UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement.
[ ] CONFIDENTIAL, FOR USE OF THE COMMISSION ONLY (AS PERMITTED BY
RULE 14a-6(e)(2)).
[X] Definitive Proxy Statement.
[ ] Definitive Additional Materials.
[ ] Soliciting Material Pursuant to Section 240.14A-11(c) or Section 240.14a-12
NUVEEN INVESTMENT TRUST
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement if other than the Registrant)
Payment of Filing Fee (check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
1) Title of each class of securities to which transaction applies:
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2) Aggregate number of securities to which transaction applies:
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3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
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4) Proposed maximum aggregate value of transaction:
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5) Total fee paid:
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[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
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2) Form, Schedule or Registration Statement No.:
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3) Filing Party:
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4) Date Filed:
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IMPORTANT NOTICE
TO FUND SHAREHOLDERS
JUNE 16, 2005JULY 14, 2006
Although we recommend that you read the complete Proxy Statement, for your
convenience, we have provided a brief overview of the issues to be voted on.
Q. WHY AM I RECEIVING THIS PROXY STATEMENT?
A. PursuantYou are receiving this Proxy Statement because you are being asked to
anapprove a new investment managementsub-advisory agreement betweenfor your Fund andbetween
Nuveen Asset Management ("NAM" or the "Adviser"), NAM has served as your Fund's investment adviser and has been responsible for the overall investment strategy of your Fund. In
addition, for certain Funds, NAM entered into an investment sub-advisory
agreement pursuant to which a sub-adviser was retained to furnish investment
advisory services to the Fund. NAM is a wholly-owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"). Nuveen is a publicly traded company and, until
recently, was a majority-owned subsidiary of The St. Paul Travelers
Companies, Inc. ("St. Paul Travelers").
As part of St. Paul Travelers' previously announced three-part program to
sell its entire equity interest in Nuveen (the "Sale"), St. Paul Travelers
sold 39.3 million shares of Nuveen through a secondary public offering on
April 12, 2005. Nuveen also repurchased $600 million of its shares from St.
Paul Travelers. The repurchase of these shares is being completed through two
steps -- a $200 million repurchase that closed on April 12, 2005, and a $400
million forward purchase (plus interest) that will settle later this year.
Finally, St. Paul Travelers also entered into an agreement with two other
parties to sell approximately 12 million common shares of Nuveen for
settlement later this year. After completion of the Sale, Nuveen will emerge
as a fully independent public company.
Upon completion of the Sale, the investment management agreement between your
Fund and NAM and, for certain Funds, the sub-advisory agreement between NAM
and the sub-adviser may be terminated. In order for NAM and the sub-advisers
to continue to serve as investment adviser and sub-adviser after the
completion of the Sale, the shareholders of your Fund must approve a new
investment management agreement and, if applicable, a new sub-advisory
agreement.Institutional
Capital LLC.
The enclosed Proxy Statement gives youprovides additional information on the
proposed new investment management agreement and new sub-advisory agreement, as well as certain other
matters. The Board of Trustees of each
Fund (the "Board," and each Trustee, a "Board Member"), including those Board
Members who are not affiliated with NAM or any sub-adviser, unanimously
recommend that you vote FOR the approval of the new investment management
agreement and new sub-advisory agreement, if applicable, for your Fund.
In addition, your Fund is seeking shareholder approval to elect Board Members
to serve on your Fund's Board. The Board Members of your Fund unanimously
recommend that you vote FOR the nominees for the Board. Please refer to the Proxy Statement for a detailed explanation
of the itemsproposal on which you are being asked to vote on.
vote.
Q. WHY IS A VOTE ON THE PROPOSED NEW INVESTMENT MANAGEMENT AGREEMENT AND
SUB-ADVISORY AGREEMENT REQUIRED?
A. In May 2006, Institutional Capital Corporation, the current investment
sub-adviser to the Funds, announced that it had entered into a merger
agreement with New York Life Investment Holdings LLC ("NYLIM Holdings"),
pursuant to which Institutional Capital Corporation would become a
wholly-owned subsidiary of NYLIM Holdings (the "Transaction"). NYLIM
Holdings is a subsidiary of New York Life Insurance Company. The
completionTransaction was consummated on or about June 30, 2006, and after that
date, Institutional Capital Corporation became Institutional Capital LLC.
The portfolio managers and key personnel of Institutional Capital LLC
after the Transaction will be the same individuals who served in those
capacities for Institutional Capital Corporation before the Transaction.
Institutional Capital Corporation and Institutional Capital LLC are
referred to herein collectively as "ICAP."
The sub-advisory agreement between NAM and ICAP in effect prior to the
date of the Sale could be deemed to be anTransaction ("original sub-advisory agreement") provided for
the automatic termination of the agreement upon its "assignment," as that
term is defined in the Investment Company Act of 1940, as amended ("1940
Act"), of the
investment management agreement between each Fund and NAM and (for certain of
the Funds) the sub-advisory agreement between NAM and each such Fund's
sub-adviser. As required by. Under the 1940 Act, under its terms, eacha change in control of an investment management agreementcompany's
sub-adviser is deemed to cause an "assignment" of a sub-advisory
agreement. The Transaction caused a change in control of ICAP and,
accordingly, was deemed to have caused an "assignment" of the original
sub-advisory agreement would automatically terminate
in the event of its assignment.agreement. As a result, the original sub-advisory agreement
was automatically terminated as of the date of the Transaction. ICAP
currently serves as sub-adviser to your Fund pursuant to an interim sub-
advisory agreement approved by the Board of Trustees at a meeting held in
May 2006. The interim sub-advisory agreement lasts until the new sub-
advisory agreement is approved by shareholders, but in no case for a
period longer than 150 days. Therefore, shareholder approval of athe new
investment management agreement and, if applicable, a new sub-advisory agreement willis required in order to permit NAM and eachICAP to
serve as investment sub-adviser to continue to serve your Fund.Fund on more than an interim
basis.
Q. WHAT WILL HAPPEN IF SHAREHOLDERS DO NOT APPROVE THE NEW INVESTMENT
MANAGEMENT AGREEMENT OR SUB-ADVISORY
AGREEMENT?
A. If the new investment management agreement or sub-advisory agreement is not approved, your Fund's
Board will take such actions as it deems to be in the best interests of
your Fund. This is discussed in more detail in the Proxy Statement.
Q. HOW WILL THE SALETRANSACTION AFFECT ME AS A FUND SHAREHOLDER?
A. Your investment in your Fund will not change as a result of the
Sale.Transaction. You will still own the same shares in the Fund, and the
value of your investment will not change as a result of the Sale.Transaction.
The new investment management
agreement and sub-advisory agreement, if approved by shareholders, will still
be with NAM and the same sub-adviserICAP and the terms of the new investment management agreement and sub-advisory agreement are
substantially identicalsimilar to the terms of the original investment management agreement and sub-advisory
agreement. In addition, the portfolio managers of your Fund will not
change as a result of the new investment management agreement and
sub-advisory agreement.
Q. WILL THE INVESTMENT MANAGEMENT AND SUB-ADVISORY FEE RATES BE THE SAME UPON THE APPROVAL OF THE NEW
INVESTMENT MANAGEMENT AGREEMENT AND
SUB-ADVISORY AGREEMENT?
A. Yes, the investment management and sub-advisory fee rates will remain the same.
Q. HOW DO THE BOARD MEMBERS SUGGEST THAT I VOTE IN CONNECTION WITH THE NEW
INVESTMENT MANAGEMENT AGREEMENT AND SUB-ADVISORY AGREEMENT?
A. After careful consideration, the Board of your Fund unanimously
recommends that you vote "FOR" the approval of the new investment management agreement
and sub-advisory
agreement.
Q. HOW DO THE BOARD MEMBERS SUGGEST THAT I VOTE IN CONNECTION WITH THE
ELECTION OF BOARD MEMBERS?
A. After careful consideration, the Board of your Fund unanimously recommends
that you vote "FOR" the nominees for the Board.
Q. WILL MY VOTE MAKE A DIFFERENCE?
A. Your vote is needed to ensure that the proposalsproposal can be acted upon.
Additionally, your immediate response will help save on the costs of any
future solicitations for these shareholder votes. We encourage all
shareholders to participate in the governance of their Fund.
Q. WHO DO I CALL IF I HAVE QUESTIONS?
A. If you need any assistance, or have any questions regarding the proposalsproposal
or how to vote your shares, please call your financial advisor.
Alternatively, you may call Nuveen at (800) 257-8787 weekdays from 8:00
a.m. to 6:00 p.m. Central time.
Q. HOW DO I VOTE MY SHARES?
A. You can vote your shares by completing and signing the enclosed proxy
card, and mailing it in the enclosed postage-paid envelope.
Alternatively, you may vote by telephone by calling the toll-free number
on the proxy card or by computer by going to the Internet address
provided on the proxy card and following the instructions, using your
proxy card as a guide.
Q. WILL ANYONE CONTACT ME?
A. You may receive a call to verify that you received your proxy materials,
to answer any questions you may have about the proposalsproposal and to encourage
you to vote.
NOTICE OF SPECIAL MEETING 333 West Wacker
Drive
OF SHAREHOLDERS Drive
AUGUST 25, 2006 Chicago, Illinois
JULY 26, 2005
60606
(800) 257-8787
JUNE 16, 2005
NUVEEN MULTISTATE TRUST I
NUVEEN ARIZONA MUNICIPAL BOND FUND
NUVEEN COLORADO MUNICIPAL BOND FUND
NUVEEN FLORIDA MUNICIPAL BOND FUND
NUVEEN MARYLAND MUNICIPAL BOND FUND
NUVEEN NEW MEXICO MUNICIPAL BOND FUND
NUVEEN PENNSYLVANIA MUNICIPAL BOND FUND
NUVEEN VIRGINIA MUNICIPAL BOND FUND
NUVEEN MULTISTATE TRUST II
NUVEEN CALIFORNIA MUNICIPAL BOND FUND
NUVEEN CALIFORNIA INSURED MUNICIPAL BOND FUND
NUVEEN CONNECTICUT MUNICIPAL BOND FUND
NUVEEN MASSACHUSETTS MUNICIPAL BOND FUND
NUVEEN MASSACHUSETTS INSURED MUNICIPAL BOND FUND
NUVEEN NEW JERSEY MUNICIPAL BOND FUND
NUVEEN NEW YORK MUNICIPAL BOND FUND
NUVEEN NEW YORK INSURED MUNICIPAL BOND FUND
NUVEEN MULTISTATE TRUST III
NUVEEN GEORGIA MUNICIPAL BOND FUND
NUVEEN LOUISIANA MUNICIPAL BOND FUND
NUVEEN NORTH CAROLINA MUNICIPAL BOND FUND
NUVEEN TENNESSEE MUNICIPAL BOND FUND
NUVEEN MULTISTATE TRUST IV
NUVEEN KANSAS MUNICIPAL BOND FUND
NUVEEN KENTUCKY MUNICIPAL BOND FUND
NUVEEN MICHIGAN MUNICIPAL BOND FUND
NUVEEN MISSOURI MUNICIPAL BOND FUND
NUVEEN OHIO MUNICIPAL BOND FUND
NUVEEN WISCONSIN MUNICIPAL BOND FUND
NUVEEN MUNICIPAL TRUST
NUVEEN ALL-AMERICAN MUNICIPAL BOND FUND
NUVEEN HIGH YIELD MUNICIPAL BOND FUND
NUVEEN INSURED MUNICIPAL BOND FUND
NUVEEN INTERMEDIATE DURATION MUNICIPAL BOND FUND
NUVEEN LIMITED TERM MUNICIPAL BOND FUNDJULY 14, 2006
NUVEEN INVESTMENT TRUST
NUVEEN BALANCED STOCK AND BOND FUND
NUVEEN BALANCED MUNICIPAL AND STOCK FUND
NUVEEN LARGE-CAP VALUE FUND
NUVEEN NWQ MULTI-CAP VALUE FUND
NUVEEN INVESTMENT TRUST II
NUVEEN RITTENHOUSE GROWTH FUND
NUVEEN NWQ INTERNATIONAL VALUE FUND
Nuveen Balanced Stock and Bond Fund
Nuveen Balanced Municipal and Stock Fund
Nuveen Large-Cap Value Fund
TO THE SHAREHOLDERS OF THE ABOVE FUNDS:
Notice is hereby given that a Special Meeting of Shareholders (the "Meeting") of
Nuveen MultistateInvestment Trust, I, on behalf of its series Nuveen Arizona Municipal Bond
Fund, Nuveen Colorado Municipal Bond Fund, Nuveen Florida Municipal Bond Fund,
Nuveen Maryland Municipal Bond Fund, Nuveen New Mexico Municipal Bond Fund,
Nuveen Pennsylvania Municipal Bond Fund and Nuveen Virginia Municipal Bond Fund;
Nuveen Multistate Trust II, on behalf of its series Nuveen California Municipal
Bond Fund, Nuveen California Insured Municipal Bond Fund, Nuveen Connecticut
Municipal Bond Fund, Nuveena Massachusetts Municipal Bond Fund, Nuveen
Massachusetts Insured Municipal Bond Fund, Nuveen New Jersey Municipal Bond
Fund, Nuveen New York Municipal Bond Fund and Nuveen New York Insured Municipal
Bond Fund; Nuveen Multistate Trust III, on behalf of its series Nuveen Georgia
Municipal Bond Fund, Nuveen Louisiana Municipal Bond Fund; Nuveen North Carolina
Municipal Bond Fund and Nuveen Tennessee Municipal Bond Fund; Nuveen Multistate
Trust IV, on behalf of its series Nuveen Kansas Municipal Bond Fund, Nuveen
Kentucky Municipal Bond Fund, Nuveen Michigan Municipal Bond Fund, Nuveen
Missouri Municipal Bond Fund, Nuveen Ohio Municipal Bond Fund and Nuveen
Wisconsin Municipal Bond Fund; Nuveen Municipal Trust, on behalf of its series
Nuveen All-American Municipal Bond Fund, Nuveen High Yield Municipal Bond Fund,
Nuveen Insured Municipal Bond Fund, Nuveen Intermediate Duration Municipal Bond
Fund and Nuveen Limited Term Municipal Bond Fund; Nuveen Investment Trust,business trust (the "Trust"), on behalf
of its series Nuveen Balanced Stock and Bond Fund ("Balanced Stock and Bond"),
Nuveen Balanced Municipal and Stock Fund ("Balanced Municipal and Stock"), and
Nuveen Large-Cap Value Fund ("Large-Cap Value") and Nuveen NWQ
Multi-Cap Value Fund ("NWQ Multi-Cap Value"); and Nuveen Investment Trust II, on
behalf of its series Nuveen Rittenhouse Growth Fund ("Rittenhouse Growth") and
Nuveen NWQ International Value Fund ("NWQ International Value"), each a
Massachusetts business trust (each trust individually, a "Trust" and
collectively, the "Trusts" and each series individually,(individually, a "Fund" and
collectively, the "Funds"), will be held (along with the meeting of shareholders
of several other Nuveen funds) in the Assembly Room31st floor conference room of
The Northern Trust
Company, 50 South LaSalle Street,Nuveen Investments, 333 West Wacker Drive, Chicago, Illinois 60675,60606, on Tuesday, July 26,
2005,Friday,
August 25, 2006, at 10:9:30 a.m., Chicago time, for the following purposespurpose and to
transact such other business, if any, as may properly come before the Meeting:
MATTERS TO BE VOTED ON BY SHAREHOLDERS:
1. To approve a new investment managementsub-advisory agreement between each Trust and Nuveen Asset
Management, ("NAM"), each Fund's investment adviser.
2. To approve a new sub-advisory agreement between NAM and each sub-adviser
below:
a. (For shareholders of Balanced Stock and Bond, Balanced Municipal and
Stock and Large-Cap Value only) to approve a new sub-advisory agreement
between NAMadviser, and Institutional Capital Corporation;
b. (For shareholders of NWQ Multi-Cap Value and NWQ International Value
only) to approve a new sub-advisory agreement between NAM and NWQ
Investment Management Company, LLC; and
c. (For shareholders of Rittenhouse Growth) to approve a new sub-advisory
agreement between NAM and Rittenhouse Asset Management, Inc.
3. To elect nine (9) Trustees to the Board of Trustees (each, a "Board" andLLC,
each Trustee, a "Board Member") of each Trust to serve until their successors
shall have been duly elected and qualified.
4.Fund's investment sub-adviser.
2. To transact such other business as may properly come before the Meeting.
Shareholders of record at the close of business on May 20, 2005June 21, 2006 are entitled to
notice of and to vote at the Meeting.
ALL SHAREHOLDERS ARE CORDIALLY INVITED TO ATTEND THE MEETING. IN ORDER TO AVOID
DELAY AND ADDITIONAL EXPENSE, AND TO ASSURE THAT YOUR SHARES ARE REPRESENTED,
PLEASE VOTE AS PROMPTLY AS POSSIBLE, REGARDLESS OF WHETHER OR NOT YOU PLAN TO
ATTEND THE MEETING. YOU MAY VOTE BY MAIL, TELEPHONE OR OVER THE INTERNET. TO
VOTE BY MAIL, PLEASE MARK, SIGN, DATE AND MAIL THE ENCLOSED PROXY CARD. NO
POSTAGE IS REQUIRED IF MAILED IN THE UNITED STATES. TO VOTE BY TELEPHONE, PLEASE
CALL THE TOLL-FREE NUMBER LOCATED ON YOUR PROXY CARD AND FOLLOW THE RECORDED
INSTRUCTIONS, USING YOUR PROXY CARD AS A GUIDE. TO VOTE OVER THE INTERNET, GO TO
THE INTERNET ADDRESS PROVIDED ON YOUR PROXY CARD AND FOLLOW THE INSTRUCTIONS,
USING YOUR PROXY CARD AS A GUIDE.
Jessica R. Droeger
Vice President and Secretary
JOINT PROXY STATEMENT 333 West Wacker Drive
Chicago, Illinois 60606
(800) 257-8787
JUNE 16, 2005
NUVEEN MULTISTATE TRUST I
NUVEEN ARIZONA MUNICIPAL BOND FUND
NUVEEN COLORADO MUNICIPAL BOND FUND
NUVEEN FLORIDA MUNICIPAL BOND FUND
NUVEEN MARYLAND MUNICIPAL BOND FUND
NUVEEN NEW MEXICO MUNICIPAL BOND FUND
NUVEEN PENNSYLVANIA MUNICIPAL BOND FUND
NUVEEN VIRGINIA MUNICIPAL BOND FUND
NUVEEN MULTISTATE TRUST II
NUVEEN CALIFORNIA MUNICIPAL BOND FUND
NUVEEN CALIFORNIA INSURED MUNICIPAL BOND FUND
NUVEEN CONNECTICUT MUNICIPAL BOND FUND
NUVEEN MASSACHUSETTS MUNICIPAL BOND FUND
NUVEEN MASSACHUSETTS INSURED MUNICIPAL BOND FUND
NUVEEN NEW JERSEY MUNICIPAL BOND FUND
NUVEEN NEW YORK MUNICIPAL BOND FUND
NUVEEN NEW YORK INSURED MUNICIPAL BOND FUND
NUVEEN MULTISTATE TRUST III
NUVEEN GEORGIA MUNICIPAL BOND FUND
NUVEEN LOUISIANA MUNICIPAL BOND FUND
NUVEEN NORTH CAROLINA MUNICIPAL BOND FUND
NUVEEN TENNESSEE MUNICIPAL BOND FUND
NUVEEN MULTISTATE TRUST IV
NUVEEN KANSAS MUNICIPAL BOND FUND
NUVEEN KENTUCKY MUNICIPAL BOND FUND
NUVEEN MICHIGAN MUNICIPAL BOND FUND
NUVEEN MISSOURI MUNICIPAL BOND FUND
NUVEEN OHIO MUNICIPAL BOND FUND
NUVEEN WISCONSIN MUNICIPAL BOND FUND
NUVEEN MUNICIPAL TRUST
NUVEEN ALL-AMERICAN MUNICIPAL BOND FUND
NUVEEN HIGH YIELD MUNICIPAL BOND FUND
NUVEEN INSURED MUNICIPAL BOND FUND
NUVEEN INTERMEDIATE DURATION MUNICIPAL BOND FUND
NUVEEN LIMITED TERM MUNICIPAL BOND FUNDJULY 14, 2006
NUVEEN INVESTMENT TRUST
NUVEEN BALANCED STOCK AND BOND FUND
NUVEEN BALANCED MUNICIPAL AND STOCK FUND
NUVEEN LARGE-CAP VALUE FUND
NUVEEN NWQ MULTI-CAP VALUE FUND
NUVEEN INVESTMENT TRUST II
NUVEEN RITTENHOUSE GROWTH FUND
NUVEEN NWQ INTERNATIONAL VALUE FUND
1
Nuveen Balanced Stock and Bond Fund
Nuveen Balanced Municipal and Stock Fund
Nuveen Large-Cap Value Fund
GENERAL INFORMATION
This Joint Proxy Statement is furnished in connection with the solicitation by the
Board of Trustees (each a "Board" and collectively, the "Boards,(the "Board," and each Trustee, a "Board Member" and
collectively, the "Board Members") of Nuveen Multistate Trust I ("Multistate Trust I"), on behalf of its series Nuveen
Arizona Municipal Bond Fund ("Arizona Municipal"), Nuveen Colorado Municipal
Bond Fund ("Colorado Municipal"), Nuveen Florida Municipal Bond Fund ("Florida
Municipal"), Nuveen Maryland Municipal Bond Fund ("Maryland Municipal"), Nuveen
New Mexico Municipal Bond Fund ("New Mexico Municipal"), Nuveen Pennsylvania
Municipal Bond Fund ("Pennsylvania Municipal") and Nuveen Virginia Municipal
Bond Fund ("Virginia Municipal"); Nuveen Multistate Trust II ("Multistate Trust
II"), on behalf of its series Nuveen California Municipal Bond Fund ("California
Municipal"), Nuveen California Insured Municipal Bond Fund ("California
Insured"), Nuveen Connecticut Municipal Bond Fund ("Connecticut Municipal"),
Nuveen Massachusetts Municipal Bond Fund ("Massachusetts Municipal"), Nuveen
Massachusetts Insured Municipal Bond Fund ("Massachusetts Insured"), Nuveen New
Jersey Municipal Bond Fund ("New Jersey Municipal"), Nuveen New York Municipal
Bond Fund ("New York Municipal") and Nuveen New York Insured Municipal Bond Fund
("New York Insured"); Nuveen Multistate Trust III ("Multistate Trust III"), on
behalf of its series Nuveen Georgia Municipal Bond Fund ("Georgia Municipal"),
Nuveen Louisiana Municipal Bond Fund ("Louisiana Municipal"); Nuveen North
Carolina Municipal Bond Fund ("North Carolina Municipal") and Nuveen Tennessee
Municipal Bond Fund ("Tennessee Municipal"); Nuveen Multistate Trust IV
("Multistate Trust IV"), on behalf of its series Nuveen Kansas Municipal Bond
Fund ("Kansas Municipal"), Nuveen Kentucky Municipal Bond Fund ("Kentucky
Municipal"), Nuveen Michigan Municipal Bond Fund ("Michigan Municipal"), Nuveen
Missouri Municipal Bond Fund ("Missouri Municipal"), Nuveen Ohio Municipal Bond
Fund ("Ohio Municipal") and Nuveen Wisconsin Municipal Bond Fund ("Wisconsin
Municipal"); Nuveen Municipal Trust ("Municipal Trust"), on behalf of its series
Nuveen All-American Municipal Bond Fund ("All-American"), Nuveen High Yield
Municipal Bond Fund ("High Yield Municipal"), Nuveen Insured Municipal Bond Fund
("Insured Municipal"), Nuveen Intermediate Duration Municipal Bond Fund
("Intermediate Duration") and Nuveen Limited Term Municipal Bond Fund ("Limited
Term"); Nuveen Investment Trust, ("Investment Trust"a Massachusetts
business trust (the "Trust"), on behalf of its series Nuveen Balanced Stock and
Bond Fund ("Balanced Stock and Bond"), Nuveen Balanced Municipal and Stock Fund
("Balanced Municipal and Stock"), and Nuveen Large-Cap Value Fund ("Large-Cap
Value") and Nuveen NWQ Multi-Cap Value Fund ("NWQ
Multi-Cap Value"); and Nuveen Investment Trust II ("Investment Trust II"), on
behalf of its series Nuveen Rittenhouse Growth Fund ("Rittenhouse Growth") and
Nuveen NWQ International Value Fund ("NWQ International Value"), each a
Massachusetts business trust (each trust individually, a "Trust" and
collectively, the "Trusts" and each series individually,(individually, a "Fund" and collectively, the "Funds"), of proxies to be
voted at a Special Meeting of Shareholders to be held (along with the meeting of shareholders of several other
Nuveen funds) in the Assembly Room31st floor
conference room of The Northern Trust Company, 50 South
LaSalle Street,Nuveen Investments, 333 West Wacker Drive, Chicago, Illinois
60675,60606, on Tuesday, July 26, 2005,Friday, August 25, 2006, at 10:9:30 a.m., Chicago time (for each Trust, a(the "Meeting" and collectively, the
"Meetings"),
and at any and all adjournments thereof.
This Proxy Statement is first being mailed to shareholders on or about July 14,
2006.
Proxies are being solicited with respect to the approval of a new investment
sub-advisory agreement between Nuveen Asset Management ("NAM" or the "Adviser"),
each Fund's investment adviser, and Institutional Capital LLC, each Fund's
investment sub-adviser.
On the mattersmatter coming before eachthe Meeting as to which a choice has been specified
by shareholders on the proxy, the shares will be voted accordingly. If a proxy
is returned and no choice is specified, the shares will be voted FOR approval of the new investment management agreement, FOR the
approval of the new sub-advisory agreement, if applicable,
2
and FOR the election of the nominees as listed in this Joint Proxy Statement.agreement. Shareholders who execute proxies may
revoke them at any time before they are voted by filing with thatthe Trust a written
notice of revocation, by delivering a duly executed proxy bearing a later date
or by attending the Meeting and voting in person.
This Joint Proxy Statement is first being mailed to shareholders on or about
June 16, 2005.
The Board of each Trust has determined that the use of this Joint Proxy
Statement for each Meeting is in the best interest of each Trust and its
shareholders in light of the similar matters being considered and voted on by
the shareholders.
The following table indicates which shareholders are solicited with respect to
each matter:
PROPOSALS(1)
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APPROVE NEW
INVESTMENT APPROVE NEW
MANAGEMENT SUB-ADVISORY ELECT NINE (9)
FUND AGREEMENT AGREEMENT BOARD MEMBERS
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MULTISTATE TRUST I X
Arizona Municipal X
Colorado Municipal X
Florida Municipal X
Maryland Municipal X
New Mexico Municipal X
Pennsylvania Municipal X
Virginia Municipal X
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MULTISTATE TRUST II X
California Municipal X
California Insured X
Connecticut Municipal X
Massachusetts Municipal X
Massachusetts Insured X
New Jersey Municipal X
New York Municipal X
New York Insured X
- ------------------------------------------------------------------------------------------
MULTISTATE TRUST III X
Georgia Municipal X
Louisiana Municipal X
North Carolina Municipal X
Tennessee Municipal X
- ------------------------------------------------------------------------------------------
MULTISTATE TRUST IV X
Kansas Municipal X
Kentucky Municipal X
Michigan Municipal X
Missouri Municipal X
Ohio Municipal X
Wisconsin Municipal X
- ------------------------------------------------------------------------------------------
3
PROPOSALS(1)
- ------------------------------------------------------------------------------------------
APPROVE NEW
INVESTMENT APPROVE NEW
MANAGEMENT SUB-ADVISORY ELECT NINE (9)
FUND AGREEMENT AGREEMENT BOARD MEMBERS
- ------------------------------------------------------------------------------------------
MUNICIPAL TRUST X
All-American X
High Yield Municipal X
Insured Municipal X
Intermediate Duration X
Limited Term X
- ------------------------------------------------------------------------------------------
INVESTMENT TRUST X
Balanced Stock and Bond X X
Balanced Municipal and Stock X X
Large-Cap Value X X
NWQ Multi-Cap Value X X
- ------------------------------------------------------------------------------------------
INVESTMENT TRUST II X
Rittenhouse Growth X X
NWQ International Value X X
- ------------------------------------------------------------------------------------------
(1) Shareholders of all classes of each Fund or, in the case of the election of
Board Members, of each Trust vote together on each proposal.
A quorum of shareholders is required to take action at each Trust'sthe Meeting. A majority
of the shares entitled to vote at eachthe Meeting, represented in person or by
proxy, will constitute a quorum of shareholders at thatthe Meeting. Votes cast in
person or by proxy or in person at eachthe Meeting will be tabulated by the inspectors of
election appointed for thatthe Meeting. The inspectors of election will determine
whether or not a quorum is present at the Meeting. The inspectors of election
will treat abstentions and "broker non-votes" (i.e., shares held by brokers or
nominees, typically in "street name," as to which (i) instructions have not been
received from the beneficial owners or persons entitled to vote and (ii) the
broker or nominee does not have discretionary voting power on a particular
matter) as present for purposes of determining a quorum.
For purposes of determining the approval of the new investment management
agreement and sub-advisory agreement, abstentions and broker non-votes will be
treated as shares voted against the proposal. For purposes of determining the
approval of the proposal to elect nominees for each of the Trusts, abstentions
and broker non-votes will have no effect on the election of Board Members. The
details of the proposals to be voted on by the shareholders of each Fund and the
vote required for approval of the proposals are set forth under the description
of the proposals below.
4
Those persons who were shareholders of record at the close of business on May
20, 2005 will be entitled to one vote for each share held. As of May 20, 2005,
the shares of the Funds were issued and outstanding as follows:
CLASS OF SHARES
- -------------------------------------------------------------------------------------------------
FUND CLASS A CLASS B CLASS C CLASS R
- -------------------------------------------------------------------------------------------------
MULTISTATE TRUST I
Arizona Municipal 6,387,388.5030 441,468.3300 754,116.5030 1,442,207.3170
Colorado Municipal 3,062,807.2560 523,191.3190 478,593.5100 76,660.8130
Florida Municipal 18,659,706.8170 2,516,373.9050 2,914,284.3660 6,244,927.0120
Maryland Municipal 4,123,816.5390 1,308,150.7420 1,444,433.8930 3,749,554.2420
New Mexico Municipal 4,028,476.7690 474,539.9220 597,858.2590 84,303.6710
Pennsylvania Municipal 6,607,815.4120 1,135,314.1550 2,505,751.2240 5,233,932.3510
Virginia Municipal 14,887,177.4310 1,855,081.5640 2,166,956.6410 4,854,299.5580
- -------------------------------------------------------------------------------------------------
MULTISTATE TRUST II
California Municipal 6,705,583.2090 1,404,971.7380 1,836,540.9060 15,569,614.2990
California Insured 7,447,952.6600 1,659,130.2730 1,204,538.1400 13,320,567.2690
Connecticut Municipal 20,628,765.6280 2,640,048.0320 3,349,370.3120 338,847.6670
Massachusetts Municipal 4,951,682.7600 652,094.0950 1,063,879.3430 6,242,676.3620
Massachusetts Insured 2,024,626.6300 641,855.8440 1,078,917.8820 4,794,340.7230
New Jersey Municipal 6,961,860.9600 2,270,847.2760 2,549,788.5970 4,011,207.6480
New York Municipal 12,078,221.7510 3,132,270.4530 3,426,342.9270 12,830,867.8180
New York Insured 8,243,819.7890 2,072,842.7420 1,557,291.5880 21,881,262.5120
- -------------------------------------------------------------------------------------------------
MULTISTATE TRUST III
Georgia Municipal 10,201,592.7860 1,477,487.3020 2,402,163.3070 304,410.9720
Louisiana Municipal 7,570,361.7330 1,479,704.3880 1,212,073.7310 26,676.0420
North Carolina Municipal 16,204,724.8290 1,965,985.1060 2,587,566.4260 297,139.3830
Tennessee Municipal 23,977,297.2710 1,809,383.9580 3,835,159.9510 207,277.6060
- -------------------------------------------------------------------------------------------------
MULTISTATE TRUST IV
Kansas Municipal 9,161,763.2830 965,642.6500 2,145,979.2290 135,333.4890
Kentucky Municipal 37,792,743.9330 1,880,268.0240 4,066,730.8920 139,973.8950
Michigan Municipal 15,267,403.9170 749,498.5280 3,233,967.0790 1,993,137.9380
Missouri Municipal 20,700,217.9010 821,284.2780 1,769,006.4820 48,143.7280
Ohio Municipal 30,692,401.0850 2,202,559.0260 3,931,101.3420 11,955,079.5470
Wisconsin Municipal 3,434,862.1830 434,418.4190 453,902.8170 5,929.8580
- -------------------------------------------------------------------------------------------------
MUNICIPAL TRUST
All-American 21,472,388.7410 3,618,134.2050 6,740,076.2490 623,920.5050
High Yield Municipal 38,384,120.4560 6,768,038.0650 22,324,095.4730 4,168,951.0690
Insured Municipal 18,285,901.7270 3,638,180.7540 3,119,152.3300 55,709,185.8640
Intermediate Duration 27,630,206.7720 3,915,551.1940 7,007,098.4890 251,564,717.0440
Limited Term 45,286,675.8420 N/A 29,148,545.4510 1,705,838.2330
- -------------------------------------------------------------------------------------------------
INVESTMENT TRUST
Balanced Stock and Bond 1,236,938.9490 454,423.8110 309,887.3410 406,061.5950
Balanced Municipal and
Stock 2,384,231.0350 801,734.9090 325,284.1570 34,007.1130
Large-Cap Value 16,458,097.0200 1,897,239.3890 1,263,864.0290 867,568.8450
NWQ Multi-Cap Value 8,006,970.5670 1,516,213.9080 5,802,499.9790 3,245,426.8630
- -------------------------------------------------------------------------------------------------
INVESTMENT TRUST II
Rittenhouse Growth 2,106,993.3240 4,423,386.0400 3,434,803.4510 756,495.1810
NWQ International Value 2,038,052.5220 384,409.6530 896,664.3850 1,123,873.6780
- -------------------------------------------------------------------------------------------------
5
1. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS
BACKGROUND
Under an investment management agreement between Nuveen Asset Management ("NAM"
or the "Adviser") and each Trust (each, an "Original Investment Management
Agreement" and collectively, the "Original Investment Management Agreements"),
NAM has served as each Fund's investment adviser and has been responsible for
each Fund's overall investment strategy and its implementation. The date of each
Trust's Original Investment Management Agreement and the date on which it was
last approved by shareholders and approved for continuance by the Board is
provided in Appendix A. NAM is a wholly-owned subsidiary of Nuveen Investments,
Inc. ("Nuveen"). Nuveen is a publicly traded company and, until recently, was a
majority-owned subsidiary of The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), 385 Washington Street, St. Paul, Minnesota 55102. St. Paul is a
publicly-traded company that is principally engaged in providing
property-liability insurance through subsidiaries.
On March 25, 2005, Nuveen and St. Paul Travelers announced that St. Paul
Travelers planned to implement a three-part program to sell its equity interest
in Nuveen (the "Sale"). As part of St. Paul Travelers' previously announced
three-part divestiture program, St. Paul Travelers sold 39.3 million shares of
Nuveen's approximately 94 million outstanding common shares through a secondary
public offering on April 12, 2005. Nuveen also repurchased $600 million of its
common shares from St. Paul Travelers at a price of $32.98 per share, or
approximately 18.2 million shares. The repurchase of these shares is being
completed through two steps -- a $200 million repurchase that closed on April
12, 2005, and a $400 million forward purchase (plus interest) that will settle
later this year. St. Paul Travelers also entered into an agreement with two
other parties to sell approximately 12 million common shares of Nuveen for
settlement later this year. Upon the closing of the secondary offering and the
initial repurchase by Nuveen as well as the closing for the forward sale
transactions later this year, Nuveen will emerge as a fully independent public
company.
Each Original Investment Management Agreement, as required by Section 15 of the
Investment Company Act of 1940, as amended (the "1940 Act"), provides for its
automatic termination in the event of its "assignment" (as defined in the 1940
Act). Any change in control of the Adviser is deemed to be an assignment. The
consummation of the Sale may be deemed a change in control of the Adviser and
therefore cause the automatic termination of each Original Investment Management
Agreement, as required by the 1940 Act.
In anticipation of the Sale, each Board met in person at a joint meeting of each
Trust's Board on May 10-12, 2005 for purposes of, among other things,
considering whether it would be in the best interests of each Trust and its
shareholders to approve a new investment management agreement between the Trust
and NAM (each, a "New Investment Management Agreement" and collectively, the
"New Investment Management Agreements").
The 1940 Act requires that with respect to each Fund, the respective Trust's New
Investment Management Agreement be approved by the Fund's shareholders in order
for it to become effective with respect to that Fund. At the Board meeting, and
for the reasons discussed below (see "Board Considerations in Approving New
Investment Management Agreements and New Sub-Advisory Agreements" after Proposal
2), each Board, including a majority of the Board Members who are not parties to
the Original Investment Management
6
Agreements, New Investment Management Agreements or any sub-advisory agreement
entered into by the Adviser with respect to any Fund or who are not "interested
persons" of the Trusts or the Adviser as defined in the 1940 Act (the
"Independent Board Members"), unanimously approved the New Investment Management
Agreement and unanimously recommended its approval by shareholders in order to
assure continuity of investment advisory services to the Trust after the Sale.
In the event shareholders of a Fund do not approve the New Investment Management
Agreement, the Board will take such action as it deems to be in the best
interests of the Fund and its shareholders. The form of the New Investment
Management Agreement is attached hereto as Appendix B.
COMPARISON OF ORIGINAL INVESTMENT MANAGEMENT AGREEMENT AND NEW INVESTMENT
MANAGEMENT AGREEMENT
The terms of each New Investment Management Agreement, including fees payable to
the Adviser by each Fund thereunder, are substantially identical to those of the
Original Investment Management Agreement, except for the date of effectiveness.
There is no change in the fee rate payable by each Fund to the Adviser. If
approved by shareholders of a Fund, the New Investment Management Agreement for
the respective Trust will expire with respect to that Fund on August 1, 2006,
unless continued. Each New Investment Management Agreement will continue in
effect from year to year thereafter if such continuance is approved for the Fund
at least annually in the manner required by the 1940 Act and the rules and
regulations thereunder. Below is a comparison of certain terms of the Original
Investment Management Agreement to the terms of the New Investment Management
Agreement.
INVESTMENT MANAGEMENT SERVICES. The investment management services to be
provided by the Adviser to each Fund under the New Investment Management
Agreements will be identical to those services currently provided by the Adviser
to each Fund under the Original Investment Management Agreements. Both the
Original Investment Management Agreements and New Investment Management
Agreements provide that the Adviser shall manage the investment and reinvestment
of each Fund's assets in accordance with the Fund's investment objective and
policies and limitations and administer the Fund's affairs to the extent
requested by and subject to the supervision the Trust's Board. In addition, the
investment management services will be provided by the same Adviser personnel
under the New Investment Management Agreements as under the Original Investment
Management Agreements. The Adviser does not anticipate that the Sale will have
any adverse effect on the performance of its obligations under the New
Investment Management Agreements.
FEES. Under each Original Investment Management Agreement and New Investment
Management Agreement, the Fund pays to the Adviser an investment management fee
that consists of two components -- a fund-level component, based only on the
amount of assets within each individual Fund, and a complex-level component,
based on the aggregate managed assets (which includes assets attributable to all
types of leverage used in leveraged funds) of all Nuveen-branded closed-end and
open-end registered investment companies organized in the United States. The
investment management fee paid by each Fund equals the sum of the fund-level
component and complex-level component.
The fee schedules for the fund-level component and complex-level component to be
paid to the Adviser under the New Investment Management Agreements are identical
to the
7
fund-level component and complex-level component paid to the Adviser under the
Original Investment Management Agreements. The annual fund-level component for
each Fund under the Original Investment Management Agreements and the New
Investment Management Agreements, the fees paid by each Fund to the Adviser
during each Fund's last fiscal year and the Fund's net assets as of May 1, 2005
are set forth in Appendix C to this Proxy Statement. The fee schedule for the
complex-level component is the same for each Fund under both the Original
Investment Management Agreements and New Investment Management Agreements and is
also set forth in Appendix C.
PAYMENT OF EXPENSES. Under each Original Investment Management Agreement and
each New Investment Management Agreement, the Adviser shall furnish, at its own
cost, office facilities and equipment and clerical, bookkeeping and
administrative services (other than such services, if any, provided by the
Trust's custodian, transfer agent and shareholder service agent, and the like)
for the Trust.
LIMITATION ON LIABILITY. The Original Investment Management Agreements and New
Investment Management Agreements provide that the Adviser will not be liable for
any loss sustained by reason of the purchase, sale or retention of any security,
whether or not such purchase, sale or retention shall have been based upon the
investigation and research made by any other individual, firm or corporation, if
such recommendation shall have been selected with due care and in good faith,
except loss resulting from willful misfeasance, bad faith or gross negligence on
the part of the Adviser in the performance of its obligations and duties, or by
reason of its reckless disregard of its obligations and duties under the
Agreement.
CONTINUANCE. The Original Investment Management Agreement of each Trust
originally was in effect for an initial term and could be continued thereafter
for successive one-year periods if such continuance was specifically approved at
least annually in the manner required by the 1940 Act. If the shareholders of a
Fund approve the New Investment Management Agreement for that Fund, the New
Investment Management Agreement with respect to that Fund will expire on August
1, 2006, unless continued. The New Investment Management Agreement may be
continued for successive one-year periods if approved at least annually in the
manner required by the 1940 Act.
TERMINATION. The Original Investment Management Agreement and New Investment
Management Agreement for each Trust provide that the Agreement may be terminated
at any time without the payment of any penalty by the Trust or Adviser on sixty
(60) days' written notice to the other party. A Trust may effect termination by
action of the Board or with respect to any Fund by vote of a majority of the
outstanding voting securities of that Fund, accompanied by appropriate notice.
INFORMATION ABOUT THE ADVISER
NAM, a registered investment adviser, is a wholly-owned subsidiary of Nuveen.
Founded in 1898, Nuveen and its affiliates had approximately $119 billion in
assets under management as of March 31, 2005. Nuveen is a publicly traded
company and is listed on the New York Stock Exchange and trades under the symbol
"JNC."
The principal occupation of the officers and directors of NAM who serve as
officers or Board Members of the Trusts appears below under the headings "Board
Nominees/Board
8
Members" and "The Officers." Information for the remaining officers and
directors of NAM is shown in Appendix D. The business address of NAM, Nuveen and
each principal executive officer and director of NAM is 333 West Wacker Drive,
Chicago, Illinois 60606.
Board Member Schwertfeger sold 330,950 shares of Class A Stock of Nuveen on the
New York Stock Exchange since June 1, 2003. Mr. Schwertfeger received $9,483,036
in exchange for his shares of Nuveen sold.
SHAREHOLDER APPROVAL
To become effective with respect to a particular Fund, the New Investment
Management Agreement must be approved by a vote of a majority of the outstanding voting securities of
the Fund with all classes voting together.will be required for the approval of the new sub-advisory agreement.
The "vote of a majority of the outstanding voting securities" is defined in the
Investment Company Act of 1940, Actas amended,
1
(the "1940 Act") as the lesser of the vote of (i) 67% or more of the shares of
the Fund entitled to vote thereon present at the meetingMeeting if the holders of more
than 50% of such outstanding shares are present in person or represented by
proxy; or (ii) more than 50% of such outstanding shares of the Fund entitled to
vote thereon.
Each
New Investment Management Agreement was approved byFor purposes of determining the Boardapproval of the respective
Trustnew sub-advisory agreement,
abstentions and broker non-votes will have the effect of a vote against the new
sub-advisory agreement. The details of the proposal to be voted on behalfare set forth
below.
Those persons who were shareholders of record at the close of business on June
21, 2006 will be entitled to one vote for each share held or a proportionate
fractional vote for each fractional share held. As of June 21, 2006, the shares
of the Funds after consideration of all factors which it
determined to be relevant to its deliberations, including those discussed below.
The Board of each Trust also determined to submit the Trust's New Investment
Management Agreement for consideration by the shareholders of the Trust.
THE BOARD OF EACH TRUST UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS OF THE TRUST
VOTE FOR APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT.
2.were issued and outstanding as follows:
- ------------------------------------------------------------------------------------
CLASS OF SHARES
-------------------------------------------------------------
FUND CLASS A CLASS B CLASS C CLASS R
- ------------------------------------------------------------------------------------
Balanced Stock and
Bond 1,211,557.8720 321,544.0840 288,638.7850 362,697.9710
Balanced Municipal and
Stock 2,433,078.5590 422,870.5140 315,699.6660 49,755.1960
Large-Cap Value 16,210,992.0160 1,020,270.5850 1,082,173.6360 940,510.7460
- ------------------------------------------------------------------------------------
1. APPROVAL OF THE NEW SUB-ADVISORY AGREEMENTSAGREEMENT
BACKGROUND
NAM previously entered into an investment sub-advisory agreement (each, an "Original
Sub-Advisory Agreement" and collectively, the "Original Sub-Advisory
Agreements") with respect to certain Funds (each, a "Sub-Advised Fund" and
collectively, the "Sub-Advised Funds") with various sub-advisers (each, a
"Sub-Adviser" and collectively, the "Sub-Advisers") as set forth below:
SUB-ADVISED FUND SUB-ADVISER
- ---------------------------------------------------------------------------
INVESTMENT TRUST
Balanced Stock and Bond ICAP(1)
Balanced Municipal and Stock ICAP(2)
Large-Cap Value ICAP
NWQ Multi-Cap NWQ(3)
INVESTMENT TRUST II
NWQ International Value NWQ
Rittenhouse Growth Rittenhouse(4)
- ---------------------------------------------------------------------------
(1) "ICAP" is
Institutional Capital Corporation.
(2) ICAP is the sub-adviser onlyCorporation with respect to the Fund's equity investments.
(3) "NWQ"Funds. The sub-advisory
agreement between NAM and Institutional Capital Corporation in effect prior to
the date of the Transaction (as defined below) is NWQ Investment Management Company, LLC.
(4) "Rittenhouse" is Rittenhouse Asset Management, Inc.
9
referred to as the "Original
Sub-Advisory Agreement." The date of eachthe Original Sub-Advisory Agreement and the
date it was last approved by shareholders and approved for continuance by the
Board is provided in Appendix E.
AsA.
On May 18, 2006, Institutional Capital Corporation signed a definitive merger
agreement with the OriginalNew York Life Investment Management Agreements, eachHoldings LLC ("NYLIM
Holdings"), a subsidiary of New York Life Insurance Company, under which it
became a wholly-owned subsidiary of NYLIM Holdings (the "Transaction"). The
Transaction was consummated on or about June 30, 2006. As a result of the
Transaction, Institutional Capital Corporation became Institutional Capital LLC,
a Delaware limited liability company. The new ownership structure resulting from
the Transaction will not result in any significant changes for existing
shareholders of the Funds. The portfolio managers and key personnel of
Institutional Capital LLC after the Transaction will be the same individuals who
served in those capacities for Institutional Capital Corporation before the
Transaction. Institutional Capital Corporation and Institutional Capital LLC are
referred to herein collectively as "ICAP."
The Original Sub-Advisory Agreement, as required by Section 15 of the 1940 Act,
providesprovided for its automatic termination upon its "assignment," as that term is
defined in the event of its assignment. A change in control of1940 Act. Under the investment adviser or sub-adviser is deemed to be an assignment. The
completion of the Sale may be deemed1940 Act, a change in control of NAM and therefore
may bean
investment company's sub-adviser is deemed to cause an assignment"assignment" of each Original Sub-Advisory Agreement resulting in
its automatic termination, as required by the 1940 Act. In addition, for NWQ and
Rittenhouse, which are majority-owned subsidiaries of Nuveen, the completion of
the Sale may be deemeda sub-
advisory agreement. The Transaction caused a change in control of
NWQ2
ICAP and, Rittenhouse and therefore
may beaccordingly, was deemed to have caused an assignment of eachthe Original
Sub-Advisory Agreement. As a result, the Original Sub-Advisory Agreement resulting in
its automatic termination,was
automatically terminated as required byof the 1940 Act.date of the Transaction.
In anticipation of the Sale,Transaction, the Board of each Sub-Advised Fund met in person on May 10-12, 200523, 2006 for
purposespurpose of considering whether it would be in the best interests of each Sub-Advised Fund
and its shareholders to approve a new sub-advisory agreement between NAM and
the respective Sub-Adviser (each aICAP (the "New Sub-Advisory Agreement" and collectively, the "New Sub-Advisory Agreements"). At its May 23, 2006 meeting, the Board
initially approved an interim sub-advisory agreement between NAM and ICAP (the
"Interim Sub-Advisory Agreement") to become effective upon the termination of
the Original Sub-Advisory Agreement and to continue until shareholders approve
the New Sub-Advisory Agreement, but in no case having a duration greater than
150 days from the termination of the Original Sub-Advisory Agreement. ICAP
currently serves as sub-adviser to each Fund pursuant to the Interim Sub-
Advisory Agreement. The Board determined that the scope and quality of the
services to be provided by ICAP under the Interim Sub-Advisory Agreement would
be at least equivalent to the scope and quality of the services provided by ICAP
under the Original Sub-Advisory Agreement. If approved by shareholders, the New
Sub-Advisory Agreement will become effective and the Interim Sub-Advisory
Agreement will terminate.
At its May 23, 2006 meeting, and for the reasons discussed below (see "Board
Considerations in Approving New Investment Management Agreements andthe New Sub-Advisory Agreements" after Proposal 2)Agreement"), the Board, of each Sub-Advised Fund,
including a majority of the Board Members who are not "interested persons" of
the Trust, NAM or ICAP ("Independent Board Members,Members"), unanimously determined
that the Sub-Advised Fund's New Sub-Advisory Agreement was in the best interests of theeach Fund and
its shareholders and approved the FundNAM's entering into the New Sub-Advisory
Agreement, with respect to each Fund, subject to the consummation of the Sale and approval by shareholders. The
1940 Act requires that with respect to each Sub-Advised Fund the New Sub-Advisory Agreement for that Fund be approved by that Sub-Advisedeach Fund's
shareholders in order for it to become effective with respect to thatfor each Fund. The
Board of each Sub-Advised Fund unanimously recommends that shareholders approve
the New Sub-Advisory Agreement. In the event
shareholders of a Sub-Advised Fund do not approve the New Sub-Advisory Agreement, the Board
will take such action as it deems to be in the best interests of the Sub-Advised Fund and
its shareholders. The form of the New Sub-Advisory Agreement is attached hereto
as Appendix F.B.
COMPARISON OF ORIGINALTHE SUB-ADVISORY AGREEMENT AND NEW SUB-ADVISORY AGREEMENTAGREEMENTS
The terms of eachthe New Sub-Advisory Agreement, including fees payable to the
Sub-AdviserICAP by
NAM thereunder, are substantially identicalsimilar to those of the Original Sub-Advisory
Agreement, except for the date of effectiveness. There is no change in the fee
rate payable by NAM to the Sub-Adviser.ICAP. If approved by shareholders of a Fund, the New Sub-AdvisorySub-
Advisory Agreement for the Fund will expire on August 1, 2006,2007 unless continued.
EachThe New Sub-Advisory Agreement will continue in effect from year to year
thereafter if such continuance is approved for thea Fund at least annually in the
manner required by the 1940 Act and the rules and regulations thereunder. Below
is a comparison of certain terms of the Original Sub-Advisory AgreementsAgreement and the
Interim Sub-Advisory Agreement to the terms of the New Sub-Advisory Agreements.
ADVISORY SERVICES.Agreement.
The terms of the Interim Sub-Advisory Agreement are identical to those of the
Original Sub-Advisory Agreement, except that the Interim Sub-Advisory Agreement
has a different effective date and a maximum term of 150 days and includes
certain provisions required by Rule 15a-4 under the 1940 Act. Therefore, for
purposes of comparing the Interim Sub-Advisory Agreement to the New Sub-Advisory
Agreement, the Interim Sub-Advisory Agreement will only be mentioned when its
terms differ from those of the Original Sub-Advisory Agreement.
3
Advisory Services. The advisory services to be provided by the Sub-AdviserICAP to each Sub-Advised Fund
under the New Sub-Advisory AgreementsAgreement will be identical to those advisory
services currently provided by the Sub-AdviserICAP to each
Sub-Advised Fund under the Original 10
Sub-Advisory
Agreements.Agreement. Both the Original Sub-Advisory AgreementsAgreement and New Sub-
Advisory AgreementsSub-Advisory
Agreement provide that the Sub-AdviserICAP will furnish an investment program in respect of,
make investment decisions for and place all orders for the purchase and sale of
securities for the portion of the Fund's investment portfolio allocated by the
Adviser to the Sub-Adviser,ICAP, all on behalf of the Fund and subject to supervision of the
Trust's Board and the Adviser. In performing its duties under both the Original
Sub-Advisory AgreementsAgreement and the New Sub-Advisory Agreements, the Sub-AdviserAgreement, ICAP will monitor the
Fund's investments and will comply with the provisions of the Trust's
Declaration of Trust and By-Laws and the stated investment objectives, policies
and restrictions of theeach Fund. It is not anticipated that the SaleTransaction will
have any adverse effect on the performance of a Sub-Adviser'sICAP's obligations under the New
Sub-Advisory Agreements.Agreement.
Under the Original Sub-Advisory Agreement and New Sub-Advisory Agreement with
ICAP, ICAP is engaged to provide services to the entire investment portfolio of
Large-Cap Value and Balanced Stock and Bond and the equity investments only of
Balanced Municipal and Stock.
The other Sub-Advisers are engaged to provide
services to the entire investment portfolio of the Funds they sub-advise.
BROKERAGE.Brokerage. Both the Original Sub-Advisory AgreementsAgreement and New Sub-Advisory
AgreementsAgreement authorize the Sub-AdviserICAP to select the brokers or dealers that will execute the
purchases and sales of portfolio securities for the Funds, subject to its
obligation to obtain best execution under the circumstances, which may take
account of the overall quality of brokerage and research services provided to
the Sub-Adviser.
FEES.ICAP.
Fees. Under both the Original Sub-Advisory AgreementsAgreement, the Interim Sub-Advisory
Agreement and the New Sub-Advisory Agreements,Agreement, the Adviser pays the Sub-AdviserICAP a portfolio
management fee out of the investment management fee it receives from the
respective Fund. The annual rate of the portfolio management fees payable by the
Adviser to each Sub-AdviserICAP under the New Sub-Advisory AgreementsAgreement is identical to the annual
rate of the fees paid under the Original Sub-Advisory Agreements.Agreement and the Interim
Sub-Advisory Agreement. During the term of the Interim Sub-Advisory Agreement,
investment management fees earned by ICAP will be placed in an escrow account in
accordance with Rule 15a-4(b)(2) of the 1940 Act. Shareholder approval of the
New Sub-Advisory Agreement is necessary in order for ICAP to receive the
investment advisory fees escrowed pursuant to the Interim Sub-Advisory
Agreement. In the event that the shareholders of one or more of the Funds do not
approve the New Sub-Advisory Agreement with respect to their Fund, the 1940 Act
requires that ICAP will only be entitled to receive the lesser of: (i) its
actual costs incurred in performing services under the Interim Sub-Advisory
Agreement (plus interest earned on that amount while in escrow); or (ii) the
total amount in the escrow account (plus interest earned).
The annual rate of portfolio management fees payable to each Sub-AdviserICAP under the Original
Sub-Advisory AgreementsAgreement, the Interim Sub-Advisory Agreement and the New Sub-Advisory AgreementsSub-
Advisory Agreement and the fees paid by the Adviser to each
Sub-AdviserICAP with respect to each
Sub-Advised Fund during each Sub-Advised Fund's last fiscal year is set forth in Appendix GC to this
Proxy Statement. Appendix GC also includes the advisory fee rates and net assets
of funds not included in this Proxy Statement advised by each Sub-AdviserICAP with similar
investment objectives as the FundsFunds.
Payment of Expenses. Under the Sub-Adviser sub-advises.
PAYMENT OF EXPENSES. Under each Original Sub-Advisory Agreement and New Sub-AdvisorySub-
Advisory Agreement, the Sub-AdviserICAP agrees to pay all expenses it incurs in connection with
its activities under the Agreement other than the cost of securities (including
brokerage commissions)commissions and other related expenses) purchased for the Fund.
LIMITATION ON LIABILITY.4
Limitation on Liability. The Original Sub-Advisory AgreementsAgreement and New Sub-Advisory AgreementsSub-
Advisory Agreement provide that the Sub-AdviserICAP will not be liable for, and the Adviser
will not take any action against the Sub-AdviserICAP to hold the
Sub-AdviserICAP liable for, any error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with the performance of the Sub-Adviser'sICAP's duties under the Agreement, except for a loss
resulting from willful misfeasance, bad faith or gross negligence on the part of
the Sub-AdviserICAP in the performance of its duties under the Agreement, or by reason of its
reckless disregard of its obligations and duties under the Agreement.
11
CONTINUANCE.Continuance. The Original Sub-Advisory Agreement of each Sub-Advised Fund originally was in effect for
an initial term and could be continued thereafter for successive one-year
periods if such continuance was specifically approved at least annually in the
manner required by the 1940 Act. The Interim Sub-Advisory Agreement has a term
of no more than 150 days that cannot be continued. If the shareholders of a
Sub-Advised Fundthe
Funds approve the New Sub-Advisory Agreement, for that Fund, the New Sub-Advisory Agreement
will expire on August 1, 2006,2007, unless continued. Thereafter, the New Sub-AdvisorySub-
Advisory Agreement may be continued for successive one-year periods if approved
at least annually in the manner required by the 1940 Act.
TERMINATION.Termination. The Original Sub-Advisory Agreement, the Interim Sub-Advisory
Agreement and the New Sub-Advisory Agreement for each Sub-Advised Fundthe Funds provide that the
Agreement may be terminated at any time without the payment of any penalty by
NAM on sixty (60) days' written notice to the Sub-Adviser.ICAP. The Original Sub-Advisory
Agreement, the Interim Sub-Advisory Agreement and the New Sub-Advisory Agreement
may also be terminated by a Sub-Advised Fund with respect to that Fund by action of the
Board or by a vote of a majority of the outstanding voting securities of that
Fund, accompanied by 60 days' written notice.notice for the Original and New Sub-
Advisory Agreements and 10 days' written notice for the Interim Sub-Advisory
Agreement.
The Original Sub-Advisory Agreement, the Interim Sub-Advisory Agreement and the
New Sub-Advisory Agreement for each Sub-
Advised Fundthe Funds is also terminable with respect to thata
Fund at any time without the payment of any penalty, by the Adviser, the Board
or by vote of a majority of the outstanding voting securities of that Fund in
the event that it is established by a court of competent jurisdiction that the Sub-AdviserICAP
or any of its officers or directors has taken any action that results in a
breach of the representations of the Sub-AdviserICAP set forth in the Agreement.
INFORMATION ABOUT SUB-ADVISERS
ICAP. ICAP
Institutional Capital LLC is organized as a Delaware limited liability company
and is located at 225 West Wacker Drive, Suite 2400, Chicago, Illinois 60606, manages60606.
Institutional Capital LLC is registered as an investment adviser with the entire
investment portfoliosSEC,
and was formed in 2006 as a result of Large-Cap Value and Balanced Stock and Bond, and the equity investments portion of Balanced Municipal and Stock. ICAPTransaction. Institutional Capital LLC
is an
institutionalthe successor to Institutional Capital Corporation. Institutional Capital
Corporation began providing investment management firm that was foundedservices in 1970, and hasas of
April 1, 2006, had approximately $12$14 billion in assets under managementmanagement. As
stated previously, Institutional Capital Corporation and Institutional Capital
LLC are referred to herein collectively as of June 1, 2005. Mr.
Robert H. Lyon, President, owns shares representing 51% of the voting rights of
ICAP. Nuveen owns a non-voting common stock interest in"ICAP." ICAP equalling 23%.
NWQ. NWQ, 2049 Century Park East, 4th Floor, Los Angeles, California 90067, an
affiliate of NAM, manages the investment portfolios of NWQ Multi-Cap Value and
NWQ International Value. NWQ is organized as a member-managed limited liability
company, and its sole managing member is Nuveen. NWQ has provided investmentprovides portfolio
management services to institutionsfor individuals, corporations, charitable organizations,
pooled investment vehicles, and high net worth individuals since 1982.
NWQ managed approximately $32 billion in assets as of March 31, 2005.
RITTENHOUSE. Rittenhouse, Five Radnor Corporate Center, Radnor, Pennsylvania
19087, managespension and profit-sharing plans.
After the investment portfolio of Rittenhouse Growth. Rittenhouse,Transaction, ICAP became a wholly-owned subsidiary of Nuveen, is an investment management firm with over 20
yearsNYLIM Holdings,
a financial services holding company and subsidiary of experienceNew York Life Insurance
Company. NYLIM Holdings and approximately $8 billion in assets under management as
of March 31, 2005.New York Life Insurance Company are located at 51
Madison Avenue, New York, New York
5
10010. The principal occupation of the officers and directors of each Sub-Adviser who
serve asICAP is shown
in Appendix D. No officers or Board Members of the Trusts appears below underFunds are officers or
directors of ICAP.
In connection with the headings "Board Nominees/Transaction, ICAP is relying on Section 15(f) of the 1940
Act. Section 15(f) provides in substance that when a sale of a controlling
interest in an investment adviser occurs, the investment adviser or any of its
affiliated persons may receive any amount or benefit in connection with the sale
so long as two conditions are satisfied. The first condition of Section 15(f) is
that during the three-year period following the consummation of a transaction,
at least 75% of the investment company's board of directors must not be
"interested persons" (as defined in the 1940 Act) of the investment adviser or
predecessor adviser. The Trust's Board Members" and "The Officers." Informationcurrently meets this test. Second, an
"unfair burden" must not be imposed on the investment company as a result of the
transaction relating to the sale of such interest, or any express or implied
terms, conditions or understandings applicable thereto. The term "unfair burden"
(as defined in the 1940 Act) includes any arrangement during the two-year period
after the transaction whereby the investment adviser (or predecessor or
successor adviser), or any "interested person" (as defined in the 1940 Act) of
such an adviser, receives or is entitled to receive any compensation, directly
or indirectly, from the investment company or its security holders (other than
fees for bona fide investment advisory or other services) or from any person in
connection with the purchase or sale of securities or other property to, from or
on behalf of the investment company (other than bona fide ordinary compensation
as principal underwriter for the remaining officers and directorsinvestment company). In order not to place an
unfair burden on the Funds as a result of each Sub-Adviser is shown in Appendix H.
12
the Transaction, ICAP will be
responsible for any costs to the Funds attributable to the Transaction.
SHAREHOLDER APPROVAL
To become effective eachfor a Fund, the New Sub-Advisory Agreement must be approved
by a vote of a majority of the outstanding voting securities of the Fund, with
all classes voting together. The "vote of a majority of the outstanding voting
securities" is defined in the 1940 Act as the lesser of the vote of (i) 67% or
more of the shares of the Fund entitled to vote thereon present at the meeting
if the holders of more than 50% of such outstanding shares are present in person
or represented by proxy; or (ii) more than 50% of such outstanding shares of the
Fund entitled to vote thereon. EachThe New Sub-Advisory Agreement was approved by
the Board after consideration of all factors which it determined to be relevant
to its deliberations, including those discussed above.below. The Board also determined
to submit the New Sub-Advisory Agreement for consideration by the shareholders
of the Fund.
THE BOARD OF EACH SUB-ADVISED FUND UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS OF
THE FUND VOTE FOR APPROVAL OF THE FUND'S NEW SUB-ADVISORY AGREEMENT.Funds.
BOARD CONSIDERATIONS IN APPROVING NEW INVESTMENT MANAGEMENT AGREEMENTS ANDTHE NEW SUB-ADVISORY AGREEMENTSAGREEMENT
The Board is responsible for overseeing the performance of the investment
advisers to the Funds and determining whether to continue the advisory
arrangements. At a meeting held on May 10-12, 2005,23-25, 2006 (the "May Meeting"), the
Board of each Trust,the Funds, including the Independentindependent Board Members, unanimously
approved the Newcontinuance of the Investment Management Agreement between each
TrustFund and NAM and the New Sub-Advisory AgreementsAgreement between NAM and the Sub-Advisers (NAMICAP. NAM and the Sub-AdvisersICAP
are each a "Fund Adviser").Adviser."
THE APPROVAL PROCESS.PROCESS
During the course of the year, the Board received a wide variety of materials
relating the services provided by the Fund Adviser and the performance of the
Funds. To assist the Board in
6
its evaluation of anthe advisory contract with athe Fund Adviser at the IndependentMay
Meeting, the independent Board Members received a report in
adequate timeextensive materials in advance
of their meeting which outlined, among other things,things:
- the nature, extent and quality of services provided by the Fund Adviser;
- the organization and business operations of the Fund Adviser, including
the responsibilities of various departments and key personnel;
- the Fund'sFunds' past performance as well as the Fund'sFunds' performance compared to
funds of similar investment objectives compiled by an independent third
party (a "Peer
Group") as described below and if available, with recognized and/or in certain
cases, customized benchmarks;benchmarks (as appropriate);
- the profitability of the Fund Adviser and certain industry profitability
analyses for advisers to unaffiliated investment
companies;advisers;
- the expenses of the Fund Adviser in providing the various services;
- the advisory fees (gross and net management fees) and total expense
ratios of the Fund Adviser,Funds, including comparisons of such fees and expenses with
the management feesthose of comparable, unaffiliated funds in its Peer Groupbased on information and data
provided by Lipper (the "Peer Universe") as well as comparisonscompared to a subset
of funds within the Peer Universe (the "Peer Group") to the respective
Fund Adviser's management fees with(as applicable);
- the advisory fees the Fund Adviser assesses to other types of investment
products or accounts, if any;clients;
- the soft dollar practices of the Fund Adviser; and
the expenses of each Fund, including
comparisons of the Fund's expense ratios (after any fee waivers) with the
expense ratios of its Peer Group. This information supplements that received by
the Board throughout the year regarding Fund performance, expense ratios,
portfolio composition, trade execution and sales activity.
In addition to the foregoing materials,- from independent legal counsel, to the
Independent Board Members provided, in advance of the meeting, a legal memorandum outlining,describing, among
other things, the duties of the Board Members under the 1940 Act as well
as the general principles of relevant state law in reviewing and
approving advisory contracts; the requirements of the 1940 Act in such
matters; an adviser's fiduciary duty with respect to advisory agreements
and compensation; the standards used by courts in determining whether
investment company boards of directors have fulfilled their duties and
factors to be considered by the board in voting on advisory agreements.
13
At the Board meeting,May Meeting, NAM and ICAP made a presentation to and responded to
questions from the Board. In addition, the Independent Board Members noted that each
Sub-Adviser also had previously made written or oral presentations to the Board
providing the respective Sub-Adviser with the opportunity to explain its
investment strategies, discuss market conditions, and highlight any material
issues. Many of these presentations were part of site visits by the Board
throughout the year. After the presentations and after reviewing the
written materials, the Independentindependent Board Members met privately with their legal
counsel to review the Board's duties in reviewing advisory contracts and
consider the renewal of the advisory contract.contracts. It is with this background that
the Board Members considered each advisory contract (which includes the Sub-Advisory
Agreements)Sub-
Advisory Agreement) with athe Fund Adviser. The Independentindependent Board Members, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and Securities and Exchange CommissionSEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Board Members considered all factors they
believed relevant with respect to each Fund, including the following: (a) the
nature, extent and quality of the services to be provided by the Fund Adviser;
(b) the investment performance of the Fund and the Fund Adviser; (c) the costs
of the services to be provided and profits to be realized by the Fund Adviser
and its affiliates from the relationship
7
with the Fund; (d) the extent to which economies of scale would be realized as
the Fund grows; and (e) whether fee levels reflect these economies of scale for
the benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluatingreviewing the Fund Advisers, the Board Members considered the nature, extent
and quality of the respective Fund Adviser's services, theservices. The Board Members
reviewed information concerningmaterials outlining, among other things, the Fund Adviser's
organization and business; the types of services that a Fund Adviser or its
affiliates provide and are expected to provide to the Nuveen Funds; narrative and statistical information concerning
the Fund's
performance record and how such performance compares toof the Fund's
Peer Group and, if available, recognized benchmarks or, in certain cases,
customized benchmarksapplicable Fund (as described in further detail in Section B below);
information describing
and any initiatives Nuveen has taken for its mutual fund product line. In
connection with their service as Board Members, the Board Members also have a
good understanding of each Fund Adviser's organization, operations and
its various
departments, the experience and responsibilities of key personnel, and available
resources.personnel. In the discussion of key personnel,this regard, the Board Members received
materials regardingare familiar with and have
evaluated the changes or additions in personnelprofessional experience, qualifications and credentials of the
applicable Fund Adviser.Adviser's personnel. With respect to ICAP, the Board Members
also received and reviewed an evaluation of the sub-adviser from NAM. Such
evaluation outlined, among other things, ICAP's organizational history, client
base, product mix, investment team and any changes thereto, investment process
and any changes to their investment strategy, the Funds' investment objectives
and performance. The Board Members further noted that NAM recommended the willingnessrenewal of the
personnel of NAM
to engage in open, candid discussionsSub-Advisory Agreement. Given the Board Members' experience with the Board. TheFunds and
each Fund Adviser, the Board Members furtherrecognized the demonstrated history of care
and depth of experience of the respective personnel in managing these Funds. In
this regard, the Board Members considered the continued quality of the Fund
Adviser's investment process in making portfolio management decisions including anyas well as
additional refinements orand improvements adopted to the portfolio management
processes, enhancements to technology and systems that are
available to portfolio managers, and any additions of new personnel which may
strengthen or expand the research and investment capabilities of the Fund
Adviser. In their review of the advisory contracts for the fixed income funds,
the Board Members also noted that Nuveen won the Lipper Award for Best Fund
Family: Fixed Income-Large Asset Class, for 2004. Given the Board Members'
experience with the Funds, other Nuveen funds and the Fund Advisers, the Board
Members noted that they were familiar with and continue to have a good
understanding of the organization, operations and personnel of the Fund
Advisers.processes.
In addition to advisory services, the Independentindependent Board Members considered the
quality of theany administrative or non-advisory services provided. In this regard,With respect to
ICAP, the independent Board Members noted that the Sub-Advisory Agreement was
essentially an agreement for portfolio management services only and ICAP was not
expected to supply other significant administrative services to the Fund.
With respect to NAM, NAM provides the FundFunds with such administrative and other
services (exclusive of, and in addition to, any such services provided by others
for the Funds) and officers and other personnel as are necessary 14
for the
operations of the respective Fund. In addition to investmentconnection with the review of the
Investment Management Agreement, the Board Members considered the extent and
quality of these other services which include, among other things, providing:
product management services, NAM(e.g., product positioning, performance benchmarking, risk
management); fund administration (e.g., daily net asset value pricing and
its affiliates provide each Fund with a wide rangereconciliation, tax reporting, fulfilling regulatory filing requirements);
oversight of services, including: preparing shareholder reports; providing daily accounting;
providing quarterly financial statements; overseeing and coordinating the
activities of otherthird party service providers; administering andadministration of board relations
(e.g., organizing Boardboard meetings and preparing the Board materials for such meetings; providingrelated materials); compliance
(e.g., monitoring compliance with investment policies and guidelines and
regulatory requirements); and legal support (such as(e.g., helping to prepare and file
registration statements, amendments thereto,
and proxy statements and responding to
regulatory requests and/or inquiries);. As the Funds operate in a highly
regulated industry and performing
other Fund administrative tasks necessary forgiven the operationimportance of the Fund (such as
tax reporting and fulfilling regulatory filing requirements). In addition, in
evaluating the administrative services,compliance, the Board Members
considered, in particular, a Fund Adviser's policies and procedures for assuring compliance
with applicable laws and regulations in light of the new Securities and Exchange
Commission regulations governing compliance. The Board Members noted NAM's focus
on compliance and its compliance systems. In their review, the Board Members
considered, among other things, the additions of experienced personnel to NAM'sthe
compliance groupteams and modifications and otherthe enhancements to NAM's computer
systems. In additiontechnology and related systems to
support the foregoing,compliance activities for the Board Members also noted that NAM
outsources certain services that cannot be replicated without significant costs
or at the same level of expertise. Such outsourcing has beenFunds (including a beneficial and
efficient use of resources by keeping expenses low while obtaining quality
services.new reporting
system for quarterly portfolio holdings). In addition to the above, because the
Board also considered the following with respect
to Funds that utilize ICAP as a Sub-Adviser,sub-adviser, the Board Members also
8
considered NAM's ability and procedures to monitor the respective Sub-Adviser'ssub-adviser's
performance, business practices and compliance policies and procedures. In this
regard, the Board Members noted the role of NAM'senhancements in the investment oversight
committee,process, including its
increased personnel, the responsibilitiessite visits and experience of the staff, and
procedures to monitor Sub-Advisers, including the use of site visits.
With respect to services provided to the Funds that are municipal funds, the
Board Members also noted, among other things, the enhancements NAM implemented
to its municipal portfolio management processes (e.g., the increased use of
benchmarks to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipaldepartments participating in
investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments).
With respect to the Sub-Advisers, the Independent Board Members noted that the
Sub-Advisory Agreements were essentially agreements for portfolio management
services only and the respective Sub-Adviser was not expected to supply other
significant administrative services to the Funds.oversight.
Based on their review, the Board Members found that, overall, the nature, extent
and quality of services provided (and expected to be provided) to the respective
Funds under the Investment Management Agreement or Sub-Advisory Agreement, as
applicable, were of a high level and were quite satisfactory.
15
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISERS
As previously noted,The Board considered the Board received a myriad ofinvestment performance information
regardingfor each Fund, and its Peer Group, if available. Among other things,including the
Board received materials reflecting a
Fund's historic performance the Fund's
performance compared to its Peer Group if available andas well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"Performance Peer Group") and recognized and, in certain cases,and/or customized benchmarks (as
applicable). Further, inIn evaluating the performance information, in certain limited instances,
the Board Members noted that the closest Performance Peer Group for a Fund still
wouldmay not adequately reflect such Fund's investment objectives and strategies,
thereby limiting the usefulness of the comparisons of such Fund's performance
with that of the Peer Group.
With respect to national and state municipal funds, the performance data
included, among other things, such Fund's performance relative to its peers,
except as noted. More specifically, a Fund's one-, three- and five-year total
returns (as available) for the periods ending December 31, 2004 were evaluated
relative to the unaffiliated funds in its respectivePerformance Peer Group (including the
returns of individual peers as well(such as the Performance Peer Group average) as well as
additional performance information with respect to all funds inGroups of
the Peer Group,
subject to the following. Certain state municipal Funds do not have a
corresponding Peer Group in which case their performance is measured against a
state-specific municipal index compiled by an independent third party. Such
indices measure bond performance rather than fund performance. The two Funds
that utilize such indices are New MexicoBalanced Stock and Bond Fund and Balanced Municipal and Wisconsin Municipal.
Based on their review, the Board Members determined that the Fund's absolute and
relative investmentStock Fund).
In reviewing performance, over time had been satisfactory.
With respect to the non-municipal funds, the Board Members reviewed performance information
including, among other things, total return information compared with the Fund's
Performance Peer Group as well as recognized and, in some cases,and/or customized benchmarks (as
appropriate) for the one-, three- and five-year periods (as applicable) ending
December 31, 2004.2005. This information supplements the Fund performance information
provided to the Board at each of their quarterly meetings. Based on their
review, the Board Members determined that the respective Fund's absolute and
relative investment performance over time had been satisfactory, except as
noted.
Although Rittenhouse Growth's performance over certain recent periods has not
compared favorably to its peers or benchmark, its performance has seen recent
improvement. The Board Members also noted that such Fund was in the top quartile
compared to its peers for the five-year performance period ending December 31,
2004. In addition, the Board Members noted that the Rittenhouse investment team
made significant modifications to its investment approach with the introduction
of a new quality model to expand its universe of eligible investments,
restructured and added to its investment team, and further added analytical
tools to support its investment process. The Board was satisfied with
Rittenhouse's initiatives to address performance concerns.satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES.EXPENSES
In evaluating the management fees and expenses thatof a Fund, is
expected to bear, the Board Members consideredreviewed,
among other things, the Fund's currentadvisory fees (net and gross management fee
structure, the sub-advisory fee arrangements (as applicable)fees) and
the Fund's
expectedtotal expense ratios (before and after expense reimbursements and/or waivers) in
absolute terms as well as compared withcomparisons to the fees and
respective expense ratios of
16
the unaffiliated funds in its Peer Group. The Board Members reviewed the
financial information of the respective Fund Adviser, including its respective
revenues, expenses and profitability. In reviewing fees, the Board Members,
among other things, reviewed comparisons of the Fund's gross management fees (fees after fund-level and complex-wide level breakpoints but before
reimbursement and fee(before
waivers), net management fees (after breakpoints and
reimbursements and fee waivers) and total expense ratios (before
and after waivers) with thoseof comparable funds in the Peer Universe and the Peer Group.
The Board Members reviewed data regarding the construction of Peer Groups as
well as the methods of measurement for the fee and expense analysis and the
performance analysis. In certain cases, due to the small number of peers in the
Peer Universe, the Peer Universe and Peer Group may be the same. Further, the
Board Members recognized that in certain cases the closest Peer Universe and/or
Peer Group may not adequately reflect the Fund's investment objectives and
strategies limiting the usefulness of comparisons (e.g., the Balanced Stock and
Bond Fund and the Balanced Municipal and Stock Fund). In reviewing comparisons,
the Board Members also considered the size of the unaffiliated funds in itsPeer Universe and/or Peer
Group, and peer
averages.the composition of the Peer Group (including, in particular, the asset
size of the peers) as well as differing levels of fee waivers and/or expense
reimbursements. In this regard, the Board Members noted that the relative ranking of
the Nuveen Funds on fees and expenses was aided by the significant level of fee
reductions provided byconsidered the fund-level and
complex-wide breakpoint schedules (described in
9
further detail below) and theany fee waivers and reimbursements provided by Nuveen for certain Funds launched
since 1999. The complex-wide breakpoint schedule was instituted in 2004 and is
described in further detail below in Section D entitled "Economies of Scale and
Whether Fee Levels Reflect these Economies of Scale." In addition to the
foregoing, inNuveen.
Based on their review of the fee and expense information provided, for the
municipal funds, including, in particular, the expense ratios of the
unaffiliated funds in the Peer Group, the Board
Members determined that such
Funds'each Fund's net total expense ratios wereratio was within an
acceptable range compared to such
peers.
The Board Members further noted that net total expense ratios for all the
open-end equity and balanced Funds, except the NWQ International Value, were
somewhat above the peer averages. Nevertheless, the Board Members noted that
when the comparisons were made with unaffiliated funds of comparable total asset
size, such Funds were within the mid-range of that narrower Peer Group.2. COMPARISONS WITH THE FEES OF OTHER CLIENTS.CLIENTS
The Board Members further comparedreviewed data comparing the advisory fees of NAM to thewith
fees NAM or an affiliate thereof assessed for other types
of clients. With respectcharges to non-municipal funds, such other clients included(such as separate managed accounts as well asand fees
charged on funds that are not offered by Nuveen Investments but are sub-advised
by one of Nuveen's investment management teams.
With respectteams). In general, the management fees
charged for separate accounts are somewhat lower than the management fees
assessed to the municipal funds, such other clients included clients
investingFunds. The Board Members recognized that the differences in municipal funds, such as municipal managed accounts. With respectfees
are attributable to separately managed accounts or municipal managed accounts,a variety of factors, including the advisory fees
for such accounts are generally lower than those charged to the comparable Fund.differences in services
provided, product distribution, portfolio investment policies, investor
profiles, account sizes and regulatory requirements. The Board Members noted, however,in
particular, that the additionalrange of services that are provided and
the costs incurred by Nuveen in managing and operating registered investment
companies, such asto the Funds comparedis more extensive
than that provided to individually managed separate accounts. For instance, asAs described in further detail
above, NAM and its affiliates provide
numeroussuch additional services to the Funds including,include, but are not limited to, preparing
shareholder reports; providing daily accounting; preparing quarterly financial
statements; overseeingproviding:
product management, fund administration, oversight of third party service
providers, administration of board relations, and coordinating the activities of other service
providers; administering and organizing Board meetings and preparing the Board
materials for such meetings; providing legal support; and administering all
other aspects of the Fund's operations. Further, the Board Members noted the
increasedsupport. Funds further
operate in a highly regulated industry requiring extensive compliance requirements for funds in light of new Securities and
Exchange Commission regulations and other legislation. These services are
generally not requiredfunctions
compared to the same extent, if at all, for separate accounts.other investment products. In addition to the differences incosts of the
additional services, administrative costs may also be greater for the Board Members also considered,
among other things,Funds as
the average account size for separate accounts are notably larger than the
retail accounts of the Funds. Given the differences in the product distribution, investor profiles
and account sizes. Accordingly,structures,
particularly the extensive services provided to the Funds, the Board Members
believe thatsuch facts justify the nature and
numberdifferent levels of services provided to operate a Fund merit the higher fees than those
to separate managed accounts.fees.
In considering the fees of the Sub-Advisers,ICAP, the Board Members also considered the pricing
schedule the respective Sub-Adviserthat ICAP charges for similar investment management services for
17
other
fund sponsors or clients. In this regard, the Board Members noted that the sub-
advisory fees paid to it by NAM for its sub-advisory feesservices were at or below
the lowerlow end of the respective Sub-Adviser'sits fee schedule.
3. PROFITABILITY OF FUND ADVISERS.ADVISERS
In conjunction with its review of fees, the Board Members also considered the
profitability of NAMNuveen Investments (which incorporated Nuveen's wholly-owned
affiliated sub-advisers -- Rittenhousesub-advisers). The Board Members reviewed data comparing Nuveen's
profitability with other fund sponsors prepared by three independent third party
service providers as well as comparisons of the revenues, expenses and NWQ)profits
margins of various unaffiliated management firms with similar amounts of assets
under management prepared by Nuveen. The Board Members further reviewed the 2005
annual report for Nuveen Investments. In considering profitability, the Board
Members recognized the inherent limitations in determining profitability as well
as the difficulties in comparing the profitability of ICAP. The Board Members reviewedother unaffiliated
advisers. Profitability may be affected by numerous factors, including the
respective Fund
Adviser's revenues,methodology for allocating expenses, the adviser's business mix, the types of
funds managed, the adviser's capital structure and cost of capital. Further,
individual fund or product line profitability margins (on both a pre-tax and
after-tax basis). Inof other sponsors is generally not
publicly available. Accordingly, the profitability information that is publicly
available from various investment advisory or management firms may not be
representative of the industry.
Notwithstanding the foregoing, in reviewing profitability, the Board Members
recognized that
one of the most difficult issues in determining profitability is establishing a
method ofreviewed Nuveen's methodology and assumptions for allocating expenses. Accordingly, the Board Members reviewed a Fund
Adviser's assumptions and methodology of allocating expenses.expenses across
product lines to determine profitability. In this regard, the methods of
allocation used appeared reasonable butreasonable.
10
The Board Members also, to the extent available, compared Nuveen's profitability
margins (including pre- and post-marketing profit margins) with the
profitability of various unaffiliated management firms. The Board Members noted
the
inherent limitations in allocating costs among various advisory products.that Nuveen's profitability is enhanced due to its efficient internal business
model. The Board Members also recognized that individual fund or product linewhile a number of factors affect
profitability, of other advisers is generally not publicly available. Further,Nuveen's profitability may be affected by numerous factors includingchange as fee waivers and/or expense
reimbursement commitments of Nuveen to various funds in the types of funds managed,
expense allocations, business mix, etc., and therefore comparabilityNuveen complex
expire. To keep apprised of profitability is somewhat limited. Nevertheless, to the extent available,and developments that may affect
profitability, the Board Members have requested profitability analysis be
provided periodically during the year. With respect to ICAP, the Board Members
also considered the respective Fund Adviser's profit margin comparedICAP's revenues from serving as sub-adviser to the Funds,
expenses (including the basis for allocating expenses) and profitability of various publicly-traded investment management companies
and/or investment management companies that publicly disclose some or all of
their financial results compiled by three independent third-party service
providers.margins
(pre- and post-tax for the last two years). The Board Members also reviewedfurther noted that
the revenues, expensessub-advisory fee is at the low end of ICAP's fee schedule and profit
margins of various unaffiliated advisory firms with similar amounts of assets
under management for the last year prepared by NAM.is established
pursuant to arm's length negotiations. Based on their review, the Board Members
were satisfied that eachthe respective Fund Adviser's level of profitability from
its relationship with each Fund was reasonable in light of the services
provided.
In evaluating the reasonableness of the compensation, the Board Members also
considered any other revenues paid to a Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser and its
affiliates are expected to receive that are directly attributable to their
management of the Funds, if any. See Section E below for additional information.
Based on their review of the overall fee arrangements of the applicable Fund,
the Board Members determined that the advisory fees and expenses of the
respective Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
In reviewingWith respect to economies of scale, the compensation,Board Members recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Board Members have long understoodreviewed and considered the
benefits of economies of scale as the assets of a fund grows and have sought to
ensure that shareholders share in these benefits. One method for shareholders to
share in economies of scale is to include breakpoints in the advisory
fee schedules that reduce advisory fees as fundthe applicable Fund's assets grow. Accordingly, the Board Members
received and reviewed the schedules of advisory fees for each Fund, including
fund-level breakpoints thereto. In
addition to advisory fee breakpoints as assets in a respective Fund rise, after
lengthy negotiationsdiscussions with management, the Board in May, 2004also approved a complex-wide fee
arrangement pursuantthat was introduced on August 1, 2004. Pursuant to whichthe complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. The
complex-wide fee arrangement was introduced on August 1, 2004 and the Board
Members reviewed data regarding the reductions of fees for the Funds for the
period of August 1, 2004 to December 31, 2004. In
evaluating the complex-wide fee arrangement, the Board Members considered, among
other things, the historic and
18
expected fee savings to shareholders as assets
grow, the amount of fee reductions at various asset levels, and that the
arrangement would extend to all funds in the Nuveen complex. The Board Members
noted that 2005 was the first full year to reflect the fee reductions from the
complex wide fee arrangement. In this regard, the Board Members noted that
arrangement resulted in approximately $6 million in fee reductions for the funds
overseen by the Board Members. The Board Members also considered the impact, if
any, the complex-wide fee arrangement may have on the level of services
provided. Based on their review, the Board Members concluded that the breakpoint
schedule and complex-wide fee arrangement currently was acceptable and desirable
in providing benefits from economies of scale to shareholders.
11
E. INDIRECT BENEFITS
In evaluating fees, the Board Members also considered any indirect benefits or
profits the respective Fund Adviser or its affiliates may receive as a result of
its relationship with each Fund. In this regard,Fund, including any sales charges and distribution
fees received and retained by the Board Members consideredFunds' principal underwriter, Nuveen
Investments, Inc., an affiliate of NAM as well as any benefits derived from soft
dollar arrangements. The Board Members notedrecognized that althoughan affiliate of NAM
manages a large amount of assets, it has very little, if any,
brokerage to allocate. This is dueprovides distribution and shareholder services to the factFunds and their
shareholders for which it may be compensated pursuant to a 12b-1 plan. The Board
Members therefore considered the 12b-1 fees retained by Nuveen during the last
calendar year.
In addition to the above, the Board Members considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Board Members noted that NAM typically manages the
portfolios of the municipal funds in the Nuveen complex and municipal bonds
generally trade on a principal basis. Accordingly, NAM does not currently have any soft dollar
arrangements and does not pay excess brokerage commissions (or spreads on
principal transactions) in order to receive research services.services; however, NAM may
from time to time receive and have access to research generally provided to
institutional clients. With respect to ICAP, NWQ and Rittenhouse, the Board Members considered that
the
Sub-Adviser benefitsICAP does benefit from itstheir soft dollar arrangements pursuant to which the
Sub-Adviserit
receives research from brokers that execute the applicable Fund's portfolio
transactions. TheAt the May Meeting as well as prior meetings, the Board Members
have received and reviewed materials concerning such Sub-Adviser's brokerage practices,ICAP's soft dollar arrangements,
including its broker
allocation policies and procedures, the types of research and brokerage services
received,received. In this regard, ICAP has agreed to
limit the brokers providing such services, and the dollar amount of
commissions allocated to brokers for soft dollar arrangements for the last
calendar year. In considering the typestype of research received the Board Members
noted that such Sub-Adviser either has already limited (or has agreed to modify
its practices to limit)with the use of soft dollars to researchthat with
intellectual content. The Board Members recognized that a Sub-Adviser'sICAP's ability to obtain
such research and services is an integral factor in establishing its fees.
Accordingly, the Board Members noted that ICAP's profitability may be lower if
the Sub-Adviserit was required to pay for this research with hard dollars.
In addition to soft dollar arrangements, the Board Members also considered any
other revenues, if any, received by NAM or its affiliates. In this regard, for
Funds with 12b-1 plans, the Board Members received and considered the amount of
12b-1 fees retained by Nuveen during the last calendar year. The Board Members
noted that the vast majority of the 12b-1 fees received by Nuveen are ultimately
paid to other financial advisers.
F. OTHER CONSIDERATIONS
Nuveen, untilICAP recently wasannounced that it has signed a majority owned subsidiarymerger agreement with NYLIM
Holdings. As a result of St. Paul Travelers.
As noted, St. Paul Travelers earlier this year announced its intention to divest
its equity stake in Nuveen. Nuveen is the parent of NAM. Pursuant to a series of
transactions, St. Paul Travelers has begun to reduce its interest in Nuveen
whichtransaction, there will ultimately result inbe a change ofin control of
Nuveen and therefore NAM.
As mandated byICAP. Under the 1940 Act, such a change in control would result in an assignment
of the advisory agreementSub-Advisory Agreement with NAM and the automatic termination of such
agreement. Accordingly, the Board also considered the approval of a New
Investment Managementan Interim Sub-
Advisory Agreement with each Fund in light of, and which would take effect upon,when the anticipated change of
control. More specifically,control transaction is consummated until shareholders approve a new Sub-Advisory
Agreement between NAM and ICAP on behalf of the Funds (the "New Sub-Advisory
Agreement"). Accordingly, the Board considered for each Fund a New Investment ManagementSub-Advisory Agreement
onwhich would take effect if the change of control is consummated and after
shareholders approve the agreement. In its review, the Board Members considered
that the Interim Sub-Advisory Agreement and New Sub-Advisory Agreement have
substantially identical terms to the existing Investment ManagementSub-Advisory Agreement to take effect
afterwith ICAP.
The Board further considered whether the change of control has occurred and
19
the contract has been approved by Fund shareholders. In its review, the Board
considered whether the various transactions necessary to divest St. Paul
Travelers' interest willwould have an impact
on the various factors they considered in approving NAM,ICAP, such as the scope and
quality of services to be provided following the change of control. In reviewing
the St. Paul Travelers
transactions,transaction, the Board Members considered, among other things, the impact,
if any, on the operations and organizational structure of NAM; the possible benefits and
costs of the transactions to the respective Fund; the potential implications of
any arrangements used by Nuveen to finance certain of the transactions;ICAP; the ability of
NAMICAP to perform its duties after the transactions; whether a Fund's fee
structure or expense ratio would change; any changes to the current practices of
the respective Fund; any changes to the terms of the advisory
agreement;sub-advisory agreement and
that ICAP would be responsible for any anticipated changescosts to the operations of NAM.Funds attributable to the
Transaction. Based on its review, the Board determined that St. Paul Travelers' divestiturethe change of
control would not affect the nature and quality of services provided by NAM,ICAP,
the terms of the Investment ManagementSub-Advisory Agreement, including the
12
fees thereunder, and would not materially affect the organization or operations of NAM.ICAP.
Accordingly, the Board determined that their analysis of the various factors
regarding their approval of NAMICAP would continue to apply after the change of
control.
In addition to the foregoing, a change in control of NAM may be deemed an
assignment of the Sub-Advisory Agreement between NAM and the respective
Sub-Adviser. Further, NWQ and Rittenhouse are wholly-owned subsidiaries of
Nuveen. Accordingly, the change of control of Nuveen would also result in a
change of control of such Sub-Advisers resulting in the automatic termination of
the Original Sub-Advisory Agreements with such Sub-Advisers. The Board therefore
considered approval of a New Sub-Advisory Agreement with each Sub-Adviser in
light of the anticipated change of control. More specifically, the Board
considered approval of each New Sub-Advisory Agreement on substantially
identical terms as the respective existing Sub-Advisory Agreement, to take
effect after the change of control has occurred and the agreement has been
approved by Fund shareholders. In reviewing the impact of the St. Paul Travelers
divesture on the respective Sub-Adviser, the Board considered the same factors
as outlined previously with respect to their review of NAM. As with NAM, the
Board concluded that the St. Paul Travelers divestiture would not affect the
nature and quality of services provided by the respective Sub-Adviser, the terms
of the Sub-Advisory Agreement, including the fees paid thereunder, and would not
materially affect the organization or operations of the Sub-Adviser.
Accordingly, the Board determined that their analysis of the various factors
regarding their review and approval of the respective Sub-Adviser would continue
to apply following the change in control.
G. APPROVAL
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including a majority of
Independentindependent Board Members, concluded that the terms of the Investment Management
and Sub-Advisory Agreements were fair and reasonable, that the respective Fund
Adviser's fees are reasonable in light of the services provided to each Fund,
that the renewal of the NAM Investment Management Agreement and eachthe Sub-Advisory
Agreement should be approved, and that the new, post-change of control NAM Investment ManagementInterim
Sub-Advisory Agreement and theNew Sub-Advisory AgreementsAgreement be approved and the New
Sub-Advisory Agreement be recommended to shareholders.
20
3. ELECTIONTHE BOARD OF BOARD MEMBERS
At each Trust's Meeting, nine (9) Board Members are to be elected to serve until
their successors shall have been duly elected and qualified. Board Members
Bremner, Brown, Evans, Hunter, Kundert, Schneider, Schwertfeger, Stockdale and
Sunshine are nominees for election by all shareholders.
For each Trust, the affirmative vote of a plurality of the shares of the Trust,
all series and classes voting together, present and entitled to vote at the
Meeting will be required to elect the Board Members of that Trust.
It is the intention of the persons named in the enclosed proxy to vote the
shares represented thereby for the election of the nominees listed below unless
the proxy is marked otherwise. Each of the nominees has agreed to serve as a
Board Member of each Trust if elected. However, should any nominee become unable
or unwilling to accept nomination for election, the proxies will be voted for
substitute nominees, if any, designated by that Trust's present Board.
All of the Board Member nominees, except Board Members Hunter, Kundert and
Sunshine, were last elected to each Trust's Board at the special meeting of
shareholders held on July 28, 2003. Mr. Hunter was appointed on May 16, 2004 to
the Board of each Trust. In November 2004, Messrs. Kundert and Sunshine were
appointed to the each Trust's Board effective February 23, 2005. Messrs. Hunter,
Kundert and Sunshine are presented in this Joint Proxy Statement as nominees for
election by shareholders and were nominated by the nominating and governance
committee of each Trust's Board.
Other than Mr. Schwertfeger, none of the Board Member nominees has ever been a
director or an employee of Nuveen, the parent company of NAM, or any affiliate.
THE BOARDFUNDS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS OF THE FUNDS
VOTE FOR THE ELECTIONAPPROVAL OF THE NOMINEES NAMED BELOW.
BOARD NOMINEES/BOARD MEMBERS
NUMBER OF
PORTFOLIOS IN OTHER
FUND COMPLEX DIRECTORSHIPS
POSITION(S) TERM OF OFFICE OVERSEEN BY HELD BY
NAME, ADDRESS HELD WITH AND LENGTH OF PRINCIPAL OCCUPATION(S) BOARD BOARD
AND BIRTH DATE TRUST TIME SERVED(1) DURING PAST 5 YEARS MEMBER MEMBER
- ------------------------------------------------------------------------------------------------------------
Nominees who are not
interested persons of
the Trusts
Robert P. Bremner Board Term: Private Investor and 155 N/A
c/o Nuveen Member Indefinite Management Consultant.
Investments, Inc. Length of
333 West Wacker Drive Service: Since
Chicago, IL 60606 1996
(8/22/40)
Lawrence H. Brown Board Term: Retired (1989) as Senior 155 See Principal
c/o Nuveen Member Indefinite Vice President of The Occupation
Investments, Inc. Length of Northern Trust Company; Description
333 West Wacker Drive Service: Since Director, Community
Chicago, IL 60606 1993 Advisory BoardNEW SUB-ADVISORY AGREEMENT.
ADDITIONAL INFORMATION
INFORMATION ABOUT THE ADVISER
NAM, located at 333 West Wacker Drive, Chicago, Illinois 60606, serves as
investment adviser and manager for
(7/29/34) Highland Park and
Highwood, United Way of
the North Shore (since
2002).
21
NUMBER OF
PORTFOLIOS IN OTHER
FUND COMPLEX DIRECTORSHIPS
POSITION(S) TERM OF OFFICE OVERSEEN BY HELD BY
NAME, ADDRESS HELD WITH AND LENGTH OF PRINCIPAL OCCUPATION(S) BOARD BOARD
AND BIRTH DATE TRUST TIME SERVED(1) DURING PAST 5 YEARS MEMBER MEMBER
- ------------------------------------------------------------------------------------------------------------
Jack B. Evans Board Term: President, The 155 See Principal
c/o Nuveen Member Indefinite Hall-Perrine Foundation, Occupation
Investments, Inc. Length of a private philanthropic Description
333 West Wacker Drive Service: Since corporation (since 1996);
Chicago, IL 60606 1999 Director and Vice
(10/22/48) Chairman, United Fire
Group, a publicly held
company; Adjunct Faculty
Member, University of
Iowa; Director, Gazette
Companies; Life Trustee
of Coe College; Director,
Iowa College Foundation;
formerly, Director,
Alliant Energy; formerly,
Director, Federal Reserve
Bank of Chicago;
previously, President and
Chief Operating Officer,
SCI Financial Group,
Inc., a regional
financial services firm.
William C. Hunter Board Term: Dean and Distinguished 155 See Principal
c/o Nuveen Member Indefinite Professor of Finance, Occupation
Investments, Inc. Length of School of Business at the Description
333 West Wacker Drive Service: Since University of
Chicago, IL 60606 2004 Connecticut; previously,
(3/6/48) Senior Vice President and
Director of Research at
the Federal Reserve Bank
of Chicago
(1995 -- 2003); Director,
Credit Research Center at
Georgetown University;
Director (since 2004) of
Xerox Corporation, a
publicly held company.
David J. Kundert Board Term: Retired (2004) as 153 See Principal
c/o Nuveen Member Indefinite Chairman, JPMorgan Occupation
Investments, Inc. Length of Fleming Asset Management, Description
333 West Wacker Drive Service: Since President and CEO, Banc
Chicago, IL 60606 2005 One Investment Advisors
(10/28/42) Corporation, and
President, One Group
Mutual Funds; prior
thereto, Executive Vice
President, Bank One
Corporation and Chairman
and CEO, Banc One
Investment Management
Group; Board of Regents,
Luther College; currently
a member of the American
and Wisconsin Bar
Associations.
22
NUMBER OF
PORTFOLIOS IN OTHER
FUND COMPLEX DIRECTORSHIPS
POSITION(S) TERM OF OFFICE OVERSEEN BY HELD BY
NAME, ADDRESS HELD WITH AND LENGTH OF PRINCIPAL OCCUPATION(S) BOARD BOARD
AND BIRTH DATE TRUST TIME SERVED(1) DURING PAST 5 YEARS MEMBER MEMBER
- ------------------------------------------------------------------------------------------------------------
William J. Schneider Board Term: Chairman, formerly, 155 See Principal
c/o Nuveen Member Indefinite Senior Partner and Chief Occupation
Investments, Inc. Length of Operating Officer, Description
333 West Wacker Drive Service: Since (retired, December 2004)
Chicago, IL 60606 1996 Miller-Valentine Partners
(9/24/44) Ltd., a real estate
investment company;
formerly, Vice President,
Miller-Valentine Realty,
a construction company;
Director, Chair of the
Finance Committee and
Member of the Audit
Committee of Premier
Health Partners, the
not-for-profit parent
company of Miami Valley
Hospital; President of
the Dayton Philharmonic
Orchestra Association;
Board Member, Regional
Leaders Forum which
promotes cooperation on
economic development
issues; Director and
Immediate Past Chair,
Dayton Development
Coalition; formerly,
Member, Community
Advisory Board, National
City Bank, Dayton, Ohio;
and Business Advisory
Council, Cleveland
Federal Reserve Bank.
Judith M. Stockdale Board Term: Executive Director, 155 N/A
c/o Nuveen Member Indefinite Gaylord and Dorothy
Investments, Inc. Length of Donnelley Foundation
333 West Wacker Drive Service: Since (since 1994); prior
Chicago, IL 60606 1997 thereto, Executive
(12/29/47) Director, Great Lakes
Protection Fund (from
1990 to 1994).
23
NUMBER OF
PORTFOLIOS IN OTHER
FUND COMPLEX DIRECTORSHIPS
POSITION(S) TERM OF OFFICE OVERSEEN BY HELD BY
NAME, ADDRESS HELD WITH AND LENGTH OF PRINCIPAL OCCUPATION(S) BOARD BOARD
AND BIRTH DATE TRUST TIME SERVED(1) DURING PAST 5 YEARS MEMBER MEMBER
- ------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board Term: Senior Vice President for 155 See Principal
c/o Nuveen Member Indefinite Business and Finance Occupation
Investments, Inc. Length of (since 1997), Description
333 West Wacker Drive Service: Since Northwestern University;
Chicago, IL 60606 2005 Director (since 2003),
(1/22/50) Chicago Board of Options
Exchange; Director (since
2003), National Mentor
Holdings, a privately-
held, national provider
of home and
community-based services;
Chairman (since 1997),
Board of Directors,
Rubicon, an insurance
company owned by
Northwestern University;
Director (since 1997),
Evanston Chamber of
Commerce and Evanston
Inventure, a business
development organization.
Nominee who is an
interested person of
the Trusts
Timothy R. Chairman of Term: Chairman and Director 155 See Principal
Schwertfeger(2) the Board Indefinite (since 1996) of Nuveen Occupation
333 West Wacker Drive and Board Length of Investments, Inc. and Description
Chicago, IL 60606 Member Service: Since Nuveen Investments, LLC;
(3/28/49) 1996 Chairman and Director
(since 1997) of Nuveen
Asset Management;
Director (since 1996) of
Institutional Capital
Corporation; Chairman and
Director (since 1999) of
Rittenhouse Asset
Management, Inc.;
Chairman of Nuveen
Investments Advisers,
Inc. (since 2002);
Director (from 1992 to
2004) and Chairman (from
1996 to 2004) of Nuveen
Advisory Corp. and Nuveen
Institutional Advisory
Corp.(3)
- ------------------------------------------------------------------------------------------------------------
(1) Length of Service indicates the year in which the individual became a Board
Member of a fund in the Nuveen fund complex. Trustees serve an indefinite
term until his/her successor is elected.
(2) "Interested person" as defined in the 1940 Act, by reason of being an
officer and director of each Fund's adviser.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were merged
into Nuveen Asset Management, effective January 1, 2005.
24
BENEFICIAL OWNERSHIP
The following tables list the dollar range of equity securities beneficially
owned by each Board Member nominee in each Fund and in all Nuveen funds overseen
by the Board Member nominee as of December 31, 2004. (Messrs. Kundert and
Sunshine were not yet Board Members as of that date.)
DOLLAR RANGE OF EQUITY SECURITIES
- ---------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST I
-------------------------------------------------------------------------------------
ARIZONA COLORADO FLORIDA MARYLAND NEW MEXICO PENNSYLVANIA VIRGINIA
BOARD MEMBER NOMINEES MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
- ---------------------------------------------------------------------------------------------------------------------
Robert P. Bremner............. $0 $0 $0 $0 $0 $0 $0
Lawrence H. Brown............. 0 0 0 0 0 0 0
Jack B. Evans................. 0 0 0 0 0 0 0
William C. Hunter............. 0 0 0 0 0 0 0
David J. Kundert.............. 0 0 0 0 0 0 0
William J. Schneider.......... 0 0 0 0 0 0 0
Timothy R. Schwertfeger....... 0 0 0 0 0 0 0
Judith M. Stockdale........... 0 0 0 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0 0 0 0
DOLLAR RANGE OF EQUITY SECURITIES
- ------------------------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST II
-----------------------------------------------------------------------------------------------------
NEW NEW NEW
CALIFORNIA CALIFORNIA CONNECTICUT MASSACHUSETTS MASSACHUSETTS JERSEY YORK YORK
BOARD MEMBER NOMINEES MUNICIPAL INSURED MUNICIPAL MUNICIPAL INSURED MUNICIPAL MUNICIPAL INSURED
- ------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner............. $0 $0 $0 $0 $0 $0 $0 $0
Lawrence H. Brown............. 0 0 0 0 0 0 0 0
Jack B. Evans................. 0 0 0 0 0 0 0 0
William C. Hunter............. 0 0 0 0 0 0 0 0
David J. Kundert.............. 0 0 0 0 0 0 0 0
William J. Schneider.......... 0 0 0 0 0 0 0 0
Timothy R. Schwertfeger....... 0 0 0 0 0 0 0 0
Judith M. Stockdale........... 0 0 0 0 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0 0 0 0 0
DOLLAR RANGE OF EQUITY SECURITIES
- -----------------------------------------------------------------------------
MULTISTATE TRUST III
---------------------------------------------
NORTH
GEORGIA LOUISIANA CAROLINA TENNESSEE
BOARD MEMBER NOMINEES MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
- -----------------------------------------------------------------------------
Robert P. Bremner............. $0 $0 $0 $0
Lawrence H. Brown............. 0 0 0 0
Jack B. Evans................. 0 0 0 0
William C. Hunter............. 0 0 0 0
David J. Kundert.............. 0 0 0 0
William J. Schneider.......... 0 0 0 0
Timothy R. Schwertfeger....... 0 0 0 0
Judith M. Stockdale........... 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0
25
DOLLAR RANGE OF EQUITY SECURITIES
- -----------------------------------------------------------------------------------------------------
MULTISTATE TRUST IV
---------------------------------------------------------------------
KANSAS KENTUCKY MICHIGAN MISSOURI OHIO WISCONSIN
BOARD MEMBER NOMINEES MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
- -----------------------------------------------------------------------------------------------------
Robert P. Bremner............. $0 $0 $0 $0 $0 $0
Lawrence H. Brown............. 0 0 0 0 0 0
Jack B. Evans................. 0 0 0 0 0 0
William C. Hunter............. 0 0 0 0 0 0
David J. Kundert.............. 0 0 0 0 0 0
William J. Schneider.......... 0 0 0 0 0 0
Timothy R. Schwertfeger....... 0 0 0 0 0 0
Judith M. Stockdale........... 0 0 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0 0 0
DOLLAR RANGE OF EQUITY SECURITIES
- ---------------------------------------------------------------------------------------------------
MUNICIPAL TRUST
-------------------------------------------------------------------
HIGH YIELD INSURED INTERMEDIATE
BOARD MEMBER NOMINEES ALL-AMERICAN MUNICIPAL MUNICIPAL DURATION LIMITED TERM
- ---------------------------------------------------------------------------------------------------
Robert P. Bremner............. $0- $0 $0 $10,001- $0
$10,000 $50,000
Lawrence H. Brown............. 0 10,001- 0 10,001- 0
50,000 50,000
Jack B. Evans................. 0 0 0 0 0
William C. Hunter............. 0 0 0 0 0
David J. Kundert.............. 0 0 0 0 0
William J. Schneider.......... 0 0 0 0 Over 100,000
Timothy R. Schwertfeger....... 0 0 0 Over 100,000 0
Judith M. Stockdale........... 0 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0 0
- ---------------------------------------------------------------------------------------------------
26
DOLLAR RANGE OF EQUITY SECURITIES
- --------------------------------------------------------------------------------------------------------------------------------
AGGREGATE DOLLAR
RANGE OF EQUITY
SECURITIES IN ALL
REGISTERED
INVESTMENT
COMPANIES
INVESTMENT TRUST INVESTMENT TRUST II OVERSEEN BY BOARD
---------------------------------------------- --------------------------- MEMBER NOMINEES
BALANCED BALANCED NWQ IN FAMILY OF
STOCK AND MUNICIPAL LARGE-CAP NWQ MULTI- RITTENHOUSE INTERNATIONAL INVESTMENT
BOARD MEMBER NOMINEES BOND AND STOCK VALUE CAP VALUE GROWTH VALUE COMPANIES
- --------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner............. $10,001- $0 Over $0 $10,001- $0- Over
$50,000 $100,000 $50,000 $10,000 $100,000
Lawrence H. Brown............. 0 50,001- 50,001- 10,001- 0 0 Over
100,000 100,000 50,000 100,000
Jack B. Evans................. 10,001- 0 Over 10,001- Over Over 100,000 Over
50,000 100,000 50,000 100,000 100,000
William C. Hunter............. 10,001- 0 0 10,001- 0 10,000- 50,000-
50,000 50,000 50,000 100,000
David J. Kundert.............. 0 0 0 0 0 0 0
William J. Schneider.......... 0 0 Over 0 Over 0 Over
100,000 100,000 100,000
Timothy R. Schwertfeger....... 0 0 Over Over Over Over 100,000 Over
100,000 100,000 100,000 100,000
Judith M. Stockdale........... 0 0 10,001- 10,001- 10,000- 10,000- Over
50,000 50,000 50,000 50,000 100,000
Eugene S. Sunshine............ 0 0 0 0 0 0 50,000-
100,000
- --------------------------------------------------------------------------------------------------------------------------------
The following tables set forth, for each Board Member and for the Board Members
and officers as a group, the amount of shares beneficially owned in each Fund as
of December 31, 2004. The information as to beneficial ownership is based on
statements furnished by each Board Member and officer.
FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- ----------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST I
--------------------------------------------------------------------------------------
ARIZONA COLORADO FLORIDA MARYLAND NEW MEXICO PENNSYLVANIA VIRGINIA
BOARD MEMBER NOMINEES MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
- ----------------------------------------------------------------------------------------------------------------------
Robert P. Bremner............. 0 0 0 0 0 0 0
Lawrence H. Brown............. 0 0 0 0 0 0 0
Jack B. Evans................. 0 0 0 0 0 0 0
William C. Hunter............. 0 0 0 0 0 0 0
David J. Kundert.............. 0 0 0 0 0 0 0
William J. Schneider.......... 0 0 0 0 0 0 0
Timothy R. Schwertfeger....... 0 0 0 0 0 0 0
Judith M. Stockdale........... 0 0 0 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0 0 0 0
ALL BOARD MEMBERS AND OFFICERS
AS A GROUP.................. 0 0 0 0 0 0 0
- ----------------------------------------------------------------------------------------------------------------------
27
FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- -------------------------------------------------------------------------------------
MULTISTATE TRUST II
-----------------------------------------------------
BOARD MEMBER CALIFORNIA CALIFORNIA CONNECTICUT MASSACHUSETTS
NOMINEES MUNICIPAL INSURED MUNICIPAL MUNICIPAL
- -------------------------------------------------------------------------------------
Robert P. Bremner............. 0 0 0 0
Lawrence H. Brown............. 0 0 0 0
Jack B. Evans................. 0 0 0 0
William C. Hunter............. 0 0 0 0
David J. Kundert.............. 0 0 0 0
William J. Schneider.......... 0 0 0 0
Timothy R.
Schwertfeger................. 0 0 0 0
Judith M. Stockdale........... 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0
ALL BOARD MEMBERS AND OFFICERS
AS A GROUP................... 0 0 0 0
FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- ------------------------------ --------------------------------------------------
MULTISTATE TRUST II
--------------------------------------------------
BOARD MEMBER MASSACHUSETTS NEW JERSEY NEW YORK NEW YORK
NOMINEES INSURED MUNICIPAL MUNICIPAL INSURED
- ------------------------------ --------------------------------------------------
Robert P. Bremner............. 0 0 0 0
Lawrence H. Brown............. 0 0 0 0
Jack B. Evans................. 0 0 0 0
William C. Hunter............. 0 0 0 0
David J. Kundert.............. 0 0 0 0
William J. Schneider.......... 0 0 0 0
Timothy R.
Schwertfeger................. 0 0 0 0
Judith M. Stockdale........... 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0
ALL BOARD MEMBERS AND OFFICERS
AS A GROUP................... 0 0 0 0
FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- ----------------------------------------------------------------------------------
MULTISTATE TRUST III
--------------------------------------------------
GEORGIA LOUISIANA NORTH CAROLINA TENNESSEE
BOARD MEMBER NOMINEES MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
- ----------------------------------------------------------------------------------
Robert P. Bremner............. 0 0 0 0
Lawrence H. Brown............. 0 0 0 0
Jack B. Evans................. 0 0 0 0
William C. Hunter............. 0 0 0 0
David J. Kundert.............. 0 0 0 0
William J. Schneider.......... 0 0 0 0
Timothy R. Schwertfeger....... 0 0 0 0
Judith M. Stockdale........... 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0
ALL BOARD MEMBERS AND OFFICERS
AS A GROUP.................. 0 0 0 0
- ----------------------------------------------------------------------------------
FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- -----------------------------------------------------------------------------------------------------
MULTISTATE TRUST IV
---------------------------------------------------------------------
KANSAS KENTUCKY MICHIGAN MISSOURI OHIO WISCONSIN
BOARD MEMBER NOMINEES MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
- -----------------------------------------------------------------------------------------------------
Robert P. Bremner............. 0 0 0 0 0 0
Lawrence H. Brown............. 0 0 0 0 0 0
Jack B. Evans................. 0 0 0 0 0 0
William C. Hunter............. 0 0 0 0 0 0
David J. Kundert.............. 0 0 0 0 0 0
William J. Schneider.......... 0 0 0 0 0 0
Timothy R. Schwertfeger....... 0 0 0 0 0 0
Judith M. Stockdale........... 0 0 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0 0 0
ALL BOARD MEMBERS AND OFFICERS
AS A GROUP.................. 0 0 0 0 0 0
28
FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- ---------------------------------------------------------------------------------------------------
MUNICIPAL TRUST
-------------------------------------------------------------------
HIGH YIELD INSURED INTERMEDIATE
BOARD MEMBER NOMINEES ALL-AMERICAN MUNICIPAL MUNICIPAL DURATION LIMITED TERM
- ---------------------------------------------------------------------------------------------------
Robert P. Bremner............. 243 0 0 1,767 0
Lawrence H. Brown............. 0 1,003 0 1,463 0
Jack B. Evans................. 0 0 0 0 0
William C. Hunter............. 0 0 0 0 0
David J. Kundert.............. 0 0 0 0 0
William J. Schneider.......... 0 0 0 0 17,096
Timothy R. Schwertfeger....... 0 0 0 169,172 0
Judith M. Stockdale........... 0 0 0 0 0
Eugene S. Sunshine............ 0 0 0 0 0
ALL BOARD MEMBERS AND OFFICERS
AS A GROUP.................. 10,578 3,173 822 189,908 17,096
- ---------------------------------------------------------------------------------------------------
FUND SHARES OWNED BY BOARD MEMBERS AND OFFICERS(1)
- ------------------------------------------------------------------------------------------------------------
INVESTMENT TRUST INVESTMENT TRUST II
---------------------------------------------- ---------------------------
BALANCED BALANCED NWQ
STOCK AND MUNICIPAL LARGE-CAP NWQ MULTI- RITTENHOUSE INTERNATIONAL
BOARD MEMBER NOMINEES BOND AND STOCK VALUE CAP VALUE GROWTH VALUE
- ------------------------------------------------------------------------------------------------------------
Robert P. Bremner............. 482 0 5,449 0 1,032 210
Lawrence H. Brown............. 0 1,000 3,485 1,036 0 0
Jack B. Evans................. 793 0 5,473 1,539 5,059 4,152
William C. Hunter............. 930 0 0 1,241 0 531
David J. Kundert.............. 0 0 0 0 0 0
William J. Schneider.......... 0 0 16,198 0 20,277 0
Timothy R. Schwertfeger....... 0 0 25,484 84,648 12,278 41,776
Judith M. Stockdale........... 0 0 797 1,492 1,175 1,220
Eugene S. Sunshine............ 0 0 0 0 0 0
ALL BOARD MEMBERS AND OFFICERS
AS A GROUP.................. 11,838 1,000 98,083 106,194 124,826 70,403
- ------------------------------------------------------------------------------------------------------------
(1) The numbers include share equivalents of certain Nuveen funds in which the
Board Member is deemed to be invested pursuant to the Deferred Compensation
Plan for Independent Board Members as more fully described below.
On December 31, 2004, Board Members and executive officers as a group
beneficially owned 1,196,807 shares of all funds managed by the Adviser
(includes deferred units described below and shares held by executive officers
in Nuveen's 401(k)/profit sharing plan). Each Board Member's individual
beneficial shareholdings of each Fund constituted less than 1% of the
outstanding shares of each class of shares for each Fund. As of May 20, 2005,
the Board Members and executive officers as a group beneficially owned less than
1% of the outstanding Shares of each Fund. As of May 20, 2005, no shareholder
beneficially owned more than 5% of any class of shares of any Fund, except as
stated in Appendix I.
29
COMPENSATION
For all Nuveen funds, Independent Board Members receive an $85,000 annual
retainer plus (a) a fee of $2,000 per day for attendance in person or by
telephone at a regularly scheduled meeting of the Board; (b) a fee of $1,000 per
day for attendance in person where such in-person attendance is required and
$500 per day for attendance by telephone or in person where in-person attendance
is not required at a special, non-regularly scheduled board meeting; (c) a fee
of $1,000 per day for attendance in person at an audit committee or compliance,
risk management and regulatory oversight committee meeting where in-person
attendance is required and $500 per day for compliance, risk management and
regulatory oversight committee attendance by telephone or in person where
in-person attendance is not required and $750 per day for audit committee
attendance by telephone or in person where in-person attendance is not required;
(d) a fee of $500 per day for attendance in person or by telephone for a meeting
of the dividend committee; and (e) a fee of $500 per day for attendance in
person at all other committee meetings (including ad hoc committee meetings and
shareholder meetings) on a day on which no regularly scheduled board meeting is
held in which in-person attendance is required and $250 per day for attendance
by telephone or in person at such meetings where in-person attendance is not
required, plus, in each case, expenses incurred in attending such meetings. In
addition to the payments described above, the chairperson of each committee of
the Board (except the dividend committee and executive committee) receives
$5,000 as an addition to the annual retainer paid to such individuals. When ad
hoc committees are organized, the Board may provide for additional compensation
to be paid to the members of such committees. The annual retainer, fees and
expenses are allocated among the funds managed by the Adviser, on the basis of
relative net asset sizes although fund management may, in its discretion,
establish a minimum amount to be allocated to each fund. The Board Member
affiliated with Nuveen and the Adviser serves without any compensation from the Funds. The boardsAdviser is a wholly owned
subsidiary of certain Nuveen funds (the "Participating Funds") established a
Deferred Compensation Plan for Independent Board Members ("Deferred Compensation
Plan"). Under the Deferred Compensation Plan, Independent Board Members of the
Participating Funds may defer receipt of all, or a portion, of the compensation
they earn for their services to the Participating Funds, in lieu of receiving
current payments of such compensation. Any deferred amount is treated as though
an equivalent dollar amount had been invested in shares of one or more eligible
Nuveen funds. Each Independent Board Member, other than Mr. Brown, has elected
to defer at least a portion of his or her fees. Each of the Funds except Arizona
Municipal, Colorado Municipal, Maryland Municipal, New Mexico Municipal,
Pennsylvania Municipal, Virginia Municipal, Georgia Municipal, Louisiana
Municipal, North Carolina Municipal, Massachusetts Municipal, Massachusetts
Insured, New Jersey Municipal, Kansas Municipal, Wisconsin Municipal, NWQ
International Value and NWQ Multi-Cap Value are Participating Funds.
The table below shows, for each Board Member who is not affiliated with Nuveen
or the Adviser, the aggregate compensation (i) paid by each Fund to each Board
Member for its last fiscal year and (ii) paid (including deferred fees) for
service on the boards of the Nuveen open-end and closed-end funds managed by the
Adviser for the calendar year ended 2004.
30
Mr. Schwertfeger, a Board Member who is an interested person of the Funds, does
not receive any compensation from the Funds or any Nuveen funds.
AGGREGATE COMPENSATION FROM THE FUNDS(2)
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT(1) SCHNEIDER STOCKDALE SUNSHINE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST I
Arizona Municipal......... $208 $219 $163 $30 N/A $213 $193 N/A
Colorado Municipal........ 86 90 67 12 N/A 88 80 N/A
Florida Municipal......... 699 737 543 96 N/A 744 659 N/A
Maryland Municipal........ 245 257 203 31 N/A 251 192 N/A
New Mexico Municipal...... 110 116 86 16 N/A 113 102 N/A
Pennsylvania Municipal.... 372 389 306 46 N/A 380 291 N/A
Virginia Municipal........ 573 600 470 71 N/A 586 449 N/A
AGGREGATE COMPENSATION FROM THE FUNDS(2)
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT(1) SCHNEIDER STOCKDALE SUNSHINE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST II
California Municipal...... $510 $520 $547 $418 N/A $480 $435 N/A
California Insured........ 509 518 545 416 N/A 478 434 N/A
Connecticut Municipal..... 561 572 602 459 N/A 528 479 N/A
Massachusetts Municipal... 217 225 232 167 N/A 205 183 N/A
Massachusetts Insured..... 175 181 187 134 N/A 165 147 N/A
New Jersey Municipal...... 325 336 346 249 N/A 307 273 N/A
New York Municipal........ 662 674 710 542 N/A 622 564 N/A
New York Insured.......... 716 730 768 586 N/A 674 610 N/A
AGGREGATE COMPENSATION FROM THE FUNDS(2)
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT(1) SCHNEIDER STOCKDALE SUNSHINE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST III
Georgia Municipal......... $383 $401 $314 $47 N/A $392 $299 N/A
Louisiana Municipal....... 293 306 236 34 N/A 299 228 N/A
North Carolina
Municipal............... 519 543 424 64 N/A 530 405 N/A
Tennessee Municipal....... 796 833 660 97 N/A 844 630 N/A
AGGREGATE COMPENSATION FROM THE FUNDS(2)
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT(1) SCHNEIDER STOCKDALE SUNSHINE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST IV
Kansas Municipal.......... $271 $286 $213 $39 N/A $279 $252 N/A
Kentucky Municipal........ 969 1,022 768 139 N/A 1,030 910 N/A
Michigan Municipal........ 528 557 413 73 N/A 562 497 N/A
Missouri Municipal........ 519 549 410 75 N/A 532 481 N/A
Ohio Municipal............ 1,159 1,222 908 164 N/A 1,232 1,090 N/A
Wisconsin Municipal....... 98 103 76 14 N/A 101 91 N/A
31
AGGREGATE COMPENSATION FROM THE FUNDS(2)
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT(1) SCHNEIDER STOCKDALE SUNSHINE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL TRUST
All-American.............. $624 $625 $669 $590 $86 $599 $569 $91
High Yield Municipal...... 1,599 1,602 1,723 1,523 318 1,556 1,469 337
Insured Municipal......... 1,631 1,634 1,749 1,539 215 1,565 1,486 228
Intermediate Duration..... 4,867 4,875 5,219 4,594 643 4,671 4,435 683
Limited Term.............. 1,545 1,548 1,656 1,458 200 1,482 1,408 212
AGGREGATE COMPENSATION FROM THE FUNDS(2)
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT(1) SCHNEIDER STOCKDALE SUNSHINE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT TRUST
Balanced Stock and Bond... $133 $125 $221 $18 N/A $140 $81 N/A
Balanced Municipal and
Stock................... 196 195 340 27 N/A 206 119 N/A
Large-Cap Value........... 1,202 1,123 1,975 169 N/A 1,261 740 N/A
NWQ Multi-Cap Value....... 116 106 199 24 N/A 119 79 N/A
AGGREGATE COMPENSATION FROM THE FUNDS(2)
- ---------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT(1) SCHNEIDER STOCKDALE SUNSHINE(1)
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT TRUST II
Rittenhouse Growth........ $1,024 $1,006 $1,015 $211 N/A $1,035 $526 N/A
NWQ International Value... 120 118 98 25 N/A 121 75 N/A
TOTAL COMPENSATION FROM
NUVEEN FUNDS PAID TO
BOARD MEMBERS........... 114,167 112,250 116,125 65,875 N/A 111,667 100,700 N/A
- ---------------------------------------------------------------------------------------------------------------------------------
(1) In November 2004, Messrs. Kundert and Sunshine were appointed to each
Trust's Board, effective February 23, 2005.
(2) Includes deferred fees. Pursuant to a deferred compensation agreement with
certain of the Funds, deferred amounts are treated as though an equivalent
dollar amount has been invested in shares of one or more eligible Nuveen
funds. Total deferred fees for the Funds (including the return from the
assumed investment in the eligible Nuveen funds) payable are:
DEFERRED FEES
------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT SCHNEIDER STOCKDALE SUNSHINE
------------------------------------------------------------------------------------------------------------------------------
Florida Municipal........ $106 $0 $137 $96 N/A $744 $179 N/A
California Municipal..... 83 0 145 418 N/A 480 138 N/A
California Insured....... 83 0 145 416 N/A 478 138 N/A
Connecticut Municipal.... 91 0 160 459 N/A 528 153 N/A
New York Municipal....... 108 0 189 542 N/A 622 180 N/A
------------------------------------------------------------------------------------------------------------------------------
32
DEFERRED FEES
------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT SCHNEIDER STOCKDALE SUNSHINE
------------------------------------------------------------------------------------------------------------------------------
New York Insured......... $117 $0 $204 $586 N/A $674 $195 N/A
Tennessee Municipal...... 121 0 168 97 N/A 844 171 N/A
Kentucky Municipal....... 146 0 195 139 N/A 1,030 247 N/A
Michigan Municipal....... 80 0 105 73 N/A 562 135 N/A
Missouri Municipal....... 38 0 69 75 N/A 264 61 N/A
------------------------------------------------------------------------------------------------------------------------------
DEFERRED FEES
------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT SCHNEIDER STOCKDALE SUNSHINE
------------------------------------------------------------------------------------------------------------------------------
Ohio Municipal........... $175 $0 $230 $164 N/A $1,232 $296 N/A
All-American............. 95 0 169 590 86 599 213 91
High Yield Municipal..... 242 0 432 1,523 318 1,556 592 337
Insured Municipal........ 250 0 442 1,539 215 1,565 552 228
Intermediate Duration.... 745 0 1,319 4,594 643 4,671 1,647 683
------------------------------------------------------------------------------------------------------------------------------
DEFERRED FEES
------------------------------------------------------------------------------------------------------------------------------
ROBERT P. LAWRENCE H. JACK B. WILLIAM C. DAVID J. WILLIAM J. JUDITH M. EUGENE S.
FUND BREMNER BROWN EVANS HUNTER KUNDERT SCHNEIDER STOCKDALE SUNSHINE
------------------------------------------------------------------------------------------------------------------------------
Limited Term............. $237 $0 $419 $1,458 200 $1,482 $521 $212
Balanced Stock and
Bond................... 20 0 58 18 N/A 140 22 N/A
Balanced Municipal and
Stock.................. 30 0 89 27 N/A 206 33 N/A
Large-Cap Value.......... 183 0 520 169 N/A 1,261 203 N/A
Rittenhouse Growth....... 154 0 259 211 N/A 1,035 145 N/A
------------------------------------------------------------------------------------------------------------------------------
Nuveen maintains a charitable matching contributions program to encourage the
active support and involvement of individuals in the civic activities of their
community. The Independent Board Members of the funds managed by the Adviser are
eligible to participate in the matching contributions program of Nuveen. Under
the matching contributions program, Nuveen will match the personal contributions
of a Board Member to Section 501(c)(3) organizations up to an aggregate maximum
amount of $10,000 during any calendar year.
COMMITTEES
The Board of each Trust has five standing committees: the executive committee,
the audit committee, the nominating and governance committee, the dividend
committee and the compliance, risk management and regulatory oversight
committee.
Robert P. Bremner, Judith M. Stockdale and Timothy R. Schwertfeger, Chair, serve
as members of the executive committee of each Trust. The executive committee,
which meets between regular meetings of the Board, is authorized to exercise all
of the powers of the Board; provided that the scope of the powers of the
executive committee, unless otherwise specifically authorized by the full Board,
is limited to: (i) emergency matters where assembly
33
of the full Board is impracticable (in which case management will take all
reasonable steps to quickly notify each individual Board Member of the actions
taken by the executive committee) and (ii) matters of an administrative or
ministerial nature. The number of executive committee meetings of each Trust
held during the Trust's last fiscal year is shown in Appendix J.
Lawrence H. Brown, Jack B. Evans and Timothy R. Schwertfeger, Chair, are current
members of the dividend committee of each Trust. The dividend committee is
authorized to declare distributions on the Trust's shares including, but not
limited to, regular and special dividends, capital gains and ordinary income
distributions. The number of dividend committee meetings of each Trust held
during the Trust's last fiscal year is shown in Appendix J.
Lawrence H. Brown, William C. Hunter, David J. Kundert, William J. Schneider,
Chair, and Judith M. Stockdale are current members of the compliance, risk
management and regulatory oversight committee of each Trust. The compliance,
risk management and regulatory oversight committee is responsible for the
oversight of compliance issues, risk management, and other regulatory matters
affecting the Trusts which are not otherwise the jurisdiction of the other Board
committees. As part of its duties regarding compliance matters, the committee
was responsible during 2004 for the oversight of the Pricing Procedures of the
Funds and the internal Valuation Group. The number of compliance, risk
management and regulatory oversight committee meetings of each Trust held during
the Trust's last fiscal year is shown in Appendix J.
Each Trust's Board has an audit committee, established in accordance with
Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended, composed
of Independent Board Members. Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, Chair, William J. Schneider and Eugene S. Sunshine are current members of
the audit committee of each Trust. The audit committee is responsible for the
oversight and monitoring of (1) the accounting and reporting policies, processes
and practices and the audit of the financial statements of the Trusts, (2) the
quality and integrity of the financial statements of the Trusts, and (3) the
independent auditors' qualifications, performance and independence. The audit
committee reviews the work and any recommendations of the Trusts' independent
auditors. Based on such review, it is authorized to make recommendations to the
Board. Commencing in 2005, the audit committee is responsible for the oversight
of the Pricing Procedures of the Funds and the internal Valuation Group. The
Boards adopted an Audit Committee Charter. A copy of the Audit Committee Charter
is attached to the proxy statement as Appendix K. The number of audit committee
meetings of each Trust held during the Trust's last fiscal year is shown in
Appendix J.
Each Trust has a nominating and governance committee composed entirely of Board
Members who are not "interested persons" (as that term is defined in the 1940
Act) of the Funds. Robert P. Bremner, Chair, Lawrence H. Brown, Jack B. Evans,
William C. Hunter, David J. Kundert, William J. Schneider, Judith M. Stockdale
and Eugene S. Sunshine are current members of the nominating and governance
committee of each Trust. The purpose of the nominating and governance committee
is to seek, identify and recommend to the Board qualified candidates for
election or appointment to each Trust's Board. In addition, the committee
oversees matters of corporate governance, including the evaluation of Board
performance and processes, and assignment and rotation of committee members, and
the establishment of corporate governance guidelines and procedures, to the
extent necessary or desirable. The committee operates under a written charter
adopted and approved by the
34
Boards, a copy of which is attached to the proxy statement as Appendix L. The
nominating and governance committee charter is also available on the Funds'
website at http://www.nuveen.com/mf/products/fundGovernance.aspx. The number of
nominating and governance committee meetings of each Trust held during the
Trust's last fiscal year is shown in Appendix J.
The nominating and governance committee looks to many sources for
recommendations of qualified Board members, including current Board Members,
employees of the Adviser, current shareholders of the Funds, third party sources
and any other persons or entities that may be deemed necessary or desirable by
the committee. Shareholders of the Funds who wish to nominate a candidate to
their Trust's Board should mail information to the attention of Lorna Ferguson,
Manager of Fund Board Relations, Nuveen Investments, Inc., 333 West Wacker Drive, Chicago, Illinois
60606. This information must include evidenceFounded in 1898, Nuveen Investments, Inc. and its affiliates had over
$145 billion of Fund
ownershipassets under management as of the person or entity recommending the candidate,March 31, 2006. Nuveen
Investments, Inc. is a full listing of
the proposed candidate's education, experience, current employment, date of
birth, namespublicly-traded company and addresses of at least three professional references,
information as to whether the candidate is an "interested person" (as such term
is defined in the 1940 Act) in relation to the Trust and such other information
that would be helpful to the nominating and governance committee in evaluating
the candidate. All satisfactorily completed information regarding candidates
will be forwarded to the chairman of the nominating and governance committee and
the outside counsel to the Independent Board Members. Recommendations for
candidates to the Board will be evaluated in light of whether the number of
Board members is expected to change and whether the Board expects any vacancies.
All nominations from Fund shareholders will be acknowledged, although there may
be times when the committee is not actively recruiting new Board members. In
those circumstances nominations will be kept on file until active recruitment is
under way.
The nominating and governance committee sets appropriate standards and
requirements for nominations to the Board. In considering a candidate's
qualifications, each candidate must meet certain basic requirements, including
relevant skills and experience, time availability and, if qualifying as a
non-"interested person" candidate, independence from the Adviser or other
service providers. These experience requirements may vary dependinglisted on the current composition ofNew York
Stock Exchange and trades under the Board, since the goal is to ensure an appropriate
range of skills and experience, in the aggregate. All candidates must meet high
expectations of personal integrity, governance experience and professional
competence that are assessed on the basis of personal interviews,
recommendations, or direct knowledge by committee members. The committee may use
any process it deems appropriate for the purpose of evaluating candidates, which
process may include, without limitation, personal interviews, background checks,
written submissions by the candidates and third party references. There is no
difference in the manner in which the nominating and governance committee
evaluates nominees when the nominee is submitted by a shareholder. The
nominating and governance committee reserves the right to make the final
selection regarding the nomination of any prospective Board member.
The number of regular quarterly meetings and special meetings held by the Board
of each Trust during the Trust's last fiscal year is shown in Appendix J. During
the last fiscal year, each Board Member attended 75% or more of each Trust's
Board meetings and the committee meetings (if a member thereof) held during the
period for which such Board Member was a Board Member.
35
THE OFFICERS
The following table sets forth information as of May 1, 2005 with respect to
each officer of the Trusts other than Mr. Schwertfeger (who is a Board Member
and is included in the table relating to nominees for the Board). Officers
receive no compensation from the Funds. The officers are elected by the Board on
an annual basis to serve until successors are elected and qualified.
- -------------------------------------------------------------------------------------------------------
NUMBER OF
POSITION(S) TERM OF OFFICE AND PORTFOLIOS IN
NAME, ADDRESS HELD WITH LENGTH OF TIME PRINCIPAL OCCUPATION(S) FUND COMPLEX
AND BIRTHDATE FUND SERVED* DURING PAST 5 YEARS SERVED BY OFFICER
- -------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief Term: Annual Managing Director 155
333 West Wacker Drive Administrative Length of Service: (since 2002), Assistant
Chicago, IL 60606 Officer Since 1988 Secretary and Associate
(9/9/56) General Counsel,
formerly, Vice
President of Nuveen
Investments, LLC;
Managing Director
(since 2002), Assistant
Secretary and Associate
General Counsel,
formerly Vice President
of Nuveen Asset
Management; Managing
Director (since 2004)
and Assistant Secretary
(since 1994) of Nuveen
Investments, Inc.;
Assistant Secretary of
NWQ Investment
Management Company, LLC
(since 2002); Vice
President and Assistant
Secretary of Nuveen
Investments Advisers
Inc. (since 2002);
Managing Director,
Associate General
Counsel and Assistant
Secretary of
Rittenhouse Asset
Management, Inc. (since
2003); previously,
Managing Director (from
2002 to 2004), General
Counsel and Assistant
Secretary, formerly,
Vice President of
Nuveen Advisory Corp.
and Nuveen
Institutional Advisory
Corp.; ** Chartered
Financial Analyst.
Julia L. Antonatos Vice President Term: Annual Managing Director 155
333 West Wacker Drive Length of Service: (since 2005),
Chicago, IL 60606 Since 2004 previously, Vice
(9/22/63) President (since 2002),
formerly, Assistant
Vice President (since
1999) of Nuveen
Investments, LLC;
Chartered Financial
Analyst.
36
- -------------------------------------------------------------------------------------------------------
NUMBER OF
POSITION(S) TERM OF OFFICE AND PORTFOLIOS IN
NAME, ADDRESS HELD WITH LENGTH OF TIME PRINCIPAL OCCUPATION(S) FUND COMPLEX
AND BIRTHDATE FUND SERVED* DURING PAST 5 YEARS SERVED BY OFFICER
- -------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President Term: Annual Vice President (since 155
333 West Wacker Drive and Assistant Length of Service: 2002), formerly
Chicago, IL 60606 Secretary Since 2002 Assistant Vice
(2/3/66) President (from 2000),
previously, Associate
of Nuveen Investments,
LLC.
Peter H. D'Arrigo Vice President Term: Annual Vice President of 155
333 West Wacker Drive and Treasurer Length of Service: Nuveen Investments, LLC
Chicago, IL 60606 Since 1999 (since 1999); prior
(11/28/67) thereto, Assistant Vice
President (from 1997);
Vice President and
Treasurer (since 1999)
of Nuveen Investments,
Inc.; Vice President
and Treasurer of Nuveen
Asset Management (since
2002) and of Nuveen
Investments Advisers
Inc. (since 2002);
Assistant Treasurer of
NWQ Investments
Management Company,
LLC. (since 2002); Vice
President and Treasurer
of Nuveen Rittenhouse
Asset Management, Inc.
(since 2003); Vice
President and Treasurer
(from 1999 to 2004) of
Nuveen Advisory Corp.
and Nuveen
Institutional Advisory
Corp.; ** Chartered
Financial Analyst.
Jessica R. Droeger Vice President Term: Annual Vice President (since 155
333 West Wacker Drive and Secretary Length of Service: 2002) and Assistant
Chicago, IL 60606 Since 1998 General Counsel (since
(9/24/64) 1998), formerly
Assistant Vice
President (from 1998)
of Nuveen Investments,
LLC; Vice President and
Assistant Secretary
(since 2005) of Nuveen
Asset Management; Vice
President (from 2002 to
2004) and Assistant
Secretary (from 1998 to
2004), formerly,
Assistant Vice
President of Nuveen
Advisory Corp. and
Nuveen Institutional
Advisory Corp.**
37
- -------------------------------------------------------------------------------------------------------
NUMBER OF
POSITION(S) TERM OF OFFICE AND PORTFOLIOS IN
NAME, ADDRESS HELD WITH LENGTH OF TIME PRINCIPAL OCCUPATION(S) FUND COMPLEX
AND BIRTHDATE FUND SERVED* DURING PAST 5 YEARS SERVED BY OFFICER
- -------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President Term: Annual Managing Director 155
333 West Wacker Drive Length of Service: (since 2004),
Chicago, IL 60606 Since 1998 previously, Vice
(10/24/45) President of Nuveen
Investments, LLC;
previously, Managing
Director (2004),
formerly, Vice
President of Nuveen
Advisory Corp. and
Nuveen Institutional
Advisory Corp.**
William M. Fitzgerald Vice President Term: Annual Managing Director of 155
333 West Wacker Drive Length of Service: Nuveen Asset Management
Chicago, IL 60606 Since 1995 (since 2001); Vice
(3/2/64) President of Nuveen
Investments Advisers
Inc. (since 2002);
Managing Director (from
2001 to 2004),
formerly, Vice
President of Nuveen
Advisory Corp. and
Nuveen Institutional
Advisory Corp.;**
Chartered Financial
Analyst.
Stephen D. Foy Vice President Term: Annual Vice President (since 155
333 West Wacker Drive and Controller Length of Service: 1993) and Funds
Chicago, IL 60606 Since 1993 Controller (since 1998)
(5/31/54) of Nuveen Investments,
LLC; Vice President
(since 1998) and
formerly, Funds
Controller of Nuveen
Investments, Inc.;
Certified Public
Accountant.
James D. Grassi Vice President Term: Annual Vice President and 155
333 West Wacker Drive and Chief Length of Service: Deputy Director of
Chicago, IL 60606 Compliance Since 2004 Compliance (since 2004)
(4/13/56) Officer of Nuveen Investments,
LLC, Nuveen Investments
Advisers Inc., Nuveen
Asset Management and
Rittenhouse Asset
Management, Inc.;
previously, Vice
President and Deputy
Director of Compliance
(2004) of Nuveen
Advisory Corp. and
Nuveen Institutional
Advisory Corp.;**
formerly, Senior
Attorney (1994 to
2004), The Northern
Trust Company.
38
- -------------------------------------------------------------------------------------------------------
NUMBER OF
POSITION(S) TERM OF OFFICE AND PORTFOLIOS IN
NAME, ADDRESS HELD WITH LENGTH OF TIME PRINCIPAL OCCUPATION(S) FUND COMPLEX
AND BIRTHDATE FUND SERVED* DURING PAST 5 YEARS SERVED BY OFFICER
- -------------------------------------------------------------------------------------------------------
David J. Lamb Vice President Term: Annual Vice President of 155
333 West Wacker Drive Length of Service: Nuveen Investments, LLC
Chicago, IL 60606 Since 2000 (since 2000); prior
(3/22/63) thereto, Assistant Vice
President (from 1999);
formerly Associate of
Nuveen Investments,
LLC; Certified Public
Accountant.
Tina M. Lazar Vice President Term: Annual Vice President of 155
333 West Wacker Drive Length of Service: Nuveen Investments, LLC
Chicago, IL 60606 Since 2002 (since 1999); prior
(8/27/61) thereto, Assistant Vice
President (since 1993)
of Nuveen Investments,
LLC.
39
- -------------------------------------------------------------------------------------------------------
NUMBER OF
POSITION(S) TERM OF OFFICE AND PORTFOLIOS IN
NAME, ADDRESS HELD WITH LENGTH OF TIME PRINCIPAL OCCUPATION(S) FUND COMPLEX
AND BIRTHDATE FUND SERVED* DURING PAST 5 YEARS SERVED BY OFFICER
- -------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President Term: Annual Vice President, 155
333 West Wacker Drive and Assistant Length of Service: Assistant Secretary and
Chicago, IL 60606 Secretary Since 1988 Assistant General
(7/27/51) Counsel of Nuveen
Investments, LLC; Vice
President, Assistant
General Counsel and
Assistant Secretary of
Nuveen Investments,
Inc.; Vice President
(since 2005) and
Assistant Secretary
(since 1997) of Nuveen
Asset Management; Vice
President (since 2000),
Assistant Secretary and
Assistant General
Counsel (since 1998) of
Rittenhouse Asset
Management, Inc.; Vice
President and Assistant
Secretary of Nuveen
Investments Advisers
Inc. (since 2002);
Assistant Secretary of
NWQ Investment
Management Company,
LLC. (since 2002);
previously, Vice
President and Assistant
Secretary of Nuveen
Advisory Corp. and
Nuveen Institutional
Advisory Corp.**
- -------------------------------------------------------------------------------------------------------
* Length of Service indicates the year the individual became an officer of a
fund in the Nuveen fund complex.
** Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were organized
into Nuveen Asset Management, effective January 1, 2005.
APPOINTMENT OF INDEPENDENT AUDITORS
Each Board has appointed PricewaterhouseCoopers LLP, independent registered
public accounting firm, as independent auditors to audit the books and records
of each Trust for its fiscal year. A representative of PricewaterhouseCoopers
LLP will be present at the Meetings to make a statement, if such representative
so desires, and to respond to shareholders' questions. PricewaterhouseCoopers
LLP has informed each Trust that it has no direct or indirect material financial
interest in each Trust, Nuveen, the Adviser or any other investment company
sponsored by Nuveen.
40
AUDIT AND RELATED FEES. The following table provides the aggregate fees billed
by PricewaterhouseCoopers LLP during each Fund's last two fiscal years (i) to
each Fund for services provided to the Funds and (ii) to the Adviser and certain
entities controlling, controlled by, or under common control with the Adviser
that provide ongoing services to each Fund ("Adviser Entities") for engagements
directly related to the operations and financial reporting of each Fund.
- --------------------------------------------------------------------------------------------------------------------------
AUDIT FEES(1) AUDIT RELATED FEES(2) TAX FEES(3)
------------------- --------------------------------- ---------------------------------
ADVISER AND ADVISER AND
ADVISER ADVISER
FUND FUND ENTITIES FUND ENTITIES
------------------- --------------- --------------- --------------- ---------------
FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
2003 2004 2003 2004 2003 2004 2003 2004 2003 2004
- --------------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST I
Arizona Municipal.......... $8,060 $8,405 $0 $0 $0 $0 $658 $131 $0 $0
Colorado Municipal......... 6,457 6,836 0 0 0 0 658 54 0 0
Florida Municipal.......... 14,888 14,397 0 0 0 0 658 434 0 0
Maryland Municipal......... 7,834 8,513 0 0 0 0 658 131 0 0
New Mexico Municipal....... 6,766 7,133 0 0 0 0 658 69 0 0
Pennsylvania Municipal..... 9,352 9,779 0 0 0 0 658 198 0 0
Virginia Municipal......... 11,484 12,020 0 0 0 0 658 306 0 0
TOTAL FOR MULTISTATE TRUST
I........................ 64,841 67,083 0 0 0 0 4,606 1,323 0 0
MULTISTATE TRUST II
California Municipal....... 10,915 12,095 0 0 0 0 329 653 0 0
California Insured......... 10,815 12,270 0 0 0 0 329 662 0 0
Connecticut Municipal...... 11,192 13,171 0 0 0 0 329 701 0 0
Massachusetts Municipal.... 7,168 8,013 0 0 0 0 329 464 0 0
Massachusetts Insured...... 6,681 7,833 0 0 0 0 329 446 0 0
New Jersey Municipal....... 8,123 9,573 0 0 0 0 329 541 0 0
New York Municipal......... 12,008 13,729 0 0 0 0 329 748 0 0
New York Insured........... 13,089 15,001 0 0 0 0 329 799 0 0
TOTAL FOR MULTISTATE TRUST
II....................... 79,991 91,685 0 0 0 0 2,632 5,014 0 0
- ----------------------------- ---------------------------------
ALL OTHER FEES(4)
---------------------------------
ADVISER AND
ADVISER
FUND ENTITIES
--------------- ---------------
FISCAL FISCAL FISCAL FISCAL
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
2003 2004 2003 2004
- ----------------------------- ---------------------------------
MULTISTATE TRUST I
Arizona Municipal.......... $0 $0 $0 $0
Colorado Municipal......... 0 0 0 0
Florida Municipal.......... 0 0 0 0
Maryland Municipal......... 0 0 0 0
New Mexico Municipal....... 0 0 0 0
Pennsylvania Municipal..... 0 0 0 0
Virginia Municipal......... 0 0 0 0
TOTAL FOR MULTISTATE TRUST
I........................ 0 0 0 0
MULTISTATE TRUST II
California Municipal....... 0 0 0 0
California Insured......... 0 0 0 0
Connecticut Municipal...... 0 0 0 0
Massachusetts Municipal.... 0 0 0 0
Massachusetts Insured...... 0 0 0 0
New Jersey Municipal....... 0 0 0 0
New York Municipal......... 0 0 0 0
New York Insured........... 0 0 0 0
TOTAL FOR MULTISTATE TRUST
II....................... 0 0 0 0
41
- --------------------------------------------------------------------------------------------------------------------------
AUDIT FEES(1) AUDIT RELATED FEES(2) TAX FEES(3)
------------------- --------------------------------- ---------------------------------
ADVISER AND ADVISER AND
ADVISER ADVISER
FUND FUND ENTITIES FUND ENTITIES
------------------- --------------- --------------- --------------- ---------------
FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
2003 2004 2003 2004 2003 2004 2003 2004 2003 2004
- --------------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST III
Georgia Municipal.......... $9,545 $9,926 $0 $0 $0 $0 $658 $202 $0 $0
Louisiana Municipal........ 8,743 8,739 0 0 0 0 658 153 0 0
North Carolina Municipal... 11,061 11,385 0 0 0 0 658 273 0 0
Tennessee Municipal........ 13,804 14,506 0 0 0 0 658 427 0 0
TOTAL FOR MULTISTATE TRUST
III...................... 43,153 44,556 0 0 0 0 2,632 1,055 0 0
MULTISTATE TRUST IV
Kansas Municipal........... 8,769 9,172 0 0 0 0 658 174 0 0
Kentucky Municipal......... 17,657 18,269 0 0 0 0 658 612 0 0
Michigan Municipal......... 12,510 12,367 0 0 0 0 658 334 0 0
Missouri Municipal......... 11,943 12,440 0 0 0 0 658 328 0 0
Ohio Municipal............. 20,783 20,545 0 0 0 0 658 724 0 0
Wisconsin Municipal........ 6,594 6,989 0 0 0 0 658 60 0 0
TOTAL FOR MULTISTATE TRUST
IV....................... 78,256 79,782 0 0 0 0 3,948 2,232 0 0
MUNICIPAL TRUST
All-American............... 14,195 14,692 0 0 0 0 658 423 0 0
High Yield Municipal....... 9,932 17,662 0 0 0 0 658 411 0 0
Insured Municipal.......... 28,977 29,679 0 0 0 0 658 1,168 0 0
Intermediate Duration...... 79,714 75,817 0 0 0 0 658 3,476 0 0
Limited Term............... 25,912 28,433 0 0 0 0 658 1,116 0 0
TOTAL FOR MUNICIPAL
TRUST.................... 158,730 166,283 0 0 0 0 3,290 6,594 0 0
- ----------------------------- ---------------------------------
ALL OTHER FEES(4)
---------------------------------
ADVISER AND
ADVISER
FUND ENTITIES
--------------- ---------------
FISCAL FISCAL FISCAL FISCAL
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
2003 2004 2003 2004
- ----------------------------- ---------------------------------
MULTISTATE TRUST III
Georgia Municipal.......... $0 $0 $0 $0
Louisiana Municipal........ 0 0 0 0
North Carolina Municipal... 0 0 0 0
Tennessee Municipal........ 0 0 0 0
TOTAL FOR MULTISTATE TRUST
III...................... 0 0 0 0
MULTISTATE TRUST IV
Kansas Municipal........... 0 0 0 0
Kentucky Municipal......... 0 0 0 0
Michigan Municipal......... 0 0 0 0
Missouri Municipal......... 0 0 0 0
Ohio Municipal............. 0 0 0 0
Wisconsin Municipal........ 0 0 0 0
TOTAL FOR MULTISTATE TRUST
IV....................... 0 0 0 0
MUNICIPAL TRUST
All-American............... 0 0 0 0
High Yield Municipal....... 0 0 0 0
Insured Municipal.......... 0 0 0 0
Intermediate Duration...... 0 0 0 0
Limited Term............... 0 0 0 0
TOTAL FOR MUNICIPAL
TRUST.................... 0 0 0 0
42
- --------------------------------------------------------------------------------------------------------------------------
AUDIT FEES(1) AUDIT RELATED FEES(2) TAX FEES(3)
------------------- --------------------------------- ---------------------------------
ADVISER AND ADVISER AND
ADVISER ADVISER
FUND FUND ENTITIES FUND ENTITIES
------------------- --------------- --------------- --------------- ---------------
FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
2003 2004 2003 2004 2003 2004 2003 2004 2003 2004
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENT TRUST
Balanced Stock and Bond.... $6,835 $7,339 $0 $0 $0 $0 $658 $80 $0 $0
Balanced Municipal and
Stock.................... 7,722 8,067 0 0 0 0 658 116 0 0
Large-Cap Value............ 17,812 20,220 0 0 0 0 658 712 0 0
NWQ Multi-Cap Value(5)..... 3,450 7,990 0 0 0 0 0 70 0 0
TOTAL FOR INVESTMENT
TRUST.................... 35,819 43,616 0 0 0 0 1,974 978 0 0
INVESTMENT TRUST II
Rittenhouse Growth......... 12,196 13,684 0 0 0 0 658 399 0 0
NWQ International Value.... 5,727 6,588 0 0 0 0 658 37 0 0
TOTAL FOR INVESTMENT TRUST
II....................... 17,923 20,272 0 0 0 0 1,316 436 0 0
- ----------------------------- ---------------------------------
ALL OTHER FEES(4)
---------------------------------
ADVISER AND
ADVISER
FUND ENTITIES
--------------- ---------------
FISCAL FISCAL FISCAL FISCAL
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
2003 2004 2003 2004
- ----------------------------- ---------------------------------
INVESTMENT TRUST
Balanced Stock and Bond.... $0 $0 $0 $0
Balanced Municipal and
Stock.................... 0 0 0 0
Large-Cap Value............ 0 0 0 0
NWQ Multi-Cap Value(5)..... 2,360 0 0 0
TOTAL FOR INVESTMENT
TRUST.................... 2,360 0 0 0
INVESTMENT TRUST II
Rittenhouse Growth......... 0 0 0 0
NWQ International Value.... 0 3,728(6) 0 0
TOTAL FOR INVESTMENT TRUST
II....................... 0 3,728 0 0
- --------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the
audit of the Fund's annual financial statements and services provided in
connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and related
services reasonably related to the performance of the audit or review of
financial statements and are not reported under "Audit Fees.symbol "JNC."
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees," "Audit Related Fees" and "Tax Fees."
(5) NWQ Multi-Cap changed its fiscal year end from March 31 to June 30,
effective April 1, 2003. The amounts shown above for the fiscal year ended
2003 are for the fiscal period April 1, 2003 to June 30, 2003. For the
fiscal period December 9, 2002 (commencement of operations) to March 31,
2003, the following fees were billed to the Fund: Audit Fees of $5,862;
Audit Related Fees of $0; Tax Fees of $658 and All Other Fees of $0. During
the same period, no fees were billed by PricewaterhouseCoopers LLP to the
Adviser and Adviser Entities for engagements directly related to the
operations and financial reporting of the Fund.
(6) Reflects fees related to PricewaterhouseCoopers LLP's review of Form N-14
merger documents.
43
NON-AUDIT FEES. The following table provides the aggregate non-audit fees billed
by PricewaterhouseCoopers LLP for services rendered to each Fund, the Adviser
and the Adviser Entities during each Fund's last two fiscal years.
- ----------------------------------------------------------------------------------------------------------------------
TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
ADVISER ENTITIES
(ENGAGEMENTS RELATED TOTAL NON-AUDIT FEES
DIRECTLY TO THE BILLED TO ADVISER AND
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL ADVISER ENTITIES
BILLED TO FUND REPORTING OF FUND) (ALL OTHER ENGAGEMENTS)
------------------------- ------------------------- -------------------------
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR
ENDED 2003 ENDED 2004 ENDED 2003 ENDED 2004 ENDED 2003 ENDED 2004
- ----------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST I
Arizona Municipal................ $658 $131 $0 $0 $0 $0
Colorado Municipal............... 658 54 0 0 0 0
Florida Municipal................ 658 434 0 0 0 0
Maryland Municipal............... 658 131 0 0 0 0
New Mexico Municipal............. 658 69 0 0 0 0
Pennsylvania Municipal........... 658 198 0 0 0 0
Virginia Municipal............... 658 306 0 0 0 0
TOTAL FOR MULTISTATE TRUST I..... 4,606 1,323 0 0 0 0
MULTISTATE TRUST II
California Municipal............. 329 653 0 0 0 0
California Insured............... 329 662 0 0 0 0
Connecticut Municipal............ 329 701 0 0 0 0
Massachusetts Municipal.......... 329 464 0 0 0 0
Massachusetts Insured............ 329 446 0 0 0 0
New Jersey Municipal............. 329 541 0 0 0 0
New York Municipal............... 329 748 0 0 0 0
New York Insured................. 329 799 0 0 0 0
TOTAL FOR MULTISTATE TRUST II.... 2,632 5,014 0 0 0 0
- ----------------------------------- -------------------------
TOTAL
-------------------------
FISCAL YEAR FISCAL YEAR
ENDED 2003 ENDED 2004
- ----------------------------------- -------------------------
MULTISTATE TRUST I
Arizona Municipal................ $658 $131
Colorado Municipal............... 658 54
Florida Municipal................ 658 434
Maryland Municipal............... 658 131
New Mexico Municipal............. 658 69
Pennsylvania Municipal........... 658 198
Virginia Municipal............... 658 306
TOTAL FOR MULTISTATE TRUST I..... 4,606 1,323
MULTISTATE TRUST II
California Municipal............. 329 653
California Insured............... 329 662
Connecticut Municipal............ 329 701
Massachusetts Municipal.......... 329 464
Massachusetts Insured............ 329 446
New Jersey Municipal............. 329 541
New York Municipal............... 329 748
New York Insured................. 329 799
TOTAL FOR MULTISTATE TRUST II.... 2,632 5,014
44
- ----------------------------------------------------------------------------------------------------------------------
TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
ADVISER ENTITIES
(ENGAGEMENTS RELATED TOTAL NON-AUDIT FEES
DIRECTLY TO THE BILLED TO ADVISER AND
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL ADVISER ENTITIES
BILLED TO FUND REPORTING OF FUND) (ALL OTHER ENGAGEMENTS)
------------------------- ------------------------- -------------------------
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR
ENDED 2003 ENDED 2004 ENDED 2003 ENDED 2004 ENDED 2003 ENDED 2004
- ----------------------------------------------------------------------------------------------------------------------
MULTISTATE TRUST III
Georgia Municipal................ $658 $202 $0 $0 $0 $0
Louisiana Municipal.............. 658 153 0 0 0 0
North Carolina Municipal......... 658 273 0 0 0 0
Tennessee Municipal.............. 658 427 0 0 0 0
TOTAL FOR MULTISTATE TRUST III... 2,632 1,055 0 0 0 0
MULTISTATE TRUST IV
Kansas Municipal................. 658 174 0 0 0 0
Kentucky Municipal............... 658 612 0 0 0 0
Michigan Municipal............... 658 334 0 0 0 0
Missouri Municipal............... 658 328 0 0 0 0
Ohio Municipal................... 658 724 0 0 0 0
Wisconsin Municipal.............. 658 60 0 0 0 0
TOTAL FOR MULTISTATE TRUST IV.... 3,948 2,232 0 0 0 0
MUNICIPAL TRUST
All-American..................... 658 423 0 0 0 0
High Yield Municipal............. 658 411 0 0 0 0
Insured Municipal................ 658 1,168 0 0 0 0
Intermediate Duration............ 658 3,476 0 0 0 0
Limited Term..................... 658 1,116 0 0 0 0
TOTAL FOR MUNICIPAL TRUST........ 3,290 6,594 0 0 0 0
- ----------------------------------- -------------------------
TOTAL
-------------------------
FISCAL YEAR FISCAL YEAR
ENDED 2003 ENDED 2004
- ----------------------------------- -------------------------
MULTISTATE TRUST III
Georgia Municipal................ $658 $202
Louisiana Municipal.............. 658 153
North Carolina Municipal......... 658 273
Tennessee Municipal.............. 658 427
TOTAL FOR MULTISTATE TRUST III... 2,632 1,055
MULTISTATE TRUST IV
Kansas Municipal................. 658 174
Kentucky Municipal............... 658 612
Michigan Municipal............... 658 334
Missouri Municipal............... 658 328
Ohio Municipal................... 658 724
Wisconsin Municipal.............. 658 60
TOTAL FOR MULTISTATE TRUST IV.... 3,948 2,232
MUNICIPAL TRUST
All-American..................... 658 423
High Yield Municipal............. 658 411
Insured Municipal................ 658 1,168
Intermediate Duration............ 658 3,476
Limited Term..................... 658 1,116
TOTAL FOR MUNICIPAL TRUST........ 3,290 6,594
45
- ----------------------------------------------------------------------------------------------------------------------
TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
ADVISER ENTITIES
(ENGAGEMENTS RELATED TOTAL NON-AUDIT FEES
DIRECTLY TO THE BILLED TO ADVISER AND
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL ADVISER ENTITIES
BILLED TO FUND REPORTING OF FUND) (ALL OTHER ENGAGEMENTS)
------------------------- ------------------------- -------------------------
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR
ENDED 2003 ENDED 2004 ENDED 2003 ENDED 2004 ENDED 2003 ENDED 2004
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENT TRUST
Balanced Stock and Bond.......... $658 $80 $0 $0 $0 $0
Balanced Municipal and Stock..... 658 116 0 0 0 0
Large-Cap Value.................. 658 712 0 0 0 0
NWQ Multi-Cap Value(1)........... 2,360 978 0 0 0 0
TOTAL FOR INVESTMENT TRUST....... 4,334 1,886 0 0 0 0
INVESTMENT TRUST II
Rittenhouse Growth............... 658 399 0 0 0 0
NWQ International Value.......... 4,386 37 0 0 0 0
TOTAL FOR INVESTMENT TRUST II.... 5,044 436 0 0 0 0
- ----------------------------------- -------------------------
TOTAL
-------------------------
FISCAL YEAR FISCAL YEAR
ENDED 2003 ENDED 2004
- ----------------------------------- -------------------------
INVESTMENT TRUST
Balanced Stock and Bond.......... $658 $80
Balanced Municipal and Stock..... 658 116
Large-Cap Value.................. 658 712
NWQ Multi-Cap Value(1)........... 2,360 978
TOTAL FOR INVESTMENT TRUST....... 4,334 1,886
INVESTMENT TRUST II
Rittenhouse Growth............... 658 399
NWQ International Value.......... 4,386(2) 37
TOTAL FOR INVESTMENT TRUST II.... 5,044 436
- --------------------------------------------------------------------------------
(1) NWQ Multi-Cap changed its fiscal year end from March 31 to June 30,
effective April 1, 2003. The amounts shown above for the fiscal year ended
2003 are for the fiscal period April 1, 2003 to June 30, 2003. For the
fiscal period December 9, 2002 (commencement of operations) to March 31,
2003, no non-audit fees were billed by PricewaterhouseCoopers LLP to the
Fund or the Adviser and Adviser Entities.
(2) Reflects fees related to PricewaterhouseCoopers LLP's review of Form N-14
merger documents.
46
AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES. Generally, the audit
committee must approve each Fund's independent auditor's engagements (i) with
the Fund for audit or non-audit services and (ii) with the Adviser and Adviser
Entities for non-audit services if the engagement relates directly to the
operations and financial reporting of the Fund. Regarding tax and research
projects conducted by the independent auditors for each Fund and the Adviser and
Adviser Entities (with respect to the operations and financial reporting of each
Fund), such engagements will be (i) pre-approved by the audit committee if they
are expected to be for amounts greater than $10,000; (ii) reported to the audit
committee chairman for his verbal approval prior to engagement if they are
expected to be for amounts under $10,000 but greater than $5,000; and (iii)
reported to the audit committee at the next audit committee meeting if they are
expected to be for an amount under $5,000.
For engagements with PricewaterhouseCoopers LLP entered into on or after May 6,
2003, the audit committee approved in advance all audit services and non-audit
services that PricewaterhouseCoopers LLP provided to each Fund and to the
Adviser and Adviser Entities (with respect to the operations and financial
reporting of each Fund). None of the services rendered by PricewaterhouseCoopers
LLP to each Fund or the Adviser or Adviser Entities were pre-approved by the
audit committee pursuant to the pre-approval exception under Rule
2.01(c)(7)(i)(C) or Rule 2.01(c)(7)(ii) of Regulation S-X. The audit committee
has considered whether the provision of non-audit services rendered by
PricewaterhouseCoopers LLP to the Adviser and Adviser Entities that were not
required to be pre-approved by the audit committee is compatible with
maintaining PricewaterhouseCoopers LLP's independence.
ADDITIONAL INFORMATION
INFORMATION ABOUT THE UNDERWRITER
Nuveen Investments, LLC (the "Underwriter"), located at 333 West Wacker Drive,
Chicago, Illinois 60606, serves as the principal underwriter for each Fund. The
underwriter is a wholly-owned subsidiary of Nuveen.
BENEFICIAL OWNERSHIP
On December 31, 2005, Board Members and executive officers as a group
beneficially owned 1,338,618 shares of all funds managed by Adviser (includes
deferred units and shares held by the executive officers in Nuveen's
401(k)/profit sharing plan). Each Board Member's individual beneficial
shareholdings of each Fund constitute less than 1% of the outstanding shares of
each Fund. As of June 21, 2006, the Board Members and executive officers as a
group beneficially owned less than 1% of the outstanding shares of each Fund. As
of June 21, 2006, no shareholder beneficially owned more than 5% of any class of
shares of any Fund, except as stated in Appendix E.
SHAREHOLDER PROPOSALS
The TrustsTrust generally dodoes not hold annual shareholders' meetings, but will hold
special meetings as required or deemed desirable. Because eachthe Trust does not
hold regular shareholders' meetings, the anticipated date of the next special
shareholders' meeting (if any) cannot be provided. Shareholders wishing to
submit proposals for inclusion in a proxy statement for a
13
subsequent shareholders' meeting of athe Trust should send their written proposal
to the Trust at 333 West Wacker Drive, Chicago, Illinois 60606. Proposals must
be received a reasonable time before athe Trust begins to print and mail its
proxy materials for the meeting.
SHAREHOLDER COMMUNICATIONS
ShareholdersFund shareholders who want to communicate with the Board or any individual Board
Member should write their Fund to the attention of Lorna Ferguson, Manager of Fund Board
Relations, Nuveen Investments, 333 West Wacker Drive, Chicago, Illinois 60606.
The letter should 47
indicate that you are a Fund shareholder.shareholder and note the fund or
funds that you own. If the communication is intended for a specific Board Member
and so indicates it will be sent only to that Board Member. If a communication
does not indicate a specific Board Member it will be sent to the chair of the nominating and governance committeeLead
Independent Director and the outside counsel to the Independent Board Members
for further distribution as deemed appropriate by such persons.
EXPENSES OF PROXY SOLICITATION
The cost of preparing, printing and mailing the enclosed proxy, accompanying
notice and proxy statement and all other costs in connection with the
solicitation of proxies will be paid 70% by Nuveen and 30% by the Funds
(allocated among the Funds based on relative net assets).ICAP. Solicitation may be made by letter
or telephone by officers or employees of Nuveen or the Adviser, or by dealers
and their representatives. The Funds have engaged D.F. King & Co., Inc., to
assist in the solicitation of proxies at an estimated cost of $2,000 per Fund
plus reasonable expenses. ICAP will pay these solicitation costs.
FISCAL YEAR
The last fiscal year end for allthe Funds in Multistate Trust I, Multistate Trust
III and Multistate Trust IV was May 31, 2004. The last fiscal year end for all
Funds in Investment Trust was June 30, 2004. The last fiscal year end for all
Funds in Investment Trust II was July 31, 2004. The last fiscal year end for all
Funds in Multistate Trust II was February 28, 2005. The last fiscal year end for
all Funds in Municipal Trust was April 30, 2005.2006.
ANNUAL REPORT DELIVERY
Annual reports will be sent to shareholders of record of each Fund following
each Fund's fiscal year end. Each Fund will furnish, without charge, a copy of
its annual report and/or semi-annual report as available upon request. Such
written or oral requests should be directed to such Fund at 333 West Wacker
Drive, Chicago, Illinois 60606 or by calling 1-800-257-8787.
Please note that only one annual report or proxy statement may be delivered to
two or more shareholders of a Fund who share an address, unless the Fund has
received instructions to the contrary. To request a separate copy of an annual
report or proxy statement, or for instructions as to how to request a separate
copy of such documents or as to how to request a single copy if multiple copies
of such documents are received, shareholders should contact the applicable Fund
at the address and phone number set forth above.
GENERAL
Management does not intend to present and does not have reason to believe that
any other items of business will be presented at the Meetings.Meeting. However, if other
matters are properly presented to the MeetingsMeeting for a vote, the proxies will be
voted by the persons acting under the proxies upon such matters in accordance
with their judgment of the best interests of the Fund.Funds.
14
A list of shareholders entitled to be present and to vote at eachthe Meeting will be
available at the offices of the Funds, 333 West Wacker Drive, Chicago, Illinois,
for inspection by any 48
shareholder during regular business hours beginning ten
days prior to the date of the Meetings.Meeting.
Failure of a quorum to be present at anythe Meeting will necessitate adjournment
and will subject that Fundthe Funds to additional expense. The persons named in the
enclosed proxy may also move for an adjournment of anythe Meeting to permit further
solicitation of proxies with respect to any of the proposalsproposal if they determine that
adjournment and further solicitation is reasonable and in the best interests of
the shareholders. Under each Trust'sthe Funds' By-Laws, an adjournment of a meeting requires
the affirmative vote of a majority of the shares present in person or
represented by proxy at the meeting.
IF YOU CANNOT BE PRESENT AT THE MEETING, YOU ARE REQUESTED TO FILL IN, SIGN AND
RETURN THE ENCLOSED PROXY PROMPTLY. NO POSTAGE IS REQUIRED IF MAILED IN THE
UNITED STATES.
Jessica R. Droeger
Vice President and Secretary
June 16, 2005
49July 14, 2006
15
APPENDIX A
DATES RELATING TO ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS(1)SUB-ADVISORY AGREEMENT
- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
DATE ORIGINAL
DATE ORIGINAL INVESTMENT
INVESTMENT MANAGEMENTSUB-ADVISORY
SUB-ADVISORY AGREEMENT WAS
DATE OF ORIGINAL MANAGEMENT AGREEMENT WAS LAST
INVESTMENT AGREEMENT WAS LAST APPROVED
SUB-ADVISORY LAST APPROVED FOR MANAGEMENT APPROVEDCONTINUANCE
FUND AGREEMENT BY CONTINUANCESHAREHOLDERS BY
TRUST AGREEMENT SHAREHOLDERS BOARD
- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Multistate Trust I February 1,1997 December 20, 1996 May 11,Balanced Stock and Bond July 28, 2005 Multistate Trust II February 1, 1997 December 20, 1996 May 11,July 26, 2005* N/A
Balanced Municipal and Stock July 28, 2005 Multistate Trust III February 1, 1997 December 20, 1996 May 11,July 26, 2005* N/A
Large-Cap Value July 28, 2005 Multistate Trust IV February 1, 1997 December 20, 1996 May 11, 2005
Municipal Trust February 1, 1997 December 20, 1996 May 11, 2005
Investment Trust July 29, 1996 July 29, 1996 May 11, 2005
Investment Trust II October 31, 1997 November 12, 1997 May 11, 200526, 2005* N/A
- -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(1)* The Original Investment ManagementSub-Advisory Agreement for each Trust is with Nuveen
Advisory Corp. ("NAC") or Nuveen Institutional Advisory Corp. ("NIAC").
Effective January 1,was approved by shareholders of the
Funds at a special meeting held July 26, 2005 NAC and NIAC were merged into NAM. As a result,
NAC and NIAC became a part of NAM and ceasedrelating to exist separately. NAM
assumed all of NAC and NIAC's obligations under the Original Investment
Management Agreements. Like NAC and NIAC, NAM is a wholly-owned subsidiary
of Nuveen. The merger did not constitute a change in
control. There was no
change in who manages the Funds or in the Funds' investment objectives or
policies as a resultcontrol of the merger.NAM.
A-1
APPENDIX B
FORM OF INVESTMENT MANAGEMENTSUB-ADVISORY AGREEMENT
Agreement made this [31stAGREEMENT MADE THIS day of July 2005],August, 2006, by and between , a
Massachusetts business trust (the "Trust"), and NUVEEN ASSET MANAGEMENT,Nuveen Asset
Management, a Delaware corporation (the "Adviser"and registered investment adviser
("Manager"), to be effective [August 1, 2005]and Institutional Capital LLC, a Delaware limited liability company
and a federally registered investment adviser ("Sub-Adviser").
W I T N E S S E T H T H A T:
WHEREAS, AdviserManager serves as the investment manager for the following series of
Nuveen Investment Trust (the "Trust")--Nuveen Large-Cap Value Fund, Nuveen
Balanced Stock and Bond Fund and the Nuveen Balanced Municipal and Stock Fund
(each a "Fund" and, together, "the Funds") pursuant to an Investment Management
Agreement between Manager and the Funds (as such agreement may be modified from
time to time, the "Management Agreement");
WHEREAS, each Fund is an open-end management investment company registered under
the Investment Company Act of 1940, as amended (the "1940 Act") pursuant to an Investment Management Agreement
between Adviser and the Trust (as such agreement may be modified from time to
time, the "Management Agreement"); and
WHEREAS, the Trust desires to retain the Adviser as its agent to furnish
investment advisory services for the Trust, upon the terms and conditions
hereafter set forth;
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the
parties hereto agree as follows:
1. The Trust hereby employs the Adviser to act as the investment adviser
for, and to manage the investment and reinvestment of the assets of each
of the Trust's series as set forth on Exhibit A attached hereto (the
"Portfolios") or as may exist from time to time in accordance with the
Trust's investment objective and policies and limitations relating to
such Portfolio, and to administer the Trust's affairs to the extent
requested by and subject to the supervision of the Board of Trustees of
the Trust for the period and upon the terms herein set forth. The
investment of the assets of each Portfolio shall be subject to the
Trust's policies, restrictions and limitations with respect to
securities investments as set forth in the Trust's registration
statement on Form N-1A under the Securities Act of 1933 and the
Investment Company Act of 1940 covering the Trust's Portfolios' shares
of beneficial interest, including the Prospectus and Statement of
Additional Information forming a part thereof, all as filed with the
Securities and Exchange Commission and as from time to time amended, and
all applicable laws and the regulations of the Securities and Exchange
Commission relating to the management of registered open-end, management
investment companies.
The Adviser accepts such employment and agrees during such period to
render such services, to furnish office facilities and equipment and
clerical, bookkeeping and administrative services (other than such
services, if any, provided by the Trust's custodian, transfer agent and
shareholder service agent, and the like) for the Trust, to permit any of
its officers or employees to serve without compensation as trustees or
officers of the Trust if elected to such positions, and to assume the
obligations herein set forth for the compensation herein provided. The
Adviser shall, for all purposes herein provided, be deemed to be an
independent contractor and, unless
B-1
otherwise expressly provided or authorized, shall have no authority to
act for nor represent the Trust in any way, nor otherwise be deemed an
agent of the Trust.
2. For the services and facilities described in Section 1, the Trust will
pay to the Adviser, at the end of each calendar month, an investment
management fee related to each of the Trust's Portfolios. For each
Portfolio, calculated separately, the fees shall be computed at the rate
of:
a. Each Portfolio's Management Fee will equal the sum of a Fund-Level
Fee and a Complex-Level Fee.
b. The Fund-Level Fee for each Portfolio shall be calculated pursuant to
a fee breakpoint schedule (and by reference to the daily net assets
of the Portfolio) as provided below.
c. The Complex-Level Fee shall be calculated by reference to the daily
net assets of the Eligible Funds, as defined in section 2 below (with
such daily net assets to include, in the case of Eligible Funds whose
advisory fees are calculated by reference to net assets that include
net assets attributable to preferred stock issued by or borrowings by
the fund, such leveraging net assets) ("Complex-Level Assets"),
pursuant to the following annual fee schedule:
---------------------------------------------------------------------
COMPLEX-LEVEL ASSETS ANNUAL FEE
---------------------------------------------------------------------
First $55 billion .2000%
Next $1 billion .1800%
Next $1 billion .1600%
Next $3 billion .1425%
Next $3 billion .1325%
Next $3 billion .1250%
Next $5 billion .1200%
Next $5 billion .1175%
Next $15 billion .1150%
---------------------------------------------------------------------
With respect to Complex-Level Assets over $91 billion, both the Trust
(via its Board of Trustees) and the Adviser intend that the parties will
meet, prior to the time when Complex-Level Assets reach that level, to
consider and negotiate the fee rate or rates that will apply to such
assets. The parties agree that, in the unlikely event that Complex-Wide
Assets reach $91 billion prior to the parties reaching an agreement as
to the Complex-Level Fee rate or rates to be applied to such assets, the
Complex-Level Fee rate for such Complex-Level Assets shall be .1400%
until such time as the parties agree to a different rate or rates.
"Eligible Funds", for purposes of the Agreement, shall mean all
Nuveen-branded closed-end and open-end registered investment companies
organized in the United States. Any open-end or closed-end funds that
subsequently become part of the Nuveen complex because either (a) Nuveen
Investments, Inc. or its affiliates acquire the investment adviser to
such funds (or the adviser's parent), or (b) Nuveen Investments, Inc. or
its affiliates acquire the fund's adviser's rights
B-2
under the management agreement for such fund, will be evaluated by both
Nuveen management and the Nuveen Funds' Board, on a case-by-case basis,
as to whether or not these acquired funds would be included in the
Nuveen complex of Eligible Funds and, if so, whether there would be a
basis for any adjustments to the complex-level breakpoints.
For the month and year in which this Agreement becomes effective, or
terminates, and for any month and year in which a Portfolio is added or
eliminated from the Trust, there shall be an appropriate proration on
the basis of the number of days that the Agreement shall have been in
effect, or the Portfolio shall have existed, during the month and year,
respectively. The services of the Adviser to the Trust under this
Agreement are not to be deemed exclusive, and the Adviser shall be free
to render similar services or other services to others so long as its
services hereunder are not impaired thereby.
3. The net asset value of each Portfolio shall be calculated as provided
in the Declaration of Trust of the Trust. On each day when net asset
value is not calculated, the net asset value of a share of beneficial
interest of a Portfolio shall be deemed to be the net asset value of
such share as of the close of business on the last day on which such
calculation was made for the purpose of the foregoing computations.
4. Regardless of any of the above provisions, the Adviser guarantees that
the total expenses of each Portfolio in any fiscal year, exclusive of
taxes, interest, brokerage commissions, and extraordinary expenses such
as litigation costs, shall not exceed, and the Adviser undertakes to
pay or refund to the Portfolio any amount up to but not greater than
the aggregate fees received by the Adviser under this Agreement for
such fiscal year, the limitation imposed by any jurisdiction in which
the Trust continues to offer and sell shares of the Portfolio after
exceeding such limitation. Except as otherwise agreed to by the Trust
or the Adviser or unless otherwise required by the law or regulation of
any state, any reimbursement by the Adviser to a Portfolio under this
section shall not exceed the management fee payable to the Adviser by a
Portfolio under this Agreement.
5. The Adviser shall arrange for officers or employees of the Adviser to
serve, without compensation from the Trust, as trustees, officers or
agents of the Trust, if duly elected or appointed to such positions,
and subject to their individual consent and to any limitations imposed
by law.
6. Subject to applicable statutes and regulations, it is understood that
officers, trustees, or agents of the Trust are, or may be, interested
in the Adviser as officers, directors, agents, shareholders or
otherwise, and that the officers, directors, shareholders and agents of
the Adviser may be interested in the Trust otherwise than as trustees,
officers or agents.
7. The Adviser shall not be liable for any loss sustained by reason of the
purchase, sale or retention of any security, whether or not such
purchase, sale or retention shall have been based upon the
investigation and research made by any other individual, firm or
corporation, if such recommendation shall have been selected with due
care and in good faith, except loss resulting from willful misfeasance,
bad faith, or gross negligence on the part of the Adviser in the
performance of its
B-3
obligations and duties, or by reason of its reckless disregard of its
obligations and duties under this Agreement.
8. The Adviser currently manages other investment accounts and funds,
including those with investment objectives similar to the Trust, and
reserves the right to manage other such accounts and funds in the
future. Securities considered as investments for a Portfolio of the
Trust may also be appropriate for other Portfolios or for other
investment accounts and funds that may be managed by the Adviser.
Subject to applicable laws and regulations, the Adviser will attempt to
allocate equitably portfolio transactions among the Trust's Portfolios
and the portfolios of its other investment accounts and funds
purchasing securities whenever decisions are made to purchase or sell
securities by a Portfolio and another fund's portfolio or one or more
of such other accounts or funds simultaneously. In making such
allocations, the main factors to be considered by the Adviser will be
the respective investment objectives of the Trust Portfolio or
Portfolios purchasing such securities and such other accounts and
funds, the relative size of portfolio holdings of the same or
comparable securities, the availability of cash for investment by the
Trust Portfolios and such other accounts and funds, the size of
investment commitments generally held by the Trust Portfolios and such
accounts and funds, and the opinions of the persons responsible for
recommending investments to the Trust and such other accounts and
funds.
9. This Agreement shall continue in effect until [August 1, 2006], unless
and until terminated by either party as hereinafter provided, and shall
continue in force from year to year thereafter, but only as long as
such continuance is specifically approved, at least annually, in the
manner required by the Investment Company Act of 1940.
This Agreement shall automatically terminate in the event of its
assignment, and may be terminated at any time without the payment of
any penalty by the Trust or by the Adviser upon sixty (60) days'
written notice to the other party. The Trust may effect termination by
action of the Board of Trustees, or, with respect to any Portfolio, by
vote of a majority of the outstanding voting securities of that
Portfolio, accompanied by appropriate notice.
This Agreement may be terminated, at any time, without the payment of
any penalty, by the Board of Trustees of the Trust, or, with respect to
any Portfolio, by vote of a majority of the outstanding voting
securities of that Portfolio, in the event that it shall have been
established by a court of competent jurisdiction that the Adviser, or
any officer or director of the Adviser, has taken any action which
results in a breach of the covenants of the Adviser set forth herein.
Termination of this Agreement shall not affect the right of the Adviser
to receive payments on any unpaid balance of the compensation,
described in Section 2, earned prior to such termination.
10. If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule, or otherwise, the remainder shall not be
thereby affected.
11. The Adviser and its affiliates reserve the right to grant, at any time,
the use of the name "Nuveen" or the name "Flagship", or any
approximation or abbreviation thereof, to any other investment company
or business enterprise. Upon termination of this Agreement by either
party, or by its terms, the Trust shall thereafter refrain
B-4
from using any name of the Trust which includes "Nuveen" or "Flagship"
or any approximation or abbreviation thereof, or is sufficiently
similar to such name as to be likely to cause confusion with such name,
and shall not allude in any public statement or advertisement to the
former association.
12. Any notice under this Agreement shall be in writing, addressed and
delivered or mailed, postage prepaid, to the other party at such
address as such other party may designate for receipt of such notice.
13. The Trust's Declaration of Trust is on file with the Secretary of the
Commonwealth of Massachusetts. This Agreement is executed on behalf of
the Trust by the Trust's officers as officers and not individually and
the obligations imposed upon the Trust by this Agreement are not
binding upon any of the Trust's Trustees, officers or shareholders
individually but are binding only upon the assets and property of the
Trust.
IN WITNESS WHEREOF, the Trust and the Adviser have caused this Agreement to be
executed on the day and year above written.
By:
-------------------------
Vice President
Attest:
-------------------------
Assistant Secretary
NUVEEN ASSET MANAGEMENT
By:
-------------------------
Managing Director
Attest:
-------------------------
Assistant Secretary
B-5
EXHIBIT A
LIST OF EACH FUND IN THE TRUST
B-6
APPENDIX C
COMPLEX-LEVEL FEE RATES
- ------------------------------------------------------------------------
COMPLEX DAILY NET ASSETS FEE RATE
- ------------------------------------------------------------------------
First $55 billion 0.2000%
Next $1 billion 0.1800%
Next $1 billion 0.1600%
Next $3 billion 0.1425%
Next $3 billion 0.1325%
Next $3 billion 0.1250%
Next $5 billion 0.1200%
Next $5 billion 0.1175%
Next $15 billion 0.1150%
- ------------------------------------------------------------------------
FUND-LEVEL FEE RATES, AGGREGATE MANAGEMENT FEES PAID
AND NET ASSETS
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
MULTISTATE TRUST I
Arizona Municipal For the first $125 million 0.3500% $582,234 $97,778,309.43
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
For net assets over $5 billion 0.2500%
Colorado Municipal For the first $125 million 0.3500% $240,310 $43,343,344.75
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
For net assets over $5 billion 0.2500%
C-1
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
Florida Municipal For the first $125 million 0.3500% $1,893,315 $311,145,571.33
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Maryland Municipal For the first $125 million 0.3500% $588,624 $112,881,199.04
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
New Mexico
Municipal For the first $125 million 0.3500% $307,484 $54,398,258.25
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Pennsylvania
Municipal For the first $125 million 0.3500% $874,231 $162,895,618.63
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
C-2
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
Virginia Municipal For the first $125 million 0.3500% $1,341,301 $259,053,520.36
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
- -----------------------------------------------------------------------------------------------------------
MULTISTATE TRUST II
California
Municipal For the first $125 million 0.3500% $1,424,629 $267,449,035.39
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
California Insured For the first $125 million 0.3500% $1,409,278 $259,752,924.69
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Connecticut
Municipal For the first $125 million 0.3500% $1,550,494 $290,562,967.60
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
C-3
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
Massachusetts
Municipal For the first $125 million 0.3500% $631,317 $129,009,456.37
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Massachusetts
Insured For the first $125 million 0.3500% $499,646 $89,853,360.52
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
New Jersey
Municipal For the first $125 million 0.3500% $921,452 $171,574,918.05
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
New York Municipal For the first $125 million 0.3500% $1,827,587 $344,439,317.61
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
C-4
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
New York Insured For the first $125 million 0.3500% $1,966,813 $364,028,219.69
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
- -----------------------------------------------------------------------------------------------------------
MULTISTATE TRUST III
Georgia Municipal For the first $125 million 0.3500% $899,307 $160,479,308.45
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Louisiana Municipal For the first $125 million 0.3500% $677,995 $118,147,479.74
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
North Carolina
Municipal For the first $125 million 0.3500% $1,214,929 $225,115,290.34
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
C-5
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
Tennessee Municipal For the first $125 million 0.3500% $1,850,557 $340,075,498.15
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
- -----------------------------------------------------------------------------------------------------------
MULTISTATE TRUST IV
Kansas Municipal For the first $125 million 0.3500% $754,591 $132,375,191.59
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Kentucky Municipal For the first $125 million 0.3500% $2,642,597 $492,444,908.51
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Michigan Municipal For the first $125 million 0.3500% $1,449,761 $250,462,720.85
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
C-6
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
Missouri Municipal For the first $125 million 0.3500% $1,435,603 $260,204,298.93
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Ohio Municipal For the first $125 million 0.3500% $3,119,661 $565,333,655.98
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
Wisconsin Municipal For the first $125 million 0.3500% $273,705 $45,420,546.19
For the next $125 million 0.3375%
For the first $250 million 0.3250%
For the first $500 million 0.3125%
For the next $1 billion 0.3000%
For the next $3 billion 0.2750%
On assets of $5 billion and over 0.2500%
- -----------------------------------------------------------------------------------------------------------
MUNICIPAL TRUST
All-American For the first $125 million 0.3000% $1,663,030 $356,060,961.15
For the next $125 million 0.2875%
For the next $250 million 0.2750%
For the next $500 million 0.2625%
For the next $1 billion 0.2500%
For the next $3 billion 0.2250%
For net assets over $5 billion 0.2125%
C-7
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
High Yield
Municipal For the first $125 million 0.4000% $5,091,240 $1,470,730,117.10
For the next $125 million 0.3875%
For the next $250 million 0.3750%
For the next $500 million 0.3625%
For the next $1 billion 0.3500%
For net assets over $2 billion 0.3250%
Insured Municipal For the first $125 million 0.3000% $4,226,901 $890,411,394.37
For the next $125 million 0.2875%
For the next $250 million 0.2750%
For the next $500 million 0.2625%
For the next $1 billion 0.2500%
For the next $3 billion 0.2250%
For net assets over $5 billion 0.2125%
Intermediate
Duration For the first $125 million 0.3000% $12,003,177 $2,649,430,804.72
For the next $125 million 0.2875%
For the next $250 million 0.2750%
For the next $500 million 0.2625%
For the next $1 billion 0.2500%
For the next $3 billion 0.2250%
For net assets over $5 billion 0.2125%
Limited Term For the first $125 million 0.2500% $3,575,113 $821,566,275.45
For the next $125 million 0.2375%
For the next $250 million 0.2250%
For the next $500 million 0.2125%
For the next $1 billion 0.2000%
For the next $3 billion 0.1750%
For net assets over $5 billion 0.1625%
- -----------------------------------------------------------------------------------------------------------
C-8
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
INVESTMENT TRUST
Balanced Stock and
Bond For the first $125 million 0.5500% $407,756(3) $61,677,945.20
For the next $125 million 0.5375%
For the next $250 million 0.5250%
For the next $500 million 0.5125%
For the next $1 billion 0.5000%
For net assets over $2 billion 0.4750%
Balanced Municipal
and Stock For the first $125 million 0.5500% $666,644(4) $82,288,101.11
For the next $125 million 0.5375%
For the next $250 million 0.5250%
For the next $500 million 0.5125%
For the next $1 billion 0.5000%
For net assets over $2 billion 0.4750%
Large-Cap Value For the first $125 million 0.6500% $4,753,246 $510,045,874.44
For the next $125 million 0.6375%
For the next $250 million 0.6250%
For the next $500 million 0.6125%
For the next $1 billion 0.6000%
For net assets over $2 billion 0.5750%
NWQ Multi-Cap Value For the first $125 million 0.6500% $634,131 $347,365,963.97
For the next $125 million 0.6375%
For the next $250 million 0.6250%
For the next $500 million 0.6125%
For the next $1 billion 0.6000%
For net assets over $2 billion 0.5750%
- -----------------------------------------------------------------------------------------------------------
C-9
- -----------------------------------------------------------------------------------------------------------
FEES PAID TO
THE ADVISER
FUND AVERAGE DAILY DURING LAST NET ASSETS AS OF
FUND NET ASSETS FEE RATE(1) FISCAL YEAR(2) 5/1/05
- -----------------------------------------------------------------------------------------------------------
INVESTMENT TRUST II
Rittenhouse Growth For the first $125 million 0.6500% $2,439,673(5) $205,226,289.44
For the next $125 million 0.6375%
For the next $250 million 0.6250%
For the next $500 million 0.6125%
For the next $1 billion 0.6000%
For net assets over $2 billion 0.5750%
NWQ International
Value For the first $125 million 0.8500% $344,156 $103,567,480.47
For the next $125 million 0.8375%
For the next $250 million 0.8250%
For the next $500 million 0.8125%
For the next $1 billion 0.8000%
For net assets over $2 billion 0.7750%
- -----------------------------------------------------------------------------------------------------------
(1) The fee rates shown above went into effect on August 1, 2004. Prior to
August 1, 2004, the investment management fee paid by each Fund was
calculated using the above fund-level fee rates plus 0.20% at each
breakpoint asset level. There was no complex-level component of the
investment management fee prior to August 1, 2004.
(2) Prior to January 1, 2005, investment management services were provided to
the Funds by Nuveen Advisory Corp. ("NAC") or Nuveen Institutional Advisory
Corp. ("NIAC"). Effective January 1, 2005, NAC and NIAC were merged into
NAM. As a result, NAC and NIAC became a part of NAM and ceased to exist
separately. Prior to the reorganization, management fees were paid to NAC or
NIAC. Currently and under the New Investment Management Agreements, all
management fees will be paid to NAM. Like NAM, NAC and NIAC were wholly-
owned subsidiaries of Nuveen.
(3) Amount is net of expense reimbursements by NIAC. NIAC waived fees and
reimbursed expenses of $71,482 during the Fund's last fiscal year.
(4) Amount is net of expense reimbursements by NIAC. NIAC waived fees and
reimbursed expenses of $31,826 during the Fund's last fiscal year.
(5) Amount is net of expense reimbursements by NIAC. NIAC waived fees and
reimbursed expenses of $155,774 during the Fund's last fiscal year.
C-10
APPENDIX D
OFFICERS AND DIRECTORS OF
NUVEEN ASSET MANAGEMENT ("NAM")
WHO ARE NOT OFFICERS OR BOARD MEMBERS OF THE TRUSTS
- -------------------------------------------------------------------------------------------------------
NAME PRINCIPAL OCCUPATION
- -------------------------------------------------------------------------------------------------------
John P. Amboian President and Director of Nuveen Investments, Inc., Nuveen
Asset Management, Nuveen Investments, LLC, Rittenhouse
Asset Management, Inc., Nuveen Investments Advisers Inc.
and Nuveen Investments Holdings, Inc.
Alan G. Berkshire Senior Vice President, Secretary and General Counsel of
Nuveen Investments, Inc., Nuveen Asset Management, Nuveen
Investments, LLC, Rittenhouse Asset Management, Inc. and
Nuveen Investments Holdings, Inc.; Senior Vice President
and Secretary of Nuveen Investments Advisers Inc.;
Assistant Secretary of NWQ Investment Management Company,
LLC and Secretary of Symphony Asset Management, LLC.
Stuart J. Cohen Vice President, Assistant Secretary and Assistant General
Counsel of Nuveen Asset Management, Nuveen Investments,
LLC, Nuveen Investments Holdings, Inc. and Rittenhouse
Asset Management, Inc.; Vice President of Nuveen
Investments Advisers Inc.
Sherri A. Hlavacek Vice President and Corporate Controller of Nuveen Asset
Management, Nuveen Investments, LLC, Nuveen Investments
Holdings, Inc., Nuveen Investments Advisers Inc. and
Rittenhouse Asset Management, Inc.; Vice President and
Controller of Nuveen Investments, Inc.; Certified Public
Accountant.
Mary E. Keefe Managing Director of Nuveen Investments, Inc.; Managing
Director and Chief Compliance Officer of Nuveen
Investments, LLC, Nuveen Asset Management, Nuveen
Investments Advisers Inc. and Rittenhouse Asset Management,
Inc.
Margaret E. Wilson Senior Vice President, Finance of Nuveen Investments, Inc.,
Nuveen Asset Management, Nuveen Investments, LLC,
Rittenhouse Asset Management, Inc., Nuveen Investments
Advisers Inc. and Nuveen Investments Holdings, Inc.
- -------------------------------------------------------------------------------------------------------
D-1
APPENDIX E
DATES RELATING TO SUB-ADVISORY AGREEMENTS
- ----------------------------------------------------------------------------------------------------
DATE ORIGINAL
DATE ORIGINAL SUB-ADVISORY
SUB-ADVISORY AGREEMENT WAS
DATE OF ORIGINAL AGREEMENT WAS LAST APPROVED
SUB- SUB-ADVISORY LAST APPROVED FOR CONTINUANCE
TRUST/FUND ADVISER AGREEMENT BY SHAREHOLDERS BY BOARD
- ----------------------------------------------------------------------------------------------------
INVESTMENT TRUST
Balanced Stock and
Bond ICAP May 16, 1996 July 29, 1996 May 11, 2005
Balanced Municipal and
Stock ICAP May 16, 1996 July 29, 1996 May 11, 2005
Large-Cap Value ICAP May 16, 1996 July 29, 1996 May 11, 2005
NWQ Multi-Cap Value NWQ August 15, 2002 December 5, 2002 May 11, 2005
INVESTMENT TRUST II
NWQ International
Value NWQ October 4, 2002 October 4, 2002 May 11, 2005
Rittenhouse Growth Rittenhouse October 31, 1997 November 12, 1997 May 11, 2005
- ----------------------------------------------------------------------------------------------------
E-1
APPENDIX F
FORM OF INVESTMENT SUB-ADVISORY AGREEMENT
AGREEMENT MADE THIS [31st] day of [July, 2005] by and between Nuveen Asset
Management, a Delaware corporation and a registered investment adviser
("Manager"), and , a and a registered
investment adviser ("Sub-Adviser").
WHEREAS, Manager is the investment manager for the , each
a series (the "Fund(s)") of (the "Trust"), an open-end
diversified, management investment company registered under the Investment
Company Act of 1940, as amended ("1940 Act"); and
WHEREAS, Manager desires to retain Sub-Adviser as its agent to furnish
investment advisory services for each Fund,the Portfolios, upon the terms and conditions
hereafter set forth;forth.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the
parties hereto agree as follows:
1. Appointment. Manager hereby appoints Sub-Adviser to provide certain
sub-investment advisory services to each Fundthe Funds for the period and on the
terms set forth in this Agreement. Sub-Adviser accepts such appointments
and agrees to furnish the services herein set forth for the compensation
herein provided.
2. Additional Funds. In the event that the Trust establishes one or more
portfolios other than the Funds, with respect to which the Manager
desires to engage the Sub-Adviser to render investment advisory services
hereunder, the Manager shall notify the Sub-Adviser of such desire. If
the Sub-Adviser is willing to render such services, it shall notify the
Manager in writing whereupon such portfolio or portfolios shall become a
Fund or Funds hereunder.
3. Services to be Performed. Subject always to the supervision of Trust's
Board of Trustees and the Manager, Sub-Adviser will furnish an
investment program in respect of, make investment decisions for, and
place all orders for the purchase and sale of securities for, each Fund,the assets
designated in Schedule A hereto, as such schedule may be amended from
time to time, of the Funds and other portfolios hereunder, all on behalf
of each Fund.such Funds. In the performance of its duties, Sub-Adviser will
satisfy its fiduciary duties to the Trust,Funds (as set forth in Section 7,
below), and will monitor each Fund'sthe Funds' investments, and will comply with
the provisions of Trust's Declaration of Trust and By-laws, as amended
from time to time, and the stated investment objectives, policies and
restrictions of each Fund.the Portfolios. Manager will provide Sub-Adviser with
current copies of the Trust's Declaration of Trust, By-laws, prospectus
and any amendments thereto, and any objectives, policies or limitations
not appearing therein as they may be relevant to Sub-Adviser's
performance under this Agreement.
B-1
Sub-Adviser and Manager will each make its officers and employees
available to the other from time to time at reasonable times to review
investment policies of each Fundthe Funds and to consult with each other
regarding the investment affairs of each Fund.the Funds. Sub-Adviser will report
to the Board of Trustees and to Manager with respect to the
implementation of such program.
Sub-Adviser is authorized to select the brokers or dealers that will
execute the purchases and sales of portfolio securities for each Fund,
and is directed to use its best efforts to obtain best execution, which
includes most favorable net results and execution of the Trust's orders,
taking into account all appropriate factors, including price, dealer
spread or commission, size and difficulty of the transaction and
research or other services provided. It is understood that the
Sub-Adviser will not be deemed to have acted unlawfully, or to have
breached a fiduciary duty to the Trust or the Funds, or be in breach of
any obligation owing to the Trust or the Funds under this Agreement, or
otherwise, solely by reason of its having caused the Trust to pay
F-1
a member of a securities exchange, a broker or a dealer a commission for
effecting a securities transaction for the Trust in excess of the amount
of commission another member of an exchange, broker or dealer would have
charged if the Sub-Adviser determined in good faith that the commission
paid was reasonable in relation to the brokerage or research services
provided by such member, broker or dealer, viewed in terms of that
particular transaction or the Sub-Adviser's overall responsibilities
with respect to its accounts, including the Trust, as to which it
exercises investment discretion. In addition, if in the judgment of the
Sub-Adviser, a Fund would be benefited by supplemental services, the
Sub-Adviser is authorized to pay spreads or commissions to brokers or
dealers furnishing such services in excess of spreads or commissions
which another broker or dealer may charge for the same transaction,
provided that the Sub-Adviser determined in good faith that the
commission or spread paid was reasonable in relation to the services
provided. The Sub-Adviser will properly communicate to the officers and
trustees of the Trust such information relating to transactions for each
Fund as they may reasonably request. In no instance will portfolio
securities be purchased from or sold to the Manager, Sub-Adviser or any
affiliated person of either the Trust, Manager, or Sub-Adviser, except
as may be permitted under the 1940 Act and under no circumstances will
Sub-Adviser select brokers or dealers for Fund transactions on the basis
of Fund share sales by such brokers or dealers;
Sub-Adviser further agrees that it:
(a) will use the same degree of skill and care in providing such services
as it uses in providing services to fiduciary accounts for which it has
investment responsibilities;
(b) will conform to all applicable Rules and Regulations of the Securities
and Exchange Commission in all material respects and in addition will
conduct its activities under this Agreement in accordance with any
applicable regulations of any governmental authority pertaining to its
investment advisory activities;
(c) Sub-Adviser is authorized to select the brokers or dealers that will
execute the purchases and sales of portfolio securities for the Funds
and is directed to use its best efforts to obtain best execution, which
includes most favorable net results and execution of the Fund's orders,
taking into account all appropriate factors, including price, dealer
spread or commission, size and difficulty of the transaction and
research or other services provided. It is understood that the Sub-
Adviser will not be deemed to have acted unlawfully, or to have
breached a fiduciary duty to the Trust or in respect of any Fund, or be
in breach of any obligation owing to the Trust or in respect of any
Fund under this Agreement, or otherwise, solely by reason of its having
caused a Fund to pay a member of a securities exchange, a broker or a
dealer a commission for effecting a securities transaction for the Fund
in excess of the amount of commission another member of an exchange,
broker or dealer would have charged if the Sub-Adviser determined in
good faith that the commission paid was reasonable in relation to the
brokerage or research services provided by such member, broker or
dealer, viewed in terms of that particular transaction or the Sub-
Adviser's overall responsibilities with respect to its accounts,
including the Funds, as to which it exercises investment discretion. In
addition, if in the judgment of the Sub-Adviser, the Funds would be
benefited by supplemental services, the Sub-Adviser is authorized to
pay spreads or commissions to brokers or dealers furnishing such
services in excess of spreads or commissions which another broker or
dealer may charge for the same transaction, provided that the Sub-
Adviser determined in good faith that the commission or spread paid was
reasonable in relation to the services provided. The Sub-Adviser will
properly communicate to the officers and trustees of the Trust such
information relating to transactions for any Fund as they may
reasonably request. In no instance will portfolio securities be
purchased from or sold to the Manager, Sub-Adviser or any affiliated
person of either the Trust, Manager, or Sub-Adviser, except as may be
permitted under the 1940 Act;
B-2
(d) will report regularly to Manager and to the Board of Trustees of the
Trust and will
make appropriate persons available for the purpose of reviewing with
representatives of Manager and the Board of Trustees on a regular basis
at reasonable times the management of the Funds, including, without
limitation, review of the general investment strategies of the Funds,
the performance of the Funds in relation to standard industry indices,
interest rate considerations and general conditions affecting the
marketplace and will provide various other reports from time to time as
reasonably requested by Manager; and
(d)(e) will prepare such books and records with respect to each Fund'sthe Funds'
securities transactions as requested by the Manager and will furnish
Manager and Trust's Board of Trustees such periodic and special reports
as the Board or Manager may reasonably request.
3.4. Expenses. During the term of this Agreement, Sub-Adviser will pay all
expenses incurred by it in connection with its activities under this
Agreement other than the cost of securities (including brokerage
commission, if any) purchased for the Trust.
F-2
4.Funds.
5. Compensation. For the services provided and the expenses assumed
pursuant to this Agreement, Manager will pay the Sub-Adviser, and the
Sub-Adviser agrees to accept as full compensation therefor, aat the end
of each calendar month, an equity or fixed income portfolio management
fee equal to .
The management fee shall accrue on each calendar day, and shall be
payable monthly on the first business dayspecified proportion of the next succeeding
calendar month. Theeach Fund's average daily fee accrual shall be computed by multiplying
the fraction of one divided by the number of days in the calendar year
by the applicable annual rate of fee, and multiplying this product by
the net assets of the Trust, determined in the manner established by the
Board of Trustees, as of the close of business on the last preceding
business day on which the Trust's net asset
value was determined.set forth in Schedule A hereto, as such schedule may be amended
from time to time, at an annual rate as set forth below, which rate is
determined by reference to the average daily market value of the equity
and fixed income assets, respectively, of all Nuveen-sponsored
investment products for which Institutional Capital serves as portfolio
manager, applying the same proportions as set forth in Schedule A.
- -------------------------------------------------------------
EQUITY ASSETS OF NUVEEN-SPONSORED INVESTMENT EQUITY
PRODUCTS MANAGED BY INSTITUTIONAL CAPITAL MANAGEMENT FEE
- -------------------------------------------------------------
For the first $500 million .35 of 1%
For the next $500 million .30 of 1%
For assets over $1 billion .25 of 1%
- -------------------------------------------------------------
FIXED-INCOME ASSETS OF NUVEEN-SPONSORED
INVESTMENT FIXED INCOME
PRODUCTS MANAGED BY INSTITUTIONAL CAPITAL MANAGEMENT FEE
- -------------------------------------------------------------
For the first $500 million .20 of 1%
For the next $500 million .15 of 1%
For assets over $1 billion .12 of 1%
For the month and year in which this Agreement becomes effective or
terminates, there shall be an appropriate proration on the basis of the
number of days that the Agreement is in effect during the month and year,
respectively.
5.B-3
6. Services to Others. Manager understands, and has advised Trust's Board
of Trustees, that Sub-Adviser now acts, or may in the future act, as an
investment adviser to fiduciary and other managed accounts, and as
investment adviser or sub-investment adviser to other investment
companies, that are not a series of the Trust, provided that whenever eacha Fund and one or more other
investment advisory clients of Sub-Adviser have available funds for
investment, investments suitable and appropriate for each will be
allocated in a manner believed by Sub-Adviser to be equitable to each.
Manager recognizes, and has advised Trust's Board of Trustees, that in
some cases this procedure may adversely affect the size of the position
that eacha Fund may obtain in a particular security. It is further agreed
that, on occasions when the Sub-Adviser deems the purchase or sale of a
security to be in the best interests of eacha Fund as well as other
accounts, it may, to the extent permitted by applicable law, but will
not be obligated to, aggregate the securities to be so sold or purchased
for eachthe Fund with those to be sold or purchased for other accounts in
order to obtain favorable execution and lower brokerage commissions. In
addition, Manager understands, and has advised Trust's Board of
Trustees, that the persons employed by Sub-Adviser to assist in Sub-Adviser'sSub-
Adviser's duties under this Agreement will not devote their full time to
such effortsservice and servicenothing contained in this Agreement will be deemed to
limit or restrict the Trust.right of Sub-Adviser or any of its affiliates to
engage in and devote time and attention to other businesses or to render
services of whatever kind or nature. It is also agreed that the Sub-AdviserSub-
Adviser may use any supplemental research obtained for the benefit of
the TrustFunds in providing investment advice to its other investment
advisory accounts or for managing its own accounts.
6.7. Limitation of Liability. Manager will not take any action against Sub-AdviserSub-
Adviser to hold Sub-Adviser liable for any error of judgment or mistake
of law or for any loss suffered by the TrustFund in connection with the
performance of Sub-Adviser's duties under this Agreement, except for a
loss resulting from Sub-Adviser's willful misfeasance, bad faith, or
gross negligence in the performance of its duties or by reason of its
reckless disregard of its obligations and duties under this Agreement.
7.8. Cross-Indemnification. Each party to this Agreement ("Indemnitor" )
shall indemnify and hold the other party and its officers, directors,
employees, representatives, agents, and affiliates (collectively,
"Indemnitee" ) harmless as follows:
a. Duty to Indemnify. Each Indemnitee shall be indemnified against any and
all losses, liabilities, damages, expenses and other costs (including,
without limitation, Indemnitee's own attorneys' and paralegals' fees and
other litigation expenses) suffered or incurred by Indemnitee arising
out of or in connection with any breach or violation of this Agreement,
federal or state statutes, rules or regulations, exchange or self-
regulatory agency rules and regulations, or common law that is
attributable in whole or, to the extent responsible, in part to
Indemnitor's actions or the actions of any person whom Indemnitor may
supervise or control, in any civil, criminal, administrative,
arbitration, mediation or other proceeding.
B-4
b. Notice of Claims. An Indemnitee asserting an indemnity claim shall
promptly notify Indemnitor in writing of the amount and nature of the
claim. Upon receipt of an indemnity claim, the Indemnitor shall, within
30 days, fulfill any part of its obligation then due under this Section
or give Indemnitee a written explanation for its denial of the claim. If
any indemnity claim is not denied, Indemnitor shall continue to fulfill
its indemnity obligations as and when they come due. The Indemnitee
shall be entitled at its expense to participate in the defense of any
claim, lawsuit, or proceedings. No claim asserted by a third party for
which indemnification from Indemnitor is sought shall be settled without
first obtaining the written consent of Indemnitor, which consent shall
not be unreasonably withheld.
9. Term; Termination; Amendment. This Agreement shall become effective
with respect to each Fundthe Funds on [August 1, 2005]; provided thatthe same date as it has beenis approved by a vote
of a majority of the outstanding voting securities of each Fund in
accordance with the requirements of the 1940 Act, and shall remain in
full force until [AugustAugust 1, 2006]2007 unless sooner terminated as hereinafter
provided. This Agreement shall
F-3
continue in force from year to year
thereafter with respect to each Fund, but only as long as such
continuance is specifically approved for each Fund at least annually in
the manner required by the 1940 Act and the rules and regulations
thereunder; provided, however, that if the continuation of this
Agreement is not approved for eacha Fund, the Sub-Adviser may continue to
serve in such capacity for eachsuch Fund in the manner and to the extent
permitted by the 1940 Act and the rules and regulations thereunder.
This Agreement shall automatically terminate in the event of its assignment
and may be terminated at any time without the payment of any penalty by the
Manager on sixty (60) days' written notice to the Sub-Adviser. This
Agreement may also be terminated by the Trust with respect to eachany Fund by
action of the Board of Trustees or by a vote of a majority of the
outstanding voting securities of such Fund on sixty (60) days' written
notice to the Sub-Adviser by the Trust.Fund.
This Agreement may be terminated with respect to eachany Fund at any time
without the payment of any penalty by the Manager, the Board of Trustees or
by vote of a majority of the outstanding voting securities of eachsuch Fund in
the event that it shall have been established by a court of competent
jurisdiction that the Sub-Adviser or any officer or director of the Sub-AdviserSub-
Adviser has taken any action which results in a breach of the covenants of
the Sub-Adviser set forth herein.
The terms "assignment" and "vote of a majority of the outstanding voting
securities" shall have the meanings set forth in the 1940 Act and the rules
and regulations thereunder.
Termination of this Agreement shall not affect the right of the Sub-Adviser
to receive payments on any unpaid balance of the compensation described in
Section 45 earned prior to such termination.
This Agreement shall automatically terminate in the event the Investment
Management Agreement between the Manager and the TrustFund is terminated,
assigned or not renewed.
8.B-5
10. Notice. Any notice under this Agreement shall be in writing, addressed
and delivered or mailed, postage prepaid, to the other party If to the Manager:
If to the Sub-Adviser:
orat such
address as such other party may designate for the receipt of such
notice.
F-4
9.11. Limitations on Liability. All parties hereto are expressly put on
notice of the Trust's Agreement and Declaration of Trust and all
amendments thereto, a copyall of which isare on file with the Secretary of
the Commonwealth of
Massachusetts, and the limitation of shareholder and trustee liability
contained therein. The obligations of the Trust entered in the name or
on behalf thereof by any of the Trustees, representatives or agents are
made not individually but only in such capacities and are not binding
upon any of the Trustees, officers, or shareholders of the Trust
individually but are binding upon only the assets and property of the
Trust, and persons dealing with the TrustFund must look solely to the assets
of the Trust and those assets belonging to the subject Fund, for the
enforcement of any claims.
10.12. Miscellaneous. The captions in this Agreement are included for
convenience of reference only and in no way define or delimit any of
the provisions hereof or otherwise affect their construction or effect.
If any provision of this Agreement is held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement
will not be affected thereby. This Agreement will be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors.
11.13. Applicable Law. This Agreement shall be construed in accordance with
applicable federal law and (except as to Section 911 hereof which shall
be construed in accordance with the laws of Massachusetts) the laws of
the State of Illinois.
B-6
IN WITNESS WHEREOF, the Manager and the Sub-Adviser have caused this Agreement
to be executed as of the day and year first above written.
NUVEEN ASSET MANAGEMENT, a
Delaware corporation
By:
-------------------------------------------------------------
Title: -------------------------
Managing Director
- ------------------------
Title:
-----------------
INSTITUTIONAL CAPITAL LLC, a
Delaware limited liability
By:
-------------------------------------------------------------
Title:
-------------------------
F-5Attest:
- ------------------------
Title:
-----------------
B-7
INVESTMENT SUB-ADVISORY AGREEMENT
SCHEDULE A
NUVEEN LARGE-CAP VALUE FUND
Assets for which Services are to
be
rendered pursuant to Section 3: All
Proportions applied under fee
schedule
pursuant to Section 5: 100% of all assets under Equity
Management Fee
NUVEEN BALANCED STOCK AND BOND FUND
Assets for which Services are to
be
rendered pursuant to Section 3: All
Proportions applied under fee
schedule
pursuant to Section 5: The percentage of the Target Investment mix
allocated by the Fund Board of Trustees from
time to time to Equity Securities under Equity
Management Fee
All remaining assets under Fixed Income
Management Fee
NUVEEN BALANCED MUNICIPAL AND STOCK FUND
Assets for which Services are to
be
rendered pursuant to Section 3: All Equity Securities
Proportions applied under fee
schedule
pursuant to Section 5: The percentage of the Target Investment mix
allocated by the Fund Board of Trustees from
time to time to Equity Securities under Equity
Management Fee
Effective as of , 2006
B-8
APPENDIX GC
SUB-ADVISORY FEE RATES AND AGGREGATE SUB-ADVISORY FEES PAID
- -----------------------------------------------------------------------------------------------------------------------------------
FEE RATE
---------------------------------------------------------------
ASSETS OF ALL THE EQUITY FIXED-INCOME FEES PAID TO THE
NUVEEN SPONSORED PORTFOLIO PORTFOLIO SUB-ADVISER
INVESTMENT PRODUCTS MANAGEMENT MANAGEMENT DURING LAST
TRUST FUND SUB-ADVISER MANAGED BY ICAP(1) FEE FEE FISCAL YEAR
- -----------------------------------------------------------------------------------------------------------------------------------
Investment Balanced Stock ICAP For the first $500 million 0.35% 0.20% $176,690
Trust and Bond For the next $500 million 0.30% 0.15%
For assets over $1 billion 0.25% 0.12%
Investment Balanced ICAP For the first $500 million 0.35% 0.20% $110,539
Trust Municipal and For the next $500 million 0.30% 0.15%
Stock For assets over $1 billion 0.25% 0.12%
Investment Large-Cap Value ICAP For the first $500 million 0.35% 0.20% $1,938,157
Trust For the next $500 million 0.30% 0.15%
For assets over $1 billion 0.25% 0.12%
FEES PAID
TO THE
SUB-ADVISER
DURING LAST
TRUST FUND SUB-ADVISER FEE RATE FISCAL YEAR
- ---------------------------------------------------------------------------------------------
Investment Trust NWQ Multi- NWQ 50% of the advisory fee paid to $ 281,867
Cap Value NAM for its service to theRATE
For each Fund,
(net of any waivers,
reimbursement payments,
supermarket fees and alliance
fees waived, reimbursed or paid
by NAM in respect of the Fund)
Investment Trust II NWQ NWQ 50% of the advisory fee paid to $ 156,102
International NAM for its service to the Fund
Value (net of any waivers,
reimbursement payments,
supermarket fees and alliance
fees waived, reimbursed or paid
by NAM in respect of the Fund)
FEES PAID
FEE RATE TO THE
----------------------------------- SUB-ADVISER
DAILY NET ASSETS OF % OF DAILY DURING LAST
TRUST FUND SUB-ADVISER RITTENHOUSE GROWTH NET ASSETS FISCAL YEAR
- ------------------------------------------------------------------------------------------------
Investment Trust II Rittenhouse Rittenhouse For the first $500 0.35% $ 1,081,212
Growth million 0.30%
For assets over $500
million
- ------------------------------------------------------------------------------------------------
(1) NAM pays ICAP a portfolio management fee at the rates set forth
below. The portfolio management fee is based on the average daily market value
of all the Nuveen-sponsored investment products for which itICAP serves as
portfolio manager. NAM pays ICAP separate portfolio management fees for the
equity and fixed-income portions of the Funds' assets if applicable,
according to(for Balanced Municipal
and Stock, ICAP manages only the above schedule.
G-1
Fund's equity investments).
- -----------------------------------------------------------------------
ASSETS OF ALL THE NUVEEN SPONSORED FIXED-INCOME
INVESTMENT EQUITY PORTFOLIO PORTFOLIO
PRODUCTS MANAGED BY ICAP MANAGEMENT FEE MANAGEMENT FEE
- -----------------------------------------------------------------------
For the first $500 million 0.35% 0.20%
For the next $500 million 0.30% 0.15%
For assets over $1 billion 0.25% 0.12%
- -----------------------------------------------------------------------
AGGREGATE SUB-ADVISORY FEES PAID
- ------------------------------------------------------------------------
FEES PAID TO
ICAP DURING LAST NET ASSETS
FUND FISCAL YEAR AS OF 6/1/06
- ------------------------------------------------------------------------
Balanced Stock and Bond $ 174,923 $ 57,363,639
Balanced Municipal and Stock $ 100,274 $ 79,169,893
Large-Cap Value $1,812,096 $534,382,007
- ------------------------------------------------------------------------
FEE RATES AND NET ASSETS OF OTHER FUNDS ADVISED BY SUB-ADVISERSICAP
WITH SIMILAR INVESTMENT OBJECTIVES AS THE SUB-ADVISED FUNDS
- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
SUB-ADVISER
SIMILAR FUND FEE RATE AS OF 5/6/1/0506
- ----------- ----------------- ---------------------------------------------- ----------------------------------------------------------------------------------------------------
ICAP UBS Pace Large Co 0.30%Equity Fund 0.80% of the fund's average daily $861,800,000
net assets
$1,178,878,411.24(1)- -----------------------------------------------------------------------------------
Hirtle Callaghan Trust Value 0.35% of the fund's average daily $910,600,000(2)
Equity Portfolio(1) net assets managed by ICAP
Investments
NWQ ING International 0.50% of average daily net assets on the first $4,400,000
Value Choice Fund $300 million; and 0.55% thereafter at any
aggregate asset level
NWQ Activa 0.65% of the average of the daily aggregate $32,100,000
International net asset value of the fund on the first
Fund $50,000,000 of assets and 0.55% on the assets
in excess of $50,000,000
Rittenhouse Average Daily % of Average
MLIG Net Assets of the Fund Daily Net Assets
Roszel/Rittenhouse ---------------------------- ----------------
Large Cap Growth For the first $200 million 0.35% $9,716,929
Portfolio For the next $200 million 0.27%
For assets over $400 million 0.25%
Rittenhouse UBS Fiduciary 0.40% of net assets $90,258,590
Trust
Company Large
Company Growth
Portfolio
- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(1)1 ICAP serves as sub-adviser to this fund.
2 Net assets aremanaged by ICAP as of June 9, 2005.
G-21, 2006 equaled $712,900,000.
C-1
APPENDIX HD
OFFICERS AND DIRECTORS OF SUB-ADVISERS
WHO ARE NOT OFFICERS OR BOARD MEMBERS OF THE TRUSTSICAP
- ---------------------------------------------------------------------------------------
SUB-ADVISER------------------------------------------------------------------------
NAME AND ADDRESS PRINCIPAL OCCUPATION
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------
ICAP
Robert H. Lyon President, and Chief Investment Officer and
225 West Wacker Drive Director of ICAP
Funds, Inc.Suite 2400
Chicago, ILIllinois 60606
Jerrold K. Senser Executive Vice President and Co-Chief
225 West Wacker Drive Investment Officer of ICAP
Suite 2400
Chicago, Illinois 60606
Pamela H. Conroy SeniorExecutive Vice President, Chief Operating
225 West Wacker Drive Officer, Chief Compliance Officer and
Suite 2400 Director of ICAP
Chicago, Illinois 60606
Thomas R. Wenzel Executive Vice President and Director of
225 West Wacker Drive Institutional Capital Corporation; Vice
Chicago, IL 60606 President, Treasurer and DirectorResearch of ICAP
Funds, Inc.Suite 2400
Chicago, Illinois 60606
Gary S. Maurer Executive Vice President and Directorof ICAP
225 West Wacker Drive
of Institutional Capital Corporation;Suite 2400
Chicago, ILIllinois 60606
DirectorPaula L. Rogers Executive Vice President of ICAP
Funds, Inc.
NWQ Michael C. Mendez Chief Executive Officer of NWQ;
2049 Century Park East, 4th Floor Investment Management Company, LLC;
Los Angeles, CA 90067 President and Director of NWQ
Investment Management Company, Inc.
Jon D. Bosse, CFA Chief Investment Officer and Managing
2049 Century Park East, 4th Floor Director of NWQ Investment Management
Los Angeles, CA 90067 Company, LLC; Managing Director and
Portfolio Manager of NWQ Investment
Management Company, Inc.
Edward C. Friedel, CFA Senior Managing Director of NWQ
2049 Century Park East, 4th Floor Investment Management Company, LLC;
Los Angeles, CA 90067 Managing Director of NWQ Investment
Management Company, Inc.
Rittenhouse John P. Amboian President and Director of Nuveen
333 W. Wacker Drive Investments, Inc., Nuveen Asset
Chicago, IL 60605 Management, Nuveen Investments, LLC,
Rittenhouse Asset Management, Inc.,
Nuveen Investments Advisers Inc. and
Nuveen Investments Holdings, Inc.
Alan G. Berkshire Senior Vice President, Secretary and
333 W. Wacker Drive General Counsel of Nuveen Investments,
Chicago, IL 60606 Inc., Nuveen Asset Management, Nuveen
Investments, LLC, Rittenhouse Asset
Management, Inc. and Nuveen Investments
Holdings, Inc.; Senior Vice President
and Secretary of Nuveen Investments
Advisers Inc.; Assistant Secretary of
NWQ Investment Management Company, LLC
and Secretary of Symphony Asset
Management, LLC.
Stuart J. Cohen Vice President, Assistant Secretary and
333225 West Wacker Drive
Assistant General Counsel ofSuite 2400
Chicago, ILIllinois 60606
Rittenhouse Asset Management, Inc.,
Nuveen Asset Management, Nuveen
Investments, LLC and Nuveen Investments
Holdings, Inc.; Vice President of
Nuveen Investments Advisers Inc.
William L. Conrad Managing Director of Rittenhouse Asset
Five Radnor Corporate Center Management, Inc.
Radnor, PA 19087- ------------------------------------------------------------------------
H-1D-1
APPENDIX E
- ---------------------------------------------------------------------------------------
SUB-ADVISER NAME AND ADDRESS PRINCIPAL OCCUPATION
- ---------------------------------------------------------------------------------------
Nancy M. Crouse Managing Director of Rittenhouse Asset
Five Radnor Corporate Center Management, Inc.
Radnor, PA 19087
Sherri A. Hlavacek Vice President and Corporate Controller
333 West Wacker Drive of Rittenhouse Asset Management, Inc.,
Chicago, IL 60606 Nuveen Investments, LLC, Nuveen Asset
Management, Nuveen Investments
Holdings, Inc. and Nuveen Investments
Advisers Inc.; Vice President and
Controller of Nuveen Investments, Inc.;
Certified Public Accountant.
Mary E. Keefe Managing Director of Nuveen
333 W. Wacker Drive Investments, Inc.; Managing Director
Chicago, IL 60606 and Chief Compliance Officer of Nuveen
Investments, LLC, Nuveen Asset
Management, Nuveen Investments Advisers
Inc., Nuveen Investments Institutional
Services Group LLC and Rittenhouse
Asset Management, Inc.
Michael H. Lewers Managing Director of Rittenhouse Asset
Five Radnor Corporate Center Management, Inc.
Radnor, PA 19087
Daniel C. Roarty Managing Director of Rittenhouse Asset
Five Radnor Corporate Center Management, Inc.
Radnor, PA 19087
John P. Waterman Chief Investment Officer of Rittenhouse
Five Radnor Corporate Center Asset Management, Inc.
Radnor, PA 19087
Margaret E. Wilson Senior Vice President, Finance of
333 W. Wacker Drive Nuveen Investments, Inc., Nuveen Asset
Chicago, IL 60606 Management, Nuveen Investments, LLC,
Rittenhouse Asset Management, Inc.,
Nuveen Investments Advisers Inc. and
Nuveen Investments Holdings, Inc.
Margaret S. Woolley Vice President and Director of Trading
Five Radnor Corporate Center of Rittenhouse Asset Management, Inc.
Radnor, PA 19087
H-2
APPENDIX I
BENEFICIAL OWNERS OF 5% OR MORE OF FUND SHARES
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT OF
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NWQ Multi-
Cap ValueBalanced Class A Citigroup Global Markets Inc. 631,760.3140 7.89%331,558.6720 13.63%
Municipal House Account
and Stock Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
Charles Schwab & Co. Inc. for the 1,880,316.4250 23.48%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
MLPF&S for the Benefit of its 648,966.8800 8.11%
Customers 221,227.6560 9.09%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 122,407.9230 8.07%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 1,245,283.1990 21.46%37,961.7410 8.98%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,013,307.6640 17.46%
Customers 4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Charles Schwab & Co. Inc. 1,425,441.1910 43.92%
Reinvest Account
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA 94104-4122
Home Federal Bank of Tennessee 240,180.1530 7.40%
Custodian for Benefit of Iron
Workers
District Council of Tennessee
Valley & Vicinity Annuity
Custody Account
515 Market Street, Suite 500
Knoxville, TN 37902-2145
American Express Trust Co. 255,173.6400 7.86%
Amer. Exp. Trust Ret. Ser. Pl.
996 AXP Financial Center
Minneapolis, MN 55474-0009
- -------------------------------------------------------------------------------------------
I-1
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
NWQ
International
Value Class A Charles Schwab & Co. Inc. for the 606,754.1150 29.77%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
MLPF&S for the Benefit of its 358,374.6200 17.58%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 136,238.5830 35.44%
Customers104,016.4960 24.60%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 55,730.8310 6.22%25,653.4120 8.13%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 404,743.4330 45.14%
Customers 4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R American Express Trust Co. 272,341.0430 24.23%
Amer. Exp. Trust Ret. Ser. Pl.
996 AXP Financial Center
Minneapolis, MN 55474-0009
Charles Schwab & Co. Inc. for the 580,230.9150 51.63%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
- -------------------------------------------------------------------------------------------
Rittenhouse
Growth Class A Citigroup Global Markets Inc. 186,106.5590 8.83%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 341,873.7090 16.23%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 1,939,295.4830 43.84%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-2
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C Citigroup Global Markets Inc. 351,867.6230 10.24%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,389,920.4940 40.47%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R FIIOC as Agent for Qualified 48,907.0110 6.46%
Employee Benefit Plans (401K)
FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
American Express Trust Co. 321,296.1610 42.47%
Amer. Exp. Trust Ret. Ser. Pl.
996 AXP Financial Center
Minneapolis, MN 55474-0009
Nuveen Investments Inc. 63,168.1240 8.35%
Rittenhouse Long Term Comp. Plan
2003
Attn: Peggy Wilson
333 W. Wacker Drive
Chicago, IL 60606-1220
- -------------------------------------------------------------------------------------------
Balanced
Municipal
and Stock Class A Citigroup Global Markets Inc. 296,057.5800 12.42%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 209,319.5350 8.78%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 83,464.6800 10.41%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 214,341.6380 26.73%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-3
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C Citigroup Global Markets Inc. 24,760.2570 7.61%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 56,496.4650 17.37%
Customers54,518.6590 17.27%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Citigroup Global Markets Inc. 6,224.1500 18.30%2,792.0350 5.59%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
Leonard Pearl and Joan D. Pearl 5,248.7180 15.43%10.55%
707 Mix Avenue, Apt. 24
Hamden, CT 06514-2208
Jane B. Howland 1,706.2950 5.02%
1166 Main Street
Williamstown, MA 01267-2622
MLPF&S for the Benefit of its 2,990.7110 8.79%
Customers 3,091.6760 6.21%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
LPL Financial Services 2,616.6590 5.26%
9785 Towne Centre Drive
San Diego, CA 92121-1968
Arthur Angers 2,612.5200 7.68%2,701.6680 5.43%
2008 Arbor Drive
Clearwater, FL 33760-1942
Leonard Angers 2,612.5210 7.68%2,701.6690 5.43%
109 Gullot Road
Schenectady, NY 12306-4317
E-1
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT OF
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED CLASS
- --------------------------------------------------------------------------------------------------
Balanced Stock and
Bond Class A Citigroup Global Markets Inc. 150,926.0580 12.20%168,534.3300 13.91%
and Bond House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 226,104.5220 18.28%
Customers 199,028.8410 16.43%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its Customers 114,780.9320 35.70%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its Customers 177,990.7960 61.67%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Ameriprise Trust Co. 108,648.6130 29.96%
Ameriprise Trust Ret. Ser. Pl.
996 AXP Financial Center
Minneapolis, MN 55474-0009
NFS LLC FEBO 166,385.7930 45.87%
The Northern Trust Company
P.O. Box 92956
Chicago, IL 60675-2956
Large-Cap Class A Citigroup Global Markets Inc. 24,420.1380 5.37%2,499,477.5450 15.42%
Value House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 151,174.5210 33.27%
Customers 4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-4
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C MLPF&S for the Benefit of its 190,138.8560 61.36%
Customers2,428,298.2630 14.98%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R FIIOC as Agent for Qualified 102,511.4330 25.25%
Employee Benefit Plans (401K)
FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
American Express Trust Co. 82,820.6550 20.40%
Amer. Exp. Trust Ret. Ser. Pl.
996 AXP Financial Center
Minneapolis, MN 55474-0009
NFS LLC FEBO 150,878.5060 37.16%
The Northern Trust Company
P.O. Box 92956
Chicago, IL 60675-2956
- -------------------------------------------------------------------------------------------
Large-Cap
Value Class AB Citigroup Global Markets Inc. 2,402,034.5270 14.59%74,367.1340 7.29%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 2,428,644.9130 14.76%
Customers 349,072.6600 34.21%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class BC Citigroup Global Markets Inc. 162,940.0760 8.59%95,944.1190 8.87%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 595,233.9130 31.37%
Customers 4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 132,047.9110 10.45%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 630,010.0980 49.85%
Customers496,533.7320 45.88%
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-5E-2
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT OF
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Class R FIIOC as Agent forDCGT 103,306.5320 10.98%
FBO Various Qualified 105,225.7440 12.13%
Employee Benefit Plans
(401K)
FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
American ExpressAttn. NPIO Trade Desk
711 High Street
Des Moines, IA 50309-2732
Ameriprise Trust Co. 318,834.4620 36.75%
Amer. Exp.357,715.4750 38.03%
Ameriprise Trust Ret. Ser. Pl. 996
AXP Financial Center
Minneapolis, MN 55474-0009
- -------------------------------------------------------------------------------------------
All-American Class A Citigroup Global Markets Inc. 2,168,889.6390 10.10%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 3,260,489.6440 15.18%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 898,827.9930 24.84%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 452,626.1590 6.72%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 2,739,309.7420 40.64%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Nikki L. Teik, Trustee, and 36,746.5560 5.89%
Robert J. Teik, Trustee
The Teik Family Trust
20 Lakeside Drive
S. Barrington, IL 60010-5311
Alice B. Bonnet 58,973.0690 9.45%
P.O. Box 669
La Porte, IN 46352-0669
Kenneth Z. Slater 132,454.8020 21.23%
Richard J. Slater
The Kendall Trust
c/o George Famigillo Jr., CPA
1634 Main Street
Sarasota, FL 34236-5811
- ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
I-6
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
High Yield
Municipal Class A Citigroup Global Markets Inc. 2,192,069.6210 5.71%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 7,385,462.2410 19.24%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 1,339,704.3820 19.79%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 2,230,935.4170 9.99%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 8,244,593.7660 36.93%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Charles Schwab & Co. Inc. for the 1,373,888.1120 32.96%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
Kenneth Z. Slater 252,209.3820 6.05%
Richard J. Slater
The Kendall Trust
c/o George Famigillo Jr., CPA
1634 Main Street
Sarasota, FL 34236-5811
- -------------------------------------------------------------------------------------------
Insured
Municipal Class B Citigroup Global Markets Inc. 382,526.2360 10.51%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 453,817.3780 12.47%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-7
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C Citigroup Global Markets Inc. 173,750.2810 5.57%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 490,805.7530 15.74%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
- -------------------------------------------------------------------------------------------
Intermediate
Duration Class A Charles Schwab & Co. Inc. for the 1,781,438.9120 6.45%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
MLPF&S for the Benefit of its 2,213,178.0720 8.01%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 211,138.0270 5.39%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,305,433.9980 33.34%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its 3,368,541.6220 48.07%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
- -------------------------------------------------------------------------------------------
Limited Term Class A Citigroup Global Markets Inc. 7,167,662.8070 15.83%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 8,339,509.9390 18.41%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 2,396,797.2840 8.22%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 14,195,593.1070 48.70%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-8
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class R Kenneth Z. Slater 573,816.7590 33.64%
Richard J. Slater
The Kendall Trust
c/o George Famigillo Jr., CPA
1634 Main Street
Sarasota, FL 34236-5811
- -------------------------------------------------------------------------------------------
Arizona
Municipal Class A Citigroup Global Markets Inc. 415,612.3920 6.51%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,022,062.5780 16.00%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 136,629.7800 30.95%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
First Clearing, LLC 23,037.2960 5.22%
Lola L. Hutchinson and April B.
Johansen
3110 N. 42nd Street
Phoenix, AZ 85018-6418
George S. Stingel 30,622.3510 6.94%
Bene. Natalie J. Donovan
3850 N. Highway 89, Apt. 325
Prescott, AZ 86301
Class C Citigroup Global Markets Inc. 46,544.8690 6.17%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 264,022.2450 35.01%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Pershing LLC 50,220.2230 6.66%
P.O. Box 2052
Jersey City, NJ 07303-2052
Class R UBS Financial Services Inc. 96,686.5210 6.70%
FBO Lois Irene Jones, Trustee
Lois Irene Jones Trust
8656 N. 84th Street
Scottsdale, AZ 85258-2431
- -------------------------------------------------------------------------------------------
I-9
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
California
Municipal Class A Citigroup Global Markets Inc. 528,151.2430 7.88%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
Class B Citigroup Global Markets Inc. 159,608.7220 11.36%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 162,481.9410 11.56%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Willis S. Slusser and Marion B. 73,440.3380 5.23%
Slusser
200 Deer Valley Road, Apt. 1D
San Rafael, CA 94903-5513
Class C Citigroup Global Markets Inc. 175,344.3650 9.55%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 444,286.8950 24.19%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
LPL Financial Services 91,886.1460 5.00%
9785 Towne Centre Drive
San Diego, CA 92121-1968
Class R Citigroup Global Markets Inc. 951,291.0370 6.11%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
Charles Schwab & Co. Inc. for the 787,110.7350 5.06%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
- -------------------------------------------------------------------------------------------
California
Insured Class A UBS Financial Services Inc. 714,811.4930 9.60%
FBO Mildred D. Galli
Trustee of the Mildred D. Galli
Revocable Trust
48 Linden Avenue
Atherton, CA 94027-2149
I-10
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class B Citigroup Global Markets Inc. 88,172.8350 5.31%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 312,069.8070 18.81%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 103,110.1300 8.56%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 218,542.5100 18.14%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Dean Witter for the Benefit of 72,992.7010 6.06%
the Maniatakos Family Trust
P.O. Box 250
Church Street Station
New York, NY 10008-0250
- -------------------------------------------------------------------------------------------
Colorado
Municipal Class A Citigroup Global Markets Inc. 296,771.1700 9.69%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 448,225.0100 14.63%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 79,329.1210 15.16%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Dean Witter for the Benefit of 30,090.2670 5.75%
Mildred S. Sorrells
P.O. Box 250
Church Street Station
New York, NY 10008-0250
Pershing LLC 33,062.3920 6.32%
P.O. Box 2052
Jersey City, NJ 07303-2052
Pershing, LLC 60,196.8870 11.51%
P.O. Box 2052
Jersey City, NJ 07303-2052
I-11
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C Citigroup Global Markets Inc. 30,110.8000 6.29%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 120,418.8600 25.16%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
UBS Financial Services Inc. 29,791.4600 6.22%
FBO Hugh Craig Forshner
3246 S. Newcombe
Lakewood, CO 80227-6731
Class R Raymond Munyon 38,224.1900 49.86%
Lisa Ann Munyon & Renee L. Miller
TR
Munyon Family Irrevocable Trust
7650 Kline Drive
Arvada, CO 80005-3776
UBS Financial Services Inc. 5,390.9320 7.03%
FBO Julius C. Sweatman Revocable
Trust
5450 W. Geddes Avenue
Littleton, CO 80128-4949
AG Edwards & Sons Inc. 13,035.3760 17.00%
FBO Harold M. Gott
One North Jefferson
St. Louis, MO 63103-2205
- -------------------------------------------------------------------------------------------
Connecticut
Municipal Class A Citigroup Global Markets Inc. 1,390,269.6550 6.74%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 3,112,035.0700 15.09%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 171,241.2020 6.49%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 519,746.2430 19.69%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-12
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C Citigroup Global Markets Inc. 316,740.3820 9.46%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 782,270.8080 23.36%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Richard M. Timberlake 37,728.6870 11.13%
1/2 Bolling Place, Apt. 208
Greenwich, CT 06830-6540
Elizabeth L. McColgin 21,363.9050 6.30%
Elizabeth L. McColgin Trust
101 Hat Shop Hill Road
Bridgewater, CT 06752-1238
UBS Financial Services Inc. 22,201.8930 6.55%
FBO Caren L. Schwartz
320 Flintlock Road
Southport, CT 06890-1079
Edward D. Jones and Co. 42,391.0540 12.51%
F/A/O Philip Thomas Benard
P.O. Box 2500
Maryland Heights, MO 63043-8500
- -------------------------------------------------------------------------------------------
Florida
Municipal Class A Citigroup Global Markets Inc. 1,209,423.0580 6.48%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 4,779,199.9680 25.61%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 148,103.0670 5.89%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 764,737.2940 30.39%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-13
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C Citigroup Global Markets Inc. 272,367.0890 9.35%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 980,462.3260 33.64%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Frank H. Poe 761,942.7420 12.20%
Frank H. Poe Trust
425 S. Dixie Highway
Coral Gables, FL 33146-2202
Charles Schwab & Co. Inc. for the 414,833.6950 6.64%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
- -------------------------------------------------------------------------------------------
Georgia
Municipal Class A Citigroup Global Markets Inc. 528,994.1200 5.19%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 2,296,526.2690 22.51%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 532,068.0330 36.01%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its 836,926.3910 34.84%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R NFSC FEBO 34,707.5290 11.40%
Faye D. Scott
2065 Compton Way
Alpharetta, GA 30022-7125
Christine M. Wade 165,864.5900 54.49%
Wade Living Trust
105 Autumn Glen Circle, Apt. 414
Fayetteville, GA 30215-6878
- -------------------------------------------------------------------------------------------
I-14
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Kansas
Municipal Class A Citigroup Global Markets Inc. 707,878.9330 7.73%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 989,244.8650 10.80%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 52,638.5790 5.45%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its 282,150.8810 13.15%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Raymond James and Assoc. Inc. 15,718.4210 11.61%
FBO Peterson Lisa T.
880 Carillon Parkway
St. Petersburg, FL 33716-1100
Trukan & Co. 76,235.2180 56.33%
P.O. Box 3699
Wichita, KS 67201-3699
Dennis C. Burgess & Judy A. 9,261.9560 6.84%
Burgess
P.O. Box 505
Dighton, KS 67839-0505
Barbara J. Wiechman 6,962.8000 5.14%
5400 SW 27th Terrace
Topeka, KS 66614-1706
- -------------------------------------------------------------------------------------------
Kentucky
Municipal Class A MLPF&S for the Benefit of its 2,480,420.0490 6.56%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 257,289.8690 13.68%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 390,285.4580 9.60%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,021,254.0270 25.11%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-15
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class R Hugh M. Cohen 29,985.9290 21.42%
4003 Adelaide Court
Louisville, KY 40241-4106
Edward D. Jones & Co. FAO 8,282.0980 5.92%
Joseph E. Knight
P.O. Box 2500
Maryland Heights, MO 63043-8500
Fifth Third Bank Ttee 16,689.9950 11.92%
Joseph & Doris
P.O. Box 3385
Cincinnati, OH 45263-0001
Barbara Feldman Trust 15,821.1140 11.30%
Barbara Feldman
3458 Sunbrite Drive
Covington, KY 41015-2356
Bank of Benton 50,321.9930 35.95%
Attn: Linda Blanchard
1012 Main Street
Benton, KY 42025-1412
- -------------------------------------------------------------------------------------------
Louisiana
Municipal Class A MLPF&S for the Benefit of its 2,686,050.1140 35.48%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 520,558.0330 35.18%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 103,272.0620 8.52%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 477,370.5350 39.38%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-16
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class R Richard Lucas 14,584.3730 54.67%
3846 Independence Drive
Alexandria, LA 71303-3533
Jack L. Roberts and Ethelene 3,422.4310 12.83%
Roberts
141 Island Road
Marksville, LA 71351-4514
Pershing LLC 1,410.9120 5.29%
P.O. Box 2052
Jersey City, NJ 07303-2052
Pershing LLC 2,610.9660 9.79%
P.O. Box 2052
Jersey City, NJ 07303-2052
LPL Financial Services 4,382.8450 16.43%
9785 Towne Centere Drive
San Diego, CA 92121-1968
- -------------------------------------------------------------------------------------------
Maryland
Municipal Class A Citigroup Global Markets Inc. 226,054.7670 5.48%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 309,876.5850 7.51%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 75,203.6330 5.75%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 335,917.4990 25.68%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
NFSC FEBO 93,143.3960 7.12%
Alan F. Rabson
Ruth Kirschstein
6 West Drive
Bethesda, MD 20814-1510
Class C MLPF&S for the Benefit of its 267,742.7520 18.54%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
- -------------------------------------------------------------------------------------------
I-17
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Massachusetts
Municipal Class B Citigroup Global Markets Inc. 107,432.0760 16.47%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 195,961.1460 30.05%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its 198,391.6760 18.65%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
NFSC FEBO 54,502.4110 5.12%
Sybil G. Byrnes
9 Indian Dawn
Wayland, MA 01778-3920
- -------------------------------------------------------------------------------------------
Massachusetts
Insured Class B Citigroup Global Markets Inc. 45,590.8630 7.10%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
Josephine H. Penna 35,189.6830 5.48%
Marilyn P. Kane
Anita C. Morace
JT Wros
80 Howard Street
Agawam, MA 01001-1132
Class C MLPF&S for the Benefit of its 83,837.2770 7.77%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
- -------------------------------------------------------------------------------------------
Michigan
Municipal Class A Citigroup Global Markets Inc. 1,686,667.1830 11.05%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 4,948,824.5780 32.41%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-18
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class B Citigroup Global Markets Inc. 95,578.9970 12.75%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 280,784.9860 37.46%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 274,470.3110 8.49%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,491,447.9910 46.12%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
- -------------------------------------------------------------------------------------------
Missouri
Municipal Class A Citigroup Global Markets Inc. 1,036,765.1710 5.01%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
Makua LP 1,080,541.1900 5.22%
c/o Bradford K. Werner
Pentahui LLC
101 S. Hanley Road, Suite 1260
St. Louis, MO 63105-3406
MLPF&S for the Benefit of its 2,370,450.3460 11.45%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 116,284.2230 14.16%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its 808,236.6980 45.69%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-19
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class R Frank J. Mack III, Ttee 4,380.2310 9.10%
Laverne M. Mack Trust
851 W. Lois Street
Springfield, MO 65807-2512
Terry M. Moser, Ttee 7,782.1440 16.16%
Terry M. Moser Revocable Trust
5414 Village Courtway Lane
St. Louis, MO 63128-3847
LPL Financial Services 4,835.9820 10.04%
9785 Towne Centre Drive
San Diego, CA 92121-1968
Susan Williams, Ttee 16,819.6530 34.94%
Neil M. Bischoff and Martha L.
Bischoff Residual Trust
2830 Hilly Haven Court
St. Louis, MO 63129-5708
Pershing LLC 9,179.2020 19.07%
P.O. Box 2052
Jersey City, NJ 07303-2052
- -------------------------------------------------------------------------------------------
New Jersey
Municipal Class A Citigroup Global Markets Inc. 623,760.2730 8.96%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 467,095.5940 6.71%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 182,547.8930 8.04%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 452,369.1020 19.92%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 147,494.5510 5.78%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 619,864.9320 24.31%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-20
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class R Charles Schwab & Co. Inc. for the 268,302.3540 6.69%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
- -------------------------------------------------------------------------------------------
New Mexico
Municipal Class A Citigroup Global Markets Inc. 708,077.4120 17.58%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 870,248.1260 21.60%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 62,459.0400 13.16%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
NFSC FEBO 26,655.4050 5.62%
Dorothy Tiramani
6100 Cortaderia Street NE, Apt.
4013
Albuquerque, NM 87111-8012
Class C Joe O. Greenleaf POA 83,082.3000 13.90%
Richard E. Greenleaf Gen. Partner
Richard E. Greenleaf LP No. 1
7325 Welton Drive. NE
Albuquerque, NM 87109-3990
MLPF&S for the Benefit of its 96,302.2650 16.11%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Raymond James & Assoc. Inc. 34,873.3380 5.83%
FBO Salazar Trust
880 Carillon Parkway
St. Petersburg, FL 33716-1100
Raymond James & Assoc. Inc. 59,196.4950 9.90%
FBO Gebhart Trust
880 Carillon Parkway
St. Petersburg, FL 33716-1100
Raymond James & Assoc. Inc. 42,702.3950 7.14%
FBO Hillerman R
880 Carillon Parkway
St. Petersburg, FL 33716-1100
I-21
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class R Herschell W. Rogers 5,175.8150 6.14%
Rosemary E. Rogers
HW & RE Rogers Rev. Trust
4509 Acapulco Drive
Albuquerque, NM 87111-2813
Mary Swickard 37,368.2340 44.33%
84 Barcelona Avenue
Los Alamos, NM 87544-3428
William V. Mason and Jean C. 8,417.0310 9.98%
Mason
200 Oak Street NE
Albuquerque, NM 87106-4740
Iris Sokohl 5,286.2370 6.27%
10904 Pagosa Drive NW
Albuquerque, NM 87114-5661
Winifred F. Rice 5,091.0000 6.04%
2801 San Pablo Street NE
Albuquerque, NM 87110-2714
- -------------------------------------------------------------------------------------------
New York
Municipal Class A Citigroup Global Markets Inc. 1,066,493.7910 8.83%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,186,928.2000 9.83%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 445,075.9980 14.21%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 481,150.1310 15.36%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 313,744.6750 9.16%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,022,575.1050 29.84%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-22
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class R Citigroup Global Markets Inc. 1,264,440.6920 9.85%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
- -------------------------------------------------------------------------------------------
New York
Insured Class A Citigroup Global Markets Inc. 707,826.4080 8.59%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
Class B Citigroup Global Markets Inc. 467,528.7750 22.55%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 405,081.6450 19.54%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
NFSC FEBO 168,635.6740 8.14%
William M. Donofrio
25 Homer Street
Staten Island, NY 10301-3101
Class C Citigroup Global Markets Inc. 136,700.6760 8.78%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 618,267.9270 39.70%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Citigroup Global Markets Inc. 3,438,320.8140 15.71%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
- -------------------------------------------------------------------------------------------
North
Carolina
Municipal Class A Citigroup Global Markets Inc. 934,813.0090 5.77%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 1,512,464.7950 9.33%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-23
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class B MLPF&S for the Benefit of its 239,408.4950 12.18%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C Citigroup Global Markets Inc. 295,756.3010 11.43%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 787,323.4070 30.43%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R SEI Trust Company 15,233.9560 5.13%
c/o Hawaiian Bank
Attn: Mutual Funds
1 Freedom Valley Drive
Oaks, PA 19456
John Clayton Smith 17,970.8040 6.05%
14 Springmoor Drive
Raleigh, NC 27615-4324
Ruth A. Smith 35,482.8650 11.94%
14 Springmoor Drive
Raleigh, NC 27615-4324
- -------------------------------------------------------------------------------------------
Ohio
Municipal Class A Citigroup Global Markets Inc. 1,683,175.6110 5.48%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 7,415,586.7040 24.16%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 801,060.2890 36.37%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its 1,662,935.6660 42.30%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
- -------------------------------------------------------------------------------------------
Pennsylvania
Municipal Class A MLPF&S for the Benefit of its 980,173.4370 14.83%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B MLPF&S for the Benefit of its 305,197.4890 26.88%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
I-24
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C MLPF&S for the Benefit of its 1,110,480.8340 44.32%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Charles Schwab & Co. Inc. for the 296,713.3720 5.67%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
- -------------------------------------------------------------------------------------------
Tennessee
Municipal Class A Citigroup Global Markets Inc. 1,232,596.7600 5.14%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 3,636,374.5280 15.71%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 112,468.4050 6.22%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 155,785.9920 8.61%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its 1,494,798.7070 38.98%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
NFSC FEBO 278,745.6450 7.27%
Louise K. Ellis
1550 Kenesaw Drive
Knoxville, TN 37919-7861
Class R Darius A. Hensley 15,111.0920 7.29%
P.O. Box 305
Piney Flats, TN 37686-0305
S. Terry Canale 50,986.9990 24.60%
1594 Peabody Avenue
Memphis, TN 38104-3833
UBS Financial Services, Inc. 28,951.1900 13.97%
FBO Anderl Molterer
5001 Clonmel Road
Nashville, TN 37220-1501
Bancorp South Bank 42,574.6070 20.54%
C O Trust
P.O. Box 1605
Jackson, MS 39215-1605
- -------------------------------------------------------------------------------------------
I-25
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Virginia
Municipal Class A MLPF&S for the Benefit of its 1,865,003.8030 12.53%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class B Citigroup Global Markets Inc. 101,166.6960 5.45%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 391,216.9080 21.09%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class C MLPF&S for the Benefit of its 750,454.2060 34.63%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Charles Schwab & Co. Inc. for the 972,898.4720 20.04%
Benefit of Their Customers
4500 Cherry Creek Dr. S
Denver, CO 80018
- -------------------------------------------------------------------------------------------
Wisconsin
Municipal Class A Citigroup Global Markets Inc. 358,813.0520 10.45%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
Class B MLPF&S for the Benefit of its 30,874.1430 7.11%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Lorraine M. Miller, Trustee 24,933.7270 5.74%
Lorraine M. Miller Revocable
Living Trust
644 S. Main Street
Seymour, WI 54165-1547
UBS Financial Services Inc. 58,094.5020 13.37%
FBO Mr. William J. Hurkman and
Mrs. Marian T. Hurkman
2304 S. Arch Street
Janesville, WI 53546-6126
First Clearing, LLC 26,614.4240 6.13%
Jeffery Blakemore
13040 W. Lisbon Avenue, Suite 700
Brookfield, WI 53005-2515
Donald A. Peterson and Mabel E. 34,330.8360 7.90%
Peterson
W. 897 County Road EE
De Pere, WI 54115
I-26
- -------------------------------------------------------------------------------------------
NAME AND ADDRESS OF NUMBER OF PERCENT
FUND TITLE OF CLASS BENEFICIAL OWNER SHARES OWNED OF CLASS
- -------------------------------------------------------------------------------------------
Class C Citigroup Global Markets Inc. 28,783.8620 6.34%
House Account
Attn: Peter Booth 7th Floor
333 West 34th Street
New York, NY 10001-2402
MLPF&S for the Benefit of its 40,644.4470 8.95%
Customers
4800 Deer Lake Dr. E FL 3
Jacksonville, FL 32246-6484
Class R Edward D. Jones and Co. 5,927.4950 99.96%
FAO Elizabeth H. Sohn, Ttee
P.O. Box 2500
Maryland Heights, MO 63043-8500
- -------------------------------------------------------------------------------------------
I-27
APPENDIX J
NUMBER OF BOARD AND COMMITTEE MEETINGS
HELD DURING EACH TRUST'S LAST FISCAL YEAR
- --------------------------------------------------------------------------------------------------------------------
COMPLIANCE RISK NOMINATING AND
REGULAR SPECIAL EXECUTIVE DIVIDEND MANAGEMENT AND AUDIT GOVERNANCE
BOARD BOARD COMMITTEE COMMITTEE REGULATORY OVERSIGHT COMMITTEE COMMITTEE
TRUST MEETING MEETING MEETING MEETING COMMITTEE MEETING MEETING MEETING
- --------------------------------------------------------------------------------------------------------------------
Multistate Trust I
(except Florida
Municipal).......... 4 6 0 4 3 5 4
Florida Municipal... 4 6 0 3 4 5 4
Multistate Trust
II.................. 4 8 0 4 4 4 5
Multistate Trust
III................. 4 6 0 4 3 5 4
Multistate Trust
IV.................. 4 6 0 4 3 5 4
Municipal Trust...... 4 6 0 4 3 4 5
Investment Trust
(except Balanced
Municipal and
Stock).............. 4 8 0 0 3 4 4
Balanced Municipal
and Stock......... 4 8 0 3 3 4 4
Investment Trust
II.................. 3 9 0 0 4 4 3
- --------------------------------------------------------------------------------------------------------------------
J-1
APPENDIX K
NUVEEN MANAGEMENT INVESTMENT COMPANIES
AUDIT COMMITTEES CHARTER
Revised January 18, 2005
I. ORGANIZATION AND MEMBERSHIP
There shall be a committee of each Board of Directors/Trustees (the "Board") of
the Nuveen Management Investment Companies (the "Funds" or, individually, a
"Fund") to be known as the Audit Committee. The Audit Committee shall be
comprised of at least three Directors/ Trustees. Audit Committee members shall
be independent of the Funds and free of any relationship that, in the opinion of
the Directors/Trustees, would interfere with their exercise of independent
judgment as an Audit Committee member. In particular, each member must meet the
independence and experience requirements applicable to the Funds of the New York
Stock Exchange, the American Stock Exchange, Section 10A of the Securities
Exchange Act of 1934 (the "Exchange Act"), and the rules and regulations of the
Securities and Exchange Commission (the "Commission"). Each such member of the
Audit Committee shall have a basic understanding of finance and accounting, be
able to read and understand fundamental financial statements, and be financially
literate, and at least one such member shall have accounting or related
financial management expertise, in each case as determined by the
Directors/Trustees, exercising their business judgment (this person may also
serve as the Audit Committee's "financial expert" as defined by the Commission).
The Board shall appoint the members and the Chairman of the Audit Committee, on
the recommendation of the Nominating and Governance Committee. The Audit
Committee shall meet periodically but in any event no less frequently than on a
semi-annual basis. Except for the Funds, Audit Committee members shall not serve
simultaneously on the audit committees of more than two other public companies.
II. STATEMENT OF POLICY, PURPOSE AND PROCESSES
The Audit Committee shall assist the Board in oversight and monitoring of (1)
the accounting and reporting policies, processes and practices, and the audits
of the financial statements, of the Funds; (2) the quality and integrity of the
financial statements of the Funds; (3) the Funds' compliance with legal and
regulatory requirements, (4) the independent auditors' qualifications,
performance and independence; and (5) oversight of the Pricing Procedures of the
Funds and the Valuation Group. In exercising this oversight, the Audit Committee
can request other committees of the Board to assume responsibility for some of
the monitoring as long as the other committees are composed exclusively of
independent directors.
In doing so, the Audit Committee shall seek to maintain free and open means of
communication among the Directors/Trustees, the independent auditors, the
internal auditors and the management of the Funds. The Audit Committee shall
meet periodically with Fund management, the Funds' internal auditor, and the
Funds' independent auditors, in separate executive sessions. The Audit Committee
shall prepare reports of the Audit Committee as required by the Commission to be
included in the Fund's annual proxy statements or otherwise.
K-1
The Audit Committee shall have the authority and resources in its discretion to
retain special legal, accounting or other consultants to advise the Audit
Committee and to otherwise discharge its responsibilities, including appropriate
funding as determined by the Audit Committee for compensation to independent
auditors engaged for the purpose of preparing or issuing an audit report or
performing other audit, review or attest services for a Fund, compensation to
advisers employed by the Audit Committee, and ordinary administrative expenses
of the Audit Committee that are necessary or appropriate in carrying out its
duties, as determined in its discretion. The Audit Committee may request any
officer or employee of Nuveen Investments, Inc. (or its affiliates)
(collectively, "Nuveen") or the Funds' independent auditors or outside counsel
to attend a meeting of the Audit Committee or to meet with any members of, or
consultants to, the Audit Committee. The Funds' independent auditors and
internal auditors shall have unrestricted accessibility at any time to Committee
members.
RESPONSIBILITIES
Fund management has the primary responsibility to establish and maintain systems
for accounting, reporting, disclosure and internal control.
The independent auditors have the primary responsibility to plan and implement
an audit, with proper consideration given to the accounting, reporting and
internal controls. Each independent auditor engaged for the purpose of preparing
or issuing an audit report or performing other audit, review or attest services
for the Funds shall report directly to the Audit Committee. The independent
auditors are ultimately accountable to the Board and the Audit Committee. It is
the ultimate responsibility of the Audit Committee to select, appoint, retain,
evaluate, oversee and replace any independent auditors and to determine their
compensation, subject to ratification of the Board, if required. These Audit
Committee responsibilities may not be delegated to any other Committee or the
Board.
The Audit Committee is responsible for the following:
With respect to Fund financial statements:
1. Reviewing and discussing the annual audited financial statements and
semi-annual financial statements with Fund management and the
independent auditors including major issues regarding accounting and
auditing principles and practices, and the Funds' disclosures in its
periodic reports under "Management's Discussion and Analysis."
2. Requiring the independent auditors to deliver to the Chairman of the
Audit Committee a timely report on any issues relating to the
significant accounting policies, management judgments and accounting
estimates or other matters that would need to be communicated under
Statement on Auditing Standards (SAS) No. 90, Audit Committee
Communications (which amended SAS No. 61, Communication with Audit
Committees), that arise during the auditors' review of the Funds'
financial statements, which information the Chairman shall further
communicate to the other members of the Audit Committee, as deemed
necessary or appropriate in the Chairman's judgment.
K-2
3. Discussing with management the Funds' press releases regarding
financial results and dividends, as well as financial information and
earnings guidance provided to analysts and rating agencies. This
discussion may be done generally, consisting of discussing the types
of information to be disclosed and the types of presentations to be
made. The Chairman of the Audit Committee shall be authorized to have
these discussions with management on behalf of the Audit Committee.
4. Discussing with management and the independent auditors (a)
significant financial reporting issues and judgments made in
connection with the preparation and presentation of the Funds'
financial statements, including any significant changes in the Funds'
selection or application of accounting principles and any major
issues as to the adequacy of the Funds' internal controls and any
special audit steps adopted in light of material control
deficiencies; and (b) analyses prepared by Fund management and/or the
independent auditor setting forth significant financial reporting
issues and judgments made in connection with the preparation of the
financial statements, including analyses of the effects of
alternative GAAP methods on the financial statements.
5. Discussing with management and the independent auditors the effect of
regulatory and accounting initiatives on the Funds' financial
statements.
6. Reviewing and discussing reports, both written and oral, from the
independent auditors and/or Fund management regarding (a) all
critical accounting policies and practices to be used; (b) all
alternative treatments of financial information within generally
accepted accounting principles that have been discussed with
management, ramifications of the use of such alternative treatments
and disclosures, and the treatment preferred by the independent
auditors; and (c) other material written communications between the
independent auditors and management, such as any management letter or
schedule of unadjusted differences.
7. Discussing with Fund management the Funds' major financial risk
exposures and the steps management has taken to monitor and control
these exposures, including the Funds' risk assessment and risk
management policies and guidelines. In fulfilling its obligations
under this paragraph, the Audit Committee may review in a general
manner the processes other Board committees have in place with
respect to risk assessment and risk management.
8. Reviewing disclosures made to the Audit Committee by the Funds'
principal executive officer and principal financial officer during
their certification process for the Funds' periodic reports about any
significant deficiencies in the design or operation of internal
controls or material weaknesses therein and any fraud involving
management or other employees who have a significant role in the
Funds' internal controls. In fulfilling its obligations under this
paragraph, the Audit Committee may review in a general manner the
processes other Board committees have in place with respect to
deficiencies in internal controls, material weaknesses, or any fraud
associated with internal controls.
K-3
With respect to the independent auditors:
1. Selecting, appointing, retaining or replacing the independent
auditors, subject, if applicable, only to Board and shareholder
ratification; and compensating, evaluating and overseeing the work of
the independent auditor (including the resolution of disagreements
between Fund management and the independent auditor regarding
financial reporting).
2. Meeting with the independent auditors and Fund management to review
the scope, fees, audit plans and staffing for the audit, for the
current year. At the conclusion of the audit, reviewing such audit
results, including the independent auditors' evaluation of the Funds'
financial and internal controls, any comments or recommendations of
the independent auditors, any audit problems or difficulties and
management's response, including any restrictions on the scope of the
independent auditor's activities or on access to requested
information, any significant disagreements with management, any
accounting adjustments noted or proposed by the auditor but not made
by the Fund, any communications between the audit team and the audit
firm's national office regarding auditing or accounting issues
presented by the engagement, any significant changes required from
the originally planned audit programs and any adjustments to the
financial statements recommended by the auditors.
3. Pre-approving all audit services and permitted non-audit services,
and the terms thereof, to be performed for the Funds by their
independent auditors, subject to the de minimis exceptions for
non-audit services described in Section 10A of the Exchange Act that
the Audit Committee approves prior to the completion of the audit, in
accordance with any policies or procedures relating thereto as
adopted by the Board or the Audit Committee. The Chairman of the
Audit Committee shall be authorized to give pre-approvals of such
non-audit services on behalf of the Audit Committee.
4. Obtaining and reviewing a report or reports from the independent
auditors at least annually (including a formal written statement
delineating all relationships between the auditors and the Funds
consistent with Independent Standards Board Standard 1, as may be
amended, restated, modified or replaced) regarding (a) the
independent auditor's internal quality-control procedures; (b) any
material issues raised by the most recent internal quality-control
review, or peer review, of the firm, or by any inquiry or
investigation by governmental or professional authorities within the
preceding five years, respecting one or more independent audits
carried out by the firm; (c) any steps taken to deal with any such
issues; and (d) all relationships between the independent auditor and
the Funds and their affiliates, in order to assist the Audit
committee in assessing the auditor's independence. After reviewing
the foregoing report[s] and the independent auditor's work throughout
the year, the Audit Committee shall be responsible for evaluating the
qualifications, performance and independence of the independent
auditor and their compliance with all applicable requirements for
independence and peer review, and a review and evaluation of the lead
partner, taking into account the opinions of Fund management and the
internal auditors, and discussing such reports with the
K-4
independent auditors. The Audit Committee shall present its
conclusions with respect to the independent auditor to the Board.
5. Reviewing any reports from the independent auditors mandated by
Section 10A(b) of the Exchange Act regarding any illegal act detected
by the independent auditor (whether or not perceived to have a
material effect on the Funds' financial statements) and obtaining
from the independent auditors any information about illegal acts in
accordance with Section 10A(b).
6. Ensuring the rotation of the lead (or coordinating) audit partner
having primary responsibility for the audit and the audit partner
responsible for reviewing the audit as required by law, and further
considering the rotation of the independent auditor firm itself.
7. Establishing and recommending to the Board for ratification policies
for the Funds', Fund management or the Fund adviser's hiring of
employees or former employees of the independent auditor who
participated in the audits of the Funds.
8. Taking, or recommending that the Board take, appropriate action to
oversee the independence of the outside auditor.
With respect to any internal auditor:
1. Reviewing the proposed programs of the internal auditor for the
coming year. It is not the obligation or responsibility of the Audit
Committee to confirm the independence of any Nuveen internal auditors
performing services relating to the Funds or to approve any
termination or replacement of the Nuveen Manager of Internal Audit.
2. Receiving a summary of findings from any completed internal audits
pertaining to the Funds and a progress report on the proposed
internal audit plan for the Funds, with explanations for significant
deviations from the original plan.
With respect to pricing and valuation oversight:
1. The Board has responsibilities regarding the pricing of a Fund's
securities under the 1940 Act. The Board has delegated this
responsibility to the Committee to address valuation issues that
arise between Board meetings, subject to the Board's general
supervision of such actions. The Committee is primarily responsible
for the oversight of the Pricing Procedures and actions taken by the
internal Valuation Group ("Valuation Matters"). The Valuation Group
will report on Valuation Matters to the Committee and/or the Board of
Directors/Trustees, as appropriate.
2. Performing all duties assigned to it under the Funds' Pricing
Procedures, as such may be amended from time to time.
3. Periodically reviewing and making recommendations regarding
modifications to the Pricing Procedures as well as consider
recommendations by the Valuation Group regarding the Pricing
Procedures.
K-5
4. Reviewing any issues relating to the valuation of a Fund's securities
brought to the Committee's attention, including suspensions in
pricing, pricing irregularities, price overrides, self-pricing, NAV
errors and corrections thereto, and other pricing matters. In this
regard, the Committee should consider the risks to the Funds in
assessing the possible resolutions of these Valuation Matters.
5. Evaluating, as its deems necessary or appropriate, the performance of
any pricing agent and recommend changes thereto to the full Board.
6. Reviewing any reports or comments from examinations by regulatory
authorities relating to Valuation Matters of the Funds and consider
management's responses to any such comments and, to the extent the
Committee deems necessary or appropriate, propose to management
and/or the full Board the modification of the Fund's policies and
procedures relating to such matters. The Committee, if deemed
necessary or desirable, may also meet with regulators.
7. Meeting with members of management of the Funds, outside counsel, or
others in fulfilling its duties hereunder, including assessing the
continued appropriateness and adequacy of the Pricing Procedures,
eliciting any recommendations for improvements of such procedures or
other Valuation Matters, and assessing the possible resolutions of
issues regarding Valuation Matters brought to its attention.
8. Performing any special review, investigations or oversight
responsibilities relating to Valuation as requested by the Board of
Directors/Trustees.
9. Investigating or initiating an investigation of reports of
improprieties or suspected improprieties in connection with the
Fund's policies and procedures relating to Valuation Matters not
otherwise assigned to another Board committee.
Other responsibilities:
1. Reviewing with counsel to the Funds, counsel to Nuveen, the Fund
adviser's counsel and independent counsel to the Board legal matters
that may have a material impact on the Fund's financial statements or
compliance policies.
2. Receiving and reviewing periodic or special reports issued on
exposure/ controls, irregularities and control failures related to
the Funds.
3. Reviewing with the independent auditors, with any internal auditor
and with Fund management, the adequacy and effectiveness of the
accounting and financial controls of the Funds, and eliciting any
recommendations for the improvement of internal control procedures or
particular areas where new or more detailed controls or procedures
are desirable. Particular emphasis should be given to the adequacy of
such internal controls to expose payments, transactions or procedures
that might be deemed illegal or otherwise improper.
4. Reviewing the reports of examinations by regulatory authorities as
they relate to financial statement matters.
K-6
5. Discussing with management and the independent auditor any
correspondence with regulators or governmental agencies that raises
material issues regarding the Funds' financial statements or
accounting policies.
6. Obtaining reports from management with respect to the Funds' policies
and procedures regarding compliance with applicable laws and
regulations.
7. Reporting regularly to the Board on the results of the activities of
the Audit Committee, including any issues that arise with respect to
the quality or integrity of the Funds' financial statements, the
Funds' compliance with legal or regulatory requirements, the
performance and independence of the Funds' independent auditors, or
the performance of the internal audit function.
8. Performing any special reviews, investigations or oversight
responsibilities requested by the Board.
9. Reviewing and reassessing annually the adequacy of this charter and
recommending to the Board approval of any proposed changes deemed
necessary or advisable by the Audit Committee.
10. Undertaking an annual review of the performance of the Audit
Committee.
11. Establishing procedures for the receipt, retention and treatment of
complaints received by the Funds regarding accounting, internal
accounting controls or auditing matters, and the confidential,
anonymous submission of concerns regarding questionable accounting or
auditing matters by employees of Fund management, the investment
adviser, administrator, principal underwriter, or any other provider
of accounting related services for the Funds, as well as employees of
the Funds.
Although the Audit Committee shall have the authority and responsibilities set
forth in this Charter, it is not the responsibility of the Audit Committee to
plan or conduct audits or to determine that the Funds' financial statements are
complete and accurate and are in accordance with generally accepted accounting
principles. That is the responsibility of management and the independent
auditors. Nor is it the duty of the Audit Committee to conduct investigations,
to resolve disagreements, if any, between management and the independent
auditors or to ensure compliance with laws and regulations.
K-7
APPENDIX L
AMENDED AND RESTATED
NOMINATING AND GOVERNANCE COMMITTEE CHARTER
I. NOMINATING AND GOVERNANCE COMMITTEE: MEMBERSHIP AND PURPOSE
The Nominating and Governance Committee shall be composed entirely of
independent directors of the Board with one independent director elected as
chair of the committee. The term "independent director" as used in this Charter
means any director or trustee who is not an "interested person" of the Funds as
such term is defined in the Investment Company Act of 1940, as amended, and any
rules or regulations adopted thereunder (the "1940 Act").
The purpose of the Committee is to seek, identify and recommend to the Board
qualified candidates for election or appointment to the Funds' Board of
Directors, and matters related thereto. In addition, the Committee oversees
matters of corporate governance, including the evaluation of Board performance
and processes, and assignment and rotation of Committee members, the
establishment of corporate governance guidelines and procedures, to the extent
necessary or desirable, and matters related thereto.
II. BOARD: SELECTION AND TENURE
A. The Committee shall periodically review the composition of the
Board of Directors, including its size and mix of skills,
experience, and background.
B. The Committee shall, as part of the recruitment process, and with
the assistance of its counsel, define and clarify the duties and
responsibilities of Board members. In performing this function, the
Committee shall consider, among other things, legal and fiduciary
duties; expectations regarding preparation, attendance, and
participation at meetings; fund ownership; and limitations on
investments.
C. The Committee shall make nominations for director membership on the
Board of Directors, with input from various sources as the
committee deems necessary. The Committee shall evaluate the members
of the current Board of Directors and identify, recruit and
evaluate candidates for Board membership, including evaluation of
their independence from the Funds' investment adviser and other
principal service providers, including any affiliates of such
persons, if applicable. The Committee shall consider the effect of
any relationships beyond those delineated in the 1940 Act and any
other applicable federal securities laws and regulations and rules
and regulations of self-regulatory organizations that might impair
their independence, e.g., business, financial or family
relationships with the Funds' investment adviser and service
providers, including any affiliates of such persons.
D. The Committee shall review on an annual basis questionnaires
completed by all directors regarding their independence.
L-1
E. The Committee shall periodically review and make recommendations
with regard to the tenure of the directors, including term limits
and/or age limits.
F. The Committee shall look to many sources for recommendations of
qualified directors. These sources shall include current
directors, members of the management company, current security
holders of the Funds, third party sources and any other persons or
entities as may be deemed necessary or desirable by the Committee.
The Committee may, but shall not be required to, develop and
establish additional material elements of the foregoing policy in
furtherance of the objectives and elements currently stated
therein.
G. The Committee may, but shall not be required to, establish
necessary or desirable minimum qualifications to be possessed by
all nominees and may also establish specific qualities or skills to
be possessed by one or more directors.
III. COMMITTEES: SELECTION AND REVIEW
A. Subject to the approval of the full Board, the Committee shall
review committee assignments at least annually and make nominations
for director membership on all committees. The committee shall also
recommend to the full Board the chair of each committee.
B. The Committee shall periodically review and make recommendations to
the full Board regarding the responsibilities and charters of any
committee (other than the Audit Committee) of the Board, the
continuing need for each committee, the need for additional
committees, and the need or desire to combine or reorganize
committees.
IV. BOARD: EDUCATION AND OPERATIONS
A. The Committee shall periodically review and make recommendations
concerning continuing education for incumbent directors and
appropriate orientation materials and procedures for new directors.
B. The Committee shall periodically review and make recommendations
concerning the organization of Board of Directors meetings,
including the frequency, timing, content, and agendas of the
meetings.
C. The Committee shall evaluate the performance of the Board at least
annually, with a view towards enhancing its effectiveness.
D. The Committee shall establish a process by which security holders
will be able to communicate in writing with members of the Board of
Directors via regular mail. The Manager of Fund Board Relations, or
such other person designated by the Committee, shall assist the
Committee in developing and implementing this process. The process
will also provide that the Manager of Fund Board Relations, or such
other person designated by the Committee, will be appointed to
administer the operations of the communications process established
hereunder. Written communications to directors should be
L-2
addressed to the Funds at the address of the principal offices of
the Funds, which currently is 333 West Wacker Drive, Chicago,
Illinois 60606. If the communication is intended for a specific
director and so indicated it will be sent only to that director. If
a communication does not indicate a specific director it will be
sent to the Chair of the Committee and the outside counsel to the
independent directors for further distribution as deemed
appropriate by such persons. The Committee is hereby authorized to
oversee the administration, implementation and maintenance of this
communications process and further develop and refine this process
as deemed necessary or desirable by the Committee.
E. The Committee shall establish a policy relating to attendance by
directors at annual meetings of the Funds.
V. OTHER POWERS AND RESPONSIBILITIES
A. The Committee shall monitor the performance of legal counsel, and
any other service providers (other than the independent auditors,
which are monitored by the Audit Committee) that are chosen by the
directors, and shall supervise counsel for the independent
directors.
B. The Committee shall periodically review and make recommendations
regarding director compensation to the full Board of Directors.
C. The Committee shall have the resources and authority to discharge
its responsibilities, including authority to retain special counsel
and other experts or consultants at the expense of the appropriate
Fund(s).
D. The Committee shall be authorized to adopt Key Practices to further
develop, clarify and implement its duties and responsibilities as
set forth in this Charter, which Key Practices may be amended
and/or restated from time to time upon the approval of a majority
of the members of the Committee.
L-3E-3
[NUVEEN INVESTMENTS LOGO]
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606-1286
(800) 257-8787
www.nuveen.com NUVMF 705ICAP 0806
[NUVEEN(NUVEEN LOGO)
NUVEEN INVESTMENTS LOGO]
Nuveen Investments
333 West Wacker DriveDr.
Chicago, IL 60606
www.nuveen.com
999 999 999 999 99 [INSERT FUND NAME]
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envelope.
**** CONTROL NUMBER: 999 999 999 999 98 ****
[FUND NAME PRINTS HERE]
THIS PROXY IS SOLICITED BY THE BOARD OF THE FUND
FOR A SPECIAL MEETING OF SHAREHOLDERS, JULY 26, 2005AUGUST 25, 2006.
A Special Meeting of shareholders will be held in the Assembly Room31st floor conference room
of The
Northern Trust Company, 50 South LaSalle Street,Nuveen Investments, 333 West Wacker Drive, Chicago, Illinois, on Tuesday,
July 26, 2005,Friday,
August 25, 2006 at 10:9:30 a.m., Chicago time. At this meeting, you will be asked
to vote on the proposalsproposal described in the proxy statement attached. The
undersigned hereby appoints Timothy R. Schwertfeger, Jessica R. Droeger and
Gifford R. Zimmerman, and each of them, with full power of substitution, proxies
for the undersigned, to represent and vote the shares of the undersigned at the
Special Meeting of shareholders to be held on July 26, 2005,August 25, 2006 or any adjournment
or adjournments thereof.
WHETHER OR NOT YOU PLAN TO JOIN US AT THE MEETING, PLEASE COMPLETE, DATE AND
SIGN YOUR PROXY CARD AND RETURN IT IN THE ENCLOSED ENVELOPE SO THAT YOUR VOTE
WILL BE COUNTED. AS AN ALTERNATIVE, PLEASE CONSIDER VOTING BY TELEPHONE
(800)
690-69031-888-221-0697 OR OVER THE INTERNET (www.proxyweb.com).
Date:
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SIGN HERE EXACTLY AS NAME(S) APPEAR(S)
ON LEFT. (Please sign in Box)
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NOTE: PLEASE SIGN YOUR NAME EXACTLY AS
IT APPEARS ON THIS PROXY. IF SHARES ARE
HELD JOINTLY, EACH HOLDER MUST SIGN THE
PROXY,PROXY. IF YOU ARE SIGNING ON BEHALF OF
AN ESTATE, TRUST OR CORPORATION, PLEASE
STATE YOUR TITLE OR CAPACITY.
PLEASE FILL IN BOX(es) AS SHOWN USING BLACK OR BLUE INK OR NUMBER 2 PENCIL. [X]
PLEASE DO NOT USE FINE POINT PENS.
In their discretion, the proxies are authorized to vote upon such other business
as may properly come before the Special Meeting.
PROPERLY EXECUTED PROXIES WILL BE VOTED AS SPECIFIED. IF NO SPECIFICATION IS
MADE, SUCH SHARES WILL BE VOTED "FOR" THE PROPOSALS SET FORTH IN THIS PROXY AND
"FOR" THE ELECTION OF NOMINEES TO THE BOARD.
1. Approval of the new investment management agreement. FOR AGAINST ABSTAIN
[ ] [ ] [ ]
2a. Approval of the new sub-advisory agreement between Nuveen FOR AGAINST ABSTAIN
Asset Management and Institutional Capital Corporation. [ ] [ ] [ ]
3. Election of Board Members: FOR WITHHOLD
NOMINEES AUTHORITY
listed at left to vote for all
(except as marked nominees listed
to the contrary) at left
[ ] [ ]
(01) Robert P. Bremner (06) William J. Schneider
(02) Lawrence H. Brown (07) Timothy R. Schwertfeger
(03) Jack B. Evans (08) Judith M. Stockdale
(04) William C. Hunter (09) Eugene S. Sunshine
(05) David J. Kundert
(INSTRUCTION: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL
NOMINEE(s), WRITE THE NUMBER(s) OF THE NOMINEE(s) ON THE LINE
PROVIDED BELOW.)
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PLEASE SIGN ON REVERSE SIDE
[NUVEEN INVESTMENTS LOGO]
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
3 EASY WAYS TO VOTE YOUR PROXY
1. Automated Touch Tone Voting: Call toll-free 1-800-690-6903 and follow
the recorded instructions.
2. On the Internet at www.proxyweb.com, and follow the simple
instructions.
3. Sign, Date and Return this proxy cardPROPOSAL.
Please fill in box(es) as shown using the enclosed postage-paid
envelope.
**** CONTROL NUMBER: 999 999 999 999 98 ****
[FUND NAME PRINTS HERE]
THIS PROXY IS SOLICITED BY THE BOARD OF THE FUND
FOR A SPECIAL MEETING OF SHAREHOLDERS, JULY 26, 2005
A Special Meeting of shareholders will be held in the Assembly Room of The
Northern Trust Company, 50 South LaSalle Street, Chicago, Illinois, on Tuesday,
July 26, 2005, at 10:30 a.m., Chicago time. At this meeting, you will be asked
to vote on the proposals described in the proxy statement attached. The
undersigned hereby appoints Timothy R. Schwertfeger, Jessica R. Droeger and
Gifford R. Zimmerman, and each of them, with full power of substitution, proxies
for the undersigned, to represent and vote the shares of the undersigned at the
Special Meeting of shareholders to be held on July 26, 2005,black or any adjournmentblue ink or adjournments thereof.
WHETHER OR NOT YOU PLAN TO JOIN US AT THE MEETING, PLEASE COMPLETE, DATE AND
SIGN YOUR PROXY CARD AND RETURN IT IN THE ENCLOSED ENVELOPE SO THAT YOUR VOTE
WILL BE COUNTED. AS AN ALTERNATIVE, PLEASE CONSIDER VOTING BY TELEPHONE (800)
690-6903 OR OVER THE INTERNET (www.proxyweb.com).
Date:
---------------------------------
SIGN HERE EXACTLY AS NAME(S) APPEAR(S)
ON LEFT. (Please sign in Box)
--------------------------------------
--------------------------------------
NOTE: PLEASE SIGN YOUR NAME EXACTLY AS
IT APPEARS ON THIS PROXY. IF SHARES
ARE HELD JOINTLY, EACH HOLDER MUST
SIGN THE PROXY, IF YOU ARE SIGNING ON
BEHALF OF AN ESTATE, TRUST OR
CORPORATION, PLEASE STATE YOUR TITLE
OR CAPACITY.
PLEASE FILL IN BOX(es) AS SHOWN USING BLACK OR BLUE INK OR NUMBERnumber 2 PENCIL.pencil. [X]
PLEASE DO NOT USE FINE POINT PENS.
In their discretion, the proxies are authorized to vote upon such other business
as may properly come before the Special Meeting.
PROPERLY EXECUTED PROXIES WILL BE VOTED AS SPECIFIED. IF NO SPECIFICATION IS
MADE, SUCH SHARES WILL BE VOTED "FOR" THE PROPOSALS SET FORTH IN THIS PROXY AND
"FOR" THE ELECTION OF NOMINEES TO THE BOARD.
1. Approval of the new investment management agreement. FOR AGAINST ABSTAIN
[ ] [ ] [ ]
2b. Approval of the new sub-advisory agreement between Nuveen FOR AGAINST ABSTAIN
Nuveen Asset Management and NWQ Investment Management Company,Institutional Capital LLC. [ ] [ ] [ ]
LLC.
3. Election of Board Members: FOR WITHHOLD
NOMINEES AUTHORITY
listed at left to vote for all
(except as marked nominees listed
to the contrary) at left [ ] [ ]
(01) Robert P. Bremner (06) William J. Schneider
(02) Lawrence H. Brown (07) Timothy R. Schwertfeger
(03) Jack B. Evans (08) Judith M. Stockdale
(04) William C. Hunter (09) Eugene S. Sunshine
(05) David J. Kundert
(INSTRUCTION: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL
NOMINEE(s), WRITE THE NUMBER(s) OF THE NOMINEE(s) ON THE LINE
PROVIDED BELOW.)
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PLEASE SIGN ON REVERSE SIDE