization of offering
costs" on the Statement of Operations. In addition to this interest expense, the
Fund also pays a per annum liquidity fee to the liquidity provider, which is
recognized as "Liquidity fees" on the Statement of Operations.
INVERSE FLOATING RATE SECURITIES
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as a component of "Interest expense and
amortization of offering costs" on the Statement of Operations.
64 Nuveen Investments
During the six months ended April 30, 2010, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as a
component of "Unrealized depreciation on Recourse Trusts" on the Statement of
Assets and Liabilities.
At April 30, 2010, each Fund's maximum exposure to externally-deposited Recourse
Trusts was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ 8,635,000 $ 5,570,000 $ 12,000,000
==========================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended April 30, 2010, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------
Average floating rate obligations outstanding $124,294,000 $102,434,000 $59,703,000
Average annual interest rate and fees 0.62% 0.66% 0.55%
==========================================================================================
FORWARD SWAP CONTRACTS
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Each Fund's use of forward interest rate swap
transactions is intended to help the Fund manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Fund's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve each Fund's agreement with a
counterparty to pay, in the future, a fixed or variable rate payment in exchange
for the counterparty paying the Fund a variable or fixed rate payment, the
accruals for which would begin at a specified date in the future (the "effective
date"). The amount of the payment obligation is based on the notional amount of
the swap contract and the termination date of the swap (which is akin to a
bond's maturity). The value of the Fund's swap commitment would increase or
decrease based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's termination date increases or decreases.
Forward interest rate swap contracts are valued daily. The net amount recorded
on these transactions for each counterparty is recognized on the Statement of
Assets and Liabilities as "Unrealized appreciation or depreciation on forward
swaps" with the change during the fiscal period recognized on the Statement of
Operations as "Change in net unrealized appreciation (depreciation) of forward
swaps."
The Funds may terminate a swap contract prior to the effective date, at which
point a realized gain or loss is recognized. When a forward swap is terminated,
it ordinarily does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash on a net basis. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." Each Fund intends,
but is not obligated, to terminate its forward swaps before the effective date.
Accordingly, the risk of loss with respect to the swap counterparty on such
transactions is limited to the credit risk associated with a counterparty
failing to honor its commitment to pay any realized gain to the Fund upon
termination. The Funds did not invest in forward interest rate swap transactions
during the six months ended April 30, 2010.
MARKET AND COUNTERPARTY CREDIT RISK
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions, when applicable. The extent of each Fund's exposure to
counterparty credit risk in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities. Futures
contracts, when applicable, expose a Fund to minimal counterparty credit risk as
they are exchange traded and the exchange's clearinghouse, which is counterparty
to all exchange traded futures, guarantees the futures contracts against
default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties Nuveen Asset Management (the "Adviser"), a wholly-owned
subsidiary of Nuveen Investments, Inc. ("Nuveen"), believes have the financial
resources to honor their obligations and by having the Adviser monitor the
financial stability of the counterparties. Additionally, counterparties may be
required to pledge collateral daily (based on the daily
Nuveen Investments 65
| Notes to
| Financial Statements (Unaudited) (continued)
valuation of the financial asset) on behalf of each Fund with a value
approximately equal to the amount of any unrealized gain above a pre-determined
threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have
instructed the custodian to pledge assets of the Funds as collateral with a
value approximately equal to the amount of the unrealized loss above a
pre-determined threshold. Collateral pledges are monitored and subsequently
adjusted if and when the valuations fluctuate, either up or down, by at least
the predetermined threshold amount.
ZERO COUPON SECURITIES
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. The market prices of zero coupon securities generally are more
volatile than the market prices of securities that pay interest periodically.
OFFERING COSTS
Costs incurred by Premium Income 4 (NPT) in connection with its offering of VRDP
Shares ($1,921,000) were recorded as a deferred charge which will be amortized
over the 30-year life of the shares. The Fund's amortized deferred charges are
recognized as a component of "Interest expense and amortization of offering
costs" on the Statement of Operations.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
INDEMNIFICATIONS
Under the Funds' organizational documents, their officers and directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets applicable to Common shares
from operations during the reporting period. Actual results may differ from
those estimates.
2. FAIR VALUE MEASUREMENTS
In determining the value of each Fund's investments, various inputs are used.
These inputs are summarized in the three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of April 30, 2010:
PREMIUM INCOME (NPI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $1,395,627,177 $2,792,420 $1,398,419,597
================================================================================
PREMIUM INCOME 2 (NPM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $1,600,139,210 $1,168,920 $1,601,308,130
================================================================================
PREMIUM INCOME 4 (NPT) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 855,791,595 $1,207,884 $ 856,999,479
================================================================================
66 Nuveen Investments
The following is a reconciliation of the Funds' Level 3 investments held at the
beginning and end of the measurement period:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
LEVEL 3 LEVEL 3 LEVEL 3
MUNICIPAL MUNICIPAL MUNICIPAL
BONDS BONDS BONDS
------------------------------------------------------------------------------------------------------
Balance at the beginning of period $ -- $ -- $ --
Gains (losses):
Net realized gains (losses) -- -- --
Net change in unrealized appreciation (depreciation) -- -- --
Net purchases at cost (sales at proceeds) -- -- --
Net discounts (premiums) -- -- --
Net transfers in to (out of) at end of period fair value 2,792,420 1,168,920 1,207,884
------------------------------------------------------------------------------------------------------
Balance at the end of period $ 2,792,420 $ 1,168,920 $ 1,207,884
======================================================================================================
"Change in net appreciation (depreciation) of investments" presented on the
Statement of Operations includes net unrealized appreciation (depreciation)
related to securities classified as Level 3 at period end as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Level 3 net appreciation (depreciation) $ 1,158,859 $ 485,029 $ 501,188
================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Funds record derivative instruments at fair value, with changes in fair
value recognized on the Statement of Operations, when applicable. Even though
the Funds' investments in derivatives may represent economic hedges, under this
guidance they are not considered to be hedge transactions for financial
reporting purposes. The Funds did not invest in derivative instruments during
the six months ended April 30, 2010.
4. FUND SHARES
COMMON SHARES
Transactions in Common shares were as follows:
PREMIUM PREMIUM PREMIUM
INCOME (NPI) INCOME 2 (NPM) INCOME 4 (NPT)
----------------------- ------------------------ -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
4/30/10 10/31/09 4/30/10 10/31/09 4/30/10 10/31/09
----------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued in the Reorganization -- -- -- 30,022,090* -- --
Repurchased and retired -- -- (122,900) (2,500) -- --
----------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased and retired -- -- $ 12.90 $ 11.32 -- --
Discount per share repurchased and retired -- -- 8.42% 13.90% -- --
============================================================================================================================
* Common shares issued in the Reorganization of Florida Investment Quality (NQF)
and Florida Quality Income (NUF).
Nuveen Investments 67
| Notes to
| Financial Statements (Unaudited) (continued)
PREFERRED SHARES
Transactions in ARPS were as follows:
PREMIUM PREMIUM
INCOME (NPI) INCOME 2 (NPM)
--------------------------------------- -----------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
4/30/10 10/31/09 4/30/10 10/31/09
-----------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------------
ARPS issued in the Reorganization*:
Series M2 -- $ -- -- $ -- -- $ -- 1,379 $ 34,475,000
Series T2 -- -- -- -- -- -- 2,683 67,075,000
Series TH2 -- -- -- -- -- -- 1,379 34,475,000
Series F3 -- -- -- -- -- -- 1,915 47,875,000
Series F4 -- -- -- -- -- -- 1,038 25,950,000
-------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- 8,394 209,850,000
=========================================================================================================================
ARPS redeemed:
Series M -- -- (107) (2,675,000) -- -- (34) (850,000)
Series M2 -- -- (56) (1,400,000) -- -- -- --
Series T -- -- (107) (2,675,000) -- -- (50) (1,250,000)
Series W -- -- (107) (2,675,000) -- -- (34) (850,000)
Series TH -- -- (107) (2,675,000) -- -- (51) (1,275,000)
Series F -- -- (108) (2,700,000) -- -- (34) (850,000)
Series F2 -- -- -- -- -- -- (32) (800,000)
-------------------------------------------------------------------------------------------------------------------------
-- -- (592) (14,800,000) -- -- (235) (5,875,000)
-------------------------------------------------------------------------------------------------------------------------
Total -- $ -- (592) $(14,800,000) -- $ -- 8,159 $ 203,975,000
=========================================================================================================================
* ARPS issued in the Reorganization of Florida Investment Quality (NQF) and
Florida Quality Income (NUF).
PREMIUM
INCOME 4 (NPT)
--------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
4/30/10 10/31/09
--------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------=
ARPS redeemed:
Series M (1,680) $ (42,000,000) (285) $ (7,125,000)
Series T (1,528) (38,200,000) (259) (6,475,000)
Series T2 (1,014) (25,350,000) (172) (4,300,000)
Series W (1,283) (32,075,000) (218) (5,450,000)
Series W2 (423) (10,575,000) (41) (1,025,000)
Series TH (2,047) (51,175,000) (346) (8,650,000)
Series F (1,374) (34,350,000) (233) (5,825,000)
Series F2 (1,013) (25,325,000) (172) (4,300,000)
--------------------------------------------------------------------------------
Total (10,362) $(259,050,000) (1,726) $(43,150,000)
--------------------------------------------------------------------------------
Transactions in VRDP Shares were as follows:
PREMIUM
INCOME 4 (NPT)
--------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
4/30/10 10/31/09
--------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------
VRDP Shares issued:
Series 1 2,622 $ 262,200,000 -- $ --
================================================================================
68 Nuveen Investments
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended April 30, 2010, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------
Purchases $24,277,403 $108,335,497 $58,641,090
Sales and maturities 20,594,088 66,324,457 58,264,187
============================================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
At April 30, 2010, the cost and unrealized appreciation (depreciation) of
investments as determined on a federal income tax basis, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------
Cost of investments $1,256,653,489 $1,445,216,081 $776,858,043
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 67,689,235 $ 78,591,278 $ 40,221,529
Depreciation (50,313,479) (24,904,147) (19,740,304)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 17,375,756 $ 53,687,131 $ 20,481,225
============================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2009, 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 * $13,815,353 $14,967,772 $9,886,290
Undistributed net ordinary income ** 28,298 4,421 4,237
Undistributed net long-term capital gains -- -- --
============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2009, paid on November 2, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' last tax year ended
October 31, 2009, 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 $52,231,046 $28,872,682 $31,929,950
Distributions from net ordinary income ** -- -- --
Distributions from net long-term capital gains -- -- --
============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
Nuveen Investments 69
| Notes to
| Financial Statements (Unaudited) (continued)
At October 31, 2009, the Funds' last tax year end, the Funds had unused capital
loss carryforwards available for federal income tax purposes to be applied
against future capital gains, if any. If not applied, the carryforwards will
expire as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM)* (NPT)
------------------------------------------------------------------------------------------------------------
Expiration:
October 31, 2010 $ -- $ -- $18,035,414
October 31, 2011 5,278,912 1,449,778 24,792,603
October 31, 2013 -- -- 6,161,830
October 31, 2014 4,614,516 197,103 806,337
October 31, 2015 -- 10,749,624 --
October 31, 2016 11,536,998 18,051,540 7,113,122
October 31, 2017 11,817,772 488,931 --
------------------------------------------------------------------------------------------------------------
Total $33,248,198 $30,936,976 $56,909,306
============================================================================================================
* A portion of Premium Income 2's (NPM) capital loss carryforward is subject
to an annual limitation under the Internal Revenue Code and related
regulations.
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a fund-level fee,
based only on the amount of assets within each individual Fund, and a
complex-level fee, based on the aggregate amount of all fund assets managed by
the Adviser. This pricing structure enables each Fund's shareholders to benefit
from growth in the assets within their respective Fund as well as from growth in
the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated
according to the following schedule:
AVERAGE DAILY NET ASSETS* FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
The annual complex-level fee for each Fund, payable monthly, is calculated
according to the following schedule:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL* EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
* The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed assets of all Nuveen
funds, with such daily managed assets defined separately for each fund in
its management agreement, but excluding assets attributable to investments
in other Nuveen funds. For the complex-level and fund-level fees, daily
managed assets include assets managed by the Adviser that are attributable
to financial leverage. For these purposes, financial leverage includes the
funds' use of preferred stock and borrowings and investments in the
residual interest certificates (also called inverse floating rate
securities) in tender option bond (TOB) trusts, including the portion of
assets held by a TOB trust that has been effectively financed by the
trust's issuance of floating rate securities, subject to an agreement by
the Adviser to limit the amount of such assets for determining managed
assets in certain circumstances. As of April 30, 2010, the complex-level
fee rate was .1852%.
70 Nuveen Investments
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its directors who are affiliated with the
Adviser or to its officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Directors has
adopted a deferred compensation plan for independent directors that enables
directors to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
8. NEW ACCOUNTING STANDARDS
ACCOUNTING FOR TRANSFERS OF FINANCIAL ASSETS
During June 2009, the Financial Accounting Standards Board ("FASB") issued
changes to the authoritative guidance under U.S. GAAP on accounting for
transfers of financial assets. The objective of this guidance is to improve the
relevance, representational faithfulness, and comparability of the information
that a reporting entity provides in its financial statements about a transfer of
financial assets; the effects of a transfer on its financial position, financial
performance, and cash flows; and a transferor's continuing involvement, if any,
in transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
FAIR VALUE MEASUREMENTS
On January 21, 2010, FASB issued changes to the authoritative guidance under
U.S. GAAP for fair value measurements. The objective of this guidance is to
provide guidance on how investment assets and liabilities are to be valued and
disclosed. Specifically, the amendment requires reporting entities to disclose
i) the input and valuation techniques used to measure fair value for both
recurring and nonrecurring fair value measurements, for both Level 2 and Level 3
positions, ii) transfers between all levels (including Level 1 and Level 2) on a
gross basis (i.e., transfers out must be disclosed separately from transfers in)
as well as the reason(s) for the transfer and iii) purchases, sales, issuances
and settlements in the Level 3 rollforward must be shown on a gross basis rather
than as one net number. The effective date of the amendment is for interim and
annual periods beginning after December 15, 2009, however, the requirement to
provide the Level 3 activity for purchases, sales, issuances and settlements on
a gross basis will be effective for interim and annual periods beginning after
December 15, 2010. At this time, management is evaluating the implications of
this guidance and the impact it will have to the financial statement amounts and
footnote disclosures, if any.
Nuveen Investments 71
| Financial
| Highlights(Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------------- ----------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL NET DISCOUNT ENDING
BEGINNING NET INCOME TO GAINS TO INVESTMENT CAPITAL FROM COMMON
COMMON REALIZED/ AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE
SHARE NET UNREALIZED PREFERRED PREFERRED COMMON COMMON SHARES NET ENDING
NET ASSET INVESTMENT GAIN SHARE- SHARE- SHARE- SHARE- REPURCHASED ASSET MARKET
VALUE INCOME (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL AND RETIRED VALUE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
PREMIUM INCOME (NPI)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) $13.72 $ .50 $ .30 $(.01) $ -- $ .79 $(.43) $ -- $ (.43) $ -- $14.08 $13.69
2009 11.86 .99 1.70 (.05) -- 2.64 (.78) -- (.78) -- 13.72 12.77
2008 14.76 .97 (2.88) (.28) -- (2.19) (.71) -- (.71) -- 11.86 10.93
2007 15.33 .98 (.55) (.29) -- .14 (.71) -- (.71) -- 14.76 13.30
2006 14.85 1.00 .49 (.26) -- 1.23 (.75) -- (.75) -- 15.33 14.13
2005 15.20 .98 (.26) (.16) -- .56 (.91) -- (.91) -- 14.85 13.87
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 14.17 .50 .35 (.01) -- .84 (.44) -- (.44) --** 14.57 13.90
2009 11.71 .95 2.34 (.05) -- 3.24 (.78) -- (.78) --** 14.17 13.02
2008 14.85 .97 (3.10) (.29) (.01) (2.43) (.69) (.02) (.71) --** 11.71 10.28
2007 15.45 .97 (.56) (.30) (.01) .10 (.69) (.02) (.71) .01 14.85 13.25
2006 15.07 .97 .49 (.25) (.01) 1.20 (.76) (.06) (.82) -- 15.45 14.05
2005 15.53 .98 (.24) (.16) (.01) .57 (.93) (.10) (1.03) -- 15.07 13.97
===================================================================================================================================
AUCTION RATE 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:
2010(d) $400,650 $25,000 $81,054
2009 400,650 25,000 79,620
2008 415,450 25,000 70,540
2007 525,000 25,000 69,820
2006 525,000 25,000 71,552
2005 525,000 25,000 70,116
==========================================================
PREMIUM INCOME 2 (NPM)
----------------------------------------------------------
Year Ended 10/31:
2010(d) 487,525 25,000 77,831
2009 487,525 25,000 76,452
2008 283,550 25,000 67,109
2007 347,000 25,000 68,647
2006 347,000 25,000 70,748
2005 347,000 25,000 69,617
==========================================================
72 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES++(b)
--------------------- -------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) SHARES (000) INTEREST(c) INTEREST INCOME RATE
-----------------------------------------------------------------------------------------------------------------
PREMIUM INCOME (NPI)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 10.67% 5.83% $898,322 1.23%* 1.14%* 7.27%* 1%
2009 24.61 22.89 875,341 1.31 1.17 7.79 4
2008 (13.10) (15.39) 756,782 1.49 1.18 6.95 11
2007 (1.02) .93 941,220 1.56 1.17 6.52 14
2006 7.52 8.53 977,601 1.19 1.19 6.64 15
2005 3.37 3.71 947,446 1.19 1.19 6.44 20
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 10.24 5.99 1,030,264 1.18* 1.11* 7.09* 4
2009 35.00 28.38 1,003,366 1.36 1.20 7.71 9
2008 (17.95) (16.96) 477,603 1.56 1.22 6.93 8
2007 (.81) .71 605,817 1.62 1.19 6.44 12
2006 6.71 8.24 634,981 1.20 1.20 6.42 15
2005 2.98 3.71 619,282 1.20 1.20 6.40 15
=================================================================================================================
* Annualized.
** Rounds to less than $.01 per share.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares.
(a) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
(b) Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank and legal
fee refund, where applicable.
(c) The expense ratios reflect, among other things, the interest expense
deemed to have been paid by the Fund on the floating rate certificates
issued by the special purpose trusts for the self-deposited inverse
floaters held by the Fund, as described in Footnote 1 - Inverse Floating
Rate Securities.
(d) For the six months ended April 30, 2010.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 73
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
-------------------------------------------------------- --------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL NET DISCOUNT ENDING
BEGINNING NET INCOME TO GAINS TO INVESTMENT CAPITAL FROM COMMON
COMMON REALIZED/ AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE
SHARE NET UNREALIZED PREFERRED PREFERRED COMMON COMMON SHARES NET ENDING
NET ASSET INVESTMENT GAIN SHARE- SHARE- SHARE- SHARE- REPURCHASED ASSET MARKET
VALUE INCOME (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL AND RETIRED VALUE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) $ 12.58 $ .45 $ .33 $ (.01) $ -- $ .77 $ (.41) $ -- $(.41) $ -- $12.94 $12.70
2009 10.59 .91 1.83 (.05) -- 2.69 (.70) -- (.70) -- 12.58 11.69
2008 13.22 .91 (2.67) (.28) -- (2.04) (.59) -- (.59) -- 10.59 9.24
2007 13.69 .90 (.45) (.28) -- .17 (.64) -- (.64) -- 13.22 11.77
2006 13.38 .90 .35 (.25) -- 1.00 (.69) -- (.69) -- 13.69 12.80
2005 13.54 .91 (.10) (.16) -- .65 (.81) -- (.81) -- 13.38 12.31
===================================================================================================================================
AUCTION RATE PREFERRED SHARES VARIABLE RATE DEMAND PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
------------------------------------- --------------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE
-------------------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
-------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) $ -- $ -- $ -- $ 262,200 $ 100,000 $ 313,416
2009 259,050 25,000 77,481 -- -- --
2008 302,200 25,000 62,878 -- -- --
2007 338,400 25,000 67,215 -- -- --
2006 338,400 25,000 68,731 -- -- --
2005 338,400 25,000 67,739 -- -- --
=======================================================================================================
74 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES++(b)
-------------------- -----------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE(a) VALUE(a) SHARES (000) INTEREST(c) INTEREST INCOME RATE
-----------------------------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2010(d) 12.25% 6.18% $ 559,576 1.43%* 1.32%* 7.11%* 7%
2009 35.01 26.11 543,812 1.33 1.23 7.89 6
2008 (17.19) (15.97) 457,866 1.62 1.25 7.19 10
2007 (3.30) 1.25 571,427 1.69 1.23 6.68 14
2006 9.89 7.72 591,941 1.25 1.25 6.70 9
2005 3.07 4.87 578,517 1.26 1.26 6.63 7
=================================================================================================================
* Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares and/or Variable Rate Demand Preferred shares, where applicable.
(a) Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
(b) Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, and
legal fee refund, where applicable.
(c) The expense ratios reflect, among other things, payments to Variable Rate
Demand Preferred shareholder and/or the interest expense deemed to have
been paid by the Fund on the floating rate certificates issued by the
special purpose trusts for the self-deposited inverse floaters held by the
Fund, where applicable, as described in Footnote 1 - Variable Rate Demand
Preferred Shares and Inverse Floating Rate Securities, respectively.
(d) For the six months ended April 30, 2010.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Nuveen Investments 75
Reinvest Automatically Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price
76 Nuveen Investments
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.
Nuveen Investments 77
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with a
fixed interest rate, into a special purpose trust created by a
broker-dealer. This trust, in turn, (a) issues floating rate certificates
typically paying short-term tax-exempt interest rates to third parties in
amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate
(sometimes referred to as an "inverse floater") to an investor (such as a
Fund) interested in gaining investment exposure to a long-term municipal
bond. The income received by the holder of the inverse floater varies
inversely with the short-term rate paid to the floating rate certificates'
holders, and in most circumstances the holder of the inverse floater bears
substantially all of the underlying bond's downside investment risk. The
holder of the inverse floater typically also benefits disproportionately
from any potential appreciation of the underlying bond's value. Hence, an
inverse floater essentially represents an investment in the underlying
bond on a leveraged basis.
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes
78 Nuveen Investments
into account the leveraging process for a Fund and therefore is longer
than the duration of the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per share is calculated by subtracting
the liabilities of the Fund (including any Preferred shares issued in
order to leverage the Fund) from its total assets and then dividing the
remainder by the number of common shares outstanding. Fund NAVs are
calculated at the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 79
Notes
80 Nuveen Investments
Other Useful Information
BOARD OF DIRECTORS
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP Chicago, IL
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
("NYSE") the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common and/or
auction rate preferred stock in the future at such times and in such amounts as
is deemed advisable. During the period covered by this report, the Funds
repurchased and/or redeemed shares of their common and/or auction rate preferred
stock as shown in the accompanying table.
AUCTION RATE
COMMON PREFERRED
SHARES SHARES
FUND REPURCHASED REDEEMED
NPI -- --
NPM 122,900 --
NPT -- 10,362
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 81
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions through continued
adherence to proven, longterm investing principles. Today, we offer a range of
high quality equity and fixed-income solutions designed to be integral
components of a well-diversified core portfolio.
FOCUSED ON MEETING INVESTOR NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. We market our growing
range of specialized investment solutions under the high-quality brands of
HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital.
In total, Nuveen Investments managed approximately $150 billion of assets on
March 31, 2010.
FIND OUT HOW WE CAN HELP YOU.
To learn more about how the products and services of Nuveen Investments may be
able to help you meet your financial goals, talk to your financial advisor, or
call us at (800) 257-8787. Please read the information provided carefully before
you invest.
Investors should consider the investment objective and policies, risk
considerations, charges and expenses of any investment carefully. Where
applicable, be sure to obtain a prospectus, which contains this and other
relevant information. To obtain a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
ESA-E-0410D
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.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors or Trustees
implemented after the registrant last provided disclosure in response to
this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See
Ex-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Premium Income Municipal Fund, Inc.
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: July 8, 2010
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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 8, 2010
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 8, 2010
-------------------------------------------------------------------