UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05570
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Nuveen Premium Income Municipal Fund, Inc.
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31
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Date of reporting period: October 31, 2009
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
--------------------------------------------------------------------------------
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Annual Report
October 31, 2009
-------------------------- ------------------------ --------------------------
NUVEEN PREMIUM NUVEEN PREMIUM NUVEEN PREMIUM
INCOME MUNICIPAL INCOME MUNICIPAL INCOME MUNICIPAL
FUND, INC. FUND 2, INC. FUND 4, INC.
NPI NPM NPT
(OCTOBER 09)
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statements directly from Nuveen.
LOGO: NUVEEN INVESTMENTS
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year continues to recede but there is concern about the impact of a
reduction in official liquidity support programs. The major institutions that
are the linchpin of the international financial system have strengthened their
capital structures, but many still struggle with losses in their various
portfolios. Global trends include increasing trade and concern about the ability
of the U.S. government to address its substantial budgetary deficits.
While the fixed-income and equity markets have recovered from the lows recorded
in the first quarter of 2009, identifying those developments that will define
the future is never easy, and rarely is it more difficult than at present. A
fundamental component of a successful investment program is a commitment to
remain focused on long-term investment goals even during periods of heightened
market uncertainty. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of 2009 as part of the annual management
contract renewal process. I encourage you to read the description of this
process in the Annual Investment Management Agreement Approval Process section
of this report. Confirming the appropriateness of a long term investment
strategy is as important for our shareholders as it is for our professional
investment managers. For that reason, I again encourage you to remain in
communication with your financial consultant on this subject.
In September 2009, Nuveen completed the refinancing at par of all the auction
rate preferred shares issued by its taxable closed-end funds. On October 15,
Nuveen announced the first successful offering of an issue of MuniFund Term
Preferred Shares. This new form of preferred securities joins the Variable Rate
Demand Preferred securities as vehicles for refinancing existing municipal fund
auction rate preferred shares (ARPS). By the beginning of December 2009, six of
the leveraged municipal closed-end funds had redeemed all of their outstanding
ARPS. Nuveen remains committed to resolving the issues connected with
outstanding auction rate preferred shares. Please consult the Nuveen web site
for the most recent information on this issue and all recent developments on
your Nuveen Funds at: www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/S/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
December 21, 2009
Nuveen Investments 1
FUND MERGER AND MANAGEMENT CONSOLIDATION
Effective October 16, 2009, four Nuveen Florida closed-end Funds were
reorganized into three existing Nuveen national closed-end municipal bond Funds
(collectively, the "Reorganizations"). Each Reorganization was approved by the
shareholders of the respective Nuveen Florida and national Funds.
The closed-end Fund within this shareholder report (NPM) has been reorganized as
follows:
Nuveen Florida Investment Quality Municipal Fund (NQF) and
Nuveen Florida Quality Income Municipal Fund (NUF) into
Nuveen Premium Income Municipal Fund 2, Inc. (NPM)
Prior to the Reorganization, each Fund provided current income exempt from
regular federal income tax. The Florida Funds invested primarily in a portfolio
of municipal obligations issued by state and local government authorities within
the state of Florida or certain U.S. territories. NPM invests primarily in a
portfolio of municipal obligations issued by state and local government
authorities or certain U.S. territories. As the surviving Fund, the investment
objectives and strategies of NPM remain unchanged and the reorganized Fund will
pursue NPM's investment objectives and strategies
2 Nuveen Investments
PORTFOLIO MANAGERS' COMMENTS
NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. (NPI)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. (NPM)
NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. (NPT)
Portfolio managers Paul Brennan and John Wilhelm discuss U.S. economic and
municipal market conditions, key investment strategies and the twelve-month
performance of these three national Funds. With 20 years of investment
experience, including twelve years at Nuveen, Paul has managed NPI and NPM since
2006. John, who came to Nuveen in 2001 with 20 years of industry experience,
assumed portfolio management responsibility for NPT in March 2009.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED OCTOBER 31, 2009?
During this reporting period, municipal bond prices generally rose as strong
cash flows into municipal bond funds combined with a tighter supply of new
tax-exempt issuance to provide favorable supply and demand conditions. As the
period began, there continued to be considerable downward pressure on the
economy. In an effort to improve conditions, the Federal Reserve (Fed), lowered
the fed funds rate to a target range of zero to 0.25% in December 2008, the
lowest level on record. In February 2009, the federal government augmented its
efforts to boost the economy by passing a $787 billion stimulus package, which
joined the $700 billion financial industry rescue package it had passed in late
2008. In March 2009, the Fed announced that, in addition to maintaining the
current rate, it would buy $300 billion in long-term Treasury securities in an
effort to support private credit markets and up to an additional $750 billion in
agency mortgage-backed securities to bolster the credit and housing markets.
In recent months, the measures taken by the Fed and others to ease the economic
recession have produced some incipient signs of improvement. In the third
quarter of 2009, the U.S. economy, as measured by the U.S. gross domestic
product (GDP), posted positive growth (2.8% annualized) for the first time since
the second quarter of 2008. Housing prices also provided a bright spot between
June and September 2009 by recording four consecutive months of positive
returns, the first following three years of decline. At the same time, inflation
remained muted, as the Consumer Price Index (CPI), reflecting a 14% drop in
energy prices, fell 0.2% year-over-year as of October 2009. This marked the
seventh straight month that consumer prices dropped from their levels of a year
earlier, the longest such decline since 1954-1955. The core CPI (which excludes
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGERS AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS
EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND
OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE
ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
Nuveen Investments 3
food and energy) rose 1.7% over this twelve-month period, within the Fed's
unofficial objective of 2.0% or lower for this measure. However, the economy
continued to be stressed by weakness in the labor markets. October 2009 marked
the 22nd consecutive month of net job losses, with a total of 7.3 million jobs
lost since the recession began in December 2007. This is the biggest decline
since the Great Depression. The national unemployment rate for October 2009 was
10.2%, a 26-year high, up from 6.6% in October 2008.
Municipal market conditions began to show general signs of improvement in
mid-December 2008 and municipal bonds continued to improve throughout most of
2009. This trend was bolstered by the reduced supply of tax-exempt municipal
debt in the marketplace, due in part to the introduction of the Build America
Bond program in April 2009. Build America Bonds are a new class of taxable
municipal debt created as part of the February 2009 economic stimulus package.
These bonds offer municipal issuers a federal subsidy equal to 35% of the
security's interest payments, and therefore provide issuers with an attractive
alternative to traditional tax-exempt debt. As of October 31, 2009, taxable
Build America Bonds issuance totaled $48.5 billion, accounting for almost 20% of
new bonds issued in the municipal market during the period tax-exempt since
their introduction.
Over the twelve months ended October 31, 2009, municipal bond issuance
nationwide totaled $404.5 billion, a drop of approximately 10% compared with the
twelve-month period ended October 31, 2008. As mentioned earlier, demand for
tax-exempt bonds was strong, especially on the part of individual investors and
broker/dealers. The combination of lower tax-exempt supply and increased demand
provided support for municipal bond prices.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS?
During the majority of this twelve-month period, the tax-exempt municipal bond
market was characterized by strong demand, constrained supply and generally
improving valuations.
In this environment, our trading activity continued to focus on finding relative
value by taking a bottom-up approach to discover undervalued sectors and
individual credits with the potential to perform well over the long term. In NPI
and NPM, we generally purchased bonds with longer maturities in two categories:
essential services and health care. In essential services, our purchase included
bonds that financed water and sewer projects, utilities, schools and roads. We
also bought bonds in the health care sector, most of which were rated AA or A.
While the overall issuance of new tax-exempt bonds declined, supply was more
plentiful in the health care sector because hospitals generally do not qualify
for the Build America Bond program and so must continue to issue bonds
4 Nuveen Investments
in the tax-exempt municipal market. Supply in this sector was also boosted by
the fact that many hospitals were issuing fixed rate bonds in order to refinance
and retire outstanding debt that had initially been issued as variable rate
debt.
In NPT, our focus was on allocating more Fund assets to lower-rated bonds by
purchasing credits rated A and BBB and, to a lesser degree, non-rated and
sub-investment grade bonds. These bonds, which we purchased in both the primary
and secondary markets, tended to have maturities at the longer end of the yield
curve. From a sector perspective, we emphasized hospital and industrial
development revenue (IDR) bonds, both of which we believed to be significant
areas of opportunity.
Cash for new purchases during this period was generated by maturing or called
bonds. In addition, we sold bonds with shorter maturities in NPI and NPM,
including some pre-refunded holdings. In NPT, we sold holdings that we believed
did not have much opportunity for price appreciation, including bonds that were
pre-refunded and bonds that were close to their call dates. While there was
considerable issuance of Build America Bonds over the last half of this period,
these bonds do not represent appropriate investment opportunities for these
three Funds because their interest payments are considered taxable income.
All of these Funds continued to use inverse floating rate securities(1) as a
form of leverage for a variety of reasons, including duration management, income
enhancement and total return enhancements. During the first part of the period,
NPI also invested in additional types of derivative instruments(2) designed to
help shorten its duration. These derivatives were removed early in 2009.
ASSETS ACQUIRED IN THE REORGANIZATION
As mentioned on page two, on October 16, 2009, following shareholder approval,
the Nuveen Florida Investment Quality Municipal Fund (NQF) and the Nuveen
Florida Quality Income Municipal Fund (NUF) were reorganized into NPM. In the
Reorganization, NPM acquired substantially all of the assets and liabilities of
the these Funds in a tax-free transaction in exchange for an equal aggregate
value of newly-issued common shares.
In general the securities acquired through these Reorganizations matched the
investment parameters and strategies of NPM and therefore required little
immediate portfolio activity. However, the intention overtime is to reduce the
Fund's concentration of Florida holdings.
(1) An inverse floating rate security, also known as an inverse floater, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
(2) Each Fund may invest in derivative instruments such as forwards, futures,
options and swap transactions. For additional information on the
derivative instruments in which each Fund was invested during and at the
end of the reporting period, see the Portfolio of Investments, Financials
Statements and Notes to Financial Statements sections of this report.
Nuveen Investments 5
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE
FOR PERIODS ENDED 10/31/09
1-YEAR 5-YEAR 10-YEAR
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NPI 22.89% 3.38% 6.06%
NPM 28.38% 3.81% 5.89%
NPT 26.11% 3.92% 5.18%
Standard & Poor's (S&P) National Municipal
Bond Index(3) 14.15% 4.04% 5.61%
Lipper General Leveraged Municipal Debt
Funds Average(4) 26.02% 3.32% 6.02%
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For the twelve months ended October 31, 2009, the total returns on common share
net asset value (NAV) for all three of these Nuveen Funds exceeded the returns
for the Standard & Poor's (S&P) National Municipal Bond Index. NPM and NPT also
outperformed the average return for the Lipper General Leveraged Municipal Debt
Funds Average, while NPI lagged this measure for the same period.
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure and sector
allocation. In addition, leverage was an important positive factor affecting the
Funds' performances over this period. The impact of leverage is discussed in
more detail on page eight.
During this period, prices rose and yields declined for many municipal
securities, especially those at the long end of the municipal yield curve. As a
result, longer-term bonds generally outperformed credits with shorter
maturities, with bonds maturing in one to two years posting the weakest returns
for the period. In general, these Funds benefited from their exposure to the
longer part of the yield curve. As mentioned earlier, our duration strategies in
NPI included using derivative positions during the first part of this period to
synthetically shorten the duration of this Fund. These derivative positions
performed poorly during this period and had a negative impact on NPI's relative
total return performance.
While yield curve positioning and duration played important roles in
performance, credit exposure was also a significant factor. As noted earlier,
demand for municipal bonds increased among both institutional and individual
investors during this period. This increase was driven by a variety of factors,
including concerns about potential tax increases, the need to rebalance
portfolio allocations and a growing appetite for additional risk. At the same
time, the supply of new tax-exempt municipal securities declined. As investors
bid up municipal bond prices, bonds rated BBB or below and non-rated bonds
generally outperformed those rated AAA. In this environment, the Funds'
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(3) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market. This index
does not reflect any initial or ongoing expenses and is not available for
direct investment.
(4) The Lipper General Leveraged Municipal Debt Funds Average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 1-year, 54 funds; 5-year 52 funds; and 10-year, 38 funds. Fund
and Lipper returns assume reinvestment of dividends. You cannot invest
directly in a Lipper Average.
6 Nuveen Investments
performances benefited greatly from their allocations of bonds rated BBB or
below, and non-rated bonds.
Holdings that generally contributed positively to the Funds' performances
included industrial development revenue (IDR), housing and health care bonds. In
general, these Funds had relatively heavy weightings in health care and housing.
Education, water and sewer, transportation and special tax bonds also
outperformed the general municipal market during this period and zero coupon
bonds and credits backed by the 1998 master tobacco settlement agreement were
strong performers.
Pre-refunded bonds, which are often backed by U.S. Treasury securities and which
had been one of the top performing segments of the municipal bond market over
the past two years, performed especially poorly during this period. This was due
primarily to their shorter effective maturities and higher credit quality. Among
these three Funds, NPI held the largest allocation of pre-refunded bonds as of
October 31, 2009, while NPM had the smallest allocation. Other market segments
that detracted from relative performance included resource recovery, leasing
bonds and electric utility bonds. These were the only three revenue sectors that
failed to outperform the overall municipal market during this period. Many
general obligation bonds also struggled to keep pace with the overall municipal
market.
All three Funds were negatively impacted to varying degrees by their holdings of
AMBAC-Insured bonds issued for the Las Vegas monorail project, that links
various casinos on the Las Vegas strip. The project has struggled to build
ridership and turn a profit, and proposals to extend the monorail to McCarran
International Airport remained on hold. NPI had the heaviest exposure to these
bonds, which are now rated below investment grade, while NPM held the smallest
allocation.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative index was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total returns for common shareholders.
However, use of leverage also can expose common shareholders to additional
risk -- especially when market conditions are unfavorable. For example, as the
prices of securities held by a Fund decline, the negative impact of these
valuation changes on common share net asset value and common shareholder total
return is magnified by the use of leverage. Conversely, leverage may enhance
common share returns during periods when bond prices generally are rising.
Nuveen Investments 7
Over the early part of this period, leverage hampered the performance of the
Funds using this strategy. However, leverage made a significant positive
contribution to those Funds returns over much of 2009, which can be seen in
their twelve-month performance shown on page six.
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate preferred
shares issued by many closed-end funds, including these Nuveen Funds, have been
hampered by a lack of liquidity since February 2008. Since that time, more
auction rate preferred shares have been submitted for sale in their regularly
scheduled auctions than there have been offers to buy. In fact, offers to buy
have been almost completely non-existent since late February 2008. This means
that these auctions have "failed to clear," and that many, or all, of the
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This lack of liquidity in auction rate preferred
shares did not lower the credit quality of these shares, and auction rate
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions, as calculated in accordance with
the pre-established terms of the auction rate preferred shares. In the recent
market, with short-term rates at multi-generational lows, those maximum rates
also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Funds' Board of Directors authorized a
plan to use tender option bonds (TOBs), also known as floating rate securities,
to refinance a portion of the Funds' outstanding auction rate preferred shares.
The amount of TOBs that a Fund may use varies according to the composition of
each Fund's portfolio. Some Funds have a greater ability to use TOBs than
others. As of October 31, 2009, some Funds have issued Variable Rate Demand
Preferred Shares (VRDP), but these issuances have been limited since it has been
difficult to find liquidity facilities on economically viable terms given the
constrained credit environment. Some Funds also have issued MuniFund Term
Preferred (MTP), a fixed-rate form of Preferred stock with a mandatory
redemption period of five years. However, the Funds cannot provide any assurance
on when the remaining outstanding auction rate preferred shares might be
redeemed.
8 Nuveen Investments
As of October 31, 2009, the amount of auction rate preferred securities redeemed
by the Funds are as shown in the accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NPI $124,350,000 23.7%
NPM $108,475,000* 18.2%
NPT $ 79,350,000 23.4%
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* Includes auction rate preferred shares acquired from Reorganization of
Nuveen Investment Quality Municipal Fund (NQF) and Nuveen Florida Quality
Income Municipal Fund (NUF).
As of October 31, 2009, 75 out of the 88 Nuveen closed-end municipal funds that
had issued auction rate preferred have redeemed, at par, all or a portion of
shares. These redemptions bring the total amount of Nuveen's municipal
closed-end funds' auction rate preferred share redemptions to approximately $2.4
billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
Nuveen Investments 9
COMMON SHARE DIVIDEND AND SHARE PRICE INFORMATION
During the twelve-month reporting period ended October 31, 2009, NPI, NPM and
NPT each had three monthly dividend increases.
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, 2009, all of
the Funds in this report had positive UNII balances for both tax and financial
statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of October 31, 2009, NPM repurchased common shares as shown in the
accompanying table. Since the inception of this program, NPI and NPT have not
repurchased any of their outstanding common shares.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
--------------------------------------------------------------------------------
NPM 300,000* 0.7%
--------------------------------------------------------------------------------
* Does not include common shares repurchase activity of Nuveen Florida
Investment Quality Municipal Fund (NQF) or Nuveen Florida Quality Income
Municipal Fund (NUF) prior to Reorganization on October 16, 2009.
During the twelve-month reporting period, NPM's common shares were repurchased
at a weighted average price and a weighted average discount per common share as
shown in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NPM $11.32 13.90%
--------------------------------------------------------------------------------
10 Nuveen Investments
As of October 31, 2009, the Funds' common share prices were trading at (-)
discounts to their common share NAVs as shown in the accompanying table.
10/31/09 TWELVE-MONTH AVERAGE
FUND (-)DISCOUNT (-) DISCOUNT
--------------------------------------------------------------------------------
NPI -6.92% -6.72%
NPM -8.12% -8.32%
NPT -7.07% -9.03%
--------------------------------------------------------------------------------
Nuveen Investments 11
NPI Performance OVERVIEW | Nuveen Premium Income Municipal Fund, Inc.
as of October 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $12.77
--------------------------------------------------------------------------------
Common Share
Net Asset Value $13.72
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.92%
--------------------------------------------------------------------------------
Market Yield 6.58%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.14%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $875,341
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.50
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.87
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/18/88)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 24.61% 22.89%
--------------------------------------------------------------------------------
5-Year 3.56% 3.38%
--------------------------------------------------------------------------------
10-Year 6.73% 6.06%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 13.3%
--------------------------------------------------------------------------------
Texas 10.2%
--------------------------------------------------------------------------------
New York 8.4%
--------------------------------------------------------------------------------
Illinois 6.1%
--------------------------------------------------------------------------------
New Jersey 5.6%
--------------------------------------------------------------------------------
Florida 3.7%
--------------------------------------------------------------------------------
Massachusetts 3.6%
--------------------------------------------------------------------------------
South Carolina 3.5%
--------------------------------------------------------------------------------
Alabama 3.1%
--------------------------------------------------------------------------------
Minnesota 3.0%
--------------------------------------------------------------------------------
Pennsylvania 2.9%
--------------------------------------------------------------------------------
Louisiana 2.9%
--------------------------------------------------------------------------------
Colorado 2.9%
--------------------------------------------------------------------------------
District of Columbia 2.5%
--------------------------------------------------------------------------------
Wisconsin 2.5%
--------------------------------------------------------------------------------
Michigan 2.5%
--------------------------------------------------------------------------------
Nevada 2.4%
--------------------------------------------------------------------------------
Washington 2.2%
--------------------------------------------------------------------------------
Other 18.7%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 23.2%
--------------------------------------------------------------------------------
Health Care 16.4%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.3%
--------------------------------------------------------------------------------
Tax Obligation/General 11.6%
--------------------------------------------------------------------------------
Transportation 10.0%
--------------------------------------------------------------------------------
Utilities 5.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.2%
--------------------------------------------------------------------------------
Other 13.5%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 39%
AA 23%
A 24%
BBB 11%
BB or Lower 1%
N/R 2%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
Nov $ 0.06
Dec 0.06
Jan 0.06
Feb 0.06
Mar 0.062
Apr 0.062
May 0.068
Jun 0.068
Jul 0.068
Aug 0.068
Sep 0.07
Oct 0.07
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/08 $ 10.99
11.8
11.07
9.75
10.4
9.75
8.97
10.11
9.9
11.02
11.8
11.73
11.79
12.04
12.09
11.65
10.85
11.46
10.93
11.51
11.65
11.73
11.54
11.56
11.98
12.11
12.15
12.27
12.47
12.61
12.43
12.32
12.06
12.22
12.35
12.21
12.42
12.4
12.51
12.33
12.33
12.25
12.62
12.75
13.03
13.31
13.34
13.39
13.44
13.42
12.9
13
10/31/09 12.77
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
12 Nuveen Investments
NPM Performance OVERVIEW | Nuveen Premium Income Municipal Fund 2, Inc.
as of October 31, 2009
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 33%
AA 24%
A 28%
BBB 10%
BB or Lower 1%
N/R 4%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
Nov $ 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0635
Apr 0.0635
May 0.069
Jun 0.069
Jul 0.069
Aug 0.069
Sep 0.072
Oct 0.072
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/08 $ 10.16
10.8
10.94
9.21
9.9
9.21
8.72
9.67
9.83
10.71
11.44
11.49
11.2
11.4
11.71
11.69
10.91
11.36
10.74
11.49
11.63
11.73
11.93
11.93
12
12.26
12.26
12.61
12.55
12.6
12.5
12.47
12.05
12.31
12.452
12.6
12.77
12.61
12.82
12.67
12.79
12.64
12.8
13.14
13.36
13.5
13.74
13.82
13.82
13.73
13.1299
13.11
10/31/09 13.02
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) Percentage includes assets acquired in the Reorganization of Nuveen
Florida Investment Quality Municipal Fund (NQF) and Nuveen Florida Quality
Income Municipal Fund (NUF). Please see the Portfolio Managers' Comments
for an expanded discussion on the intention overtime to reduce the Fund's
concentration of Florida holdings.
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.02
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.17
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.12%
--------------------------------------------------------------------------------
Market Yield 6.64%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.22%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $1,003,366
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.67
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.33
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/23/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 35.00% 28.38%
--------------------------------------------------------------------------------
5-Year 3.84% 3.81%
--------------------------------------------------------------------------------
10-Year 5.51% 5.89%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Florida(2) 36.7%
--------------------------------------------------------------------------------
California 6.5%
--------------------------------------------------------------------------------
Illinois 5.4%
--------------------------------------------------------------------------------
New York 5.1%
--------------------------------------------------------------------------------
Texas 4.9%
--------------------------------------------------------------------------------
Washington 4.4%
--------------------------------------------------------------------------------
South Carolina 3.7%
--------------------------------------------------------------------------------
New Jersey 2.8%
--------------------------------------------------------------------------------
Massachusetts 2.7%
--------------------------------------------------------------------------------
Ohio 2.3%
--------------------------------------------------------------------------------
Louisiana 2.3%
--------------------------------------------------------------------------------
Alabama 2.1%
--------------------------------------------------------------------------------
Michigan 1.9%
--------------------------------------------------------------------------------
Other 19.2%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.9%
--------------------------------------------------------------------------------
Health Care 15.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.1%
--------------------------------------------------------------------------------
Tax Obligation/General 10.7%
--------------------------------------------------------------------------------
Transportation 9.9%
--------------------------------------------------------------------------------
Utilities 7.6%
--------------------------------------------------------------------------------
Water and Sewer 6.1%
--------------------------------------------------------------------------------
Other 13.2%
--------------------------------------------------------------------------------
Nuveen Investments 13
NPT Performance OVERVIEW | Nuveen Premium Income Municipal Fund 4, Inc.
as of October 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $11.69
--------------------------------------------------------------------------------
Common Share
Net Asset Value $12.58
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.07%
--------------------------------------------------------------------------------
Market Yield 6.78%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 9.42%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $543,812
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.04
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.19
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/19/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 35.01% 26.11%
--------------------------------------------------------------------------------
5-Year 4.13% 3.92%
--------------------------------------------------------------------------------
10-Year 5.42% 5.18%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 12.9%
--------------------------------------------------------------------------------
California 10.5%
--------------------------------------------------------------------------------
Illinois 9.8%
--------------------------------------------------------------------------------
Indiana 5.9%
--------------------------------------------------------------------------------
Florida 4.6%
--------------------------------------------------------------------------------
Michigan 4.4%
--------------------------------------------------------------------------------
Louisiana 3.3%
--------------------------------------------------------------------------------
New York 3.3%
--------------------------------------------------------------------------------
Alabama 3.1%
--------------------------------------------------------------------------------
Washington 3.1%
--------------------------------------------------------------------------------
Colorado 2.9%
--------------------------------------------------------------------------------
New Jersey 2.9%
--------------------------------------------------------------------------------
South Carolina 2.8%
--------------------------------------------------------------------------------
Ohio 2.2%
--------------------------------------------------------------------------------
Rhode Island 2.2%
--------------------------------------------------------------------------------
Wisconsin 1.9%
--------------------------------------------------------------------------------
North Carolina 1.9%
--------------------------------------------------------------------------------
Georgia 1.9%
--------------------------------------------------------------------------------
Pennsylvania 1.9%
--------------------------------------------------------------------------------
Other 18.5%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 19.6%
--------------------------------------------------------------------------------
Health Care 18.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.6%
--------------------------------------------------------------------------------
Tax Obligation/General 12.5%
--------------------------------------------------------------------------------
Utilities 7.9%
--------------------------------------------------------------------------------
Transportation 7.3%
--------------------------------------------------------------------------------
Water and Sewer 5.4%
--------------------------------------------------------------------------------
Other 13.6%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 34%
AA 20%
A 32%
BBB 7%
BB or Lower 2%
N/R 5%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
Nov $ 0.0515
Dec 0.0515
Jan 0.0515
Feb 0.0515
Mar 0.0575
Apr 0.0575
May 0.0615
Jun 0.0615
Jul 0.0615
Aug 0.0615
Sep 0.066
Oct 0.066
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/08 $ 9.33
9.83
9.55
8.46
8.7
8.33
7.95
8.75
8.89
9.75
10.15
10.12
10.17
10.16
10.2
10.214
9.49
9.88
9.57
10.07
10.06
10.09
10.13
10.15
10.26
10.44
10.65
10.96
11.06
11.09
10.99
11
10.66
10.83
10.84
10.77
11.1
11.04
11.19
11.19
11.32
11.26
11.47
11.55
11.92
12.27
12.53
12.37
12.61
12.35
11.88
11.89
10/31/09 11.69
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
14 Nuveen Investments
NPI | Shareholder Meeting Report
A special meeting of shareholders for NPM was held in the offices of
Nuveen Investments on May 15, 2009; at this meeting the shareholders were
asked to vote to approve an Agreement and Plan of Reorganization. The
meeting was subsequently adjourned to June 17, 2009, and additionally
adjourned to July 24, 2009, and to July 31, 2009.
The annual meeting of shareholders was held on July 28, 2009, in the Lobby
Conference Room, 333 West Wacker Drive, Chicago, IL 60606; at this meeting
the shareholders were asked to vote on the election of Board Members, the
elimination of Fundamental Investment Policies and the approval of new
Fundamental Investment Policies. The meeting was subsequently adjourned to
September 1, 2009, and then adjourned to October 13, 2009, for NPI and
NPT; the meeting for NPI and NPT additionally adjourned to November 24,
2009.
NPI
--------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES
AND BELOW INVESTMENT GRADE SECURITIES.
For 31,632,255 6,060
Against 2,006,669 794
Abstain 1,068,825 170
Broker Non-Votes 11,277,115 2,790
--------------------------------------------------------------------------------------------
Total 45,984,864 9,814
============================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND.
For 31,751,167 6,077
Against 1,846,875 778
Abstain 1,109,707 169
Broker Non-Votes 11,277,115 2,790
--------------------------------------------------------------------------------------------
Total 45,984,864 9,814
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES.
For 31,325,311 6,334
Against 2,250,891 522
Abstain 1,131,547 168
Broker Non-Votes 11,277,115 2,790
--------------------------------------------------------------------------------------------
Total 45,984,864 9,814
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO DERIVATIVES AND SHORT SALES.
For 31,156,062 6,082
Against 2,363,527 768
Abstain 1,188,160 174
Broker Non-Votes 11,277,115 2,790
--------------------------------------------------------------------------------------------
Total 45,984,864 9,814
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 31,213,835 6,061
Against 2,290,077 792
Abstain 1,203,837 171
Broker Non-Votes 11,277,115 2,790
--------------------------------------------------------------------------------------------
Total 45,984,864 9,814
============================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING
TO COMMODITIES.
For 31,142,246 6,155
Against 2,290,457 776
Abstain 1,275,046 93
Broker Non-Votes 11,277,115 2,790
--------------------------------------------------------------------------------------------
Total 45,984,864 9,814
============================================================================================
Nuveen Investments 15
NPI | Shareholder Meeting Report (continued)
NPI
--------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For 43,820,565 --
Withhold 1,905,362 --
--------------------------------------------------------------------------------------------
Total 45,725,927 --
============================================================================================
Robert P. Bremner
For 43,781,476 --
Withhold 1,944,451 --
--------------------------------------------------------------------------------------------
Total 45,725,927 --
============================================================================================
Jack B. Evans
For 43,782,977 --
Withhold 1,942,950 --
--------------------------------------------------------------------------------------------
Total 45,725,927 --
============================================================================================
William C. Hunter
For -- 8,903
Withhold -- 869
--------------------------------------------------------------------------------------------
Total -- 9,772
============================================================================================
David J. Kundert
For 43,806,809 --
Withhold 1,919,118 --
--------------------------------------------------------------------------------------------
Total 45,725,927 --
============================================================================================
William J. Schneider
For -- 8,913
Withhold -- 859
--------------------------------------------------------------------------------------------
Total -- 9,772
============================================================================================
Judith M. Stockdale
For 43,785,384 --
Withhold 1,940,543 --
--------------------------------------------------------------------------------------------
Total 45,725,927 --
============================================================================================
Carole E. Stone
For 43,771,314 --
Withhold 1,954,613 --
--------------------------------------------------------------------------------------------
Total 45,725,927 --
============================================================================================
Terence J. Toth
For 43,802,553 --
Withhold 1,923,374 --
--------------------------------------------------------------------------------------------
Total 45,725,927 --
============================================================================================
16 Nuveen Investments
NPM |
NPM
------------------------------------------------------------------------------------------------------------------------------------
MuniPreferred
shares voting Muni- Muni- Muni- Muni- Muni- Muni-
Common together Preferred - Preferred - Preferred - Preferred - Preferred - Preferred -
shares as a class Series M Series T Series W Series TH Series F Series F2
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE AN AGREEMENT
AND PLAN OF
REORGANIZATION (THE
"AGREEMENT"), PURSUANT TO
WHICH NUVEEN FLORIDA
INVESTMENT QUALITY
MUNICIPAL FUND AND NUVEEN
FLORIDA QUALITY INCOME
MUNICIPAL FUND (EACH AN
"ACQUIRED FUND" AND
COLLECTIVELY, THE
"ACQUIRED FUNDS") WOULD
(i) TRANSFER ALL OF ITS
ASSETS TO NUVEEN PREMIUM
INCOME MUNICIPAL FUND 2,
INC. (THE "ACQUIRING
FUND") IN EXCHANGE SOLELY
FOR SHARES OF COMMON
STOCK AND SHARES OF
MUNICIPAL AUCTION RATE
CUMULATIVE PREFERRED
STOCK ("MUNIPREFERRED")
OF THE ACQUIRING FUND AND
THE ACQUIRING FUND'S
ASSUMPTION OF ALL THE
LIABILITIES OF THE
ACQUIRED FUND, (ii)
DISTRIBUTE SUCH SHARES OF
THE ACQUIRING FUND TO THE
COMMON SHAREHOLDERS AND
MUNIPREFERRED
SHAREHOLDERS OF THE
ACQUIRED FUND AND (iii)
BE LIQUIDATED, DISSOLVED
AND TERMINATED IN
ACCORDANCE WITH THE
ACQUIRED FUND'S
DECLARATION OF TRUST (THE
"REORGANIZATION").
For 10,982 1,617 2,358 1,591 2,387 1,498 1,531
Against 117 17 23 -- 62 10 5
Abstain 243 -- 70 43 3 127 --
------------------------------------------------------------------------------------------------------------------------------------
Total 11,342 1,634 2,451 1,634 2,452 1,635 1,536
====================================================================================================================================
TO APPROVE THE ISSUANCE
OF ADDITIONAL COMMON
SHARES OF NUVEEN PREMIUM
INCOME MUNICIPAL FUND 2,
INC. IN CONNECTION WITH
THE REORGANIZATION.
For 20,989,753
Against 2,411,154
Abstain 900,018
------------------------------------------------------------------------------------------------------------------------------------
Total 24,300,925
====================================================================================================================================
Nuveen Investments 17
NPM | Shareholder Meeting Report (continued)
NPM
--------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL
POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES
AND BELOW INVESTMENT GRADE SECURITIES.
For 18,562,252 6,547
Against 1,386,153 692
Abstain 652,744 34
Broker Non-Votes 5,796,330 583
--------------------------------------------------------------------------------------------
Total 26,397,479 7,856
============================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND.
For 18,621,352 6,569
Against 1,307,530 661
Abstain 672,267 43
Broker Non-Votes 5,796,330 583
--------------------------------------------------------------------------------------------
Total 26,397,479 7,856
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO INVESTING IN OTHER INVESTMENT COMPANIES.
For 18,477,819 6,564
Against 1,438,169 666
Abstain 685,161 43
Broker Non-Votes 5,796,330 583
--------------------------------------------------------------------------------------------
Total 26,397,479 7,856
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO DERIVATIVES AND SHORT SALES.
For 18,437,403 6,608
Against 1,491,009 622
Abstain 672,737 43
Broker Non-Votes 5,796,330 583
--------------------------------------------------------------------------------------------
Total 26,397,479 7,856
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 18,466,978 6,567
Against 1,422,332 663
Abstain 711,839 43
Broker Non-Votes 5,796,330 583
--------------------------------------------------------------------------------------------
Total 26,397,479 7,856
============================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 18,450,050 6,567
Against 1,392,695 663
Abstain 758,404 43
Broker Non-Votes 5,796,330 583
--------------------------------------------------------------------------------------------
Total 26,397,479 7,856
============================================================================================
18 Nuveen Investments
NPM
--------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For 25,298,138 --
Withhold 1,099,341 --
--------------------------------------------------------------------------------------------
Total 26,397,479 --
============================================================================================
Robert P. Bremner
For 25,288,825 --
Withhold 1,108,654 --
--------------------------------------------------------------------------------------------
Total 26,397,479 --
============================================================================================
Jack B. Evans
For 25,296,413 --
Withhold 1,101,066 --
--------------------------------------------------------------------------------------------
Total 26,397,479 --
============================================================================================
William C. Hunter
For -- 7,421
Withhold -- 435
--------------------------------------------------------------------------------------------
Total -- 7,856
============================================================================================
David J. Kundert
For 25,298,319 --
Withhold 1,099,160 --
--------------------------------------------------------------------------------------------
Total 26,397,479 --
============================================================================================
William J. Schneider
For -- 7,421
Withhold -- 435
--------------------------------------------------------------------------------------------
Total -- 7,856
============================================================================================
Judith M. Stockdale
For 25,258,716 --
Withhold 1,138,763 --
--------------------------------------------------------------------------------------------
Total 26,397,479 --
============================================================================================
Carole E. Stone
For 25,281,581 --
Withhold 1,115,898 --
--------------------------------------------------------------------------------------------
Total 26,397,479 --
============================================================================================
Terence J. Toth
For 25,298,465 --
Withhold 1,099,014 --
--------------------------------------------------------------------------------------------
Total 26,397,479 --
============================================================================================
Nuveen Investments 19
NPT | Shareholder Meeting Report (continued)
NPT
--------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN MUNICIPAL SECURITIES AND BELOW INVESTMENT
GRADE SECURITIES.
For 23,846,383 5,079
Against 2,163,010 983
Abstain 835,020 143
Broker Non-Votes 6,760,112 1,637
--------------------------------------------------------------------------------------------
Total 33,604,525 7,842
============================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING
TO INVESTMENTS IN MUNICIPAL SECURITIES FOR
THE FUND.
For 23,983,910 5,073
Against 1,989,357 994
Abstain 871,147 138
Broker Non-Votes 6,760,111 1,637
--------------------------------------------------------------------------------------------
Total 33,604,525 7,842
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO INVESTING IN OTHER
INVESTMENT COMPANIES.
For 23,399,101 5,084
Against 2,561,248 966
Abstain 884,065 155
Broker Non-Votes 6,760,111 1,637
--------------------------------------------------------------------------------------------
Total 33,604,525 7,842
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO DERIVATIVES AND SHORT SALES.
For 23,375,780 5,073
Against 2,590,975 1,002
Abstain 877,658 130
Broker Non-Votes 6,760,112 1,637
--------------------------------------------------------------------------------------------
Total 33,604,525 7,842
============================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 22,886,412 5,033
Against 3,039,168 1,034
Abstain 918,833 138
Broker Non-Votes 6,760,112 1,637
--------------------------------------------------------------------------------------------
Total 33,604,525 7,842
============================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING
TO COMMODITIES.
For 22,785,608 5,057
Against 3,066,021 1,010
Abstain 992,784 138
Broker Non-Votes 6,760,112 1,637
--------------------------------------------------------------------------------------------
Total 33,604,525 7,842
============================================================================================
20 Nuveen Investments
NPT
--------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
John P. Amboian
For 29,780,113 --
Withhold 1,661,713 --
--------------------------------------------------------------------------------------------
Total 31,441,826 --
============================================================================================
Robert P. Bremner
For 29,768,391 --
Withhold 1,673,435 --
--------------------------------------------------------------------------------------------
Total 31,441,826 --
============================================================================================
Jack B. Evans
For 29,773,791 --
Withhold 1,668,035 --
--------------------------------------------------------------------------------------------
Total 31,441,826 --
============================================================================================
William C. Hunter
For -- 7,251
Withhold -- 572
--------------------------------------------------------------------------------------------
Total -- 7,823
============================================================================================
David J. Kundert
For 29,782,709 --
Withhold 1,659,117 --
--------------------------------------------------------------------------------------------
Total 31,441,826 --
============================================================================================
William J. Schneider
For -- 7,250
Withhold -- 573
--------------------------------------------------------------------------------------------
Total -- 7,823
============================================================================================
Judith M. Stockdale
For 29,765,332 --
Withhold 1,676,494 --
--------------------------------------------------------------------------------------------
Total 31,441,826 --
============================================================================================
Carole E. Stone
For 29,772,247 --
Withhold 1,669,579 --
--------------------------------------------------------------------------------------------
Total 31,441,826 --
============================================================================================
Terence J. Toth
For 29,764,862 --
Withhold 1,676,964 --
--------------------------------------------------------------------------------------------
Total 31,441,826 --
============================================================================================
Nuveen Investments 21
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, 2009, and the related
statements of operations and cash flows 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, 2009, 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, 2009,
the results of their operations and cash flows 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 US generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
December 28, 2009
22 Nuveen Investments
NPI | Nuveen Premium Income Municipal Fund, Inc.
| Portfolio of Investments
October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.9% (3.1% OF TOTAL INVESTMENTS)
$ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue Bonds, 6/10 at 102.00 A- $ 4,157,366
Series 2000, 6.125%, 12/01/16
Alabama Special Care Facilities Financing Authority, Revenue
Bonds, Ascension Health, Series 2006C-2:
1,435 5.000%, 11/15/36 (UB) 11/16 at 100.00 AA 1,440,884
6,000 5.000%, 11/15/39 (UB) 11/16 at 100.00 AA 6,049,440
4,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 AA 3,987,560
Bonds, Ascension Health, Series 2006D 5.000%, 11/15/39 (UB)
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
6,000 5.250%, 11/15/20 11/15 at 100.00 Baa2 5,780,820
1,300 5.000%, 11/15/30 11/15 at 100.00 Baa2 1,133,132
12,000 Birmingham Waterworks And Sewer Board, Alabama, Water and Sewer 1/17 at 100.00 AAA 11,142,240
Revenue Bonds, 4.500%, 1/01/43 - AMBAC Insured (UB)
2,890 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 2,629,871
Control Revenue Bonds, International Paper Company, Series
2005A, 5.000%, 6/01/25
5,020 DCH Health Care Authority, Alabama, Healthcare Facilities Revenue 6/12 at 101.00 A 5,055,592
Bonds, Series 2002, 5.250%, 6/01/18
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3(4) 1,141,610
Alabama, Revenue Bonds, Baptist Medical Center, Series 2004C,
5.250%, 11/15/29 (Pre-refunded 11/15/14)
----------------------------------------------------------------------------------------------------------------------------------
43,695 Total Alabama 42,518,515
----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.0% (1.3% OF TOTAL INVESTMENTS)
Anchorage, Alaska, General Obligation Refunding Bonds, Series
2003A:
2,000 5.250%, 9/01/17 (Pre-refunded 9/01/13) - FGIC Insured 9/13 at 100.00 AA (4) 2,281,820
2,035 5.250%, 9/01/18 (Pre-refunded 9/01/13) - FGIC Insured 9/13 at 100.00 AA (4) 2,321,752
5,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 5,173,900
Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31
(Pre-refunded 6/01/10)
10,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 7,959,315
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/32
----------------------------------------------------------------------------------------------------------------------------------
19,535 Total Alaska 17,736,787
----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.2% (0.8% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
500 5.250%, 12/01/24 12/15 at 100.00 BBB 481,815
660 5.250%, 12/01/25 12/15 at 100.00 BBB 631,633
1,355 Pima County Industrial Development Authority, Arizona, Lease 1/10 at 100.00 Aa3 1,362,547
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
4,100 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 3,506,935
Bonds, Series 2007, 5.000%, 12/01/37
4,130 University of Arizona, Certificates of Participation, Series 6/12 at 100.00 AA- 4,398,698
2002B, 5.125%, 6/01/18 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
10,745 Total Arizona 10,381,628
----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9% (0.6% OF TOTAL INVESTMENTS)
480 Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100.00 N/R (4) 507,432
Series 2000, 5.650%, 12/01/25 (Pre-refunded 12/01/10) - AMBAC
Insured
5,245 University of Arkansas, Fayetteville, Athletic Facilities 3/10 at 100.00 Aa3 5,245,997
Revenue Bonds, Razorback Stadium, Series 1999, 5.050%,
9/15/20 - AMBAC Insured
2,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 Baa1 1,875,880
Regional Medical Center, Series 2005B, 5.000%, 2/01/25
----------------------------------------------------------------------------------------------------------------------------------
7,725 Total Arkansas 7,629,309
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 23
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.9% (13.3% OF TOTAL INVESTMENTS)
$ 9,200 Alameda Corridor Transportation Authority, California, No Opt. Call A- $ 4,703,224
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/20 - AMBAC Insured
10,000 Anaheim Public Finance Authority, California, Public Improvement 9/17 at 100.00 A 8,585,600
Project Lease Bonds, Series 2007A-1, 4.375%, 3/01/37 - FGIC
Insured
4,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 4,533,440
Revenue Bonds, Series 2002A, 6.000%, 5/01/15
(Pre-refunded 5/01/12)
5,400 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa1 5,512,914
University of Southern California, Series 2005, 4.750%,
10/01/28 (UB)
1,500 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 1,448,925
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 3,574,755
7,000 5.000%, 3/01/33 3/13 at 100.00 A 6,499,150
5,425 California Health Facilities Financing Authority, Revenue No Opt. Call A 5,722,616
Bonds, Catholic Healthcare West, Series 2004I, 4.950%, 7/01/26
(Mandatory put 7/01/14)
8,560 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 AAA 8,586,365
Bonds, Cedars-Sinai Medical Center, Series 2005, 5.000%,
11/15/27
8,570 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 7,966,501
Bonds, Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
4,250 California Health Facilities Financing Authority, Revenue 10/19 at 100.00 AA 4,314,728
Bonds, Providence Health & Services, Series 2009B, 5.500%,
10/01/39
3,015 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 A+ 2,790,774
Bonds, Sutter Health, 5.000%, 11/15/42 (UB)
11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call A- 12,456,102
Department of Corrections, Series 1993E, 5.500%, 6/01/15
California Statewide Community Development Authority, Revenue
Bonds, Daughters of Charity Health System, Series 2005A:
1,640 5.250%, 7/01/30 7/15 at 100.00 BBB 1,506,176
4,730 5.000%, 7/01/39 7/15 at 100.00 BBB 3,946,996
5,000 California Statewide Community Development Authority, Revenue 7/18 at 100.00 AA- 5,158,900
Bonds, St. Joseph Health System, Series 2007A, 5.750%,
7/01/47 - FGIC Insured
7,130 California Statewide Community Development Authority, Revenue 5/18 at 100.00 A+ 7,553,255
Bonds, Sutter Health, Tender Option Bond Trust 3175, 13.438%,
11/15/48 (IF)
4,000 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call A+ 4,400,240
5.250%, 7/01/14
California, General Obligation Bonds, Series 2004:
1,160 5.125%, 2/01/25 2/14 at 100.00 A 1,178,676
10,000 5.125%, 2/01/26 2/14 at 100.00 A 10,138,300
3,575 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 3,764,046
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
4,890 Clovis Unified School District, Fresno County, California, No Opt. Call AA 1,808,958
General Obligation Bonds, Series 2006B, 0.000%, 8/01/26 - NPFG
Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
7,200 5.000%, 6/01/33 6/17 at 100.00 BBB 5,494,176
3,000 5.125%, 6/01/47 6/17 at 100.00 BBB 1,993,170
2,000 5.750%, 6/01/47 6/17 at 100.00 BBB 1,477,760
5,000 Kern Community College District, California, General Obligation No Opt. Call AAA 2,102,650
Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured
850 Martinez, California, Home Mortgage Revenue Bonds, Series No Opt. Call AAA 1,092,488
1983A, 10.750%, 2/01/16 (ETM)
17,420 Pomona, California, GNMA/FNMA Collateralized Securities No Opt. Call AAA 22,871,583
Program Single Family Mortgage Revenue Bonds, Series 1990A,
7.600%, 5/01/23 (ETM)
5,000 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 (4) 5,897,400
Revenue Bonds, Eisenhower Medical Center, Series 2004, 5.875%,
7/01/26 (Pre-refunded 7/01/14)
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,000 Redwood City School District, San Mateo County, California, 7/12 at 100.00 A+ $ 2,008,900
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 A+ 3,753,650
Revenue Bonds, Series 2003R, 5.000%, 8/15/22 - NPFG Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
400 5.000%, 9/01/21 9/15 at 102.00 Baa3 367,688
445 5.000%, 9/01/23 9/15 at 102.00 Baa3 399,659
3,500 San Diego Unified Port District, California, Revenue Bonds, 9/14 at 100.00 A+ 3,507,210
Series 2004B, 5.000%, 9/01/29 - NPFG Insured
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
10,450 0.000%, 1/15/31 - NPFG Insured No Opt. Call A 2,215,087
7,150 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 1,402,687
50,400 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 8,467,200
24,025 0.000%, 1/15/36 - NPFG Insured No Opt. Call A 3,462,964
----------------------------------------------------------------------------------------------------------------------------------
266,680 Total California 182,664,913
----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.5% (2.9% OF TOTAL INVESTMENTS)
2,500 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AA- 2,618,975
Sewerage Revenue Bonds, Series 2004, 5.000%, 12/01/21 - FGIC
Insured
690 Colorado Educational and Cultural Facilities Authority, Charter 9/15 at 100.00 A 700,233
School Revenue Bonds, Bromley School, Series 2005, 5.125%,
9/15/20 - SYNCORA GTY Insured
2,125 Colorado Health Facilities Authority, Revenue Bonds, Evangelical 6/16 at 100.00 A- 2,008,210
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 985,950
Medical Center, Series 2004, 5.000%, 9/01/25
800 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 A- 771,704
Valley Health Care, Series 2005F, 5.000%, 3/01/25
50 Colorado Housing Finance Authority, Single Family Program Senior 11/09 at 104.50 Aaa 50,776
Bonds, Series 1997C-2, 6.875%, 11/01/28 (Alternative Minimum
Tax)
375 Colorado Housing Finance Authority, Single Family Program Senior 4/10 at 105.00 AA 385,223
Bonds, Series 2000B-2, 7.250%, 10/01/31 (Alternative Minimum
Tax)
5,995 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 6,596,418
Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax)
19,810 Denver, Colorado, Excise Tax Revenue Bonds, Convention Center, 3/11 at 100.00 AAA 21,106,760
Series 2001A, 5.500%, 9/01/18 (Pre-refunded 3/01/11) - FSA
Insured
20,500 E-470 Public Highway Authority, Colorado, Senior Revenue Bonds, No Opt. Call A 4,345,385
Series 2000B, 0.000%, 9/01/32 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
53,845 Total Colorado 39,569,634
-----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,930 Connecticut, General Obligation Bonds, Series 2001C, 5.500%, No Opt. Call AA 2,287,822
12/15/16
2,310 Greater New Haven Water Pollution Control Authority, Connecticut, 11/15 at 100.00 A 2,347,237
Regional Wastewater System Revenue Bonds, Series 2005A, 5.000%,
11/15/30 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
4,240 Total Connecticut 4,635,059
----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.0% (2.5% OF TOTAL INVESTMENTS)
4,135 District of Columbia Housing Finance Agency, GNMA Collateralized 12/09 at 100.00 AAA 4,139,466
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 A+ 11,133,111
6.000%, 6/01/20 - NPFG Insured
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
14,105 0.000%, 4/01/24 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 47.66 A (4) 6,554,029
7,625 0.000%, 4/01/25 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 44.82 A (4) 3,332,506
16,665 0.000%, 4/01/32 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 29.23 A (4) 4,750,192
Nuveen Investments 25
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA (continued)
$ Washington DC Convention Center Authority, Dedicated Tax
Revenue Bonds, Residual Series 2007A:
2,130 11.581%, 10/01/30 - AMBAC Insured (IF) 10/16 at 100.00 AAA $ 1,977,471
3,335 11.538%, 10/01/30 - AMBAC Insured (IF) 10/16 at 100.00 AAA 3,096,181
----------------------------------------------------------------------------------------------------------------------------------
57,500 Total District of Columbia 34,982,956
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.7% (3.7% OF TOTAL INVESTMENTS)
4,225 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- 4,081,604
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 Aa3 8,339,680
Tampa International Airport, Series 2003A, 5.375%, 10/01/16 -
NPFG Insured (Alternative Minimum Tax)
5,400 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 3,743,280
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%,
4/01/30 (Alternative Minimum Tax)
19,750 Miami -Dade County Expressway Authority, Florida, Toll System 7/16 at 100.00 A 18,079,937
Revenue Bonds, Series 2006, 4.500%, 7/01/33 - AMBAC Insured
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A1 (4) 5,360,500
Revenue Bonds, Adventist Health System/Sunbelt Obligated Group,
Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
6,910 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 6,486,763
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42 (UB)
1,785 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AA- 1,816,005
5.000%, 10/01/28 - NPFG Insured
2,375 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aa3 2,431,406
Participation, Series 2005B, 5.000%, 8/01/22 - FSA Insured
----------------------------------------------------------------------------------------------------------------------------------
53,445 Total Florida 50,339,175
----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,625 Fulton County Development Authority, Georgia, Revenue Bonds, 5/14 at 100.00 Aa3 2,667,026
Georgia Tech Molecular Science Building, Series 2004, 5.250%,
5/01/24 - NPFG Insured
6,025 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA 6,375,294
Certificates, Series 2003, 5.250%, 1/01/20 - FSA Insured
4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call Aa3 5,721,945
Tax Revenue Refunding Bonds, Series 1992P, 6.250%,
7/01/20 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
13,495 Total Georgia 14,764,265
----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.3% (0.8% OF TOTAL INVESTMENTS)
10,000 Hawaii, General Obligation Bonds, Series 2003DA, 5.250%, 9/13 at 100.00 AA 11,034,300
9/01/21 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.9% (0.5% OF TOTAL INVESTMENTS)
5,000 Boise City, Idaho, Airport Revenue Certificates of 9/10 at 100.00 A1 5,002,000
Participation, Series 2000, 5.500%, 9/01/25 - FGIC Insured
(Alternative Minimum Tax)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
2,185 5.250%, 9/01/30 9/16 at 100.00 BBB- 1,960,295
600 5.250%, 9/01/37 9/16 at 100.00 BBB- 513,558
----------------------------------------------------------------------------------------------------------------------------------
7,785 Total Idaho 7,475,853
----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.5% (6.1% OF TOTAL INVESTMENTS)
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
8,890 0.000%, 12/01/16 - FGIC Insured No Opt. Call AA- 6,724,396
10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AA- 5,908,600
10,130 0.000%, 12/01/24 - FGIC Insured No Opt. Call AA- 4,656,457
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1999A:
15,000 0.000%, 12/01/21 - FGIC Insured No Opt. Call AA- 8,331,300
10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AA- 4,887,100
8,740 Illinois Development Finance Authority, Pollution Control 2/10 at 100.00 A 8,739,738
Revenue Refunding Bonds, Illinois Power Company, Series 1994A,
5.700%, 2/01/24 - NPFG Insured
26 Nuveen Investments
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 $ 1,052,919
3,000 5.250%, 11/15/23 5/14 at 100.00 A 2,996,970
985 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 818,811
Series 2006, 5.125%, 1/01/25
2,880 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 3,239,654
Series 2009A, 7.750%, 8/15/34
1,225 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,357,900
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
9,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman 2/10 at 100.00 Baa1 8,931,486
Health Systems, Series 1997, 5.250%, 8/01/27 - AMBAC Insured
1,000 Lombard Public Facilities Corporation, Illinois, Second Tier 1/16 at 100.00 AA 1,022,640
Conference Center and Hotel Revenue Bonds, Series 2005B,
5.250%, 1/01/30
10,040 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A 8,187,620
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 9,335,700
Bonds, McCormick Place Expansion Project, Series 1999A, 5.500%,
12/15/24 - FGIC Insured
3,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 3,972,390
Bonds, McCormick Place Hospitality Facility, Series 1996A,
7.000%, 7/01/26 (ETM)
3,000 Upper Illinois River Valley Development Authority, Healthcare 12/11 at 101.00 BBB+ 3,049,500
Facilities Revenue Bonds, Morris Hospital, Series 2001, 6.625%,
12/01/31
----------------------------------------------------------------------------------------------------------------------------------
107,960 Total Illinois 83,213,181
----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.3% (0.8% OF TOTAL INVESTMENTS)
2,005 Hamilton County Public Building Corporation, Indiana, First 8/14 at 100.00 AAA 2,113,511
Mortgage Bonds, Series 2004, 5.000%, 8/01/22 - FSA Insured
7,965 Wawasee Community School Corporation, Indiana, First Mortgage 1/12 at 101.00 AA+ (4) 8,861,461
Bonds, New Elementary and Remodeling Building Corporation,
Series 2000, 5.750%, 1/15/20 (Pre-refunded 1/15/12)
----------------------------------------------------------------------------------------------------------------------------------
9,970 Total Indiana 10,974,972
----------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,012,420
Medical Center, Series 2000, 6.250%, 7/01/25
3,250 Iowa Finance Authority, Industrial Remarketed Revenue Refunding No Opt. Call AAA 4,022,298
Bonds, Urbandale Hotel Corporation, Series 1989A, 8.500%,
8/01/16 (Alternative Minimum Tax) (ETM)
Iowa Tobacco Settlement Authority, Asset Backed Settlement
Revenue Bonds, Series 2005C:
10,000 5.500%, 6/01/42 6/15 at 100.00 BBB 7,294,200
2,000 5.625%, 6/01/46 6/15 at 100.00 BBB 1,470,540
----------------------------------------------------------------------------------------------------------------------------------
17,250 Total Iowa 14,799,458
----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7% (0.5% OF TOTAL INVESTMENTS)
6,000 Kansas Department of Transportation, Highway Revenue Bonds, 3/14 at 100.00 AAA 6,392,460
Series 2004A, 5.000%, 3/01/21 (UB)
----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4% (0.3% OF TOTAL INVESTMENTS)
Marshall County School District Finance Corporation, Kentucky,
School Building Revenue Bonds, Series 2004:
1,210 5.000%, 6/01/19 - AMBAC Insured 6/14 at 100.00 Aa3 1,230,764
1,270 5.000%, 6/01/20 - AMBAC Insured 6/14 at 100.00 Aa3 1,284,453
1,335 5.000%, 6/01/21 - AMBAC Insured 6/14 at 100.00 Aa3 1,343,090
----------------------------------------------------------------------------------------------------------------------------------
3,815 Total Kentucky 3,858,307
----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.5% (2.9% OF TOTAL INVESTMENTS)
2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 A+ (4) 3,281,794
Special Sales Tax Revenue Refunding Bonds, Series 2002, 5.250%,
12/01/19 (Pre-refunded 12/01/12) - AMBAC Insured
115 Louisiana Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa 118,229
Revenue Bonds, Series 2000A, 7.450%, 12/01/31 (Alternative
Minimum Tax)
Nuveen Investments 27
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ Louisiana Public Facilities Authority, Extended Care Facilities
Revenue Bonds, Comm-Care Corporation Project, Series 1994:
485 11.000%, 2/01/14 (ETM) No Opt. Call N/R(4) $ 585,419
4,330 11.000%, 2/01/14 (ETM) No Opt. Call N/R(4) 5,225,617
2,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 1,979,360
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
5,800 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 5,453,392
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA 1,234,080
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA 2,269,825
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA 2,575,075
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2006A:
930 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AA 914,051
10,105 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 9,474,953
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
450 5.500%, 5/15/30 5/11 at 101.00 BBB 451,733
6,675 5.875%, 5/15/39 5/11 at 101.00 BBB 6,041,209
----------------------------------------------------------------------------------------------------------------------------------
39,715 Total Louisiana 39,604,737
----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.0% (0.7% OF TOTAL INVESTMENTS)
2,200 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 1,971,772
Revenue Bonds, Series 2006A, 5.250%, 9/01/27 - SYNCORA GTY
Insured
3,560 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 3,364,342
Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%,
7/01/36 - NPFG Insured
3,600 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 3,625,884
Multifamily Housing Development Bonds, Series 2000B, 6.200%,
7/01/30 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
9,360 Total Maryland 8,961,998
----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.7% (3.6% OF TOTAL INVESTMENTS)
840 Massachusetts Bay Transportation Authority, Assessment Bonds, 7/10 at 100.00 AAA 852,340
Series 2000A, 5.250%, 7/01/30
Massachusetts Bay Transportation Authority, Assessment Bonds,
Series 2000A:
7,900 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1(4) 8,161,569
1,260 5.250%, 7/01/30 (Pre-refunded 7/01/10) 7/10 at 100.00 Aa1(4) 1,301,719
7,930 Massachusetts Housing Finance Agency, Rental Housing Mortgage 1/11 at 100.00 N/R 7,856,410
Revenue Bonds, Series 2001A, 5.850%, 7/01/35 - AMBAC Insured
(Alternative Minimum Tax)
2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/09 at 101.00 BBB 2,715,701
Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A,
5.450%, 12/01/12 (Alternative Minimum Tax)
13,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan 8/16 at 100.00 AAA 12,999,220
Program Bonds, 4.375%, 8/01/36 (UB)
5,960 Massachusetts Water Resources Authority, General Revenue Bonds, 8/17 at 100.00 AA+ 6,470,236
Series 2005A, 5.250%, 8/01/25 - NPFG Insured
5,535 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 AAA 5,115,724
4.500%, 8/01/46 - FSA Insured (UB)
3,820 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (4) 4,308,463
Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC
Insured
----------------------------------------------------------------------------------------------------------------------------------
49,070 Total Massachusetts 49,781,382
----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.9% (2.5% OF TOTAL INVESTMENTS)
Detroit, Michigan, General Obligation Bonds, Series 2003A:
3,565 5.250%, 4/01/22 - SYNCORA GTY Insured 4/13 at 100.00 BB 2,898,951
1,275 5.250%, 4/01/23 - SYNCORA GTY Insured 4/13 at 100.00 BB 1,025,559
3,000 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BB+ 2,421,210
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
6,600 Michigan Housing Development Authority, Limited Obligation 1/10 at 100.00 AAA 6,603,762
Multifamily Mortgage Revenue Refunding Bonds, Forest Hills
Regency Square Project, Series 1999A, 5.750%, 7/01/29
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 10,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 A+ $ 10,078,300
Facilities Program, Series 2003II, 5.000%, 10/15/23 - NPFG
Insured
4,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 Aa2 3,994,520
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB)
850 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 656,940
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
6,390 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/12 at 100.00 A 6,477,671
Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 - FGIC
Insured (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
35,680 Total Michigan 34,156,913
----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.8% (3.0% OF TOTAL INVESTMENTS)
13,650 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A2 13,765,616
Inc., Series 2004, 4.950%, 7/01/22
2,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 N/R (4) 2,278,420
Facilities Revenue Bonds, Benedictine Health System - St.
Mary's Duluth Clinic, Series 2004, 5.375%, 2/15/22
(Pre-refunded 2/15/14)
Eden Prairie, Minnesota, GNMA Collateralized Multifamily
Housing Revenue Bonds, Rolling Hills Project, Series 2001A:
1,000 6.150%, 8/20/31 8/11 at 105.00 Aaa 1,067,260
2,000 6.200%, 2/20/43 8/11 at 105.00 Aaa 2,130,060
90 Minnesota Agricultural and Economic Development Board, 11/09 at 100.00 A 90,014
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 1997A, 5.750%, 11/15/26 - NPFG
Insured
1,500 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,553,775
Series 2004A, 5.250%, 10/01/24
1,545 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 1,486,522
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
16,090 St. Paul Housing and Redevelopment Authority, Minnesota, Sales 11/15 at 103.00 AAA 19,347,578
Tax Revenue Refunding Bonds, Civic Center Project, Series
1996, 7.100%, 11/01/23 - FSA Insured
----------------------------------------------------------------------------------------------------------------------------------
37,875 Total Minnesota 41,719,245
----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.8% (0.5% OF TOTAL INVESTMENTS)
6,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 7,001,569
Revenue Bonds, Baptist Memorial Healthcare, Series 2004,
5.000%, 9/01/24 (UB)
----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.7% (1.1% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, Revenue 2/14 at 100.00 N/R 1,881,180
Bonds, Lutheran Senior Services - Heisinger Project, Series
2004, 5.250%, 2/01/24
500 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 477,785
Facilities Revenue Bonds, Hannibal Regional Hospital, Series
2006, 5.000%, 3/01/22
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
1,565 6.000%, 6/01/20 No Opt. Call A 1,672,437
1,660 5.000%, 6/01/35 6/15 at 100.00 A 1,488,041
1,295 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA- 1,324,125
Bonds, SSM Healthcare System, Series 2001A, 5.250%, 6/01/21 -
AMBAC Insured
Missouri Health and Educational Facilities Authority, Revenue
Bonds, SSM Healthcare System, Series 2001A:
205 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA-(4) 222,003
1,500 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA-(4) 1,624,410
4,150 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA-(4) 4,494,201
1,575 Missouri Housing Development Commission, Single Family Mortgage 3/10 at 102.00 AAA 1,592,561
Revenue Bonds, Homeownership Loan Program, Series 1999B-1,
6.700%, 9/01/30 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
14,450 Total Missouri 14,776,743
----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,620 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 2,462,383
Revenue Bonds, Nebraska City 2, Series 2006A, 19.714%,
2/01/49 - AMBAC Insured (IF)
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 29
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.8% (2.4% OF TOTAL INVESTMENTS)
$ 10,410 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AA (4) $ 11,605,276
Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) - NPFG
Insured
15,000 Clark County, Nevada, General Obligation Bank Bonds, Southern 6/11 at 100.00 AA+ (4) 16,076,550
Nevada Water Authority Loan, Series 2001, 5.250%, 6/01/26
(Pre-refunded 6/01/11) - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call Caa2 281,865
12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 2,460,120
2,700 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A 3,031,371
Bonds, Series 2009A, 8.000%, 6/15/30
----------------------------------------------------------------------------------------------------------------------------------
46,535 Total Nevada 33,455,182
----------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.0% (0.0% OF TOTAL INVESTMENTS)
405 New Hampshire Housing Finance Authority, Single Family Mortgage 1/10 at 100.00 Aa2 405,397
Acquisition Revenue Bonds, Series 1996B, 6.400%, 1/01/27
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 8.8% (5.6% OF TOTAL INVESTMENTS)
10,150 Delaware River Port Authority, Pennsylvania and New Jersey, 1/10 at 100.00 AAA 10,166,545
Revenue Bonds, Port District Project, Series 1999B, 5.625%,
1/01/26 - FSA Insured
8,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 A1 (4) 8,408,800
Obligation Guaranteed Lease Revenue Bonds, County Correctional
Facility Project, Series 2000, 6.000%, 10/01/25 (Pre-refunded
10/01/10) - FGIC Insured
470 Middlesex County Improvement Authority, New Jersey, Senior No Opt. Call B3 282,179
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- 3,849,665
2,000 5.250%, 9/01/26 9/15 at 100.00 AA- 2,093,880
300 New Jersey Educational Facilities Authority Revenue Refunding 6/19 at 100.00 Baa2 338,964
Bonds, University of Medicine and Dentistry of New Jersey Issue,
Series 2009 B, 7.500%, 12/01/32
800 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 780,464
Jersey, Revenue Bonds, Saint Peters University Hospital, Series
2007, 5.750%, 7/01/37
440 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/10 at 100.00 Aaa 440,233
Program Revenue Bonds, Series 1997U, 5.850%, 4/01/29 - NPFG
Insured (Alternative Minimum Tax)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
5,410 5.500%, 6/15/20 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 6,187,092
9,250 5.500%, 6/15/23 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 10,578,670
3,850 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,283,318
System Bonds, Series 2006A, 5.250%, 12/15/20
New Jersey Turnpike Authority, Revenue Bonds, Series 2000A:
3,915 6.000%, 1/01/14 - NPFG Insured (ETM) No Opt. Call A+ (4) 4,583,682
7,585 6.000%, 1/01/14 - NPFG Insured (ETM) No Opt. Call A+ (4) 8,880,518
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A+ 2,656,300
5.000%, 1/01/19 - FGIC Insured
9,130 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 9,613,068
5.000%, 1/01/25 - FSA Insured (UB)
4,465 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 4,013,678
Settlement Asset-Backed Bonds, Series 2007-1A, 4.500%, 6/01/23
----------------------------------------------------------------------------------------------------------------------------------
71,920 Total New Jersey 77,157,056
----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
425 New Mexico Mortgage Finance Authority, Single Family Mortgage 3/10 at 102.50 AAA 430,308
Program Bonds, Series 2000D-2, 6.850%, 9/01/31 (Alternative
Minimum Tax)
5,585 Santa Fe County, New Mexico, Correctional System Gross Receipts No Opt. Call AAA 6,383,990
Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 - FSA Insured
----------------------------------------------------------------------------------------------------------------------------------
6,010 Total New Mexico 6,814,298
----------------------------------------------------------------------------------------------------------------------------------
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.2% (8.4% OF TOTAL INVESTMENTS)
Dormitory Authority of the State of New York, Revenue Bonds,
University of Rochester, Series 2004A:
$ 1,000 5.250%, 7/01/22 7/14 at 100.00 Aa3 $ 1,050,530
500 5.250%, 7/01/24 7/14 at 100.00 Aa3 521,805
1,025 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 1,186,407
University of Rochester, Series 2004A, 5.250%, 7/01/20
(Pre-refunded 7/01/14)
1,995 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 2,083,299
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 2,452,124
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
6,915 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 5,831,074
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
6,000 Liberty Development Corporation, New York, Goldman Sachs No Opt. Call A1 5,902,860
Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35
Long Island Power Authority, New York, Electric System General
Revenue Bonds, Series 2006A:
7,000 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 A 7,253,820
5,000 5.000%, 12/01/24 - FGIC Insured 6/16 at 100.00 A 5,161,050
5,100 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 A 4,609,941
Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
3,900 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 3,952,650
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 -
AMBAC Insured
5,780 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 5,858,030
Transportation Revenue Bonds, Series 2005F, 5.000%, 11/15/30
3,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 A 3,086,100
Transportation Revenue Refunding Bonds, Series 2002A, 5.125%,
11/15/21 - FGIC Insured
New York City Industrial Development Agency, New York, Civic
Facility Revenue Bonds, United Jewish Appeal - Federation of
Jewish Philanthropies of New York Inc., Series 2004A:
2,185 5.250%, 7/01/20 7/14 at 100.00 Aa1 2,409,247
2,050 5.250%, 7/01/21 7/14 at 100.00 Aa1 2,255,595
2,420 5.250%, 7/01/22 4/14 at 100.00 Aa1 2,579,914
1,370 5.250%, 7/01/24 4/14 at 100.00 Aa1 1,451,789
12,500 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 AA 13,006,250
Series 2003D, 5.250%, 10/15/22 (UB)
525 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AAA 547,481
Series 2003J, 5.500%, 6/01/23
4,475 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 AAA 5,120,385
Series 2003J, 5.500%, 6/01/23 (Pre-refunded 6/01/13)
7,960 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 8,246,003
Series 2005M, 5.000%, 4/01/24 (UB)
6,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 6,339,540
2004C-1, 5.250%, 8/15/20 (UB)
2,880 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AAA 3,150,950
Revenue Bonds, Trust 2364, 16.993%, 11/15/44 - AMBAC Insured
(IF)
650 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 643,559
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 1,412,546
Pass-Through Bonds, Series 2000B, 6.500%, 6/01/35
(Pre-refunded 6/01/10)
7,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 7,501,084
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
6,460 New York State Urban Development Corporation, State Personal 3/14 at 100.00 AAA 6,700,893
Income Tax Revenue Bonds, Series 2004A-1, 5.000%, 3/15/26 -
FGIC Insured
4,750 Port Authority of New York and New Jersey, Consolidated 3/14 at 101.00 AA- 4,943,658
Revenue Bonds, One Hundred Thirty-Fifth Series 2004, 5.000%,
9/15/28 - SYNCORA GTY Insured
----------------------------------------------------------------------------------------------------------------------------------
112,525 Total New York 115,258,584
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.6% (1.0% OF TOTAL INVESTMENTS)
Charlotte, North Carolina, Certificates of Participation,
Governmental Facilities Projects, Series 2003G:
$ 5,785 5.250%, 6/01/22 (UB) 6/13 at 100.00 AA+ $ 6,060,597
3,475 5.250%, 6/01/23 (UB) 6/13 at 100.00 AA+ 3,629,047
2,850 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 2,542,371
Carolinas HealthCare System Revenue Bonds, Series 2008A, Trust
1149, 14.759%, 1/15/47 (IF)
1,050 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/17 at 100.00 AA- 1,048,562
Health Care System Revenue Bonds, Carolinas Health Care,
Series 2007A, 5.000%, 1/15/31
1,000 Gaston County Industrial Facilities and Pollution Control 8/15 at 100.00 N/R 594,430
Financing Authority, North Carolina, National Gypsum Company
Project Exempt Facilities Revenue Bonds, Series 2005,
5.750%, 8/01/35 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
14,160 Total North Carolina 13,875,007
----------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 1.1% (0.7% OF TOTAL INVESTMENTS)
9,650 Dickinson, North Dakota, Health Care Facilities Revenue 2/10 at 102.00 Aa2 (4) 10,046,615
Bonds, BHS Long Term Care Inc., Series 1990, 7.625%, 2/15/20
(Pre-refunded 2/15/10) - RAAI Insured
----------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.1% (2.0% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
250 5.125%, 6/01/24 6/17 at 100.00 BBB 222,665
2,850 5.875%, 6/01/30 6/17 at 100.00 BBB 2,480,555
2,745 5.750%, 6/01/34 6/17 at 100.00 BBB 2,308,408
6,285 5.875%, 6/01/47 6/17 at 100.00 BBB 4,656,682
4,265 Franklin County, Ohio, Hospital Revenue and Improvement 5/11 at 101.00 Aa2 (4) 4,606,115
Bonds, Children's Hospital Project, Series 2001, 5.500%,
5/01/28 (Pre-refunded 5/01/11) - AMBAC Insured
2,720 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 2,963,277
5.250%, 6/01/20
665 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 682,164
Bonds, MedCentral Health System Obligated Group, Series 2000A,
6.125%, 11/15/16
1,335 Richland County, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- (4) 1,424,445
Bonds, MedCentral Health System Obligated Group, Series 2000A,
6.125%, 11/15/16 (Pre-refunded 11/15/10)
7,000 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 N/R (4) 7,394,450
Improvement Bonds, Trinity Health System, Series 2000, 6.500%,
10/01/30 (Pre-refunded 10/01/10)
----------------------------------------------------------------------------------------------------------------------------------
28,115 Total Ohio 26,738,761
----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.6% (1.6% OF TOTAL INVESTMENTS)
1,050 Norman Regional Hospital Authority, Oklahoma, Hospital 9/16 at 100.00 BBB- 936,075
Revenue Bonds, Series 2005, 5.375%, 9/01/36
3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA 3,605,910
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
7,290 5.000%, 2/15/37 2/17 at 100.00 A 6,985,934
1,335 5.000%, 2/15/42 2/17 at 100.00 A 1,259,532
10,035 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 9,673,740
Revenue Bonds, Saint Francis Health System, Series 2006,
5.000%, 12/15/36 (UB)
143 Tulsa County Industrial Authority, Oklahoma, Health Care 12/16 at 100.00 AA 133,638
Revenue Bonds, Saint Francis Health System, Series 2006, Trust
3500, 8.366%, 12/15/36 (IF)
----------------------------------------------------------------------------------------------------------------------------------
23,353 Total Oklahoma 22,594,829
----------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,060 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 1,112,057
Participation, Series 2005A, 5.000%, 5/01/24 - FSA Insured
2,500 Oregon State Department of Transportation, Highway User Tax 11/14 at 100.00 AAA 2,862,875
Revenue Bonds, Series 2004A, 5.000%, 11/15/21 (Pre-refunded
11/15/14)
----------------------------------------------------------------------------------------------------------------------------------
3,560 Total Oregon 3,974,932
----------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.6% (2.9% OF TOTAL INVESTMENTS)
$ 980 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB $ 808,118
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
Lancaster Higher Education Authority, Pennsylvania, Revenue
Bonds, Franklin and Marshall College, Series 2003C:
1,340 5.250%, 4/15/15 4/13 at 100.00 A+ 1,440,795
1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,075,366
1,000 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 1,046,500
2005, 5.000%, 9/01/29
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 Aa3 2,673,510
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 4,689,615
4,735 5.000%, 9/01/22 - FSA Insured 9/14 at 100.00 AAA 4,907,354
8,145 Philadelphia Redevelopment Authority, Pennsylvania, Multifamily 4/10 at 101.00 N/R 6,896,697
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 15,881,180
Revenue Bonds, Philadelphia School District, Series 2003,
5.250%, 6/01/24 (Pre-refunded 6/01/13) - FSA Insured
----------------------------------------------------------------------------------------------------------------------------------
39,290 Total Pennsylvania 40,419,135
----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 8/17 at 100.00 AA- 2,541,175
Bonds, Series 2007A, 5.250%, 8/01/57
----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,440 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 1,308,802
Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.5% (3.5% OF TOTAL INVESTMENTS)
8,610 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 AA- 8,928,053
Purchase Revenue Bonds, GROWTH, Series 2004, 5.250%, 12/01/24
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
5,090 5.250%, 12/01/18 (UB) 12/13 at 100.00 AA 5,368,881
3,595 5.250%, 12/01/20 (UB) 12/13 at 100.00 AA 3,753,899
1,865 5.250%, 12/01/21 (UB) 12/13 at 100.00 AA 1,939,600
Lexington County Health Service District, South Carolina,
Hospital Revenue Bonds, Series 2004:
1,805 6.000%, 5/01/19 (Pre-refunded 5/01/14) 5/14 at 100.00 A+(4) 2,116,796
2,400 5.500%, 5/01/24 (Pre-refunded 5/01/14) 5/14 at 100.00 A+(4) 2,763,120
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
13,345 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+(4) 15,480,867
1,655 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+(4) 1,926,420
5,845 Tobacco Settlement Revenue Management Authority, South Carolina, 5/12 at 100.00 BBB(4) 6,133,509
Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%,
5/15/22 (Pre-refunded 5/15/12)
----------------------------------------------------------------------------------------------------------------------------------
44,210 Total South Carolina 48,411,145
----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.8% (1.1% OF TOTAL INVESTMENTS)
6,400 Johnson City Health and Educational Facilities Board, Tennessee, 7/16 at 100.00 BBB+ 6,216,512
Revenue Bonds, Mountain States Health Alliance, Series 2006A,
5.500%, 7/01/36
6,100 Knox County Health, Educational and Housing Facilities Board, 1/17 at 31.68 A- 844,911
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2006, 0.000%, 1/01/40
5,000 Metropolitan Government of Nashville-Davidson County Health and 10/19 at 100.00 AA 5,224,550
Educational Facilities Board, Tennessee, Revenue Refunding
Bonds, Vanderbilt University, Series 2009B, 5.000%, 10/01/39
410 Sullivan County Health Educational and Housing Facilities Board, 9/16 at 100.00 BBB+ 343,018
Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C,
5.250%, 9/01/36
Sumner County Health, Educational, and Housing Facilities Board,
Tennessee, Revenue Refunding Bonds, Sumner Regional Health
System Inc., Series 2007:
1,300 5.500%, 11/01/37 11/17 at 100.00 N/R 494,130
3,000 5.500%, 11/01/46 11/17 at 100.00 N/R 1,140,300
Nuveen Investments 33
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 1,425 Tennessee Housing Development Agency, Homeownership Program 7/13 at 100.00 AA+ $ 1,430,344
Bonds, Series 2004, 5.000%, 7/01/34 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
23,635 Total Tennessee 15,693,765
----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.0% (10.2% OF TOTAL INVESTMENTS)
5,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 2,988,250
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
3,162 Austin Housing Finance Corporation, Texas, GNMA Collateralized 12/10 at 105.00 Aaa 3,369,364
Multifamily Housing Revenue Bonds, Fairway Village Project,
Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax)
8,840 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 Aaa 8,411,525
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
2,150 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 10/13 at 101.00 CCC 1,072,528
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 177,770
Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds,
Series 2000, 6.000%, 2/15/16
530 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA Single 9/10 at 105.00 AAA 550,490
Family Mortgage Revenue Bonds, Series 2000A, 6.700%, 9/01/33
(Alternative Minimum Tax)
1,335 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call A1 1,355,960
Series 1990, 7.400%, 2/15/10 - AMBAC Insured
145 Harris County Hospital District, Texas, Revenue Refunding Bonds, No Opt. Call A1 (4) 147,668
Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
19,125 Harris County Hospital District, Texas, Revenue Refunding Bonds, 8/10 at 100.00 A (4) 19,945,460
Series 2000, 6.000%, 2/15/15 (Pre-refunded 8/15/10) - NPFG
Insured
4,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 A 3,634,840
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
NPFG Insured
5,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 5,245,700
Bonds, Series 2004A, 5.250%, 5/15/25 - NPFG Insured
6,000 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,363,600
Series 2001B, 5.500%, 3/01/15 - FSA Insured
13,975 Hutto Independent School District, Williamson County, Texas, 8/16 at 100.00 AAA 14,010,077
General Obligation Bonds, Series 2007A, 4.750%, 8/01/43 (UB)
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series
2005:
2,000 5.250%, 8/15/21 No Opt. Call BBB- 1,931,640
2,800 5.125%, 8/15/26 No Opt. Call BBB- 2,559,340
1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 A 1,551,474
Refunding Bonds, Transmission Services Corporation, Series
2003C, 5.250%, 5/15/23 - AMBAC Insured
245 Lower Colorado River Authority, Texas, Revenue Refunding and 5/13 at 100.00 A1 (4) 276,627
Improvement Bonds, Series 2003, 5.250%, 5/15/24 (Pre-refunded
5/15/13) - AMBAC Insured
3,155 Lower Colorado River Authority, Texas, Revenue Refunding and 5/13 at 100.00 A1 3,241,983
Improvement Bonds, Series 2003, 5.250%, 5/15/24 - AMBAC
Insured
5,650 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 5,715,540
Refunding Bonds, Series 2008, 5.750%, 1/01/38
11,000 Pearland Independent School District, Brazoria County, Texas, 2/17 at 100.00 AAA 10,729,840
General Obligation Bonds, Tender Option Bond Trust 1124,
7.420%, 2/15/32 (IF)
2,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 CCC 893,880
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
12,130 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 11,699,264
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
7,255 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa 7,732,959
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
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,000 Tarrant County Health Facilities Development Corporation, Texas, 11/10 at 101.00 N/R (4) $ 4,292,720
Hospital Revenue Bonds, Adventist Health System - Sunbelt
Obligated Group, Series 2000, 6.700%, 11/15/30 (Pre-refunded
11/15/10)
5,000 Tarrant Regional Water District, Texas, Water Revenue Refunding 3/13 at 100.00 AAA 5,528,950
and Improvement Bonds, Series 1999, 5.250%, 3/01/17 - FSA
Insured
2,985 Texas State, General Obligation Bonds, Series 2007, Trust 3213, 4/17 at 100.00 Aa1 3,683,670
13.749%, 4/01/33 (IF)
25,000 Texas Turnpike Authority, First Tier Revenue Bonds, Central No Opt. Call BBB+ 10,768,500
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 2,242,875
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
----------------------------------------------------------------------------------------------------------------------------------
156,662 Total Texas 140,122,494
----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.0% (0.0% OF TOTAL INVESTMENTS)
140 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 AAA 138,629
Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
4,680 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 100.00 N/R 4,460,789
Residential Rental Housing Revenue Bonds, Mayfair Apartments I
and II, Series 1999, 7.500%, 10/01/39 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.5% (2.2% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 Aaa 2,738,325
Columbia Generating Station - Nuclear Project 2, Series 2002C,
5.750%, 7/01/17 - NPFG Insured
3,125 Skagit County Public Hospital District 1, Washington, General 6/14 at 100.00 A3 3,244,500
Obligation Bonds, Series 2004A, 5.375%, 12/01/20 - NPFG Insured
5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AA 5,185,650
Bonds, Series 2001, 5.250%, 12/01/26 - NPFG Insured
4,750 Washington State Healthcare Facilities Authority, Revenue Bonds, 11/09 at 100.50 A2 4,729,765
Swedish Health Services, Series 1998, 5.125%, 11/15/22 - AMBAC
Insured
Washington State Tobacco Settlement Authority, Tobacco
Settlement Asset-Backed Revenue Bonds, Series 2002:
1,770 6.500%, 6/01/26 6/13 at 100.00 BBB 1,791,930
2,430 6.625%, 6/01/32 6/13 at 100.00 BBB 2,392,092
6,480 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 3,374,330
Bonds, Series 2002-03C, 0.000%, 6/01/24 - NPFG Insured
11,000 Washington, General Obligation Bonds, Series 2000S-5, 0.000%, No Opt. Call AA+ 7,323,910
1/01/20 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
37,055 Total Washington 30,780,502
----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0% (2.5% OF TOTAL INVESTMENTS)
Badger Tobacco Asset Securitization Corporation, Wisconsin,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
1,100 6.125%, 6/01/27 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,201,981
300 6.375%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 336,534
Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue
Bonds, Public Schools, Series 2003A:
1,000 5.125%, 8/01/22 (Pre-refunded 8/01/13) - AMBAC Insured 8/13 at 100.00 A1 (4) 1,131,310
750 5.125%, 8/01/23 (Pre-refunded 8/01/13) - AMBAC Insured 8/13 at 100.00 A1 (4) 848,483
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,018,310
Bonds, Agnesian Healthcare Inc., Series 2001, 6.000%, 7/01/21
9,000 Wisconsin Health and Educational Facilities Authority, Revenue 4/13 at 100.00 BBB+ 9,180,810
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 2,238,793
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 648,495
Bonds, Divine Savior Healthcare, Series 2006, 5.000%, 5/01/32
6,025 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 BBB+ (4) 6,978,396
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 6.000%, 9/01/22 (Pre-refunded 9/01/13)
Nuveen Investments 35
NPI | Nuveen Premium Income Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 4,995 Wisconsin Health and Educational Facilities Authority, Revenue 9/17 at 100.00 BBB+ $ 4,225,970
Bonds, Franciscan Sisters of Christian Charity HealthCare
Ministry, Series 2007, 5.000%, 9/01/33
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 BBB+ 1,704,820
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 BBB+ 1,802,740
Bonds, Wheaton Franciscan Services Inc., Series 2003A, 5.250%,
8/15/25
Wisconsin, General Obligation Bonds, Series 2004-3:
175 5.250%, 5/01/19 - FGIC Insured 5/14 at 100.00 Aa3 188,442
1,265 5.250%, 5/01/21 - FGIC Insured 5/14 at 100.00 AA 1,348,718
1,545 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 Aa3 (4) 1,774,402
5/01/19 (Pre-refunded 5/01/14) - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
34,120 Total Wisconsin 34,628,204
-----------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,900 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB+ 3,666,117
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,552,195 Total Investments (cost $1,377,411,918) - 157.0% 1,373,927,160
=============----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (14.2)% (124,294,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 26,358,031
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (45.8)% (5) (400,650,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 875,341,191
===================================================================================================================
(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 Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 29.2%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
36 Nuveen Investments
NPM | Nuveen Premium Income Municipal Fund 2, Inc.
| Portfolio of Investments
October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.3% (2.1% OF TOTAL INVESTMENTS)
$ 6,995 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 Aa1 $ 6,973,246
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39 (UB)
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
3,500 5.250%, 11/15/20 11/15 at 100.00 Baa2 3,372,145
1,000 5.000%, 11/15/30 11/15 at 100.00 Baa2 871,640
12,000 Birmingham Waterworks And Sewer Board, Alabama, Water and Sewer 1/17 at 100.00 AAA 11,383,200
Revenue Bonds, 4.500%, 1/01/39 - BHAC Insured (UB)
1,960 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,783,580
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) 1,929,321
Alabama, Revenue Bonds, Baptist Medical Center, Series 2004C,
5.250%, 11/15/29 (Pre-refunded 11/15/14)
6,255 University of South Alabama, Student Tuition Revenue Bonds, 3/14 at 100.00 A1 6,323,180
Series 2004, 5.000%, 3/15/24 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
33,400 Total Alabama 32,636,312
----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.3% (0.2% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
200 5.250%, 12/01/24 12/15 at 100.00 BBB 192,726
265 5.250%, 12/01/25 12/15 at 100.00 BBB 253,610
590 Pima County Industrial Development Authority, Arizona, Lease 1/10 at 100.00 Aa3 593,286
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
2,750 Salt Verde Financial Corporation, Arizona, Senior Gas Revenue No Opt. Call A 2,352,213
Bonds, Series 2007, 5.000%, 12/01/37
----------------------------------------------------------------------------------------------------------------------------------
3,805 Total Arizona 3,391,835
----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,000 Washington County, Arkansas, Hospital Revenue Bonds, Washington 2/15 at 100.00 Baa1 937,940
Regional Medical Center, Series 2005B, 5.000%, 2/01/25
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.1% (6.5% OF TOTAL INVESTMENTS)
5,690 California Department of Veterans Affairs, Home Purchase Revenue 6/12 at 101.00 Aa2 5,797,826
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 4,533,440
5,500 5.375%, 5/01/21 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 6,148,670
California Educational Facilities Authority, Revenue Refunding
Bonds, Loyola Marymount University, Series 2001A:
3,255 0.000%, 10/01/23 - NPFG Insured No Opt. Call A2 1,502,443
5,890 0.000%, 10/01/24 - NPFG Insured No Opt. Call A2 2,543,597
7,615 0.000%, 10/01/25 - NPFG Insured No Opt. Call A2 3,074,099
3,740 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 AAA 3,751,519
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
2,550 California Health Facilities Financing Authority, Revenue Bonds, 10/19 at 100.00 AA 2,588,837
Providence Health & Services, Series 2009B, 5.500%, 10/01/39
2,500 California Health Facilities Financing Authority, Revenue Bonds, 11/16 at 100.00 Aa3 2,314,075
Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
2,055 California Infrastructure Economic Development Bank, 10/14 at 100.00 AA+ 2,155,510
Infrastructure State Revolving Fund Revenue Bonds, Series 2004,
5.000%, 10/01/21
4,000 California State Economic Recovery Revenue Bonds, Refunding 7/19 at 100.00 A+ 4,172,080
Series 2009A, 5.250%, 7/01/21 (WI/DD, Settling 11/05/09)
1,000 California Statewide Community Development Authority, Revenue 7/15 at 100.00 BBB 834,460
Bonds, Daughters of Charity Health System, Series 2005A,
5.000%, 7/01/39
Nuveen Investments 37
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 5,355 California Statewide Community Development Authority, Revenue 5/18 at 100.00 Aa3 $ 5,672,887
Bonds, Sutter Health, Tender Option Bond Trust 3175, 13.438%,
11/15/48 (IF)
2,500 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call A+ 2,750,150
5.250%, 7/01/14
7,440 California, General Obligation Bonds, Series 2004, 5.125%, 2/14 at 100.00 A 7,559,784
2/01/25
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 2,000,472
San Diego Gas and Electric Company, Series 1996A, 5.300%,
7/01/21
2,500 Fontana Public Financing Authority, California, Tax Allocation 10/15 at 100.00 A 2,467,850
Revenue Bonds, North Fontana Redevelopment Project, Series
2005A, 5.000%, 10/01/23 - AMBAC Insured
30,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 19,338,896
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 A- 1,306,831
Revenue Bonds, Series 2005, 5.000%, 9/01/27 - AMBAC Insured
1,000 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 738,880
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1,
5.750%, 6/01/47
Perris, California, Special Tax Bonds, Community Facilities
District 2001-1, May Farms Improvement Area 4, Series 2005A:
1,420 5.000%, 9/01/25 9/15 at 102.00 N/R 1,042,124
435 5.100%, 9/01/30 9/15 at 102.00 N/R 299,350
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 229,805
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 246,980
2,220 San Diego Redevelopment Agency, California, Subordinate Lien Tax 9/14 at 100.00 A3 2,234,053
Allocation Bonds, Centre City Project, Series 2004A, 5.000%,
9/01/20 - SYNCORA GTY Insured
960 San Francisco Redevelopment Agency, California, Hotel Tax 1/10 at 100.00 AAA 962,794
Revenue Bonds, Series 1994, 6.750%, 7/01/25 - FSA Insured
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
4,595 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 901,447
32,400 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 5,443,200
6,000 San Jose Redevelopment Agency, California, Tax Allocation Bonds, 8/14 at 100.00 A 6,156,360
Merged Area Redevelopment Project, Series 2004A, 5.250%,
8/01/19 - NPFG Insured
3,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 A+ 2,913,750
Bonds, Turlock Irrigation District, Series 2004A, 5.000%,
1/01/34 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
151,430 Total California 101,682,169
----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.3% (0.8% OF TOTAL INVESTMENTS)
1,700 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AA- 1,779,067
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- 1,747,809
475 5.000%, 6/01/29 6/16 at 100.00 A- 448,894
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 A- 385,852
Valley Health Care, Series 2005F, 5.000%, 3/01/25
270 Denver City and County, Colorado, Airport System Revenue Bonds, No Opt. Call A+ 297,086
Series 1991 D, 7.750%, 11/15/13 (Alternative Minimum Tax)
6,925 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 BBB- 6,199,537
Revenue Bonds, Convention Center Hotel, Series 2006, 5.125%,
12/01/25 - SYNCORA GTY Insured
1,700 Denver, Colorado, FHA-Insured Multifamily Housing Revenue Bonds, 4/10 at 100.00 BB+ 1,624,894
Boston Lofts Project, Series 1997A, 5.750%, 10/01/27
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
13,215 Total Colorado 12,483,139
----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.3% OF TOTAL INVESTMENTS)
5,000 Connecticut, Special Tax Obligation Transportation Infrastructure 1/14 at 100.00 AA 5,350,300
Purpose Bonds, Series 2003B, 5.000%, 1/01/21 - FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
$ 11,720 0.000%, 4/01/27 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 39.61 A (4) $ 4,526,381
13,780 0.000%, 4/01/28 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 37.21 A (4) 4,999,935
15,855 0.000%, 4/01/29 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 35.07 A (4) 5,421,617
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,239,401
Senior Lien Dedicated Tax Revenue Bonds, Series 2007, Residuals
1606, 11.582%, 10/01/30 - BHAC Insured (IF)
----------------------------------------------------------------------------------------------------------------------------------
42,690 Total District of Columbia 16,187,334
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 57.1% (36.7% OF TOTAL INVESTMENTS)
1,000 Alachua County School Board, Florida, Certificates of 7/11 at 101.00 A3 1,009,130
Participation, Series 2001, 5.000%, 7/01/21 - AMBAC Insured
1,055 Bay County School Board, Florida, Certificates of Participation, 7/14 at 100.00 N/R 1,013,570
Series 2004, 5.000%, 7/01/24 - AMBAC Insured
1,500 Bradford County Health Facility Authority, Florida, Revenue No Opt. Call AAA 1,722,945
Refunding Bonds, Santa Fe Healthcare Inc., Series 1993, 6.050%,
11/15/16 (ETM)
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A- 4,086,434
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
2,500 Broward County Educational Facilities Authority, Florida, 4/14 at 100.00 BBB 2,452,700
Revenue Bonds, Nova Southeastern University, Series 2004B,
5.625%, 4/01/34
925 Broward County Housing Finance Authority, Florida, Multifamily 5/10 at 101.00 Aaa 938,144
Housing Revenue Bonds, Emerald Palms Apartments, Series 2001A,
5.600%, 7/01/21 (Alternative Minimum Tax)
335 Broward County Housing Finance Authority, Florida, Single Family 4/10 at 25.36 Aaa 82,410
Mortgage Revenue Bonds, Series 2001C, 0.000%, 4/01/33
(Alternative Minimum Tax)
240 Broward County Housing Finance Authority, Florida, Single Family 4/10 at 27.06 Aaa 64,454
Mortgage Revenue Refunding Bonds, Series 2000B, 0.000%, 4/01/29
(Alternative Minimum Tax)
1,870 Broward County School Board, Florida, Certificates of 7/14 at 100.00 AAA 1,947,119
Participation, Series 2004C, 5.250%, 7/01/20 - FSA Insured
Broward County, Florida, Airport System Revenue Bonds, Series
2001-J1:
2,225 5.250%, 10/01/21 - AMBAC Insured (Alternative Minimum Tax) 10/11 at 101.00 A+ 2,237,149
8,900 5.250%, 10/01/26 - AMBAC Insured (Alternative Minimum Tax) 10/11 at 101.00 A+ 8,685,243
2,150 Broward County, Florida, Airport System Revenue Bonds, Series 10/14 at 100.00 A+ 2,218,908
2004L, 5.000%, 10/01/23 - AMBAC Insured
3,000 Broward County, Florida, Water and Sewer System Revenue Bonds, 10/18 at 100.00 AA 3,103,500
Series 2009A, 5.250%, 10/01/34
650 Cape Coral, Florida, Water and Sewer Revenue Bonds, Series 2006, 10/16 at 100.00 BBB+ 588,556
5.000%, 10/01/36 - AMBAC Insured
1,500 Citrus County Hospital Board, Florida, Revenue Refunding Bonds, 8/13 at 100.00 Baa3 1,508,070
Citrus Memorial Hospital, Series 2002, 6.375%, 8/15/32
3,010 Cocoa, Florida, Water and Sewerage System Revenue Refunding No Opt. Call AA- 3,299,111
Bonds, Series 2003, 5.500%, 10/01/23 - AMBAC Insured
2,815 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 2,922,927
Series 2005, 5.000%, 10/01/23 - NPFG Insured
2,500 Escambia County Health Facilities Authority, Florida, Health 10/10 at 100.00 Baa1 2,403,075
Facility Revenue Refunding Bonds, Baptist Hospital and Baptist
Manor, Series 1998, 5.125%, 10/01/19
1,290 Escambia County, Florida, Tourist Development Revenue Refunding 10/12 at 100.00 A 1,368,174
Bonds, Series 2002, 5.000%, 10/01/18 - NPFG Insured
4,230 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 A 4,247,005
Series 2005, 5.000%, 10/01/30 - NPFG Insured
2,000 Florida Board of Education, Lottery Revenue Bonds, Series 2001 7/11 at 101.00 AAA 2,032,820
B, 5.000%, 7/01/20 - FGIC Insured
110 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 119,405
Ownership Revenue Refunding Bonds, Series 1987G-1, 8.595%,
11/01/17
285 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/10 at 100.00 AA+ 285,262
Bonds, New Money and Refunding Issue, Series 1996-2, 6.350%,
7/01/28 (Alternative Minimum Tax)
700 Florida Housing Finance Agency, Homeowner Mortgage Revenue 1/10 at 100.00 AA+ 707,490
Bonds, Series 1997-2, 5.900%, 7/01/29 - NPFG Insured
(Alternative Minimum Tax)
Nuveen Investments 39
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 1,000 Florida Housing Finance Agency, Housing Revenue Bonds, Holly 4/10 at 100.00 N/R $ 1,000,410
Cove Apartments, Series 1995F, 6.150%, 10/01/25 - AMBAC Insured
(Alternative Minimum Tax)
5,790 Florida Housing Finance Corporation, FNMA Revenue Bonds, Villa 10/10 at 102.00 Aaa 5,921,549
de Mallorca Apartments, Series 2000H-1, 6.000%, 7/01/33
(Alternative Minimum Tax)
550 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 1/10 at 100.00 AAA 550,996
Bonds, Series 2000-11, 5.850%, 1/01/22 - FSA Insured
(Alternative Minimum Tax)
1,690 Florida Housing Finance Corporation, Homeowner Mortgage Revenue 1/16 at 100.00 AA+ 1,631,560
Bonds, Series 2006-6, 4.625%, 7/01/31 (Alternative Minimum Tax)
3,170 Florida Housing Finance Corporation, Housing Revenue Refunding 12/09 at 101.00 AA 3,187,372
Bonds, Hunters Ridge at Deerwood Apartments, Series 1998-0,
5.300%, 12/01/28
1,280 Florida Intergovernmental Finance Commission, Capital Revenue 8/11 at 100.00 A2 1,320,896
Bonds, Daytona Beach Community Redevelopment Agency, Series
2001C-1, 5.000%, 2/01/20 - AMBAC Insured
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
1,040 0.000%, 11/01/25 - NPFG Insured No Opt. Call A 403,177
1,590 0.000%, 11/01/26 - NPFG Insured No Opt. Call A 575,230
1,685 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, 5/13 at 100.00 A 1,701,698
5.000%, 5/01/22 - NPFG Insured
5,000 Florida Ports Financing Commission, Revenue Bonds, State 12/09 at 100.00 A 4,963,250
Transportation Trust Fund, Series 1996, 5.375%, 6/01/27 - NPFG
Insured (Alternative Minimum Tax)
13,925 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 14,953,497
Education Capital Outlay Bonds, Series 2002B, 5.000%,
6/01/20 - NPFG Insured
185 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 196,144
Education Capital Outlay Bonds, Series 2002F, 5.000%,
6/01/22 - NPFG Insured
9,230 Florida State Board of Education, Full Faith and Credit, Public 6/11 at 101.00 AAA 9,377,957
Education Capital Outlay Bonds, Series 2001C, 5.125%,
6/01/31 - FGIC Insured
5,000 Florida State Board of Education, Public Education Capital 6/18 at 101.00 AAA 5,237,550
Outlay Bonds, Series 2009B, 5.000%, 6/01/34
14,985 Florida State Board of Education, State University System 7/15 at 101.00 AA 15,420,314
Revenue Bonds, Series 2006A, 5.000%, 7/01/30 - FGIC Insured
(UB)
5,980 Florida State Department of Management Services, Certificates 8/15 at 101.00 AA+ 6,269,133
of Participation, Series 2006A, 5.000%, 8/01/23 - NPFG Insured
2,580 Florida State Education System, Housing Facility Revenue Bonds, No Opt. Call A 2,825,539
Florida International University, Series 2004A, 5.000%,
7/01/14 - NPFG Insured
6,000 Florida State Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 101.00 AA- 6,054,240
Department of Transportation, Series 2003C, 5.000%, 7/01/33
3,500 Florida State Water Pollution Control Financing Corporation, 1/19 at 100.00 AAA 3,646,580
Revolving Fund Revenue Bonds, Series 2009A, 5.000%, 1/15/29
2,345 FSU Financial Assistance Inc., Florida, General Revenue Bonds, 10/14 at 100.00 A1 2,482,206
Educational and Athletic Facilities Improvements, Series 2004,
5.000%, 10/01/16 - AMBAC Insured
750 Gainesville, Florida, Utilities System Revenue Bonds, Series 10/13 at 100.00 AA (4) 857,430
2003A, 5.250%, 10/01/21 (Pre-refunded 10/01/13)
12,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 4/10 at 101.00 Aa3 11,764,560
Revenue Bonds, Series 1999A, 5.125%, 10/01/28 - FGIC Insured
(Alternative Minimum Tax)
8,000 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 8,052,400
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 - FSA Insured
(Alternative Minimum Tax)
Halifax Hospital Medical Center, Florida, Revenue Bonds, Series
2006:
5,385 5.500%, 6/01/38 - FSA Insured 6/18 at 100.00 AAA 5,399,324
6,865 5.000%, 6/01/38 6/16 at 100.00 A- 6,199,576
1,755 5.375%, 6/01/46 6/16 at 100.00 A- 1,631,676
5,000 Hernando County, Florida, Revenue Bonds, Criminal Justice No Opt. Call A 6,249,050
Complex Financing Program, Series 1986, 7.650%, 7/01/16 - FGIC
Insured
1,000 Highlands County Health Facilities Authority, Florida, Hospital 11/15 at 100.00 A+ 959,980
Revenue Bonds, Adventist Health System, Series 2005C, 5.000%,
11/15/31
7,200 Highlands County Health Facilities Authority, Florida, Hospital 11/11 at 101.00 N/R (4) 7,948,152
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2001A, 6.000%, 11/15/31 (Pre-refunded 11/15/11)
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 3,600 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R $ 2,495,520
Exempt Facilities Remarketed Revenue Bonds, National Gypsum
Company, Apollo Beach Project, Series 2000B, 7.125%, 4/01/30
(Alternative Minimum Tax)
Hillsborough County Industrial Development Authority, Florida,
Hospital Revenue Bonds, Tampa General Hospital, Series 2003B:
1,500 5.250%, 10/01/28 10/13 at 100.00 A3 1,468,245
3,920 5.250%, 10/01/34 10/13 at 100.00 A3 3,716,513
2,365 Hillsborough County Industrial Development Authority, Florida, 10/16 at 100.00 A3 2,183,202
Hospital Revenue Bonds, Tampa General Hospital, Series 2006,
5.250%, 10/01/41
2,000 Hillsborough County Industrial Development Authority, Florida, 10/13 at 100.00 A3 1,993,760
Hospital Revenue Refunding Bonds, Tampa General Hospital,
Series 2003A, 5.250%, 10/01/24
1,535 Hillsborough County, Florida, Community Investment Tax Revenue 11/13 at 101.00 AA+ 1,565,807
Bonds, Series 2004, 5.000%, 5/01/24 - AMBAC Insured
2,170 Hillsborough County, Florida, Revenue Refunding Bonds, Tampa Bay 10/15 at 100.00 AA+ 2,255,693
Arena, Series 2005, 5.000%, 10/01/25 - FGIC Insured
1,500 Hollywood, Florida, Water and Sewer Revenue Refunding and 10/13 at 100.00 Aa3 1,562,550
Improvement Bonds, Series 2003, 5.000%, 10/01/20 - FSA Insured
1,050 Jacksonville Beach, Florida, Utility Revenue Refunding Bonds, 10/10 at 100.00 A1 1,086,299
Series 2002, 5.000%, 4/01/17 - AMBAC Insured
1,430 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/11 at 100.00 AA- 1,449,777
Bonds, Series 2001, 5.000%, 10/01/23 - AMBAC Insured
Jacksonville, Florida, Better Jacksonville Sales Tax Revenue
Bonds, Series 2003:
4,990 5.250%, 10/01/21 - NPFG Insured 10/13 at 100.00 AA- 5,209,810
2,090 5.000%, 10/01/22 - NPFG Insured 10/13 at 100.00 AA- 2,153,954
3,145 Jacksonville, Florida, Excise Taxes Revenue Refunding Bonds, 10/13 at 100.00 Aa3 3,191,515
Series 2003C, 5.250%, 10/01/18 - NPFG Insured (Alternative
Minimum Tax)
Jacksonville, Florida, Guaranteed Entitlement Revenue Refunding
and Improvement Bonds, Series 2002:
2,230 5.000%, 10/01/21 - FGIC Insured 10/12 at 100.00 A+ 2,280,799
2,000 5.000%, 10/01/22 - FGIC Insured 10/12 at 100.00 A+ 2,039,880
2,750 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AA+ 2,985,125
Refunding and Improvement Bonds, Series 2002, 5.375%,
10/01/17 - FGIC Insured
1,000 Jacksonville, Florida, Local Government Sales Tax Revenue No Opt. Call AA+ 1,138,040
Refunding Bonds, Series 2001, 5.500%, 10/01/14 - FGIC Insured
1,000 Jacksonville, Florida, Water and Sewer Revenue Bonds, United 2/10 at 100.00 Baa1 1,000,390
Water Florida Project, Series 1995, 6.350%, 8/01/25 - AMBAC
Insured (Alternative Minimum Tax)
JEA, Florida, Water and Sewerage System Revenue Bonds, Series
2004A:
3,235 5.000%, 10/01/18 - FGIC Insured 10/13 at 100.00 AA- 3,376,596
5,090 5.000%, 10/01/19 - FGIC Insured 10/13 at 100.00 AA- 5,292,073
3,000 5.000%, 10/01/23 - FGIC Insured 10/13 at 100.00 AA- 3,071,640
Lake County School Board, Florida, Certificates of
Participation, Series 2004A:
1,190 5.000%, 7/01/20 - AMBAC Insured 7/14 at 100.00 A 1,209,468
1,470 5.000%, 7/01/24 - AMBAC Insured 7/14 at 100.00 A 1,482,686
4,250 Lakeland, Florida, Energy System Revenue Refunding Bonds, Series No Opt. Call AAA 4,610,060
1999C, 6.050%, 10/01/11 - FGIC Insured
3,235 Lakeland, Florida, Hospital System Revenue Bonds, Lakeland 11/16 at 100.00 A2 3,158,816
Regional Medical Center, Series 2006, 5.000%, 11/15/26
1,065 Lee County Industrial Development Authority, Florida, Utilities 11/12 at 100.00 A+ 1,069,856
Revenue Bonds, Bonita Springs Utilities Inc. Project, Series
2002, 5.000%, 11/01/19 - NPFG Insured (Alternative Minimum Tax)
2,350 Lee County, Florida, Airport Revenue Bonds, Series 2006, 5.000%, 10/15 at 100.00 AAA 2,378,717
10/01/33 - FSA Insured
1,000 Lee County, Florida, Transportation Facilities Revenue Bonds, No Opt. Call A- 1,097,770
Series 2004B, 5.000%, 10/01/14 - AMBAC Insured
1,525 Lee County, Florida, Water and Sewer Revenue Refunding Bonds, 10/13 at 100.00 A2 1,565,291
Series 2003A, 5.000%, 10/01/20 - NPFG Insured
3,500 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 A 3,301,725
Series 2007A, 5.000%, 4/01/32 - NPFG Insured
Nuveen Investments 41
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,345 Leesburg, Florida, Hospital Revenue Bonds, Leesburg Regional 7/12 at 100.00 BBB+ $ 2,258,282
Medical Center Project, Series 2002, 5.375%, 7/01/22
3,430 Leesburg, Florida, Hospital Revenue Refunding Bonds, Leesburg No Opt. Call BBB+ 3,534,238
Regional Medical Center Project, Series 2003, 5.000%, 7/01/12
5,130 Manatee County School District, Florida, Sales Tax Revenue 10/13 at 100.00 A 5,312,372
Bonds, Series 2003, 5.000%, 10/01/17 - AMBAC Insured
7,500 Marion County Hospital District, Florida, Revenue Bonds, Munroe 10/17 at 100.00 A3 6,415,650
Regional Medical Center, Series 2007, 5.000%, 10/01/34
Miami-Dade County Educational Facilities Authority, Florida,
Revenue Bonds, University of Miami, Series 2004A:
2,290 5.000%, 4/01/19 (Pre-refunded 4/01/14) - AMBAC Insured 4/14 at 100.00 N/R (4) 2,589,005
3,305 5.000%, 4/01/22 (Pre-refunded 4/01/14) - AMBAC Insured 4/14 at 100.00 N/R (4) 3,736,534
Miami-Dade County Expressway Authority, Florida, Toll System
Revenue Bonds, Series 2004B:
2,000 5.250%, 7/01/18 - FGIC Insured 7/14 at 100.00 A 2,120,700
2,000 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 A 2,048,340
2,000 Miami-Dade County Expressway Authority, Florida, Toll System 7/11 at 101.00 A3 2,038,120
Revenue Refunding Bonds, Series 2001, 5.000%, 7/01/21 - FGIC
Insured
3,000 Miami-Dade County Health Facility Authority, Florida, Hospital 8/11 at 101.00 AAA 3,255,990
Revenue Refunding Bonds, Miami Children's Hospital, Series
2001A, 5.125%, 8/15/26 (Pre-refunded 8/15/11) - AMBAC Insured
30 Miami-Dade County Housing Authority, Florida, Home Owner 4/10 at 100.00 Aaa 30,586
Mortgage Revenue Bonds, Series 1999A-1, 5.550%, 10/01/19
(Alternative Minimum Tax)
3,630 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 3,714,688
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.950%, 7/01/30 - FSA Insured (Alternative
Minimum Tax)
1,480 Miami-Dade County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 1,394,382
Industrial Development Revenue Bonds, Airis Miami II LLC -
Miami International Airport, Series 1999, 6.000%, 10/15/25 -
AMBAC Insured (Alternative Minimum Tax)
3,000 Miami-Dade County School Board, Florida, Certificates of 11/16 at 100.00 A 2,960,580
Participation, Series 2006B, 5.000%, 11/01/31 - AMBAC Insured
7,500 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 4/10 at 100.50 A 7,277,175
International Airport, Series 1998A, 5.000%, 10/01/24 - FGIC
Insured (Alternative Minimum Tax)
4,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 4/10 at 100.50 A 3,913,520
International Airport, Series 1998C, 5.000%, 10/01/23 - NPFG
Insured (Alternative Minimum Tax)
5,390 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A 5,584,094
International Airport, Series 2002, 5.750%, 10/01/18 - FGIC
Insured (Alternative Minimum Tax)
2,645 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 2,380,553
International Airport, Series 2005A, 5.000%, 10/01/38 - CIFG
Insured (Alternative Minimum Tax)
5,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/19 at 100.00 A2 5,053,450
International Airport, Series 2009A, 5.500%, 10/01/41
1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 BBB- 1,570,630
Development District, Special Assessment Bonds, Commercial
Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured
4,000 Miami-Dade County, Florida, General Obligation Bonds, Build 7/18 at 100.00 AA- 4,205,440
Better Communities Program, Series 2009-B1, 5.625%, 7/01/38
12,900 Miami-Dade County, Florida, Transit System Sales Surtax Revenue 7/18 at 100.00 AAA 13,021,127
Bonds, Series 2008, 5.000%, 7/01/35 - FSA Insured
3,300 Miami-Dade County, Florida, Water and Sewer System Revenue 4/10 at 101.00 A+ 3,329,898
Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured
1,175 Naples, Florida, Water and Sewer Revenue Bonds, Series 2002, 9/12 at 100.00 Aa2 (4) 1,305,319
5.000%, 9/01/14 (Pre-refunded 9/01/12)
North Broward Hospital District, Florida, Revenue and
Improvement Bonds, Series 2001:
12,125 6.000%, 1/15/31 (Pre-refunded 1/15/11) 1/11 at 101.00 A (4) 12,960,049
1,375 6.000%, 1/15/31 (Pre-refunded 1/15/11) 1/11 at 101.00 A (4) 1,469,696
2,475 Northern Palm Beach County Improvement District, Florida, 8/10 at 102.00 BBB- 2,540,513
Revenue Bonds, Water Control and Improvement Development Unit
19, Series 2000, 6.100%, 8/01/21 - RAAI Insured
1,100 Okaloosa County, Florida, Water and Sewer Revenue Bonds, Series 7/16 at 100.00 AAA 1,112,353
2006, 5.000%, 7/01/36 - FSA Insured
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,000 Opa-Locka, Florida, Capital Improvement Revenue Bonds, Series 1/10 at 100.00 A $ 2,002,420
1994, 6.125%, 1/01/24 - FGIC Insured
6,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A1 (4) 6,432,600
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/12 at 101.00 N/R (4) 5,545,450
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2002, 5.250%, 11/15/18 (Pre-refunded 11/15/12)
Orange County Health Facilities Authority, Florida, Hospital
Revenue Bonds, Orlando Regional Healthcare System, Series
2002:
3,695 5.750%, 12/01/27 (Pre-refunded 12/01/12) 12/12 at 100.00 AAA 4,196,559
1,000 5.750%, 12/01/32 (Pre-refunded 12/01/12) - Insured 12/12 at 100.00 AAA 1,135,740
2,440 Orange County School Board, Florida, Certificates of 8/14 at 100.00 A1 2,498,340
Participation, Series 2004A, 5.000%, 8/01/22 - AMBAC Insured
Orange County, Florida, Sales Tax Revenue Bonds, Series 2002A:
1,665 5.125%, 1/01/20 - FGIC Insured 1/13 at 100.00 AA 1,757,557
3,400 5.125%, 1/01/23 - FGIC Insured 1/13 at 100.00 AA 3,499,756
Orlando Community Redevelopment Agency, Florida, Tax
Increment Revenue Bonds, Republic Drive-Universal Boulevard -
I-4 Interchange Project, Series 2002:
1,495 5.125%, 4/01/20 - AMBAC Insured 4/12 at 100.00 N/R 1,508,634
1,225 5.125%, 4/01/21 - AMBAC Insured 4/12 at 100.00 N/R 1,232,558
5,000 Orlando Utilities Commission, Florida, Water and Electric No Opt. Call Aa1 5,242,150
Revenue Refunding Bonds, Series 1992, 6.000%, 10/01/10
1,220 Orlando Utilities Commission, Florida, Water and Electric 10/11 at 101.00 Aa1 1,325,188
Revenue Refunding Bonds, Series 2001, 5.250%, 10/01/17
4,295 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 (4) 4,805,031
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/18
(Pre-refunded 10/01/12)
445 Orlando Utilities Commission, Florida, Water and Electric 10/12 at 100.00 Aa1 491,075
Revenue Refunding Bonds, Series 2002C, 5.250%, 10/01/17
575 Osceola County Industrial Development Authority, Florida, 8/11 at 101.00 A 534,342
Industrial Development Revenue Bonds, P.M. Wells Charter
School Project, Series 2001A, 5.000%, 8/01/23 - NPFG Insured
Osceola County, Florida, Transportation Revenue Bonds,
Osceola Parkway, Series 2004:
3,745 5.000%, 4/01/22 - NPFG Insured 4/14 at 100.00 A2 3,819,900
2,000 5.000%, 4/01/23 - NPFG Insured 4/14 at 100.00 A2 2,036,400
Palm Beach County Health Facilities Authority, Florida,
Hospital Revenue Refunding Bonds, BRCH Corporation Obligated
Group, Series 2001:
3,895 5.500%, 12/01/21 12/11 at 101.00 BBB- 3,458,409
6,470 5.625%, 12/01/31 12/11 at 101.00 BBB- 5,363,371
6,090 Palm Beach County School Board, Florida, Certificates of 8/16 at 100.00 AAA 6,579,697
Participation, Drivers Trust 2089, 12.591%, 8/01/31 - FSA
Insured (IF)
2,040 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,163,094
Participation, Series 2002D, 5.250%, 8/01/21 - FSA Insured
1,500 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AA- 1,537,800
Participation, Series 2004A, 5.000%, 8/01/22 - FGIC Insured
3,000 Palm Beach County School Board, Florida, Certificates of 8/17 at 100.00 AA- 3,044,070
Participation, Series 2007E, 5.000%, 8/01/27 - NPFG Insured
4,490 Palm Beach County, Florida, Public Improvement Revenue Bonds, 6/15 at 100.00 AA+ 4,550,929
Biomedical Research Park Project, Series 2005A, 5.000%,
6/01/25 - AMBAC Insured
4,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/19 at 100.00 AAA 4,244,360
FPL Reclaimed Water Project, Series 2009, 5.250%, 10/01/33
6,545 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/16 at 100.00 AAA 6,882,657
Series 2006A, Trust 2622, 11.965%, 10/01/36 (IF)
10,000 Palm Beach County, Florida, Water and Sewer Revenue Bonds, 10/16 at 100.00 AAA 10,318,100
Series 2006A, 5.000%, 10/01/31 (UB)
2,500 Polk County School District, Florida, Sales Tax Revenue 10/14 at 100.00 AAA 2,730,075
Bonds, Series 2004, 5.250%, 10/01/18 - FSA Insured
2,060 Polk County, Florida, Utility System Revenue Bonds, Series 10/13 at 100.00 A2 2,100,046
2003, 5.250%, 10/01/22 - FGIC Insured
Nuveen Investments 43
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,000 Port Saint Lucie. Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A $ 1,778,780
Southwest Annexation District 1B, Series 2007, 5.000%,
7/01/33 - NPFG Insured
1,350 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 2003, 9/13 at 100.00 A+ 1,406,525
5.000%, 9/01/21 - NPFG Insured
650 Reedy Creek Improvement District, Florida, Utility Revenue 10/15 at 100.00 A- 654,609
Bonds, Series 2005-1, 5.000%, 10/01/25 - AMBAC Insured
3,240 Reedy Creek Improvement District, Orange and Osceola Counties, 4/14 at 100.00 A 3,278,912
Florida, General Obligation Bonds, Series 2004A, 5.000%,
6/01/22 - NPFG Insured
1,640 Rivercrest Community Development District, Florida, Special 5/18 at 100.00 A- 1,467,570
Assessment Bonds, Series 2007, 5.000%, 5/01/30 - RAAI Insured
2,750 Saint Johns County, Florida, Transportation Improvement Revenue 10/13 at 100.00 A+ 2,771,285
Bonds, Series 2003, 5.000%,10/01/23 - AMBAC Insured
2,275 Sarasota County, Florida, Utility System Revenue Bonds, Series 10/15 at 100.00 AA+ 2,367,024
2005A, 5.000%, 10/01/27 - FGIC Insured
3,570 Seminole County, Florida, Water and Sewer Revenue Refunding and No Opt. Call AAA 4,267,435
Improvement Bonds, Series 1992, 6.000%, 10/01/19 - NPFG Insured
(ETM)
1,680 Seminole County, Florida, Water and Sewer Revenue Refunding and No Opt. Call AA 1,918,946
Improvement Bonds, Series 1992, 6.000%, 10/01/19 - NPFG Insured
625 Sonoma Bay Community Development District, Florida, Special 5/15 at 100.00 N/R 487,888
Assessment Bonds, Series 2005A, 5.450%, 5/01/36
10,000 South Broward Hospital District, Florida, Hospital Revenue 5/12 at 101.00 Aa3 (4) 11,145,800
Bonds, Series 2002, 5.625%, 5/01/32 (Pre-refunded 5/01/12)
7,500 South Florida Water Management District, Certificates of 10/16 at 100.00 AAA 7,612,875
Participation, Series 2006, Trust 1036, 9.083%, 10/01/36 -
AMBAC Insured (IF)
5,000 South Florida Water Management District, Certificates of 10/16 at 100.00 AA+ 5,037,600
Participation, Series 2006, 5.000%, 10/01/36 - AMBAC Insured
2,455 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 2,304,631
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42 (UB)
St. John's County Industrial Development Authority, Florida,
First Mortgage Revenue Bonds, Presbyterian Retirement
Communities, Series 2004A:
2,250 5.850%, 8/01/24 8/14 at 101.00 N/R 2,193,413
3,135 5.625%, 8/01/34 8/14 at 101.00 N/R 2,813,412
5,000 Sumter County, Florida, Capital Improvement Revenue Bonds, Series 6/16 at 100.00 A 4,884,750
2006, 5.000%, 6/01/36 - AMBAC Insured
1,170 Tallahassee, Florida, Consolidated Utility System Revenue Bonds, 10/15 at 100.00 AA 1,214,343
Series 2005, 5.000%, 10/01/25 - AMBAC Insured
5,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 2005, 10/15 at 100.00 AA- 5,058,500
5.000%, 10/01/35 - NPFG Insured
5,000 Tampa Ba, Florida, Regional Water Supply Authority Utility 10/18 at 100.00 AA+ 5,148,500
System Revenue Bonds, Series 2008, 5.000%, 10/01/34
Tampa Sports Authority, Hillsborough County, Florida, Sales Tax
Payments Special Purpose Bonds, Stadium Project, Series 1995:
1,250 5.750%, 10/01/20 - NPFG Insured No Opt. Call A 1,326,688
2,785 5.750%, 10/01/25 - NPFG Insured No Opt. Call A 2,936,950
9,535 Tampa-Hillsborough County Expressway Authority, Florida, Revenue 7/15 at 101.00 A- 10,250,792
Bonds, Series 2005, 5.000%, 7/01/16 - AMBAC Insured
Volusia County School Board, Florida, Sales Tax Revenue Bonds,
Series 2002:
11,815 5.375%, 10/01/14 - FSA Insured 10/12 at 100.00 AAA 12,850,703
8,605 5.375%, 10/01/15 - FSA Insured 10/12 at 100.00 AAA 9,359,314
1,000 Volusia County, Florida, Tax Revenue Bonds, Tourist Development, 12/14 at 100.00 Aa3 1,027,040
Series 2004, 5.000%, 12/01/24 - FSA Insured
Winter Springs, Florida, Water and Sewer Revenue Refunding
Bonds, Series 2001:
700 5.250%, 4/01/16 - NPFG Insured 4/11 at 101.00 A 740,390
1,585 5.000%, 4/01/20 - NPFG Insured 4/11 at 101.00 A 1,634,991
----------------------------------------------------------------------------------------------------------------------------------
561,865 Total Florida 573,325,882
----------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.0% (0.6% OF TOTAL INVESTMENTS)
$ 500 Chatham County Hospital Authority, Savannah, Georgia, Hospital 1/14 at 100.00 Baa2 $ 450,185
Revenue Bonds, Memorial Health University Medical Center Inc.,
Series 2004A, 5.375%, 1/01/26
10 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 11,451
Revenue Bonds, Series 2003A, 5.250%, 11/01/15 (Pre-refunded
11/01/13) - NPFG Insured
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
3,405 5.250%, 11/01/15 - NPFG Insured 11/13 at 100.00 AA 3,687,411
3,365 5.000%, 11/01/18 - NPFG Insured 11/13 at 100.00 A1 3,529,044
2,235 Richmond County Development Authority, Georgia, Revenue Bonds, 12/14 at 100.00 N/R 2,286,561
Medical College of Georgia, Cancer Research Center Project,
Series 2004A, 5.000%, 12/15/24 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
9,515 Total Georgia 9,964,652
----------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.5% (0.4% OF TOTAL INVESTMENTS)
115 Idaho Housing Agency, Senior Lien Single Family Mortgage Bonds, 1/10 at 100.00 Aaa 115,673
Series 1995F, 6.450%, 7/01/27(Alternative Minimum Tax)
3,115 Idaho Housing and Finance Association, GNMA Housing Revenue 3/12 at 105.00 Aaa 3,342,707
Refunding Bonds, Wedgewood Terrace Project, Series 2002A-1,
7.250%, 3/20/37
175 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa1 175,984
Bonds, Series 1996G, 6.350%, 7/01/26 (Alternative Minimum Tax)
165 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aa2 167,211
Bonds, Series 2000B, 6.250%, 7/01/22 (Alternative Minimum Tax)
265 Idaho Housing and Finance Association, Single Family Mortgage 7/10 at 100.00 Aaa 273,753
Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax)
Madison County, Idaho, Hospital Revenue Certificates of
Participation, Madison Memorial Hospital, Series 2006:
1,000 5.250%, 9/01/30 9/16 at 100.00 BBB- 897,160
470 5.250%, 9/01/37 9/16 at 100.00 BBB- 402,287
----------------------------------------------------------------------------------------------------------------------------------
5,305 Total Idaho 5,374,775
----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.4% (5.4% OF TOTAL INVESTMENTS)
5,000 Chicago Board of Education, Illinois, Unlimited Tax General No Opt. Call AA- 2,954,300
Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%,
12/01/20 - FGIC Insured
22,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AA- 10,313,490
Series 1999, 0.000%, 1/01/25 - FGIC Insured
1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 12/09 at 102.00 Aaa 1,194,658
Revenue Bonds, Bryn Mawr-Belle Shores Project, Series 1997,
5.800%, 6/01/23 (Alternative Minimum Tax)
2,570 Chicago, Illinois, Tax Increment Allocation Bonds, Read-Dunning 1/10 at 100.00 N/R 2,572,364
Redevelopment Project, Series 1996B, 7.250%, 1/01/14
2,510 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 1/10 at 100.00 N/R 2,513,363
Drainage and Ship Canal Redevelopment Project, Series 1997A,
7.750%, 1/01/14
4,865 Cook County Community Consolidated School District 15, No Opt. Call Aa3 (4) 2,963,077
Palatine, Illinois, General Obligation Bonds, Series 2001,
0.000%, 12/01/20 - FGIC Insured (ETM)
2,575 Cook County Community High School District 219, Niles Township, No Opt. Call Baa1 1,554,785
Illinois, General Obligation Capital Appreciation Bonds,
Series 2001, 0.000%, 12/01/20 - NPFG Insured
3,615 Cook County Community High School District 219, Niles Township, No Opt. Call N/R (4) 2,349,967
Illinois, General Obligation Capital Appreciation Bonds, Series
2001, 0.000%, 12/01/20 - NPFG Insured (ETM)
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,000 5.250%, 11/15/14 5/14 at 100.00 A 2,095,060
4,420 5.250%, 11/15/15 5/14 at 100.00 A 4,565,683
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 328,356
Series 2006, 5.125%, 1/01/25
1,900 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 2,137,272
Series 2009A, 7.750%, 8/15/34
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 1,108,490
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
3,090 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/13 at 100.00 A- 3,104,801
Hospital, Series 2003, 6.000%, 7/01/33
3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call Aa3 3,405,030
Lutheran General Health System, Series 1993C, 6.000%, 4/01/18
Nuveen Investments 45
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Illinois Housing Development Authority, Housing Finance Bonds,
Series 2000A:
$ 90 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA $ 91,110
1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,248,449
11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AA- 12,986,600
Series 2001, 6.000%, 11/01/26 - FGIC Insured
2,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA- 2,157,280
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 Aa3 2,111,742
1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aa3 1,010,418
4,020 Lake, Cook, Kane and McHenry Counties Community Unit School No Opt. Call AAA 4,682,215
District 220, Barrington, Illinois, General Obligation Bonds,
Series 2002, 5.250%, 12/01/20 - FSA Insured (UB)
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
855 5.250%, 1/01/25 1/16 at 100.00 AA 871,160
1,750 5.250%, 1/01/30 1/16 at 100.00 AA 1,789,620
17,945 McHenry and Kane Counties Community Consolidated School District No Opt. Call N/R 9,438,532
158, Huntley, Illinois, General Obligation Bonds, Series 2003,
0.000%, 1/01/22 - FGIC Insured
2,910 McHenry County Community High School District 154, Marengo, No Opt. Call A1 1,715,038
Illinois, Capital Appreciation School Bonds, Series 2001,
0.000%, 1/01/21 - FGIC Insured
2,790 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,849,148
Bonds, McCormick Place Expansion Project, Series 2002A, 5.000%,
12/15/28 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
110,360 Total Illinois 84,112,008
----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,000 Ball State University, Indiana, Student Fee Revenue Bonds, 1/12 at 100.00 A+ (4) 1,102,700
Series 2002K, 5.750%, 7/01/20 (Pre-refunded 1/01/12) - FGIC
Insured
3,500 Indiana Bond Bank, Special Program Bonds, East Chicago 2/10 at 101.00 AA (4) 3,586,450
Facilities Building Corporation, Series 2000A, 6.125%, 2/01/25
(Pre-refunded 2/01/10) - AMBAC Insured
3,880 Indiana Finance Authority Health System Revenue Bonds Series 11/19 at 100.00 Aa3 3,788,354
2009A (Sisters of St. Francis Health Services, Inc. Obligated
Group), 5.250%, 11/01/39 (WI/DD, Settling 11/05/09)
Indiana Transportation Finance Authority, Highway Revenue Bonds,
Series 2000:
805 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 848,607
4,195 5.375%, 12/01/25 (Pre-refunded 12/01/10) 12/10 at 100.00 AA+ (4) 4,422,243
Indiana University, Student Fee Revenue Bonds, Series 2004P:
2,750 5.000%, 8/01/22 - AMBAC Insured 8/14 at 100.00 Aa1 2,890,278
1,600 5.000%, 8/01/24 - AMBAC Insured 8/14 at 100.00 Aa1 1,670,512
4,300 Saint Joseph County, Indiana, Educational Facilities Revenue 3/18 at 100.00 Aaa 4,494,962
Bonds, University of Notre Damedu Lac, Refunding Series 2009.,
5.000%, 3/01/36
1,550 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BB+ 1,341,789
Madison Center Inc., Series 2005, 5.250%, 2/15/23
----------------------------------------------------------------------------------------------------------------------------------
23,580 Total Indiana 24,145,895
----------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,000 Iowa Finance Authority, Healthcare Revenue Bonds, Genesis 7/10 at 100.00 A1 2,012,420
Medical Center, Series 2000, 6.250%, 7/01/25
8,100 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 5,908,302
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
1,920 Iowa Tobacco Settlement Authority, Tobacco Settlement 6/11 at 101.00 AAA 2,049,926
Asset-Backed Revenue Bonds, Series 2001B, 5.300%, 6/01/25
(Pre-refunded 6/01/11)
----------------------------------------------------------------------------------------------------------------------------------
12,020 Total Iowa 9,970,648
----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
85 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 86,850
Single Family Mortgage Revenue Refunding Bonds, Series 1994A-1,
7.900%, 5/01/24 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.5% (2.3% OF TOTAL INVESTMENTS)
$ 150 Bossier Public Trust Financing Authority, Louisiana, Single 2/10 at 100.00 AAA $ 150,153
Family Mortgage Revenue Refunding Bonds, Series 1995B, 6.125%,
8/01/28
4,350 Louisiana Citizens Property Insurance Corporation, Assessment 6/16 at 100.00 A- 4,264,262
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+ 3,958,720
Franciscan Missionaries of Our Lady Health System, Series
2005A, 5.250%, 8/15/31
2,700 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 2,538,648
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuel Tax Revenue Bonds, Series
2006A:
14,550 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 14,300,468
5,920 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 5,550,888
Tobacco Settlement Financing Corporation, Louisiana, Tobacco
Settlement Asset-Backed Bonds, Series 2001B:
25 5.500%, 5/15/30 5/11 at 101.00 BBB 25,096
5,030 5.875%, 5/15/39 5/11 at 101.00 BBB 4,552,402
----------------------------------------------------------------------------------------------------------------------------------
36,725 Total Louisiana 35,340,637
----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 1,686,725
Revenue Bonds, Series 2006A, 5.250%, 9/01/26 - SYNCORA GTY
Insured
1,205 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 1,116,830
Revenue Refunding Bonds, University of Maryland College Park
Projects, Series 2006, 5.000%, 6/01/28 - CIFG Insured
1,390 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 1,586,060
Revenue Bonds, Life Bridge Health System, Series 2004A, 5.250%,
7/01/19 (Pre-refunded 7/01/14)
----------------------------------------------------------------------------------------------------------------------------------
4,460 Total Maryland 4,389,615
----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.2% (2.7% OF TOTAL INVESTMENTS)
1,625 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,556,084
Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series
2000A, 8.375%, 7/01/14 (Alternative Minimum Tax)
1,410 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 1,262,162
Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series
2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB 899,590
Hampshire College, Series 2004, 5.700%, 10/01/34
9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 BBB+ 9,117,656
Revenue Bonds, Berkshire Health System, Series 2001E, 5.700%,
10/01/25 - RAAI Insured
1,100 Massachusetts Health and Educational Facilities Authority, 1/11 at 100.00 BBB 1,077,901
Revenue Bonds, Caritas Christi Obligated Group, Series 1999A,
5.625%, 7/01/20
2,645 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R 2,340,825
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.000%, 5/15/25 - FGIC Insured
105 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 N/R (4) 114,599
Revenue Bonds, New England Medical Center Hospitals, Series
2002H, 5.000%, 5/15/25 (Pre-refunded 5/15/12) - FGIC Insured
3,795 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 AAA 3,507,529
Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
Massachusetts, General Obligation Bonds, Consolidated Loan,
Series 2002E:
11,400 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 12,693,786
1,850 5.250%, 1/01/21 (Pre-refunded 1/01/13) - FSA Insured 1/13 at 100.00 AAA 2,059,957
Massachusetts, Special Obligation Dedicated Tax Revenue Bonds,
Series 2004:
2,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 2,537,708
4,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 4,511,480
----------------------------------------------------------------------------------------------------------------------------------
40,355 Total Massachusetts 41,679,277
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 47
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.0% (1.9% 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 $ 4,615,916
7,955 0.000%, 12/01/22 No Opt. Call AAA 4,537,293
8,260 0.000%, 12/01/23 No Opt. Call AAA 4,444,789
8,575 0.000%, 12/01/24 No Opt. Call AAA 4,363,303
1,200 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BB+ 968,484
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
6,200 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 5,985,232
Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%,
11/15/39 (WI/DD, Settling 11/03/09)
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,497,945
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB)
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 Baa3 262,776
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- 3,415,548
Obligation Bonds, Series 2003, 5.000%, 5/01/22
----------------------------------------------------------------------------------------------------------------------------------
44,960 Total Michigan 30,091,286
----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.3% (1.5% OF TOTAL INVESTMENTS)
8,165 Cohasset, Minnesota, Pollution Control Revenue Bonds, Allete 7/14 at 100.00 A2 8,234,158
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 1,028,690
1,050 5.875%, 12/01/29 12/13 at 100.00 Baa1 1,053,518
2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,532,024
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25
(Pre-refunded 1/01/11) - FGIC Insured
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 A (4) 3,165,030
Minnesota, Subordinate Airport Revenue Bonds, Series 2001C,
5.250%, 1/01/26 (Pre-refunded 1/01/11) - FGIC Insured
275 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/10 at 100.00 AA+ 276,177
Series 1995D, 5.950%, 2/01/18 - NPFG Insured
300 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 300,270
Bonds, Series 1996G, 6.250%, 7/01/26 (Alternative Minimum Tax)
625 Minnesota Housing Finance Agency, Single Family Mortgage 1/10 at 100.00 AA+ 636,481
Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
860 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 871,980
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 1,059,090
Series 2004A, 5.250%, 10/01/19
1,055 Southern Minnesota Municipal Power Agency, Power Supply 1/10 at 100.00 Aaa 1,073,051
System Revenue Bonds, Series 1992B, 5.750%, 1/01/11 (ETM)
1,620 St. Louis Park, Minnesota, Revenue Bonds, Park Nicollet 7/14 at 100.00 N/R (4) 1,854,009
Health Services, Series 2003B, 5.500%, 7/01/25 (Pre-refunded
7/01/14)
1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 BB+ 962,150
Revenue Bonds, Healtheast Inc., Series 2005, 6.000%, 11/15/25
----------------------------------------------------------------------------------------------------------------------------------
22,350 Total Minnesota 23,046,628
----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.4% (0.2% OF TOTAL INVESTMENTS)
3,675 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 AA 3,742,657
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24 (UB)
----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.3% (1.5% OF TOTAL INVESTMENTS)
2,000 Cole County Industrial Development Authority, Missouri, 2/14 at 100.00 N/R 1,881,180
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+ 191,114
Facilities Revenue Bonds, Hannibal Regional Hospital, Series
2006, 5.000%, 3/01/22
2,885 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 2,834,368
Facilities Revenue Bonds, Freeman Health System, Series 2004,
5.500%, 2/15/24
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
$ 9,000 Kansas City, Missouri, Airport Revenue Bonds, General 9/12 at 100.00 A+ $ 9,393,300
Improvement Projects, Series 2003B, 5.250%, 9/01/17 - FGIC
Insured
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
780 6.000%, 6/01/20 No Opt. Call A 833,547
1,525 5.000%, 6/01/35 6/15 at 100.00 A 1,367,025
1,000 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 1,016,960
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+ 1,191,516
Bonds, Lake Regional Health System, Series 2003, Reg S, 5.125%,
2/15/18
1,080 Missouri Health and Educational Facilities Authority, Revenue 6/11 at 101.00 AA- 1,104,289
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 2001 A:
170 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 184,100
1,250 5.250%, 6/01/21 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 1,353,675
2,000 5.250%, 6/01/28 (Pre-refunded 6/01/11) - AMBAC Insured 6/11 at 101.00 AA- (4) 2,165,880
----------------------------------------------------------------------------------------------------------------------------------
23,090 Total Missouri 23,516,954
----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,470 Municipal Energy Agency of Nebraska, Power Supply System Revenue 4/13 at 100.00 AAA 1,524,464
Bonds, Series 2003A, 5.250%, 4/01/23 - FSA Insured
1,050 Omaha Public Power District, Nebraska, Separate Electric System 2/17 at 100.00 AAA 1,595,989
Revenue Bonds, Nebraska City 2, Series 2006A, 19.714%,
2/01/49 - BHAC Insured (IF)
----------------------------------------------------------------------------------------------------------------------------------
2,520 Total Nebraska 3,120,453
----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.2% (1.4% OF TOTAL INVESTMENTS)
10,410 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AA (4) 11,605,276
Series 2002C, 5.500%, 6/15/18 (Pre-refunded 6/15/12) - NPFG
Insured
5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway Improvement 7/13 at 100.00 AA- 5,925,098
Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured
4,000 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 Aa3 4,117,560
Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
1,000 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 Caa2 205,010
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
21,205 Total Nevada 21,852,944
----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.4% (2.8% OF TOTAL INVESTMENTS)
5,480 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aa3 5,796,196
Bonds, Series 2003, 5.125%, 12/15/20 - FSA Insured
135 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aa3 (4) 154,263
Bonds, Series 2003, 5.125%, 12/15/20 (Pre-refunded 12/15/13) -
FSA Insured
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
1,325 5.250%, 9/01/24 9/15 at 100.00 AA- 1,395,570
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,046,940
520 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 507,302
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,675 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/09 at 100.00 A+ 3,675,294
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 - AMBAC
Insured (Alternative Minimum Tax)
3,400 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,888,376
System Bonds, Series 2003C, 5.500%, 6/15/22 (Pre-refunded
6/15/13)
3,425 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 3,810,484
System Bonds, Series 2006A, 5.250%, 12/15/20
4,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A+ 4,250,080
5.000%, 1/01/19 - FGIC Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,161,610
5.000%, 1/01/24 - FSA Insured
5,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2009H, 1/19 at 100.00 A+ 4,999,650
5.000%, 1/01/36 (WI/DD, Settling 11/10/09)
Nuveen Investments 49
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 10,500 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB $ 8,066,520
Settlement Asset-Backed Bonds, Series 2007-1A, 5.000%, 6/01/29
3,055 Union County Utilities Authority, New Jersey, Solid Waste 12/09 at 100.50 Baa3 3,017,149
Facility Subordinate Lease Revenue Bonds, Ogden Martin Systems
of Union Inc., Series 1998A, 5.350%, 6/01/23 - AMBAC Insured
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
44,515 Total New Jersey 43,769,434
----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.4% (4.8% OF TOTAL INVESTMENTS)
5,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 4,940,650
Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%,
2/01/28 - FGIC Insured
Dormitory Authority of the State of New York, Revenue Bonds,
Marymount Manhattan College, Series 1999:
1,975 6.375%, 7/01/16 - RAAI Insured 1/10 at 101.00 BBB- 1,997,910
2,080 6.375%, 7/01/17 - RAAI Insured 1/10 at 101.00 BBB- 2,103,691
1,500 Dormitory Authority of the State of New York, State and Local 7/14 at 100.00 AA- 1,571,250
Appropriation Lease Bonds, Upstate Community Colleges, Series
2004B, 5.250%, 7/01/19
1,250 Hempstead Town Industrial Development Agency, New York, Revenue 10/15 at 100.00 A 1,269,138
Bonds, Adelphi University, Civic Facility Project, Series
2005, 5.000%, 10/01/30
5,025 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 4,237,331
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 A 2,982,903
Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
2,500 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 2,648,675
Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/22 (UB)
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Series 2003B:
6,875 5.000%, 8/01/23 (UB) 8/13 at 100.00 AAA 7,333,563
7,260 5.000%, 8/01/24 (UB) 8/13 at 100.00 AAA 7,695,890
35 New York City, New York, General Obligation Bonds, Fiscal No Opt. Call AA 35,032
Series 1996J, 5.500%, 2/15/26
2,150 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AA 2,223,036
Series 2005J, 5.000%, 3/01/25
5,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 5,179,650
Series 2005M, 5.000%, 4/01/24 (UB)
4,000 New York City, New York, General Obligation Bonds, Series 8/14 at 100.00 AA 4,226,360
2004C-1, 5.250%, 8/15/20 (UB)
1,855 New York Convention Center Development Corporation, Hotel Fee 11/15 at 100.00 AAA 2,029,518
Revenue Bonds, Trust 2364, 6.993%, 11/15/44 - BHAC Insured (IF)
New York State Municipal Bond Bank Agency, Special School
Purpose Revenue Bonds, Series 2003C:
6,000 5.250%, 6/01/20 6/13 at 100.00 A+ 6,345,420
5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,306,142
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- 3,446,444
2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,122,760
6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call A 6,558,375
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
6.250%, 12/01/15 - NPFG Insured (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
72,555 Total New York 74,253,738
----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,775 Charlotte-Mecklenberg Hospital Authority, North Carolina, 1/18 at 100.00 AA- 1,583,407
Carolinas HealthCare System Revenue Bonds, Series 2008A,
Trust 1149, 14.759%, 1/15/47 (IF)
2,030 Durham Urban Redevelopment Authority, North Carolina, 2/10 at 103.00 AAA 2,096,381
FHA-Insured Mortgage Loan Revenue Bonds, Durham Hosiery Mill,
Series 1987, 7.500%, 8/01/29 (Alternative Minimum Tax)
435 North Carolina Housing Finance Agency, Single Family Revenue 3/10 at 100.00 AA 435,444
Bonds, Series 1996JJ, 6.450%, 9/01/27 (Alternative Minimum Tax)
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA (continued)
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+ $ 1,315,550
2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,563,485
----------------------------------------------------------------------------------------------------------------------------------
7,935 Total North Carolina 7,994,267
----------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.1% (0.0% OF TOTAL INVESTMENTS)
470 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa1 485,877
Program Bonds, Series 2000C, 6.150%, 7/01/31 (Alternative
Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.5% (2.3% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
85 5.125%, 6/01/24 6/17 at 100.00 BBB 75,706
900 5.875%, 6/01/30 6/17 at 100.00 BBB 783,333
845 5.750%, 6/01/34 6/17 at 100.00 BBB 710,603
1,965 5.875%, 6/01/47 6/17 at 100.00 BBB 1,455,908
3,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 3,491,790
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 - NPFG Insured 5/13 at 100.00 AA 2,429,631
4,105 5.250%, 5/15/18 - NPFG Insured 5/13 at 100.00 AA 4,270,062
10,000 Greene County, Ohio, Hospital Facilities Revenue Bonds, 4/19 at 100.00 A 9,743,600
Kettering Health Nretwork Series 2009, 5.500%, 4/01/39 (WI/DD,
Settling 11/03/09)
2,000 Ohio Housing Finance Agency, FHA-Insured Multifamily Housing 1/10 at 100.00 Aa2 2,000,380
Mortgage Revenue Bonds, Courtyards of Kettering, Series
1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax)
5,250 Ohio Water Development Authority, Solid Waste Disposal Revenue 3/10 at 101.00 N/R 4,746,840
Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20
(Alternative Minimum Tax)
5,700 Ohio Water Development Authority, Solid Waste Disposal Revenue 3/10 at 102.00 N/R 5,472,114
Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
36,180 Total Ohio 35,179,967
----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.4% (1.5% OF TOTAL INVESTMENTS)
750 Norman Regional Hospital Authority, Oklahoma, Hospital Revenue 9/16 at 100.00 BBB- 668,625
Bonds, Series 2005, 5.375%, 9/01/36
Oklahoma Development Finance Authority, Revenue Bonds, Saint
John Health System, Series 2007:
3,440 5.000%, 2/15/37 2/17 at 100.00 A 3,296,518
1,020 5.000%, 2/15/42 2/17 at 100.00 A 962,339
10,000 Oklahoma Municipal Power Authority, Power Supply System Revenue 1/17 at 100.00 A 8,726,200
Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
5,000 Oklahoma State Student Loan Authority, Senior Lien Revenue 6/11 at 102.00 AAA 4,978,050
Bonds, Series 2001A-1, 5.625%, 6/01/31 (Alternative Minimum Tax)
99 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 92,518
Bonds, Saint Francis Health System, Series 2006, Trust 3500,
8.366%, 12/15/36 (IF)
5,460 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 5,263,440
Bonds, Saint Francis Health System, Series 2006, 5.000%,
12/15/36 (UB)
----------------------------------------------------------------------------------------------------------------------------------
25,769 Total Oklahoma 23,987,690
----------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.8% (0.5% OF TOTAL INVESTMENTS)
7,860 Multnomah County Hospital Facilities Authority, Oregon, Revenue 10/14 at 100.00 AA 8,288,134
Bonds, Sisters of Providence Health System, Series 2004,
5.500%, 10/01/21 (UB)
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.4% (1.5% OF TOTAL INVESTMENTS)
3,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 3,601,500
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG Insured
1,500 Annville-Cleona School District, Lebanon County, Pennsylvania, 3/15 at 100.00 Aa3 1,640,520
General Obligation Bonds, Series 2005, 6.000%, 3/01/28 - FSA
Insured
Nuveen Investments 51
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB $ 412,305
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
1,050 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call Aa2 1,176,630
Government Revenue Bonds, Series 1997B, 5.700%, 7/01/27 -
AMBAC Insured
5,850 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 5,411,777
Bonds, School District of Philadelphia, Series 2006B, 4.500%,
6/01/32 - FSA Insured
1,000 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 1,046,500
2005, 5.000%, 9/01/29
15,000 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/27 at 100.00 A2 9,344,850
Capital Appreciation Series 2009E, 0.000%, 12/01/38
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 1,069,404
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
29,450 Total Pennsylvania 23,703,486
----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4% (0.3% OF TOTAL INVESTMENTS)
5,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 4,266,050
Asset-Backed Refunding Bonds, Series 2002, 5.500%, 5/15/39
----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.7% (1.1% OF TOTAL INVESTMENTS)
Rhode Island Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed Bonds, Series 2002A:
7,700 6.000%, 6/01/23 6/12 at 100.00 BBB 7,763,525
6,150 6.125%, 6/01/32 6/12 at 100.00 BBB 5,818,023
4,300 6.250%, 6/01/42 6/12 at 100.00 BBB 3,908,227
----------------------------------------------------------------------------------------------------------------------------------
18,150 Total Rhode Island 17,489,775
----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.4% (3.4% OF TOTAL INVESTMENTS)
9,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 9,195,120
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) 17,840,207
Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17
(Pre-refunded 12/01/12)
2,500 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AA- 2,520,750
Refunding Bonds, Series 2003A, 5.000%, 5/01/25 - AMBAC Insured
7,600 Piedmont Municipal Power Agency, South Carolina, Electric 1/10 at 100.00 A 6,983,184
Revenue Bonds, Series 1991, 4.000%, 1/01/23 - NPFG Insured
1,250 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A3 (4) 1,413,713
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.625%, 11/15/30 (Pre-refunded 11/15/12)
4,750 South Carolina JOBS Economic Development Authority, Economic 11/12 at 100.00 A- 4,786,100
Development Revenue Bonds, Bon Secours Health System Inc.,
Series 2002B, 5.625%, 11/15/30
South Carolina JOBS Economic Development Authority, Hospital
Refunding and Improvement Revenue Bonds, Palmetto Health
Alliance, Series 2003C:
1,335 6.875%, 8/01/27 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 1,572,456
165 6.875%, 8/01/27 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 195,005
4,450 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 5,162,223
550 6.375%, 8/01/34 (Pre-refunded 8/01/13) 8/13 at 100.00 BBB+ (4) 640,200
3,280 Tobacco Settlement Revenue Management Authority, South 5/12 at 100.00 BBB (4) 3,441,901
Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B,
6.000%, 5/15/22 (Pre-refunded 5/15/12)
----------------------------------------------------------------------------------------------------------------------------------
50,325 Total South Carolina 53,750,859
----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 3,108,256
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 A2 1,521,270
Revenue Bonds, Series 1999D, 6.000%, 3/01/19 - AMBAC Insured
(Alternative Minimum Tax)
Sumner County Health, Educational, and Housing Facilities
Board, Tennessee, Revenue Refunding Bonds, Sumner Regional
Health System Inc., Series 2007:
800 5.500%, 11/01/37 11/17 at 100.00 N/R 304,080
1,000 5.500%, 11/01/46 11/17 at 100.00 N/R 380,100
----------------------------------------------------------------------------------------------------------------------------------
6,500 Total Tennessee 5,313,706
----------------------------------------------------------------------------------------------------------------------------------
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.3% (4.7% OF TOTAL INVESTMENTS)
$ 5,810 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 AAA $ 5,528,389
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Caa3 2,983,269
Refunding Bonds, TXU Electric Company, Series 1999C, 7.700%,
3/01/32 (Alternative Minimum Tax)
10,000 Brazos River Harbor Navigation District, Brazoria County, 5/12 at 101.00 BBB- 10,220,400
Texas, Environmental Facilities Revenue Bonds, Dow Chemical
Company Project, Series 2002A-6, 6.250%, 5/15/33
(Mandatory put 5/15/17) (Alternative Minimum Tax)
3,345 Fort Worth, Texas, Water and Sewerage Revenue Bonds, Series 2/12 at 100.00 Aa2 (4) 3,698,600
2001, 5.625%, 2/15/19 (Pre-refunded 2/15/12)
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/10 at 100.00 BBB 4,630,150
Disposal Revenue Bonds, Valero Refining and Marketing Company
Project, Series 1997, 5.600%, 12/01/31 (Alternative Minimum Tax)
Harris County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Memorial Hermann Healthcare System,
Series 2004A:
1,000 5.000%, 12/01/20 12/14 at 100.00 A 1,003,520
1,000 5.000%, 12/01/21 12/14 at 100.00 A 998,160
2,500 5.125%, 12/01/22 12/14 at 100.00 A 2,496,350
2,800 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 A 2,563,288
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 - NPFG Insured
4,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 4,206,200
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call A- 4,202,531
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 766,506
Unlimited Tax General Obligation Refunding Bonds, Series 2001,
5.250%, 8/15/26
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series
2005:
800 5.250%, 8/15/21 No Opt. Call BBB- 772,656
1,250 5.125%, 8/15/26 No Opt. Call BBB- 1,142,563
3,100 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 3,135,960
Refunding Bonds, Series 2008, 5.750%, 1/01/38
2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,118,800
Unlimited Tax Schoolhouse Bonds, Series 2001A, 5.250%, 2/15/22
(Pre-refunded 2/15/11)
1,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 CCC 446,940
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 4,153,865
Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001,
5.125%, 2/01/26 (Pre-refunded 2/01/11)
7,100 Tarrant County Cultural & Educational Facilities Financing 2/17 at 100.00 AA- 6,847,879
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
3,755 Texas State, General Obligation Bonds, Series 2007, Trust 3213, 4/17 at 100.00 AA+ 4,633,896
13.749%, 4/01/33 (IF)
3,900 Texas, General Obligation Bonds, Veterans Housing Assistance 12/11 at 101.00 AA+ 3,924,531
Program Fund II, Series 2001, 5.200%, 12/01/21 (Alternative
Minimum Tax) (UB)
2,905 Weatherford Independent School District, Parker County, Texas, 2/11 at 44.73 AAA 1,222,773
Unlimited Tax School Building and Refunding Bonds, Series
2001, 0.000%, 2/15/25
4,040 Weatherford Independent School District, Parker County, Texas, 2/11 at 44.73 AAA 1,788,750
Unlimited Tax School Building and Refunding Bonds, Series
2001, 0.000%, 2/15/25 (Pre-refunded 2/15/11)
----------------------------------------------------------------------------------------------------------------------------------
85,925 Total Texas 73,485,976
----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6% (0.4% OF TOTAL INVESTMENTS)
6,335 Riverton, Utah, Hospital Revenue Bonds, IHC Health Services, 8/19 at 100.00 AA+ 6,186,634
Inc., Series 2009, 5.000%, 8/15/41 (WI/DD, Settling 11/05/09)
100 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 101.00 AAA 102,120
Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax)
65 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/10 at 100.00 AAA 66,970
Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
6,500 Total Utah 6,355,724
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 53
NPM | Nuveen Premium Income Municipal Fund 2, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.1% (0.1% OF TOTAL INVESTMENTS)
$ 900 Virgin Islands Public Finance Authority, Revenue Bonds, 1/15 at 100.00 BBB $ 821,025
Refinery Project Hovensa LLC, Series 2007, 4.700%, 7/01/22
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 5.7% (3.7% OF TOTAL INVESTMENTS)
15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AA 14,479,796
Consolidated System Revenue Bonds, Series 2002A, 5.450%,
7/01/37 - AMBAC Insured (Alternative Minimum Tax)
6,000 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 Aaa 6,571,980
Bonds, Columbia Generating Station - Nuclear Project 2, Series
2002C, 5.750%, 7/01/17 - NPFG Insured
5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,571,900
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 (UB)
10,080 King County School District 401, Highline, Washington, 6/12 at 100.00 AA+ 11,140,920
General Obligation Bonds, Series 2002, 5.500%, 12/01/16 -
FGIC Insured
2,500 King County, Washington, Sewer Revenue Bonds, Series 2009, 1/19 at 100.00 AA+ 2,605,100
5.250%, 1/01/42
6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 9/12 at 100.00 A1 7,146,995
5.250%, 9/01/22 - FGIC Insured
2,820 Skagit County Public Hospital District 1, Washington, 12/14 at 100.00 A3 2,948,141
General Obligation Bonds, Series 2004A, 5.375%, 12/01/19 -
NPFG Insured
2,500 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AA 2,659,850
Bonds, Series 2001, 5.125%, 12/01/22 - NPFG Insured
1,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 800,090
Bonds, Northwest Hospital and Medical Center of Seattle,
Series 2007, 5.700%, 12/01/32
3,005 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 3,042,232
Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%,
6/01/26
----------------------------------------------------------------------------------------------------------------------------------
54,870 Total Washington 56,967,004
----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,045,000
Bonds, Appalachian Power Company, Series 2003L, 5.500%,
10/01/22
1,000 Pleasants County, West Virginia, Pollution Control Revenue 4/10 at 100.00 Baa3 963,010
Bonds, West Penn Power Company Pleasants Station Project,
Series 1999E, 5.500%, 4/01/29 - AMBAC Insured (Alternative
Minimum Tax)
2,355 West Virginia University, Unlimited Tax General Revenue 10/14 at 100.00 A+ 2,427,322
Bonds, Student Fees, Series 2004C, 5.000%, 10/01/24 - FGIC
Insured
----------------------------------------------------------------------------------------------------------------------------------
8,355 Total West Virginia 8,435,332
----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.9% (1.2% OF TOTAL INVESTMENTS)
5,105 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 100.00 A3 5,106,991
Bonds, Aurora Health Care Inc., Series 1999A, 5.600%, 2/15/29
315 Wisconsin Health and Educational Facilities Authority, Revenue 5/16 at 100.00 BBB 258,577
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+ 986,470
Bonds, Fort Healthcare Inc., Series 2004, 5.750%, 5/01/24
3,215 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 100.00 A 3,215,803
Bonds, Marshfield Clinic, Series 1997, 5.625%, 2/15/17 -
NPFG Insured
4,530 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 BBB+ 3,861,416
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
5,300 Wisconsin State, General Obligation Bonds, Series 2006, 5/16 at 100.00 AA 5,493,980
4.750%, 5/01/25 - FGIC Insured (UB)
----------------------------------------------------------------------------------------------------------------------------------
19,465 Total Wisconsin 18,923,237
----------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,750 Sweetwater County, Wyoming, Solid Waste Disposal Revenue Bonds, 12/15 at 100.00 BBB+ 2,585,082
FMC Corporation, Series 2005, 5.600%, 12/01/35 (Alternative
Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
$ 1,656,084 Total Long-Term Investments (cost $1,504,035,040) - 152.7% 1,532,486,553
=============---------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.9% (1.9% OF TOTAL INVESTMENTS)
MARYLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 1,950 Maryland Health and Higher Educational Facilities Authority, 11/09 at 100.00 A-1 $ 1,950,000
Goucher College, Variable Rate Demand Obligations, Series
2007, 0.230%, 7/01/37 (5)
3,000 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 A-1 3,000,000
Facilities Projects, Variable Rate Demand Obligations, Series
2008, Trust R-11436, 0.240%, 7/01/34 - FSA Insured (5)
----------------------------------------------------------------------------------------------------------------------------------
4,950 Total Maryland 4,950,000
----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 0.5% (0.3% OF TOTAL INVESTMENTS)
5,000 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 VMIG-1 5,000,000
Purpose Revenue Bonds, Variable Rate Demand Obligations,
Tender Option Bond Trust R-11665, 0.200%, 5/15/25 (5)
----------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,400 Columbus, Ohio, Sewerage System Revenue Bonds, Trust 2456, No Opt. Call VMIG-1 1,400,000
Variable Rate Demand Obligations, Series 2008, 0.200%,
6/01/26 (5)
----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.4% (0.3% OF TOTAL INVESTMENTS)
3,990 South Carolina Association of Governmental Organizations, No Opt. Call A-1+ 3,990,000
Educational Facilities Corporation for Pickens School
District, Installment Purchase Revenue Bonds, Pickens
County, Variable Rate Demand Obligations, Tender Option
Bond Trust 2007-0003, 0.200%, 12/01/14 (5)
----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
3,000 Red River Authority, Texas, Pollution Control Revenue Bonds, 11/09 at 100.00 A-1+ 3,000,000
Southwestern Public Service Company, Variable Rate Demand
Obligations, Series 1996, 8.500%, 7/01/16 - AMBAC Insured (5)
----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.1% (0.7% OF TOTAL INVESTMENTS)
10,695 Central Puget Sound Regional Transit Authority, Washington, 11/17 at 100.00 AA 10,695,000
Sales and Use Tax Revenue Bonds, Variable Rate Demand
Obligations, Tender Option Bond Trust 2007-1C, 0.200%,
11/01/32 - FSA Insured (5)
----------------------------------------------------------------------------------------------------------------------------------
$ 29,035 Total Short-Term Investments (cost $29,035,000) 29,035,000
=============---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,533,070,040) - 155.6% 1,561,521,553
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.2)% (102,434,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.2% 31,802,952
------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.6)% (6) (487,525,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 1,003,365,505
==================================================================================================================
(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 Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 31.2%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 55
NPT | Nuveen Premium Income Municipal Fund 4, Inc.
| Portfolio of Investments
October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.9% (3.1% OF TOTAL INVESTMENTS)
$ 5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- $ 5,286,218
Bonds, Series 2001, 5.750%, 12/01/16
2,395 Alabama Housing Finance Authority, FNMA Multifamily Housing 2/11 at 102.00 AAA 2,451,498
Revenue Bonds, South Bay Apartments, Series 2000K, 5.950%,
2/01/33 (Alternative Minimum Tax)
11,895 Alabama Special Care Facilities Financing Authority, 11/09 at 100.00 Aaa 11,934,254
Birmingham, Hospital Revenue Bonds, Daughters of Charity
National Health System - Providence Hospital and St.
Vincent's Hospital, Series 1995, 5.000%, 11/01/25 (ETM)
5,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 AA 4,984,450
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/39
(UB)
1,000 Birmingham Special Care Facilities Financing Authority, 11/15 at 100.00 Baa2 871,640
Alabama, Revenue Bonds, Baptist Health System Inc., Series
2005A, 5.000%, 11/15/30
1,000 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 909,990
Control Revenue Bonds, International Paper Company, Series
2005A, 5.000%, 6/01/25
----------------------------------------------------------------------------------------------------------------------------------
26,440 Total Alabama 26,438,050
----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0% (0.6% OF TOTAL INVESTMENTS)
1,665 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AA 1,692,572
Bonds, Series 2005A, 5.000%, 12/01/30 - FGIC Insured (UB)
3,065 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 A+(4) 3,515,034
Bonds, Series 2003E, 5.250%, 12/01/26 (Pre-refunded
12/01/13) - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
4,730 Total Alaska 5,207,606
----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.4% (0.9% OF TOTAL INVESTMENTS)
5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 A2 4,902,400
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/31 - NPFG Insured
3,000 Salt Verde Financial Corporation, Arizona, Senior Gas No Opt. Call A 2,566,050
Revenue Bonds, Series 2007, 5.000%, 12/01/37
----------------------------------------------------------------------------------------------------------------------------------
8,000 Total Arizona 7,468,450
----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.0% (0.0% OF TOTAL INVESTMENTS)
5 Lonoke County Residential Housing Facilities Board, 4/10 at 100.00 Aa1 4,897
Arkansas, FNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 4/01/11
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 16.3% (10.5% OF TOTAL INVESTMENTS)
10,000 Anaheim Public Finance Authority, California, Public 9/17 at 100.00 A 8,585,600
Improvement Project Lease Bonds, Series 2007A-1, 4.375%,
3/01/37 - FGIC Insured
17,000 California Health Facilities Financing Authority, Health 3/13 at 100.00 A 15,783,649
Facility Revenue Bonds, Adventist Health System/West,
Series 2003A, 5.000%, 3/01/33
5,000 California Health Facilities Financing Authority, Revenue 4/16 at 100.00 A+ 4,647,900
Bonds, Kaiser Permanante System, Series 2006, 5.000%,
4/01/37
2,900 California Health Facilities Financing Authority, Revenue 11/16 at 100.00 Aa3 2,684,327
Bonds, Sutter Health, Series 2007A, 5.000%, 11/15/42 (UB)
2,000 California Infrastructure Economic Development Bank, Revenue 8/11 at 102.00 A+ 2,013,260
Bonds, Kaiser Hospital Assistance LLC, Series 2001A,
5.550%, 8/01/31
1,000 California Statewide Community Development Authority, 7/15 at 100.00 BBB 834,460
Revenue Bonds, Daughters of Charity Health System, Series
2005A, 5.000%, 7/01/39
1,685 California Statewide Community Development Authority, 5/18 at 100.00 Aa3 1,785,026
Revenue Bonds, Sutter Health, Tender Option Bond Trust
3175, 13.438%, 11/15/48 (IF)
19,095 California, General Obligation Bonds, Series 2005, 5.000%, 6/15 at 100.00 A 18,009,257
6/01/33 - CIFG Insured
4,780 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 4,370,450
Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14 (ETM)
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
610 5.125%, 6/01/47 6/17 at 100.00 BBB 405,278
1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 738,880
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA $ 1,170,190
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39 (Pre-refunded 6/01/13)
3,190 Hillsborough City School District, San Mateo County, No Opt. Call AAA 1,304,008
California, General Obligation Bonds, Series 2006B, 0.000%,
9/01/27
2,700 M-S-R Energy Authority, California, Gas Revenue Bonds, No Opt. Call A 3,047,355
Citigroup Prepay Contracts, Series 2009C, 7.000%, 11/01/34
11,310 San Francisco Bay Area Rapid Transit District, California, 7/16 at 100.00 AAA 10,292,326
Sales Tax Revenue Bonds, Refunding Series 2006A, 4.250%,
7/01/31 - FSA Insured (UB)
670 San Francisco Redevelopment Finance Authority, California, 8/19 at 100.00 A- 698,904
Tax Allocation Revenue Bonds, Mission Bay North
Redevelopment Project, Series 2009, 6.500%, 8/01/39
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds, Series
1997A:
4,430 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 869,077
31,300 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 5,258,400
4,000 San Luis Obispo County Financing Authority, California, 9/17 at 100.00 AAA 4,029,760
Revenue Bonds, Nacimiento Water Project, Tender Option Bond
Trust 3030, 17.676%, 9/01/38 - MBIA Insured (IF)
1,945 South Gate Public Financing Authority, California, Water No Opt. Call A 2,064,890
Revenue Refunding Bonds, Series 1996A, 6.000%, 10/01/12 -
FGIC Insured
----------------------------------------------------------------------------------------------------------------------------------
125,615 Total California 88,592,997
----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.5% (2.9% OF TOTAL INVESTMENTS)
2,000 Colorado Health Facilities Authority, Revenue Refunding 9/11 at 100.00 AA (4) 2,158,580
Bonds, Catholic Health Initiatives, Series 2001, 5.250%,
9/01/21 (Pre-refunded 9/01/11)
325 Colorado Housing Finance Authority, Single Family Program 4/10 at 105.00 Aa2 351,224
Senior Bonds, Series 1999C-3, 6.750%, 10/01/21
1,925 Denver City and County, Colorado, Airport System Revenue No Opt. Call A+ 2,118,116
Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum
Tax)
Denver Convention Center Hotel Authority, Colorado, Senior
Revenue Bonds, Convention Center Hotel, Series 2003A:
2,940 5.000%, 12/01/20 (Pre-refunded 12/01/13) - SYNCORA GTY Insured 12/13 at 100.00 N/R (4) 3,298,004
10,000 5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY Insured 12/13 at 100.00 N/R (4) 11,217,700
4,345 El Paso County School District 20, Academy, Colorado, 12/12 at 100.00 Aa3 4,624,384
General Obligation Bonds, Series 2002, 5.250%, 12/15/17 -
FGIC Insured
755 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 810,213
Obligation Bonds, Series 2004, 5.000%, 12/15/22 - FSA
Insured (UB)
----------------------------------------------------------------------------------------------------------------------------------
22,290 Total Colorado 24,578,221
----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6% (1.1% OF TOTAL INVESTMENTS)
District of Columbia, Revenue Bonds, Georgetown University,
Series 2001A:
9,670 0.000%, 4/01/26 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 42.15 A (4) 3,973,596
15,235 0.000%, 4/01/30 (Pre-refunded 4/01/11) - NPFG Insured 4/11 at 32.93 A (4) 4,891,501
----------------------------------------------------------------------------------------------------------------------------------
24,905 Total District of Columbia 8,865,097
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.2% (4.6% OF TOTAL INVESTMENTS)
250 Brevard County Health Facilities Authority, Florida, Revenue 4/19 at 100.00 A- 270,955
Bonds, Health First Inc. Project, Series 2009B, 7.000%,
4/01/39
5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 A+ 5,051,350
Participation, Series 2003, 5.000%, 7/01/28 - NPFG Insured
5,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 Aa3 5,120,550
Bonds, Tampa International Airport, Series 2003A, 5.250%,
10/01/18 - NPFG Insured (Alternative Minimum Tax)
5,000 Martin County Industrial Development Authority, Florida, 12/09 at 100.00 BB+ 5,001,250
Industrial Development Revenue Bonds, Indiantown Cogeneration
LP, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax)
1,380 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 1,419,164
Multifamily Housing Revenue Bonds, Sunset Bay Apartments,
Series 2000-5A, 5.850%, 7/01/20 - FSA Insured (Alternative
Minimum Tax)
3,385 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/15 at 100.00 A2 3,055,707
International Airport, Series 2005A, 5.000%, 10/01/37 -
SYNCORA GTY Insured (Alternative Minimum Tax)
Nuveen Investments 57
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 5,455 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- $ 5,120,881
Revenue, Baptist Health System Obligation Group, Series 2007,
5.000%, 8/15/42 (UB)
11,000 Sunrise, Florida, Utility System Revenue Refunding Bonds, Series 10/18 at 100.00 N/R 11,181,610
1998, 5.000%, 10/01/28 - AMBAC Insured
1,995 Tolomato Community Development District, Florida, Special 5/14 at 101.00 N/R 1,283,403
Assessment Bonds, Series 2006, 5.400%, 5/01/37
1,855 Westchester Community Development District 1, Florida, Special 5/13 at 101.00 N/R 1,441,929
Assessment Bonds, Series 2003, 6.000%, 5/01/23
----------------------------------------------------------------------------------------------------------------------------------
40,320 Total Florida 38,946,799
----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.9% (1.9% OF TOTAL INVESTMENTS)
4,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series No Opt. Call A 4,634,344
1999A, 5.500%, 11/01/22 - FGIC Insured
1,500 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 1,515,120
2009B, 5.250%, 11/01/34 - FSA Insured
2,880 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call A+ 3,092,141
Bonds, Series 1992B, 8.250%, 1/01/11
5,500 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call A1 (4) 6,495,280
Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC Insured (ETM)
----------------------------------------------------------------------------------------------------------------------------------
14,280 Total Georgia 15,736,885
----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.1% (0.7% OF TOTAL INVESTMENTS)
3,720 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call AA 4,188,794
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13
1,580 Honolulu City and County, Hawaii, General Obligation Refunding No Opt. Call Aaa 1,791,325
and Improvement Bonds, Series 1993B, 5.000%, 10/01/13 (ETM)
----------------------------------------------------------------------------------------------------------------------------------
5,300 Total Hawaii 5,980,119
----------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,005 Idaho Housing and Finance Association, Single Family Mortgage No Opt. Call Aa3 1,033,562
Revenue Bonds, Series 2009BI, 5.650%, 7/01/26
750 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 641,948
Participation, Madison Memorial Hospital, Series 2006, 5.250%,
9/01/37
----------------------------------------------------------------------------------------------------------------------------------
1,755 Total Idaho 1,675,510
----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.1% (9.8% OF TOTAL INVESTMENTS)
4,000 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call A1 4,421,000
Certificates, Series 1992A, 6.250%, 1/01/15 - NPFG Insured
5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, Series 2001A, 1/11 at 101.00 AAA 5,486,508
5.125%, 1/01/26 - FSA Insured (Alternative Minimum Tax)
415 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 415,847
O'Hare International Airport, Series 2005A, 5.000%, 1/01/33 -
FGIC Insured
Cook County School District 99, Cicero, Illinois, General
Obligation School Bonds, Series 1997:
1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call N/R 1,784,805
1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call N/R 2,154,104
5,970 Illinois Development Finance Authority, GNMA Collateralized 4/11 at 105.00 Aaa 6,838,456
Mortgage Revenue Bonds, Greek American Nursing Home Committee,
Series 2000A, 7.600%, 4/20/40
1,665 Illinois Finance Authority Revenue Bonds, Rush University 5/19 at 100.00 A- 1,802,196
Medical Center Obligated Group, Series 2009C, 6.625%, 11/01/39
2,515 Illinois Finance Authority, Revenue Bonds, Northwestern Memorial 8/14 at 100.00 N/R (4) 2,884,529
Hospital, Series 2004A, 5.250%, 8/15/34 (Pre-refunded 8/15/14)
500 Illinois Finance Authority, Revenue Bonds, Provena Health, 8/19 at 100.00 BBB+ 562,440
Series 2009A, 7.750%, 8/15/34
5,565 Illinois Finance Authority, Revenue Bonds, Sherman Health 8/17 at 100.00 Baa1 5,092,643
Systems, Series 2007A, 5.500%, 8/01/37
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Illinois Finance Authority, Revenue Bonds, Silver Cross Hospital
and Medical Centers, Series 2009:
$ 2,000 6.875%, 8/15/38 8/19 at 100.00 BBB $ 2,102,220
2,000 7.000%, 8/15/44 8/19 at 100.00 BBB 2,105,080
4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 3,976,480
Revenue Refunding Bonds, Sinai Health System, Series 2003,
5.150%, 2/15/37
4,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Aaa 4,433,960
Medical Center, Series 2002, 5.500%, 5/15/32 (Pre-refunded
5/15/12)
4,005 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call Aa3 4,597,900
Lutheran General Health System, Series 1993C, 7.000%, 4/01/14
9,795 Lake, Cook, Kane and McHenry Counties Community Unit School No Opt. Call AAA 11,387,373
District 220, Barrington, Illinois, General Obligation Bonds,
Series 2002, 5.250%, 12/01/19 - FSA Insured (UB)
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
9,500 0.000%, 6/15/24 - NPFG Insured 6/22 at 101.00 AAA 7,278,235
4,540 5.000%, 12/15/28 - NPFG Insured 6/12 at 101.00 AAA 4,636,248
36,040 0.000%, 6/15/40 - NPFG Insured No Opt. Call AAA 6,426,653
3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call Aa3 3,739,392
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1990A, 7.200%, 11/01/20 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
108,250 Total Illinois 82,126,069
----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.1% (5.9% OF TOTAL INVESTMENTS)
Carmel Redevelopment Authority, Indiana, Lease Rent Revenue
Bonds, Series 2005:
1,950 0.000%, 2/01/24 No Opt. Call AA 975,254
2,705 0.000%, 2/01/25 No Opt. Call AA 1,276,057
3,000 Hospital Authority of Delaware County, Indiana, Hospital Revenue 8/16 at 100.00 Baa3 2,411,460
Bonds, Cardinal Health System, Series 2006, 5.250%, 8/01/36
3,965 Indiana Educational Facilities Authority, Revenue Bonds, Butler 2/11 at 100.00 A 4,032,802
University, Series 2001, 5.500%, 2/01/26 - NPFG Insured
1,000 Indiana Finance Authority Health System Revenue Bonds Series 11/19 at 100.00 Aa3 976,380
2009A (Sisters of St. Francis Health Services, Inc. Obligated
Group), 5.250%, 11/01/39 (WI/DD, Settling 11/05/09)
22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 A+ (4) 23,211,096
Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%,
2/15/30 (Pre-refunded 8/15/10) - NPFG Insured
2,650 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 3,026,857
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 A 2,439,948
Community Hospitals of Indiana, Series 2005A, 5.000%, 5/01/35 -
AMBAC Insured
4,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, 6/13 at 100.00 AAA 4,145,520
Series 2003A, 5.000%, 6/01/23 - FSA Insured
6,000 Indiana Transportation Finance Authority, Highway Revenue Bonds, 6/13 at 100.00 AAA 6,742,740
Series 2003A, 5.000%, 6/01/24 (Pre-refunded 6/01/13) - FSA
Insured
420 Marion County Convention and Recreational Facilities Authority, 12/09 at 100.00 A 420,059
Indiana, Excise Tax Lease Rental Revenue Bonds, Series 1997A,
5.000%, 6/01/27 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
50,490 Total Indiana 49,658,173
----------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.2% (0.1% OF TOTAL INVESTMENTS)
400 Iowa Finance Authority, Health Facilities Revenue Bonds, Iowa 8/19 at 100.00 Aa2 412,880
Health System, Series 2009, 5.625%, 8/15/37 - AGC Insured
1,000 Iowa Finance Authority, Health Facility Revenue Bonds, Care 7/16 at 100.00 BB+ 808,990
Initiatives Project, Series 2006A, 5.000%, 7/01/20
----------------------------------------------------------------------------------------------------------------------------------
1,400 Total Iowa 1,221,870
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.0% (1.3% OF TOTAL INVESTMENTS)
$ 2,000 Olathe, Kansas, Health Facilities Revenue Bonds, Olathe Medical 9/10 at 100.00 A+ $ 2,004,700
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 6,866,360
General Obligation Bonds, Series 2000, 3.500%, 9/01/16
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas Gas and 6/14 at 100.00 A 1,767,623
Electric Company, Series 2004, 5.300%, 6/01/31 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
10,575 Total Kansas 10,638,683
----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.2% (3.3% OF TOTAL INVESTMENTS)
165 DeSoto Parish, Louisiana, Environmental Improvement Revenue 11/14 at 100.00 BBB 158,186
Bonds, International Paper Company Project, Series 2004A,
5.000%, 11/01/18 (Alternative Minimum Tax)
1,000 Louisiana Local Government Environmental Facilities & Community 11/17 at 100.00 BB 964,990
Development Authority, Revenue Bonds, Westlake Chemical
Corporation Project, Series 2007, 6.750%, 11/01/32
1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,883,928
Community Development Authority, GNMA Collateralized Mortgage
Revenue Refunding Bonds, Sharlo Apartments, Series 2002A,
6.500%, 6/20/37
5,150 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ 5,075,531
Franciscan Missionaries of Our Lady Health System, Series
2005A, 5.250%, 8/15/32
3,800 Louisiana Public Facilities Authority, Revenue Bonds, Ochsner 5/17 at 100.00 A3 3,572,912
Clinic Foundation Project, Series 2007A, 5.500%, 5/15/47
Louisiana State, Gasoline and Fuel Tax Revenue Bonds, Series
2006A:
1,480 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 1,454,618
15,820 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 14,833,623
170 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 127,616
Residuals 660-1, 15.601%, 5/01/41 - FGIC Insured (IF)
----------------------------------------------------------------------------------------------------------------------------------
29,335 Total Louisiana 28,071,404
----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,815 Maryland Community Development Administration, Housing Revenue 1/10 at 100.00 Aa2 1,817,214
Bonds, Series 1996A, 5.875%, 7/01/16
2,900 Maryland Community Development Administration, Housing Revenue 1/10 at 100.00 Aa2 2,902,117
Bonds, Series 1997A, 6.000%, 7/01/39 (Alternative Minimum Tax)
50 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 51,559
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
2,210 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 2,088,538
Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%,
7/01/36 - NPFG Insured
1,935 Montgomery County Housing Opportunities Commission, Maryland, 1/10 at 100.00 Aa2 1,937,399
GNMA/FHA-Insured Multifamily Housing Revenue Bonds, Series
1996B, 6.400%, 7/01/28 (Alternative Minimum Tax)
2,315 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 2,335,395
Multifamily Housing Development Bonds, Series 2000B, 6.125%,
7/01/20 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
11,225 Total Maryland 11,132,222
----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,585 Massachusetts Development Finance Agency, Revenue Bonds, Curry 3/15 at 100.00 BBB 3,154,657
College, Series 2005A, 5.000%, 3/01/35 - ACA Insured
1,000 Massachusetts Development Finance Agency, Revenue Bonds, Orchard 10/12 at 102.00 N/R 788,680
Cove, Series 2007, 5.250%, 10/01/26
1,000 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BB- 641,930
Revenue Bonds, Milton Hospital Project, Series 2005D, 5.375%,
7/01/35
3,465 Massachusetts Water Resources Authority, General Revenue Bonds, 2/17 at 100.00 AAA 3,202,526
Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
----------------------------------------------------------------------------------------------------------------------------------
9,050 Total Massachusetts 7,787,793
----------------------------------------------------------------------------------------------------------------------------------
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.9% (4.4% OF TOTAL INVESTMENTS)
$ 6,000 Detroit, Michigan, Second Lien Sewerage Disposal System Revenue 7/15 at 100.00 A $ 5,504,760
Bonds, Series 2005A, 5.000%, 7/01/35 - NPFG Insured
8,915 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 100.00 A+ 8,914,733
Bonds, Series 1997A, 5.000%, 7/01/27 - NPFG Insured
5,400 Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second 7/16 at 100.00 A 4,693,626
Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 A+ 5,019,450
Facilities Program, Series 2003II, 5.000%, 10/15/29 - NPFG
Insured
10,500 Michigan State Hospital Finance Authority, Hospital Revenue 2/10 at 100.00 Ba3 8,775,585
Bonds, Detroit Medical Center Obligated Group, Series 1998A,
5.250%, 8/15/23
1,240 Michigan State Hospital Finance Authority, Hospital Revenue 11/19 at 100.00 A1 1,197,046
Bonds, Henry Ford Health System, Refunding Series 2009, 5.750%,
11/15/39 (WI/DD, Settling 11/03/09)
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 5/15 at 100.00 AAA 1,143,970
Chelsea Community Hospital, Series 2005, 5.000%, 5/15/30
(Pre-refunded 5/15/15)
2,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,997,260
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31 (UB)
----------------------------------------------------------------------------------------------------------------------------------
40,055 Total Michigan 37,246,430
----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.2% (0.8% OF TOTAL INVESTMENTS)
580 Minneapolis-St. Paul Housing Finance Board, Minnesota, FNMA/GNMA 11/09 at 100.00 AAA 582,326
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 3,692,535
Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25
(Pre-refunded 1/01/11) - FGIC Insured
2,875 Saint Paul Port Authority, Minnesota, Lease Revenue Bonds, 8/16 at 100.00 N/R 2,237,958
Regions Hospital Parking Ramp Project, Series 2007-1, 5.000%,
8/01/36
----------------------------------------------------------------------------------------------------------------------------------
6,955 Total Minnesota 6,512,819
----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.9% (1.2% OF TOTAL INVESTMENTS)
2,975 Mississippi Hospital Equipment and Facilities Authority, Revenue 9/14 at 100.00 AA 3,029,770
Bonds, Baptist Memorial Healthcare, Series 2004B-1, 5.000%,
9/01/24 (UB)
5,180 Mississippi, General Obligation Refunding Bonds, Series 2002A, No Opt. Call AA 6,100,693
5.500%, 12/01/18
1,000 Warren County, Mississippi, Gulf Opportunity Zone Revenue Bonds, 9/18 at 100.00 BBB 1,021,430
International Paper Company Project, Series 2008A, 6.500%,
9/01/32
----------------------------------------------------------------------------------------------------------------------------------
9,155 Total Mississippi 10,151,893
----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,450 Cape Girardeau County Industrial Development Authority, 6/17 at 100.00 N/R 1,243,056
Missouri, Health Facilities Revenue Bonds, Southeast Missouri
Hospital Association, Series 2007, 5.000%, 6/01/36
1,000 Hanley Road Corridor Transportation Development District, 10/19 at 100.00 A- 1,010,800
Brentwood and Maplewood, Missouri, Transportation Sales Revenue
Bonds, Series 2009, 5.875%, 10/01/36
2,450 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 2,491,552
Bonds, BJC Health System, Series 2003, 5.125%, 5/15/24
----------------------------------------------------------------------------------------------------------------------------------
4,900 Total Missouri 4,745,408
----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.7% (1.1% OF TOTAL INVESTMENTS)
9,000 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student Loan No Opt. Call Aa2 9,247,050
Program, Series 1993A-5A, 6.250%, 6/01/18 - NPFG Insured
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.6% (1.7% OF TOTAL INVESTMENTS)
4,500 Clark County School District, Nevada, General Obligation School No Opt. Call AA 4,663,575
Improvement Bonds, Series 1991A, 7.000%, 6/01/10 - NPFG Insured
7,000 Clark County, Nevada, Motor Vehicle Fuel Tax Highway Improvement 7/13 at 100.00 AA- 7,157,150
Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured
5,425 Director of Nevada State Department of Business and Industry, No Opt. Call Caa2 427,978
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000, 0.000%, 1/01/25 - AMBAC Insured
Nuveen Investments 61
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 1,700 Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue 6/19 at 100.00 A $ 1,908,641
Bonds, Series 2009A, 8.000%, 6/15/30
----------------------------------------------------------------------------------------------------------------------------------
18,625 Total Nevada 14,157,344
----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.4% (2.9% OF TOTAL INVESTMENTS)
500 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 413,760
Development Revenue Bonds, The Evergreens Project, Series 2007,
5.625%, 1/01/38
1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 1,162,238
Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%,
7/01/30 (Pre-refunded 7/01/10)
880 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A+ 1,042,448
6.500%, 1/01/16 - NPFG Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
300 6.500%, 1/01/16 - NPFG Insured (ETM) No Opt. Call A+ (4) 369,261
2,345 6.500%, 1/01/16 - NPFG Insured (ETM) No Opt. Call A+ (4) 2,729,064
10,055 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 10,930,992
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
3,995 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/13 at 100.00 AAA 4,708,427
Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39
(Pre-refunded 6/01/13)
3,750 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/17 at 100.00 BBB 2,622,150
Settlement Asset-Backed Bonds, Series 2007-1A, 4.750%, 6/01/34
----------------------------------------------------------------------------------------------------------------------------------
22,925 Total New Jersey 23,978,340
----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 5.1% (3.3% OF TOTAL INVESTMENTS)
855 Albany Industrial Development Agency, New York, Revenue Bonds, 4/17 at 100.00 N/R 681,657
Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/32
4,070 Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, 2/17 at 100.00 A 3,432,028
Series 2006A, 4.500%, 2/15/47 - NPFG Insured
3,300 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 A 2,982,903
Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
1,000 Metropolitan Transportation Authority, New York, Dedicated Tax 11/19 at 100.00 AA 1,029,420
Fund Bonds, Series 2009B, 5.000%, 11/15/34
2,360 New York City Transitional Finance Authority, New York, Future 5/10 at 100.00 AAA 2,372,673
Tax Secured Bonds, Fiscal Series 1998C, 5.000%, 5/01/26
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2000C:
220 5.875%, 11/01/16 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 228,375
5,000 5.500%, 11/01/24 (Pre-refunded 5/01/10) 5/10 at 101.00 AAA 5,180,900
New York State Tobacco Settlement Financing Corporation, Tobacco
Settlement Asset-Backed and State Contingency Contract-Backed
Bonds, Series 2003A-1:
2,400 5.500%, 6/01/16 6/10 at 100.00 AA- 2,432,784
2,500 5.500%, 6/01/18 6/12 at 100.00 AA- 2,621,000
6,250 Port Authority of New York and New Jersey, Special Project Bonds, No Opt. Call A 6,558,375
JFK International Air Terminal LLC, Sixth Series 1997, 6.250%,
12/01/15 - NPFG Insured (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
27,955 Total New York 27,520,115
----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.9% (1.9% OF TOTAL INVESTMENTS)
750 Charlotte-Mecklenburg Hospital Authority, North Carolina, Health 1/17 at 100.00 AA- 748,973
Care System Revenue Bonds, Carolinas Health Care, Series 2007A,
5.000%, 1/15/31
2,445 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 2,573,216
of Participation, Correctional Facilities, Series 2004A,
5.000%, 2/01/21
2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call A 2,102,700
Revenue Bonds, Series 1992, 6.000%, 1/01/11 - NPFG Insured
10,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 A 10,459,000
Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
15,195 Total North Carolina 15,883,889
----------------------------------------------------------------------------------------------------------------------------------
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.4% (2.2% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
$ 5,430 5.125%, 6/01/24 6/17 at 100.00 BBB $ 4,836,284
1,000 6.500%, 6/01/47 6/17 at 100.00 BBB 809,440
8,065 Cleveland, Ohio, Airport System Revenue Bonds, Series 2001A, 1/10 at 101.00 AAA 8,070,807
5.000%, 1/01/31 - FSA Insured
3,000 Franklin County, Ohio, Development Revenue Bonds, American 4/10 at 101.00 A+ 3,035,760
Chemical Society, Series 1999, 5.800%, 10/01/14
1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing Mortgage 1/10 at 100.00 Aa2 1,000,360
Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A,
5.550%, 7/01/24 (Alternative Minimum Tax)
800 Ohio Air Quality Development Authority, Ohio, Air Quality No Opt. Call BBB- 801,224
Revenue Bonds, Ohio Valley Electric Corporation Project, Series
2009E. Non-AMT, 5.625%, 10/01/19
----------------------------------------------------------------------------------------------------------------------------------
19,295 Total Ohio 18,553,875
----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.0% (0.7% OF TOTAL INVESTMENTS)
200 Oklahoma Housing Finance Agency, Single Family Mortgage Revenue 3/10 at 101.00 Aaa 202,856
Bonds, Homeownership Loan Program, Series 2000C-2, 6.200%,
9/01/28 (Alternative Minimum Tax)
5,615 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 5,412,860
Bonds, Saint Francis Health System, Series 2006, 5.000%,
12/15/36 (UB)
88 Tulsa County Industrial Authority, Oklahoma, Health Care Revenue 12/16 at 100.00 AA 82,239
Bonds, Saint Francis System, Series 2006, Trust 3500, 8.366%,
12/15/36 (IF)
----------------------------------------------------------------------------------------------------------------------------------
5,903 Total Oklahoma 5,697,955
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.9% (1.9% OF TOTAL INVESTMENTS)
500 Bucks County Industrial Development Authority, Pennsylvania, 3/17 at 100.00 BBB 412,305
Charter School Revenue Bonds, School Lane Charter School,
Series 2007A, 5.000%, 3/15/37
1,000 Pennsylvania Economic Development Financing Authority Health No Opt. Call A3 1,048,290
System Revenue Bonds Albert Einstein Healthcare Network Issue,
Series 2009A, 6.250%, 10/15/23
5,410 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/17 at 100.00 AA+ 6,500,500
Revenue Bonds, Tender Option Bond Trust 3212, 13.997%, 10/01/38
(IF)
5,490 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 5,078,744
Bonds, School District of Philadelphia, Series 2006B, 4.500%,
6/01/32 - FSA Insured (UB)
2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 12/14 at 100.00 Aa3 2,668,172
2004A, 5.500%, 12/01/31 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
15,000 Total Pennsylvania 15,708,011
----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.5% (1.6% OF TOTAL INVESTMENTS)
12,390 Puerto Rico, General Obligation and Public Improvement Refunding No Opt. Call A 13,631,849
Bonds, Series 1997, 6.500%, 7/01/13 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 3.3% (2.2% OF TOTAL INVESTMENTS)
20,000 Rhode Island Tobacco Settlement Financing Corporation, Tobacco 6/12 at 100.00 BBB 18,177,799
Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42
----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.3% (2.8% OF TOTAL INVESTMENTS)
4,120 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 A 4,237,255
FHA-Insured Mortgage Revenue Bonds, Series 2004A, 5.250%,
2/15/23 - NPFG Insured
3,000 Myrtle Beach, South Carolina, Hospitality and Accommodation Fee 6/14 at 100.00 A+ 2,855,910
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 A 5,746,950
5,750 4.000%, 1/01/23 - NPFG Insured 1/10 at 100.00 A 5,283,330
5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call A 5,483,969
Revenue Refunding Bonds, Series 1998A, 5.500%, 1/01/13 - NPFG
Insured
----------------------------------------------------------------------------------------------------------------------------------
22,955 Total South Carolina 23,607,414
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 63
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 AA- $ 1,776,705
Revenue Bonds, Sioux Valley Hospitals, Series 2004A, 5.500%,
11/01/31
----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,075 Knox County Health, Educational and Housing Facilities Board, 1/17 at 30.07 A- 654,980
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2006, 0.000%, 1/01/41
2,000 Sullivan County Health Educational and Housing Facilities Board, 3/13 at 100.00 N/R 1,719,860
Tennessee, Revenue Bonds, Wellmont Health System, Refunding
Series 200A, 5.486%, 9/01/32
680 Sullivan County Health Educational and Housing Facilities Board, 9/16 at 100.00 BBB+ 568,908
Tennessee, Revenue Bonds, Wellmont Health System, Series 2006C,
5.250%, 9/01/36
Sumner County Health, Educational, and Housing Facilities Board,
Tennessee, Revenue Refunding Bonds, Sumner Regional Health
System Inc., Series 2007:
860 5.500%, 11/01/37 11/17 at 100.00 N/R 326,886
1,000 5.500%, 11/01/46 11/17 at 100.00 N/R 380,100
----------------------------------------------------------------------------------------------------------------------------------
9,615 Total Tennessee 3,650,734
----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 20.0% (12.9% OF TOTAL INVESTMENTS)
3,000 Alliance Airport Authority, Texas, Special Facilities Revenue 12/12 at 100.00 CCC+ 1,792,950
Bonds, American Airlines Inc., Series 2007, 5.250%, 12/01/29
(Alternative Minimum Tax)
5,440 Board of Regents, University of Texas System, Financing System 2/17 at 100.00 AAA 5,176,323
Revenue Bonds, Series 2006F, 4.250%, 8/15/36 (UB)
4,000 Central Texas Regional Mobility Authority, Travis and Williamson 1/15 at 100.00 A 3,451,080
Counties, Toll Road Revenue Bonds, Series 2005, 5.000%,
1/01/35 - FGIC Insured
2,250 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/14 at 100.00 AAA 2,187,563
Bonds, Series 2004B, 5.000%, 11/01/27 - FSA Insured
(Alternative Minimum Tax)
8,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 8,260,720
Refunding and Improvement Bonds, Series 2001A, 5.875%,
11/01/19 - FGIC Insured (Alternative Minimum Tax)
6,000 Garland Housing Finance Corporation, Texas, Multifamily Housing 12/11 at 101.00 N/R 5,830,380
Revenue Bonds, Legacy Pointe Apartments, Series 2000, 7.500%,
6/01/40 (Alternative Minimum Tax)
7,000 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AA 7,053,270
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/30 - NPFG Insured
28,305 Houston, Texas, Hotel Occupancy Tax and Special Revenue Bonds, No Opt. Call A- 8,928,812
Convention and Entertainment Project, Series 2001B, 0.000%,
9/01/28 - AMBAC Insured
7,500 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 9,213,673
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 6,486,903
Counties, Texas, General Obligation Bonds, Series 2006, 0.000%,
8/15/39
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds,
Series 2001:
730 5.500%, 2/15/21 2/11 at 100.00 AAA 764,514
760 5.500%, 2/15/23 2/11 at 100.00 AAA 795,424
Montgomery Independent School District, Montgomery County,
Texas, Unlimited Tax School Building and Refunding Bonds, Series
2001:
1,570 5.500%, 2/15/21 (Pre-refunded 2/15/11) 2/11 at 100.00 Aaa 1,669,774
1,640 5.500%, 2/15/23 (Pre-refunded 2/15/11) 2/11 at 100.00 Aaa 1,744,222
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 3,146,424
2,300 5.125%, 2/15/31 8/11 at 100.00 Aaa 2,333,258
700 Mt. Pleasant Independent School District, Titus County, Texas, 8/11 at 100.00 Aaa 755,587
General Obligation Refunding Bonds, Series 2001, 5.125%,
2/15/31 (Pre-refunded 8/15/11)
1,100 North Texas Thruway Authority, First Tier System Revenue 1/18 at 100.00 AAA 1,159,213
Refunding Bonds, Series 2008A, 5.750%, 1/01/40 - AGC Insured
2,500 North Texas Thruway Authority, Second Tier System Revenue 1/18 at 100.00 A3 2,529,000
Refunding Bonds, Series 2008, 5.750%, 1/01/38
1,100 North Texas Tollway Authority, System Revenue Bonds, Series 1/19 at 100.00 A2 1,153,845
2009, 6.250%, 1/01/39
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 2,000 Port of Bay City Authority of Matagorda County, Texas, Revenue 11/09 at 100.00 B+ $ 1,977,500
Bonds (Hoechst Celanese Corporation Project) Series 1996,
6.500%, 5/01/26 (WI/DD, Settling 11/02/09) (Alternative Minimum
Tax)
6,000 Raven Hills Higher Education Corporation, Texas, Student Housing 8/12 at 100.00 N/R (4) 6,581,520
Revenue Bonds, Angelo State University - Texan Hall LLC, Series
2002A, 5.000%, 8/01/25 (Pre-refunded 8/01/12) - NPFG Insured
3,410 Retama Development Corporation, Texas, Special Facilities 12/12 at 100.00 AAA 4,097,217
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 System 10/12 at 100.00 BBB 1,835,190
Revenue Refunding Bonds, Series 2002A, 5.750%, 10/01/21 - RAAI
Insured
5,200 Tarrant County Cultural and Educational Facilities Financing 2/17 at 100.00 AA- 5,015,348
Corporation, Texas, Revenue Bonds, Series 2007A, 5.000%,
2/15/36 (UB)
370 Tarrant County Cultural and Educational Facilities Finance 2/17 at 100.00 AA- 334,561
Corporation, Texas, Revenue Bonds, Texas Health Resources
Project, Trust 1031, 11.996%, 2/15/36 (IF)
1,505 Texas Municipal Gas Acquisition and Supply Corporation I, Gas No Opt. Call A 1,568,120
Supply Revenue Bonds, Senior Lien Series 2008D, 6.250%, 12/15/26
3,395 Texas State, General Obligation Bonds, Series 2008, Trust 3213, 4/17 at 100.00 AA+ 4,189,634
13.749%, 4/01/33 (IF)
8,500 Travis County Health Facilities Development Corporation, Texas, 11/09 at 100.00 Aaa 8,705,445
Hospital Revenue Bonds, Daughters of Charity National Health
System, Series 1993B, 6.000%, 11/15/22 (ETM)
----------------------------------------------------------------------------------------------------------------------------------
152,605 Total Texas 108,737,470
----------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.1% (1.4% OF TOTAL INVESTMENTS)
4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding Bonds, 12/09 at 100.00 N/R 4,491,993
South Davis Community Hospital Project, Series 1998, 5.750%,
12/15/18
4,840 Intermountain Power Agency, Utah, Power Supply Revenue Bonds, 1/10 at 100.00 Aa3 (4) 5,016,950
Series 1996A, 6.150%, 7/01/14 (ETM)
460 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 458,505
Series 2000G, 5.875%, 7/01/27 (Alternative Minimum Tax)
Utah Housing Finance Agency, Single Family Mortgage Bonds,
Series 2001C:
1,060 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 1,079,398
435 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aaa 438,780
----------------------------------------------------------------------------------------------------------------------------------
11,640 Total Utah 11,485,626
----------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,480 Virgin Islands Public Finance Authority, Matching Fund Revenue 10/19 at 100.00 BBB 2,615,656
Loan Note - Diageo Project, Series 2009A, 6.750%, 10/01/37
----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.5% (1.0% OF TOTAL INVESTMENTS)
8,190 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 A1 8,203,841
Series 2002, 5.000%, 1/15/35 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.7% (3.1% OF TOTAL INVESTMENTS)
220 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 Aa2 (4) 251,035
Bonds, Wanapum Hydroelectric Development, Series 2005A, 5.000%,
1/01/34 (Pre-refunded 1/01/15) - FGIC Insured
5,780 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 Aa2 5,805,721
Bonds, Wanapum Hydroelectric Development, Series 2005A, 5.000%,
1/01/34 - FGIC Insured
1,500 Snohomish County School District 6, Mukilteo, Washington, No Opt. Call Aa3 1,674,390
Unlimited Tax General Obligation and Refunding Bonds, Series
1993, 5.700%, 12/01/12 - FGIC Insured
4,155 Tacoma, Washington, Electric System Revenue Refunding Bonds, 1/11 at 101.00 AAA 4,447,512
Series 2001A, 5.750%, 1/01/20 (Pre-refunded 1/01/11) - FSA
Insured
2,000 Washington State Health Care Facilities Authority, Revenue No Opt. Call N/R 1,600,180
Bonds, Northwest Hospital and Medical Center of Seattle, Series
2007, 5.700%, 12/01/32
1,000 Washington State Healthcare Facilities Authority, Revenue Bonds, 8/13 at 102.00 N/R 913,360
Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 -
AMBAC Insured
Nuveen Investments 65
NPT | Nuveen Premium Income Municipal Fund 4, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 5,500 Washington State Healthcare Facilities Authority, Revenue Bonds, 11/10 at 100.00 A2 $ 5,533,440
Swedish Health Services, Series 1998, 5.500%, 11/15/14 - AMBAC
Insured
1,460 Washington State Healthcare Facilities Authority, Revenue Bonds, 8/17 at 100.00 BBB 1,401,264
Virginia Mason Medical Center, Series 2007B, 5.750%, 8/15/37 -
ACA Insured
4,005 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 4,054,622
Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%,
6/01/26
-----------------------------------------------------------------------------------------------------------------------------------
25,620 Total Washington 25,681,524
-----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,950 West Virginia Hospital Finance Authority, Hospital Revenue 9/19 at 100.00 A2 1,923,929
Bonds, Charleston Area Medical Center, Series 2009A, 5.625%,
9/01/32
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.0% (1.9% OF TOTAL INVESTMENTS)
500 Wisconsin Health and Educational Facilities Authority, Revenue 12/10 at 100.00 A+ 500,175
Bonds, Medical College of Wisconsin Inc., Series 1996, 5.500%,
12/01/26 - NPFG Insured
7,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 101.00 A+ 7,260,150
Bonds, Ministry Healthcare Inc., Series 2002A, 5.250%,
2/15/32 - NPFG Insured
4,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/16 at 100.00 BBB+ 3,409,640
Bonds, Wheaton Franciscan Healthcare System, Series 2006,
5.250%, 8/15/34
5,000 Wisconsin State, General Obligation Bonds, Series 2006A, 4.750%, 5/16 at 100.00 AA 5,183,000
5/01/25 - FGIC Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
17,000 Total Wisconsin 16,352,965
-----------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,720 Sweetwater County, Wyoming, Pollution Control Revenue Refunding 8/19 at 100.00 A- 1,790,004
Bonds, Idaho Power Company Project, Series 2006, 5.250%,
7/15/26 (Mandatory put 7/14/26)
-----------------------------------------------------------------------------------------------------------------------------------
$ 976,843 Total Investments (cost $834,893,772) - 154.7% 841,169,490
=============----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (11.0)% (59,703,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.9% 21,395,883
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.6)% (6) (259,050,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 543,812,373
===================================================================================================================
(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 Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) The issuer has received a formal adverse determination from the Internal
Revenue Service (the "IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon payments as
tax-exempt income until such time that it is formally determined that the
interest on the bonds should be treated as taxable.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 30.8%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
66 Nuveen Investments
STATEMENT OF ASSETS & LIABILITIES
October 31, 2009
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
---------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $1,377,411,918, $1,533,070,040 and
$834,893,772, respectively) $ 1,373,927,160 $ 1,561,521,553 $ 841,169,490
Cash 6,534,664 20,888,348 3,698,574
Receivables:
Interest 21,866,621 21,674,487 13,884,357
Investments sold 2,801,204 35,077,333 11,055,833
Other assets 278,606 329,864 217,788
---------------------------------------------------------------------------------------------------------------------------------
Total assets 1,405,408,255 1,639,491,585 870,026,042
---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 124,294,000 102,434,000 59,703,000
Payables:
Investments purchased -- 37,099,053 4,148,078
Common share dividends 3,806,722 6,824,090 2,603,250
Preferred share dividends 19,155 24,358 12,889
Accrued expenses:
Management fees 732,547 828,736 448,121
Other 564,640 1,390,843 248,331
---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 129,417,064 148,601,080 67,163,669
---------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 400,650,000 487,525,000 259,050,000
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 875,341,191 $ 1,003,365,505 $ 543,812,373
=================================================================================================================================
Common shares outstanding 63,785,430 70,815,751 43,236,703
=================================================================================================================================
Net asset value per Common share outstanding (net assets applicable to
Common shares, divided by Common shares outstanding) $ 13.72 $ 14.17 $ 12.58
=================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
---------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 637,854 $ 708,158 $ 432,367
Paid-in surplus 904,483,256 1,000,811,313 588,757,385
Undistributed (Over-distribution of) net investment income 10,830,804 8,088,876 7,564,727
Accumulated net realized gain (loss) from investments and derivative
transactions (37,125,965) (34,694,355) (59,217,824)
Net unrealized appreciation (depreciation) of investments (3,484,758) 28,451,513 6,275,718
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 875,341,191 $ 1,003,365,505 $ 543,812,373
=================================================================================================================================
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.
Nuveen Investments 67
STATEMENT OF OPERATIONS
Year Ended October 31, 2009
PREMIUM INCOME PREMIUM INCOME 2 PREMIUM INCOME 4
(NPI) (NPM) (NPT)
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 74,042,205 $ 49,854,024 $ 46,122,168
---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 7,827,224 5,380,594 4,944,969
Preferred shares - auction fees 815,691 569,211 554,556
Preferred shares - dividend disbursing agent fees 60,000 62,049 80,000
Shareholders' servicing agent fees and expenses 119,384 40,376 58,718
Interest expense on floating rate obligations 1,170,732 910,439 514,485
Custodian's fees and expenses 226,274 161,848 145,805
Directors' fees and expenses 38,802 37,615 24,791
Professional fees 93,625 65,741 63,840
Shareholders' reports - printing and mailing expenses 207,825 129,788 146,774
Stock exchange listing fees 21,866 14,642 14,821
Investor relations expense 80,065 52,341 51,296
Other expenses 20,120 71,093 51,171
---------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 10,681,608 7,495,737 6,651,226
Custodian fee credit (45,139) (29,634) (29,393)
---------------------------------------------------------------------------------------------------------------------------------
Net expenses 10,636,469 7,466,103 6,621,833
---------------------------------------------------------------------------------------------------------------------------------
Net investment income 63,405,736 42,387,921 39,500,335
---------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 698,560 (624,684) (164,101)
Forward swaps (12,560,000) -- --
Change in net unrealized appreciation (depreciation) of:
Investments 116,676,462 89,299,077 79,097,537
Forward swaps 3,082,340 -- --
---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 107,897,362 88,674,393 78,933,436
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,246,414) (2,280,590) (2,265,160)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred shareholders (3,246,414) (2,280,590) (2,265,160)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares from
operations $ 168,056,684 $ 128,781,724 $ 116,168,611
=================================================================================================================================
See accompanying notes to financial statements.
68 Nuveen Investments
| 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
10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 63,405,736 $ 62,065,141 $ 42,387,921 $ 39,763,270 $ 39,500,335 $ 39,163,134
Net realized gain (loss) from:
Investments 698,560 (11,854,156) (624,684) (6,788,025) (164,101) (7,460,410)
Forward swaps (12,560,000) (526,200) -- (2,800,000) -- --
Change in net unrealized
appreciation (depreciation)
of:
Investments 116,676,462 (167,308,446) 89,299,077 (117,638,815) 79,097,537 (107,428,586)
Forward swaps 3,082,340 (3,340,935) -- 791,405 -- --
Distributions to Preferred
Shareholders:
From net investment income (3,246,414) (18,128,385) (2,280,590) (11,883,074) (2,265,160) (12,256,484)
From accumulated net realized
gains -- -- -- (408,199) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from operations 168,056,684 (139,092,981) 128,781,724 (98,963,438) 116,168,611 (87,982,346)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (49,497,495) (45,345,066) (31,697,528) (28,251,619) (30,222,465) (25,578,850)
From accumulated net realized
gains -- -- -- (938,312) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions to Common
shareholders (49,497,495) (45,345,066) (31,697,528) (29,189,931) (30,222,465) (25,578,850)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Issued in the Reorganization(1) -- -- 428,707,039 -- -- --
Cost of repurchases -- -- (28,350) (60,864) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares from capital share
transactions -- -- 428,678,689 (60,864) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets applicable to Common
shares 118,559,189 (184,438,047) 525,762,885 (128,214,233) 85,946,146 (113,561,196)
Net assets applicable to Common
shares at the beginning of
year 756,782,002 941,220,049 477,602,620 605,816,853 457,866,227 571,427,423
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $ 875,341,191 $ 756,782,002 $ 1,003,365,505 $ 477,602,620 $ 543,812,373 $ 457,866,227
====================================================================================================================================
Undistributed (Over-distribution
of) net investment income at
the end of year $ 10,830,804 $ 175,312 $ 8,088,876 $ (287,678) $ 7,564,727 $ 659,055
====================================================================================================================================
(1) Common shares issued in the Reorganization of Nuveen Florida Investment
Quality Municipal Fund (NQF) and Nuveen Florida Quality Income Municipal
Fund (NUF).
See accompanying notes to financial statements.
Nuveen Investments 69
| STATEMENT OF CASH FLOWS
Year ended October 31, 2009
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS $ 168,056,684 $ 128,781,724 $ 116,168,611
Adjustments to reconcile the net increase (decrease) in net assets
applicable to Common shares from operations to net cash provided by
(used in) operating activities:
Purchases of investments (55,164,012) (83,039,365) (51,701,366)
Proceeds from sales and maturities of investments 72,839,367 109,978,348 88,535,293
Proceeds from (Purchases of) short-term investments, net 7,778,372 (26,035,000) 6,000,000
Proceeds from (Payments for) terminated forward swaps (12,560,000) -- --
Assets and liabilities acquired in the Reorganization -- 25,378,033 --
Amortization (Accretion) of premiums and discounts, net (3,010,394) (3,714,077) (1,767,519)
(Increase) Decrease in receivable for interest (617,601) (7,664,226) 436,144
(Increase) Decrease in receivable for investments sold (1,766,204) (34,797,180) (11,014,925)
(Increase) Decrease in other assets (140,898) (244,947) (99,026)
Increase (Decrease) in payable for investments purchased -- 37,099,053 4,148,078
Increase (Decrease) in payable for Preferred share dividends (124,991) (54,383) (69,257)
Increase (Decrease) in accrued management fees 118,358 424,079 43,810
Increase (Decrease) in accrued other liabilities (23,346) 1,055,373 552
Net realized (gain) loss from investments (698,560) 624,684 164,101
Net realized (gain) loss from forward swaps 12,560,000 -- --
Change in net unrealized (appreciation) depreciation of investments (116,676,462) (89,299,077) (79,097,537)
Change in net unrealized (appreciation) depreciation of forward
swaps (3,082,340) -- --
Net realized (gain) loss from paydowns 371 -- 309
Taxes paid on undistributed capital gains (129) 160 (2,845)
-------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 67,488,215 58,493,199 71,744,423
-------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in floating rate obligations (4,165,000) (6,700,000) (2,115,000)
Cash distributions paid to Common shareholders (48,929,029) (26,924,938) (29,629,758)
Cost of Common shares repurchased -- (28,350) --
Increase (Decrease) in Preferred shares, at liquidation value (14,800,000) (5,875,000) (43,150,000)
-------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (67,894,029) (39,528,288) (74,894,758)
-------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (405,814) 18,964,911 (3,150,335)
Cash at the beginning of year 6,940,478 1,923,437 6,848,909
-------------------------------------------------------------------------------------------------------------------------
Cash at the End of Year $ 6,534,664 $ 20,888,348 $ 3,698,574
=========================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
During the current fiscal period Premium Income 2 (NPM) acquired all the net
assets of Nuveen Florida Investment Quality Municipal Fund (NQF) and Nuveen
Florida Quality Income Municipal Fund (NUF) through a tax-free Reorganization.
See Notes to Financial Statements, Footnote 1 for more information.
Cash paid for interest was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-------------------------------------------------------------------------------------------------------------------------
$ 1,170,732 $ 910,439 $ 514,485
=========================================================================================================================
See accompanying notes to financial statements.
70 Nuveen Investments
| NOTES TO FINANCIAL STATEMENTS
1. General Information and Significant Accounting Policies
The funds covered in this report and their corresponding Common share New York
Stock Exchange (NYSE) symbols are Nuveen Premium Income Municipal Fund, Inc.
(NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen Premium
Income Municipal Fund 4, Inc. (NPT) (collectively, the "Funds"). The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end,
management investment companies.
During the current fiscal period, Nuveen Florida Investment Quality Municipal
Fund (NQF) and Nuveen Florida Quality Income Municipal Fund (NUF) were
reorganized into Premium Income 2 (NPM) (collectively, the "Reorganizations").
Each of these Funds called a special meeting of shareholders, originally
scheduled in each case for May 15, 2009, to vote on the Reorganizations. Those
meetings were subsequently adjourned to and reconvened in June and July, at
which time, shareholders of each of Florida Investment Quality (NQF), Florida
Quality Income (NUF) and Premium Income 2 (NPM) approved its respective
Reorganization, with more than 80% of participating shares of each fund voting
in favor of the Reorganization.
After the close of business on October 16, 2009, Premium Income 2 (NPM) acquired
all the net assets of Florida Investment Quality (NQF) and Florida Quality
Income (NUF) pursuant to the plan of Reorganizations described above. The
acquisition was accomplished by a tax-free exchange of Florida Investment
Quality (NQF) and Florida Quality Income (NUF) Common shares for Premium Income
2 (NPM) Common shares. On October 16, 2009, the net assets of Florida Investment
Quality (NQF) and Florida Quality Income (NUF) were $227,077,390 and
$201,629,650, respectively. Florida Investment Quality's (NQF) and Florida
Quality Income's (NUF) net assets applicable to Common shares at that date
included $10,786,142 and $8,057,306 of net unrealized appreciation,
respectively. Each Fund's net unrealized appreciation was combined with that of
Premium Income 2 (NPM). The combined net assets applicable to Common shares of
Premium Income 2 (NPM) immediately after the acquisition were $1,011,235,268.
For accounting and performance reporting purposes, Premium Income 2 (NPM) is the
survivor. Prior to the Reorganizations, each of Florida Investment Quality (NQF)
and Florida Quality Income (NUF) established a reserve for certain costs and
expenses associated with the Reorganizations, including amounts estimated for
the advancement of legal costs in connection with legal proceedings brought by a
shareholder of the Funds challenging the Reorganizations. The amount of such
reserve is included as a component of "Accrued other expenses" on the Statement
of Assets and Liabilities for Premium Income 2 (NPM).
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a portfolio of municipal obligations issued by state
and local government authorities or certain U.S. territories.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors. Prices of
forward swap contracts are also provided by an independent pricing service
approved by each Fund's Board of Directors. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors of the Fund, or its
designee, may establish fair value using a wide variety of market data including
yields or prices of investments of comparable quality, type of issue, coupon,
maturity and rating, market quotes or indications of value from security
dealers, evaluations of anticipated cash flows or collateral, general market
conditions and other information and analysis, including the obligor's credit
characteristics considered relevant. Temporary investments in securities that
have variable rate and demand features qualifying them as short-term investments
are valued at amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are
Nuveen Investments 71
| NOTES TO FINANCIAL STATEMENTS (continued)
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, 2009,
Premium Income 2 (NPM) and Premium Income 4 (NPT) had outstanding
when-issued/delayed delivery purchase commitments of $34,929,229 and $4,148,078
respectively. There were no such outstanding purchase commitments in Premium
Income (NPI).
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal income tax, to retain
such tax-exempt status when distributed to shareholders of the Funds. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders at least annually. Furthermore, capital
gains are distributed only to the extent they exceed available capital loss
carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from US
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period. As
of October 31, 2009, the number of Preferred shares outstanding, by Series and
in total, for each Fund is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Number of shares:
Series M 2,900 1,600 1,680
Series M2 1,526 1,379* --
Series T 2,900 2,401 1,528
Series T2 -- 2,683* 1,014
Series W 2,900 1,600 1,283
Series W2 -- -- 423
Series TH 2,901 2,401 2,047
Series TH2 -- 1,379* --
Series F 2,899 1,601 1,374
Series F2 -- 1,504 1,013
Series F3 -- 1,915* --
Series F4 -- 1,038* --
--------------------------------------------------------------------------------
Total 16,026 19,501 10,362
================================================================================
* Preferred shares issued in the Reorganization of Florida Investment
Quality (NQF) and Florida Quality Income (NUF).
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in
72 Nuveen Investments
these auctions were unable to do so. Preferred shareholders unable to sell their
shares received distributions at the "maximum rate'' applicable to failed
auctions as calculated in accordance with the pre-established terms of the
Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of the Funds. However, one continuing implication of these
auction failures for Common shareholders is that the Funds' cost of leverage
likely has been incrementally higher at times, than it otherwise might have been
had the auctions continued to be successful. As a result, the Funds' future
Common share earnings may likely have been incrementally lower than they
otherwise might have been. As of October 31, 2009, the aggregate amount of
outstanding Preferred shares redeemed by each Fund is as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Preferred shares redeemed,
at liquidation value $124,350,000 $108,475,000 $79,350,000
================================================================================
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and the related interest paid to the holders of the short-term
floating rate certificates is recognized as "Interest expense on floating rate
obligations" on the Statement of Operations.
During the fiscal year ended October 31, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At October 31, 2009, each Fund's maximum exposure to externally-deposited
Recourse Trusts was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Maximum exposure to
Recourse Trusts $8,635,000 $5,570,000 $12,000,000
================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended October 31, 2009, were as follows:
Nuveen Investments 73
| NOTES TO FINANCIAL STATEMENTS (continued)
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Average floating rate obligations
outstanding $126,325,110 $96,357,822 $59,104,397
Average annual interest rate and
fees 0.93% 0.94% 0.87%
================================================================================
Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Each Fund's use of forward interest rate swap
transactions is intended to help the Fund manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Fund's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve each Fund's agreement with a
counterparty to pay, in the future, a fixed or variable rate payment in exchange
for the counterparty paying the Fund a variable or fixed rate payment, the
accruals for which would begin at a specified date in the future (the "effective
date"). The amount of the payment obligation is based on the notional amount of
the swap contract and the termination date of the swap (which is akin to a
bond's maturity). The value of the Fund's swap commitment would increase or
decrease based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swap's termination date increases or decreases.
Forward interest rate swap contracts are valued daily. The net amount recorded
on these transactions for each counterparty is recognized on the Statement of
Assets and Liabilities as "Unrealized appreciation or depreciation on forward
swaps" with the change during the fiscal period recognized on the Statement of
Operations as "Change in net unrealized appreciation (depreciation) of forward
swaps."
The Funds may terminate a swap contract prior to the effective date, at which
point a realized gain or loss is recognized. When a forward swap is terminated,
it ordinarily does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash on a net basis. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." Each Fund intends,
but is not obligated, to terminate its forward swaps before the effective date.
Accordingly, the risk of loss with respect to the swap counterparty on such
transactions is limited to the credit risk associated with a counterparty
failing to honor its commitment to pay any realized gain to the Fund upon
termination. The following Fund invested in forward interest rate swap
transactions during the fiscal year ended October 31, 2009.
The average notional amount of forward swap contracts outstanding during the
fiscal year ended October 31, 2009, was as follows:
PREMIUM
INCOME
(NPI)
--------------------------------------------------------------------------------
Average notional amount of forward swap contracts outstanding $4,600,000*
================================================================================
* The average notional amount is calculated based on the outstanding
notional amount at the beginning of the fiscal year and at the end of each
fiscal quarter within the current fiscal year. The Fund was not invested
in forward swap contracts at the end of the current fiscal year.
Refer to Footnote 3 -- Derivative Instruments and Hedging Activities for further
details on swap contract activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties Nuveen Asset Management (the "Adviser"), a wholly-owned
subsidiary of Nuveen Investments, Inc. ("Nuveen"). believes have the financial
resources to honor their obligations and by having the Adviser monitor the
financial stability of the counterparties. Additionally, counterparties may be
required to pledge collateral daily (based on the daily valuation of the
financial asset) on behalf of each Fund with a value approximately equal to the
amount of any unrealized gain above a pre-determined threshold. Reciprocally,
when each Fund has an unrealized loss, the Funds have instructed the custodian
to pledge assets of the Funds as collateral with a value approximately equal to
the amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the valuations
fluctuate, either up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
74 Nuveen Investments
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the Portfolios of
Investments with a 0.000% coupon rate in their description. The market prices of
zero coupon securities generally are more volatile than the market prices of
securities that pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets applicable to Common shares from operations during the reporting period.
Actual results may differ from those estimates.
2. Fair Value Measurements
During the current fiscal period, the Funds adopted authoritative guidance under
GAAP on determining fair value measurements. This guidance defines fair value,
establishes a framework for measuring fair value in GAAP and expands disclosure
about fair value measurements. In determining the value of each Fund's
investments various inputs are used. These inputs are summarized in the three
broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of October 31, 2009:
PREMIUM INCOME (NPI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $1,373,927,160 $ -- $1,373,927,160
================================================================================
PREMIUM INCOME 2 (NPM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $1,532,486,553 $ -- $1,532,486,553
Short-Term Investments -- 29,035,000 -- 29,035,000
--------------------------------------------------------------------------------
Total $ -- $1,561,521,553 $ -- $1,561,521,553
================================================================================
PREMIUM INCOME 4 (NPT) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 841,169,490 $ -- $ 841,169,490
================================================================================
3. Derivative Instruments and Hedging Activities
During the current fiscal period, the Funds adopted amendments to authoritative
guidance under GAAP on disclosures about derivative instruments and hedging
activities. This guidance is intended to enhance financial statement disclosures
for derivative instruments and hedging activities and enable investors to better
understand: a) how and why a fund uses derivative instruments; b) how derivative
instruments are accounted for; and c) how derivative instruments affect a fund's
financial position, results of operations and cash flows, if any. The Funds
record derivative instruments at fair value with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Funds' investments in derivatives may represent economic hedges, under this
guidance they are considered to be non-hedge transactions for financial
reporting purposes. For additional information on the derivative instruments in
which each Fund was invested during and at the end of the reporting period,
refer to the Portfolio of Investments, Financial Statements and Footnote 1 -
General Information and Significant Accounting Policies.
Nuveen Investments 75
| NOTES TO FINANCIAL STATEMENTS (continued)
The following tables present the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized during the fiscal year
ended October 31, 2009, on derivative instruments, as well as the primary risk
exposure associated with each. The following Fund held derivative instruments
during the fiscal year ended October 31, 2009. None of the Funds had derivative
contracts outstanding at October 31, 2009.
PREMIUM
INCOME
NET REALIZED GAIN (LOSS) FROM FORWARD SWAPS (NPI)
-----------------------------------------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ (12,560,000)
===================================================================================================================================
PREMIUM
INCOME
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) OF FORWARD SWAPS (NPI)
-----------------------------------------------------------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ 3,082,340
===================================================================================================================================
4. FUND SHARES
Common Shares
Transactions in Common shares were as follows:
PREMIUM PREMIUM PREMIUM
INCOME (NPI) INCOME 2 (NPM) INCOME 4 (NPT)
----------------------- ------------------------ -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued in the Reorganization -- -- 30,022,090* -- -- --
Repurchased -- -- (2,500) (4,800) -- --
------------------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased -- -- $ 11.32 $ 12.66 -- --
Discount per share repurchased -- -- 13.90% 12.81% -- --
====================================================================================================================================
* Common shares issued in the Reorganization of Florida Investment Quality
(NQF) and Florida Quality Income (NUF).
Preferred Shares
Transactions in Preferred shares were as follows:
PREMIUM PREMIUM
INCOME (NPI) INCOME 2 (NPM)
---------------------------------------------- ---------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/09 10/31/08 10/31/09 10/31/08
----------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares issued in the
Reorganization*:
Series M2 -- $ -- -- $ -- 1,379 $ 34,475,000 -- $ --
Series T2 -- -- -- -- 2,683 67,075,000 -- --
Series TH2 -- -- -- -- 1,379 34,475,000 -- --
Series F3 -- -- -- -- 1,915 47,875,000 -- --
Series F4 -- -- -- -- 1,038 25,950,000 -- --
-----------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- 8,394 209,850,000 -- --
===================================================================================================================================
Preferred shares redeemed:
Series M (107) (2,675,000) (793) (19,825,000) (34) (850,000) (366) (9,150,000)
Series M2 (56) (1,400,000) (418) (10,450,000) -- -- -- --
Series T (107) (2,675,000) (793) (19,825,000) (50) (1,250,000) (549) (13,725,000)
Series W (107) (2,675,000) (793) (19,825,000) (34) (850,000) (366) (9,150,000)
Series TH (107) (2,675,000) (792) (19,800,000) (51) (1,275,000) (548) (13,700,000)
Series F (108) (2,700,000) (793) (19,825,000) (34) (850,000) (365) (9,125,000)
Series F2 -- -- -- -- (32) (800,000) (344) (8,600,000)
-----------------------------------------------------------------------------------------------------------------------------------
(592) (14,800,000) (4,382) (109,550,000) (235) (5,875,000) (2,538) (63,450,000)
-----------------------------------------------------------------------------------------------------------------------------------
Total (592) $(14,800,000) (4,382) $(109,550,000) 8,159 $203,975,000 (2,538) $(63,450,000)
===================================================================================================================================
* Preferred shares issued in the Reorganization of Florida Investment Quality
(NQF) and Florida Quality Income (NUF).
76 Nuveen Investments
PREMIUM
INCOME 4 (NPT)
-----------------------------------------------
YEAR ENDED YEAR ENDED
10/31/09 10/31/08
-----------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M (285) $(7,125,000) (235) ($ 5,875,000)
Series T (259) (6,475,000) (213) (5,325,000)
Series T2 (172) (4,300,000) (142) (3,550,000)
Series W (218) (5,450,000) (179) (4,475,000)
Series W2 (41) (1,025,000) (56) (1,400,000)
Series TH (346) (8,650,000) (287) (7,175,000)
Series F (233) (5,825,000) (193) (4,825,000)
Series F2 (172) (4,300,000) (143) (3,575,000)
-----------------------------------------------------------------------------------------------------
Total (1,726) ($43,150,000) (1,448) ($ 36,200,000)
=====================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended October 31, 2009, were
as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-----------------------------------------------------------------------------------------------------
Purchases $ 55,164,012 $ 83,039,365 $ 51,701,366
Sales and maturities 72,839,367 109,978,348 88,535,293
=====================================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
At October 31, 2009, the cost of investments was as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-----------------------------------------------------------------------------------------------------
Cost of investments $1,252,320,411 $1,430,493,061 $775,134,746
=====================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2009, were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
-----------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 58,483,507 $ 62,850,499 $ 34,629,121
Depreciation (61,265,490) (34,225,910) (28,246,334)
-----------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of
investments $ (2,781,983) $ 28,624,589 $ 6,382,787
=====================================================================================================
Nuveen Investments 77
| NOTES TO FINANCIAL STATEMENTS (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2009, the Funds' tax year end,
were as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
---------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $13,815,353 $14,967,772 $ 9,886,290
Undistributed net ordinary income ** 28,298 4,421 4,237
Undistributed net long-term capital gains -- -- --
=============================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2009, paid on November 2, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' tax years ended
October 31, 2009 and October 31, 2008, was designated for purposes of the
dividends paid deduction as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
2009 (NPI) (NPM) (NPT)
---------------------------------------------------------------------------------------------
Distributions from net tax-exempt income *** $52,231,046 $28,872,682 $31,929,950
Distributions from net ordinary income ** -- -- --
Distributions from net long-term capital gains **** -- -- --
=============================================================================================
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
2008 (NPI) (NPM) (NPT)
---------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $63,352,587 $40,025,218 $37,511,796
Distributions from net ordinary income ** 80,967 234,668 224,617
Distributions from net long-term capital gains -- 1,257,894 --
=============================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
October 31, 2009, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended October 31, 2009.
At October 31, 2009, the Funds' tax year end, the Funds had unused capital loss
carryforwards available for federal income tax purposes to be applied against
future capital gains, if any. If not applied, the carryforwards will expire as
follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM)* (NPT)
---------------------------------------------------------------------------------------------
Expiration:
October 31, 2010 $ -- $ -- $18,035,414
October 31, 2011 5,278,912 1,449,778 24,792,603
October 31, 2013 -- -- 6,161,830
October 31, 2014 4,614,516 197,103 806,337
October 31, 2015 -- 10,749,624 --
October 31, 2016 11,536,998 18,051,540 7,113,122
October 31, 2017 11,817,772 488,931 --
---------------------------------------------------------------------------------------------
Total $33,248,198 $30,936,976 $56,909,306
=============================================================================================
* A portion of Premium Income 2's (NPM) capital loss carryforward is subject
to an annual limitation under the Internal Revenue Code and related
regulations.
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
78 Nuveen Investments
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund net assets managed as stated in the following
table. As of October 31, 2009, the complex-level fee rate was .1907%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets include assets managed by the
Adviser that are attributable to financial leverage. For these purposes,
financial leverage includes the funds use of preferred stock and
borrowings and investments in the residual interest certificates (also
called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has
been effectively financed by the trust's issuance of floating rate
securities, subject to an agreement by the Adviser to limit the amount of
such assets for determining managed net assets in certain circumstances.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors who are affiliated with the
Adviser or to its Officers, all of whom receive remuneration for their services
to the Funds from the Adviser or its affiliates. The Board of Directors has
adopted a deferred compensation plan for independent Directors that enables
Directors to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised funds.
8. NEW ACCOUNTING STANDARDS
Accounting for Transfers of Financial Assets
During June 2009, the FASB issued changes to the authoritative guidance under
GAAP on accounting for transfers of financial assets. The objective of this
guidance is to improve the relevance, representational faithfulness, and
comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows; and a
transferor's continuing involvement, if any, in transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
Nuveen Investments 79
| NOTES TO FINANCIAL STATEMENTS (continued)
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2009, to shareholders of record
on November 15, 2009, as follows:
PREMIUM PREMIUM PREMIUM
INCOME INCOME 2 INCOME 4
(NPI) (NPM) (NPT)
--------------------------------------------------------------------------------
Dividend per share $.0700 $.0720 $.0660
================================================================================
Evaluation Date
In May 2009, the FASB issued changes to authoritative guidance under GAAP for
subsequent events. This guidance requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. This guidance is intended to establish general standards of accounting
and for disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. This guidance
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date - that is, whether that date
represents the date the financial statements were issued or were available to be
issued. This guidance is effective for interim and annual periods ending after
June 15, 2009. The Funds have performed an evaluation of subsequent events
through December 28, 2009, which is the date the financial statements were
issued.
80 Nuveen Investments
| FINANCIAL HIGHLIGHTS
Nuveen Investments 81
| 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:
2009 $11.86 $ .99 $ 1.70 $(.05) $ -- $ 2.64 $(.78) $ -- $ (.78)
2008 14.76 .97 (2.88) (.28) -- (2.19) (.71) -- (.71)
2007 15.33 .98 (.55) (.29) -- .14 (.71) -- (.71)
2006 14.85 1.00 .49 (.26) -- 1.23 (.75) -- (.75)
2005 15.20 .98 (.26) (.16) -- .56 (.91) -- (.91)
PREMIUM INCOME 2 (NPM)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 11.71 .95 2.34 (.05) -- 3.24 (.78) -- (.78)
2008 14.85 .97 (3.10) (.29) (.01) (2.43) (.69) (.02) (.71)
2007 15.45 .97 (.55) (.30) (.01) .11 (.69) (.02) (.71)
2006 15.07 .97 .49 (.25) (.01) 1.20 (.76) (.06) (.82)
2005 15.53 .98 (.24) (.16) (.01) .57 (.93) (.10) (1.03)
==================================================================================================================================
PREFERRED SHARES AT END OF PERIOD
ENDING ------------------------------------
COMMON AGGREGATE LIQUIDATION
SHARE ENDING AMOUNT AND MARKET ASSET
NET ASSET MARKET OUTSTANDING VALUE COVERAGE
VALUE VALUE (000) PER SHARE PER SHARE
================================================================================
PREMIUM INCOME (NPI)
--------------------------------------------------------------------------------
Year Ended 10/31:
2009 $13.72 $12.77 $400,650 $25,000 $79,620
2008 11.86 10.93 415,450 25,000 70,540
2007 14.76 13.30 525,000 25,000 69,820
2006 15.33 14.13 525,000 25,000 71,552
2005 14.85 13.87 525,000 25,000 70,116
================================================================================
PREMIUM INCOME 2 (NPM)
--------------------------------------------------------------------------------
Year Ended 10/31:
2009 14.17 13.02 487,525 25,000 76,452
2008 11.71 10.28 283,550 25,000 67,109
2007 14.85 13.25 347,000 25,000 68,647
2006 15.45 14.05 347,000 25,000 70,748
2005 15.07 13.97 347,000 25,000 69,617
================================================================================
82 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES**
------------------ -----------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++ RATE
=================================================================================================================
PREMIUM INCOME (NPI)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 24.61% 22.89% $ 875,341 1.31% 1.17% 7.79% 4%
2008 (13.10) (15.39) 756,782 1.49 1.18 6.95 11
2007 (1.02) .93 941,220 1.56 1.17 6.52 14
2006 7.52 8.53 977,601 1.19 1.19 6.64 15
2005 3.37 3.71 947,446 1.19 1.19 6.44 20
PREMIUM INCOME 2 (NPM)
-----------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 35.00 28.38 1,003,366 1.36 1.20 7.71 9
2008 (17.95) (16.96) 477,603 1.56 1.22 6.93 8
2007 (.81) .71 605,817 1.62 1.19 6.44 12
2006 6.71 8.24 634,981 1.20 1.20 6.42 15
2005 2.98 3.71 619,282 1.20 1.20 6.40 15
=================================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, and
legal fee refund, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 83
| FINANCIAL HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS
-------------------------------------------------------------- ----------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM NET
BEGINNING INVESTMENT CAPITAL INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL HOLDERS HOLDERS TOTAL
----------------------------------------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $10.59 $.91 $1.83 $(.05) $-- $ 2.69 $(.70) $-- $(.70)
2008 13.22 .91 (2.67) (.28) -- (2.04) (.59) -- (.59)
2007 13.69 .90 (.45) (.28) -- .17 (.64) -- (.64)
2006 13.38 .90 .35 (.25) -- 1.00 (.69) -- (.69)
2005 13.54 .91 (.10) (.16) -- .65 (.81) -- (.81)
============================================================================================================================
PREFERRED SHARES AT END OF PERIOD
ENDING ------------------------------------
COMMON AGGREGATE LIQUIDATION
SHARE ENDING AMOUNT AND MARKET ASSET
NET ASSET MARKET OUTSTANDING VALUE COVERAGE
VALUE VALUE (000) PER SHARE PER SHARE
-------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
-------------------------------------------------------------------------------
Year Ended 10/31:
2009 $12.58 $11.69 $259,050 $25,000 $77,481
2008 10.59 9.24 302,200 25,000 62,878
2007 13.22 11.77 338,400 25,000 67,215
2006 13.69 12.80 338,400 25,000 68,731
2005 13.38 12.31 338,400 25,000 67,739
===============================================================================
84 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
TOTAL RETURNS APPLICABLE TO COMMON SHARES**
------------------ ---------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET PORTFOLIO
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT TURNOVER
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++ RATE
---------------------------------------------------------------------------------------------------------------
PREMIUM INCOME 4 (NPT)
---------------------------------------------------------------------------------------------------------------
Year Ended 10/31
2009 35.01% 26.11% $543,812 1.33% 1.23% 7.89% 6%
2008 (17.19) (15.97) 457,866 1.62 1.25 7.19 10
2007 (3.30) 1.25 571,427 1.69 1.23 6.68 14
2006 9.89 7.72 591,941 1.25 1.25 6.70 9
2005 3.07 4.87 578,517 1.26 1.26 6.63 7
===============================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** Expense ratios do not reflect the reduction of custodian fee credits
earned on the Fund's net cash on deposit with the custodian bank, and
legal fee refund, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; Net Investment Income ratios reflect income earned and
expenses incurred on assets attributable to Preferred shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 85
BOARD MEMBERS & 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
(referred to herein as "independent board members") 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.
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS | APPOINTED IN FUND COMPLEX INCLUDING OTHER
| AND TERM(1) OVERSEEN BY DIRECTORSHIPS
| BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management Consultant;
8/22/40 | Chairman of Treasurer and Director, Humanities Council of
333 W. Wacker Drive | the Board 1997 198 Washington D.C.
Chicago, IL 60606 | and Board Member
|
o JACK B. EVANS President, The Hall-Perrine Foundation, a private
10/22/48 | philanthropic corporation (since 1996); Director
333 W. Wacker Drive | Board Member 1999 198 and Chairman, United Fire Group, a publicly held
Chicago, IL 60606 | company; President Pro Tem of the Board of Regents
| for the State of Iowa University System; Director,
Gazette Companies; Life Trustee of Coe College and
the 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.
o WILLIAM C. HUNTER Dean, Tippie College of Business, University of
3/6/48 | Iowa (since 2006); Director (since 2004) of Xerox
333 W. Wacker Drive | Board Member 2004 198 Corporation; Director (since 2005), Beta Gamma
Chicago, IL 60606 | Sigma International Honor Society; formerly, Dean
| and Distinguished 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, SS&C
Technologies, Inc. (May 2005-October 2005);
formerly, Director (1997-2007), Credit Research
Center at Georgetown University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth Management
10/28/42 | Company; retired (since 2004) as Chairman,
333 W. Wacker Drive | Board Member 2005 198 JPMorgan Fleming Asset Management, President and
Chicago, IL 60606 | CEO, Banc One Investment 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; Member, Board of Regents, Luther College;
member of the Wisconsin Bar Association; member of
Board of Directors, Friends of Boerner Botanical
Gardens; member of Investment Committee, Greater
Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd., a real
9/24/44 | estate investment company; formerly, Senior
333 W. Wacker Drive | Board Member 1997 198 Partner and Chief Operating Officer (retired,
Chicago, IL 60606 | 2004) of Miller-Valentine Group; member,
| University of Dayton Business School Advisory
Council; member, Dayton Philharmonic Orchestra
Association; formerly, member, Business Advisory
Council, Cleveland Federal Reserve Bank; formerly,
Director, Dayton Development Coalition.
86 Nuveen Investments
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS | APPOINTED IN FUND COMPLEX INCLUDING OTHER
| AND TERM(1) OVERSEEN BY DIRECTORSHIPS
| BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy Donnelley
12/29/47 | Foundation (since 1994); prior thereto, Executive
333 W. Wacker Drive | Board Member 1997 198 Director, Great Lakes Protection Fund (from 1990
Chicago, IL 60606 | to 1994).
|
o CAROLE E. STONE Director, Chicago Board Options Exchange (since
6/28/47 | 2006); Director, C2 Options Exchange, Incorporated
333 W. Wacker Drive | Board Member 2007 198 (since 2009); Commissioner, New York State
Chicago, IL 60606 | Commission on Public Authority Reform (since
| 2005); formerly, Chair, New York Racing
Association Oversight Board (2005-2007).
o TERENCE J. TOTH
9/29/59 | Director, Legal & General Investment Management
333 W. Wacker Drive | Board Member 2008 198 America, Inc. (since 2008); Managing Partner,
Chicago, IL 60606 | Musso Capital Management (since 2008); formerly,
| CEO and President, Northern Trust Investments
(2004-2007); Executive Vice President,
Quantitative Management & Securities Lending
(2004-2007); prior thereto, various positions with
Northern Trust Company (since 1994); Member:
Goodman Theatre Board (since 2004), Chicago
Fellowship Boards (since 2005), University of
Illinois Leadership Council Board (since 2007) and
Catalyst Schools of Chicago Board (since 2008);
formerly, Member: Northern Trust Mutual Funds
Board (2005-2007), Northern Trust Investments
Board (2004-2007), Northern Trust Japan Board
(2004-2007), Northern Trust Securities Inc. Board
(2003-2007) and Northern Trust Hong Kong Board
(1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007) and
6/14/61 | Director (since 1999) of Nuveen Investments, Inc.;
333 W. Wacker Drive | Board Member 2008 198 Chief Executive Officer (since 2007) of Nuveen
Chicago, IL 60606 | Asset Management, Nuveen Investments Advisors,
| Inc. formerly, President (1999-2004) of Nuveen
Advisory Corp. and Nuveen Institutional Advisory
Corp.(3)
Nuveen Investments 87
BOARD MEMBERS & OFFICERS (continued)
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS | APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
| OVERSEEN
| BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 | Chief Secretary and Associate General Counsel of Nuveen
333 W. Wacker Drive | Administrative 1988 198 Investments, LLC; Managing Director, Associate
Chicago, IL 60606 | Officer General Counsel and Assistant Secretary, of Nuveen
| Asset Management (since 2002) and of Symphony
Asset Management LLC, (since 2003); Vice President
and Assistant Secretary of NWQ Investment
Management Company, LLC. (since 2002), Nuveen
Investments Advisers Inc. (since 2002), Tradewinds
Global Investors, LLC, and Santa Barbara Asset
Management, LLC (since 2006), Nuveen HydePark
Group LLC and Nuveen Investment Solutions, Inc.
(since 2007); Managing Director (since 2004) and
Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; formerly, Managing Director
(2002-2004), General Counsel (1998-2004) and
Assistant Secretary of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3); Chartered
Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen Investments,
6/9/55 | Inc.; Executive Vice President, U.S. Structured
333 W. Wacker Drive | Vice President 2007 123 Products of Nuveen Investments, LLC, (since 1999),
Chicago, IL 60606 | prior thereto, Managing Director of Structured
| Investments.
o MARK J.P. ANSON President and Executive Director of Nuveen
6/10/59 | Investments, Inc. (since 2007); President of
333 W. Wacker Drive | Vice President 2009 198 Nuveen Investments Institutional Services Group
Chicago, IL 60606 | LLC (since 2007); previously, Chief Executive
| Officer of the British Telecom Pension Scheme
(2006-2007) and Chief Investment Officer of
Calpers (1999-2006); PhD, Chartered Financial
Analyst, Chartered Alternative Investment Analyst,
Certified Public Accountant, Certified Management
Accountant and Certified Internal Auditor.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously, Vice
1/11/62 | President (1993-2004) of Nuveen Investments, LLC.
333 W. Wacker Drive | Vice President 2007 123
Chicago, IL 60606 |
|
o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen Investments,
6/1/68 | LLC; previously, Portfolio Manager, Allstate
333 W. Wacker Drive | Vice President 2009 198 Investments, LLC (1996-2006); Chartered Financial
Chicago, IL 60606 | Analyst.
|
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen Investments,
2/3/66 | Vice President LLC.; Vice President of Nuveen Asset Management
333 W. Wacker Drive | and Assistant 2000 198 (since 2005).
Chicago, IL 60606 | Secretary
|
o MARGO L. COOK Executive Vice President (since Oct 2008) of
4/11/64 | Nuveen Investments, Inc.; previously, Head of
333 W. Wacker Drive | Vice President 2009 198 Institutional Asset Management (2007-2008) of Bear
Chicago, IL 60606 | Stearns Asset Management; Head of Institutional
| Asset Mgt (1986-2007) of Bank of NY Mellon;
Chartered Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen
10/24/45 | Investments, LLC; Managing Director (since 2005)
333 W. Wacker Drive | Vice President 1998 198 of Nuveen Asset Management; Managing Director
Chicago, IL 60606 | (2004-2005), of Nuveen Advisory Corp. and Nuveen
| Institutional Advisory Corp.(3)
88 Nuveen Investments
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS | APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
| OVERSEEN
| BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o STEPHEN D. FOY Vice President (since 1993) and Funds Controller
5/31/54 | Vice President (since 1998) of Nuveen Investments, LLC; Vice
333 W. Wacker Drive | and Controller 1998 198 President (since 2005) of Nuveen Asset Management;
Chicago, IL 60606 | Certified Public Accountant.
|
o SCOTT S. GRACE Managing Director, Corporate Finance &
8/20/70 | Vice President Development, Treasurer (since September 2009) of
333 West Wacker Drive | and Treasurer 2009 198 Nuveen Investments, LLC, formerly, Treasurer
Chicago, IL 60606 | (2006-2009), Senior Vice President (2008-2009),
| previously, Vice President (2006-2008) of Janus
Capital Group, Inc.; formerly. Senior Associate in
Morgan Stanley's Global Financial Services Group
(2000-2003); Chartered Accountant Designation.
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed Income
5/7/69 | (since 2008) of Nuveen Asset Management;
333 W. Wacker Drive | Vice President 2009 134 previously, Chairman, President and Chief
Chicago, IL 60606 | Executive Officer (2002 - 2007) of Northern Trust
| Global Advisors, Inc. and Chief Executive Officer
(2007) of Northern Trust Global Investments
Limited; Certified Public Accountant.
o WALTER M. KELLY Senior Vice President (since 2008), Vice President
2/24/70 | Chief Compliance (2006-2008) formerly, Assistant Vice President and
333 W. Wacker Drive | Officer and 2003 198 Assistant General Counsel (2003-2006) of Nuveen
Chicago, IL 60606 | Vice President Investments, LLC; Vice President (since 2006) and
| Assistant Secretary (since 2008) of Nuveen Asset
Management.
o DAVID J. LAMB Senior Vice President (since 2009), formerly, Vice
3/22/63 | President (2000-2009) of Nuveen Investments, LLC;
333 W. Wacker Drive | Vice President 2000 198 Vice President (since 2005) of Nuveen Asset
Chicago, IL 60606 | Management; Certified Public Accountant.
|
o TINA M. LAZAR Senior Vice President (since 2009), formerly, Vice
8/27/61 | President of Nuveen Investments, LLC (1999-2009);
333 W. Wacker Drive | Vice President 2002 198 Vice President of Nuveen Asset Management (since
Chicago, IL 60606 | 2005).
|
o LARRY W. MARTIN Vice President, Assistant Secretary and Assistant
7/27/51 | Vice President General Counsel of Nuveen Investments, LLC; Vice
333 W. Wacker Drive | and Assistant 1988 198 President (since 2005) and Assistant Secretary of
Chicago, IL 60606 | Secretary Nuveen Investments, Inc.; Vice President (since
| 2005) and Assistant Secretary (since 1997) of
Nuveen Asset Management; Vice President and
Assistant Secretary of Nuveen Investments Advisers
Inc. (since 2002); NWQ Investment Management
Company, LLC (since 2002), Symphony Asset
Management LLC (since 2003), Tradewinds Global
Investors, LLC, Santa Barbara Asset Management LLC
(since 2006) and of Nuveen HydePark Group, LLC and
Nuveen Investment Solutions, Inc. (since 2007);
formerly, Vice President and Assistant Secretary
of Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.(3)
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice
3/26/66 | Vice President President (2007-2008), Nuveen Investments, LLC;
333 W. Wacker Drive | and Secretary 2007 198 Managing Director (since 2008), formerly, Vice
Chicago, IL 60606 | President, and Assistant Secretary, Nuveen Asset
| Management, and Nuveen Investments Holdings, Inc.;
Vice President (since 2007) and Assistant
Secretary, Nuveen Investment Advisers Inc., Nuveen
Investment Institutional Services Group LLC, NWQ
Investment Management Company, LLC, Tradewinds
Global Investors LLC, NWQ Holdings, LLC, Symphony
Asset Management LLC, Santa Barbara Asset
Management LLC, Nuveen HydePark Group, LLC and
Nuveen Investment Solutions, Inc. (since 2007);
prior thereto, Partner, Bell, Boyd & Lloyd LLP
(1997- 2007).
Nuveen Investments 89
BOARD MEMBERS & OFFICERS (continued)
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS | APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
| OVERSEEN
| BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o JOHN V. MILLER Chief Investment Officer and Managing Director
4/10/67 | (since formerly, Vice President (2002-2007) of
333 W. Wacker Drive | Vice President 2007 134 Nuveen Asset Management and Managing Director
Chicago, IL 60606 | (since 2007), formerly Vice President (2002-2007)
| Nuveen Investments, LLC; Chartered Financial
Analyst.
o GREGORY MINO Vice President of Nuveen Investments, LLC (since
1/4/71 | 2008); previously, Director (2004-2007) and
333 W. Wacker Drive | Vice President 2009 198 Executive Director (2007-2008) of UBS Global
Chicago, IL 60606 | Asset Management; previously, Vice President
| (2000-2003) and Director (2003-2004) of Merrill
Lynch Investment Managers; Chartered Financial
Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since
8/1/71 | Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive | and Assistant 2008 198 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 | Secretary thereto, Associate, Skadden, Arps, Slate Meagher
| & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since
7/3/62 | Vice President 2007); prior thereto, Partner, Deloitte & Touche
333 W. Wacker Drive | and Assistant 2007 198 USA LLP (2005-2007), formerly, senior tax manager
Chicago, IL 60606 | Secretary (2002-2005); Certified Public Accountant.
|
o MARK L. WINGET Vice President, Nuveen Investments, LLC (since
12/21/68 | Vice President 2008); Vice President and Assistant Secretary,
333 W. Wacker Drive | and Assistant 2008 198 Nuveen Asset Management (since 2008); prior
Chicago, IL 60606 | Secretary thereto, Counsel, Vedder Price P.C. (1997-2007).
|
(1) Board Members serve a one year term to serve until the next annual meeting
or until their successors shall have been duly elected and qualified. The
first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(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.
90 Nuveen Investments
ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be) (each, a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreements (each an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board
Members reviewed a broad range of information relating to the Funds and NAM,
including absolute performance, fee and expense information for the Funds as
well as comparative performance, fee and expense information for a comparable
peer group of funds, the performance information of recognized and/or customized
benchmarks (as applicable) of the Funds, the profitability of Nuveen for its
advisory activities (which includes its wholly owned subsidiaries other than
Winslow Capital Management, Inc. ("Winslow Capital"), which was recently
acquired in December 2008), and other information regarding the organization,
personnel, and services provided by NAM. The Independent Board Members also met
quarterly as well as at other times as the need arose during the year and took
into account the information provided at such meetings and the knowledge gained
therefrom. Prior to approving the renewal of the Advisory Agreements, the
Independent Board Members reviewed the foregoing information with their
independent legal counsel and with management, reviewed materials from
independent legal counsel describing applicable law and their duties in
reviewing advisory contracts, and met with independent legal counsel in private
sessions without management present. The Independent Board Members considered
the legal advice provided by independent legal counsel and relied upon their
knowledge of NAM, its services and the Funds resulting from their meetings and
other interactions throughout the year and their own business judgment in
determining the factors to be considered in evaluating
Nuveen Investments 91
ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued)
the Advisory Agreements. Each Board Member may have accorded different weight to
the various factors in reaching his or her conclusions with respect to a Fund's
Advisory Agreement. The Independent Board Members did not identify any single
factor as all-important or controlling. The Independent Board Members'
considerations were instead based on a comprehensive consideration of all the
information presented. The principal factors considered by the Board and its
conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM 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 Nuveen had taken for the applicable
fund product line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPs") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refinancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds
92 Nuveen Investments
through a variety of programs designed to raise investor and analyst awareness
and understanding of closed-end funds. These efforts include maintaining an
investor relations program to provide timely information and education to
financial advisers and investors; providing advertising and marketing for the
closed-end funds; maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Nuveen municipal funds managed by
NAM in the aggregate ranked by peer group and the performance of such funds, in
the aggregate, relative to their benchmark. This information supplemented the
Fund performance information provided to the Board at each of its quarterly
meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile
Nuveen Investments 93
ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued)
market conditions during the past year, and their impact on various asset
classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees, net
management fees and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as compared to the
fee and expenses of a comparable universe of unaffiliated funds based on
data provided by an independent fund data provider (the "Peer Universe")
and in certain cases, to a more focused subset of funds in the Peer
Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the
construction of the applicable Peer Universe and Peer Group. In reviewing
the comparisons of fee and expense information, the Independent Board
Members took into account that in certain instances various factors such as
the asset level of a fund relative to peers, the size and particular
composition of the Peer Universe or Peer Group, the investment objectives
of the peers, expense anomalies, changes in the funds comprising the Peer
Universe or Peer Group from year to year, levels of reimbursement and the
timing of information used may impact the comparative data, thereby
limiting the ability to make a meaningful comparison. In addition, the
Independent Board Members considered, among other things, the differences
in the use and type of leverage compared to the peers. In reviewing the fee
schedule for a Fund, the Independent Board Members also 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 closed-end funds launched since
1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and
net total expense ratio were reasonable in light of the nature, extent and
quality of services provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among other
things, because of the different services involved and the additional
regulatory and compliance requirements associated with registered
investment companies, such as the Funds. Accordingly, the Independent Board
Members considered the differences in the product types, including, but not
limited to, the services provided, the structure and operations, product
distribution and
94 Nuveen Investments
costs thereof, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Independent Board Members noted, in
particular, that the range of services provided to the Funds (as discussed
above) is much more extensive than that provided to separately managed
accounts. Given the inherent differences in the products, particularly the
extensive services provided to the Funds, the Independent Board Members
believe such facts justify the different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than
Winslow Capital) and its financial condition. The Independent Board Members
reviewed the revenues and expenses of Nuveen's advisory activities for the
last two years, the allocation methodology used in preparing the
profitability data and an analysis of the key drivers behind the changes in
revenues and expenses that impacted profitability in 2008. In addition, the
Independent Board Members reviewed information regarding the financial
results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009.
The Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as changes
in fee waivers and expense reimbursement commitments). In this regard, the
Independent Board Members noted that they had also appointed an Independent
Board Member as a point person to review and keep them apprised of changes
to the profitability analysis and/or methodologies during the year. The
Independent Board Members also considered Nuveen's revenues for advisory
activities, expenses, and profit margin compared to that of various
unaffiliated management firms with similar amounts of assets under
management and relatively comparable asset composition prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making comparisons
as the profitability of other advisers generally is not publicly available
and the profitability information that is available for certain advisers or
management firms may not be representative of the industry and may be
affected by, among other things, the adviser's particular business mix,
capital costs, types of funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In reviewing profitability, the
Independent Board Members recognized Nuveen's investment in its fund
business.
Based on their review, the Independent Board Members concluded that
Nuveen's level of profitability for its advisory activities was reasonable
in light of the services provided.
Nuveen Investments 95
ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued)
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Funds as well as
any indirect benefits (such as soft dollar arrangements, if any) NAM and
its affiliates receive, or are expected to receive, that are directly
attributable to the management of the Funds, if any. See Section E below
for additional information on indirect benefits NAM may receive as a result
of its relationship with the Funds. Based on their review of the overall
fee arrangements of each Fund, the Independent Board Members determined
that the advisory fees and expenses of the respective Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members also recognized
that the asset levels generally declined in 2008 due to, among other things, the
market downturn. Accordingly, for funds with a reduction in assets under
management, advisory fee levels may have increased as breakpoints in the fee
schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
96 Nuveen Investments
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 97
REINVEST AUTOMATICALLY EASILY AND CONVENIENTLY
Nuveen makes reinvesting easy. A phone call is all it takes to set up your
reinvestment account.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price
98 Nuveen Investments
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at
(800) 257-8787.
Nuveen Investments 99
GLOSSARY OF TERMS USED IN THIS REPORT
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed," with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period.
It expresses the return that would have been necessary each year to equal
the invest-ment's actual cumulative performance (including change in NAV or
market price and reinvested dividends and capital gains distributions, if
any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments or
the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o 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.
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with a
fixed interest rate, into a special purpose trust created by a
broker-dealer. This trust, in turn, (a) issues floating rate certificates
typically paying short-term tax-exempt interest rates to third parties in
amounts equal to some fraction of the deposited bond's par amount or market
value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund)
interested in gaining investment exposure to a long-term municipal bond.
The income received by the holder of the inverse floater varies inversely
with the short-term rate paid to the floating rate certificates' holders,
and in most circumstances the holder of the inverse floater bears
substantially all of the underlying bond's downside investment risk. The
holder of the inverse floater typically also benefits disproportionately
from any potential appreciation of the underlying bond's value. Hence, an
inverse floater essentially represents an investment in the underlying bond
on a leveraged basis.
100 Nuveen Investments
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to changes
when market interest rates change. Generally, the longer a bond's or Fund's
duration, the more the price of the bond or Fund will change as interest
rates change. Leverage-adjusted duration takes into account the leveraging
process for a Fund and therefore is longer than the duration of the Fund's
portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
Nuveen Investments 101
NOTES
102 Nuveen Investments
NOTES
Nuveen Investments 103
NOTES
104 Nuveen Investments
OTHER USEFUL INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities without charge, upon request,
by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website
at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON PREFERRED
SHARES SHARES
FUND REPURCHASED REDEEMED
NPI -- 592
NPM 2,500 235
NPT -- 1,726
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
BOARD OF DIRECTORS
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Nuveen Investments 105
NUVEEN INVESTMENTS: SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $141 billion of
assets on September 30, 2009.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
It's not what you earn,
it's what you keep.(R)
EAN-E-1009D
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/CEF/Info/Shareholder.
(To view the code, 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 ("Board") 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, 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, 2009 $ 49,354 $ 0 $ 0 $ 3,400
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 51,660 $ 0 $ 0 $ 3,350
------------------------------------------------------------------------------------------------------------------------------------
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
for agreed upon procedures engagements performed for leveraged funds.
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 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 SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
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 pre-approval 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, 2009 $ 3,400 $ 0 $ 0 $ 3,400
October 31, 2008 $ 3,350 $ 0 $ 0 $ 3,350
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees"
and "All Other Fees" billed to Fund 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 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, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
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 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 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 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:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Paul Brennan Registered Investment Company 13 $12.8 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 1 $1.06 million
* Assets are as of October 31, 2009. 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, 2009, the S&P/Investortools Municipal Bond index was
comprised of 54,552 securities with an aggregate current market value of $1,178
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. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors led by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event. In
addition, in July 2009, Nuveen Investments created and funded a trust, as part
of a newly-established incentive program, which purchased shares of certain
Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain
employees, including portfolio managers.
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, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of October 31, 2009, 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
EQUITY SECURITIES
DOLLAR RANGE OF BENEFICIALLY OWNED IN
EQUITY THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
NAME OF PORTFOLIO BENEFICIALLY BY NAM'S MUNICIPAL
MANAGER FUND OWNED IN FUND INVESTMENT TEAM
------------------------------------------------------------------------------------------------------------------
Paul Brennan Nuveen Premium Income Municipal Fund, Inc $50,001-$100,000 $100,001-$500,000
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 16
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 registrant's Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. 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/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, 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/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: January 8, 2010
-------------------------------------------------------------------
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 8, 2010
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 8, 2010
-------------------------------------------------------------------