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 811-07432 --------------------- Nuveen Premium Income Municipal Fund 4, Inc. ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: October 31 ------------------ Date of reporting period: April 30, 2004 ------------------ 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. Nuveen Municipal Closed-End Exchange-Traded Funds SEMIANNUAL REPORT April 30, 2004 NUVEEN PREMIUM INCOME MUNICIPAL FUND, INC. NPI NUVEEN PREMIUM INCOME MUNICIPAL FUND 2, INC. NPM NUVEEN PREMIUM INCOME MUNICIPAL FUND 4, INC. NPT Photo of: Man holding up small boy. Photo of: 2 women with 2 girls looking at seashells. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments FASTER INFORMATION RECEIVE YOUR NUVEEN FUND REPORT ELECTRONICALLY By registering for electronic delivery, you will receive an e-mail as soon as your Nuveen Fund information is available. Click on the link and you will be taken directly to the report. Your Fund report can be viewed and saved on your computer. Your report will arrive faster via e-mail than by traditional mail. Registering is easy and only takes a few minutes (see instructions at right). -------------------------------------------------------------------------------- SOME COMMON CONCERNS: WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES? No, your e-mail address is strictly confidential and will not be used for anything other than notification of shareholder information. WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR MAIL DELIVERY AGAIN? If you decide you do not like receiving your reports electronically, it's a simple process to go back to regular mail delivery. -------------------------------------------------------------------------------- IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.INVESTORDELIVERY.COM and follow the simple instructions, using the address sheet that accompanied this report as a guide. 2 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen and follow the simple instructions. 3 Click Submit. Confirm the information you just entered is correct, then click Submit again. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME DIRECTLY TO YOU FROM NUVEEN, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.NUVEEN.COM 2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click on Enrollment Today. 3 You'll be taken to a screen that asks for your Social Security number and e-mail address. Fill in this information, then click Enroll. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Sidebar text: WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND CAN BE IMPORTANT BUILDING BLOCKS IN A WELL-BALANCED PORTFOLIO. Dear SHAREHOLDER I am very pleased to report that for the period ended April 30, 2004, your Nuveen Fund continued to provide you with attractive monthly tax-free income. While tax-free income is always welcome, we know that many shareholders are beginning to wonder whether interest rates will rise significantly, and whether that possibility should cause them to adjust that portion of their investment portfolios allocated to tax-free municipal bonds. We believe this is a question you should consider carefully with the help of a trusted financial advisor. In many cases, it may be more appropriate to focus on long-term goals and objectives rather than shorter-term market movements, and this is where a professional advisor may be able to help keep you focused on the larger objectives of your investment program. As you read through this report, please review the inside front cover and consider receiving future Fund reports and other Fund information by e-mail and the Internet. Not only will you be able to receive the information faster, but this also may help lower your Fund's expenses. Sign up is quick and easy. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board June 15, 2004 1 Nuveen National Municipal Closed-End Exchange-Traded Funds (NPI, NPM, NPT) Portfolio Managers' COMMENTS Portfolio managers Dan Solender and Tom Spalding review the market environment, key investment strategies and the six-month performance of the Funds. Dan, who has 12 years of investment experience, including 8 years with Nuveen, assumed portfolio management responsibility for NPI in August 2003 and NPM in October 2003, while Tom, a 27-year veteran of Nuveen, has managed NPT since January 2003. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE SIX-MONTH REPORTING PERIOD ENDED APRIL 30, 2004? During this reporting period, the greatest influences on the national economy and the municipal market continued to be historically low interest rates, growing evidence of economic improvement, and a generally modest rate of inflation. Since its last credit easing in June 2003, the Federal Reserve has maintained the fed funds rate at 1.0%, the lowest level since 1958. This accommodative monetary policy helped to spur GDP (gross domestic product) growth of 4.4% annualized in the first quarter of 2004, following a 3.1% rise in 2003. Over the six-month reporting period, the year-over-year rate of inflation, as measured by the core Consumer Price Index, averaged 1.3%. This generally favorable environment helped many municipal bonds perform well during most of the six-month period ended April 30, 2004. However, in early April, a sharply improved jobs report, along with subsequent indications of growing momentum in the U.S. economy, served as catalysts for increased expectations of a Fed rate hike. This all contributed to heightened volatility in the fixed-income markets. During April, the yield on the Bond Buyer 25 Revenue Bond Index, a widely-followed municipal bond index, rose almost 40 basis points. The rise in the index yield, and the corresponding decline in bond prices, effectively offset the yield declines and price gains of the previous five months. As of April 30, 2004, the Bond Buyer 25 index was at approximately the same level as it was at the beginning of the six-month reporting period. In general, municipal supply remained strong over the past six months, although the pace of issuance slowed. The first four months of 2004 saw $110 billion in new municipal supply, down 9% from January-April 2003. Over the entire six-month reporting period ended April 2004, the supply of new bonds decreased 13% compared with the preceding six months. IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE SIX MONTHS ENDED APRIL 30, 2004? With the market continuing to anticipate an increase in interest rates, our major focus during this reporting period remained on careful management of the Funds' durations1 as a way to mitigate some of the interest rate risk inherent in each Fund's portfolio. Interest rate risk is the risk that the value of a Fund's portfolio will decline if market interest rates rise (since bond prices move in the opposite direction of interest rates). The longer the duration of a Fund's portfolio, the greater the Fund's interest rate risk. Our use of such a duration management strategy is designed to position the Funds to potentially produce more consistent returns over time. With yields remaining low, the market did not offer many bonds that we thought would perform better 1 Duration is a measure of a Fund's net asset value (NAV) volatility in reaction to interest rate movements. Fund duration, also known as leverage-adjusted duration, takes into account the leveraging process for a Fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. References to duration in this commentary are intended to indicate Fund duration unless otherwise noted. 2 than those we already owned. However, when opportunities did arise, we focused primarily on identifying attractive securities in the long- intermediate part of the yield curve (i.e., bonds that mature in 15 to 25 years). In many cases, bonds in this part of the curve offered yields similar to those of longer-term bonds with less inherent interest rate risk and better total return potential. In NPI and NPM, we sought to increase the Funds' allocations to BBB rated bonds because they were relatively underweighted in lower-rated investment grade bonds, and because we thought the total return and income potential of these bonds represented attractive opportunities for the Funds. We also looked for bonds that would maintain portfolio diversification in terms of industry sector and geographic region. Based on the recent implementation of economic reforms in California, we believed this state had demonstrated signs of progress, and we took advantage of selected opportunities to add California bonds to each Fund. On May 21, 2004, after the close of this reporting period, Moody's upgraded California general obligation bonds to A3 with a positive outlook from Baa1 with a stable outlook. HOW DID THE FUNDS PERFORM? Individual results for the Funds, as well as for relevant benchmarks, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE For periods ended 4/30/04 (6-month returns cumulative, all others annualized) 6-MONTH 1-YEAR 5-YEAR 10-YEAR --------------------------------------------------------------------- NPI 1.85% 3.72% 5.16% 6.44% --------------------------------------------------------------------- NPM 1.76% 2.84% 5.19% 7.36% --------------------------------------------------------------------- NPT 2.01% 2.30% 3.53% 6.31% --------------------------------------------------------------------- Lehman Brothers Municipal Bond Index2 1.19% 2.68% 5.44% 6.46% --------------------------------------------------------------------- Lipper General (Leveraged) Municipal Debt Funds average3 2.21% 4.97% 5.65% 6.90% --------------------------------------------------------------------- Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. For the six months ended April 30, 2004, the cumulative returns of all three Funds outperformed the return of the Lehman Brothers index. None of the Funds performed as well as the Lipper peer group average over this period. A primary reason for the relatively strong performance of the Funds compared with the unmanaged, unleveraged Lehman Brothers index was the Funds' use of leverage. While leveraging can add volatility to the Funds' net asset values (NAVs) and share prices, this strategy also can provide opportunities for additional income and total return for common shareholders during periods of low or short-term interest rates, as was the case during most of this reporting period. In addition to leverage, the Funds benefited from their holdings of healthcare bonds during this six-month period. Healthcare ranked second among all sectors in terms of return during the period, 2 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 3 The Lipper General (Leveraged) Municipal Debt Funds category average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 6 months - 65 funds; 1 year - 64 funds; 5 years - 49 funds; and 10 years - 46 funds. Fund and Lipper returns assume reinvestment of dividends. 3 according to Lehman Brothers due to improvements in cost containment and reimbursement practices as well as increased demand for higher-yielding bonds. Among these Funds, holdings of healthcare bonds ranged from 11% of NPI's and NPT's portfolios to 10% in NPM. NPT held approximately 1% (par value) of its assets in bonds issued by the Michigan State Hospital Finance Authority for Detroit Medical Center, the largest healthcare provider in southeastern Michigan. As the center's financial situation stabilized following implementation of cost-cutting initiatives and improved operating efficiencies, the price of these bonds rebounded. NPM also had a very small position in these bonds. Some of each Fund's healthcare holdings were positioned in the lower-rated investment-grade categories. This helped the performance of each Fund over this period, as BBB rated bonds tended to provide better returns than higher-rated securities. NPI also benefited from its holdings of bonds backed by United and American air lines. These bonds performed well as the signs of an economic recovery increased. Other holdings making positive contributions to the Funds' cumulative returns during this reporting period were bonds backed by revenues from the 1998 master tobacco settlement agreement. On April 21, 2004, based on an adverse ruling in a tobacco-related court case, Moody's downgraded all tobacco bonds that were not enhanced or additionally secured. As a result, the majority of unenhanced municipal-issued tobacco securities were rated Baa by Moody's, while insured tobacco bonds continued to be rated Aaa. The other major credit rating agencies--S&P and Fitch--did not change their tobacco bond ratings. As of April 30, 2004, we believed that the prices of tobacco bonds accurately reflected the risks involved and that, when maintained at appropriate levels in the Funds, these bonds would continue to represent good value. HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES? With short-term interest rates remaining at historically low levels during this reporting period, the leveraged structures of these three Funds continued to support their dividend-paying capabilities. The extent of this benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R) shareholders. During periods of low short-term rates, the Funds generally pay relatively lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. During this reporting period, continued low short-term rates enabled us to maintain the dividend levels of these Funds. All of these Funds 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 net asset value (NAV). Conversely, if a Fund has cumulatively paid dividends in excess of its 4 earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of April 30, 2004, all of the Funds in this report had positive UNII balances. As of April 30, 2004, NPI was trading at a discount of -10.02% to its net asset value, compared with an average discount of -4.45% for the reporting period. NPM was trading at a -9.41% discount, compared with an average of -4.55%, and NPT was at discount of -9.09%, compared with an average of -3.76% for the six months. HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF APRIL 30, 2004? Given the current geopolitical and economic climate, we continued to believe that maintaining strong overall credit quality was an important requirement. As of the end of April 2004, all three of these Funds continued to offer excellent average credit quality, with allocations of bonds rated AAA/U.S. Guaranteed or AA ranging from 76% in NPM to 79% in NPI and 80% in NPT. As of April 30, 2004, potential call exposure for these Funds during 2004-2005 ranged from 14% in NPI and NPT and 16% in NPM. The number of actual bond calls in all of the Funds will depend largely on market interest rates. 5 Nuveen Premium Income Municipal Fund, Inc. Performance OVERVIEW As of April 30, 2004 NPI Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 65% AA 14% A 10% BBB 8% NR 2% BB or Lower 1% FUND SNAPSHOT -------------------------------------------------- Share Price $13.20 -------------------------------------------------- Common Share Net Asset Value $14.67 -------------------------------------------------- Premium/(Discount) to NAV -10.02% -------------------------------------------------- Market Yield 7.27% -------------------------------------------------- Taxable-Equivalent Yield1 10.10% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $935,515 -------------------------------------------------- Average Effective Maturity (Years) 18.34 -------------------------------------------------- Leverage-Adjusted Duration 9.91 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 7/18/88) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 6-Month (Cumulative) -2.94% 1.85% -------------------------------------------------- 1-Year -3.12% 3.72% -------------------------------------------------- 5-Year 3.65% 5.16% -------------------------------------------------- 10-Year 5.31% 6.44% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/Limited 22% -------------------------------------------------- Tax Obligation/General 19% -------------------------------------------------- Healthcare 11% -------------------------------------------------- U.S. Guaranteed 9% -------------------------------------------------- Transportation 9% -------------------------------------------------- Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 May 0.08 Jun 0.08 Jul 0.08 Aug 0.08 Sep 0.08 Oct 0.08 Nov 0.08 Dec 0.08 Jan 0.08 Feb 0.08 Mar 0.08 Apr 0.08 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/03 14.65 14.85 15.23 15.29 15.4 14.97 15.08 15.2 15.01 14.45 13.86 14.07 13.91 13.86 13.95 14.06 14.17 14.2 14.21 14.31 14.05 13.96 14.06 14.13 14.17 14.16 14.27 14.4 14.25 14.46 14.8 14.99 14.92 14.75 14.89 15.01 14.89 15.11 15.15 15.16 15.18 14.99 14.7 14.1 13.79 13.54 4/30/04 13.2 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%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a net ordinary income distribution in December of 2003 of $0.0042 per share. 6 Nuveen Premium Income Municipal Fund 2, Inc. Performance OVERVIEW As of April 30, 2004 NPM Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 65% AA 11% A 13% BBB 8% NR 3% FUND SNAPSHOT -------------------------------------------------- Share Price $13.47 -------------------------------------------------- Common Share Net Asset Value $14.87 -------------------------------------------------- Premium/(Discount) to NAV -9.41% -------------------------------------------------- Market Yield 7.26% -------------------------------------------------- Taxable-Equivalent Yield1 10.08% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $611,063 -------------------------------------------------- Average Effective Maturity (Years) 16.49 -------------------------------------------------- Leverage-Adjusted Duration 10.90 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 7/23/92) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 6-Month (Cumulative) -2.23% 1.76% -------------------------------------------------- 1-Year -2.21% 2.84% -------------------------------------------------- 5-Year 3.40% 5.19% -------------------------------------------------- 10-Year 7.42% 7.36% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/General 24% -------------------------------------------------- Tax Obligation/Limited 16% -------------------------------------------------- U.S. Guaranteed 13% -------------------------------------------------- Utilities 11% -------------------------------------------------- Healthcare 10% -------------------------------------------------- Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 May 0.0815 Jun 0.0815 Jul 0.0815 Aug 0.0815 Sep 0.0815 Oct 0.0815 Nov 0.0815 Dec 0.0815 Jan 0.0815 Feb 0.0815 Mar 0.0815 Apr 0.0815 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/03 14.84 14.9 15.3 15.48 15.4 14.94 15.07 15.23 15.03 14.47 14.05 14.4 14.02 14.1 14.15 14.15 14.29 14.33 14.38 14.23 14.21 14.26 14.25 14.32 14.44 14.38 14.43 14.47 14.47 14.48 14.81 15.31 15.31 15.06 15.28 15.29 15.02 15.34 15.4 15.42 15.3 15.11 14.84 14.3 14.21 13.91 4/30/04 13.47 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%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a net ordinary income distribution in December of 2003 of $0.0060 per share. 7 Nuveen Premium Income Municipal Fund 4, Inc. Performance OVERVIEW As of April 30, 2004 NPT Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 70% AA 10% A 8% BBB 8% NR 3% BB or Lower 1% FUND SNAPSHOT -------------------------------------------------- Share Price $11.80 -------------------------------------------------- Common Share Net Asset Value $12.98 -------------------------------------------------- Premium/(Discount) to NAV -9.09% -------------------------------------------------- Market Yield 7.22% -------------------------------------------------- Taxable-Equivalent Yield1 10.03% -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $561,082 -------------------------------------------------- Average Effective Maturity (Years) 17.42 -------------------------------------------------- Leverage-Adjusted Duration 10.89 -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 2/19/93) -------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------- 6-Month (Cumulative) -2.47% 2.01% -------------------------------------------------- 1-Year -3.44% 2.30% -------------------------------------------------- 5-Year 2.44% 3.53% -------------------------------------------------- 10-Year 6.53% 6.31% -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) -------------------------------------------------- Tax Obligation/Limited 16% -------------------------------------------------- Tax Obligation/General 15% -------------------------------------------------- Utilities 13% -------------------------------------------------- U.S. Guaranteed 12% -------------------------------------------------- Healthcare 11% -------------------------------------------------- Bar Chart: 2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 May 0.071 Jun 0.071 Jul 0.071 Aug 0.071 Sep 0.071 Oct 0.071 Nov 0.071 Dec 0.071 Jan 0.071 Feb 0.071 Mar 0.071 Apr 0.071 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 5/1/03 13.12 13.29 13.63 13.9 13.82 13.48 13.53 13.52 13.31 12.97 12.45 12.65 12.23 12.39 12.33 12.52 12.51 12.55 12.6 12.58 12.53 12.58 12.52 12.52 12.6 12.65 12.83 12.82 12.68 12.72 13.11 13.3 13.43 13.24 13.3 13.34 13.31 13.39 13.45 13.58 13.59 13.46 13.3 12.63 12.29 12.05 4/30/04 11.8 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%. For investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a net ordinary income distribution in December of 2003 of $0.0165 per share. 8 Nuveen Premium Income Municipal Fund, Inc. (NPI) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.0% $ 4,050 Alabama 21st Century Authority, Tobacco Settlement Revenue 6/10 at 102.00 A- $ 4,171,946 Bonds, Series 2000, 6.125%, 12/01/16 5,020 The DCH Health Care Authority, Alabama, Health Care Facilities 6/12 at 101.00 A+ 5,083,101 Revenue Bonds, Series 2002, 5.250%, 6/01/18 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 1.4% Anchorage, Alaska, General Obligation Refunding Bonds, Series 2003A: 2,000 5.250%, 9/01/17 - FGIC Insured 9/13 at 100.00 AAA 2,147,100 2,035 5.250%, 9/01/18 - FGIC Insured 9/13 at 100.00 AAA 2,173,380 10,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 BBB 9,131,500 Settlement Asset-Backed Bonds, Series 2000, 6.500%, 6/01/31 ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.8% 5,000 Arizona School Facilities Board, Certificates of Participation, 9/13 at 100.00 AAA 5,332,100 Series 2003B, 5.250%, 9/01/18 - FGIC Insured 6,775 Pima County Industrial Development Authority, Arizona, Lease 7/04 at 102.00 AAA 7,124,590 Obligation Revenue Refunding Bonds, Tucson Electric Power Company Irvington Project, Series 1988A, 7.250%, 7/15/10 - FSA Insured 4,130 University of Arizona, Certificates of Participation, Series 2002B, 6/12 at 100.00 AAA 4,325,142 5.125%, 6/01/18 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 1.2% 3,500 Arkansas Development Finance Authority, Drivers License 6/07 at 100.00 AAA 3,737,545 Revenue Bonds, Arkansas State Police Headquarters and Wireless Data Equipment, Series 1997, 5.400%, 6/01/18 - FGIC Insured 480 Paragould, Arkansas, Water, Sewer and Electric Revenue Bonds, 12/10 at 100.00 AAA 510,298 Series 2000, 5.650%, 12/01/25 - AMBAC Insured 1,000 Sebastian County Community Junior College District, Arkansas, 4/09 at 100.00 AAA 1,138,130 General Obligation Improvement Bonds, Series 1999, 5.950%, 4/01/29 (Pre-refunded to 4/01/09) - AMBAC Insured 5,245 University of Arkansas, Fayetteville, Athletic Facilities Revenue 9/09 at 100.00 Aaa 5,437,072 Bonds, Razorback Stadium, Series 1999, 5.050%, 9/15/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 15.2% 9,200 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 3,888,012 Subordinate Lien Revenue Bonds, Series 2004A, 0.000%, 10/01/20 (WI, settling 5/06/04) - AMBAC Insured California Health Facilities Financing Authority, Revenue Bonds, Adventist Health System/West, Series 2003A: 3,700 5.000%, 3/01/28 3/13 at 100.00 A 3,562,619 7,000 5.000%, 3/01/33 3/13 at 100.00 A 6,676,040 5,500 California Health Facilities Financing Authority, Revenue Bonds, No Opt. Call BBB+ 5,530,195 Catholic Healthcare West, Series 2004I, 4.950%, 7/01/26 (DD, settling 5/03/04) (Mandatory put 7/01/14) 10,250 California State, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AAA 10,652,723 Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax) - FSA Insured California, General Obligation Bonds, Series 2004: 5,000 5.000%, 4/01/10 No Opt. Call Baa1 5,328,900 2,000 5.125%, 2/01/25 2/14 at 100.00 Baa1 1,957,320 10,000 5.125%, 2/01/26 2/14 at 100.00 Baa1 9,755,900 4,000 California Department of Water Resources, Power Supply Revenue 5/12 at 101.00 A3 4,424,680 Bonds, Series 2002A, 6.000%, 5/01/15 23,725 California State Public Works Board, Lease Revenue Refunding Bonds, 6/04 at 101.00 Aa2 24,070,911 Various University of California Projects, Series 1993A, 5.500%, 6/01/21 9 Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA (continued) $ 11,395 California State Public Works Board, Lease Revenue Bonds, No Opt. Call Baa2 $ 11,853,193 Department of Corrections, Series 1993E, 5.500%, 6/01/15 1,195 Martinez, California, Home Mortgage Revenue Bonds, No Opt. Call AAA 1,692,001 Series 1983A, 10.750%, 2/01/16 4,750 North Orange County Community College District, California, 8/14 at 100.00 AAA 4,921,285 General Obligation Bonds, Series 2003B, 5.000%, 8/01/20 - FGIC Insured 20,000 Pomona, California, GNMA/FNMA Collateralized Securities No Opt. Call AAA 26,059,000 Program, Single Family Mortgage Revenue Bonds, Series 1990A, 7.600%, 5/01/23 San Bernardino Joint Powers Financing Authority, California, Tax Allocation Refunding Bonds, Series 1995A: 6,675 5.750%, 10/01/15 - FSA Insured 10/05 at 102.00 AAA 7,138,045 10,000 5.750%, 10/01/25 - FSA Insured 10/05 at 102.00 AAA 10,609,100 San Joaquin Hills Transportation Corridor Agency, California, Toll Road Refunding Revenue Bonds, Series 1997A: 10,000 0.000%, 1/15/31 - MBIA Insured No Opt. Call AAA 2,260,900 9,025 0.000%, 1/15/36 - MBIA Insured No Opt. Call AAA 1,521,074 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.3% 2,500 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AAA 2,581,900 Sewer Revenue Bonds, Series 2004, 5.000%, 12/01/21 (DD, settling 5/03/04) - FGIC Insured 1,270 Colorado Housing and Finance Authority, Single Family Program 4/10 at 105.00 AA 1,296,060 Senior Bonds, Series 2000B-2, 7.250%, 10/01/31 (Alternative Minimum Tax) 1,060 Colorado Housing and Finance Authority, Single Family Program 5/07 at 105.00 Aa2 1,084,624 Senior Bonds, Series 1997B-2, 7.000%, 5/01/26 (Alternative Minimum Tax) 760 Colorado Housing and Finance Authority, Single Family Program 11/07 at 105.00 Aa2 771,628 Senior Bonds, Series 1997C-2, 6.875%, 11/01/28 (Alternative Minimum Tax) 9,450 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 11,262,321 Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) 19,810 City and County of Denver, Colorado, Excise Tax Revenue 3/11 at 100.00 AAA 21,515,245 Bonds, Colorado Convention Center Project, Series 2001A, 5.500%, 9/01/18 - FSA Insured 8,315 Denver, Colorado, Special Facilities Airport Revenue Bonds, 10/04 at 100.00 N/R 6,464,913 United Air Lines, Inc. Project, Series 1992A, 6.875%, 10/01/32 (Alternative Minimum Tax)# 185 El Paso County, Colorado, FNMA Mortgage-Backed Single No Opt. Call Aaa 191,953 Family Mortgage Revenue Refunding Bonds, Series 1992A-2, 8.750%, 6/01/11 4,000 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 102.00 AAA 4,067,920 Revenue Bonds, Senior Series 2001A, 5.250%, 6/15/41 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.2% 1,930 Connecticut, General Obligation Bonds, Series 2001C, No Opt. Call AA 2,178,874 5.500%, 12/15/16 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 4.6% 9,505 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA 11,011,352 6.000%, 6/01/20 - MBIA Insured 11,810 District of Columbia Housing Finance Agency, GNMA 12/04 at 103.00 AAA 11,859,720 Collateralized Single Family Mortgage Revenue Bonds, Series 1988E-4, 6.375%, 6/01/26 (Alternative Minimum Tax) 10,350 District of Columbia Revenue Bonds, Association of American 8/07 at 102.00 AAA 10,513,220 Medical Colleges Issue, Series 1997A, 5.375%, 2/15/27 - AMBAC Insured District of Columbia, University Revenue Bonds, Georgetown University Issue, Series 2001A: 14,105 0.000%, 4/01/24 - MBIA Insured 4/11 at 47.66 AAA 4,464,374 7,625 0.000%, 4/01/25 - MBIA Insured 4/11 at 44.82 AAA 2,261,118 16,665 0.000%, 4/01/32 - MBIA Insured 4/11 at 29.23 AAA 3,187,015 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.5% 8,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AAA 8,472,480 Bonds, Tampa International Airport, Series 2003A, 5.375%, 10/01/16 (Alternative Minimum Tax) - MBIA Insured 5,000 Orange County Health Facility Authority, Florida, Hospital 11/10 at 101.00 A 5,384,950 Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2000, 6.500%, 11/15/30 10 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 1.6% $ 6,025 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA $ 6,358,845 Certificates, Series 2003, 5.250%, 1/01/20 - FSA Insured 4,845 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales No Opt. Call AAA 5,708,573 Tax Revenue Refunding Bonds, Series 1992P, 6.250%, 7/01/20 - AMBAC Insured 2,750 Savannah Housing Authority, Georgia, GNMA Collateralized 5/08 at 103.00 Aaa 2,913,790 Mortgage Revenue Refunding Bonds, Plantation Oak Project, Series 2000, 6.350%, 11/20/39 ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 1.1% 10,000 Hawaii, General Obligation Bonds, Series 2003DA, 9/13 at 100.00 AAA 10,515,300 5.250%, 9/01/21 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 0.5% 5,000 Boise City, Idaho, Airport Revenue Certificates of Participation, 9/10 at 100.00 Aaa 5,104,050 Series 2000, 5.500%, 9/01/25 (Alternative Minimum Tax) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 10.5% 9,220 Chicago School Reform Board of Trustees of the Chicago 12/07 at 102.00 AAA 9,335,158 Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1997A, 5.250%, 12/01/27 - AMBAC Insured Chicago School Reform Board of Trustees of the Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1: 8,890 0.000%, 12/01/16 - FGIC Insured No Opt. Call AAA 4,821,936 10,000 0.000%, 12/01/20 - FGIC Insured No Opt. Call AAA 4,240,400 9,900 0.000%, 12/01/24 - FGIC Insured No Opt. Call AAA 3,204,531 Chicago School Reform Board of Trustees of the Chicago Board of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1999A: 15,000 0.000%, 12/01/21 - FGIC Insured No Opt. Call AAA 5,957,700 10,000 0.000%, 12/01/23 - FGIC Insured No Opt. Call AAA 3,468,400 9,000 Chicago, Illinois, Special Facility Revenue Bonds, O'Hare No Opt. Call N/R 4,038,750 International Airport, United Air Lines, Inc. Project, Series 2001A, 6.375%, 11/01/35 (Alternative Minimum Tax) (Mandatory put 5/01/13)# 4,530 Chicago, Illinois, General Airport Second Lien Revenue 7/04 at 102.00 AAA 4,607,554 Refunding Bonds, O'Hare International Airport, Series 1993C, 5.000%, 1/01/18 - MBIA Insured 545 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 3/06 at 105.00 Aaa 547,714 Mortgage Revenue Bonds, Series 1996A, 7.000%, 9/01/27 (Alternative Minimum Tax) 1,075 Chicago, Illinois, FNMA/GNMA Collateralized Single Family 9/07 at 105.00 Aaa 1,091,405 Mortgage Revenue Bonds, Series 1997B, 6.950%, 9/01/28 (Alternative Minimum Tax) 8,740 Illinois Development Finance Authority, Pollution Control 8/04 at 102.00 AAA 8,938,835 Refunding Revenue Bonds, Illinois Power Company Project, Series 1994A, 5.700%, 2/01/24 - MBIA Insured Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2004: 1,000 5.250%, 11/15/22 (WI, settling 5/12/04) 5/14 at 100.00 A 993,530 3,000 5.250%, 11/15/23 (WI, settling 5/12/04) 5/14 at 100.00 A 2,962,050 1,500 Illinois Health Facilities Authority, Revenue Bonds, Highland 10/07 at 102.00 AAA 1,692,960 Park Hospital Project, Series 1997A, 5.750%, 10/01/26 (Pre-refunded to 10/01/07) - MBIA Insured 12,820 Illinois Health Facilities Authority, Revenue Bonds, Sherman 8/07 at 101.00 AAA 12,935,380 Health Systems, Series 1997, 5.250%, 8/01/27 - AMBAC Insured 10,040 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 5,923,198 Place Expansion Project Bonds, Series 1992A, 0.000%, 6/15/15 - FGIC Insured 9,200 Metropolitan Pier and Exposition Authority, Illinois, McCormick 12/09 at 101.00 AAA 9,662,944 Place Expansion Project Bonds, Series 1999A, 5.500%, 12/15/24 - FGIC Insured 3,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 3,809,070 Place Hospitality Facilities Revenue Bonds, Series 1996A, 7.000%, 7/01/26 4,925 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 5,615,436 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992A, 9.000%, 6/01/06 - AMBAC Insured 785 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 895,049 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1992B, 9.000%, 6/01/06 - AMBAC Insured 3,000 Upper Illinois River Valley Development Authority, Health Care 12/11 at 101.00 BBB+ 3,129,270 Facilities Revenue Bonds, Series 2001, Morris Hospital, 6.625%, 12/01/31 11 Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.7% $ 5,000 Center Grove 2000 Building Corporation, Indiana, First Mortgage 7/11 at 100.00 AAA $ 5,206,150 Bonds, Series 2001, 5.500%, 1/15/26 - AMBAC Insured 4,565 Indiana State Office Building Commission, Correctional 7/05 at 102.00 AAA 4,871,357 Facilities Program Revenue Bonds, Series 1995A, 5.500%, 7/01/20 (Pre-refunded to 7/01/05) - AMBAC Insured 7,070 Indiana Transportation Finance Authority, Highway Revenue 6/13 at 100.00 AAA 7,518,521 Bonds, Series 2003A, 5.250%, 6/01/18 - FSA Insured 8,000 Steuben County Middle School Building Corporation, Indiana, 7/05 at 102.00 AAA 8,630,720 First Mortgage Bonds, Series 1995, 6.375%, 7/15/16 (Pre-refunded to 7/15/05) - MBIA Insured 7,965 Wawasee Community School Corporation, Indiana, New 1/12 at 101.00 AA- 8,606,581 Elementary and Remodeling Building Corporation, First Mortgage Bonds, Series 2000, 5.750%, 1/15/20 ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 1.4% City of Des Moines, Iowa, General Obligation Bonds, Series 2000D: 1,215 5.750%, 6/01/17 - MBIA Insured 6/08 at 100.00 AAA 1,335,151 1,410 5.800%, 6/01/18 - MBIA Insured 6/08 at 100.00 AAA 1,553,242 3,000 Iowa Financing Authority, Private College Revenue Refunding 12/05 at 102.00 AAA 3,199,770 Bonds, Drake University Project, Series 1996, 5.400%, 12/01/16 - MBIA Insured 4,785 Iowa Finance Authority, Industrial Revenue Refunding Bonds, No Opt. Call AAA 6,577,652 Urbandale Hotel Corporation Project, Remarketed, Series 1989A, 8.500%, 8/01/16 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.9% 8,190 Sedgwick and Shawnee Counties, Kansas, GNMA 6/08 at 105.00 Aaa 8,785,986 Mortgage-Backed Securities Program Single Family Revenue Bonds, Series 1998A-1, 6.500%, 12/01/22 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 3.1% 2,915 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,084,915 Special Sales Tax Revenue Refunding Bonds, Series 2002, 5.250%, 12/01/19 - AMBAC Insured 1,080 Louisiana Housing Finance Agency, Single Family Mortgage 9/09 at 101.00 Aaa 1,124,842 Revenue Bonds, Series 2000A, 7.450%, 12/01/31 (Alternative Minimum Tax) 11,860 Louisiana Stadium and Exposition District Hotel Occupancy 7/05 at 102.00 AAA 12,775,829 Tax Bonds, Series 1995B, 6.375%, 7/01/25 (Pre-refunded to 7/01/05) - FGIC Insured 7,660 Louisiana Public Facilities Authority, Extended Care Facilities No Opt. Call BBB 9,700,164 Revenue Bonds, Comm-Care Corporation Project, Series 1994, 11.000%, 2/01/14 2,500 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 2,077,050 Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39 ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.4% 3,600 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 3,765,996 Maryland, Multifamily Housing Development Bonds, Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 7.6% 10,000 Massachusetts Bay Transportation Authority, Assessment 7/10 at 100.00 AAA 10,130,600 Bonds, Series 2000A, 5.250%, 7/01/30 13,000 Massachusetts, General Obligation Bonds, Consolidated 6/10 at 100.00 AAA 14,944,540 Loan, Series 2000B, 6.000%, 6/01/16 (Pre-refunded to 6/01/10) 4,000 Massachusetts, General Obligation Bonds, Series 2003D, 10/13 at 100.00 Aa2 4,403,920 5.250%, 10/01/22 (Pre-refunded to 10/01/13) Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002E: 11,400 5.250%, 1/01/21 (Pre-refunded to 1/01/13) - FSA Insured 1/13 at 100.00 AAA 12,473,994 1,850 5.250%, 1/01/21 (Pre-refunded to 1/01/13) - FSA Insured 1/13 at 100.00 AAA 2,024,289 2,825 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,758,697 Revenue Refunding Bonds, Ogden Haverhill Project, Series 1998A, 5.450%, 12/01/12 (Alternative Minimum Tax) 14,750 Massachusetts Industrial Finance Agency, General Obligation 7/07 at 102.00 AAA 15,000,455 Bonds, Suffolk University, Series 1997, 5.250%, 7/01/27 - AMBAC Insured 8,750 Massachusetts Housing Finance Agency, Rental Housing 1/11 at 100.00 AAA 9,047,413 Mortgage Revenue Bonds, Series 2001A, 5.850%, 7/01/35 (Alternative Minimum Tax) - AMBAC Insured 12 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 5.4% Detroit, Michigan, General Obligation Bonds, Series 2003A: $ 3,565 5.250%, 4/01/22 - XLCA Insured 4/13 at 100.00 AAA $ 3,694,552 1,275 5.250%, 4/01/23 - XLCA Insured 4/13 at 100.00 AAA 1,315,711 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, Series 1995A: 2,700 5.000%, 7/01/25 (Pre-refunded to 7/01/05) - MBIA Insured 7/05 at 100.00 AAA 2,812,455 7,850 5.000%, 7/01/25 - MBIA Insured 7/05 at 100.00 AAA 7,855,652 10,510 Hudsonville Public Schools, Counties of Ottawa and Allegan, 5/08 at 100.00 AAA 10,829,819 Michigan, School Building and Site and Refunding Bonds, General Obligation Unlimited Tax, Series 1997, 5.150%, 5/01/22 - FGIC Insured 10,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 10,123,800 Facilities Program, Series 2003-II, 5.000%, 10/15/23 - MBIA Insured 6,600 Michigan Housing Development Authority, Limited Obligation 7/07 at 102.00 AAA 6,733,716 Multifamily Mortgage Revenue Refunding Bonds, Forest Hills Regency Square Project, Series 1999A, 5.750%, 7/01/29 6,390 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/12 at 100.00 AAA 6,738,255 Metropolitan Airport, Series 2002D, 5.500%, 12/01/19 (Alternative Minimum Tax) - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 4.0% 2,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- 2,044,140 Facilities Revenue Bonds, Benedictine Health System St. Mary's, Series 2004, 5.375%, 2/15/22 Eden Prairie, Minnesota, GNMA Collateralized Multifamily Housing Revenue Bonds, Rolling Hills Project, Series 2001A: 1,000 6.150%, 8/20/31 8/11 at 105.00 A1 1,074,810 2,000 6.200%, 2/20/43 8/11 at 105.00 A1 2,146,960 470 Minneapolis/St. Paul Housing Finance Board, Minnesota, 11/04 at 102.00 AAA 474,239 FNMA/GNMA Mortgage-Backed Securities Program, Single Family Mortgage Revenue Bonds, Series 1994, 7.500%, 11/01/27 (Alternative Minimum Tax) 3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101.00 AAA 3,045,030 Minnesota, Airport Revenue Bonds, Series 1998A, 5.000%, 1/01/22 - AMBAC Insured 5,000 Minnesota Agricultural and Economic Development Board, 11/07 at 102.00 AAA 5,310,850 Health Care System Revenue Bonds, Fairview Hospital and Healthcare Services, Series 1997A, 5.750%, 11/15/26 - MBIA Insured 19,460 The Housing and Redevelopment Authority of the City 11/15 at 103.00 AAA 23,701,891 of Saint Paul, Minnesota, Sales Tax Revenue Refunding Bonds, Civic Center Project, Series 1996, 7.100%, 11/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 3.2% 1,980 Missouri Housing Development Commission, GNMA/FNMA 3/07 at 105.00 AAA 2,012,512 Single Family Mortgage Revenue Bonds, Homeownership Loan Program, Series 1996C, 7.450%, 9/01/27 (Alternative Minimum Tax) Missouri Health and Educational Facilities Authority, Revenue Bonds, SSM Healthcare System, Series 2001A: 3,000 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 3,110,820 4,150 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 4,215,653 7,250 Missouri Housing Development Commission, Single Family 3/09 at 103.00 AAA 7,660,133 Mortgage Revenue Bonds, Homeownership Loan Program, Series 1999B-1, 6.700%, 9/01/30 (Alternative Minimum Tax) 11,120 Francis Howell School District, Saint Charles County, No Opt. Call AAA 12,545,695 Missouri, General Obligation Refunding Bonds, Series 1994A, 7.800%, 3/01/08 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.1% 8,500 Omaha, Nebraska, General Obligation Bonds, Convention No Opt. Call AAA 10,263,580 Center Project, Series 2000A, 6.500%, 12/01/30 ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 9.2% 15,000 Clark County, Nevada, General Obligation Bond Bank Southern 6/11 at 100.00 AAA 15,297,000 Nevada Water Authority Loan, Series 2001, 5.250%, 6/01/26 - FGIC Insured 14,810 Clark County School District, Nevada, General Obligation Bonds, 12/11 at 100.00 AAA 16,074,478 Series 2001F, 5.500%, 6/15/18 - FSA Insured 10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,299,326 Bonds, Series 2002C, 5.500%, 6/15/18 - MBIA Insured 13 Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEVADA (continued) Director of Nevada State Department of Business and Industry, Revenue Bonds, Las Vegas Monorail Project, First Tier Series 2000: $ 6,425 0.000%, 1/01/29 - AMBAC Insured No Opt. Call AAA $ 1,590,573 12,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 12,248,520 29,410 State of Nevada, Colorado River Commission, General 7/04 at 101.00 AA 29,832,916 Obligation Limited Tax Bonds, Series 1994, 5.500%, 7/01/27 ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.6% 4,660 New Hampshire Housing Finance Authority, Single Family 7/04 at 101.00 Aa2 4,710,235 Mortgage Revenue Bonds, Series 1993B, 6.050%, 7/01/25 1,210 New Hampshire Housing Finance Agency, Single Family 7/06 at 102.00 Aa2 1,244,437 Mortgage Acquisition Revenue Bonds, Series 1996B, 6.400%, 1/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 7.5% 10,150 Delaware River Port Authority, State of New Jersey and 1/10 at 100.00 AAA 10,730,174 Pennsylvania, Port District Project Bonds, Series 1999B, 5.625%, 1/01/26 - FSA Insured 10,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 11,064,900 Obligation Guaranteed Lease Revenue Bonds, County Correctional Facility Project, Series 2000, 6.000%, 10/01/25 - FGIC Insured 13,230 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/07 at 101.50 AAA 13,663,679 Revenue Bonds, Series 1997U, 5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2003C: 5,000 5.500%, 6/15/19 6/13 at 100.00 AA- 5,423,100 5,410 5.500%, 6/15/20 6/13 at 100.00 AA- 5,855,135 9,250 5.500%, 6/15/23 6/13 at 100.00 AA- 9,917,573 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 2000A: 3,915 6.000%, 1/01/14 No Opt. Call AAA 4,546,059 7,585 6.000%, 1/01/14 - MBIA Insured No Opt. Call AAA 8,761,509 ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.9% 1,690 Mew Mexico Mortgage Finance Authority, Single Family 3/10 at 102.50 AAA 1,846,528 Mortgage Program Bonds, Series 2000D-2, 6.850%, 9/01/31 (Alternative Minimum Tax) 5,585 Santa Fe County, New Mexico, Correctional System, Gross No Opt. Call AAA 6,441,739 Receipts Tax Revenue Bonds, Series 1997, 6.000%, 2/01/27 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 13.8% 13,000 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 BBB 12,635,740 New York, Senior Tobacco Settlement Asset-Backed Bonds, Series 2000, 6.250%, 7/15/40 14,580 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 A- 14,688,767 Revenue Bonds, Series 1998A, 5.250%, 12/01/26 2,000 New York Counties Tobacco Trust I, Tobacco Settlement 6/10 at 101.00 BBB 2,008,280 Pass-Through Bonds, Series 2000, 6.500%, 6/01/35 New York, New York, General Obligation Bonds, Fiscal Series 1997G: 950 6.000%, 10/15/26 (Pre-refunded to 10/15/07) 10/07 at 101.00 Aaa 1,073,823 5,050 6.000%, 10/15/26 10/07 at 101.00 A 5,389,259 8,270 New York City, New York, General Obligation Bonds, Fiscal No Opt. Call A 8,657,946 Series 2004G, 5.000%, 8/01/14 5,000 New York City, New York, General Obligation Bonds, Fiscal 6/13 at 100.00 A 5,283,350 Series 2003J, 5.500%, 6/01/23 New York City, New York, General Obligation Bonds, Fiscal Series 1996G: 755 5.750%, 2/01/07 (Pre-refunded to 2/01/06) 2/06 at 101.50 A*** 817,016 9,245 5.750%, 2/01/07 2/06 at 101.50 A 9,872,643 12,500 New York City, New York, General Obligation Bonds, Fiscal 10/13 at 100.00 A 12,842,000 Series 2003D, 5.250%, 10/15/22 New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Fiscal Series 1996B: 5,630 5.750%, 6/15/26 (Pre-refunded to 6/15/06) - MBIA Insured 6/06 at 101.00 AAA 6,136,475 10,370 5.750%, 6/15/26 - MBIA Insured 6/06 at 101.00 AAA 11,025,903 14 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) $ 2,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/06 at 102.00 AAA $ 2,087,640 Department of Health, Series 1996, 5.500%, 7/01/25 - MBIA Insured 3,530 New York State Medical Care Facilities Finance Agency, 8/04 at 102.00 AAA 3,609,319 Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, Series 1993B, 5.500%, 2/15/22 14,000 New York State Urban Development Corporation, Service No Opt. Call AA- 15,398,460 Contract Revenue Bonds, Correctional and Youth Facilities, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11) 7,400 New York Tobacco Settlement Financing Corporation, Tobacco 6/10 at 100.00 AA- 7,856,580 Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16 9,515 Triborough Bridge and Tunnel Authority, New York, General 11/12 at 100.00 AA- 9,710,343 Purpose Revenue Refunding Bonds, Series 2002B, 5.000%, 11/15/22 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.0% Charlotte, North Carolina, Certificates of Participation, Governmental Facilities Projects, Series 2003G: 5,785 5.250%, 6/01/22 6/13 at 100.00 AA+ 6,002,690 3,475 5.250%, 6/01/23 6/13 at 100.00 AA+ 3,590,196 ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 1.2% 9,650 Dickinson, North Dakota, Health Care Facilities Revenue 2/10 at 102.00 AA 11,536,286 Bonds, BHS Long Term Care, Inc., Series 1990, 7.625%, 2/15/20 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 1.8% 4,265 Franklin County, Ohio, Hospital Revenue and Improvement 5/11 at 101.00 Aaa 4,391,457 Bonds, Children's Hospital Project, Series 2001, 5.500%, 5/01/28 - AMBAC Insured 2,720 Ohio State University, General Receipts Bonds, Series 2003B, 6/13 at 100.00 AA 2,863,398 5.250%, 6/01/20 2,000 County of Richland, Ohio, Hospital Facilities Revenue Refunding 11/10 at 101.00 A- 2,146,180 Bonds, MedCentral Health System Obligated Group, Series 2000A, 6.125%, 11/15/16 7,000 Steubenville, Ohio, Hospital Facilities Revenue Refunding and 10/10 at 100.00 A3 7,348,880 Improvement Bonds, Trinity Health System, Series 2000, 6.500%, 10/01/30 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 5.1% 15,650 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call AAA 16,812,482 Government Revenue Bonds, Series 1998A, 5.500%, 8/01/28 - AMBAC Insured 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+ 1,426,108 1,960 5.250%, 4/15/17 4/13 at 100.00 A+ 2,062,194 8,405 Philadelphia Redevelopment Authority, Pennsylvania, 4/08 at 103.00 N/R 7,469,692 Multifamily Housing Mortgage Revenue Bonds, Cricket Court Apartments, Series 1998A, 6.200%, 4/01/25 (Alternative Minimum Tax) 5,295 Philadelphia School District, Pennsylvania, General Obligation 9/05 at 101.00 AAA 5,519,402 Bonds, Series 1995B, 5.500%, 9/01/25 - AMBAC Insured 14,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 14,516,320 Revenue Bonds, Philadelphia School District Project, Series 2003, 5.250%, 6/01/24 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.6% 5,770 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 5,929,598 Series 1995X, 5.500%, 7/01/25 ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 1.3% 1,380 Providence Redevelopment Agency, Rhode Island, Revenue 4/10 at 101.00 Aaa 1,520,525 Bonds, Public Safety and Municipal Building Projects, Series 1999A, 5.625%, 4/01/15 - AMBAC Insured 10,000 Rhode Island Housing and Mortgage Finance Corporation, 10/09 at 100.00 AA+ 10,206,900 Homeownership Opportunity Bonds, Series 35A, 5.800%, 10/01/32 (Alternative Minimum Tax) 15 Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 5.0% $ 8,610 Dorchester County School District No. 2, South Carolina, 12/14 at 100.00 A $ 8,640,824 Installment Purchase Revenue Bonds, Series 2004, 5.250%, 12/01/24 Greenville County School District, South Carolina, Installment Purchase Revenue Bonds, Series 2003: 5,090 5.250%, 12/01/18 12/13 at 100.00 AA- 5,289,884 3,595 5.250%, 12/01/20 12/13 at 100.00 AA- 3,705,438 1,865 5.250%, 12/01/21 12/13 at 100.00 AA- 1,913,658 15,000 South Carolina JOBS Economic Development Authority, Hospital 8/13 at 100.00 BBB 15,548,400 Revenue Bonds, Palmetto Health Alliance, Series 2003C, 6.375%, 8/01/34 12,500 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 11,401,500 South Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.375%, 5/15/28 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 0.2% 2,045 South Dakota State University, Housing and Auxiliary Facilities 4/14 at 100.00 AAA 2,108,661 Revenue Bonds, Series 2004, 5.000%, 4/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.4% 4,000 Tennessee Housing Development Agency, Homeownership 7/13 at 100.00 AA 4,189,080 Program Revenue Bonds, Series 2004, 5.000%, 7/01/34 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 16.5% 10,205 Alliance Airport Authority, Inc., Texas, Special Facilities 6/04 at 100.00 CCC 7,391,992 Revenue Bonds, American Airlines, Inc. Project, Series 1990, 7.500%, 12/01/29 (Alternative Minimum Tax) 3,289 Austin Housing Finance Corporation, Texas, Multifamily 12/10 at 105.00 Aaa 3,672,793 Housing Revenue Bonds, GNMA Collateralized Mortgage Loan, Fairway Village Project, Series 2000A, 7.375%, 6/20/35 (Alternative Minimum Tax) 3,000 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 10/13 at 101.00 BBB 3,177,270 TXU Energy Company LLC, Series 2003C, 6.750%, 10/01/38 (Alternative Minimum Tax) Clear Creek Independent School District, Galveston and Harris Counties, Texas, Unlimited Tax Schoolhouse and Refunding Bonds, Series 2000: 4,850 6.000%, 2/15/16 (Pre-refunded to 2/15/10) 2/10 at 100.00 AAA 5,558,343 175 6.000%, 2/15/16 2/10 at 100.00 AAA 196,907 865 Harlingen Housing Finance Corporation, Texas, GNMA/FNMA 9/10 at 105.00 AAA 929,598 Single Family Mortgage Revenue Bonds, Series 2000A, 6.700%, 9/01/33 (Alternative Minimum Tax) 20,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 20,169,200 Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 - MBIA Insured 15,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102.00 AAA 15,478,200 Bonds, Series 1994, 5.300%, 8/15/13 (Pre-refunded to 8/15/04) - AMBAC Insured Harris County Hospital District, Texas, Revenue Refunding Bonds, Series 1990: 3,460 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 3,857,104 5,940 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 6,823,456 19,125 Harris County, Texas, Hospital District, Refunding Revenue 8/10 at 100.00 AAA 21,300,278 Bonds, Series 2000, 6.000%, 2/15/15 - MBIA Insured 1,343 Heart of Texas Housing Finance Corporation, GNMA Collateralized 9/10 at 105.00 Aaa 1,444,679 Mortgage Loan Multifamily Housing Revenue Bonds, Parkside Village Project, Series 2000A, 7.400%, 9/20/35 (Alternative Minimum Tax) 6,000 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,522,120 Series 2001B, 5.500%, 3/01/15 - FSA Insured 9,250 Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 9,586,053 Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured 3,400 Lower Colorado River Authority, Texas, Improvement and 5/13 at 100.00 AAA 3,499,756 Revenue Refunding Bonds, Series 2003, 5.250%, 5/15/24 - AMBAC Insured 1,505 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 1,556,968 Refunding Bonds, Transmission Services Corporation, Series 2003C, 5.250%, 5/15/23 - AMBAC Insured 4,000 Tarrant County Health Facilities Development Corporation, 11/10 at 101.00 A 4,330,080 Texas, Hospital Revenue Bonds, Adventist Health System/Sunbelt Obligated Group, Series 2000, 6.700%, 11/15/30 16 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 12,020 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa $ 13,994,165 Mortgage Revenue Bonds, GNMA Collateralized Mortgage Loan - 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 5,000 Tarrant Regional Water District, Texas, Water Revenue 3/13 at 100.00 AAA 5,328,800 Refunding and Improvement Bonds, Series 1999, 5.250%, 3/01/17 - FSA Insured 10,000 Board of Regents of the Texas A&M University, Financing 5/09 at 100.00 AAA 10,432,500 System Revenue Bonds, Series 1999, 5.550%, 5/15/29 - MBIA Insured 25,000 Texas Turnpike Authority, Frist Tier Revenue Bonds, Central No Opt. Call AAA 8,271,000 Texas Turnpike System, Series 2002A, 0.000%, 8/15/24 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.3% 2,775 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 2,839,408 Series 1997F, 5.750%, 7/01/28 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.4% 3,620 Vermont Housing Finance Agency, Single Family Housing 6/07 at 101.50 AAA 3,723,315 Bonds, Series 1997-9, 5.900%, 5/01/29 (Alternative Minimum Tax) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 0.5% 4,900 City of Virginia Beach Development Authority, Virginia, 10/14 at 100.00 N/R 4,569,054 Multifamily Residential Rental Housing Revenue Bonds, Mayfair I & Mayfair II Apartments Project, Series 1999, 7.500%, 10/01/39 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 7.3% Public Utility District No. 1 of Chelan County, Washington, Chelan Hydro Consolidated System Revenue Bonds, Series 1997A: 11,820 5.650%, 7/01/32 (Alternative Minimum Tax) (Optional 7/07 at 102.00 AA 12,018,931 put 7/01/09) (Mandatory put 7/01/24) 8,000 5.650%, 7/01/32 (Alternative Minimum Tax) (Optional 7/07 at 102.00 AA 8,106,480 put 7/01/09) (Mandatory put 7/01/27) 5,000 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 5,114,300 Bonds, Series 2001, 5.250%, 12/01/26 - MBIA Insured 4,750 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,825,050 Bonds, Swedish Health Services, Series 1998, 5.125%, 11/15/22 - AMBAC Insured 14,500 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 Aaa 15,203,395 Bonds, Nuclear Project 2, Series 1998A, 5.000%, 7/01/12 Washington Public Power Supply System, Nuclear Project 3 Revenue Refunding Bonds, Series 1997A: 5,220 5.250%, 7/01/14 - FSA Insured 7/07 at 102.00 AAA 5,579,188 9,350 5.250%, 7/01/15 7/07 at 102.00 Aaa 9,777,108 7,775 Washington Public Power Supply System, Nuclear Project 3 7/08 at 102.00 Aaa 8,036,707 Revenue Refunding Bonds, Series 1998A, 5.125%, 7/01/18 ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 2.5% Milwaukee Redevelopment Authority, Wisconsin, Lease Revenue Bonds, Public Schools, Series 2003A: 1,000 5.125%, 8/01/22 - AMBAC Insured 8/13 at 100.00 AAA 1,026,760 1,345 5.125%, 8/01/23 8/13 at 100.00 AAA 1,374,926 1,000 Wisconsin Health and Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,051,250 Bonds, Agnesian Healthcare, Inc., Series 2001, 6.000%, 7/01/21 2,175 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 100.00 BBB 2,229,501 Bonds, Carroll College, Inc., Series 2001, 6.125%, 10/01/16 2,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 2,012,260 Bonds, Wheaton Franciscan Services, Inc., Series 2003A, 5.250%, 8/15/25 9,000 Wisconsin Health and Educational Facilities Authority, Revenue 4/13 at 100.00 BBB+ 9,454,320 Bonds, Aurora Healthcare, Inc., Series 2003, 6.400%, 4/15/33 17 Nuveen Premium Income Municipal Fund, Inc. (NPI) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN (continued) $ 6,025 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 A- $ 6,253,282 Bonds, Franciscan Sisters of Christian Charity HealthCare Ministry, Series 2003A, 6.000%, 9/01/22 ------------------------------------------------------------------------------------------------------------------------------------ $ 1,469,607 Total Long-Term Investments (cost $1,384,905,384) - 152.8% 1,429,061,079 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.3% 31,453,793 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (56.1)% (525,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 935,514,872 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (DD) Security purchased on a delayed delivery basis. (WI) Security purchased on a when-issued basis. # On December 9, 2002, UALCorporation, the holding company of United Air Lines, Inc. filed for federal bankruptcy protection. The Adviser determined that it was likely United would not remain current on their interest payment obligations with respect to these bonds and thus has stopped accruing interest. See accompanying notes to financial statements. 18 Nuveen Premium Income Municipal Fund 2, Inc. (NPM) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 1.4% $ 8,255 University of South Alabama, Tuition Revenue Bonds, 3/14 at 100.00 Aaa $ 8,334,661 Series 2004, 5.000%, 3/15/24 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.0% 2,850 The Industrial Development Authority of the County of 1/07 at 102.00 AAA 3,268,836 Maricopa, Arizona, Multifamily Housing Revenue Bonds, Place Five and the Greenery Apartments Projects, Series 1996A, 6.625%, 1/01/27 2,945 Pima County Industrial Development Authority, Arizona, 7/04 at 102.00 AAA 3,096,962 Lease Obligation Revenue Refunding Bonds, Tucson Electric Power Company Irvington Project, Series 1988A, 7.250%, 7/15/10 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 14.9% California Educational Facilities Authority, Revenue Refunding Bonds, Loyola Marymount University, Series 2001A: 3,255 0.000%, 10/01/23 - MBIA Insured No Opt. Call Aaa 1,153,279 5,890 0.000%, 10/01/24 - MBIA Insured No Opt. Call Aaa 1,958,778 7,615 0.000%, 10/01/25 - MBIA Insured No Opt. Call Aaa 2,359,812 7,710 California State, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AAA 8,012,926 Series 1997BH, 5.250%, 12/01/12 (Alternative Minimum Tax) - FSA Insured California, General Obligation Bonds, Series 2004: 5,000 5.000%, 4/01/10 No Opt. Call Baa1 5,328,900 8,000 5.125%, 2/01/25 2/14 at 100.00 Baa1 7,829,280 5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 5,916,405 Revenue Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A: 4,000 6.000%, 5/01/15 5/12 at 101.00 A3 4,424,680 5,500 5.375%, 5/01/21 5/12 at 101.00 A3 5,672,205 7,150 California State Public Works Board, Lease Revenue Bonds, 10/04 at 102.00 A3*** 7,447,440 California State University System Projects, Series 1994A, 6.375%, 10/01/19 (Pre-refunded to 10/01/04) 17,500 California State Public Works Board, Lease Revenue Bonds, 11/04 at 102.00 Aaa 18,347,700 Department of Corrections, Soledad II State Prison, Series 1994A, 6.875%, 11/01/14 (Pre-refunded to 11/01/04) 30,000 Foothill-Eastern Transportation Corridor Agency, California, No Opt. Call AAA 12,968,400 Toll Road Revenue Bonds, Series 1995A, 0.000%, 1/01/21 San Francisco Redevelopment Agency, California, Hotel Tax Revenue Bonds, Series 1994: 2,390 6.750%, 7/01/15 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA 2,460,290 5,905 6.750%, 7/01/25 (Pre-refunded to 7/01/04) - FSA Insured 7/04 at 102.00 AAA 6,078,666 960 6.750%, 7/01/25 - FSA Insured 7/04 at 102.00 AAA 986,794 ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 0.8% 1,700 Centennial Water and Sanitation District, Colorado, Water and 12/14 at 100.00 AAA 1,742,789 Sewer Revenue Bonds, Series 2004, 5.000%, 12/01/22 (DD, settling 5/03/04) - FGIC Insured 875 Colorado Housing and Finance Authority, Single Family Program 12/05 at 105.00 Aa2 886,743 Senior Bonds, Series 1995D, 7.375%, 6/01/26 (Alternative Minimum Tax) 400 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 476,712 Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) 1,700 City and County of Denver, Colorado, Multifamily Housing 10/07 at 102.00 AAA 1,737,145 Revenue Bonds, FHA-Insured Mortgage Loan - The Boston Lofts Project, Series 1997A, 5.750%, 10/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 2.5% 3,170 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 3,323,111 Finance Program Bonds, Series 1996C-2, 6.250%, 11/15/18 Connecticut, Special Tax Obligation Transportation Infrastructure Purpose Bonds, Series 2003B: 8,310 5.000%, 1/01/21 - FGIC Insured 1/14 at 100.00 AAA 8,622,456 3,000 5.000%, 1/01/24 - FGIC Insured 1/14 at 100.00 AAA 3,056,250 19 Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 1.7% District of Columbia, University Revenue Bonds, Georgetown University Issue, Series 2001A: $ 11,720 0.000%, 4/01/27 - MBIA Insured 4/11 at 39.61 AAA $ 3,060,209 13,780 0.000%, 4/01/28 - MBIA Insured 4/11 at 37.21 AAA 3,375,824 15,855 0.000%, 4/01/29 - MBIA Insured 4/11 at 35.07 AAA 3,651,565 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 1.7% 1,700 Miami-Dade County, Florida, Beacon Tradeport Community 5/12 at 102.00 AA 1,775,752 Development District, Special Assessment Bonds, Commercial Project, Series 2002A, 5.625%, 5/01/32 - RAAI Insured 5,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 10/06 at 102.00 AAA 5,362,950 5.750%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured 2,500 Escambia County Health Facilities Authority, Florida, Health 10/08 at 101.00 A3 2,468,425 Facility Revenue Bonds, Baptist Hospital and Baptist Manor Refunding, Series 1998, 5.125%, 10/01/19 1,015 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 100.00 AAA 1,055,935 Revenue Bonds, Series 2000-11, 5.850%, 1/01/22 (Alternative Minimum Tax) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 0.6% 280 Fulton County Housing Authority, Georgia, GNMA 9/06 at 102.00 AAA 289,710 Mortgage-Backed Securities Program Single Family Mortgage Revenue Refunding Bonds, Series 1996A, 6.200%, 9/01/27 (Alternative Minimum Tax) 3,365 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 3,495,259 Revenue Bonds, Series 2003A, 5.000%, 11/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ IDAHO - 1.8% 800 Idaho Housing Agency, Senior Lien Single Family Mortgage 7/05 at 102.00 Aaa 825,408 Bonds, Series 1995F, 6.450%, 7/01/27 (Alternative Minimum Tax) 3,220 Idaho Housing Finance Agency, FHA-Insured Housing Revenue 6/05 at 102.00 Aa2 3,298,343 Bonds, Park Place Project, Series 1995A, 6.500%, 12/01/36 (Alternative Minimum Tax) 3,160 Idaho Housing and Finance Association, GNMA Housing 3/12 at 105.00 Aaa 3,633,494 Revenue Refunding Bonds, Wedgewood Terrace Project, Series 2002A-1, 7.250%, 3/20/37 850 Idaho Housing and Finance Association, Single Family 7/06 at 102.00 Aaa 895,025 Mortgage Bonds, Series 1996G, 6.350%, 7/01/26 (Alternative Minimum Tax) 1,320 Idaho Housing and Finance Association, Single Family 1/10 at 100.00 Aa2 1,387,848 Mortgage Bonds, Series 2000B, 6.250%, 7/01/22 (Alternative Minimum Tax) 1,235 Idaho Housing and Finance Association, Single Family 7/10 at 100.00 Aaa 1,261,429 Mortgage Bonds, Series 2000E, 5.950%, 7/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 18.4% 16,200 Chicago, Illinois, General Obligation Bonds, Series 1995A-1, 1/06 at 102.00 AAA 16,292,988 5.125%, 1/01/25 - AMBAC Insured 1,000 Chicago, Illinois, General Obligation Project and Refunding 7/08 at 102.00 AAA 1,052,430 Bonds, Series 1998, 5.250%, 1/01/20 - FGIC Insured 22,670 Chicago, Illinois, General Obligation Bonds, City Colleges of No Opt. Call AAA 7,297,246 Chicago Capital Improvement Project, Series 1999, 0.000%, 1/01/25 - FGIC Insured 5,000 Chicago School Reform Board of Trustees of the Chicago Board No Opt. Call AAA 2,120,200 of Education, Illinois, Unlimited Tax General Obligation Bonds, Dedicated Tax Revenues, Series 1999A, 0.000%, 12/01/20 - FGIC Insured 1,175 Chicago, Illinois, GNMA Collateralized Multifamily Housing 6/09 at 102.00 Aaa 1,208,570 Revenue Bonds, Bryn Mawr/Belle Shores Project, Series 1997, 5.800%, 6/01/23 (Alternative Minimum Tax) 1,650 Chicago, Illinois, GNMA/FHA Multifamily Housing Revenue 9/13 at 101.00 AAA 1,625,547 Bonds, Indiana Manor Townhomes Project, Series 2002A, 5.100%, 3/20/44 3,705 Chicago, Illinois, Tax Increment Allocation Bonds, Read-Dunning 1/07 at 102.00 N/R 3,820,151 Redevelopment Project, Series 1996B, 7.250%, 1/01/14 3,530 Chicago, Illinois, Tax Increment Allocation Bonds, Sanitary 1/07 at 102.00 N/R 3,688,073 Drainage and Ship Canal Redevelopment Project, Series 1997A, 7.750%, 1/01/14 4,865 Cook County Community Consolidated School District 15, No Opt. Call Aaa 2,071,322 Palatine, Illinois, General Obligation Bonds, Series 2001, 0.000%, 12/01/20 - FGIC Insured 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS (continued) $ 6,190 Community High School District No. 219, Niles Township, No Opt. Call Aaa $ 2,637,559 Cook County, Illinois, General Obligation Capital Appreciation Bonds, Series 2001, 0.000%, 12/01/20 - MBIA Insured 2,665 DuPage County Forest Preserve District, Illinois, General No Opt. Call AAA 2,907,835 Obligation Bonds, Series 2003, 5.250%, 10/01/15 2,850 City of East Saint Louis, Illinois, Mortgage Revenue Refunding 7/04 at 101.00 AAA 2,891,097 Bonds, FHA-Insured Mortgage Loan-Dawson Manor Apartments Section 8 Assisted, Series 1994A, 6.500%, 7/01/24 - MBIA Insured Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2004: 2,000 5.250%, 11/15/14 (WI, settling 5/12/04) 5/14 at 100.00 A 2,091,440 4,420 5.250%, 11/15/15 (WI, settling 5/12/04) 5/14 at 100.00 A 4,589,419 3,000 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call A+ 3,283,890 Lutheran General Health System, Series 1993C, 6.000%, 4/01/18 3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 3,165,180 Forest Hospital, Series 2003, 6.000%, 7/01/33 Illinois Housing Development Authority, Housing Finance Bonds, Series 2000A: 920 5.750%, 9/01/10 (Alternative Minimum Tax) 3/10 at 100.00 AA 966,442 1,245 6.200%, 9/01/20 (Alternative Minimum Tax) 3/10 at 100.00 AA 1,276,909 11,000 Illinois, General Obligation Bonds, Illinois FIRST Program, No Opt. Call AAA 12,646,810 Series 2001, 6.000%, 11/01/26 - FGIC Insured Illinois, General Obligation Bonds, Illinois FIRST Program, Series 2002: 9,000 5.250%, 8/01/12 - MBIA Insured No Opt. Call AAA 9,863,730 2,000 5.500%, 2/01/18 - FGIC Insured 2/12 at 100.00 AAA 2,163,240 4,020 Community Unit School District No. 220 of the Counties No Opt. Call AAA 4,337,741 of Lake, Cook, Kane, and McHenry, Illinois, General Obligation Bonds, Series 2002, 5.250%, 12/01/20 - FSA Insured Community Unit School District No. 60, Waukegan, Lake County, Illinois, General Obligation Refunding Bonds, Series 2001B: 3,230 0.000%, 11/01/19 - FSA Insured No Opt. Call Aaa 1,467,098 1,740 0.000%, 11/01/21 - FSA Insured No Opt. Call Aaa 696,505 17,945 McHenry and Kane Counties Community Consolidated School No Opt. Call Aaa 7,023,494 District No. 158, Illinois, General Obligation Bonds, Series 2003, 0.000%, 1/01/22 - FGIC Insured 4,505 McHenry County Community Consolidated School District 2/09 at 100.00 Aaa 4,940,048 No. 047, Crystal Lake, Illinois, General Obligation Refunding Bonds, Series 1999, 5.750%, 2/01/19 - FSA Insured 2,910 Community High School District Number 154, McHenry No Opt. Call Aaa 1,214,168 County, Illinois, Capital Appreciation School Bonds, Series 2001, 0.000%, 1/01/21 - FGIC Insured 4,540 Metropolitan Pier and Exposition Authority, Illinois, 6/12 at 101.00 AAA 4,524,428 McCormick Place Expansion Project Bonds, Series 2002A, 5.000%, 12/15/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 3.3% 1,000 Ball State University Board of Trustees, Indiana, Ball State 1/12 at 100.00 AAA 1,103,770 University Student Fee Revenue Bonds, Series 2002K, 5.750%, 7/01/20 - FGIC Insured 6,031 Greenfield, Indiana, GNMA Multifamily Housing Revenue 12/05 at 105.00 Aaa 6,200,290 Bonds, Pedcor Investments Project, Series 1996A, 6.200%, 12/01/28 (Alternative Minimum Tax) 2,875 Indiana Bond Bank, State Revolving Fund Program Bonds, 2/05 at 102.00 AAA 3,049,800 Guarantee Revenue Bonds, Series 1995A, 6.750%, 2/01/17 (Pre-refunded to 2/01/05) 3,500 Indiana Bond Bank, Special Program Bonds, City of East 2/10 at 101.00 AAA 3,902,045 Chicago Facilities Building Corporation Project, Series 2000A, 6.125%, 2/01/25 - AMBAC Insured 5,000 Indiana Transportation Finance Authority, Highway Revenue 12/10 at 100.00 Aa2 5,137,750 Bonds, Series 2000, 5.375%, 12/01/25 1,000 Shelbyville Elementary School Building Corporation, Shelby 7/11 at 100.00 AAA 1,035,290 County, Indiana, First Mortgage Bonds, Series 2001, 5.000%, 7/05/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 3.6% 10,000 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA 10,046,500 Iowa Health System, Series 1998A, 5.125%, 1/01/28 - MBIA Insured Iowa Tobacco Settlement Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Series 2001B: 7,000 5.300%, 6/01/25 6/11 at 101.00 BBB 5,877,060 7,300 5.600%, 6/01/35 6/11 at 101.00 BBB 5,830,875 21 Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 0.2% $ 660 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103.00 Aa2 $ 671,900 Refunding Bonds, Series 1994, 7.100%, 5/01/12 315 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized No Opt. Call Aaa 317,271 Single Family Mortgage Revenue Refunding Bonds, Series 1994A-1, 7.900%, 5/01/24 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 4.0% 1,145 Bossier Public Trust Financing Authority, Louisiana, Single 8/05 at 102.00 AAA 1,127,115 Family Mortgage Revenue Refunding Bonds, Series 1995B, 6.125%, 8/01/28 5,045 East Baton Rouge Parish Mortgage Finance Authority, 10/05 at 102.00 Aaa 5,056,099 Louisiana, GNMA/FNMA Mortgage-Backed Securities Program, Single Family Mortgage Revenue Bonds, Series 1994C, 6.350%, 10/01/28 (Alternative Minimum Tax) 7,070 Ernest N. Morial-New Orleans Exhibition Hall Authority, 7/14 at 101.00 AAA 7,102,663 Louisiana, Special Tax Revenue Bonds, Senior Subordinate Series 2004, 5.000%, 7/15/24 - AMBAC Insured 3,230 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,385,589 Special Sales Tax Revenue Refunding Bonds, Series 2002, 5.250%, 12/01/21 - AMBAC Insured 3,670 New Orleans Home Mortgage Authority, Louisiana, 6/05 at 102.00 Aaa 3,756,869 GNMA/FNMA Single Family Mortgage Revenue Bonds, Series 1995A, 6.300%, 6/01/28 (Alternative Minimum Tax) 3,665 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 3,991,991 Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 0.2% 1,390 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 1,430,185 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.250%, 7/01/19 ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 5.6% Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2002E: 11,400 5.250%, 1/01/21 (Pre-refunded to 1/01/13) - FSA Insured 1/13 at 100.00 AAA 12,473,994 1,850 5.250%, 1/01/21 (Pre-refunded to 1/01/13) - FSA Insured 1/13 at 100.00 AAA 2,024,289 3,130 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 3,311,634 Resource Recovery Revenue Bonds, Eco/Springfield LLC Project, Series 2000A, 8.375%, 7/01/14 (Alternative Minimum Tax) 2,750 Massachusetts Health and Educational Facilities Authority, 5/12 at 100.00 AAA 2,744,610 Revenue Bonds, New England Medical Center Hospitals, Series 2002H, 5.000%, 5/15/25 - FGIC Insured 9,175 Massachusetts Health and Educational Facilities Authority, 10/11 at 101.00 AA 9,654,944 Revenue Bonds, Berkshire Health System, Series 2001E, 5.700%, 10/01/25 - RAAI Insured 3,605 Massachusetts Water Resources Authority, General Revenue 12/04 at 102.00 AAA 3,726,741 Bonds, Series 1993C, 5.250%, 12/01/20 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 2.7% Grand Rapids and Kent County Joint Building Authority, Michigan, Limited Tax General Obligation Bonds, Devos Place Project, Series 2001: 7,660 0.000%, 12/01/21 No Opt. Call AAA 3,121,680 7,955 0.000%, 12/01/22 No Opt. Call AAA 3,036,264 8,260 0.000%, 12/01/23 No Opt. Call AAA 2,939,073 8,575 0.000%, 12/01/24 No Opt. Call AAA 2,848,872 8,900 0.000%, 12/01/25 No Opt. Call AAA 2,768,256 2,000 Michigan State Hospital Finance Authority, Revenue Refunding 8/04 at 101.00 Ba3 1,823,920 Bonds, Detroit Medical Center Obligated Group, Series 1993A, 6.375%, 8/15/09 ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 4.3% 6,995 Champlin, Minnesota, GNMA Guaranteed Senior Housing 6/12 at 105.00 Aaa 7,052,779 Revenue Bonds, Champlin Shores Senior Living Center, Series 2002A, 3.000%, 12/20/43 Minneapolis/St. Paul Housing and Redevelopment Authority, Minnesota, Revenue Bonds, HealthPartners, Inc. Project, Series 2003: 1,000 6.000%, 12/01/18 12/13 at 100.00 BBB+ 1,055,490 1,050 5.875%, 12/01/29 12/13 at 100.00 BBB+ 1,062,212 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA (continued) $ 3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA $ 3,057,900 Minnesota, Subordinate Airport Revenue Bonds, Series 2001C, 5.250%, 1/01/26 - FGIC Insured 2,400 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 2,451,384 Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25 - FGIC Insured 1,630 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 1,667,017 Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative Minimum Tax) 2,310 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 2,372,278 Series 1995D, 5.950%, 2/01/18 - MBIA Insured 1,485 Minnesota Housing Finance Agency, Single Family Mortgage 1/06 at 102.00 AA+ 1,530,352 Bonds, Series 1996G, 6.250%, 7/01/26 (Alternative Minimum Tax) 2,045 Minnesota Housing Finance Agency, Single Family Remarketed 1/11 at 101.00 AA+ 2,167,536 Mortgage Bonds, Series 1998H-2, 6.050%, 7/01/31 (Alternative Minimum Tax) 1,620 Saint Louis Park, Minnesota, Revenue Bonds, Park Nicollet 7/14 at 100.00 A- 1,663,675 Health Services, Series 2003B, 5.500%, 7/01/25 2,000 Southern Minnesota Municipal Power Agency, Power Supply 7/04 at 101.00 Aaa 2,048,000 System Revenue Bonds, Series 1992B, 5.750%, 1/01/11 ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 6.4% 9,000 Kansas City, Missouri, General Improvement Airport Revenue 9/12 at 100.00 AAA 9,576,900 Bonds, Series 2003B, 5.250%, 9/01/17 - FGIC Insured 6,445 Missouri, Water Pollution Control Revenue Refunding Bonds, 10/12 at 100.00 AAA 6,732,834 Series 2002B, 5.000%, 10/01/18 4,095 Missouri, General Obligation Refunding Bonds, Fourth State 10/12 at 100.00 AAA 4,277,883 Building, Series 2002A, 5.000%, 10/01/18 Missouri Health and Educational Facilities Authority, Revenue Bonds, SSM Healthcare System, Series 2001A: 2,500 5.250%, 6/01/21 - AMBAC Insured 6/11 at 101.00 AAA 2,592,350 2,000 5.250%, 6/01/28 - AMBAC Insured 6/11 at 101.00 AAA 2,031,640 2,500 Missouri Health and Educational Facilities Authority, Revenue 5/13 at 100.00 AA 2,525,175 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+ 1,209,096 Bonds, Lake Regional Health System, Series 2003, 5.125%, 2/15/18 5,500 St. Louis County Industrial Development Authority, Missouri, 6/04 at 101.00 N/R 5,516,995 Revenue Bonds, Kiel Center Multipurpose Arena, Series 1992, 7.625%, 12/01/09 (Alternative Minimum Tax) St. Louis, Missouri, Airport Revenue Bonds, Airport Development Program, Series 2001A: 2,200 5.125%, 7/01/22 - MBIA Insured 7/11 at 100.00 AAA 2,245,056 2,500 5.000%, 7/01/26 - MBIA Insured 7/11 at 100.00 AAA 2,491,525 ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 0.3% 1,470 Municipal Energy Agency of Nebraska, Power Supply System 4/13 at 100.00 AAA 1,527,756 Revenue Bonds, Series 2003A, 5.250%, 4/01/23 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.8% 5,795 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 5,860,484 Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured 4,000 Clark County, Nevada, Industrial Development Revenue Bonds, 6/04 at 100.00 AAA 4,100,000 Nevada Power Company Project, Series 1992A, 6.700%, 6/01/22 (Alternative Minimum Tax) - FGIC Insured 10,410 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,299,326 Bonds, Series 2002C, 5.500%, 6/15/18 - MBIA Insured 7,315 Washoe County School District, Nevada, General Obligation No Opt. Call AAA 8,190,093 Refunding Bonds, Series 2002B, 5.500%, 6/01/17 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 3.6% 5,615 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 5,888,619 Revenue Bonds, Series 2003, 5.125%, 12/15/20 - FSA Insured 4,310 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 4,379,520 Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 (Alternative Minimum Tax) - AMBAC Insured 23 Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY (continued) $ 3,400 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AA- $ 3,653,266 System Bonds, Series 2003C, 5.500%, 6/15/22 3,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A 3,450,630 Series 1991C, 6.500%, 1/01/09 1,000 Toms River Board of Education, New Jersey, General Obligation 7/07 at 100.00 AAA 1,106,270 Bonds, Series 1997, 5.750%, 7/15/21 (Pre-refunded to 7/15/07) - FGIC Insured 3,620 The Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,664,598 Facility Subordinated Lease Revenue Bonds, Ogden Martin Systems of Union, Inc. Lessee, Series 1998A, 5.350%, 6/01/23 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ NEW MEXICO - 0.3% 1,820 New Mexico Mortgage Finance Authority, Single Family 7/05 at 102.00 AAA 1,877,385 Mortgage Program Bonds, Series 1995E-2, 6.300%, 7/01/17 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 19.4% 2,375 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 2,436,251 General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured 11,130 New York City, New York, General Obligation Bonds, 3/06 at 101.50 A 11,857,123 Fiscal Series 1996I, 5.875%, 3/15/18 New York City, New York, General Obligation Bonds, Fiscal Series 1997I: 8,620 6.250%, 4/15/27 (Pre-refunded to 4/15/07) 4/07 at 101.00 Aaa 9,687,587 3,400 6.250%, 4/15/27 4/07 at 101.00 A 3,716,948 New York City, New York, General Obligation Bonds, Fiscal Series 1996J-1: 1,415 5.875%, 2/15/19 (Pre-refunded to 2/15/06) 2/06 at 101.50 A*** 1,536,322 7,585 5.875%, 5/15/19 2/06 at 101.50 A 8,064,979 3,820 5.500%, 2/15/26 2/06 at 101.50 A 3,843,646 New York City, New York, General Obligation Bonds, Fiscal Series 1996F: 6,145 7.000%, 2/01/06 No Opt. Call A*** 6,692,335 7,220 7.000%, 2/01/06 No Opt. Call A 7,816,011 1,370 New York City Municipal Water Finance Authority, New York, 6/07 at 101.00 AAA 1,425,636 Water and Sewer System Revenue Bonds, Fiscal Series 1997B, 5.500%, 6/15/27 - MBIA Insured 3,150 New York City Municipal Water Finance Authority, New York, 6/05 at 101.00 AAA 3,338,528 Water and Sewer System Revenue Bonds, Fiscal Series 1996A, 5.875%, 6/15/25 (Pre-refunded to 6/15/05) - MBIA Insured 4,000 New York City Trust for Cultural Resources, New York, Revenue 4/07 at 101.00 AAA 4,235,960 Bonds, American Museum of Natural History, Series 1997A, 5.650%, 4/01/27 - MBIA Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2004B: 6,875 5.000%, 8/01/23 8/13 at 100.00 AA+ 6,983,969 7,260 5.000%, 8/01/24 8/13 at 100.00 AA+ 7,331,801 2,500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AA+ 2,555,000 Future Tax Secured Bonds, Fiscal 2004 Series C, 5.000%, 2/01/22 Dormitory Authority of the State of New York, Revenue Bonds, Marymount Manhattan College, Series 1999: 1,975 6.375%, 7/01/16 - RAAI Insured 7/09 at 101.00 AA 2,175,482 2,080 6.375%, 7/01/17 - RAAI Insured 7/09 at 101.00 AA 2,291,141 7,635 New York State Medical Care Facilities Finance Agency, 5/05 at 102.00 AA-*** 8,128,221 Revenue Bonds, Mercy Medical Center - Rockville, Series 1995A, 5.875%, 11/01/15 (Pre-refunded to 5/01/05) 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+ 6,194,460 5,100 5.250%, 6/01/21 6/13 at 100.00 A+ 5,250,144 6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 7,015,375 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 6.250%, 12/01/15 (Alternative Minimum Tax) - MBIA Insured New York 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- 3,609,780 2,000 5.500%, 6/01/19 6/13 at 100.00 AA- 2,140,800 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 1.6% $ 2,550 Cumberland County, North Carolina, Hospital Facility Revenue 10/09 at 101.00 A- $ 2,608,829 Bonds, Cumberland County Hospital System, Inc., Cape Fear Valley Health System, Series 1999, 5.250%, 10/01/19 2,480 Durham Urban Redevelopment Authority, North Carolina, 8/07 at 105.00 AAA 2,626,394 FHA Insured Mortgage Loan Revenue Bonds, Durham Hosiery Mill Project, Series 1987, 7.500%, 8/01/29 (Alternative Minimum Tax) 975 North Carolina Housing Finance Agency, Single Family 3/06 at 102.00 AA 1,006,346 Revenue Bonds, Series 1996JJ, 6.450%, 9/01/27 (Alternative Minimum Tax) North Carolina Infrastructure Finance Corporation, Certificates of Participation, Correctional Facilities, Series 2004A: 1,250 5.000%, 2/01/21 2/14 at 100.00 AA+ 1,281,438 2,445 5.000%, 2/01/22 2/14 at 100.00 AA+ 2,489,230 ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.6% 3,100 North Dakota Housing Finance Agency, Home Mortgage Finance 7/10 at 100.00 Aa3 3,236,369 Program Bonds, Series 2000C, 6.150%, 7/01/31 (Alternative Minimum Tax) 345 North Dakota Housing Finance Agency, Home Mortgage Finance 1/07 at 102.00 Aa2 358,693 Program Bonds, Series 1996B, 6.400%, 1/01/28 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 5.0% Franklin County, Ohio, Hospital Revenue Bonds, OhioHealth Corporation, Series 2003C: 2,330 5.250%, 5/15/17 - MBIA Insured 5/13 at 100.00 AAA 2,457,707 4,105 5.250%, 5/15/18 - MBIA Insured 5/13 at 100.00 AAA 4,308,198 2,000 Ohio Housing Finance Agency, Multifamily Housing Mortgage 1/08 at 102.00 Aa2 2,024,820 Revenue Bonds, FHA-Insured Mortgage Loan- Courtyards of Kettering Project, Series 1998B-1, 5.550%, 1/01/40 (Alternative Minimum Tax) 3,595 Ohio Municipal Electric Generation Agency, Beneficial Interest 2/14 at 100.00 AAA 3,697,098 Certificates, Joint Venture 5, Belleville Hydroelectric Project, American Municipal Power Ohio, Inc., Series 2004, 5.000%, 2/15/20 - AMBAC Insured 5,000 Ohio Water Development Authority, Collateralized Water 8/04 at 100.00 BBB- 5,022,300 Revenue Refunding Bonds, Dayton Power and Light Company, Series 1992A, 6.400%, 8/15/27 6,650 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 6,183,636 Revenue Bonds, Bay Shore Power, Series 1998A, 5.875%, 9/01/20 (Alternative Minimum Tax) 6,800 Ohio Water Development Authority, Solid Waste Disposal 9/09 at 102.00 N/R 6,830,532 Revenue Bonds, Bay Shore Power, Series 1998B, 6.625%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 0.8% 5,000 Oklahoma Student Loan Authority, Student Loan Revenue Bonds, 6/11 at 102.00 AAA 5,097,650 Senior Lien Series 2001A-1, 5.625%, 6/01/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ OREGON - 1.5% 705 Oregon, General Obligation Elderly and Disabled Housing Bonds, 8/04 at 100.00 AA- 713,108 Series 1992B, 6.375%, 8/01/24 1,785 Oregon, General Obligation Veterans Welfare Bonds, Series 75, 10/05 at 102.00 Aa3 1,835,016 6.000%, 4/01/27 4,600 Oregon Department of Administrative Services, State Lottery No Opt. Call AAA 4,987,182 Revenue Bonds, Series 2004A, 5.000%, 4/01/14 - FSA Insured 220 State of Oregon, Housing and Community Services Department, 1/10 at 100.00 Aa2 221,580 Mortgage Revenue Bonds, Single Family Mortgage Program, Series 2000F, 6.250%, 7/01/28 (Alternative Minimum Tax) 1,380 Portland, Oregon, Limited Tax Improvement Bonds, Series 1996A, 6/06 at 100.00 Aa2 1,464,649 5.550%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.6% 2,400 Beaver County Industrial Development Authority, Pennsylvania, 7/05 at 102.00 A 2,592,960 Collateralized Pollution Control Revenue Refunding Bonds, The Cleveland Electric Illuminating Company, Beaver Valley Project, Series 1995A, 7.750%, 7/15/25 - ACA Insured 1,050 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call AAA 1,149,792 Government Revenue Bonds, Series 1997B, 5.700%, 7/01/27 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 0.2% 1,375 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100.00 A- 1,413,033 Series 1995X, 5.500%, 7/01/25 25 Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 0.2% $ 1,055 Rhode Island Health and Educational Building Corporation, 3/12 at 101.00 AA $ 1,057,796 Revenue Refunding Bonds, Salve Regina University, Series 2002, 5.000%, 3/15/19 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 11.3% 14,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 13,990,620 Purchase Revenue 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- 16,973,128 Purchase Revenue Bonds, Series 2002, 5.875%, 12/01/17 2,500 Greenville, South Carolina, Hospital Facilities Revenue Refunding 5/13 at 100.00 AAA 2,500,900 Bonds, Series 2003A, 5.000%, 5/01/25 - AMBAC Insured 2,135 Lexington County School District 4, South Carolina, Certificates 7/04 at 102.00 Baa2*** 2,198,538 of Participation, Series 1994, 7.000%, 7/01/12 (Pre-refunded to 7/01/04) 7,600 Piedmont Municipal Power Agency, South Carolina, Electric 7/04 at 100.00 AAA 6,621,348 Revenue Refunding Bonds, Series 1991, 4.000%, 1/01/23 - MBIA Insured 6,000 South Carolina JOBS Economic Development Authority, Revenue 11/12 at 100.00 A- 5,918,460 Bonds, Bon Secours Health System, Inc., Series 2002A, 5.625%, 11/15/30 South Carolina JOBS Economic Development Authority, Hospital Revenue Bonds, Palmetto Health Alliance, Series 2003C: 1,500 6.875%, 8/01/27 8/13 at 100.00 BBB 1,616,265 5,000 6.375%, 8/01/34 8/13 at 100.00 BBB 5,182,800 15,000 Tobacco Settlement Revenue Management Authority, South 5/11 at 101.00 BBB 13,872,600 Carolina, Tobacco Settlement Asset-Backed Bonds, Series 2001B, 6.000%, 5/15/22 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH DAKOTA - 1.6% 9,860 South Dakota Building Authority, Revenue Bonds, Series 1992, 9/04 at 100.00 AAA 10,042,509 6.700%, 9/01/17 (Pre-refunded to 9/01/04) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.3% 1,500 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/10 at 101.00 AAA 1,634,280 Revenue Bonds, Series 1999D, 6.000%, 3/01/19 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 12.2% 4,000 Austin, Texas, Airport System Prior Lien Revenue Bonds, 11/13 at 100.00 AAA 4,264,120 Series 2003, 5.250%, 11/15/16 - MBIA Insured 2,290 City of Austin, Texas, Town Lake Park Community Events Center 11/09 at 100.00 AAA 2,521,679 Venue Project Bonds, Series 1999, 6.000%, 11/15/25 - FGIC Insured 5,000 Brazos River Authority, Texas, Pollution Control Revenue 5/08 at 102.00 AAA 5,586,250 Refunding Bonds, Texas Utilities Electric Company Project, Series 1998A, 5.550%, 5/01/33 (Alternative Minimum Tax) (Pre-refunded to 5/01/08) - AMBAC Insured 5,000 Brazos River Authority, Texas, Pollution Control Revenue Bonds, 4/08 at 102.00 AAA 5,579,750 Texas Utilities Electric Company Project, Series 1995C, 5.550%, 6/01/30 (Alternative Minimum Tax) (Pre-refunded to 4/01/08) - MBIA Insured 5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 BBB 5,839,759 Refunding Bonds, TXU Electric Company Project, Series 1999C, 7.700%, 3/01/32 (Alternative Minimum Tax) 10,000 Brazos River Harbor Navigation District, Brazoria County, Texas, 5/12 at 101.00 A- 10,907,100 Environmental Facilities Revenue Bonds, Dow Chemical Company Project, Series 2002A-6, 6.250%, 5/15/33 (Alternative Minimum Tax) (Mandatory put 5/15/17) 3,345 City of Fort Worth, Texas, Water and Sewer Revenue Bonds, 2/12 at 100.00 AA 3,654,078 Series 2001, 5.625%, 2/15/19 5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/08 at 102.00 BBB 4,903,350 Disposal Revenue Bonds, Valero Refining and Marketing Company Project, Series 1997, 5.600%, 12/01/31 (Alternative Minimum Tax) 2,800 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,842,588 Revenue Bonds, Series 2001G, 5.250%, 11/15/30 - MBIA Insured 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) Harris County Health Facilities Development Corporation, Texas, Hospital Revenue Bonds, Memorial Hermann Healthcare System, Series 2004A: $ 1,000 5.000%, 12/01/20 12/14 at 100.00 A $ 996,050 1,000 5.000%, 12/01/21 12/14 at 100.00 A 990,150 2,500 5.125%, 12/01/22 12/14 at 100.00 A 2,485,075 510 Hidalgo County Housing Finance Corporation, Texas, GNMA/FNMA 10/04 at 102.00 Aaa 514,677 Collateralized Single Family Mortgage Revenue Bonds, Series 1994A, 7.000%, 10/01/27 (Alternative Minimum Tax) 10,850 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 3,353,193 Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/25 - AMBAC Insured 6,185 Keller Independent School District, Tarrant County, Texas, 8/11 at 100.00 AAA 6,306,412 Unlimited Tax General Obligation Refunding Bonds, Series 2001, 5.250%, 8/15/26 1,760 Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, 3/09 at 100.00 AAA 1,937,637 Series 2001, 5.750%, 3/15/16 - FGIC Insured 2,000 Pearland Independent School District, Brazoria County, Texas, 2/11 at 100.00 AAA 2,072,600 Unlimited Tax Schoolhouse Bonds, Series 2001A, 5.250%, 2/15/22 3,935 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 3,966,401 Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26 3,900 State of Texas, General Obligation Bonds, Veterans Housing 12/11 at 101.00 Aa1 3,933,150 Assistance Program Fund II, Series 2001C-1, 5.200%, 12/01/21 (Alternative Minimum Tax) 6,945 Weatherford Independent School District, Parker County, Texas, 2/11 at 44.73 AAA 2,116,003 Unlimited Tax School Building and Refunding Bonds, Series 2001, 0.000%, 2/15/25 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 0.8% 545 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102.00 AAA 547,556 Series 1994B, 6.450%, 7/01/14 395 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AAA 411,112 Series 1997E-2, 5.875%, 1/01/19 (Alternative Minimum Tax) 705 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/09 at 101.50 AAA 737,909 Series 1997C, 5.600%, 7/01/18 (Alternative Minimum Tax) 3,000 Weber County Municipal Building Authority, Utah, Lease Revenue 12/04 at 102.00 Aaa 3,176,610 Bonds, Series 1994, 7.500%, 12/15/19 (Pre-refunded to 12/15/04) - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ VERMONT - 0.9% 5,635 Vermont Housing Finance Agency, Single Family Housing Bonds, 5/04 at 101.00 A+ 5,767,704 Series 1992-4, 6.400%, 11/01/25 ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.2% 15,000 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 15,312,900 Consolidated System Revenue Bonds, Series 2002A, 5.450%, 7/01/37 (Alternative Minimum Tax) - AMBAC Insured 7,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,245,800 Bonds, Columbia Generating Station, Series 2002C, 5.750%, 7/01/17 - MBIA Insured 5,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 5,448,400 Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16 7,635 Public Hospital District No. 2, King County, Washington, 6/11 at 101.00 AAA 7,540,631 Limited Tax General Obligation Bonds, Evergreen Healthcare, Series 2001A, 5.000%, 12/01/30 - AMBAC Insured 10,080 King County School District No. 401, Highline, Washington, 6/12 at 100.00 AAA 10,993,954 General Obligation Bonds, Series 2002, 5.500%, 12/01/16 - FGIC Insured 6,965 Port of Seattle, Washington, Revenue Bonds, Series 1999A, 9/12 at 100.00 AAA 7,214,066 5.250%, 9/01/22 - FGIC Insured 2,500 Snohomish County, Washington, Limited Tax General Obligation 12/11 at 100.00 AAA 2,568,150 Bonds, Series 2001, 5.125%, 12/01/22 - MBIA Insured 4,905 State of Washington, Various Purpose General Obligation 1/09 at 100.00 Aa1 5,011,291 Bonds, Series 1999B, 5.000%, 1/01/19 27 Nuveen Premium Income Municipal Fund 2, Inc. (NPM) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WEST VIRGINIA - 2.1% $ 7,000 Harrison County Commission, West Virginia, Solid Waste 5/04 at 101.00 AAA $ 7,092,190 Disposal Revenue Bonds, Potomac Edison Company, Harrison Station Project, Series 1993B, 6.250%, 5/01/23 (Alternative Minimum Tax) - AMBAC Insured 5,000 Mason County, West Virginia, Pollution Control Revenue Bonds, 10/11 at 100.00 BBB 4,962,600 Appalachian Power Company Project, Series 2003L, 5.500%, 10/01/22 1,000 Pleasants County, West Virginia, Pollution Control Revenue 4/09 at 101.00 AAA 1,025,040 Bonds, West Penn Power Company Pleasants Station Project, Series 1999E, 5.500%, 4/01/29 (Alternative Minimum Tax) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.2% 3,215 Wisconsin Health and Educational Facilities Authority, Revenue 2/07 at 102.00 AAA 3,447,830 Bonds, Marshfield Clinic Project, Series 1997, 5.625%, 2/15/17 - MBIA Insured 4,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/09 at 101.00 BBB+ 3,918,280 Bonds, Aurora Health Care, Inc., Series 1999A, 5.600%, 2/15/29 ------------------------------------------------------------------------------------------------------------------------------------ $ 1,051,181 Total Long-Term Investments (cost $918,172,048) - 154.6% 944,750,667 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.2% 3,000 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ 3,000,000 Regional Medical Center, Variable Rate Demand Obligations, Series 2000, 1.100%, 7/01/30 - FSA Insured+ 2,000 Montgomery County Public Building Authority, Tennessee, VMIG-1 2,000,000 Pooled Financing Adjustable Revenue Bonds, County Loan Pool Program, Series 2002, 1.110%, 4/01/32+ 2,000 Puerto Rico Government Development Bank, Adjustable A-1 2,000,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 1.030%, 12/01/15 - MBIA Insured+ ------------------------------------------------------------------------------------------------------------------------------------ $ 7,000 Total Short-Term Investments (cost $7,000,000) 7,000,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $925,172,048) - 155.8% 951,750,667 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.0% 6,311,909 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (56.8)% (347,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 611,062,576 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (DD) Security purchased on a delayed delivery basis. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 28 Nuveen Premium Income Municipal Fund 4, Inc. (NPT) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ALABAMA - 3.7% $ 975 Alabama Higher Education Loan Corporation, Student Loan No Opt. Call AAA $ 988,514 Revenue Refunding Bonds, Series 1994D, 5.850%, 9/01/04 (Alternative Minimum Tax) - FSA Insured 2,395 Alabama Housing Finance Authority, Multifamily Housing 2/11 at 102.00 AAA 2,399,335 Revenue Bonds, South Bay Apartments Project, Series 2000K, 5.950%, 2/01/33 (Alternative Minimum Tax) 11,745 Alabama Special Care Facilities Financing Authority of 11/05 at 101.00 Aaa 11,974,615 Birmingham, Hospital Revenue Bonds, Daughter's of Charity National Health System - Providence Hospital and St. Vincent's Hospital, Series 1995, 5.000%, 11/01/25 5,150 Alabama 21st Century Authority, Tobacco Settlement Revenue 12/11 at 101.00 A- 5,185,535 Bonds, Series 2001, 5.750%, 12/01/16 ------------------------------------------------------------------------------------------------------------------------------------ ALASKA - 0.6% 3,065 Alaska Municipal Bond Bank Authority, General Obligation 12/13 at 100.00 AAA 3,140,246 Bonds, Series 2003E, 5.250%, 12/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ARIZONA - 1.6% 5,000 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,005,100 Multipurpose Stadium Facility Project, Series 2003A, 5.000%, 7/01/31 - MBIA Insured 3,750 Salt River Project Agricultural Improvement and Power District, 12/13 at 100.00 AAA 3,898,988 Arizona, Electric System Revenue Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ ARKANSAS - 0.1% 125 Arkansas Development Finance Authority, FHA-Insured or 8/04 at 100.00 AA 126,211 VA Guaranteed Single Family Mortgage Refunding Loans, Series 1991A, 8.000%, 8/15/11 136 Jacksonville Residential Housing Facilities Board, Arkansas, 7/04 at 102.00 Aaa 138,647 FNMA-Backed Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 1/01/11 195 Lonoke County Residential Housing Facilities Board, Arkansas, 4/05 at 103.00 Aaa 199,678 Single Family Mortgage Revenue Refunding Bonds, Series 1993A, 7.900%, 4/01/11 ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA - 5.7% 10,000 California Health Facilities Financing Authority, Revenue Bonds, 3/13 at 100.00 A 9,537,200 Adventist Health System/West, Series 2003A, 5.000%, 3/01/33 10,000 California, General Obligation Bonds, Series 2003, 5.250%, 2/01/22 8/13 at 100.00 Baa1 10,068,400 4,500 California, General Obligation Bonds, Series 2004, 5.100%, 2/01/34 2/09 at 100.00 Baa1 4,348,620 4,780 Foothill-Eastern Transportation Corridor Agency, California, Toll No Opt. Call AAA 3,148,443 Road Revenue Bonds, Series 1995A, 0.000%, 1/01/14 1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 938,420 Tobacco Settlement Asset-Backed Bonds, Series 2003A-1, 6.750%, 6/01/39 1,715 Merced County Housing Authority, California, FNMA 5/04 at 102.00 Aaa 1,747,002 Multifamily Housing Revenue Refunding Bonds, Belmont Park Apartments Project, Series 1993A, 5.875%, 1/01/19 1,945 South Gate Public Financing Authority, California, Water No Opt. Call AAA 2,250,034 Revenue Refunding Bonds, Series 1996A, 6.000%, 10/01/12 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ COLORADO - 5.2% 2,000 Colorado Health Facilities Authority, Revenue Refunding 9/11 at 100.00 AA 2,030,860 Bonds, Catholic Health Initiatives, Series 2001, 5.250%, 9/01/21 1,230 Colorado Housing and Finance Authority, Single Family Program 10/09 at 105.00 Aa2 1,278,019 Senior Bonds, Series 1999C-3, 6.750%, 10/01/21 3,040 Denver City and County, Colorado, Airport System Revenue No Opt. Call A 3,623,011 Bonds, Series 1991D, 7.750%, 11/15/13 (Alternative Minimum Tax) 29 Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ COLORADO (continued) Denver Convention Center Hotel Authority, Colorado, Convention Center Hotel Senior Revenue Bonds, Series 2003A: $ 2,940 5.000%, 12/01/20 - XLCA Insured 12/13 at 100.00 AAA $ 3,001,622 10,000 5.000%, 12/01/33 - XLCA Insured 12/13 at 100.00 AAA 9,930,800 4,345 El Paso County School District No. 20, Academy, Colorado, 12/12 at 100.00 Aaa 4,630,249 General Obligation Bonds, Series 2002, 5.250%, 12/15/17 - FGIC Insured 4,125 Municipal Subdistrict Northern Colorado, Water Conservancy 12/07 at 101.00 AAA 4,420,061 District Revenue Bonds, Series 1997C, 5.250%, 12/01/15 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ CONNECTICUT - 0.6% 3,000 Connecticut Housing Finance Authority, Housing Mortgage 5/06 at 102.00 AAA 3,144,900 Finance Program Bonds, Series 1996C-2, 6.250%, 11/15/18 ------------------------------------------------------------------------------------------------------------------------------------ DISTRICT OF COLUMBIA - 5.6% 6,000 District of Columbia, General Obligation Bonds, Series 1993B-2, No Opt. Call AAA 6,675,780 5.500%, 6/01/10 - FSA Insured 4,250 District of Columbia, Hospital Revenue Refunding Bonds, 8/06 at 102.00 AAA 4,650,180 Medlantic Healthcare Group Issue, Series 1993A, 5.750%, 8/15/14 - MBIA Insured District of Columbia, General Obligation Bonds, Series 1993E: 4,485 6.000%, 6/01/09 - CAPMAC Insured 6/04 at 101.00 AAA 4,550,481 5 6.000%, 6/01/09 - CAPMAC Insured 6/04 at 101.00 AAA 5,118 District of Columbia, General Obligation Refunding Bonds, Series 1993A: 1,585 6.000%, 6/01/07 - MBIA Insured No Opt. Call AAA 1,721,627 7,215 6.000%, 6/01/07 - MBIA Insured No Opt. Call AAA 7,970,555 District of Columbia, University Revenue Bonds, Georgetown University Issue, Series 2001A: 9,670 0.000%, 4/01/26 - MBIA Insured 4/11 at 42.15 AAA 2,689,614 15,235 0.000%, 4/01/30 - MBIA Insured 4/11 at 32.93 AAA 3,290,455 ------------------------------------------------------------------------------------------------------------------------------------ FLORIDA - 6.4% 5,000 Broward County School Board, Florida, Certificates of 7/13 at 100.00 AAA 5,006,200 Participation, Series 2003, 5.000%, 7/01/28 - MBIA Insured 5,000 Hillsborough County Aviation Authority, Florida, Revenue 10/13 at 100.00 AAA 5,197,500 Bonds, Tampa International Airport, Series 2003A, 5.250%, 10/01/18 (Alternative Minimum Tax) - MBIA Insured 9,000 JEA, Florida, Water and Sewer System Revenue Bonds, 10/05 at 100.00 AA-*** 9,461,250 Series 2001A, 5.200%, 10/01/20 (Pre-refunded to 10/01/05) 5,000 Martin County Industrial Development Authority, Florida, 12/04 at 102.00 BBB- 5,155,800 Industrial Development Revenue Bonds, Indiantown Cogeneration LP Project, Series 1994A, 7.875%, 12/15/25 (Alternative Minimum Tax) 1,380 Miami-Dade County Housing Finance Authority, Florida, 1/11 at 102.00 AAA 1,439,105 Multifamily Revenue Bonds, Sunset Bay Apartments Project, Series 2000-5A, 5.850%, 7/01/20 (Alternative Minimum Tax) - FSA Insured 9,500 Sunrise, Florida, Utility System Revenue Refunding Bonds, 10/18 at 100.00 AAA 9,596,045 Series 1998, 5.000%, 10/01/28 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA - 2.4% 3,400 Atlanta, Georgia, Water and Wastewater Revenue Bonds, No Opt. Call AAA 3,744,828 Series 1999A, 5.500%, 11/01/22 - FGIC Insured 2,880 Georgia Municipal Electric Authority, Power Revenue Bonds, No Opt. Call A+ 3,612,730 Series 1992B, 8.250%, 1/01/11 5,500 Georgia Municipal Electric Authority, General Power Revenue No Opt. Call AAA 6,223,030 Bonds, Series 1993B, 5.700%, 1/01/19 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ HAWAII - 1.0% City and County of Honolulu, Hawaii, General Obligation Bonds, Refunding and Improvement Series, 1993B: 1,580 5.000%, 10/01/13 No Opt. Call Aaa 1,724,317 3,720 5.000%, 10/01/13 No Opt. Call Aa2 4,000,972 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ ILLINOIS - 15.0% $ 4,000 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA $ 4,621,120 Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured 5,550 Chicago, Illinois, Revenue Bonds, Midway Airport, 1/11 at 101.00 AAA 5,513,703 Series 2001A, 5.125%, 1/01/26 (Alternative Minimum Tax) - FSA Insured 5,000 Chicago, Illinois, Sales Tax Revenue Bonds, Series 1998, 7/08 at 102.00 AAA 5,065,300 5.250%, 1/01/28 - FGIC Insured Cook County School District 99, Cicero, Illinois, General Obligation School Bonds, Series 1997: 1,455 8.500%, 12/01/13 - FGIC Insured No Opt. Call Aaa 1,961,762 1,685 8.500%, 12/01/15 - FGIC Insured No Opt. Call Aaa 2,314,162 6,170 Illinois Development Finance Authority, Revenue Bonds, 4/11 at 105.00 Aaa 6,912,806 Greek American Nursing Project, Series 2000A, 7.600%, 4/20/40 590 Illinois Development Finance Authority, Child Care Facility No Opt. Call N/R 595,699 Revenue Bonds, Illinois Facilities Fund Project, Series 1992, 7.400%, 9/01/04 870 Illinois Educational Facilities Authority Revenue Bonds, Chicago 7/04 at 100.00 AAA 910,794 College of Osteopathic Medicine, Series A, 8.750%, 7/01/05 Illinois Health Facilities Authority, Revenue Refunding Bonds, Lutheran General Health System, Series 1993C: 5,705 7.000%, 4/01/08 No Opt. Call A+ 6,309,673 4,075 7.000%, 4/01/14 No Opt. Call A+ 4,895,420 4,000 Illinois Health Facilities Authority, FHA-Insured Mortgage 8/13 at 100.00 AAA 3,895,920 Revenue Refunding Bonds, Sinai Health System, Series 2003, 5.150%, 2/15/37 8,190 Illinois Housing Development Authority, Multi-Family Program 9/04 at 102.00 A+ 8,386,314 Bonds, Series 1994-5, 6.650%, 9/01/14 3,410 Illinois Housing Development Authority, Section 8 Elderly 5/04 at 101.00 A 3,433,086 Housing Revenue Bonds, Skyline Towers Apartments Project, Series 1992B, 6.875%, 11/01/17 9,795 Community Unit School District No. 220 of the Counties of Lake, No Opt. Call AAA 10,594,076 Cook, Kane, and McHenry, Illinois, General Obligation Bonds, Series 2002, 5.250%, 12/01/19 - FSA Insured Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project Bonds, Series 2002A: 9,500 0.000%, 6/15/24 - MBIA Insured 6/22 at 101.00 AAA 4,855,925 4,540 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 4,524,428 34,440 0.000%, 6/15/40 - MBIA Insured No Opt. Call AAA 4,344,262 3,050 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,898,175 McHenry and Will Counties, Illinois, General Obligation Bonds, Series 1990A, 7.200%, 11/01/20 - AMBAC Insured 2,162 Wood River Township, Madison County, Illinois, General 8/04 at 102.00 N/R 1,937,557 Obligation Bonds, Series 1993, 6.625%, 2/01/14 ------------------------------------------------------------------------------------------------------------------------------------ INDIANA - 8.9% 22,000 Indiana Health Facility Financing Authority, Hospital Revenue 8/10 at 101.50 AAA 22,558,140 Bonds, Clarian Health Obligated Group, Series 2000A, 5.500%, 2/15/30 - MBIA Insured 3,000 Indiana Health Facility Financing Authority, Hospital Revenue No Opt. Call AAA 3,632,760 Refunding Bonds, Columbus Regional Hospital, Series 1993, 7.000%, 8/15/15 - FSA Insured 3,500 Indiana Educational Facilities Authority, Educational Facilities 2/11 at 100.00 AAA 3,644,305 Revenue Bonds, Butler University Project, Series 2001, 5.500%, 2/01/26 - MBIA Insured 1,500 Indiana Educational Facilities Authority, Revenue Bonds, 10/09 at 101.00 AAA 1,641,720 University of Indianapolis, Series 1999, 5.750%, 10/01/19 - FSA Insured Indiana Transportation Finance Authority, Highway Revenue Bonds, Series 2003A: 4,000 5.000%, 6/01/23 - FSA Insured 6/13 at 100.00 AAA 4,047,880 6,000 5.000%, 6/01/24 - FSA Insured 6/13 at 100.00 AAA 6,036,780 2,100 Indianapolis, Indiana, Economic Development Revenue Bonds, 7/04 at 102.00 Ca 1,344,000 Meadows Section 8 Project, Series 1993A, 6.000%, 7/01/23 (Alternative Minimum Tax)# 1,375 Kokomo Hospital Authority, Indiana, Hospital Revenue Refunding 8/04 at 101.00 N/R*** 1,424,899 Bonds, St. Joseph Hospital and Health Center, Series 1993, 6.250%, 8/15/05 5,000 M.S.D. of Warren Township, Vision 2005 School Building 1/11 at 100.00 AAA 5,385,000 Corporation, Marion County, Indiana, First Mortgage Bonds, Series 2000, 5.500%, 7/15/20 - FGIC Insured 31 Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ IOWA - 0.0% $ 85 Davenport, Iowa, Home Ownership Mortgage Revenue Refunding 9/04 at 102.00 Aa2 $ 85,927 Bonds, Series 1994, 7.900%, 3/01/10 ------------------------------------------------------------------------------------------------------------------------------------ KANSAS - 1.6% 505 Johnson County, Kansas, Single Family Mortgage Revenue 5/04 at 103.00 Aa2 514,105 Refunding Bonds, Series 1994, 7.100%, 5/01/12 2,000 City of Olathe, Kansas, Health Facilities Revenue Bonds, 9/10 at 100.00 AAA 2,063,120 Olathe Medical Center Project, Series 2000A, 5.500%, 9/01/25 - AMBAC Insured 6,825 Sedgwick County Unified School District No. 259, Wichita, 9/10 at 100.00 AA 6,205,154 Kansas, General Obligation Bonds, Series 2000, 3.500%, 9/01/16 ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA - 1.9% 3,070 Jefferson Sales Tax District, Jefferson Parish, Louisiana, 12/12 at 100.00 AAA 3,231,236 Special Sales Tax Revenue Refunding Bonds, Series 2002, 5.250%, 12/01/20 - AMBAC Insured 1,750 Louisiana Local Government Environmental Facilities and 6/12 at 105.00 Aaa 1,916,635 Community Development Authority, GNMA Collateralized Mortgage Revenue Refunding Bonds - Sharlo Apartments Project, Series 2002A, 6.500%, 6/20/37 5,240 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 5,727,110 Obligation Bonds, Series 1986, 5.950%, 11/01/14 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ MAINE - 2.6% 7,520 Maine Educational Loan Marketing Corporation, Subordinate No Opt. Call A2 7,925,253 Student Loan Revenue Bonds, Series 1994B-2, 6.250%, 11/01/06 (Alternative Minimum Tax) 6,635 Maine State Housing Authority, Mortgage Purchase Bonds, 5/10 at 100.00 AA+ 6,872,599 Series 2000C-1, 6.050%, 11/15/31 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND - 2.8% 3,225 Maryland Community Development Administration, Housing 1/07 at 102.00 Aa2 3,347,066 Revenue Bonds, Series 1996A, 5.875%, 7/01/16 2,900 Maryland Community Development Administration, Housing 7/07 at 102.00 Aa2 3,001,616 Revenue Bonds, Series 1997A, 6.000%, 7/01/39 (Alternative Minimum Tax) 6,800 Montgomery County Housing Opportunities Commission, 7/06 at 102.00 Aa2 7,044,596 Maryland, GNMA/FHA-Insured Multifamily Housing Revenue Bonds, Series 1996B, 6.400%, 7/01/28 (Alternative Minimum Tax) 2,315 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,450,358 Maryland, Multifamily Housing Development Bonds, Series 2000B, 6.125%, 7/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MASSACHUSETTS - 0.0% 35 Massachusetts Housing Finance Agency, Housing Project 10/04 at 101.00 A+ 35,387 Revenue Refunding Bonds, Series 1993A, 6.300%, 10/01/13 ------------------------------------------------------------------------------------------------------------------------------------ MICHIGAN - 5.9% 10,225 City of Detroit, Michigan, Water Supply System Senior Lien 7/07 at 101.00 AAA 10,237,986 Revenue Bonds, Series 1997A, 5.000%, 7/01/27 - MBIA Insured 1,935 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 1,992,973 Mortgage Hospital Revenue Bonds, Portage Health System, Inc., Series 1998, 4.625%, 8/01/18 - MBIA Insured 4,400 Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100.00 AAA 4,462,216 Mortgage Hospital Revenue Bonds, Portage Health System, Inc., Series 1998, 5.450%, 8/01/47 - MBIA Insured 5,000 Michigan State Building Authority, Revenue Refunding Bonds, 10/13 at 100.00 AAA 5,012,950 Facilities Program, Series 2003-II, 5.000%, 10/15/29 - MBIA Insured 10,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101.00 Ba3 7,389,375 Bonds, Detroit Medical Center Obligated Group, Series 1998A, 5.250%, 8/15/23 3,750 Michigan Strategic Fund, Collateralized Limited Obligation 6/04 at 101.00 AAA 3,837,938 Revenue Refunding Bonds, Consumers Power Company Project, Series 1993B, 5.800%, 6/15/10 - CAPMAC Insured 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ MINNESOTA - 1.6% $ 2,460 Minneapolis/St. Paul Housing Finance Board, Minnesota, 11/07 at 102.00 AAA $ 2,515,227 FNMA/GNMA Mortgage-Backed Securities Program, Single Family Mortgage Revenue Bonds, Series 1997, 5.800%, 11/01/30 (Alternative Minimum Tax) 3,500 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 3,574,935 Minnesota, Airport Revenue Bonds, Series 2001A, 5.250%, 1/01/25 - FGIC Insured 2,685 Minnetonka, Minnesota, GNMA Collateralized Multifamily 12/04 at 102.00 AAA 2,759,106 Housing Revenue Refunding Bonds, Brier Creek Project, Series 1994A, 6.450%, 6/20/24 ------------------------------------------------------------------------------------------------------------------------------------ MISSISSIPPI - 1.4% 2,000 Mississippi Higher Education Assistance Corporation, Student 9/04 at 100.00 Aaa 2,020,220 Loan Revenue Bonds, Senior Series 1993B, 5.800%, 9/01/06 (Alternative Minimum Tax) 5,180 State of Mississippi, General Obligation Refunding Bonds, No Opt. Call AA 5,809,215 Series 2002A, 5.500%, 12/01/18 ------------------------------------------------------------------------------------------------------------------------------------ MISSOURI - 0.4% 2,000 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 1,993,220 Program, Series 2001A, 5.000%, 7/01/26 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ NEBRASKA - 1.8% 9,000 Nebraska Higher Education Loan Program Incorporated, No Opt. Call AAA 9,685,530 Senior Subordinate Bonds, Series 1993A-5A, 6.250%, 6/01/18 (Alternative Minimum Tax) - MBIA Insured 335 Nebraska Investment Finance Authority, Single Family Housing 3/07 at 101.50 AAA 344,645 Revenue Bonds, Series 1998F, 5.600%, 9/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEVADA - 4.7% 7,000 Clark County, Nevada, Motor Vehicle Fuel Tax Highway 7/13 at 100.00 AAA 7,079,100 Improvement Revenue Bonds, Series 2003, 5.000%, 7/01/23 - AMBAC Insured 10,420 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 11,310,181 Bonds, Series 2002C, 5.500%, 6/15/18 - MBIA Insured 4,500 Clark County School District, Nevada, General Obligation No Opt. Call AAA 5,377,410 School Improvement Bonds, Series 1991A, 7.000%, 6/01/10 - MBIA Insured 5,425 Director of Nevada State Department of Business and Industry, No Opt. Call AAA 1,718,423 Revenue Bonds, Las Vegas Monorail Project, First Tier Series 2000, 0.000%, 1/01/25 - AMBAC Insured 855 Nevada Housing Division, Single Family Mortgage Bonds, 10/04 at 102.00 A1 873,023 Senior Series 1992B, 6.200%, 10/01/15 ------------------------------------------------------------------------------------------------------------------------------------ NEW HAMPSHIRE - 0.0% 45 New Hampshire Housing Finance Agency, Single Family 1/07 at 102.00 Aa2 47,140 Mortgage Acquisition Revenue Bonds, Series 1996C, 6.200%, 7/01/16 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY - 3.8% 1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 1,204,324 Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%, 7/01/30 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C: 2,345 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 2,800,000 655 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 778,520 15,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 13,405,200 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 3,125 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 2,932,563 Tobacco Settlement Asset-Backed Bonds, Series 2003, 6.750%, 6/01/39 ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK - 13.8% 1,200 Town of Hempstead Industrial Development Agency, New York, No Opt. Call A3 1,271,724 Resource Recovery Revenue Refunding Bonds, American REF-FUEL Company of Hempstead Project, Series 2001, 5.000%, 12/01/10 (Mandatory put 6/01/10) 1,000 New York City, New York, General Obligation Bonds, No Opt. Call A 1,014,180 Fiscal Series 1995A, 7.000%, 8/01/04 33 Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ NEW YORK (continued) New York City, New York, General Obligation Bonds, Fiscal Series 1996F: $ 6,580 6.500%, 2/01/05 No Opt. Call A*** $ 6,836,357 7,730 6.500%, 2/01/05 No Opt. Call A 8,021,421 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 1998C: 1,350 5.000%, 5/01/26 (Pre-refunded to 5/01/08) 5/08 at 101.00 AA+*** 1,483,448 15,565 5.000%, 5/01/26 5/08 at 101.00 AA+ 15,593,017 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2000C: 3,630 5.875%, 11/01/16 (Pre-refunded to 5/15/10) 5/10 at 101.00 AA+*** 4,179,836 5,000 5.500%, 11/01/24 5/10 at 101.00 AA+ 5,290,650 220 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AA+ 247,590 Future Tax Secured Bonds, Fiscal Series 2000A, 5.875%, 11/01/16 2,145 New York State Medical Care Facilities Finance Agency, 8/04 at 100.00 AAA 2,243,885 FHA-Insured Mortgage Revenue Bonds, Hospital and Nursing Home Projects, Series 1992B, 6.200%, 8/15/22 4,200 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AA 4,396,182 FHA-Insured Mortgage Revenue Bonds, Kenmore Mercy Hospital, Series 1995B, 6.150%, 2/15/35 3,365 New York State Medical Care Facilities Finance Agency, 8/04 at 102.00 AA 3,442,967 Hospital and Nursing Home FHA-Insured Mortgage Revenue Bonds, Series 1994A, 6.200%, 2/15/21 7,500 New York State Thruway Authority, General Revenue Bonds, 1/05 at 102.00 AAA 7,884,600 Series C, 6.000%, 1/01/15 (Pre-refunded to 1/01/05) - FGIC Insured 6,250 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 7,015,375 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 6.250%, 12/01/15 (Alternative Minimum Tax) - MBIA Insured New York Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: 5,400 5.500%, 6/01/16 6/10 at 100.00 AA- 5,733,180 2,500 5.500%, 6/01/18 6/12 at 100.00 AA- 2,670,400 ------------------------------------------------------------------------------------------------------------------------------------ NORTH CAROLINA - 3.3% 2,675 Charlotte, North Carolina, Water and Sewer System Revenue 6/11 at 101.00 AAA 2,962,910 Bonds, Series 2001, 5.500%, 6/01/13 2,000 North Carolina Municipal Power Agency 1, Catawba Electric No Opt. Call AAA 2,281,600 Revenue Bonds, Series 1992, 6.000%, 1/01/11 - MBIA Insured 10,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 10,610,200 Revenue Bonds, Series 2003A, 5.250%, 1/01/18 - MBIA Insured 2,445 North Carolina Infrastructure Finance Corporation, Certificates 2/14 at 100.00 AA+ 2,506,492 of Participation, Correctional Facilities, Series 2004A, 5.000%, 2/01/21 ------------------------------------------------------------------------------------------------------------------------------------ NORTH DAKOTA - 0.0% 65 Minot, North Dakota, Single Family Mortgage Revenue 8/04 at 101.00 Aa2 65,640 Refunding Bonds, Series 1993, 7.700%, 8/01/10 ------------------------------------------------------------------------------------------------------------------------------------ OHIO - 4.0% 3,705 Akron, Bath, and Copley Joint Township Hospital District, 5/04 at 101.00 Baa1 3,750,238 Ohio, Hospital Facilities Revenue Bonds, Summa Health System Project, Series 1992A, 6.250%, 11/15/07 9,000 Cleveland, Ohio, Airport System Revenue Bonds, Series 2000A, 1/10 at 101.00 AAA 9,001,890 5.000%, 1/01/31 - FSA Insured 3,000 County of Franklin, Ohio, Development Revenue Bonds, 10/09 at 101.00 A 3,215,880 American Chemical Society Project, Series 1999, 5.800%, 10/01/14 1,000 Franklin County, Ohio, FHA-Insured Multifamily Housing 1/05 at 103.00 Aa 1,011,680 Mortgage Revenue Bonds, Hamilton Creek Apartments Project, Series 1994A, 5.550%, 7/01/24 (Alternative Minimum Tax) 720 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/05 at 102.00 Aaa 742,918 Securities Program, Residential Mortgage Revenue Bonds, Series 1995A-1, 6.300%, 9/01/17 4,370 City of Toledo, Ohio, General Obligation Bonds, Series 1994, 12/04 at 102.00 AAA 4,572,593 5.750%, 12/01/09 (Pre-refunded to 12/01/04) - AMBAC Insured 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ OKLAHOMA - 2.5% $ 545 Oklahoma Housing Finance Agency, Single Family Mortgage 3/10 at 101.00 Aaa $ 571,754 Revenue Bonds, Homeownership Loan Program, Series 2000C-2, 6.200%, 9/01/28 (Alternative Minimum Tax) Oklahoma County Finance Authority, Multifamily Housing First Mortgage Revenue Bonds, Multiple Apartments Project, Series 1998A: 3,495 7.000%, 4/01/18# 4/06 at 102.00 N/R 524,250 7,000 7.125%, 4/01/28# 4/06 at 102.00 N/R 1,050,000 9,775 Tulsa County Industrial Authority, Oklahoma, First Mortgage 3/11 at 101.00 N/R 7,744,146 Multifamily Housing Revenue Bonds, Stoneridge Apartments Project, Series 1999, 6.125%, 3/01/39 (Alternative Minimum Tax) 3,340 Tulsa Industrial Authority, Oklahoma, Revenue and Refunding No Opt. Call AAA 3,865,516 Bonds, Hillcrest Medical Center Project, Series 1996, 6.500%, 6/01/09 - CONNIE LEE/AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA - 0.9% 5,000 Pennsylvania Economic Development Financing Authority, 7/04 at 102.00 BBB- 5,105,350 Resource Recovery Revenue Bonds, Northampton Generating Project, Senior Lien, Series 1994A, 6.400%, 1/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO - 3.3% 12,390 Puerto Rico, Public Improvement General Obligation Refunding No Opt. Call AAA 14,895,010 Bonds, Series 1997, 6.500%, 7/01/13 - MBIA Insured 3,470 University of Puerto Rico, University System Revenue Bonds, 6/10 at 100.00 AAA 3,872,173 Series O, 5.750%, 6/01/18 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ RHODE ISLAND - 3.1% 20,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 17,343,200 Tobacco Settlement Asset-Backed Bonds, Series 2002A, 6.250%, 6/01/42 ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA - 2.9% Piedmont Municipal Power Agency, South Carolina, Electric Revenue Refunding Bonds, Series 1991: 5,000 6.250%, 1/01/21 - FGIC Insured No Opt. Call AAA 5,859,750 5,750 4.000%, 1/01/23 - MBIA Insured 7/04 at 100.00 AAA 5,009,573 5,085 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 5,625,129 Revenue Refunding Bonds, 1998A Series, 5.500%, 1/01/13 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TENNESSEE - 0.3% 1,500 Metropolitan Government of Nashville and Davidson County, 5/08 at 102.00 AA 1,541,880 Tennessee, Electric System Revenue Bonds, Series 1998A, 5.200%, 5/15/23 ------------------------------------------------------------------------------------------------------------------------------------ TEXAS - 17.1% 4,500 Alliance Airport Authority, Inc., Texas, Special Facilities 6/04 at 100.00 CCC 3,259,575 Revenue Bonds, American Airlines, Inc. Project, Series 1990, 7.500%, 12/01/29 (Alternative Minimum Tax) 3,345 Columbia-Brazoria Independent School District, Texas, 2/09 at 100.00 AAA 3,210,397 Unlimited Tax School Building Bonds, Series 1999, 4.750%, 2/01/25 8,000 Dallas-Fort Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 8,705,520 Refunding and Improvement Bonds, Series 2001A, 5.875%, 11/01/19 (Alternative Minimum Tax) - FGIC Insured 6,000 Garland Housing Finance Corporation, Texas, Multifamily 12/11 at 101.00 N/R 5,970,120 Housing Revenue Bonds, Legacy Pointe Apartments, Series 2000, 7.500%, 6/01/40 (Alternative Minimum Tax) 7,000 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 6,943,930 Texas, Thermal Utility Revenue Bonds, TECO Project, Series 2003, 5.000%, 11/15/30 - MBIA Insured 28,305 Houston, Texas, Hotel Occupancy Tax and Special Revenue No Opt. Call AAA 7,249,760 Bonds, Convention and Entertainment Project, Series 2001B, 0.000%, 9/01/28 - AMBAC Insured 7,500 Houston, Texas, Water and Sewer System, Junior Lien Revenue No Opt. Call AAA 8,370,150 Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - FSA Insured 5,000 Houston, Texas, Water and Sewer System, Junior Lien Revenue 12/07 at 102.00 AAA 5,016,700 Refunding Bonds, Series 1997D, 5.000%, 12/01/25 - FGIC Insured 7,080 Liberty County Housing Development Corporation, Texas, 6/09 at 100.00 N/R 6,301,200 Multifamily Housing Revenue Bonds, Series 1999, 7.250%, 6/01/34 35 Nuveen Premium Income Municipal Fund 4, Inc. (NPT) (continued) Portfolio of INVESTMENTS April 30, 2004 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TEXAS (continued) $ 367 Midland Housing Finance Corporation, Texas, Single Family 11/05 at 103.00 Aaa $ 384,828 Mortgage Revenue Refunding Bonds, Series 1992A, 8.450%, 12/01/11 Montgomery Independent School District, Montgomery County, Texas, Unlimited Tax School Building and Refunding Bonds, Series 2001: 2,300 5.500%, 2/15/21 2/11 at 100.00 AAA 2,451,156 2,400 5.500%, 2/15/23 2/11 at 100.00 AAA 2,526,744 Mount 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 3,025,696 3,000 5.125%, 2/15/31 8/11 at 100.00 Aaa 3,016,620 6,000 Raven Hills Higher Education Corporation, Texas, Student 8/12 at 100.00 Aaa 6,013,620 Housing Revenue Bonds, Angelo State University - Texan Hall LLC, Series 2002A, 5.000%, 8/01/25 - MBIA Insured 3,410 Retama Development Corporation, Texas, Special Facilities No Opt. Call AAA 4,639,407 Revenue Bonds, Retama Park Racetrack Project, Series 1993, 8.750%, 12/15/12 1,800 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 1,910,178 System Revenue Refunding Bonds, Series 2002A, 5.750%, 10/01/21 - RAAI Insured 4,700 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 4,737,506 Texas, Limited Tax Schoolhouse and Refunding Bonds, Series 2001, 5.125%, 2/01/26 4,259 Texas General Services Commission, Participation Interests, 9/04 at 100.50 A 4,328,717 Series 1992, 7.500%, 9/01/22 8,500 Travis County Health Facilities Development Corporation, 5/04 at 102.00 Aaa 8,706,550 Texas, Hospital Revenue Bonds, Daughters of Charity National Health System, Series 1993B, 6.000%, 11/15/22 ------------------------------------------------------------------------------------------------------------------------------------ UTAH - 6.7% 4,845 Bountiful, Davis County, Utah, Hospital Revenue Refunding 12/08 at 101.00 N/R 4,276,245 Bonds, South Davis Community Hospital Project, Series 1998, 5.750%, 12/15/18 17,570 Intermountain Power Agency, Utah, Power Supply Revenue 7/07 at 102.00 AAA 19,342,286 Refunding Bonds, Series 1997B, 5.750%, 7/01/19 - MBIA Insured Intermountain Power Agency, Utah, Power Supply Revenue Bonds, Series 1996A: 5,065 6.150%, 7/01/14 7/06 at 102.00 A+*** 5,582,339 2,935 6.150%, 7/01/14 7/06 at 102.00 A+ 3,191,783 1,435 Salt Lake City and Sandy Metropolitan Water District, Utah, 7/14 at 100.00 Aaa 1,474,649 Water Revenue Bonds, Series 2004, 5.000%, 7/01/21 660 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/10 at 100.00 AA 664,277 Series 2000G, 5.875%, 7/01/27 (Alternative Minimum Tax) Utah Housing Finance Agency, Single Family Mortgage Bonds, Series 2001C: 2,270 5.500%, 1/01/18 (Alternative Minimum Tax) 1/11 at 100.00 AA- 2,365,794 675 5.650%, 1/01/21 (Alternative Minimum Tax) 1/11 at 100.00 Aa2 690,809 ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA - 1.5% 8,190 Hampton, Virginia, Convention Center Revenue Bonds, 1/13 at 100.00 AAA 8,192,211 Series 2002, 5.000%, 1/15/35 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON - 10.7% 1,050 King County, Bellevue, Washington, Water and Sewer Revenue 7/04 at 100.00 Aa2 1,057,455 Refunding Bonds, Series 1994, 5.875%, 7/01/09 1,855 Chelan County Public Utility District 1, Washington, Hydro 7/09 at 101.00 AA 1,957,118 Consolidated System Revenue Bonds, Series 1999A, 6.200%, 7/01/34 (Alternative Minimum Tax) 1,035 Covington Water District, Washington, Water Improvement 3/05 at 100.00 AAA 1,075,810 and Revenue Refunding Bonds, Series 1995, 6.050%, 3/01/20 (Pre-refunded to 3/01/05) - AMBAC Insured 1,655 Everett, Washington, General Obligation Bonds, Limited Tax, 9/07 at 100.00 Aaa 1,728,399 Series 1997, 5.125%, 9/01/17 - FSA Insured 1,000 Seattle Indian Services Commission, Washington, Special 11/04 at 100.00 AAA 1,020,330 Obligation Bonds, Series 1994, 6.000%, 11/01/16 1,633 Skagit County Housing Authority, Washington, GNMA 11/04 at 104.00 AAA 1,710,665 Collateralized Mortgage Loan Nursing Facility Revenue Bonds, Sea Mar Community Project, Series 1993, 7.000%, 6/20/35 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WASHINGTON (continued) $ 1,500 Snohomish County School District 6, Mukilteo, Washington, No Opt. Call AAA $ 1,695,810 Unlimited Tax General Obligation and Refunding Bonds, Series 1993, 5.700%, 12/01/12 - FGIC Insured 1,570 Spokane Downtown Foundation, Washington, Parking Revenue 8/08 at 102.00 D 1,099,000 Bonds, River Park Square Project, Series 1998, 5.600%, 8/01/19# 8,155 City of Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 8,944,404 Bonds, Series 2001A, 5.750%, 1/01/20 - FSA Insured 4,705 City of Tacoma, Washington, Sewer Revenue Refunding Bonds, No Opt. Call AAA 5,719,492 Series 1994B, 8.000%, 12/01/08 - FGIC Insured 4,970 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 4,756,737 Settlement Asset-Backed Revenue Bonds, Series 2002, 6.500%, 6/01/26 2,000 Washington State Healthcare Facilities Authority, Revenue 8/08 at 102.00 AA 1,982,720 Bonds, Highline Community Hospital, Series 1998, 5.000%, 8/15/21 - RAAI Insured 1,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 993,940 Bonds, Harrison Memorial Hospital, Series 1998, 5.000%, 8/15/28 - AMBAC Insured Washington Public Power Supply System, Revenue Refunding Bonds, Nuclear Project 2, Series 1990A: 6,080 7.250%, 7/01/06 No Opt. Call Aaa 6,769,958 395 7.250%, 7/01/06 No Opt. Call Aaa 438,422 11,000 Washington Public Power Supply System, Nuclear Project 3 No Opt. Call Aaa 12,979,230 Revenue Refunding Bonds, Series 1993B, 7.000%, 7/01/09 4,700 Washington Public Power Supply System, Nuclear Project 3 7/08 at 102.00 Aaa 4,858,202 Revenue Refunding Bonds, Series 1998A, 5.125%, 7/01/18 1,400 Washington State University, Housing and Dining System 10/04 at 101.00 AAA 1,444,252 Revenue and Refunding Bonds, Series 1994, 6.375%, 10/01/18 (Pre-refunded to 10/01/04) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ WISCONSIN - 1.4% 7,500 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 101.00 AAA 7,621,875 Bonds, Ministry Health Care, Inc., Series 2002A, 5.250%, 2/15/32 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 940,872 Total Long-Term Investments (cost $865,309,932) - 156.8% 879,594,515 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.3% 5,000 Connecticut Health and Educational Facilities Authority, Revenue A-1+ 5,000,000 Bonds, Adjustable Rate Demand Obligations, Yale University, Series 1997, 1.050%, 7/01/29+ 2,300 Fulton County Residential Care Facilities Authority, Georgia, A-1+ 2,300,000 Revenue Refunding Bonds, Lenbrook Square Foundation, Inc., Variable Rate Demand Obligations, Series 1996, 1.150%, 1/01/18+ ------------------------------------------------------------------------------------------------------------------------------------ $ 7,300 Total Short-Term Investments (cost $7,300,000) 7,300,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $872,609,932) - 158.1% 886,894,515 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 12,587,345 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (60.3)% (338,400,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 561,081,860 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. # Non-income producing security, in the case of a bond, generally denotes that issuer has defaulted on the payment of principal or interest or has filed for bankruptcy. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 37 Statement of ASSETS AND LIABILITIES April 30, 2004 (Unaudited) PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $1,384,905,384, $925,172,048 and $872,609,932, respectively) $1,429,061,079 $951,750,667 $886,894,515 Receivables: Interest 24,516,068 15,286,869 16,064,491 Investments sold 40,543,015 383,273 7,240,103 Other assets 73,749 42,873 64,372 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 1,494,193,911 967,463,682 910,263,481 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 6,673,323 244,754 5,168,290 Payable for investments purchased 25,992,373 8,497,807 4,973,229 Accrued expenses: Management fees 746,303 495,697 466,021 Other 222,967 133,264 146,021 Preferred share dividends payable 44,073 29,584 28,060 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 33,679,039 9,401,106 10,781,621 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 525,000,000 347,000,000 338,400,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 935,514,872 $611,062,576 $561,081,860 ==================================================================================================================================== Common shares outstanding 63,785,430 41,093,661 43,236,703 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.67 $ 14.87 $ 12.98 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 637,854 $ 410,937 $ 432,367 Paid-in surplus 901,328,041 570,811,783 587,100,504 Undistributed net investment income 11,099,541 7,954,808 4,675,435 Accumulated net realized gain (loss) from investments (21,706,259) 5,306,429 (45,411,029) Net unrealized appreciation of investments 44,155,695 26,578,619 14,284,583 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 935,514,872 $611,062,576 $561,081,860 ==================================================================================================================================== 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. 38 Statement of OPERATIONS Six Months Ended April 30, 2004 (Unaudited) PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 38,429,227 $ 25,129,082 $24,105,546 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 4,578,609 3,044,537 2,857,875 Preferred shares - auction fees 654,452 432,561 421,841 Preferred shares - dividend disbursing agent fees 29,917 29,917 39,891 Shareholders' servicing agent fees and expenses 96,314 33,020 46,955 Custodian's fees and expenses 142,981 94,987 86,900 Directors' fees and expenses 10,114 6,876 6,171 Professional fees 101,802 24,587 87,893 Shareholders' reports - printing and mailing expenses 88,319 54,594 53,566 Stock exchange listing fees 12,037 7,881 8,273 Investor relations expense 71,399 46,215 44,676 Other expenses 39,247 28,127 28,229 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit 5,825,191 3,803,302 3,682,270 Custodian fee credit (8,556) (7,785) (21,672) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 5,816,635 3,795,517 3,660,598 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 32,612,592 21,333,565 20,444,948 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain from investments 3,095,776 5,610,398 296,649 Change in net unrealized appreciation (depreciation) of investments (15,287,029) (13,943,250) (7,795,595) ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments (12,191,253) (8,332,852) (7,498,946) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (2,333,712) (1,512,362) (1,507,671) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $ 18,087,627 $ 11,488,351 $11,438,331 ==================================================================================================================================== See accompanying notes to financial statements. 39 Statement of CHANGES IN NET ASSETS (Unaudited) PREMIUM INCOME (NPI) PREMIUM INCOME 2 (NPM) PREMIUM INCOME 4 (NPT) ----------------------------- ------------------------------ ----------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 4/30/04 10/31/03 4/30/04 10/31/03 4/30/04 10/31/03 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 32,612,592 $ 66,922,169 $ 21,333,565 $ 44,271,502 $ 20,444,948 $ 40,340,813 Net realized gain (loss) from investments 3,095,776 (6,491,900) 5,610,398 (393,349) 296,649 (24,848,241) Change in net unrealized appreciation (depreciation) of investments (15,287,029) 4,768,442 (13,943,250) (3,831,125) (7,795,595) 11,357,979 Distributions to Preferred Shareholders: From net investment income (2,333,712) (4,760,721) (1,512,362) (2,914,759) (1,507,671) (3,107,195) From accumulated net realized gains from investments -- -- -- (384,068) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 18,087,627 60,437,990 11,488,351 36,748,201 11,438,331 23,743,356 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (30,884,949) (60,851,307) (20,341,371) (40,327,811) (19,132,258) (36,928,470) From accumulated net realized gains from investments -- -- -- (4,164,058) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (30,884,949) (60,851,307) (20,341,371) (44,491,869) (19,132,258) (36,928,470) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (12,797,322) (413,317) (8,853,020) (7,743,668) (7,693,927) (13,185,114) Net assets applicable to Common shares at the beginning of period 948,312,194 948,725,511 619,915,596 627,659,264 568,775,787 581,960,901 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $935,514,872 $948,312,194 $611,062,576 $619,915,596 $561,081,860 $568,775,787 ==================================================================================================================================== Undistributed net investment income at the end of period $ 11,099,541 $ 11,705,610 $ 7,954,808 $ 8,474,976 $ 4,675,435 $ 4,870,416 ==================================================================================================================================== See accompanying notes to financial statements. 40 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The National Funds (the "Funds") covered in this report and their corresponding Common share New York Stock Exchange symbols are Nuveen Premium Income Municipal Fund, Inc. (NPI), Nuveen Premium Income Municipal Fund 2, Inc. (NPM) and Nuveen Premium Income Municipal Fund 4, Inc. (NPT). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end, diversified management investment companies. Each Fund seeks to provide current income exempt from regular federal income tax by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Securities Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors. When price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Directors of the Funds, or its designee, may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At April 30, 2004, Premium Income (NPI) and Premium Income 2 (NPM) had when-issued and delayed delivery purchase commitments of $16,043,362 and $8,497,807, respectively. There were no such outstanding purchase commitments in Premium Income 4 (NPT). Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Professional Fees Professional fees presented in the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of the Fund's shareholders. Federal Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income to its shareholders. 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. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. 41 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in more than one Series. The dividend rate on each Series may change every seven days, as set pursuant to a dutch auction process by the auction agent, and is payable at or near the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) -------------------------------------------------------------------------------- Number of shares: Series M 3,800 2,000 2,200 Series M2 2,000 -- -- Series T 3,800 3,000 2,000 Series T2 -- -- 1,328 Series W 3,800 2,000 1,680 Series W2 -- -- 520 Series TH 3,800 3,000 2,680 Series F 3,800 2,000 1,800 Series F2 -- 1,880 1,328 -------------------------------------------------------------------------------- Total 21,000 13,880 13,536 ================================================================================ Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the six months ended April 30, 2004. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Funds' organizational documents, its 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. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. FUND SHARES None of the Funds engaged in transactions in their own shares during the six months ended April 30, 2004, nor during the fiscal year ended October 31, 2003. 42 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities for the six months ended April 30, 2004, were as follows: PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) -------------------------------------------------------------------------------- Purchases $118,447,318 $119,624,706 $43,723,421 Sales and maturities 123,174,377 121,171,324 26,863,544 ================================================================================ 4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses on investments, timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At April 30, 2004, the cost of investments were as follows: PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) -------------------------------------------------------------------------------- Cost of investments $1,383,974,907 $924,737,611 $871,945,612 ================================================================================ Gross unrealized appreciation and gross unrealized depreciation of investments at April 30, 2004, were as follows: PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) -------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 62,301,529 $34,573,843 $ 36,732,471 Depreciation (17,215,357) (7,560,787) (21,783,568) -------------------------------------------------------------------------------- Net unrealized appreciation of investments $ 45,086,172 $27,013,056 $ 14,948,903 ================================================================================ The tax components of undistributed net investment income and net realized gains at October 31, 2003, the Funds' last fiscal year end, were as follows: PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) -------------------------------------------------------------------------------- Undistributed net tax-exempt income $15,582,555 $10,923,354 $6,663,985 Undistributed net ordinary income * 283,509 258,828 768,631 Undistributed net long-term capital gains -- -- -- ================================================================================ * Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal year ended October 31, 2003, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows: PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) ---------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $65,547,346 $43,115,363 $39,962,183 Distributions from net ordinary income * -- 153,898 100,446 Distributions from net long-term capital gains -- 4,545,182 -- ========================================================================================================== * Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 43 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) At October 31, 2003, the Funds' last fiscal 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 year: 2008 $12,335,442 $ -- $ 2,835,520 2009 -- -- -- 2010 6,203,091 -- 18,079,555 2011 6,263,502 308,379 24,792,603 -------------------------------------------------------------------------------- Total $24,802,035 $308,379 $45,707,678 ================================================================================ 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the Funds' investment management agreements with Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For the next $3 billion .5875 For net assets over $5 billion .5750 ================================================================================ 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 their officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. As approved by the Board of Directors, a complex-wide fee schedule for all Funds managed by the Adviser and its affiliates will go into effect on August 1, 2004. This complex wide fee schedule is expected to marginally decrease the rate at which management fees are to be paid by the Funds. Under no circumstances will the complex-wide fee schedule result in an increase in the rate at which management fees would by paid by the Funds if the complex-wide fee schedule were not implemented. 44 6. INVESTMENT COMPOSITION At April 30, 2004, the revenue sources by municipal purpose, expressed as a percent of total investments, were as follows: PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) -------------------------------------------------------------------------------- Consumer Staples 3% 3% 5% Education and Civic Organizations 7 5 6 Healthcare 11 10 11 Housing/Multifamily 3 5 7 Housing/Single Family 5 5 2 Tax Obligation/General 19 24 15 Tax Obligation/Limited 22 16 16 Transportation 9 5 6 U.S. Guaranteed 9 13 12 Utilities 8 11 13 Water and Sewer 2 1 6 Other 2 2 1 -------------------------------------------------------------------------------- 100% 100% 100% ================================================================================ Certain investments owned by the Funds are either covered by insurance issued by several private insurers or are backed by an escrow or trust containing U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest in the event of default (57% for Premium Income (NPI), 56% for Premium Income 2 (NPM) and 59% for Premium Income 4 (NPT)). Such insurance or escrow, however, does not guarantee the market value of the municipal securities or the value of any of the Funds' shares. For additional information regarding each investment security, refer to the Portfolio of Investments of each Fund. 7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on June 1, 2004, to shareholders of record on May 15, 2004, as follows: PREMIUM PREMIUM PREMIUM INCOME INCOME 2 INCOME 4 (NPI) (NPM) (NPT) -------------------------------------------------------------------------------- Dividend per share $.0800 $.0815 $.0710 ================================================================================ 45 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period: Investment Operations Less Distributions ---------------------------------------------------------------- ------------------------------ Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== PREMIUM INCOME (NPI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2004 (a) $14.87 $ .51 $ (.19) $(.04) $ -- $ .28 $(.48) $ -- $ (.48) 2003 14.87 1.05 (.03) (.07) -- .95 (.95) -- (.95) 2002 15.27 1.10 (.48) (.11) -- .51 (.91) -- (.91) 2001 14.23 1.12 .98 (.26) -- 1.84 (.80) -- (.80) 2000 13.46 1.11 .78 (.33) -- 1.56 (.79) -- (.79) 1999 15.66 1.09 (2.10) (.24) (.02) (1.27) (.85) (.07) (.92) PREMIUM INCOME 2 (NPM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2004 (a) 15.09 .52 (.20) (.04) -- .28 (.50) -- (.50) 2003 15.27 1.08 (.10) (.07) (.01) .90 (.98) (.10) (1.08) 2002 15.53 1.17 (.30) (.11) (.01) .75 (.96) (.05) (1.01) 2001 14.75 1.21 .73 (.27) -- 1.67 (.89) -- (.89) 2000 14.61 1.22 .20 (.34) -- 1.08 (.92) (.02) (.94) 1999 16.15 1.18 (1.48) (.24) (.01) (.55) (.94) (.04) (.98) PREMIUM INCOME 4 (NPT) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 10/31: 2004 (a) 13.15 .47 (.17) (.03) -- .27 (.44) -- (.44) 2003 13.46 .93 (.32) (.07) -- .54 (.85) -- (.85) 2002 14.22 1.00 (.80) (.11) -- .09 (.85) -- (.85) 2001 13.54 1.08 .66 (.25) -- 1.49 (.81) -- (.81) 2000 13.50 1.11 .07 (.32) -- .86 (.82) -- (.82) 1999 15.05 1.09 (1.56) (.24) -- (.71) (.83) -- (.83) ==================================================================================================================================== Total Returns ---------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ============================================================================================ PREMIUM INCOME (NPI) -------------------------------------------------------------------------------------------- Year Ended 10/31: 2004 (a) $ -- $14.67 $13.2000 (2.94)% 1.85% 2003 -- 14.87 14.0600 6.48 6.58 2002 -- 14.87 14.1100 5.51 3.47 2001 -- 15.27 14.2500 26.60 13.22 2000 -- 14.23 11.9375 4.10 12.03 1999 (.01) 13.46 12.2500 (14.03) (8.59) PREMIUM INCOME 2 (NPM) -------------------------------------------------------------------------------------------- Year Ended 10/31: 2004 (a) -- 14.87 13.4700 (2.23) 1.76 2003 -- 15.09 14.2500 6.57 6.07 2002 -- 15.27 14.4000 5.59 5.03 2001 -- 15.53 14.6100 17.31 11.63 2000 -- 14.75 13.2500 (2.03) 7.71 1999 (.01) 14.61 14.5000 (8.59) (3.66) PREMIUM INCOME 4 (NPT) -------------------------------------------------------------------------------------------- Year Ended 10/31: 2004 (a) -- 12.98 11.8000 (2.47) 2.01 2003 -- 13.15 12.5200 3.09 4.12 2002 -- 13.46 12.9700 .52 .76 2001 -- 14.22 13.7500 18.68 11.28 2000 -- 13.54 12.3125 3.28 6.58 1999 (.01) 13.50 12.7500 (8.77) (5.03) ============================================================================================ Ratios/Supplemental Data ----------------------------------------------------------------------------------------------- Before Credit After Credit*** ------------------------------ ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ========================================================================================================================= PREMIUM INCOME (NPI) ------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2004 (a) $935,515 1.20%* 6.74%* 1.20%* 6.74%* 8% 2003 948,312 1.22 7.02 1.22 7.02 24 2002 948,726 1.22 7.39 1.22 7.39 4 2001 974,272 1.22 7.49 1.21 7.50 20 2000 907,640 1.28 8.09 1.27 8.10 18 1999 858,491 1.18 7.28 1.17 7.29 15 PREMIUM INCOME 2 (NPM) ------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2004 (a) 611,063 1.20* 6.74* 1.20* 6.74* 12 2003 619,916 1.22 7.06 1.21 7.07 21 2002 627,659 1.22 7.70 1.21 7.71 21 2001 638,365 1.23 7.93 1.21 7.95 12 2000 605,973 1.23 8.38 1.22 8.39 7 1999 600,481 1.15 7.60 1.15 7.60 5 PREMIUM INCOME 4 (NPT) ------------------------------------------------------------------------------------------------------------------------- Year Ended 10/31: 2004 (a) 561,082 1.27* 7.04* 1.26* 7.05* 3 2003 568,776 1.36 6.95 1.35 6.96 17 2002 581,961 1.36 7.36 1.35 7.37 16 2001 614,989 1.34 7.73 1.33 7.74 10 2000 585,387 1.27 8.22 1.26 8.23 14 1999 583,541 1.20 7.51 1.20 7.51 14 ========================================================================================================================= Preferred Shares at End of Period --------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share =================================================================== PREMIUM INCOME (NPI) ------------------------------------------------------------------- Year Ended 10/31: 2004 (a) $525,000 $25,000 $69,548 2003 525,000 25,000 70,158 2002 525,000 25,000 70,177 2001 525,000 25,000 71,394 2000 525,000 25,000 68,221 1999 525,000 25,000 65,881 PREMIUM INCOME 2 (NPM) ------------------------------------------------------------------- Year Ended 10/31: 2004 (a) 347,000 25,000 69,025 2003 347,000 25,000 69,663 2002 347,000 25,000 70,220 2001 347,000 25,000 70,992 2000 347,000 25,000 68,658 1999 347,000 25,000 68,262 PREMIUM INCOME 4 (NPT) ------------------------------------------------------------------- Year Ended 10/31: 2004 (a) 338,400 25,000 66,451 2003 338,400 25,000 67,019 2002 338,400 25,000 67,983 2001 338,400 25,000 70,434 2000 338,400 25,000 68,247 1999 338,400 25,000 68,110 =================================================================== * Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income at net asset value, reinvested capital gains distributions at net asset value, if any, and changes in Common share net asset value per share. Total returns are not annualized. *** After custodian fee credit, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the six months ended April 30, 2004. See accompanying notes to financial statements. 46-47 spread Build Your Wealth AUTOMATICALLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBILITY 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. 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. 48 Fund INFORMATION BOARD OF DIRECTORS Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter Anne E. Impellizzeri* William L. Kissick* Thomas E. Leafstrand* Peter R. Sawers* William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Sheila W. Wellington* FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii) on the Commission's website at http://www.sec.gov. POLICY CHANGE On November 14, 2002, the Board adopted a policy that allows each Fund, in addition to investments in municipal bonds, to invest up to 5% of its net assets (including assets attributable to preferred shares, if any) in tax-exempt or taxable fixed-income securities or equity securities for the purpose of acquiring control of an issuer whose municipal bonds (a) the Fund already owns and (b) have deteriorated or are expected shortly to deteriorate significantly in credit quality, provided Nuveen Advisory determines that such investment should enable the Fund to better maximize the value of its existing investment in such issuer. This policy is a non-fundamental policy of each Fund which means that it can be changed at any time by the Board of Trustees without vote of the shareholders. GLOSSARY OF TERMS USED IN THIS REPORT Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return (including change in NAV and reinvested dividends) that would have been necessary on an annual basis to equal the investment's actual performance over the time period being considered. Average Duration: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond or fund's duration, the more the price of the bond or fund will change as interest rates change. Average Effective Maturity: The average of all the maturities of the bonds in a fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. Market Yield (also known as Dividend Yield or Current Yield): An investment's current annualized dividend divided by its current market price. Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. ---------- *Director will be retiring on June 30, 2004. Each Fund intends to repurchase shares of its own common or preferred stock, where applicable, in the future at such times and in such amounts as is deemed advisable. No shares were purchased during the six-months ended April 30, 2004. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 49 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. Managing $100 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. Distributed by NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 | www.nuveen.com ESA-E-0404D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable at this time. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable at this time. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. In the event of a vacancy on the Board, the nominating and governance committee receives suggestions from various sources, including shareholders, as to suitable candidates. Suggestions should be sent in writing to Lorna Ferguson, Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive, Chicago, IL 60606. The nominating and governance committee sets appropriate standards and requirements for nominations for new directors and reserves the right to interview all candidates and to make the final selection of any new directors. ITEM 10. 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 registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable at this time. (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 4, Inc. ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: July 8, 2004 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (Principal Executive Officer) Date: July 8, 2004 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (Principal Financial Officer) Date: July 8, 2004 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.