UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-07755
Nuveen Multistate Trust II
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive, Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: February 28
Date of reporting period: August 31, 2013
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
Item 1. Reports to Stockholders.
Mutual Funds
Nuveen Municipal Bond Funds
Dependable, tax-free income because it’s not what you earn, it’s what you keep.®
Semi-Annual Report
August 31, 2013
| Class / Ticker Symbol | ||||||||
| Fund Name | Class A | Class B | Class C | Class I | ||||
Nuveen Connecticut Municipal Bond Fund | FCTTX | FCTBX | FCTCX | FCTRX | ||||
Nuveen Massachusetts Municipal Bond Fund | NMAAX | NMABX | NMACX | NBMAX | ||||
Nuveen New Jersey Municipal Bond Fund | NNJAX | NNJBX | NNJCX | NMNJX | ||||
Nuveen New York Municipal Bond Fund | NNYAX | NNYBX | NNYCX | NTNYX | ||||
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| Must be preceded by or accompanied by a prospectus. | NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
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Letter to Shareholders
Dear Shareholders,
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
On the domestic front, the U.S. economy is experiencing sustainable slow growth. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
October 21, 2013
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Nuveen Connecticut Municipal Bond Fund
Nuveen Massachusetts Municipal Bond Fund
Nuveen New Jersey Municipal Bond Fund
Nuveen New York Municipal Bond Fund
These Funds feature management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. Portfolio managers Michael S. Hamilton, Paul L. Brennan, CFA, and Scott R. Romans, PhD., examine key investment strategies and the Funds’ performance during the six-month reporting period ended August 31, 2013. Michael manages the Nuveen Connecticut Municipal Bond Fund and the Nuveen Massachusetts Municipal Bond Fund, Paul manages the Nuveen New Jersey Municipal Bond Fund and Scott manages the Nuveen New York Municipal Bond Fund. They have managed their respective Funds since 2011.
How did the Funds perform during the six-month reporting period ended August 31, 2013?
The tables in the Fund Performance, Expense and Effective Leverage Ratios section of this report provide Class A Share total returns for the Funds for the six-month, one-year, five-year, and ten-year periods ending August 31, 2013. Each Fund’s Class A Share total returns at net asset value (NAV) are compared with the performance of the S&P Municipal Bond Index and the Fund’s corresponding Lipper classification average.
During the reporting period, all four Funds trailed their S&P Municipal Bond Index but outpaced the results of their respective Lipper classification average.
Nuveen Connecticut Municipal Bond Fund
The primary factor affecting the Fund’s underperformance compared with the S&P Municipal Bond Index was unfavorable duration positioning. In other words, the Fund was more sensitive to the negative effects of the rising interest rates that persisted through most of the reporting period. The Fund was generally overweight in securities with longer durations and underweighted in shorter duration bonds. Our allocation to inverse floating rate securities, which also have long durations, were also detrimental to the Fund performance.
While duration was the most substantial cause of the Fund’s relative underperformance, other factors also influenced its results. The Fund was modestly helped by its credit quality allocation. While the Fund was underweighted the better performing single A and higher rated securities, the Fund’s BBB securities outperformed the S&P Municipal Bond Index BBB securities and provided a positive contribution to performance. In addition, an underweight to B rated securities was a positive contributor. Finally, the Fund’s securities considered non-rated also added to performance on a relative basis.
The Fund was boosted by its sector positioning, including allocation to shorter duration resource recovery bonds. These securities contributed to the portfolio’s performance in a market environment that favored credits with less interest rate sensitivity. The Fund benefited from its overweight in housing bonds, as these securities tend to perform well in a rising rate environment because of the reduced risk of mortgage prepayments. By contrast, the Fund was underweighted in
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
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tax-supported state general obligation (GO) debt. This proved negative since these high quality bonds, seen as relatively secure, tended to outperform their lower quality counterparts.
The Fund’s underperformance can also be attributed to its exposure to Puerto Rico bonds. Because Connecticut is a small state with modest issuance of municipal debt, the Fund owned some of these U.S. territorial bonds, which are generally fully tax-exempt for residents of all 50 states, to enhance the portfolio’s diversification and achieve its investment objectives. Unfortunately, mounting concerns about the credit quality of Puerto Rico’s debt accelerated as the period progressed. Accordingly, the Fund’s Puerto Rico holdings saw significant price declines, which hampered performance.
Nuveen Massachusetts Municipal Bond Fund
The Massachusetts Fund’s underperformance relative to the S&P Municipal Bond Index was shaped by unfavorable duration positioning. The Fund was more exposed to the harmful effects of rising interest rates during the six-month reporting period. More specifically, the Fund’s larger allocation to bonds with longer durations and underweight to shorter duration bonds proved negative. The Fund’s small exposure to inverse floaters also detracted from performance.
Credit quality positioning further detracted from Fund performance. In a market environment of highly risk-averse investors, higher rated bonds lost less value than lower rated bonds. Accordingly, the Fund’s overweighting in BBB-rated debt and underweighting in AAA-rated bonds hampered results on a relative basis. One notable source of credit related underperformance was the Fund’s holdings in bonds issued by Puerto Rico entities which the Fund held largely for portfolio diversification purposes. As concern about this U.S. territory’s credit quality increased, its bonds posted poor results that weighed on the Fund’s performance compared to the S&P Index.
Our favorable sector positioning contributed slightly to the Fund’s performance. The portfolio was overweighted in housing bonds, a category that outperformed the market. Relative performance however was held back by an underweighting in state general obligation (GO) bonds, which, due to their relatively high credit quality, lost less ground than other segments of the municipal bond market during the reporting period.
Nuveen New Jersey Municipal Bond Fund
The Fund’s underperformance compared to its benchmark for the reporting period was largely related to an overweight in longer duration positions. Consequently, as interest rates rose, these longer securities performed much worse than their shorter duration counterparts. We saw the opposite situation in recent years; rates were falling and the Fund benefited from longer than average duration holdings. During this difficult reporting period, however, the Fund’s increased sensitivity to interest rate movements was problematic.
While duration positioning was the biggest detractor, the Fund also saw underperformance from the portfolio’s overweighting in A-rated and BBB-rated securities, two categories of investment grade bonds that lagged slightly behind the benchmark. Some of the underperformance seemed to stem from the market’s overall concern about credit quality, rather than any material change in the underlying credit quality of specific issues in the portfolio. The municipal bankruptcy filing by the city of Detroit and deteriorating sentiment about Puerto Rico debt, which is widely held by municipal portfolio managers, precipitated investor anxiety. As concern grew about owning lower rated debt, the Fund’s overweightings in such bonds were a drag on performance. In addition to its minor stake in Puerto Rico debt, the Fund’s results were hindered by its allocation to lower rated tobacco securitization bonds, a good example of bonds with unchanged underlying credit quality during the reporting period, but whose valuations declined with investors’ enthusiasm for lower rated debt.
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On the positive side, the Fund profited from its exposure to health care bonds, which saw smaller declines than the overall market. Consolidation within New Jersey’s hospital industry has created efficiencies and better financial performance, which lifted the performance of bonds issued in this part of the market. The portfolio’s pre-refunded holdings were another supportive performance factor. Pre-refunded bonds typically receive an initial price boost as they become secured by U.S. government securities priced to a very short call date. There were several pre-refundings in the first half of the reporting period, enhancing the Fund’s results.
Nuveen New York Municipal Bond Fund
Duration and yield curve positioning had the most impact on the Fund’s lagging behind its benchmark. The portfolio’s duration was longer than that of the overall New York tax-exempt bond market. A longer duration is helpful during periods of falling interest rates, however, when rates rise sharply, as they did during the six-month reporting period, heightened interest rate sensitivity can detract from results. Specifically the Fund was underweighted in bonds with relatively short maturities and overweighted in bonds on the long end of the yield curve. Both positions detracted, as interest rates on long bonds rose more than rates on shorter duration debt causing prices to decline accordingly.
To a much lesser extent, the Fund’s credit quality positioning was a source of relative underperformance. The Fund was overweighted in BBB-rated and below investment grade rated bonds. In the risk-averse environment of this reporting period, our increased exposure to credits with lower ratings was detrimental.
On the positive side, the Fund was modestly helped by its overweighting in health care and housing bonds, two categories of issuance that outpaced the benchmark return during the reporting period. The Fund had less exposure to transportation bonds, which also proved helpful, given that sector’s relative underperformance.
What strategies were used to manage the Funds during the six-month reporting period ended August 31, 2013? How did these strategies influence performance?
All these Funds invest primarily in investment grade municipal bonds and are designed to provide as high a level of current income exempt from regular federal, state and, in some cases, local income taxes as is consistent with preservation of capital.
Nuveen Connecticut Municipal Bond Fund
As municipal market conditions deteriorated during the reporting period, shareholder redemption activity increased across the industry and in this portfolio. At the same time, few attractive new investment opportunities were available in Connecticut with limited issuance of the longer dated, lower investment grade debt. Thus, we were unable to make large scale acquisitions during the reporting period.
Accordingly, our portfolio management took a focused, disciplined approach to the securities we sold. We systematically sought to sell bonds to maintain the Fund’s desired structural characteristics; we were largely successful, despite the challenging market. We sold short dated pre-refunded bonds, which were highly liquid and in demand. To limit the Fund’s duration and avoid more interest rate risk as a result of these sales, we sold some longer dated issues that had relatively low yields. This approach offered additional advantages, potentially limiting future tax consequences for shareholders, while helping us achieve our duration objectives for the portfolio. Throughout the process, we maintained the Fund’s diversification objectives across individual issuers and sectors, while preserving a consistent level of income and interest rate exposure.
While purchases were modest, we added new bonds to the portfolio when suitable opportunities were available. We added to existing positions across a range of sectors and we bought bonds with maturities of seven years and longer. In mid-July 2013, we added a small position in Puerto Rico Sales Tax Financing Corporation bonds, known as COFINA
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bonds. We bought these securities for diversification and duration management. These bonds, like all Puerto Rico securities, lost significant value during the reporting period, reflecting investors’ broad concerns about the creditworthiness of any Puerto Rico debt including the COFINA bonds with solid underlying credit. Throughout the reporting period, we were able to reduce the Fund’s exposure to Puerto Rico securities by selling some shorter dated Puerto Rico bonds, as well as longer dated issues with smaller coupons.
Nuveen Massachusetts Municipal Bond Fund
Despite the national trend of outflows amid difficult conditions in the municipal bond market, the Fund unexpectedly achieved a healthy level of new investment inflows during the reporting period. Early on, we invested in bonds with maturities of 20 years and longer. During the final two months of the period, however, we grew concerned this inflow trend might not be sustainable over the long term and focused on buying pre-refunded bonds with maturities of three years or less. These highly liquid securities would position the Fund to potentially maintain shareholders’ principal if these bonds had to be sold again to meet shareholder redemptions.
We also added to existing positions including purchases of Williams College and Cape Cod health care bonds, both issued by the Massachusetts Health and Educational Facilities Authority. We used new shareholder inflows and the proceeds of called bonds and a small number of bond maturities to fund these acquisitions.
Nuveen New Jersey Municipal Bond Fund
Our management strategy during the six-month period was to pursue attractive investment opportunities within the New Jersey municipal bond market, bonds we believed provided shareholders with a favorable risk/reward trade-off. We added new investments across various market sectors to maintain the portfolio’s structural characteristics.
We added a toll road bond position to the portfolio issued by the New Jersey Turnpike Authority, which issued additional debt to finance ongoing capital improvements to the East Coast highway. We also purchased bonds issued by the Delaware River Port Authority, a bi-state agency whose municipal bonds are fully tax-exempt in both New Jersey and Pennsylvania.
We also purchased Rutgers University debt issued to finance the merger of the state university system with the University of Medicine and Dentistry of New Jersey. These securities were among the portfolio’s bonds that were pre-refunded during the reporting period, as discussed earlier.
Additional purchases included a bond issue for the state’s student loan program. An infrequent issuer of municipal debt in the past, these bonds enhanced the portfolio’s diversification, as did bonds issued by the New Jersey Housing Authority. Within the health care sector, a number of issues were called and advance refunded. We subsequently bought new health care bonds to take their place.
Overall, we purchased longer maturity issues, which presented a more favorable risk/reward balance toward the end of the period. This focus helped counteract some of the negative effects of the bonds that had been pre-refunded, as these securities were priced to a short call date and served to shorten the Fund’s overall duration.
Nuveen New York Municipal Bond Fund
Early in the reporting period, when interest rates were lower, our management approach focused on buying bonds with a good probability of being advance refunded if the low interest rate environment continued. These included bonds that hadn’t previously been advance refunded or had slightly shorter call dates. As rates rose dramatically during the period, however, the likelihood that these bonds would be advanced refunded declined.
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As interest rates rose, our strategy shifted to emphasize bonds with the potential to improve the yield generating ability of the portfolio without altering its overall risk profile. Higher prevailing interest rates later in the reporting period enabled us to sell portfolio holdings issued during periods of historically low yields and use the proceeds to buy bonds with similar structures (and therefore similar levels of risk) but more favorable income characteristics. We intended to increase the Fund’s income distribution to shareholders using this strategy. This approach had the added advantage of realizing tax losses that can be applied against future gains, thus reducing future tax liability for shareholders.
As it became clear that rising municipal interest rates would continue, we added new bonds priced at a premium and offering higher levels of income. Generally, these bonds were more defensive than the ones we were selling, which we believed would provide a degree of protection if market conditions remained difficult.
We also added holdings in lower rated and non-rated bonds offering favorable yields at reasonable prices. Adverse market conditions caused many high yield municipal bond funds to experience elevated redemption activity, forcing them to sell credits they might otherwise have preferred to keep. As a result, there were securities available at attractive prices. We added to the Fund’s holdings in health care and tobacco-securitization bonds.
While the Fund had no derivatives positions for hedging purposes, the Fund was supported by a small degree of leverage in a tender option bond trust position, which remained in the portfolio to provide additional income. Also, the Fund had minimal exposure to Puerto Rico bonds, which faced significant credit challenges during the period. Its portfolio allocation, however, was largely comprised of insured bonds.
An Update Regarding Puerto Rico
Shareholders should be aware of issues impacting the Funds’ Puerto Rico holdings. In 2012, Moody’s downgraded Puerto Rico Sales Tax Financing Corporation (COFINA) bonds to Aa3 from Aa2 and Puerto Rico GO bonds to Baa3 from Baa1. These downgrades were based on Puerto Rico’s ongoing economic problems and, in the case of the COFINA bonds, the impact of these problems on the projected growth of sales tax revenues. However, the COFINA bonds were able to maintain a higher credit rating than the GOs because, unlike the revenue streams supporting some Puerto Rican issues, the sales taxes supporting the COFINA bonds cannot be diverted and used to support Puerto Rico’s GO bonds. During the reporting period, Puerto Rico paper generally underperformed the market as a whole. Because most of our holdings were the COFINA bonds, the overall impact on performance was minimal. We continue to emphasize Puerto Rico’s stronger credits and view the COFINA bonds as potentially long-term holdings and note that the commonwealth recently introduced various sales tax initiatives aimed at improving future collections.
Risk Considerations
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Funds, are subject to market risk, credit risk, interest rate risk, call risk, state concentration risk, tax risk, and income risk. As interest rates rise, bond prices fall. Credit risk refers to an issuers ability to make interest and principal payments when due. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Each Fund’s use of inverse floaters creates effective leverage. Leverage involves the risk that a Fund could lose more than its original investment and also increases a Fund’s exposure to volatility and interest rate risk.
Dividend Information
Each Fund seeks to pay dividends at a rate that reflects the past and projected performance of the Fund. To permit a Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If the Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part
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of the Fund’s net asset value. Conversely, if the Fund has cumulatively paid in dividends more than it has earned, the excess will constitute negative UNII that will likewise be reflected in the Fund’s net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders. As of August 31, 2013, the Funds had positive UNII balances for tax purposes, based upon our best estimate, and positive UNII balances for financial reporting purposes.
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Fund Performance, Expense and Effective Leverage Ratios
The Fund Performance, Expense and Effective Leverage Ratios for each Fund are shown on the following four pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local income taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Note 7 — Management Fees and Other Transactions with Affiliates for more information. In addition, returns may reflect a voluntary expense limitation by the Funds’ investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for the Funds’ Class A Shares at net asset value (NAV) only.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
Leverage is created whenever a Fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital. The effective leverage ratio shown is the amount of investment exposure created either through borrowings or indirectly through inverse floaters, divided by the assets invested, including those assets that were purchased with the proceeds of the leverage, or referenced by the levered instrument.
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Fund Performance, Expense and Effective Leverage Ratios (continued)
Nuveen Connecticut Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense and Effective Leverage Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of August 31, 2013
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -7.10% | -5.67% | 3.84% | 3.93% | ||||||||||||
Class A Shares at maximum Offering Price | -11.04% | -9.65% | 2.95% | 3.49% | ||||||||||||
S&P Municipal Bond Index* | -5.99% | -3.74% | 4.50% | 4.55% | ||||||||||||
Lipper Connecticut Municipal Debt Funds Classification Average* | -7.66% | -6.50% | 3.33% | 3.42% | ||||||||||||
Class B Shares w/o CDSC | -7.37% | -6.34% | 3.07% | 3.31% | ||||||||||||
Class B Shares w/CDSC | -11.93% | -9.98% | 2.90% | 3.31% | ||||||||||||
Class C Shares | -7.29% | -6.19% | 3.28% | 3.37% | ||||||||||||
Class I Shares | -6.97% | -5.44% | 4.06% | 4.14% | ||||||||||||
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -4.57% | -4.06% | 5.33% | 3.84% | ||||||||||||
Class A Shares at maximum Offering Price | -8.57% | -8.11% | 4.43% | 3.40% | ||||||||||||
Class B Shares w/o CDSC | -5.02% | -4.84% | 4.56% | 3.22% | ||||||||||||
Class B Shares w/CDSC | -9.70% | -8.54% | 4.39% | 3.22% | ||||||||||||
Class C Shares | -4.84% | -4.59% | 4.78% | 3.28% | ||||||||||||
Class I Shares | -4.44% | -3.83% | 5.55% | 4.05% | ||||||||||||
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within eighteen months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 0.80% | |||
Class B Shares | 1.55% | |||
Class C Shares | 1.35% | |||
Class I Shares | 0.60% | |||
Effective Leverage Ratio as of August 31, 2013
Effective Leverage Ratio | 2.95% |
| * | Refer to the Glossary of Terms Used in the Report for definitions. Indexes and Lipper averages are not available for direct investment. |
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Nuveen Massachusetts Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense and Effective Leverage Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of August 31, 2013
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -7.30% | -5.46% | 4.35% | 4.10% | ||||||||||||
Class A Shares at maximum Offering Price | -11.22% | -9.46% | 3.45% | 3.66% | ||||||||||||
S&P Municipal Bond Index* | -5.99% | -3.74% | 4.50% | 4.55% | ||||||||||||
Lipper Massachusetts Municipal Debt Funds Classification Average* | -8.29% | -6.72% | 3.43% | 3.55% | ||||||||||||
Class B Shares w/o CDSC | -7.65% | -6.17% | 3.58% | 3.48% | ||||||||||||
Class B Shares w/CDSC | -12.21% | -9.82% | 3.40% | 3.48% | ||||||||||||
Class C Shares | -7.45% | -5.87% | 3.81% | 3.54% | ||||||||||||
Class I Shares | -7.14% | -5.21% | 4.58% | 4.32% | ||||||||||||
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -4.71% | -3.93% | 5.93% | 4.04% | ||||||||||||
Class A Shares at maximum Offering Price | -8.68% | -7.98% | 5.02% | 3.59% | ||||||||||||
Class B Shares w/o CDSC | -5.07% | -4.65% | 5.15% | 3.42% | ||||||||||||
Class B Shares w/CDSC | -9.75% | -8.36% | 4.98% | 3.42% | ||||||||||||
Class C Shares | -4.94% | -4.43% | 5.37% | 3.47% | ||||||||||||
Class I Shares | -4.63% | -3.86% | 6.15% | 4.24% | ||||||||||||
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within eighteen months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 0.82% | |||
Class B Shares | 1.57% | |||
Class C Shares | 1.37% | |||
Class I Shares | 0.62% | |||
Effective Leverage Ratio as of August 31, 2013
Effective Leverage Ratio | 0.75% |
| * | Refer to the Glossary of Terms Used in the Report for definitions. Indexes and Lipper averages are not available for direct investment. |
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Fund Performance, Expense and Effective Leverage Ratios (continued)
Nuveen New Jersey Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense and Effective Leverage Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of August 31, 2013
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -7.48% | -5.15% | 4.62% | 4.32% | ||||||||||||
Class A Shares at maximum Offering Price | -11.37% | -9.16% | 3.73% | 3.88% | ||||||||||||
S&P Municipal Bond Index* | -5.99% | -3.74% | 4.50% | 4.55% | ||||||||||||
Lipper New Jersey Municipal Debt Funds Classification Average* | -7.77% | -6.02% | 3.69% | 3.75% | ||||||||||||
Class B Shares w/o CDSC | -7.74% | -5.84% | 3.86% | 3.70% | ||||||||||||
Class B Shares w/CDSC | -12.29% | -9.50% | 3.68% | 3.70% | ||||||||||||
Class C Shares | -7.69% | -5.61% | 4.06% | 3.76% | ||||||||||||
Class I Shares | -7.36% | -4.93% | 4.84% | 4.54% | ||||||||||||
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -4.65% | -3.35% | 6.24% | 4.28% | ||||||||||||
Class A Shares at maximum Offering Price | -8.69% | -7.42% | 5.33% | 3.83% | ||||||||||||
Class B Shares w/o CDSC | -5.00% | -3.97% | 5.46% | 3.65% | ||||||||||||
Class B Shares w/CDSC | -9.69% | -7.70% | 5.30% | 3.65% | ||||||||||||
Class C Shares | -4.86% | -3.81% | 5.68% | 3.72% | ||||||||||||
Class I Shares | -4.53% | -3.05% | 6.48% | 4.49% | ||||||||||||
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within eighteen months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Expense Ratios | ||||
Class A Shares | 0.81% | |||
Class B Shares | 1.56% | |||
Class C Shares | 1.36% | |||
Class I Shares | 0.61% | |||
Effective Leverage Ratio as of August 31, 2013
Effective Leverage Ratio | 1.04% |
| * | Refer to the Glossary of Terms Used in the Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| 14 | Nuveen Investments |
Nuveen New York Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense and Effective Leverage Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of August 31, 2013
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -7.25% | -5.49% | 4.02% | 4.14% | ||||||||||||
Class A Shares at maximum Offering Price | -11.18% | -9.42% | 3.13% | 3.69% | ||||||||||||
S&P Municipal Bond Index* | -5.99% | -3.74% | 4.50% | 4.55% | ||||||||||||
S&P Municipal Bond New York Index* | -5.40% | -3.38% | 4.37% | 4.52% | ||||||||||||
Lipper New York Municipal Debt Funds Classification Average* | -8.15% | -6.11% | 3.51% | 3.58% | ||||||||||||
Class B Shares w/o CDSC | -7.61% | -6.21% | 3.27% | 3.52% | ||||||||||||
Class B Shares w/CDSC | -12.17% | -9.86% | 3.10% | 3.52% | ||||||||||||
Class C Shares | -7.59% | -6.09% | 3.44% | 3.57% | ||||||||||||
Class I Shares | -7.23% | -5.37% | 4.22% | 4.34% | ||||||||||||
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -4.59% | -3.98% | 5.67% | 4.05% | ||||||||||||
Class A Shares at maximum Offering Price | -8.59% | -8.04% | 4.77% | 3.61% | ||||||||||||
Class B Shares w/o CDSC | -4.96% | -4.63% | 4.91% | 3.43% | ||||||||||||
Class B Shares w/CDSC | -9.65% | -8.34% | 4.74% | 3.43% | ||||||||||||
Class C Shares | -4.94% | -4.51% | 5.08% | 3.48% | ||||||||||||
Class I Shares | -4.57% | -3.78% | 5.89% | 4.26% | ||||||||||||
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within eighteen months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
Expense Ratios | ||||
Class A Shares | 0.79% | |||
Class B Shares | 1.54% | |||
Class C Shares | 1.34% | |||
Class I Shares | 0.59% | |||
Effective Leverage Ratio as of August 31, 2013
Effective Leverage Ratio | 2.70% |
| * | Refer to the Glossary of Terms Used in the Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| Nuveen Investments | 15 |
Dividend Yield is the most recent dividend per share (annualized) divided by the offering price per share.
The SEC 30-Day Yield is a standardized measure of a Fund’s yield that accounts for the future amortization of premiums or discounts of bonds held in the Fund’s portfolio. The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Dividend Yield may differ from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium.
The Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis at a specified tax rate. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the Taxable-Equivalent Yield is lower.
Nuveen Connecticut Municipal Bond Fund
| Dividend Yield | SEC 30-Day Yield | Taxable- Equivalent Yield1 | ||||||||||
Class A Shares5 | 3.64% | 3.38% | 4.99% | |||||||||
Class B Shares | 3.03% | 2.76% | 4.08% | |||||||||
Class C Shares | 3.21% | 2.97% | 4.39% | |||||||||
Class I Shares | 4.02% | 3.73% | 5.51% | |||||||||
Nuveen Massachusetts Municipal Bond Fund
| Dividend Yield | SEC 30-Day Yield | Taxable- Equivalent Yield2 | ||||||||||
Class A Shares5 | 3.75% | 2.94% | 4.31% | |||||||||
Class B Shares | 3.09% | 2.31% | 3.39% | |||||||||
Class C Shares | 3.31% | 2.51% | 3.68% | |||||||||
Class I Shares | 4.11% | 3.29% | 4.82% | |||||||||
Nuveen New Jersey Municipal Bond Fund
| Dividend Yield | SEC 30-Day Yield | Taxable- Equivalent Yield3 | ||||||||||
Class A Shares5 | 3.54% | 3.23% | 4.79% | |||||||||
Class B Shares | 2.89% | 2.62% | 3.89% | |||||||||
Class C Shares | 3.07% | 2.82% | 4.18% | |||||||||
Class I Shares | 3.90% | 3.58% | 5.31% | |||||||||
Nuveen New York Municipal Bond Fund
| Dividend Yield | SEC 30-Day Yield | Taxable- Equivalent Yield4 | ||||||||||
Class A Shares5 | 3.52% | 3.30% | 4.91% | |||||||||
Class B Shares | 2.86% | 2.68% | 3.99% | |||||||||
Class C Shares | 3.09% | 2.89% | 4.30% | |||||||||
Class I Shares | 3.84% | 3.64% | 5.42% | |||||||||
| 1 | The Taxable-Equivalent Yield is based on the Fund’s SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.3% |
| 2 | The Taxable-Equivalent Yield is based on the Fund’s SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 31.8%. |
| 3 | The Taxable-Equivalent Yield is based on the Fund’s SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.6% |
| 4 | The Taxable-Equivalent Yield is based on the Fund’s SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 32.8% |
| 5 | The SEC Yield for Class A shares quoted in the table reflects the maximum sales load. Investors paying a reduced load because of volume discounts, investors paying no load because they qualify for one of the several exclusions from the load, and existing shareholders who previously paid a load but would like to know the SEC Yield applicable to their shares on a going-forward basis, should understand that the SEC Yield effectively applicable to them would be higher than the figure quoted in the table. |
| 16 | Nuveen Investments |
Holding Summaries as of August 31, 2013
This data relates to the securities held in each Fund’s portfolio of investments. It should not be construed as a measure of performance for the Fund itself.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Nuveen Connecticut Municipal Bond Fund
| Bond Credit Quality1,2,3 | ||||
| AAA/U.S. Guaranteed | 11.3% | |||
| AA | 42.3% | |||
| A | 25.9% | |||
| BBB | 10.2% | |||
| BB or Lower | 2.6% | |||
| N/R | 6.0% | |||
Nuveen Massachusetts Municipal Bond Fund
| Bond Credit Quality1,2,3 | ||||
| AAA/U.S. Guaranteed | 16.3% | |||
| AA | 38.3% | |||
| A | 22.1% | |||
| BBB | 13.8% | |||
| BB or Lower | 2.9% | |||
| N/R | 4.8% | |||
Nuveen New Jersey Municipal Bond Fund
| Bond Credit Quality1,2,3 | ||||
| AAA/U.S. Guaranteed | 14.3% | |||
| AA | 26.2% | |||
| A | 36.2% | |||
| BBB | 14.7% | |||
| BB or Lower | 5.2% | |||
| N/R | 2.0% | |||
Nuveen New York Municipal Bond Fund
| Bond Credit Quality1,2,3 | ||||
| AAA/U.S. Guaranteed | 19.5% | |||
| AA | 36.4% | |||
| A | 22.9% | |||
| BBB | 8.5% | |||
| BB or Lower | 7.6% | |||
| N/R | 3.5% | |||
| Portfolio Composition1,4 | ||||
| Education and Civic Organizations | 21.9% | |||
| Tax Obligation/General | 18.2% | |||
| Health Care | 16.9% | |||
| Tax Obligation/Limited | 13.8% | |||
| Water and Sewer | 11.3% | |||
| Utilities | 8.9% | |||
| Other | 9.0% | |||
| Portfolio Composition1,4 | ||||
| Education and Civic Organizations | 29.0% | |||
| Tax Obligation/Limited | 14.7% | |||
| Health Care | 12.6% | |||
| U.S. Guaranteed | 12.6% | |||
| Water and Sewer | 8.4% | |||
| Tax Obligation/General | 6.5% | |||
| Transportation | 6.7% | |||
| Other | 9.5% | |||
| Portfolio Composition1,4 | ||||
| Tax Obligation/Limited | 20.7% | |||
| Health Care | 15.9% | |||
| Transportation | 15.9% | |||
| U.S. Guaranteed | 11.8% | |||
| Education and Civic Organizations | 11.5% | |||
| Tax Obligation/General | 8.1% | |||
| Housing/Multifamily | 4.1% | |||
| Other | 12.0% | |||
| Portfolio Composition1,4 | ||||
Tax Obligation/Limited | 31.7% | |||
Transportation | 13.1% | |||
Education and Civic Organizations | 12.5% | |||
Utilities | 10.0% | |||
Health Care | 8.7% | |||
Tax Obligation/General | 6.7% | |||
Water and Sewer | 6.0% | |||
Other | 11.3% | |||
| 1 | Holdings are subject to change. |
| 2 | Percentages may not add to 100% due to the exclusion of other assets less liabilities from the table. |
| 3 | As a percentage of total investment exposure. |
| 4 | As a percentage of total investments. |
| Nuveen Investments | 17 |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the respective Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen Connecticut Municipal Bond Fund
| Hypothetical Performance | ||||||||||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | I Shares | A Shares | B Shares | C Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (3/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (8/31/13) | $ | 929.00 | $ | 926.30 | $ | 927.10 | $ | 930.30 | $ | 1,021.17 | $ | 1,017.44 | $ | 1,018.40 | $ | 1,022.18 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 3.89 | $ | 7.48 | $ | 6.56 | $ | 2.92 | $ | 4.08 | $ | 7.83 | $ | 6.87 | $ | 3.06 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .80%, 1.54%, 1.35% and .60% for Classes A, B, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen Massachusetts Municipal Bond Fund
| Hypothetical Performance | ||||||||||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | I Shares | A Shares | B Shares | C Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (3/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (8/31/13) | $ | 927.00 | $ | 923.50 | $ | 925.50 | $ | 928.60 | $ | 1,021.02 | $ | 1,017.29 | $ | 1,018.25 | $ | 1,022.03 | ||||||||||||||||||
| Expense Incurred During Period | $ | 4.03 | $ | 7.61 | $ | 6.70 | $ | 3.06 | $ | 4.23 | $ | 7.98 | $ | 7.02 | $ | 3.21 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .83%, 1.57%, 1.38% and .63% for Classes A, B, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| 18 | Nuveen Investments |
Nuveen New Jersey Municipal Bond Fund
| Hypothetical Performance | ||||||||||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | I Shares | A Shares | B Shares | C Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (3/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (8/31/13) | $ | 925.20 | $ | 922.60 | $ | 923.10 | $ | 926.40 | $ | 1,021.12 | $ | 1,017.34 | $ | 1,018.35 | $ | 1,022.13 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 3.93 | $ | 7.56 | $ | 6.59 | $ | 2.96 | $ | 4.13 | $ | 7.93 | $ | 6.92 | $ | 3.11 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .81%, 1.56%, 1.36% and .61% for Classes A, B, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen New York Municipal Bond Fund
| Hypothetical Performance | ||||||||||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | I Shares | A Shares | B Shares | C Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (3/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (8/31/13) | $ | 927.50 | $ | 923.90 | $ | 924.10 | $ | 927.70 | $ | 1,021.22 | $ | 1,017.44 | $ | 1,018.45 | $ | 1,022.23 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 3.84 | $ | 7.47 | $ | 6.50 | $ | 2.87 | $ | 4.02 | $ | 7.83 | $ | 6.82 | $ | 3.01 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .79%, 1.54%, 1.34% and .59% for Classes A, B, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| Nuveen Investments | 19 |
Portfolio of Investments (Unaudited)
Nuveen Connecticut Municipal Bond Fund
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Consumer Staples – 1.6% | ||||||||||||||||||
| $ | 2,000 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 11/13 at 100.00 | BBB+ | $ | 1,844,300 | ||||||||||||
| 3,000 | Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, Series 2009A, 6.625%, 10/01/29 | 10/19 at 100.00 | BBB | 3,265,230 | ||||||||||||||
| 5,000 | Total Consumer Staples | 5,109,530 | ||||||||||||||||
Education and Civic Organizations – 22.1% | ||||||||||||||||||
| 210 | Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter Schools, Series 2007A, 5.000%, 4/01/20 | 4/17 at 100.00 | BB+ | 212,394 | ||||||||||||||
| 1,185 | Connecticut Health and Education Facilities Authority, Revenue Bonds, Connecticut College, Series 2011H, 5.000%, 7/01/41 | 7/21 at 100.00 | A2 | 1,191,020 | ||||||||||||||
| 4,000 | Connecticut Health and Education Facilities Authority, Revenue Bonds, Quinnipiac University, Series 2007K-2, 5.000%, 7/01/31 – NPFG Insured | 7/18 at 100.00 | A | 4,066,520 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Brunswick School, Series 2012C: | ||||||||||||||||||
| 1,000 | 5.000%, 7/01/31 | 7/22 at 100.00 | A+ | 1,027,250 | ||||||||||||||
| 500 | 5.000%, 7/01/32 | 7/22 at 100.00 | A+ | 511,440 | ||||||||||||||
| 1,435 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Canterbury School, Series 2006B, 5.000%, 7/01/36 – RAAI Insured | 7/16 at 100.00 | N/R | 1,334,306 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Chase Collegiate School, Series 2007A: | ||||||||||||||||||
| 960 | 5.000%, 7/01/27 – RAAI Insured | 7/17 at 100.00 | N/R | 950,957 | ||||||||||||||
| 400 | 5.000%, 7/01/32 – RAAI Insured | 7/17 at 100.00 | N/R | 381,884 | ||||||||||||||
| 2,000 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut College, Series 2007G, 4.500%, 7/01/37 – NPFG Insured | 7/17 at 100.00 | A | 1,861,500 | ||||||||||||||
| 3,205 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Fairfield University, Series 2010-O, 5.000%, 7/01/35 | 7/20 at 100.00 | A– | 3,223,204 | ||||||||||||||
| 650 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Kent School, Series 2004D, 5.000%, 7/01/16 – NPFG Insured | 1/15 at 100.00 | Baa1 | 679,224 | ||||||||||||||
| 1,050 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Norwich Free Academy, Series 2013B, 4.000%, 7/01/34 | 7/23 at 100.00 | A1 | 940,076 | ||||||||||||||
| 4,000 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac University, Series 2006H, 5.000%, 7/01/36 – AMBAC Insured | 7/16 at 100.00 | A– | 4,004,960 | ||||||||||||||
| 4,450 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac University, Series 2007-I, 5.000%, 7/01/25 – NPFG Insured | 7/17 at 100.00 | A | 4,709,613 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart University, Series 2011G: | ||||||||||||||||||
| 1,000 | 5.125%, 7/01/26 | 7/21 at 100.00 | Baa1 | 1,012,490 | ||||||||||||||
| 2,500 | 5.625%, 7/01/41 | 7/21 at 100.00 | Baa1 | 2,521,050 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Sacred Heart University, Series 2012H: | ||||||||||||||||||
| 1,255 | 5.000%, 7/01/26 – AGM Insured | 7/22 at 100.00 | AA– | 1,295,662 | ||||||||||||||
| 1,750 | 5.000%, 7/01/27 – AGM Insured | 7/22 at 100.00 | AA– | 1,787,503 | ||||||||||||||
| 650 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College, Series 2004H, 5.000%, 7/01/17 – NPFG Insured | 7/14 at 100.00 | A+ | 674,622 | ||||||||||||||
| 2,010 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College, Series 2007J, 4.500%, 7/01/37 – NPFG Insured | 7/17 at 100.00 | A+ | 1,980,976 | ||||||||||||||
| 1,400 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College, Series 2010M, 4.250%, 7/01/28 | 7/20 at 100.00 | A+ | 1,400,756 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, University of Hartford, Series 2006G: | ||||||||||||||||||
| 4,995 | 5.250%, 7/01/26 – RAAI Insured | 7/16 at 100.00 | BBB– | 5,050,944 | ||||||||||||||
| 2,250 | 5.250%, 7/01/36 – RAAI Insured | 7/16 at 100.00 | BBB– | 2,128,275 | ||||||||||||||
| 10,050 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University, Series 2007Z-1, 5.000%, 7/01/42 | 7/16 at 100.00 | AAA | 10,290,094 | ||||||||||||||
| 20 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 3,000 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale University, Series 2007Z-3, 5.050%, 7/01/42 | 7/17 at 100.00 | AAA | $ | 3,095,640 | ||||||||||||
| 1,585 | Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds, Family Education Loan Program, Series 2010A, 4.000%, 11/15/30 | 11/20 at 100.00 | Aa3 | 1,460,261 | ||||||||||||||
University of Connecticut, General Obligation Bonds, Series 2009A: | ||||||||||||||||||
| 1,000 | 5.000%, 2/15/27 | 2/19 at 100.00 | AA | 1,086,350 | ||||||||||||||
| 1,000 | 5.000%, 2/15/28 | 2/19 at 100.00 | AA | 1,077,430 | ||||||||||||||
University of Connecticut, General Obligation Bonds, Series 2013A: | ||||||||||||||||||
| 2,290 | 5.000%, 8/15/20 | No Opt. Call | AA | 2,666,545 | ||||||||||||||
| 2,500 | 5.000%, 8/15/32 | 8/23 at 100.00 | AA | 2,611,650 | ||||||||||||||
| 630 | University of Connecticut, Student Fee Revenue Bonds, Refunding Series 2010A, 5.000%, 11/15/27 | 11/19 at 100.00 | Aa2 | 664,033 | ||||||||||||||
University of Connecticut, Student Fee Revenue Bonds, Refunding Series 2012A: | ||||||||||||||||||
| 2,000 | 5.000%, 11/15/27 | No Opt. Call | Aa2 | 2,148,300 | ||||||||||||||
| 4,605 | 5.000%, 11/15/28 | No Opt. Call | Aa2 | 4,898,108 | ||||||||||||||
| 71,515 | Total Education and Civic Organizations | 72,945,037 | ||||||||||||||||
Health Care – 17.1% | ||||||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bristol Hospital, Series 2002B: | ||||||||||||||||||
| 835 | 5.500%, 7/01/21 – RAAI Insured | 7/14 at 100.00 | N/R | 837,639 | ||||||||||||||
| 4,025 | 5.500%, 7/01/32 – RAAI Insured | 7/14 at 100.00 | N/R | 3,818,920 | ||||||||||||||
| 640 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut Health Network, Series 2000A, 6.000%, 7/01/25 – RAAI Insured | 11/13 at 100.00 | N/R | 640,269 | ||||||||||||||
| 2,240 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut Health Network, Series 2005, 5.000%, 7/01/25 – RAAI Insured | 7/15 at 100.00 | N/R | 2,165,072 | ||||||||||||||
| 7,575 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hartford Healthcare, Series 2011A, 5.000%, 7/01/41 | 7/21 at 100.00 | A | 7,219,201 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital For Special Care, Series 2007C: | ||||||||||||||||||
| 500 | 5.250%, 7/01/22 – RAAI Insured | 7/17 at 100.00 | BBB– | 516,250 | ||||||||||||||
| 1,055 | 5.250%, 7/01/32 – RAAI Insured | 7/17 at 100.00 | BBB– | 1,017,632 | ||||||||||||||
| 1,000 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lawrence and Memorial Hospitals, Series 2011F, 5.000%, 7/01/36 | 7/21 at 100.00 | A+ | 981,900 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Middlesex Hospital, Series 2011N: | ||||||||||||||||||
| 495 | 5.000%, 7/01/25 | 7/21 at 100.00 | A2 | 513,647 | ||||||||||||||
| 500 | 5.000%, 7/01/27 | 7/21 at 100.00 | A2 | 507,580 | ||||||||||||||
| 90 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, St. Francis Hospital and Medical Center, Series 2002D, 5.000%, 7/01/22 – RAAI Insured | 11/13 at 100.00 | N/R | 88,763 | ||||||||||||||
| 4,020 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Stamford Hospital, Series 2010-I, 5.000%, 7/01/30 | 7/20 at 10.00 | A | 4,037,045 | ||||||||||||||
| 5,000 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Stamford Hospital, Series 2012J, 5.000%, 7/01/42 | 7/22 at 100.00 | A | 4,754,450 | ||||||||||||||
| 3,910 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Western Connecticut Health, Series 2011M, 5.375%, 7/01/41 | 7/21 at 100.00 | A | 3,927,048 | ||||||||||||||
| 2,000 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Western Connecticut Health, Series 2011N, 5.000%, 7/01/29 | 7/21 at 100.00 | A | 2,026,400 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, William W. Backus Hospital, Series 2005F: | ||||||||||||||||||
| 2,000 | 5.000%, 7/01/28 – AGM Insured | 7/18 at 100.00 | AA– | 2,025,120 | ||||||||||||||
| 20 | 5.125%, 7/01/35 – AGM Insured | 7/18 at 100.00 | AA– | 20,041 | ||||||||||||||
| Nuveen Investments | 21 |
Portfolio of Investments (Unaudited)
Nuveen Connecticut Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 11,460 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale-New Haven Hospital, Series 2006J-1, 5.000%, 7/01/31 – AMBAC Insured | 7/16 at 100.00 | Aa3 | $ | 11,501,255 | ||||||||||||
| 1,305 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale-New Haven Hospital, Series 2010M, 5.500%, 7/01/40 | 7/20 at 100.00 | Aa3 | 1,350,688 | ||||||||||||||
| 2,640 | Connecticut Health and Eductaional Facilities Authority, Revenue Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40 | 11/19 at 100.00 | AA+ | 2,593,562 | ||||||||||||||
| 3,900 | Monroe County Industrial Development Corporation, New York, FHA Insured Mortgage Revenue Bonds, Unity Hospital of Rochestor Project, Series 2010, 5.500%, 8/15/40 | 2/21 at 100.00 | Aa2 | 4,015,167 | ||||||||||||||
| 1,670 | Orange County Health Facilities Authority, Florida, Orlando Regional Healthcare System Revenue Bonds, Series 2009, 5.125%, 10/01/26 | 10/19 at 100.00 | A | 1,729,001 | ||||||||||||||
| 56,880 | Total Health Care | 56,286,650 | ||||||||||||||||
Housing/Single Family – 2.9% | ||||||||||||||||||
| 5,000 | Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2004A-5, 5.050%, 11/15/34 | 11/13 at 100.00 | AAA | 5,002,050 | ||||||||||||||
| 1,090 | Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2006-A1, 4.800%, 11/15/31 (Alternative Minimum Tax) | 11/15 at 100.00 | AAA | 1,084,256 | ||||||||||||||
| 3,410 | Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2006D, 4.650%, 11/15/27 | 5/16 at 100.00 | AAA | 3,437,621 | ||||||||||||||
| 9,500 | Total Housing/Single Family | 9,523,927 | ||||||||||||||||
Long-Term Care – 1.3% | ||||||||||||||||||
| 3,010 | Connecticut Housing Finance Authority, State Supported Special Obligation Bonds, Refunding Series 2010-16, 5.000%, 6/15/30 | 6/20 at 100.00 | AA | 3,111,256 | ||||||||||||||
Hamden, Connecticut, Facility Revenue Bonds, Whitney Center Project, Series 2009A: | ||||||||||||||||||
| 25 | 6.125%, 1/01/14 | 11/13 at 100.00 | N/R | 25,006 | ||||||||||||||
| 830 | 7.625%, 1/01/30 | 1/20 at 100.00 | N/R | 851,173 | ||||||||||||||
| 350 | 7.750%, 1/01/43 | 1/20 at 100.00 | N/R | 354,645 | ||||||||||||||
| 4,215 | Total Long-Term Care | 4,342,080 | ||||||||||||||||
Tax Obligation/General – 18.5% | ||||||||||||||||||
Connecticut State, General Obligation Bonds, Refunding Series 2012E: | ||||||||||||||||||
| 1,000 | 5.000%, 9/15/30 | 9/22 at 100.00 | AA | 1,050,430 | ||||||||||||||
| 2,710 | 5.000%, 9/15/32 | 9/22 at 100.00 | AA | 2,813,766 | ||||||||||||||
| 5,000 | Connecticut State, General Obligation Bonds, Series 2006A, 4.750%, 12/15/24 | 12/16 at 100.00 | AA | 5,343,850 | ||||||||||||||
| 2,200 | Connecticut State, General Obligation Bonds, Series 2006C, 5.000%, 6/01/23 – AGM Insured | 6/16 at 100.00 | AA | 2,411,046 | ||||||||||||||
| 1,000 | Connecticut State, General Obligation Bonds, Series 2006E, 5.000%, 12/15/20 | 12/16 at 10.00 | AA | 1,119,980 | ||||||||||||||
Connecticut State, General Obligation Bonds, Series 2008C: | ||||||||||||||||||
| 1,000 | 5.000%, 11/01/26 | 11/18 at 100.00 | AA | 1,089,470 | ||||||||||||||
| 1,015 | 5.000%, 11/01/27 | 11/18 at 100.00 | AA | 1,120,814 | ||||||||||||||
| 1,015 | 5.000%, 11/01/28 | 11/18 at 100.00 | AA | 1,104,493 | ||||||||||||||
| 1,000 | Connecticut State, General Obligation Bonds, Series 2011D, 5.000%, 11/01/31 | 11/21 at 100.00 | AA | 1,060,460 | ||||||||||||||
Connecticut State, General Obligation Bonds, Series 2001C: | ||||||||||||||||||
| 5,000 | 5.500%, 12/15/13 (UB) | No Opt. Call | AA | 5,078,650 | ||||||||||||||
| 10,000 | 5.500%, 12/15/14 (UB) | No Opt. Call | AA | 10,684,700 | ||||||||||||||
Hartford, Connecticut, General Obligation Bonds, Series 2005A: | ||||||||||||||||||
| 1,195 | 5.000%, 8/01/20 – AGM Insured | 8/15 at 100.00 | AA– | 1,291,962 | ||||||||||||||
| 595 | 5.000%, 8/01/21 – AGM Insured | 8/15 at 100.00 | AA– | 642,921 | ||||||||||||||
| 1,210 | 4.375%, 8/01/24 – AGM Insured | 8/15 at 100.00 | AA– | 1,227,327 | ||||||||||||||
| 22 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 2,000 | New Haven, Connecticut, General Obligation Bonds, Refunding Series 2012A, 5.000%, 11/01/18 | No Opt. Call | A2 | $ | 2,254,380 | ||||||||||||
| 485 | North Haven, Connecticut, General Obligation Bonds, Series 2006, 5.000%, 7/15/24 | No Opt. Call | Aa1 | 564,991 | ||||||||||||||
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A: | ||||||||||||||||||
| 700 | 5.500%, 7/01/14 – AGM Insured | No Opt. Call | AA– | 713,412 | ||||||||||||||
| 2,125 | 5.500%, 7/01/16 – AGM Insured | No Opt. Call | AA– | 2,232,844 | ||||||||||||||
| 2,500 | 5.500%, 7/01/17 – AGM Insured | No Opt. Call | AA– | 2,609,925 | ||||||||||||||
| 2,870 | 5.500%, 7/01/18 – AGM Insured | No Opt. Call | AA– | 2,953,173 | ||||||||||||||
| 1,875 | 5.500%, 7/01/19 – AGM Insured | No Opt. Call | AA– | 1,899,638 | ||||||||||||||
| 1,700 | Puerto Rico, General Obligation and Public Improvement Bonds, Series 2002A, 5.500%, 7/01/29 – FGIC Insured | No Opt. Call | Baa3 | 1,328,329 | ||||||||||||||
| 3,000 | Waterbury, Connecticut, General Obligation Bonds, Series 2012A, 5.000%, 8/01/30 | 8/22 at 100.00 | A1 | 3,084,660 | ||||||||||||||
| 2,000 | West Haven, Connecticut, General Obligation Bonds, Series 2012, 5.000%, 8/01/24 – AGM Insured | 8/22 at 100.00 | AA– | 2,059,140 | ||||||||||||||
Williamson & Johnson Counties Community Unit School District 2, Marion, Illinois, General Obligation Bonds, Series 2011: | ||||||||||||||||||
| 1,280 | 7.000%, 12/01/24 – AGM Insured | 12/20 at 100.00 | AA– | 1,468,416 | ||||||||||||||
| 1,415 | 7.000%, 12/01/25 – AGM Insured | 12/20 at 100.00 | AA– | 1,602,544 | ||||||||||||||
| 1,725 | 7.000%, 12/01/27 – AGM Insured | 12/20 at 100.00 | AA– | 1,923,841 | ||||||||||||||
| 57,615 | Total Tax Obligation/General | 60,735,162 | ||||||||||||||||
Tax Obligation/Limited – 13.9% | ||||||||||||||||||
| 2,600 | Connecticut Health and Educational Facilities Authority, Child Care Facilities Program Revenue Bonds, Series 2006F, 5.000%, 7/01/36 – AGC Insured | 7/16 at 100.00 | AA– | 2,603,224 | ||||||||||||||
| 1,315 | Connecticut Health and Educational Facilities Authority, Child Care Facilities Program Revenue Bonds, Series 2008G, 6.000%, 7/01/28 – AGC Insured | 7/18 at 100.00 | AA– | 1,404,196 | ||||||||||||||
Connecticut, Certificates of Participation, Juvenile Training School, Series 2001: | ||||||||||||||||||
| 1,275 | 5.000%, 12/15/20 | 12/13 at 100.00 | AA– | 1,302,323 | ||||||||||||||
| 1,000 | 5.000%, 12/15/30 | 12/13 at 100.00 | AA– | 1,003,540 | ||||||||||||||
| 5,000 | Connecticut, Special Tax Obligation Transportation Infrastructure Purpose Revenue Bonds, Series 2007A, 5.000%, 8/01/26 – AMBAC Insured | 8/17 at 100.00 | AA | 5,227,550 | ||||||||||||||
| 5,000 | Connecticut, Special Tax Obligation Transportation Infrastructure Purposes Bonds, Series 2008A, 5.000%, 11/01/28 | 11/18 at 100.00 | AA | 5,262,650 | ||||||||||||||
Connecticut, Special Tax Obligation Transportation Infrastructure Purposes Bonds, Series 2012A: | ||||||||||||||||||
| 3,000 | 5.000%, 1/01/31 | No Opt. Call | AA | 3,117,780 | ||||||||||||||
| 2,500 | 5.000%, 1/01/33 | No Opt. Call | AA | 2,575,050 | ||||||||||||||
| 2,200 | Guam Government, Limited Obligation Section 30 Revenue Bonds, Series 2009A, 5.750%, 12/01/34 | 12/19 at 100.00 | BBB+ | 2,249,566 | ||||||||||||||
Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N: | ||||||||||||||||||
| 200 | 5.250%, 7/01/31 – AMBAC Insured | No Opt. Call | BBB | 149,116 | ||||||||||||||
| 4,050 | 5.250%, 7/01/33 – NPFG Insured | No Opt. Call | A | 3,005,910 | ||||||||||||||
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A: | ||||||||||||||||||
| 2,250 | 6.000%, 8/01/42 | 8/19 at 100.00 | A+ | 2,005,313 | ||||||||||||||
| 5,000 | 6.500%, 8/01/44 | 8/19 at 100.00 | A+ | 4,733,200 | ||||||||||||||
| 13,230 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010A, 0.000%, 8/01/33 | No Opt. Call | A+ | 3,239,498 | ||||||||||||||
| 1,050 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 5.250%, 8/01/57 | 8/17 at 100.00 | AA– | 880,667 | ||||||||||||||
| Nuveen Investments | 23 |
Portfolio of Investments (Unaudited)
Nuveen Connecticut Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 305 | Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%, 7/01/19 – NPFG Insured | No Opt. Call | A | $ | 292,715 | ||||||||||||
| 1,720 | Stamford, Connecticut, Special Obligation Revenue Bonds, Mill River Corridor Project, Series 2011aA, 7.000%, 4/01/41 | 4/21 at 100.00 | N/R | 1,717,764 | ||||||||||||||
| 4,025 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 5.000%, 10/01/32 | No Opt. Call | BBB+ | 3,811,554 | ||||||||||||||
| 1,370 | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Senior Lien Series 2010A, 5.000%, 10/01/29 | 10/20 at 100.00 | BBB | 1,324,379 | ||||||||||||||
| 57,090 | Total Tax Obligation/Limited | 45,905,995 | ||||||||||||||||
Transportation – 0.5% | ||||||||||||||||||
| 1,360 | New Haven, Connecticut, Revenue Refunding Bonds, Air Rights Parking Facility, Series 2002, 5.375%, 12/01/14 – AMBAC Insured | No Opt. Call | N/R | 1,405,655 | ||||||||||||||
| 250 | Puerto Rico Ports Authority, Special Facilities Revenue Bonds, American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) (4) | 12/13 at 100.00 | N/R | 248,750 | ||||||||||||||
| 1,610 | Total Transportation | 1,654,405 | ||||||||||||||||
U.S. Guaranteed – 3.0% (5) | ||||||||||||||||||
| 685 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lutheran General Healthcare System – Parkside Lodges Projects, Series 1989, 7.375%, 7/01/19 (ETM) | 11/13 at 100.00 | Aaa | 815,842 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Renbrook School, Series 2007A: | ||||||||||||||||||
| 395 | 5.000%, 7/01/30 (Pre-refunded 7/01/17) – AMBAC Insured | 7/17 at 100.00 | N/R (5) | 450,557 | ||||||||||||||
| 965 | 5.000%, 7/01/37 (Pre-refunded 7/01/17) – AMBAC Insured | 7/17 at 100.00 | N/R (5) | 1,100,727 | ||||||||||||||
| 2,330 | Connecticut State, General Obligation Bonds, Series 2004C, 5.000%, 4/01/23 (Pre-refunded 4/01/14) – FGIC Insured | 4/14 at 100.00 | AA (5) | 2,395,962 | ||||||||||||||
| 1,395 | Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%, 7/01/19 – NPFG Insured (ETM) | No Opt. Call | A (5) | 1,679,315 | ||||||||||||||
| 550 | Stamford, Connecticut, Water Pollution Control System and Facility Revenue Bonds, Series 2003A, 5.000%, 11/15/32 (Pre-refunded 11/15/13) | 11/13 at 100.00 | AA+ (5) | 555,489 | ||||||||||||||
| 2,670 | University of Connecticut, General Obligation Bonds, Series 2005A, 5.000%, 2/15/17 (Pre-refunded 2/15/15) – AGM Insured | 2/15 at 100.00 | AA (5) | 2,848,116 | ||||||||||||||
| 8,990 | Total U.S. Guaranteed | 9,846,008 | ||||||||||||||||
Utilities – 9.0% | ||||||||||||||||||
Connecticut Municipal Electric Energy Cooperative, Power Supply System Revenue Bonds, Series 2013A: | ||||||||||||||||||
| 500 | 5.000%, 1/01/20 | No Opt. Call | Aa3 | 574,075 | ||||||||||||||
| 345 | 5.000%, 1/01/38 | 1/23 at 100.00 | Aa3 | 345,486 | ||||||||||||||
Connecticut Municipal Electric Energy Cooperative, Transmission Services Revenue Bonds, Series 2012A: | ||||||||||||||||||
| 955 | 5.000%, 1/01/24 | 1/22 at 100.00 | Aa3 | 1,051,226 | ||||||||||||||
| 880 | 5.000%, 1/01/25 | 1/22 at 100.00 | Aa3 | 956,111 | ||||||||||||||
| 5,250 | Connecticut Resource Recovery Authority, Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut LP, Series 1992A, 6.450%, 11/15/22 (Alternative Minimum Tax) | 11/13 at 100.00 | Ba1 | 5,253,623 | ||||||||||||||
| 1,000 | Connecticut Resource Recovery Authority, Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut LP, Series 1998A-II, 5.500%, 11/15/15 (Alternative Minimum Tax) | 12/13 at 100.00 | Ba1 | 999,170 | ||||||||||||||
| 3,170 | Connecticut Transmission Municipal Electric Energy Cooperative, Transmission System Revenue Bonds, Series 2012A, 5.000%, 1/01/42 | 1/22 at 100.00 | Aa3 | 3,184,804 | ||||||||||||||
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A: | ||||||||||||||||||
| 265 | 5.500%, 1/01/14 (Alternative Minimum Tax) | No Opt. Call | BBB | 265,201 | ||||||||||||||
| 6,685 | 5.500%, 1/01/20 (Alternative Minimum Tax) | 1/14 at 100.00 | BBB | 6,690,080 | ||||||||||||||
| 24 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Utilities (continued) | ||||||||||||||||||
Guam Power Authority, Revenue Bonds, Series 2012A: | ||||||||||||||||||
| $ | 440 | 5.000%, 10/01/25 – AGM Insured | 10/22 at 100.00 | AA– | $ | 470,633 | ||||||||||||
| 555 | 5.000%, 10/01/30 – AGM Insured | 10/22 at 100.00 | AA– | 566,350 | ||||||||||||||
Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series 2002: | ||||||||||||||||||
| 5,000 | 5.000%, 7/01/19 – NPFG Insured | No Opt. Call | A | 4,724,850 | ||||||||||||||
| 5,000 | 5.000%, 7/01/20 – NPFG Insured | No Opt. Call | A | 4,601,250 | ||||||||||||||
| 30,045 | Total Utilities | 29,682,859 | ||||||||||||||||
Water and Sewer – 11.4% | ||||||||||||||||||
| 160 | Connecticut Development Authority, Water Facility Revenue Bonds, Aquarion Water Company Project, Refunding Series 2005B, 4.400%, 8/01/29 – SYNCORA GTY Insured | 8/14 at 100.00 | N/R | 147,686 | ||||||||||||||
| 5,625 | Connecticut Development Authority, Water Facility Revenue Bonds, Aquarion Water Company Project, Series 2007, 5.100%, 9/01/37 – SYNCORA GTY Insured (Alternative Minimum Tax) | 9/17 at 100.00 | N/R | 5,392,181 | ||||||||||||||
| 5,000 | Connecticut, State Revolving Fund General Revenue Bonds, Series 2013A, 5.000%, 3/01/25 | 3/23 at 100.00 | AAA | 5,617,799 | ||||||||||||||
Greater New Haven Water Pollution Control Authority, Connecticut, Regional Wastewater System Revenue Bonds, Series 2005A: | ||||||||||||||||||
| 3,840 | 5.000%, 11/15/30 – NPFG Insured | 11/15 at 100.00 | A1 | 3,908,467 | ||||||||||||||
| 4,685 | 5.000%, 8/15/35 – NPFG Insured | 11/15 at 100.00 | A1 | 4,698,727 | ||||||||||||||
| 2,350 | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2010, 5.625%, 7/01/40 | 7/20 at 100.00 | Ba2 | 2,218,048 | ||||||||||||||
| 2,500 | Hartford County Metropolitan District, Connecticut, Clean Water Project Revenue Bonds, Series 2013A, 5.000%, 4/01/39 | 4/22 at 100.00 | AA | 2,520,725 | ||||||||||||||
| 1,000 | New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Fiscal 2011 Series EE, 5.375%, 6/15/43 | 12/20 at 100.00 | AA+ | 1,043,070 | ||||||||||||||
| 1,140 | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/38 | 7/18 at 100.00 | BBB– | 859,172 | ||||||||||||||
| 500 | South Central Connecticut Regional Water Authority, Water System Revenue Bonds Twenty-Eighth Series 2013A, 5.000%, 8/01/38 | 8/22 at 100.00 | Aa3 | 502,125 | ||||||||||||||
| 1,000 | South Central Connecticut Regional Water Authority, Water System Revenue Bonds Twenty-Eighth Series 2013B, 5.000%, 8/01/21 | No Opt. Call | Aa3 | 1,141,050 | ||||||||||||||
| 2,000 | South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Twenty-Seventh Series 2012, 5.000%, 8/01/30 – FGIC Insured | 8/22 at 100.00 | Aa3 | 2,077,200 | ||||||||||||||
| 2,760 | South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Twentieth Series, 2007A, 5.000%, 8/01/30 – NPFG Insured | 8/16 at 100.00 | Aa3 | 2,828,834 | ||||||||||||||
| 4,130 | South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Twentieth-Sixth Series, 2011, 5.000%, 8/01/41 | 8/21 at 100.00 | Aa3 | 4,194,593 | ||||||||||||||
| 500 | Stamford, Connecticut, Water Pollution Control System and Facility Revenue Bonds, Series 2013A, 5.250%, 8/15/43 | 8/23 at 100.00 | AA+ | 508,915 | ||||||||||||||
| 37,190 | Total Water and Sewer | 37,658,592 | ||||||||||||||||
| $ | 339,650 | Total Investments (cost $340,229,279) – 101.3% | 333,690,245 | |||||||||||||||
Floating Rate Obligations – (3.0%) | (10,000,000) | |||||||||||||||||
Other Assets Less Liabilities – 1.7% | 5,803,857 | |||||||||||||||||
Net Assets – 100% | $ | 329,494,102 | ||||||||||||||||
| Nuveen Investments | 25 |
Portfolio of Investments (Unaudited)
Nuveen Connecticut Municipal Bond Fund (continued)
August 31, 2013
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |||
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |||
| (3) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |||
| (4) | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. | |||
| (5) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |||
| (ETM) | Escrowed to maturity. | |||
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information. |
See accompanying notes to financial statements.
| 26 | Nuveen Investments |
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Municipal Bond Fund
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Consumer Discretionary – 0.4% | ||||||||||||||||||
| $ | 1,425 | Boston Industrial Development Financing Authority, Massachusetts, Senior Revenue Bonds, Crosstown Center Project, Series 2002, 6.500%, 9/01/35 (Alternative Minimum Tax) | 3/14 at 101.00 | Caa3 | $ | 1,003,414 | ||||||||||||
Consumer Staples – 0.7% | ||||||||||||||||||
| 725 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 5/33 at 100.00 | BBB+ | 668,559 | ||||||||||||||
| 1,000 | Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, Series 2009A, 6.625%, 10/01/29 | 10/19 at 100.00 | BBB | 1,088,410 | ||||||||||||||
| 1,725 | Total Consumer Staples | 1,756,969 | ||||||||||||||||
Education and Civic Organizations – 28.4% | ||||||||||||||||||
| 1,270 | Massachusetts Development Finance Agency, Revenue Bonds, Bentley University, Series 2010, 5.000%, 7/01/28 | 7/20 at 100.00 | A3 | 1,286,789 | ||||||||||||||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Boston College Issue, Series 2013S, 5.000%, 7/01/32 | 7/23 at 100.00 | AA– | 3,113,160 | ||||||||||||||
| 1,500 | Massachusetts Development Finance Agency, Revenue Bonds, Boston College, Series 2010R-1, 5.000%, 7/01/40 | 7/20 at 100.00 | AA– | 1,527,705 | ||||||||||||||
| 975 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2005T-1, 5.000%, 10/01/39 – AMBAC Insured | 10/15 at 100.00 | A1 | 960,980 | ||||||||||||||
| 1,015 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2008U-4, 5.600%, 10/01/35 | 10/19 at 100.00 | A1 | 1,115,373 | ||||||||||||||
| 750 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2009V-1, 5.000%, 10/01/29 | 10/19 at 100.00 | A1 | 781,575 | ||||||||||||||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Brandeis University, Series 2008N, 5.000%, 10/01/39 | 10/18 at 100.00 | A1 | 2,995,530 | ||||||||||||||
| 6,000 | Massachusetts Development Finance Agency, Revenue Bonds, Draper Laboratory, Series 2008, 5.875%, 9/01/30 | 9/18 at 100.00 | Aa3 | 6,633,298 | ||||||||||||||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Emerson College, Series 2010A, 5.000%, 1/01/40 | 1/20 at 100.00 | BBB+ | 936,070 | ||||||||||||||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Harvard University, Series 2010B-1, 5.000%, 10/15/40 | 10/20 at 100.00 | AAA | 3,119,160 | ||||||||||||||
| 1,350 | Massachusetts Development Finance Agency, Revenue Bonds, Merrimack College, Series 2012A, 5.250%, 7/01/42 | 7/22 at 100.00 | BBB– | 1,251,815 | ||||||||||||||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Simmons College, Series 2013J, 5.250%, 10/01/39 (WI/DD, Settling 9/05/13) | 10/23 at 100.00 | BBB+ | 958,860 | ||||||||||||||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Sterling and Francine Clark Art Institute, Series 2011A, 5.000%, 7/01/41 | 7/21 at 100.00 | AA | 1,007,020 | ||||||||||||||
| 3,500 | Massachusetts Development Finance Agency, Revenue Bonds, The Broad Institute, Series 2011A, 5.250%, 4/01/37 | 4/21 at 100.00 | AA– | 3,556,735 | ||||||||||||||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, The Sabis International Charter School, Series 2009A, 8.000%, 4/15/39 | 10/19 at 100.00 | BBB | 1,139,650 | ||||||||||||||
Massachusetts Development Finance Agency, Revenue Bonds, Williston Northampton School, Series 2005B: | ||||||||||||||||||
| 100 | 5.000%, 10/01/25 – SYNCORA GTY Insured | 10/15 at 100.00 | Baa2 | 100,566 | ||||||||||||||
| 3,090 | 5.000%, 10/01/37 – SYNCORA GTY Insured | 10/15 at 100.00 | Baa2 | 2,815,917 | ||||||||||||||
| 895 | Massachusetts Development Finance Agency, Revenue Bonds, Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37 – NPFG Insured | 9/17 at 100.00 | A+ | 892,521 | ||||||||||||||
| 2,400 | Massachusetts Development Finance Agency, Revenue Bonds, Worcester Polytechnic Institute, Series 2012, 5.000%, 9/01/50 | 9/22 at 100.00 | A+ | 2,313,864 | ||||||||||||||
| 3,020 | Massachusetts Development Finance Authority, Revenue Bonds, Curry College, Series 1999A, 5.500%, 3/01/29 – ACA Insured | 3/14 at 100.00 | BBB | 3,020,544 | ||||||||||||||
Massachusetts Development Finance Authority, Revenue Bonds, Hampshire College, Series 2004: | ||||||||||||||||||
| 1,000 | 5.625%, 10/01/24 | 10/14 at 100.00 | BBB | 1,011,330 | ||||||||||||||
| 1,000 | 5.700%, 10/01/34 | 10/14 at 100.00 | BBB | 1,005,140 | ||||||||||||||
| Nuveen Investments | 27 |
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 2,100 | Massachusetts Development Finance Authority, Revenue Bonds, WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 – AMBAC Insured | No Opt. Call | A | $ | 2,218,167 | ||||||||||||
| 6,000 | Massachusetts Developoment Finance Agency, Revenue Bonds, Boston University, Series 2013X, 5.000%, 10/01/48 | 10/23 at 100.00 | A1 | 5,847,778 | ||||||||||||||
Massachusetts Educational Financing Authority, Education Loan Revenue Bonds Issue K Series 2013: | ||||||||||||||||||
| 2,500 | 5.000%, 7/01/20 (Alternative Minimum Tax) | No Opt. Call | AA | 2,674,375 | ||||||||||||||
| 2,500 | 5.250%, 7/01/29 (Alternative Minimum Tax) | 7/22 at 100.00 | AA | 2,388,500 | ||||||||||||||
| 1,625 | Massachusetts Educational Financing Authority, Education Loan Revenue Bonds, Series 2008H, 6.350%, 1/01/30 – AGC Insured (Alternative Minimum Tax) | 1/18 at 100.00 | AA | 1,690,179 | ||||||||||||||
| 1,690 | Massachusetts Educational Financing Authority, Education Loan Revenue Bonds, Series 2009I, 6.000%, 1/01/28 | 1/20 at 100.00 | AA | 1,799,546 | ||||||||||||||
| 1,500 | Massachusetts Educational Financing Authority, Educational Loan Revenue, Series 2011J, 5.625%, 7/01/33 (Alternative Minimum Tax) | 7/21 at 100.00 | AA | 1,462,275 | ||||||||||||||
| 800 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard University, Tender Option Bond Trust 2010A, 13.591%, 12/15/34 (IF) (5) | 12/19 at 100.00 | AAA | 900,080 | ||||||||||||||
| 1,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lesley University, Series 2009A, 5.000%, 7/01/29 – AGC Insured | 7/19 at 100.00 | AA– | 1,019,030 | ||||||||||||||
| 3,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Tufts University, Series 2008O, 5.375%, 8/15/38 | 8/18 at 100.00 | Aa2 | 3,262,800 | ||||||||||||||
| 1,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, University of Massachusetts, Series 2005D, 5.250%, 10/01/24 – FGIC Insured | 10/14 at 100.00 | AA | 1,049,530 | ||||||||||||||
| 90 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31 | 7/16 at 100.00 | AA+ | 93,970 | ||||||||||||||
| 1,500 | Massachusetts Health and Educational Facilities Authority, Revenue Refunding Bonds, Suffolk University Issue, Series 2009A, 5.750%, 7/01/39 | 7/19 at 100.00 | BBB | 1,532,625 | ||||||||||||||
| 425 | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Fin Authority, Higher Ed Rev and Rev Refunding Bonds, University of the Sacred Heart Project, Series 2012, 4.375%, 10/01/31 | No Opt. Call | BBB | 286,212 | ||||||||||||||
| 7,500 | University of Massachusetts Building Authority, Senior Lien Project Revenue Bonds, Series 2013-1, 5.000%, 11/01/39 | 11/22 at 100.00 | Aa2 | 7,648,723 | ||||||||||||||
| 74,095 | Total Education and Civic Organizations | 75,417,392 | ||||||||||||||||
Health Care – 12.4% | ||||||||||||||||||
Massachusetts Development Finance Agency, Hospital Revenue Bonds, Cape Cod Healthcare Obligated Group, Series 2013: | ||||||||||||||||||
| 250 | 4.500%, 11/15/33 | 11/23 at 100.00 | A– | 222,088 | ||||||||||||||
| 2,340 | 5.250%, 11/15/41 | 11/23 at 100.00 | A– | 2,267,858 | ||||||||||||||
Massachusetts Development Finance Agency, Revenue Bonds, Berkshire Health Systems, Series 2012G: | ||||||||||||||||||
| 3,005 | 5.000%, 10/01/28 | 10/21 at 100.00 | A– | 3,023,751 | ||||||||||||||
| 500 | 5.000%, 10/01/30 | 10/21 at 100.00 | A– | 491,245 | ||||||||||||||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Southcoast Health System Obligated Group Issue, Series 2013F, 5.000%, 7/01/37 | 7/23 at 100.00 | A | 957,640 | ||||||||||||||
| 1,500 | Massachusetts Health and Educational Facilities Authority Revenue Bonds, Quincy Medical Center Issue, Series 2008A, 6.500%, 1/15/38 (4) | 1/18 at 100.00 | N/R | 5,565 | ||||||||||||||
| 2,065 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Baystate Medical Center, Series 2009I, 5.750%, 7/01/36 | 7/19 at 100.00 | A+ | 2,113,548 | ||||||||||||||
| 3,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston Medical Center, Series 2008B, 5.250%, 7/01/38 | 7/18 at 100.00 | BBB+ | 2,916,660 | ||||||||||||||
| 28 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 1,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cape Cod Healthcare Obligated Group, Series 2004D, 5.125%, 11/15/35 – AGC Insured | 11/19 at 100.00 | AA– | $ | 977,870 | ||||||||||||
| 1,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Auction Rate Series 2004D, 5.250%, 7/01/24 – NPFG Insured | 7/18 at 100.00 | A | 1,073,050 | ||||||||||||||
| 350 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Inc., Series B1 Capital Asset Program Converted June 13, 2008, 5.375%, 2/01/28 – NPFG Insured | 8/18 at 100.00 | A | 365,659 | ||||||||||||||
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Caregroup Inc., Series B2, Capital Asset Program, Converted June 9, 2009: | ||||||||||||||||||
| 500 | 5.000%, 2/01/25 – NPFG Insured | 8/18 at 100.00 | A | 514,930 | ||||||||||||||
| 100 | 5.375%, 2/01/27 – NPFG Insured | 8/18 at 100.00 | A | 105,470 | ||||||||||||||
| 1,870 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Emerson Hospital, Series 2005E, 5.000%, 8/15/35 – RAAI Insured | 8/15 at 100.00 | N/R | 1,508,922 | ||||||||||||||
| 1,500 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard Pilgrim Healthcare, Series 1998A, 4.750%, 7/01/22 – AGM Insured | 1/14 at 100.00 | AA– | 1,501,380 | ||||||||||||||
| 3,400 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Clinic Medical Center, Series 2005C, 5.000%, 8/15/21 – FGIC Insured | 8/15 at 100.00 | A+ | 3,632,900 | ||||||||||||||
| 2,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Medical Center, Series 2007D, 5.250%, 8/15/28 | 8/17 at 100.00 | A+ | 2,053,420 | ||||||||||||||
Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milford Regional Medical Center, Series 2007E: | ||||||||||||||||||
| 2,040 | 5.000%, 7/15/32 | 7/17 at 100.00 | BBB– | 1,863,948 | ||||||||||||||
| 1,000 | 5.000%, 7/15/37 | 7/17 at 100.00 | BBB– | 889,550 | ||||||||||||||
| 1,400 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Milton Hospital Project, Series 2005D, 5.250%, 7/01/30 | 7/15 at 100.00 | BB– | 1,345,442 | ||||||||||||||
| 1,426 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Northern Berkshire Community Services Inc., Series 2012A, 6.000%, 2/15/43 | 11/13 at 100.00 | D | 1,097,098 | ||||||||||||||
| 1,067 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Northern Berkshire Community Services Inc., Series 2012B, 0.000%, 2/15/43 | 1/43 at 102.19 | D | 102,487 | ||||||||||||||
| 1,689 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Northern Berkshire Community Services Inc., Series 2012C, 0.000%, 2/15/43 | 1/14 at 100.00 | D | 17 | ||||||||||||||
| 4,065 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, UMass Memorial Health Care, Series 2005D, 5.000%, 7/01/33 | 7/15 at 100.00 | BBB+ | 3,884,921 | ||||||||||||||
| 38,067 | Total Health Care | 32,915,419 | ||||||||||||||||
Housing/Multifamily – 2.9% | ||||||||||||||||||
| 1,535 | Boston Housing Authority, Massachusetts, Capital Program Revenue Bonds, Series 2008, 5.000%, 4/01/20 – AGM Insured | 4/18 at 100.00 | AA– | 1,662,006 | ||||||||||||||
| 3,140 | Massachusetts Development Finance Authority, Multifamily Housing Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 | 7/17 at 100.00 | BB | 2,956,907 | ||||||||||||||
| 500 | Massachusetts Housing Finance Agency, Housing Revenue Bonds, Series 2003S, 5.050%, 12/01/23 (Alternative Minimum Tax) | 12/13 at 100.00 | AA– | 500,130 | ||||||||||||||
| 2,575 | Somerville Housing Authority, Massachusetts, GNMA Collateralized Mortgage Revenue Bonds, Clarendon Hill Towers, Series 2002, 5.200%, 11/20/22 | 5/14 at 101.00 | N/R | 2,628,998 | ||||||||||||||
| 7,750 | Total Housing/Multifamily | 7,748,041 | ||||||||||||||||
| Nuveen Investments | 29 |
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Housing/Single Family – 0.1% | ||||||||||||||||||
| $ | 190 | Massachusetts Housing Finance Agency, Single Family Housing Revenue Bonds, Series 2008, Trust 3145, 15.272%, 06/01/16 (IF) | No Opt. Call | AA | $ | 190,082 | ||||||||||||
Industrials – 0.2% | ||||||||||||||||||
| 165 | Massachusetts Development Finance Agency, Pioneer Valley Resource Recovery Revenue Bonds, Eco/Springfield LLC, Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax) | No Opt. Call | N/R | 163,041 | ||||||||||||||
| 400 | Massachusetts Development Finance Agency, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2003, 5.450%, 6/01/14 | No Opt. Call | BBB | 409,244 | ||||||||||||||
| 565 | Total Industrials | 572,285 | ||||||||||||||||
Long-Term Care – 2.7% | ||||||||||||||||||
| 1,500 | Massachusetts Development Finance Agency, Human Service Provider Revenue Bonds, Seven Hills Foundation and Affiliates Issue, Series 2005, 5.000%, 9/01/35 – RAAI Insured | 9/15 at 100.00 | BBB– | 1,271,910 | ||||||||||||||
| 240 | Massachusetts Development Finance Agency, Revenue Bonds, Carleton-Willard Village, Series 2010, 5.625%, 12/01/30 | 12/19 at 100.00 | A– | 244,658 | ||||||||||||||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, North Hill Communities Issue, Series 2013A, 6.250%, 11/15/28 | 11/23 at 100.00 | N/R | 964,740 | ||||||||||||||
| 4,220 | Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007, 5.250%, 10/01/26 | 10/13 at 102.00 | N/R | 3,903,162 | ||||||||||||||
| 40 | Massachusetts Development Finance Authority, First Mortgage Revenue Bonds, Berkshire Retirement Community – Edgecombe Project, Series 2001A, 6.750%, 7/01/21 | 1/14 at 100.00 | BBB | 40,062 | ||||||||||||||
| 655 | Massachusetts Industrial Finance Agency, First Mortgage Revenue Bonds, Berkshire Retirement Community, Series 1994B, 4.750%, 7/01/17 | 11/13 at 100.00 | BBB | 655,655 | ||||||||||||||
| 7,655 | Total Long-Term Care | 7,080,187 | ||||||||||||||||
Tax Obligation/General – 6.4% | ||||||||||||||||||
| 500 | Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5.250%, 5/15/23 – AMBAC Insured | 5/15 at 100.00 | Aa2 | 534,995 | ||||||||||||||
| 1,045 | Boston, Massachusetts, General Obligation Bonds, Series 2013A, 4.000%, 3/01/25 | 3/23 at 100.00 | Aaa | 1,078,137 | ||||||||||||||
Fall River, Massachusetts, General Obligation Bonds, Series 2003: | ||||||||||||||||||
| 190 | 5.250%, 2/01/17 – AGM Insured | 2/14 at 100.00 | AA– | 192,658 | ||||||||||||||
| 120 | 5.000%, 2/01/21 – AGM Insured | 2/14 at 100.00 | AA– | 121,654 | ||||||||||||||
| 1,750 | Hudson, Massachusetts, General Obligation Bonds, Municipal Purpose Loan Series 2011, 5.000%, 2/15/32 | 2/20 at 100.00 | AA | 1,796,568 | ||||||||||||||
| 1,005 | Massachusetts Bay Transportation Authority, General Obligation Transportation System Bonds, Series 1991A, 7.000%, 3/01/21 | No Opt. Call | AA+ | 1,256,572 | ||||||||||||||
| 1,100 | Massachusetts State, General Obligation Bonds, Consolidated Loan, Series 2011B, 5.000%, 8/01/16 | No Opt. Call | AA+ | 1,233,320 | ||||||||||||||
| 710 | Newburyport, Massachusetts, General Obligation Bonds, Municipal Purpose Loan Series 2013, 4.000%, 1/15/30 | 1/23 at 100.00 | AA | 671,511 | ||||||||||||||
| 1,000 | North Reading, Massachusetts, General Obligation Bonds, Series 2012, 5.000%, 5/15/35 – AMBAC Insured | 5/22 at 100.00 | Aa2 | 1,028,370 | ||||||||||||||
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A: | ||||||||||||||||||
| 275 | 5.500%, 7/01/16 – AGM Insured | No Opt. Call | AA– | 288,956 | ||||||||||||||
| 1,490 | 5.500%, 7/01/17 – AGM Insured | No Opt. Call | AA– | 1,555,515 | ||||||||||||||
| 980 | 5.500%, 7/01/19 – AGM Insured | No Opt. Call | AA– | 992,877 | ||||||||||||||
| 4,300 | Puerto Rico, General Obligation and Public Improvement Bonds, Series 2002A, 5.500%, 7/01/29 – FGIC Insured | No Opt. Call | Baa3 | 3,359,891 | ||||||||||||||
| 2,000 | Quincy, Massachusetts, General Obligation Bonds, Series 2011, 5.125%, 12/01/33 | 12/20 at 100.00 | Aa2 | 2,062,020 | ||||||||||||||
| 30 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 690 | Westfield, Massachusetts, General Obligation Bonds, Series 2004, 5.000%, 8/01/19 – AMBAC Insured | 8/14 at 100.50 | A+ | $ | 721,036 | ||||||||||||
| 120 | Worcester, Massachusetts, General Obligation Bonds, Series 2001A, 5.500%, 8/15/18 – FGIC Insured | 2/14 at 100.00 | Aa3 | 120,494 | ||||||||||||||
| 17,275 | Total Tax Obligation/General | 17,014,574 | ||||||||||||||||
Tax Obligation/Limited – 14.4% | ||||||||||||||||||
| 800 | Government of Guam, Business Privilege Tax Bonds, Series 2012B–1, 5.000%, 1/01/37 | 1/22 at 100.00 | A | 772,168 | ||||||||||||||
| 680 | Martha’s Vineyard Land Bank, Massachusetts, Revenue Bonds, Series 2002, 5.000%, 5/01/32 – AMBAC Insured | 11/13 at 100.00 | A– | 683,604 | ||||||||||||||
| 395 | Martha’s Vineyard Land Bank, Massachusetts, Revenue Bonds, Series 2004, 5.000%, 5/01/26 – AMBAC Insured | 5/14 at 100.00 | A– | 405,298 | ||||||||||||||
| 2,000 | Massachusetts Bay Transportation Authority, Sales Tax Revenue Bonds, Senior Lien Series 2003A, 5.250%, 7/01/18 | No Opt. Call | AAA | 2,338,940 | ||||||||||||||
| 2,500 | Massachusetts College Building Authority, Project Revenue Bonds, Series 2008A, 5.000%, 5/01/33 – AGC Insured | 5/18 at 100.00 | AA | 2,543,850 | ||||||||||||||
Massachusetts College Building Authority, Project Revenue Refunding Bonds, Series 2003B: | ||||||||||||||||||
| 2,025 | 5.375%, 5/01/22 – SYNCORA GTY Insured | No Opt. Call | Aa2 | 2,375,123 | ||||||||||||||
| 1,125 | 5.375%, 5/01/23 – SYNCORA GTY Insured | No Opt. Call | Aa2 | 1,319,603 | ||||||||||||||
| 1,310 | Massachusetts College Building Authority, Revenue Bonds, Refunding Series 2011A, 5.000%, 5/01/24 | No Opt. Call | AA | 1,483,667 | ||||||||||||||
| 1,145 | Massachusetts College Building Authority, Revenue Bonds, Refunding Series 2012B, 5.000%, 5/01/37 | 5/22 at 100.00 | AA | 1,172,434 | ||||||||||||||
| 3,125 | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Senior Series 2013A, 5.000%, 5/15/38 | 5/23 at 100.00 | AA+ | 3,209,469 | ||||||||||||||
| 1,400 | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2007A, 5.000%, 8/15/22 – AMBAC Insured | 8/17 at 100.00 | AA+ | 1,571,780 | ||||||||||||||
| 2,000 | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2011B, 5.000%, 10/15/41 | 10/21 at 100.00 | AA+ | 2,038,680 | ||||||||||||||
| 1,130 | Massachusetts State, Special Obligation Dedicated Tax Revenue Bonds, Series 2005, 5.000%, 1/01/20 – FGIC Insured | No Opt. Call | A1 | 1,271,284 | ||||||||||||||
| 1,650 | Massachusetts, Special Obligation Refunding Notes, Federal Highway Grant Anticipation Note Program, Series 2003A, 5.000%, 12/15/13 – AGM Insured | No Opt. Call | AAA | 1,673,298 | ||||||||||||||
| 1,000 | Massachusetts, Transportation Fund Revenue Bonds, Accelerated Bridge Program, Series 2012A, 5.000%, 6/01/14 | No Opt. Call | AAA | 1,036,430 | ||||||||||||||
| 475 | Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 – CIFG Insured | 7/16 at 100.00 | BBB+ | 297,583 | ||||||||||||||
| 1,650 | Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2004J, 5.000%, 7/01/18 – NPFG Insured | 7/14 at 100.00 | A | 1,600,335 | ||||||||||||||
| 3,000 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42 | 8/19 at 100.00 | A+ | 2,673,750 | ||||||||||||||
| 5,000 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010A, 5.500%, 8/01/37 | 2/20 at 100.00 | A+ | 4,154,998 | ||||||||||||||
| 1,000 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2011A–1, 5.000%, 8/01/43 | 8/21 at 100.00 | A+ | 749,700 | ||||||||||||||
| 3,500 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 5.000%, 10/01/32 | No Opt. Call | BBB+ | 3,314,395 | ||||||||||||||
| 25 | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Senior Lien Series 2010A, 5.000%, 10/01/29 | 10/20 at 100.00 | BBB | 24,168 | ||||||||||||||
| Nuveen Investments | 31 |
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 1,650 | Virgin Islands Public Finance Authority, Matching Fund Loan Notes Revenue Bonds, Series 2012A, 5.000%, 10/01/32 | 10/22 at 100.00 | BBB | $ | 1,562,501 | ||||||||||||
| 38,585 | Total Tax Obligation/Limited | 38,273,058 | ||||||||||||||||
Transportation – 6.5% | ||||||||||||||||||
| 1,840 | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Senior Lien Series 2010B, 5.000%, 1/01/32 | 1/20 at 100.00 | A+ | 1,876,910 | ||||||||||||||
| 2,000 | Massachusetts Port Authority, Airport System Revenue Bonds, Series 2010A, 5.000%, 7/01/30 | 7/20 at 100.00 | AA | 2,115,920 | ||||||||||||||
| 865 | Massachusetts Port Authority, Revenue Bonds, Series 2003C, 5.000%, 7/01/18 – NPFG Insured | 11/13 at 100.00 | AA– | 868,304 | ||||||||||||||
| 2,750 | Massachusetts Port Authority, Revenue Bonds, Series 2012B, 5.000%, 7/01/32 | No Opt. Call | AA | 2,808,933 | ||||||||||||||
| 2,600 | Massachusetts Port Authority, Special Facilities Revenue Bonds, BOSFUEL Corporation, Series 2007, 5.000%, 7/01/32 – FGIC Insured (Alternative Minimum Tax) | 7/17 at 100.00 | A | 2,495,610 | ||||||||||||||
| 500 | Massachusetts Port Authority, Special Facilities Revenue Bonds, ConRac Project, Series 2011A, 5.125%, 7/01/41 | 7/21 at 100.00 | A | 494,480 | ||||||||||||||
| 4,055 | Massachusetts Port Authority, Special Facilities Revenue Bonds, Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 – AMBAC Insured (Alternative Minimum Tax) | 1/14 at 100.00 | N/R | 3,627,644 | ||||||||||||||
| 825 | Metropolitan Boston Transit Parking Corporation, Massachusetts, Systemwide Senior Lien Parking Revenue Bonds, Series 2011, 5.000%, 7/01/41 | 7/21 at 100.00 | A+ | 827,599 | ||||||||||||||
| 2,250 | New York State Thruway Authority, General Revenue Bonds, Series 2005G, 5.000%, 1/01/32 – AGM Insured | 7/15 at 100.00 | AA– | 2,244,488 | ||||||||||||||
| 17,685 | Total Transportation | 17,359,888 | ||||||||||||||||
U.S. Guaranteed – 12.4% (6) | ||||||||||||||||||
| 850 | Beverly, Massachusetts, General Obligation Bonds, Series 2003, 5.000%, 11/01/21 (Pre-refunded 11/01/13) – NPFG Insured | 11/13 at 100.00 | Aa2 (6) | 856,962 | ||||||||||||||
| 1,115 | Massachusetts Bay Transportation Authority, General Obligation Transportation System Bonds, Series 1991A, 7.000%, 3/01/21 (Pre-refunded 3/01/17) | 3/17 at 100.00 | N/R (6) | 1,251,710 | ||||||||||||||
| 75 | Massachusetts Bay Transportation Authority, Sales Tax Revenue Bonds, Senior Lien Series 2006C, 5.000%, 7/01/26 (Pre-refunded 7/01/18) | 7/18 at 100.00 | AAA | 87,584 | ||||||||||||||
| 1,375 | Massachusetts College Building Authority, Project Revenue Bonds, Series 2006A, 5.000%, 5/01/31 (Pre-refunded 5/01/16) – AMBAC Insured | 5/16 at 100.00 | Aa2 (6) | 1,532,575 | ||||||||||||||
| 500 | Massachusetts Development Finance Agency, Solid Waste Disposal Revenue Bonds, Dominion Energy Brayton Point Project, Refunding Series 2009, 5.750%, 12/01/42 (Pre-refunded 5/01/19) | 5/19 at 100.00 | A– (6) | 603,755 | ||||||||||||||
| 3,075 | Massachusetts Development Finance Authority, Revenue Bonds, Massachusetts College of Pharmacy and Allied Health Sciences, Series 2005D, 5.000%, 7/01/27 (Pre-refunded 7/01/15) – AGC Insured | 7/15 at 100.00 | AA– (6) | 3,325,520 | ||||||||||||||
| 295 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Series 1998A, 5.000%, 7/01/25 (Pre-refunded 7/01/21) – NPFG Insured | 7/21 at 100.00 | A (6) | 332,415 | ||||||||||||||
| 620 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31 (Pre-refunded 7/01/16) | 7/16 at 100.00 | N/R (6) | 695,194 | ||||||||||||||
Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2005A: | ||||||||||||||||||
| 3,200 | 5.000%, 8/15/20 (Pre-refunded 8/15/15) – AGM Insured | 8/15 at 100.00 | AA+ (6) | 3,484,736 | ||||||||||||||
| 5,000 | 5.000%, 8/15/23 (Pre-refunded 8/15/15) – AGM Insured | 8/15 at 100.00 | AA+ (6) | 5,444,898 | ||||||||||||||
| 1,535 | 5.000%, 8/15/25 (Pre-refunded 8/15/15) – AGM Insured | 8/15 at 100.00 | AA+ (6) | 1,671,584 | ||||||||||||||
| 1,000 | 5.000%, 8/15/26 (Pre-refunded 8/15/15) – AGM Insured | 8/15 at 100.00 | AA+ (6) | 1,088,980 | ||||||||||||||
| 32 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed (6) (continued) | ||||||||||||||||||
| $ | 1,000 | Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Series 2004-10, 5.000%, 8/01/34 (Pre-refunded 8/01/14) | 8/14 at 100.00 | AAA | $ | 1,043,970 | ||||||||||||
| 1,500 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2006A, 5.000%, 8/01/31 (Pre-refunded 8/01/16) – AMBAC Insured | 8/16 at 100.00 | AA+ (6) | 1,685,745 | ||||||||||||||
Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2005A: | ||||||||||||||||||
| 1,500 | 5.000%, 3/01/17 (Pre-refunded 3/01/15) – AGM Insured | 3/15 at 100.00 | AA+ (6) | 1,603,710 | ||||||||||||||
| 1,900 | 5.000%, 3/01/23 (Pre-refunded 3/01/15) – AGM Insured | 3/15 at 100.00 | Aaa | 2,031,366 | ||||||||||||||
| 2,545 | 5.000%, 3/01/24 (Pre-refunded 3/01/15) – AGM Insured | 3/15 at 100.00 | Aaa | 2,720,961 | ||||||||||||||
| 1,390 | Massachusetts, General Obligation Bonds, Consolidated Loan, Series 2005C, 5.000%, 9/01/21 (Pre-refunded 9/01/15) | 9/15 at 100.00 | AA+ (6) | 1,516,282 | ||||||||||||||
| 1,350 | Norwell, Massachusetts, General Obligation Bonds, Series 2005, 5.000%, 2/15/25 (Pre-refunded 2/15/15) – AMBAC Insured | 2/15 at 101.00 | AAA | 1,454,099 | ||||||||||||||
| 350 | Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2004J, 5.000%, 7/01/18 (Pre-refunded 7/01/14) | 7/14 at 100.00 | A (6) | 364,011 | ||||||||||||||
| 30,175 | Total U.S. Guaranteed | 32,796,057 | ||||||||||||||||
Utilities – 2.4% | ||||||||||||||||||
| 1,435 | Guam Power Authority, Revenue Bonds, Series 2010A, 5.000%, 10/01/37 – AGM Insured | 10/20 at 100.00 | AA– | 1,403,487 | ||||||||||||||
| 1,265 | Massachusetts Clean Energy Cooperative Corporation, Revenue Bonds, Massachusetts Municipal Lighting Plant Cooperative, Series 2013, 5.000%, 7/01/32 | 7/23 at 100.00 | A1 | 1,301,571 | ||||||||||||||
| 1,560 | Massachusetts Development Finance Agency, Resource Recovery Revenue Refunding Bonds, Covanta Energy Project, Series 2012B, 4.875%, 11/01/42 | 11/17 at 100.00 | BB+ | 1,223,477 | ||||||||||||||
| 2,900 | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2004PP, 5.000%, 7/01/22 – FGIC Insured | 7/14 at 100.00 | A | 2,501,598 | ||||||||||||||
| 7,160 | Total Utilities | 6,430,133 | ||||||||||||||||
Water and Sewer – 8.2% | ||||||||||||||||||
| 1,700 | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.375%, 11/01/39 – AGM Insured | 11/19 at 100.00 | AA– | 1,723,460 | ||||||||||||||
| 1,000 | Boston Water and Sewerage Commission, Massachusetts, General Revenue Bonds, Senior Lien Refunding Series 2010A, 5.000%, 11/01/30 | 11/19 at 100.00 | AA+ | 1,069,930 | ||||||||||||||
| 60 | Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Series 2003-9, 5.000%, 8/01/22 | 11/13 at 100.00 | AAA | 60,231 | ||||||||||||||
| 380 | Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Series 2004-10, 5.000%, 8/01/26 | 8/14 at 100.00 | AAA | 394,847 | ||||||||||||||
| 2,500 | Massachusetts Water Resources Authority, General Revenue Bonds, Refunding Series 2013A, 5.000%, 8/01/22 | No Opt. Call | AA+ | 2,888,375 | ||||||||||||||
| 1,000 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2002J, 5.250%, 8/01/19 – AGM Insured | No Opt. Call | AA+ | 1,176,400 | ||||||||||||||
Massachusetts Water Resources Authority, General Revenue Bonds, Series 2005A: | ||||||||||||||||||
| 2,065 | 5.250%, 8/01/15 – NPFG Insured | No Opt. Call | AA+ | 2,254,546 | ||||||||||||||
| 1,650 | 5.000%, 8/01/27 – NPFG Insured | 8/17 at 100.00 | AA+ | 1,777,281 | ||||||||||||||
| 750 | 5.000%, 8/01/28 – NPFG Insured | 8/17 at 100.00 | AA+ | 800,505 | ||||||||||||||
| 2,080 | 5.000%, 8/01/29 – NPFG Insured | 8/17 at 100.00 | AA+ | 2,199,621 | ||||||||||||||
| 2,500 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2005B, 5.000%, 8/01/35 – NPFG Insured | 8/17 at 100.00 | AA+ | 2,601,100 | ||||||||||||||
| 2,000 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2006A, 4.000%, 8/01/46 | 8/16 at 100.00 | AA+ | 1,761,800 | ||||||||||||||
| 760 | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/38 | 7/18 at 100.00 | BBB– | 572,782 | ||||||||||||||
| Nuveen Investments | 33 |
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Water and Sewer (continued) | ||||||||||||||||||
| $ | 1,500 | Springfield Water and Sewerage Commission, Massachusetts, General Revenue Bonds, Refunding Series 2010B, 5.000%, 11/15/30 – AGC Insured | 11/20 at 100.00 | AA– | $ | 1,558,740 | ||||||||||||
| 1,000 | Springfield Water and Sewerage Commission, Massachusetts, General Revenue Bonds, Series 2003A, 5.000%, 7/01/23 – NPFG Insured | 7/14 at 100.00 | A+ | 1,035,050 | ||||||||||||||
| 20,945 | Total Water and Sewer | 21,874,668 | ||||||||||||||||
| $ | 263,297 | Total Investments (cost $265,348,472) – 98.1% | 260,432,167 | |||||||||||||||
Other Assets Less Liabilities – 1.9% | 4,952,057 | |||||||||||||||||
Net Assets – 100% | $ | 265,384,224 | ||||||||||||||||
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |||
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |||
| (3) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |||
| (4) | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. | |||
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |||
| (6) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |||
| WI/DD | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. | |||
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
| 34 | Nuveen Investments |
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Consumer Discretionary – 0.2% | ||||||||||||||||||
Middlesex County Improvement Authority, New Jersey, Senior Revenue Bonds, Heldrich Center Hotel/Conference Center Project, Series 2005A: | ||||||||||||||||||
| $ | 280 | 5.000%, 1/01/32 | 1/15 at 100.00 | Caa1 | $ | 185,058 | ||||||||||||
| 240 | 5.125%, 1/01/37 | 1/15 at 100.00 | Caa1 | 158,090 | ||||||||||||||
| 520 | Total Consumer Discretionary | 343,148 | ||||||||||||||||
Consumer Staples – 3.1% | ||||||||||||||||||
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A: | ||||||||||||||||||
| 3,000 | 4.500%, 6/01/23 | 6/17 at 100.00 | B1 | 2,694,330 | ||||||||||||||
| 7,280 | 4.750%, 6/01/34 | 6/17 at 100.00 | B2 | 4,985,925 | ||||||||||||||
| 1,740 | 5.000%, 6/01/41 | 6/17 at 100.00 | B2 | 1,182,626 | ||||||||||||||
| 12,020 | Total Consumer Staples | 8,862,881 | ||||||||||||||||
Education and Civic Organizations – 11.3% | ||||||||||||||||||
| 375 | New Jersey Economic Development Authority, Revenue Bonds, The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 – AMBAC Insured | 6/15 at 100.00 | N/R | 382,838 | ||||||||||||||
| 2,500 | New Jersey Educational Facilities Authority, Revenue Bonds, Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32 – ACA Insured | 11/13 at 100.00 | BBB | 2,499,800 | ||||||||||||||
| 1,000 | New Jersey Educational Facilities Authority, Revenue Bonds, Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 | 7/14 at 100.00 | BBB | 1,009,930 | ||||||||||||||
| 1,840 | New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Refunding Series 2009A, 5.500%, 9/01/36 – AGC Insured | 9/19 at 100.00 | AA– | 1,917,188 | ||||||||||||||
| 1,495 | New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Series 2007D, 5.000%, 7/01/32 – FGIC Insured | 7/17 at 100.00 | A | 1,505,525 | ||||||||||||||
| 45 | New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2004L, 5.125%, 7/01/21 – NPFG Insured | 7/14 at 100.00 | AA– | 46,359 | ||||||||||||||
| 1,400 | New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2005F, 5.000%, 7/01/16 – FGIC Insured | 7/15 at 100.00 | A1 | 1,498,826 | ||||||||||||||
| 1,035 | New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2006A, 5.000%, 7/01/36 – AMBAC Insured | 7/16 at 100.00 | AA– | 1,035,745 | ||||||||||||||
| 465 | New Jersey Educational Facilities Authority, Revenue Bonds, Princeton University, Series 2005A, 5.000%, 7/01/24 | 7/15 at 100.00 | AAA | 500,926 | ||||||||||||||
New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo College, Series 2012B: | ||||||||||||||||||
| 525 | 5.000%, 7/01/37 | 7/22 at 100.00 | A | 526,082 | ||||||||||||||
| 100 | 5.000%, 7/01/42 | 7/22 at 100.00 | A | 99,842 | ||||||||||||||
| 2,000 | New Jersey Educational Facilities Authority, Revenue Bonds, Richard Stockton College of New Jersey, Refunding Series 2008A, 5.375%, 7/01/38 | 7/18 at 100.00 | A+ | 2,062,280 | ||||||||||||||
New Jersey Educational Facilities Authority, Revenue Bonds, Rider University, Series 2012A: | ||||||||||||||||||
| 350 | 5.000%, 7/01/32 | 7/21 at 100.00 | BBB+ | 333,949 | ||||||||||||||
| 230 | 5.000%, 7/01/37 | 7/21 at 100.00 | BBB+ | 213,371 | ||||||||||||||
| 500 | New Jersey Educational Facilities Authority, Revenue Bonds, Rowan College, Series 2007B, 4.250%, 7/01/34 – FGIC Insured | 7/17 at 100.00 | A+ | 453,435 | ||||||||||||||
| 740 | New Jersey Educational Facilities Authority, Revenue Bonds, Seton Hall University, Series 2013D, 5.000%, 7/01/38 | 7/23 at 100.00 | A | 747,977 | ||||||||||||||
| 4,030 | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2008A, 6.125%, 6/01/30 – AGC Insured (Alternative Minimum Tax) | 6/18 at 100.00 | AA– | 4,167,665 | ||||||||||||||
| 585 | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2010-1A, 5.000%, 12/01/25 | 12/19 at 100.00 | AA | 600,052 | ||||||||||||||
| 510 | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2010-2, 5.000%, 12/01/30 | 12/20 at 100.00 | Aa3 | 512,423 | ||||||||||||||
| Nuveen Investments | 35 |
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 2,125 | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2012-1A, 4.375%, 12/01/26 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | $ | 2,021,343 | ||||||||||||
New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2013-1A: | ||||||||||||||||||
| 1,600 | 3.625%, 12/01/25 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 1,394,096 | ||||||||||||||
| 1,000 | 4.000%, 12/01/28 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 875,860 | ||||||||||||||
| 1,585 | 4.000%, 12/01/31 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 1,309,987 | ||||||||||||||
| 1,670 | 4.125%, 12/01/35 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 1,335,349 | ||||||||||||||
| 1,425 | New Jersey Institute of Technology, New Jersey, General Obligation Bonds, Series 2012A, 5.000%, 7/01/42 | 7/22 at 100.00 | A+ | 1,425,912 | ||||||||||||||
| 550 | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System Project, Refunding Series 2012, 5.125%, 4/01/32 | 4/22 at 100.00 | BBB– | 420,123 | ||||||||||||||
| 150 | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Inter-American University of Puerto Rico Project, Refunding Series 2012, 5.000%, 10/01/31 | 10/22 at 100.00 | A– | 124,865 | ||||||||||||||
| 1,500 | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.500%, 12/01/31 | 12/13 at 100.00 | BBB– | 1,207,950 | ||||||||||||||
| 2,320 | Rutgers State University, New Jersey, Revenue Bonds, Refunding Series 2013L, 5.000%, 5/01/43 | 5/23 at 100.00 | AA– | 2,387,976 | ||||||||||||||
| 33,650 | Total Education and Civic Organizations | 32,617,674 | ||||||||||||||||
Financials – 0.6% | ||||||||||||||||||
| 750 | New Jersey Economic Development Authority, Industrial Development Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series 1996, 7.000%, 10/01/14 | 10/13 at 100.00 | Baa3 | 753,750 | ||||||||||||||
| 1,000 | New Jersey Economic Development Authority, Revenue Refunding Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 | No Opt. Call | Ba2 | 1,031,220 | ||||||||||||||
| 1,750 | Total Financials | 1,784,970 | ||||||||||||||||
Health Care – 15.7% | ||||||||||||||||||
| 800 | Camden County Improvement Authority, New Jersey, Health Care Redevelopment Revenue Bonds, Cooper Health System Obligated Group Issue, Series 2013A, 5.750%, 2/15/42 | 2/23 at 100.00 | BBB | 758,760 | ||||||||||||||
| 2,530 | Camden County Improvement Authority, New Jersey, Healthcare Revenue Bonds, Cooper Health System, Series 2005B, 5.250%, 2/15/27 | 2/15 at 100.00 | BBB | 2,520,588 | ||||||||||||||
| 400 | Camden County Improvement Authority, New Jersey, Revenue Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34 | 8/14 at 100.00 | BBB | 400,192 | ||||||||||||||
| 2,955 | Camden County Improvement Authority, New Jersey, Revenue Bonds, Cooper Health System, Series 2005A, 5.000%, 2/15/25 | 2/15 at 100.00 | BBB | 2,950,479 | ||||||||||||||
| 4,425 | New Jersey Health Care Facilities Finance Authority, Revenue Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 | 7/18 at 100.00 | A+ | 4,488,233 | ||||||||||||||
New Jersey Health Care Facilities Financing Authority, New Jersey, Revenue Bonds, Saint Peters University Hospital, Refunding Series 2011: | ||||||||||||||||||
| 800 | 6.000%, 7/01/26 | 7/21 at 100.00 | BB+ | 822,552 | ||||||||||||||
| 75 | 6.250%, 7/01/35 | 7/21 at 100.00 | BB+ | 76,034 | ||||||||||||||
| 360 | New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, Barnabas Health, Series 2012A, 5.000%, 7/01/24 | No Opt. Call | BBB+ | 375,116 | ||||||||||||||
New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, Palisades Medical Center Obligated Group Issue, Series 2013: | ||||||||||||||||||
| 800 | 5.250%, 7/01/31 | 7/23 at 100.00 | BBB | 745,128 | ||||||||||||||
| 440 | 5.500%, 7/01/43 | 7/23 at 100.00 | BBB | 402,481 | ||||||||||||||
| 36 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 1,160 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%, 7/01/37 | 7/17 at 100.00 | A+ | $ | 1,169,779 | ||||||||||||
| 1,500 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 – AGC Insured | 7/17 at 100.00 | A3 | 1,502,235 | ||||||||||||||
| 140 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Children’s Specialized Hospital, Series 2005A, 5.500%, 7/01/36 | 7/15 at 100.00 | BBB | 140,291 | ||||||||||||||
| 2,000 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/26 | 7/16 at 100.00 | A | 2,014,320 | ||||||||||||||
| 1,630 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35 | 7/16 at 100.00 | A | 1,581,948 | ||||||||||||||
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Kennedy Health System Obligated Group Issue, Refunding Series 2012: | ||||||||||||||||||
| 1,125 | 5.000%, 7/01/31 | 7/22 at 100.00 | A3 | 1,126,114 | ||||||||||||||
| 1,320 | 5.000%, 7/01/42 | 7/22 at 100.00 | A3 | 1,229,501 | ||||||||||||||
| 550 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Meridian Health System Obligated Group, Refunding Series 2013A, 5.000%, 7/01/32 | 7/23 at 100.00 | A | 545,655 | ||||||||||||||
| 5,350 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Meridian Health, Series 2007-I, 5.000%, 7/01/38 – AGC Insured | 7/18 at 100.00 | AA– | 5,345,880 | ||||||||||||||
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, RWJ Health Care Corporation, Series 2005B: | ||||||||||||||||||
| 2,500 | 5.000%, 7/01/25 – RAAI Insured | 7/15 at 100.00 | N/R | 2,507,875 | ||||||||||||||
| 900 | 5.000%, 7/01/35 – RAAI Insured | 7/15 at 100.00 | N/R | 835,047 | ||||||||||||||
| 16,225 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Barnabas Health Care System, Refunding Series 2006B, 0.000%, 7/01/35 | 1/17 at 39.39 | BBB+ | 4,471,772 | ||||||||||||||
| 360 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Barnabas Health Care System, Refunding Series 2011A, 5.625%, 7/01/37 | 7/21 at 100.00 | BBB+ | 360,421 | ||||||||||||||
| 750 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%, 7/01/29 | 1/17 at 100.00 | BBB+ | 731,130 | ||||||||||||||
| 3,050 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Joseph’s Healthcare System Obligated Group Issue, Series 2008, 6.625%, 7/01/38 | 7/18 at 100.00 | BBB– | 3,004,006 | ||||||||||||||
| 560 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Luke’s Warren Hospital Obligated Group, Series 2013, 4.000%, 8/15/37 | 8/23 at 100.00 | A3 | 447,933 | ||||||||||||||
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center, Series 2003: | ||||||||||||||||||
| 1,180 | 5.500%, 7/01/23 | 11/13 at 100.00 | Ba2 | 1,180,142 | ||||||||||||||
| 1,785 | 5.500%, 7/01/33 | 11/13 at 100.00 | Ba2 | 1,746,908 | ||||||||||||||
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, South Jersey Hospital System, Refunding Series 2006: | ||||||||||||||||||
| 855 | 5.000%, 7/01/25 | 7/16 at 100.00 | A2 | 869,056 | ||||||||||||||
| 100 | 5.000%, 7/01/26 | 7/16 at 100.00 | A2 | 101,192 | ||||||||||||||
| 810 | 5.000%, 7/01/36 | 7/16 at 100.00 | A2 | 784,752 | ||||||||||||||
| 57,435 | Total Health Care | 45,235,520 | ||||||||||||||||
Housing/Multifamily – 4.0% | ||||||||||||||||||
| 960 | Essex County Improvement Authority, New Jersey, FNMA Enhanced Multifamily Housing Revenue Bonds, Ballantyne House Project, Series 2002, 4.750%, 11/01/22 (Alternative Minimum Tax) | 11/13 at 100.00 | Aa1 | 977,261 | ||||||||||||||
New Jersey Economic Development Authority, Student Hosuing Revenue Bonds, Provident Group-Montclair Properties LLC, Montclair State University Student Housing Project, Series 2010A: | ||||||||||||||||||
| 2,055 | 5.750%, 6/01/31 | 6/20 at 100.00 | Baa3 | 2,141,043 | ||||||||||||||
| 1,100 | 5.875%, 6/01/42 | 6/20 at 100.00 | Baa3 | 1,136,982 | ||||||||||||||
| Nuveen Investments | 37 |
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Housing/Multifamily (continued) | ||||||||||||||||||
| $ | 3,000 | New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, Series 2009A, 4.950%, 5/01/41 | 11/19 at 100.00 | A+ | $ | 2,774,640 | ||||||||||||
New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, Series 2013-2: | ||||||||||||||||||
| 2,250 | 4.350%, 11/01/33 (Alternative Minimum Tax) | 11/22 at 100.00 | AA– | 1,999,755 | ||||||||||||||
| 1,125 | 4.600%, 11/01/38 (Alternative Minimum Tax) | 11/22 at 100.00 | AA– | 955,260 | ||||||||||||||
| 1,125 | 4.750%, 11/01/46 (Alternative Minimum Tax) | 11/22 at 100.00 | AA– | 939,949 | ||||||||||||||
| 590 | Newark Housing Authority, New Jersey, GNMA Collateralized Housing Revenue Bonds, Fairview Apartments Project, Series 2000A, 6.300%, 10/20/19 (Alternative Minimum Tax) | 10/13 at 100.00 | Aa2 | 591,333 | ||||||||||||||
| 12,205 | Total Housing/Multifamily | 11,516,223 | ||||||||||||||||
Housing/Single Family – 1.2% | ||||||||||||||||||
| 1,730 | New Jersey Housing and Mortgage Finance Agency, Single Family Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37 (Alternative Minimum Tax) | 4/17 at 100.00 | AA | 1,632,290 | ||||||||||||||
| 1,755 | New Jersey Housing and Mortgage Finance Agency, Single Family Housing Revenue Bonds, Series 2008AA, 6.375%, 10/01/28 | 10/18 at 100.00 | AA | 1,842,276 | ||||||||||||||
| 3,485 | Total Housing/Single Family | 3,474,566 | ||||||||||||||||
Industrials – 0.6% | ||||||||||||||||||
| 1,660 | Gloucester County Improvement Authority, New Jersey, Solid Waste Resource Recovery Revenue Refunding Bonds, Waste Management Inc. Project, Series 1999A, 2.125%, 12/01/29 (Mandatory put 12/01/17) | No Opt. Call | BBB | 1,646,936 | ||||||||||||||
Long-Term Care – 2.3% | ||||||||||||||||||
| 685 | Burlington County Bridge Commission, New Jersey, Economic Development Revenue Bonds, The Evergreens Project, Series 2007, 5.625%, 1/01/38 | 1/18 at 100.00 | N/R | 595,655 | ||||||||||||||
| 730 | New Jersey Economic Development Authority, First Mortgage Fixed Rate Revenue Bonds, Cadbury Corporation, Series 1998A, 5.500%, 7/01/18 – ACA Insured | 1/14 at 100.00 | N/R | 729,993 | ||||||||||||||
| 1,975 | New Jersey Economic Development Authority, First Mortgage Revenue Bonds, Winchester Gardens at Wards Homestead, Series 2004A, 5.750%, 11/01/24 | 11/14 at 100.00 | BBB– | 1,983,532 | ||||||||||||||
| 600 | New Jersey Economic Development Authority, Revenue Bonds, Masonic Charity Foundation of New Jersey, Series 2001, 5.875%, 6/01/18 | 12/13 at 100.00 | A– | 601,350 | ||||||||||||||
| 140 | New Jersey Economic Development Authority, Revenue Bonds, Masonic Charity Foundation of New Jersey, Series 2002, 5.250%, 6/01/32 | 6/15 at 100.00 | A– | 140,069 | ||||||||||||||
| 1,325 | New Jersey Economic Development Authority, Revenue Bonds, United Methodist Homes of New Jersey Obligated Group Issue, Refunding Series 2013, 5.000%, 7/01/34 | 7/23 at 100.00 | BBB– | 1,205,856 | ||||||||||||||
| 1,500 | New Jersey Economic Development Authority, Revenue Bonds, United Methodist Homes of New Jersey Obligated Group, Series 1998, 5.125%, 7/01/25 | 1/14 at 100.00 | BBB– | 1,417,110 | ||||||||||||||
| 6,955 | Total Long-Term Care | 6,673,565 | ||||||||||||||||
Tax Obligation/General – 8.0% | ||||||||||||||||||
| 695 | Haddon Heights School District, Camden County, New Jersey, General Obligation Bonds, Refunding Series 2012, 3.250%, 1/01/30 | 1/23 at 100.00 | AA– | 567,752 | ||||||||||||||
Jefferson Township School District, Morris County, New Jersey, General Obligation Bonds, Refunding Series 2012: | ||||||||||||||||||
| 755 | 4.000%, 9/15/26 | 9/22 at 100.00 | AA– | 760,625 | ||||||||||||||
| 1,270 | 4.000%, 9/15/27 | 9/22 at 100.00 | AA– | 1,261,885 | ||||||||||||||
| 525 | Middletown Township Board of Education, Monmouth County, New Jersey, Refunding Series 2010, 5.000%, 8/01/27 | 8/20 at 100.00 | AA | 564,601 | ||||||||||||||
| 620 | Monmouth County Improvement Authority, New Jersey, Governmental Loan Revenue Bonds, Series 2006, 5.000%, 12/01/15 – AMBAC Insured | No Opt. Call | N/R | 661,645 | ||||||||||||||
| 38 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 1,500 | Monroe Township Board of Education, Middlesex County, New Jersey, General Obligation Bonds, Refunding Series 2012, 4.000%, 8/01/24 | 8/22 at 100.00 | AA– | $ | 1,540,485 | ||||||||||||
| 2,750 | Newark Housing Authority, New Jersey, City-Secured Police Facility Revenue Bonds, South Ward Police Facility, Series 2009A, 6.750%, 12/01/38 – AGC Insured | 12/19 at 100.00 | A3 | 3,090,890 | ||||||||||||||
Readington Township, New Jersey, General Obligation Bonds, General Improvement Series 2011: | ||||||||||||||||||
| 875 | 5.125%, 1/15/28 | 1/21 at 100.00 | AA | 908,399 | ||||||||||||||
| 875 | 5.250%, 1/15/30 | 1/21 at 100.00 | AA | 905,756 | ||||||||||||||
South Brunswick Township Board of Education, Middlesex County, New Jersey, General Obligation Bonds, Refunding Series 2012: | ||||||||||||||||||
| 500 | 4.000%, 12/01/22 | 6/22 at 100.00 | AA | 533,910 | ||||||||||||||
| 450 | 4.000%, 12/01/23 | 6/22 at 100.00 | AA | 474,750 | ||||||||||||||
| 305 | 4.000%, 12/01/24 | 6/22 at 100.00 | AA | 317,505 | ||||||||||||||
| 3,000 | Union County Improvement Authority, New Jersey, Lease Revenue Refunding Bonds, City of Plainfield – Park Madison Redevelopment Project, Series 2013A, 5.000%, 3/01/34 | No Opt. Call | AA+ | 2,988,570 | ||||||||||||||
| 3,685 | Union County Utilities Authority, New Jersey, Resource Recovery Facility Lease Revenue Refunding Bonds, Covantan Union Inc. Lessee, Series 2011B, 5.250%, 12/01/31 (Alternative Minimum Tax) | 12/21 at 100.00 | AA+ | 3,694,470 | ||||||||||||||
| 2,515 | Union County Utilities Authority, New Jersey, Solid Waste System County Deficiency Revenue Bonds, Series 2011, 5.000%, 6/15/41 | 6/21 at 100.00 | AA+ | 2,557,001 | ||||||||||||||
| 2,110 | Washington Township Board of Education, Mercer County, New Jersey, General Obligation Bonds, Series 2005, 5.000%, 1/01/21 – AGM Insured | 1/16 at 100.00 | Aa3 | 2,296,165 | ||||||||||||||
| 22,430 | Total Tax Obligation/General | 23,124,409 | ||||||||||||||||
Tax Obligation/Limited – 20.4% | ||||||||||||||||||
| 650 | Bergen County Improvement Authority, New Jersey, Guaranteed Lease Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 | No Opt. Call | Aaa | 745,147 | ||||||||||||||
| 825 | Essex County Improvement Authority, New Jersey, Project Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 – AMBAC Insured | No Opt. Call | Aa2 | 956,876 | ||||||||||||||
| 2,500 | Garden State Preservation Trust, New Jersey, Open Space and Farmland Preservation Bonds, Series 2005A, 5.750%, 11/01/28 – AGM Insured | No Opt. Call | AAA | 2,923,025 | ||||||||||||||
| 1,395 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.250%, 1/01/36 | 1/22 at 100.00 | A | 1,399,562 | ||||||||||||||
| 2,255 | New Jersey Building Authority, State Building Revenue Bonds, Series 2007A, 5.000%, 6/15/27 | 6/16 at 100.00 | A+ | 2,369,261 | ||||||||||||||
New Jersey Economic Development Authority, Cigarette Tax Revenue Refunding Bonds, Series 2012: | ||||||||||||||||||
| 1,310 | 5.000%, 6/15/19 | No Opt. Call | BBB+ | 1,437,673 | ||||||||||||||
| 700 | 5.000%, 6/15/21 | No Opt. Call | BBB+ | 749,777 | ||||||||||||||
| 2,850 | 5.000%, 6/15/25 | 6/22 at 100.00 | BBB+ | 2,879,013 | ||||||||||||||
| 1,000 | New Jersey Economic Development Authority, Lease Revenue Bonds, Liberty State Park Project, Series 2005C, 5.000%, 3/01/27 – AGM Insured | 3/15 at 100.00 | AA– | 1,040,140 | ||||||||||||||
New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A: | ||||||||||||||||||
| 2,600 | 5.250%, 7/01/15 – NPFG Insured | 7/14 at 100.00 | A | 2,701,894 | ||||||||||||||
| 1,000 | 5.000%, 7/01/29 – NPFG Insured | 7/14 at 100.00 | A | 1,008,870 | ||||||||||||||
New Jersey Economic Development Authority, Revenue Bonds, Newark Downtown District Management Corporation Project, Series 2007: | ||||||||||||||||||
| 85 | 5.125%, 6/15/27 | 6/17 at 100.00 | Baa3 | 85,415 | ||||||||||||||
| 145 | 5.125%, 6/15/37 | 6/17 at 100.00 | Baa3 | 139,683 | ||||||||||||||
| 4,000 | New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Refunding Series 2013NN, 5.000%, 3/01/22 | No Opt. Call | A+ | 4,464,160 | ||||||||||||||
| Nuveen Investments | 39 |
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 830 | New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Series 2007U, 5.000%, 9/01/37 – AMBAC Insured | 9/17 at 100.00 | A+ | $ | 832,681 | ||||||||||||
New Jersey Health Care Facilities Financing Authority, State Contract Bonds, Hospital Asset Transformation Program, Series 2008A: | ||||||||||||||||||
| 3,245 | 5.000%, 10/01/28 | 10/18 at 100.00 | A+ | 3,375,157 | ||||||||||||||
| 1,950 | 5.250%, 10/01/38 | 10/18 at 100.00 | A+ | 1,956,806 | ||||||||||||||
| 2,000 | New Jersey Health Care Facilities Financing Authority, State Contract Bonds, Hospital Asset Transformation Program, Series 2009A, 5.750%, 10/01/31 | 10/19 at 100.00 | A+ | 2,203,220 | ||||||||||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: | ||||||||||||||||||
| 695 | 5.000%, 6/15/17 – FGIC Insured | 6/16 at 100.00 | A1 | 769,115 | ||||||||||||||
| 1,000 | 5.000%, 6/15/18 – FGIC Insured | 6/16 at 100.00 | A1 | 1,102,860 | ||||||||||||||
| 14,635 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital Appreciation Series 2010A, 0.000%, 12/15/30 | No Opt. Call | A+ | 5,631,547 | ||||||||||||||
| 1,900 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding Series 2006A, 5.500%, 12/15/22 | No Opt. Call | A+ | 2,196,989 | ||||||||||||||
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: | ||||||||||||||||||
| 4,000 | 0.000%, 12/15/32 – AGM Insured | No Opt. Call | AA– | 1,330,000 | ||||||||||||||
| 4,000 | 0.000%, 12/15/33 – AGM Insured | No Opt. Call | AA– | 1,246,320 | ||||||||||||||
| 5,450 | 0.000%, 12/15/34 – AGM Insured | No Opt. Call | AA– | 1,567,202 | ||||||||||||||
| 500 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2007A, 5.000%, 12/15/26 – AMBAC Insured | 12/17 at 100.00 | A+ | 531,610 | ||||||||||||||
| 5,505 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2009A, 0.000%, 12/15/39 | No Opt. Call | A+ | 1,142,838 | ||||||||||||||
| 2,750 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2010D, 5.000%, 12/15/24 | No Opt. Call | A+ | 3,017,245 | ||||||||||||||
| 2,500 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2012AA, 5.000%, 6/15/38 | No Opt. Call | A+ | 2,461,400 | ||||||||||||||
Passaic County Improvement Authority, New Jersey, Lease Revenue Bonds, Preakness Healthcare Center Expansion Project, Series 2012: | ||||||||||||||||||
| 1,465 | 5.000%, 5/01/21 | No Opt. Call | Aa3 | 1,621,682 | ||||||||||||||
| 2,000 | 3.500%, 5/01/35 | 5/22 at 100.00 | Aa3 | 1,545,780 | ||||||||||||||
| 485 | Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 – CIFG Insured | 7/16 at 100.00 | BBB+ | 303,848 | ||||||||||||||
| 1,670 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A, 6.000%, 8/01/42 | 8/19 at 100.00 | A+ | 1,488,388 | ||||||||||||||
| 1,495 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010A, 5.500%, 8/01/42 | 2/20 at 100.00 | A+ | 1,218,350 | ||||||||||||||
| 450 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 5.250%, 8/01/57 | 8/17 at 100.00 | AA– | 377,429 | ||||||||||||||
| 79,840 | Total Tax Obligation/Limited | 58,820,963 | ||||||||||||||||
Transportation – 15.6% | ||||||||||||||||||
Delaware River and Bay Authority, Delaware and New Jersey, Revenue Bonds, Series 2005: | ||||||||||||||||||
| 1,335 | 5.000%, 1/01/26 – NPFG Insured | 1/15 at 100.00 | A1 | 1,355,012 | ||||||||||||||
| 500 | 5.000%, 1/01/27 – NPFG Insured | 1/15 at 100.00 | A1 | 516,675 | ||||||||||||||
| 1,100 | Delaware River and Bay Authority, Delaware and New Jersey, Revenue Bonds, Series 2012A, 5.000%, 1/01/42 | 1/23 at 100.00 | A1 | 1,101,551 | ||||||||||||||
Delaware River Joint Toll Bridge Commission, Pennsylvania, Revenue Bonds, Refunding Series 2012A: | ||||||||||||||||||
| 500 | 5.000%, 7/01/26 | 7/22 at 100.00 | A2 | 533,055 | ||||||||||||||
| 140 | 4.000%, 7/01/27 | 7/22 at 100.00 | A2 | 135,933 | ||||||||||||||
| 500 | 3.000%, 7/01/28 | 7/22 at 100.00 | A2 | 414,985 | ||||||||||||||
| 40 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Transportation (continued) | ||||||||||||||||||
Delaware River Port Authority, Pennsylvania and New Jersey, Revenue Refunding Bonds, Port District Project, Series 2012: | ||||||||||||||||||
| $ | 1,095 | 5.000%, 1/01/26 | No Opt. Call | BBB– | $ | 1,092,930 | ||||||||||||
| 1,000 | 5.000%, 1/01/27 | No Opt. Call | BBB– | 980,860 | ||||||||||||||
| 570 | New Brunswick Parking Authority, Middlesex County, New Jersey, Guaranteed Parking Revenue Bonds, Refunding Series 2012, 5.000%, 9/01/30 | 9/22 at 100.00 | A+ | 582,432 | ||||||||||||||
New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 1999: | ||||||||||||||||||
| 400 | 5.125%, 9/15/23 (Alternative Minimum Tax) | 9/13 at 100.00 | B | 368,200 | ||||||||||||||
| 800 | 5.250%, 9/15/29 (Alternative Minimum Tax) | 9/22 at 101.00 | B | 715,936 | ||||||||||||||
| 1,295 | New Jersey Transit Corporation, Certificates of Participation, Federal Transit Administration Grants, Series 2005A, 5.000%, 9/15/18 – FGIC Insured | 9/15 at 100.00 | A | 1,395,052 | ||||||||||||||
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: | ||||||||||||||||||
| 70 | 6.500%, 1/01/16 | No Opt. Call | A3 | 79,146 | ||||||||||||||
| 340 | 6.500%, 1/01/16 – NPFG Insured | No Opt. Call | A+ | 384,421 | ||||||||||||||
| 1,300 | New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.250%, 1/01/29 – AGM Insured | No Opt. Call | AA– | 1,382,563 | ||||||||||||||
| 3,500 | New Jersey Turnpike Authority, Revenue Bonds, Series 2009I, 5.000%, 1/01/35 | 1/20 at 100.00 | A+ | 3,507,280 | ||||||||||||||
| 2,380 | New Jersey Turnpike Authority, Revenue Bonds, Series 2012B, 5.000%, 1/01/28 | 1/23 at 100.00 | A+ | 2,475,271 | ||||||||||||||
| 5,000 | New Jersey Turnpike Authority, Revenue Bonds, Series 2013A, 5.000%, 1/01/43 | 7/22 at 100.00 | A+ | 4,923,999 | ||||||||||||||
| 900 | Passaic County Improvement Authority, New Jersey, County Guaranteed Parking Revenue Bonds, 200 Hospital Plaza Project, Series 2010, 5.000%, 5/01/42 | 5/20 at 100.00 | Aa3 | 907,551 | ||||||||||||||
| 2,000 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fifty Third Series 2008, 5.000%, 7/15/38 | 7/18 at 100.00 | AA– | 2,016,220 | ||||||||||||||
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fortieth Series 2005: | ||||||||||||||||||
| 2,500 | 5.000%, 12/01/28 – SYNCORA GTY Insured | 6/15 at 101.00 | AA– | 2,647,575 | ||||||||||||||
| 500 | 5.000%, 12/01/34 | 6/15 at 101.00 | AA– | 502,680 | ||||||||||||||
| 420 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Forty Eighth Series 2007, Trust 2920, 17.694%, 8/15/32 – AGM Insured (IF) | 8/17 at 100.00 | AA– | 488,897 | ||||||||||||||
| 6,000 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 | 1/14 at 101.00 | AA– | 6,026,816 | ||||||||||||||
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997: | ||||||||||||||||||
| 2,000 | 5.750%, 12/01/22 – NPFG Insured (Alternative Minimum Tax) | 12/13 at 100.00 | A | 2,047,080 | ||||||||||||||
| 3,125 | 5.750%, 12/01/25 – NPFG Insured (Alternative Minimum Tax) | 12/13 at 100.00 | A | 3,186,969 | ||||||||||||||
South Jersey Port Corporation, New Jersey, Marine Terminal Revenue Refunding Bonds, Series 2012Q: | ||||||||||||||||||
| 2,575 | 3.000%, 1/01/23 | No Opt. Call | A1 | 2,427,865 | ||||||||||||||
| 870 | 3.000%, 1/01/24 | 1/23 at 100.00 | A1 | 801,087 | ||||||||||||||
| 1,810 | South Jersey Transportation Authority, New Jersey, Transportation System Revenue Bonds, Refunding Series 2012, 5.000%, 11/01/22 | No Opt. Call | A– | 2,012,014 | ||||||||||||||
| 44,525 | Total Transportation | 45,010,055 | ||||||||||||||||
U.S. Guaranteed – 11.6% (4) | ||||||||||||||||||
Burlington County Bridge Commission, New Jersey, Guaranteed Pooled Loan Bonds, Series 2003: | ||||||||||||||||||
| 1,000 | 5.000%, 12/01/20 (Pre-refunded 12/01/13) – NPFG Insured | 12/13 at 100.00 | AA (4) | 1,012,190 | ||||||||||||||
| 695 | 5.000%, 12/01/21 (Pre-refunded 12/01/13) – NPFG Insured | 12/13 at 100.00 | AA (4) | 703,472 | ||||||||||||||
| Nuveen Investments | 41 |
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed (4) (continued) | ||||||||||||||||||
Hudson County Improvement Authority, New Jersey, County Secured Lease Revenue Bonds, County Services Building Project, Series 2005: | ||||||||||||||||||
| $ | 395 | 5.000%, 4/01/25 (Pre-refunded 4/01/15) – AMBAC Insured | 4/15 at 100.00 | AA– (4) | $ | 423,764 | ||||||||||||
| 920 | 5.000%, 4/01/35 (Pre-refunded 4/01/15) – AMBAC Insured | 4/15 at 100.00 | AA– (4) | 986,994 | ||||||||||||||
| 735 | Monmouth County Improvement Authority, New Jersey, Governmental Loan Revenue Bonds, Series 2005, 4.000%, 12/01/17 (Pre-refunded 12/01/15) – AMBAC Insured | 12/15 at 100.00 | N/R (4) | 753110 | ||||||||||||||
New Jersey Economic Development Authority, Cigarette Tax Revenue Bonds, Series 2004: | ||||||||||||||||||
| 1,795 | 5.750%, 6/15/29 (Pre-refunded 6/15/14) | 6/14 at 100.00 | Aaa | 1,874,267 | ||||||||||||||
| 2,070 | 5.750%, 6/15/34 (Pre-refunded 6/15/14) | 6/14 at 100.00 | Aaa | 2,161,411 | ||||||||||||||
| 1,135 | New Jersey Economic Development Authority, Revenue Bonds, United Methodist Homes of New Jersey Obligated Group, Series 1998, 6.625%, 7/01/38 (Pre-refunded 1/01/14) | 1/14 at 100.00 | N/R (4) | 1,158,960 | ||||||||||||||
| 395 | New Jersey Economic Development Authority, Revenue Bonds, Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18 (ETM) | No Opt. Call | N/R (4) | 463,943 | ||||||||||||||
| 420 | New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16) – NPFG Insured | 7/16 at 100.00 | A (4) | 469,300 | ||||||||||||||
New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2005F: | ||||||||||||||||||
| 1,825 | 5.000%, 7/01/24 (Pre-refunded 7/01/15) – FGIC Insured | 7/15 at 100.00 | A1 (4) | 1,975,435 | ||||||||||||||
| 525 | 5.000%, 7/01/32 (Pre-refunded 7/01/15) – FGIC Insured | 7/15 at 100.00 | A1 (4) | 568,276 | ||||||||||||||
New Jersey Educational Facilities Authority, Revenue Bonds, New Jersey Institute of Technology, Series 2004B: | ||||||||||||||||||
| 125 | 5.000%, 7/01/18 (Pre-refunded 1/01/14) – AMBAC Insured | 1/14 at 100.00 | A+ (4) | 127,021 | ||||||||||||||
| 265 | 5.000%, 7/01/19 (Pre-refunded 1/01/14) – AMBAC Insured | 1/14 at 100.00 | A+ (4) | 269,285 | ||||||||||||||
| 815 | 4.250%, 7/01/24 (Pre-refunded 1/01/14) – AMBAC Insured | 1/14 at 100.00 | A+ (4) | 826,125 | ||||||||||||||
| 290 | New Jersey Educational Facilities Authority, Revenue Bonds, Rider University, Series 2004A, 5.500%, 7/01/23 (Pre-refunded 7/01/14) – RAAI Insured | 7/14 at 100.00 | BBB+ (4) | 302,870 | ||||||||||||||
| 2,500 | New Jersey Educational Facilities Authority, Revenue Bonds, University of Medicine and Dentistry of New Jersey, Refunding Series 2009B, 7.500%, 12/01/32 (Pre-refunded 6/01/19) | 6/19 at 100.00 | Baa1 (4) | 3,259,475 | ||||||||||||||
New Jersey Health Care Facilities Financing Authority, Lease Revenue Bonds, Department of Human Services – Greystone Park Psychiatric Hospital, Series 2005: | ||||||||||||||||||
| 1,050 | 5.000%, 9/15/18 (Pre-refunded 9/15/15) – AMBAC Insured | 9/15 at 100.00 | A+ (4) | 1,144,416 | ||||||||||||||
| 1,875 | 5.000%, 9/15/24 (Pre-refunded 9/15/15) – AMBAC Insured | 9/15 at 100.00 | A+ (4) | 2,043,600 | ||||||||||||||
| 4,495 | 5.000%, 9/15/26 (Pre-refunded 9/15/15) – AMBAC Insured | 9/15 at 100.00 | A+ (4) | 4,899,190 | ||||||||||||||
| 1,325 | 5.000%, 9/15/28 (Pre-refunded 9/15/15) – AMBAC Insured | 9/15 at 100.00 | A+ (4) | 1,444,144 | ||||||||||||||
| 845 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, St. Clare’s Hospital, Series 2004A, 5.250%, 7/01/20 – RAAI Insured (ETM) | No Opt. Call | N/R (4) | 996,280 | ||||||||||||||
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: | ||||||||||||||||||
| 35 | 6.500%, 1/01/16 (ETM) | No Opt. Call | A3 (4) | 39,744 | ||||||||||||||
| 200 | 6.500%, 1/01/16 – NPFG Insured (ETM) | No Opt. Call | A (4) | 227,106 | ||||||||||||||
| 50 | 6.500%, 1/01/16 (ETM) | No Opt. Call | AA+ (4) | 56,777 | ||||||||||||||
| 255 | 6.500%, 1/01/16 – NPFG Insured (ETM) | No Opt. Call | A+ (4) | 289,560 | ||||||||||||||
| 115 | 6.500%, 1/01/16 – AMBAC Insured (ETM) | No Opt. Call | A3 (4) | 121,707 | ||||||||||||||
| 70 | 6.500%, 1/01/16 – NPFG Insured (ETM) | No Opt. Call | A+ (4) | 74,082 | ||||||||||||||
| 5 | 6.500%, 1/01/16 – AMBAC Insured (ETM) | No Opt. Call | A (4) | 5,292 | ||||||||||||||
| 375 | Newark Housing Authority, New Jersey, Port Authority Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) – NPFG Insured | 1/14 at 100.00 | A (4) | 381,338 | ||||||||||||||
| 4,000 | Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 – AMBAC Insured | No Opt. Call | Aaa | 4,509,240 | ||||||||||||||
| 30,600 | Total U.S. Guaranteed | 33,568,374 | ||||||||||||||||
| 42 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Utilities – 0.6% | ||||||||||||||||||
New Jersey Economic Development Authority, Energy Facilities Revenue Bonds, UMM Energy Partners, LLC Project, Series 2012A: | ||||||||||||||||||
| $ | 1,000 | 5.000%, 6/15/37 (Alternative Minimum Tax) | No Opt. Call | Baa3 | $ | 899,750 | ||||||||||||
| 1,000 | 5.125%, 6/15/43 (Alternative Minimum Tax) | 6/22 at 100.00 | Baa3 | 894,350 | ||||||||||||||
| 2,000 | Total Utilities | 1,794,100 | ||||||||||||||||
Water and Sewer – 3.3% | ||||||||||||||||||
New Jersey Economic Development Authority, Water Facilities Revenue Bonds, Middlesex Water Company, Series 2012C: | ||||||||||||||||||
| 1,040 | 5.000%, 10/01/23 | No Opt. Call | A | 1,144,634 | ||||||||||||||
| 2,175 | 4.250%, 10/01/47 (Alternative Minimum Tax) | 10/22 at 100.00 | A | 1,746,221 | ||||||||||||||
| 960 | New Jersey Economic Development Authority, Water Facilities Revenue Bonds, New Jersey-American Water Company Inc. Project, Refunding Series 2010D, 4.875%, 11/01/29 (Alternative Minimum Tax) | 11/20 at 100.00 | A1 | 961,949 | ||||||||||||||
| 1,770 | New Jersey Environmental Infrastructure Trust, Environmental Infrastructure Bonds, Tender Option Bond Trust 4729, Series A-R, 7.355%, 9/01/21 (IF) (5) | No Opt. Call | AAA | 2,096,618 | ||||||||||||||
North Hudson Sewerage Authority, New Jersey, Gross Revenue Senior Lien Lease Certificates, Series 2012A: | ||||||||||||||||||
| 1,500 | 5.000%, 6/01/27 – NPFG Insured | 6/22 at 100.00 | A | 1,563,780 | ||||||||||||||
| 1,345 | 5.000%, 6/01/42 – NPFG Insured | 6/22 at 100.00 | A | 1,318,759 | ||||||||||||||
| 760 | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/38 | 7/18 at 100.00 | BBB– | 572,782 | ||||||||||||||
| 9,550 | Total Water and Sewer | 9,404,743 | ||||||||||||||||
| $ | 318,625 | Total Investments (cost $286,766,261) – 98.5% | 283,878,127 | |||||||||||||||
Other Assets Less Liabilities – 1.5% | 4,320,372 | |||||||||||||||||
Net Assets – 100% | $ | 288,198,499 | ||||||||||||||||
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |||
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |||
| (3) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |||
| (4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |||
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |||
| (ETM) | Escrowed to maturity. | |||
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
| Nuveen Investments | 43 |
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Consumer Discretionary – 0.1% | ||||||||||||||||||
| $ | 665 | New York City Industrial Development Agency, New York, Liberty Revenue Bonds, IAC/InterActiveCorp, Series 2005, 5.000%, 9/01/35 | 9/15 at 100.00 | BBB | $ | 618,856 | ||||||||||||
Consumer Staples – 2.4% | ||||||||||||||||||
| 390 | New York Counties Tobacco Trust II, Tobacco Settlement Pass-Through Bonds, Series 2001, 5.250%, 6/01/25 | 12/13 at 100.00 | A3 | 357,224 | ||||||||||||||
| 950 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 11/13 at 100.00 | BBB+ | 876,043 | ||||||||||||||
| 155 | Rensselaer Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2001A, 5.200%, 6/01/25 | 12/13 at 100.00 | A3 | 144,635 | ||||||||||||||
| 6,650 | Suffolk Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2008C, 6.625%, 6/01/44 | 6/22 at 100.00 | BB– | 5,961,060 | ||||||||||||||
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006: | ||||||||||||||||||
| 1,815 | 4.750%, 6/01/22 | 6/16 at 100.00 | BBB– | 1,680,763 | ||||||||||||||
| 1,225 | 5.000%, 6/01/26 | 6/16 at 100.00 | BB– | 1,008,677 | ||||||||||||||
| 7,210 | 5.125%, 6/01/42 | 6/16 at 100.00 | B | 4,871,941 | ||||||||||||||
| 1,500 | Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, Series 2009A, 6.625%, 10/01/29 | 10/19 at 100.00 | BBB | 1,632,615 | ||||||||||||||
| 19,895 | Total Consumer Staples | 16,532,958 | ||||||||||||||||
Education and Civic Organizations – 12.5% | ||||||||||||||||||
| 660 | Albany Industrial Development Agency, New York, Revenue Bonds, Albany Law School, Series 2007A, 5.000%, 7/01/31 | 7/17 at 100.00 | BBB | 646,985 | ||||||||||||||
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter Schools, Series 2007A: | ||||||||||||||||||
| 520 | 5.000%, 4/01/20 | 4/17 at 100.00 | BB+ | 525,928 | ||||||||||||||
| 1,000 | 5.000%, 4/01/27 | 4/17 at 100.00 | BB+ | 929,010 | ||||||||||||||
| 290 | 5.000%, 4/01/37 | 4/17 at 100.00 | BB+ | 245,253 | ||||||||||||||
| 1,000 | Allegany County Industrial Development Agency, New York, Revenue Bonds, Alfred University, Series 1998, 5.000%, 8/01/28 – NPFG Insured | 2/14 at 100.00 | Baa1 | 1,000,040 | ||||||||||||||
| 3,875 | Brooklyn Arena Local Development Corporation, New York, Payment in Lieu of Taxes Revenue Bonds, Barclays Center Project, Series 2009, 6.375%, 7/15/43 | 1/20 at 100.00 | BBB– | 4,104,013 | ||||||||||||||
| 1,125 | Buffalo and Erie County Industrial Land Development Corporation, New York, Revenue Bonds, Medaille College, Series 2012, 5.250%, 4/01/35 | 1/23 at 100.00 | BB+ | 1,008,540 | ||||||||||||||
| 2,190 | Buffalo and Erie County Industrial Land Development Corporation, New York, Tax-Exempt Revenue Bonds, Enterprise Charter School Project, Series 2011A, 7.500%, 12/01/40 | 12/20 at 100.00 | BB | 2,319,911 | ||||||||||||||
| 1,130 | Build NYC Resource Corporation, New York, Revenue Bonds, Bronx Charter School for Excellence, Series 2013A, 5.000%, 4/01/33 | 4/23 at 100.00 | BBB– | 1,055,013 | ||||||||||||||
| 215 | Cattaraugus County Industrial Development Agency, New York, Revenue Bonds, St. Bonaventure University, Series 2006, 5.000%, 5/01/23 | 5/16 at 100.00 | BBB– | 215,363 | ||||||||||||||
| 1,750 | Dormitory Authority of the State of New York, Brooklyn Law School Revenue Bonds, Series 2009, 5.750%, 7/01/33 | 7/19 at 100.00 | BBB+ | 1,778,420 | ||||||||||||||
Dormitory Authority of the State of New York, General Revenue Bonds, Manhattan College, Series 2007A: | ||||||||||||||||||
| 2,655 | 5.000%, 7/01/32 – RAAI Insured | 7/17 at 100.00 | N/R | 2,537,782 | ||||||||||||||
| 2,820 | 5.000%, 7/01/41 – RAAI Insured | 7/17 at 100.00 | N/R | 2,562,308 | ||||||||||||||
| 1,055 | Dormitory Authority of the State of New York, General Revenue Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 – AMBAC Insured | No Opt. Call | AA– | 1,128,650 | ||||||||||||||
| 1,880 | Dormitory Authority of the State of New York, General Revenue Bonds, Saint Johns University, Series 2007A, 5.250%, 7/01/32 – NPFG Insured | 7/17 at 100.00 | A | 1,896,093 | ||||||||||||||
| 44 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
Dormitory Authority of the State of New York, Housing Revenue Bonds, Fashion Institute of Technology, Series 2007: | ||||||||||||||||||
| $ | 1,670 | 5.250%, 7/01/29 – FGIC Insured | No Opt. Call | A | $ | 1,680,605 | ||||||||||||
| 735 | 5.250%, 7/01/34 – FGIC Insured | No Opt. Call | A | 709,672 | ||||||||||||||
| 1,850 | Dormitory Authority of the State of New York, Insured Revenue Bonds, New York Medical College, Series 1998, 5.000%, 7/01/21 – NPFG Insured | 1/14 at 100.00 | A | 1,855,772 | ||||||||||||||
| 2,120 | Dormitory Authority of the State of New York, Lease Revenue Bonds, State University Dormitory Facilities, Series 2004A, 5.000%, 7/01/29 – NPFG Insured | 7/15 at 100.00 | Aa2 | 2,139,292 | ||||||||||||||
| 435 | Dormitory Authority of the State of New York, Revenue Bonds, Barnard College, Series 2007A, 5.000%, 7/01/37 – FGIC Insured | 7/17 at 100.00 | A | 433,769 | ||||||||||||||
| 2,175 | Dormitory Authority of the State of New York, Revenue Bonds, Columbia University, Series 2011A, 5.000%, 10/01/41 | 4/21 at 100.00 | AAA | 2,261,152 | ||||||||||||||
| 750 | Dormitory Authority of the State of New York, Revenue Bonds, Convent of the Sacred Heart, Series 2011, 5.625%, 11/01/32 – AGM Insured | 5/21 at 100.00 | AA– | 789,255 | ||||||||||||||
| 350 | Dormitory Authority of the State of New York, Revenue Bonds, New School University, Series 2010, 5.250%, 7/01/30 | 7/20 at 100.00 | A– | 363,818 | ||||||||||||||
| 585 | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series 2007, 5.000%, 7/01/32 – AMBAC Insured | 7/17 at 100.00 | AA– | 594,875 | ||||||||||||||
| 1,000 | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series 2008A, 5.000%, 7/01/38 | 7/18 at 100.00 | AA– | 1,005,900 | ||||||||||||||
| 1,500 | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series 2009B, 5.000%, 7/01/39 | 7/19 at 100.00 | AA– | 1,512,735 | ||||||||||||||
| 1,200 | Dormitory Authority of the State of New York, Revenue Bonds, Non State Supported Debt, Cornell University, Series 2008C, 5.000%, 7/01/37 | 7/20 at 100.00 | Aa1 | 1,244,628 | ||||||||||||||
| 1,845 | Dutchess County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Bard College Project, Series 2007-A2, 4.500%, 8/01/36 | 8/17 at 100.00 | Baa1 | 1,580,464 | ||||||||||||||
| 615 | Hempstead Town Industrial Development Agency, New York, Revenue Bonds, Adelphi University, Civic Facility Project, Series 2005, 5.000%, 10/01/35 | 10/15 at 100.00 | A | 613,340 | ||||||||||||||
| 250 | Hempstead Town Local Development Corporation, New York, Revenue Bonds, Adelphi University Project, Series 2009B, 5.250%, 2/01/39 | 2/19 at 100.00 | A | 254,110 | ||||||||||||||
| 1,175 | Hempstead Town Local Development Corporation, New York, Revenue Bonds, Molloy College Project, Series 2009, 5.750%, 7/01/39 | 7/19 at 100.00 | BBB+ | 1,188,806 | ||||||||||||||
| 940 | Madison County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Colgate University, Series 2005A, Tender Option Bond Trust 3127, 12.849%, 1/01/14 – AMBAC Insured (IF) | No Opt. Call | AA+ | 955,369 | ||||||||||||||
| 4,000 | Monroe County Industrial Development Agency, New York, School Facility Revenue Bonds, Rochester Schools Modernization Project, Series 2013, 5.000%, 5/01/28 | 5/23 at 100.00 | AA– | 4,158,360 | ||||||||||||||
| 2,500 | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Polytechnic University, Series 2007, 5.250%, 11/01/37 – ACA Insured | 11/17 at 100.00 | BBB– | 2,507,575 | ||||||||||||||
| 1,285 | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Vaughn College of Aeronautics, Series 2006A, 5.000%, 12/01/28 | 12/16 at 100.00 | BB | 1,161,216 | ||||||||||||||
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, YMCA of Greater New York, Series 2006: | ||||||||||||||||||
| 5,520 | 5.000%, 8/01/26 | 8/16 at 100.00 | A– | 5,603,297 | ||||||||||||||
| 2,000 | 5.000%, 8/01/36 | 8/16 at 100.00 | A– | 1,999,920 | ||||||||||||||
New York City Industrial Development Agency, New York, PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006: | ||||||||||||||||||
| 4,000 | 5.000%, 1/01/31 – AMBAC Insured | 1/17 at 100.00 | Ba1 | 3,578,200 | ||||||||||||||
| 1,060 | 5.000%, 1/01/39 – AMBAC Insured | 1/17 at 100.00 | Ba1 | 889,541 | ||||||||||||||
| 1,795 | 4.750%, 1/01/42 – AMBAC Insured | 1/17 at 100.00 | Ba1 | 1,424,440 | ||||||||||||||
| 5,170 | 5.000%, 1/01/46 – AMBAC Insured | 1/17 at 100.00 | Ba1 | 4,231,076 | ||||||||||||||
| Nuveen Investments | 45 |
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
New York City Industrial Development Authority, New York, PILOT Revenue Bonds, Yankee Stadium Project, Series 2006: | ||||||||||||||||||
| $ | 720 | 5.000%, 3/01/31 – FGIC Insured | 9/16 at 100.00 | BBB | $ | 702,778 | ||||||||||||
| 2,500 | 5.000%, 3/01/36 – NPFG Insured | 9/16 at 100.00 | A | 2,398,925 | ||||||||||||||
| 3,550 | 4.500%, 3/01/39 – FGIC Insured | 9/16 at 100.00 | BBB | 3,092,618 | ||||||||||||||
| 1,150 | 4.750%, 3/01/46 – NPFG Insured | 9/16 at 100.00 | A | 1,021,522 | ||||||||||||||
| 2,000 | New York City Trust for Cultural Resources, New York, Revenue Bonds, Carnegie Hall, Series 2009A, 5.000%, 12/01/39 | 12/19 at 100.00 | A+ | 2,020,160 | ||||||||||||||
| 740 | New York City Trust for Cultural Resources, New York, Revenue Bonds, Whitney Museum of American Art, Series 2011, 5.000%, 7/01/31 | 1/21 at 100.00 | A | 743,559 | ||||||||||||||
Onondaga Civic Development Corporation, New York, Revenue Bonds, Le Moyne College Project, Series 2012: | ||||||||||||||||||
| 1,000 | 5.000%, 7/01/32 | 7/22 at 100.00 | Baa2 | 927,350 | ||||||||||||||
| 2,445 | 5.000%, 7/01/42 | 7/22 at 100.00 | Baa2 | 2,210,304 | ||||||||||||||
| 430 | Seneca County Industrial Development Authority, New York, Revenue Bonds, New York Chiropractic College, Series 2007, 5.000%, 10/01/27 | 10/17 at 100.00 | BBB | 432,189 | ||||||||||||||
| 1,600 | Troy Capital Resource Corporation, New York, Revenue Bonds, Rensselaer Polytechnic Institute, Series 2010A, 5.125%, 9/01/40 | 9/20 at 100.00 | A– | 1,569,040 | ||||||||||||||
| 865 | Utica Industrial Development Agency, New York, Revenue Bonds, Utica College, Series 1998A, 5.750%, 8/01/28 | 11/13 at 100.00 | N/R | 854,724 | ||||||||||||||
Yonkers Economic Development Corporation, New York, Revenue Bonds, Charter School Educational Excellence Project, Series 2010A: | ||||||||||||||||||
| 1,340 | 6.000%, 10/15/30 | 10/20 at 100.00 | BB | 1,309,086 | ||||||||||||||
| 2,300 | 6.250%, 10/15/40 | 10/20 at 100.00 | BB | 2,232,633 | ||||||||||||||
| 1,000 | Yonkers Industrial Development Agency, New York, Civic Facility Revenue Bonds, Sarah Lawrence College Project, Series 2001A Remarketed, 6.000%, 6/01/41 | 6/19 at 100.00 | BBB | 1,039,240 | ||||||||||||||
| 90,330 | Total Education and Civic Organizations | 87,244,624 | ||||||||||||||||
Financials – 1.5% | ||||||||||||||||||
| 7,110 | Liberty Development Corporation, New York, Goldman Sachs Headquarter Revenue Bonds, Series 2005, 5.250%, 10/01/35 | No Opt. Call | A | 7,288,106 | ||||||||||||||
| 3,475 | Liberty Development Corporation, New York, Goldman Sachs Headquarters Revenue Bonds Series 2007, 5.500%, 10/01/37 | No Opt. Call | A | 3,656,430 | ||||||||||||||
| 10,585 | Total Financials | 10,944,536 | ||||||||||||||||
Health Care – 8.6% | ||||||||||||||||||
| 1,000 | Albany Capital Resource Corporation, New York, St. Peter’s Hospital Project, Series 2011, 6.125%, 11/15/30 | 11/20 at 100.00 | A– | 1,076,700 | ||||||||||||||
| 3,575 | Albany Industrial Development Agency, New York, Revenue Bonds, Saint Peter’s Hospital, Series 2008A, 5.250%, 11/15/32 | 11/17 at 100.00 | A– | 3,619,759 | ||||||||||||||
Dormitory Authority of the State of New York, FHA-Insured Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A: | ||||||||||||||||||
| 1,910 | 5.125%, 2/01/22 – AMBAC Insured | 2/14 at 100.00 | N/R | 1,916,379 | ||||||||||||||
| 245 | 5.000%, 2/01/31 – AMBAC Insured | 2/14 at 100.00 | N/R | 245,012 | ||||||||||||||
| 1,405 | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 – AGM Insured | 8/17 at 100.00 | AA– | 1,477,315 | ||||||||||||||
| 1,910 | Dormitory Authority of the State of New York, FHA-Insured Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 – FGIC Insured | 2/15 at 100.00 | A | 1,911,337 | ||||||||||||||
Dormitory Authority of the State of New York, FHA-Insured Revenue Bonds, Montefiore Medical Center, Series 2005: | ||||||||||||||||||
| 3,000 | 5.000%, 2/01/22 – FGIC Insured | 2/15 at 100.00 | A | 3,140,160 | ||||||||||||||
| 1,775 | 5.000%, 2/01/28 – FGIC Insured | 2/15 at 100.00 | A | 1,817,778 | ||||||||||||||
| 46 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 550 | Dormitory Authority of the State of New York, Highland Hospital of Rochester Revenue Bonds, Series 2010, 5.200%, 7/01/32 | 7/20 at 100.00 | A2 | $ | 545,721 | ||||||||||||
| 3,000 | Dormitory Authority of the State of New York, Insured Revenue Bonds, Franciscan Health Partnership Obligated Group – Frances Shervier Home and Hospital, Series 1997, 5.500%, 7/01/27 – RAAI Insured | 1/14 at 100.00 | A3 | 3,000,000 | ||||||||||||||
| 2,500 | Dormitory Authority of the State of New York, North Shore Long Island Jewish Obligated Group Revenue Bonds, Series 2011A, 5.000%, 5/01/41 | 5/21 at 100.00 | A– | 2,407,375 | ||||||||||||||
Dormitory Authority of the State of New York, Orange Regional Medical Center Obligated Group Revenue Bonds, Series 2008: | ||||||||||||||||||
| 4,735 | 6.125%, 12/01/29 | 12/18 at 100.00 | Ba1 | 4,737,604 | ||||||||||||||
| 4,500 | 6.250%, 12/01/37 | 12/18 at 100.00 | Ba1 | 4,411,440 | ||||||||||||||
| 1,250 | Dormitory Authority of the State of New York, Revenue Bonds, Catholic Health Services of Long Island, Series 2004, 5.100%, 7/01/34 | 7/14 at 100.00 | BBB+ | 1,253,413 | ||||||||||||||
| 3,580 | Dormitory Authority of the State of New York, Revenue Bonds, New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 – AGM Insured | 8/14 at 100.00 | AA– | 3,740,241 | ||||||||||||||
| 600 | Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish Obligated Group, Series 2005A, 5.000%, 11/01/34 | 11/16 at 100.00 | A3 | 600,570 | ||||||||||||||
| 500 | Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish Obligated Group, Series 2006B, 5.000%, 11/01/34 | 11/16 at 100.00 | A3 | 500,475 | ||||||||||||||
| 1,000 | Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish Obligated Group, Series 2009A, 5.500%, 5/01/37 | 5/19 at 100.00 | A– | 1,027,740 | ||||||||||||||
| 2,000 | Dormitory Authority of the State of New York, Revenue Bonds, NYU Hospitals Center, Series 2006A, 5.000%, 7/01/20 | 7/16 at 100.00 | A– | 2,141,060 | ||||||||||||||
| 5,600 | Dormitory Authority of the State of New York, Revenue Bonds, NYU Hospitals Center, Series 2007B, 5.625%, 7/01/37 | 7/17 at 100.00 | A– | 5,668,768 | ||||||||||||||
Dutchess County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Vassar Brothers Medical Center Facility, Series 2005: | ||||||||||||||||||
| 545 | 5.500%, 4/01/30 | 10/20 at 100.00 | AA– | 560,903 | ||||||||||||||
| 950 | 5.500%, 4/01/34 | 10/20 at 100.00 | AA– | 966,948 | ||||||||||||||
Madison County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Oneida Health System, Series 2007A: | ||||||||||||||||||
| 225 | 4.500%, 2/01/17 | No Opt. Call | BBB– | 232,106 | ||||||||||||||
| 710 | 5.250%, 2/01/27 | 2/17 at 100.00 | BBB– | 664,099 | ||||||||||||||
| 635 | 5.500%, 2/01/32 | 2/17 at 100.00 | BBB– | 576,574 | ||||||||||||||
| 2,720 | Monroe County Industrial Development Corporation, New York, FHA Insured Mortgage Revenue Bonds, Unity Hospital of Rochestor Project, Series 2010, 5.750%, 8/15/35 | 2/21 at 100.00 | Aa2 | 2,913,773 | ||||||||||||||
| 3,835 | Monroe County Industrial Development Corporation, New York, Revenue Bonds, Rochester General Hospital Project, Series 2013A, 5.000%, 12/01/42 | 12/22 at 100.00 | A– | 3,570,500 | ||||||||||||||
Saratoga County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Saratoga Hospital Project, Series 2007B: | ||||||||||||||||||
| 1,000 | 5.125%, 12/01/27 | 12/17 at 100.00 | A– | 1,009,480 | ||||||||||||||
| 500 | 5.250%, 12/01/32 | 12/17 at 100.00 | A– | 499,055 | ||||||||||||||
| 1,965 | Suffolk County Economic Development Corporation, New York, Revenue Refunding Bonds, Catholic Health Services of Long Island Obligated Group Project, Series 2011, 5.000%, 7/01/28 | 7/21 at 100.00 | BBB+ | 1,971,819 | ||||||||||||||
| 2,000 | Yonkers Industrial Development Agency, New York, Revenue Bonds, St. John’s Riverside Hospital, Series 2001A, 7.125%, 7/01/31 | 1/14 at 100.00 | B+ | 2,000,960 | ||||||||||||||
| 59,720 | Total Health Care | 60,205,064 | ||||||||||||||||
Housing/Multifamily – 2.5% | ||||||||||||||||||
| 1,600 | Canton Capital Resource Corporation, New York, Student Housing Facility Revenue Bonds, Grasse River LLC at SUNY Canton Project Series 2010A, 5.000%, 5/01/40 | 5/20 at 100.00 | AA– | 1,603,488 | ||||||||||||||
| Nuveen Investments | 47 |
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Housing/Multifamily (continued) | ||||||||||||||||||
| $ | 265 | East Syracuse Housing Authority, New York, FHA-Insured Section 8 Assisted Revenue Refunding Bonds, Bennet Project, Series 2001A, 6.700%, 4/01/21 | 10/13 at 100.00 | AA+ | $ | 265,586 | ||||||||||||
| 1,000 | Madison County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Morrisville State College Foundation, Series 2005A, 5.000%, 6/01/37 – CIFG Insured | 6/15 at 101.00 | BBB– | 885,120 | ||||||||||||||
New York City Housing Development Corporation, New York, Capital Fund Program Revenue Bonds, New York Housing Authority Program, Series 2005A: | ||||||||||||||||||
| 400 | 5.000%, 7/01/14 – FGIC Insured | No Opt. Call | AA– | 415,324 | ||||||||||||||
| 400 | 5.000%, 7/01/16 – FGIC Insured | 7/15 at 100.00 | AA– | 429,756 | ||||||||||||||
| 4,030 | �� | 5.000%, 7/01/25 – FGIC Insured | 7/15 at 100.00 | AA– | 4,205,587 | |||||||||||||
| 5 | New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2002A, 5.500%, 11/01/34 (Alternative Minimum Tax) | 11/13 at 100.00 | AA | 5,027 | ||||||||||||||
| 2,000 | New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2004A, 5.250%, 11/01/30 | 5/14 at 100.00 | AA | 2,047,220 | ||||||||||||||
| 540 | New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2004-H2, 5.125%, 11/01/34 (Alternative Minimum Tax) | 11/14 at 100.00 | AA | 540,616 | ||||||||||||||
| 855 | New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2010D-1A, 5.000%, 11/01/42 | 5/20 at 100.00 | AA | 842,030 | ||||||||||||||
| 2,500 | New York State Housing Finance Agency, Affordable Housing Revenue Bonds, Series 2007B, 5.300%, 11/01/37 (Alternative Minimum Tax) | 11/17 at 100.00 | Aa2 | 2,515,575 | ||||||||||||||
| 705 | New York State Housing Finance Agency, Affordable Housing Revenue, Series 2007A, 5.250%, 11/01/38 (Alternative Minimum Tax) | 11/17 at 100.00 | Aa2 | 704,781 | ||||||||||||||
New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A: | ||||||||||||||||||
| 130 | 6.100%, 11/01/15 – AGM Insured | 11/13 at 100.00 | AA– | 130,624 | ||||||||||||||
| 255 | 6.125%, 11/01/20 – AGM Insured | 11/13 at 100.00 | AA– | 255,446 | ||||||||||||||
| 1,730 | New York State Housing Finance Agency, Multifamily Housing Revenue Bonds, Cannon Street Senior Housing Project, Series 2007A, 5.300%, 2/15/39 (Alternative Minimum Tax) | 2/17 at 100.00 | Aa1 | 1,737,301 | ||||||||||||||
| 1,000 | New York State Housing Finance Agency, Secured Mortgage Program Multifamily Housing Revenue Bonds, Series 2001G, 5.400%, 8/15/33 (Alternative Minimum Tax) | 2/14 at 100.00 | Aa1 | 1,000,210 | ||||||||||||||
| 17,415 | Total Housing/Multifamily | 17,583,691 | ||||||||||||||||
Housing/Single Family – 0.5% | ||||||||||||||||||
| 2,375 | New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 130, 4.650%, 4/01/27 (Alternative Minimum Tax) | 4/15 at 100.00 | Aa1 | 2,378,895 | ||||||||||||||
| 1,490 | New York State Mortgage Agency, Mortgage Revenue Bonds, Thirty-Third Series A, 4.750%, 4/01/23 (Alternative Minimum Tax) | 4/15 at 100.00 | Aaa | 1,499,789 | ||||||||||||||
| 3,865 | Total Housing/Single Family | 3,878,684 | ||||||||||||||||
Long-Term Care – 2.0% | ||||||||||||||||||
| 1,070 | Dormitory Authority of the State of New York, GNMA Collateralized Revenue Bonds, Cabrini of Westchester Project, Series 2006, 5.200%, 2/15/41 | 2/17 at 103.00 | AA+ | 1,081,075 | ||||||||||||||
Dormitory Authority of the State of New York, Insured Revenue Bonds, NYSARC Inc Projects, Series 2007B: | ||||||||||||||||||
| 290 | 6.000%, 7/01/26 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 311,553 | ||||||||||||||
| 310 | 6.000%, 7/01/27 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 330,094 | ||||||||||||||
| 330 | 6.000%, 7/01/28 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 349,322 | ||||||||||||||
| 350 | 6.000%, 7/01/29 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 368,676 | ||||||||||||||
| 1,460 | 6.000%, 7/01/36 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 1,517,655 | ||||||||||||||
| 48 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Long-Term Care (continued) | ||||||||||||||||||
| $ | 1,000 | Dormitory Authority of the State of New York, Insured Revenue Bonds, NYSARC Inc Projects, Series 2009A, 6.000%, 7/01/38 | 7/19 at 100.00 | Aa3 | $ | 1,054,910 | ||||||||||||
| 2,000 | Dormitory Authority of the State of New York, Insured Revenue Bonds, NYSARC Inc., Series 2005A, 5.000%, 7/01/34 – AGM Insured | 7/15 at 100.00 | AA | 2,001,080 | ||||||||||||||
| 650 | Dormitory Authority of the State of New York, Non-State Supported Debt, Ozanam Hall of Queens Nursing Home Revenue Bonds, Series 2006, 5.000%, 11/01/31 | 11/16 at 100.00 | Ba3 | 543,816 | ||||||||||||||
Dormitory Authority of the State of New York, Revenue Bonds, Providence Rest, Series 2005: | ||||||||||||||||||
| 50 | 5.125%, 7/01/30 – ACA Insured | 7/15 at 100.00 | N/R | 44,668 | ||||||||||||||
| 415 | 5.000%, 7/01/35 – ACA Insured | 7/15 at 100.00 | N/R | 349,700 | ||||||||||||||
| 1,700 | East Rochester Housing Authority, New York, Senior Living Revenue Bonds, Woodland Village Project, Series 2006, 5.500%, 8/01/33 | 8/16 at 101.00 | N/R | 1,485,783 | ||||||||||||||
| 1,005 | Erie County Industrial Development Agency, New York, Revenue Bonds, Orchard Park CCRC Inc. Project, Series 2006A, 6.000%, 11/15/36 | 11/16 at 100.00 | N/R | 884,139 | ||||||||||||||
| 155 | New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2000, 8.125%, 7/01/19 | 11/13 at 100.00 | N/R | 155,186 | ||||||||||||||
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2008A-1: | ||||||||||||||||||
| 1,000 | 5.800%, 7/01/23 | 7/16 at 101.00 | N/R | 909,040 | ||||||||||||||
| 1,175 | 6.100%, 7/01/28 | 7/16 at 101.00 | N/R | 1,036,844 | ||||||||||||||
| 800 | 6.200%, 7/01/33 | 7/16 at 101.00 | N/R | 691,208 | ||||||||||||||
| 1,225 | Suffolk County Economic Development Corporation, New York, Revenue Refunding Bonds, Peconic Landing At Southold, Inc. Project, Series 2010, 6.000%, 12/01/40 | 12/20 at 100.00 | BBB– | 1,255,588 | ||||||||||||||
| 160 | Suffolk County Industrial Development Agency, New York, Revenue Bonds, Special Needs Facilities Pooled Program, Series 2001C-1, 7.250%, 7/01/16 | 1/14 at 100.00 | N/R | 160,394 | ||||||||||||||
| 15,145 | Total Long-Term Care | 14,530,731 | ||||||||||||||||
Materials – 0.1% | ||||||||||||||||||
| 700 | Essex County Industrial Development Agency, New York, Environmental Improvement Revenue Bonds, International Paper Company, Series 1999A, 6.450%, 11/15/23 (Alternative Minimum Tax) | 11/13 at 100.00 | BBB | 685,097 | ||||||||||||||
Tax Obligation/General – 6.7% | ||||||||||||||||||
| 3,000 | Erie County, New York, General Obligation Bonds, Series 2005A, 5.000%, 12/01/18 – NPFG Insured | 12/15 at 100.00 | A | 3,306,060 | ||||||||||||||
| 2,000 | Monroe-Woodbury Central School District, Orange County, New York, General Obligation Bonds, Series 2004A, 4.250%, 5/15/22 – FGIC Insured | 5/14 at 100.00 | Aa3 | 2,010,880 | ||||||||||||||
Mount Sinai Union Free School District, Suffolk County, New York, General Obligation Refunding Bonds, Series 1992: | ||||||||||||||||||
| 500 | 6.200%, 2/15/15 – AMBAC Insured | No Opt. Call | Aa3 | 541,920 | ||||||||||||||
| 1,035 | 6.200%, 2/15/16 – AMBAC Insured | No Opt. Call | Aa3 | 1,172,655 | ||||||||||||||
| 1,505 | Nassau County, North Hempstead, New York, General Obligation Refunding Bonds, Series 1992B, 6.400%, 4/01/14 – FGIC Insured | No Opt. Call | Aa1 | 1,558,127 | ||||||||||||||
| 2,140 | New York City, New York, General Obligation Bonds, Fiscal 2008 Series D, 5.125%, 12/01/26 | 12/17 at 100.00 | AA | 2,344,841 | ||||||||||||||
| 325 | New York City, New York, General Obligation Bonds, Fiscal 2009 Series J1, 5.000%, 5/15/36 | 5/19 at 100.00 | AA | 333,951 | ||||||||||||||
New York City, New York, General Obligation Bonds, Fiscal 2012 Series A-1: | ||||||||||||||||||
| 1,725 | 5.000%, 10/01/28 | 10/22 at 100.00 | AA | 1,832,295 | ||||||||||||||
| Nuveen Investments | 49 |
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 1,900 | 5.000%, 10/01/30 | No Opt. Call | AA | $ | 1,984,550 | ||||||||||||
| 1,915 | 5.000%, 10/01/31 | No Opt. Call | AA | 1,982,791 | ||||||||||||||
| 3,000 | 5.000%, 10/01/33 | 10/22 at 100.00 | AA | 3,076,980 | ||||||||||||||
| 6,100 | New York City, New York, General Obligation Bonds, Fiscal 2013 Series F-1, 5.000%, 3/01/37 | 3/23 at 100.00 | AA | 6,210,837 | ||||||||||||||
New York City, New York, General Obligation Bonds, Fiscal Series 2004E: | ||||||||||||||||||
| 1,000 | 5.000%, 11/01/19 – AGM Insured | No Opt. Call | AA | 1,053,390 | ||||||||||||||
| 925 | 5.000%, 11/01/20 – AGM Insured | 11/14 at 100.00 | AA | 974,386 | ||||||||||||||
| 3,620 | New York City, New York, General Obligation Bonds, Fiscal Series 2005F-1, 5.000%, 9/01/19 – SYNCORA GTY Insured | 9/15 at 100.00 | AA | 3,928,641 | ||||||||||||||
| 600 | New York City, New York, General Obligation Bonds, Fiscal Series 2005J, 5.000%, 3/01/19 – FGIC Insured | 3/15 at 100.00 | AA | 639,018 | ||||||||||||||
New York City, New York, General Obligation Bonds, Series 2011D-I: | ||||||||||||||||||
| 1,500 | 5.000%, 10/01/29 | 10/21 at 100.00 | AA | 1,578,345 | ||||||||||||||
| 6,670 | 5.000%, 10/01/34 | No Opt. Call | AA | 6,843,687 | ||||||||||||||
Rensselaer County, New York, General Obligation Bonds, Series 1991: | ||||||||||||||||||
| 960 | 6.700%, 2/15/14 – AMBAC Insured | No Opt. Call | AA– | 988,032 | ||||||||||||||
| 960 | 6.700%, 2/15/15 – AMBAC Insured | No Opt. Call | AA– | 1,045,162 | ||||||||||||||
Yonkers, New York, General Obligation Bonds, Series 2005B: | ||||||||||||||||||
| 1,495 | 5.000%, 8/01/17 | 8/15 at 100.00 | Baa1 | 1,575,476 | ||||||||||||||
| 1,570 | 5.000%, 8/01/18 | 8/15 at 100.00 | Baa1 | 1,641,608 | ||||||||||||||
| 44,445 | Total Tax Obligation/General | 46,623,632 | ||||||||||||||||
Tax Obligation/Limited – 31.5% | ||||||||||||||||||
| 1,500 | Albany Parking Authority, New York, Revenue Refunding Bonds, Series 1992A, 0.000%, 11/01/17 | No Opt. Call | N/R | 1,229,835 | ||||||||||||||
| 1,000 | Dormitory Authority of the State of New York, Lease Revenue Bonds, Wayne-Finger Lakes Board of Cooperative Education Services, Series 2004, 5.000%, 8/15/23 – AGM Insured | 8/14 at 100.00 | AA– | 1,043,260 | ||||||||||||||
Dormitory Authority of the State of New York, Residential Insitutions for Children Revenue Bonds, Series 2008-A1: | ||||||||||||||||||
| 2,000 | 5.000%, 6/01/33 | 6/18 at 100.00 | Aa1 | 2,033,660 | ||||||||||||||
| 2,500 | 5.000%, 6/01/38 | 6/18 at 100.00 | Aa1 | 2,522,950 | ||||||||||||||
| 2,410 | Dormitory Authority of the State of New York, Revenue Bonds, Department of Health, Series 2004-2, 5.000%, 7/01/20 – FGIC Insured | 7/14 at 100.00 | AA– | 2,495,507 | ||||||||||||||
| 1,000 | Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D-1, 5.000%, 8/15/23 – FGIC Insured | 2/15 at 100.00 | AA– | 1,056,410 | ||||||||||||||
| 15 | Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 – NPFG Insured | 10/13 at 100.00 | A+ | 15,061 | ||||||||||||||
| 1,500 | Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing Program, Series 2009C, 5.125%, 10/01/36 – AGC Insured | 10/19 at 100.00 | AA– | 1,539,735 | ||||||||||||||
| 1,000 | Dormitory Authority of the State of New York, Revenue Bonds, State University Educational Facilities, Series 1993C, 5.250%, 5/15/19 | 5/14 at 100.00 | AA– | 1,105,860 | ||||||||||||||
| 4,025 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Education Series 2008A, 5.000%, 3/15/28 | 3/18 at 100.00 | AAA | 4,256,317 | ||||||||||||||
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2011C: | ||||||||||||||||||
| 8,790 | 5.000%, 3/15/34 | No Opt. Call | AAA | 9,000,521 | ||||||||||||||
| 1,480 | 5.000%, 3/15/41 | 3/21 at 100.00 | AAA | 1,493,853 | ||||||||||||||
| 1,000 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2012D, 5.000%, 2/15/37 | No Opt. Call | AAA | 1,019,320 | ||||||||||||||
| 3,230 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose, Series 2009A, 5.000%, 2/15/34 | 2/19 at 100.00 | AAA | 3,299,477 | ||||||||||||||
| 50 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 35 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 – AGM Insured | 3/15 at 100.00 | AAA | $ | 37,170 | ||||||||||||
| 1,460 | Erie County Industrial Development Agency, New York, School Facility Revenue Bonds, Buffalo City School District Project, Series 2008A, 5.750%, 5/01/27 – AGM Insured | 5/18 at 100.00 | AA– | 1,635,010 | ||||||||||||||
| 11,675 | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 5.000%, 2/15/47 – FGIC Insured | 2/17 at 100.00 | A | 11,149,039 | ||||||||||||||
| 1,825 | Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A, 5.750%, 7/01/18 | No Opt. Call | AA– | 2,152,825 | ||||||||||||||
| 1,680 | Monroe Newpower Corporation, New York, Power Facilities Revenue Bonds, Series 2003, 5.500%, 1/01/34 | 1/15 at 100.00 | BBB | 1,569,221 | ||||||||||||||
New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: | ||||||||||||||||||
| 5,570 | 5.000%, 10/15/25 – NPFG Insured | 10/14 at 100.00 | AAA | 5,808,507 | ||||||||||||||
| 3,095 | 5.000%, 10/15/26 – NPFG Insured | 10/14 at 100.00 | AAA | 3,193,328 | ||||||||||||||
| 5,875 | 5.000%, 10/15/29 – AMBAC Insured | 10/14 at 100.00 | AAA | 6,095,195 | ||||||||||||||
| 500 | 5.000%, 10/15/32 – AMBAC Insured | 10/14 at 100.00 | AAA | 517,020 | ||||||||||||||
| 10,000 | 5.000%, 10/15/32 – AGM Insured | 10/14 at 100.00 | AAA | 10,335,900 | ||||||||||||||
| 7,800 | New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 – FGIC Insured | 1/17 at 100.00 | AA– | 8,132,748 | ||||||||||||||
| 4,520 | New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Fiscal Series 2009-S1, 5.500%, 7/15/31 | 7/18 at 100.00 | AA– | 4,908,630 | ||||||||||||||
New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2003E: | ||||||||||||||||||
| 25 | 5.250%, 2/01/22 – NPFG Insured | 11/13 at 100.00 | AAA | 25,103 | ||||||||||||||
| 20 | 5.000%, 2/01/23 – FGIC Insured | 11/13 at 100.00 | AAA | 20,078 | ||||||||||||||
| 3,705 | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2007C-1, 5.000%, 11/01/27 | 11/17 at 100.00 | AAA | 4,048,416 | ||||||||||||||
| 10,000 | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Subordinate Fiscal 2013 Series I, 5.000%, 5/01/42 | 5/23 at 100.00 | AAA | 10,137,200 | ||||||||||||||
New York City Transitional Finance Authority, New York, Future Tax Secured Revenue Bonds, Subordinate Lien Series 2011C: | ||||||||||||||||||
| 10,050 | 5.500%, 11/01/35 | 11/20 at 100.00 | AAA | 10,902,743 | ||||||||||||||
| 20,525 | 5.000%, 11/01/39 | 11/20 at 100.00 | AAA | 20,795,107 | ||||||||||||||
| 1,000 | New York City Transitional Finance Authority, New York, Future Tax Secured Revenue Bonds, SubSeries 2011D-1, 5.250%, 2/01/30 | 2/21 at 100.00 | AAA | 1,079,530 | ||||||||||||||
New York Convention Center Development Corporation, Hotel Fee Revenue Bonds, Tender Option Bonds Trust 3095, Series2005: | ||||||||||||||||||
| 440 | 13.513%, 11/15/30 – AMBAC Insured (IF) (5) | 11/15 at 100.00 | AA+ | 463,558 | ||||||||||||||
| 1,395 | 13.499%, 11/15/44 – AMBAC Insured (IF) (5) | 11/15 at 100.00 | AA+ | 1,408,127 | ||||||||||||||
| 180 | New York State Environmental Facilities Corporation, Infrastructure Revenue Bonds, Series 2003A, 5.000%, 3/15/21 | 3/14 at 100.00 | AA– | 184,214 | ||||||||||||||
New York State Environmental Facilities Corporation, State Personal Income Tax Revenue Bonds, Series 2008A: | ||||||||||||||||||
| 5,050 | 5.000%, 12/15/26 (UB) | 12/17 at 100.00 | AAA | 5,427,538 | ||||||||||||||
| 60 | 5.000%, 12/15/27 (UB) | 12/17 at 100.00 | AAA | 64,721 | ||||||||||||||
| 2,100 | New York State Housing Finance Agency, State Personal Income Tax Revenue Bonds, Economic Development and Housing, Series 2006A, 5.000%, 3/15/36 | 9/15 at 100.00 | AAA | 2,112,285 | ||||||||||||||
| 1,000 | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second General, Series 2004A, 5.000%, 4/01/23 – NPFG Insured | 4/14 at 100.00 | AA | 1,027,050 | ||||||||||||||
| 1,500 | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second General, Series 2005B, 5.000%, 4/01/21 – AMBAC Insured | 10/15 at 100.00 | AA | 1,621,770 | ||||||||||||||
| 5,500 | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2005B, Trust 2800, 5.500%, 4/01/20 – AMBAC Insured (UB) (5) | No Opt. Call | AA | 6,509,910 | ||||||||||||||
| Nuveen Investments | 51 |
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 5,000 | New York State Thruway Authority, Second General Highway and Bridge Trust Fund Bonds, Series 2011A-1, 5.000%, 4/01/31 | 4/21 at 100.00 | AA | $ | 5,175,200 | ||||||||||||
| 1,500 | New York State Thruway Authority, State Personal Income Tax Revenue Bonds, Series 2004A, 5.000%, 3/15/24 – AMBAC Insured | 9/14 at 100.00 | AAA | 1,570,785 | ||||||||||||||
| 10,000 | New York State Thruway Authority, State Personal Income Tax Revenue Bonds, Transportation Series 2012A, 5.000%, 3/15/29 | 9/21 at 100.00 | AAA | 10,513,100 | ||||||||||||||
New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: | ||||||||||||||||||
| 7,200 | 5.250%, 6/01/20 – AMBAC Insured | 12/13 at 100.00 | AA– | 7,201,080 | ||||||||||||||
| 3,005 | 5.250%, 6/01/21 – AMBAC Insured | 12/13 at 100.00 | AA– | 3,013,895 | ||||||||||||||
| 10,345 | 5.250%, 6/01/22 – AMBAC Insured | 12/13 at 100.00 | AA– | 10,375,621 | ||||||||||||||
| 3,000 | New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 | 12/13 at 100.00 | AA– | 3,013,110 | ||||||||||||||
| 960 | New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 – AGM Insured | 3/15 at 100.00 | AAA | 998,803 | ||||||||||||||
| 1,045 | New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Series 2011A, 5.000%, 3/15/29 | 3/21 at 100.00 | AAA | 1,095,787 | ||||||||||||||
| 675 | Niagara Falls City School District, Niagara County, New York, Certificates of Participation, High School Facility, Series 2005, 5.000%, 6/15/28 – AGM Insured | 6/15 at 100.00 | AA– | 683,431 | ||||||||||||||
| 4,000 | Puerto Rico Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series 2002E, 5.500%, 7/01/18 – AGM Insured | No Opt. Call | AA– | 4,115,920 | ||||||||||||||
| 5,000 | Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/30 – FGIC Insured | No Opt. Call | BBB+ | 1,283,950 | ||||||||||||||
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2009A: | ||||||||||||||||||
| 5,670 | 0.000%, 8/01/32 | 8/26 at 100.00 | A+ | 4,693,569 | ||||||||||||||
| 10,845 | 6.500%, 8/01/44 | 8/19 at 100.00 | A+ | 10,266,311 | ||||||||||||||
| 1,150 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 5.250%, 8/01/57 | 8/17 at 100.00 | AA– | 964,540 | ||||||||||||||
| 2,385 | Syracuse Industrial Development Authority, New York, PILOT Mortgage Revenue Bonds, Carousel Center Project, Series 2007A, 5.000%, 1/01/36 – SYNCORA GTY Insured (Alternative Minimum Tax) | 1/17 at 100.00 | A+ | 2,195,154 | ||||||||||||||
| 219,815 | Total Tax Obligation/Limited | 220,633,965 | ||||||||||||||||
Transportation – 13.0% | ||||||||||||||||||
| 2,605 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2003A, 5.000%, 11/15/25 – AGM Insured | 11/13 at 100.00 | AA– | 2,628,445 | ||||||||||||||
| 2,000 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2006A, 5.000%, 11/15/31 | 11/16 at 100.00 | A | 2,049,840 | ||||||||||||||
| 4,845 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2010D, 5.250%, 11/15/40 | 11/20 at 100.00 | A | 4,893,789 | ||||||||||||||
| 3,520 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013A, 5.000%, 11/15/31 | 5/23 at 100.00 | A | 3,584,803 | ||||||||||||||
| 2,500 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013B, 5.000%, 11/15/32 | 5/23 at 100.00 | A | 2,520,875 | ||||||||||||||
| 1,000 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013C, 5.000%, 11/15/32 | 5/23 at 100.00 | A | 1,013,750 | ||||||||||||||
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Bronx Parking Development Company, LLC Project, Series 2007: | ||||||||||||||||||
| 2,800 | 5.750%, 10/01/37 (6) | 10/17 at 100.00 | N/R | 1,175,776 | ||||||||||||||
| 2,000 | 5.875%, 10/01/46 (7) | 10/17 at 102.00 | N/R | 839,840 | ||||||||||||||
| 52 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Transportation (continued) | ||||||||||||||||||
| $ | 1,905 | New York City Industrial Development Agency, New York, Special Facilities Revenue Bonds, British Airways PLC, Series 1998, 5.250%, 12/01/32 (Alternative Minimum Tax) | 12/13 at 100.00 | BB | $ | 1,623,079 | ||||||||||||
| 3,500 | New York City Industrial Development Agency, New York, Special Facilities Revenue Bonds, JFK Airport – American Airlines Inc., Series 2002B, 8.500%, 8/01/28 (Alternative Minimum Tax) | 8/14 at 100.00 | N/R | 3,790,045 | ||||||||||||||
| 3,670 | New York City Industrial Development Agency, New York, Special Facilities Revenue Bonds, Terminal One Group JFK Project, Series 2005, 5.500%, 1/01/24 (Alternative Minimum Tax) | 1/16 at 100.00 | A3 | 3,946,791 | ||||||||||||||
| 40 | New York City Industrial Development Agency, New York, Special Facility Revenue Bonds, JetBlue Airways Corporation Project, Series 2006, 5.000%, 5/15/20 (Alternative Minimum Tax) | 11/13 at 100.00 | B– | 38,626 | ||||||||||||||
| 9,500 | New York City, Industrial Development Agency, Senior Airport Facilities Revenue Refunding Bonds, TrIPs Obligated Group, Series 2012A, 5.000%, 7/01/28 (Alternative Minimum Tax) | No Opt. Call | BBB– | 8,644,145 | ||||||||||||||
| 3,040 | New York Liberty Development Corporation, Liberty Revenue Bonds, 4 World Trade Center Project, Series 2011, 5.000%, 11/15/44 | 11/21 at 100.00 | A+ | 2,946,398 | ||||||||||||||
| 580 | New York State Thruway Authority, General Revenue Bonds, Refunding Series 2007H, 5.000%, 1/01/25 – FGIC Insured | 1/18 at 100.00 | A+ | 617,891 | ||||||||||||||
| 295 | New York State Thruway Authority, General Revenue Bonds, Series 2005F, 5.000%, 1/01/30 – AMBAC Insured | 1/15 at 100.00 | A+ | 305,275 | ||||||||||||||
New York State Thruway Authority, General Revenue Bonds, Series 2005G: | ||||||||||||||||||
| 1,600 | 5.000%, 1/01/30 – AGM Insured | 7/15 at 100.00 | AA– | 1,642,048 | ||||||||||||||
| 3,250 | 5.000%, 1/01/32 – AGM Insured | 7/15 at 100.00 | AA– | 3,242,038 | ||||||||||||||
Niagara Frontier Airport Authority, New York, Airport Revenue Bonds, Buffalo Niagara International Airport, Series 1998: | ||||||||||||||||||
| 1,000 | 5.000%, 4/01/18 – FGIC Insured (Alternative Minimum Tax) | 10/13 at 100.00 | A | 1,000,050 | ||||||||||||||
| 1,500 | 5.000%, 4/01/28 – FGIC Insured (Alternative Minimum Tax) | 10/13 at 100.00 | A | 1,398,270 | ||||||||||||||
| 4,000 | Niagara Frontier Airport Authority, New York, Airport Revenue Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 – NPFG Insured (Alternative Minimum Tax) | 10/13 at 100.00 | A | 4,044,200 | ||||||||||||||
| 5,000 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fifty Second Series 2007, 5.000%, 11/01/28 (Alternative Minimum Tax) | 5/18 at 100.00 | AA– | 5,091,300 | ||||||||||||||
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fortieth Series 2005: | ||||||||||||||||||
| 500 | 5.000%, 12/01/19 – AGM Insured | 6/15 at 101.00 | AA– | 542,555 | ||||||||||||||
| 2,000 | 5.000%, 12/01/28 – SYNCORA GTY Insured | 6/15 at 101.00 | AA– | 2,118,060 | ||||||||||||||
| 1,725 | 5.000%, 12/01/31 – SYNCORA GTY Insured | 6/15 at 101.00 | AA– | 1,767,245 | ||||||||||||||
| 1,535 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Forty Eighth Series 2007, Trust 2920, 17.694%, 8/15/32 – AGM Insured (IF) | 8/17 at 100.00 | AA– | 1,786,801 | ||||||||||||||
| 3,585 | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/36 | 12/20 at 100.00 | BBB | 3,932,924 | ||||||||||||||
| 4,585 | Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/25 – NPFG Insured (Alternative Minimum Tax) | 12/13 at 100.00 | A | 4,675,921 | ||||||||||||||
| 250 | Puerto Rico Ports Authority, Special Facilities Revenue Bonds, American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) (4) | 12/13 at 100.00 | N/R | 248,750 | ||||||||||||||
| 15,000 | Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Refunding Series 2011A, 5.000%, 1/01/28 | 1/22 at 100.00 | AA– | 15,857,398 | ||||||||||||||
| 1,560 | Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Refunding Subordinate Lien Series 2002E, 5.500%, 11/15/20 – NPFG Insured | No Opt. Call | A+ | 1,851,767 | ||||||||||||||
| Nuveen Investments | 53 |
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Transportation (continued) | ||||||||||||||||||
| $ | 1,500 | Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Refunding Bonds, Series2008C, Tender Option Bond Trust 1184, 9.231%, 5/15/16 (IF) | No Opt. Call | AA– | $ | 1,549,260 | ||||||||||||
| 92,390 | Total Transportation | 91,367,955 | ||||||||||||||||
U.S. Guaranteed – 2.0% (8) | ||||||||||||||||||
| 2,360 | Dormitory Authority of the State of New York, Revenue Bonds, The New York and Presbyterian Hospital Project, Series 2007, 5.000%, 8/15/36 (Pre-refunded 8/15/14) – AGM Insured | 8/14 at 100.00 | AA– (8) | 2,466,648 | ||||||||||||||
| 650 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 (Pre-refunded 3/15/15) – AGM Insured | 3/15 at 100.00 | AA– (8) | 696,378 | ||||||||||||||
| 220 | Dormitory Authority of the State of New York, Suffolk County, Lease Revenue Bonds, Judicial Facilities, Series 1991A, 9.500%, 4/15/14 – FGIC Insured (ETM) | 10/13 at 100.81 | Baa1 (8) | 227,438 | ||||||||||||||
| 1,100 | Erie County Industrial Development Agency, New York, School Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 (Pre-refunded 5/01/14) – AGM Insured | 5/14 at 100.00 | AA– (8) | 1,140,777 | ||||||||||||||
| 335 | Erie County Water Authority, New York, Water Revenue Bonds, Series 1990B, 6.750%, 12/01/14 – AMBAC Insured (ETM) | No Opt. Call | N/R (8) | 349,552 | ||||||||||||||
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997B: | ||||||||||||||||||
| 855 | 5.000%, 7/01/20 – AMBAC Insured (ETM) | 11/13 at 100.00 | N/R (8) | 892,646 | ||||||||||||||
| 1,295 | 5.125%, 7/01/24 – AMBAC Insured (ETM) | 11/13 at 100.00 | N/R (8) | 1,331,390 | ||||||||||||||
New York City, New York, General Obligation Bonds, Fiscal Series 2004E: | ||||||||||||||||||
| 600 | 5.000%, 11/01/19 (Pre-refunded 11/01/14) – AGM Insured | 11/14 at 100.00 | Aa2 (8) | 633,636 | ||||||||||||||
| 125 | 5.000%, 11/01/20 (Pre-refunded 11/01/14) – AGM Insured | 11/14 at 100.00 | Aa2 (8) | 132,008 | ||||||||||||||
| 265 | New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 (Pre-refunded 3/15/15) – AGM Insured | 3/15 at 100.00 | AA– (8) | 283,823 | ||||||||||||||
| 4,000 | Suffolk County Water Authority, New York, Waterworks Revenue Bonds, Series 2005C, 5.000%, 6/01/28 (Pre-refunded 6/01/15) – NPFG Insured | 6/15 at 100.00 | AAA | 4,312,480 | ||||||||||||||
Yonkers, New York, General Obligation Bonds, Series 2005B: | ||||||||||||||||||
| 490 | 5.000%, 8/01/17 (Pre-refunded 8/01/15) | 8/15 at 100.00 | Baa1 (8) | 532,890 | ||||||||||||||
| 515 | 5.000%, 8/01/18 (Pre-refunded 8/01/15) | 8/15 at 100.00 | Baa1 (8) | 560,078 | ||||||||||||||
| 12,810 | Total U.S. Guaranteed | 13,559,744 | ||||||||||||||||
Utilities – 10.0% | ||||||||||||||||||
| 3,025 | Chautauqua County Industrial Development Agency, New York, Exempt Facility Revenue Bonds, NRG Dunkirk Power Project, Series 2009, 5.875%, 4/01/42 | 2/20 at 100.00 | Baa3 | 3,006,154 | ||||||||||||||
| 1,200 | Guam Power Authority, Revenue Bonds, Series 2010A, 5.000%, 10/01/37 – AGM Insured | 10/20 at 100.00 | AA– | 1,173,648 | ||||||||||||||
| 420 | Guam Power Authority, Revenue Bonds, Series 2012A, 5.000%, 10/01/34 | 10/22 at 100.00 | BBB | 395,459 | ||||||||||||||
| 6,000 | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A, 0.000%, 12/01/19 – AGM Insured | No Opt. Call | AA– | 5,141,940 | ||||||||||||||
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A: | ||||||||||||||||||
| 2,350 | 0.000%, 6/01/20 – AGM Insured | No Opt. Call | AA– | 1,953,978 | ||||||||||||||
| 2,000 | 0.000%, 6/01/24 – AGM Insured | No Opt. Call | AA– | 1,319,800 | ||||||||||||||
| 2,000 | 0.000%, 6/01/25 – AGM Insured | No Opt. Call | AA– | 1,239,760 | ||||||||||||||
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: | ||||||||||||||||||
| 8,800 | 5.000%, 12/01/23 – FGIC Insured | 6/16 at 100.00 | A | 9,227,328 | ||||||||||||||
| 1,200 | 5.000%, 12/01/24 – FGIC Insured | 6/16 at 100.00 | A | 1,257,168 | ||||||||||||||
| 2,615 | 5.000%, 12/01/25 – FGIC Insured | 6/16 at 100.00 | A | 2,727,576 | ||||||||||||||
| 54 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Utilities (continued) | ||||||||||||||||||
| $ | 1,050 | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006B, 5.000%, 12/01/35 – CIFG Insured | 6/16 at 100.00 | A | $ | 1,047,123 | ||||||||||||
| 5,000 | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006C, 5.000%, 9/01/35 – BHAC Insured | 9/16 at 100.00 | AA+ | 5,009,650 | ||||||||||||||
| 2,130 | Long Island Power Authority, New York, Electric System Revenue Bonds, Refunding Series 2009A, 5.700%, 4/01/30 | 4/19 at 100.00 | A | 2,260,313 | ||||||||||||||
Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2008A: | ||||||||||||||||||
| 10,250 | 6.000%, 5/01/33 | 5/19 at 100.00 | A | 11,178,546 | ||||||||||||||
| 5,000 | 5.500%, 5/01/33 – BHAC Insured | 5/19 at 100.00 | AA+ | 5,376,800 | ||||||||||||||
| 2,400 | Nassau County Industrial Development Authority, New York, Keyspan Glenwood Energy Project, Series 2003, 5.250%, 6/01/27 (Alternative Minimum Tax) | 12/13 at 100.00 | A– | 2,406,024 | ||||||||||||||
| 1,000 | New York State Energy Research and Development Authority, Electric Facilities Revenue Bonds, Long Island Lighting Company, Series 1995A, 5.300%, 8/01/25 – NPFG Insured (Alternative Minimum Tax) | 3/14 at 100.00 | A | 1,003,280 | ||||||||||||||
| 11,785 | Niagara Area Development Corporation, New York, Solid Waste Disposal Facility Revenue Refunding Bonds, Covanta Energy Project, Series 2012A, 5.250%, 11/01/42 | No Opt. Call | BB+ | 9,683,852 | ||||||||||||||
| 520 | Power Authority of the State of New York, General Revenue Bonds, Series 2006A, 5.000%, 11/15/19 – FGIC Insured | 11/15 at 100.00 | Aa2 | 569,738 | ||||||||||||||
| 4,000 | Suffolk County Industrial Development Agency, New York, Revenue Bonds, Nissequogue Cogeneration Partners Facility, Series 1998, 5.500%, 1/01/23 (Alternative Minimum Tax) | 1/14 at 100.00 | N/R | 3,749,520 | ||||||||||||||
| 72,745 | Total Utilities | 69,727,657 | ||||||||||||||||
Water and Sewer – 5.9% | ||||||||||||||||||
| 3,400 | New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Fiscal 2009 Series 2008A, 5.750%, 6/15/40 | No Opt. Call | AAA | 3,751,526 | ||||||||||||||
| 3,035 | New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Fiscal 2011 Series 2010BB, 5.000%, 6/15/31 | No Opt. Call | AA+ | 3,131,725 | ||||||||||||||
| 6,000 | New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Fiscal 2012 Series BB, 5.000%, 6/15/44 | 12/21 at 100.00 | AA+ | 6,019,740 | ||||||||||||||
| 2,105 | New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Series 2006B, 5.000%, 6/15/36 – NPFG Insured | 6/16 at 100.00 | AAA | 2,113,546 | ||||||||||||||
New York City Municipal Water Finance Authority, New York, Water and Sewer System Second General Resolution Revenue Bonds, Fiscal 2013 Series DD: | ||||||||||||||||||
| 5,000 | 5.000%, 6/15/34 | 6/23 at 100.00 | AA+ | 5,128,150 | ||||||||||||||
| 12,500 | 5.000%, 6/15/35 | 6/23 at 100.00 | AA+ | 12,800,623 | ||||||||||||||
| 3,000 | New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds, New York City Municipal Water Finance Authority Projects, Series 2006A, 4.750%, 6/15/29 | 6/16 at 100.00 | AAA | 3,038,850 | ||||||||||||||
| 2,950 | Niagara Falls Public Water Authority, New York, Water and Sewerage Revenue Bonds, Series 2005, 5.000%, 7/15/27 – SYNCORA GTY Insured | 7/15 at 100.00 | BBB– | 2,973,158 | ||||||||||||||
| 1,520 | Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 6.000%, 7/01/38 | 7/18 at 100.00 | BBB– | 1,145,563 | ||||||||||||||
| Nuveen Investments | 55 |
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Water and Sewer (continued) | ||||||||||||||||||
| $ | 1,455 | Western Nassau County Water Authority, New York, Water System Revenue Bonds, Series 2005, 5.000%, 5/01/18 – AMBAC Insured | 5/15 at 100.00 | AA– | $ | 1,544,235 | ||||||||||||
| 40,965 | Total Water and Sewer | 41,647,116 | ||||||||||||||||
| $ | 701,490 | Total Investments (cost $705,992,087) – 99.3% | 695,784,310 | |||||||||||||||
Floating Rate Obligation (1.1%) | (7,955,000) | |||||||||||||||||
Other Assets Less Liabilities – 1.8% | 12,652,717 | |||||||||||||||||
Net Assets – 100% | $ | 700,482,027 | ||||||||||||||||
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |||
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |||
| (3) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |||
| (4) | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. | |||
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |||
| (6) | On April 1, 2013, the Fund’s Adviser determined it was unlikely that this borrower would fulfill its entire obligation on this security, and therefore reduced the security’s interest rate of accrual from 5.750% to 2.300%. | |||
| (7) | On April 1, 2013, the Fund’s Adviser determined it was unlikely that this borrower would fulfill its entire obligation on this security, and therefore reduced the security’s interest rate of accrual from 5.875% to 2.350%. | |||
| (8) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |||
| (ETM) | Escrowed to maturity. | |||
| (IF) | Inverse floating rate investment. | |||
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information. | |||
See accompanying notes to financial statements.
| 56 | Nuveen Investments |
Statement of Assets and Liabilities (Unaudited)
August 31, 2013
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Assets | ||||||||||||||||
Investments, at value (cost $340,229,279, $265,348,472, $286,766,261 and $705,992,087, respectively) | $ | 333,690,245 | $ | 260,432,167 | $ | 283,878,127 | $ | 695,784,310 | ||||||||
Cash | — | 1,856,849 | — | — | ||||||||||||
Receivable for: | ||||||||||||||||
Interest | 3,452,787 | 3,299,045 | 3,388,264 | 9,340,064 | ||||||||||||
Investments sold | 6,040,012 | 1,102,110 | 2,633,184 | 11,920,330 | ||||||||||||
Shares sold | 875,331 | 1,014,113 | 1,485,176 | 975,635 | ||||||||||||
Other assets | 34,348 | 1,564 | 4,518 | 89,028 | ||||||||||||
Total assets | 344,092,723 | 267,705,848 | 291,389,269 | 718,109,367 | ||||||||||||
Liabilities | ||||||||||||||||
Cash overdraft | 589,644 | — | 1,922,698 | 1,341,876 | ||||||||||||
Floating rate obligations | 10,000,000 | — | — | 7,955,000 | ||||||||||||
Payable for: | ||||||||||||||||
Dividends | 309,467 | 139,065 | 216,398 | 421,738 | ||||||||||||
Investments purchased | — | 965,540 | 87,622 | 4,809,116 | ||||||||||||
Shares redeemed | 3,359,563 | 970,020 | 696,950 | 2,387,663 | ||||||||||||
Accrued expenses: | ||||||||||||||||
Management fees | 147,394 | 129,075 | 128,706 | 310,674 | ||||||||||||
Trustees fees | 34,522 | 975 | 4,344 | 100,537 | ||||||||||||
12b-1 distribution and service fees | 75,968 | 37,047 | 61,845 | 114,713 | ||||||||||||
Other | 82,063 | 79,902 | 72,207 | 186,023 | ||||||||||||
Total liabilities | 14,598,621 | 2,321,624 | 3,190,770 | 17,627,340 | ||||||||||||
Net assets | $ | 329,494,102 | $ | 265,384,224 | $ | 288,198,499 | $ | 700,482,027 | ||||||||
Class A Shares | ||||||||||||||||
Net assets | $ | 233,565,895 | $ | 94,846,051 | $ | 159,359,788 | $ | 330,043,733 | ||||||||
Shares outstanding | 23,119,810 | 9,979,655 | 15,069,762 | 32,048,585 | ||||||||||||
Net asset value per share | $ | 10.10 | $ | 9.50 | $ | 10.57 | $ | 10.30 | ||||||||
Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering price) | $ | 10.54 | $ | 9.92 | $ | 11.03 | $ | 10.75 | ||||||||
Class B Shares | ||||||||||||||||
Net assets | $ | 564,844 | $ | 610,898 | $ | 985,278 | $ | 2,423,022 | ||||||||
Shares outstanding | 56,006 | 64,204 | 93,132 | 235,473 | ||||||||||||
Net asset value and offering price per share | $ | 10.09 | $ | 9.51 | $ | 10.58 | $ | 10.29 | ||||||||
Class C Shares | ||||||||||||||||
Net assets | $ | 52,081,619 | $ | 30,224,492 | $ | 50,359,116 | $ | 83,291,586 | ||||||||
Shares outstanding | 5,161,830 | 3,206,811 | 4,779,057 | 8,091,255 | ||||||||||||
Net asset value and offering price per share | $ | 10.09 | $ | 9.43 | $ | 10.54 | $ | 10.29 | ||||||||
Class I Shares | ||||||||||||||||
Net assets | $ | 43,281,744 | $ | 139,702,783 | $ | 77,494,317 | $ | 284,723,686 | ||||||||
Shares outstanding | 4,268,991 | 14,721,501 | 7,303,148 | 27,609,079 | ||||||||||||
Net asset value and offering price per share | $ | 10.14 | $ | 9.49 | $ | 10.61 | $ | 10.31 | ||||||||
Net assets consist of: | ||||||||||||||||
Capital paid-in | $ | 336,072,836 | $ | 272,458,832 | $ | 290,702,644 | $ | 713,617,131 | ||||||||
Undistrubuted (Over-distribution of) net investment income | 808,668 | 1,125,373 | 1,321,211 | 2,136,716 | ||||||||||||
Accumulated net realized gain (loss) | (848,368 | ) | (3,283,676 | ) | (937,222 | ) | (5,064,043 | ) | ||||||||
Net unrealized appreciation (depreciation) | (6,539,034 | ) | (4,916,305 | ) | (2,888,134 | ) | (10,207,777 | ) | ||||||||
Net assets | $ | 329,494,102 | $ | 265,384,224 | $ | 288,198,499 | $ | 700,482,027 | ||||||||
Authorized shares–per class | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
Par value per share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||
See accompanying notes to financial statements.
| Nuveen Investments | 57 |
Statement of Operations (Unaudited)
Six Months Ended August 31, 2013
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Investment Income | $ | 8,167,718 | $ | 5,471,466 | $ | 6,972,808 | $ | 16,452,196 | ||||||||
Expenses | ||||||||||||||||
Management fees | 931,816 | 653,419 | 806,831 | 1,877,999 | ||||||||||||
12b-1 service fees – Class A | 258,150 | 102,097 | 172,673 | 345,969 | ||||||||||||
12b-1 distribution and service fees – Class B | 3,780 | 4,006 | 6,209 | 14,456 | ||||||||||||
12b-1 distribution and service fees – Class C | 225,826 | 131,219 | 212,456 | 354,824 | ||||||||||||
Shareholder servicing agent fees and expenses | 84,915 | 71,053 | 79,779 | 214,294 | ||||||||||||
Interest expenses | 16,990 | — | — | 15,892 | ||||||||||||
Custodian fees and expenses | 33,179 | 25,194 | 32,621 | 65,906 | ||||||||||||
Trustees fees and expenses | 4,586 | 3,065 | 4,025 | 9,433 | ||||||||||||
Professional fees | 18,512 | 16,699 | 17,529 | 25,779 | ||||||||||||
Shareholder reporting expenses | 18,748 | 17,936 | 19,393 | 45,344 | ||||||||||||
Federal and state registration fees | 3,684 | 10,600 | 3,331 | 5,369 | ||||||||||||
Other expenses | 7,297 | 5,727 | 6,966 | 13,979 | ||||||||||||
Total expenses | 1,607,483 | 1,041,015 | 1,361,813 | 2,989,244 | ||||||||||||
Net investment income (loss) | 6,560,235 | 4,430,451 | 5,610,995 | 13,462,952 | ||||||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) from investments | (899,178 | ) | (324,243 | ) | 176,675 | (5,605,514 | ) | |||||||||
Change in net unrealized appreciation (depreciation) of investments | (31,956,647 | ) | (23,176,993 | ) | (29,897,497 | ) | (63,848,883 | ) | ||||||||
Net realized and unrealized gain (loss) | (32,855,825 | ) | (23,501,236 | ) | (29,720,822 | ) | (69,454,397 | ) | ||||||||
Net increase (decrease) in net assets from operations | $ | (26,295,590 | ) | $ | (19,070,785 | ) | $ | (24,109,827 | ) | $ | (55,991,445 | ) | ||||
See accompanying notes to financial statements.
| 58 | Nuveen Investments |
Statement of Changes in Net Assets (Unaudited)
| Connecticut | Massachusetts | |||||||||||||||
| Six Months Ended 8/31/13 | Year Ended 2/28/13 | Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 6,560,235 | $ | 13,454,538 | $ | 4,430,451 | $ | 9,654,149 | ||||||||
Net realized gain (loss) from investments | (899,178 | ) | 262,326 | (324,243 | ) | (2,854,151 | ) | |||||||||
Change in net unrealized appreciation (depreciation) of investments | (31,956,647 | ) | 2,522,770 | (23,176,993 | ) | 6,773,534 | ||||||||||
Net increase (decrease) in net assets from operations | (26,295,590 | ) | 16,239,634 | (19,070,785 | ) | 13,573,532 | ||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A | (4,575,729 | ) | (9,520,427 | ) | (1,859,817 | ) | (3,571,958 | ) | ||||||||
Class B | (11,186 | ) | (39,872 | ) | (12,094 | ) | (33,655 | ) | ||||||||
Class C | (901,230 | ) | (1,876,405 | ) | (538,702 | ) | (1,010,707 | ) | ||||||||
Class I | (936,730 | ) | (1,758,284 | ) | (2,264,550 | ) | (3,876,564 | ) | ||||||||
From accumulated net realized gains: | ||||||||||||||||
Class A | — | (176,115 | ) | — | — | |||||||||||
Class B | — | (775 | ) | — | — | |||||||||||
Class C | — | (41,191 | ) | — | — | |||||||||||
Class I | — | (31,228 | ) | — | — | |||||||||||
Decrease in net assets from distributions to shareholders | (6,424,875 | ) | (13,444,297 | ) | (4,675,163 | ) | (8,492,884 | ) | ||||||||
Fund Share Transactions | ||||||||||||||||
Proceeds from sale of shares | 39,699,547 | 56,156,930 | 88,188,465 | 36,271,395 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 4,434,521 | 8,732,311 | 3,781,767 | 6,367,725 | ||||||||||||
| 44,134,068 | 64,889,241 | 91,970,232 | 42,639,120 | |||||||||||||
Cost of shares redeemed | (65,633,272 | ) | (45,150,991 | ) | (46,932,230 | ) | (27,534,229 | ) | ||||||||
Net increase (decrease) in net assets from Fund share transactions | (21,499,204 | ) | 19,738,250 | 45,038,002 | 15,104,891 | |||||||||||
Net increase (decrease) in net assets | (54,219,669 | ) | 22,533,587 | 21,292,054 | 20,185,539 | |||||||||||
Net assets at the beginning of period | 383,713,771 | 361,180,184 | 244,092,170 | 223,906,631 | ||||||||||||
Net assets at the end of period | $ | 329,494,102 | $ | 383,713,771 | $ | 265,384,224 | $ | 244,092,170 | ||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 808,668 | $ | 673,308 | $ | 1,125,373 | $ | 1,370,085 | ||||||||
See accompanying notes to financial statements.
| Nuveen Investments | 59 |
Statement of Changes in Net Assets (Unaudited) (continued)
| New Jersey | New York | |||||||||||||||
| Six Months Ended 8/31/13 | Year Ended 2/28/13 | Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 5,610,995 | $ | 10,839,863 | $ | 13,462,952 | $ | 27,270,949 | ||||||||
Net realized gain (loss) from investments | 176,675 | 1,056,792 | (5,605,514 | ) | 1,731,835 | |||||||||||
Change in net unrealized appreciation (depreciation) of investments | (29,897,497 | ) | 7,513,749 | (63,848,883 | ) | 7,279,114 | ||||||||||
Net increase (decrease) in net assets from operations | (24,109,827 | ) | 19,410,404 | (55,991,445 | ) | 36,281,898 | ||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A | (3,023,941 | ) | (5,804,535 | ) | (5,929,737 | ) | (11,592,874 | ) | ||||||||
Class B | (18,049 | ) | (68,995 | ) | (40,503 | ) | (112,943 | ) | ||||||||
Class C | (831,315 | ) | (1,676,829 | ) | (1,363,677 | ) | (2,833,694 | ) | ||||||||
Class I | (1,622,685 | ) | (3,389,400 | ) | (5,741,800 | ) | (12,311,630 | ) | ||||||||
From accumulated net realized gains: | ||||||||||||||||
Class A | — | — | — | (369,596 | ) | |||||||||||
Class B | — | — | — | (4,061 | ) | |||||||||||
Class C | — | — | — | (104,903 | ) | |||||||||||
Class I | — | — | — | (359,272 | ) | |||||||||||
Decrease in net assets from distributions to shareholders | (5,495,990 | ) | (10,939,759 | ) | (13,075,717 | ) | (27,688,973 | ) | ||||||||
Fund Share Transactions | ||||||||||||||||
Proceeds from sale of shares | 46,356,999 | 67,522,062 | 83,058,135 | 101,731,182 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 4,083,290 | 7,504,416 | 10,405,827 | 21,103,747 | ||||||||||||
| 50,440,289 | 75,026,478 | 93,463,962 | 122,834,929 | |||||||||||||
Cost of shares redeemed | (53,948,655 | ) | (35,638,824 | ) | (101,402,013 | ) | (92,216,723 | ) | ||||||||
Net increase (decrease) in net assets from Fund share transactions | (3,508,366 | ) | 39,387,654 | (7,938,051 | ) | 30,618,206 | ||||||||||
Net increase (decrease) in net assets | (33,114,183 | ) | 47,858,299 | (77,005,213 | ) | 39,211,131 | ||||||||||
Net assets at the beginning of period | 321,312,682 | 273,454,383 | 777,487,240 | 738,276,109 | ||||||||||||
Net assets at the end of period | $ | 288,198,499 | $ | 321,312,682 | $ | 700,482,027 | $ | 777,487,240 | ||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 1,321,211 | $ | 1,206,206 | $ | 2,136,716 | $ | 1,749,481 | ||||||||
See accompanying notes to financial statements.
| 60 | Nuveen Investments |
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| Nuveen Investments | 61 |
Financial Highlights (Unaudited)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| CONNECTICUT | ||||||||||||||||||||||||||||||||
| Year Ended February 28/29, | Beginning Net Asset Value | Net Invest- | Net Realized/ Unrealized Gain (Loss) | Total | From Net Invest- ment Income | From Accum- ulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (7/87) |
| |||||||||||||||||||||||||||||||
2014(e) | $ | 11.07 | $ | .20 | $ | (.98 | ) | $ | (.78 | ) | $ | (.19 | ) | $ | — | $ | (.19 | ) | $ | 10.10 | ||||||||||||
2013 | 10.98 | .40 | .10 | .50 | (.40 | ) | (.01 | ) | (.41 | ) | 11.07 | |||||||||||||||||||||
2012 | 10.19 | .43 | .81 | 1.24 | (.42 | ) | (.03 | ) | (.45 | ) | 10.98 | |||||||||||||||||||||
2011 | 10.49 | .42 | (.30 | ) | .12 | (.42 | ) | — | * | (.42 | ) | 10.19 | ||||||||||||||||||||
2010 | 9.77 | .43 | .71 | 1.14 | (.42 | ) | — | (.42 | ) | 10.49 | ||||||||||||||||||||||
2009 | 10.01 | .42 | (.21 | ) | .21 | (.42 | ) | (.03 | ) | (.45 | ) | 9.77 | ||||||||||||||||||||
Class B (2/97) |
| |||||||||||||||||||||||||||||||
2014(e) | 11.05 | .16 | (.97 | ) | (.81 | ) | (.15 | ) | — | (.15 | ) | 10.09 | ||||||||||||||||||||
2013 | 10.97 | .32 | .09 | .41 | (.32 | ) | (.01 | ) | (.33 | ) | 11.05 | |||||||||||||||||||||
2012 | 10.19 | .35 | .80 | 1.15 | (.34 | ) | (.03 | ) | (.37 | ) | 10.97 | |||||||||||||||||||||
2011 | 10.48 | .34 | (.29 | ) | .05 | (.34 | ) | — | * | (.34 | ) | 10.19 | ||||||||||||||||||||
2010 | 9.77 | .35 | .71 | 1.06 | (.35 | ) | — | (.35 | ) | 10.48 | ||||||||||||||||||||||
2009 | 10.00 | .35 | (.21 | ) | .14 | (.34 | ) | (.03 | ) | (.37 | ) | 9.77 | ||||||||||||||||||||
Class C (10/93) |
| |||||||||||||||||||||||||||||||
2014(e) | 11.05 | .17 | (.97 | ) | (.80 | ) | (.16 | ) | — | (.16 | ) | 10.09 | ||||||||||||||||||||
2013 | 10.97 | .34 | .09 | .43 | (.34 | ) | (.01 | ) | (.35 | ) | 11.05 | |||||||||||||||||||||
2012 | 10.19 | .37 | .81 | 1.18 | (.37 | ) | (.03 | ) | (.40 | ) | 10.97 | |||||||||||||||||||||
2011 | 10.48 | .36 | (.28 | ) | .08 | (.37 | ) | — | * | (.37 | ) | 10.19 | ||||||||||||||||||||
2010 | 9.77 | .37 | .71 | 1.08 | (.37 | ) | — | (.37 | ) | 10.48 | ||||||||||||||||||||||
2009 | 10.00 | .37 | (.21 | ) | .16 | (.36 | ) | (.03 | ) | (.39 | ) | 9.77 | ||||||||||||||||||||
Class I (2/97) |
| |||||||||||||||||||||||||||||||
2014(e) | 11.11 | .21 | (.98 | ) | (.77 | ) | (.20 | ) | — | (.20 | ) | 10.14 | ||||||||||||||||||||
2013 | 11.02 | .43 | .09 | .52 | (.42 | ) | (.01 | ) | (.43 | ) | 11.11 | |||||||||||||||||||||
2012 | 10.23 | .45 | .81 | 1.26 | (.44 | ) | (.03 | ) | (.47 | ) | 11.02 | |||||||||||||||||||||
2011 | 10.53 | .45 | (.31 | ) | .14 | (.44 | ) | — | * | (.44 | ) | 10.23 | ||||||||||||||||||||
2010 | 9.81 | .45 | .71 | 1.16 | (.44 | ) | — | (.44 | ) | 10.53 | ||||||||||||||||||||||
2009 | 10.05 | .44 | (.21 | ) | .23 | (.44 | ) | (.03 | ) | (.47 | ) | 9.81 | ||||||||||||||||||||
| 62 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||
| Ratios to Average Net Assets | ||||||||||||||||||||||
| Total Return(b) | Ending Net Assets (000) | Expenses Including Interest(c) | Expenses Excluding Interest | Net Invest- ment Income (Loss) | Portfolio Turnover Rate(d) | |||||||||||||||||
| (7.10 | )% | $ | 233,566 | .81 | %** | .80 | %** | 3.62 | %** | 7 | % | |||||||||||
| 4.56 | 268,189 | .80 | .79 | 3.65 | 12 | |||||||||||||||||
| 12.40 | 259,183 | .82 | .81 | 4.08 | 9 | |||||||||||||||||
| 1.13 | 255,092 | .81 | .80 | 4.01 | 10 | |||||||||||||||||
| 11.86 | 257,989 | .85 | .83 | 4.20 | 4 | |||||||||||||||||
| 2.20 | 241,958 | .93 | .83 | 4.22 | 14 | |||||||||||||||||
| (7.37 | ) | 565 | 1.55 | ** | 1.54 | ** | 2.85 | ** | 7 | |||||||||||||
| 3.74 | 1,025 | 1.55 | 1.54 | 2.91 | 12 | |||||||||||||||||
| 11.48 | 1,692 | 1.57 | 1.56 | 3.34 | 9 | |||||||||||||||||
| .48 | 2,537 | 1.56 | 1.55 | 3.28 | 10 | |||||||||||||||||
| 10.97 | 5,784 | 1.60 | 1.58 | 3.45 | 4 | |||||||||||||||||
| 1.53 | 9,341 | 1.68 | 1.58 | 3.46 | 14 | |||||||||||||||||
| (7.29 | ) | 52,082 | 1.36 | ** | 1.35 | ** | 3.07 | ** | 7 | |||||||||||||
| 3.90 | 62,912 | 1.35 | 1.34 | 3.10 | 12 | |||||||||||||||||
| 11.72 | 58,829 | 1.37 | 1.36 | 3.53 | 9 | |||||||||||||||||
| .71 | 53,317 | 1.36 | 1.35 | 3.48 | 10 | |||||||||||||||||
| 11.17 | 54,948 | 1.40 | 1.38 | 3.65 | 4 | |||||||||||||||||
| 1.73 | 45,761 | 1.48 | 1.38 | 3.68 | 14 | |||||||||||||||||
| (6.97 | ) | 43,282 | .61 | ** | .60 | ** | 3.82 | %** | 7 | |||||||||||||
| 4.77 | 51,588 | .60 | .59 | 3.85 | 12 | |||||||||||||||||
| 12.60 | 41,475 | .62 | .61 | 4.27 | 9 | |||||||||||||||||
| 1.36 | 31,761 | .61 | .60 | 4.22 | 10 | |||||||||||||||||
| 12.07 | 25,590 | .65 | .63 | 4.40 | 4 | |||||||||||||||||
| 2.44 | 17,875 | .73 | .63 | 4.43 | 14 | |||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (c) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities. |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (e) | For the six months ended August 31, 2013. |
| * | Rounds to less than $.01 per share. |
| ** | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 63 |
Financial Highlights (Unaudited) (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| MASSACHUSETTS | ||||||||||||||||||||||||||||||||
| Year Ended February 28/29, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Invest- ment Income | From Accum- ulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (9/94) |
| |||||||||||||||||||||||||||||||
2014(f) | $ | 10.44 | $ | .18 | $ | (.93 | ) | $ | (.75 | ) | $ | (.19 | ) | $ | — | $ | (.19 | ) | $ | 9.50 | ||||||||||||
2013 | 10.21 | .42 | .19 | .61 | (.38 | ) | — | (.38 | ) | 10.44 | ||||||||||||||||||||||
2012 | 9.47 | .42 | .75 | 1.17 | (.43 | ) | — | (.43 | ) | 10.21 | ||||||||||||||||||||||
2011 | 9.75 | .44 | (.27 | ) | .17 | (.45 | ) | — | (.45 | ) | 9.47 | |||||||||||||||||||||
2010 | 8.81 | .45 | .94 | 1.39 | (.45 | ) | — | (.45 | ) | 9.75 | ||||||||||||||||||||||
2009 | 9.34 | .41 | (.51 | ) | (.10 | ) | (.39 | ) | (.04 | ) | (.43 | ) | 8.81 | |||||||||||||||||||
Class B (3/97) |
| |||||||||||||||||||||||||||||||
2014(f) | 10.45 | .14 | (.93 | ) | (.79 | ) | (.15 | ) | — | (.15 | ) | 9.51 | ||||||||||||||||||||
2013 | 10.23 | .35 | .17 | .52 | (.30 | ) | — | (.30 | ) | 10.45 | ||||||||||||||||||||||
2012 | 9.48 | .35 | .76 | 1.11 | (.36 | ) | — | (.36 | ) | 10.23 | ||||||||||||||||||||||
2011 | 9.76 | .37 | (.27 | ) | .10 | (.38 | ) | — | (.38 | ) | 9.48 | |||||||||||||||||||||
2010 | 8.83 | .38 | .93 | 1.31 | (.38 | ) | — | (.38 | ) | 9.76 | ||||||||||||||||||||||
2009 | 9.35 | .34 | (.50 | ) | (.16 | ) | (.32 | ) | (.04 | ) | (.36 | ) | 8.83 | |||||||||||||||||||
Class C (10/94) |
| |||||||||||||||||||||||||||||||
2014(f) | 10.35 | .15 | (.91 | ) | (.76 | ) | (.16 | ) | — | (.16 | ) | 9.43 | ||||||||||||||||||||
2013 | 10.13 | .36 | .18 | .54 | (.32 | ) | — | (.32 | ) | 10.35 | ||||||||||||||||||||||
2012 | 9.39 | .36 | .76 | 1.12 | (.38 | ) | — | (.38 | ) | 10.13 | ||||||||||||||||||||||
2011 | 9.67 | .39 | (.27 | ) | .12 | (.40 | ) | — | (.40 | ) | 9.39 | |||||||||||||||||||||
2010 | 8.74 | .39 | .93 | 1.32 | (.39 | ) | — | (.39 | ) | 9.67 | ||||||||||||||||||||||
2009 | 9.26 | .36 | (.50 | ) | (.14 | ) | (.34 | ) | (.04 | ) | (.38 | ) | 8.74 | |||||||||||||||||||
Class I (12/86) |
| |||||||||||||||||||||||||||||||
2014(f) | 10.42 | .18 | (.91 | ) | (.73 | ) | (.20 | ) | — | (.20 | ) | 9.49 | ||||||||||||||||||||
2013 | 10.19 | .44 | .18 | .62 | (.39 | ) | — | (.39 | ) | 10.42 | ||||||||||||||||||||||
2012 | 9.45 | .44 | .75 | 1.19 | (.45 | ) | — | (.45 | ) | 10.19 | ||||||||||||||||||||||
2011 | 9.73 | .46 | (.27 | ) | .19 | (.47 | ) | — | (.47 | ) | 9.45 | |||||||||||||||||||||
2010 | 8.80 | .47 | .92 | 1.39 | (.46 | ) | — | (.46 | ) | 9.73 | ||||||||||||||||||||||
2009 | 9.32 | .43 | (.50 | ) | (.07 | ) | (.41 | ) | (.04 | ) | (.45 | ) | 8.80 | |||||||||||||||||||
| 64 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||
| Ratios to Average Net Assets(c) | ||||||||||||||||||||||
| Total Return(b) | Ending | Expenses Including Interest(e) | Expenses Excluding Interest | Net Invest- ment Income (loss) | Portfolio Turnover Rate(d) | |||||||||||||||||
| (7.30 | )% | $ | 94,846 | .83 | %* | .83 | %* | 3.46 | %* | 8 | % | |||||||||||
| 6.01 | 103,508 | .82 | .82 | 4.08 | 11 | |||||||||||||||||
| 12.66 | 92,565 | .95 | .95 | 4.21 | 3 | |||||||||||||||||
| 1.69 | 61,883 | .85 | .85 | 4.54 | 7 | |||||||||||||||||
| 16.03 | 61,382 | .91 | .91 | 4.77 | 5 | |||||||||||||||||
| (1.05 | ) | 45,433 | .91 | .91 | 4.47 | 20 | ||||||||||||||||
| (7.65 | ) | 611 | 1.57 | * | 1.57 | * | 2.71 | * | 8 | |||||||||||||
| 5.13 | 977 | 1.57 | 1.57 | 3.35 | 11 | |||||||||||||||||
| 11.93 | 1,384 | 1.67 | 1.67 | 3.43 | 3 | |||||||||||||||||
| .94 | 741 | 1.60 | 1.60 | 3.80 | 7 | |||||||||||||||||
| 15.04 | 1,402 | 1.65 | 1.65 | 4.03 | 5 | |||||||||||||||||
| (1.69 | ) | 2,741 | 1.67 | 1.67 | 3.71 | 20 | ||||||||||||||||
| (7.45 | ) | 30,224 | 1.38 | * | 1.38 | * | 2.91 | * | 8 | |||||||||||||
| 5.34 | 35,247 | 1.37 | 1.37 | 3.53 | 11 | |||||||||||||||||
| 12.14 | 30,815 | 1.49 | 1.49 | 3.63 | 3 | |||||||||||||||||
| 1.14 | 14,872 | 1.40 | 1.40 | 3.98 | 7 | |||||||||||||||||
| 15.37 | 12,550 | 1.46 | 1.46 | 4.23 | 5 | |||||||||||||||||
| (1.53 | ) | 10,944 | 1.47 | 1.47 | 3.91 | 20 | ||||||||||||||||
| (7.14 | ) | 139,703 | .63 | * | .63 | * | 3.64 | * | 8 | |||||||||||||
| 6.20 | 104,360 | .62 | .62 | 4.29 | 11 | |||||||||||||||||
| 12.89 | 99,142 | .74 | .74 | 4.39 | 3 | |||||||||||||||||
| 1.91 | 52,930 | .65 | .65 | 4.74 | 7 | |||||||||||||||||
| 16.15 | 53,698 | .71 | .71 | 4.98 | 5 | |||||||||||||||||
| (.74 | ) | 47,238 | .72 | .72 | 4.67 | 20 | ||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (c) | Ratios do not reflect the effect of legal fee refund, where applicable. The Fund has a contractual fee waiver/expense reimbursement agreement with the Adviser, but did not receive a fee waiver/expense reimbursement during the periods presented herein. |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (e) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities. |
| (f) | For the six months ended August 31, 2013. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 65 |
Financial Highlights (Unaudited) (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| NEW JERSEY | ||||||||||||||||||||||||||||||||
| Year Ended February 28/29, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Invest- ment Income | From Accum- ulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (9/94) |
| |||||||||||||||||||||||||||||||
2014(e) | $ | 11.63 | $ | .20 | $ | (1.06 | ) | $ | (.86 | ) | $ | (.20 | ) | $ | — | $ | (.20 | ) | $ | 10.57 | ||||||||||||
2013 | 11.29 | .43 | .34 | .77 | (.43 | ) | — | (.43 | ) | 11.63 | ||||||||||||||||||||||
2012 | 10.22 | .46 | 1.05 | 1.51 | (.44 | ) | — | (.44 | ) | 11.29 | ||||||||||||||||||||||
2011 | 10.64 | .46 | (.44 | ) | .02 | (.44 | ) | — | (.44 | ) | 10.22 | |||||||||||||||||||||
2010 | 9.81 | .45 | .81 | 1.26 | (.43 | ) | — | * | (.43 | ) | 10.64 | |||||||||||||||||||||
2009 | 10.09 | .43 | (.26 | ) | .17 | (.42 | ) | (.03 | ) | (.45 | ) | 9.81 | ||||||||||||||||||||
Class B (2/97) |
| |||||||||||||||||||||||||||||||
2014(e) | 11.63 | .16 | (1.05 | ) | (.89 | ) | (.16 | ) | — | (.16 | ) | 10.58 | ||||||||||||||||||||
2013 | 11.30 | .34 | .34 | .68 | (.35 | ) | — | (.35 | ) | 11.63 | ||||||||||||||||||||||
2012 | 10.23 | .38 | 1.06 | 1.44 | (.37 | ) | — | (.37 | ) | 11.30 | ||||||||||||||||||||||
2011 | 10.65 | .38 | (.43 | ) | (.05 | ) | (.37 | ) | — | (.37 | ) | 10.23 | ||||||||||||||||||||
2010 | 9.83 | .37 | .81 | 1.18 | (.36 | ) | — | * | (.36 | ) | 10.65 | |||||||||||||||||||||
2009 | 10.10 | .36 | (.26 | ) | .10 | (.34 | ) | (.03 | ) | (.37 | ) | 9.83 | ||||||||||||||||||||
Class C (9/94) |
| |||||||||||||||||||||||||||||||
2014(e) | 11.59 | .17 | (1.05 | ) | (.88 | ) | (.17 | ) | — | (.17 | ) | 10.54 | ||||||||||||||||||||
2013 | 11.26 | .36 | .34 | .70 | (.37 | ) | — | (.37 | ) | 11.59 | ||||||||||||||||||||||
2012 | 10.19 | .40 | 1.05 | 1.45 | (.38 | ) | — | (.38 | ) | 11.26 | ||||||||||||||||||||||
2011 | 10.61 | .40 | (.43 | ) | (.03 | ) | (.39 | ) | — | (.39 | ) | 10.19 | ||||||||||||||||||||
2010 | 9.79 | .39 | .81 | 1.20 | (.38 | ) | — | * | (.38 | ) | 10.61 | |||||||||||||||||||||
2009 | 10.05 | .38 | (.25 | ) | .13 | (.36 | ) | (.03 | ) | (.39 | ) | 9.79 | ||||||||||||||||||||
Class I (2/92) |
| |||||||||||||||||||||||||||||||
2014(e) | 11.67 | .22 | (1.07 | ) | (.85 | ) | (.21 | ) | — | (.21 | ) | 10.61 | ||||||||||||||||||||
2013 | 11.33 | .45 | .35 | .80 | (.46 | ) | — | (.46 | ) | 11.67 | ||||||||||||||||||||||
2012 | 10.26 | .48 | 1.06 | 1.54 | (.47 | ) | — | (.47 | ) | 11.33 | ||||||||||||||||||||||
2011 | 10.68 | .48 | (.43 | ) | .05 | (.47 | ) | — | (.47 | ) | 10.26 | |||||||||||||||||||||
2010 | 9.85 | .47 | .81 | 1.28 | (.45 | ) | — | * | (.45 | ) | 10.68 | |||||||||||||||||||||
2009 | 10.11 | .45 | (.25 | ) | .20 | (.43 | ) | (.03 | ) | (.46 | ) | 9.85 | ||||||||||||||||||||
| 66 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||
| Ratios to Average Net Assets | ||||||||||||||||||||||
| Total Return(b) | Ending Net Assets (000) | Expenses Including Interest(c) | Expenses Excluding Interest | Net Invest- ment Income (Loss) | Portfolio Turnover Rate(d) | |||||||||||||||||
| (7.48 | )% | $ | 159,360 | .81 | %** | .81 | %** | 3.57 | %** | 9 | % | |||||||||||
| 6.93 | 169,891 | .81 | .81 | 3.71 | 12 | |||||||||||||||||
| 15.13 | 145,946 | .83 | .83 | 4.30 | 7 | |||||||||||||||||
| .14 | 125,945 | .82 | .82 | 4.29 | 7 | |||||||||||||||||
| 13.14 | 121,371 | .85 | .85 | 4.36 | 8 | |||||||||||||||||
| 1.66 | 91,348 | .87 | .85 | 4.31 | 21 | |||||||||||||||||
| (7.74 | ) | 985 | 1.56 | ** | 1.56 | ** | 2.80 | ** | 9 | |||||||||||||
| 6.06 | 1,677 | 1.56 | 1.56 | 2.98 | 12 | |||||||||||||||||
| 14.28 | 3,101 | 1.58 | 1.58 | 3.59 | 7 | |||||||||||||||||
| (.59 | ) | 4,275 | 1.57 | 1.57 | 3.53 | 7 | ||||||||||||||||
| 12.21 | 8,442 | 1.60 | 1.60 | 3.64 | 8 | |||||||||||||||||
| .98 | 11,881 | 1.62 | 1.60 | 3.52 | 21 | |||||||||||||||||
| (7.69 | ) | 50,359 | 1.36 | ** | 1.36 | ** | 3.02 | ** | 9 | |||||||||||||
| 6.30 | 58,848 | 1.36 | 1.36 | 3.15 | 12 | |||||||||||||||||
| 14.54 | 45,046 | 1.38 | 1.38 | 3.75 | 7 | |||||||||||||||||
| (.41 | ) | 37,511 | 1.37 | 1.37 | 3.74 | 7 | ||||||||||||||||
| 12.48 | 37,482 | 1.40 | 1.40 | 3.81 | 8 | |||||||||||||||||
| 1.28 | 29,143 | 1.42 | 1.40 | 3.75 | 21 | |||||||||||||||||
| (7.36 | ) | 77,494 | .61 | ** | .61 | ** | 3.77 | ** | 9 | |||||||||||||
| 7.13 | 90,896 | .61 | .61 | 3.91 | 12 | |||||||||||||||||
| 15.30 | 79,361 | .63 | .63 | 4.51 | 7 | |||||||||||||||||
| .36 | 70,068 | .62 | .62 | 4.49 | 7 | |||||||||||||||||
| 13.32 | 77,172 | .65 | .65 | 4.57 | 8 | |||||||||||||||||
| 2.05 | 66,899 | .67 | .65 | 4.48 | 21 | |||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (c) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities. |
| (d) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (e) | For the six months ended August 31, 2013. |
| * | Rounds to less than $.01 per share. |
| ** | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 67 |
Financial Highlights (Unaudited) (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| NEW YORK | ||||||||||||||||||||||||||||||||
| Year Ended February 28/29, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Invest- ment Income | From Accum- ulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (9/94) |
| |||||||||||||||||||||||||||||||
2014(f) | $ | 11.30 | $ | .19 | $ | (1.00 | ) | $ | (.81 | ) | $ | (.19 | ) | $ | — | $ | (.19 | ) | $ | 10.30 | ||||||||||||
2013 | 11.17 | .40 | .14 | .54 | (.40 | ) | (.01 | ) | (.41 | ) | 11.30 | |||||||||||||||||||||
2012 | 10.39 | .46 | .81 | 1.27 | (.46 | ) | (.03 | ) | (.49 | ) | 11.17 | |||||||||||||||||||||
2011 | 10.72 | .47 | (.34 | ) | .13 | (.46 | ) | — | (.46 | ) | 10.39 | |||||||||||||||||||||
2010 | 9.84 | .46 | .88 | 1.34 | (.46 | ) | — | * | (.46 | ) | 10.72 | |||||||||||||||||||||
2009 | 10.15 | .45 | (.28 | ) | .17 | (.44 | ) | (.04 | ) | (.48 | ) | 9.84 | ||||||||||||||||||||
Class B (2/97) |
| |||||||||||||||||||||||||||||||
2014(f) | 11.29 | .15 | (1.00 | ) | (.85 | ) | (.15 | ) | — | (.15 | ) | 10.29 | ||||||||||||||||||||
2013 | 11.16 | .32 | .13 | .45 | (.31 | ) | (.01 | ) | (.32 | ) | 11.29 | |||||||||||||||||||||
2012 | 10.38 | .38 | .81 | 1.19 | (.38 | ) | (.03 | ) | (.41 | ) | 11.16 | |||||||||||||||||||||
2011 | 10.71 | .39 | (.34 | ) | .05 | (.38 | ) | — | (.38 | ) | 10.38 | |||||||||||||||||||||
2010 | 9.84 | .38 | .87 | 1.25 | (.38 | ) | — | * | (.38 | ) | 10.71 | |||||||||||||||||||||
2009 | 10.14 | .38 | (.28 | ) | .10 | (.36 | ) | (.04 | ) | (.40 | ) | 9.84 | ||||||||||||||||||||
Class C (9/94) |
| |||||||||||||||||||||||||||||||
2014(f) | 11.30 | .16 | (1.01 | ) | (.85 | ) | (.16 | ) | — | (.16 | ) | 10.29 | ||||||||||||||||||||
2013 | 11.17 | .34 | .14 | .48 | (.34 | ) | (.01 | ) | (.35 | ) | 11.30 | |||||||||||||||||||||
2012 | 10.39 | .40 | .81 | 1.21 | (.40 | ) | (.03 | ) | (.43 | ) | 11.17 | |||||||||||||||||||||
2011 | 10.72 | .41 | (.34 | ) | .07 | (.40 | ) | — | (.40 | ) | 10.39 | |||||||||||||||||||||
2010 | 9.84 | .41 | .87 | 1.28 | (.40 | ) | — | * | (.40 | ) | 10.72 | |||||||||||||||||||||
2009 | 10.15 | .40 | (.28 | ) | .12 | (.39 | ) | (.04 | ) | (.43 | ) | 9.84 | ||||||||||||||||||||
Class I (12/86) |
| |||||||||||||||||||||||||||||||
2014(f) | 11.32 | .21 | (1.02 | ) | (.81 | ) | (.20 | ) | — | (.20 | ) | 10.31 | ||||||||||||||||||||
2013 | 11.19 | .43 | .13 | .56 | (.42 | ) | (.01 | ) | (.43 | ) | 11.32 | |||||||||||||||||||||
2012 | 10.41 | .48 | .81 | 1.29 | (.48 | ) | (.03 | ) | (.51 | ) | 11.19 | |||||||||||||||||||||
2011 | 10.73 | .49 | (.33 | ) | .16 | (.48 | ) | — | (.48 | ) | 10.41 | |||||||||||||||||||||
2010 | 9.86 | .48 | .87 | 1.35 | (.48 | ) | — | * | (.48 | ) | 10.73 | |||||||||||||||||||||
2009 | 10.17 | .48 | (.29 | ) | .19 | (.46 | ) | (.04 | ) | (.50 | ) | 9.86 | ||||||||||||||||||||
| 68 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||
| Ratios to Average Net Assets(d) | ||||||||||||||||||||||
| Total Return(b) | Ending Net Assets (000) | Expenses Including Interest(c) | Expenses Excluding Interest | Net Invest- ment Income (Loss) | Portfolio Turnover Rate(e) | |||||||||||||||||
| (7.25 | )% | $ | 330,044 | .79 | %** | .79 | %** | 3.53 | %** | 30 | % | |||||||||||
| 4.89 | 344,364 | .79 | .79 | 3.57 | 18 | |||||||||||||||||
| 12.45 | 316,904 | .85 | .84 | 4.19 | 16 | |||||||||||||||||
| 1.12 | 209,283 | .83 | .81 | 4.38 | 7 | |||||||||||||||||
| 13.87 | 226,162 | .87 | .84 | 4.46 | 3 | |||||||||||||||||
| 1.67 | 181,049 | .97 | .84 | 4.49 | 30 | |||||||||||||||||
| (7.61 | ) | 2,423 | 1.54 | ** | 1.54 | ** | 2.77 | ** | 30 | |||||||||||||
| 4.14 | 3,598 | 1.54 | 1.54 | 2.83 | 18 | |||||||||||||||||
| 11.66 | 4,666 | 1.60 | 1.59 | 3.48 | 16 | |||||||||||||||||
| .39 | 5,114 | 1.58 | 1.56 | 3.62 | 7 | |||||||||||||||||
| 12.96 | 8,898 | 1.62 | 1.59 | 3.73 | 3 | |||||||||||||||||
| 1.00 | 12,094 | 1.72 | 1.59 | 3.71 | 30 | |||||||||||||||||
| (7.59 | ) | 83,292 | 1.34 | ** | 1.34 | ** | 2.98 | ** | 30 | |||||||||||||
| 4.34 | 98,792 | 1.34 | 1.34 | 3.02 | 18 | |||||||||||||||||
| 11.83 | 91,281 | 1.40 | 1.39 | 3.65 | 16 | |||||||||||||||||
| .58 | 61,439 | 1.38 | 1.36 | 3.82 | 7 | |||||||||||||||||
| 13.28 | 60,840 | 1.42 | 1.39 | 3.91 | 3 | |||||||||||||||||
| 1.12 | 51,978 | 1.52 | 1.39 | 3.95 | 30 | |||||||||||||||||
| (7.23 | ) | 284,724 | .59 | ** | .59 | ** | 3.73 | ** | 30 | |||||||||||||
| 5.10 | 330,733 | .59 | .59 | 3.78 | 18 | |||||||||||||||||
| 12.65 | 325,424 | .65 | .64 | 4.35 | 16 | |||||||||||||||||
| 1.44 | 141,171 | .63 | .61 | 4.58 | 7 | |||||||||||||||||
| 14.00 | 150,977 | .67 | .64 | 4.66 | 3 | |||||||||||||||||
| 1.91 | 132,815 | .77 | .64 | 4.69 | 30 | |||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (c) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities. |
| (d) | The Fund has a contractual fee waiver/expense reimbursement agreement with the Adviser, but did not receive a fee waiver/expense reimbursement during the periods presented herein. |
| (e) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (f) | For the six months ended August 31, 2013. |
| * | Rounds to less than $.01 per share. |
| ** | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 69 |
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
General Information
The Nuveen Multistate Trust II (the “Trust”) is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of the Nuveen Connecticut Municipal Bond Fund (“Connecticut”), Nuveen Massachusetts Municipal Bond Fund (“Massachusetts”), Nuveen New Jersey Municipal Bond Fund (“New Jersey”) and Nuveen New York Municipal Bond Fund (“New York”) (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was organized as a Massachusetts business trust on July 1, 1996. The Funds were each organized as a series of predecessor trusts or corporations prior to that date.
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
The Funds’ investment objective is to provide as high a level of current interest income exempt from regular federal, state and, in some cases, local income taxes as is consistent with preservation of capital. Under normal market conditions, each Fund invests at least 80% of the sum of their net assets and the amount of any borrowings for investment purposes in municipal bonds that pay interest that is exempt from regular federal and its respective state personal income tax. Each Fund may invest without limit in securities that generate income subject to the alternative minimum tax. Each Fund is a long-term bond fund and, as such, will generally maintain, under normal market conditions, an investment portfolio with an overall weighted average maturity of greater than 10 years. Under normal market conditions, each Fund invests at least 80% of its net assets in investment grade municipal bonds rated BBB/Baa or higher at the time of purchase by at least one independent rating agency, or, if unrated, judged by the Sub-Adviser to be of comparable quality. Each Fund may invest up to 20% of its net assets in below investment grade municipal bonds, commonly referred to as “high yield” or “junk” bonds.
Each Fund may invest in all types of municipal bonds, including general obligation bonds, revenue bonds and participation interests in municipal leases. Each Fund may invest in zero coupon bonds, which are issued at substantial discounts from their value at maturity and pay no cash income to their holders until they mature. Each Fund may invest up to 15% of its net assets in municipal securities whose interest payments vary inversely with changes in short-term tax-exempt interest rates (“inverse floaters”). Inverse floaters are derivative securities that provide leveraged exposure to underlying municipal bonds. Each Fund’s investments in inverse floaters are designed to increase the Funds’ income and returns through this leveraged exposure. These investments are speculative, however, and also create the possibility that income and returns will be diminished. Each Fund may utilize futures contracts, swap contracts, options on futures contracts and options on swap contracts in an attempt to manage market risk, credit risk and yield curve risk, and to manage the effective maturity or duration of securities in each Fund’s portfolio.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to earmark securities in the Funds’ portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. As of August 31, 2013, Massachusetts had outstanding when-issued/delayed delivery purchase commitments of $965,540. There were no such outstanding purchase commitments in any of the other Funds.
Investment Income
Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also reflects paydown gains and losses, if any.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders. Should a Fund receive a refund of workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
| 70 | Nuveen Investments |
Dividends and Distributions to Shareholders
The Funds declare dividends from their net investment income daily and pay shareholders monthly. Fund shares begin to accrue dividends on the business day after the day when the monies used to purchase Fund shares are collected by the Funds’ transfer agent.
Net realized capital gains and/or market discount from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders of net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge and incur a .20% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”) if redeemed within eighteen months of purchase. The Funds will issue Class B Shares upon the exchange of Class B Shares from another Nuveen mutual fund or for the purposes of dividend reinvestment, but Class B Shares are not available for new accounts or for additional investment into existing accounts. Class B Shares were sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. Class B Shares are subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares are sold without an up-front sales charge but incur a .55% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. Class C Shares are subject to a CDSC of 1% if redeemed within twelve months of purchase. Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative settled shares of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution and service fees, are recorded to the specific class.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Netting Agreements
In the ordinary course of business, the Funds have entered into transactions subject to enforceable master repurchase agreements, International Swaps and Derivative Association, Inc. (“ISDA”) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, a Fund manages its cash collateral and securities collateral on a counterparty basis. As of August 31, 2013, the Funds were not invested in any portfolio securities or derivatives that are subject to netting agreements.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
Investment Valuation
Prices of municipal bonds are provided by a pricing service approved by the Funds’ Board of Trustees. These securities are generally classified as Level 2 for fair value measurement purposes. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
| Nuveen Investments | 71 |
Notes to Financial Statements (Unaudited) (continued)
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Trustees or its designee.
Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
| Level 1– | Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities. | |
| Level 2– | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3– | Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
| Connecticut | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 333,690,245 | $ | — | $ | 333,690,245 | ||||||||
| Massachusetts | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 260,432,167 | $ | — | $ | 260,432,167 | ||||||||
| New Jersey | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 283,878,127 | $ | — | $ | 283,878,127 | ||||||||
| New York | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 695,784,310 | $ | — | $ | 695,784,310 | ||||||||
| * | Refer to the Fund’s Portfolio of Investments for industry classifications. |
The Nuveen funds’ Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds’ pricing policies and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
| 72 | Nuveen Investments |
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
| (i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
| (ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust, at their liquidation value, as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as “Interest expense” on the Statement of Operations.
During the six months ended August 31, 2013, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
As of August 31, 2013, each Fund’s maximum exposure to the floating rate obligations issued by externally-deposited Recourse Trusts was as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Maximum exposure to Recourse Trusts | $ | — | $ | 1,600,000 | $ | 1,770,000 | $ | 3,670,000 | ||||||||
| Nuveen Investments | 73 |
Notes to Financial Statements (Unaudited) (continued)
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters for the following Funds during the six months ended August 31, 2013, were as follows:
| Connecticut | New York | |||||||
Average floating rate obligations outstanding | $ | 10,000,000 | $ | 7,955,000 | ||||
Average annual interest rate and fees | 0.34 | % | 0.40 | % | ||||
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investments in Derivatives
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. Although the Funds are authorized to invest in derivative instruments, and may do so in the future, they did not make any such investments during the six months ended August 31, 2013.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Transactions in Fund shares were as follows:
| Connecticut | ||||||||||||||||
| Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 2,847,627 | $ | 30,071,901 | 2,614,964 | $ | 28,910,899 | ||||||||||
Class A – automatic conversion of Class B Shares | 750 | 8,072 | 12,825 | 141,148 | ||||||||||||
Class B | 44 | 467 | — | — | ||||||||||||
Class C | 264,427 | 2,854,726 | 1,033,058 | 11,399,442 | ||||||||||||
Class I | 626,546 | 6,764,381 | 1,413,438 | 15,705,441 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 327,142 | 3,480,855 | 624,245 | 6,906,191 | ||||||||||||
Class B | 819 | 8,759 | 3,000 | 33,111 | ||||||||||||
Class C | 47,608 | 506,201 | 94,101 | 1,039,661 | ||||||||||||
Class I | 41,078 | 438,706 | 67,844 | 753,348 | ||||||||||||
| 4,156,041 | 44,134,068 | 5,863,475 | 64,889,241 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (4,285,127 | ) | (45,264,581 | ) | (2,619,777 | ) | (28,965,373 | ) | ||||||||
Class B | (36,820 | ) | (398,089 | ) | (51,692 | ) | (573,074 | ) | ||||||||
Class B – automatic conversion to Class A Shares | (751 | ) | (8,072 | ) | (12,838 | ) | (141,148 | ) | ||||||||
Class C | (841,095 | ) | (8,884,204 | ) | (798,522 | ) | (8,818,322 | ) | ||||||||
Class I | (1,042,433 | ) | (11,078,326 | ) | (599,799 | ) | (6,653,074 | ) | ||||||||
| (6,206,226 | ) | (65,633,272 | ) | (4,082,628 | ) | (45,150,991 | ) | |||||||||
Net increase (decrease) | (2,050,185 | ) | $ | (21,499,204 | ) | 1,780,847 | $ | 19,738,250 | ||||||||
| 74 | Nuveen Investments |
| Massachusetts | ||||||||||||||||
| Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 939,072 | $ | 9,442,501 | 1,703,066 | $ | 17,645,560 | ||||||||||
Class A – automatic conversion of Class B Shares | 312 | 3,264 | 2,485 | 25,460 | ||||||||||||
Class B | 156 | 1,588 | — | — | ||||||||||||
Class C | 328,814 | 3,335,314 | 608,224 | 6,257,859 | ||||||||||||
Class I | 7,670,570 | 75,405,798 | 1,190,195 | 12,342,516 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 163,814 | 1,642,865 | 273,050 | 2,838,657 | ||||||||||||
Class B | 784 | 7,879 | 2,587 | 26,845 | ||||||||||||
Class C | 34,890 | 346,913 | 60,585 | 623,778 | ||||||||||||
Class I | 179,427 | 1,784,110 | 277,737 | 2,878,445 | ||||||||||||
| 9,317,839 | 91,970,232 | 4,117,929 | 42,639,120 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (1,038,326 | ) | (10,381,125 | ) | (1,127,484 | ) | (11,703,503 | ) | ||||||||
Class B | (29,879 | ) | (298,336 | ) | (41,965 | ) | (436,004 | ) | ||||||||
Class B – automatic conversion to Class A Shares | (312 | ) | (3,264 | ) | (2,483 | ) | (25,460 | ) | ||||||||
Class C | (561,688 | ) | (5,497,211 | ) | (306,790 | ) | (3,150,199 | ) | ||||||||
Class I | (3,140,641 | ) | (30,752,294 | ) | (1,180,569 | ) | (12,219,063 | ) | ||||||||
| (4,770,846 | ) | (46,932,230 | ) | (2,659,291 | ) | (27,534,229 | ) | |||||||||
Net increase (decrease) | 4,546,993 | $ | 45,038,002 | 1,458,638 | $ | 15,104,891 | ||||||||||
| New Jersey | ||||||||||||||||
| Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 3,349,209 | $ | 37,045,755 | 2,816,526 | $ | 32,502,804 | ||||||||||
Class A – automatic conversion of Class B Shares | 2,220 | 25,379 | 45,874 | 521,481 | ||||||||||||
Class B | 156 | 1,751 | — | — | ||||||||||||
Class C | 303,797 | 3,426,326 | 1,413,773 | 16,212,215 | ||||||||||||
Class I | 518,887 | 5,857,788 | 1,586,534 | 18,285,562 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 233,393 | 2,602,604 | 394,457 | 4,550,274 | ||||||||||||
Class B | 1,287 | 14,448 | 5,155 | 59,283 | ||||||||||||
Class C | 50,578 | 562,974 | 96,086 | 1,103,777 | ||||||||||||
Class I | 80,556 | 903,264 | 154,868 | 1,791,082 | ||||||||||||
| 4,540,083 | 50,440,289 | 6,513,273 | 75,026,478 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (3,123,259 | ) | (34,034,374 | ) | (1,570,259 | ) | (18,085,189 | ) | ||||||||
Class B | (50,207 | ) | (570,303 | ) | (89,559 | ) | (1,031,017 | ) | ||||||||
Class B – automatic conversion to Class A Shares | (2,220 | ) | (25,379 | ) | (45,847 | ) | (521,481 | ) | ||||||||
Class C | (653,968 | ) | (7,241,641 | ) | (432,609 | ) | (4,963,163 | ) | ||||||||
Class I | (1,085,609 | ) | (12,076,958 | ) | (955,069 | ) | (11,037,974 | ) | ||||||||
| (4,915,263 | ) | (53,948,655 | ) | (3,093,343 | ) | (35,638,824 | ) | |||||||||
Net increase (decrease) | (375,180 | ) | $ | (3,508,366 | ) | 3,419,930 | $ | 39,387,654 | ||||||||
| Nuveen Investments | 75 |
Notes to Financial Statements (Unaudited) (continued)
| New York | ||||||||||||||||
| Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 6,782,160 | $ | 72,761,399 | 5,253,400 | $ | 59,252,847 | ||||||||||
Class A – automatic conversion of Class B Shares | 6,853 | 75,698 | 19,383 | 216,740 | ||||||||||||
Class B | 242 | 2,639 | — | — | ||||||||||||
Class C | 342,523 | 3,788,850 | 1,509,125 | 17,008,247 | ||||||||||||
Class I | 588,866 | 6,429,549 | 2,241,064 | 25,253,348 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 456,906 | 4,947,256 | 817,803 | 9,222,800 | ||||||||||||
Class B | 2,838 | 30,859 | 9,425 | 106,054 | ||||||||||||
Class C | 84,756 | 918,912 | 169,497 | 1,909,899 | ||||||||||||
Class I | 414,981 | 4,508,800 | 874,007 | 9,864,994 | ||||||||||||
| 8,680,125 | 93,463,962 | 10,893,704 | 122,834,929 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (5,665,515 | ) | (60,502,564 | ) | (3,985,681 | ) | (44,931,296 | ) | ||||||||
Class B | (79,532 | ) | (873,156 | ) | (89,333 | ) | (1,002,304 | ) | ||||||||
Class B – automatic conversion to Class A Shares | (6,861 | ) | (75,698 | ) | (19,402 | ) | (216,740 | ) | ||||||||
Class C | (1,080,253 | ) | (11,633,756 | ) | (1,105,893 | ) | (12,449,842 | ) | ||||||||
Class I | (2,615,836 | ) | (28,316,839 | ) | (2,976,721 | ) | (33,616,541 | ) | ||||||||
| (9,447,997 | ) | (101,402,013 | ) | (8,177,030 | ) | (92,216,723 | ) | |||||||||
Net increase (decrease) | (767,872 | ) | $ | (7,938,051 | ) | 2,716,674 | $ | 30,618,206 | ||||||||
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments, where applicable) during the six months ended August 31, 2013, were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Purchases | $ | 24,504,987 | $ | 67,255,942 | $ | 28,605,935 | $ | 224,015,375 | ||||||||
Sales and maturities | 43,262,559 | 20,170,910 | 31,025,033 | 234,004,808 | ||||||||||||
6. Income Tax Information
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
| 76 | Nuveen Investments |
As of August 31, 2013, the cost and unrealized appreciation (depreciation) of investments, as determined on a federal income tax basis, were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Cost of investments | $ | 329,702,890 | $ | 265,079,665 | $ | 285,846,270 | $ | 697,372,311 | ||||||||
Gross unrealized: | ||||||||||||||||
Appreciation | $ | 7,149,825 | $ | 7,461,934 | $ | 10,219,983 | $ | 16,640,777 | ||||||||
Depreciation | (13,162,470 | ) | (12,109,432 | ) | (12,188,126 | ) | (26,184,209 | ) | ||||||||
Net unrealized appreciation (depreciation) of investments | $ | (6,012,645 | ) | $ | (4,647,498 | ) | $ | (1,968,143 | ) | $ | (9,543,432 | ) | ||||
Permanent differences, primarily due to federal taxes paid, taxable market discount and paydowns resulted in reclassifications among the Funds’ components of net assets as of February 28, 2013, the Funds’ last tax year end, as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Capital paid-in | $ | 38,188 | $ | (47 | ) | $ | 4,079 | $ | — | |||||||
Undistributed (Over-distribution of) net investment income | (13,256 | ) | (37,018 | ) | (24,608 | ) | (14,059 | ) | ||||||||
Accumulated net realized gain (loss) | (24,932 | ) | 37,065 | 20,529 | 14,059 | |||||||||||
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of February 28, 2013, the Funds’ last tax year end, were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Undistributed net tax-exempt income1 | $ | 1,278,044 | $ | 1,860,790 | $ | 1,302,100 | $ | 3,341,912 | ||||||||
Undistributed net ordinary income2 | 8,373 | 1,159 | 1,652 | 42,035 | ||||||||||||
Undistributed net long-term capital gains | 34,471 | — | — | 535,841 | ||||||||||||
| 1 | Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividends declared during the period on February 1, 2013, through February 28, 2013 and paid on March 1, 2013. |
| 2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ last tax year ended February 28, 2013, was designated for purposes of the dividends paid deduction as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Distributions from net tax-exempt income | $ | 13,232,641 | $ | 8,477,494 | $ | 10,883,714 | $ | 27,051,560 | ||||||||
Distributions from net ordinary income2 | — | — | — | — | ||||||||||||
Distributions from net long-term capital gains | 249,309 | — | — | 837,832 | ||||||||||||
| 2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
As of February 28, 2013, the Funds’ last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration retain the character reflected and will be utilized first by a Fund, while the losses subject to expiration are considered short-term.
| Massachusetts | New Jersey | |||||||
Expiration: | ||||||||
February 28, 2017 | $ | 12,497 | $ | — | ||||
February 28, 2018 | 98,330 | — | ||||||
February 28, 2019 | — | 80,823 | ||||||
Not subject to expiration: | ||||||||
Short-term losses | 10,997 | 24,852 | ||||||
Long-term losses | 2,817,801 | 988,558 | ||||||
Total | $ | 2,939,625 | $ | 1,094,233 | ||||
During the Funds’ last tax year ended February 28, 2013, the following Funds utilized capital loss carryforwards as follows:
| Massachusetts | New Jersey | New York | ||||||||||
Utilized capital loss carryforwards | $ | 10,281 | $ | 1,097,049 | $ | 918,315 | ||||||
The Funds have elected to defer late-year losses in accordance with federal income tax rules. These losses are treated as having arisen on the first day of the current fiscal year. The following Funds have elected to defer losses as follows:
| Massachusetts | New Jersey | |||||||
Post-October capital losses3 | $ | 19,809 | $ | 19,728 | ||||
Late-year ordinary losses4 | — | — | ||||||
| 3 | Capital losses incurred from November 1, 2012, through February 28, 2013, the Funds’ last tax year end. |
| 4 | Ordinary losses incurred from January 1, 2013, through February 28, 2013, and specified losses incurred from November 1, 2012, through February 28, 2013. |
| Nuveen Investments | 77 |
Notes to Financial Statements (Unaudited) (continued)
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Net Assets | Fund-Level Fee Rate | |||
For the first $125 million | .3500 | % | ||
For the next $125 million | .3375 | |||
For the next $250 million | .3250 | |||
For the next $500 million | .3125 | |||
For the next $1 billion | .3000 | |||
For the next $3 billion | .2750 | |||
For net assets over $5 billion | .2500 | |||
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 | |||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen Funds. Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of August 31, 2013, the complex-level fee rate for these Funds was .1694%. |
The Adviser has agreed to waive fees and/or reimburse expenses of Massachusetts and New York so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities and extraordinary expenses) do not exceed .750% and .750%, respectively, of the average daily net assets of any class of Fund shares.
The Adviser may also voluntarily reimburse additional expenses from time to time in any of the Funds. Voluntary reimbursements may be terminated at any time at the Adviser’s discretion.
The Trust pays no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
During the six months ended August 31, 2013, Nuveen Securities, LLC (the “Distributor”), a wholly-owned subsidiary of Nuveen, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Sales charges collected | $ | 95,975 | $ | 57,356 | $ | 93,000 | $ | 144,085 | ||||||||
Paid to financial intermediaries | 84,574 | 51,894 | 76,405 | 128,703 | ||||||||||||
| 78 | Nuveen Investments |
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the six months ended August 31, 2013, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Commission advances | $ | 43,800 | $ | 53,559 | $ | 35,846 | $ | 80,564 | ||||||||
To compensate for commissions advanced to financial intermediaries, all 12b-1 service fees collected on Class B Shares during the first year following a purchase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the six months ended August 31, 2013, the Distributor retained such 12b-1 fees as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
12b-1 fees retained | $ | 39,892 | $ | 31,390 | $ | 58,241 | $ | 72,793 | ||||||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the six months ended August 31, 2013, as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
CDSC retained | $ | 16,522 | $ | 4,107 | $ | 8,700 | $ | 8,060 | ||||||||
8. Subsequent Events
Effective at the close of business on October 28, 2013, all remaining Class B Shares of Connecticut and Massachusetts will convert to Class A Shares. Therefore, Class B Shares of Connecticut and Massachusetts will no longer be available through an exchange from other Nuveen mutual funds after that date.
| Nuveen Investments | 79 |
Annual Investment Management Agreement Approval Process
(Unaudited)
The Board of Trustees (each, a “Board” and each Trustee, a “Board Member”) of the Funds, including the Board Members who are not parties to the Funds’ advisory or sub-advisory agreements or “interested persons” of any such parties (the “Independent Board Members”), is responsible for approving the advisory agreements (each, an “Investment Management Agreement”) between each Fund and Nuveen Fund Advisors, LLC (the “Adviser”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”) (the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the “Advisory Agreements”) and their periodic continuation. Pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”), the Board is required to consider the continuation of the Advisory Agreements on an annual basis. Accordingly, at an in-person meeting held on May 20-22, 2013 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
In preparation for its considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the Adviser and the Sub-Adviser (the Adviser and the Sub-Adviser are collectively, the “Fund Advisers” and each, a “Fund Adviser”). As described in more detail below, the information provided included, among other things, a review of Fund performance, including Fund investment performance assessments against peer groups and appropriate benchmarks; a comparison of Fund fees and expenses relative to peers; a description and assessment of shareholder service levels for the Funds; a summary of the performance of certain service providers; a review of product initiatives and shareholder communications; and an analysis of the Adviser’s profitability with comparisons to comparable peers in the managed fund business. As part of its annual review, the Board also held a separate meeting on April 17-18, 2013, to review the Funds’ investment performance and consider an analysis provided by the Adviser of the Sub-Adviser which generally evaluated the Sub-Adviser’s investment team, investment mandate, organizational structure and history, investment philosophy and process, performance of the applicable Fund, and significant changes to the foregoing. As a result of its review of the materials and discussions, the Board presented the Adviser with questions and the Adviser responded.
The materials and information prepared in connection with the annual review of the Advisory Agreements supplement the information and analysis provided to the Board during the year. In this regard, throughout the year, the Board, acting directly or through its committees, regularly reviews the performance and various services provided by the Adviser and the Sub-Adviser. The Board meets at least quarterly as well as at other times as the need arises. At its quarterly meetings, the Board reviews reports by the Adviser regarding, among other things, fund performance, fund expenses, the performance of the investment teams, and compliance, regulatory and risk management matters. In addition to regular reports, the Adviser provides special reports to the Board or a committee thereof from time to time to enhance the Board’s understanding of various topics that impact some or all the Nuveen funds (such as accounting and financial statement presentations of the various forms of leverage that may be used by a closed-end fund or an update on the valuation policies and procedures), to update the Board on regulatory developments impacting the investment company industry or to update the Board on the business plans or other matters impacting the Adviser. The Board also meets with key investment personnel managing the fund portfolios during the year. In October 2011, the Board also created two standing committees (the Open-End Fund Committee and the Closed-End Fund Committee) to assist the full Board in monitoring and gaining a deeper insight into the distinctive business practices of open-end and closed-end funds. These Committees meet prior to each quarterly Board meeting, and the Adviser provides presentations to these Committees permitting them to delve further into specific matters or initiatives impacting the respective product line.
In addition, the Board continues its program of seeking to have the Board Members or a subset thereof visit each sub-adviser to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. In this regard, the Independent Board Members visited certain of the Sub-Adviser’s investment teams in Minneapolis in September 2012, and the Sub-Adviser’s municipal team in November 2012. In addition, the ad hoc Securities Lending Committee of the Board met with certain service providers and the Audit Committee of the Board made a site visit to three pricing service providers.
The Board considers the information provided and knowledge gained at these meetings and visits during the year when performing its annual review of the Advisory Agreements. The Independent Board Members also are assisted throughout the process by independent legal counsel. Counsel provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts. During the course of the year and during their deliberations regarding the review of advisory contracts, the Independent Board Members met with independent legal counsel in executive sessions without management present. In addition, it is important to recognize that the management arrangements for the Nuveen funds are the result of many years of review and discussion between the Independent Board Members and fund management and that the Board Members’ conclusions may be based, in part, on their consideration of fee arrangements and other factors developed in previous years.
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Fund and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund’s Advisory Agreements. The Independent Board Members did not identify any single factor as all important or controlling. The Independent Board Members’ considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
| 80 | Nuveen Investments |
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Fund Adviser’s services, including advisory services and the resulting Fund performance and administrative services. The Independent Board Members further considered the overall reputation and capabilities of the Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser’s responsiveness to questions and concerns raised by them. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser’s organization and business; the types of services that the Fund Adviser or its affiliates provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any applicable initiatives Nuveen had taken for the open-end fund product line.
In considering advisory services, the Board recognized that the Adviser provides various oversight, administrative, compliance and other services for the Funds and the Sub-Adviser generally provides the portfolio investment management services to the Funds. In reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Adviser’s investment team and changes thereto, organization and history, assets under management, the investment team’s philosophy and strategies in managing the Fund, developments affecting the Sub-Adviser or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an inappropriate incentive to take undue risks. In addition, the Board considered the Adviser’s execution of its oversight responsibilities over the Sub-Adviser. Given the importance of compliance, the Independent Board Members also considered Nuveen’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures; the resources dedicated to compliance; and the record of compliance with the policies and procedures. Given the Adviser’s emphasis on business risk, the Board also appointed an Independent Board Member as a point person to review and keep the Board apprised of developments in this area during the year.
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Adviser and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services and communications, administration of Board relations, regulatory and portfolio compliance and legal support. The Board further recognized Nuveen’s additional investments in personnel, including in compliance and risk management.
In reviewing the services provided, the Board considered the new services and service enhancements that the Adviser has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Adviser’s focus on product rationalization for both closed-end and open-end funds during the year, consolidating certain Nuveen funds through mergers that were designed to improve efficiencies and economies of scale for shareholders, repositioning various Nuveen funds through updates in their investment policies and guidelines with the expectation of bringing greater value to shareholders, and liquidating certain Nuveen funds. The Board recognized the Adviser’s significant investment in technology initiatives to, among other things, create a central repository for fund and other Nuveen product data, develop a group within the Adviser designed to handle and analyze fund performance data, and implement a data system to support the risk oversight group. The Board also recognized the enhancements in the valuation group within the Adviser, including upgrading the team and process and automating certain basic systems, and in the compliance group with the addition of personnel, particularly within the testing group. With the advent of the Open-End Fund Committee and Closed-End Fund Committee, the Board also noted the enhanced support and comprehensive in-depth presentations provided by the Adviser to these committees.
In addition to the foregoing actions, the Board also considered other initiatives related to the open-end Nuveen funds including, among other things, the development of a comprehensive strategic plan and the addition of members to the product strategy team; the commencement of various new funds; the removal of redemption fees for certain funds; the establishment of a working group to enhance the Adviser’s oversight of the disclosures pertaining to Nuveen’s products and services; the acceleration of monthly holdings disclosure for certain funds; and the development of a new share class for certain funds.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, considered the performance history of each Fund over various time periods. The Board reviewed reports, including an analysis of the Funds’ performance and the applicable investment team. In general, in considering a fund’s performance, the Board recognized that a fund’s performance can be reviewed through various measures including the fund’s absolute return, the fund’s return compared to the performance of other peer funds, and the fund’s performance compared to its respective benchmark. Accordingly, the Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) and with recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks) for the quarter, one-, three- and five-year periods ending December 31, 2012 as well as performance information reflecting the first quarter of 2013. This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
| Nuveen Investments | 81 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
In evaluating performance, the Board recognized several factors that may impact the performance data as well as the consideration given to particular performance data. The Board recognized that the performance data reflects a snapshot of time, in this case as of the end of the most recent calendar year or quarter. The Board noted that selecting a different performance period could derive significantly different results. Further, the Board recognized that it is possible that long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme has the ability to disproportionately affect long-term performance. The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered in a fund) and the performance of the fund (or respective class) during that shareholder’s investment period.
With respect to the comparative performance information, the Board recognized that the usefulness of comparative performance data as a frame of reference to measure a fund’s performance may be limited because the Performance Peer Group, among other things, does not adequately reflect the objectives and strategies of the fund, has a different investable universe, or the composition of the peer set may be limited in size or number as well as other factors. In this regard, the Board noted that the Adviser classified, in relevant part, the Performance Peer Groups of certain funds as having significant differences from the funds but to still be somewhat relevant (including the Nuveen Connecticut Municipal Bond Fund (the “Connecticut Fund”)), while the Performance Peer Groups of other funds were classified as having such significant differences as to be irrelevant. Accordingly, while the Board is cognizant of the relative performance of a fund’s peer set and/or benchmark(s), the Board evaluated fund performance in light of the respective fund’s investment objectives, investment parameters and guidelines and considered that the variations between the objectives and investment parameters or guidelines of the funds with their peers and/or benchmarks result in differences in performance results. The Board also noted that open-end funds offer multiple classes and the performance of the various classes of a fund should be substantially similar on a relative basis because all of the classes are invested in the same portfolio of securities and that differences in performance among classes could be principally attributed to the variations in distribution and servicing expenses of each class. In addition, with respect to any Nuveen funds for which the Board has identified performance concerns, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers those steps necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
In considering the performance data for the Funds, the Independent Board Members noted that the Connecticut Fund, the Nuveen New Jersey Municipal Bond Fund (the “New Jersey Fund”) and the Nuveen Massachusetts Municipal Bond Fund had demonstrated generally favorable performance in comparison to peers, performing in the first or second quartile over various periods. In addition, the Independent Board Members noted that the Nuveen New York Municipal Bond Fund had demonstrated satisfactory performance compared to its peers. Although such Fund performed in the third quartile for the one-year period, it performed in the second quartile for the three-year period, and the first quartile for the five-year period and, in addition, outperformed its benchmark for the one-, three- and five-year periods.
Based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratio in absolute terms as well as compared to the fees and expenses of a comparable universe of funds provided by an independent fund data provider (the “Peer Universe”) and to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations.
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the limited size and particular composition of the Peer Universe or Peer Group (including the inclusion of other Nuveen funds in the peer set); expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement or fee waivers; the timing of information used; and differences in the states reflected in the Peer Universe or Peer Group may impact the comparative data, thereby limiting somewhat the ability to make a meaningful comparison with peers.
In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen. In reviewing fees and expenses, the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were approximately 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group. In reviewing the reports, the Board noted that the majority of the Nuveen funds were at, close to or below their Peer Group or Peer Universe (if no separate Peer Group) average based on the net total expense ratio.
The Independent Board Members noted that the New Jersey Fund had a net management fee and a net expense ratio that were slightly higher than its peer averages, while each of the other Funds had a net management fee and net expense ratio (including fee waivers and expense reimbursements) that were in line with its respective peer averages.
| 82 | Nuveen Investments |
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have a sub-adviser (which, in the case of the Funds, is an affiliated sub-adviser), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser. In general terms, the fee to the Adviser reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-adviser level, the fee generally reflects the portfolio management services provided by the sub-adviser. The Independent Board Members reviewed information regarding the nature of services provided by the Adviser, including through the Sub-Adviser, and the range of fees and average fee the Sub-Adviser assessed for such services to other clients. Such other clients include municipal separately managed accounts and passively managed exchange traded funds (ETFs) sub-advised by the Adviser. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Many of the additional administrative services provided by the Adviser are not required for institutional clients. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
3. Profitability of Fund Advisers
In conjunction with their review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two calendar years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2012. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with comparable assets under management (based on asset size and asset composition).
In reviewing profitability, the Independent Board Members recognized the Adviser’s continued investment in its business to enhance its services, including capital improvements to investment technology, updated compliance systems, and additional personnel. In addition, in evaluating profitability, the Independent Board Members also recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses and that various allocation methodologies may each be reasonable but yield different results. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. Based on their review, the Independent Board Members concluded that the Adviser’s level of profitability for its advisory activities was reasonable in light of the services provided.
With respect to sub-advisers affiliated with Nuveen, including the Sub-Adviser, the Independent Board Members reviewed the sub-adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Adviser’s level of profitability was reasonable in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision,
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Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase.
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. In addition, with the acquisition of the funds previously advised by FAF Advisors, Inc. at the end of 2010, the Board noted that a portion of such funds’ assets at the time of acquisition were deemed eligible to be included in the complex-wide fee calculation in order to deliver fee savings to shareholders in the combined complex and such funds were subject to differing complex-level fee rates.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered, among other things, any sales charges, distribution fees and shareholder services fees received and retained by the Funds’ principal underwriter, an affiliate of the Adviser, which includes fees received pursuant to any 12b-1 plan. The Independent Board Members, therefore, considered the 12b-1 fees retained by Nuveen during the last calendar year.
In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. The Funds’ portfolio transactions are determined by the Sub-Adviser. Accordingly, the Independent Board Members considered that the Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Funds’ portfolio transactions. With respect to fixed income securities, however, the Board recognized that such securities generally trade on a principal basis that does not generate soft dollar credits. Nevertheless, the Sub-Adviser may engage in soft dollar arrangements on behalf of other clients, and the Funds as well as the Sub-Adviser may benefit from the research or other services received. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Adviser may also benefit a Fund and shareholders to the extent the research enhances the ability of the Sub-Adviser to manage the Fund. The Independent Board Members noted that the Sub-Adviser’s profitability may be somewhat lower if it did not receive the research services pursuant to the soft dollar arrangements and had to acquire such services directly.
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of each Advisory Agreement are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
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Notes
| Nuveen Investments | 85 |
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s (or bond fund’s) value to changes when market interest rates change. Generally, the longer a bond or fund’s duration, the more the price of the bond or fund will change as interest rates change.
Effective Leverage: Effective leverage is investment exposure created either through borrowings or indirectly through inverse floaters, divided by the assets invested, including those assets that were purchased with the proceeds of the leverage, or referenced by the levered instrument.
Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis.
Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital.
Lipper Connecticut Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Connecticut Municipal Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper Massachusetts Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Massachusetts Municipal Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper New Jersey Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper New Jersey Municipal Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Lipper New York Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper New York Municipal Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions, but do not reflect any applicable sales charges.
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a fund, the NAV is calculated daily by taking the fund’s total assets (securities, cash, and accrued earnings), subtracting the fund’s liabilities, and dividing by the number of shares outstanding.
Pre-Refundings: Pre-Refundings, also known as advance refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers.
S&P Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P Municipal Bond New York Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade New York municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically.
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Fund Manager
Nuveen Fund Advisors, LLC
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA 02111
Transfer Agent and Shareholder Services
Boston Financial
Data Services, Inc.
Nuveen Investor Services
P.O. Box 8530
Boston, MA 02266-8530
(800) 257-8787
Quarterly Form N-Q Portfolio of Investments Information
Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.
Nuveen Funds’ Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program.
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Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments provides high-quality investment services designed to help secure the longterm goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates–Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management, and Gresham Investment Management. In total, Nuveen Investments managed $216 billion as of June 30, 2013.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mf
Distributed by Nuveen Securities, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
MSA-MS3-0813D
Mutual Funds
Nuveen Municipal Bond Funds
Dependable, tax-free income because it’s not what you earn, it’s what you keep.®
Semi-Annual Report
August 31, 2013
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| Fund Name | Class A | Class B | Class C | Class I | ||||
Nuveen California High Yield Municipal Bond Fund | NCHAX | — | NCHCX | NCHRX | ||||
Nuveen California Municipal Bond Fund | NCAAX | NCBBX | NCACX | NCSPX | ||||
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| Must be preceded by or accompanied by a prospectus. | NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE |
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Letter to Shareholders
Dear Shareholders,
I am pleased to have this opportunity to introduce myself to you as the new independent chairman of the Nuveen Fund Board, effective July 1, 2013. I am honored to have been selected as chairman, with its primary responsibility to serve the interests of the Nuveen Fund shareholders. My predecessor, Robert Bremner, was the first independent director to serve as chairman of the Board and I, and my fellow Board members, plan to continue his legacy of strong independent oversight of your funds.
The global economy has hit major turning points over the last several months to a year. The developed world is gradually recovering from their financial crisis while the emerging markets appear to be struggling with the downshift of China’s growth potential. Japan is entering a new era of growth after decades of economic stagnation and many of the Eurozone nations appear to be exiting their recession. Despite the positive events, there are still potential risks. Middle East tensions, rising oil prices, defaults in Europe and fallout from the financial stress in emerging markets could all reverse the recent progress in the global economy.
On the domestic front, the U.S. economy is experiencing sustainable slow growth. Corporate fundamentals are strong as earnings per share and corporate cash are at the highest level in two decades. Unemployment is trending down and the housing market has experienced a rebound, each assisting the positive economic scenario. However, there are some issues to be watched. Interest rates are expected to increase but significant uncertainty about the timing remains. Partisan politics in Washington D.C. with their troublesome outcome add to the uncertainties that could cause problems for the economy going forward.
In the near term, governments are focused on economic recovery and the growth of their economies, which could lead to an environment of attractive investment opportunities. Over the long term, the uncertainties mentioned earlier could hinder the potential growth. Because of this, Nuveen’s investment management teams work hard to balance return and risk with a range of investment strategies. I encourage you to read the following commentary on the management of your fund.
On behalf of the other members of the Nuveen Fund Board, we look forward to continuing to earn your trust in the months and years ahead.
Sincerely,
William J. Schneider
Chairman of the Board
October 21, 2013
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Nuveen California High Yield Municipal Bond Fund
Nuveen California Municipal Bond Fund
These Funds feature management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. Portfolio managers John V. Miller, CFA, and Scott R. Romans, PhD., examine key investment strategies and the Funds’ performance during the six-month reporting period ended August 31, 2013. John has managed the Nuveen California High Yield Municipal Bond Fund since 2006 and Scott has managed the Nuveen California Municipal Bond Fund since 2003.
How did the Funds perform during the six-month reporting period ended August 31, 2013?
The tables in the Fund Performance, Expense and Effective Leverage Ratios section of this report provide Class A Share total returns for the Funds for the six-month, one-year, five-year, ten-year and since-inception periods ended August 31, 2013. Each Fund’s Class A Share total returns at net asset value (NAV) are compared with the performance of its benchmark index and corresponding Lipper average.
During the reporting period, both the Nuveen California High Yield Municipal Bond Fund and Nuveen California Municipal Bond Fund trailed the results of their benchmarks, the S&P Municipal Yield Index and the S&P Municipal Bond Index, respectively. The Nuveen California High Yield Municipal Bond Fund also lagged the Lipper California Municipal Debt Funds Classification Average, while the Nuveen California Municipal Bond Fund outpaced this comparative performance measure.
Nuveen California High Yield Municipal Bond Fund
The Nuveen California High Yield Municipal Bond Fund endured a challenging reporting period, with unfavorable market conditions weighing down the portfolio’s results relative to the S&P Municipal Yield Index. During that time, there was a four-month period of sharply rising interest rates, the most pronounced move recorded in the municipal bond market, with data going back to 1988. Since bond yields and prices move in opposite directions, this rising interest rate environment caused municipal bond prices to fall.
The Fund’s duration was longer than its benchmark, making the portfolio more sensitive to the damaging effects of rising interest rates on bond prices. This longer duration resulted from the Fund’s substantial overweighting in longer maturity bonds, which proved unfavorable as the yield curve dramatically steepened; this occurs when the yields on longer dated issues rise more quickly than those on their shorter dated counterparts. Longer bonds experienced much wider price declines than shorter bonds and the Fund was disproportionately hurt by its elevated weighting in longer maturity credits in the prevailing interest rate environment.
The portfolio was well positioned in terms of credit quality. The majority of the bonds the Fund owned met our expectations for their credit quality and there were no new negative credit events weighing on results during the reporting period. The Fund’s portfolio began the reporting period with a few distressed credits occupying a very small portion of net assets, and these holdings experienced no additional price deterioration.
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
| Nuveen Investments | 5 |
Meanwhile, the Fund benefited from the price appreciation of several of its holdings. A number of tax allocation bonds in the portfolio began the period priced very cheaply. As investors’ concerns about the securities’ underlying credit quality abated, the bonds recovered in price, despite the difficult market conditions. Notable outperformers in the portfolio included bonds for the Hercules Redevelopment Tax Allocation Project and the Fillmore Redevelopment Tax Allocation District, both of which saw solid price gains. Another contributor included West Patterson Community Facilities District, whose bonds were advance refunded and experienced an immediate price increase, as these bonds are backed by U.S. government securities.
The Fund’s performance was hampered by its allocation to tender option bond trusts (TOBs). These leveraged securities, which typically provide higher than average income, allow portfolio managers to make use of a steep yield curve. The tradeoff, however, is TOBs may experience greater price depreciation when the market sells off sharply, as was the case during this reporting period. Since the yield curve became even steeper as the reporting period progressed, we continued to maintain this position. We believe these structures will continue to pay a favorable level of income, should the yield curve shift to more normal historical levels.
Nuveen California Municipal Bond Fund
The Fund’s duration and yield curve positioning were the largest factors causing the Fund to lag the S&P Municipal Bond Index. Having a relatively long duration can be helpful during periods of falling interest rates. When rates are rising sharply, however, as they were during the reporting period, this heightened interest rate sensitivity will likely detract from results The portfolio’s duration was longer than the overall California tax-exempt bond market. More specifically, the Fund was underweighted in bonds with relatively short maturities and overweighted in bonds on the long end of the yield curve. Both positions were detrimental, as interest rates on long bonds rose higher than their shorter dated counterparts, causing their prices to decline accordingly.
Favorable sector allocation significantly tempered the weakness resulting from duration. In particular, the Fund remained considerably overweight in the bonds of tax increment financing (TIF) districts, also known as redevelopment districts. Because this sector outperformed the California municipal bond market during the reporting period, the Fund’s additional exposure proved favorable. The Fund took advantage of relatively high yields in this sector based on what we believed were temporary factors depressing bond prices. As investors have gradually become more comfortable with redevelopment district bonds, these securities have begun to recover and our willingness to overweight this sector has been effective. The Fund also benefited from being underweight in utility and transportation (particularly toll road) bonds, two categories that did not perform as well for the benchmark. By contrast, the Fund was overweight in health care issues, which detracted from results due to that sector’s relative underperformance during the reporting period.
The Fund more modestly benefited from favorable credit quality positioning, specifically an overweighting in non-rated bonds. This strategy proved helpful given the category’s relative outperformance during the reporting period.
What strategies were used to manage the Funds during the six-month reporting period ended August 31, 2013? How did these strategies influence performance?
Nuveen California High Yield Municipal Bond Fund
The Fund invests primarily in municipal bonds that pay interest exempt from regular federal, California state and, in some cases, California local income taxes. The Fund seeks to identify below investment grade or medium- to lower rated, high yielding municipal bonds that offer attractive value in terms of current yield, price, credit quality, liquidity and/or future prospects.
Throughout the reporting period we applied our disciplined credit research strategy and looked for investments in high yield bonds that we believed provided our shareholders with a favorable trade-off between risk and reward. As market
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conditions deteriorated and bond prices fell across the board, we applied our credit standards to find bonds offering higher yields and lower prices. We selectively replaced holdings in the portfolio with new securities with similar structural characteristics but better yields, a trend we believed could help support the Fund’s dividend in the future.
The Fund experienced some investment outflows during the reporting period and we funded the redemptions largely through the proceeds of bond calls. In addition, the volume of these calls was significant enough to allow the Fund to take positions in sectors and individual bonds we believed were priced attractively and demonstrated improving credit quality.
We made new additions to the portfolio in a variety of sectors and across the credit quality spectrum. Bonds issued by the Stanford Hospital part of Stanford University Medical Center, was one notable purchase. These bonds, with a 2041 maturity date and solid investment grade credits with a rating of AA- by S&P, represented an atypical purchase. In light of heightened credit concerns during the reporting period, however, the Stanford Hospital bonds offered a surprisingly high yield for securities of such favorable credit quality. Under normal market conditions, these bonds would have been priced much higher so we took advantage of this rare value opportunity for our shareholders.
Other purchases included various community facilities development district bonds. This sector makes up a sizeable portion of the California municipal bond market and has previously presented good value. Recent portfolio additions from this sector included bonds for the Lammersville Community Facilities District, Huntington Beach Community Facilities District and Lake Elsinore Community Facilities District. In all of these cases, we anticipated steadily improving credit quality. The charter school sector provided another key opportunity during the period through the Fund’s purchases of California School Finance Authority bonds for the Value Schools in Los Angeles.
At period end, the very steep yield curve suggests that longer dated bonds, whose prices fell significantly more than those of shorter dated bonds, were providing investors with much better relative long-term value. We plan to maintain our strategy of emphasizing longer dated high yield municipal credits.
We continued to utilize swap contracts to shorten the duration of the Fund’s portfolio and to reduce sensitivity to movements in U.S. interest rates. During this period, the swap positions added mildly to performance.
Nuveen California Municipal Bond Fund
The Fund invests primarily in investment grade bonds in an effort to provide interest income exempt from regular federal, California state and, in some cases, California local income taxes.
Early in the reporting period, when interest rates were still relatively low, our management team focused on buying bonds we believed would likely be advance refunded if the low interest rate environment continued. This strategy included bonds that hadn’t previously been advance refunded or had slightly shorter call dates. As rates rose dramatically during the period, however, the likelihood that these bonds would be advanced refunded declined.
Considering the rising interest rate environment, our strategy began to emphasize bonds that might improve the yield generating ability of the portfolio without changing its overall risk profile. Because of the higher prevailing interest rates experienced later in the reporting period, we were able to sell portfolio holdings that had been issued during periods of historically low yields and use those proceeds to buy bonds with similar structures (and therefore similar levels of risk) but more favorable income characteristics. With this approach, we intended to increase the Fund’s income distribution. This strategy had the added advantage of allowing the Fund to realize tax losses to apply against future gains, thus reducing the tax liability for shareholders.
As the increase in municipal interest rates continued, the Fund took advantage of market conditions by adding new bonds typically with coupons greater than 5.00% priced at a premium and offering higher income levels. Generally, these bonds were more defensive and would typically provide a degree of protection if market conditions remained difficult.
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We sold certain redevelopment district bonds at prices we believed were highly favorable due to an increased demand from investors. We replaced these bonds with securities from the same sector but higher coupons priced at a premium and paying higher yields, thus positioning the portfolio more defensively and offering greater income potential. We used these same tactics in other land-backed sectors, such as special-tax and community facilities districts.
Adding lower and non-rated bonds provided additional opportunity for the Fund. Difficult market conditions caused many high yield municipal bond funds to experience elevated redemption activity, forcing them to sell credits they might otherwise have preferred to keep. As a result, securities were on the market at attractive prices. We took advantage of this situation by adding to the Fund’s holdings in land-secured, health care and tobacco-securitization bonds.
While the Fund used no derivatives for hedging purposes, performance was supported by a modest amount of leverage through a small tender option bond trust position, which remained in the portfolio to provide additional income. Also, the Fund had minimal exposure to Puerto Rico bonds, which continued to face significant credit challenges during the reporting period.
An Update Regarding Puerto Rico
Shareholders should be aware of issues impacting the Funds’ Puerto Rico holdings. In 2012, Moody’s downgraded Puerto Rico Sales Tax Financing Corporation (COFINA) bonds to Aa3 from Aa2 and Puerto Rico GO bonds to Baa3 from Baa1. These downgrades were based on Puerto Rico’s ongoing economic problems and, in the case of the COFINA bonds, the impact of these problems on the projected growth of sales tax revenues. However, the COFINA bonds were able to maintain a higher credit rating than the GOs because, unlike the revenue streams supporting some Puerto Rican issues, the sales taxes supporting the COFINA bonds cannot be diverted and used to support Puerto Rico’s GO bonds. During the reporting period, Puerto Rico paper generally underperformed the market as a whole. Because most of our holdings were the COFINA bonds, the overall impact on performance was minimal. We continue to emphasize Puerto Rico’s stronger credits. We view the COFINA bonds as potentially long-term holdings and note that the commonwealth recently introduced various sales tax initiatives aimed at improving future collections.
Impact of the Nuveen California High Yield Municipal Bond Fund’s Leveraging Strategy on Performance
One important factor impacting the returns of the Nuveen California High Yield Municipal Bond Fund relative to its comparative benchmarks was the amount of leverage the Fund used through its investments in inverse floating rate securities, which represent leveraged investments in underlying bonds. The Fund uses leverage because the manager believes that, over time, leveraging provides opportunities for additional income and total return, particularly in the recent market environment where short-term market rates are at or near historical lows, meaning that the short-term rates the Fund has been paying on its leveraging instruments have been much lower than the interest the Fund has been earning on its portfolio of long-term bonds that it has bought with the proceeds of that leverage. However, use of leverage also can expose the Fund to additional volatility. For example, the value of an inverse floating rate security will increase or decrease in value by a multiple of the increase or decrease of the market value of the underlying bond due to changes in market interest rates or the bond’s creditworthiness. Thus, when investing in an inverse floating rate security rather than directly in the underlying bond, the Fund will experience a greater increase in its net asset value if the underlying municipal bond increases in value, but will also experience a correspondingly larger decline in its net asset value if the underlying bond declines in value, which will make the Fund’s net asset value more volatile, and its total return performance more variable over time. In addition, income on inverse floating rate securities will decrease when short-term interest rates increase and increase when short-term interest rates decrease. As a consequence, although investments in inverse floating rate securities offer the opportunity for higher income than the underlying bond at times of low short-term market interest rates, those investments would serve to reduce the Fund’s income if short-term interest rates rise such that they exceed the net income on the underlying bond.
| 8 | Nuveen Investments |
The Fund’s use of leverage through inverse floating rate securities although generating significant additional net income for the Fund, contributed negatively to the all-in total return of the Fund over this reporting period.
Risk Considerations
Nuveen California High Yield Municipal Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, state concentration risk, tax risk, political and economic risk, and income risk. As interest rates rise, bond prices fall. Credit risk refers to an issuers ability to make interest and principal payments when due.
The Fund concentrates in non-investment-grade and unrated bonds with long maturities and durations which carry heightened credit risk, liquidity risk, and potential for default. In addition, the Fund oftentimes engages in a significant amount of portfolio leverage and in doing so, assumes a high level of risk in pursuit of its objectives. Leverage involves the risk that the Fund could lose more than its original investment and also increases the Fund’s exposure to volatility, interest rate risk and credit risk.
Nuveen California Municipal Bond Fund
Mutual fund investing involves risk; principal loss is possible. Debt or fixed income securities such as those held by the Fund, are subject to market risk, credit risk, interest rate risk, call risk, state concentration risk, tax risk, and income risk. As interest rates rise, bond prices fall. Credit risk refers to an issuers ability to make interest and principal payments when due. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. The Fund’s use of inverse floaters creates effective leverage. Leverage involves the risk that the Fund could lose more than its original investment and also increases the Fund’s exposure to volatility and interest rate risk.
Dividend Information
Each Fund seeks to pay dividends at a rate that reflects the past and projected performance of the Fund. To permit a Fund to maintain a more stable monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If the Fund has cumulatively earned more than it has paid in dividends, it will hold the excess in reserve as undistributed net investment income (UNII) as part of the Fund’s net asset value. Conversely, if the Fund has cumulatively paid in dividends more than it has earned, the excess will constitute negative UNII that will likewise be reflected in the Fund’s net asset value. Each Fund will, over time, pay all its net investment income as dividends to shareholders. As of August 31, 2013, the Funds had positive UNII balances for tax purposes, based upon our best estimate, and financial reporting purposes.
| Nuveen Investments | 9 |
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| 10 | Nuveen Investments |
Fund Performance, Expense and Effective Leverage Ratios
The Fund Performance, Expense and Effective Leverage Ratios for each Fund are shown on the following two pages.
Returns quoted represent past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Returns without sales charges would be lower if the sales charge were included. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Income is generally exempt from regular federal income taxes. Some income may be subject to state and local income taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax.
Returns may reflect a contractual agreement between certain Funds and the investment adviser to waive certain fees and expenses; see Notes to Financial Statements, Footnote 7 — Management Fees and Other Transactions with Affiliates for more information. In addition, returns may reflect a voluntary expense limitation by the Funds’ investment adviser that may be modified or discontinued at any time without notice. For the most recent month-end performance visit www.nuveen.com or call (800) 257-8787.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees. Fund returns assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for the Funds’ Class A Shares at net asset value (NAV) only.
The expense ratios shown reflect the Funds’ total operating expenses (before fee waivers or expense reimbursements, if any) as shown in the Funds’ most recent prospectus. The expense ratios include management fees and other fees and expenses.
Leverage is created whenever a Fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital. The effective leverage ratio shown is the amount of investment exposure created either through borrowings or indirectly through inverse floaters, divided by the assets invested, including those assets that were purchased with the proceeds of the leverage, or referenced by the levered instrument.
| Nuveen Investments | 11 |
Fund Performance, Expense and Effective Leverage Ratios (continued)
Nuveen California High Yield Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense and Effective Leverage Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of August 31, 2013
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | Since Inception* | |||||||||||||
Class A Shares at NAV | -11.16% | -6.01% | 4.92% | 2.66% | ||||||||||||
Class A Shares at maximum Offering Price | -14.93% | -9.92% | 4.01% | 2.07% | ||||||||||||
S&P Municipal Yield Index** | -8.33% | -3.49% | 5.05% | 3.88% | ||||||||||||
Lipper California Municipal Debt Funds Classification Average** | -7.52% | -4.68% | 4.12% | 3.34% | ||||||||||||
Class C Shares | -11.42% | -6.52% | 4.35% | 2.10% | ||||||||||||
Class I Shares | -11.08% | -5.83% | 5.12% | 2.86% | ||||||||||||
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | Since Inception* | |||||||||||||
Class A Shares at NAV | -7.66% | -3.65% | 7.34% | 3.13% | ||||||||||||
Class A Shares at maximum Offering Price | -11.51% | -7.73% | 6.41% | 2.54% | ||||||||||||
Class C Shares | -7.92% | -4.27% | 6.73% | 2.56% | ||||||||||||
Class I Shares | -7.57% | -3.46% | 7.55% | 3.32% | ||||||||||||
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||
Class A Shares | 0.89% | |
Class C Shares | 1.44% | |
Class I Shares | 0.69% | |
Effective Leverage Ratio as of August 31, 2013
Effective Leverage Ratio | 12.28% |
| * | Since inception returns are from 3/28/06. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| 12 | Nuveen Investments |
Nuveen California Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense and Effective Leverage Ratios section for further explanation of the information included within this page.
Fund Performance
Average Annual Total Returns as of August 31, 2013
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -6.38% | -3.04% | 5.19% | 4.61% | ||||||||||||
Class A Shares at maximum Offering Price | -10.30% | -7.08% | 4.29% | 4.16% | ||||||||||||
S&P Municipal Bond Index* | -5.99% | -3.74% | -4.50% | -4.55% | ||||||||||||
S&P Municipal Bond California Index* | -5.98% | -3.05% | 4.80% | 4.80% | ||||||||||||
Lipper California Municipal Debt Funds Classification Average* | -7.52% | -4.68% | 4.12% | 3.89% | ||||||||||||
Class B Shares w/o CDSC | -6.75% | -3.69% | 4.40% | 3.99% | ||||||||||||
Class B Shares w/CDSC | -11.33% | -7.41% | 4.23% | 3.99% | ||||||||||||
Class C Shares | -6.66% | -3.49% | 4.61% | 4.04% | ||||||||||||
Class I Shares | -6.21% | -2.69% | 5.42% | 4.83% | ||||||||||||
Average Annual Total Returns as of September 30, 2013 (Most Recent Calendar Quarter)
| Cumulative | Average Annual | |||||||||||||||
| 6-Month | 1-Year | 5-Year | 10-Year | |||||||||||||
Class A Shares at NAV | -4.15% | -1.56% | 6.83% | 4.53% | ||||||||||||
Class A Shares at maximum Offering Price | -8.19% | -5.73% | 5.93% | 4.08% | ||||||||||||
Class B Shares w/o CDSC | -4.62% | -2.32% | 6.01% | 3.91% | ||||||||||||
Class B Shares w/CDSC | -9.31% | -6.10% | 5.85% | 3.91% | ||||||||||||
Class C Shares | -4.44% | -2.03% | 6.25% | 3.96% | ||||||||||||
Class I Shares | -4.07% | -1.40% | 7.04% | 4.74% | ||||||||||||
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (CDSC), also known as a back-end sales charge, if redeemed within eighteen months of purchase. Class B Shares have a CDSC that begins at 5% for redemptions during the first year and declines periodically until after six years when the charge becomes 0%. Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Expense Ratios | ||||
Class A Shares | 0.80% | |||
Class B Shares | 1.56% | |||
Class C Shares | 1.35% | |||
Class I Shares | 0.60% | |||
Effective Leverage Ratio as of August 31, 2013
Effective Leverage Ratio | 1.25% |
| * | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| Nuveen Investments | 13 |
Dividend Yield is the most recent dividend per share (annualized) divided by the offering price per share.
The SEC 30-Day Yield is a standardized measure of the Fund’s yield that accounts for the future amortization of premiums or discounts of bonds held in the Fund’s portfolio. The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Dividend Yield may differ from the SEC 30-Day Yield because the Fund may be paying out more or less than it is earning and it may not include the effect of amortization of bond premium.
The Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis at a specified tax rate. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the Taxable-Equivalent Yield is lower.
Nuveen California High Yield Municipal Bond Fund
| Dividend Yield | SEC 30-Day Yield | Taxable- Equivalent Yield1 | ||||||||||
Class A Shares2 | 5.02% | 5.06% | 7.75% | |||||||||
Class C Shares | 4.64% | 4.97% | 7.61% | |||||||||
Class I Shares | 5.47% | 5.72% | 8.76% | |||||||||
Nuveen California Municipal Bond Fund
| Dividend Yield | SEC 30-Day Yield | Taxable- Equivalent Yield1 | ||||||||||
Class A Shares2 | 4.17% | 3.67% | 5.62% | |||||||||
Class B Shares | 3.58% | 3.23% | 4.95% | |||||||||
Class C Shares | 3.77% | 3.44% | 5.27% | |||||||||
Class I Shares | 4.53% | 4.20% | 6.43% | |||||||||
| 1 | The Taxable-Equivalent Yield is based on the Fund’s SEC 30-Day Yield on the indicated date and a combined federal and state income tax rate of 34.7%. |
| 2 | The SEC Yield for Class A shares quoted in the table reflects the maximum sales load. Investors paying a reduced load because of volume discounts, investors paying no load because they qualify for one of the several exclusions from the load, and existing shareholders who previously paid a load but would like to know the SEC Yield applicable to their shares on a going-forward basis, should understand that the SEC Yield effectively applicable to them would be higher than the figure quoted in the table. |
| 14 | Nuveen Investments |
Holding Summaries as of August 31, 2013
This data relates to the securities held in each Fund’s portfolio of investments. It should not be construed as a measure of performance for the Fund itself.
Ratings shown are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below investment grade ratings. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. Holdings designated N/R are not rated by these national rating agencies.
Nuveen California High Yield Municipal Bond Fund
| Bond Credit Quality2,3 | ||||
| AAA/U.S. Guaranteed | 0.3% | |||
| AA | 13.4% | |||
| A | 22.9% | |||
| BBB | 18.7% | |||
| BB or Lower | 11.9% | |||
| N/R | 33.6% | |||
Nuveen California Municipal Bond Fund
| Bond Credit Quality2,3 | ||||
| AAA/U.S. Guaranteed | 3.6% | |||
| AA | 25.2% | |||
| A | 38.2% | |||
| BBB | 15.9% | |||
| BB or Lower | 6.0% | |||
| N/R | 10.2% | |||
| Portfolio Composition1 | ||||
| Tax Obligation/Limited | 52.6% | |||
| Education and Civic Organizations | 10.0% | |||
| Health Care | 9.3% | |||
| Consumer Staples | 5.8% | |||
| Transportation | 5.6% | |||
| Tax Obligation/General | 4.2% | |||
| Other | 12.5% | |||
| Portfolio Composition1 | ||||
| Tax Obligation/Limited | 34.7% | |||
| Health Care | 16.3% | |||
| Tax Obligation/General | 16.1% | |||
| Education and Civic Organizations | 8.0% | |||
| Water and Sewer | 7.6% | |||
| Utilities | 4.1% | |||
| Other | 13.2% | |||
| 1 | As a percentage of total investments (excluding investments in derivatives, where applicable). Holdings are subject to change. |
| 2 | Percentage may not add to 100% due to the exclusion of Other Assets Less Liabilities from the table. |
| 3 | As a percentage of total investment exposure. Holdings are subject to change. |
| Nuveen Investments | 15 |
As a shareholder of one or more of the Funds, you incur two types of costs: (1) transaction costs, including up-front and back-end sales charges (loads) or redemption fees, where applicable; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees, where applicable; and other Fund expenses. The Examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held for the period.
The information under “Actual Performance,” together with the amount you invested, allows you to estimate actual expenses incurred over the reporting period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60) and multiply the result by the cost shown for your share class, in the row entitled “Expenses Incurred During Period” to estimate the expenses incurred on your account during this period.
The information under “Hypothetical Performance,” provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expense you incurred for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds or share classes. In addition, if these transaction costs were included, your costs would have been higher.
Nuveen California High Yield Municipal Bond Fund
| Hypothetical Performance | ||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||
| A Shares | C Shares | I Shares | A Shares | C Shares | I Shares | |||||||||||||||||||||
| Beginning Account Value (3/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||
| Ending Account Value (8/31/13) | $ | 888.40 | $ | 885.80 | $ | 889.20 | $ | 1,020.87 | $ | 1,018.05 | $ | 1,021.83 | ||||||||||||||
| Expenses Incurred During Period | $ | 4.09 | $ | 6.75 | $ | 3.19 | $ | 4.38 | $ | 7.22 | $ | 3.41 | ||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .86%, 1.42% and .67% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Nuveen California Municipal Bond Fund
| Hypothetical Performance | ||||||||||||||||||||||||||||||||||
| Actual Performance | (5% annualized return before expenses) | |||||||||||||||||||||||||||||||||
| A Shares | B Shares | C Shares | I Shares | A Shares | B Shares | C Shares | I Shares | |||||||||||||||||||||||||||
| Beginning Account Value (3/01/13) | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | $ | 1,000.00 | ||||||||||||||||||
| Ending Account Value (8/31/13) | $ | 936.20 | $ | 932.50 | $ | 933.40 | $ | 937.90 | $ | 1,021.27 | $ | 1,017.49 | $ | 1,018.50 | $ | 1,022.28 | ||||||||||||||||||
| Expenses Incurred During Period | $ | 3.81 | $ | 7.45 | $ | 6.48 | $ | 2.83 | $ | 3.97 | $ | 7.78 | $ | 6.77 | $ | 2.96 | ||||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .78%, 1.53%, 1.33% and .58% for Classes A, B, C and I, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
| 16 | Nuveen Investments |
Portfolio of Investments (Unaudited)
Nuveen California High Yield Municipal Bond Fund
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Consumer Discretionary – 0.5% | ||||||||||||||||||
| $ | 270 | Austin Convention Enterprises Inc., Texas, Convention Center Hotel Revenue Bonds, Third Tier Series 2001C, 9.750%, 1/01/26 | 1/14 at 100.00 | N/R | $ | 271,361 | ||||||||||||
| 1,000 | Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds, Southgate Suites Hotel LLC Project, Series 2007A, 6.750%, 12/15/37 (4) | 12/17 at 100.00 | N/R | 418,920 | ||||||||||||||
| 500 | Morongo Band of Mission Indians, California, Enterprise Revenue Bonds, Series 2008B, 6.500%, 3/01/28 | 3/18 at 100.00 | N/R | 540,140 | ||||||||||||||
| 170 | Norfolk Economic Development Authority, Virginia, Empowerment Zone Facility Revenue Bonds, BBL Old Dominion University LLC Project Revenue Bonds, Series 2006B, 5.625%, 11/01/15 (Alternative Minimum Tax) | No Opt. Call | N/R | 165,706 | ||||||||||||||
| 1,940 | Total Consumer Discretionary | 1,396,127 | ||||||||||||||||
Consumer Staples – 5.9% | ||||||||||||||||||
| 3,045 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Gold Country Settlement Funding Corporation, Series 2006, 0.000%, 6/01/33 | 11/13 at 100.00 | CCC | 657,172 | ||||||||||||||
| 1,000 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Golden Gate Tobacco Funding Corporation, Turbo, Series 2007A, 5.000%, 6/01/47 | 6/17 at 100.00 | BB | 715,680 | ||||||||||||||
| 50 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 5.250%, 6/01/45 | 6/15 at 100.00 | B– | 37,056 | ||||||||||||||
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: | ||||||||||||||||||
| 885 | 4.500%, 6/01/27 | 6/17 at 100.00 | B | 747,055 | ||||||||||||||
| 6,250 | 5.000%, 6/01/33 | 6/17 at 100.00 | B | 4,601,063 | ||||||||||||||
| 2,695 | 5.750%, 6/01/47 | 6/17 at 100.00 | B | 1,990,338 | ||||||||||||||
| 2,500 | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-2, 5.300%, 6/01/37 | 6/22 at 100.00 | B | 1,766,550 | ||||||||||||||
| 5,000 | Inland Empire Tobacco Securitization Authority, California, Tobacco Settlement Asset-Backed Bonds, Series 2007, 0.000%, 6/01/36 | 6/17 at 28.99 | B | 755,600 | ||||||||||||||
| 1,000 | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.375%, 6/01/38 | 6/15 at 100.00 | B– | 765,070 | ||||||||||||||
Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A: | ||||||||||||||||||
| 1,000 | 5.000%, 6/01/37 | 6/14 at 100.00 | BB+ | 752,190 | ||||||||||||||
| 3,845 | 5.125%, 6/01/46 | 6/14 at 100.00 | B+ | 2,793,700 | ||||||||||||||
| 27,270 | Total Consumer Staples | 15,581,474 | ||||||||||||||||
Education and Civic Organizations – 10.1% | ||||||||||||||||||
| 2,000 | California Educational Facilities Authority, Revenue Bonds, California College of the Arts, Series 2005, 5.000%, 6/01/35 | 6/15 at 100.00 | BBB– | 1,796,660 | ||||||||||||||
| 1,065 | California Educational Facilities Authority, Revenue Bonds, Dominican University, Series 2006, 5.000%, 12/01/36 | 12/16 at 100.00 | Baa3 | 991,547 | ||||||||||||||
| 75 | California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35 | 10/15 at 100.00 | A3 | 75,011 | ||||||||||||||
| 100 | California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006, 5.000%, 11/01/36 | 11/15 at 100.00 | A2 | 94,614 | ||||||||||||||
California Educational Facilities Authority, Revenue Bonds, Woodbury University, Series 2006: | ||||||||||||||||||
| 1,165 | 5.000%, 1/01/30 | 1/15 at 100.00 | Baa3 | 1,080,130 | ||||||||||||||
| 500 | 5.000%, 1/01/36 | 1/15 at 100.00 | Baa3 | 447,350 | ||||||||||||||
| 1,000 | California Municipal Finance Authority, Charter School Lease Revenue Bonds, Rocketship 7 – Alma Academy Elementary School, Series 2012A, 6.250%, 6/01/43 | 12/21 at 101.00 | N/R | 871,980 | ||||||||||||||
| Nuveen Investments | 17 |
Portfolio of Investments (Unaudited)
Nuveen California High Yield Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
California Municipal Finance Authority, Charter School Revenue Bonds, Partnerships to Uplift Communities Project, Series 2012A: | ||||||||||||||||||
| $ | 1,330 | 5.000%, 8/01/32 | No Opt. Call | BB+ | $ | 1,182,077 | ||||||||||||
| 1,850 | 5.250%, 8/01/42 | No Opt. Call | BB+ | 1,614,921 | ||||||||||||||
| 675 | 5.300%, 8/01/47 | 8/22 at 100.00 | BB+ | 585,083 | ||||||||||||||
| 1,000 | California Municipal Finance Authority, Education Revenue Bonds, American Heritage Education Foundation Project, Series 2006A, 5.250%, 6/01/36 | 6/16 at 100.00 | BB– | 798,300 | ||||||||||||||
| 1,335 | California Municipal Finance Authority, Educational Facilities Revenue Bonds, OCEAA Project, Series 2008A, 7.000%, 10/01/39 | 10/18 at 100.00 | N/R | 1,260,374 | ||||||||||||||
| 1,500 | California Municipal Finance Authority, Revenue Bonds, Biola University, Refunding Series 2008A, 5.875%, 10/01/34 | 4/18 at 100.00 | Baa1 | 1,507,680 | ||||||||||||||
| 1,360 | California Municipal Finance Authority, Revenue Bonds, Biola University, Series 2013, 5.000%, 10/01/42 | 10/23 at 100.00 | Baa1 | 1,209,652 | ||||||||||||||
| 300 | California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento Valley & Northern Nevada Project, Series 2012A, 6.625%, 1/01/32 | 1/22 at 100.00 | N/R | 304,854 | ||||||||||||||
| 600 | California School Finance Authority, Charter School Revenue Bonds, Coastal Academy Project, Series 2013A, 5.000%, 10/01/42 | 10/22 at 100.00 | BBB– | 503,502 | ||||||||||||||
| 1,000 | California School Finance Authority, Educational Facilities Revenue Bonds, Tri-Valley Learning Corporation, Series 2012A, 7.000%, 6/01/47 | 6/20 at 102.00 | N/R | 984,580 | ||||||||||||||
| 1,250 | California School Finance Authority, School Facility Revenue Bonds, Value Schools, Series 2013, 6.650%, 7/01/33 | 7/23 at 100.00 | BB+ | 1,221,750 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Charter School Revenue Bonds – Albert Einstein Academy for Letters, Arts, & Sciences Charter School Series 2012, 6.000%, 11/01/32 | No Opt. Call | N/R | 871,490 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Charter School Revenue Bonds, Rocketship 4 – Mosaic Elementary Charter School, Series 2011A, 8.500%, 12/01/41 | 12/21 at 100.00 | N/R | 1,063,680 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Revenue Bonds, Lancer Plaza Project, Series 2013, 5.875%, 11/01/43 | 8/23 at 100.00 | N/R | 851,640 | ||||||||||||||
| 1,040 | California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46 | 7/21 at 100.00 | BBB– | 1,077,211 | ||||||||||||||
| 815 | California Statewide Community Development Authority, Charter School Revenue Bonds, Rocklin Academy Charter, Series 2011A, 8.250%, 6/01/41 | 6/21 at 100.00 | BB+ | 893,900 | ||||||||||||||
| 500 | California Statewide Community Development Authority, Revenue Bonds, California Baptist University, Series 2007A, 5.500%, 11/01/38 | 11/17 at 102.00 | N/R | 452,700 | ||||||||||||||
| 2,135 | California Statewide Community Development Authority, Revenue Bonds, Drew School, Series 2007, 5.300%, 10/01/37 | 10/15 at 102.00 | N/R | 1,888,877 | ||||||||||||||
| 200 | California Statewide Community Development Authority, Revenue Bonds, International School of the Peninsula, Palo Alto, California, Series 2006, 5.000%, 11/01/29 | 11/16 at 100.00 | N/R | 184,724 | ||||||||||||||
| 390 | California Statewide Community Development Authority, Revenue Bonds, Montessori in Redlands School, Series 2007A, 5.125%, 12/01/36 | 12/16 at 100.00 | N/R | 335,264 | ||||||||||||||
| 200 | Hawaii Department of Budget and Finance, Private School Revenue Bonds, Montessori of Maui, Series 2007, 5.500%, 1/01/37 | 2/17 at 100.00 | N/R | 169,570 | ||||||||||||||
| 585 | La Vernia Education Financing Corporation, Texas, Charter School Revenue Bonds, Riverwalk Education Foundation, Series 2007A, 5.450%, 8/15/36 | 2/14 at 100.00 | N/R | 460,968 | ||||||||||||||
| 100 | Pima County Industrial Development Authority, Arizona, Choice Education and Development Charter School Revenue Bonds, Series 2006, 6.375%, 6/01/36 | 6/16 at 100.00 | N/R | 91,078 | ||||||||||||||
| 65 | Pima County Industrial Development Authority, Arizona, Educational Revenue Bonds, Paradise Education Center Charter School, Series 2006, 6.000%, 6/01/36 | 6/16 at 100.00 | BBB– | 60,576 | ||||||||||||||
| 18 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 375 | Pingree Grove Village, Illinois, Charter School Revenue Bonds, Cambridge Lakes Learning Center, Series 2007, 6.000%, 6/01/36 | 6/16 at 102.00 | N/R | $ | 296,603 | ||||||||||||
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Fin Authority, Higher Ed Rev and Rev Refunding Bonds, University of the Sacred Heart Project, Series 2012: | ||||||||||||||||||
| 795 | 4.000%, 10/01/26 | 10/22 at 100.00 | BBB | 567,368 | ||||||||||||||
| 1,250 | 4.375%, 10/01/31 | No Opt. Call | BBB | 841,800 | ||||||||||||||
| 29,555 | Total Education and Civic Organizations | 26,637,514 | ||||||||||||||||
Health Care – 9.4% | ||||||||||||||||||
| 500 | ABAG Finance Authority for Nonprofit Corporations, California, Revenue Bonds, Sharp HealthCare, Series 2009B, 6.375%, 8/01/34 | 8/14 at 100.00 | A+ | 519,705 | ||||||||||||||
| 1,220 | California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children’s Hospital, Series 2012A, 5.000%, 8/15/51 (UB) (5) | 8/22 at 100.00 | AA | 1,126,841 | ||||||||||||||
| 695 | California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children’s Hospital, Tender Option Bond Trust 4726, 18.000%, 8/15/51 (IF) | 8/22 at 100.00 | AA | 482,719 | ||||||||||||||
California Health Facilities Financing Authority, Revenue Bonds, Stanford Hospitals and Clinics, Tender Option Bond Trust 3294: | ||||||||||||||||||
| 250 | 18.060%, 8/15/41 (IF) (5) | 8/22 at 100.00 | AA– | 207,430 | ||||||||||||||
| 1,000 | 18.055%, 8/15/41 (IF) (5) | 8/22 at 100.00 | AA– | 829,760 | ||||||||||||||
| 1,000 | California Municipal Financing Authority, Certificates of Participation, Community Hospitals of Central California, Series 2007, 5.250%, 2/01/27 | 2/17 at 100.00 | BBB | 1,004,710 | ||||||||||||||
| 1,500 | California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31 | 7/17 at 100.00 | N/R | 1,272,120 | ||||||||||||||
| 485 | California Statewide Community Development Authority, Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008A, 5.500%, 7/01/30 | 7/17 at 100.00 | A | 522,655 | ||||||||||||||
California Statewide Community Development Authority, Revenue Bonds, Childrens Hospital of Los Angeles, Series 2007: | ||||||||||||||||||
| 250 | 5.000%, 8/15/39 – NPFG Insured | 8/17 at 100.00 | A | 231,363 | ||||||||||||||
| 2,500 | 5.000%, 8/15/47 | 8/17 at 100.00 | BBB+ | 2,238,775 | ||||||||||||||
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A: | ||||||||||||||||||
| 750 | 5.250%, 7/01/30 | 7/15 at 100.00 | BBB– | 752,348 | ||||||||||||||
| 515 | 5.250%, 7/01/35 | 7/15 at 100.00 | BBB– | 513,306 | ||||||||||||||
| 715 | California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3048, 18.682%, 11/15/32 (IF) | 5/18 at 100.00 | AA– | 619,362 | ||||||||||||||
| 1,285 | California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3102, | 5/18 at 100.00 | AA– | 1,113,118 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.234%, 7/01/47 – AGM Insured (IF) | 7/18 at 100.00 | AA– | 1,012,840 | ||||||||||||||
| 1,490 | Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38 | 12/17 at 100.00 | BBB | 1,615,428 | ||||||||||||||
| 350 | Madera County, California, Certificates of Participation, Children’s Hospital Central California, Series 2010, 5.375%, 3/15/36 | 3/20 at 100.00 | A+ | 348,632 | ||||||||||||||
| 1,060 | Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 7.000%, 11/01/35 | 11/20 at 100.00 | BB+ | 1,062,512 | ||||||||||||||
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009: | ||||||||||||||||||
| 1,000 | 5.500%, 11/01/19 | No Opt. Call | Baa3 | 1,061,580 | ||||||||||||||
| 500 | 6.750%, 11/01/39 | 11/19 at 100.00 | Baa3 | 511,555 | ||||||||||||||
| Nuveen Investments | 19 |
Portfolio of Investments (Unaudited)
Nuveen California High Yield Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 500 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41 | 11/20 at 100.00 | Baa3 | $ | 477,125 | ||||||||||||
Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A: | ||||||||||||||||||
| 2,500 | 5.000%, 7/01/38 | 7/17 at 100.00 | Baa2 | 2,273,450 | ||||||||||||||
| 500 | 5.000%, 7/01/47 | 7/17 at 100.00 | Baa2 | 438,380 | ||||||||||||||
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011: | ||||||||||||||||||
| 1,000 | 8.000%, 12/01/26 | 12/21 at 100.00 | BB | 1,140,780 | ||||||||||||||
| 500 | 7.500%, 12/01/41 | 12/21 at 100.00 | BB | 539,750 | ||||||||||||||
| 2,500 | Tulare Local Health Care District, California, Revenue Bonds, Series 2007, 5.200%, 11/01/32 | 11/17 at 100.00 | B+ | 1,947,900 | ||||||||||||||
| 1,000 | Washington Township Health Care District, California, Revenue Bonds, Refunding Series 2007A, 5.000%, 7/01/32 | 7/17 at 100.00 | Baa1 | 928,990 | ||||||||||||||
| 60 | Weatherford Hospital Authority, Oklahoma, Sales Tax Revenue Bonds, Series 2006, 6.000%, 5/01/31 | 5/16 at 103.00 | N/R | 55,739 | ||||||||||||||
| 26,625 | Total Health Care | 24,848,873 | ||||||||||||||||
Housing/Multifamily – 3.9% | ||||||||||||||||||
| 1,400 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010B, 7.250%, 8/15/45 | 8/20 at 100.00 | N/R | 1,356,880 | ||||||||||||||
| 480 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47 | 8/22 at 100.00 | A1 | 452,165 | ||||||||||||||
| 400 | California Municipal Finance Authority, Revenue Bonds, University Students Coop Association, Series 2007, 4.750%, 4/01/27 | 4/17 at 100.00 | BBB– | 377,016 | ||||||||||||||
| 1,000 | California Statewide Community Development Authority, Lancer Educational Student Housing Revenue Bonds, California Baptist University, Series 2007, 5.625%, 6/01/33 | 6/17 at 102.00 | N/R | 902,300 | ||||||||||||||
| 365 | California Statewide Community Development Authority, Multifamily Housing Revenue Bonds, Magnolia City Lights, Series 1999X, 6.650%, 7/01/39 | 11/13 at 100.00 | N/R | 341,677 | ||||||||||||||
| 740 | Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Augusta Communities Mobile Home Park, Series 2012A, 5.000%, 5/15/39 | 5/22 at 100.00 | A– | 690,302 | ||||||||||||||
| 1,000 | Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San Juan Mobile Estates Project, Series 2006A, 5.125%, 5/15/41 | 5/16 at 100.00 | A | 944,180 | ||||||||||||||
| 1,250 | Richmond, California, Joint Powers Financing Agency Multifamily Housing Revenue Bonds, Westridge Hilltop Apartments, Series 2007, 5.000%, 12/15/33 | 12/13 at 100.00 | Baa2 | 1,026,775 | ||||||||||||||
| 3,271 | San Jose, California, Multifamily Housing Revenue Bonds, Almaden Family Apartments Project, Series 2007B, 4.720%, 11/15/37 (Alternative Minimum Tax) | No Opt. Call | N/R | 2,733,097 | ||||||||||||||
| 490 | Santa Clara County Housing Authority, California, Multifamily Housing Revenue Bonds, Blossom River Project, Series 1998A, 6.500%, 9/01/39 | 11/13 at 100.00 | N/R | 463,643 | ||||||||||||||
| 610 | Ventura County Area Housing Authority, California, Mira Vista Senior Apartments Project, Junior Subordinate Series 2006C, 6.500%, 12/01/39 (Mandatory put 7/01/16) (Alternative Minimum Tax) | No Opt. Call | N/R | 580,842 | ||||||||||||||
| 485 | Wilson County Health and Educational Facilities Board, Tennessee, Senior Living Revenue Bonds, Rutland Place, Series 2007A, 6.300%, 7/01/37 | 7/17 at 100.00 | N/R | 349,961 | ||||||||||||||
| 11,491 | Total Housing/Multifamily | 10,218,838 | ||||||||||||||||
Housing/Single Family – 0.3% | ||||||||||||||||||
| 500 | California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2007E, 4.800%, 8/01/37 (Alternative Minimum Tax) | 2/17 at 100.00 | BBB | 427,675 | ||||||||||||||
| 20 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Housing/Single Family (continued) | ||||||||||||||||||
| $ | 600 | California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206, 8.040%, 8/01/25 (Alternative Minimum Tax) (IF) | 2/16 at 100.00 | BBB | $ | 431,682 | ||||||||||||
| 1,100 | Total Housing/Single Family | 859,357 | ||||||||||||||||
Industrials – 0.1% | ||||||||||||||||||
| 65 | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax) | 1/16 at 102.00 | BBB | 65,247 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax) (4) | No Opt. Call | D | 11,230 | ||||||||||||||
| 750 | Western Reserve Port Authority, Ohio, Solid Waste Facility Revenue Bonds, Central Waste Inc., Series 2007A, 6.350%, 7/01/27 (Alternative Minimum Tax) (4) | 7/17 at 102.00 | N/R | 104,513 | ||||||||||||||
| 1,815 | Total Industrials | 180,990 | ||||||||||||||||
Long-Term Care – 3.0% | ||||||||||||||||||
California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009: | ||||||||||||||||||
| 500 | 8.000%, 11/01/29 | 11/19 at 100.00 | Baa1 | 573,455 | ||||||||||||||
| 1,040 | 8.500%, 11/01/39 | 11/19 at 100.00 | AA | 1,203,894 | ||||||||||||||
| 520 | California Statewide Communities Development Authority, Revenue Bonds, American Baptist Homes of the West, Series 2010, 6.250%, 10/01/39 | 10/19 at 100.00 | BBB+ | 528,762 | ||||||||||||||
| 2,305 | California Statewide Communities Development Authority, Revenue Bonds, American Baptist Homes of the West, Series 2013A, 5.000%, 10/01/43 | 10/22 at 100.00 | BBB+ | 1,950,445 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Revenue Bonds, Terraces San Joaquin Gardens, Series 2012A, 5.625%, 10/01/32 | 10/22 at 100.00 | N/R | 947,340 | ||||||||||||||
| 1,000 | California Statewide Community Development Authority, Revenue Bonds, Hollenbeck Palms, Magnolia Assisted Living, Series 2007A, 4.600%, 2/01/37 – RAAI Insured (Alternative Minimum Tax) | 2/17 at 100.00 | N/R | 847,850 | ||||||||||||||
| 1,000 | Fulton County Residential Care Facilities Authority, Georgia, Revenue Bonds, Elderly Care, Lenbrook Square Project, Series 2006A, 5.125%, 7/01/37 | 7/17 at 100.00 | N/R | 831,000 | ||||||||||||||
| 50 | Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds, CDF Healthcare of Louisiana LLC, Series 2006A, 7.000%, 6/01/36 | 6/16 at 101.00 | N/R | 47,518 | ||||||||||||||
| 1,000 | Wisconsin Public Finance Authority, Revenue Bonds, SearStone Retirement Community of Cary North Carolina, Series 2012A, 8.625%, 6/01/47 | 6/22 at 100.00 | N/R | 1,029,100 | ||||||||||||||
| 8,415 | Total Long-Term Care | 7,959,364 | ||||||||||||||||
Tax Obligation/General – 4.2% | ||||||||||||||||||
Bakersfield City School District, Kern County, California, General Obligation Bonds, Series 2012C: | ||||||||||||||||||
| 1,700 | 0.000%, 5/01/37 | No Opt. Call | Aa2 | 474,793 | ||||||||||||||
| 5,000 | 0.000%, 5/01/47 | 5/40 at 100.00 | Aa2 | 1,280,250 | ||||||||||||||
| 380 | Bessemer, Alabama, General Obligation Warrants, Series 2007, 6.500%, 2/01/37 | 2/17 at 102.00 | N/R | 309,062 | ||||||||||||||
| 1,115 | Denair Unified School District, Stanislaus County, California, General Obligation Bonds, Series 2002A, 0.000%, 8/01/26 – FGIC Insured | No Opt. Call | A | 523,035 | ||||||||||||||
| 1,000 | Guam Government, General Obligation Bonds, 2009 Series A, 7.000%, 11/15/39 | 11/19 at 100.00 | B+ | 1,050,020 | ||||||||||||||
| 500 | Guam, General Obligation Bonds, Series 2007A, 5.250%, 11/15/37 | 11/17 at 100.00 | B+ | 451,215 | ||||||||||||||
| 1,205 | Jamul Dulzura Union School District, San Diego County, California, General Obligation Bonds, Election 1995 Series 2004A, 0.000%, 11/01/28 – NPFG Insured | No Opt. Call | A+ | 476,529 | ||||||||||||||
| Nuveen Investments | 21 |
Portfolio of Investments (Unaudited)
Nuveen California High Yield Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 5,000 | Lake Tahoe Unified School District, El Dorado County, California, General Obligation Bonds, Series 2010, 0.000%, 8/01/45 – AGM Insured | No Opt. Call | AA– | $ | 1,662,850 | ||||||||||||
| 2,022 | Manteca Unified School District, San Joaquin County, California, Certificates of Participation, Series 2004, 0.000%, 9/15/33 – NPFG Insured | No Opt. Call | A | 574,693 | ||||||||||||||
| 1,000 | Montebello Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2004, 0.000%, 8/01/26 – FGIC Insured | No Opt. Call | A+ | 481,770 | ||||||||||||||
| 250 | Palomar Pomerado Health, California, General Obligation Bonds, Tender Option Bond Trust 4683, 17.878%, 8/01/37 – NPFG Insured (IF) (5) | 8/17 at 100.00 | A+ | 230,370 | ||||||||||||||
| 1,350 | Paso Robles Joint Unified School District, San Luis Obispo and Monteray Counties, California, General Obligation Bonds, Election 2006 Series 2010A, 0.000%, 9/01/34 | No Opt. Call | A2 | 336,866 | ||||||||||||||
| 1,980 | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Tender Option Bond Trust Series 3330, 14.043%, 1/01/21 (IF) (5) | No Opt. Call | AA– | 730,858 | ||||||||||||||
| 2,490 | San Leandro Unified School District, Alameda County, California, General Obligation Bonds, Election 2006 Series 2010, 0.000%, 8/01/39 | 8/28 at 100.00 | AA– | 1,212,929 | ||||||||||||||
| 500 | Stockton Unified School District, San Joaquin County, California, General Obligation Bonds, Series 2006, 4.550%, 9/01/30 – FGIC Insured | 9/15 at 100.00 | A | 482,650 | ||||||||||||||
| 1,880 | Walnut Valley Unified School District, Los Angeles County, California, General Obligation Bonds, Election 2000 Series 2003D, 0.000%, 8/01/28 – FGIC Insured | No Opt. Call | Aa2 | 849,008 | ||||||||||||||
| 27,372 | Total Tax Obligation/General | 11,126,898 | ||||||||||||||||
Tax Obligation/Limited – 53.3% | ||||||||||||||||||
| 3,000 | Anaheim Public Finance Authority, California, Senior Lease Bonds, Public Improvement Project, Refunding Series 2007A-1, 4.750%, 9/01/33 – FGIC Insured | 9/17 at 100.00 | A1 | 2,958,090 | ||||||||||||||
Anaheim Public Finance Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C: | ||||||||||||||||||
| 300 | 0.000%, 9/01/28 – AGM Insured | No Opt. Call | AA– | 124,842 | ||||||||||||||
| 240 | 0.000%, 9/01/30 – AGM Insured | No Opt. Call | AA– | 87,115 | ||||||||||||||
| 1,050 | 0.000%, 9/01/34 – AGM Insured | No Opt. Call | AA– | 288,876 | ||||||||||||||
| 4,305 | 0.000%, 9/01/35 – AGM Insured | No Opt. Call | AA– | 1,092,609 | ||||||||||||||
| 1,000 | Azusa Redevelopment Agency, California, Tax Allocation Refunding Bonds, Merged West End Development, Series 2007B, 5.300%, 8/01/36 | 8/17 at 100.00 | N/R | 798,600 | ||||||||||||||
| 620 | Azusa, California, Special Tax Bonds, Community Facilities District 2005-1 Rosedale Improvement Area 1, Series 2007, 5.000%, 9/01/27 | 9/17 at 100.00 | N/R | 574,566 | ||||||||||||||
| 1,035 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 17A, Series 2013B, 5.000%, 9/01/34 | 9/23 at 100.00 | N/R | 954,073 | ||||||||||||||
| 1,000 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 20 Series 2012B, 5.950%, 9/01/35 | 9/22 at 100.00 | N/R | 926,200 | ||||||||||||||
| 1,000 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 8C, Series 2007E, 6.250%, 9/01/38 | 11/13 at 100.00 | N/R | 980,190 | ||||||||||||||
Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 8D & 17B, Series 2009B: | ||||||||||||||||||
| 60 | 8.875%, 9/01/34 | 9/15 at 100.00 | N/R | 61,305 | ||||||||||||||
| 125 | 8.625%, 9/01/39 | 9/16 at 100.00 | N/R | 127,679 | ||||||||||||||
| 1,000 | Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special Tax Bonds, Series 2007, 5.750%, 8/01/32 (4) | 8/17 at 102.00 | N/R | 264,280 | ||||||||||||||
Brea Redevelopment Agency, Orange County, California, Tax Allocation Bonds, Project Area AB, Series 2003: | ||||||||||||||||||
| 1,500 | 0.000%, 8/01/28 – AMBAC Insured | No Opt. Call | AA– | 627,255 | ||||||||||||||
| 2,300 | 0.000%, 8/01/29 – AMBAC Insured | No Opt. Call | AA– | 898,817 | ||||||||||||||
| 6,710 | 0.000%, 8/01/30 – AMBAC Insured | No Opt. Call | AA– | 2,447,674 | ||||||||||||||
| 22 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 1,500 | Brentwood Infrastructure Financing Authority, Contra Costa County, California, CIFP 2006-1 Infrastructure Revenue Bonds, Series 2006, 5.200%, 9/02/36 | 9/15 at 100.00 | N/R | $ | 1,251,705 | ||||||||||||
| 5,600 | California Community College Financing Authority, Lease Revenue Bonds, Refunding Series 2003, 0.000%, 6/01/33 – AMBAC Insured | No Opt. Call | A+ | 1,749,384 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Community Facilities District 2012-01, Fancher Creek, Special Tax Bonds, Series 2013A, 5.700%, 9/01/43 | 9/23 at 100.00 | N/R | 836,770 | ||||||||||||||
California Statewide Communities Development Authority, Community Facilities District 2012-02, Manteca Lifestyle Center, Special Tax Bonds, Series 2013A: | ||||||||||||||||||
| 1,000 | 5.000%, 9/01/33 | No Opt. Call | N/R | 852,310 | ||||||||||||||
| 2,000 | 5.125%, 9/01/42 | No Opt. Call | N/R | 1,643,100 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Recovery Zone Facility Bonds, SunEdison Huntington Beach Solar Projects, Series 2010, 7.500%, 1/01/31 | 1/21 at 100.00 | N/R | 1,004,990 | ||||||||||||||
| 1,415 | California Statewide Communities Development Authority, Recovery Zone Facility Bonds, SunEdison Irvine Unified School District Solar Projects, Series 2010, 7.500%, 7/01/30 | 1/20 at 100.00 | N/R | 1,423,971 | ||||||||||||||
| 1,240 | California Statewide Communities Development Authority, Statewide Community Infrastructure Program Revenue Bonds, Series 2011A, 8.000%, 9/02/41 | 9/21 at 100.00 | N/R | 1,207,636 | ||||||||||||||
| 1,000 | California Statewide Community Development Authority, Infrastructure Program Revenue Bonds, Series 2006A, 5.200%, 9/02/36 | 3/14 at 100.00 | N/R | 824,260 | ||||||||||||||
| 250 | California Statewide Community Development Authority, Revenue Bonds, Epidaurus Project, Series 2004A, 7.750%, 3/01/34 | 3/14 at 102.00 | N/R | 250,223 | ||||||||||||||
| 500 | Carson Redevelopment Agency, California, Redevelopment Project Area 1 Tax Allocation Bonds, Series 2009A, 7.000%, 10/01/36 | 10/19 at 100.00 | A– | 547,500 | ||||||||||||||
| 880 | Ceres Redevelopment Agency, California, Tax Allocation Bonds, Ceres Redevelopment Project Area 1, Series 2006, 4.000%, 11/01/31 – AMBAC Insured | 11/16 at 100.00 | A– | 701,386 | ||||||||||||||
| 315 | Chino Public Financing Authority, California, Revenue Refunding Bonds, Series 2012, 5.000%, 9/01/38 | 9/22 at 100.00 | N/R | 288,153 | ||||||||||||||
| 660 | Chula Vista, California, Special Tax Bonds, Community Facilities District 12-1 McMillin Otay Ranch Village Seven, Series 2005, 5.250%, 9/01/30 | 3/14 at 100.00 | N/R | 660,125 | ||||||||||||||
| 1,000 | Compton Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Projects, Housing Second Lien Series 2010A, 5.500%, 8/01/30 | 8/20 at 100.00 | N/R | 917,910 | ||||||||||||||
| 500 | Compton Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Projects, Second Lien Series 2010B, 5.750%, 8/01/26 | 8/20 at 100.00 | N/R | 497,495 | ||||||||||||||
| 990 | Davis Redevelopment Agency, California, Tax Allocation Bonds, Davis Redevelopment Project, Subordinate Series 2011A, 7.000%, 12/01/36 | 12/21 at 100.00 | A+ | 1,111,067 | ||||||||||||||
| 1,610 | Desert Hot Springs Redevelopment Agency, California, Merged Redevelopment Project Tax Allocation Bonds, Series 2008A-2, 5.000%, 9/01/23 | 9/18 at 100.00 | CCC+ | 1,167,975 | ||||||||||||||
| 950 | El Dorado County, California, Special Tax Bonds, Blackstone Community Facilities District 2005-1, Series 2005, 5.250%, 9/01/35 | 9/14 at 102.00 | N/R | 788,823 | ||||||||||||||
| 250 | El Dorado County, California, Special Tax Bonds, Community Facilities District 2005-2, Series 2006, 5.100%, 9/01/36 | 9/14 at 102.00 | N/R | 217,913 | ||||||||||||||
Elk Grove Community Facilities District 2005-1, California, Special Tax Bonds, Series 2007: | ||||||||||||||||||
| 80 | 5.000%, 9/01/18 | 9/17 at 100.00 | N/R | 77,778 | ||||||||||||||
| 10 | 5.000%, 9/01/20 | 9/17 at 100.00 | N/R | 9,517 | ||||||||||||||
| 50 | 5.125%, 9/01/22 | 3/14 at 100.00 | N/R | 46,803 | ||||||||||||||
| 980 | 5.200%, 9/01/27 | 9/15 at 102.00 | N/R | 879,834 | ||||||||||||||
| 1,200 | 5.250%, 9/01/37 | 9/15 at 102.00 | N/R | 1,017,648 | ||||||||||||||
| Nuveen Investments | 23 |
Portfolio of Investments (Unaudited)
Nuveen California High Yield Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 500 | Fairfield, California, Community Facilities District 2007-1 Special Tax Bonds, Fairfield Commons Project, Series 2008, 6.875%, 9/01/38 | 9/18 at 100.00 | N/R | $ | 494,995 | ||||||||||||
| 710 | Fillmore Redevelopment Agency, Ventura County, California, Central City Redevelopment Project, Subordinate Lien Tax Allocation Bonds, Series 2006A, 5.375%, 5/01/31 | 11/16 at 100.00 | N/R | 599,055 | ||||||||||||||
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bond Trust 1011: | ||||||||||||||||||
| 750 | 17.481%, 6/01/45 (IF) (5) | 6/15 at 100.00 | A2 | 504,720 | ||||||||||||||
| 1,000 | 17.459%, 6/01/45 – AMBAC Insured (IF) (5) | 6/15 at 100.00 | A2 | 673,380 | ||||||||||||||
| 880 | Guam Government Department of Education, Certificates of Participation, John F. Kennedy High School Project, Series 2010A, 6.625%, 12/01/30 | 12/20 at 100.00 | B | 896,975 | ||||||||||||||
| 1,000 | Hawthorne Community Redevelopment Agency, California, Project Area 2 Tax Allocation Bonds, Series 2006, 5.000%, 9/01/26 – SYNCORA GTY Insured | 9/16 at 100.00 | N/R | 1,016,330 | ||||||||||||||
| 1,000 | Hemet Unified School District Community Facilities District 2005-3, Riverside County, California, Special Tax Bonds, Series 2007, 5.750%, 9/01/39 | 9/14 at 100.00 | N/R | 931,300 | ||||||||||||||
| 200 | Hemet Unified School District, California, Community Facilities District 2005-1 Special Tax Bonds, Series 2006, 5.125%, 9/01/36 | 3/14 at 100.00 | N/R | 183,208 | ||||||||||||||
Hercules Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005: | ||||||||||||||||||
| 1,000 | 5.000%, 8/01/25 – AMBAC Insured | 8/15 at 100.00 | N/R | 785,890 | ||||||||||||||
| 500 | 4.750%, 8/01/35 – AMBAC Insured | 8/15 at 100.00 | N/R | 327,815 | ||||||||||||||
Hesperia Public Financing Authority, California, Redevelopment and Housing Projects Tax Allocation Bonds, Series 2007A: | ||||||||||||||||||
| 1,250 | 5.500%, 9/01/22 – SYNCORA GTY Insured | 9/17 at 100.00 | N/R | 1,248,238 | ||||||||||||||
| 1,000 | 5.500%, 9/01/27 – SYNCORA GTY Insured | No Opt. Call | N/R | 932,450 | ||||||||||||||
| 1,010 | 5.000%, 9/01/31 – SYNCORA GTY Insured | 9/17 at 100.00 | N/R | 860,136 | ||||||||||||||
| 1,405 | 5.000%, 9/01/37 – SYNCORA GTY Insured | 9/17 at 100.00 | N/R | 1,131,756 | ||||||||||||||
| 655 | Indio Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Subordinate Lien Refunding Series 2008A, 5.000%, 8/15/21 | No Opt. Call | BBB– | 652,603 | ||||||||||||||
Inglewood Public Financing Authority, California, Lease Revenue Bonds, Refunding Series 2012: | ||||||||||||||||||
| 2,530 | 0.000%, 8/01/23 | No Opt. Call | Baa2 | 1,311,046 | ||||||||||||||
| 1,600 | 0.000%, 8/01/25 | No Opt. Call | Baa2 | 699,904 | ||||||||||||||
| 1,050 | 0.000%, 8/01/28 | 8/22 at 66.37 | Baa2 | 350,795 | ||||||||||||||
| 2,430 | 0.000%, 8/01/33 | No Opt. Call | Baa2 | 513,751 | ||||||||||||||
| 1,650 | 0.000%, 8/01/35 | No Opt. Call | Baa2 | 298,089 | ||||||||||||||
| 120 | Irvine Unified School District, California, Special Tax Bonds, Community Facilities District Series 2006A, 5.125%, 9/01/36 | 9/16 at 100.00 | N/R | 112,826 | ||||||||||||||
| 1,115 | Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 25 Eastvale Area, Series 2008A, 8.375%, 9/01/28 | 9/18 at 100.00 | N/R | 1,231,785 | ||||||||||||||
| 750 | Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Canyon Hills Improvement Area C, Series 2010A, 6.250%, 9/01/40 | 9/18 at 100.00 | N/R | 765,128 | ||||||||||||||
| 335 | Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Canyon Hills Improvement Area C, Series 2012C, 5.000%, 9/01/37 | No Opt. Call | N/R | 304,130 | ||||||||||||||
| 1,220 | Lake Elsinore Unified School District, California, Special Tax Bonds, Community Facilities District 2004-2, Series 2005, 5.350%, 9/01/35 | No Opt. Call | N/R | 1,121,034 | ||||||||||||||
| 1,000 | Lake Elsinore, California, Special Tax Bonds, Community Facilities District 2004-3, Rosetta Canyon Improvement Area 2, Series 2006, 5.250%, 9/01/37 | 9/14 at 100.00 | N/R | 940,290 | ||||||||||||||
| 24 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 815 | Lake Elsinore, California, Special Tax Bonds, Community Facilities District 2005-1, Series 2006A, 5.350%, 9/01/36 | 9/14 at 100.00 | N/R | $ | 820,444 | ||||||||||||
| 1,465 | Lake Elsinore, California, Special Tax Bonds, Community Facilities District 2005-2 Improvement Area A, Series 2005A, 5.450%, 9/01/36 | 9/14 at 100.00 | N/R | 1,358,304 | ||||||||||||||
| 2,000 | Lammersville Joint Unified School District, Special Tax Bonds, California, Community Facilities District 2002, Mountain House, Series 2013, 5.000%, 9/01/37 | 9/22 at 100.00 | N/R | 1,772,800 | ||||||||||||||
| 2,000 | Lammersville School District, California, Special Tax Refunding Bonds, Community Facilities District 2002 Mountain House, Series 2012, 0.000%, 9/01/32 | 9/22 at 100.00 | N/R | 1,512,700 | ||||||||||||||
| 1,665 | Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Series 2009, 6.875%, 8/01/39 | 8/19 at 100.00 | BBB | 1,769,679 | ||||||||||||||
Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Subordinate Refunding Series 2003: | ||||||||||||||||||
| 500 | 4.750%, 8/01/27 – NPFG Insured | 8/15 at 102.00 | A | 454,980 | ||||||||||||||
| 1,000 | 4.750%, 8/01/33 – NPFG Insured | 8/15 at 102.00 | A | 840,340 | ||||||||||||||
Lee Lake Public Financing Authority, California, Junior Lien Revenue Bonds, Series 2013B: | ||||||||||||||||||
| 1,000 | 5.125%, 9/01/28 | 9/23 at 100.00 | N/R | 949,300 | ||||||||||||||
| 500 | 5.250%, 9/01/32 | 9/23 at 100.00 | N/R | 471,880 | ||||||||||||||
| 2,000 | Los Alamitos Unified School District, Orange County, California, Certificates of Participation, Series 2012, 0.000%, 8/01/42 | 8/29 at 100.00 | AA– | 1,006,700 | ||||||||||||||
| 1,000 | Los Angeles Community Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Bunker Hill Redevelopment Project, Series 2004L, 5.000%, 3/01/18 | 3/14 at 100.00 | BBB– | 1,006,240 | ||||||||||||||
| 250 | Los Banos Redevelopment Agency, California, Tax Allocation Bonds, Los Banos Redevelopment Project, Series 2006, 5.000%, 9/01/36 – RAAI Insured | 9/16 at 100.00 | BBB– | 220,018 | ||||||||||||||
| 1,275 | Lynwood Redevelopment Agency, California, Project A Revenue Bonds, Subordinate Lien Series 2011A, 7.250%, 9/01/38 | 9/21 at 100.00 | A– | 1,420,503 | ||||||||||||||
March Joint Powers Redevelopment Agency, California, March Air Force Base Redevelopment Project Tax Allocation Revenue Bonds, Series 2011A: | ||||||||||||||||||
| 300 | 7.250%, 8/01/31 | 8/21 at 100.00 | BBB+ | 331,800 | ||||||||||||||
| 1,550 | 7.500%, 8/01/41 | 8/21 at 100.00 | BBB+ | 1,702,427 | ||||||||||||||
| 500 | March Joint Powers Redevelopment Agency, California, March Air Force Base Redevelopment Project Tax Allocation Revenue Bonds, Series 2011B, 7.500%, 8/01/41 | 8/21 at 100.00 | BBB+ | 549,170 | ||||||||||||||
| 130 | Merced, California, Community Facilities District 2005-1, Special Tax Bonds, Bellevue Ranch West, Series 2006, 5.300%, 9/01/36 | 9/14 at 103.00 | N/R | 77,848 | ||||||||||||||
| 1,010 | Monrovia Financing Authority, California, Lease Revenue Bonds, Hillside Wilderness Preserve Project, Series 2002, 5.000%, 12/01/20 – AMBAC Insured | 11/13 at 100.00 | BBB | 1,031,897 | ||||||||||||||
| 65 | Moreno Valley Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 2004-5, Series 2006, 5.200%, 9/01/36 | 3/16 at 100.00 | N/R | 59,389 | ||||||||||||||
| 1,000 | Moreno Valley Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 2004-6, Series 2005, 5.200%, 9/01/36 | 9/14 at 101.00 | N/R | 937,570 | ||||||||||||||
| 1,000 | Moreno Valley, California, Special Tax Bonds, Community Facilities District 5, Series 2007, 5.000%, 9/01/37 | 9/17 at 100.00 | N/R | 847,840 | ||||||||||||||
Murrieta Valley Unified School District Public Finance Authority, Riverside County, California, Refunding Bonds Series 2013: | ||||||||||||||||||
| 1,310 | 5.000%, 9/01/33 | 9/23 at 100.00 | N/R | 1,232,645 | ||||||||||||||
| 1,415 | 5.000%, 9/01/38 | 9/23 at 100.00 | N/R | 1,276,896 | ||||||||||||||
| Nuveen Investments | 25 |
Portfolio of Investments (Unaudited)
Nuveen California High Yield Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 330 | Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40 | 9/21 at 100.00 | BBB+ | $ | 350,823 | ||||||||||||
| 1,000 | Pacifica, California, Certificates of Participation, Series 2008, | 1/16 at 102.00 | A– | 1,008,760 | ||||||||||||||
Palm Desert, California, Special Tax Bonds, Community Facilities District 2005-1 University Park, Series 2006: | ||||||||||||||||||
| 290 | 5.000%, 9/01/21 | 9/16 at 100.00 | N/R | 276,921 | ||||||||||||||
| 910 | 5.450%, 9/01/32 | 9/16 at 100.00 | N/R | 779,169 | ||||||||||||||
| 350 | 5.300%, 9/01/32 | 9/16 at 100.00 | N/R | 294,133 | ||||||||||||||
| 1,345 | 5.500%, 9/01/36 | 9/16 at 100.00 | N/R | 1,121,327 | ||||||||||||||
| 1,600 | Palm Drive Health Care District, Sonoma County, California, Certificates of Participation, Parcel Tax Secured Financing Program, Series 2010, 7.500%, 4/01/35 | 4/14 at 100.00 | BB | 1,588,016 | ||||||||||||||
| 1,000 | Palm Drive Health Care District, Sonoma County, California, Parcel Tax Revenue Bonds, Series 2005, 5.250%, 4/01/30 | 4/15 at 100.00 | BB | 793,610 | ||||||||||||||
| 500 | Palm Springs Financing Authority, California, Lease Revenue Bonds, Downtown Revitalization Project, Series 2012B, 5.000%, 6/01/35 | No Opt. Call | A+ | 475,155 | ||||||||||||||
| 1,000 | Palmdale Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project Areas, Refunding Series 2004A, 5.000%, 9/01/34 – NPFG Insured | 9/14 at 102.00 | A | 1,004,390 | ||||||||||||||
| 1,230 | Palmdale Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project Areas, Series 2002, 0.000%, 12/01/30 – AMBAC Insured | No Opt. Call | A– | 421,829 | ||||||||||||||
| 1,000 | Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A , 5.750%, 9/01/39 | 9/23 at 100.00 | N/R | 971,130 | ||||||||||||||
| 1,055 | Perris Public Finance Authority, California, Local Agency Revenue Bonds, Perris Vally Vistas IA3, Series 2008B, 6.625%, 9/01/38 | 9/16 at 100.00 | N/R | 1,063,820 | ||||||||||||||
| 220 | Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011, 6.125%, 9/01/41 | 3/14 at 100.03 | N/R | 218,398 | ||||||||||||||
| 1,500 | Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28 | 9/18 at 100.00 | BBB– | 1,532,970 | ||||||||||||||
Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Series 1999: | ||||||||||||||||||
| 2,990 | 0.000%, 8/01/27 – AMBAC Insured | No Opt. Call | A | 1,317,245 | ||||||||||||||
| 2,500 | 0.000%, 8/01/28 – AMBAC Insured | No Opt. Call | A | 1,028,150 | ||||||||||||||
| 1,300 | Pittsburg Redevelopment Agency, California, Tax Allocation Refunding Bonds, Los Medanos Community Development Project, Series 2006C, 4.250%, 9/01/34 – AMBAC Insured | 9/16 at 100.00 | BBB– | 975,299 | ||||||||||||||
| 350 | Poway Redevelopment Agency, California, Tax Allocation Bonds, Paguay Redevelopment Project, Series 2001, 5.125%, 6/15/33 – AMBAC Insured | 12/13 at 100.00 | N/R | 334,667 | ||||||||||||||
| 345 | Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/42 – FGIC Insured | No Opt. Call | BBB+ | 31,616 | ||||||||||||||
| 250 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Tender Option Bond Trust 1081, 21.089%, 8/01/57 (IF) (5) | 8/19 at 100.00 | AA– | 143,740 | ||||||||||||||
| 2,000 | Rancho Cardova, California, Special Tax Bonds, Sunridge Park Area Community Facilities District 2004-1, Series, 6.125%, 9/01/37 | 9/17 at 100.00 | N/R | 2,001,040 | ||||||||||||||
| 500 | Rancho Cordova, California, Special Tax Bonds, Sunridge Anatolia Area Community Facilities District 2003-1, Series 2005, 5.500%, 9/01/37 | 9/15 at 100.00 | N/R | 480,070 | ||||||||||||||
| 620 | Rancho Cordova, California, Sunridge Anatolia Community Facilities District 2003-1, Special Tax Refunding Bonds, Series 2012, 5.000%, 9/01/37 | No Opt. Call | N/R | 555,421 | ||||||||||||||
| 1,000 | Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.500%, 9/01/26 | 9/21 at 100.00 | BBB+ | 1,054,890 | ||||||||||||||
| 26 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
Redwood City Redevelopment Agency, California, Tax Allocation Bonds, Project Area 2, Series 2003A: | ||||||||||||||||||
| $ | 1,755 | 0.000%, 7/15/29 – AMBAC Insured | No Opt. Call | A– | $ | 667,813 | ||||||||||||
| 1,260 | 0.000%, 7/15/31 – AMBAC Insured | No Opt. Call | A– | 416,480 | ||||||||||||||
| 500 | Redwood City, California, Special Tax Bonds, Community Facilities District 2010-1 One Marina, Series 2011, 7.500%, 9/01/31 | 9/16 at 103.00 | N/R | 523,265 | ||||||||||||||
| 1,295 | Riverside County Asset Leasing Corporation, California, Leasehold Revenue Bonds, Riverside County Hospital Project, Series 1997, 0.000%, 6/01/26 – NPFG Insured | No Opt. Call | A+ | 611,098 | ||||||||||||||
| 1,710 | Riverside County Public Financing Authority, California, Tax Allocation Bonds, Multiple Projects, Series 2004, 5.000%, 10/01/35 – SYNCORA GTY Insured | 10/14 at 100.00 | BBB | 1,480,552 | ||||||||||||||
| 500 | Riverside County Redevelopment Agency, California, Interstate 215 Corridor Redevelopment Project Area Tax Allocation Bonds, Series 2010E, 6.500%, 10/01/40 | 10/20 at 100.00 | A– | 525,695 | ||||||||||||||
| 205 | Riverside County Redevelopment Agency, California, Tax Allocation Housing Bonds, Series 2011A, 7.125%, 10/01/42 | 10/21 at 100.00 | A– | 224,397 | ||||||||||||||
Riverside County, California, Community Facilites District 05-8, Scott Road, Special Tax Bonds Series 2013: | ||||||||||||||||||
| 660 | 5.000%, 9/01/32 | 9/22 at 100.00 | N/R | 593,366 | ||||||||||||||
| 1,950 | 5.000%, 9/01/42 | 9/22 at 100.00 | N/R | 1,652,918 | ||||||||||||||
| 875 | Riverside County, California, Special Tax Bonds, Community Facilities District 04-2 Lake Hill Crest, Series 2012, 5.000%, 9/01/35 | 9/22 at 100.00 | N/R | 791,630 | ||||||||||||||
Riverside Public Financing Authority, California, Tax Allocation Bonds, University Corridor, Series 2007C: | ||||||||||||||||||
| 2,000 | 4.500%, 8/01/30 – NPFG Insured | No Opt. Call | A | 1,764,380 | ||||||||||||||
| 510 | 5.000%, 8/01/37 – NPFG Insured | 8/17 at 100.00 | A | 456,037 | ||||||||||||||
| 125 | Riverside Unified School District, Riverside County, California, Community Facilities District 24 Special Tax Bonds, Series 2006, 5.100%, 9/01/36 | 9/14 at 102.00 | N/R | 110,495 | ||||||||||||||
Rocklin Unified School District, Placer County, California, Special Tax Bonds, Community Facilities District 2, Series 2007: | ||||||||||||||||||
| 1,010 | 0.000%, 9/01/34 – NPFG Insured | No Opt. Call | AA– | 267,347 | ||||||||||||||
| 1,155 | 0.000%, 9/01/35 – NPFG Insured | No Opt. Call | AA– | 286,186 | ||||||||||||||
| 1,000 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Diamond Creek, Series 2007, 5.000%, 9/01/37 | 3/14 at 100.00 | N/R | 779,650 | ||||||||||||||
| 1,800 | Roseville, California, Special Tax Bonds, Community Facilities District 1, Fiddyment Ranch, Series 2006, 5.125%, 9/01/26 | 9/16 at 100.00 | N/R | 1,677,654 | ||||||||||||||
| 1,510 | Sacramento City Financing Authority California, Lease Revenue Bonds, Master Lease Program Facilities Projects, Tender Option Bond Trust 4698, 18.466%, 12/01/33 – AMBAC Insured (IF) (5) | No Opt. Call | A | 1,362,443 | ||||||||||||||
| 445 | Sacramento City Financing Authority, California, Special Tax Revenue Bonds, Westlake and Regency Park, Refunding Series 2013A, 5.000%, 9/01/25 | 3/23 at 100.00 | BBB+ | 441,956 | ||||||||||||||
Sacramento City Financing Authority, California, Tax Allocation Revenue Bonds, Merged Downtown Sacramento and Oak Park Projects, Series 2005A: | ||||||||||||||||||
| 4,295 | 0.000%, 12/01/31 – FGIC Insured | No Opt. Call | A | 1,413,055 | ||||||||||||||
| 4,435 | 0.000%, 12/01/32 – FGIC Insured | No Opt. Call | A | 1,357,997 | ||||||||||||||
| 445 | Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, Grace Lofts Redevelopment Projects, Series 2007A, 6.000%, 3/27/26 | 12/13 at 100.00 | N/R | 370,258 | ||||||||||||||
| 500 | San Bernardino County Financing Authority, California, Revenue Bonds, Courthouse Facilities Project, Series 2007, 5.500%, 6/01/37 – NPFG Insured | No Opt. Call | A | 475,180 | ||||||||||||||
| Nuveen Investments | 27 |
Portfolio of Investments (Unaudited)
Nuveen California High Yield Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2009C: | ||||||||||||||||||
| $ | 500 | 6.375%, 8/01/32 | 8/19 at 100.00 | A– | $ | 540,940 | ||||||||||||
| 500 | 6.500%, 8/01/39 | 8/19 at 100.00 | A– | 541,185 | ||||||||||||||
| 405 | San Francisco, California, Community Facilities District 6, Mission Bay South Public Improvements, Special Tax Refunding Bonds, Series 2013A, 5.000%, 8/01/33 | 8/22 at 100.00 | N/R | 385,835 | ||||||||||||||
| 360 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2005A, 5.000%, 8/01/20 – NPFG Insured | 8/15 at 100.00 | A | 370,138 | ||||||||||||||
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C: | ||||||||||||||||||
| 500 | 5.000%, 8/01/24 – NPFG Insured | 8/17 at 100.00 | A | 500,155 | ||||||||||||||
| 1,000 | 3.750%, 8/01/28 – NPFG Insured | 8/17 at 100.00 | A | 825,190 | ||||||||||||||
| 2,185 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2007B, 4.250%, 8/01/36 – SYNCORA GTY Insured | 8/17 at 100.00 | BBB | 1,731,547 | ||||||||||||||
| 540 | San Marcos Public Facilities Authority, California, Revenue Refunding Bonds, Series 2012C, 5.000%, 9/01/35 – AGM Insured | 9/22 at 100.00 | N/R | 476,307 | ||||||||||||||
| 1,000 | San Marcos Public Facilities Authority, California, Special Tax Revenue Bonds, Refunding Series 2007, 4.750%, 9/01/35 – AMBAC Insured | 9/17 at 100.00 | A– | 943,930 | ||||||||||||||
| 1,865 | San Marcos Public Facilities Authority, California, Tax Allocation Bonds, Project Areas 1, 2 and 3, Series 2003A, 5.000%, 8/01/33 – FGIC Insured | No Opt. Call | A | 1,848,663 | ||||||||||||||
| 500 | Santa Ana Financing Authority, California, Lease Revenue Bonds, Police Administration and Housing Facility, Series 1994A, 6.250%, 7/01/24 – NPFG Insured | No Opt. Call | A | 541,650 | ||||||||||||||
| 1,000 | South Gate, California, Certificates of Participation, Series 2002A, 5.000%, 9/01/24 – AMBAC Insured | 9/14 at 100.00 | BBB | 973,200 | ||||||||||||||
Stockton Public Financing Authority, California, Lease Revenue Bonds, Series 2004: | ||||||||||||||||||
| 305 | 5.125%, 9/01/30 – FGIC Insured | 9/14 at 100.00 | A | 257,780 | ||||||||||||||
| 235 | 5.250%, 9/01/34 – FGIC Insured | 9/14 at 100.00 | A | 197,814 | ||||||||||||||
Stockton Redevelopment Agency, California, Revenue Bonds, Stockton Events Center Arena Project, Series 2004: | ||||||||||||||||||
| 135 | 4.250%, 9/01/25 – FGIC Insured | 9/14 at 100.00 | A | 116,452 | ||||||||||||||
| 420 | 5.000%, 9/01/28 – FGIC Insured | 9/14 at 100.00 | A | 372,775 | ||||||||||||||
| 1,700 | 5.000%, 9/01/36 – FGIC Insured | 9/14 at 100.00 | A | 1,459,348 | ||||||||||||||
| 2,500 | Stockton, California, Special Tax Bonds, Arch Road Community Facilities District 99-02, Refunding Series 2007, 5.875%, 9/01/37 | 9/17 at 102.00 | N/R | 2,274,800 | ||||||||||||||
Tejon Ranch Public Facilities Financing Authority, California, Special Tax Bonds, Community Facilities District 2000-1, Tejon Industrial Complex Public Improvements, Refunding Series 2012: | ||||||||||||||||||
| 1,635 | 5.500%, 9/01/30 | 9/22 at 100.00 | N/R | 1,611,930 | ||||||||||||||
| 500 | 5.500%, 9/01/33 | 9/22 at 100.00 | N/R | 482,950 | ||||||||||||||
| 1,000 | Tulare Public Financing Authority, California, Lease Revenue Bonds, Series 2008, 5.375%, 4/01/35 | No Opt. Call | AA– | 1,029,010 | ||||||||||||||
| 530 | Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.250%, 9/01/29 | 3/21 at 100.00 | BBB+ | 556,993 | ||||||||||||||
| 650 | Twentynine Palms Redevelopment Agency, California, Tax Allocation Bonds, Four Corners Project Area, Series 2011A, 7.650%, 9/01/42 | 9/21 at 100.00 | BBB+ | 703,437 | ||||||||||||||
| 500 | Union City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project, Subordinate Lien Series 2011, 6.875%, 12/01/33 | 12/21 at 100.00 | A | 565,235 | ||||||||||||||
| 500 | Val Verde Unified School District Financing Authority, California, Special Tax Revenue, Junior Lien Refunding Series 2003, 6.250%, 10/01/28 | 10/13 at 102.00 | N/R | 500,835 | ||||||||||||||
| 28 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 500 | Victor Elementary School District, Los Angeles County, California, Community Facilities District 2005-1 Special Tax Bonds, Series 2007A, 5.500%, 9/01/37 | 9/15 at 102.00 | N/R | $ | 435,280 | ||||||||||||
| 700 | Victor Valley Union High School District, San Bernardino County, California, Special Tax Bonds, Community Facilities District 2007-1, Series 2013, 5.000%, 9/01/43 | 9/23 at 100.00 | N/R | 587,034 | ||||||||||||||
| 2,000 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 5.000%, 10/01/32 | No Opt. Call | BBB+ | 1,893,940 | ||||||||||||||
| 1,000 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 2006, 4.250%, 10/01/29 – FGIC Insured | 10/16 at 100.00 | A | 886,260 | ||||||||||||||
| 1,000 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Series 2012C, 5.000%, 10/01/42 | No Opt. Call | BBB+ | 910,310 | ||||||||||||||
| 600 | West Hollywood Community Development Commission East Side Redevelopment Project Series 2011 Tax Allocation Bonds Series 2011A, 7.500%, 9/01/42 | 9/21 at 100.00 | BBB | 669,654 | ||||||||||||||
| 965 | West Sacramento Financing Authority, California, Special Tax Revenue Bonds, Refunding Series 1999F, 6.100%, 9/01/29 | 3/14 at 100.00 | N/R | 965,473 | ||||||||||||||
| 500 | Westminster Redevelopment Agency, California, Tax Allocation Bonds, Commercial Redevelopment Project 1, Subordinate Lien Series 2011A, 5.875%, 11/01/41 | 11/21 at 100.00 | A | 505,495 | ||||||||||||||
Westside Union School District, California, Special Tax Bonds, Community Facilities District 2005-3, Series 2006: | ||||||||||||||||||
| 700 | 5.000%, 9/01/26 | 9/14 at 102.00 | N/R | 670,299 | ||||||||||||||
| 295 | 5.000%, 9/01/36 | 9/14 at 102.00 | N/R | 262,152 | ||||||||||||||
| 1,000 | Woodland Finance Authority, California, Lease Revenue Bonds, Series 2002, 5.000%, 3/01/32 – SYNCORA GTY Insured | 11/13 at 100.00 | A2 | 992,840 | ||||||||||||||
| 290 | Yorkville United City Business District, Illinois, Storm Water and Water Improvement Project Revenue Bonds, Series 2007, 6.000%, 1/01/27 | 1/17 at 102.00 | N/R | 184,394 | ||||||||||||||
| 135 | Yuba County, California, Special Tax Bonds, Community Facilities District 2004-1, Edgewater, Series 2005, 5.125%, 9/01/35 | 3/15 at 100.00 | N/R | 122,664 | ||||||||||||||
| 187,410 | Total Tax Obligation/Limited | 140,691,781 | ||||||||||||||||
Transportation – 5.7% | ||||||||||||||||||
| 1,125 | Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Tender Option Bond Trust 2985, 17.734%, 4/01/17 (IF) | No Opt. Call | AA | 1,163,925 | ||||||||||||||
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999: | ||||||||||||||||||
| 8,275 | 0.000%, 1/15/30 | 11/13 at 100.00 | BBB– | 2,816,976 | ||||||||||||||
| 1,315 | 0.000%, 1/15/32 – NPFG Insured | No Opt. Call | A | 392,449 | ||||||||||||||
| 1,000 | 0.000%, 1/15/33 | No Opt. Call | BBB– | 271,690 | ||||||||||||||
| 1,915 | 0.000%, 1/15/34 – NPFG Insured | 1/14 at 30.18 | A | 496,119 | ||||||||||||||
| 200 | 5.750%, 1/15/40 – NPFG Insured | 1/14 at 100.00 | A | 187,140 | ||||||||||||||
Palm Springs Financing Authority, California, Palm Springs International Airport Revenue Bonds, Series 2006: | ||||||||||||||||||
| 35 | 5.450%, 7/01/20 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 34,624 | ||||||||||||||
| 40 | 5.550%, 7/01/28 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 37,720 | ||||||||||||||
Palm Springs, California, Airport Passenger Facility Charge Subordinate Refunding Revenue Bonds, Palm Springs International Airport, Series 2008: | ||||||||||||||||||
| 250 | 6.400%, 7/01/23 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 254,173 | ||||||||||||||
| 450 | 6.500%, 7/01/27 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 456,327 | ||||||||||||||
| 140 | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Revenue Bonds, American Airlines Inc., Series 1985A, 6.450%, 12/01/25 (4) | 12/13 at 100.00 | N/R | 116,200 | ||||||||||||||
| 2,320 | Puerto Rico Ports Authority, Special Facilities Revenue Bonds, American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) (4) | 12/13 at 100.00 | N/R | 2,308,400 | ||||||||||||||
| Nuveen Investments | 29 |
Portfolio of Investments (Unaudited)
Nuveen California High Yield Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Transportation (continued) | ||||||||||||||||||
San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Refunding Bonds, Series 1997A: | ||||||||||||||||||
| $ | 3,620 | 0.000%, 1/15/25 – NPFG Insured | No Opt. Call | A | $ | 1,821,512 | ||||||||||||
| 6,935 | 0.000%, 1/15/26 – NPFG Insured | No Opt. Call | A | 3,257,578 | ||||||||||||||
| 350 | 0.000%, 1/15/27 – NPFG Insured | No Opt. Call | A | 151,687 | ||||||||||||||
| 240 | 5.250%, 1/15/30 – NPFG Insured | 1/14 at 100.00 | A | 228,585 | ||||||||||||||
| 2,035 | 0.000%, 1/15/31 – NPFG Insured | No Opt. Call | A | 662,980 | ||||||||||||||
| 1,275 | 0.000%, 1/15/36 – NPFG Insured | No Opt. Call | A | 289,935 | ||||||||||||||
| 31,520 | Total Transportation | 14,948,020 | ||||||||||||||||
U.S. Guaranteed – 0.4% (6) | ||||||||||||||||||
| 100 | California Statewide Community Development Authority, Revenue Bonds, Viewpoint School, Series 2004, 5.000%, 10/01/28 (Pre-refunded 10/01/14) – ACA Insured | 10/14 at 100.00 | BBB (6) | 105,103 | ||||||||||||||
| 100 | Sierra Kings Health Care District, Fresno County, California, Revenue Bonds, Series 2006A, 5.750%, 12/01/36 (Pre-refunded 12/01/16) | 12/16 at 100.00 | N/R (6) | 114,420 | ||||||||||||||
| 585 | West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 01-1, Refunding Series 2009B, 10.000%, 9/01/32 (Pre-refunded 9/01/14) | 9/14 at 105.00 | N/R (6) | 671,077 | ||||||||||||||
| 785 | Total U.S. Guaranteed | 890,600 | ||||||||||||||||
Utilities – 2.5% | ||||||||||||||||||
| 325 | Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.000%, 11/15/29 | No Opt. Call | A | 322,150 | ||||||||||||||
| 7,890 | Merced Irrigation District, California, Certificates of Participation, Water and Hydroelectric Series 2008B, 0.000%, 9/01/33 | 9/16 at 32.62 | A | 2,136,690 | ||||||||||||||
| 250 | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series WW, 5.500%, 7/01/21 | 7/18 at 100.00 | BBB | 228,780 | ||||||||||||||
| 1,000 | Sacramento Municipal Utility District Financing Authority, California, Consumnes Power Plant Project Revenue Bonds, Series 2006, 5.125%, 7/01/29 – NPFG Insured | 7/16 at 100.00 | A | 1,006,090 | ||||||||||||||
| 2,500 | Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A, 1.648%, 11/01/38 | No Opt. Call | A– | 2,000,800 | ||||||||||||||
| 1,000 | Virgin Islands Water and Power Authority, Electric System Revenue Bonds, Series 2007B, 5.000%, 7/01/31 | 7/17 at 100.00 | BB+ | 906,580 | ||||||||||||||
| 12,965 | Total Utilities | 6,601,090 | ||||||||||||||||
Water and Sewer – 2.1% | ||||||||||||||||||
| 1,500 | California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside Desalination Project, Series 2012, 5.000%, 11/21/45 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 1,177,785 | ||||||||||||||
| 500 | Dinuba Financing Authority, California, Wastewater System Revenue Bonds, Series 2007, 5.375%, 9/01/38 | 9/17 at 100.00 | N/R | 422,275 | ||||||||||||||
| 500 | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2005, 5.875%, 7/01/35 | 7/15 at 100.00 | Ba2 | 498,430 | ||||||||||||||
Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2010: | ||||||||||||||||||
| 1,000 | 5.250%, 7/01/25 | 7/20 at 100.00 | Ba2 | 982,640 | ||||||||||||||
| 1,000 | 5.500%, 7/01/30 | 7/20 at 100.00 | Ba2 | 973,180 | ||||||||||||||
| 1,500 | Pico Rivera Water Authority, California, Water System Project, Revenue Refunding Bonds, Series 1999A, 5.500%, 5/01/29 – NPFG Insured | No Opt. Call | A | 1,492,390 | ||||||||||||||
| 6,000 | Total Water and Sewer | 5,546,700 | ||||||||||||||||
| $ | 374,263 | Total Investments (cost $288,519,520) – 101.4% | 267,487,626 | |||||||||||||||
Floating Rate Obligations – (0.3)% | (915,000) | |||||||||||||||||
Other Assets Less Liabilities – (1.1)% (7) | (2,715,774) | |||||||||||||||||
Net Assets Applicable to Common Shares – 100% | $ | 263,856,852 | ||||||||||||||||
| 30 | Nuveen Investments |
Investments in Derivatives as of August 31, 2013:
Forward Swaps outstanding:
| Counterparty | Notional Amount | Fund Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Effective Date (8) | Termination Date | Unrealized Appreciation (Depreciation) (7) | ||||||||||||||||||||||||
Barclays Bank PLC | $ | 4,600,000 | Receive | 3-Month USD-LIBOR | 2.670% | Semi-Annually | 6/26/14 | 6/26/42 | $ | 970,165 | ||||||||||||||||||||||
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |||
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |||
| (3) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |||
| (4) | At or subsequent to the end of the reporting period, this security is non-income producing. Non-income producing, in the case of a fixed-income security, generally denotes that the issuer has (1) defaulted on the payment of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser has concluded that the issue is not likely to meet its future interest payment obligations and has directed the Fund’s custodian to cease accruing additional income on the Fund’s records. | |||
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives and/or inverse floating rate transactions. | |||
| (6) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |||
| (7) | Other Assets Less Liabilities includes the Unrealized Appreciation (Depreciation) of derivative instruments as listed within Investments in Derivatives as of the end of the reporting period. | |||
| (8) | Effective date represents the date on which both the Fund and Counterparty commence interest payment accruals on each forward swap contract. | |||
| (IF) | Inverse floating rate investment. | |||
| (UB) | Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities for more information. | |||
| USD-LIBOR | United States Dollar-London Inter-Bank Offered Rate. |
See accompanying notes to financial statements.
| Nuveen Investments | 31 |
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Consumer Staples – 3.9% | ||||||||||||||||||
| $ | 2,905 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29 | 11/13 at 100.00 | BBB+ | $ | 2,743,743 | ||||||||||||
| 265 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21 | 6/15 at 100.00 | BB+ | 245,962 | ||||||||||||||
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: | ||||||||||||||||||
| 10,115 | 5.750%, 6/01/47 | 6/17 at 100.00 | B | 7,470,231 | ||||||||||||||
| 20,055 | 5.125%, 6/01/47 | 6/17 at 100.00 | B | 13,439,050 | ||||||||||||||
| 2,500 | Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1, 5.375%, 6/01/38 | 6/15 at 100.00 | B– | 1,912,675 | ||||||||||||||
| 35,840 | Total Consumer Staples | 25,811,661 | ||||||||||||||||
Education and Civic Organizations – 7.9% | ||||||||||||||||||
| 240 | California Educational Facilities Authority, Revenue Bonds, Claremont Graduate University, Series 2007A, 5.000%, 3/01/20 | 3/17 at 100.00 | Baa1 | 255,482 | ||||||||||||||
California Educational Facilities Authority, Revenue Bonds, Claremont Graduate University, Series 2008A: | ||||||||||||||||||
| 865 | 5.000%, 3/01/23 | 3/18 at 100.00 | Baa1 | 912,065 | ||||||||||||||
| 1,500 | 5.125%, 3/01/28 | 3/18 at 100.00 | Baa1 | 1,542,135 | ||||||||||||||
| 1,000 | California Educational Facilities Authority, Revenue Bonds, Pitzer College, Refunding Series 2009, 5.375%, 4/01/34 | 4/20 at 100.00 | A2 | 1,019,650 | ||||||||||||||
| 1,035 | California Educational Facilities Authority, Revenue Bonds, Santa Clara University, Series 2010, 5.000%, 2/01/40 | 2/20 at 100.00 | Aa3 | 1,059,478 | ||||||||||||||
| 1,000 | California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2008A, 5.000%, 8/01/28 | 8/18 at 100.00 | A3 | 1,016,510 | ||||||||||||||
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006: | ||||||||||||||||||
| 105 | 5.000%, 11/01/21 | 11/15 at 100.00 | A2 | 108,900 | ||||||||||||||
| 1,000 | 5.000%, 11/01/30 | 11/15 at 100.00 | A2 | 1,002,070 | ||||||||||||||
California Educational Facilities Authority, Revenue Bonds, Woodbury University, Series 2006: | ||||||||||||||||||
| 450 | 4.400%, 1/01/15 | No Opt. Call | Baa3 | 456,399 | ||||||||||||||
| 470 | 4.500%, 1/01/16 | 1/15 at 100.00 | Baa3 | 477,478 | ||||||||||||||
| 2,960 | 5.000%, 1/01/36 | 1/15 at 100.00 | Baa3 | 2,648,312 | ||||||||||||||
| 635 | California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax) | 3/14 at 100.00 | Baa1 | 635,445 | ||||||||||||||
| 400 | California Municipal Finance Authority, Education Revenue Bonds, American Heritage Education Foundation Project, Series 2006A, 5.250%, 6/01/26 | 6/16 at 100.00 | BB– | 351,868 | ||||||||||||||
California Municipal Finance Authority, Educational Facilities Revenue Bonds, OCEAA Project, Series 2008A: | ||||||||||||||||||
| 1,000 | 6.750%, 10/01/28 | 10/18 at 100.00 | N/R | 954,940 | ||||||||||||||
| 1,500 | 7.000%, 10/01/39 | 10/18 at 100.00 | N/R | 1,416,150 | ||||||||||||||
California Municipal Finance Authority, Revenue Bonds, Biola University, Refunding Series 2008A: | ||||||||||||||||||
| 1,000 | 5.000%, 10/01/18 | No Opt. Call | Baa1 | 1,091,940 | ||||||||||||||
| 500 | 5.625%, 10/01/23 | 4/18 at 100.00 | Baa1 | 528,300 | ||||||||||||||
| 855 | California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento Valley & Northern Nevada Project, | No Opt. Call | N/R | 859,420 | ||||||||||||||
| 1,500 | California Municipal Finance Authority, Revenue Bonds, University of La Verne, Series 2010A, 6.125%, 6/01/30 | 6/20 at 100.00 | BBB+ | 1,550,430 | ||||||||||||||
| 32 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
California School Finance Authority, School Facility Revenue Bonds, Value Schools, Series 2013: | ||||||||||||||||||
| $ | 2,000 | 6.900%, 7/01/43 | 7/23 at 100.00 | BB+ | $ | 1,948,260 | ||||||||||||
| 4,040 | 7.000%, 7/01/48 | 7/23 at 100.00 | BB+ | 3,932,253 | ||||||||||||||
| 695 | California State Public Works Board, Lease Revenue Bonds, California State University, J. Paul Leonard & Sutro Library, Series 2009J, 5.500%, 11/01/26 | 11/19 at 100.00 | Aa3 | 759,454 | ||||||||||||||
| 500 | California State Public Works Board, Lease Revenue Bonds, California State University, Various University Projects, Series 2010B-1, 5.400%, 3/01/26 | 3/20 at 100.00 | Aa3 | 548,275 | ||||||||||||||
California State Public Works Board, Lease Revenue Bonds, California State University, Various University Projects, Series 2012D: | ||||||||||||||||||
| 3,000 | 5.000%, 9/01/33 | No Opt. Call | Aa3 | 2,973,780 | ||||||||||||||
| 4,000 | 5.000%, 9/01/34 | No Opt. Call | Aa3 | 3,953,880 | ||||||||||||||
| 1,000 | California State Public Works Board, Lease Revenue Bonds, University of California Department of Education Riverside Campus Project, | 4/19 at 100.00 | A2 | 1,135,630 | ||||||||||||||
| 1,250 | California State Public Works Board, Lease Revenue Bonds, University of California Regents, Series 2009E, 5.000%, 4/01/34 | 4/19 at 100.00 | Aa2 | 1,276,063 | ||||||||||||||
| 2,500 | California State Public Works Board, Lease Revenue Bonds, University of California, Institute Projects, Series 2005C, 5.000%, 4/01/30 – AMBAC Insured | 4/15 at 100.00 | Aa2 | 2,594,000 | ||||||||||||||
| 1,035 | California State Public Works Board, Lease Revenue Refunding Bonds, Community College Projects, Series 2004B, 5.500%, 6/01/19 | 6/14 at 100.00 | A2 | 1,073,254 | ||||||||||||||
| 200 | California State Public Works Board, Lease Revenue Refunding Bonds, Community Colleges Projects, Series 1999A, 4.875%, 12/01/18 | 11/13 at 100.00 | A2 | 200,574 | ||||||||||||||
| 285 | California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/25 | 11/15 at 100.00 | Aa2 | 306,081 | ||||||||||||||
| 1,700 | California Statewide Communities Development Authority, School Facility Revenue Bonds, Alliance College-Ready Public Schools, Series 2011A, 7.000%, 7/01/46 | 7/21 at 100.00 | BBB– | 1,760,826 | ||||||||||||||
| 1,000 | California Statewide Community Development Authority, Revenue Bonds, International School of the Peninsula, Palo Alto, California, Series 2006, 5.000%, 11/01/29 | 11/16 at 100.00 | N/R | 923,620 | ||||||||||||||
| 1,975 | Chula Vista Municipal Finance Authority, California, Special Tax Revenue Bonds, Refunding Series 2013, 5.500%, 9/01/27 | 9/23 at 100.00 | N/R | 2,045,172 | ||||||||||||||
Murrieta Valley Unified School District, California, Special Tax Bonds, Community Facilities District 2006-1 Improvement Area B, Series 2013A: | ||||||||||||||||||
| 1,450 | 5.750%, 9/01/38 (WI/DD, Settling 9/12/13) | 3/14 at 103.00 | N/R | 1,432,948 | ||||||||||||||
| 1,500 | 5.875%, 9/01/43 (WI/DD, Settling 9/12/13) | 3/14 at 103.00 | N/R | 1,496,850 | ||||||||||||||
| 5,690 | University of California, General Revenue Bonds, Refunding Series 2009O, 5.250%, 5/15/39 | 5/19 at 100.00 | Aa1 | 5,886,134 | ||||||||||||||
| 51,835 | Total Education and Civic Organizations | 52,134,026 | ||||||||||||||||
Health Care – 16.2% | ||||||||||||||||||
| 2,000 | Antelope Valley Healthcare District, California, Insured Revenue Refunding Bonds, Series 1997A, 5.200%, 1/01/27 – AGM Insured | 1/14 at 100.00 | AA– | 2,000,380 | ||||||||||||||
| 2,000 | Antelope Valley Healthcare District, California, Revenue Bonds, | 3/21 at 100.00 | Baa3 | 2,051,620 | ||||||||||||||
| 1,000 | California Health Facilities Financing Authority, Refunding Revenue Bonds, Stanford Hospital and Clinics, Series 2010A, 5.000%, 11/15/25 | 11/20 at 100.00 | AA– | 1,055,460 | ||||||||||||||
| 2,025 | California Health Facilities Financing Authority, Refunding Revenue Bonds, Stanford Hospital and Clinics, Series 2010B, 5.750%, 11/15/31 | 11/20 at 100.00 | AA– | 2,167,621 | ||||||||||||||
| 500 | California Health Facilities Financing Authority, Revenue Bonds, Adventist Health System/West, Series 2009C, 5.250%, 3/01/21 | 3/19 at 100.00 | A | 545,730 | ||||||||||||||
| Nuveen Investments | 33 |
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 1,000 | California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West, Series 2008G, 5.500%, 7/01/25 | 7/18 at 100.00 | A | $ | 1,074,640 | ||||||||||||
| 3,000 | California Health Facilities Financing Authority, Revenue Bonds, Catholic Healthcare West, Series 2009F, 5.625%, 7/01/25 | 7/19 at 100.00 | A | 3,215,040 | ||||||||||||||
| 1,000 | California Health Facilities Financing Authority, Revenue Bonds, Children’s Hospital Los Angeles, Series 2012A, 5.000%, 11/15/29 | No Opt. Call | BBB+ | 963,880 | ||||||||||||||
| 1,000 | California Health Facilities Financing Authority, Revenue Bonds, Childrens Hospital of Orange County, Series 2009A, 6.500%, 11/01/38 | 11/19 at 100.00 | A | 1,104,070 | ||||||||||||||
| 1,760 | California Health Facilities Financing Authority, Revenue Bonds, Marshall Medical Center, Series 2004A, 4.750%, 11/01/19 | 11/14 at 100.00 | A | 1,833,216 | ||||||||||||||
| 6,000 | California Health Facilities Financing Authority, Revenue Bonds, Rady Children’s Hospital – San Diego, Series 2011, 5.000%, 8/15/31 | 8/21 at 100.00 | A+ | 6,056,700 | ||||||||||||||
| 200 | California Health Facilities Financing Authority, Revenue Bonds, Scripps Health, Refunding Series 2008A, 5.000%, 10/01/22 | 10/18 at 100.00 | AA– | 218,744 | ||||||||||||||
| 1,050 | California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2008A, 5.000%, 8/15/38 | 8/18 at 100.00 | AA– | 1,016,526 | ||||||||||||||
| 2,000 | California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42 | 8/20 at 100.00 | AA– | 2,203,440 | ||||||||||||||
| 2,000 | California Municipal Finance Authority, Certificates of Participation, Community Hospitals of Central California Obligated Group, | 2/19 at 100.00 | BBB | 1,911,680 | ||||||||||||||
| 2,000 | California Statewide Communities Development Authority, Health Facility Revenue Bonds, Community Hospital of the Monterey Peninsula, | 6/21 at 100.00 | AA– | 2,177,300 | ||||||||||||||
| 300 | California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System West, Series 2005A, 5.000%, 3/01/30 | 3/15 at 100.00 | A | 292,920 | ||||||||||||||
| 2,950 | California Statewide Communities Development Authority, Revenue Bonds, Cottage Health System Obligated Group, Series 2010, 5.000%, 11/01/40 | 11/20 at 100.00 | AA– | 2,874,923 | ||||||||||||||
| 6,500 | California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31 | 7/17 at 100.00 | N/R | 5,512,520 | ||||||||||||||
| 1,000 | California Statewide Community Development Authority, Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008C, 5.625%, 7/01/35 | 7/18 at 100.00 | A | 1,065,860 | ||||||||||||||
California Statewide Community Development Authority, Health Revenue Bonds, Enloe Medical Center, Refunding Series 2008A: | ||||||||||||||||||
| 145 | 5.250%, 8/15/19 | 8/18 at 100.00 | A | 162,264 | ||||||||||||||
| 500 | 5.500%, 8/15/23 | 8/18 at 100.00 | A | 558,040 | ||||||||||||||
| 2,155 | 6.250%, 8/15/28 | 8/18 at 100.00 | A | 2,445,666 | ||||||||||||||
| 500 | California Statewide Community Development Authority, Hospital Revenue Bonds, Redlands Community Hospital, Series 2005A, 5.000%, 4/01/15 – RAAI Insured | No Opt. Call | BBB+ | 523,015 | ||||||||||||||
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Henry Mayo Newhall Memorial Hospital, | ||||||||||||||||||
| 500 | 5.000%, 10/01/20 | 10/17 at 100.00 | A | 542,645 | ||||||||||||||
| 400 | 5.000%, 10/01/27 | 10/17 at 100.00 | A | 410,208 | ||||||||||||||
California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A: | ||||||||||||||||||
| 2,235 | 5.250%, 7/01/30 | 7/15 at 100.00 | BBB– | 2,241,996 | ||||||||||||||
| 1,980 | 5.250%, 7/01/35 | 7/15 at 100.00 | BBB– | 1,973,486 | ||||||||||||||
| 115 | 5.000%, 7/01/39 | 7/15 at 100.00 | BBB– | 109,624 | ||||||||||||||
| 4,670 | California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005G, 5.000%, 7/01/22 | 7/15 at 100.00 | BBB– | 4,837,233 | ||||||||||||||
| 860 | California Statewide Community Development Authority, Revenue Bonds, John Muir Health System, Series 2006A, 5.000%, 8/15/29 | 8/16 at 100.00 | A+ | 863,732 | ||||||||||||||
| 34 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 1,615 | California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2001C, 5.250%, 8/01/31 | 8/16 at 100.00 | A+ | $ | 1,627,726 | ||||||||||||
| 3,000 | California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2007B, 1.054%, 4/01/36 | 4/17 at 100.00 | A+ | 2,312,130 | ||||||||||||||
| 2,010 | California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38 | 8/19 at 100.00 | Aa2 | 2,319,399 | ||||||||||||||
| 8,225 | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 – FGIC Insured | 7/18 at 100.00 | AA– | 8,705,667 | ||||||||||||||
| 1,100 | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007B, 5.500%, 7/01/27 – FGIC Insured | 7/18 at 100.00 | AA– | 1,197,251 | ||||||||||||||
| 500 | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007C, 5.500%, 7/01/27 – FGIC Insured | 7/18 at 100.00 | AA– | 544,205 | ||||||||||||||
| 3,065 | Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38 | 12/17 at 100.00 | BBB | 3,323,012 | ||||||||||||||
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011: | ||||||||||||||||||
| 2,015 | 5.250%, 1/01/27 | 1/21 at 100.00 | A | 2,057,255 | ||||||||||||||
| 3,705 | 5.250%, 1/01/35 | 1/21 at 100.00 | A | 3,646,350 | ||||||||||||||
| 2,000 | 5.250%, 1/01/42 | 1/21 at 100.00 | A | 1,946,660 | ||||||||||||||
| 1,335 | Northern Inyo County Local Hospital District, Inyo County, California, Revenue Bonds, Series 2010, 6.375%, 12/01/25 | 12/20 at 100.00 | BBB– | 1,397,852 | ||||||||||||||
| 1,580 | Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 7.000%, 11/01/35 | 11/20 at 100.00 | BB+ | 1,583,745 | ||||||||||||||
| 7,600 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39 | 11/19 at 100.00 | Baa3 | 7,775,636 | ||||||||||||||
| 3,625 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41 | 11/20 at 100.00 | Baa3 | 3,459,156 | ||||||||||||||
| 4,500 | Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 – AMBAC Insured | 8/17 at 100.00 | A+ | 4,625,820 | ||||||||||||||
Sierra View Local Health Care District, California, Revenue Bonds, Series 2007: | ||||||||||||||||||
| 1,000 | 5.250%, 7/01/24 | 7/17 at 100.00 | A | 1,010,650 | ||||||||||||||
| 1,000 | 5.300%, 7/01/26 | 7/17 at 100.00 | A | 1,002,670 | ||||||||||||||
| 1,000 | 5.250%, 7/01/37 | 9/17 at 100.00 | A | 923,900 | ||||||||||||||
| 3,040 | Upland, California, Certificates of Participation, San Antonio Community Hospital, Series 2011, 6.500%, 1/01/41 | 1/21 at 100.00 | A | 3,273,411 | ||||||||||||||
| 105,260 | Total Health Care | 106,742,674 | ||||||||||||||||
Housing/Multifamily – 2.5% | ||||||||||||||||||
| 1,500 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45 | 8/20 at 100.00 | BBB | 1,542,075 | ||||||||||||||
| 1,580 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012A, 5.500%, 8/15/47 | 8/22 at 100.00 | BBB | 1,505,456 | ||||||||||||||
| 1,000 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2012B, 7.250%, 8/15/47 | 8/22 at 100.00 | A1 | 942,010 | ||||||||||||||
| 410 | California Statewide Communities Development Authority, Student Housing Revenue Bonds, CHF-Irvine, LLC-UCI East Campus Apartments, Phase II, Series 2008, 5.500%, 5/15/26 | 5/18 at 100.00 | Baa2 | 422,981 | ||||||||||||||
| 4,180 | California Statewide Community Development Authority, Multifamily Housing Revenue Senior Bonds, Westgate Courtyards Apartments, Series 2001X-1, 5.420%, 12/01/34 – AMBAC Insured (Alternative Minimum Tax) | 12/13 at 100.00 | N/R | 3,801,919 | ||||||||||||||
| Nuveen Investments | 35 |
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Housing/Multifamily (continued) | ||||||||||||||||||
| $ | 3,865 | Los Angeles, California, GNMA Mortgage-Backed Securities Program Multifamily Housing Revenue Bonds, Park Plaza West Senior Apartments, Series 2001B, 5.400%, 1/20/31 (Alternative Minimum Tax) | 1/14 at 100.00 | AA+ | $ | 3,866,546 | ||||||||||||
| 1,970 | San Dimas Housing Authority, California, Mobile Home Park Revenue Bonds, Charter Oak Mobile Home Estates Acquisition Project, | 1/14 at 100.00 | N/R | 1,946,537 | ||||||||||||||
| 1,680 | San Jose, California, Multifamily Housing Senior Lien Revenue Bonds, Fallen Leaves Apartments, Series 2002J1, 4.950%, 12/01/22 – AMBAC Insured (Alternative Minimum Tax) | 11/13 at 100.00 | N/R | 1,696,262 | ||||||||||||||
| 1,000 | Ventura County Area Housing Authority, California, Multifamily Revenue Bonds, Mira Vista Senior Apartments Project, Series 2006A, | 12/16 at 100.00 | N/R | 841,740 | ||||||||||||||
| 17,185 | Total Housing/Multifamily | 16,565,526 | ||||||||||||||||
Housing/Single Family – 0.0% | ||||||||||||||||||
| 225 | California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 – FGIC Insured (Alternative Minimum Tax) | 2/16 at 100.00 | BBB | 235,085 | ||||||||||||||
Industrials – 0.2% | ||||||||||||||||||
| 500 | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2002B, | 7/15 at 101.00 | BBB | 496,025 | ||||||||||||||
| 500 | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2005A-2, | 4/15 at 101.00 | BBB | 506,100 | ||||||||||||||
| 1,000 | Total Industrials | 1,002,125 | ||||||||||||||||
Long-Term Care – 1.8% | ||||||||||||||||||
ABAG Finance Authority for Non-Profit Corporations, California, | ||||||||||||||||||
| 1,850 | 5.400%, 8/15/24 | 8/14 at 100.00 | A | 1,871,775 | ||||||||||||||
| 2,130 | 5.600%, 8/15/34 | 8/14 at 100.00 | A | 2,140,245 | ||||||||||||||
| 3,000 | ABAG Finance Authority for Non-Profit Corporations, California, Health Facility Revenue Bonds, The Insitute on Aging, Series 2008A, 5.650%, 8/15/38 | 8/18 at 100.00 | A | 3,109,800 | ||||||||||||||
| 1,000 | California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009, 8.000%, 11/01/29 | 11/19 at 100.00 | Baa1 | 1,146,910 | ||||||||||||||
| 2,000 | California Municipal Finance Authority, Senior Living Revenue Bonds, Pilgrim Place at Claremont, Series 2009A, 6.125%, 5/15/39 | 5/19 at 100.00 | A | 2,067,740 | ||||||||||||||
| 560 | California Statewide Community Development Authority, Revenue Bonds, Los Angeles Jewish Home for the Aging, Series 2008, 4.500%, 11/15/19 | 5/18 at 100.00 | A | 600,012 | ||||||||||||||
| 1,000 | Eden Township Healthcare District, California, Certificates of Participation, Installment Sale Agreement with Eden Hospital Health Services Corporation, Series 2010, 6.000%, 6/01/30 | 6/20 at 100.00 | BBB+ | 1,009,550 | ||||||||||||||
| 11,540 | Total Long-Term Care | 11,946,032 | ||||||||||||||||
Tax Obligation/General – 16.0% | ||||||||||||||||||
| 1,000 | Acalanes Union High School District, Contra Costa County, California, General Obligation Bonds, Refunding Series 2010A, 0.000%, 8/01/26 | No Opt. Call | Aa1 | 556,030 | ||||||||||||||
| 5,250 | Bakersfield City School District, Kern County, California, General Obligation Bonds, Series 2012C, 0.000%, 5/01/42 | 5/40 at 100.00 | Aa2 | 1,398,128 | ||||||||||||||
| 1,000 | Baldwin Park Unified School District, Los Angeles County, California, General Obligation Bonds, Election 2002 Series 2006, 0.000%, 8/01/20 – AMBAC Insured | 8/16 at 83.04 | A+ | 743,330 | ||||||||||||||
| 4,500 | California State, General Obligation Bonds, Various Purpose Refunding Series 2013, 5.000%, 2/01/29 | No Opt. Call | A1 | 4,688,595 | ||||||||||||||
| 36 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
California State, General Obligation Bonds, Various Purpose Series 2009: | ||||||||||||||||||
| $ | 600 | 5.625%, 4/01/26 | 4/19 at 100.00 | A1 | $ | 654,630 | ||||||||||||
| 5,020 | 5.500%, 11/01/34 | 11/19 at 100.00 | A1 | 5,287,466 | ||||||||||||||
| 4,060 | 6.000%, 11/01/39 | 11/19 at 100.00 | A1 | 4,532,706 | ||||||||||||||
California State, General Obligation Bonds, Various Purpose Series 2010: | ||||||||||||||||||
| 5,090 | 5.250%, 3/01/30 | 3/20 at 100.00 | A1 | 5,355,902 | ||||||||||||||
| 10,000 | 5.500%, 3/01/40 | 3/20 at 100.00 | A1 | 10,347,498 | ||||||||||||||
| 4,000 | 5.250%, 11/01/40 | 11/20 at 100.00 | A1 | 4,061,760 | ||||||||||||||
California State, General Obligation Bonds, Various Purpose Series 2011: | ||||||||||||||||||
| 2,500 | 5.250%, 10/01/27 | 10/21 at 100.00 | A1 | 2,705,475 | ||||||||||||||
| 4,000 | 5.250%, 10/01/32 | 10/21 at 100.00 | A1 | 4,187,520 | ||||||||||||||
| 2,000 | California State, General Obligation Bonds, Various Purpose Series 2012, 5.250%, 4/01/35 | 4/22 at 100.00 | A1 | 2,052,720 | ||||||||||||||
| 855 | Central Unified School District, Fresno County, California, General Obligation Bonds, Election 2008 Series 2009A, 5.625%, 8/01/33 – AGC Insured | 8/19 at 100.00 | AA– | 899,024 | ||||||||||||||
| 6,900 | Central Unified School District, Fresno County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/31 – AGM Insured | 8/16 at 100.00 | AA– | 6,959,340 | ||||||||||||||
| 5,000 | Chabot-Las Positas Community College District, California, General Obligation Bonds, Series 2006C, 0.000%, 8/01/41 – AMBAC Insured | 8/16 at 28.46 | Aa3 | 855,250 | ||||||||||||||
| 1,000 | College of the Sequoias Visalia Area Improvement District 2, Tulare County, California, General Obligation Bonds, Sequoias Community College District, Election 2008 Series 2009A, 5.250%, 8/01/29 – AGC Insured | 8/19 at 100.00 | AA– | 1,032,790 | ||||||||||||||
| 500 | Corona-Norco Unified School District, Riverside County, California, General Obligation Bonds, Capital Appreciation, Election 2006 Refunding Series 2009C, 0.000%, 8/01/39 – AGM Insured | 8/27 at 100.00 | Aa2 | 422,515 | ||||||||||||||
| 500 | Corona-Norco Unified School District, Riverside County, California, General Obligation Bonds, Election 2006 Series 2009B, 5.375%, 2/01/34 – AGC Insured | 8/18 at 100.00 | Aa2 | 521,200 | ||||||||||||||
| 1,705 | Cupertino Union School District, Santa Clara County, California, General Obligation Bonds, Series 2010D, 0.000%, 8/01/30 | 8/20 at 52.75 | Aa1 | 615,761 | ||||||||||||||
| 12,500 | Desert Community College District, Riverside County, California, General Obligation Bonds, Election 2004 Series 2007C, 0.000%, 8/01/46 – AGM Insured | No Opt. Call | Aa2 | 1,837,500 | ||||||||||||||
| 365 | Desert Sands Unified School District, Riverside County, California, General Obligation Bonds, Election 2001, Series 2008, 5.250%, 8/01/23 | 8/18 at 100.00 | Aa2 | 409,085 | ||||||||||||||
| 1,185 | Folsom Cordova Unified School District, Sacramento County, California, General Obligation Bonds, School Facilities Improvement District 2, Series 2004B, 5.000%, 10/01/27 – AGM Insured | 10/14 at 100.00 | AA– | 1,222,470 | ||||||||||||||
Golden West Schools Financing Authority, California, General Obligation Revenue Refunding Bonds, School District Program, Series 1999A: | ||||||||||||||||||
| 770 | 5.750%, 2/01/14 – NPFG Insured | No Opt. Call | A | 785,231 | ||||||||||||||
| 320 | 5.800%, 8/01/22 – NPFG Insured | No Opt. Call | A | 364,531 | ||||||||||||||
| 345 | 5.800%, 8/01/23 – NPFG Insured | No Opt. Call | A | 391,796 | ||||||||||||||
| 950 | Grossmont Union High School District, San Diego County, California, General Obligation Bonds, Series 2009A, 5.500%, 8/01/31 | 8/19 at 100.00 | Aa2 | 1,026,076 | ||||||||||||||
| 600 | Hemet Unified School District, Riverside County, California, General Obligation Bonds, Series 2008B, 5.000%, 8/01/30 – AGC Insured | 8/16 at 102.00 | AA– | 616,680 | ||||||||||||||
Jefferson Union High School District, San Mateo County, California, General Obligation Bonds, Series 2000A: | ||||||||||||||||||
| 300 | 6.250%, 2/01/14 – NPFG Insured | No Opt. Call | A+ | 307,275 | ||||||||||||||
| 460 | 6.250%, 8/01/20 – NPFG Insured | No Opt. Call | A+ | 544,231 | ||||||||||||||
| 500 | Long Beach Unified School District, Los Angeles County, California, General Obligation Bonds, Election of 2008, Series 2009A, 5.500%, 8/01/29 | 8/19 at 100.00 | Aa2 | 547,075 | ||||||||||||||
| Nuveen Investments | 37 |
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 150 | Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2009D, 5.000%, 1/01/34 | 7/19 at 100.00 | Aa2 | $ | 151,199 | ||||||||||||
| 100 | Lucia Mar Unified School District, San Luis Obispo County, California, General Obligation Bonds, Refunding Series 2005, 5.250%, 8/01/22 – FGIC Insured | No Opt. Call | Aa2 | 118,351 | ||||||||||||||
| 10,000 | Newport-Mesa Unified School District, Orange County, California, General Obligation Bonds, Election of 2005, Series 2011, 0.000%, 8/01/41 | 8/21 at 24.49 | Aa1 | 1,727,400 | ||||||||||||||
| 2,405 | Oak Valley Hospital District, Stanislaus County, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/31 – FGIC Insured | 7/14 at 101.00 | A2 | 2,427,294 | ||||||||||||||
| 1,155 | Pittsburg Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2009B, 5.500%, 8/01/34 – AGM Insured | 8/18 at 100.00 | AA– | 1,224,750 | ||||||||||||||
| 855 | Pomona Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2001A, 5.950%, 2/01/17 – NPFG Insured | No Opt. Call | A | 989,107 | ||||||||||||||
| 50 | Puerto Rico Government Development Bank, Senior Note Revenue Bonds, Senior Lien, Series 2006B, 5.000%, 12/01/14 | No Opt. Call | BBB– | 50,424 | ||||||||||||||
| 1,000 | Puerto Rico, General Obligation and Public Improvement Bonds, | No Opt. Call | AA | 1,055,130 | ||||||||||||||
| 2,070 | San Benito Health Care District, California, General Obligation Bonds, Series 2005, 5.000%, 7/01/31 – SYNCORA GTY Insured | 7/14 at 101.00 | BBB+ | 1,920,960 | ||||||||||||||
| 2,000 | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Series 2009A, 0.000%, 7/01/33 | 7/24 at 100.00 | AA– | 1,444,980 | ||||||||||||||
| 5,000 | San Francisco Bay Area Rapid Transit District, California, General Obligation Bonds, Election of 2004 Series 2007B, 5.000%, 8/01/32 | 8/17 at 100.00 | AAA | 5,224,050 | ||||||||||||||
| 1,535 | San Leandro Unified School District, Alameda County, California, General Obligation Bonds, Election 2006 Series 2010, 0.000%, 8/01/39 | 8/28 at 100.00 | AA– | 747,729 | ||||||||||||||
| 1,000 | Santa Ana Unified School District, Orange County, California, General Obligation Bonds, Series 2008A, 5.250%, 8/01/28 | 8/18 at 100.00 | AA– | 1,053,230 | ||||||||||||||
| 1,000 | Santa Barbara Community College District, California, General Obligation Bonds, Series 2008A, 5.250%, 8/01/27 | 8/18 at 100.00 | AA+ | 1,099,050 | ||||||||||||||
| 3,040 | Sulphur Springs Union School District, Los Angeles County, California, General Obligation Bonds, Series 1991A, 0.000%, 9/01/15 – NPFG Insured | No Opt. Call | A | 2,948,101 | ||||||||||||||
| 8,500 | Tahoe Forest Hospital District, Placer and Nevada Counties, California, General Obligation Bonds, Series 2010B, 5.500%, 8/01/35 | 8/18 at 100.00 | Aa3 | 8,922,278 | ||||||||||||||
Tulare Local Health Care District, California, General Obligation Bonds, Series 2009B-1: | ||||||||||||||||||
| 500 | 6.375%, 8/01/25 | 8/19 at 100.00 | Baa1 | 555,990 | ||||||||||||||
| 1,005 | 6.500%, 8/01/26 | 8/19 at 100.00 | Baa1 | 1,117,299 | ||||||||||||||
| 1,555 | Victor Valley Community College District, San Bernardino County, California, General Obligation Bonds, Election of 2008 Series 2009A, 5.000%, 8/01/31 | 8/19 at 100.00 | Aa2 | 1,594,466 | ||||||||||||||
| 2,000 | Victor Valley Union High School District, San Bernardino County, California, General Obligation Bonds, Series 2009A, 0.000%, 8/01/31 – AGC Insured | 8/26 at 100.00 | AA– | 1,449,340 | ||||||||||||||
| 1,100 | West Contra Costa Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2008B, 6.000%, 8/01/24 | No Opt. Call | Aa3 | 1,276,396 | ||||||||||||||
| 770 | West Covina Unified School District, Los Angeles County, California, General Obligation Bonds, Series 2002A Refunding, 5.350%, 2/01/20 – NPFG Insured | No Opt. Call | A+ | 869,345 | ||||||||||||||
| 1,000 | Whittier Union High School District, Los Angeles County, California, General Obligation Bonds, Series 2009A, 0.000%, 8/01/34 | 8/19 at 38.81 | AA– | 294,640 | ||||||||||||||
| 3,500 | Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42 | No Opt. Call | Aa2 | 1,092,210 | ||||||||||||||
| 135,065 | Total Tax Obligation/General | 105,283,309 | ||||||||||||||||
| 38 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited – 34.4% | ||||||||||||||||||
Apple Valley Public Financing Authority, California, Lease Revenue Bonds, Town Hall Annex Project, Series 2007A: | ||||||||||||||||||
| $ | 485 | 4.500%, 9/01/17 – AMBAC Insured | No Opt. Call | A– | $ | 536,604 | ||||||||||||
| 500 | 5.000%, 9/01/27 – AMBAC Insured | 9/17 at 100.00 | A– | 511,695 | ||||||||||||||
| 55 | Barstow Redevelopment Agency, California, Tax Allocation Bonds, Central Redevelopment Project, Series 1994A, 7.000%, 9/01/14 – NPFG Insured | No Opt. Call | A | 56,454 | ||||||||||||||
| 1,000 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 17B, Series 2011A, 6.125%, 9/01/31 | 9/21 at 100.00 | N/R | 991,930 | ||||||||||||||
| 1,655 | Bell Community Housing Authority, California, Lease Revenue Bonds, Series 2005, 5.000%, 10/01/36 – AMBAC Insured | 10/15 at 100.00 | N/R | 1,303,941 | ||||||||||||||
| 2,250 | Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured | 11/13 at 100.00 | AA– | 2,257,943 | ||||||||||||||
Brea Public Finance Authority, California, Revenue Bonds, Series 2008A: | ||||||||||||||||||
| 2,105 | 7.000%, 9/01/23 | 9/16 at 102.00 | BBB+ | 2,224,375 | ||||||||||||||
| 2,000 | 7.125%, 9/01/26 | 9/16 at 102.00 | BBB+ | 2,091,180 | ||||||||||||||
| 2,665 | Brea Redevelopment Agency, Orange County, California, Tax Allocation Bonds, Project Area AB, Series 2011A, 0.000%, 8/01/34 | 8/21 at 36.61 | AA– | 622,784 | ||||||||||||||
| 2,725 | California Community College Financing Authority, Lease Revenue Bonds, Refunding Series 2003, 0.000%, 6/01/33 – AMBAC Insured | No Opt. Call | A+ | 851,263 | ||||||||||||||
| 1,960 | California Infrastructure and Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, | 12/13 at 100.00 | AA+ | 1,982,618 | ||||||||||||||
| 1,000 | California State Public Works Board, Lease Revenue Bonds, Judicial Council of California, Various Projects Series 2013A, 5.000%, 3/01/30 | No Opt. Call | A2 | 1,008,280 | ||||||||||||||
| 2,500 | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009G-1, 5.750%, 10/01/30 | 10/19 at 100.00 | A2 | 2,686,675 | ||||||||||||||
| 2,000 | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009-I, 6.375%, 11/01/34 | 11/19 at 100.00 | A2 | 2,303,080 | ||||||||||||||
| 3,000 | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2010A-1, 6.000%, 3/01/35 | 3/20 at 100.00 | A2 | 3,305,580 | ||||||||||||||
| 930 | California Statewide Communities Development Authority, Statewide Community Infrastructure Program Revenue Bonds, Series 2011A, 8.000%, 9/02/41 | 9/21 at 100.00 | N/R | 905,727 | ||||||||||||||
| 685 | Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured | 9/15 at 100.00 | A | 688,041 | ||||||||||||||
| 225 | Cathedral City Public Financing Authority, California, Tax Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%, 8/01/26 – NPFG Insured | 8/14 at 100.00 | A | 220,952 | ||||||||||||||
| 740 | Cerritos Public Financing Authority, California, Tax Allocation Revenue Bonds, Los Cerritos Redevelopment Projects, Series 2002A, | No Opt. Call | A– | 785,362 | ||||||||||||||
Chula Vista Municipal Finance Authority, California, Special Tax Revenue Bonds, Refunding Series 2013: | ||||||||||||||||||
| 2,230 | 5.500%, 9/01/29 | 9/23 at 100.00 | BBB+ | 2,283,409 | ||||||||||||||
| 1,570 | 5.500%, 9/01/30 | 9/23 at 100.00 | BBB+ | 1,592,922 | ||||||||||||||
| 660 | Compton Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Projects, Housing Second Lien | 8/20 at 100.00 | N/R | 605,821 | ||||||||||||||
| 1,425 | Compton Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Projects, Second Lien Series 2010B, 5.000%, 8/01/25 | 8/20 at 100.00 | N/R | 1,345,970 | ||||||||||||||
| 1,060 | Davis Redevelopment Agency, California, Tax Allocation Bonds, Davis Redevelopment Project, Subordinate Series 2011A, 7.000%, 12/01/36 | 12/21 at 100.00 | A+ | 1,189,627 | ||||||||||||||
| Nuveen Investments | 39 |
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 1,000 | Fullerton Community Facilities District 1, California, Special Tax Bonds, Amerige Heights, Refunding Series 2012, 5.000%, 9/01/26 | 9/22 at 100.00 | A– | $ | 1,025,250 | ||||||||||||
| 2,120 | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A, 4.550%, 6/01/22 – AGM Insured | 6/18 at 100.00 | AA– | 2,145,164 | ||||||||||||||
| 6,715 | Hawthorne Community Redevelopment Agency, California, Project Area 2 Tax Allocation Bonds, Series 2006, 5.000%, 9/01/26 – SYNCORA GTY Insured | 9/16 at 100.00 | N/R | 6,824,656 | ||||||||||||||
| 2,075 | Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured | 9/15 at 100.00 | BB+ | 1,736,734 | ||||||||||||||
| 1,660 | Highland, California, Special Tax Bonds, Communitiy Facilities | 9/21 at 100.00 | BBB | 1,630,087 | ||||||||||||||
Huntington Beach, California, Special Tax Bonds, Community Facilities District 2003-1 Huntington Center, Refunding Series 2013: | ||||||||||||||||||
| 2,285 | 5.250%, 9/01/30 | 9/23 at 100.00 | N/R | 2,239,711 | ||||||||||||||
| 1,000 | 5.375%, 9/01/33 | 9/23 at 100.00 | N/R | 974,300 | ||||||||||||||
Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1: | ||||||||||||||||||
| 430 | 5.000%, 5/01/24 – AMBAC Insured | 5/17 at 100.00 | BB+ | 417,005 | ||||||||||||||
| 1,155 | 5.000%, 5/01/25 – AMBAC Insured | 5/17 at 100.00 | BB+ | 1,106,144 | ||||||||||||||
| 170 | Irvine Unified School District, California, Special Tax Bonds, Community Facilities District Series 2006A, 5.000%, 9/01/26 | 9/16 at 100.00 | N/R | 167,447 | ||||||||||||||
| 740 | Irvine Unified School District, Orange County, California, Special Tax Bonds, Community Facilities District 06-1, Series 2010, 6.700%, 9/01/35 | 9/20 at 100.00 | N/R | 787,945 | ||||||||||||||
| 335 | Irwindale Community Redevelopment Agency, California, Tax Allocation Bonds, City Industrial Development Project, Subordinate Lien Refunding Series 2006, 5.000%, 12/01/18 – AMBAC Insured | No Opt. Call | BBB+ | 356,668 | ||||||||||||||
Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 25 Eastvale Area, Series 2008A: | ||||||||||||||||||
| 1,000 | 8.375%, 9/01/28 | 9/18 at 100.00 | N/R | 1,104,740 | ||||||||||||||
| 3,205 | 8.875%, 9/01/38 | 9/18 at 100.00 | N/R | 3,548,704 | ||||||||||||||
| 1,300 | Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Canyon Hills Improvement Area C, Series 2010A, 6.250%, 9/01/40 | 9/18 at 100.00 | N/R | 1,326,221 | ||||||||||||||
| 500 | Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, | 8/19 at 100.00 | BBB | 531,435 | ||||||||||||||
| 1,870 | Lancaster Redevelopment Agency, California, Tax Allocation Refunding Bonds, Combined Area Sheriff’s Facilities Projects, Series 2004, | 12/14 at 100.00 | A | 1,936,460 | ||||||||||||||
Lancaster Redevelopment Agency, California, Tax Allocation Refunding Bonds, Combined Fire Protection Facilities Project, Series 2004: | ||||||||||||||||||
| 800 | 5.250%, 12/01/17 – SYNCORA GTY Insured | 12/14 at 100.00 | A | 828,640 | ||||||||||||||
| 1,120 | 5.000%, 12/01/23 – SYNCORA GTY Insured | 12/14 at 100.00 | A | 1,159,805 | ||||||||||||||
| 4,555 | Long Beach Bond Finance Authority, California, Multiple Project Tax Allocation Bonds, Housing and Gas Utility Financing Project Areas, Series 2005A-1, 5.000%, 8/01/35 – AMBAC Insured | 8/15 at 100.00 | BBB+ | 4,430,649 | ||||||||||||||
| 1,200 | Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social Services Project, Series 2005, 5.000%, 9/01/16 – AMBAC Insured | 9/15 at 100.00 | A1 | 1,294,728 | ||||||||||||||
| 2,565 | Los Angeles Community Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Bunker Hill Redevelopment Project, | 3/14 at 100.00 | BBB– | 2,585,597 | ||||||||||||||
| 1,000 | Los Angeles Community Redevelopment Agency, California, Tax Allocation Bonds, Bunker Hill Project, Series 2004A, 5.000%, 12/01/20 – AGM Insured | 12/14 at 100.00 | AA– | 1,052,470 | ||||||||||||||
| 40 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 330 | Los Angeles, California, Certificates of Participation, Department of Public Social Services, Sonnenblick Del Rio West LA, Senior Lien Series 2000, 6.000%, 11/01/19 – AMBAC Insured | 11/13 at 100.00 | A2 | $ | 331,544 | ||||||||||||
| 970 | Milpitas, California, Local Improvement District 20 Limited Obligation Bonds, Series 1998A, 5.700%, 9/02/18 | 3/14 at 103.00 | N/R | 1,005,444 | ||||||||||||||
| 5,000 | Modesto, California, Community Facilties District 2004-1, Village One-2 Special Tax Bonds, Series 2006, 5.150%, 9/01/36 | 9/16 at 100.00 | N/R | 4,596,000 | ||||||||||||||
Moreno Valley Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 2003-1, Series 2004: | ||||||||||||||||||
| 805 | 5.550%, 9/01/29 | 9/14 at 100.00 | N/R | 807,874 | ||||||||||||||
| 1,250 | 5.650%, 9/01/34 | 9/14 at 100.00 | N/R | 1,252,400 | ||||||||||||||
| 350 | Murrieta, California, Special Tax Bonds, Community Facilities District | 9/14 at 100.00 | N/R | 354,141 | ||||||||||||||
| 205 | Murrieta, California, Special Tax Bonds, Community Facilities District | 3/14 at 100.00 | N/R | 190,541 | ||||||||||||||
National City Community Development Commission, California, Tax Allocation Bonds, National City Redevelopment Project, Series 2011: | ||||||||||||||||||
| 625 | 6.500%, 8/01/24 | 8/21 at 100.00 | A– | 724,544 | ||||||||||||||
| 3,455 | 7.000%, 8/01/32 | 8/21 at 100.00 | A– | 3,933,621 | ||||||||||||||
| 1,000 | Norco Redevelopment Agency, California, Tax Allocation Refunding Bonds, Project Area 1, Refunding Series 2010, 6.000%, 3/01/36 | 3/20 at 100.00 | A | 1,034,200 | ||||||||||||||
| 230 | Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40 | 9/21 at 100.00 | BBB+ | 244,513 | ||||||||||||||
| 2,070 | Oakland Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Central District Redevelopment Project, Series 2003, 5.500%, 9/01/16 – FGIC Insured | No Opt. Call | A | 2,076,438 | ||||||||||||||
| 2,350 | Palm Desert Financing Authority, California, Housing Set Aside Tax Allocation Bonds, Refunding Series 2007, 5.000%, 10/01/22 – NPFG Insured | 10/17 at 100.00 | Baa1 | 2,388,493 | ||||||||||||||
| 2,500 | Palm Drive Health Care District, Sonoma County, California, Certificates of Participation, Parcel Tax Secured Financing Program, Series 2010, 7.500%, 4/01/35 | 4/14 at 100.00 | BB | 2,481,275 | ||||||||||||||
| 14,050 | Paramount Redevelopment Agency, California, Tax Allocation Refunding Bonds, Redevelopment Project Area 1, Series 1998, 0.000%, 8/01/26 – NPFG Insured | No Opt. Call | A | 6,037,426 | ||||||||||||||
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A: | ||||||||||||||||||
| 2,720 | 5.250%, 9/01/30 | 9/23 at 100.00 | N/R | 2,607,827 | ||||||||||||||
| 2,440 | 5.750%, 9/01/39 | 9/23 at 100.00 | N/R | 2,369,557 | ||||||||||||||
| 445 | Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Subordinate Lien Series 2013B , 5.875%, 9/01/39 | 9/23 at 100.00 | N/R | 428,103 | ||||||||||||||
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011: | ||||||||||||||||||
| 225 | 6.000%, 9/01/33 | 9/21 at 100.00 | N/R | 225,851 | ||||||||||||||
| 490 | 6.125%, 9/01/41 | 9/21 at 100.00 | N/R | 486,433 | �� | |||||||||||||
| 3,355 | Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28 | 9/18 at 100.00 | BBB– | 3,428,743 | ||||||||||||||
| 750 | Poway Redevelopment Agency, California, Tax Allocation Bonds, Paugay Redevelopment Project, Series 2003A, 5.250%, 6/15/20 – NPFG Insured | 11/13 at 100.00 | A | 752,340 | ||||||||||||||
| 310 | Rancho Cucamonga Redevelopment Agency, California, Tax Allocation Bonds, Housing Set-Aside, Rancho Project, Series 2007A, | 9/17 at 100.00 | A+ | 332,088 | ||||||||||||||
| Nuveen Investments | 41 |
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 1,525 | Rancho Cucamonga, California, Limited Obligation Improvement Bonds, Masi Plaza Assessment District 93-1, Series 1997, 6.250%, 9/02/22 | 3/14 at 100.00 | N/R | $ | 1,534,699 | ||||||||||||
| 1,045 | Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30 | 9/21 at 100.00 | BBB+ | 1,091,273 | ||||||||||||||
| 2,005 | Richmond Redevelopment Agency, California, Harbour Project Tax Allocation Bonds, Series 1998A Refunding, 5.500%, 7/01/18 – NPFG Insured | 11/13 at 100.00 | AA– | 2,012,719 | ||||||||||||||
| 260 | Riverside County Public Financing Authority, California, Tax Allocation Bonds, Multiple Projects, Series 2005A, 5.000%, 10/01/24 – SYNCORA GTY Insured | 10/15 at 100.00 | BBB | 255,541 | ||||||||||||||
| 2,950 | Riverside County Redevelopment Agency, California, Interstate 215 Corridor Redevelopment Project Area Tax Allocation Bonds, | 10/20 at 100.00 | A– | 3,127,885 | ||||||||||||||
| 100 | Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project Area, Series 2011B, 6.500%, 10/01/25 | 10/21 at 100.00 | A– | 109,004 | ||||||||||||||
| 5,000 | Riverside County Transportation Commission, California, Sales Tax Revenue Bonds, Limited Tax Bonds, Series 2013A, 5.250%, 6/01/39 | 6/23 at 100.00 | AA+ | 5,196,900 | ||||||||||||||
Riverside County Transportation Commission, California, Toll Revenue Senior Lien Bonds, Series 2013A: | ||||||||||||||||||
| 1,000 | 5.750%, 6/01/44 | 6/23 at 100.00 | BBB– | 971,820 | ||||||||||||||
| 5,000 | 5.750%, 6/01/48 | 6/23 at 100.00 | BBB– | 4,816,350 | ||||||||||||||
| 1,000 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Diamond Creek, Series 2007, 5.000%, 9/01/37 | 9/17 at 100.00 | N/R | 779,650 | ||||||||||||||
| 1,700 | Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – AMBAC Insured | No Opt. Call | A | 1,899,954 | ||||||||||||||
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B: | ||||||||||||||||||
| 1,120 | 5.000%, 11/01/14 | No Opt. Call | A | 1,146,331 | ||||||||||||||
| 500 | 5.400%, 11/01/20 | No Opt. Call | A | 558,810 | ||||||||||||||
| 850 | San Bernardino County Redevelopment Agency, California, Tax Allocation Refunding Bonds, San Sevaine Project, Series 2005A, 5.000%, 9/01/16 – RAAI Insured | 9/15 at 100.00 | BBB | 880,813 | ||||||||||||||
| 1,955 | San Francisco City and County Redevelopment Agency, California, Hotel Occupancy Tax Revenue Bonds, Refunding Series 2011, | 6/21 at 100.00 | AA– | 2,041,470 | ||||||||||||||
| 5,255 | San Francisco City and County, California, Certificates of Participation, Refunding Series 2010A, 5.000%, 10/01/30 | 10/20 at 100.00 | AA– | 5,412,703 | ||||||||||||||
San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, | ||||||||||||||||||
| 325 | 4.100%, 8/01/14 – RAAI Insured | No Opt. Call | A– | 331,321 | ||||||||||||||
| 250 | 4.250%, 8/01/16 – RAAI Insured | No Opt. Call | A– | 260,040 | ||||||||||||||
| 380 | 4.375%, 8/01/18 – RAAI Insured | 8/16 at 100.00 | A– | 387,817 | ||||||||||||||
| 525 | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, | 8/19 at 100.00 | A– | 567,987 | ||||||||||||||
| 1,185 | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, | 2/21 at 100.00 | A– | 1,299,104 | ||||||||||||||
San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D: | ||||||||||||||||||
| 80 | 7.000%, 8/01/33 | 2/21 at 100.00 | BBB | 85,862 | ||||||||||||||
| 105 | 7.000%, 8/01/41 | 2/21 at 100.00 | BBB | 111,046 | ||||||||||||||
| 3,500 | San Jose Redevelopment Agency, California, Housing Set-Aside Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2010A-1, 5.500%, 8/01/35 | 8/20 at 100.00 | A | 3,527,860 | ||||||||||||||
| 42 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 2,990 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2003, 5.000%, 8/01/19 – FGIC Insured | 11/13 at 100.00 | A | $ | 2,992,183 | ||||||||||||
| 350 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2005A, 5.000%, 8/01/20 – NPFG Insured | 8/15 at 100.00 | A | 359,856 | ||||||||||||||
| 590 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006C, 5.000%, 8/01/25 – NPFG Insured | 8/17 at 100.00 | A | 584,755 | ||||||||||||||
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006D: | ||||||||||||||||||
| 1,900 | 5.000%, 8/01/18 – AMBAC Insured | 8/17 at 100.00 | BBB | 1,998,496 | ||||||||||||||
| 645 | 5.000%, 8/01/19 – AMBAC Insured | 8/17 at 100.00 | BBB | 670,058 | ||||||||||||||
| 540 | 5.000%, 8/01/21 – AMBAC Insured | 8/17 at 100.00 | BBB | 555,250 | ||||||||||||||
San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2008B: | ||||||||||||||||||
| 1,085 | 6.375%, 8/01/21 | 8/18 at 100.00 | BBB | 1,183,323 | ||||||||||||||
| 480 | 6.500%, 8/01/23 | 8/18 at 100.00 | BBB | 513,619 | ||||||||||||||
| 1,000 | San Marcos Public Facilities Authority, California, Tax Allocation Bonds, Project Areas 1, 2 and 3, Series 2003A, 5.000%, 8/01/33 – FGIC Insured | No Opt. Call | A | 991,240 | ||||||||||||||
| 6,000 | San Marcos Redevelopment Agency, California, Tax Allocation Bonds, Affordable Housing Project, Series 1997A, 6.000%, 10/01/27 (Alternative Minimum Tax) | 10/13 at 100.00 | AA– | 6,018,720 | ||||||||||||||
| 315 | Sand City Redevelopment Agency, Monterrey County, California, Tax Allocation Revenue Bonds, Redevelopment Project, Series 2008A, 4.000%, 11/01/19 – AGC Insured | 11/18 at 100.00 | A3 | 318,159 | ||||||||||||||
| 2,140 | Santa Ana Community Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2011A, 6.750%, 9/01/28 | 3/21 at 100.00 | A+ | 2,413,963 | ||||||||||||||
| 3,500 | Santa Clara Redevelopment Agency, California, Tax Allocation Bonds, Bayshore North Project, Series 1999A, 5.500%, 6/01/23 – AMBAC Insured | 12/13 at 100.00 | A | 3,540,915 | ||||||||||||||
| 6,545 | Santa Clara Valley Transportation Authority, California, Sales Tax Revenue Bonds, Series 2007A, 5.000%, 4/01/36 – AMBAC Insured | 4/17 at 100.00 | AA+ | 6,604,298 | ||||||||||||||
Santa Cruz County Redevelopment Agency, California, Tax Allocation Bonds, Live Oak-Soquel Community Improvement Project Area, | ||||||||||||||||||
| 1,860 | 6.625%, 9/01/29 | 9/19 at 100.00 | A | 2,045,386 | ||||||||||||||
| 2,805 | 7.000%, 9/01/36 | 9/19 at 100.00 | A | 3,036,974 | ||||||||||||||
| 3,500 | Santee Community Development Commission, California, Santee Redevelopment Project Tax Allocation Bonds, Series 2011A, 6.500%, 8/01/26 | 2/21 at 100.00 | A | 3,956,890 | ||||||||||||||
| 2,815 | Shafter Joint Powers Financing Authority, California, Lease Revenue Bonds, Community Correctional Facility Acquisition Project, | 1/14 at 100.00 | A– | 2,823,670 | ||||||||||||||
| 180 | Signal Hill Redevelopment Agency, California, Project 1 Tax Allocation Bonds, Series 2011, 7.000%, 10/01/26 | 4/21 at 100.00 | N/R | 184,984 | ||||||||||||||
| 205 | Soledad Redevelopment Agency, California, Tax Allocation Bonds, Soledad Redevelopment Project, Series 2007A, 4.500%, 12/01/16 – SYNCORA GTY Insured | No Opt. Call | BB+ | 189,359 | ||||||||||||||
South Tahoe Redevelopment Agency, California, Community Facilities District 2001-1 , Heavenly Village, Special Tax Refunding Bonds, Series 2007: | ||||||||||||||||||
| 120 | 4.400%, 10/01/15 | No Opt. Call | N/R | 125,552 | ||||||||||||||
| 125 | 4.500%, 10/01/16 | 10/15 at 102.00 | N/R | 132,073 | ||||||||||||||
| 280 | 4.600%, 10/01/18 | 10/15 at 102.00 | N/R | 291,866 | ||||||||||||||
| Nuveen Investments | 43 |
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 500 | Temecula Redevelopment Agency, California, Redevelopment Project 1 Tax Allocation Housing Bonds Series 2011A, 6.750%, 8/01/31 | 8/21 at 100.00 | A | $ | 562,180 | ||||||||||||
| 1,000 | Temecula Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project 1, Series 2002, 5.250%, 8/01/36 – NPFG Insured | 11/13 at 100.00 | A | 936,710 | ||||||||||||||
| 300 | Travis Unified School District, Solano County, California, Certificates of Participation, Series 2006, 4.500%, 9/01/16 – FGIC Insured | No Opt. Call | Baa1 | 320,226 | ||||||||||||||
| 2,550 | Tulare Public Financing Authority, California, Lease Revenue Bonds, | 4/18 at 100.00 | AA– | 2,711,364 | ||||||||||||||
| 1,225 | Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.000%, 9/01/25 | 3/21 at 100.00 | BBB+ | 1,307,651 | ||||||||||||||
| 2,000 | Tustin, California, Community Facilities District 2007-1, Legacy-Retail Center Special Tax Bonds, 6.000%, 9/01/37 | 9/17 at 100.00 | N/R | 1,997,480 | ||||||||||||||
| 1,045 | Ukiah Redevelopment Agency, California, Tax Allocation Bonds, Ukiah Redevelopment Project, Series 2011A, 6.500%, 12/01/28 | 6/21 at 100.00 | A | 1,118,631 | ||||||||||||||
| 240 | Union City Community Redevelopment Agency, California, Tax Allocation Revenue Bonds, Redevelopment Project, Subordinate Lien Series 2011, 6.375%, 12/01/23 | 12/21 at 100.00 | A | 275,198 | ||||||||||||||
| 25 | Vernon Redevelopment Agency, California, Tax Allocation Bonds, Industrial Redevelopment Project, Series 2005, 5.000%, 9/01/35 – NPFG Insured | 9/15 at 100.00 | A | 22,121 | ||||||||||||||
Vista Community Development Commission Taxable Non-Housing Tax Allocation Revenue Bonds, California, Vista Redevlopment Project, Series 2011: | ||||||||||||||||||
| 7,600 | 6.000%, 9/01/33 | 9/21 at 100.00 | A– | 7,978,708 | ||||||||||||||
| 7,920 | 6.125%, 9/01/37 | 9/21 at 100.00 | A– | 8,315,366 | ||||||||||||||
| 8,535 | Westminster Redevelopment Agency, California, Tax Allocation Bonds, Commercial Redevelopment Project 1, Police Facility Subordinate | 11/19 at 100.00 | AA– | 9,323,973 | ||||||||||||||
| 320 | Yorba Linda Redevelopment Agency, Orange County, California, Tax Allocation Revenue Bonds, Yorba Linda Redevelopment Project, Subordinate Lien Series 2011A, 6.500%, 9/01/32 | 9/21 at 100.00 | A– | 352,227 | ||||||||||||||
| 1,965 | Yuba City Redevelopment Agency, California, Tax Allocation Bonds, | 9/14 at 100.00 | N/R | 1,922,733 | ||||||||||||||
| 232,960 | Total Tax Obligation/Limited | 226,735,305 | ||||||||||||||||
Transportation – 2.7% | ||||||||||||||||||
| 1,000 | Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Subordinate Lien Series 2004A, 0.000%, 10/01/14 – AMBAC Insured | No Opt. Call | BBB+ | 987,830 | ||||||||||||||
| 6,525 | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 – NPFG Insured | 1/14 at 100.00 | A | 6,192,290 | ||||||||||||||
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 1999: | ||||||||||||||||||
| 2,750 | 5.875%, 1/15/28 | 1/14 at 101.00 | BBB– | 2,765,785 | ||||||||||||||
| 3,255 | 5.750%, 1/15/40 – NPFG Insured | 1/14 at 100.00 | A | 3,045,704 | ||||||||||||||
Palm Springs Financing Authority, California, Palm Springs International Airport Revenue Bonds, Series 2006: | ||||||||||||||||||
| 285 | 5.450%, 7/01/20 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 281,939 | ||||||||||||||
| 195 | 5.550%, 7/01/28 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 183,883 | ||||||||||||||
| 4,000 | San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Series 2002, Issue 32G, | 5/16 at 100.00 | A+ | 4,297,320 | ||||||||||||||
| 18,010 | Total Transportation | 17,754,751 | ||||||||||||||||
| 44 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed – 1.8% (4) | ||||||||||||||||||
| $ | 1,015 | ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The Jackson Laboratory, Series 2007, 5.750%, 7/01/37 | 7/15 at 102.00 | A1 (4) | $ | 1,133,684 | ||||||||||||
| 110 | Barstow Redevelopment Agency, California, Tax Allocation Bonds, Central Redevelopment Project, Series 1994A, 7.000%, 9/01/14 – NPFG | No Opt. Call | A (4) | 113,513 | ||||||||||||||
| 500 | Bonita Unified School District, San Diego County, California, General Obligation Bonds, Series 2004A, 5.250%, 8/01/20 (Pre-refunded 8/01/14) – NPFG Insured | 8/14 at 100.00 | AA (4) | 523,245 | ||||||||||||||
| 430 | California Educational Facilities Authority, Revenue Bonds, Golden Gate University, Series 2005, 5.000%, 10/01/20 (Pre-refunded 10/01/15) | 10/15 at 100.00 | N/R (4) | 471,048 | ||||||||||||||
| 540 | California State Public Works Board, Lease Revenue Bonds, Department of Mental Health, Coalinga State Hospital, Series 2004A, 5.500%, 6/01/16 (Pre-refunded 6/01/14) | 6/14 at 100.00 | AAA | 561,578 | ||||||||||||||
| 805 | California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/25 (Pre-refunded 11/01/15) | 11/15 at 100.00 | Aa2 (4) | 885,049 | ||||||||||||||
Central Unified School District, Fresno County, California, General Obligation Bonds, Series 2004A: | ||||||||||||||||||
| 1,000 | 5.500%, 7/01/22 (Pre-refunded 7/01/14) – FGIC Insured | 7/14 at 100.00 | A+ (4) | 1,040,670 | ||||||||||||||
| 1,500 | 5.500%, 7/01/24 (Pre-refunded 7/01/14) – FGIC Insured | 7/14 at 100.00 | A+ (4) | 1,561,005 | ||||||||||||||
| 1,325 | Los Angeles Harbors Department, California, Revenue Bonds, Series 1988, 7.600%, 10/01/18 (ETM) | No Opt. Call | AA+ (4) | 1,540,776 | ||||||||||||||
Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 1993X: | ||||||||||||||||||
| 75 | 5.500%, 7/01/15 – NPFG Insured (ETM) | No Opt. Call | A3 (4) | 79,367 | ||||||||||||||
| 25 | 5.500%, 7/01/15 – NPFG Insured (ETM) | No Opt. Call | Baa1 (4) | 25,422 | ||||||||||||||
| 545 | Roseville Joint Union High School District, Placer County, California, General Obligation Bonds, Series 2006B, 5.000%, 8/01/27 (Pre-refunded 8/01/15) – FGIC Insured | 8/15 at 100.00 | AA (4) | 593,140 | ||||||||||||||
| 1,265 | San Bernardino Community College District, California, General Obligation Bonds, Series 2008A, 6.500%, 8/01/27 (Pre-refunded 8/01/18) | 8/18 at 100.00 | Aa2 (4) | 1,568,904 | ||||||||||||||
| 1,505 | San Mateo Union High School District, San Mateo County, California, Certificates of Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 (Pre-refunded 12/15/17) – AMBAC Insured | 12/17 at 100.00 | AA– (4) | 1,745,198 | ||||||||||||||
| 10,640 | Total U.S. Guaranteed | 11,842,599 | ||||||||||||||||
Utilities – 4.1% | ||||||||||||||||||
| 2,445 | California Statewide Community Development Authority, Certificates of Participation Refunding, Rio Bravo Fresno Project, Series 1999A, 6.500%, 12/01/18 | 12/13 at 100.00 | N/R | 2,273,190 | ||||||||||||||
Merced Irrigation District, California, Certificates of Participation, Water and Hydroelectric Series 2008B: | ||||||||||||||||||
| 4,535 | 0.000%, 9/01/23 | 9/16 at 64.56 | A | 2,504,363 | ||||||||||||||
| 27,110 | 0.000%, 9/01/33 | 9/16 at 32.62 | A | 7,341,659 | ||||||||||||||
| 12,000 | 0.000%, 9/01/38 | 9/16 at 23.21 | A | 2,306,760 | ||||||||||||||
| 1,210 | Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%, 9/01/31 – SYNCORA GTY Insured | 9/15 at 100.00 | N/R | 1,193,907 | ||||||||||||||
| 3,470 | Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Co-Generation Facility Revenue Bonds, Series 2000A, 6.625%, 6/01/26 (Alternative Minimum Tax) | 12/13 at 100.00 | Ba1 | 3,147,880 | ||||||||||||||
| 1,950 | Salinas Valley Solid Waste Authority, California, Revenue Bonds, Series 2002, 5.250%, 8/01/27 – AMBAC Insured (Alternative Minimum Tax) | 11/13 at 100.00 | A+ | 1,954,875 | ||||||||||||||
| 6,490 | Walnut Energy Center Authority, California, Revenue Refunding Bonds, Turlock Irrigation District, Series 2010A, 5.000%, 1/01/40 | 1/20 at 100.00 | A+ | 6,331,774 | ||||||||||||||
| 59,210 | Total Utilities | 27,054,408 | ||||||||||||||||
| Nuveen Investments | 45 |
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund (continued)
August 31, 2013
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Water and Sewer – 7.6% | ||||||||||||||||||
Banning Utility Authority, California, Water Revenue Bonds, Series 2005: | ||||||||||||||||||
| $ | 1,025 | 5.000%, 11/01/20 – FGIC Insured | 11/16 at 100.00 | A+ | $ | 1,125,727 | ||||||||||||
| 1,040 | 5.000%, 11/01/23 – FGIC Insured | 11/16 at 100.00 | A+ | 1,121,723 | ||||||||||||||
| 3,000 | Brentwood Infrastructure Financing Authority, California, Water Revenue Bonds, Series 2008, 5.750%, 7/01/38 | 7/18 at 100.00 | AA | 3,134,640 | ||||||||||||||
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside Desalination Project, | ||||||||||||||||||
| 6,480 | 5.000%, 7/01/37 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 5,262,602 | ||||||||||||||
| 3,530 | 5.000%, 11/21/45 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 2,771,721 | ||||||||||||||
| 2,000 | California Statewide Community Development Authority, Water and Wastewater Revenue Bonds, Pooled Financing Program, Series 2003A, 5.250%, 10/01/23 – AGM Insured | 10/13 at 100.00 | AA– | 2,007,280 | ||||||||||||||
| 1,680 | Castaic Lake Water Agency, California, Certificates of Participation, | 8/14 at 100.00 | AA | 1,749,132 | ||||||||||||||
| 1,150 | Compton, California, Sewer Revenue Bonds, Series 1998 Refunding, 5.375%, 9/01/23 – NPFG Insured | 11/13 at 100.00 | A | 1,096,525 | ||||||||||||||
| 1,250 | Cucamonga Valley Water District, California, Certificates of Participation, Series 2006, 5.000%, 9/01/36 – NPFG Insured | 9/16 at 100.00 | AA | 1,239,875 | ||||||||||||||
| 80 | Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2007A-2, 5.000%, 7/01/44 – AMBAC Insured | 7/17 at 100.00 | AA | 80,078 | ||||||||||||||
| 3,745 | Los Angeles, California, Wastewater System Revenue Bonds, Refunding Series 2009A, 5.750%, 6/01/26 | 6/19 at 100.00 | AA+ | 4,233,273 | ||||||||||||||
| 2,600 | Los Angeles, California, Wastewater System Revenue Bonds, Subordinate Lien, Refunding Series 2013A, 5.000%, 6/01/35 | 6/23 at 100.00 | AA | 2,670,512 | ||||||||||||||
| 5,055 | Metropolitan Water District of Southern California, Water Revenue Bonds, 2006 Authorization Series 2007A, 5.000%, 7/01/37 | 7/17 at 100.00 | AAA | 5,173,793 | ||||||||||||||
| 1,555 | Metropolitan Water District of Southern California, Water Revenue Bonds, Series 2006C, 5.000%, 7/01/31 | No Opt. Call | AAA | 1,649,124 | ||||||||||||||
| 1,000 | Norco Financing Authority, California, Enterprise Revenue Refunding Bonds, Series 2009, 5.625%, 10/01/34 – AGM Insured | 10/19 at 100.00 | AA– | 1,041,980 | ||||||||||||||
| 805 | Oakdale Irrigation District, California, Certificates of Participation, Water Facilities Project, Series 2009, 5.500%, 8/01/34 | 8/19 at 100.00 | AA | 839,599 | ||||||||||||||
| 1,770 | Pomona Public Financing Authority, California, Revenue Bonds, Water Facilities Project, Series 2007AY, 5.000%, 5/01/27 – AMBAC Insured | 5/17 at 100.00 | A+ | 1,859,544 | ||||||||||||||
Rowland Water District, California, Certificates of Participation, Recycled Water Project, Series 2008: | ||||||||||||||||||
| 565 | 5.750%, 12/01/24 | 12/18 at 100.00 | AA– | 655,592 | ||||||||||||||
| 480 | 5.750%, 12/01/25 | 12/18 at 100.00 | AA– | 547,666 | ||||||||||||||
| 500 | 6.250%, 12/01/39 | 12/18 at 100.00 | AA– | 561,190 | ||||||||||||||
| 7,000 | San Buenaventura Public Facilities Financing Authority, California, Water Revenue Bonds, Series 2012B, 5.000%, 7/01/42 | 7/22 at 100.00 | AA | 6,946,660 | ||||||||||||||
| 1,000 | San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Series 2012A, 5.000%, 11/01/35 | 5/22 at 100.00 | AA– | 1,023,240 | ||||||||||||||
| 2,780 | West Basin Municipal Water District, California, Revenue Bonds, Tender Option Bonds Trust 1035, 18.093%, 8/01/36 (IF) (5) | 8/21 at 100.00 | Aa2 | 2,917,332 | ||||||||||||||
| 250 | Yuba Levee Financing Authority, California, Revenue Bonds, Yuba County Levee Financing Project, Series 2008A, 5.000%, 8/01/36 – AGC Insured | 9/17 at 100.00 | AA– | 247,885 | ||||||||||||||
| 50,340 | Total Water and Sewer | 49,956,693 | ||||||||||||||||
| $ | 729,110 | Total Investments (cost $650,064,331) – 99.1% | 653,064,194 | |||||||||||||||
Other Assets Less Liabilities – 0.9% | 5,974,713 | |||||||||||||||||
Net Assets – 100% | $ | 659,038,907 | ||||||||||||||||
| 46 | Nuveen Investments |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |||
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. | |||
| (3) | Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. | |||
| (4) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |||
| (5) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |||
| WI/DD | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. | |||
| (ETM) | Escrowed to maturity. | |||
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
| Nuveen Investments | 47 |
Statement of Assets and Liabilities (Unaudited)
August 31, 2013
| California High Yield | California | |||||||
Assets | ||||||||
Investments, at value (cost $288,519,520 and $650,064,331, respectively) | $ | 267,487,626 | $ | 653,064,194 | ||||
Cash | — | 4,370,606 | ||||||
Unrealized appreciation on forward swaps | 970,165 | — | ||||||
Receivable for: | ||||||||
Interest | 4,712,148 | 9,109,390 | ||||||
Investments sold | 3,971,552 | 8,226,124 | ||||||
Shares sold | 290,154 | 2,427,017 | ||||||
Other assets | 3,589 | 53,833 | ||||||
Total assets | 277,435,234 | 677,251,164 | ||||||
Liabilities | ||||||||
Cash overdraft | 8,695,302 | — | ||||||
Floating rate obligations | 915,000 | — | ||||||
Payable for: | ||||||||
Dividends | 303,910 | 774,495 | ||||||
Investments purchased | — | 15,287,534 | ||||||
Shares redeemed | 3,379,961 | 1,606,650 | ||||||
Accrued expenses: | ||||||||
Management fees | 161,316 | 297,325 | ||||||
Trustees fees | 3,375 | 35,611 | ||||||
12b-1 distribution and service fees | 59,910 | 89,260 | ||||||
Other | 59,608 | 121,382 | ||||||
Total liabilities | 13,578,382 | 18,212,257 | ||||||
Net assets | $ | 263,856,852 | $ | 659,038,907 | ||||
Class A Shares | ||||||||
Net assets | $ | 137,494,654 | $ | 269,378,404 | ||||
Shares outstanding | 17,152,060 | 26,766,084 | ||||||
Net asset value per share | $ | 8.02 | $ | 10.06 | ||||
Offering price per share (net asset value per share plus maximum sales charge of 4.20% of offering | $ | 8.37 | $ | 10.50 | ||||
Class B Shares | ||||||||
Net assets | N/A | $ | 612,523 | |||||
Shares outstanding | N/A | 60,951 | ||||||
Net asset value and offering price per share | N/A | $ | 10.05 | |||||
Class C Shares | ||||||||
Net assets | $ | 52,679,656 | $ | 64,243,405 | ||||
Shares outstanding | 6,579,344 | 6,404,975 | ||||||
Net asset value and offering price per share | $ | 8.01 | $ | 10.03 | ||||
Class I Shares | ||||||||
Net assets | $ | 73,682,542 | $ | 324,804,575 | ||||
Shares outstanding | 9,203,725 | 32,302,640 | ||||||
Net asset value and offering price per share | $ | 8.01 | $ | 10.06 | ||||
Net assets consist of: | ||||||||
Capital paid-in | $ | 295,809,060 | $ | 667,780,376 | ||||
Undistributed (Over-distribution of) net investment income | 338,774 | 1,463,536 | ||||||
Accumulated net realized gain (loss) | (12,229,253 | ) | (13,204,868 | ) | ||||
Net unrealized appreciation (depreciation) | (20,061,729 | ) | 2,999,863 | |||||
Net assets | $ | 263,856,852 | $ | 659,038,907 | ||||
Authorized shares – per class | Unlimited | Unlimited | ||||||
Par value per share | $ | 0.01 | $ | 0.01 | ||||
| N/A | – Fund does not offer Class B Shares. |
See accompanying notes to financial statements.
| 48 | Nuveen Investments |
Statement of Operations (Unaudited)
Six Months Ended August 31, 2013
| California High Yield | California | |||||||
Investment Income | $ | 9,699,002 | $ | 17,163,473 | ||||
Expenses | ||||||||
Management fees | 945,424 | 1,771,553 | ||||||
12b-1 service fees – Class A | 180,702 | 274,166 | ||||||
12b-1 distribution and service fees – Class B | N/A | 3,837 | ||||||
12b-1 distribution and service fees – Class C | 227,725 | 275,615 | ||||||
Shareholders servicing agent fees and expenses | 56,506 | 132,708 | ||||||
Interest expense | 2,862 | — | ||||||
Custodian fees and expenses | 55,346 | 68,718 | ||||||
Trustees fees and expenses | 4,799 | 8,854 | ||||||
Professional fees | 19,455 | 33,027 | ||||||
Shareholders reporting expenses | 22,536 | 32,689 | ||||||
Federal and state registration fees | 20,204 | 7,076 | ||||||
Other expenses | 7,720 | 13,396 | ||||||
Net expenses | 1,543,279 | 2,621,639 | ||||||
Net investment income (loss) | 8,155,723 | 14,541,834 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from investments | (3,234,524 | ) | (4,662,159 | ) | ||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments | (44,931,619 | ) | (55,339,401 | ) | ||||
Forward swaps | 560,944 | — | ||||||
Net realized and unrealized gain (loss) | (47,605,199 | ) | (60,001,560 | ) | ||||
Net increase (decrease) in net assets from operations | $ | (39,449,476 | ) | $ | (45,459,726 | ) | ||
| N/A | – Fund does not offer Class B Shares. |
See accompanying notes to financial statements.
| Nuveen Investments | 49 |
Statement of Changes in Net Assets (Unaudited)
| California High Yield | California | |||||||||||||||
Six Months Ended | Year Ended 2/28/13 | Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 8,155,723 | $ | 11,803,422 | $ | 14,541,834 | $ | 26,254,078 | ||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments | (3,234,524 | ) | 827,773 | (4,662,159 | ) | 1,998,717 | ||||||||||
Forward swaps | — | (2,180,247 | ) | — | — | |||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments | (44,931,619 | ) | 17,214,158 | (55,339,401 | ) | 25,723,789 | ||||||||||
Forward swaps | 560,944 | 2,094,994 | — | — | ||||||||||||
Net increase (decrease) in net assets from operations | (39,449,476 | ) | 29,760,100 | (45,459,726 | ) | 53,976,584 | ||||||||||
Distributions to Shareholders | ||||||||||||||||
From net investment income: | ||||||||||||||||
Class A | (4,295,130 | ) | (6,199,891 | ) | (5,583,931 | ) | (10,072,356 | ) | ||||||||
Class B | N/A | N/A | (13,309 | ) | (48,317 | ) | ||||||||||
Class C | (1,284,724 | ) | (2,305,543 | ) | (1,294,485 | ) | (2,271,203 | ) | ||||||||
Class I | (2,446,657 | ) | (4,150,581 | ) | (7,669,592 | ) | (14,316,592 | ) | ||||||||
Decrease in net assets from distributions to shareholders | (8,026,511 | ) | (12,656,015 | ) | (14,561,317 | ) | (26,708,468 | ) | ||||||||
Fund Share Transactions | ||||||||||||||||
Proceeds from Fund reorganization | — | — | — | 272,324,630 | ||||||||||||
Proceeds from sale of shares | 104,127,168 | 226,301,470 | 119,876,405 | 167,332,759 | ||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 5,793,475 | 8,210,025 | 9,608,165 | 16,938,678 | ||||||||||||
| 109,920,643 | 234,511,495 | 129,484,570 | 456,596,067 | |||||||||||||
Cost of shares redeemed | (143,570,094 | ) | (62,941,278 | ) | (125,870,582 | ) | (111,067,241 | ) | ||||||||
Net increase (decrease) in net assets from Fund share transactions | (33,649,451 | ) | 171,570,217 | 3,613,988 | 345,528,826 | |||||||||||
Net increase (decrease) in net assets | (81,125,438 | ) | 188,674,302 | (56,407,055 | ) | 372,796,942 | ||||||||||
Net assets at the beginning of period | 344,982,290 | 156,307,988 | 715,445,962 | 342,649,020 | ||||||||||||
Net assets at the end of period | $ | 263,856,852 | $ | 344,982,290 | $ | 659,038,907 | $ | 715,445,962 | ||||||||
Undistributed (Over-distribution of) net investment income at | $ | 338,774 | $ | 209,562 | $ | 1,463,536 | $ | 1,483,019 | ||||||||
| N/A | – Fund does not offer Class B Shares. |
See accompanying notes to financial statements.
| 50 | Nuveen Investments |
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| Nuveen Investments | 51 |
Financial Highlights (Unaudited)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| CALIFORNIA HIGH YIELD | ||||||||||||||||||||||||||||||||
| Year Ended February 28/29, | Beginning Net Asset Value | Net Invest- ment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Invest- ment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (3/06) |
| |||||||||||||||||||||||||||||||
2014(f) | $ | 9.25 | $ | .22 | $ | (1.24 | ) | $ | (1.02 | ) | $ | (.21 | ) | $ | — | $ | (.21 | ) | $ | 8.02 | ||||||||||||
2013 | 8.52 | .46 | .77 | 1.23 | (.50 | ) | — | (.50 | ) | 9.25 | ||||||||||||||||||||||
2012 | 7.36 | .53 | 1.14 | 1.67 | (.51 | ) | — | (.51 | ) | 8.52 | ||||||||||||||||||||||
2011 | 7.87 | .52 | (.54 | ) | (.02 | ) | (.49 | ) | — | (.49 | ) | 7.36 | ||||||||||||||||||||
2010 | 6.51 | .51 | 1.34 | 1.85 | (.49 | ) | — | (.49 | ) | 7.87 | ||||||||||||||||||||||
2009 | 8.24 | .48 | (1.76 | ) | (1.28 | ) | (.45 | ) | — | (.45 | ) | 6.51 | ||||||||||||||||||||
Class C (3/06) |
| |||||||||||||||||||||||||||||||
2014(f) | 9.24 | .19 | (1.23 | ) | (1.04 | ) | (.19 | ) | — | (.19 | ) | 8.01 | ||||||||||||||||||||
2013 | 8.52 | .41 | .76 | 1.17 | (.45 | ) | — | (.45 | ) | 9.24 | ||||||||||||||||||||||
2012 | 7.36 | .49 | 1.14 | 1.63 | (.47 | ) | — | (.47 | ) | 8.52 | ||||||||||||||||||||||
2011 | 7.87 | .48 | (.54 | ) | (.06 | ) | (.45 | ) | — | (.45 | ) | 7.36 | ||||||||||||||||||||
2010 | 6.51 | .47 | 1.34 | 1.81 | (.45 | ) | — | (.45 | ) | 7.87 | ||||||||||||||||||||||
2009 | 8.24 | .44 | (1.76 | ) | (1.32 | ) | (.41 | ) | — | (.41 | ) | 6.51 | ||||||||||||||||||||
Class I (3/06) |
| |||||||||||||||||||||||||||||||
2014(f) | 9.24 | .23 | (1.24 | ) | (1.01 | ) | (.22 | ) | — | (.22 | ) | 8.01 | ||||||||||||||||||||
2013 | 8.51 | .48 | .77 | 1.25 | (.52 | ) | — | (.52 | ) | 9.24 | ||||||||||||||||||||||
2012 | 7.35 | .55 | 1.14 | 1.69 | (.53 | ) | — | (.53 | ) | 8.51 | ||||||||||||||||||||||
2011 | 7.86 | .53 | (.53 | ) | — | (.51 | ) | — | (.51 | ) | 7.35 | |||||||||||||||||||||
2010 | 6.50 | .52 | 1.34 | 1.86 | (.50 | ) | — | (.50 | ) | 7.86 | ||||||||||||||||||||||
2009 | 8.24 | .50 | (1.77 | ) | (1.27 | ) | (.47 | ) | — | (.47 | ) | 6.50 | ||||||||||||||||||||
| 52 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||||||||||
| Total Return(b) | Ending Net Assets (000) | Expenses Including Interest(d) | Expenses Excluding Interest | Net Invest- ment Income (Loss) | Expenses Including Interest(d) | Expenses Excluding Interest | Net (Loss) | Portfolio Turnover Rate(e) | ||||||||||||||||||||||||||
| (11.16 | )% | $ | 137,495 | .86 | %* | .86 | %* | 4.83 | %* | .86 | %* | .86 | %* | 4.83 | %* | 17 | % | |||||||||||||||||
| 14.77 | 186,683 | .89 | .89 | 5.11 | .87 | .87 | 5.13 | 7 | ||||||||||||||||||||||||||
| 23.45 | 70,416 | .89 | .89 | 6.77 | .88 | .88 | 6.77 | 19 | ||||||||||||||||||||||||||
| (.56 | ) | 60,178 | .90 | .90 | 6.53 | .90 | .90 | 6.53 | 17 | |||||||||||||||||||||||||
| 29.23 | 40,864 | .94 | .94 | 6.91 | .94 | .94 | 6.91 | 23 | ||||||||||||||||||||||||||
| (16.06 | ) | 32,290 | 1.01 | .92 | 6.13 | 1.01 | .92 | 6.13 | 55 | |||||||||||||||||||||||||
| (11.42 | ) | 52,680 | 1.42 | * | 1.42 | * | 4.31 | * | 1.42 | * | 1.42 | * | 4.31 | * | 17 | |||||||||||||||||||
| 14.06 | 61,358 | 1.44 | 1.44 | 4.59 | 1.42 | 1.42 | 4.61 | 7 | ||||||||||||||||||||||||||
| 22.84 | 32,156 | 1.44 | 1.44 | 6.17 | 1.43 | 1.43 | 6.17 | 19 | ||||||||||||||||||||||||||
| (1.07 | ) | 19,035 | 1.45 | 1.45 | 6.00 | 1.45 | 1.45 | 6.00 | 17 | |||||||||||||||||||||||||
| 28.56 | 15,971 | 1.49 | 1.49 | 6.25 | 1.49 | 1.49 | 6.25 | 23 | ||||||||||||||||||||||||||
| (16.55 | ) | 6,718 | 1.56 | 1.47 | 5.69 | 1.56 | 1.47 | 5.69 | 55 | |||||||||||||||||||||||||
| (11.08 | ) | 73,683 | .67 | * | .67 | * | 5.03 | * | .67 | * | .67 | * | 5.03 | * | 17 | |||||||||||||||||||
| 15.02 | 96,940 | .69 | .69 | 5.37 | .67 | .67 | 5.39 | 7 | ||||||||||||||||||||||||||
| 23.76 | 53,736 | .69 | .69 | 6.97 | .68 | .68 | 6.97 | 19 | ||||||||||||||||||||||||||
| (.34 | ) | 37,004 | .70 | .70 | 6.74 | .70 | .70 | 6.74 | 17 | |||||||||||||||||||||||||
| 29.54 | 32,212 | .74 | .74 | 7.09 | .74 | .74 | 7.09 | 23 | ||||||||||||||||||||||||||
| (16.01 | ) | 16,146 | .81 | .72 | 6.80 | .81 | .72 | 6.80 | 55 | |||||||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
| (d) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities. |
| (e) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (f) | For the six months ended August 31, 2013. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 53 |
Financial Highlights (Unaudited) (continued)
| Selected data for a share outstanding throughout each period: | ||||||||||||||||||||||||||||||||
| Class (Commencement Date) | ||||||||||||||||||||||||||||||||
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||
| CALIFORNIA | ||||||||||||||||||||||||||||||||
| Year Ended February 28/29, | Beginning Net Asset Value | Net Income | Net Realized/ Unrealized Gain (Loss) | Total | From Net Invest- ment Income | From Accumulated Net Realized Gains | Total | Ending Net Asset Value | ||||||||||||||||||||||||
Class A (9/94) |
| |||||||||||||||||||||||||||||||
2014(f) | $ | 10.97 | $ | .22 | $ | (.91 | ) | $ | (.69 | ) | $ | (.22 | ) | $ | — | $ | (.22 | ) | $ | 10.06 | ||||||||||||
2013 | 10.54 | .45 | .44 | .89 | (.46 | ) | — | (.46 | ) | 10.97 | ||||||||||||||||||||||
2012 | 9.46 | .48 | 1.07 | 1.55 | (.47 | ) | — | (.47 | ) | 10.54 | ||||||||||||||||||||||
2011 | 9.80 | .47 | (.36 | ) | .11 | (.45 | ) | — | (.45 | ) | 9.46 | |||||||||||||||||||||
2010 | 8.96 | .46 | .82 | 1.28 | (.44 | ) | — | (.44 | ) | 9.80 | ||||||||||||||||||||||
2009 | 9.50 | .44 | (.55 | ) | (.11 | ) | (.43 | ) | — | (.43 | ) | 8.96 | ||||||||||||||||||||
Class B (3/97) |
| |||||||||||||||||||||||||||||||
2014(f) | 10.96 | .18 | (.91 | ) | (.73 | ) | (.18 | ) | — | (.18 | ) | 10.05 | ||||||||||||||||||||
2013 | 10.52 | .37 | .45 | .82 | (.38 | ) | — | (.38 | ) | 10.96 | ||||||||||||||||||||||
2012 | 9.45 | .40 | 1.07 | 1.47 | (.40 | ) | — | (.40 | ) | 10.52 | ||||||||||||||||||||||
2011 | 9.80 | .39 | (.36 | ) | .03 | (.38 | ) | — | (.38 | ) | 9.45 | |||||||||||||||||||||
2010 | 8.96 | .39 | .82 | 1.21 | (.37 | ) | — | (.37 | ) | 9.80 | ||||||||||||||||||||||
2009 | 9.50 | .37 | (.55 | ) | (.18 | ) | (.36 | ) | — | (.36 | ) | 8.96 | ||||||||||||||||||||
Class C (9/94) |
| |||||||||||||||||||||||||||||||
2014(f) | 10.94 | .19 | (.91 | ) | (.72 | ) | (.19 | ) | — | (.19 | ) | 10.03 | ||||||||||||||||||||
2013 | 10.50 | .39 | .45 | .84 | (.40 | ) | — | (.40 | ) | 10.94 | ||||||||||||||||||||||
2012 | 9.43 | .42 | 1.07 | 1.49 | (.42 | ) | — | (.42 | ) | 10.50 | ||||||||||||||||||||||
2011 | 9.78 | .41 | (.36 | ) | .05 | (.40 | ) | — | (.40 | ) | 9.43 | |||||||||||||||||||||
2010 | 8.94 | .41 | .82 | 1.23 | (.39 | ) | — | (.39 | ) | 9.78 | ||||||||||||||||||||||
2009 | 9.48 | .39 | (.55 | ) | (.16 | ) | (.38 | ) | — | (.38 | ) | 8.94 | ||||||||||||||||||||
Class I (7/86) |
| |||||||||||||||||||||||||||||||
2014(f) | 10.96 | .23 | (.90 | ) | (.67 | ) | (.23 | ) | — | (.23 | ) | 10.06 | ||||||||||||||||||||
2013 | 10.52 | .47 | .44 | .91 | (.47 | ) | — | (.47 | ) | 10.96 | ||||||||||||||||||||||
2012 | 9.45 | .50 | 1.06 | 1.56 | (.49 | ) | — | (.49 | ) | 10.52 | ||||||||||||||||||||||
2011 | 9.79 | .49 | (.36 | ) | .13 | (.47 | ) | — | (.47 | ) | 9.45 | |||||||||||||||||||||
2010 | 8.95 | .48 | .82 | 1.30 | (.46 | ) | — | (.46 | ) | 9.79 | ||||||||||||||||||||||
2009 | 9.49 | .46 | (.55 | ) | (.09 | ) | (.45 | ) | — | (.45 | ) | 8.95 | ||||||||||||||||||||
| 54 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||||||||||||
| Ratios to Average Net Assets Before Waiver/Reimbursement | Ratios to Average Net Assets After Waiver/Reimbursement(c) | |||||||||||||||||||||||||||||||||
| Total Return(b) | Ending Net Assets (000) | Expenses Including Interest(d) | Expenses Excluding Interest | Net Invest- ment Income (Loss) | Expenses Including Interest(d) | Expenses Excluding Interest | Net Invest- ment Income (Loss) | Portfolio Turnover Rate(e) | ||||||||||||||||||||||||||
| (6.38 | )% | $ | 269,378 | .78 | %* | .78 | %* | 4.06 | %* | .78 | %* | .78 | %* | 4.06 | %* | 27 | % | |||||||||||||||||
| 8.57 | 274,043 | .80 | .80 | 4.14 | .80 | .80 | 4.14 | 13 | ||||||||||||||||||||||||||
| 16.79 | 142,844 | .82 | .82 | 4.82 | .82 | .82 | 4.82 | 20 | ||||||||||||||||||||||||||
| 1.05 | 136,513 | .81 | .81 | 4.77 | .81 | .81 | 4.77 | 18 | ||||||||||||||||||||||||||
| 14.56 | 128,672 | .86 | .85 | 4.86 | .86 | .85 | 4.86 | 14 | ||||||||||||||||||||||||||
| (1.25 | ) | 106,117 | .90 | .85 | 4.66 | .90 | .85 | 4.66 | 40 | |||||||||||||||||||||||||
| (6.75 | ) | 613 | 1.53 | * | 1.53 | * | 3.29 | * | 1.53 | * | 1.53 | * | 3.29 | * | 27 | |||||||||||||||||||
| 7.88 | 939 | 1.56 | 1.56 | 3.41 | 1.55 | 1.55 | 3.42 | 13 | ||||||||||||||||||||||||||
| 15.85 | 1,302 | 1.57 | 1.57 | 4.09 | 1.57 | 1.57 | 4.09 | 20 | ||||||||||||||||||||||||||
| .19 | 1,960 | 1.56 | 1.56 | 4.00 | 1.56 | 1.56 | 4.00 | 18 | ||||||||||||||||||||||||||
| 13.75 | 3,276 | 1.61 | 1.60 | 4.13 | 1.61 | 1.60 | 4.13 | 14 | ||||||||||||||||||||||||||
| (1.99 | ) | 4,337 | 1.65 | 1.60 | 3.87 | 1.65 | 1.60 | 3.87 | 40 | |||||||||||||||||||||||||
| (6.66 | ) | 64,243 | 1.33 | * | 1.33 | * | 3.50 | * | 1.33 | * | 1.33 | * | 3.50 | * | 27 | |||||||||||||||||||
| 8.09 | 73,860 | 1.35 | 1.35 | 3.58 | 1.35 | 1.35 | 3.58 | 13 | ||||||||||||||||||||||||||
| 16.10 | 40,317 | 1.37 | 1.37 | 4.25 | 1.37 | 1.37 | 4.25 | 20 | ||||||||||||||||||||||||||
| .39 | 26,338 | 1.36 | 1.36 | 4.21 | 1.36 | 1.36 | 4.21 | 18 | ||||||||||||||||||||||||||
| 14.00 | 25,552 | 1.41 | 1.40 | 4.31 | 1.41 | 1.40 | 4.31 | 14 | ||||||||||||||||||||||||||
| (1.80 | ) | 20,484 | 1.45 | 1.40 | 4.10 | 1.45 | 1.40 | 4.10 | 40 | |||||||||||||||||||||||||
| (6.21 | ) | 324,805 | .58 | * | .58 | * | 4.25 | * | .58 | * | .58 | * | 4.25 | * | 27 | |||||||||||||||||||
| 8.86 | 366,603 | .60 | .60 | 4.34 | .60 | .60 | 4.35 | 13 | ||||||||||||||||||||||||||
| 16.91 | 158,186 | .62 | .62 | 5.02 | .62 | .62 | 5.02 | 20 | ||||||||||||||||||||||||||
| 1.23 | 132,344 | .61 | .61 | 4.96 | .61 | .61 | 4.96 | 18 | ||||||||||||||||||||||||||
| 14.80 | 144,962 | .66 | .65 | 5.07 | .66 | .65 | 5.07 | 14 | ||||||||||||||||||||||||||
| (1.02 | ) | 151,650 | .70 | .65 | 4.87 | .70 | .65 | 4.87 | 40 | |||||||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in net asset value without any sales charge, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. |
| (c) | After fee waiver and/or expense reimbursement from the Adviser, where applicable. |
| (d) | The expense ratios reflect, among other things, the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Note 3 – Portfolio Securities and Investments in Derivatives, Inverse Floating Rate Securities. |
| (e) | Portfolio Turnover Rate is calculated based on the lesser of long-term purchases or sales (as disclosed in Note 5 – Investment Transactions) divided by the average long-term market value during the period. |
| (f) | For the six months ended August 31, 2013. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 55 |
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
General Information
The Nuveen Multistate Trust II (the “Trust”) is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of Nuveen California High Yield Municipal Bond Fund (“California High Yield”) and Nuveen California Municipal Bond Fund (“California”) (each a “Fund” and collectively the “Funds”), as diversified funds, among others. The Trust was organized as a Massachusetts business trust on July 1, 1996. California was organized as a series of predecessor trusts or corporations prior to that date.
The Funds’ investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a wholly-owned subsidiary of Nuveen Investments, Inc. (“Nuveen”). The Adviser is responsible for each Fund’s overall investment strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with Nuveen Asset Management, LLC (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds.
California High Yield’s investment objective is to provide high current income exempt from regular federal, California state and, in some cases, California local income taxes. Total return is a secondary objective when consistent with the Fund’s primary objective. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in municipal bonds that pay interest that is exempt from regular federal and California personal income tax. These municipal bonds include obligations issued by the State of California and its subdivisions, authorities, instrumentalities and corporations, as well as obligations issued by U.S. territories (such as Puerto Rico, the U.S. Virgin Islands and Guam) that pay interest that is exempt from regular federal and California personal income tax. The Fund may invest without limit in securities that generate income subject to the alternative minimum tax. The Fund is a long-term bond fund and, as such, will generally maintain, under normal market conditions, an investment portfolio with an overall weighted average maturity of greater than 10 years. The Fund invests significantly in lower-quality long-term municipal bonds and may employ effective leverage through investments in inverse floaters. These investment strategies should be considered high risk relative to strategies employed by investment grade municipal bond funds. Under normal market conditions, the Fund invests at least 65% of its net assets in low-to medium-quality bonds rated BBB/Baa or lower by at least one independent rating agency or, if unrated, judged by the Sub-Adviser to be of comparable quality. Below investment grade municipal bonds (those rated BB/Ba or lower) are commonly referred to as “high yield” or “junk” bonds. The Fund may invest up to 10% of its net assets in defaulted municipal bonds (i.e., bonds on which the issuer has not paid principal or interest on time).
California’s investment objective is to provide as high a level of current interest income exempt from regular federal, California state and, in some cases, California local income taxes as is consistent with preservation of capital. Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in municipal bonds that pay interest that is exempt from regular federal and California personal income tax. These municipal bonds include obligations issued by the State of California and its subdivisions, authorities, instrumentalities and corporations, as well as obligations issued by U.S. territories (such as Puerto Rico, the U.S. Virgin Islands and Guam) that pay interest that is exempt from regular federal and California personal income tax. The Fund may invest without limit in securities that generate income subject to the alternative minimum tax. The Fund is a long-term bond fund and, as such, will generally maintain, under normal market conditions, an investment portfolio with an overall weighted average maturity of greater than 10 years. Under normal market conditions, the Fund invests at least 80% of its net assets in investment grade municipal bonds rated BBB/Baa or higher at the time of purchase by at least one independent rating agency, or, if unrated, judged by the Sub-Adviser to be of comparable quality. The Fund may invest up to 20% of its net assets in below investment grade municipal bonds, commonly referred to as “high yield” or “junk” bonds.
The Funds may invest up to 15% of its net assets in municipal securities whose interest payments vary inversely with changes in short-term tax-exempt interest rates (“inverse floaters”). Inverse floaters are derivative securities that provide leveraged exposure to underlying municipal bonds. Each Fund’s investments in inverse floaters are designed to increase the Funds’ income and returns through this leveraged exposure. These investments are speculative, however, and also create the possibility that income and returns will be diminished. California High Yield may invest in inverse floaters that create effective leverage of up to 30% of the Fund’s total investment exposure. The Funds may invest in all types of municipal bonds, including general obligation bonds, revenue bonds and participation interests in municipal leases. The Funds may invest in zero coupon bonds, which are issued at substantial discounts from their value at maturity and pay no cash income to their holders until they mature. The Funds may utilize futures contracts, swap contracts, options on futures contracts and options on swap contracts in an attempt to manage market risk, credit risk and yield curve risk, and to manage the effective maturity or duration of securities in each Fund’s portfolio.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).
| 56 | Nuveen Investments |
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis used for federal income tax purposes. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to earmark securities in the Funds’ portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. As of August 31, 2013, outstanding when-issued/delayed delivery purchase commitments were as follows:
| California High Yield | California | |||||||
Outstanding when-issued/delayed delivery purchase commitments | $ | — | $ | 2,895,745 | ||||
Investment Income
Investment income, which reflects the amortization of premiums and includes accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders. Should a Fund receive a refund of workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement Operations.
Dividends and Distributions to Shareholders
The Funds declare dividends from their net investment income daily and pay shareholders monthly. Fund shares begin to accrue dividends on the business day after the day when the monies used to purchase Fund shares are collected by the Funds’ transfer agent.
Net realized capital gains and/or market discount from investment transactions, if any, are declared and distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards.
Distributions to shareholders of net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.
Share Classes and Sales Charges
Class A Shares are generally sold with an up-front sales charge and incur a .20% annual 12b-1 service fee. Class A Share purchases of $1 million or more are sold at net asset value without an up-front sales charge but may be subject to a contingent deferred sales charge (“CDSC”) if redeemed within eighteen months of purchase. California will issue Class B Shares upon the exchange of Class B Shares from another Nuveen mutual fund or for purposes of dividend reinvestment, but Class B Shares are not available for new accounts or for additional investment into existing accounts. Class B Shares were sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. Class B Shares are subject to a CDSC of up to 5% depending upon the length of time the shares are held by the investor (CDSC is reduced to 0% at the end of six years). Class B Shares automatically convert to Class A Shares eight years after purchase. Class C Shares are sold without an up-front sales charge but incur a .55% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. Class C Shares are subject to a CDSC of 1% if redeemed within twelve months of purchase. Class I Shares are not subject to any sales charge or 12b-1 distribution or service fees.
Multiclass Operations and Allocations
Income and expenses of the Funds that are not directly attributable to a specific class of shares are prorated among the classes based on the relative settled shares of each class. Expenses directly attributable to a class of shares, which presently only include 12b-1 distribution and service fees, are recorded to the specific class.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Indemnifications
Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Netting Agreements
In the ordinary course of business, the Funds have entered into transactions subject to enforceable master repurchase agreements, International Swaps and Derivative Association, Inc. (“ISDA”) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset any exposure to a specific counterparty
| Nuveen Investments | 57 |
Notes to Financial Statements (Unaudited) (continued)
with any collateral received or delivered to that counterparty based on the terms of the agreements. Generally, a Fund manages its cash collateral and securities collateral on a counterparty basis. As of August 31, 2013, California High Yield was not invested in any portfolio securities or derivatives, other than the swap contracts further described in Note 3 – Portfolio Securities and Investments in Derivatives, Swap Contracts that are subject to netting agreements. As of August 31, 2013, California was not invested in any portfolio securities or derivatives that are subject to netting agreements.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
Investment Valuation
Prices of municipal bonds and forward swaps are provided by a pricing service approved by the Funds’ Board of Trustees. These securities are generally classified as Level 2 for fair value measurement purposes. The pricing service establishes a security’s fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.
Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Trustees or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of a security would appear to be the amount that the owner might reasonably expect to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Trustees or its designee.
Fair Value Measurements
Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
| Level 1 – | Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities. | |
| Level 2 – | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 – | Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments). |
| 58 | Nuveen Investments |
The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of each Fund’s fair value measurements as of the end of the reporting period:
| California High Yield | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 267,487,626 | $ | — | $ | 267,487,626 | ||||||||
Derivatives: | ||||||||||||||||
Forward Swaps** | — | 970,165 | — | 970,165 | ||||||||||||
Total | $ | — | $ | 268,457,791 | $ | — | $ | 268,457,791 | ||||||||
| California | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 653,064,194 | $ | — | $ | 653,064,194 | ||||||||
| * | Refer to the Fund’s Portfolio of Investments for industry classification. |
| ** | Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments. |
The Nuveen funds’ Board of Directors/Trustees is responsible for the valuation process and has delegated the oversight of the daily valuation process to the Adviser’s Valuation Committee. The Valuation Committee, pursuant to the valuation policies and procedures adopted by the Board of Directors/Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the funds’ pricing policies, and reporting to the Board of Directors/Trustees. The Valuation Committee is aided in its efforts by the Adviser’s dedicated Securities Valuation Team, which is responsible for administering the daily valuation process and applying fair value methodologies as approved by the Valuation Committee. When determining the reliability of independent pricing services for investments owned by the funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing services and monitors the quality of security prices received through various testing reports conducted by the Securities Valuation Team.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making a fair value determination, based on the facts and circumstances specific to the portfolio instrument. Fair value determinations generally will be derived as follows, using public or private market information:
| (i) | If available, fair value determinations shall be derived by extrapolating from recent transactions or quoted prices for identical or comparable securities. |
| (ii) | If such information is not available, an analytical valuation methodology may be used based on other available information including, but not limited to: analyst appraisals, research reports, corporate action information, issuer financial statements and shelf registration statements. Such analytical valuation methodologies may include, but are not limited to: multiple of earnings, discount from market value of a similar freely-traded security, discounted cash flow analysis, book value or a multiple thereof, risk premium/yield analysis, yield to maturity and/or fundamental investment analysis. |
The purchase price of a portfolio instrument will be used to fair value the instrument only if no other valuation methodology is available or deemed appropriate, and it is determined that the purchase price fairly reflects the instrument’s current value.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors/Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such testing and fair valuation occurrences are reported to the Board of Directors/Trustees.
3. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond’s par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an “inverse floater”) that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond’s downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond’s value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an “externally-deposited inverse floater”), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a “self-deposited inverse floater”). The
| Nuveen Investments | 59 |
Notes to Financial Statements (Unaudited) (continued)
inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund accounting for the short-term floating rate certificates issued by the trust, at their liquidation value, as “Floating rate obligations” on the Statement of Assets and Liabilities. In addition, the Fund reflects in “Investment Income” the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as a component of “Interest expense” on the Statement of Operations.
During the six months ended August 31, 2013, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements referred to herein as “Recourse Trusts”) with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund’s inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
As of August 31, 2013, each Fund’s maximum exposure to the floating rate obligations issued by externally-deposited Recourse Trusts were as follows:
California High Yield | California | |||||||
Maximum exposure to Recourse Trusts | $ | 33,315,000 | $ | 8,340,000 | ||||
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters for the following Fund during the six months ended August 31, 2013, were as follows:
| California High Yield | ||||
Average floating rate obligations outstanding | $ | 915,000 | ||
Average annual interest rate and fees | 0.62 | % | ||
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investment in Derivatives
The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.
Swap Contracts
Forward interest rate swap transactions involve a Fund’s agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying a Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond’s maturity). The value of a Fund’s swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap’s termination date increases or decreases. Forward interest rate swap contracts are valued daily. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on forward swaps (, net)” with the change during the fiscal period recognized on the Statement of Operations as a component of “Change in net unrealized appreciation (depreciation) of forward swaps.”
A Fund may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Net realized gains and losses during the fiscal period are recognized on the Statement of Operations as a component of “Net realized gain (loss) from forward swaps.” A Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination.
| 60 | Nuveen Investments |
During the six months ended August 31, 2013, California High Yield continued to invest in forward interest rate swap contracts to shorten the duration of the Fund’s portfolio and to reduce sensitivity to movements in U.S. interest rates.
The average notional amount of forward interest rate swap contracts outstanding during the six months ended August 31, 2013, was as follows:
| California High Yield | ||||
Average notional amount of forward interest rate swap contracts outstanding* | $ | 4,600,000 | ||
| * | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year. |
The following table presents the fair value of all swap contracts held by California High Yield as of August 31, 2013, the location of these instruments on the Statement of Assets and Liabilities and the primary underlying risk exposure.
Location on the Statement of Assets and Liabilities | ||||||||||||||
Underlying Risk Exposure | Derivative Instrument | Asset Derivatives | (Liability) Derivatives | |||||||||||
| Location | Value | Location | Value | |||||||||||
Interest rate | Swaps | Unrealized appreciation on forward swaps | $ | 970,165 | — | $ | — | |||||||
The following table presents the swap contracts, which are subject to netting agreements, as well as collateral delivered to those swap contracts.
| Fund | Counterparty | Gross Unrealized Appreciation on Swaps* | Amounts Netted on Statement of Assets and Liabilities | Net Unrealized Appreciation on Swaps | Collateral Pledged to (from) Counterparty | Net Exposure | ||||||||||||||||
California High Yield | Barclays Bank PLC | $ | 970,165 | $ | — | $ | 970,165 | $ | (970,165 | ) | $ | — | ||||||||||
| * | Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund’s Portfolio of Investments. |
The following table presents the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized on swap contracts during the six month ended August 31, 2013, and the primary risk exposure.
| Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) | ||||||||||||
California High Yield | Interest Rate | Swaps | $ | — | $ | 560,944 | ||||||||||
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
| Nuveen Investments | 61 |
Notes to Financial Statements (Unaudited) (continued)
4. Fund Shares
Transactions in Fund shares were as follows:
| California High Yield | ||||||||||||||||
| Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold: | ||||||||||||||||
Class A | 7,144,047 | $ | 62,755,203 | 15,386,519 | $ | 139,674,521 | ||||||||||
Class C | 917,920 | 8,256,733 | 3,376,088 | 30,371,421 | ||||||||||||
Class I | 3,648,344 | 33,115,232 | 6,224,360 | 56,255,528 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 377,957 | 3,295,935 | 452,655 | 4,092,596 | ||||||||||||
Class C | 107,766 | 935,270 | 165,313 | 1,488,649 | ||||||||||||
Class I | 178,729 | 1,562,270 | 292,408 | 2,628,780 | ||||||||||||
| 12,374,763 | 109,920,643 | 25,897,343 | 234,511,495 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (10,545,859 | ) | (90,060,745 | ) | (3,923,408 | ) | (35,651,779 | ) | ||||||||
Class C | (1,084,840 | ) | (9,388,222 | ) | (677,749 | ) | (6,112,678 | ) | ||||||||
Class I | (5,113,497 | ) | (44,121,127 | ) | (2,337,497 | ) | (21,176,821 | ) | ||||||||
| (16,744,196 | ) | (143,570,094 | ) | (6,938,654 | ) | (62,941,278 | ) | |||||||||
Net increase (decrease) | (4,369,433 | ) | $ | (33,649,451 | ) | 18,958,689 | $ | 171,570,217 | ||||||||
| California | ||||||||||||||||
| Six Months Ended 8/31/13 | Year Ended 2/28/13 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares issued in the reorganizations: | ||||||||||||||||
Class A | — | $ | — | 8,288,342 | $ | 87,094,810 | ||||||||||
Class B | — | — | 49,760 | 522,187 | ||||||||||||
Class C | — | — | 1,237,442 | 12,960,367 | ||||||||||||
Class I | — | — | 16,364,973 | 171,747,266 | ||||||||||||
Shares sold: | ||||||||||||||||
Class A | 7,767,321 | 80,744,222 | 6,273,575 | 67,875,631 | ||||||||||||
Class A – automatic conversion of Class B Shares | 12,845 | 139,974 | 49,167 | 530,525 | ||||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | 870,625 | 9,374,913 | 2,171,805 | 23,372,639 | ||||||||||||
Class I | 2,749,742 | 29,617,296 | 6,965,996 | 75,553,964 | ||||||||||||
Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 432,734 | 4,564,570 | 672,170 | 7,291,211 | ||||||||||||
Class B | 1,122 | 11,862 | 3,034 | 32,688 | ||||||||||||
Class C | 80,584 | 849,029 | 124,796 | 1,346,293 | ||||||||||||
Class I | 396,065 | 4,182,704 | 765,369 | 8,268,486 | ||||||||||||
| 12,311,038 | 129,484,570 | 42,966,429 | 456,596,067 | |||||||||||||
Shares redeemed: | ||||||||||||||||
Class A | (6,421,285 | ) | (67,171,603 | ) | (3,865,800 | ) | (41,787,101 | ) | ||||||||
Class B | (13,026 | ) | (132,940 | ) | (41,573 | ) | (447,356 | ) | ||||||||
Class B – automatic conversion to Class A Shares | (12,860 | ) | (139,974 | ) | (49,231 | ) | (530,525 | ) | ||||||||
Class C | (1,300,044 | ) | (13,530,733 | ) | (619,251 | ) | (6,691,753 | ) | ||||||||
Class I | (4,287,989 | ) | (44,895,332 | ) | (5,683,929 | ) | (61,610,506 | ) | ||||||||
| (12,035,204 | ) | (125,870,582 | ) | (10,259,784 | ) | (111,067,241 | ) | |||||||||
Net increase (decrease) | 275,834 | $ | 3,613,988 | 32,706,645 | $ | 345,528,826 | ||||||||||
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions, where applicable) during the six months ended August 31, 2013, were as follows:
| California High Yield | California | |||||||
Purchases | $ | 56,722,173 | $ | 189,548,935 | ||||
Sales and maturities | 82,702,383 | 190,658,302 | ||||||
| 62 | Nuveen Investments |
6. Income Tax Information
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.
As of August 31, 2013, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives, where applicable), as determined on a federal income tax basis, were as follows:
| California High Yield | California | |||||||
Cost of investments | $ | 286,636,067 | $ | 649,695,562 | ||||
Gross unrealized: | ||||||||
Appreciation | $ | 7,548,585 | $ | 18,059,657 | ||||
Depreciation | (27,612,026 | ) | (14,691,025 | ) | ||||
Net unrealized appreciation (depreciation) of investments | $ | (20,063,441 | ) | $ | 3,368,632 | |||
Permanent differences, primarily due to federal taxes paid, nondeductible reorganization expenses, reorganization adjustments and taxable market discount, resulted in reclassifications among the Funds’ components of net assets as of February 28, 2013, the Funds’ last tax year end, as follows:
| California High Yield | California | |||||||
Capital paid-in | $ | (1,391 | ) | $ | 636,581 | |||
Undistributed (Over-distribution of) net investment income | (6,874 | ) | 349,027 | |||||
Accumulated net realized gain (loss) | 8,265 | (985,608 | ) | |||||
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of February 28, 2013, the Funds’ last tax year end, were as follows:
| California High Yield | California | |||||||
Undistributed net tax-exempt income1 | $ | 526,246 | $ | 3,238,551 | ||||
Undistributed net ordinary income2 | 7,756 | — | ||||||
Undistributed net long-term capital gains | — | — | ||||||
| 1 | Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividends declared during the period February 1, 2013, through February 28, 2013, and paid on March 1, 2013. |
| 2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
The tax character of distributions paid during the Funds’ last tax year ended February 28, 2013 was designated for purposes of the dividends paid deduction as follows:
| California High Yield | California | |||||||
Distributions from net tax-exempt income | $ | 12,013,205 | $ | 25,467,572 | ||||
Distributions from net ordinary income2 | 76,306 | 93,336 | ||||||
Distributions from net long-term capital gains | — | — | ||||||
| 2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
| Nuveen Investments | 63 |
Notes to Financial Statements (Unaudited) (continued)
As of February 28, 2013, the Funds’ last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration retain the character reflected and will be utilized first by a Fund, while the losses subject to expiration are considered short-term.
| California High Yield | California* | |||||||
Expiration: | ||||||||
February 29, 2016 | $ | 320,899 | $ | — | ||||
February 28, 2017 | 3,792,828 | 3,555,020 | ||||||
February 28, 2018 | 2,097,482 | 4,974,035 | ||||||
Not subject to expiration: | ||||||||
Short-term losses | 870,317 | — | ||||||
Long-term losses | 1,762,974 | — | ||||||
Total | $ | 8,844,500 | $ | 8,529,055 | ||||
| * | A portion of California’s capital loss carryforward is subject to an annual limitation under the Internal Revenue Code and related regulations. |
During the Funds’ last tax year ended February 28, 2013, the Funds utilized capital loss carryforwards as follows:
| California High Yield | California | |||||||
Utilized capital loss carryforwards | $ | 195,788 | $ | 2,051,927 | ||||
7. Management Fees and Other Transactions with Affiliates
Each Fund’s management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.
Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables each Fund’s shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Average Daily Net Assets | California High Yield | California | ||||||
For the first $125 million | .4000 | % | .3500 | % | ||||
For the next $125 million | .3875 | .3375 | ||||||
For the next $250 million | .3750 | .3250 | ||||||
For the next $500 million | .3625 | .3125 | ||||||
For the next $1 billion | .3500 | .3000 | ||||||
For net assets over $2 billion | .3250 | .2750 | ||||||
For net assets over $5 billion | N/A | .2500 | ||||||
| 64 | Nuveen Investments |
The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level | |||
$55 billion | .2000 | % | ||
$56 billion | .1996 | |||
$57 billion | .1989 | |||
$60 billion | .1961 | |||
$63 billion | .1931 | |||
$66 billion | .1900 | |||
$71 billion | .1851 | |||
$76 billion | .1806 | |||
$80 billion | .1773 | |||
$91 billion | .1691 | |||
$125 billion | .1599 | |||
$200 billion | .1505 | |||
$250 billion | .1469 | |||
$300 billion | .1445 | |||
| * | The complex-level fee is calculated based upon the aggregate daily “eligible assets” of all Nuveen Funds. Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. Eligible assets include closed-end fund assets managed by the Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the closed-end funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining eligible assets in certain circumstances. As of August 31, 2013, the complex-level fee rate for California High Yield and California was ..1694% and .1734%, respectively. |
The Adviser has contractually agreed to waive fees and/or reimburse expenses (“Expense Cap”) of each Fund, so that total annual Fund operating expenses (excluding 12b-1 distribution and/or service fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of portfolio securities, and extraordinary expenses) do not exceed the average daily net assets of any class of Fund shares in the amounts and for the time periods stated in the following table.
| Fund | Temporary Expense Cap | Temporary Expense Cap Expiration Date | Permanent Expense Cap | |||||||||
California High Yield | 0.700 | % | July 31, 2013 | 1.000 | % | |||||||
California | N/A | N/A | 0.750 | |||||||||
| N/A | – Not applicable. |
The Adviser may also voluntarily reimburse additional expenses from time to time in any of the Funds. Voluntary reimbursements may be terminated at any time at the Adviser’s discretion.
The Trust pays no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Trust from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen-advised funds.
During the six months ended August 31, 2013, Nuveen Securities, LLC (the “Distributor”), a wholly-owned subsidiary of Nuveen, collected sales charges on purchases of Class A Shares, the majority of which were paid out as concessions to financial intermediaries as follows:
California High Yield | California | |||||||
Sales charges collected | $ | 372,313 | $ | 248,541 | ||||
Paid to financial intermediaries | 342,650 | 213,839 | ||||||
The Distributor also received 12b-1 service fees on Class A Shares, substantially all of which were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
During the six months ended August 31, 2013, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
California High Yield | California | |||||||
Commission advances | $ | 270,246 | $ | 119,472 | ||||
| Nuveen Investments | 65 |
Notes to Financial Statements (Unaudited) (continued)
To compensate for commissions advanced to financial intermediaries, all 12b-1 service fees collected on Class B Shares during the first year following a purchase, all 12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and distribution fees collected on Class C Shares during the first year following a purchase are retained by the Distributor. During the six months ended August 31, 2013, the Distributor retained such 12b-1 fees as follows:
California High Yield | California | |||||||
12b-1 fees retained | $ | 111,363 | $ | 95,586 | ||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the six months ended August 31, 2013, as follows:
California High Yield | California | |||||||
CDSC retained | $ | 92,228 | $ | 33,365 | ||||
8. Subsequent Events
Effective at the close of business on October 28, 2013, all remaining Class B Shares of California will convert to Class A Shares. Therefore, Class B Shares of the Fund will no longer be available through an exchange from other Nuveen mutual funds after that date.
| 66 | Nuveen Investments |
Annual Investment Management Agreement Approval Process
(Unaudited)
The Board of Trustees (each, a “Board” and each Trustee, a “Board Member”) of the Funds, including the Board Members who are not parties to the Funds’ advisory or sub-advisory agreements or “interested persons” of any such parties (the “Independent Board Members”), is responsible for approving the advisory agreements (each, an “Investment Management Agreement”) between each Fund and Nuveen Fund Advisors, LLC (the “Adviser”) and the sub-advisory agreements (each, a “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”) (the Investment Management Agreements and the Sub-Advisory Agreements are referred to collectively as the “Advisory Agreements”) and their periodic continuation. Pursuant to the Investment Company Act of 1940, as amended (the “1940 Act”), the Board is required to consider the continuation of the Advisory Agreements on an annual basis. Accordingly, at an in-person meeting held on May 20-22, 2013 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the continuation of the Advisory Agreements for the Funds for an additional one-year period.
In preparation for its considerations at the May Meeting, the Board requested and received extensive materials prepared in connection with the review of the Advisory Agreements. The materials provided a broad range of information regarding the Funds, the Adviser and the Sub-Adviser (the Adviser and the Sub-Adviser are collectively, the “Fund Advisers” and each, a “Fund Adviser”). As described in more detail below, the information provided included, among other things, a review of Fund performance, including Fund investment performance assessments against peer groups and appropriate benchmarks; a comparison of Fund fees and expenses relative to peers; a description and assessment of shareholder service levels for the Funds; a summary of the performance of certain service providers; a review of product initiatives and shareholder communications; and an analysis of the Adviser’s profitability with comparisons to comparable peers in the managed fund business. As part of its annual review, the Board also held a separate meeting on April 17-18, 2013, to review the Funds’ investment performance and consider an analysis provided by the Adviser of the Sub-Adviser which generally evaluated the Sub-Adviser’s investment team, investment mandate, organizational structure and history, investment philosophy and process, performance of the applicable Fund, and significant changes to the foregoing. As a result of its review of the materials and discussions, the Board presented the Adviser with questions and the Adviser responded.
The materials and information prepared in connection with the annual review of the Advisory Agreements supplement the information and analysis provided to the Board during the year. In this regard, throughout the year, the Board, acting directly or through its committees, regularly reviews the performance and various services provided by the Adviser and the Sub-Adviser. The Board meets at least quarterly as well as at other times as the need arises. At its quarterly meetings, the Board reviews reports by the Adviser regarding, among other things, fund performance, fund expenses, the performance of the investment teams, and compliance, regulatory and risk management matters. In addition to regular reports, the Adviser provides special reports to the Board or a committee thereof from time to time to enhance the Board’s understanding of various topics that impact some or all the Nuveen funds (such as accounting and financial statement presentations of the various forms of leverage that may be used by a closed-end fund or an update on the valuation policies and procedures), to update the Board on regulatory developments impacting the investment company industry or to update the Board on the business plans or other matters impacting the Adviser. The Board also meets with key investment personnel managing the fund portfolios during the year. In October 2011, the Board also created two standing committees (the Open-End Fund Committee and the Closed-End Fund Committee) to assist the full Board in monitoring and gaining a deeper insight into the distinctive business practices of open-end and closed-end funds. These Committees meet prior to each quarterly Board meeting, and the Adviser provides presentations to these Committees permitting them to delve further into specific matters or initiatives impacting the respective product line.
In addition, the Board continues its program of seeking to have the Board Members or a subset thereof visit each sub-adviser to the Nuveen funds at least once over a multiple year rotation, meeting with key investment and business personnel. In this regard, the Independent Board Members visited certain of the Sub-Adviser’s investment teams in Minneapolis in September 2012, and the Sub-Adviser’s municipal team in November 2012. In addition, the ad hoc Securities Lending Committee of the Board met with certain service providers and the Audit Committee of the Board made a site visit to three pricing service providers.
The Board considers the information provided and knowledge gained at these meetings and visits during the year when performing its annual review of the Advisory Agreements. The Independent Board Members also are assisted throughout the process by independent legal counsel. Counsel provided materials describing applicable law and the duties of directors or trustees in reviewing advisory contracts. During the course of the year and during their deliberations regarding the review of advisory contracts, the Independent Board Members met with independent legal counsel in executive sessions without management present. In addition, it is important to recognize that the management arrangements for the Nuveen funds are the result of many years of review and discussion between the Independent Board Members and fund management and that the Board Members’ conclusions may be based, in part, on their consideration of fee arrangements and other factors developed in previous years.
The Board considered all factors it believed relevant with respect to each Fund, including among other factors: (a) the nature, extent and quality of the services provided by the Fund Advisers, (b) the investment performance of the Fund and Fund Advisers, (c) the advisory fees and costs of the services to be provided to the Fund and the profitability of the Fund Advisers, (d) the extent of any economies of scale, (e) any benefits derived by the Fund Advisers from the relationship with the Fund and (f) other factors. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund’s Advisory Agreements. The Independent Board Members did not identify any single factor as all important or controlling. The Independent Board Members’ considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below.
| Nuveen Investments | 67 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
A. Nature, Extent and Quality of Services
In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of the Fund Adviser’s services, including advisory services and the resulting Fund performance and administrative services. The Independent Board Members further considered the overall reputation and capabilities of the Adviser and its affiliates, the commitment of the Adviser to provide high quality service to the Funds, their overall confidence in the capability and integrity of the Adviser and its staff and the Adviser’s responsiveness to questions and concerns raised by them. The Independent Board Members reviewed materials outlining, among other things, the Fund Adviser’s organization and business; the types of services that the Fund Adviser or its affiliates provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any applicable initiatives Nuveen had taken for the open-end fund product line.
In considering advisory services, the Board recognized that the Adviser provides various oversight, administrative, compliance and other services for the Funds and the Sub-Adviser generally provides the portfolio investment management services to the Funds. In reviewing the portfolio management services provided to each Fund, the Board reviewed the materials provided by the Nuveen Investment Services Oversight Team analyzing, among other things, the Sub-Adviser’s investment team and changes thereto, organization and history, assets under management, the investment team’s philosophy and strategies in managing the Fund, developments affecting the Sub-Adviser or Fund and Fund performance. The Independent Board Members also reviewed portfolio manager compensation arrangements to evaluate each Fund Adviser’s ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an inappropriate incentive to take undue risks. In addition, the Board considered the Adviser’s execution of its oversight responsibilities over the Sub-Adviser. Given the importance of compliance, the Independent Board Members also considered Nuveen’s compliance program, including the report of the chief compliance officer regarding the Funds’ compliance policies and procedures; the resources dedicated to compliance; and the record of compliance with the policies and procedures. Given the Adviser’s emphasis on business risk, the Board also appointed an Independent Board Member as a point person to review and keep the Board apprised of developments in this area during the year.
In addition to advisory services, the Board considered the quality and extent of administrative and other non-investment advisory services the Adviser and its affiliates provide to the Funds, including product management, investment services (such as oversight of investment policies and procedures, risk management, and pricing), fund administration, oversight of service providers, shareholder services and communications, administration of Board relations, regulatory and portfolio compliance and legal support. The Board further recognized Nuveen’s additional investments in personnel, including in compliance and risk management.
In reviewing the services provided, the Board considered the new services and service enhancements that the Adviser has implemented since the various advisory agreements were last reviewed. In reviewing the activities of 2012, the Board recognized the Adviser’s focus on product rationalization for both closed-end and open-end funds during the year, consolidating certain Nuveen funds through mergers that were designed to improve efficiencies and economies of scale for shareholders, repositioning various Nuveen funds through updates in their investment policies and guidelines with the expectation of bringing greater value to shareholders, and liquidating certain Nuveen funds. The Board recognized the Adviser’s significant investment in technology initiatives to, among other things, create a central repository for fund and other Nuveen product data, develop a group within the Adviser designed to handle and analyze fund performance data, and implement a data system to support the risk oversight group. The Board also recognized the enhancements in the valuation group within the Adviser, including upgrading the team and process and automating certain basic systems, and in the compliance group with the addition of personnel, particularly within the testing group. With the advent of the Open-End Fund Committee and Closed-End Fund Committee, the Board also noted the enhanced support and comprehensive in-depth presentations provided by the Adviser to these committees.
In addition to the foregoing actions, the Board also considered other initiatives related to the open-end Nuveen funds including, among other things, the development of a comprehensive strategic plan and the addition of members to the product strategy team; the commencement of various new funds; the removal of redemption fees for certain funds; the establishment of a working group to enhance the Adviser’s oversight of the disclosures pertaining to Nuveen’s products and services; the acceleration of monthly holdings disclosure for certain funds; and the development of a new share class for certain funds.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board, including the Independent Board Members, considered the performance history of each Fund over various time periods. The Board reviewed reports, including an analysis of the Funds’ performance and the applicable investment team. In general, in considering a fund’s performance, the Board recognized that a fund’s performance can be reviewed through various measures including the fund’s absolute return, the fund’s return compared to the performance of other peer funds, and the fund’s performance compared to its respective benchmark. Accordingly, the Board reviewed, among other things, each Fund’s historic investment performance as well as information comparing the Fund’s performance information with that of other funds (the “Performance Peer Group”) and with recognized and/or customized benchmarks (i.e., generally benchmarks derived from multiple recognized benchmarks) for the quarter, one-, three- and five-year periods ending December 31, 2012 as well as performance information reflecting the first quarter of 2013. This information supplemented the fund performance information provided to the Board at each of its quarterly meetings.
| 68 | Nuveen Investments |
In evaluating performance, the Board recognized several factors that may impact the performance data as well as the consideration given to particular performance data. The Board recognized that the performance data reflects a snapshot of time, in this case as of the end of the most recent calendar year or quarter. The Board noted that selecting a different performance period could derive significantly different results. Further, the Board recognized that it is possible that long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme has the ability to disproportionately affect long-term performance. The Independent Board Members also noted that the investment experience of a particular shareholder in the Nuveen funds will vary depending on when such shareholder invests in the applicable fund, the class held (if multiple classes are offered in a fund) and the performance of the fund (or respective class) during that shareholder’s investment period.
With respect to the comparative performance information, the Board recognized that the usefulness of comparative performance data as a frame of reference to measure a fund’s performance may be limited because the Performance Peer Group, among other things, does not adequately reflect the objectives and strategies of the fund, has a different investable universe, or the composition of the peer set may be limited in size or number as well as other factors. In this regard, the Board noted that the Adviser classified, in relevant part, the Performance Peer Groups of certain funds as having significant differences from the funds but to still be somewhat relevant, while the Performance Peer Groups of other funds (including the Nuveen California High Yield Municipal Bond Fund (the “California High Yield Fund”)) were classified as having such significant differences as to be irrelevant. Accordingly, while the Board is cognizant of the relative performance of a fund’s peer set and/or benchmark(s), the Board evaluated fund performance in light of the respective fund’s investment objectives, investment parameters and guidelines and considered that the variations between the objectives and investment parameters or guidelines of the funds with their peers and/or benchmarks result in differences in performance results. The Board also noted that open-end funds offer multiple classes and the performance of the various classes of a fund should be substantially similar on a relative basis because all of the classes are invested in the same portfolio of securities and that differences in performance among classes could be principally attributed to the variations in distribution and servicing expenses of each class. In addition, with respect to any Nuveen funds for which the Board has identified performance concerns, the Board monitors such funds closely until performance improves, discusses with the Adviser the reasons for such results, considers those steps necessary or appropriate to address such issues, and reviews the results of any efforts undertaken.
In considering the performance data for the Funds, the Independent Board Members noted that the Nuveen California Municipal Bond Fund (the “California Fund”) had demonstrated generally favorable performance in comparison to peers, performing in the first quartile over various periods. As noted above, the Performance Peer Group of the California High Yield Fund was classified as irrelevant, thereby limiting the usefulness of the peer comparison data; therefore, the Board also considered such Fund’s performance compared to its benchmark and noted that it outperformed its benchmark for the one-, three- and five-year periods.
Based on their review, the Independent Board Members determined that each Fund’s investment performance had been satisfactory.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund’s gross management fees, net management fees and net expense ratio in absolute terms as well as compared to the fees and expenses of a comparable universe of funds provided by an independent fund data provider (the “Peer Universe”) and to a more focused subset of funds in the Peer Universe (the “Peer Group”) and any expense limitations.
The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the limited size and particular composition of the Peer Universe or Peer Group (including the inclusion of other Nuveen funds in the peer set); expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement or fee waivers; the timing of information used; and differences in the states reflected in the Peer Universe or Peer Group may impact the comparative data, thereby limiting somewhat the ability to make a meaningful comparison with peers.
In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen. In reviewing fees and expenses, the Board considered the expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were approximately 6 to 10 basis points higher, in line if they were within approximately 5 basis points higher than the peer average and below if they were below the peer average of the Peer Group. In reviewing the reports, the Board noted that the majority of the Nuveen funds were at, close to or below their Peer Group or Peer Universe (if no separate Peer Group) average based on the net total expense ratio.
The Independent Board Members noted that the California High Yield Fund had a net management fee that was slightly higher than its peer average, but a net expense ratio that was in line with its peer average, while the California Fund had a net management fee and net expense ratio (including fee waivers and expense reimbursements) that were in line with its peer averages.
| Nuveen Investments | 69 |
Annual Investment Management Agreement Approval Process
(Unaudited) (continued)
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees to a Fund Adviser were reasonable in light of the nature, extent and quality of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Board recognized that all Nuveen funds have a sub-adviser (which, in the case of the Funds, is an affiliated sub-adviser), and therefore, the overall fund management fee can be divided into two components, the fee retained by the Adviser and the fee paid to the sub-adviser. In general terms, the fee to the Adviser reflects the administrative services it provides to support the funds, and while some administrative services may occur at the sub-adviser level, the fee generally reflects the portfolio management services provided by the sub-adviser. The Independent Board Members reviewed information regarding the nature of services provided by the Adviser, including through the Sub-Adviser, and the range of fees and average fee the Sub-Adviser assessed for such services to other clients. Such other clients include municipal separately managed accounts and passively managed exchange traded funds (ETFs) sub-advised by the Adviser. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Many of the additional administrative services provided by the Adviser are not required for institutional clients. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees.
3. Profitability of Fund Advisers
In conjunction with their review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen’s advisory activities for the last two calendar years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2012. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they have an Independent Board Member serve as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen’s revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with comparable assets under management (based on asset size and asset composition).
In reviewing profitability, the Independent Board Members recognized the Adviser’s continued investment in its business to enhance its services, including capital improvements to investment technology, updated compliance systems, and additional personnel. In addition, in evaluating profitability, the Independent Board Members also recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses and that various allocation methodologies may each be reasonable but yield different results. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser’s particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen’s methodology and assumptions for allocating expenses across product lines to determine profitability. Based on their review, the Independent Board Members concluded that the Adviser’s level of profitability for its advisory activities was reasonable in light of the services provided.
With respect to sub-advisers affiliated with Nuveen, including the Sub-Adviser, the Independent Board Members reviewed the sub-adviser’s revenues, expenses and profitability margins (pre- and post-tax) for its advisory activities and the methodology used for allocating expenses among the internal sub-advisers. Based on their review, the Independent Board Members were satisfied that the Sub-Adviser’s level of profitability was reasonable in light of the services provided.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to a Fund Adviser by the Funds as well as indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision,
| 70 | Nuveen Investments |
particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase.
In addition to fund-level advisory fee breakpoints, the Board also considered the Funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen’s costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. In addition, with the acquisition of the funds previously advised by FAF Advisors, Inc. at the end of 2010, the Board noted that a portion of such funds’ assets at the time of acquisition were deemed eligible to be included in the complex-wide fee calculation in order to deliver fee savings to shareholders in the combined complex and such funds were subject to differing complex-level fee rates.
Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members received and considered information regarding potential “fall out” or ancillary benefits the respective Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered, among other things, any sales charges, distribution fees and shareholder services fees received and retained by the Funds’ principal underwriter, an affiliate of the Adviser, which includes fees received pursuant to any 12b-1 plan. The Independent Board Members, therefore, considered the 12b-1 fees retained by Nuveen during the last calendar year.
In addition to the above, the Independent Board Members considered whether the Fund Advisers received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to the Fund Adviser in managing the assets of the Funds and other clients. The Funds’ portfolio transactions are determined by the Sub-Adviser. Accordingly, the Independent Board Members considered that the Sub-Adviser may benefit from its soft dollar arrangements pursuant to which it receives research from brokers that execute the Funds’ portfolio transactions. With respect to fixed income securities, however, the Board recognized that such securities generally trade on a principal basis that does not generate soft dollar credits. Nevertheless, the Sub-Adviser may engage in soft dollar arrangements on behalf of other clients, and the Funds as well as the Sub-Adviser may benefit from the research or other services received. Similarly, the Board recognized that the research received pursuant to soft dollar arrangements by the Sub-Adviser may also benefit a Fund and shareholders to the extent the research enhances the ability of the Sub-Adviser to manage the Fund. The Independent Board Members noted that the Sub-Adviser’s profitability may be somewhat lower if it did not receive the research services pursuant to the soft dollar arrangements and had to acquire such services directly.
Based on their review, the Independent Board Members concluded that any indirect benefits received by a Fund Adviser as a result of its relationship with the Funds were reasonable and within acceptable parameters.
F. Other Considerations
The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of each Advisory Agreement are fair and reasonable, that the respective Fund Adviser’s fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
| Nuveen Investments | 71 |
Notes
| 72 | Nuveen Investments |
Notes
| Nuveen Investments | 73 |
Glossary of Terms Used in this Report
Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or offer price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s (or bond fund’s) value to changes when market interest rates change. Generally, the longer a bond or Fund’s duration, the more the price of the bond or Fund will change as interest rates change.
Effective Leverage (Effective Leverage Ratio): Effective leverage is investment exposure created either through borrowings or indirectly through inverse floaters, divided by the assets invested, including those assets that were purchased with the proceeds of the leverage, or referenced by the levered instrument.
Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.
Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis.
Leverage: Leverage is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital.
Lipper California Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper California Municipal Debt Funds Classification. Lipper returns account for the effects of management fees and assume reinvestment of distributions but do not reflect any applicable sales charges.
Net Asset Value (NAV): The net market value of all securities held in a portfolio.
Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a fund, the NAV is calculated daily by taking the fund’s total assets (securities, cash, and accrued earnings), subtracting the fund’s liabilities, and dividing by the number of shares outstanding.
Pre-Refundings: Pre-Refundings, also known as advance refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers.
S&P Municipal Bond California Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade California municipal bond market. Index returns assume reinvestment of distributions but do not reflect any applicable sales charges or management fees.
S&P Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P Municipal Yield Index: Comprises all of the bonds in the S&P Municipal Bond Index that are non-rated or rated BB+ by S&P and/or Ba1 or lower by Moody’s Investor Services, Inc. The index does not contain bonds that are pre-refunded or escrowed to maturity. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
Total Investment Exposure: Total investment exposure is a fund’s assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes a find’s use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities.
Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically.
| 74 | Nuveen Investments |
Fund Manager
Nuveen Fund Advisors, LLC
333 West Wacker Drive
Chicago, IL 60606
Sub-Adviser
Nuveen Asset Management, LLC
333 West Wacker Drive
Chicago, IL 60606
Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
Independent Registered
Public Accounting Firm
PricewaterhouseCoopers LLP
Chicago, IL 60606
Custodian
State Street Bank & Trust Company
Boston, MA 02111
Transfer Agent and Shareholder Services
Boston Financial
Data Services, Inc.
Nuveen Investor Services
P.O. Box 8530
Boston, MA 02266-8530
(800) 257-8787
Quarterly Form N-Q Portfolio of Investments Information
Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC toll-free at (800) SEC-0330 for room hours and operation.
Nuveen Funds’ Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
The Financial Industry Regulatory Authority (FINRA) provides a Public Disclosure Program which supplies certain information regarding the disciplinary history of FINRA members and their associated persons in response to either telephone inquiries at (800) 289-9999 or written inquiries at www.finra.org. FINRA also provides an investor brochure that includes information describing the Public Disclosure Program.
| Nuveen Investments | 75 |
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen Investments provides high-quality investment services designed to help secure the longterm goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates-Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management, and Gresham Investment Management. In total, Nuveen Investments managed approximately $216 billion as of June 30, 2013.
Find out how we can help you.
To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/mf
Distributed by Nuveen Securities, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com |
MSA-CA-0813P
Item 2. Code of Ethics.
Not applicable to this filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this registrant.
Item 6. Schedule of Investments.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to this registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to this registrant.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
Item 11. Controls and Procedures.
| (a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See EX-99.CERT attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable to this registrant.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an Exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registration specifically incorporates it by reference: See EX-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Multistate Trust II
| By | (Signature and Title) | /s/ Kevin J. McCarthy | ||||
Kevin J. McCarthy Vice President and Secretary |
Date: November 8, 2013
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By | (Signature and Title) | /s/ Gifford R. Zimmerman | ||||
Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) |
Date: November 8, 2013
| By | (Signature and Title) | /s/ Stephen D. Foy | ||||
Stephen D. Foy Vice President and Controller (principal financial officer) |
Date: November 8, 2013