SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549SCHEDULE 13D
Under the Securities Exchange Act of 1934Nuveen Premium Income Municipal Fund 2 (NPM)
(Name of Issuer)Municipal Auction Rate Cumulative Preferred Shares
(Title of Class of Securities)67063W201
67063W300
67063W409
67063W508
67063W607
67063W706
67063W805
67063W854
67063W862
67063W870
67063W888
(CUSIP Number)George W. Karpus, President
Karpus Management, Inc.,
d/b/a Karpus Investment Management
183 Sully's Trail
Pittsford, New York 14534
(585) 586-4680
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)August 4, 2010
(Date of Event which Requires Filing of this Statement)If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D,
and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or
240.13d-1(g), check the following box.
CUSIP No.: 67063W201; 67063W300; 67063W409; 67063W508; 67063W607; 67063W706; 67063W805; 67063W854; 67063W862; 67063W870; 67063W888
1. Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only).Karpus Management, Inc., d/b/a Karpus Investment Management
I.D. #16-1290558
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b) X
3. SEC Use Only
4. Source of Funds (See Instructions)AF
5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)N/A
6. Citizenship or Place of OrganizationNew York
Number of Shares Beneficially Owned by Each reporting Person With:
- 7. Sole Voting Power2198. Shared Voting PowerN/A9. Sole Dispositive Power21910. Shared Dispositive PowerN/A
11. Aggregate Amount Beneficially Owned by Each Reporting Person219
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)N/A
13. Percent of Class Represented by Amount in Row (11)1.12%*
14. Type of Reporting Person (See Instructions)IA
*Item 13, above, is calculated based on the aggregate amount of 19,501 outstanding Municipal Auction Rate Cumulative Preferred Shares indicated by the Issuer's form N-CSR filed with the U.S. Securities and Exchange Commission on June 8, 2010 dated as of April 30, 2010.
Item 1. Security and Issuer.
Nuveen Premium Income Municipal Fund 2Nuveen Funds
333 West Wacker Drive
Chicago, IL 60606Item 2. Identity and Background.(a) Karpus Management, Inc., d/b/a Karpus Investment Management (“KIM”), George W. Karpus, President, Director and controlling stockholder, Jo Ann Van Degriff, Partner Emeritus.(b) The address of KIM’s principal place of business and principal office is: 183 Sully’s Trail, Pittsford, New York 14534.(c) Principal business and occupation - Investment management for individuals, pension plans, profit sharing plans, corporations, endowments, trusts and others.(d) None of the Principals, George W. Karpus, Jo Ann Van Degriff (the “Principals”) or KIM has been convicted in the past 5 years of any criminal proceeding (excluding traffic violations).(e) During the last 5 years none of the Principals or KIM has been a party to a civil proceeding as a result of which any of them is subject to a judgment, decree, or final order enjoining future violations of or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.(f) Each of the Principals is a United States citizen. KIM is a New York corporation.Item 3. Source and Amount of Funds or Other Considerations.KIM, an independent investment advisor, has accumulated 219 shares of NPM Municipal Auction Rate Cumulative Preferred Shares on behalf of accounts that are managed by KIM (the “Accounts”) under limited powers of attorney, which represents 1.12% of the outstanding shares. All funds that have been utilized in making such purchases are from such Accounts.Item 4. Purpose of Transaction.KIM has purchased Shares for the Accounts for investment purposes. However, KIM reserves the right to contact management with regard to concerns that they have with respect to the Fund. This may include letters to the Board and/or other communications with Fund management. Being an independent registered investment advisor, with a specialty focus in closed end funds, the profile of the NPM Municipal Auction Rate Cumulative Preferred Shares fits the investment guidelines for various Accounts. Shares have been acquired since January 5, 2009.Item 5. Interest in Securities of the Issuer.(a) As of the date of this Report, KIM represents beneficial ownership of 219 shares or 1.12% of the outstanding shares. George W. Karpus presently owns 2 shares. Mr. Karpus purchased 2 shares on October 15, 2009 at $22,000. JoAnn Van Degriff presently owns 1 share. Mrs. Van Degriff purchased 1 share on January 5, 2009 at $16,875. None of the other principals of KIM presently own shares of NPM Municipal Auction Rate Cumulative Preferred Shares.(b) KIM has the sole power to dispose of and to vote all of such Shares under limited powers of attorney.(c) Open market purchases for the last 60 days for the Accounts. There have been no dispositions and no acquisitions, other than by such open market purchases: