UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05570
---------------------
Nuveen Premium Income Municipal Fund, Inc.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: October 31, 2006
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT October 31, 2006
Nuveen Investments
Municipal Closed-End Funds
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND, INC.
NPI
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND 2, INC.
NPM
NUVEEN PREMIUM
INCOME MUNICIPAL
FUND 4, INC.
NPT
Photo of: Woman and man at the beach.
Photo of: A child.
DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
Photo of: Woman
Photo of: Woman
Photo of: Man and child
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Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the twelve-month period
covered by this report your Fund continued to provide you with attractive
monthly tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well balanced investment portfolio.
In addition to providing attractive tax-free monthly income, a municipal
bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with investing.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the Internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues to
be to assist you and your financial advisor by offering investment services
and products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2006
Nuveen Investments Municipal Closed-End Funds
NPI, NPM, NPT
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan discusses U.S. economic and municipal market
conditions, key investment strategies, and the annual performance of these three
national Funds. With 17 years of investment experience, including 15 years at
Nuveen, Paul assumed portfolio management responsibility for NPI, NPM, and NPT
in July 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED OCTOBER 31, 2006?
In response to market concerns about oil prices, inflation, and the actions of
the Federal Reserve over the past 12 months, bond yields exhibited some
volatility during this reporting period, with longer-term rates hitting a peak
in June 2006 before falling sharply for the remainder of the period. For the
period as a whole, interest rates at the shorter end of the yield curve
generally continued to rise, while longer rates ended the period close to where
they began it or even declined. As short-term rates approached and exceeded the
levels of long-term rates, the taxable yield curve became increasingly flat and
subsequently inverted. Consequently, bonds with longer durations1 generally
outperformed those with shorter durations during this period.
Between November 1, 2005 and October 31, 2006, the Federal Reserve announced six
increases of 0.25% each in the fed funds rate before pausing to leave monetary
policy unchanged at the August-October 2006 sessions of its Open Market
Committee. The increases raised the short-term target by 150 basis points, from
3.75% to 5.25%, its highest level since March 2001. During this same period, the
yield on the benchmark 10-year U.S. Treasury note rose just four basis points to
end October 2006 at 4.60%. In contrast, in the municipal market, the yield on
the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term
municipal market rates, fell to 4.78% at the end of October 2006, a decline of
43 basis points from the end of October 2005.
Economic growth over the past year reflected the fluctuations in interest rates,
energy prices, and the effects of a softening housing market. After expanding at
a rate of 1.8% in the fourth quarter of 2005, the U.S. gross domestic product
(GDP) rebounded sharply with a 5.6% gain in the first quarter of 2006 before
moderating to a pace of 2.6% in the second quarter of 2006 (all GDP numbers
annualized). In the third quarter of 2006, the rate of GDP growth slowed to
2.2%, largely as the result of an 18% slump in residential investment, the
largest decrease in 15 years. Despite the recent slowdown in economic growth,
the markets continued to keep a close eye on inflation trends. While declining
energy prices contributed to a benign 1.3% year-over-year increase in the
Consumer Price Index as of October 2006, the core rate (which excludes food and
energy prices) rose 2.7% for the same period. In general, the jobs picture
remained positive, with national unemployment at 4.4% in October 2006, down from
4.9% in October 2005, the lowest level since May 2001.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
4
Over the 12 months ended October 2006, municipal bond issuance nationwide
totaled $367.1 billion, down 8% from the previous 12 months. This total
reflected the general decrease in the issuance of municipal paper during 2006.
After reaching record levels in calendar year 2005, municipal supply declined
during the first 10 months of 2006, with $295.1 billion in new securities coming
to market, off 12.5% from the same period in 2005. A major factor in 2006's drop
was the sharp reduction in pre-refunding volume, which fell almost 50% from last
year's levels. Overall, demand for municipal bonds, especially those offering
higher yields, continued to be strong and broad-based, with retail investors,
institutional investors such as hedge funds and arbitragers, and foreign
participants all taking part in the market.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
As the yield curve flattened over this 12-month period, we continued to
emphasize careful management of the Funds' underlying portfolios in line with
our established targets. This included pursuing a disciplined approach to
duration management and yield curve positioning throughout the period. As part
of this approach, we focused on purchasing bonds that we believed provided
attractive reward opportunities without excessive risk, emphasizing attractively
priced bonds with defensive coupons in the 15- to 20-year part of the yield
curve. For these Funds, our purchases of defensive coupon bonds included bonds
with premium coupons2.
In recent months, we broadened our strategic scope in these three Funds to place
additional emphasis on income strategies by purchasing bonds that offered the
potential for more income such as zero coupon bonds, discount coupon bonds and
inverse floaters. (Inverse floaters are bonds with coupons structured to move in
the opposite direction of interest rates. For example, if market interest rates
decline, the interest rate earned by the inverse floater will rise. An inverse
floater increases the market rate risk and modified duration of the investment.)
Although issuance nationwide declined during this period, the reduction in
issuance did not have a major impact on the implementation of this or other
strategies we had planned for these Funds. Much of the new issuance was highly
rated and/or insured, and many of our new purchases were higher-rated credits,
especially in the essential services sectors, with an emphasis on keeping the
Funds well diversified geographically. NPI, NPM, and NPT also continued to
purchase paper issued in specialty states such as California, New York and Ohio.
Because of the relatively higher income tax levels in specialty states,
municipal bonds issued in these states are generally in great demand by retail
investors, which helps to support their value. These bonds also provide
additional liquidity, making it easier for us to execute trades as part of
implementing our strategies.
2 Premium coupon bonds are credits that, at the time of purchase, are trading
above their par values because their coupons are higher than current coupon
levels. Histor ically, these bonds have held their value better than
current coupon bonds when interest rates rise.
5
At the same time, we continued to emphasize maintaining the Funds' weightings of
lower-quality bonds. However, as credit spreads continued to narrow over this
period and municipal issuance tightened, we generally found fewer attractively
priced lower-rated credit opportunities in the marketplace. This was especially
true during the second half of this reporting period. Overall, the Funds
continued to have good exposure to the lower-rated credit categories.
As part of our yield curve and income strategies, we also sold holdings with
shorter durations, including pre-refunded bonds; bonds with less attractive call
features; and credits producing lower tax-exempt income streams. A portion of
the proceeds from these sales was reinvested out longer on the yield curve,
which enabled us to maintain the Funds' durations within our preferred strategic
range and contributed to their performance during this period.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 10/31/06
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NPI 8.53% 6.23% 6.40%
--------------------------------------------------------------------------------
NPM 8.24% 6.54% 6.73%
--------------------------------------------------------------------------------
NPT 7.72% 5.43% 5.79%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index3 5.75% 5.05% 5.85%
--------------------------------------------------------------------------------
Lipper General
Leveraged
Municipal Debt
Funds Average4 8.42% 7.00% 6.63%
--------------------------------------------------------------------------------
*Annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended October 31, 2006, the total returns on net asset value
(NAV) for all three of the Funds in this report exceeded the return on the
Lehman Brothers Municipal Bond Index. NPI outperformed the average return for
the Funds' Lipper peer group, while NPM slightly trailed with this return, and
NPT trailed the peer group average for this period.
3 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman Brothers index do not reflect any expenses.
4 The Lipper General Leveraged Municipal Debt Funds category average is
calculated using the returns of all closed-end funds in this category for
each period as follows: 1 year, 56; 5 years, 45; and 10 years, 39. Fund and
Lipper returns assume reinvestment of dividends.
6
Factors that influenced the Funds' returns during this period included yield
curve positioning and duration management, implementation of income strategies,
allocations to lower-rated credits, the use of financial leverage, and advance
refunding activity.5
As longer rates declined and the yield curve flattened over the course of this
period, yield curve and duration positioning played an important role in the
performance of these Funds. Overall, bonds in the Lehman Brothers Municipal Bond
Index with maturities between one and four years were the most adversely
impacted by changes in the interest rate environment over this period, as
interest rates in that part of the curve rose. As a result, these bonds
generally underperformed longer bonds, with issues having maturities between 17
and 22 years and those with maturities 22 years and longer achieving the best
returns for the period. Yield curve positioning, or exposure to those parts of
the yield curve that performed best during this period, helped the Funds'
performances. We continued to work to strengthen this positioning, especially in
NPT.
As previously mentioned, in recent months we implemented additional income
strategies by adding zero coupon bonds, discount coupon bonds, and inverse
floaters to our port folios, all of which had a positive impact on the Funds'
performances for this period. Zero coupon bonds, for example, typically have
very long initial maturities and tend to be very sensitive to changes in
interest rates. With rates at the long end of the curve declining throughout
much of this 12-month period, zero coupon bonds in the Lehman Brothers Municipal
Bond Index performed very well, exceeding the return for the general municipal
market by almost 500 basis points.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, all of these Funds also benefited
from their allocations of lower-quality credits. The performance of this sector
was largely the result of investor demand for the higher yields typically
associated with lower-quality bonds, which drove up their value and caused
credit spreads to tighten. As of October 31, 2006, allocations of bonds rated
BBB and lower and non-rated bonds accounted for 10% of NPT's portfolio, 13% of
NPI, and 15% of NPM.
Among the lower-rated holdings making positive contributions to the Funds' total
returns for this period were industrial development and resource recovery bonds
and health care (including hospitals) credits, which ranked as the top
performing revenue sectors in the Lehman Brothers Municipal Bond Index. Bonds
backed by the 1998 master tobacco settlement agreement, which are generally
rated BBB, also contributed to the Funds' performances. These bonds comprised
approximately 4% to 6% of the portfolios of these three Funds as of October 31,
2006.
Another factor in the annual performance of these Funds, especially relative to
that of the unleveraged Lehman Brothers Municipal Bond Index, was the use of
financial
5 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
7
leverage. While leveraging can add volatility to a Fund's NAV and share price,
this strategy can also provide opportunities for additional income and total
return for common shareholders. Over this 12-month reporting period, the Funds'
performances were impacted by the leveraging strategy, although not to the
extent we have seen in past years. Over the long term, we firmly believe that
the use of financial leverage should continue to work to the benefit of these
Funds. This is demonstrated by the Funds' total return performances--both
absolute and relative to the Lehman Brothers Municipal Bond Index--over the
longer term.
We also continued to see positive contributions from advance refunding activity,
which benefited these Funds through price appreciation and enhanced credit
quality. While advance refundings generally enhanced performance for this
12-month period, the Funds' holdings of older, previously pre-refunded bonds
tended to underperform the general municipal market, due primarily to their
shorter effective maturities. This was especially true in NPT, which had the
largest allocation of pre-refunded bonds among these three Funds. During the
first half of this period, NPT also held a few multifamily housing and project
financing bonds that did not perform as well as expected due to credit
deterioration. These bonds had been sold out of the portfolio earlier in the
fiscal year.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
OCTOBER 31, 2006?
Maintaining strong credit quality remained an important requirement. As of
October 31, 2006, all three of these Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
72% in NPM and 75% in NPI to 80% in NPT.
At the end of October 2006, potential call exposure for the period November 2006
through the end of 2007 totaled 9% in NPI, 7% in NPM, and 13% in NPT. The number
of actual bond calls in all of these Funds depends largely on future market
interest rates.
8
Dividend and Share Price
INFORMATION
NPI, NPM, and NPT use leverage to potentially enhance opportunities for
additional income for common shareholders. The benefits of leveraging are tied
in part to the short-term rates that leveraged Funds pay their MuniPreferred(R)
shareholders. During periods of low short-term rates, these Funds generally pay
lower dividends to their MuniPreferred shareholders, which can leave more
earnings to support common share dividends. Conversely, when short-term interest
rates rise, as they did during this reporting period, the Funds' borrowing costs
also rise, impacting their income streams and reducing the extent of the
benefits of leveraging. The Funds' income streams were also impacted as the
proceeds from older, higher-yielding bonds that matured, were called, or were
sold were reinvested then into bonds currently available in the market, which
generally offered lower yields. These factors resulted in three monthly dividend
reductions in NPI and NPT and four in NPM over the 12-month period ended October
31, 2006.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and/or net ordinary income
distributions at the end of December 2005, as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NPI -- $0.0013
--------------------------------------------------------------------------------
NPM $0.0610 $0.0006
--------------------------------------------------------------------------------
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of October 31, 2006, all of
the Funds in this report had positive UNII balances for both financial statement
and tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
discounts to their NAVs as shown in the accompanying chart:
10/31/06 12-MONTH
DISCOUNT AVERAGE DISCOUNT
--------------------------------------------------------------------------------
NPI -7.83% -7.95%
--------------------------------------------------------------------------------
NPM -9.06% -8.56%
--------------------------------------------------------------------------------
NPT -6.50% -7.60%
--------------------------------------------------------------------------------
9
Nuveen Premium Income Municipal Fund, Inc.
NPI
Performance
OVERVIEW As of October 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 61%
AA 14%
A 12%
BBB 10%
BB or Lower 1%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.0695
Dec 0.066
Jan 0.066
Feb 0.066
Mar 0.0625
Apr 0.0625
May 0.0625
Jun 0.059
Jul 0.059
Aug 0.059
Sep 0.059
Oct 0.059
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/01/05 13.87
13.949
13.9
13.92
13.92
13.9
13.9
13.68
13.66
13.54
13.48
13.57
13.5
13.47
13.51
13.5
13.47
13.48
13.55
13.57
13.69
13.74
13.8
13.84
13.9
13.77
13.83
13.88
13.72
13.44
13.39
13.41
13.36
13.37
13.379
13.36
13.45
13.55
13.76
13.9
13.96
13.99
13.99
14.02
14.1
14.17
14.34
14.42
14.37
14.22
14.24
14.24
14.19
14.16
14.21
14.28
14.28
14.25
14.24
14.25
14.28
14.25
14.29
14.2
14.16
14.1
14
13.99
13.98
14.02
14.05
14
13.97
13.93
13.94
14.02
14.04
14.14
14.24
14.25
14.23
14.3
14.25
14.18
14.21
14.1
14.04
14.11
14.15
14.05
14
13.97
13.97
14.09
14.1
14.06
14.05
14.05
14.04
14.07
14.07
14.08
14.15
14.1
14.14
14.2
14.2
14.06
14
13.92
13.71
13.57
13.57
13.47
13.4
13.42
13.44
13.39
13.4
13.48
13.43
13.45
13.47
13.54
13.54
13.55
13.58
13.6
13.55
13.57
13.58
13.58
13.64
13.55
13.53
13.55
13.59
13.53
13.53
13.58
13.53
13.53
13.51
13.48
13.58
13.56
13.56
13.67
13.68
13.56
13.54
13.5
13.43
13.42
13.38
13.28
13.2
13.1
13.15
13.17
13.15
13.19
13.09
13.09
13.06
13.07
13.02
13.03
13.07
13.11
13.13
13.18
13.21
13.17
13.15
13.14
13.13
13.14
13.15
13.12
13.19
13.15
13.18
13.25
13.25
13.25
13.4
13.42
13.48
13.56
13.6
13.65
13.64
13.63
13.62
13.63
13.67
13.56
13.68
13.86
13.94
13.92
13.97
13.98
14.04
14.01
14.11
14.15
14.11
14.12
14.12
14.13
14.15
14.1
14
13.99
14.06
14.09
14.07
13.99
13.95
13.95
13.92
13.9
13.92
13.95
13.95
13.97
13.98
14.07
14.03
14.04
14.04
14.03
14.03
14.01
14.1
14.06
14.1
14.05
13.96
13.92
13.8
13.84
13.83
13.85
13.94
13.97
13.97
14.04
14.06
14.06
14.1
14.14
10/31/06 14.13
FUND SNAPSHOT
------------------------------------
Common Share Price $14.13
------------------------------------
Common Share
Net Asset Value $15.33
------------------------------------
Premium/(Discount) to NAV -7.83%
------------------------------------
Market Yield 5.01%
------------------------------------
Taxable-Equivalent Yield1 6.96%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $977,601
------------------------------------
Average Effective Maturity
on Securities (Years) 16.41
------------------------------------
Leverage-Adjusted Duration 8.71
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/18/88)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 7.52% 8.53%
------------------------------------
5-Year 6.32% 6.23%
------------------------------------
10-Year 6.26% 6.40%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
New York 13.0%
------------------------------------
California 12.7%
------------------------------------
Texas 8.2%
------------------------------------
Illinois 5.9%
------------------------------------
New Jersey 5.9%
------------------------------------
South Carolina 4.4%
------------------------------------
Washington 4.3%
------------------------------------
Minnesota 3.5%
------------------------------------
Colorado 3.3%
------------------------------------
Pennsylvania 2.9%
------------------------------------
District of Columbia 2.9%
------------------------------------
Nevada 2.8%
------------------------------------
Massachusetts 2.5%
------------------------------------
Michigan 2.5%
------------------------------------
Florida 1.9%
------------------------------------
Wisconsin 1.9%
------------------------------------
Alaska 1.9%
------------------------------------
Other 19.5%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 16.3%
------------------------------------
U.S. Guaranteed 15.2%
------------------------------------
Health Care 13.4%
------------------------------------
Tax Obligation/General 13.0%
------------------------------------
Transportation 12.4%
------------------------------------
Utilities 8.0%
------------------------------------
Education and Civic
Organizations 7.4%
------------------------------------
Other 14.3%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a net ordinary income distribution in December
2005 of $.0013 per share.
10
Nuveen Premium Income Municipal Fund 2, Inc.
NPM
Performance
OVERVIEW As of October 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 62%
AA 10%
A 13%
BBB 11%
N/R 4%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.071
Dec 0.0675
Jan 0.0675
Feb 0.0675
Mar 0.064
Apr 0.064
May 0.064
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0575
Oct 0.0575
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/01/05 14.02
13.98
13.95
13.92
13.98
13.98
13.96
13.76
13.7
13.64
13.58
13.64
13.69
13.63
13.67
13.63
13.59
13.66
13.73
13.7
13.6
13.6701
13.66
13.68
13.72
13.7
13.68
13.62
13.62
13.42
13.42
13.46
13.45
13.41
13.35
13.35
13.38
13.39
13.48
13.57
13.6
13.76
13.76
13.79
13.85
13.88
14.06
14.29
14.17
14.14
14.16
14.18
14.05
14.03
13.97
14.01
14.06
14.18
14.22
14.06
14.12
14.13
14.1
14.07
14.1
14.08
14.09
14.14
14.17
14.14
14.12
14.109
14.06
14.08
14.06
14.15
14.16
14.19
14.17
14.22
14.22
14.34
14.35
14.35
14.26
14.19
14.05
14.02
14.05
14.02
13.97
13.96
14.01
14.16
14.13
14.11
14.07
14.1
14.05
14.06
14.06
13.98
13.9399
13.91
13.9344
13.89
13.95
13.98
13.87
13.82
13.77
13.63
13.61
13.6
13.56
13.59
13.63
13.52
13.58
13.63
13.63
13.56
13.59
13.7
13.7
13.6
13.62
13.55
13.41
13.46
13.5
13.48
13.56
13.5
13.5
13.49
13.63
13.57
13.59
13.6
13.63
13.67
13.69
13.78
13.88
13.82
13.82
13.89
13.9
13.84
13.69
13.73
13.64
13.67
13.69
13.49
13.48
13.45
13.49
13.45
13.35
13.39
13.33
13.28
13.31
13.2305
13.23
13.23
13.34
13.35
13.26
13.32
13.35
13.32
13.34
13.25
13.22
13.24
13.22
13.19
13.2
13.19
13.25
13.28
13.31
13.37
13.49
13.52
13.63
13.62
13.72
13.73
13.71
13.68
13.76
13.86
13.9
13.78
13.86
13.95
13.97
13.97
14.12
14.12
14.21
14.17
14.2
14.2
14.24
14.21
14.22
14.18
14.21
14.19
14.1
14.12
14.16
14.16
14.18
14.09
13.97
13.94
13.95
14.02
14.01
14.05
14.04
14.04
14.03
14.09
14.07
14.05
14.05
14.06
14.1
14.08
14.06
14
13.98
13.96
13.9
13.78
13.65
13.67
13.72
13.76
13.82
13.85
13.8
13.84
13.88
13.84
13.91
13.96
10/31/06 14.05
FUND SNAPSHOT
------------------------------------
Common Share Price $14.05
------------------------------------
Common Share
Net Asset Value $15.45
------------------------------------
Premium/(Discount) to NAV -9.06%
------------------------------------
Market Yield 4.91%
------------------------------------
Taxable-Equivalent Yield1 6.82%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $634,981
------------------------------------
Average Effective Maturity
on Securities (Years) 15.88
------------------------------------
Leverage-Adjusted Duration 9.46
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/23/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 6.71% 8.24%
------------------------------------
5-Year 6.25% 6.54%
------------------------------------
10-Year 6.77% 6.73%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
New York 10.9%
------------------------------------
California 10.1%
------------------------------------
Illinois 9.4%
------------------------------------
Texas 6.9%
------------------------------------
South Carolina 6.4%
------------------------------------
Washington 6.1%
------------------------------------
Massachusetts 4.4%
------------------------------------
New Jersey 3.6%
------------------------------------
Missouri 3.6%
------------------------------------
Minnesota 2.8%
------------------------------------
Ohio 2.6%
------------------------------------
Michigan 2.4%
------------------------------------
Louisiana 2.4%
------------------------------------
Nevada 2.3%
------------------------------------
Iowa 2.2%
------------------------------------
Florida 1.9%
------------------------------------
Rhode Island 1.8%
------------------------------------
Alabama 1.8%
------------------------------------
Other 18.4%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 16.9%
------------------------------------
Tax Obligation/Limited 15.7%
------------------------------------
U.S. Guaranteed 15.7%
------------------------------------
Health Care 14.0%
------------------------------------
Utilities 10.5%
------------------------------------
Transportation 7.4%
------------------------------------
Education and Civic
Organizations 6.2%
------------------------------------
Other 13.6%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.0616 per share.
11
Nuveen Premium Income Municipal Fund 4, Inc.
NPT
Performance
OVERVIEW As of October 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 71%
AA 9%
A 10%
BBB 6%
BB or Lower 3%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.0645
Dec 0.061
Jan 0.061
Feb 0.061
Mar 0.0575
Apr 0.0575
May 0.0575
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/01/05 12.35
12.32
12.31
12.33
12.41
12.44
12.48
12.23
12.23
12.19
12.17
12.23
12.19
12.22
12.22
12.24
12.2
12.25
12.35
12.33
12.38
12.38
12.46
12.49
12.45
12.39
12.44
12.38
12.4
12.22
12.05
12
12.01
11.89
11.8899
11.9
12
12.01
12.04
12.15
12.29
12.31
12.31
12.22
12.35
12.44
12.47
12.52
12.6
12.42
12.53
12.48
12.47
12.45
12.54
12.54
12.59
12.6
12.56
12.6
12.63
12.58
12.6
12.61
12.52
12.55
12.57
12.56
12.5601
12.6
12.61
12.46
12.39
12.47
12.42
12.47
12.45
12.57
12.63
12.63
12.65
12.77
12.73
12.72
12.65
12.5699
12.58
12.68
12.67
12.71
12.63
12.65
12.67
12.77
12.76
12.65
12.68
12.75
12.8
12.75
12.75
12.77
12.82
12.77
12.79
12.82
12.83
12.68
12.64
12.48
12.43
12.29
12.25
12.18
12.1
12.13
12.12
12.08
12.06
12.12
12.13
12.14
12.12
12.17
12.17
12.17
12.18
12.14
12.1
12.09
12.19
12.14
12.18
12.09
12.09
12.07
12.15
12.1
12.15
12.01
12.02
11.96
11.98
11.96
12.03
11.95
12.03
12.16
12.23
12.09
12.17
12.14
12.16
12.15
12.1
11.99
11.97
11.96
11.91
11.89
11.85
11.79
11.8
11.88
11.9
11.87
11.77
11.84
11.92
11.95
11.91
12.03
11.96
11.97
12.05
12.03
12
12
11.91
11.9
12
12.01
12.1
12.23
12.31
12.33
12.35
12.36
12.41
12.48
12.47
12.44
12.46
12.45
12.42
12.4
12.45
12.38
12.34
12.44
12.5
12.47
12.53
12.55
12.57
12.57
12.58
12.52
12.58
12.62
12.6
12.63
12.71
12.65
12.56
12.59
12.62
12.63
12.7
12.61
12.63
12.66
12.62
12.65
12.6
12.6099
12.69
12.65
12.69
12.73
12.73
12.77
12.77
12.75
12.87
12.8232
12.78
12.77
12.75
12.82
12.66
12.7399
12.61
12.58
12.54
12.65
12.65
12.63
12.65
12.74
12.75
12.71
12.74
12.74
10/31/06 12.8
FUND SNAPSHOT
------------------------------------
Common Share Price $12.80
------------------------------------
Common Share
Net Asset Value $13.69
------------------------------------
Premium/(Discount) to NAV -6.50%
------------------------------------
Market Yield 5.11%
------------------------------------
Taxable-Equivalent Yield1 7.10%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $591,941
------------------------------------
Average Effective Maturity
on Securities (Years) 16.55
------------------------------------
Leverage-Adjusted Duration 8.75
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/19/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 9.89% 7.72%
------------------------------------
5-Year 5.04% 5.43%
------------------------------------
10-Year 6.51% 5.79%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Texas 11.2%
------------------------------------
Illinois 9.3%
------------------------------------
New York 7.0%
------------------------------------
Washington 6.4%
------------------------------------
California 6.3%
------------------------------------
Indiana 5.8%
------------------------------------
Michigan 4.6%
------------------------------------
Colorado 3.9%
------------------------------------
Florida 3.3%
------------------------------------
Utah 3.3%
------------------------------------
Nevada 2.8%
------------------------------------
South Carolina 2.7%
------------------------------------
District of Columbia 2.7%
------------------------------------
New Jersey 2.6%
------------------------------------
Louisiana 2.5%
------------------------------------
Rhode Island 2.3%
------------------------------------
Alabama 2.1%
------------------------------------
Puerto Rico 2.0%
------------------------------------
Other 19.2%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 17.5%
------------------------------------
Tax Obligation/Limited 16.0%
------------------------------------
Tax Obligation/General 14.7%
------------------------------------
Health Care 12.4%
------------------------------------
Utilities 11.2%
------------------------------------
Transportation 7.9%
------------------------------------
Consumer Staples 5.6%
------------------------------------
Water and Sewer 5.2%
------------------------------------
Other 9.5%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
12
Shareholder
MEETING REPORT
The Annual Shareholder Meeting was held on August 1, 2006, at The Northern Trust
Company, 50 South LaSalle Street, Chicago, Illinois 60675.
NPI NPM NPT
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 56,043,540 -- 36,750,845 -- 37,796,601 --
Withhold 515,753 -- 596,133 -- 328,942 --
------------------------------------------------------------------------------------------------------------------------------------
Total 56,559,293 -- 37,346,978 -- 38,125,543 --
====================================================================================================================================
Lawrence H. Brown
For 56,045,217 -- 36,752,989 -- 37,792,784 --
Withhold 514,076 -- 593,989 -- 332,759 --
------------------------------------------------------------------------------------------------------------------------------------
Total 56,559,293 -- 37,346,978 -- 38,125,543 --
====================================================================================================================================
Jack B. Evans
For 56,047,325 -- 36,751,545 -- 37,797,886 --
Withhold 511,968 -- 595,433 -- 327,657 --
------------------------------------------------------------------------------------------------------------------------------------
Total 56,559,293 -- 37,346,978 -- 38,125,543 --
====================================================================================================================================
William C. Hunter
For 56,050,455 -- 36,743,337 -- 37,797,517 --
Withhold 508,838 -- 603,641 -- 328,026 --
------------------------------------------------------------------------------------------------------------------------------------
Total 56,559,293 -- 37,346,978 -- 38,125,543 --
====================================================================================================================================
David J. Kundert
For 56,055,634 -- 36,750,845 -- 37,802,396 --
Withhold 503,659 -- 596,133 -- 323,147 --
------------------------------------------------------------------------------------------------------------------------------------
Total 56,559,293 -- 37,346,978 -- 38,125,543 --
====================================================================================================================================
William J. Schneider
For -- 17,804 -- 13,081 -- 12,441
Withhold -- 89 -- 17 -- 25
------------------------------------------------------------------------------------------------------------------------------------
Total -- 17,893 -- 13,098 -- 12,466
====================================================================================================================================
Timothy R. Schwertfeger
For -- 17,804 -- 13,081 -- 12,441
Withhold -- 89 -- 17 -- 25
------------------------------------------------------------------------------------------------------------------------------------
Total -- 17,893 -- 13,098 -- 12,466
====================================================================================================================================
Judith M. Stockdale
For 56,041,118 -- 36,751,353 -- 37,804,517 --
Withhold 518,175 -- 595,625 -- 321,026 --
------------------------------------------------------------------------------------------------------------------------------------
Total 56,559,293 -- 37,346,978 -- 38,125,543 --
====================================================================================================================================
Eugene S. Sunshine
For 56,048,390 -- 36,749,437 -- 37,796,397 --
Withhold 510,903 -- 597,541 -- 329,146 --
------------------------------------------------------------------------------------------------------------------------------------
Total 56,559,293 -- 37,346,978 -- 38,125,543 --
====================================================================================================================================
13
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS AND SHAREHOLDERS
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC.
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC.
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Premium Income Municipal Fund, Inc.,
Nuveen Premium Income Municipal Fund 2, Inc. and Nuveen Premium Income Municipal
Fund 4, Inc. (the "Funds") as of October 31, 2006, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2006, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Premium Income Municipal Fund, Inc., Nuveen Premium Income Municipal Fund
2, Inc. and Nuveen Premium Income Municipal Fund 4, Inc. at October 31, 2006,
the results of their operations for the year then ended, changes in their net
assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended in conformity
with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
December 14, 2006
14
Nuveen Premium Income Municipal Fund, Inc. (NPI)
Portfolio of
INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.1% (1.4% OF TOTAL INVESTMENTS)
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 4,343,504
Bonds, Series 2000, 6.125%, 12/01/16
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
6,000 5.250%, 11/15/20 11/15 at 100.00 Baa1 6,356,220
1,300 5.000%, 11/15/30 11/15 at 100.00 Baa1 1,333,722
2,190 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 2,256,948
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+ 5,303,981
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) 1,100,350
Alabama, Revenue Bonds, Baptist Medical Center, Series 2004C,
5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
19,560 Total Alabama 20,694,725
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.8% (1.9% OF TOTAL INVESTMENTS)
Anchorage, Alaska, General Obligation Refunding Bonds,
Series 2003A:
2,000 5.250%, 9/01/17 - FGIC Insured 9/13 at 100.00 AAA 2,178,640
2,035 5.250%, 9/01/18 - FGIC Insured 9/13 at 100.00 AAA 2,214,202
5,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 5,475,800
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
(Pre-refunded 6/01/10)
17,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 17,803,100
Settlement Asset-Backed Bonds, Series 2006A,
5.000%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
26,535 Total Alaska 27,671,742
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.1% (0.7% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
500 5.250%, 12/01/24 12/15 at 100.00 BBB 529,215
660 5.250%, 12/01/25 12/15 at 100.00 BBB 698,062
4,820 Pima County Industrial Development Authority, Arizona, Lease 1/07 at 100.50 AAA 4,838,075
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
4,130 University of Arizona, Certificates of Participation, Series 2002B, 6/12 at 100.00 AAA 4,403,902
5.125%, 6/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,110 Total Arizona 10,469,254
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
480 Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100.00 AAA 518,083
Series 2000, 5.650%, 12/01/25 (Pre-refunded 12/01/10) -
AMBAC Insured
5,245 University of Arkansas, Fayetteville, Athletic Facilities Revenue 9/09 at 100.00 Aaa 5,432,404
Bonds, Razorback Stadium, Series 1999, 5.050%, 9/15/20 -
AMBAC Insured
2,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 2,070,940
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
7,725 Total Arkansas 8,021,427
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 19.3% (12.6% OF TOTAL INVESTMENTS)
1,275 Acalanes Union High School District, Contra Costa County, 8/15 at 100.00 AAA 1,365,844
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - FGIC Insured
9,200 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 5,110,048
Subordinate Lien Revenue Bonds, Series 2004A,
0.000%, 10/01/20 - AMBAC Insured
15
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 4,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa $ 4,532,640
Revenue Bonds, Series 2002A, 6.000%, 5/01/15 (Pre-refunded
5/01/12)
2,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 2,127,860
Occidental College, Series 2005A, 5.000%, 10/01/30 -
MBIA Insured
7,200 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 7,461,936
University of Southern California, Series 2005, 4.750%, 10/01/28
1,500 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 1,577,115
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 3,818,252
7,000 5.000%, 3/01/33 3/13 at 100.00 A 7,196,420
5,425 California Health Facilities Financing Authority, Health Facility No Opt. Call A 5,736,395
Revenue Bonds, Catholic Healthcare West, Series 2004I,
4.950%, 7/01/26 (Mandatory put 7/01/14)
9,560 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 10,009,224
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
8,570 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 8,942,452
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call A 12,445,163
Department of Corrections, Series 1993E, 5.500%, 6/01/15
23,725 California State Public Works Board, Lease Revenue Refunding 12/06 at 100.00 Aa2 23,745,402
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/21
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
1,640 5.250%, 7/01/30 7/15 at 100.00 BBB+ 1,733,398
2,730 5.000%, 7/01/39 7/15 at 100.00 BBB+ 2,805,184
4,000 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA+ 4,431,480
5.250%, 7/01/14
California, General Obligation Bonds, Series 2004:
2,000 5.125%, 2/01/25 2/14 at 100.00 A+ 2,131,840
10,000 5.125%, 2/01/26 2/14 at 100.00 A+ 10,646,300
3,575 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 3,891,709
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
4,890 Clovis Unified School District, Fresno County, California, General No Opt. Call AAA 2,058,152
Obligation Bonds, Series 2006B, 0.000%, 8/01/26 -
MBIA Insured
5,000 Kern Community College District, California, General Obligation No Opt. Call AAA 2,281,800
Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured
5,470 Los Angeles Harbors Department, California, Revenue Bonds, 8/16 at 102.00 AAA 5,882,766
Series 2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative
Minimum Tax)
1,065 Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,415,790
Series 1983A, 10.750%, 2/01/16 (ETM)
19,425 Pomona, California, GNMA/FNMA Collateralized Securities No Opt. Call AAA 25,425,575
Program Single Family Mortgage Revenue Bonds, Series 1990A,
7.600%, 5/01/23 (ETM)
5,000 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 5,573,250
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
2,000 Redwood City School District, San Mateo County, California, 7/12 at 100.00 AAA 2,103,100
General Obligation Bonds, Series 2002, 5.000%, 7/15/27 -
FGIC Insured
3,700 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AAA 3,942,757
Revenue Bonds, Series 2003R, 5.000%, 8/15/22 -
MBIA Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
400 5.000%, 9/01/21 9/15 at 102.00 Baa3 416,628
445 5.000%, 9/01/23 9/15 at 102.00 Baa3 461,563
3,500 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 AAA 3,686,270
Series 2004B, 5.000%, 9/01/29 - MBIA Insured
16
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 4,700 San Diego Unified School District, San Diego County, 7/15 at 100.00 AAA $ 5,003,902
California, General Obligation Bonds, Series 2005G,
5.000%, 7/01/29 - FSA Insured
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
10,000 0.000%, 1/15/31 - MBIA Insured No Opt. Call AAA 3,405,600
24,025 0.000%, 1/15/36 - MBIA Insured No Opt. Call AAA 6,401,702
------------------------------------------------------------------------------------------------------------------------------------
208,115 Total California 187,767,517
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.0% (3.3% OF TOTAL INVESTMENTS)
2,500 Centennial Water and Sanitation District, Colorado, Water 12/14 at 100.00 AAA 2,686,325
and Sewerage Revenue Bonds, Series 2004, 5.000%, 12/01/21 -
FGIC Insured
690 Colorado Educational and Cultural Facilities Authority, Charter 9/15 at 100.00 AAA 749,989
School Revenue Bonds, Bromley School, Series 2005,
5.125%, 9/15/20 - XLCA Insured
2,125 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 2,200,204
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 1,028,480
Medical Center, Series 2004, 5.000%, 9/01/25
800 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 827,496
Valley Health Care, Series 2005F, 5.000%, 3/01/25
290 Colorado Housing Finance Authority, Single Family Program 5/07 at 105.00 Aa2 294,460
Senior Bonds, Series 1997B-2, 7.000%, 5/01/26 (Alternative
Minimum Tax)
230 Colorado Housing Finance Authority, Single Family Program 11/07 at 105.00 Aa2 230,334
Senior Bonds, Series 1997C-2, 6.875%, 11/01/28 (Alternative
Minimum Tax)
660 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 AA 672,494
Senior Bonds, Series 2000B-2, 7.250%, 10/01/31 (Alternative
Minimum Tax)
9,450 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 10,661,584
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
8,315 Denver City and County, Colorado, Special Facilities Airport 4/07 at 100.00 N/R 8,571,102
Revenue Bonds, United Air Lines Corporation, Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax) (5)
19,810 Denver, Colorado, Excise Tax Revenue Bonds, Convention 3/11 at 100.00 AAA 21,352,008
Center, Series 2001A, 5.500%, 9/01/18 (Pre-refunded 3/01/11) -
FSA Insured
68 El Paso County, Colorado, FNMA Mortgage-Backed Single No Opt. Call Aaa 70,596
Family Revenue Refunding Bonds, Series 1992A-2,
8.750%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
45,938 Total Colorado 49,345,072
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,930 Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,213,266
5.500%, 12/15/16
2,310 Greater New Haven Water Pollution Control Authority, 11/15 at 100.00 AAA 2,464,770
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A, 5.000%, 11/15/30 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,240 Total Connecticut 4,678,036
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.4% (2.9% OF TOTAL INVESTMENTS)
8,225 District of Columbia Housing Finance Agency, GNMA 12/06 at 101.00 AAA 8,408,829
Collateralized Single Family Mortgage Revenue Bonds,
Series 1988E-4, 6.375%, 6/01/26 (Alternative Minimum Tax)
9,505 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 11,487,553
6.000%, 6/01/20 - MBIA Insured
10,350 District of Columbia, Revenue Bonds, Association of American 8/07 at 102.00 AAA 10,674,162
Medical Colleges, Series 1997A, 5.375%, 2/15/27 -
AMBAC Insured
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
14,105 0.000%, 4/01/24 - MBIA Insured 4/11 at 47.66 AAA 5,541,572
7,625 0.000%, 4/01/25 - MBIA Insured 4/11 at 44.82 AAA 2,817,666
16,665 0.000%, 4/01/32 - MBIA Insured 4/11 at 29.23 AAA 4,033,763
------------------------------------------------------------------------------------------------------------------------------------
66,475 Total District of Columbia 42,963,545
------------------------------------------------------------------------------------------------------------------------------------
17
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.0% (1.9% OF TOTAL INVESTMENTS)
$ 4,225 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A $ 4,430,208
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
8,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 AAA 8,678,800
Tampa International Airport, Series 2003A, 5.375%, 10/01/16 -
MBIA Insured (Alternative Minimum Tax)
5,400 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 5,945,022
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A+ (4) 5,568,750
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
1,785 Tallahassee, Florida, Energy System Revenue Bonds, 10/15 at 100.00 AAA 1,895,010
Series 2005, 5.000%, 10/01/28 - MBIA Insured
2,375 Volusia County School Board, Florida, Certificates of Participation, 8/15 at 100.00 Aaa 2,536,999
Series 2005B, 5.000%, 8/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,785 Total Florida 29,054,789
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.8% (1.2% OF TOTAL INVESTMENTS)
2,625 Fulton County Development Authority, Georgia, Revenue Bonds, 5/14 at 100.00 AAA 2,860,646
Georgia Tech Molecular Science Building, Series 2004,
5.250%, 5/01/24 - MBIA Insured
6,025 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA 6,542,668
Certificates, Series 2003, 5.250%, 1/01/20 - FSA Insured
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call AAA 5,783,380
Tax Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20 -
AMBAC Insured
2,715 Savannah Housing Authority, Georgia, GNMA Collateralized 5/08 at 103.00 Aaa 2,847,465
Mortgage Revenue Refunding Bonds, Plantation Oak Project,
Series 2000, 6.350%, 11/20/39
------------------------------------------------------------------------------------------------------------------------------------
16,210 Total Georgia 18,034,159
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.1% (0.7% OF TOTAL INVESTMENTS)
10,000 Hawaii, General Obligation Bonds, Series 2003DA, 9/13 at 100.00 AAA 10,880,600
5.250%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.6% (0.5% OF TOTAL INVESTMENTS)
5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, 9/10 at 100.00 Aaa 5,264,700
Series 2000, 5.500%, 9/01/25 - FGIC Insured (Alternative
Minimum Tax)
685 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 720,134
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
5,685 Total Idaho 5,984,834
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.0% (5.9% OF TOTAL INVESTMENTS)
9,220 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 9,539,289
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
8,890 0.000%, 12/01/16 - FGIC Insured No Opt. Call AAA 5,928,297
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AAA 5,507,900
9,900 0.000%, 12/01/24 - FGIC Insured No Opt. Call AAA 4,498,461
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1999A:
15,000 0.000%, 12/01/21 - FGIC Insured No Opt. Call AAA 7,872,600
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AAA 4,762,300
90 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 3/07 at 104.00 Aaa 92,394
Mortgage Revenue Bonds, Series 1996A, 7.000%, 9/01/27
(Alternative Minimum Tax)
280 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 9/07 at 105.00 Aaa 287,762
Mortgage Revenue Bonds, Series 1997B, 6.950%, 9/01/28
(Alternative Minimum Tax)
8,740 Illinois Development Finance Authority, Pollution Control 2/07 at 100.00 AAA 8,864,458
Revenue Refunding Bonds, Illinois Power Company,
Series 1994A, 5.700%, 2/01/24 - MBIA Insured
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
$ 1,050 5.250%, 11/15/22 5/14 at 100.00 A $ 1,111,898
3,000 5.250%, 11/15/23 5/14 at 100.00 A 3,168,930
985 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 1,013,969
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 1,044,290
Medical Center, Series 2002, 5.500%, 5/15/32
9,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman 8/07 at 101.00 AAA 10,014,731
Health Systems, Series 1997, 5.250%, 8/01/27 -
AMBAC Insured
10,040 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 7,148,279
Bonds, McCormick Place Expansion Project, Series 1992A,
0.000%, 6/15/15 - FGIC Insured
9,200 Metropolitan Pier and Exposition Authority, Illinois, Revenue 12/09 at 101.00 AAA 9,757,336
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 4,034,640
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+ 3,322,830
Facilities Revenue Bonds, Morris Hospital, Series 2001,
6.625%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
113,215 Total Illinois 87,970,364
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,005 Hamilton County Public Building Corporation, Indiana, First 8/14 at 100.00 AAA 2,127,064
Mortgage Bonds, Series 2004, 5.000%, 8/01/22 - FSA Insured
7,965 Wawasee Community School Corporation, Indiana, First 1/12 at 101.00 AA (4) 8,853,814
Mortgage Bonds, New Elementary and Remodeling Building
Corporation, Series 2000, 5.750%, 1/15/20 (Pre-refunded 1/15/12)
------------------------------------------------------------------------------------------------------------------------------------
9,970 Total Indiana 10,980,878
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.1% (1.4% OF TOTAL INVESTMENTS)
Des Moines, Iowa, General Obligation Bonds, Series 2000D:
1,215 5.750%, 6/01/17 - MBIA Insured 6/08 at 100.00 AAA 1,254,342
1,410 5.800%, 6/01/18 - MBIA Insured 6/08 at 100.00 AAA 1,456,290
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,140,300
Medical Center, Series 2000, 6.250%, 7/01/25
4,125 Iowa Finance Authority, Industrial Remarketed Revenue No Opt. Call AAA 5,117,681
Refunding Bonds, Urbandale Hotel Corporation, Series 1989A,
8.500%, 8/01/16 (Alternative Minimum Tax) (ETM)
10,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 10,541,200
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
18,750 Total Iowa 20,509,813
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
6,000 Kansas Department of Transportation, Highway Revenue 3/14 at 100.00 AAA 6,411,180
Bonds, Series 2004A, 5.000%, 3/01/21
1,560 Sedgwick and Shawnee Counties, Kansas, GNMA 6/08 at 105.00 Aaa 1,585,974
Mortgage-Backed Securities Program Single Family Revenue
Bonds, Series 1998A-1, 6.500%, 12/01/22 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,560 Total Kansas 7,997,154
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,770 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 4,027,943
Revenue Bonds, Revitalization Project, Series 2005B,
5.000%, 7/01/24 - AMBAC Insured
Marshall County School District Finance Corporation, Kentucky,
School Building Revenue Bonds, Series 2004:
1,210 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 Aaa 1,298,342
1,270 5.000%, 6/01/20 - AMBAC Insured 6/14 at 100.00 Aaa 1,360,475
1,335 5.000%, 6/01/21 - AMBAC Insured 6/14 at 100.00 Aaa 1,425,593
------------------------------------------------------------------------------------------------------------------------------------
7,585 Total Kentucky 8,112,353
------------------------------------------------------------------------------------------------------------------------------------
19
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.6% (1.7% OF TOTAL INVESTMENTS)
$ 2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA $ 3,115,785
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/19 - AMBAC Insured
300 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa 309,189
Revenue Bonds, Series 2000A, 7.450%, 12/01/31 (Alternative
Minimum Tax)
6,680 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 8,349,332
Revenue Bonds, Comm-Care Corporation Project, Series 1994,
11.000%, 2/01/14
2,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 2,118,920
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
2,380 Louisiana State, Gas Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 2,361,436
4.500%, 5/01/41 (WI/DD, Settling 11/02/06) - FGIC Insured
2,575 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 2,514,797
Residuals 660-1, 5.850%, 5/01/41 (WI/DD, Settling
11/02/06) - FGIC Insured (IF)
310 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 337,602
Residuals 661, 6.597%, 5/01/39 (WI/DD, Settling 11/02/06) -
FSA Insured (IF)
Louisiana, Gasoline and Fuels Tax Revenue Bonds, Series 2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 1,274,640
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 2,344,213
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 2,651,825
------------------------------------------------------------------------------------------------------------------------------------
23,070 Total Louisiana 25,377,739
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.0% (0.7% OF TOTAL INVESTMENTS)
2,200 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 2,416,942
Revenue Bonds, Series 2006A, 5.250%, 9/01/27 -
XLCA Insured
3,560 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 3,661,282
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 (WI/DD, Settling 11/16/06) - MBIA Insured
3,600 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 3,757,860
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,360 Total Maryland 9,836,084
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.9% (2.5% OF TOTAL INVESTMENTS)
2,100 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 2,206,134
Bonds, Series 2000A, 5.250%, 7/01/30
7,900 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 8,358,911
Bonds, Series 2000A, 5.250%, 7/01/30 (Pre-refunded 7/01/10)
4,770 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 4,872,317
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
8,505 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 8,837,035
Mortgage Revenue Bonds, Series 2001A, 5.850%, 7/01/35 -
AMBAC Insured (Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,938,085
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax)
5,960 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 6,608,150
Bonds, Series 2005A, 5.250%, 8/01/25 - MBIA Insured
3,820 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 4,190,807
Bonds, Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
35,880 Total Massachusetts 38,011,439
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.9% (2.5% OF TOTAL INVESTMENTS)
Detroit, Michigan, General Obligation Bonds, Series 2003A:
3,565 5.250%, 4/01/22 - XLCA Insured 4/13 at 100.00 AAA 3,815,905
1,275 5.250%, 4/01/23 - XLCA Insured 4/13 at 100.00 AAA 1,361,024
3,930 Hudsonville Public Schools, Ottawa and Allegan Counties, 5/08 at 100.00 AAA 4,006,321
Michigan, Unlimited Tax General Obligation School Building
and Site Refunding Bonds, Series 1997, 5.150%, 5/01/22 -
FGIC Insured
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 3,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB $ 3,319,800
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
6,600 Michigan Housing Development Authority, Limited Obligation 7/07 at 102.00 AAA 6,758,862
Multifamily Mortgage Revenue Refunding Bonds, Forest Hills
Regency Square Project, Series 1999A, 5.750%, 7/01/29
10,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 10,651,800
Facilities Program, Series 2003II, 5.000%, 10/15/23 -
MBIA Insured
850 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 BBB- 901,340
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
6,390 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/12 at 100.00 AAA 6,922,543
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 -
FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
35,610 Total Michigan 37,737,595
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 5.3% (3.5% OF TOTAL INVESTMENTS)
13,650 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 13,962,858
Allete Inc., Series 2004, 4.950%, 7/01/22
2,000 Duluth Economic Development Authority, Minnesota, 2/14 at 100.00 A- 2,135,760
Healthcare Facilities Revenue Bonds, Benedictine Health
System - St. Mary's Duluth Clinic, Series 2004, 5.375%, 2/15/22
Eden Prairie, Minnesota, GNMA Collateralized Multifamily
Housing Revenue Bonds, Rolling Hills Project, Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105.00 Aa2 1,090,410
2,000 6.200%, 2/20/43 8/11 at 105.00 Aa2 2,173,080
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101.00 AAA 3,065,460
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/22 - AMBAC Insured
90 Minnesota Agricultural and Economic Development Board, 11/07 at 102.00 AAA 93,567
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 1997A, 5.750%, 11/15/26 -
MBIA Insured
1,335 Minnesota Higher Education Facilities Authority, Revenue 4/16 at 100.00 A2 1,423,203
Bonds, University of St. Thomas, Series 2006-6I, 5.000%, 4/01/23
700 Minnesota Higher Education Facilities Authority, St. John's 10/15 at 100.00 A2 747,978
University Revenue Bonds, Series 2005-6G, 5.000%, 10/01/22
1,500 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,604,565
Series 2004A, 5.250%, 10/01/24
1,665 Rochester, Minnesota, Health Care Facilities Revenue Bonds, 5/16 at 100.00 AA 1,756,042
Series 2006, 5.000%, 11/15/36
1,545 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,727,078
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
17,945 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 103.00 AAA 22,303,839
Sales Tax Revenue Refunding Bonds, Civic Center Project,
Series 1996, 7.100%, 11/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
46,430 Total Minnesota 52,083,840
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 4,383,329
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
3,045 Mississippi State University Educational Building Corporation, 8/15 at 100.00 AAA 3,220,514
Revenue Bonds, Residence Hall and Campus Improvement
Project, Series 2005, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,320 Total Mississippi 7,603,843
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.4% (1.5% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 2,095,560
Revenue Bonds, Lutheran Senior Services - Heisinger Project,
Series 2004, 5.250%, 2/01/24
500 Hannibal Industrial Development Authority, Missouri, 3/16 at 100.00 BBB+ 521,950
Health Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
1,565 6.000%, 6/01/20 No Opt. Call BBB+ 1,825,228
1,260 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,294,007
21
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
$ 1,500 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA $ 1,599,360
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21 -
AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
1,500 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 1,620,045
4,150 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 4,472,953
560 Missouri Housing Development Commission, GNMA/FNMA 3/07 at 105.00 AAA 569,486
Single Family Mortgage Revenue Bonds, Homeownership Loan
Program, Series 1996C, 7.450%, 9/01/27 (Alternative
Minimum Tax)
3,085 Missouri Housing Development Commission, Single Family 3/09 at 103.00 AAA 3,105,731
Mortgage Revenue Bonds, Homeownership Loan Program,
Series 1999B-1, 6.700%, 9/01/30 (Alternative Minimum Tax)
5,810 St. Charles County Francis Howell School District, Missouri, No Opt. Call AAA 6,003,822
General Obligation Refunding Bonds, Series 1994A,
7.800%, 3/01/08 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
21,930 Total Missouri 23,108,142
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,420 Omaha Public Power District, Nebraska, Electric System Revenue 2/17 at 100.00 AAA 2,818,138
Bonds, Nebraska City 2, Series 2006A, Residuals 1508-2,
7.530%, 2/01/49 (WI/DD, Settling 11/02/06) - AMBAC
Insured (IF)
4,410 University of Nebraska, Lincoln, Student Fees and Facilities 11/13 at 100.00 Aa2 4,597,072
Revenue Bonds, Series 2003B, 5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
6,830 Total Nebraska 7,415,210
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.3% (2.8% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,417,584
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) -
MBIA Insured
15,000 Clark County, Nevada, General Obligation Bank Bonds, 6/11 at 100.00 AAA 16,072,650
Southern Nevada Water Authority Loan, Series 2001,
5.250%, 6/01/26 (Pre-refunded 6/01/11) - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call AAA 2,385,538
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 12,507,240
------------------------------------------------------------------------------------------------------------------------------------
43,835 Total Nevada 42,383,012
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.0% (0.0% OF TOTAL INVESTMENTS)
480 New Hampshire Housing Finance Authority, Single Family 1/07 at 102.00 Aa2 486,898
Mortgage Acquisition Revenue Bonds, Series 1996B,
6.400%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.9% (5.9% OF TOTAL INVESTMENTS)
10,150 Delaware River Port Authority, Pennsylvania and New Jersey, 1/10 at 100.00 AAA 10,740,730
Revenue Bonds, Port District Project, Series 1999B,
5.625%, 1/01/26 - FSA Insured
8,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 8,712,080
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25
(Pre-refunded 10/01/10) - FGIC Insured
2,380 Essex County, New Jersey, General Obligation Bonds, 5/15 at 100.00 Aaa 2,545,648
Series 2005A, 5.000%, 5/01/25 - MBIA Insured
500 Middlesex County Improvement Authority, New Jersey, Senior No Opt. Call Baa3 510,555
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- 3,979,199
2,000 5.250%, 9/01/26 9/15 at 100.00 AA- 2,169,660
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 1,607,160
Princeton University, Series 2005A, 5.000%, 7/01/30
5,315 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 5,445,218
Home Buyer Program Revenue Bonds, Series 1997U,
5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
$ 5,000 5.500%, 6/15/19 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA $ 5,554,150
5,410 5.500%, 6/15/20 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 6,009,590
9,250 5.500%, 6/15/23 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 10,275,178
3,850 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,354,119
System Bonds, Series 2006A, 5.250%, 12/15/20
New Jersey Turnpike Authority, Revenue Bonds, Series 2000A:
3,915 6.000%, 1/01/14 - MBIA Insured (ETM) No Opt. Call AAA 4,494,342
7,585 6.000%, 1/01/14 - MBIA Insured (ETM) No Opt. Call AAA 8,707,428
2,500 New Jersey Turnpike Authority, Revenue Bonds, 7/13 at 100.00 AAA 2,674,325
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
9,130 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 9,711,216
5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
80,140 Total New Jersey 87,490,598
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
765 New Mexico Mortgage Finance Authority, Single Family 3/10 at 102.50 AAA 769,674
Mortgage Program Bonds, Series 2000D-2, 6.850%, 9/01/31
(Alternative Minimum Tax)
5,585 Santa Fe County, New Mexico, Correctional System Gross No Opt. Call AAA 6,800,519
Receipts Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,350 Total New Mexico 7,570,193
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 19.5% (12.7% OF TOTAL INVESTMENTS)
Dormitory Authority of the State of New York, Revenue Bonds,
University of Rochester, Series 2004A:
1,025 5.250%, 7/01/20 7/14 at 100.00 A+ 1,111,992
1,000 5.250%, 7/01/22 7/14 at 100.00 A+ 1,081,430
500 5.250%, 7/01/24 7/14 at 100.00 A+ 538,665
1,995 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 2,164,316
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 2,491,935
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
6,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call Aa3 6,987,540
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
13,580 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 A- (4) 14,069,966
Revenue Bonds, Series 1998A, 5.250%, 12/01/26
(Pre-refunded 6/01/08)
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
7,000 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 7,526,470
5,000 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 AAA 5,363,750
4,500 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 4,797,990
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 -
AMBAC Insured
7,400 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 7,821,356
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
3,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 3,235,320
Revenue Refunding Bonds, Series 2002A, 5.125%, 11/15/21 -
FGIC Insured
New York City Industrial Development Agency, New York, Civic
Facility Revenue Bonds, United Jewish Appeal - Federation of
Jewish Philanthropies of New York Inc., Series 2004A:
2,185 5.250%, 7/01/20 7/14 at 100.00 Aa2 2,378,722
2,050 5.250%, 7/01/21 7/14 at 100.00 Aa2 2,230,339
2,420 5.250%, 7/01/22 4/14 at 100.00 Aa2 2,633,734
1,370 5.250%, 7/01/24 4/14 at 100.00 Aa2 1,486,272
4,250 New York City Municipal Water Finance Authority, New York, 6/16 at 100.00 AA+ 4,525,315
Water and Sewerage System Revenue Bonds, Fiscal
Series 2006D, 5.000%, 6/15/29
4,825 New York City Sales Tax Asset Receivable Corporation, 10/14 at 100.00 AAA 5,152,618
New York, Dedicated Revenue Bonds, Local Government
Assistance Corporation, Series 2004A, 5.000%, 10/15/24 -
MBIA Insured
12,500 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 AA- 13,444,250
Series 2003D, 5.250%, 10/15/22
23
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 725 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AA- $ 788,467
Series 2003J, 5.500%, 6/01/23
4,275 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 A+ (4) 4,754,612
Series 2003J, 5.500%, 6/01/23 (Pre-refunded 6/01/13)
6,000 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AA- 6,495,240
Series 2004C, 5.250%, 8/15/20
7,960 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA- 8,421,760
Series 2005M, 5.000%, 4/01/24
650 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 699,205
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 1,497,056
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
(Pre-refunded 6/01/10)
New York Dorm Authority, State Personal Income Tax Revenue
Bonds, Education, Series 2006C:
3,160 5.000%, 12/15/31 (WI/DD, Settling 11/16/06) 12/16 at 100.00 AAA 3,392,197
6,320 5.000%, 12/15/35 (WI/DD, Settling 11/16/06) 12/16 at 100.00 AAA 6,762,716
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
3,770 5.000%, 1/01/25 - FSA Insured 7/15 at 100.00 AAA 4,025,116
5,980 5.000%, 1/01/26 - FSA Insured 7/15 at 100.00 AAA 6,375,637
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
5,000 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 5,393,150
2,000 5.000%, 4/01/22 - AMBAC Insured 10/15 at 100.00 AAA 2,151,020
7,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 7,834,010
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
14,000 New York State Urban Development Corporation, Service 1/11 at 100.00 AA- 14,955,640
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
6,460 New York State Urban Development Corporation, State 3/14 at 100.00 AAA 6,832,677
Personal Income Tax Revenue Bonds, Series 2004A-1,
5.000%, 3/15/26 - FGIC Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 2,137,940
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/27 - XLCA Insured
5,000 Port Authority of New York and New Jersey, Consolidated 3/14 at 101.00 AAA 5,302,600
Revenue Bonds, One Hundred Thirty-Fifth Series 2004,
5.000%, 9/15/28 - XLCA Insured
2,720 Rensselaer County Industrial Development Agency, New York, 3/16 at 100.00 A 2,887,525
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
9,515 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 Aa2 10,086,852
Purpose Revenue Refunding Bonds, Series 2002B,
5.000%, 11/15/22
------------------------------------------------------------------------------------------------------------------------------------
177,220 Total New York 189,835,400
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
5,785 5.250%, 6/01/22 6/13 at 100.00 AA+ 6,187,636
3,475 5.250%, 6/01/23 6/13 at 100.00 AA+ 3,710,640
1,000 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 1,062,370
Financing Authority, North Carolina, National Gypsum
Company Project Exempt Facilities Revenue Bonds,
Series 2005, 5.750%, 8/01/35 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,260 Total North Carolina 10,960,646
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.1% (0.7% OF TOTAL INVESTMENTS)
9,650 Dickinson, North Dakota, Health Care Facilities Revenue 2/10 at 102.00 AA 10,907,395
Bonds, BHS Long Term Care Inc., Series 1990,
7.625%, 2/15/20 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.3% (1.5% OF TOTAL INVESTMENTS)
2,750 Cincinnati City School District, Hamilton County, Ohio, No Opt. Call AAA 3,167,175
General Obligation Bonds, Series 2006, 5.250%, 12/01/22 -
FGIC Insured
4,265 Franklin County, Ohio, Hospital Revenue and Improvement 5/11 at 101.00 Aaa 4,636,140
Bonds, Children's Hospital Project, Series 2001,
5.500%, 5/01/28 (Pre-refunded 5/01/11) - AMBAC Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 1,785 Marysville, Ohio, Wastewater Treatment System First 12/15 at 100.00 AAA $ 1,961,858
Mortgage Revenue Bonds, Series 2005, 5.000%, 12/01/24
(Pre-refunded 12/01/15) - MBIA Insured
2,720 Ohio State University, General Receipts Bonds, 6/13 at 100.00 AA 2,951,853
Series 2003B, 5.250%, 6/01/20
665 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 722,044
Bonds, MedCentral Health System Obligated Group,
Series 2000A, 6.125%, 11/15/16
1,335 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 N/R (4) 1,470,342
Bonds, MedCentral Health System Obligated Group,
Series 2000A, 6.125%, 11/15/16 (Pre-refunded 11/15/10)
7,000 Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100.00 A3 7,637,630
and Improvement Bonds, Trinity Health System, Series 2000,
6.500%, 10/01/30
------------------------------------------------------------------------------------------------------------------------------------
20,520 Total Ohio 22,547,042
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.6% (0.5% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital
Revenue Bonds, Series 2005:
500 5.375%, 9/01/29 9/16 at 100.00 BBB- 530,340
1,050 5.375%, 9/01/36 9/16 at 100.00 BBB- 1,107,341
3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AAA 3,739,470
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,050 Total Oklahoma 5,377,151
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.0% (0.6% OF TOTAL INVESTMENTS)
Oregon Department of Administrative Services, Certificates of
Participation, Series 2005A:
2,060 5.000%, 5/01/24 - FSA Insured 5/15 at 100.00 AAA 2,189,656
4,220 5.000%, 5/01/30 - FSA Insured 5/15 at 100.00 AAA 4,457,713
2,500 Oregon State Department of Transportation, Highway User 11/14 at 100.00 AAA 2,685,500
Tax Revenue Bonds, Series 2004A, 5.000%, 11/15/21
------------------------------------------------------------------------------------------------------------------------------------
8,780 Total Oregon 9,332,869
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.5% (2.9% OF TOTAL INVESTMENTS)
2,440 Chester County, Pennsylvania, General Obligation Bonds, 5/15 at 100.00 Aaa 2,606,798
Series 2005, 5.000%, 11/15/24
Lancaster Higher Education Authority, Pennsylvania, Revenue
Bonds, Franklin and Marshall College, Series 2003C:
1,340 5.250%, 4/15/15 4/13 at 100.00 A+ 1,451,006
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,113,056
1,000 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 1,064,930
Series 2005, 5.000%, 9/01/29
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,818,121
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds,
General Ordinance, Fifth Series 2004A-1:
4,505 5.000%, 9/01/21 - FSA Insured 9/14 at 100.00 AAA 4,788,004
4,735 5.000%, 9/01/22 - FSA Insured 9/14 at 100.00 AAA 5,022,699
8,405 Philadelphia Redevelopment Authority, Pennsylvania, 4/08 at 103.00 N/R 8,549,230
Multifamily Housing Mortgage Revenue Bonds, Cricket Court
Apartments, Series 1998A, 6.200%, 4/01/25 (Alternative
Minimum Tax)
14,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 15,129,800
Revenue Bonds, Philadelphia School District, Series 2003,
5.250%, 6/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
41,010 Total Pennsylvania 43,543,644
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,591,380
Series 2005RR, 5.000%, 7/01/30 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 6.6% (4.4% OF TOTAL INVESTMENTS)
8,610 Dorchester County School District 2, South Carolina, 12/14 at 100.00 A 9,142,098
Installment Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/24
25
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds,
Series 2003:
$ 5,090 5.250%, 12/01/18 12/13 at 100.00 AA- $ 5,497,149
3,595 5.250%, 12/01/20 12/13 at 100.00 AA- 3,868,544
1,865 5.250%, 12/01/21 12/13 at 100.00 AA- 2,003,346
Lexington County Health Service District, South Carolina,
Hospital Revenue Bonds, Series 2004:
1,805 6.000%, 5/01/19 5/14 at 100.00 A 2,010,590
2,400 5.500%, 5/01/24 5/14 at 100.00 A 2,571,840
1,655 South Carolina JOBS Economic Development Authority, 8/13 at 100.00 BBB+ 1,870,233
Hospital Refunding and Improvement Revenue Bonds,
Palmetto Health Alliance, Series 2003C, 6.375%, 8/01/34
13,345 South Carolina JOBS Economic Development Authority, 8/13 at 100.00 BBB+ (4) 15,469,524
Hospital Refunding and Improvement Revenue Bonds,
Palmetto Health Alliance, Series 2003C, 6.375%, 8/01/34
(Pre-refunded 8/01/13)
Tobacco Settlement Revenue Management Authority,
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B:
8,915 6.000%, 5/15/22 5/11 at 101.00 BBB 9,526,926
7,500 6.375%, 5/15/28 5/11 at 101.00 BBB 8,141,925
4,150 6.375%, 5/15/30 No Opt. Call BBB 4,851,350
------------------------------------------------------------------------------------------------------------------------------------
58,930 Total South Carolina 64,953,525
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1% (0.7% OF TOTAL INVESTMENTS)
6,400 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 6,870,848
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
410 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 431,197
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36 (WI/DD, Settling 11/02/06)
3,335 Tennessee Housing Development Agency, Homeownership 7/13 at 100.00 AA 3,407,003
Program Bonds, Series 2004, 5.000%, 7/01/34 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,145 Total Tennessee 10,709,048
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.5% (8.2% OF TOTAL INVESTMENTS)
10,205 Alliance Airport Authority, Texas, Special Facilities Revenue 12/06 at 100.00 CCC+ 10,409,100
Bonds, American Airlines Inc., Series 1990, 7.500%, 12/01/29
(Alternative Minimum Tax)
3,273 Austin Housing Finance Corporation, Texas, GNMA 12/10 at 105.00 Aaa 3,616,960
Collateralized Multifamily Housing Revenue Bonds, Fairway
Village Project, Series 2000A, 7.375%, 6/20/35 (Alternative
Minimum Tax)
2,150 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 10/13 at 101.00 Baa2 2,423,867
TXU Energy Company LLC Project, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
175 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 187,401
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 6.000%, 2/15/16
675 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA 9/10 at 105.00 AAA 678,220
Single Family Mortgage Revenue Bonds, Series 2000A,
6.700%, 9/01/33 (Alternative Minimum Tax)
4,295 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 4,569,193
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
1,435 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 1,506,606
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
19,125 Harris County Hospital District, Texas, Revenue Refunding 8/10 at 100.00 AAA 20,497,791
Bonds, Series 2000, 6.000%, 2/15/15 - MBIA Insured
4,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 4,242,920
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
MBIA Insured
5,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 5,433,750
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
6,000 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,433,380
Series 2001B, 5.500%, 3/01/15 - FSA Insured
9,250 Houston, Texas, Subordinate Lien Airport System Revenue Bonds, 7/10 at 100.00 AAA 9,799,265
Series 2000B, 5.500%, 7/01/30 - FSA Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series
2005:
$ 2,000 5.250%, 8/15/21 No Opt. Call BBB- $ 2,107,280
2,500 5.125%, 8/15/26 No Opt. Call BBB- 2,586,850
1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 1,621,246
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/23 - AMBAC Insured
3,400 Lower Colorado River Authority, Texas, Revenue Refunding 5/13 at 100.00 AAA 3,666,696
and Improvement Bonds, Series 2003, 5.250%, 5/15/24 -
AMBAC Insured
2,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Baa2 2,074,940
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
10,810 Tarrant County Health Facilities Development Corporation, 12/10 at 105.00 Aaa 12,197,788
Texas, GNMA Collateralized Mortgage Loan Revenue Bonds,
Eastview Nursing Home, Ebony Lake Nursing Center, Ft.
Stockton Nursing Center, Lynnhaven Nursing Center and
Mission Oaks Manor, Series 2000A-1, 7.625%, 12/20/32
4,000 Tarrant County Health Facilities Development Corporation, 11/10 at 101.00 A+ (4) 4,484,800
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 3/13 at 100.00 AAA 5,405,900
Refunding and Improvement Bonds, Series 1999,
5.250%, 3/01/17 - FSA Insured
4,000 Texas A&M University, Financing System Revenue Bonds, 5/09 at 100.00 AAA 4,193,040
Series 1999, 5.550%, 5/15/29 (Pre-refunded 5/15/09) -
MBIA Insured
25,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central No Opt. Call AAA 11,546,500
Texas Turnpike System, Series 2002A, 0.000%, 8/15/24 -
AMBAC Insured
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,564,375
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
128,298 Total Texas 122,247,868
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,190 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 1,215,050
Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.4% OF TOTAL INVESTMENTS)
4,800 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100.00 N/R 5,168,304
Residential Rental Housing Revenue Bonds, Mayfair
Apartments I and II, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.5% (4.3% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,761,700
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
Public Utility District 1, Chelan County, Washington, Revenue
Bonds, Chelan Hydro Consolidated System, Series 1997A:
11,820 5.650%, 7/01/32 (Mandatory put 7/01/24) 7/07 at 102.00 AA 12,138,667
(Alternative Minimum Tax)
8,000 5.650%, 7/01/32 (Mandatory put 7/01/27) 7/07 at 102.00 AA 8,214,560
(Alternative Minimum Tax)
3,125 Skagit County Public Hospital District 1, Washington, General 6/14 at 100.00 Aaa 3,448,688
Obligation Bonds, Series 2004A, 5.375%, 12/01/20 -
MBIA Insured
5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 5,320,200
Bonds, Series 2001, 5.250%, 12/01/26 - MBIA Insured
9,350 Washington Public Power Supply System, Revenue Refunding 7/07 at 102.00 Aaa 9,627,789
Bonds, Nuclear Project 3, Series 1997A, 5.250%, 7/01/15
7,775 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 8,079,702
Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
4,750 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,900,195
Bonds, Swedish Health Services, Series 1998,
5.125%, 11/15/22 - AMBAC Insured
27
Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 6,480 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AAA $ 3,019,745
Bonds, Series 2002-03C, 0.000%, 6/01/24 - MBIA Insured
11,000 Washington, General Obligation Bonds, Series 2000S-5, No Opt. Call AAA 6,306,630
0.000%, 1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
69,800 Total Washington 63,817,876
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.9% (1.9% OF TOTAL INVESTMENTS)
Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue
Bonds, Public Schools, Series 2003A:
1,000 5.125%, 8/01/22 - AMBAC Insured 8/13 at 100.00 AAA 1,063,300
1,345 5.125%, 8/01/23 - AMBAC Insured 8/13 at 100.00 AAA 1,426,870
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,069,160
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+ 10,087,110
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 2,365,704
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 805,871
Bonds, Divine Savior Healthcare, Series 2006, 5.000%, 5/01/32
6,025 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 A- 6,608,702
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 6.000%, 9/01/22
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 2,099,300
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.250%, 8/15/25
Wisconsin, General Obligation Bonds, Series 2004-3:
1,720 5.250%, 5/01/19 - FGIC Insured 5/14 at 100.00 AAA 1,877,913
1,265 5.250%, 5/01/21 - FGIC Insured 5/14 at 100.00 AAA 1,377,699
------------------------------------------------------------------------------------------------------------------------------------
26,320 Total Wisconsin 28,781,629
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,900 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB- 4,148,001
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,499,066 Total Long-Term Investments (cost $1,401,407,079) - 151.9% 1,485,377,683
=============-----------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7% (0.5% OF TOTAL INVESTMENTS)
$ 2,300 Irvine, California, Assessment District 93-14 Limited Obligation A-1+ $ 2,300,000
Improvement Bonds, Variable Rate Demand Obligations,
Series 2000, 3.500%, 9/02/25 (6)
700 Metropolitan Transportation Authority, New York, Transportation A-1+ 700,000
Revenue Bonds, Variable Rate Demand Obligations,
Series 2005G-2, 3.620%, 11/01/26 (6)
2,200 New York City, New York, General Obligation Bonds, Variable A-1+ 2,200,000
Rate Demand Obligations, Fiscal Series 1994H2-H6,
3.610%, 8/01/13 - MBIA Insured (6)
1,200 New York City, New York, General Obligation Bonds, Variable A-1+ 1,200,000
Rate Demand Obligations, Fiscal Series 1995B2-B10,
3.620%, 8/15/23 - MBIA Insured (6)
------------------------------------------------------------------------------------------------------------------------------------
$ 6,400 Total Short-Term Investments (cost $6,400,000) 6,400,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,407,807,079) - 152.6% 1,491,777,683
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 10,823,178
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.7)% (525,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 977,600,861
====================================================================================================================
(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 (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of United Air Lines, Inc., filed for
federal bankruptcy protection. At that time, the
Adviser determined that it was likely United would not
remain current on their interest payment obligations
with respect to these bonds and thus the Fund had
stopped accruing interest. During July 2006, the Fund
received all past due interest amounts on its UAL bonds
and began accruing interest.
(6) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
29
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Portfolio of
INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.7% (1.8% OF TOTAL INVESTMENTS)
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
$ 3,600 5.250%, 11/15/20 11/15 at 100.00 Baa1 $ 3,813,732
1,000 5.000%, 11/15/30 11/15 at 100.00 Baa1 1,025,940
1,560 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,607,689
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) 1,859,592
Alabama, Revenue Bonds, Baptist Medical Center,
Series 2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
8,255 University of South Alabama, Student Tuition Revenue Bonds, 3/14 at 100.00 Aaa 8,742,045
Series 2004, 5.000%, 3/15/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,105 Total Alabama 17,048,998
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.7% (1.1% OF TOTAL INVESTMENTS)
10,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 10,681,860
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.9% (0.6% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
200 5.250%, 12/01/24 12/15 at 100.00 BBB 211,686
265 5.250%, 12/01/25 12/15 at 100.00 BBB 280,283
2,850 Maricopa County Industrial Development Authority, Arizona, 1/07 at 102.00 AAA 3,068,082
Multifamily Housing Revenue Bonds, Place Five and The
Greenery Apartments, Series 1996A, 6.625%, 1/01/27 (ETM)
2,095 Pima County Industrial Development Authority, Arizona, Lease 1/07 at 100.50 AAA 2,102,856
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,410 Total Arizona 5,662,907
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 1,035,470
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/25
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.3% (10.1% OF TOTAL INVESTMENTS)
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 6,121,530
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 4,532,640
5,500 5.375%, 5/01/21 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 6,064,575
California Educational Facilities Authority, Revenue Refunding
Bonds, Loyola Marymount University, Series 2001A:
3,255 0.000%, 10/01/23 - MBIA Insured No Opt. Call Aaa 1,566,566
5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call Aaa 2,705,336
7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call Aaa 3,336,588
6,240 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 6,533,218
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
2,055 California Infrastructure Economic Development Bank, 10/14 at 100.00 AA 2,189,623
Infrastructure State Revolving Fund Revenue Bonds,
Series 2004, 5.000%, 10/01/21
1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 1,027,540
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.000%, 7/01/39
2,500 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA+ 2,769,675
5.250%, 7/01/14
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,500 California, General Obligation Bonds, Series 2003, 5.000%, 2/01/32 8/13 at 100.00 A+ $ 3,657,220
8,000 California, General Obligation Bonds, Series 2004, 5.125%, 2/01/25 2/14 at 100.00 A+ 8,527,360
5,000 California, General Obligation Bonds, Series 2006, 5.000%, 3/01/13 No Opt. Call A+ 5,381,900
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 2,068,321
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,170 Cotati-Rohnert Park Unified School District, Sonoma County, 8/15 at 100.00 Aaa 2,337,893
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/22 - FGIC Insured
2,500 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 AAA 2,671,350
Revenue Bonds, North Fontana Redevelopment Project,
Series 2005A, 5.000%, 10/01/23 - AMBAC Insured
30,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 16,511,100
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21 (ETM)
1,385 Fullerton Public Financing Authority, California, Tax Allocation 9/15 at 100.00 AAA 1,466,507
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
Perris, California, Special Tax Bonds, Community Facilities
District 2001-1, May Farms Improvement Area 4, Series 2005A:
1,420 5.000%, 9/01/25 9/15 at 102.00 N/R 1,432,326
435 5.100%, 9/01/30 9/15 at 102.00 N/R 443,500
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 260,392
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 285,235
2,220 San Diego Redevelopment Agency, California, Subordinate 9/14 at 100.00 AAA 2,388,787
Lien Tax Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/20 - XLCA Insured
960 San Francisco Redevelopment Agency, California, Hotel Tax 1/07 at 100.00 AAA 975,245
Revenue Bonds, Series 1994, 6.750%, 7/01/25 - FSA Insured
6,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 6,557,460
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - MBIA Insured
2,000 Sonoma County Junior College District, California, General 8/13 at 100.00 AAA 2,177,860
Obligation Bonds, Series 2003A, 5.000%, 8/01/27
(Pre-refunded 8/01/13) - FSA Insured
3,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 AAA 3,140,430
Bonds, Turlock Irrigation District, Series 2004A,
5.000%, 1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
114,760 Total California 97,130,177
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.3% (1.5% OF TOTAL INVESTMENTS)
1,700 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AAA 1,823,046
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- 1,866,243
475 5.000%, 6/01/29 6/16 at 100.00 A- 491,810
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 413,748
Valley Health Care, Series 2005F, 5.000%, 3/01/25
130 Colorado Housing Finance Authority, Single Family Program 12/06 at 104.50 Aa2 134,035
Senior Bonds, Series 1995D, 7.375%, 6/01/26 (Alternative
Minimum Tax)
400 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 451,284
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
6,925 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 AAA 7,477,130
Revenue Bonds, Convention Center Hotel, Series 2006,
5.125%, 12/01/25 - XLCA Insured
1,700 Denver, Colorado, FHA-Insured Multifamily Housing Revenue 10/07 at 102.00 AAA 1,744,557
Bonds, Boston Lofts Project, Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,475 Total Colorado 14,401,853
------------------------------------------------------------------------------------------------------------------------------------
31
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 8,310 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AAA $ 8,878,986
Purpose Bonds, Series 2003B, 5.000%, 1/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.0% (1.3% OF TOTAL INVESTMENTS)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
11,720 0.000%, 4/01/27 - MBIA Insured 4/11 at 39.61 AAA 3,843,691
13,780 0.000%, 4/01/28 - MBIA Insured 4/11 at 37.21 AAA 4,245,894
15,855 0.000%, 4/01/29 - MBIA Insured 4/11 at 35.07 AAA 4,603,816
------------------------------------------------------------------------------------------------------------------------------------
41,355 Total District of Columbia 12,693,401
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.9% (1.9% OF TOTAL INVESTMENTS)
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 4,435,451
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 4/07 at 102.00 AAA 5,107,250
5.750%, 10/01/18 - MBIA Insured (Alternative Minimum Tax)
2,500 Escambia County Health Facilities Authority, Florida, Health 10/08 at 101.00 BBB+ 2,556,700
Facility Revenue Refunding Bonds, Baptist Hospital and Baptist
Manor, Series 1998, 5.125%, 10/01/19
620 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 641,316
Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 - FSA Insured
(Alternative Minimum Tax)
3,600 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 3,963,348
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 AA 1,851,232
Development District, Special Assessment Bonds,
Commercial Project, Series 2002A, 5.625%, 5/01/32 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
17,650 Total Florida 18,555,297
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.6% (1.1% OF TOTAL INVESTMENTS)
500 Chatham County Hospital Authority, Savannah, Georgia, 1/14 at 100.00 A- 532,500
Hospital Revenue Bonds, Memorial Health University Medical
Center Inc., Series 2004A, 5.375%, 1/01/26
10 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 10,995
Revenue Bonds, Series 2003A, 5.250%, 11/01/15
(Pre-refunded 11/01/13) - MBIA Insured
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
3,405 5.250%, 11/01/15 - MBIA Insured 11/13 at 100.00 AAA 3,723,470
3,365 5.000%, 11/01/18 - MBIA Insured 11/13 at 100.00 AAA 3,601,560
2,235 Richmond County Development Authority, Georgia, Revenue 12/14 at 100.00 AAA 2,371,871
Bonds, Medical College of Georgia, Cancer Research Center
Project, Series 2004A, 5.000%, 12/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,515 Total Georgia 10,240,396
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,155 Idaho Housing Agency, FHA-Insured Mortgage Revenue Bonds, 12/06 at 101.00 Aa2 3,236,020
Park Place Project, Series 1995A, 6.500%, 12/01/36
(Alternative Minimum Tax)
310 Idaho Housing Agency, Senior Lien Single Family Mortgage 1/07 at 101.00 Aaa 316,646
Bonds, Series 1995F, 6.450%, 7/01/27 (Alternative
Minimum Tax)
3,160 Idaho Housing and Finance Association, GNMA Housing 3/12 at 105.00 Aaa 3,581,797
Revenue Refunding Bonds, Wedgewood Terrace Project,
Series 2002A-1, 7.250%, 3/20/37
310 Idaho Housing and Finance Association, Single Family 1/07 at 102.00 Aaa 316,681
Mortgage Bonds, Series 1996G, 6.350%, 7/01/26 (Alternative
Minimum Tax)
320 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 330,192
Bonds, Series 2000B, 6.250%, 7/01/22 (Alternative
Minimum Tax)
545 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 554,968
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative
Minimum Tax)
500 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 525,645
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/30
------------------------------------------------------------------------------------------------------------------------------------
8,300 Total Idaho 8,861,949
------------------------------------------------------------------------------------------------------------------------------------
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.4% (9.4% OF TOTAL INVESTMENTS)
$ 5,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AAA $ 2,753,950
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 AAA 10,318,477
Series 1999, 0.000%, 1/01/25 - FGIC Insured
1,585 Chicago, Illinois, General Obligation Bonds, Series 1995A-1, 1/08 at 100.00 AAA 1,607,935
5.125%, 1/01/25 - AMBAC Insured
620 Chicago, Illinois, General Obligation Refunding Bonds, 7/08 at 102.00 AAA 646,772
Series 1998, 5.250%, 1/01/20 - FGIC Insured
Chicago, Illinois, General Obligation Refunding Bonds, Series 1998:
120 5.250%, 1/01/20 (Pre-refunded 7/01/08) - FGIC Insured 7/08 at 102.00 AAA 125,600
260 5.250%, 1/01/20 (Pre-refunded 7/01/08) - FGIC Insured 7/08 at 102.00 AAA 272,134
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 6/09 at 102.00 Aaa 1,221,060
Revenue Bonds, Bryn Mawr-Belle Shores Project, Series 1997,
5.800%, 6/01/23 (Alternative Minimum Tax)
3,315 Chicago, Illinois, Tax Increment Allocation Bonds, Read- 1/07 at 102.00 N/R 3,396,483
Dunning Redevelopment Project, Series 1996B,
7.250%, 1/01/14
3,325 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 1/07 at 102.00 N/R 3,409,422
Drainage and Ship Canal Redevelopment Project,
Series 1997A, 7.750%, 1/01/14
4,865 Cook County Community Consolidated School District 15, No Opt. Call Aaa 2,668,501
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured (ETM)
6,190 Cook County Community High School District 219, Niles No Opt. Call Aaa 3,409,390
Township, Illinois, General Obligation Capital Appreciation
Bonds, Series 2001, 0.000%, 12/01/20 - MBIA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,000 5.250%, 11/15/14 5/14 at 100.00 A 2,144,220
4,420 5.250%, 11/15/15 5/14 at 100.00 A 4,723,963
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 406,617
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 1,044,290
Medical Center, Series 2002, 5.500%, 5/15/32
3,000 Illinois Health Facilities Authority, Revenue Bonds, 7/13 at 100.00 A- 3,310,050
Lake Forest Hospital, Series 2003, 6.000%, 7/01/33
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A+ 3,450,930
Lutheran General Health System, Series 1993C,
6.000%, 4/01/18
Illinois Housing Development Authority, Housing Finance Bonds,
Series 2000A:
575 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 582,136
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,280,595
11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AAA 13,847,680
Series 2001, 6.000%, 11/01/26 - FGIC Insured
2,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 2,168,740
Series 2002, 5.500%, 2/01/18 - FGIC Insured
Lake County Community Unit School District 60, Waukegan,
Illinois, General Obligation Refunding Bonds, Series 2001B:
3,230 0.000%, 11/01/19 - FSA Insured No Opt. Call Aaa 1,876,856
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aaa 916,475
4,020 Lake, Cook, Kane and McHenry Counties Community Unit No Opt. Call AAA 4,573,232
School District 220, Barrington, Illinois, School Refunding
Bonds, Series 2002, 5.250%, 12/01/20 - FSA Insured
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
855 5.250%, 1/01/25 1/16 at 100.00 AA- 914,277
1,750 5.250%, 1/01/30 1/16 at 100.00 AA- 1,869,963
17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call Aaa 9,329,247
District 158, Huntley, Illinois, General Obligation Bonds,
Series 2003, 0.000%, 1/01/22 - FGIC Insured
4,505 McHenry County Community Consolidated School District 47, 2/09 at 100.00 Aaa 4,701,823
Crystal Lake, Illinois, General Obligation Refunding Bonds,
Series 1999, 5.750%, 2/01/19 - FSA Insured
2,910 McHenry County Community High School District 154, No Opt. Call Aaa 1,583,913
Marengo, Illinois, Capital Appreciation School Bonds,
Series 2001, 0.000%, 1/01/21 - FGIC Insured
33
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 2,540 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA $ 2,660,040
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
117,255 Total Illinois 91,214,771
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,000 Ball State University, Indiana, Student Fee Revenue Bonds, 1/12 at 100.00 AAA 1,092,850
Series 2002K, 5.750%, 7/01/20 - FGIC Insured
3,500 Indiana Bond Bank, Special Program Bonds, East Chicago 2/10 at 101.00 AAA 3,796,905
Facilities Building Corporation, Series 2000A, 6.125%, 2/01/25
(Pre-refunded 2/01/10) - AMBAC Insured
4,195 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA 4,450,727
Bonds, Series 2000, 5.375%, 12/01/25
805 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 AA (4) 860,521
Bonds, Series 2000, 5.375%, 12/01/25 (Pre-refunded 12/01/10)
Indiana University, Student Fee Revenue Bonds, Series 2004P:
2,750 5.000%, 8/01/22 - AMBAC Insured 8/14 at 100.00 AAA 2,921,187
1,600 5.000%, 8/01/24 - AMBAC Insured 8/14 at 100.00 AAA 1,691,968
1,550 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BBB 1,599,801
Madison Center Inc., Series 2005, 5.250%, 2/15/23
------------------------------------------------------------------------------------------------------------------------------------
15,400 Total Indiana 16,413,959
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 3.3% (2.2% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,140,300
Medical Center, Series 2000, 6.250%, 7/01/25
8,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA 8,353,360
Iowa Health System, Series 1998A, 5.125%, 1/01/28
(Pre-refunded 7/01/08) - MBIA Insured
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 8,432,960
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
2,000 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 2,139,680
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
20,000 Total Iowa 21,066,300
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
135 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 136,098
Single Family Mortgage Revenue Refunding Bonds,
Series 1994A-1, 7.900%, 5/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.6% (2.4% OF TOTAL INVESTMENTS)
490 Bossier Public Trust Financing Authority, Louisiana, Single 2/07 at 101.00 AAA 494,635
Family Mortgage Revenue Refunding Bonds, Series 1995B,
6.125%, 8/01/28
2,765 East Baton Rouge Parish Mortgage Finance Authority, Louisiana, 4/07 at 101.50 Aaa 2,795,304
GNMA/FNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Bonds, Series 1994C, 6.350%, 10/01/28
(Alternative Minimum Tax)
3,230 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,445,086
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/21 - AMBAC Insured
4,350 Louisiana Citizens Property Insurance Corporation, Assessment 6/16 at 100.00 AAA 4,673,596
Revenue Bonds, Series 2006, 5.000%, 6/01/22 - AMBAC Insured
4,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 4,237,840
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
1,360 Louisiana State, Gas Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 1,349,392
4.500%, 5/01/41 (WI/DD, Settling 11/02/06) - FGIC Insured
1,520 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 1,484,462
Residuals 660-1, 5.850%, 5/01/41 (WI/DD, Settling
11/02/06) - FGIC Insured (IF)
180 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 196,027
Residuals 661, 6.597%, 5/01/39 (WI/DD, Settling 11/02/06) -
FSA Insured (IF)
995 New Orleans Home Mortgage Authority, Louisiana, 12/06 at 100.50 Aaa 1,007,865
GNMA/FNMA Single Family Mortgage Revenue Bonds,
Series 1995A, 6.300%, 6/01/28 (Alternative Minimum Tax)
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 3,005 Orleans Levee District, Louisiana, Levee District General 12/06 at 102.50 AAA $ 3,099,868
Obligation Bonds, Series 1986, 5.950%, 11/01/15 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
21,895 Total Louisiana 22,784,075
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 2,048,908
Revenue Bonds, Series 2006A, 5.250%, 9/01/26 -
XLCA Insured
1,205 Maryland Economic Development Corporation, Student 6/16 at 100.00 AAA 1,286,747
Housing Revenue Refunding Bonds, University of Maryland
College Park Projects, Series 2006, 5.000%, 6/01/28 -
CIFG Insured
1,390 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A1 1,491,804
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.250%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
4,460 Total Maryland 4,827,459
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 6.7% (4.4% OF TOTAL INVESTMENTS)
2,455 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 2,724,436
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
1,935 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,961,258
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
1,000 Massachusetts Development Finance Authority, Revenue 10/14 at 100.00 BBB 1,072,870
Bonds, Hampshire College, Series 2004, 5.700%, 10/01/34
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 AA 9,941,388
Revenue Bonds, Berkshire Health System, Series 2001E,
5.700%, 10/01/25 - RAAI Insured
1,100 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 BBB 1,144,330
Revenue Bonds, Caritas Christi Obligated Group, Series 1999A,
5.625%, 7/01/20
2,750 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 2,896,547
Revenue Bonds, New England Medical Center Hospitals,
Series 2002H, 5.000%, 5/15/25 - FGIC Insured
1,325 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 1,353,421
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
11,400 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 12,408,330
1,850 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 2,013,632
Massachusetts, Special Obligation Dedicated Tax Revenue Bonds,
Series 2004:
2,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,468,407
4,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 4,388,280
------------------------------------------------------------------------------------------------------------------------------------
39,240 Total Massachusetts 42,372,899
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.6% (2.4% OF TOTAL INVESTMENTS)
Grand Rapids and Kent County Joint Building Authority, Michigan,
Limited Tax General Obligation Bonds, Devos Place Project,
Series 2001:
7,660 0.000%, 12/01/21 No Opt. Call AAA 4,026,249
7,955 0.000%, 12/01/22 No Opt. Call AAA 3,987,842
8,260 0.000%, 12/01/23 No Opt. Call AAA 3,946,876
8,575 0.000%, 12/01/24 No Opt. Call AAA 3,903,254
1,200 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,327,920
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
2,000 Michigan State Hospital Finance Authority, Revenue Refunding 2/07 at 100.00 BB- 2,001,560
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.375%, 8/15/09
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 BBB- 360,536
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
3,270 Romulus Community Schools, Wayne County, Michigan, General 5/13 at 100.00 AA 3,470,909
Obligation Bonds, Series 2003, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
39,260 Total Michigan 23,025,146
------------------------------------------------------------------------------------------------------------------------------------
35
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.2% (2.8% OF TOTAL INVESTMENTS)
$ 8,165 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A $ 8,352,142
Allete Inc., Series 2004, 4.950%, 7/01/22
Minneapolis-St. Paul Housing and Redevelopment Authority,
Minnesota, Revenue Bonds, HealthPartners Inc., Series 2003:
1,000 6.000%, 12/01/18 12/13 at 100.00 Baa1 1,103,200
1,050 5.875%, 12/01/29 12/13 at 100.00 Baa1 1,142,999
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,530,920
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 - FGIC Insured
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,154,200
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 - FGIC Insured
1,375 Minnesota Higher Education Facilities Authority, St. John's 10/15 at 100.00 A2 1,469,243
University Revenue Bonds, Series 2005-6G, 5.000%, 10/01/22
310 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/07 at 100.00 AAA 311,724
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
670 Minnesota Housing Finance Agency, Single Family Mortgage 1/07 at 101.00 AA+ 678,904
Bonds, Series 1996G, 6.250%, 7/01/26 (Alternative
Minimum Tax)
960 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 963,408
Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
1,200 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 1,210,140
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 1,078,230
Series 2004A, 5.250%, 10/01/19
2,000 Southern Minnesota Municipal Power Agency, Power Supply 1/07 at 100.00 AAA 2,087,500
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11 (ETM)
1,620 St. Louis Park, Minnesota, Revenue Bonds, Park Nicollet 7/14 at 100.00 A 1,750,669
Health Services, Series 2003B, 5.500%, 7/01/25
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 1,117,850
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
25,750 Total Minnesota 26,951,129
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 2,537,717
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 5.5% (3.6% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 2,095,560
Revenue Bonds, Lutheran Senior Services - Heisinger Project,
Series 2004, 5.250%, 2/01/24
200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 208,780
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
2,885 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 3,124,022
Facilities Revenue Bonds, Freeman Health System,
Series 2004, 5.500%, 2/15/24
9,000 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 AAA 9,674,100
Improvement Projects, Series 2003B, 5.250%, 9/01/17 -
FGIC Insured
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
780 6.000%, 6/01/20 No Opt. Call BBB+ 909,698
1,225 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,258,063
2,500 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 2,625,875
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+ 1,257,024
Bonds, Lake Regional Health System, Series 2003,
5.125%, 2/15/18
1,250 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AAA 1,332,800
Bonds, SSM Healthcare System, Series 2001A,
5.250%, 6/01/21 - AMBAC Insured
36
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:
$ 1,250 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA $ 1,350,038
2,000 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AAA 2,155,640
4,095 Missouri, General Obligation Refunding Bonds, Fourth State 10/12 at 100.00 AAA 4,369,815
Building, Series 2002A, 5.000%, 10/01/18
2,000 Missouri, Water Pollution Control Revenue Refunding Bonds, 10/12 at 100.00 AAA 2,138,620
Series 2002B, 5.000%, 10/01/18
2,200 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 2,299,242
Program, Series 2001A, 5.125%, 7/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
32,585 Total Missouri 34,799,277
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,470 Municipal Energy Agency of Nebraska, Power Supply System 4/13 at 100.00 AAA 1,585,968
Revenue Bonds, Series 2003A, 5.250%, 4/01/23 - FSA Insured
1,560 Omaha Public Power District, Nebraska, Electric System 2/17 at 100.00 AAA 1,816,651
Revenue Bonds, Nebraska City 2, Series 2006A,
Residuals 1508-2, 7.530%, 2/01/49 (WI/DD, Settling
11/02/06) - AMBAC Insured (IF)
1,000 University of Nebraska, Lincoln, Student Fees and Facilities 11/13 at 100.00 Aa2 1,042,420
Revenue Bonds, Series 2003B, 5.000%, 7/01/33
------------------------------------------------------------------------------------------------------------------------------------
4,030 Total Nebraska 4,445,039
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.4% (2.3% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,417,584
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) -
MBIA Insured
5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 6,158,752
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
4,000 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 AAA 4,252,840
Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,205 Total Nevada 21,829,176
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 5.5% (3.6% OF TOTAL INVESTMENTS)
5,615 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 6,077,002
Revenue Bonds, Series 2003, 5.125%, 12/15/20 - FSA Insured
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
1,325 5.250%, 9/01/24 9/15 at 100.00 AA- 1,442,528
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,084,830
4,310 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 4,449,989
Multifamily Housing Revenue Bonds, Series 1997A,
5.650%, 5/01/40 - AMBAC Insured (Alternative Minimum Tax)
3,400 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 AAA 3,776,822
Transportation System Bonds, Series 2003C, 5.500%, 6/15/22
(Pre-refunded 6/15/13)
3,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 3,341,640
System Bonds, Series 2005C, 5.250%, 6/15/15 -
MBIA Insured (ETM)
3,425 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 3,873,469
System Bonds, Series 2006A, 5.250%, 12/15/20
4,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 4,278,920
5.000%, 1/01/19 - FGIC Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,197,400
5.000%, 1/01/24 - FSA Insured
3,380 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,480,893
Facility Subordinate Lease Revenue Bonds, Ogden Martin
Systems of Union Inc., Series 1998A, 5.350%, 6/01/23 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
32,455 Total New Jersey 35,003,493
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 16.7% (10.9% OF TOTAL INVESTMENTS)
5,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 5,285,100
Revenue Bonds, Montefiore Medical Center, Series 2005,
5.000%, 2/01/28 - FGIC Insured
37
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2006
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,
Marymount Manhattan College, Series 1999:
$ 1,975 6.375%, 7/01/16 - RAAI Insured 7/09 at 101.00 AA $ 2,116,904
2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 AA 2,237,414
1,500 Dormitory Authority of the State of New York, State and 7/14 at 100.00 AA- 1,627,815
Local Appropriation Lease Bonds, Upstate Community
Colleges, Series 2004B, 5.250%, 7/01/19
1,250 Hempstead Town Industrial Development Agency, New York, 10/15 at 100.00 A- 1,309,287
Revenue Bonds, Adelphi University, Civic Facility Project,
Series 2005, 5.000%, 10/01/30
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 1998A:
755 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 781,161
1,620 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 1,676,133
1,000 Metropolitan Transportation Authority, New York, Transportation No Opt. Call A 1,094,820
Revenue Bonds, Series 2005C, 5.000%, 11/15/16
4,600 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 4,861,924
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2004B:
6,875 5.000%, 8/01/23 8/13 at 100.00 AAA 7,271,481
7,260 5.000%, 8/01/24 8/13 at 100.00 AAA 7,665,544
2,500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 2,658,275
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/22
4,000 New York City Trust for Cultural Resources, New York, Revenue 4/07 at 101.00 AAA 4,073,200
Bonds, American Museum of Natural History, Series 1997A,
5.650%, 4/01/27 - MBIA Insured
35 New York City, New York, General Obligation Bonds, No Opt. Call AA- 35,094
Fiscal Series 1996J, 5.500%, 2/15/26
5,020 New York City, New York, General Obligation Bonds, 4/07 at 101.00 AAA 5,131,896
Fiscal Series 1997I, 6.250%, 4/15/27 (Pre-refunded 4/15/07)
4,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 4,330,160
Fiscal Series 2004C, 5.250%, 8/15/20
2,150 New York City, New York, General Obligation Bonds, 3/15 at 100.00 AA- 2,268,981
Fiscal Series 2005J, 5.000%, 3/01/25
5,000 New York City, New York, General Obligation Bonds, 4/15 at 100.00 AA- 5,290,050
Fiscal Series 2005M, 5.000%, 4/01/24
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+ 6,486,000
5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,486,988
5,980 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 6,375,637
Series 2005G, 5.000%, 1/01/26 - FSA Insured
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
3,770 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 4,066,435
2,835 5.000%, 4/01/24 - AMBAC Insured 10/15 at 100.00 AAA 3,035,888
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- 3,599,410
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,193,280
6,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 6,413,820
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/27 - XLCA Insured
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 7,303,125
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 - MBIA Insured (Alternative Minimum Tax)
1,000 Rensselaer County Industrial Development Agency, New York, 3/16 at 100.00 A 1,061,590
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
98,955 Total New York 105,737,412
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 2,550 Cumberland County, North Carolina, Hospital Facility Revenue 10/09 at 101.00 A- (4) $ 2,688,771
Bonds, Cumberland County Hospital System Inc., Cape Fear
Valley Health System, Series 1999, 5.250%, 10/01/19
(Pre-refunded 10/01/09)
2,480 Durham Urban Redevelopment Authority, North Carolina, 8/07 at 105.00 AAA 2,622,972
FHA-Insured Mortgage Loan Revenue Bonds, Durham Hosiery
Mill, Series 1987, 7.500%, 8/01/29 (Alternative Minimum Tax)
615 North Carolina Housing Finance Agency, Single Family Revenue 3/07 at 101.00 AA 622,915
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+ 1,323,488
2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,584,023
------------------------------------------------------------------------------------------------------------------------------------
9,340 Total North Carolina 9,842,169
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,405 North Dakota Housing Finance Agency, Home Mortgage 7/10 at 100.00 Aa3 1,433,522
Finance Program Bonds, Series 2000C, 6.150%, 7/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.0% (2.6% OF TOTAL INVESTMENTS)
3,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 3,328,410
Obligation Bonds, Series 2004, 5.250%, 12/01/24
(Pre-refunded 12/01/14) - FSA Insured
Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth
Corporation, Series 2003C:
2,330 5.250%, 5/15/17 - MBIA Insured 5/13 at 100.00 AAA 2,518,078
4,105 5.250%, 5/15/18 - MBIA Insured 5/13 at 100.00 AAA 4,427,242
2,000 Ohio Housing Finance Agency, FHA-Insured Multifamily 1/08 at 102.00 Aa2 2,044,140
Housing Mortgage Revenue Bonds, Courtyards of Kettering,
Series 1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax)
6,050 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,138,814
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
6,400 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 6,636,480
Revenue Bonds, Bay Shore Power, Series 1998B,
6.625%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,885 Total Ohio 25,093,164
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.0% (0.7% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital
Revenue Bonds, Series 2005:
500 5.375%, 9/01/29 9/16 at 100.00 BBB- 530,340
750 5.375%, 9/01/36 9/16 at 100.00 BBB- 790,958
5,000 Oklahoma State Student Loan Authority, Senior Lien Revenue 6/11 at 102.00 AAA 5,282,250
Bonds, Series 2001A-1, 5.625%,6/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,250 Total Oklahoma 6,603,548
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.5% (1.0% OF TOTAL INVESTMENTS)
7,860 Multnomah County Hospital Facilities Authority, Oregon, 10/14 at 100.00 AA 8,667,065
Revenue Bonds, Sisters of Providence Health System,
Series 2004, 5.500%, 10/01/21
735 Oregon, General Obligation Veterans Welfare Bonds, 4/07 at 101.00 AA- 743,114
Series 75, 6.000%, 4/01/27
------------------------------------------------------------------------------------------------------------------------------------
8,595 Total Oregon 9,410,179
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.6% (1.1% OF TOTAL INVESTMENTS)
3,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,746,365
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 -
MBIA Insured
1,500 Annville-Cleona School District, Lebanon County, 3/15 at 100.00 Aaa 1,738,965
Pennsylvania, General Obligation Bonds, Series 2005,
6.000%, 3/01/28 - FSA Insured
1,225 Central Dauphin School District, Dauphin County, Pennsylvania, 2/16 at 100.00 AAA 1,506,150
General Obligation Bonds, Series 2006, 6.750%, 2/01/24
(Pre-refunded 2/01/16) - MBIA Insured
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AAA 1,241,090
Local Government Revenue Bonds, Series 1997B,
5.700%, 7/01/27 - AMBAC Insured
1,000 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 1,064,930
Series 2005, 5.000%, 9/01/29
39
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2006
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 AAA $ 1,127,249
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,325 Total Pennsylvania 10,424,749
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.7% (1.8% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation,
Tobacco Settlement Asset-Backed Bonds, Series 2002A:
10,000 6.000%, 6/01/23 6/12 at 100.00 BBB 10,699,800
6,000 6.125%, 6/01/32 6/12 at 100.00 BBB 6,441,180
------------------------------------------------------------------------------------------------------------------------------------
16,000 Total Rhode Island 17,140,980
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.7% (6.4% OF TOTAL INVESTMENTS)
14,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A - 14,721,280
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
15,445 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 17,446,053
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17
(Pre-refunded 12/01/12)
2,500 Greenville, South Carolina, Hospital Facilities Revenue Refunding 5/13 at 100.00 AAA 2,645,825
Bonds, Series 2003A, 5.000%, 5/01/25 - AMBAC Insured
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 1/07 at 100.00 AAA 7,314,468
Revenue Bonds, Series 1991, 4.000%, 1/01/23 - MBIA Insured
6,000 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 6,423,720
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
165 6.875%, 8/01/27 8/13 at 100.00 BBB+ 191,379
550 6.375%, 8/01/34 8/13 at 100.00 BBB+ 621,528
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) 1,584,018
4,450 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,158,440
5,000 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 5,343,200
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
57,045 Total South Carolina 61,449,911
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 3,435,424
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
1,500 Memphis-Shelby County Airport Authority, Tennessee, 3/10 at 101.00 AAA 1,611,390
Airport Revenue Bonds, Series 1999D, 6.000%, 3/01/19 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,700 Total Tennessee 5,046,814
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.5% (6.9% OF TOTAL INVESTMENTS)
2,290 Austin, Texas, Revenue Bonds, Town Lake Park Community 11/09 at 100.00 AAA 2,449,224
Events Center, Series 1999, 6.000%, 11/15/25 (Pre-refunded
11/15/09) - FGIC Insured
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Baa2 5,977,525
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
10,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 A- 10,930,000
Texas, Environmental Facilities Revenue Bonds, Dow
Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
3,345 Fort Worth, Texas, Water and Sewerage Revenue Bonds, 2/12 at 100.00 AA (4) 3,670,903
Series 2001, 5.625%, 2/15/19 (Pre-refunded 2/15/12)
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/08 at 102.00 BBB- 5,115,150
Disposal Revenue Bonds, Valero Refining and Marketing
Company Project, Series 1997, 5.600%, 12/01/31 (Alternative
Minimum Tax)
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
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+ $ 1,047,680
1,000 5.000%, 12/01/21 12/14 at 100.00 A+ 1,045,600
2,500 5.125%, 12/01/22 12/14 at 100.00 A+ 2,638,600
2,800 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,976,624
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 -
MBIA Insured
4,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 4,347,000
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 4,771,396
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 767,985
Unlimited Tax General Obligation Refunding Bonds,
Series 2001, 5.250%, 8/15/26
5,460 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 Aaa 5,861,419
Unlimited Tax General Obligation Refunding Bonds,
Series 2001, 5.250%, 8/15/26 (Pre-refunded 8/15/11)
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series
2005:
800 5.250%, 8/15/21 No Opt. Call BBB- 842,912
1,000 5.125%, 8/15/26 No Opt. Call BBB- 1,034,740
2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,132,820
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 Baa2 1,037,470
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 4,082,523
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
3,900 Texas, General Obligation Bonds, Veterans Housing Assistance 12/11 at 101.00 Aa1 4,065,204
Program Fund II, Series 2001C-1, 5.200%, 12/01/21
(Alternative Minimum Tax)
6,945 Weatherford Independent School District, Parker County, Texas, 2/11 at 44.73 AAA 2,589,374
Unlimited Tax School Building and Refunding Bonds,
Series 2001, 0.000%, 2/15/25
------------------------------------------------------------------------------------------------------------------------------------
73,660 Total Texas 67,384,149
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.1% (0.0% OF TOTAL INVESTMENTS)
20 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/07 at 100.00 AAA 20,451
Series 1994B, 6.450%, 7/01/14
295 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101.50 AAA 299,369
Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax)
150 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 152,594
Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
465 Total Utah 472,414
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.3% (6.1% OF TOTAL INVESTMENTS)
15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 16,118,100
Consolidated System Revenue Bonds, Series 2002A,
5.450%, 7/01/37 - AMBAC Insured (Alternative Minimum Tax)
7,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,285,100
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,488,450
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
10,080 King County School District 401, Highline, Washington, 6/12 at 100.00 AAA 11,003,328
General Obligation Bonds, Series 2002, 5.500%, 12/01/16 -
FGIC Insured
6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 9/12 at 100.00 AAA 7,465,992
5.250%, 9/01/22 - FGIC Insured
2,820 Skagit County Public Hospital District 1, Washington, General 12/14 at 100.00 Aaa 3,116,213
Obligation Bonds, Series 2004A, 5.375%, 12/01/19 -
MBIA Insured
2,500 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 2,649,350
Bonds, Series 2001, 5.125%, 12/01/22 - MBIA Insured
4,905 Washington, Various Purpose General Obligation Bonds, 1/09 at 100.00 Aa1 5,028,655
Series 1999B, 5.000%, 1/01/19
------------------------------------------------------------------------------------------------------------------------------------
54,770 Total Washington 59,155,188
------------------------------------------------------------------------------------------------------------------------------------
41
Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.5% (1.6% OF TOTAL INVESTMENTS)
$ 7,000 Harrison County Commission, West Virginia, Solid Waste 11/06 at 100.00 AAA $ 7,081,760
Disposal Revenue Bonds, Potomac Edison Company - Harrison
Station, Series 1993B, 6.250%, 5/01/23 - AMBAC Insured
(Alternative Minimum Tax)
5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 5,176,900
Appalachian Power Company, Series 2003L, 5.500%, 10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue 4/09 at 101.00 AAA 1,043,820
Bonds, West Penn Power Company Pleasants Station Project,
Series 1999E, 5.500%, 4/01/29 - AMBAC Insured (Alternative
Minimum Tax)
2,355 West Virginia University, Unlimited Tax General Revenue Bonds, 10/14 at 100.00 AAA 2,504,331
Student Fees, Series 2004C, 5.000%, 10/01/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,355 Total West Virginia 15,806,811
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.4% (1.6% OF TOTAL INVESTMENTS)
5,105 Wisconsin Health and Educational Facilities Authority, Revenue 2/09 at 101.00 BBB+ 5,304,708
Bonds, Aurora Health Care Inc., Series 1999A, 5.600%, 2/15/29
315 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 321,328
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 1,094,470
Bonds, Fort Healthcare Inc., Series 2004, 5.750%, 5/01/24
3,215 Wisconsin Health and Educational Facilities Authority, Revenue 2/07 at 102.00 AAA 3,294,153
Bonds, Marshfield Clinic, Series 1997, 5.625%, 2/15/17 -
MBIA Insured
5,300 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AAA 5,524,296
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,935 Total Wisconsin 15,538,955
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,750 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB- 2,924,872
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,018,960 Total Investments (cost $903,835,825) - 152.1% 966,062,669
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 15,918,351
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.6)% (347,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 634,981,020
====================================================================================================================
(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 (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
42
Nuveen Premium Income Municipal Fund 4, Inc. (NPT)
Portfolio of
INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.4% (2.1% OF TOTAL INVESTMENTS)
$ 5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 5,496,183
Bonds, Series 2001, 5.750%, 12/01/16
2,395 Alabama Housing Finance Authority, FNMA Multifamily 2/11 at 102.00 AAA 2,520,738
Housing Revenue Bonds, South Bay Apartments, Series 2000K,
5.950%, 2/01/33 (Alternative Minimum Tax)
11,895 Alabama Special Care Facilities Financing Authority, 11/06 at 100.50 Aaa 11,966,608
Birmingham, Hospital Revenue Bonds, Daughters of Charity
National Health System - Providence Hospital and St. Vincent's
Hospital, Series 1995, 5.000%, 11/01/25 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,440 Total Alabama 19,983,529
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9% (0.5% OF TOTAL INVESTMENTS)
1,665 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AAA 1,751,364
Bonds, Series 2005A, 5.000%, 12/01/30 - FGIC Insured
3,065 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA 3,307,043
Bonds, Series 2003E, 5.250%, 12/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,730 Total Alaska 5,058,407
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.6% (1.0% OF TOTAL INVESTMENTS)
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,234,650
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/31 - MBIA Insured
4,100 Salt River Project Agricultural Improvement and Power District, 12/13 at 100.00 AAA 4,367,771
Arizona, Electric System Revenue Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
9,100 Total Arizona 9,602,421
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
27 Jacksonville Residential Housing Facilities Board, Arkansas, 1/07 at 100.00 Aaa 28,207
FNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1993A-2,
7.900%, 1/01/11
77 Lonoke County Residential Housing Facilities Board, Arkansas, 4/07 at 101.00 Aaa 77,024
FNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 4/01/11
------------------------------------------------------------------------------------------------------------------------------------
104 Total Arkansas 105,231
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 9.9% (6.3% OF TOTAL INVESTMENTS)
1,800 California Department of Water Resources, Power Supply 5/12 at 101.00 AAA 1,988,820
Revenue Bonds, Series 2002A, 5.500%, 5/01/14 -
AMBAC Insured
17,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 17,477,019
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
5,000 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 5,217,300
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
3,665 California Infrastructure Economic Development Bank, No Opt. Call AAA 5,182,053
First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A. Residuals Series 1485, 7.327%, 7/01/33 -
AMBAC Insured (IF)
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,129,200
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
12,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/22 8/13 at 100.00 A+ 12,956,280
4,500 California, General Obligation Bonds, Series 2004, 5.100%, 2/01/34 2/09 at 100.00 A+ 4,589,685
4,780 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 3,649,769
Toll Road Revenue Bonds, Series 1995A,
0.000%, 1/01/14 (ETM)
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 1,141,290
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
43
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,190 Hillsborough City School District, San Mateo County, No Opt. Call AAA $ 1,279,349
California, General Obligation Bonds, Series 2006B,
0.000%, 9/01/27
795 Santa Clara Valley Water District, California, Water Utility 6/10 at 100.00 AA 829,495
System Revenue Bonds, Series 2000A, 5.000%, 6/01/18
1,945 South Gate Public Financing Authority, California, Water No Opt. Call AAA 2,166,263
Revenue Refunding Bonds, Series 1996A, 6.000%, 10/01/12 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
57,675 Total California 58,606,523
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.2% (3.9% OF TOTAL INVESTMENTS)
6,500 Adams 12 Five Star Schools, Adams County, Colorado, 12/15 at 100.00 AAA 6,805,955
General Obligation Bonds, Series 2005, 4.750%, 12/15/23 -
FSA Insured
2,000 Colorado Health Facilities Authority, Revenue Refunding Bonds, 9/11 at 100.00 AA (4) 2,142,800
Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21
(Pre-refunded 9/01/11)
530 Colorado Housing Finance Authority, Single Family Program 10/09 at 105.00 Aa2 541,241
Senior Bonds, Series 1999C-3, 6.750%, 10/01/21
3,040 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 3,429,758
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative
Minimum Tax)
Denver Convention Center Hotel Authority, Colorado, Senior
Revenue Bonds, Convention Center Hotel, Series 2003A:
2,940 5.000%, 12/01/20 (Pre-refunded 12/01/13) - XLCA Insured 12/13 at 100.00 AAA 3,181,492
10,000 5.000%, 12/01/33 (Pre-refunded 12/01/13) - XLCA Insured 12/13 at 100.00 AAA 10,821,400
4,345 El Paso County School District 20, Academy, Colorado, 12/12 at 100.00 Aaa 4,704,549
General Obligation Bonds, Series 2002, 5.250%, 12/15/17 -
FGIC Insured
755 Jefferson County School District R1, Colorado, General Obligation 12/14 at 100.00 AAA 808,235
Bonds, Series 2004, 5.000%, 12/15/22 - FSA Insured
4,125 Municipal Subdistrict Northern Colorado Water District, 12/07 at 101.00 AAA 4,234,478
Revenue Bonds, Series 1997G, 5.250%, 12/01/15 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,235 Total Colorado 36,669,908
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.2% (2.7% OF TOTAL INVESTMENTS)
6,000 District of Columbia, General Obligation Bonds, Series 1993B-2, No Opt. Call AAA 6,343,440
5.500%, 6/01/10 - FSA Insured
5 District of Columbia, General Obligation Bonds, Series 1993E, 12/06 at 100.00 AAA 5,010
6.000%, 6/01/09 - CAPMAC Insured
1,200 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 1,215,228
Series 1993A, 6.000%, 6/01/07 - MBIA Insured
145 District of Columbia, General Obligation Refunding Bonds, No Opt. Call AAA 147,058
Series 1993A, 6.000%, 6/01/07 - MBIA Insured (ETM)
4,250 District of Columbia, Hospital Revenue Refunding Bonds, 2/07 at 102.00 AAA 4,342,013
Medlantic Healthcare Group, Series 1993A, 5.750%, 8/15/14 -
MBIA Insured (ETM)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
9,670 0.000%, 4/01/26 - MBIA Insured 4/11 at 42.15 AAA 3,359,842
15,235 0.000%, 4/01/30 - MBIA Insured 4/11 at 32.93 AAA 4,153,670
5,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 5,187,650
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.250%, 10/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
41,505 Total District of Columbia 24,753,911
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.2% (3.3% OF TOTAL INVESTMENTS)
5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 5,228,750
Participation, Series 2003, 5.000%, 7/01/28 - MBIA Insured
5,000 Hillsborough County Aviation Authority, Florida, Revenue Bonds, 10/13 at 100.00 AAA 5,385,200
Tampa International Airport, Series 2003A, 5.250%, 10/01/18 -
MBIA Insured (Alternative Minimum Tax)
5,000 Martin County Industrial Development Authority, Florida, 12/06 at 100.00 BB+ 5,018,400
Industrial Development Revenue Bonds, Indiantown
Cogeneration LP, Series 1994A, 7.875%, 12/15/25 (Alternative
Minimum Tax)
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 1,380 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA $ 1,454,727
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.850%, 7/01/20 - FSA Insured (Alternative
Minimum Tax)
3,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 AAA 3,648,925
International Airport, Series 2005A, 5.000%, 10/01/37 -
XLCA Insured (Alternative Minimum Tax)
9,500 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 10,276,055
Series 1998, 5.000%, 10/01/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,380 Total Florida 31,012,057
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.5% (1.6% OF TOTAL INVESTMENTS)
4,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 5,116,452
Series 1999A, 5.500%, 11/01/22 - FGIC Insured
2,880 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call A+ 3,371,155
Bonds, Series 1992B, 8.250%, 1/01/11
5,500 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call AAA 6,390,560
Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
12,780 Total Georgia 14,878,167
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.0% (0.6% OF TOTAL INVESTMENTS)
3,720 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aa2 4,012,615
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13
1,580 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aaa 1,713,826
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
5,300 Total Hawaii 5,726,441
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.6% (9.3% OF TOTAL INVESTMENTS)
4,000 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA 4,605,840
Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured
5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 5,736,147
5.125%, 1/01/26 - FSA Insured (Alternative Minimum Tax)
5,000 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 5,208,000
5.250%, 1/01/28 - FGIC Insured
1,665 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,758,240
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
Cook County School District 99, Cicero, Illinois, General
Obligation School Bonds, Series 1997:
1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call Aaa 1,882,101
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call Aaa 2,291,095
6,090 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 6,164,602
Mortgage Revenue Bonds, Greek American Nursing Home
Committee, Series 2000A, 7.600%, 4/20/40
1,385 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aaa 1,487,324
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/18 - AMBAC Insured
2,515 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 2,685,115
Memorial Hospital, Series 2004A, 5.250%, 8/15/34
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 4,178,920
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
4,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 4,177,160
Medical Center, Series 2002, 5.500%, 5/15/32
Illinois Health Facilities Authority, Revenue Refunding Bonds,
Lutheran General Health System, Series 1993C:
3,045 7.000%, 4/01/08 No Opt. Call A+ 3,128,250
4,075 7.000%, 4/01/14 No Opt. Call A+ 4,822,273
720 Illinois Housing Development Authority, Multifamily Program 3/07 at 100.00 A+ 720,907
Bonds, Series 1994-5, 6.650%, 9/01/14
3,410 Illinois Housing Development Authority, Section 8 Elderly 11/06 at 100.00 A 3,507,356
Housing Revenue Bonds, Skyline Towers Apartments,
Series 1992B, 6.875%, 11/01/17
45
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 9,795 Lake, Cook, Kane and McHenry Counties Community Unit School No Opt. Call AAA $ 11,091,270
District 220, Barrington, Illinois, School Refunding Bonds,
Series 2002, 5.250%, 12/01/19 - FSA Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
9,500 0.000%, 6/15/24 - MBIA Insured 6/22 at 101.00 AAA 6,311,705
4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,754,560
36,040 0.000%, 6/15/40 - MBIA Insured No Opt. Call AAA 8,141,436
3,050 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 3,839,431
Lake, McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
111,520 Total Illinois 86,491,732
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.2% (5.8% OF TOTAL INVESTMENTS)
Carmel Redevelopment Authority, Lease Rent Revenue Bonds,
Series 2005:
1,950 0.000%, 2/01/24 No Opt. Call AA 882,394
2,705 0.000%, 2/01/25 No Opt. Call AA 1,164,881
3,965 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 AAA 4,225,382
University, Series 2001, 5.500%, 2/01/26 - MBIA Insured
1,500 Indiana Educational Facilities Authority, Revenue Bonds, 10/09 at 101.00 AAA 1,595,355
University of Indianapolis, Series 1999, 5.750%, 10/01/19 -
FSA Insured
22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 23,734,697
Bonds, Clarian Health Obligated Group, Series 2000A,
5.500%, 2/15/30 (Pre-refunded 8/15/10) - MBIA Insured
3,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 3,498,900
Refunding Bonds, Columbus Regional Hospital, Series 1993,
7.000%, 8/15/15 - FSA Insured
2,800 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,941,372
Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 -
AMBAC Insured
Indiana Transportation Finance Authority, Highway Revenue
Bonds, Series 2003A:
4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,238,880
6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,353,700
420 Marion County Convention and Recreational Facilities Authority, 6/07 at 102.00 AAA 428,282
Indiana, Excise Tax Lease Rental Revenue Bonds, Series 1997A,
5.000%, 6/01/27 - MBIA Insured
5,000 Metropolitan School District Warren Township Vision 2005 1/11 at 100.00 AAA 5,378,500
School Building Corporation, Marion County, Indiana, First
Mortgage Bonds, Series 2000, 5.500%, 7/15/20
(Pre-refunded 1/15/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
53,340 Total Indiana 54,442,343
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Iowa Finance Authority, Health Facility Revenue Bonds, 7/16 at 100.00 BBB- 1,014,870
Care Initiatives Project, Series 2006A, 5.000%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.8% (1.2% OF TOTAL INVESTMENTS)
2,000 Olathe, Kansas, Health Facilities Revenue Bonds, Olathe 9/10 at 100.00 AAA 2,126,720
Medical Center, Series 2000A, 5.500%, 9/01/25 -
AMBAC Insured
6,825 Sedgwick County Unified School District 259, Wichita, Kansas, 9/10 at 100.00 AA 6,626,393
General Obligation Bonds, Series 2000, 3.500%, 9/01/16
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 1,881,495
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,575 Total Kansas 10,634,608
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.9% (2.5% OF TOTAL INVESTMENTS)
3,070 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,277,870
Special Sales Tax Revenue Refunding Bonds, Series 2002,
5.250%, 12/01/20 - AMBAC Insured
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,936,743
Community Development Authority, GNMA Collateralized
Mortgage Revenue Refunding Bonds, Sharlo Apartments,
Series 2002A, 6.500%, 6/20/37
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 5,150 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ $ 5,448,546
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/32
3,400 Louisiana State, Gas Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 3,373,480
4.500%, 5/01/41 (WI/DD, Settling 11/02/06) - FGIC Insured
4,310 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 4,209,232
Residuals 660-1, 5.850%, 5/01/41 (WI/DD, Settling 11/02/06) -
FGIC Insured (IF)
495 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 539,075
Residuals 661, 6.597%, 5/01/39 (WI/DD, Settling 11/02/06) -
FSA Insured (IF)
4,195 Orleans Levee District, Louisiana, Levee District General 12/06 at 102.00 AAA 4,306,587
Obligation Bonds, Series 1986, 5.950%, 11/01/14 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,370 Total Louisiana 23,091,533
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.3% (0.8% OF TOTAL INVESTMENTS)
7,520 Maine Educational Loan Marketing Corporation, Student Loan No Opt. Call A2 7,520,000
Revenue Bonds, Subordinate Series 1994B-2, 6.250%, 11/01/06
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 3.0% (1.9% OF TOTAL INVESTMENTS)
2,905 Maryland Community Development Administration, Housing 1/07 at 102.00 Aa2 2,968,620
Revenue Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Housing 7/07 at 102.00 Aa2 2,978,474
Revenue Bonds, Series 1997A, 6.000%, 7/01/39 (Alternative
Minimum Tax)
50 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 53,386
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
2,210 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,272,875
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 (WI/DD, Settling 11/16/06) - MBIA Insured
6,800 Montgomery County Housing Opportunities Commission, 1/07 at 102.00 Aa2 6,954,224
Maryland, GNMA/FHA-Insured Multifamily Housing Revenue
Bonds, Series 1996B, 6.400%, 7/01/28 (Alternative
Minimum Tax)
2,315 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,418,805
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.125%, 7/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
17,180 Total Maryland 17,646,384
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.5% (1.0% OF TOTAL INVESTMENTS)
3,585 Massachusetts Development Finance Agency, Revenue Bonds, 3/15 at 100.00 A 3,681,867
Curry College, Series 2005A, 5.000%, 3/01/35 - ACA Insured
5,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 5,108,350
System Revenue Bonds, Senior Series 1997A, 5.000%, 1/01/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,585 Total Massachusetts 8,790,217
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.3% (4.6% OF TOTAL INVESTMENTS)
6,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 6,325,260
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 -
MBIA Insured
1,535 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/07 at 101.00 AAA 1,564,917
Bonds, Series 1997A, 5.000%, 7/01/27 (Pre-refunded
7/01/07) - MBIA Insured
8,915 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/07 at 101.00 AAA 9,069,497
Bonds, Series 1997A, 5.000%, 7/01/27 - MBIA Insured
5,400 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 AAA 5,445,792
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
Hancock Hospital Finance Authority, Michigan, FHA-Insured
Mortgage Hospital Revenue Bonds, Portage Health System
Inc., Series 1998:
425 4.625%, 8/01/18 - MBIA Insured 8/08 at 100.00 AAA 425,404
4,400 5.450%, 8/01/47 - MBIA Insured 8/08 at 100.00 AAA 4,522,408
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,249,800
Facilities Program, Series 2003II, 5.000%, 10/15/29 -
MBIA Insured
47
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 BB- $ 10,647,210
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
------------------------------------------------------------------------------------------------------------------------------------
42,175 Total Michigan 43,250,288
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.8% (0.5% OF TOTAL INVESTMENTS)
900 Minneapolis-St. Paul Housing Finance Board, Minnesota, 11/07 at 102.00 AAA 918,576
FNMA/GNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Bonds, Series 1997,
5.800%, 11/01/30 (Alternative Minimum Tax)
3,500 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,690,925
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,400 Total Minnesota 4,609,501
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,285 Jones County, Mississippi, Hospital Revenue Bonds, South 12/07 at 100.00 BBB+ (4) 1,307,616
Central Regional Medical Center, Series 1997,
5.350%, 12/01/10 (Pre-refunded 12/01/07)
1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,922,513
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
5,180 Mississippi, General Obligation Refunding Bonds, Series 2002A, No Opt. Call AA 5,985,904
5.500%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
8,340 Total Mississippi 9,216,033
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,000 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 3,151,050
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
2,000 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 2,073,480
Program, Series 2001A, 5.000%, 7/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,000 Total Missouri 5,224,530
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.7% (1.0% OF TOTAL INVESTMENTS)
9,000 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call AAA 9,768,330
Loan Program, Series 1993A-5A, 6.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.4% (2.8% OF TOTAL INVESTMENTS)
10,420 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,428,552
Bonds, Series 2002C, 5.500%, 6/15/18 (Pre-refunded
6/15/12) - MBIA Insured
4,500 Clark County School District, Nevada, General Obligation No Opt. Call AAA 4,999,500
School Improvement Bonds, Series 1991A, 7.000%, 6/01/10 -
MBIA Insured
7,000 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 7,439,390
Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 -
AMBAC Insured
5,425 Director of Nevada State Department of Business and Industry, No Opt. Call AAA 2,412,823
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 0.000%, 1/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,345 Total Nevada 26,280,265
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.1% (2.6% OF TOTAL INVESTMENTS)
1,100 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 1,229,338
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
880 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AAA 1,035,109
6.500%, 1/01/16 - MBIA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
300 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 352,653
2,345 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 2,756,571
13,470 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 14,316,454
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
3,995 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 4,559,454
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.750%, 6/01/39
------------------------------------------------------------------------------------------------------------------------------------
22,090 Total New Jersey 24,249,579
------------------------------------------------------------------------------------------------------------------------------------
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.0% (7.0% OF TOTAL INVESTMENTS)
$ 1,200 Hempstead Industrial Development Agency, New York, No Opt. Call BB+ $ 1,232,268
Resource Recovery Revenue Refunding Bonds, American
Ref-Fuel Company of Hempstead LP, Series 2001,
5.000%, 12/01/10 (Mandatory put 6/01/10)
11,825 New York City Transitional Finance Authority, New York, 5/08 at 101.00 AAA 12,140,018
Future Tax Secured Bonds, Fiscal Series 1998C,
5.000%, 5/01/26
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 1998C:
1,350 5.000%, 5/01/26 (Pre-refunded 5/01/08) 5/08 at 101.00 AAA 1,393,254
35 5.000%, 5/01/26 (Pre-refunded 5/01/08) 5/08 at 101.00 AAA 36,121
3,705 5.000%, 5/01/26 (Pre-refunded 5/01/08) 5/08 at 101.00 AAA 3,822,634
220 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AAA 239,074
Future Tax Secured Bonds, Fiscal Series 2000A,
5.875%, 11/01/16 (Pre-refunded 5/01/10)
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2000C:
3,630 5.875%, 11/01/16 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 3,947,226
5,000 5.500%, 11/01/24 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 5,373,050
New York Dorm Authority, State Personal Income Tax Revenue
Bonds, Education, Series 2006C:
1,515 5.000%, 12/15/31 (WI/DD, Settling 11/16/06) 12/16 at 100.00 AAA 1,626,322
3,035 5.000%, 12/15/35 (WI/DD, Settling 11/16/06) 12/16 at 100.00 AAA 3,247,602
1,195 New York State Medical Care Facilities Finance Agency, 2/07 at 100.00 AAA 1,203,963
FHA-Insured Mortgage Revenue Bonds, Hospital and
Nursing Home Projects, Series 1992B, 6.200%, 8/15/22
4,200 New York State Medical Care Facilities Finance Agency, 2/07 at 100.00 AA 4,226,754
FHA-Insured Mortgage Revenue Bonds, Kenmore Mercy
Hospital, Series 1995B, 6.150%, 2/15/35
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
10,800 5.500%, 6/01/16 6/10 at 100.00 AA- 11,433,420
2,500 5.500%, 6/01/18 6/12 at 100.00 AA- 2,713,875
5,000 New York State Urban Development Corporation, Service 1/11 at 100.00 AA- 5,341,300
Contract Revenue Bonds, Correctional and Youth Facilities,
Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11)
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 7,303,125
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 - MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
61,460 Total New York 65,280,006
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.6% (1.7% OF TOTAL INVESTMENTS)
2,445 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 2,588,742
of Participation, Correctional Facilities, Series 2004A,
5.000%, 2/01/21
2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 2,183,660
Revenue Bonds, Series 1992, 6.000%, 1/01/11 - MBIA Insured
10,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 10,781,400
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,445 Total North Carolina 15,553,802
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.3% (1.4% OF TOTAL INVESTMENTS)
9,000 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA 9,273,780
5.000%, 1/01/31 - FSA Insured
3,000 Franklin County, Ohio, Development Revenue Bonds, 10/09 at 101.00 A 3,170,490
American Chemical Society, Series 1999, 5.800%, 10/01/14
1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/07 at 101.00 Aa2 1,008,460
Mortgage Revenue Bonds, Hamilton Creek Apartments
Project, Series 1994A, 5.550%, 7/01/24 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total Ohio 13,452,730
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.7% (0.4% OF TOTAL INVESTMENTS)
320 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa 335,981
Revenue Bonds, Homeownership Loan Program,
Series 2000C-2, 6.200%, 9/01/28 (Alternative Minimum Tax)
49
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA (continued)
$ 3,340 Tulsa Industrial Authority, Oklahoma, Hospital Revenue No Opt. Call AAA $ 3,574,635
Refunding Bonds, Hillcrest Medical Center, Series 1996,
6.500%, 6/01/09 - CONNIE LEE/AMBA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
3,660 Total Oklahoma 3,910,616
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.3% (0.8% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Economic Development Financing Authority, 1/07 at 100.00 B+ 5,000,100
Senior Lien Resource Recovery Revenue Bonds, Northampton
Generating Project, Series 1994A, 6.400%, 1/01/09 (Alternative
Minimum Tax)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA 2,886,910
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
7,600 Total Pennsylvania 7,887,010
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 3.1% (2.0% OF TOTAL INVESTMENTS)
12,390 Puerto Rico, General Obligation and Public Improvement No Opt. Call AAA 14,514,017
Refunding Bonds, Series 1997, 6.500%, 7/01/13 - MBIA Insured
3,470 University of Puerto Rico, University System Revenue Bonds, 6/10 at 100.00 AAA 3,725,219
Series 2000O, 5.750%, 6/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,860 Total Puerto Rico 18,239,236
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.6% (2.3% OF TOTAL INVESTMENTS)
20,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 21,531,399
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.2% (2.7% OF TOTAL INVESTMENTS)
4,120 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 4,442,884
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/23 - MBIA Insured
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation 6/14 at 100.00 AAA 3,145,440
Fee Revenue Bonds, Series 2004A, 5.000%, 6/01/36 -
FGIC Insured
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Bonds, Series 1991:
5,000 6.250%, 1/01/21 - FGIC Insured No Opt. Call AAA 6,149,200
5,750 4.000%, 1/01/23 - MBIA Insured 1/07 at 100.00 AAA 5,533,973
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 5,580,889
Revenue Refunding Bonds, Series 1998A, 5.500%, 1/01/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,955 Total South Carolina 24,852,386
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,891,505
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,500 Metropolitan Government of Nashville-Davidson County, 5/08 at 102.00 AA 1,559,430
Tennessee, Electric System Revenue Bonds, Series 1998A,
5.200%, 5/15/23
680 Sullivan County Health Educational and Housing Facilities 9/16 at 100.00 BBB+ 715,156
Board, Tennessee, Revenue Bonds, Wellmont Health System,
Series 2006C, 5.250%, 9/01/36 (WI/DD, Settling 11/02/06)
------------------------------------------------------------------------------------------------------------------------------------
2,180 Total Tennessee 2,274,586
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.5% (11.2% OF TOTAL INVESTMENTS)
4,500 Alliance Airport Authority, Texas, Special Facilities Revenue 12/06 at 100.00 CCC+ 4,590,000
Bonds, American Airlines Inc., Series 1990, 7.500%, 12/01/29
(Alternative Minimum Tax)
4,000 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 4,192,280
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
3,345 Columbia-Brazoria Independent School District, Texas, 2/09 at 100.00 AAA 3,378,517
Unlimited Tax School Building Bonds, Series 1999,
4.750%, 2/01/25
2,250 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/14 at 100.00 AAA 2,340,225
Bonds, Series 2004B, 5.000%, 11/01/27 - FSA Insured
(Alternative Minimum Tax)
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 8,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA $ 8,702,000
Refunding and Improvement Bonds, Series 2001A,
5.875%, 11/01/19 - FGIC Insured (Alternative Minimum Tax)
6,000 Garland Housing Finance Corporation, Texas, Multifamily 12/11 at 101.00 N/R 6,483,840
Housing Revenue Bonds, Legacy Pointe Apartments,
Series 2000, 7.500%, 6/01/40 (Alternative Minimum Tax)
3,750 Harris County Flood Control District, Texas, General Obligation 10/13 at 100.00 AA+ 3,984,075
Bonds, Series 2003, 5.000%, 10/01/23
7,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 7,301,210
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
28,305 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 10,850,722
Bonds, Convention and Entertainment Project, Series 2001B,
0.000%, 9/01/28 - AMBAC Insured
7,500 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 9,411,975
Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 -
FSA Insured (ETM)
33,505 Leander Independent School District, Williamson and Travis 8/14 at 25.08 AAA 5,814,793
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/39
148 Midland Housing Finance Corporation, Texas, Single Family 11/06 at 102.00 Aaa 150,818
Mortgage Revenue Refunding Bonds, Series 1992A,
8.450%, 12/01/11
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds,
Series 2001:
2,300 5.500%, 2/15/21 2/11 at 100.00 AAA 2,458,907
2,400 5.500%, 2/15/23 2/11 at 100.00 AAA 2,565,816
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 3,136,108
3,000 5.125%, 2/15/31 8/11 at 100.00 Aaa 3,118,800
6,000 Raven Hills Higher Education Corporation, Texas, Student 8/12 at 100.00 Aaa 6,430,860
Housing Revenue Bonds, Angelo State University - Texan
Hall LLC, Series 2002A, 5.000%, 8/01/25 (Pre-refunded
8/01/12) - MBIA Insured
3,410 Retama Development Corporation, Texas, Special Facilities 12/12 at 100.00 AAA 4,066,255
Revenue Bonds, Retama Park Racetrack, Series 1993,
8.750%, 12/15/18 (Pre-refunded 12/15/12) (5)
1,800 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 1,974,870
System Revenue Refunding Bonds, Series 2002A,
5.750%, 10/01/21 - RAAI Insured
4,700 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,876,203
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/26
8,500 Travis County Health Facilities Development Corporation, 11/06 at 100.00 Aaa 8,510,880
Texas, Hospital Revenue Bonds, Daughters of Charity
National Health System, Series 1993B,
6.000%, 11/15/22 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
143,438 Total Texas 104,339,154
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 5.2% (3.3% OF TOTAL INVESTMENTS)
4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding 12/08 at 101.00 N/R 4,660,696
Bonds, South Davis Community Hospital Project,
Series 1998, 5.750%, 12/15/18
5,065 Intermountain Power Agency, Utah, Power Supply Revenue 1/07 at 102.00 A+ (4) 5,141,633
Bonds, Series 1996A, 6.150%, 7/01/14 (ETM)
40 Intermountain Power Agency, Utah, Power Supply Revenue 7/08 at 100.00 A+ 40,861
Bonds, Series 1996A, 6.150%, 7/01/14
5,820 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 6,018,753
Refunding Bonds, Series 1997B, 5.750%, 7/01/19
(Pre-refunded 7/01/07) - MBIA Insured
11,750 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 12,137,750
Refunding Bonds, Series 1997B, 5.750%, 7/01/19 -
MBIA Insured
555 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 564,724
Series 2000G, 5.875%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 2001C:
1,755 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 1,794,452
530 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aa2 545,725
------------------------------------------------------------------------------------------------------------------------------------
30,360 Total Utah 30,904,594
------------------------------------------------------------------------------------------------------------------------------------
51
Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.7% (1.2% OF TOTAL INVESTMENTS)
$ 8,190 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 AAA $ 8,541,924
Series 2002, 5.000%, 1/15/35 - AMBAC Insured
1,775 Virginia Transportation Board, Transportation Revenue Refunding 5/07 at 101.00 AA+ 1,805,512
Bonds, U.S. Route 58 Corridor Development Program,
Series 1997C, 5.125%, 5/15/19
------------------------------------------------------------------------------------------------------------------------------------
9,965 Total Virginia 10,347,436
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.0% (6.4% OF TOTAL INVESTMENTS)
1,855 Chelan County Public Utility District 1, Washington, Hydro 7/09 at 101.00 AA 1,973,813
Consolidated System Revenue Bonds, Series 1999A,
6.200%, 7/01/34 (Alternative Minimum Tax)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,761,700
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
1,655 Everett, Washington, Limited Tax General Obligation Bonds, 9/07 at 100.00 Aaa 1,673,751
Series 1997, 5.125%, 9/01/17 - FSA Insured
6,000 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 AAA 6,305,340
Bonds, Wanapum Hydroelectric Development, Series 2005A,
5.000%, 1/01/34 - FGIC Insured
1,500 Snohomish County School District 6, Mukilteo, Washington, No Opt. Call AAA 1,666,080
Unlimited Tax General Obligation and Refunding Bonds,
Series 1993, 5.700%, 12/01/12 - FGIC Insured
8,155 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 8,915,862
Bonds, Series 2001A, 5.750%, 1/01/20 (Pre-refunded
1/01/11) - FSA Insured
4,705 Tacoma, Washington, Sewerage Revenue Refunding Bonds, No Opt. Call AAA 5,113,253
Series 1994B, 8.000%, 12/01/08 - FGIC Insured
11,000 Washington Public Power Supply System, Revenue Refunding No Opt. Call Aaa 11,926,090
Bonds, Nuclear Project 3, Series 1993B, 7.000%, 7/01/09
4,700 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 4,884,193
Bonds, Nuclear Project 3, Series 1998A, 5.125%, 7/01/18
1,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 1,052,590
Bonds, Harrison Memorial Hospital, Series 1998,
5.000%, 8/15/28 - AMBAC Insured
2,000 Washington State Healthcare Facilities Authority, Revenue 8/08 at 102.00 AA 2,053,620
Bonds, Highline Community Hospital, Series 1998,
5.000%, 8/15/21 - RAAI Insured
5,500 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 5,733,695
Bonds, Swedish Health Services, Series 1998,
5.500%, 11/15/14 - AMBAC Insured
4,645 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 5,164,868
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
------------------------------------------------------------------------------------------------------------------------------------
55,215 Total Washington 59,224,855
------------------------------------------------------------------------------------------------------------------------------------
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 500 Wisconsin Health and Educational Facilities Authority, Revenue 12/06 at 102.00 AAA $ 510,705
Bonds, Medical College of Wisconsin Inc., Series 1996,
5.500%, 12/01/26 - MBIA Insured
7,500 Wisconsin Health and Educational Facilities Authority, 2/12 at 101.00 AAA 7,934,850
Revenue Bonds, Ministry Healthcare Inc., Series 2002A,
5.250%, 2/15/32 - MBIA Insured
5,000 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AAA 5,211,600
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
13,000 Total Wisconsin 13,657,155
------------------------------------------------------------------------------------------------------------------------------------
$ 979,577 Total Investments (cost $876,033,104) - 157.4% 931,973,278
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.2)% (1,631,856)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (57.2)% (338,400,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 591,941,422
====================================================================================================================
(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 (not covered by the report of
independent registered public accounting firm): 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 (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) The issuer has received a proposed adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
53
Statement of
ASSETS AND LIABILITIES October 31, 2006
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,407,807,079,
$903,835,825 and $876,033,104, respectively) $1,491,777,683 $ 966,062,669 $931,973,278
Cash 5,674,921 6,782,897 --
Receivables:
Interest 22,531,338 14,189,099 15,351,345
Investments sold 33,879,695 18,118,509 15,224,896
Other assets 118,134 72,286 106,591
------------------------------------------------------------------------------------------------------------------------------------
Total assets 1,553,981,771 1,005,225,460 962,656,110
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 2,685,501
Payable for investments purchased 50,106,139 22,422,246 28,819,909
Accrued expenses:
Management fees 762,318 504,746 478,786
Other 327,377 189,688 203,717
Preferred share dividends payable 185,076 127,760 126,775
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 51,380,910 23,244,440 32,314,688
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 525,000,000 347,000,000 338,400,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 977,600,861 $ 634,981,020 $591,941,422
====================================================================================================================================
Common shares outstanding 63,785,430 41,093,661 43,236,703
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.33 $ 15.45 $ 13.69
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 410,937 $ 432,367
Paid-in surplus 901,333,523 570,811,675 587,225,010
Undistributed (Over-distribution of) net investment income 3,232,245 585,998 335,211
Accumulated net realized gain (loss) from investments (11,573,365) 945,566 (51,991,340)
Net unrealized appreciation (depreciation) of investments 83,970,604 62,226,844 55,940,174
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 977,600,861 $634,981,020 $591,941,422
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Preferred 1,000,000 1,000,000 1,000,000
====================================================================================================================================
See accompanying notes to financial statements.
54
Statement of
OPERATIONS Year Ended October 31, 2006
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $74,756,951 $47,309,852 $46,044,034
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 8,935,735 5,920,769 5,623,015
Preferred shares - auction fees 1,313,150 866,583 846,391
Preferred shares - dividend disbursing agent fees 60,000 64,192 79,911
Shareholders' servicing agent fees and expenses 161,926 58,301 81,799
Custodian's fees and expenses 349,166 237,830 189,485
Directors' fees and expenses 33,759 21,402 19,928
Professional fees 158,198 45,272 167,529
Shareholders' reports - printing and mailing expenses 121,421 74,492 82,363
Stock exchange listing fees 23,531 15,160 15,950
Investor relations expense 139,416 92,516 88,866
Other expenses 55,295 55,055 48,717
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and legal fee refund 11,351,597 7,451,572 7,243,954
Custodian fee credit (28,609) (25,642) (92,167)
Legal fee refund (279,339) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 11,043,649 7,425,930 7,151,787
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 63,713,302 39,883,922 38,892,247
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (4,641,502) 941,224 (819,649)
Change in net unrealized appreciation (depreciation) of investments 35,531,581 19,612,632 15,946,063
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 30,890,079 20,553,856 15,126,414
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (16,526,117) (10,401,251) (10,652,875)
From accumulated net realized gains -- (492,501) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (16,526,117) (10,893,752) (10,652,875)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $78,077,264 $49,544,026 $43,365,786
====================================================================================================================================
See accompanying notes to financial statements.
55
Statement of
CHANGES IN NET ASSETS
PREMIUM INCOME (NPI) PREMIUM INCOME 2 (NPM) PREMIUM INCOME 4 (NPT)
----------------------------- ------------------------------ -----------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/06 10/31/05 10/31/06 10/31/05 10/31/06 10/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 63,713,302 $ 62,548,870 $ 39,883,922 $ 40,512,147 $ 38,892,247 $ 39,204,634
Net realized gain (loss) from
investments (4,641,502) 15,187,341 941,224 2,929,207 (819,649) (6,218,283)
Change in net unrealized
appreciation (depreciation)
of investments 35,531,581 (31,573,368) 19,612,632 (13,011,728) 15,946,063 2,030,792
Distributions to
Preferred Shareholders:
From net investment income (16,526,117) (10,275,032) (10,401,251) (6,593,605) (10,652,875) (6,741,182)
From accumulated net
realized gains -- -- (492,501) (333,998) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares
from operations 78,077,264 35,887,811 49,544,026 23,502,023 43,365,786 28,275,961
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (47,922,007) (57,980,964) (31,337,848) (38,210,760) (29,941,424) (35,043,351)
From accumulated net
realized gains -- -- (2,506,898) (3,990,843) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from distributions
to Common shareholders (47,922,007) (57,980,964) (33,844,746) (42,201,603) (29,941,424) (35,043,351)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares 30,155,257 (22,093,153) 15,699,280 (18,699,580) 13,424,362 (6,767,390)
Net assets applicable
to Common shares at the
beginning of year 947,445,604 969,538,757 619,281,740 637,981,320 578,517,060 585,284,450
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $977,600,861 $947,445,604 $634,981,020 $619,281,740 $591,941,422 $578,517,060
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 3,232,245 $ 3,994,053 $ 585,998 $ 2,445,548 $ 335,211 $ 2,054,325
====================================================================================================================================
See accompanying notes to financial statements.
56
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share New York Stock Exchange symbols are Nuveen Premium Income Municipal Fund,
Inc. (NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen
Premium Income Municipal Fund 4, Inc. (NPT). The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end, diversified
management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. When market
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair value based on yields or
prices of municipal bonds of comparable quality, type of issue, coupon, maturity
and rating, indications of value from securities dealers, evaluations of
anticipated cash flows or collateral and general market conditions. If the
pricing service is unable to supply a price for a municipal bond, each Fund may
use a market price or fair market value quote provided by a major broker/dealer
in such investments. If it is determined that the market price or fair market
value for an investment is unavailable or inappropriate, the Board of Directors
of the Funds, or its designee, may establish a fair value for the investment.
Temporary investments in securities that have variable rate and demand features
qualifying them as short-term investments are valued at amortized cost, which
approximates market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At October 31, 2006, Premium
Income (NPI), Premium Income 2 (NPM) and Premium Income 4 (NPT) had outstanding
when-issued/delayed delivery purchase commitments of $21,712,307, $4,645,943 and
$15,373,445, respectively.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of Fund shareholders. Legal fee refund presented on the
Statement of Operations for Premium Income (NPI) reflects a refund of workout
expanditures paid in a prior reporting period.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. All
monthly tax-exempt income dividends paid during the fiscal year ended October
31, 2006, have been designated Exempt Interest Dividends. Net realized capital
gains and ordinary income distributions paid by the Funds are subject to federal
taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
57
Notes to
FINANCIAL STATEMENTS (continued)
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,800 2,000 2,200
Series M2 2,000 -- --
Series T 3,800 3,000 2,000
Series T2 -- -- 1,328
Series W 3,800 2,000 1,680
Series W2 -- -- 520
Series TH 3,800 3,000 2,680
Series F 3,800 2,000 1,800
Series F2 -- 1,880 1,328
--------------------------------------------------------------------------------
Total 21,000 13,880 13,536
================================================================================
Derivative Financial Instruments
The Funds are authorized to invest in certain derivative financial instruments
including futures, forward, swap and option contracts, and other financial
instruments with similar characteristics including inverse floating rate
securities. During the fiscal year ended October 31, 2006, the Funds invested in
inverse floating rate securities for the purpose of enhancing portfolio yield.
Inverse floating rate securities are identified in the Portfolio of Investments
and are valued daily. The interest rate of an inverse floating rate security has
an inverse relationship to the interest rate of a short-term floating rate
security. Consequently, as the interest rate of the floating rate security
rises, the interest rate on the inverse floating rate security declines.
Conversely, as the interest rate of the floating rate security declines, the
interest rate on the inverse floating rate security rises. The price of an
inverse floating rate security will be more volatile than that of an otherwise
comparable fixed rate security since the interest rate is dependent on an
underlying fixed coupon rate or the general level of long-term interest rates as
well as the short-term interest paid on the floating rate security, and because
the inverse floating rate security typically bears the risk of loss of a greater
face value of an underlying bond.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
58
2. FUND SHARES
None of the Funds engaged in transactions in their own shares during the fiscal
year ended October 31, 2006, nor during the fiscal year ended October 31, 2005.
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the fiscal year ended October 31, 2006, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Purchases $220,041,875 $144,345,175 $100,416,039
Sales and maturities 224,759,544 156,101,530 86,017,820
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions. 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 October 31, 2006, the cost of investments was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Cost of investments $1,406,660,595 $903,429,071 $875,419,842
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2006, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------
Gross unrealized:
Appreciation $85,562,799 $62,717,344 $57,202,991
Depreciation (445,711) (83,746) (649,555)
--------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $85,117,088 $62,633,598 $56,553,436
================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2006, the Funds' tax year end,
were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Undistributed net tax-exempt income * $5,987,415 $2,669,892 $2,199,795
Undistributed net ordinary income ** 46,762 -- 5,337
Undistributed net long-term capital gains -- 945,566 --
================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 2, 2006, paid on November 1, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
59
Notes to
FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the tax years ended October 31,
2006 and October 31, 2005, was designated for purposes of the dividends paid
deduction as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
2006 (NPI) (NPM) (NPT)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $64,988,153 $42,229,150 $40,998,508
Distributions from net ordinary income ** 99,455 27,952 --
Distributions from net long-term capital gains *** -- 3,000,248 --
==========================================================================================================
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
2005 (NPI) (NPM) (NPT)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $68,878,627 $45,079,031 $42,030,160
Distributions from net ordinary income ** -- 126,711 --
Distributions from net long-term capital gains -- 4,324,841 --
==========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds designated as a long-term capital gain dividend, pursuant to
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended October 31, 2006.
At October 31, 2006, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
PREMIUM PREMIUM
INCOME INCOME 4
(NPI) (NPT)
--------------------------------------------------------------------------------
Expiration year:
2008 $ -- $ 2,151,015
2009 -- --
2010 695,347 18,079,555
2011 6,263,502 24,792,603
2012 -- --
2013 -- 6,161,830
2014 4,614,516 806,337
--------------------------------------------------------------------------------
Total $11,573,365 $51,991,340
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on
the amount of assets within each individual fund. This pricing structure enables
Nuveen fund shareholders to benefit from growth in the assets within each
individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
60
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of October 31, 2006, the complex-level fee rate was .1852%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Directors has
adopted a deferred compensation plan for independent Directors that enables
Directors to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
Financial Accounting Standards Board Statement on Financial Accounting Standards
No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of October 31, 2006, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENT
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2006, to shareholders of record
on November 15, 2006, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0590 $.0575 $.0545
================================================================================
61
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PREMIUM INCOME (NPI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 $14.85 $1.00 $ .49 $(.26) $ -- $1.23 $(.75) $ -- $(.75)
2005 15.20 .98 (.26) (.16) -- .56 (.91) -- (.91)
2004 14.87 1.01 .36 (.08) -- 1.29 (.96) -- (.96)
2003 14.87 1.05 (.03) (.07) -- .95 (.95) -- (.95)
2002 15.27 1.10 (.48) (.11) -- .51 (.91) -- (.91)
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 15.07 .97 .49 (.25) (.01) 1.20 (.76) (.06) (.82)
2005 15.53 .98 (.24) (.16) (.01) .57 (.93) (.10) (1.03)
2004 15.09 1.02 .48 (.08) -- 1.42 (.98) -- (.98)
2003 15.27 1.08 (.10) (.07) (.01) .90 (.98) (.10) (1.08)
2002 15.53 1.17 (.30) (.11) (.01) .75 (.96) (.05) (1.01)
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 13.38 .90 .35 (.25) -- 1.00 (.69) -- (.69)
2005 13.54 .91 (.10) (.16) -- .65 (.81) -- (.81)
2004 13.15 .94 .40 (.08) -- 1.26 (.87) -- (.87)
2003 13.46 .93 (.32) (.07) -- .54 (.85) -- (.85)
2002 14.22 1.00 (.80) (.11) -- .09 (.85) -- (.85)
====================================================================================================================================
Total Returns
----------------------
Based
Ending on
Common Based Common
Share Ending on Share Net
Net Asset Market Market Asset
Value Value Value* Value*
===========================================================================
PREMIUM INCOME (NPI)
---------------------------------------------------------------------------
Year Ended 10/31:
2006 $15.33 $14.13 7.52% 8.53%
2005 14.85 13.87 3.37 3.71
2004 15.20 14.30 8.82 9.00
2003 14.87 14.06 6.48 6.58
2002 14.87 14.11 5.51 3.47
PREMIUM INCOME 2 (NPM)
---------------------------------------------------------------------------
Year Ended 10/31:
2006 15.45 14.05 6.71 8.24
2005 15.07 13.97 2.98 3.71
2004 15.53 14.57 9.48 9.77
2003 15.09 14.25 6.57 6.07
2002 15.27 14.40 5.59 5.03
PREMIUM INCOME 4 (NPT)
---------------------------------------------------------------------------
Year Ended 10/31:
2006 13.69 12.80 9.89 7.72
2005 13.38 12.31 3.07 4.87
2004 13.54 12.74 8.98 9.90
2003 13.15 12.52 3.09 4.12
2002 13.46 12.97 .52 .76
===========================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------
Before Credit/Refund After Credit/Refund**
------------------------------ --------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================================
PREMIUM INCOME (NPI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 $977,601 1.19% 6.64% 1.16% 6.68% 15%
2005 947,446 1.19 6.44 1.18 6.45 20
2004 969,539 1.21 6.76 1.20 6.76 17
2003 948,312 1.22 7.02 1.22 7.02 24
2002 948,726 1.22 7.39 1.22 7.39 4
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 634,981 1.20 6.42 1.20 6.43 15
2005 619,282 1.20 6.40 1.19 6.40 15
2004 637,981 1.21 6.75 1.21 6.76 23
2003 619,916 1.22 7.06 1.21 7.07 21
2002 627,659 1.22 7.70 1.21 7.71 21
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 591,941 1.25 6.70 1.23 6.71 9
2005 578,517 1.26 6.63 1.22 6.66 7
2004 585,284 1.30 7.10 1.29 7.10 6
2003 568,776 1.36 6.95 1.35 6.96 17
2002 581,961 1.36 7.36 1.35 7.37 16
====================================================================================================================================
Preferred Shares at End of Period
------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
========================================================================
PREMIUM INCOME (NPI)
------------------------------------------------------------------------
Year Ended 10/31:
2006 $525,000 $25,000 $71,552
2005 525,000 25,000 70,116
2004 525,000 25,000 71,169
2003 525,000 25,000 70,158
2002 525,000 25,000 70,177
PREMIUM INCOME 2 (NPM)
------------------------------------------------------------------------
Year Ended 10/31:
2006 347,000 25,000 70,748
2005 347,000 25,000 69,617
2004 347,000 25,000 70,964
2003 347,000 25,000 69,663
2002 347,000 25,000 70,220
PREMIUM INCOME 4 (NPT)
------------------------------------------------------------------------
Year Ended 10/31:
2006 338,400 25,000 68,731
2005 338,400 25,000 67,739
2004 338,400 25,000 68,239
2003 338,400 25,000 67,019
2002 338,400 25,000 67,983
========================================================================
* Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
** After custodian fee credit and legal fee refund, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares, where applicable.
See accompanying notes to financial statements.
62-63 spread
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF PORTFOLIOS
PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS WITH THE FUNDS OR APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
----------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
----------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of 171
3/28/49 the Board Nuveen Investments, Inc., Nuveen
333 W. Wacker Drive and Board Investments, LLC, Nuveen Advisory
Chicago, IL 60606 Member Corp. and Nuveen Institutional
Advisory Corp.(3); formerly, Director
(1996-2006) of Institutional Capital
Corporation; Chairman and Director
(since 1997) of Nuveen Asset
Management; Chairman and Director of
Rittenhouse Asset Management, Inc.
(since 1999); Chairman of Nuveen
Investments Advisers Inc. (since
2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
----------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Lead Independent 1997 Private Investor and Management 171
8/22/40 Board member Consultant.
333 W. Wacker Drive
Chicago, IL 60606
----------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice 171
7/29/34 President of The Northern Trust
333 W. Wacker Drive Company; Director (since 2002)
Chicago, IL 60606 Community Advisory Board for Highland
Park and Highwood, United Way of the
North Shore; Director (since 2006) of
the Michael Rolfe Pancreatic Cancer
Foundation.
----------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine 171
10/22/48 Foundation, a private philanthropic
333 W. Wacker Drive corporation (since 1996); Director and
Chicago, IL 60606 Vice Chairman, United Fire Group, a
publicly held company; Adjunct Faculty
Member, University of Iowa; Director,
Gazette Companies; Life Trustee of Coe
College and Iowa College Foundation;
formerly, Director, Alliant Energy;
formerly, Director, Federal Reserve
Bank of Chicago; formerly, President
and Chief Operating Officer, SCI
Financial Group, Inc., a regional
financial services firm.
----------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean, Tippie College of Business, 171
3/6/48 University of Iowa (since June 2006);
333 W. Wacker Drive formerly, Dean and Distinguished
Chicago, IL 60606 Professor of Finance, School of
Business at the University of
Connecticut (2003-2006); previously,
Senior Vice President and Director of
Research at the Federal Reserve Bank
of Chicago (1995-2003); Director
(since 1997), Credit Research Center
at Georgetown University; Director
(since 2004) of Xerox Corporation;
Director, SS&C Technologies, Inc. (May
2005 - October 2005).
----------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, 169
10/28/42 JPMorgan Fleming Asset Management,
333 W. Wacker Drive President and CEO, Banc One Investment
Chicago, IL 60606 Advisors Corporation, and President,
One Group Mutual Funds; prior thereto,
Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc
One Investment Management Group; Board
of Regents, Luther College; member of
the Wisconsin Bar Association; member
of Board of Directors, Friends of
Boerner Botanical Gardens.
64
NUMBER OF PORTFOLIOS
PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS WITH THE FUNDS OR APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
----------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
----------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman of Miller-Valentine Partners 171
9/24/44 Ltd., a real estate investment
333 W. Wacker Drive company; formerly, Senior Partner and
Chicago, IL 60606 Chief Operating Officer (retired,
2004) of Miller-Valentine Group;
formerly, Vice President,
Miller-Valentine Realty; Board Member,
Chair of the Finance Committee and
member of the Audit Committee of
Premier Health Partners, the
not-for-profit company of Miami Valley
Hospital; Vice President, Dayton
Philharmonic Orchestra Association;
Board Member, Regional Leaders Forum,
which promotes cooperation on economic
development issues; Director, Dayton
Development Coalition; formerly,
Member, Community Advisory Board,
National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland
Federal Reserve Bank.
----------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and 171
12/29/47 Dorothy Donnelley Foundation (since
333 W. Wacker Drive 1994); prior thereto, Executive
Chicago, IL 60606 Director, Great Lakes Protection Fund
(from 1990 to 1994).
----------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and 171
1/22/50 Finance, Northwestern University
333 W. Wacker Drive (since 1997); Director (since 2003),
Chicago, IL 60606 Chicago Board Options Exchange;
formerly, Director (2003-2006),
National Mentor Holdings, a
privately-held, national provider of
home and community-based services;
Chairman (since 1997), Board of
Directors, Rubicon, a pure captive
insurance company owned by
Northwestern University; Director
(since 1997), Evanston Chamber of
Commerce and Evanston Inventure, a
business development organization.
NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
----------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
----------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), 171
9/9/56 Administrative Assistant Secretary and Associate
333 W. Wacker Drive Officer General Counsel, formerly, Vice
Chicago, IL 60606 President and Assistant General
Counsel, of Nuveen Investments, LLC;
Managing Director (2002-2004), General
Counsel (1998-2004) and Assistant
Secretary, formerly, Vice President of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3);
Managing Director (since 2002) and
Assistant Secretary and Associate
General Counsel, formerly, Vice
President (since 1997), of Nuveen
Asset Management; Managing Director
(since 2004) and Assistant Secretary
(since 1994) of Nuveen Investments,
Inc.; Assistant Secretary of NWQ
Investment Management Company, LLC.
(since 2002); Vice President and
Assistant Secretary of Nuveen
Investments Advisers Inc. (since
2002); Managing Director, Associate
General Counsel and Assistant
Secretary of Rittenhouse Asset
Management, Inc.; Assistant Secretary
of Symphony Asset Management LLC
(since 2003), Tradewinds NWQ Global
Investors, LLC and Santa Barbara Asset
Management, LLC; (since 2006);
Chartered Financial Analyst.
65
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
----------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
----------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), 171
9/22/63 formerly Vice President (since 2002);
333 W. Wacker Drive formerly, Assistant Vice President
Chicago, IL 60606 (since 2000) of Nuveen Investments,
LLC; Chartered Financial Analyst.
----------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 171
2/3/66 and Assistant Assistant Vice President (since 2000)
333 W. Wacker Drive Secretary of Nuveen Investments, LLC.
Chicago, IL 60606
----------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen 171
11/28/67 Investments, LLC and of Nuveen
333 W. Wacker Drive Investments, Inc. (since 1999); Vice
Chicago, IL 60606 President and Treasurer of Nuveen
Asset Management (since 2002) and of
Nuveen Investments Advisers Inc.
(since 2002); Assistant Treasurer of
NWQ Investment Management Company,
LLC. (since 2002); Vice President and
Treasurer of Nuveen Rittenhouse Asset
Management, Inc. (since 2003);
Treasurer of Symphony Asset Management
LLC (since 2003) and Santa Barbara
Asset Management, LLC (since 2006);
Assistant Treasurer, Tradewinds NWQ
Global Investors, LLC (since 2006);
formerly, Vice President and Treasurer
(1999-2004) of Nuveen Advisory Corp.
and Nuveen Institutional Advisory
Corp.(3); Chartered Financial Analyst.
----------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment 171
8/24/61 Operations, Nuveen Investments, LLC
333 W. Wacker Drive (since January 2005); formerly,
Chicago, IL 60606 Director, Business Manager, Deutsche
Asset Management (2003-2004),
Director, Business Development and
Transformation, Deutsche Trust Bank
Japan (2002-2003); previously, Senior
Vice President, Head of Investment
Operations and Systems, Scudder
Investments Japan, (2000-2002), Senior
Vice President, Head of Plan
Administration and Participant
Services, Scudder Investments
(1995-2002).
----------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant 171
9/24/64 and Secretary Secretary and Assistant General
333 W. Wacker Drive Counsel (since 1998) formerly,
Chicago, IL 60606 Assistant Vice President (since 1998)
of Nuveen Investments, LLC; Vice
President (2002-2004) and Assistant
Secretary (1998-2004) formerly,
Assistant Vice President of Nuveen
Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Vice
President and Assistant Secretary
(since 2005) of Nuveen Asset
Management.
----------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), 171
10/24/45 formerly, Vice President of Nuveen
333 W. Wacker Drive Investments, LLC, Managing Director
Chicago, IL 60606 (2004) formerly, Vice President
(1998-2004) of Nuveen Advisory Corp.
and Nuveen Institutional Advisory
Corp.(3); Managing Director (since
2005) of Nuveen Asset Management.
----------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), 171
3/2/64 formerly, Vice President of Nuveen
333 W. Wacker Drive Investments; Managing Director
Chicago, IL 60606 (1997-2004) of Nuveen Advisory Corp.
and Nuveen Institutional Advisory
Corp.(3); Managing Director (since
2001) of Nuveen Asset Management; Vice
President (since 2002) of Nuveen
Investments Advisers Inc.; Chartered
Financial Analyst.
66
NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
----------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
----------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 171
5/31/54 and Controller Controller (since 1998) of Nuveen
333 W. Wacker Drive Investments, LLC; formerly, Vice
Chicago, IL 60606 President and Funds Controller
(1998-2004) of Nuveen Investments,
Inc.; Certified Public Accountant.
----------------------------------------------------------------------------------------------------------------------------------
Walter M. Kelly Chief 2003 Vice President and Assistant Secretary 171
2/24/70 Officer and (since 2006) formerly, Assistant Vice
333 West Wacker Drive Vice President President and Assistant General
Chicago, IL 60606 Counsel (since 2003) of Nuveen
Investments, LLC; Vice President
(since 2006) and Assistant Secretary
(since 2003) formerly, Assistant Vice
President of Nuveen Asset Management;
previously, Associate (2001-2003) at
the law firm of Vedder, Price, Kaufman
& Kammholz.
----------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 171
3/22/63 Investments, LLC; Certified Public
333 W. Wacker Drive Accountant.
Chicago, IL 60606
----------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, 171
8/27/61 LLC (since 1999).
333 W. Wacker Drive
Chicago, IL 60606
----------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary 171
7/27/51 and Assistant and Assistant General Counsel of
333 W. Wacker Drive Secretary Nuveen Investments, LLC; formerly,
Chicago, IL 60606 Vice President and Assistant Secretary
of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Vice
President (since 2005) and Assistant
Secretary of Nuveen Investments, Inc.;
Vice President (since 2005) and
Assistant Secretary (since 1997) of
Nuveen Asset Management; Vice
President (since 2000), Assistant
Secretary and Assistant General
Counsel (since 1998) of Rittenhouse
Asset Management, Inc.; Vice President
and Assistant Secretary of Nuveen
Investments Advisers Inc. (since
2002); Assistant Secretary of NWQ
Investment Management Company, LLC
(since 2002), Symphony Asset
Management LLC (since 2003) and
Tradewinds NWQ Global Investors, LLC
and Santa Barbara Asset Management,
LLC (since 2006).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
67
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
The Board of Trustees is responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At a meeting held on May 23-25, 2006 (the "MAY MEETING"), the
Board of Trustees of the Funds, including the independent Trustees, unanimously
approved the continuance of the Investment Management Agreement between each
Fund and NAM (the "FUND ADVISER").
THE APPROVAL PROCESS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Adviser and the performance of
each Fund. To assist the Board in its evaluation of the advisory contract with
the Fund Adviser at the May Meeting, the independent Trustees received extensive
materials in advance of their meeting which outlined, among other things:
o the nature, extent and quality of services provided by the Fund
Adviser;
o the organization and business operations of the Fund Adviser,
including the responsibilities of various departments and key
personnel;
o the Fund's past performance, the Fund's performance compared to
funds of similar investment objectives compiled by an independent
third party and to customized benchmarks;
o the profitability of the Fund Adviser and certain industry
profitability analyses for unaffiliated advisers;
o the expenses of the Fund Adviser in providing the various services;
o the advisory fees (gross and net management fees) and total expense
ratios of the Fund, including comparisons of such fees and expenses
with those of comparable, unaffiliated funds based on information
and data provided by Lipper (the "PEER UNIVERSE") as well as
compared to a subset of funds within the Peer Universe (the "PEER
GROUP") to the respective Fund (as applicable);
o the advisory fees the Fund Adviser assesses to other types of
investment products or clients;
o the soft dollar practices of the Fund Adviser, if any; and
o from independent legal counsel, a legal memorandum describing, among
other things, the duties of the Trustees under the Investment
Company Act of 1940 (the "1940 ACT") as well as the general
principles of relevant state law in reviewing and approving advisory
contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and
compensation; the standards used by courts in determining whether
investment company boards of directors have fulfilled their duties;
and factors to be considered by the Board in voting on advisory
agreements.
At the May Meeting, the Fund Adviser made a presentation to and responded to
questions from the Board. After the presentations and after reviewing the
written materials, the independent Trustees met privately with their legal
counsel to review the Board's duties in reviewing advisory contracts and
consider the renewal of the advisory contracts. It is with this background that
the Trustees considered the advisory contract with the Fund Adviser. The
independent Trustees, in consultation with independent counsel, reviewed the
factors set out in judicial decisions and SEC directives relating to the renewal
of advisory contracts. As outlined in more detail below, the Trustees considered
all factors they believed relevant with respect to each Fund, including the
following: (a) the nature, extent and quality of the services to be provided by
the Fund Adviser; (b) the investment performance of the Fund and the Fund
Adviser; (c) the costs of the services to be provided and profitability of the
Fund Adviser and its affiliates; (d) the extent to which economies of scale
would be realized as the Fund grows; and (e) whether fee levels reflect these
economies of scale for the benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the Fund Adviser, the Trustees considered the nature, extent and
quality of the Fund Adviser's services. The Trustees reviewed materials
outlining, among other things, the Fund Adviser's organization and business; the
types of services that the Fund Adviser or its affiliates provide and are
expected to provide to the Funds; the performance record of the applicable Fund
(as described in further detail below); and any initiatives and enhancements
Nuveen has taken for its municipal fund product line. In connection with their
continued service as Trustees, the Trustees also have a good understanding of
the Fund Adviser's organization, operations and personnel. In this regard, the
Trustees are familiar with and have evaluated the professional experience,
qualifications and credentials of the Fund Adviser's personnel. The Trustees
further reviewed materials describing, among other things, the teams and
68
personnel involved in the investment, research, risk-management and operational
processes involved in managing municipal funds and their respective functions.
Given the Trustees' experience with the Funds and Fund Adviser, the Trustees
recognized the demonstrated history of care and depth of experience of the
respective personnel in managing these Funds. In this regard, the Trustees
considered the continued quality of the Fund Adviser's investment process in
making portfolio management decisions as well as additional refinements and
improvements adopted to the portfolio management processes noted below. With
respect to the services provided to municipal funds, including the Funds, the
Trustees noted that the Fund Adviser continues to make refinements to its
portfolio management process including, among other things, the increased use of
derivatives to enhance management of risk, additional analytical software for
research staff and improved municipal pricing processes.
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. The Fund
Adviser provides the Funds with such administrative and other services
(exclusive of, and in addition to, any such services provided by others for the
Funds) and officers and other personnel as are necessary for the operations of
the respective Fund. In connection with the review of the Investment Management
Agreement, the Trustees considered the extent and quality of these other
services which include, among other things, providing: product management (E.G.,
product positioning, performance benchmarking, risk management); fund
administration (E.G., daily net asset value pricing and reconciliation, tax
reporting, fulfilling regulatory filing requirements); oversight of third party
service providers; administration of board relations (E.G., organizing board
meetings and preparing related materials); compliance (E.G., monitoring
compliance with investment policies and guidelines and regulatory requirements);
and legal support (E.G., helping prepare and file registration statements,
amendments thereto, proxy statements and responding to regulatory requests
and/or inquiries). As the Funds operate in a highly regulated industry and given
the importance of compliance, the Trustees considered, in particular, the
additions of experienced personnel to the compliance teams and the enhancements
to technology and related systems to support the compliance activities for the
Funds (including a new reporting system for quarterly portfolio holdings).
In addition to the foregoing, the Trustees also noted the additional services
that the Fund Adviser or its affiliates provide to closed-end funds, including,
in particular, secondary market support activities. The Trustees recognized
Nuveen's continued commitment to supporting the secondary market for the common
shares of its closed-end funds through a variety of initiatives designed to
raise investor and analyst awareness and understanding of closed-end funds.
These efforts include providing advertising and other media relations programs,
continued contact with analysts, maintaining and enhancing its website for
closed-end funds, and targeted advisor communication programs. With respect to
funds that utilize leverage through the issuance of preferred shares, the
Trustees noted Nuveen's continued support for the preferred shares by
maintaining, among other things, an in-house preferred trading desk; designating
a product manager whose responsibilities include creating and disseminating
product information and managing relations in connection with the preferred
share auction; and maintaining systems necessary to test compliance with rating
agency requirements.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the respective
Funds under the Investment Management Agreement were of a high level and were
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISER
The Board considered the investment performance for each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"PERFORMANCE PEER GROUP") and portfolio level performance against customized
benchmarks, as described below. In evaluating the performance information, in
certain instances, the Trustees noted that the closest Performance Peer Group
for a fund still may not adequately reflect such fund's investment objectives,
strategies and portfolio duration, thereby limiting the usefulness of the
comparisons of such fund's performance with that of the Performance Peer Group.
With respect to state specific municipal funds, the Trustees recognized that
certain state municipal funds do not have a corresponding state specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. The closed-end state
municipal funds that do not have corresponding state-specific Performance Peer
Groups are from Arizona, Connecticut, Georgia, Maryland, Massachusetts,
Missouri, North Carolina, Ohio, Texas, and Virginia. Further, due to a lack of
state-specific unleveraged categories, certain unleveraged state municipal funds
are included in their leveraged state category (such as, the Nuveen California
Select Tax-Free Income Fund, Nuveen California Municipal Value Fund, Nuveen New
York Select Tax-Free Income Fund and Nuveen New York Municipal Value Fund).
In reviewing performance, the Trustees reviewed performance information
including, among other things, total return information compared with the Fund's
Performance Peer Group for the one-, three- and five-year periods (as
applicable) ending December 31, 2005. The Trustees also reviewed the Fund's
portfolio level performance (which does not reflect fund level fees and
expenses) compared to customized portfolio-level benchmarks for the one- and
three-year periods ending December 31, 2005 (as applicable). This analysis is
designed to assess the efficacy of investment decisions against appropriate
measures of risk and total return, within specific market segments. This
information supplements the Fund performance information provided to the Board
at each of their quarterly meetings. Based on their review, the Trustees
determined that the respective Fund's absolute and relative investment
performance over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses of a Fund, the Board
reviewed, among other things, the Fund's advisory fees (net and gross
management fees) and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as comparisons to
the gross management fees (before waivers), net management fees (after
waivers) and total expense ratios (before and after waivers) of comparable
funds in the Peer Universe and the Peer Group. The Trustees reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance analysis.
In certain cases, due to the small number of peers in the Peer Universe,
the Peer Universe and Peer Group
69
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
may be the same. Further, the Trustees recognized that in certain cases
the closest Peer Universe and/or Peer Group did not adequately reflect a
fund's investment objectives and strategies limiting the usefulness of
comparisons. In reviewing comparisons, the Trustees also considered the
size of the Peer Universe and/or Peer Group, the composition of the Peer
Group (including differences in the use of leverage and insurance) as well
as differing levels of fee waivers and/or expense reimbursements. In this
regard, the Trustees considered the fund-level and complex-wide breakpoint
schedules (described in further detail below) and any fee waivers and
reimbursements provided by Nuveen (applicable, in particular, for certain
funds launched since 1999). Based on their review of the fee and expense
information provided, the Trustees determined that each Fund's net total
expense ratio was within an acceptable range compared to peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further reviewed data comparing the advisory fees of the Fund
Adviser with fees the Fund Adviser charges to other clients, including
municipal managed accounts. In general, the fees charged for separate
accounts are somewhat lower than the fees assessed to the Funds. The
Trustees recognized that the differences in fees are attributable to a
variety of factors, including the differences in services provided,
product distribution, portfolio investment policies, investor profiles,
account sizes and regulatory requirements. The Trustees noted, in
particular, that the range of services provided to the Funds is more
extensive than that provided to managed separate accounts. As described in
further detail above, such additional services include, but are not
limited to, providing: product management, fund administration, oversight
of third party service providers, administration of board relations, and
legal support. Funds further operate in a highly regulated industry
requiring extensive compliance functions compared to the other investment
products. In addition to the costs of the additional services,
administrative costs may also be greater for funds as the average account
size for separate accounts is notably larger than the retail accounts of
funds. Given the differences in the product structures, particularly the
extensive services provided to closed-end municipal funds, the Trustees
believe such facts justify the different levels of fees.
3. PROFITABILITY OF FUND ADVISER
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees
reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profits margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen. The Trustees further reviewed the 2005
Annual Report for Nuveen Investments. In considering profitability, the
Trustees recognized the inherent limitations in determining profitability
as well as the difficulties in comparing the profitability of other
unaffiliated advisers. Profitability may be affected by numerous factors,
including the methodology for allocating expenses, the adviser's business
mix, the types of funds managed, the adviser's capital structure and cost
of capital. Further, individual fund or product line profitability of
other sponsors is generally not publicly available. Accordingly, the
profitability information that is publicly available from various
investment advisory or management firms may not be representative of the
industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In this regard, the methods of allocation used
appeared reasonable. The Trustees also, to the extent available, compared
Nuveen's profitability margins (including pre- and post-marketing profit
margins) with the profitability of various unaffiliated management firms. The
Trustees noted that Nuveen's profitability is enhanced due to its efficient
internal business model. The Trustees also recognized that while a number of
factors affect profitability, Nuveen's profitability may change as fee waivers
and/or expense reimbursement commitments of Nuveen to various funds in the
Nuveen complex expire. To keep apprised of profitability and developments that
may affect profitability, the Trustees have requested profitability analysis be
provided periodically during the year. Based on their review, the Trustees were
satisfied that the Fund Adviser's level of profitability was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to the Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser and its
affiliates are expected to receive that are directly attributable to their
management of the Funds, if any. See Section E below for additional information.
Based on their review of the overall fee arrangements of the applicable Fund,
the Trustees determined that the advisory fees and expenses of the respective
Fund were reasonable.
70
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Trustees have reviewed and considered the breakpoints in the advisory fee
schedules that reduce advisory fees as the applicable Fund's assets grow. In
addition to advisory fee breakpoints as assets in a respective Fund rise, after
lengthy discussions with management, the Board also approved a complex-wide fee
arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Trustees considered, among
other things, the historic and expected fee savings to shareholders as assets
grow, the amount of fee reductions at various asset levels, and that the
arrangement would extend to all funds in the Nuveen complex. The Trustees noted
that 2005 was the first full year to reflect the fee reductions from the complex
wide fee arrangement. The Trustees also considered the impact, if any, the
complex-wide fee arrangement may have on the level of services provided. Based
on their review, the Trustees concluded that the breakpoint schedule and
complex-wide fee arrangement currently was acceptable and desirable in providing
benefits from economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits the Fund Adviser or its affiliates may receive as a result of its
relationship with each Fund. In this regard, the Trustees considered revenues
received by affiliates of the Fund Adviser for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Trustees noted that NAM does not currently have any soft dollar arrangements and
does not pay excess brokerage commissions (or spreads on principal transactions)
in order to receive research services; however, the Fund Adviser may from time
to time receive and have access to research generally provided to institutional
clients.
F. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the Fund Adviser's fees are reasonable in light of the
services provided to each Fund, and that the renewal of the Investment
Management Agreements should be approved.
71
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
72
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the "Plan") as further described below effective with the
close of business on February 1, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, 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. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
73
Notes
74
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
MODIFIED DURATION: Duration is a measure of the expected period over which a
bond's principal and interest will be paid, and consequently is a measure of the
sensitivity of a bond's or bond Fund's value to changes when market interest
rates change. Generally, the longer a bond's or Fund's duration, the more the
price of the bond or Fund will change as interest rates change.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
75
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $154 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/CEF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-E-1006D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Premium Income Municipal Fund, Inc.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
----------------------------------------------------------------------------------------------------------------------
October 31, 2006 $ 43,097 $ 0 $ 400 $ 2,950
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
October 31, 2005 $ 40,369 $ 0 $ 566 $ 2,750
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS (1) SERVICE PROVIDERS
-----------------------------------------------------------------------------------------------------
October 31, 2006 $ 0 $ 2,200 $ 0
-----------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------
October 31, 2005 $ 0 $ 2,200 $ 0
-----------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation
for the Fund's tax return, the cost of which is borne by the Adviser. In
the aggregate, for all Nuveen funds for which Ernst & Young LLP serves as
independent registered public accounting firm, these fees amounted to
$275,000 in 2006 and $282,575 in 2005.
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
-----------------------------------------------------------------------------------------------------------------------
October 31, 2006 $ 3,350 $ 2,200 $ 0 $ 5,550
October 31, 2005 $ 3,316 $ 2,200 $ 0 $ 5,516
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Paul Brennan Nuveen Premium Income Municipal Fund, Inc.
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Paul Brennan Registered Investment Company 14 $11.082 billion
Other Pooled Investment Vehicles 0 $0.00
Other Accounts 1 $.6 million
* Assets are as of October 31, 2006. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of October 31, 2006, the S&P/Investortools Municipal Bond index was
comprised of 48,513 securities with an aggregate current market value of $
923,532 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. Each portfolio manager is eligible to receive
bonus compensation in the form of equity-based awards issued in securities
issued by Nuveen Investments, Inc. The amount of such compensation is dependent
upon the same factors articulated for cash bonus awards but also factors in his
long-term potential with the firm.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of the October 31, 2006, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
-----------------------------------------------------------------------------------------------------------------------------
DOLLAR
RANGE OF
DOLLAR EQUITY
RANGE OF SECURITIES
EQUITY BENEFICIALLY
SECURITIES OWNED IN
BENEFICIALLY THE
OWNED IN REMAINDER
FUND OF NUVEEN
FUNDS
MANAGED BY
NAM'S
MUNICIPAL
NAME OF PORTFOLIO INVESTMENT
MANAGER FUND TEAM
-----------------------------------------------------------------------------------------------------------------------------
Paul Brennan Nuveen Premium Income Municipal Fund, Inc. $10,001-$50,000 $10,001 - $50,000
-----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO:
Paul Brennan, CFA, CPA, became a portfolio manager of Flagship Financial Inc. in
1994, and subsequently became an Assistant Vice President of NAM upon the
acquisition of Flagship Resources Inc. by Nuveen in 1997. He became Vice
President of NAM in 2002. He currently manages investments for 15
Nuveen-sponsored investment companies.
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 registrants Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(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
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Premium Income Municipal Fund, Inc.
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: January 5, 2007
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: January 5, 2007
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 5, 2007
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.