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: February 28, 2014
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.
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| Mutual Funds |
Nuveen Municipal
Bond Funds |
| Dependable, tax-free income because it’s not what you earn, it’s what you keep.® |
| Annual Report February 28, 2014 |
| Share Class / Ticker Symbol | ||||||||||||||
| Fund Name | Class A | Class C | Class C2 | Class I | ||||||||||
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Nuveen Connecticut Municipal Bond Fund | FCTTX | FDCDX | FCTCX | FCTRX | ||||||||||
Nuveen Massachusetts Municipal Bond Fund | NMAAX | NAAGX | NMACX | NBMAX | ||||||||||
Nuveen New Jersey Municipal Bond Fund | NNJAX | NJCCX | NNJCX | NMNJX | ||||||||||
Nuveen New York Municipal Bond Fund | NNYAX | NAJPX | NNYCX | NTNYX | ||||||||||
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| NUVEEN INVESTMENTS TO BE ACQUIRED BY TIAA-CREF | ||||||||||||
On April 14, 2014, TIAA-CREF announced that it had entered into an agreement to acquire Nuveen Investments, the parent company of your fund’s investment adviser, Nuveen Fund Advisors, LLC (“NFAL”) and the Nuveen affiliates that act as sub-advisers to the majority of the Nuveen Funds. TIAA-CREF is a national financial services organization with approximately $569 billion in assets under management (as of March 31, 2014) and is a leading provider of retirement services in the academic, research, medical and cultural fields. Nuveen anticipates that it will operate as a separate subsidiary within TIAA-CREF’s asset management business, and that its current leadership and key investment teams will stay in place.
Your Fund investment will not change as a result of Nuveen’s change of ownership. You will still own the same Fund shares and the underlying value of those shares will not change as a result of the transaction. NFAL and your Fund’s sub-adviser(s) will continue to manage your Fund according to the same objectives and policies as before, and we do not anticipate any significant changes to your Fund’s operations. Under the securities laws, the consummation of the transaction will result in the automatic termination of the investment management agreements between the Funds and NFAL and the investment sub-advisory agreements between NFAL and each Fund’s sub-adviser(s). New agreements will be presented to the Funds’ shareholders for approval, and, if approved, will take effect upon consummation of the transaction or such later time as shareholder approval is obtained.
The transaction, expected to be completed by year end, is subject to customary closing conditions. | ||||||||||||
Must be preceded by or accompanied by a prospectus.
NOT FDIC INSURED MAY LOSE VALUE | ||||||||||||
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to Shareholders
Dear Shareholders,
Despite headwinds from slow growth, fiscal and political uncertainty in many countries and some fragile economies around the world, domestic and international equity markets increased significantly in 2013. The emerging markets equity sector was an exception. Other sectors, such as real estate, were flat to down a bit and commodities were notably negative in total return performance. The fixed income market also experienced losses in many sectors.
U.S. equities in particular hit numerous all-time highs during the past year, exceeding prior rising market trends. Europe and Asia struggled with political and financial stresses but Europe’s improving GDP in the second half provided hope that the region can exit recession. In Japan, the economic policies advocated by Prime Minister Shinzo Abe became a positive influence on the economy as deflationary pressures declined, while the economy in China started to stabilize due to monetary easing and supply side reforms. On the domestic front, the Federal Reserve stimulus continued throughout the year but discussion of reductions in the stimulus program caused historically low rates to rise and added to concern that interest rates could rise quickly in the near future. This provided challenges for fixed income investors.
The Federal Reserve’s decision to slow down its bond buying program beginning in December 2013, and the federal budget compromise over government spending into early 2015 were positive signs that the domestic economy is moving forward. We are beginning to experience an economy that can provide encouraging conditions for GDP growth, job growth and low inflation. Additionally, downward trending unemployment and a continuing rebound in the housing market adds to a positive economic scenario going forward.
However, the current year has experienced a tumultuous start. It is in these particularly volatile markets that professional investment management is most important. Investment teams who have experienced challenging markets in the past understand how their asset class can behave in rapidly changing times. Remaining committed to their investment disciplines during these times is a critical component to achieving long-term success. In fact, many strong investment track records are established during challenging periods because experienced investment teams understand that volatile markets place a premium on companies and investment ideas that can weather the short-term volatility. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
As always, I encourage you to communicate with your financial consultant if you have any questions about your investment in a Nuveen 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
April 22, 2014
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Comments
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 portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen Investments. Since 2011, Michael S. Hamilton has managed the Nuveen Connecticut Municipal Bond Fund and the Nuveen Massachusetts Municipal Bond Fund, Paul L. Brennan, CFA, has managed the Nuveen New Jersey Municipal Bond Fund and Scott R. Romans, PhD, has managed the Nuveen New York Municipal Bond Fund. Here they discuss U.S. economic and municipal market conditions at both the national and state levels, key investment strategies and the Funds’ performance during the twelve-month reporting period ended February 28, 2014.
What factors affected the U.S. economy, the national municipal bond market and the state municipal bond markets during the twelve-month reporting period ended February 28, 2014?
During this reporting period, the U.S. economy’s progress toward recovery from recession continued, although the economy remained below peak levels. The Federal Reserve (Fed) maintained its efforts to bolster growth and promote progress toward its mandates of maximum employment and price stability by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. Based on its view that the underlying strength in the broader economy was enough to support ongoing improvement in the labor market, the Fed began to reduce, or taper, its monthly asset purchases in $10 billion increments over the course of three consecutive meetings (December 2013, January 2014, and following the end of this reporting period, March 2014). As of April 2014, the Fed’s monthly purchases will comprise $25 billion in mortgage-backed securities (versus the original $40 billion per month) and $30 billion in longer term Treasury securities (versus $45 billion). Following the March 2014 meeting, the Fed also stated that it would now look at a wide range of factors, including inflation levels and job creation, in determining future actions and that it would likely maintain the current target range for the fed funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Fed’s 2% longer run goal.
In the fourth quarter of 2013, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.6%, bringing the annual GDP for 2013 to 1.9% and continuing the pattern of positive economic growth for the eleventh consecutive quarter. The Consumer Price Index (CPI) rose 1.1% year-over-year as of February 2014, while the core CPI (which excludes food and energy) increased 1.6% during the same period, staying within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. As of February 2014, the national unemployment rate was 6.7%, down from the 7.7% reported in February 2013. The housing market continued to post gains, as the average home price in the S&P/Case-Shiller Index of 20 major metropolitan areas rose 13.2% for the twelve months ended January 2014 (most recent data available at the time this report was prepared). This brought the average U.S. home price back to mid-2004 levels, although prices continued to be down approximately 20% from their mid-2006 peak.
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 (S&P), Moody’s Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). 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.
Bond insurance guarantees only the payment of principal and interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund. No representation is made as to the insurers’ ability to meet their commitments.
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Portfolio Managers’ Comments (continued)
As this reporting period began, continued political debate over federal spending clouded the outlook for the U.S. economy, as lawmakers failed to reach a resolution on spending cuts intended to address the federal budget deficit. This triggered a program of automatic spending cuts (or sequestration) that impacted federal programs beginning March 1, 2013. Although Congress later passed legislation that established federal funding levels for the remainder of Fiscal 2013, the federal budget for Fiscal 2014 remained under debate well into the new fiscal year. On October 1, 2013, the start date for Fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law, funding the government at sequestration levels through January 15, 2014, and suspending the debt limit until February 2014. Consensus on a $1.1 trillion federal spending bill was finally reached in January 2014, and in February 2014, members of Congress agreed to suspend the $16.7 trillion debt ceiling until March 2015.
In June 2013, then Fed Chairman Ben Bernanke’s remarks about potentially tapering the Fed’s asset purchase program touched off widespread uncertainty about the next step for the Fed’s quantitative easing program and its impact on the economy and financial markets. This led to increased market volatility, which was compounded by headline credit stories involving Detroit’s bankruptcy filing in July 2013, the largest municipal bankruptcy in history and the disappointing news that continued to come out of Puerto Rico, where a struggling economy and years of deficit spending and borrowing resulted in multiple downgrades on the commonwealth’s bonds. In this unsettled environment, the Treasury market traded off, the municipal market followed suit and spreads widened as investor concern grew, prompting increased selling by bondholders across the fixed income markets. During the second half of this reporting period, municipal bonds generally rallied, as higher yields sparked increased demand and improving flows into municipal bond funds while supply continued to drop. However, for the reporting period as a whole, municipal bond prices generally declined, especially at the longer end of the maturity spectrum. At the same time, fundamentals on municipal bonds remained strong, as state governments made good progress in dealing with budget issues. Due to strong growth in personal tax collections, year-over-year totals for state tax revenues have increased for 15 consecutive quarters, while on the expense side, the states made headway in cutting and controlling costs, with more than 40 states implementing some type of pension reform. The current level of municipal issuance reflects the more conservative approach to state budgeting as well as a decrease in refunding activity as municipal market yields rose. Over the twelve months ended February 28, 2014, municipal bond issuance nationwide totaled $315.9 billion, a decrease of 17% from the issuance for the twelve-month period ended February 28, 2013.
How were the economic and market environments in Connecticut, Massachusetts, New Jersey and New York during this reporting period?
The Connecticut economy continued its slow recovery in 2013, and is expected to lag the national recovery for the near term. Employment declines in local government and the financial sector are cited as reasons for the weakness. As of February 2014, Connecticut’s unemployment rate was 7.0%, exceeding the national rate of 6.7%, but lower than its February 2013 rate of 7.9%. Connecticut has a high number of defense related industries that could be vulnerable to cuts in federal defense spending. In June 2013, Connecticut enacted its current biennial budget for Fiscal Years 2014 and 2015. The new budget relied on expenditure reductions and the extension of three taxes that were due to sunset. Connecticut remains the top ranked state in the country in terms of per capita personal income. At period end, Moody’s gave Connecticut a Aa3-rating with a stable outlook and S&P provided a AA-rating with a stable outlook. Moody’s downgraded the state’s rating from Aa2 to Aa3 on January 20, 2012, citing its depleted reserves and high debt burden. Approximately $4.8 billion in Connecticut municipal bonds were issued during the twelve months ending February 28, 2014, a 23% year-over-year decrease.
Massachusetts enjoys a highly diverse economy. Bolstered by significant levels of employment in the relatively stable education and health care industries, the state’s economic downturn was milder than that of the nation as a whole. As of February 2014, Massachusetts unemployment rate was 6.5%, the same rate as of February 2013. According to Moody’s Analytics, Massachusetts’ economy is expected to gain momentum in the coming year, aided by expansion in biotechnology, pharmaceuticals and software development. Massachusetts is a wealthy state with per capita income at 128% of the U.S. average, ranking second highest among the 50 states. According to the S&P/Case-Shiller Index of 20 major metropolitan areas, housing prices in Boston rose 9.1% over the twelve months ended January 2014 (most recent data available at the time this report was prepared) compared with an average increase of 13.2% nationally. On January 22, 2014, the governor presented his proposed $36.4 billion Fiscal Year 2015 budget. It is 7.1% larger than
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the adopted Fiscal Year 2014 budget and calls for $97 million of new taxes, primarily extending the sales tax to carbonated beverages and candy, and roughly $20 million stemming from gambling revenue. This marks the first year in which the state is expecting to receive revenue from its 2011 state casino law. At period end, Moody’s rated Massachusetts Aa1-rating with a stable outlook and S&P gave the Commonwealth a AA+ rating with a stable outlook. For the twelve months ending February 28, 2014, Massachusetts’ tax-exempt bond supply totaled $9.6 billion, a 9.1% increase over the same period last year.
New Jersey enjoys a diverse economy. Its economy is closely tied to New York City’s and has benefited from an influx of jobs from the City. New Jersey ranks third in financial services jobs, behind New York and Massachusetts. The Port of Elizabeth/Newark is the East Coast’s largest seaport and handles about one third of the nation’s ocean going trade. The recession was milder in New Jersey than the nation as a whole, but New Jersey’s recovery has been uneven, and now lags the nation. New Jersey’s unemployment rate of 7.1% as of February 2014, while above the national average of 6.7%, is improved from an unemployment rate of 9.3% in February 2013. Moody’s Analytics is projecting that the State’s economic recovery will continue to lag the region and nation. Among the reasons cited for the lagging recovery are the prospects for reduced government employment as a result of the State’s fiscal problems. Employment in state and local government is down 3.7% between 2008 and 2012. In October 2012, Hurricane Sandy hit New
Jersey, causing extensive damage, particularly on the Jersey Shore. Damage in New Jersey has been estimated at $29 billion. Homebuilding is among the bright spots in New Jersey’s otherwise tepid economy. In February 2014, the governor proposed a Fiscal Year 2015 budget of $34.4 billion. The Fiscal Year 2015 budget contains no new taxes or tax cuts. At period end, Moody’s gave New Jersey Aa3-rated with a stable outlook and S&P gave New Jersey AA-rated with a negative outlook (On April 9, 2014, subsequent to the reporting period, S&P downgraded New Jersey to an A+ rating with a stable outlook). For the twelve months ending February 28, 2014, the state issued $11.3 billion in tax-exempt debt, an 11.5% year-over-year decrease.
New York’s $1.2 trillion economy represents 7.8% of U.S. gross domestic product and, according to the International Monetary Fund, would be the 14th largest economy in the world on a standalone basis. As of February 2014, the state’s unemployment rate registered 6.8%, just above the national rate of 6.7% and an improvement from a rate of 8.4% in February 2013. When Hurricane Sandy hit New York in October 2012, it caused major flooding in New York City and Long Island. Damages were estimated at $30 billion. The state’s housing market is showing signs of strengthening, according to the S&P/Case-Shiller Index of 20 major metropolitan areas, housing prices in New York rose 6.7% over the twelve months ended January 2014 (most recent data available at the time this report was prepared) compared with an average increase of 13.2% nationally. The state’s budget picture has improved considerably over the past few years. Revenues have been increased through tax hikes and expenditures have been more tightly controlled. The governor’s proposed $142.6 billion budget for Fiscal Year 2015 is 1.3% higher than the adopted Fiscal Year 2014 budget. The Fiscal Year 2015 budget contains no new taxes and continues the state’s recent movement toward structural budget balance. New York is a high income state, with per capita income at 122% of the U.S. average, fourth-highest among the 50 states. New York is a heavily indebted state. The state’s pensions have traditionally been well funded, though they did decline with the stock market financial crisis. At period end, Moody’s gave New York an Aa2-rating with a positive outlook and S&P gave a AA-rating with a positive outlook. New York tax-exempt bond supply totaled $41.3 billion for the twelve-month period ending February 28, 2014, a 15.4% decrease from 2013.
How did the Funds perform during the twelve-month reporting period ended February 28, 2014?
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 one-year, five-year and ten-year periods ended February 28, 2014. Each Fund’s Class A Share total returns at net asset value (NAV) are compared with the performance of S&P Municipal Bond Index and the Fund’s corresponding Lipper classification average.
During the reporting period, all four Funds underperformed the S&P Municipal Bond Index, but outpaced their respective Lipper classification average.
What strategies were used to manage the Funds during the reporting period? How did these strategies influence performance?
All of the Funds continued to employ the same fundamental investment strategies and tactics long relied upon by Nuveen Asset Management. Our municipal bond portfolios are managed with a value oriented approach and close input from Nuveen Asset Management’s research team.
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Portfolio Managers’ Comments (continued)
Below we highlight the specific factors influencing each Fund’s investment strategy, as well as how we managed each portfolio in light of recent market conditions.
Nuveen Connecticut Municipal Bond Fund
The Connecticut Fund’s underperformance compared with the S&P Municipal Bond Index was primarily due 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 tax-exempt for residents of most states, as a way to further diversify the portfolio. Puerto Rico securities came under severe pressure in light of the island’s contracting economy, unfavorable demographic trends and high debt burden. Ultimately, the major credit rating agencies downgraded Puerto Rico debt to below investment grade. Given deteriorating economic and fiscal conditions in Puerto Rico and our view that its bonds were susceptible to more downside risk, we significantly reduced our exposure from roughly 14% of net assets at the beginning of the reporting period to approximately 4% by period end. We sold most of our Puerto Rico general obligation (GO) bonds. That said, we maintained a smaller stake in GOs that were short duration, insured or pre-refunded (backed by U.S. government securities), because we believed those structural features provided some cushion. We also reduced holdings secured by Puerto Rico Sales Tax Financing Corporation, known as COFINA, Puerto Rico Electric Power, Puerto Rico Aqueduct and Sewer Authority, and the Puerto Rico Highway Transportation Authority.
Our duration positioning contributed to the Fund’s performance. Relative to the benchmark, the portfolio was neutrally positioned in bonds with maturities of two years or less, and it had considerable exposure to short dated callable securities, meaning those whose issuers were expected to redeem their debt over the near term. Together, these securities bolstered the Fund’s performance, as interest rates rose, yields on short term bonds generally rose less than those on longer term bonds, resulting in the outperformance of the shorter end of the market.
The Fund was also boosted by its sector positioning, including a helpful overweighting in higher education bonds. These securities contributed to the portfolio’s performance late in the reporting period, when investors’ appetite for higher yielding securities
improved. Similarly, the Fund benefited from its overweighting in housing bonds, as they performed comparatively well when rising mortgage rates reduced the risk of mortgage prepayments. To a much lesser extent, the Fund benefited from favorable credit quality allocation, most notably overweighting BBB-rated securities, which outpaced the index.
Mirroring the national municipal market, shareholder redemption activity was heavy in this Fund. In response, our portfolio management team took a focused, disciplined approach to selling securities. We sold bonds issued outside of Connecticut, namely Massachusetts and New York. In both states, demand for municipal bonds remained comparatively stable, affording the opportunity to sell some out-of-state bonds, which had been previously added to the portfolio to keep the Fund fully invested during periods of limited issuance, at comparatively good prices.
We also sold some lower yielding bonds, which allowed book losses for tax purposes and provided proceeds we would need to make purchases at a more opportune time. We found opportunities in late fall 2013, when we added a number of higher education bonds at attractive yields and prices, including credits of Wesleyan University and University of Connecticut. We note that the Fund ended the reporting period with holdings in the common and preferred stock of American Airlines Group (AAL). On December 9, 2013, AMR Corp., the parent company of AAL, emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement agreement established to meet AMR’s unsecured bond obligations, the bondholders, including the Fund, received a distribution of AAL preferred stock, which is to be converted to AAL common stock over a 120-day period.
Nuveen Massachusetts Municipal Bond Fund
The primary factor driving the Massachusetts Fund’s underperformance compared with the S&P Municipal Bond Index was its overweighting in Puerto Rico bonds, which are generally tax-exempt for residents of most states. The Fund owned Puerto Rico bonds primarily for diversification purposes. However, the securities dramatically lagged the benchmark, as the U.S. territory’s credit outlook deteriorated and, in response, the major credit rating agencies downgraded the island’s debt.
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Given our view that the downside risks of owning Puerto Rico bonds increasingly outweighed the upside potential of holding them, we eliminated much our exposure there, reducing our stake from 10% of net assets at the beginning of the reporting period to roughly 2% at period end. Of the securities we held, we emphasized short duration, insured or pre-refunded (backed by U.S. government securities) issues, whose risk/reward tradeoff we generally found to be more attractive. We also reduced holdings backed by issuers we felt were more susceptible to potentially worsening economic conditions, including Puerto Rico Sales Tax Financing Corporation, known as COFINA, Puerto Rico Electric Power, Puerto Rico Aqueduct and Sewer Authority and the Puerto Rico Highway Transportation Authority.
In contrast, our duration positioning proved advantageous. Compared with the benchmark, we had more exposure to bonds with maturities of two years or less, and a healthy weighting in short dated callable securities, meaning bonds whose issuers were expected to redeem their debt over the near term. Together, these securities bolstered the Fund’s performance, as short term municipal yields generally rose less than longer term municipal yields, resulting in the outperformance of the shorter end of the market. Similarly, our decision to remain neutrally weighted in bonds with maturities of eight to 18 years was helpful. In contrast, the Fund’s overall sector positioning detracted, with underperformance in the dedicated-tax segment, dominated by holdings in Puerto Rico COFINA bonds, acting as the biggest drag on relative results.
Unlike the national municipal market, the Massachusetts Fund enjoyed shareholder inflows during the reporting period. Early on, we invested this new money in bonds with maturities of 20 years and longer. Later, we grew concerned this inflow trend might not be sustainable over the longer term, believing it could be related to investors’ tax related strategies. Accordingly, we then 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 shareholder redemptions forced us to sell these bonds. This strategy proved beneficial because we were able to meet expected redemptions by selling liquid bonds at attractive prices.
Throughout the reporting period, the Fund’s duration, a measure of interest rate sensitivity, lengthened. Some of that extension occurred naturally; as interest rates rose, the overall duration of the municipal bond market and the Fund went up as well. However, part of the extension was also the result of a purposeful strategy. With the increase in rates, longer duration securities significantly cheapened, as their yields rose more than those on shorter term securities. We sought to take advantage of these attractive valuations by buying longer bonds that fit our investment criteria.
Nuveen New Jersey Municipal Bond Fund
The Fund’s underperformance compared to the S&P Municipal Bond Index was largely related to an overweight in longer duration holdings. Because these securities have more interest rate sensitivity than their shorter term counterparts, they lagged in the spring and summer of 2013, when rates drifted higher. The Fund’s larger exposure to long duration securities proved advantageous in the final months of the reporting period as rates fell.
Additionally, the Fund’s stake in Puerto Rico securities hindered results. The prices of bonds issued in this U.S. territory suffered steep declines, reflecting worries about the island’s economic and fiscal health. In turn, the major credit rating agencies downgraded Puerto Rico’s debt to below investment grade. Given the commonwealth’s financial challenges, we reduced the Fund’s exposure from roughly 4% of net assets at the beginning of the reporting period to approximately 2.7% at period end. We sold bonds that were more vulnerable to poor economic conditions, including those issued by Puerto Rico Sales Tax Financing Corporation, known as COFINA. Of our remaining stake in the island’s debt, more than half of our bonds were pre-refunded, meaning the issues were backed by U.S. Treasury securities and, as such, were highly rated.
On the positive side, the Fund benefited from its larger exposure to health care bonds, which outpaced the market. Consolidation within New Jersey’s hospital industry created efficiencies and better financial performance, which help lift the results of the bonds issued in this comparatively high yielding area of the market. The portfolio’s holdings in bonds that were pre-refunded during the reporting period also contributed to relative performance. Such securities typically enjoyed a price boost as they became secured by U.S. government debt priced to a very short call date.
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Portfolio Managers’ Comments (continued)
Reflecting national trends, the Fund experienced shareholder outflows during the reporting period. To meet modest redemption activity, we sold some pre-refunded securities. Short term, high quality bonds were in strong demand and commanded comparatively good prices.
For much of the second half of the reporting period, however, the Fund experienced shareholder inflows. These, coupled with bond call proceeds, allowed us to take advantage of selected opportunities to add new credits to the portfolio. In the later part of the reporting period, the prices of long duration securities had cheapened dramatically relative to shorter duration securities. By adding exposure to long dated bonds, the Fund was positioned to participate more fully in the municipal bond market rally of January and February 2014. We note that these purchases, together with the natural lengthening of the bond market as interest rates rose during the summer and fall, lengthened the Fund’s overall duration.
We also added new investments in bonds that finance high profile, strategically important infrastructure projects. Our purchases included securities backed by the New Jersey Turnpike Authority, as well as the Delaware River Port Authority and Port Authority of New York and New Jersey, two bi-state agencies whose municipal bonds are fully tax-exempt in New Jersey. More recently, we purchased bonds issued by the New Jersey Economic Development Authority to finance the $15 billion replacement of the Goethals Bridge, which connects New Jersey to Staten Island, New York.
The higher education sector was another source of opportunity. We bought Rutgers University debt issued to finance the merger of the state university system with the University of Medicine and Dentistry of New Jersey, which were pre-refunded during the reporting period. 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.
Nuveen New York Municipal Bond Fund
Duration and yield curve positioning were key factors behind the Fund’s underperformance compared to the S&P Municipal Bond Index. Interest rate sensitivity caused the Fund to lag as rates rose sharply from May through September 2013. In terms of yield curve positioning, the Fund was underweight in bonds with relatively short maturities and overweight in those on the longer end of the yield curve. Both stances detracted, as interest rates on long bonds rose more, and their prices declined to a greater degree, than those on shorter term securities. The Fund’s longer duration and yield curve positioning were advantageous in the final months of the reporting period, when interest rates drifted lower, longer term bonds outperformed and shorter securities lagged.
To a similar degree, the Fund’s credit quality positioning detracted from performance relative to the benchmark. The Fund was overweighted in BBB-rated and BB-rated bonds. To a much lesser extent, the Fund was also hurt by its small exposure to Puerto Rico bonds, which fared poorly due to concerns about the island’s worsening economy and fiscal picture, and the major credit rating agencies’ decision to downgrade Puerto Rico debt to below investment grade. Given the potential for further deterioration in the U.S. territory’s credit quality, we reduced our stake in Puerto Rico bonds from roughly 4% at the beginning of the reporting period to approximately 1.8% at period end. We continued to hold a relatively small position in insured securities backed by excise taxes on rum exported to the U.S. We also swapped some holdings issued by Puerto Rico Sales Tax Financing Corporation (known as COFINA), selling subordinated securities and buying bonds with a higher position in the security structure.
Meanwhile, the Fund’s sector positioning was beneficial, with its overweightings in state appropriated, housing and industrial development revenue/pollution control revenue bonds aiding relative results.
During the reporting period, moderate amounts of investment inflows came into the portfolio and we experienced some bond calls, both of which we used to fund new purchases. Once interest rates began to rise, we started to purchase bonds with the potential to improve the yield generating ability of the portfolio without altering the Fund’s overall risk profile. Higher prevailing interest rates 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
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against future gains, thus reducing future tax liability for shareholders. We added bonds priced at a premium and offering higher levels of income. These bonds were more defensive than those we were selling, which we believed would provide a degree of protection if market conditions remained challenging. We also bought lower quality, higher yielding securities, which, because of forced liquidations by high yield municipal bond funds to meet elevated shareholder redemptions, were selling in the fall at attractive prices. At the same time, we sold certain lower yielding, high quality bonds with short call dates, whose price appreciation potential and yield we felt were limited.
An Update Involving Puerto Rico
Another factor affecting the municipal bond market were the multiple downgrades to below investment grade debt issued by Puerto Rico in the aftermath of the commonwealth’s continued economic weakening, escalating debt service obligations and longstanding inability to deliver a balanced budget. After the most recent round of downgrades in early February 2014, Moody’s, S&P and Fitch rated Puerto Rico general obligation (GO) debt at Ba2/BB+/BB, respectively, with negative outlooks. Ratings on sales tax bonds issued by Puerto Rico Sales Tax Financing Corporation (COFINA) also were lowered during the reporting period, with senior sales tax revenue bonds rated Baa1/AA-/AA- and subordinate sales tax revenue bonds rated Baa2/A+/A+ by Moody’s, S&P and Fitch, respectively, as of February 2014. 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. For the reporting period ended February 28, 2014, Puerto Rico paper underperformed the municipal market as a whole. A look at Puerto Rico’s tax-supported debt (GO, COFINA, and guaranteed debt) as a whole makes it clear the debt was structured based upon an assumption of a steadily growing economy in the commonwealth. Unfortunately for Puerto Rico, its economy continues to struggle with high unemployment and population loss, among other problems. As a result, we believe that Puerto Rico bonds, particularly bonds that lack a lien on specific revenues (i.e., COFINA sales tax bonds) or are not backed by healthy bond insurers, currently carry significant economic, fiscal and political risks.
| Nuveen Investments | 11 |
and Dividend Information
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 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 February 28, 2014, the Funds had positive UNII balances for both tax and financial reporting purposes.
| 12 | Nuveen Investments |
and Effective Leverage Ratios
The Fund Performance, Expense and Effective Leverage Ratios for each Fund are shown on the following eight 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.
| Nuveen Investments | 13 |
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 February 28, 2014
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | (1.71)% | 5.49% | 3.81% | |||||||||
Class A Shares at maximum Offering Price | (5.88)% | 4.59% | 3.37% | |||||||||
S&P Municipal Bond Index* | (0.27)% | 6.11% | 4.45% | |||||||||
Lipper Other States Municipal Debt Funds Classification Average* | (2.67)% | 5.12% | 3.39% | |||||||||
Class C2 Shares | (2.19)% | 4.91% | 3.25% | |||||||||
Class I Shares | (1.58)% | 5.69% | 4.02% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 0.81% | |||
Average Annual Total Returns as of March 31, 2014 (Most Recent Calendar Quarter)
| Average Annual | ||||||||||||
| 1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | (0.82)% | 5.61% | 3.89% | |||||||||
Class A Shares at maximum Offering Price | (4.98)% | 4.69% | 3.44% | |||||||||
Class C2 Shares | (1.39)% | 5.03% | 3.33% | |||||||||
Class I Shares | (0.59)% | 5.82% | 4.10% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.04% | |||
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 and C2 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
| Share Class | ||||||||||||||||
Class A | Class C | Class C2 | Class I | |||||||||||||
Expense Ratios | 0.80% | 1.60% | 1.35% | 0.60% | ||||||||||||
Effective Leverage Ratio as of February 28, 2014
Effective Leverage Ratio | 0.00% |
| 14 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of February 28, 2014 – Class A Shares
The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| * | Refer to the Glossary of Terms Used in the Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| ** | Since inception returns for Class C Shares are from 2/10/14. |
| Nuveen Investments | 15 |
Fund Performance, Expense and Effective Leverage Ratios (continued)
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 February 28, 2014
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | (1.64)% | 6.74% | 4.04% | |||||||||
Class A Shares at maximum Offering Price | (5.79)% | 5.82% | 3.60% | |||||||||
S&P Municipal Bond Index* | (0.27)% | 6.11% | 4.45% | |||||||||
Lipper Massachusetts Municipal Debt Funds Classification Average* | (3.07)% | 5.61% | 3.52% | |||||||||
Class C2 Shares | (2.15)% | 6.16% | 3.48% | |||||||||
Class I Shares | (1.36)% | 6.95% | 4.25% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 0.88% | |||
Average Annual Total Returns as of March 31, 2014 (Most Recent Calendar Quarter)
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | (0.87)% | 6.84% | 4.09% | |||||||||
Class A Shares at maximum Offering Price | (5.00)% | 5.94% | 3.65% | |||||||||
Class C2 Shares | (1.38)% | 6.27% | 3.53% | |||||||||
Class I Shares | (0.69)% | 7.03% | 4.29% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.03% | |||
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 and C2 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
| Share Class | ||||||||||||||||
Class A | Class C | Class C2 | Class I | |||||||||||||
Expense Ratios | 0.82% | 1.62% | 1.37% | 0.62% | ||||||||||||
Effective Leverage Ratio as of February 28, 2014
Effective Leverage Ratio | 0.66% |
| 16 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of February 28, 2014 – Class A Shares
The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| * | Refer to the Glossary of Terms Used in the Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| ** | Since inception returns for Class C Shares are from 2/10/14. |
| Nuveen Investments | 17 |
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 February 28, 2014
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | (1.08)% | 6.65% | 4.32% | |||||||||
Class A Shares at maximum Offering Price | (5.24)% | 5.74% | 3.87% | |||||||||
S&P Municipal Bond Index* | (0.27)% | 6.11% | 4.45% | |||||||||
Lipper New Jersey Municipal Debt Funds Classification Average* | (2.50)% | 5.81% | 3.63% | |||||||||
Class C2 Shares | (1.57)% | 6.06% | 3.75% | |||||||||
Class I Shares | (0.86)% | 6.85% | 4.53% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.15% | |||
Average Annual Total Returns as of March 31, 2014 (Most Recent Calendar Quarter)
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 0.04% | 6.80% | 4.42% | |||||||||
Class A Shares at maximum Offering Price | (4.20)% | 5.88% | 3.97% | |||||||||
Class C2 Shares | (0.54)% | 6.22% | 3.85% | |||||||||
Class I Shares | 0.17% | 7.00% | 4.63% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.56% | |||
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 and C2 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
| Share Class | ||||||||||||||||
Class A | Class C | Class C2 | Class I | |||||||||||||
Expense Ratios | 0.81% | 1.61% | 1.36% | 0.61% | ||||||||||||
Effective Leverage Ratio as of February 28, 2014
Effective Leverage Ratio | 1.07% |
| 18 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of February 28, 2014 – Class A Shares
The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| * | Refer to the Glossary of Terms Used in the Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| ** | Since inception returns for Class C Shares are from 2/10/14. |
| Nuveen Investments | 19 |
Fund Performance, Expense and Effective Leverage Ratios (continued)
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 February 28, 2014
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | (1.68)% | 5.95% | 4.00% | |||||||||
Class A Shares at maximum Offering Price | (5.85)% | 5.05% | 3.55% | |||||||||
S&P Municipal Bond Index* | (0.27)% | 6.11% | 4.45% | |||||||||
S&P Municipal Bond New York Index* | 0.01% | 5.73% | 4.41% | |||||||||
Lipper New York Municipal Debt Funds Classification Average* | (2.85)% | 5.72% | 3.48% | |||||||||
Class C2 Shares | (2.23)% | 5.38% | 3.43% | |||||||||
Class I Shares | (1.49)% | �� | 6.16% | 4.20% | ||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.01% | |||
Average Annual Total Returns as of March 31, 2014 (Most Recent Calendar Quarter)
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | (0.58)% | 6.10% | 4.11% | |||||||||
Class A Shares at maximum Offering Price | (4.75)% | 5.19% | 3.67% | |||||||||
Class C2 Shares | (1.14)% | 5.51% | 3.55% | |||||||||
Class I Shares | (0.39)% | 6.31% | 4.32% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.46% | |||
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 and C2 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
| Share Class | ||||||||||||||||
Class A | Class C | Class C2 | Class I | |||||||||||||
Expense Ratios | 0.79% | 1.59% | 1.34% | 0.59% | ||||||||||||
Effective Leverage Ratio as of February 28, 2014
Effective Leverage Ratio | 2.57% |
| 20 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of February 28, 2014 – Class A Shares
The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| * | Refer to the Glossary of Terms Used in the Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| ** | Since inception returns for Class C Shares are from 2/10/14. |
| Nuveen Investments | 21 |
Yields as of February 28, 2014
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
| Share Class | ||||||||||||||||
Class A1 | Class C | Class C2 | Class I | |||||||||||||
Dividend Yield | 3.29% | 2.63% | 2.86% | 3.65% | ||||||||||||
SEC 30-Day Yield | 2.62% | 1.80% | 2.19% | 2.93% | ||||||||||||
Taxable-Equivalent Yield2 | 3.87% | 2.66% | 3.23% | 4.33% | ||||||||||||
Nuveen Massachusetts Municipal Bond Fund
| Share Class | ||||||||||||||||
Class A1 | Class C | Class C2 | Class I | |||||||||||||
Dividend Yield | 3.60% | 3.00% | 3.18% | 3.95% | ||||||||||||
SEC 30-Day Yield | 2.66% | 2.03% | 2.23% | 2.97% | ||||||||||||
Taxable-Equivalent Yield3 | 3.89% | 2.97% | 3.27% | 4.35% | ||||||||||||
Nuveen New Jersey Municipal Bond Fund
| Share Class | ||||||||||||||||
Class A1 | Class C | Class C2 | Class I | |||||||||||||
Dividend Yield | 3.36% | 2.71% | 2.98% | 3.72% | ||||||||||||
SEC 30-Day Yield | 2.85% | 2.13% | 2.43% | 3.18% | ||||||||||||
Taxable-Equivalent Yield4 | 4.23% | 3.16% | 3.61% | 4.72% | ||||||||||||
Nuveen New York Municipal Bond Fund
| Share Class | ||||||||||||||||
Class A1 | Class C | Class C2 | Class I | |||||||||||||
Dividend Yield | 3.65% | 3.03% | 3.25% | 3.97% | ||||||||||||
SEC 30-Day Yield | 2.84% | 1.81% | 2.42% | 3.16% | ||||||||||||
Taxable-Equivalent Yield5 | 4.23% | 2.69% | 3.60% | 4.70% | ||||||||||||
| 1 | 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. |
| 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 32.3% |
| 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 31.7%. |
| 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 32.6% |
| 5 | 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% |
| 22 | Nuveen Investments |
Summaries February 28, 2014
This data relates to the securities held in each Fund’s portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
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
Fund Allocation
(% of net assets)
Municipal Bonds | 98.6% | |||
Common Stocks | 0.1% | |||
Convertible Preferred Securities | 0.0% | |||
Other Assets Less Liabilities | 1.3% |
Portfolio Composition
(% of net assets)
Education and Civic Organizations | 24.1% | |||
Health Care | 17.3% | |||
Tax Obligation/Limited | 15.5% | |||
Water and Sewer | 13.2% | |||
Tax Obligation/General | 12.2% | |||
Utilities | 7.7% | |||
Other Industries | 8.7% | |||
Other Assets Less Liabilities | 1.3% |
Bond Credit Quality
(% of total investment exposure)
AAA/U.S. Guaranteed | 13.1% | |||
AA | 40.0% | |||
A | 28.3% | |||
BBB | 9.4% | |||
BB or Lower | 1.6% | |||
N/R (not rated) | 7.5% | |||
N/A (not applicable) | 0.1% |
| Nuveen Investments | 23 |
Holding Summaries February 28, 2014 (continued)
Nuveen Massachusetts Municipal Bond Fund
Fund Allocation
(% of net assets)
Municipal Bonds | 97.4% | |||
Other Assets Less Liabilities | 2.6% |
Portfolio Composition
(% of net assets)
Education and Civic Organizations | 32.2% | |||
Health Care | 16.3% | |||
Tax Obligation/Limited | 12.2% | |||
U.S. Guaranteed | 8.3% | |||
Water and Sewer | 7.0% | |||
Transportation | 6.6% | |||
Other Industries | 14.8% | |||
Other Assets Less Liabilities | 2.6% |
Bond Credit Quality
(% of total investment exposure)
AAA/U.S. Guaranteed | 11.7% | |||
AA | 40.0% | |||
A | 24.0% | |||
BBB | 15.1% | |||
BB or Lower | 3.0% | |||
N/R (not rated) | 6.2% |
| 24 | Nuveen Investments |
Nuveen New Jersey Municipal Bond Fund
Fund Allocation
(% of net assets)
Municipal Bonds | 98.6% | |||
Other Assets Less Liabilities | 1.4% |
Portfolio Composition
(% of net assets)
Tax Obligation/Limited | 19.3% | |||
Health Care | 16.8% | |||
Transportation | 15.2% | |||
Education and Civic Organizations | 11.9% | |||
U.S. Guaranteed | 11.2% | |||
Tax Obligation/General | 7.4% | |||
Housing/Multifamily | 4.2% | |||
Other Industries | 12.6% | |||
Other Assets Less Liabilities | 1.4% |
Bond Credit Quality
(% of total investment exposure)
AAA/U.S. Guaranteed | 14.2% | |||
AA | 27.5% | |||
A | 35.3% | |||
BBB | 14.6% | |||
BB or Lower | 6.3% | |||
N/R (not rated) | 2.1% |
| Nuveen Investments | 25 |
Holding Summaries February 28, 2014 (continued)
Nuveen New York Municipal Bond Fund
Fund Allocation
(% of net assets)
Municipal Bonds | 98.9% | |||
Common Stocks | 0.0% | |||
Convertible Preferred Securities | 0.0% | |||
Floating Rate Obligations | (1.2)% | |||
Other Assets Less Liabilities | 2.3% |
Portfolio Composition
(% of net assets)
Tax Obligation/Limited | 23.6% | |||
Education and Civic Organizations | 16.3% | |||
Transportation | 16.3% | |||
Utilities | 11.3% | |||
Health Care | 9.4% | |||
Tax Obligation/General | 5.8% | |||
U.S. Guaranteed | 4.1% | |||
Other Industries | 12.1% | |||
Floating Rate Obligations | (1.2)% | |||
Other Assets Less Liabilities | 2.3% |
Bond Credit Quality
(% of total investment exposure)
AAA/U.S. Guaranteed | 17.5% | |||
AA | 36.6% | |||
A | 23.8% | |||
BBB | 7.9% | |||
BB or Lower | 10.6% | |||
N/R (not rated) | 3.6% | |||
N/A (not applicable) | 0.0% |
| 26 | Nuveen Investments |
Examples
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. Since the expense examples for Class C Shares reflect only the first 18 days of the Class’s operations, they may not provide a meaningful understanding of the Class’s ongoing expenses.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the end of 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
| Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||||||||||
A Shares | C Shares | C2 Shares | I Shares | A Shares | C Shares | C2 Shares | I Shares | |||||||||||||||||||||||||
Beginning Account Value (9/01/13) | $ | 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 (2/28/14) | $ | 1,058.00 | $ | 1,008.10 | $ | 1,055.00 | $ | 1,058.00 | $ | 1,020.73 | $ | 1,016.81 | $ | 1,018.00 | $ | 1,021.72 | ||||||||||||||||
Expenses Incurred During Period | $ | 4.18 | $ | 0.80 | $ | 6.98 | $ | 3.16 | $ | 4.11 | $ | 0.80 | $ | 6.85 | $ | 3.11 | ||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .83%, 1.38% and .63% for Classes A, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). For Class C, expenses are equal to the Fund’s annualized net expense ratio of 1.65%, multiplied by the average account value over the period, multiplied by 18/365 (to reflect 18 days in the period since class commencement of operations).
| Nuveen Investments | 27 |
Expense Examples (continued)
Nuveen Massachusetts Municipal Bond Fund
| Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||||||||||
A Shares | C Shares | C2 Shares | I Shares | A Shares | C Shares | C2 Shares | I Shares | |||||||||||||||||||||||||
Beginning Account Value (9/01/13) | $ | 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 (2/28/14) | $ | 1,061.10 | $ | 1,008.80 | $ | 1,057.20 | $ | 1,062.20 | $ | 1,020.58 | $ | 1,016.76 | $ | 1,017.95 | $ | 1,021.67 | ||||||||||||||||
Expense Incurred During Period | $ | 4.34 | $ | 0.80 | $ | 7.04 | $ | 3.22 | $ | 4.26 | $ | 0.81 | $ | 6.90 | $ | 3.16 | ||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .85%, 1.38% and .63% for Classes A, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). For Class C, expenses are equal to the Fund’s annualized net expense ratio of 1.62%, multiplied by the average account value over the period, multiplied by 18/365 (to reflect 18 days in the period since class commencement of operations).
Nuveen New Jersey Municipal Bond Fund
| Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||||||||||
A Shares | C Shares | C2 Shares | I Shares | A Shares | C Shares | C2 Shares | I Shares | |||||||||||||||||||||||||
Beginning Account Value (9/01/13) | $ | 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 (2/28/14) | $ | 1,069.20 | $ | 1,011.50 | $ | 1,066.50 | $ | 1,070.10 | $ | 1,020.53 | $ | 1,016.66 | $ | 1,017.90 | $ | 1,021.62 | ||||||||||||||||
Expenses Incurred During Period | $ | 4.41 | $ | 0.81 | $ | 7.12 | $ | 3.28 | $ | 4.31 | $ | 0.82 | $ | 6.95 | $ | 3.21 | ||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .86%, 1.39% and .64% for Classes A, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). For Class C, expenses are equal to the Fund’s annualized net expense ratio of 1.64%, multiplied by the average account value over the period, multiplied by 18/365 (to reflect 18 days in the period since class commencement of operations).
Nuveen New York Municipal Bond Fund
| Actual Performance | Hypothetical Performance (5% annualized return before expenses) | |||||||||||||||||||||||||||||||
A Shares | C Shares | C2 Shares | I Shares | A Shares | C Shares | C2 Shares | I Shares | |||||||||||||||||||||||||
Beginning Account Value (9/01/13) | $ | 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 (2/28/14) | $ | 1,060.00 | $ | 1,010.10 | $ | 1,058.10 | $ | 1,061.90 | $ | 1,020.73 | $ | 1,016.91 | $ | 1,018.10 | $ | 1,021.82 | ||||||||||||||||
Expenses Incurred During Period | $ | 4.19 | $ | 0.79 | $ | 6.89 | $ | 3.07 | $ | 4.11 | $ | 0.79 | $ | 6.76 | $ | 3.01 | ||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .82, 1.35% and .60% for Classes A, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). For Class C, expenses are equal to the Fund’s annualized net expense ratio of 1.59%, multiplied by the average account value over the period, multiplied by 18/365 (to reflect 18 days in the period since class commencement of operations).
| 28 | Nuveen Investments |
Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Multistate Trust II:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen Connecticut Municipal Bond Fund, Nuveen Massachusetts Municipal Bond Fund, Nuveen New Jersey Municipal Bond Fund, and Nuveen New York Municipal Bond Fund (each a series of the Nuveen Multistate Trust II, hereinafter referred to as the “Funds”) at February 28, 2014 , the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Chicago, IL
April 28, 2014
| Nuveen Investments | 29 |
Nuveen Connecticut Municipal Bond Fund
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 98.7% | ||||||||||||||||||
MUNICIPAL BONDS – 98.6% | ||||||||||||||||||
Consumer Staples – 0.7% | ||||||||||||||||||
| $ | 1,980 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 5/14 at 100.00 | BBB+ | $ | 1,966,932 | ||||||||||||
Education and Civic Organizations – 24.1% | ||||||||||||||||||
| 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+ | 215,305 | ||||||||||||||
| 2,000 | Connecticut Health and Education Facilities Authority, Revenue Bonds, Connecticut College, Series 2007G, 4.500%, 7/01/37 – NPFG Insured | 7/17 at 100.00 | A | 2,023,100 | ||||||||||||||
| 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 | 1,246,205 | ||||||||||||||
| 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 | 4,308,200 | ||||||||||||||
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+ | 1,095,160 | ||||||||||||||
| 500 | 5.000%, 7/01/32 | 7/22 at 100.00 | A+ | 544,950 | ||||||||||||||
| 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 | 1,435,057 | ||||||||||||||
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 | 975,427 | ||||||||||||||
| 400 | 5.000%, 7/01/32 – RAAI Insured | 7/17 at 100.00 | N/R | 401,620 | ||||||||||||||
| 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– | 3,372,718 | ||||||||||||||
| 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 | 671,028 | ||||||||||||||
| 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 | 1,052,804 | ||||||||||||||
| 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– | 4,223,960 | ||||||||||||||
| 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 | 4,920,143 | ||||||||||||||
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 | 1,061,120 | ||||||||||||||
| 2,500 | 5.625%, 7/01/41 | 7/21 at 100.00 | Baa1 | 2,646,000 | ||||||||||||||
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– | 1,365,026 | ||||||||||||||
| 1,750 | 5.000%, 7/01/27 – AGM Insured | 7/22 at 100.00 | AA– | 1,893,010 | ||||||||||||||
| 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+ | 2,033,839 | ||||||||||||||
| 30 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 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+ | $ | 1,468,138 | ||||||||||||
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– | 5,107,188 | ||||||||||||||
| �� | 2,250 | 5.250%, 7/01/36 – RAAI Insured | 7/16 at 100.00 | BBB– | 2,255,963 | |||||||||||||
| 3,500 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/39 | 7/20 at 100.00 | AA | 3,768,240 | ||||||||||||||
| 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 | 10,638,827 | ||||||||||||||
| 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 | 3,275,970 | ||||||||||||||
| 1,465 | 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 | 1,480,851 | ||||||||||||||
| 630 | University of Connecticut, Student Fee Revenue Bonds, Refunding Series 2010A, 5.000%, 11/15/27 | 11/19 at 100.00 | Aa2 | 692,559 | ||||||||||||||
| 4,000 | University of Connecticut, Student Fee Revenue Bonds, Refunding Series 2012A, 5.000%, 11/15/28 | No Opt. Call | Aa2 | 4,522,840 | ||||||||||||||
| 64,850 | Total Education and Civic Organizations | 68,695,248 | ||||||||||||||||
Health Care – 17.3% | ||||||||||||||||||
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 | 837,998 | ||||||||||||||
| 4,025 | 5.500%, 7/01/32 – RAAI Insured | 7/14 at 100.00 | N/R | 4,025,523 | ||||||||||||||
| 640 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Eastern Connecticut Health Network, Series 2000A, 6.000%, 7/01/25 – RAAI Insured | 5/14 at 100.00 | N/R | 640,653 | ||||||||||||||
| 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 | 2,253,283 | ||||||||||||||
| 6,975 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hartford Healthcare, Series 2011A, 5.000%, 7/01/41 | 7/21 at 100.00 | A | 7,077,253 | ||||||||||||||
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– | 524,130 | ||||||||||||||
| 1,055 | 5.250%, 7/01/32 – RAAI Insured | 7/17 at 100.00 | BBB– | 1,071,701 | ||||||||||||||
| 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+ | 1,044,250 | ||||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, Middlesex Hospital, Series 2011N: | ||||||||||||||||||
| 495 | 5.000%, 7/01/25 | 7/21 at 100.00 | A2 | 534,699 | ||||||||||||||
| 500 | 5.000%, 7/01/27 | 7/21 at 100.00 | A2 | 531,515 | ||||||||||||||
| 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 | 4,185,825 | ||||||||||||||
| 4,000 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Stamford Hospital, Series 2012J, 5.000%, 7/01/42 | 7/22 at 100.00 | A | 4,035,040 | ||||||||||||||
| 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 | 4,116,644 | ||||||||||||||
| Nuveen Investments | 31 |
Nuveen Connecticut Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 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 | $ | 2,102,660 | ||||||||||||
| 10,210 | 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 | 10,538,251 | ||||||||||||||
| 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 | 1,409,439 | ||||||||||||||
| 2,500 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40 | 11/19 at 100.00 | AA+ | 2,627,075 | ||||||||||||||
| 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 | 1,774,408 | ||||||||||||||
| 47,880 | Total Health Care | 49,330,347 | ||||||||||||||||
Housing/Single Family – 1.6% | ||||||||||||||||||
| 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 | 1,097,477 | ||||||||||||||
| 3,410 | Connecticut Housing Finance Authority, Housing Mortgage Finance Program Bonds, Series 2006D, 4.650%, 11/15/27 | 5/16 at 100.00 | AAA | 3,488,157 | ||||||||||||||
| 4,500 | Total Housing/Single Family | 4,585,634 | ||||||||||||||||
Long-Term Care – 1.5% | ||||||||||||||||||
| 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 | 3,223,499 | ||||||||||||||
Hamden, Connecticut, Facility Revenue Bonds, Whitney Center Project, Series 2009A: | ||||||||||||||||||
| 830 | 7.625%, 1/01/30 | 1/20 at 100.00 | N/R | 862,246 | ||||||||||||||
| 350 | 7.750%, 1/01/43 | 1/20 at 100.00 | N/R | 359,331 | ||||||||||||||
| 4,190 | Total Long-Term Care | 4,445,076 | ||||||||||||||||
Tax Obligation/General – 12.2% | ||||||||||||||||||
Connecticut State, General Obligation Bonds, Refunding Series 2012E: | ||||||||||||||||||
| 1,000 | 5.000%, 9/15/30 | 9/22 at 100.00 | AA | 1,117,410 | ||||||||||||||
| 2,000 | 5.000%, 9/15/32 | 9/22 at 100.00 | AA | 2,208,280 | ||||||||||||||
| 5,000 | Connecticut State, General Obligation Bonds, Series 2006A, 4.750%, 12/15/24 | 12/16 at 100.00 | AA | 5,526,800 | ||||||||||||||
| 2,200 | Connecticut State, General Obligation Bonds, Series 2006C, 5.000%, 6/01/23 – AGM Insured | 6/16 at 100.00 | AA | 2,410,738 | ||||||||||||||
Connecticut State, General Obligation Bonds, Series 2008C: | ||||||||||||||||||
| 1,000 | 5.000%, 11/01/26 | 11/18 at 100.00 | AA | 1,150,920 | ||||||||||||||
| 1,015 | 5.000%, 11/01/27 | 11/18 at 100.00 | AA | 1,158,511 | ||||||||||||||
| 1,015 | 5.000%, 11/01/28 | 11/18 at 100.00 | AA | 1,152,167 | ||||||||||||||
| 1,000 | Connecticut State, General Obligation Bonds, Series 2011D, 5.000%, 11/01/31 | 11/21 at 100.00 | AA | 1,110,450 | ||||||||||||||
| 3,000 | Connecticut, General Obligation Bonds, Series 2001C, 5.500%, 12/15/14 | No Opt. Call | AA | 3,129,240 | ||||||||||||||
| 2,000 | New Haven, Connecticut, General Obligation Bonds, Refunding Series 2012A, 5.000%, 11/01/18 | No Opt. Call | A3 | 2,290,920 | ||||||||||||||
| 485 | North Haven, Connecticut, General Obligation Bonds, Series 2006, 5.000%, 7/15/24 | No Opt. Call | Aa1 | 583,014 | ||||||||||||||
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A: | ||||||||||||||||||
| 2,125 | 5.500%, 7/01/16 – AGM Insured | No Opt. Call | AA– | 2,136,496 | ||||||||||||||
| 40 | 5.500%, 7/01/19 – AGM Insured | No Opt. Call | AA– | 39,747 | ||||||||||||||
| 3,000 | Waterbury, Connecticut, General Obligation Bonds, Series 2012A, 5.000%, 8/01/30 | 8/22 at 100.00 | AA– | 3,272,070 | ||||||||||||||
| 32 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 2,000 | West Haven, Connecticut, General Obligation Bonds, Series 2012, 5.000%, 8/01/24 – AGM Insured | 8/22 at 100.00 | AA– | $ | 2,229,180 | ||||||||||||
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– | 1,517,530 | ||||||||||||||
| 1,415 | 7.000%, 12/01/25 – AGM Insured | 12/20 at 100.00 | AA– | 1,661,578 | ||||||||||||||
| 1,725 | 7.000%, 12/01/27 – AGM Insured | 12/20 at 100.00 | AA– | 2,004,088 | ||||||||||||||
| 31,300 | Total Tax Obligation/General | 34,699,139 | ||||||||||||||||
Tax Obligation/Limited – 15.5% | ||||||||||||||||||
| 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– | 2,745,574 | ||||||||||||||
| 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– | 1,445,448 | ||||||||||||||
| 5,000 | Connecticut State, Special Tax Obligation Transportation Infrastructure Bonds, Series 2007A, 5.000%, 8/01/26 – AMBAC Insured | 8/17 at 100.00 | AA | 5,603,400 | ||||||||||||||
| 5,000 | Connecticut State, Special Tax Obligation Transportation Infrastructure Purposes Bonds, Series 2008A, 5.000%, 11/01/28 | 11/18 at 100.00 | AA | 5,632,800 | ||||||||||||||
| 2,500 | Connecticut State, Special Tax Obligation Transportation Infrastructure Purposes Bonds, Series 2013A, 5.000%, 10/01/33 | 10/23 at 100.00 | AA | 2,787,050 | ||||||||||||||
Connecticut, Certificates of Participation, Juvenile Training School, Series 2001: | ||||||||||||||||||
| 1,275 | 5.000%, 12/15/20 | 5/14 at 100.00 | AA– | 1,301,941 | ||||||||||||||
| 1,000 | 5.000%, 12/15/30 | 5/14 at 100.00 | AA– | 1,003,920 | ||||||||||||||
Government of Guam, Business Privilege Tax Bonds, Series 2011A: | ||||||||||||||||||
| 2,400 | 5.250%, 1/01/36 | 1/22 at 100.00 | A | 2,465,784 | ||||||||||||||
| 600 | 5.125%, 1/01/42 | 1/22 at 100.00 | A | 609,636 | ||||||||||||||
| 2,200 | Guam Government, Limited Obligation Section 30 Revenue Bonds, Series 2009A, 5.750%, 12/01/34 | 12/19 at 100.00 | BBB+ | 2,331,670 | ||||||||||||||
| 1,720 | Stamford, Connecticut, Special Obligation Revenue Bonds, Mill River Corridor Project, Series 2011A, 7.000%, 4/01/41 | 4/21 at 100.00 | N/R | 1,788,869 | ||||||||||||||
University of Connecticut, General Obligation Bonds, Series 2009A: | ||||||||||||||||||
| 1,000 | 5.000%, 2/15/27 | 2/19 at 100.00 | AA | 1,139,190 | ||||||||||||||
| 1,000 | 5.000%, 2/15/28 | 2/19 at 100.00 | AA | 1,122,270 | ||||||||||||||
University of Connecticut, General Obligation Bonds, Series 2013A: | ||||||||||||||||||
| 2,290 | 5.000%, 8/15/20 | No Opt. Call | AA | 2,756,496 | ||||||||||||||
| 2,500 | 5.000%, 8/15/32 | 8/23 at 100.00 | AA | 2,760,625 | ||||||||||||||
| 4,025 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 5.000%, 10/01/32 | No Opt. Call | BBB+ | 4,068,229 | ||||||||||||||
| 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 | 1,405,894 | ||||||||||||||
| 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 | 3,313,470 | ||||||||||||||
| 40,795 | Total Tax Obligation/Limited | 44,282,266 | ||||||||||||||||
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 | 1,388,818 | ||||||||||||||
| Nuveen Investments | 33 |
Nuveen Connecticut Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed – 4.3% (4) | ||||||||||||||||||
| $ | 685 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lutheran General Healthcare System – Parkside Lodges Projects, Series 1989, 7.375%, 7/01/19 (ETM) | 5/14 at 100.00 | Aaa | $ | 810,691 | ||||||||||||
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 | (4) | 452,480 | |||||||||||||
| 965 | 5.000%, 7/01/37 (Pre-refunded 7/01/17) – AMBAC Insured | 7/17 at 100.00 | N/R | (4) | 1,105,427 | |||||||||||||
Connecticut Health and Educational Facilities Authority, Revenue Bonds, William W. Backus Hospital, Series 2005F: | ||||||||||||||||||
| 2,000 | 5.000%, 7/01/28 (Pre-refunded 7/01/18) – AGM Insured | 7/18 at 100.00 | AA– | (4) | 2,347,900 | |||||||||||||
| 20 | 5.125%, 7/01/35 (Pre-refunded 7/01/18) – AGM Insured | 7/18 at 100.00 | AA– | (4) | 23,585 | |||||||||||||
Hartford, Connecticut, General Obligation Bonds, Series 2005A: | ||||||||||||||||||
| 1,195 | 5.000%, 8/01/20 (Pre-refunded 8/01/15) – AGM Insured | 8/15 at 100.00 | AA– | (4) | 1,275,949 | |||||||||||||
| 595 | 5.000%, 8/01/21 (Pre-refunded 8/01/15) – AGM Insured | 8/15 at 100.00 | AA– | (4) | 635,305 | |||||||||||||
| 1,210 | 4.375%, 8/01/24 (Pre-refunded 8/01/15) – AGM Insured | 8/15 at 100.00 | AA– | (4) | 1,280,676 | |||||||||||||
| 1,395 | Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%, 7/01/19 – NPFG Insured (ETM) | No Opt. Call | Baa1 | (4) | 1,709,712 | |||||||||||||
| 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 | (4) | 2,794,556 | |||||||||||||
| 11,130 | Total U.S. Guaranteed | 12,436,281 | ||||||||||||||||
Utilities – 7.7% | ||||||||||||||||||
| 500 | Connecticut Municipal Electric Energy Cooperative, Power Supply System Revenue Bonds, Series 2013A, 5.000%, 1/01/20 | No Opt. Call | Aa3 | 590,310 | ||||||||||||||
Connecticut Municipal Electric Energy Cooperative, Transmission Services Revenue Bonds, Series 2012A: | ||||||||||||||||||
| 955 | 5.000%, 1/01/24 | 1/22 at 100.00 | Aa3 | 1,097,257 | ||||||||||||||
| 880 | 5.000%, 1/01/25 | 1/22 at 100.00 | Aa3 | 1,001,150 | ||||||||||||||
| 3,400 | Connecticut Resource Recovery Authority, Revenue Bonds, American Ref-Fuel Company of Southeastern Connecticut LP, Series 1992A, 6.450%, 11/15/22 (Alternative Minimum Tax) | 5/14 at 100.00 | Ba1 | 3,404,114 | ||||||||||||||
| 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) | 5/14 at 100.00 | Ba1 | 1,000,330 | ||||||||||||||
| 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 | 3,356,238 | ||||||||||||||
| 6,685 | Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A, 5.500%, 1/01/20 (Alternative Minimum Tax) | 7/14 at 100.00 | A– | 6,693,957 | ||||||||||||||
| 5,000 | Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series 2002, 5.000%, 7/01/20 – NPFG Insured | No Opt. Call | A | 4,729,000 | ||||||||||||||
| 21,590 | Total Utilities | 21,872,356 | ||||||||||||||||
Water and Sewer – 13.2% | ||||||||||||||||||
| 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 | 160,170 | ||||||||||||||
| 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 | 5,723,325 | ||||||||||||||
| 5,000 | Connecticut, State Revolving Fund General Revenue Bonds, Series 2013A, 5.000%, 3/01/25 | 3/23 at 100.00 | AAA | 5,953,249 | ||||||||||||||
| 34 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Water and Sewer (continued) | ||||||||||||||||||
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 | $ | 4,032,230 | ||||||||||||
| 4,685 | 5.000%, 8/15/35 – NPFG Insured | 11/15 at 100.00 | A1 | 4,938,271 | ||||||||||||||
| 2,350 | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2010, 5.625%, 7/01/40 | 7/20 at 100.00 | A– | 2,370,351 | ||||||||||||||
| 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 | 2,681,100 | ||||||||||||||
| 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+ | 1,084,470 | ||||||||||||||
| 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 | 539,345 | ||||||||||||||
| 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 | 2,935,288 | ||||||||||||||
| 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 | 4,388,827 | ||||||||||||||
| 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 | 2,217,980 | ||||||||||||||
| 500 | Stamford, Connecticut, Water Pollution Control System and Facility Revenue Bonds, Series 2013A, 5.250%, 8/15/43 | 8/23 at 100.00 | AA+ | 538,820 | ||||||||||||||
| 35,050 | Total Water and Sewer | 37,563,426 | ||||||||||||||||
| $ | 264,625 | Total Municipal Bonds (cost $270,285,801) | 281,265,523 | |||||||||||||||
| Shares | Description (1) | Value | ||||||||||||||||||||
COMMON STOCKS – 0.1% | ||||||||||||||||||||||
Airlines – 0.1% | ||||||||||||||||||||||
| 5,706 | American Airlines Group Inc., (5) | $ | 210,723 | |||||||||||||||||||
Total Common Stocks (cost $166,187) | 210,723 | |||||||||||||||||||||
| Shares | Description (1) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 0.0% | ||||||||||||||||||||||
Airlines – 0.0% | ||||||||||||||||||||||
| 5,164 | American Airlines Group Inc., (5) | 6.250 | % | 1/08/64 | N/R | $ | 143,559 | |||||||||||||||
Total Convertible Preferred Securities (cost $131,764) | 143,559 | |||||||||||||||||||||
Total Long-Term Investments (cost $270,583,752) | 281,619,805 | |||||||||||||||||||||
Other Assets Less Liabilities – 1.3% | 3,593,990 | |||||||||||||||||||||
Net Assets – 100% | $ | 285,213,795 | ||||||||||||||||||||
| Nuveen Investments | 35 |
Nuveen Connecticut Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the 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) | On November 28, 2011, AMR Corp. (“AMR”), the parent company of American Airlines Group, Inc. (“AAL”) filed for federal bankruptcy protection. On December 9, 2013, AMR emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement agreement established to meet AMR’s unsecured bond obligations, the bondholders, including the Fund, received a distribution of AAL preferred stock which is to be converted to AAL common stock over a 120-day period. Every 30 days, a quarter of the preferred stock will be converted to AAL common stock based on the 5-day volume-weighted average price and the amount of preferred shares tendered during the optional preferred conversion period. |
| (ETM) | Escrowed to maturity. |
See accompanying notes to financial statements.
| 36 | Nuveen Investments |
Nuveen Massachusetts Municipal Bond Fund
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 97.4% | ||||||||||||||||||
MUNICIPAL BONDS – 97.4% | ||||||||||||||||||
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) (4) | 9/14 at 100.00 | Caa3 | $ | 1,029,363 | ||||||||||||
Consumer Staples – 0.3% | ||||||||||||||||||
| 720 | Puerto Rico, The Children’s Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 | 5/14 at 100.00 | BBB+ | 715,248 | ||||||||||||||
Education and Civic Organizations – 32.2% | ||||||||||||||||||
| 1,270 | Massachusetts Development Finance Agency, Revenue Bonds, Bentley University, Series 2010, 5.000%, 7/01/28 | 7/20 at 100.00 | A3 | 1,347,394 | ||||||||||||||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Boston College Issue, Series 2013S, 5.000%, 7/01/32 | 7/23 at 100.00 | AA– | 3,349,470 | ||||||||||||||
| 1,500 | Massachusetts Development Finance Agency, Revenue Bonds, Boston College, Series 2010R-1, 5.000%, 7/01/40 | 7/20 at 100.00 | AA– | 1,594,875 | ||||||||||||||
| 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 | 1,015,658 | ||||||||||||||
| 1,015 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2008U-4, 5.600%, 10/01/35 | 10/19 at 100.00 | A1 | 1,155,638 | ||||||||||||||
| 750 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2009V-1, 5.000%, 10/01/29 | 10/19 at 100.00 | A1 | 831,848 | ||||||||||||||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Brandeis University, Series 2008N, 5.000%, 10/01/39 | 10/18 at 100.00 | A1 | 3,150,000 | ||||||||||||||
| 6,000 | Massachusetts Development Finance Agency, Revenue Bonds, Draper Laboratory, Series 2008, 5.875%, 9/01/30 | 9/18 at 100.00 | Aa3 | 6,773,160 | ||||||||||||||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Emerson College, Series 2010A, 5.000%, 1/01/40 | 1/20 at 100.00 | BBB+ | 1,005,210 | ||||||||||||||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Harvard University, Series 2010B-1, 5.000%, 10/15/40 | 10/20 at 100.00 | AAA | 3,330,600 | ||||||||||||||
Massachusetts Development Finance Agency, Revenue Bonds, Northeastern University, Series 2014A: | ||||||||||||||||||
| 1,125 | 5.000%, 3/01/39 | 3/24 at 100.00 | A2 | 1,189,901 | ||||||||||||||
| 1,850 | 5.000%, 3/01/44 | 3/24 at 100.00 | A2 | 1,939,836 | ||||||||||||||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Simmons College, Series 2013J, 5.250%, 10/01/39 | No Opt. Call | BBB+ | 1,031,510 | ||||||||||||||
| 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 | 1,053,590 | ||||||||||||||
| 3,500 | Massachusetts Development Finance Agency, Revenue Bonds, The Broad Institute, Series 2011A, 5.250%, 4/01/37 | 4/21 at 100.00 | AA– | 3,728,760 | ||||||||||||||
| 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 | 1,149,420 | ||||||||||||||
| Nuveen Investments | 37 |
Nuveen Massachusetts Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
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 | $ | 101,582 | ||||||||||||
| 3,090 | 5.000%, 10/01/37 – SYNCORA GTY Insured | 10/15 at 100.00 | Baa2 | 3,098,528 | ||||||||||||||
| 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+ | 933,700 | ||||||||||||||
| 2,400 | Massachusetts Development Finance Agency, Revenue Bonds, Worcester Polytechnic Institute, Series 2012, 5.000%, 9/01/50 | 9/22 at 100.00 | A+ | 2,484,912 | ||||||||||||||
Massachusetts Development Finance Authority, Revenue Bonds, Hampshire College, Series 2004: | ||||||||||||||||||
| 1,000 | 5.625%, 10/01/24 | 10/14 at 100.00 | BBB | 1,009,950 | ||||||||||||||
| 1,000 | 5.700%, 10/01/34 | 10/14 at 100.00 | BBB | 1,006,130 | ||||||||||||||
| 2,100 | Massachusetts Development Finance Authority, Revenue Bonds, WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 – AMBAC Insured | No Opt. Call | A | 2,437,050 | ||||||||||||||
| 6,000 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2013X, 5.000%, 10/01/48 | 10/23 at 100.00 | A1 | 6,263,760 | ||||||||||||||
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 | 2,767,725 | ||||||||||||||
| 2,500 | 5.250%, 7/01/29 (Alternative Minimum Tax) | 7/22 at 100.00 | AA | 2,527,575 | ||||||||||||||
| 1,515 | 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 | 1,617,990 | ||||||||||||||
| 1,585 | Massachusetts Educational Financing Authority, Education Loan Revenue Bonds, Series 2009I, 6.000%, 1/01/28 | 1/20 at 100.00 | AA | 1,700,784 | ||||||||||||||
| 1,430 | Massachusetts Educational Financing Authority, Educational Loan Revenue, Series 2011J, 5.625%, 7/01/33 (Alternative Minimum Tax) | 7/21 at 100.00 | AA | 1,489,159 | ||||||||||||||
| 800 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard University, Tender Option Bond Trust 2010A, 13.676%, 12/15/34 (IF) (5) | 12/19 at 100.00 | AAA | 1,078,512 | ||||||||||||||
| 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– | 1,083,970 | ||||||||||||||
| 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 | 3,343,740 | ||||||||||||||
| 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 | 1,028,860 | ||||||||||||||
| 90 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Williams College, Series 2007L, 5.000%, 7/01/31 | 7/16 at 100.00 | AA+ | 96,262 | ||||||||||||||
| 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 | 1,583,310 | ||||||||||||||
| 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 | 308,639 | ||||||||||||||
| 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 | 8,076,073 | ||||||||||||||
| 72,415 | Total Education and Civic Organizations | 77,685,081 | ||||||||||||||||
| 38 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care – 16.3% | ||||||||||||||||||
| $ | 2,340 | Massachusetts Development Finance Agency, Hospital Revenue Bonds, Cape Cod Healthcare Obligated Group, Series 2013, 5.250%, 11/15/41 | 11/23 at 100.00 | A– | $ | 2,437,414 | ||||||||||||
Massachusetts Development Finance Agency, Revenue Bonds, Berkshire Health Systems, Series 2012G: | ||||||||||||||||||
| 3,005 | 5.000%, 10/01/28 | 10/21 at 100.00 | A– | 3,177,788 | ||||||||||||||
| 500 | 5.000%, 10/01/30 | 10/21 at 100.00 | A– | 523,105 | ||||||||||||||
| 1,320 | Massachusetts Development Finance Agency, Revenue Bonds, Milford Regional Medical Center Issue, Series 2014F, 5.750%, 7/15/43 | 7/23 at 100.00 | BBB– | 1,375,255 | ||||||||||||||
| 1,431 | Massachusetts Development Finance Agency, Revenue Bonds, Northern Berkshire Community Services Inc., Series 2012A, 6.000%, 2/15/43 (4) | 5/14 at 100.00 | N/R | 1,106,157 | ||||||||||||||
| 907 | Massachusetts Development Finance Agency, Revenue Bonds, Northern Berkshire Community Services Inc., Series 2012B, 0.000%, 2/15/43 | 1/43 at 102.19 | D | 90,911 | ||||||||||||||
| 1,646 | Massachusetts Development Finance Agency, Revenue Bonds, Northern Berkshire Community Services Inc., Series 2012C, 0.000%, 2/15/43 | 5/14 at 100.00 | N/R | 16 | ||||||||||||||
| 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 | 1,039,280 | ||||||||||||||
| 3,800 | Massachusetts Development Finance Agency, Revenue Bonds, The Lowell General Hospital, Series 2013G, 5.000%, 7/01/44 | 7/23 at 100.00 | BBB+ | 3,764,584 | ||||||||||||||
| 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 | 4,215 | ||||||||||||||
| 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+ | 2,252,688 | ||||||||||||||
| 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+ | 3,047,460 | ||||||||||||||
| 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– | 1,035,190 | ||||||||||||||
| 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 | 1,121,840 | ||||||||||||||
| 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 | 385,235 | ||||||||||||||
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 | 548,330 | ||||||||||||||
| 100 | 5.375%, 2/01/27 – NPFG Insured | 8/18 at 100.00 | A | 110,996 | ||||||||||||||
| 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 | 1,666,581 | ||||||||||||||
| 1,500 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard Pilgrim Healthcare, Series 1998A, 4.750%, 7/01/22 – AGM Insured | 7/14 at 100.00 | AA– | 1,502,580 | ||||||||||||||
| 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+ | 3,593,494 | ||||||||||||||
| 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+ | 2,179,940 | ||||||||||||||
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– | 2,003,810 | ||||||||||||||
| 1,000 | 5.000%, 7/15/37 | 7/17 at 100.00 | BBB– | 958,700 | ||||||||||||||
| Nuveen Investments | 39 |
Nuveen Massachusetts Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 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+ | $ | 1,400,028 | ||||||||||||
| 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+ | 4,067,846 | ||||||||||||||
| 42,739 | Total Health Care | 39,393,443 | ||||||||||||||||
Housing/Multifamily – 3.3% | ||||||||||||||||||
| 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– | 1,701,486 | ||||||||||||||
| 3,125 | Massachusetts Development Finance Authority, Multifamily Housing Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 | 7/17 at 100.00 | BB | 3,159,281 | ||||||||||||||
| 480 | Massachusetts Housing Finance Agency, Housing Revenue Bonds, Series 2003S, 5.050%, 12/01/23 (Alternative Minimum Tax) | 5/14 at 100.00 | AA– | 480,374 | ||||||||||||||
| 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 | 2,630,749 | ||||||||||||||
| 7,715 | Total Housing/Multifamily | 7,971,890 | ||||||||||||||||
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 | 164,304 | ||||||||||||||
| 400 | Massachusetts Development Finance Agency, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2003, 5.450%, 6/01/14 | No Opt. Call | A– | 405,144 | ||||||||||||||
| 565 | Total Industrials | 569,448 | ||||||||||||||||
Long-Term Care – 3.6% | ||||||||||||||||||
| 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– | 1,368,180 | ||||||||||||||
| 240 | Massachusetts Development Finance Agency, Revenue Bonds, Carleton-Willard Village, Series 2010, 5.625%, 12/01/30 | 12/19 at 100.00 | A– | 253,171 | ||||||||||||||
Massachusetts Development Finance Agency, Revenue Bonds, Loomis Communities, Series 2013A: | ||||||||||||||||||
| 240 | 5.250%, 1/01/26 | 1/23 at 100.00 | BBB– | 243,372 | ||||||||||||||
| 790 | 5.750%, 1/01/28 | 1/23 at 100.00 | BBB– | 797,015 | ||||||||||||||
| 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 | 1,007,840 | ||||||||||||||
| 4,220 | Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007, 5.250%, 10/01/26 | 4/14 at 102.00 | N/R | 4,222,532 | ||||||||||||||
| 40 | Massachusetts Development Finance Authority, First Mortgage Revenue Bonds, Berkshire Retirement Community – Edgecombe Project, Series 2001A, 6.750%, 7/01/21 | 7/14 at 100.00 | BBB | 40,092 | ||||||||||||||
| 655 | Massachusetts Industrial Finance Agency, First Mortgage Revenue Bonds, Berkshire Retirement Community, Series 1994B, 4.750%, 7/01/17 | 5/14 at 100.00 | BBB | 655,976 | ||||||||||||||
| 8,685 | Total Long-Term Care | 8,588,178 | ||||||||||||||||
Tax Obligation/General – 4.7% | ||||||||||||||||||
| 500 | Ashland, Massachusetts, General Obligation Bonds, Series 2004, 5.250%, 5/15/23 – AMBAC Insured | 5/15 at 100.00 | Aa2 | 528,465 | ||||||||||||||
| 1,045 | Boston, Massachusetts, General Obligation Bonds, Series 2013A, 4.000%, 3/01/25 | 3/23 at 100.00 | Aaa | 1,152,886 | ||||||||||||||
| 40 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 1,750 | Hudson, Massachusetts, General Obligation Bonds, Municipal Purpose Loan Series 2011, 5.000%, 2/15/32 | 2/20 at 100.00 | AA | $ | 1,883,823 | ||||||||||||
| 1,005 | Massachusetts Bay Transportation Authority, General Obligation Transportation System Bonds, Series 1991A, 7.000%, 3/01/21 | No Opt. Call | AA+ | 1,277,486 | ||||||||||||||
| 360 | Newburyport, Massachusetts, General Obligation Bonds, Municipal Purpose Loan Series 2013, 4.000%, 1/15/30 | 1/23 at 100.00 | AA+ | 371,542 | ||||||||||||||
| 1,000 | North Reading, Massachusetts, General Obligation Bonds, Series 2012, 5.000%, 5/15/35 – AMBAC Insured | 5/22 at 100.00 | Aa2 | 1,088,720 | ||||||||||||||
Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A: | ||||||||||||||||||
| 1,490 | 5.500%, 7/01/17 – AGM Insured | No Opt. Call | AA– | 1,493,114 | ||||||||||||||
| 480 | 5.500%, 7/01/19 – AGM Insured | No Opt. Call | AA– | 476,962 | ||||||||||||||
| 2,000 | Quincy, Massachusetts, General Obligation Bonds, Series 2011, 5.125%, 12/01/33 | 12/20 at 100.00 | Aa2 | 2,168,740 | ||||||||||||||
| 690 | Westfield, Massachusetts, General Obligation Bonds, Series 2004, 5.000%, 8/01/19 – AMBAC Insured | 8/14 at 100.50 | AA | 706,877 | ||||||||||||||
| 120 | Worcester, Massachusetts, General Obligation Bonds, Series 2001A, 5.500%, 8/15/18 – FGIC Insured | 8/14 at 100.00 | AA– | 120,542 | ||||||||||||||
| 10,440 | Total Tax Obligation/General | 11,269,157 | ||||||||||||||||
Tax Obligation/Limited – 12.2% | ||||||||||||||||||
| 1,500 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | 1,524,090 | ||||||||||||||
| 800 | Government of Guam, Business Privilege Tax Bonds, Series 2012B-1, 5.000%, 1/01/37 | 1/22 at 100.00 | A | 809,520 | ||||||||||||||
| 680 | Martha’s Vineyard Land Bank, Massachusetts, Revenue Bonds, Series 2002, 5.000%, 5/01/32 – AMBAC Insured | 5/14 at 100.00 | A– | 682,407 | ||||||||||||||
| 395 | Martha’s Vineyard Land Bank, Massachusetts, Revenue Bonds, Series 2004, 5.000%, 5/01/26 – AMBAC Insured | 5/14 at 100.00 | A– | 397,797 | ||||||||||||||
| 2,500 | Massachusetts College Building Authority, Project Revenue Bonds, Series 2008A, 5.000%, 5/01/33 – AGC Insured | 5/18 at 100.00 | AA | 2,705,450 | ||||||||||||||
Massachusetts College Building Authority, Project Revenue Refunding Bonds, Series 2003B: | ||||||||||||||||||
| 2,025 | 5.375%, 5/01/22 – SYNCORA GTY Insured | No Opt. Call | Aa2 | 2,489,231 | ||||||||||||||
| 1,125 | 5.375%, 5/01/23 – SYNCORA GTY Insured | No Opt. Call | Aa2 | 1,387,159 | ||||||||||||||
| 1,310 | Massachusetts College Building Authority, Revenue Bonds, Refunding Series 2011A, 5.000%, 5/01/24 | No Opt. Call | AA | 1,565,961 | ||||||||||||||
| 1,145 | Massachusetts College Building Authority, Revenue Bonds, Refunding Series 2012B, 5.000%, 5/01/37 | 5/22 at 100.00 | AA | 1,240,298 | ||||||||||||||
| 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+ | 3,415,313 | ||||||||||||||
| 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+ | 1,591,940 | ||||||||||||||
| 2,000 | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2011B, 5.000%, 10/15/41 | 10/21 at 100.00 | AA+ | 2,152,800 | ||||||||||||||
| 1,130 | Massachusetts State, Special Obligation Dedicated Tax Revenue Bonds, Series 2005, 5.000%, 1/01/20 – FGIC Insured | No Opt. Call | A1 | 1,317,015 | ||||||||||||||
| 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 | 1,600,451 | ||||||||||||||
| Nuveen Investments | 41 |
Nuveen Massachusetts Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 3,500 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 5.000%, 10/01/32 | No Opt. Call | BBB+ | $ | 3,537,590 | ||||||||||||
| 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 | 25,655 | ||||||||||||||
| 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 | 1,667,721 | ||||||||||||||
| 1,130 | 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 | 1,248,074 | ||||||||||||||
| 27,090 | Total Tax Obligation/Limited | 29,358,472 | ||||||||||||||||
Transportation – 6.6% | ||||||||||||||||||
| 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+ | 1,958,073 | ||||||||||||||
| 2,000 | Massachusetts Port Authority, Airport System Revenue Bonds, Series 2010A, 5.000%, 7/01/30 | 7/20 at 100.00 | AA | 2,274,880 | ||||||||||||||
| 865 | Massachusetts Port Authority, Revenue Bonds, Series 2003C, 5.000%, 7/01/18 – NPFG Insured | 5/14 at 100.00 | AA– | 868,590 | ||||||||||||||
| 2,750 | Massachusetts Port Authority, Revenue Bonds, Series 2012B, 5.000%, 7/01/32 | No Opt. Call | AA | 3,019,968 | ||||||||||||||
| 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 | 2,647,424 | ||||||||||||||
| 500 | Massachusetts Port Authority, Special Facilities Revenue Bonds, ConRac Project, Series 2011A, 5.125%, 7/01/41 | 7/21 at 100.00 | A | 520,115 | ||||||||||||||
| 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) | 7/14 at 100.00 | N/R | 3,873,336 | ||||||||||||||
| 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+ | 866,019 | ||||||||||||||
| 15,435 | Total Transportation | 16,028,405 | ||||||||||||||||
U.S. Guaranteed – 8.3% (6) | ||||||||||||||||||
Fall River, Massachusetts, General Obligation Bonds, Series 2003: | ||||||||||||||||||
| 190 | 5.250%, 2/01/17 (Pre-refunded 4/01/14) – AGM Insured | 4/14 at 100.00 | AA– (6) | 190,899 | ||||||||||||||
| 120 | 5.000%, 2/01/21 (Pre-refunded 4/01/14) – AGM Insured | 4/14 at 100.00 | AA– (6) | 120,540 | ||||||||||||||
| 905 | 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) | 994,314 | ||||||||||||||
| 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 | 88,361 | ||||||||||||||
| 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) | 1,515,470 | ||||||||||||||
| 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 | BBB+ (6) | 615,660 | ||||||||||||||
| 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) | 3,272,876 | ||||||||||||||
| 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) | 343,545 | ||||||||||||||
| 42 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed (6) (continued) | ||||||||||||||||||
| $ | 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) | $ | 688,175 | ||||||||||||
Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2005A: | ||||||||||||||||||
| 5,000 | 5.000%, 8/15/18 (Pre-refunded 8/15/15) – AGM Insured | 8/15 at 100.00 | AA+ (6) | 5,352,950 | ||||||||||||||
| 3,200 | 5.000%, 8/15/20 (Pre-refunded 8/15/15) – AGM Insured | 8/15 at 100.00 | AA+ (6) | 3,425,888 | ||||||||||||||
| 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) | 1,669,560 | ||||||||||||||
| 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 | 1,427,207 | ||||||||||||||
| 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 | Baa1 (6) | 355,852 | ||||||||||||||
| 18,555 | Total U.S. Guaranteed | 20,061,297 | ||||||||||||||||
Utilities – 2.3% | ||||||||||||||||||
| 1,435 | Guam Power Authority, Revenue Bonds, Series 2010A, 5.000%, 10/01/37 – AGM Insured | 10/20 at 100.00 | AA– | 1,471,779 | ||||||||||||||
| 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+ | 1,467,071 | ||||||||||||||
| 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 | 2,686,444 | ||||||||||||||
| 5,895 | Total Utilities | 5,625,294 | ||||||||||||||||
Water and Sewer – 7.0% | ||||||||||||||||||
| 1,700 | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 2009B, 5.375%, 11/01/39 – AGM Insured | 11/19 at 100.00 | AA– | 1,795,880 | ||||||||||||||
| 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+ | 1,112,710 | ||||||||||||||
| 60 | Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Series 2003-9, 5.000%, 8/01/22 | 5/14 at 100.00 | AAA | 60,250 | ||||||||||||||
| 380 | Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Series 2004-10, 5.000%, 8/01/26 | 8/14 at 100.00 | AAA | 387,216 | ||||||||||||||
| 1,000 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2002J, 5.250%, 8/01/19 – AGM Insured | No Opt. Call | AA+ | 1,212,060 | ||||||||||||||
Massachusetts Water Resources Authority, General Revenue Bonds, Series 2005A: | ||||||||||||||||||
| 1,650 | 5.000%, 8/01/27 – NPFG Insured | 8/17 at 100.00 | AA+ | 1,841,252 | ||||||||||||||
| 750 | 5.000%, 8/01/28 – NPFG Insured | 8/17 at 100.00 | AA+ | 824,250 | ||||||||||||||
| 2,080 | 5.000%, 8/01/29 – NPFG Insured | 8/17 at 100.00 | AA+ | 2,285,920 | ||||||||||||||
| 2,500 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2005B, 5.000%, 8/01/35 – NPFG Insured | 8/17 at 100.00 | AA+ | 2,722,850 | ||||||||||||||
| 2,000 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2006A, 4.000%, 8/01/46 | 8/16 at 100.00 | AA+ | 2,002,020 | ||||||||||||||
| 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– | 1,643,385 | ||||||||||||||
| 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+ | 1,014,710 | ||||||||||||||
| 15,620 | Total Water and Sewer | 16,902,503 | ||||||||||||||||
| $ | 227,299 | Total Long-Term Investments (cost $225,360,989) | 235,197,779 | |||||||||||||||
Other Assets Less Liabilities – 2.6% | 6,203,304 | |||||||||||||||||
Net Assets – 100% | $ | 241,401,083 | ||||||||||||||||
| Nuveen Investments | 43 |
Nuveen Massachusetts Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the 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. |
| (IF) | Inverse floating rate investment. |
See accompanying notes to financial statements.
| 44 | Nuveen Investments |
Nuveen New Jersey Municipal Bond Fund
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 98.6% | ||||||||||||||||||
MUNICIPAL BONDS – 98.6% | ||||||||||||||||||
Consumer Discretionary – 0.1% | ||||||||||||||||||
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 | $ | 190,627 | ||||||||||||
| 240 | 5.125%, 1/01/37 | 1/15 at 100.00 | Caa1 | 162,876 | ||||||||||||||
| 520 | Total Consumer Discretionary | 353,503 | ||||||||||||||||
Consumer Staples – 3.5% | ||||||||||||||||||
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 | 2,913,930 | ||||||||||||||
| 7,280 | 4.750%, 6/01/34 | 6/17 at 100.00 | B2 | 5,552,236 | ||||||||||||||
| 1,740 | 5.000%, 6/01/41 | 6/17 at 100.00 | B2 | 1,337,834 | ||||||||||||||
| 12,020 | Total Consumer Staples | 9,804,000 | ||||||||||||||||
Education and Civic Organizations – 11.9% | ||||||||||||||||||
| 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 | 383,929 | ||||||||||||||
New Jersey Education Facilities Authority Revenue Bonds, The College of New Jersey Issue, Series 2013A: | ||||||||||||||||||
| 770 | 5.000%, 7/01/38 | 7/23 at 100.00 | AA | 816,847 | ||||||||||||||
| 1,015 | 5.000%, 7/01/43 | 7/23 at 100.00 | AA | 1,067,141 | ||||||||||||||
| 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 | 1,006,070 | ||||||||||||||
| 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– | 1,987,973 | ||||||||||||||
| 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 | 1,596,555 | ||||||||||||||
| 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– | 45,594 | ||||||||||||||
| 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 | 1,482,082 | ||||||||||||||
| 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– | 1,089,979 | ||||||||||||||
New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo College, Series 2012B: | ||||||||||||||||||
| 525 | 5.000%, 7/01/37 | 7/22 at 100.00 | A | 555,975 | ||||||||||||||
| 100 | 5.000%, 7/01/42 | 7/22 at 100.00 | A | 105,180 | ||||||||||||||
| 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+ | 2,190,400 | ||||||||||||||
New Jersey Educational Facilities Authority, Revenue Bonds, Rider University, Series 2012A: | ||||||||||||||||||
| 250 | 5.000%, 7/01/32 | 7/21 at 100.00 | BBB+ | 257,805 | ||||||||||||||
| 230 | 5.000%, 7/01/37 | 7/21 at 100.00 | BBB+ | 234,444 | ||||||||||||||
| Nuveen Investments | 45 |
Nuveen New Jersey Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 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+ | $ | 501,405 | ||||||||||||
| 740 | New Jersey Educational Facilities Authority, Revenue Bonds, Seton Hall University, Series 2013D, 5.000%, 7/01/38 | 7/23 at 100.00 | A | 793,295 | ||||||||||||||
| 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– | 4,297,753 | ||||||||||||||
| 530 | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2010-1A, 5.000%, 12/01/25 | 12/19 at 100.00 | AA | 557,518 | ||||||||||||||
| 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 | 539,753 | ||||||||||||||
| 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 | 2,152,795 | ||||||||||||||
| 400 | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2012-1B, 5.750%, 12/01/39 (Alternative Minimum Tax) | 12/22 at 100.00 | A | 406,700 | ||||||||||||||
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 | 1,533,744 | ||||||||||||||
| 1,000 | 4.000%, 12/01/28 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 960,450 | ||||||||||||||
| 1,585 | 4.000%, 12/01/31 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 1,463,494 | ||||||||||||||
| 1,670 | 4.125%, 12/01/35 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 1,509,513 | ||||||||||||||
| 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+ | 1,502,905 | ||||||||||||||
| 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– | 382,344 | ||||||||||||||
| 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– | 121,472 | ||||||||||||||
| 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 | 5/14 at 100.00 | BBB– | 1,097,655 | ||||||||||||||
| 2,320 | Rutgers State University, New Jersey, Revenue Bonds, Refunding Series 2013L, 5.000%, 5/01/43 | 5/23 at 100.00 | AA– | 2,503,048 | ||||||||||||||
| 32,715 | Total Education and Civic Organizations | 33,143,818 | ||||||||||||||||
Financials – 0.9% | ||||||||||||||||||
| 750 | New Jersey Economic Development Authority, Industrial Development Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series 1996, 7.000%, 10/01/14 | 5/14 at 100.00 | Baa3 | 763,170 | ||||||||||||||
New Jersey Economic Development Authority, Revenue Refunding Bonds, Kapkowski Road Landfill Project, Series 2002: | ||||||||||||||||||
| 1,000 | 5.750%, 10/01/21 | No Opt. Call | Ba2 | 1,089,650 | ||||||||||||||
| 500 | 6.500%, 4/01/28 | No Opt. Call | Ba2 | 570,805 | ||||||||||||||
| 2,250 | Total Financials | 2,423,625 | ||||||||||||||||
Health Care – 16.8% | ||||||||||||||||||
| 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 | 831,192 | ||||||||||||||
| 46 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 2,455 | 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 | $ | 2,471,375 | ||||||||||||
| 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 | 404,512 | ||||||||||||||
| 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 | 2,973,380 | ||||||||||||||
| 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+ | 4,660,853 | ||||||||||||||
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+ | 855,184 | ||||||||||||||
| 75 | 6.250%, 7/01/35 | 7/21 at 100.00 | BB+ | 78,469 | ||||||||||||||
| 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+ | 393,581 | ||||||||||||||
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 | 811,744 | ||||||||||||||
| 440 | 5.500%, 7/01/43 | 7/23 at 100.00 | BBB | 444,123 | ||||||||||||||
| 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+ | 1,196,992 | ||||||||||||||
| 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 | 1,545,930 | ||||||||||||||
| 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 | 141,648 | ||||||||||||||
| 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 | 2,044,400 | ||||||||||||||
| 1,510 | 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 | 1,528,981 | ||||||||||||||
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 | 1,189,350 | ||||||||||||||
| 1,080 | 5.000%, 7/01/42 | 7/22 at 100.00 | A3 | 1,101,330 | ||||||||||||||
| 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 | 581,064 | ||||||||||||||
| 5,350 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Meridian Health, Series 2007, 5.000%, 7/01/38 – AGC Insured | 7/18 at 100.00 | AA– | 5,539,442 | ||||||||||||||
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 | 2,527,650 | ||||||||||||||
| 800 | 5.000%, 7/01/35 – RAAI Insured | 7/15 at 100.00 | N/R | 802,312 | ||||||||||||||
| 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+ | 5,096,757 | ||||||||||||||
| 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+ | 379,307 | ||||||||||||||
| 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+ | 762,255 | ||||||||||||||
| Nuveen Investments | 47 |
Nuveen New Jersey Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 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– | $ | 3,122,773 | ||||||||||||
| 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 | 503,894 | ||||||||||||||
New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Somerset Medical Center, Series 2003: | ||||||||||||||||||
| 1,180 | 5.500%, 7/01/23 | 5/14 at 100.00 | Ba2 | 1,180,543 | ||||||||||||||
| 1,785 | 5.500%, 7/01/33 | 5/14 at 100.00 | Ba2 | 1,785,232 | ||||||||||||||
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 | 879,863 | ||||||||||||||
| 100 | 5.000%, 7/01/26 | 7/16 at 100.00 | A2 | 102,637 | ||||||||||||||
| 810 | 5.000%, 7/01/36 | 7/16 at 100.00 | A2 | 818,141 | ||||||||||||||
| 56,900 | Total Health Care | 46,754,914 | ||||||||||||||||
Housing/Multifamily – 4.2% | ||||||||||||||||||
| 925 | 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) | 5/14 at 100.00 | Aa1 | 938,968 | ||||||||||||||
New Jersey Economic Development Authority, Student Housing 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 | 2,213,913 | ||||||||||||||
| 1,100 | 5.875%, 6/01/42 | 6/20 at 100.00 | Baa3 | 1,179,134 | ||||||||||||||
| 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+ | 2,957,880 | ||||||||||||||
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– | 2,226,398 | ||||||||||||||
| 1,125 | 4.600%, 11/01/38 (Alternative Minimum Tax) | 11/22 at 100.00 | AA– | 1,119,341 | ||||||||||||||
| 1,125 | 4.750%, 11/01/46 (Alternative Minimum Tax) | 11/22 at 100.00 | AA– | 1,126,868 | ||||||||||||||
| 11,580 | Total Housing/Multifamily | 11,762,502 | ||||||||||||||||
Housing/Single Family – 1.2% | ||||||||||||||||||
| 1,655 | 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 | 1,663,920 | ||||||||||||||
| 1,520 | 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 | 1,597,657 | ||||||||||||||
| 3,175 | Total Housing/Single Family | 3,261,577 | ||||||||||||||||
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 | A– | 1,681,016 | ||||||||||||||
Long-Term Care – 2.4% | ||||||||||||||||||
| 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 | 617,370 | ||||||||||||||
| 48 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Long-Term Care (continued) | ||||||||||||||||||
| $ | 730 | New Jersey Economic Development Authority, First Mortgage Fixed Rate Revenue Bonds, Cadbury Corporation, Series 1998A, 5.500%, 7/01/18 – ACA Insured | 7/14 at 100.00 | N/R | $ | 730,650 | ||||||||||||
| 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– | 1,987,680 | ||||||||||||||
| 600 | New Jersey Economic Development Authority, Revenue Bonds, Masonic Charity Foundation of New Jersey, Series 2001, 5.875%, 6/01/18 | 5/14 at 100.00 | A– | 602,274 | ||||||||||||||
| 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– | 141,320 | ||||||||||||||
| 1,095 | 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– | 1,100,606 | ||||||||||||||
| 1,500 | New Jersey Economic Development Authority, Revenue Bonds, United Methodist Homes of New Jersey Obligated Group, Series 1998, 5.125%, 7/01/25 | 7/14 at 100.00 | BBB– | 1,484,655 | ||||||||||||||
| 6,725 | Total Long-Term Care | 6,664,555 | ||||||||||||||||
Tax Obligation/General – 7.4% | ||||||||||||||||||
| 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– | 641,575 | ||||||||||||||
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– | 816,359 | ||||||||||||||
| 1,270 | 4.000%, 9/15/27 | 9/22 at 100.00 | AA– | 1,365,783 | ||||||||||||||
| 525 | Middletown Township Board of Education, Monmouth County, New Jersey, Refunding Series 2010, 5.000%, 8/01/27 | 8/20 at 100.00 | AA | 590,231 | ||||||||||||||
| 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 | 664,578 | ||||||||||||||
| 1,000 | 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– | 1,084,080 | ||||||||||||||
| 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+ | 617,390 | ||||||||||||||
| 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 | 3,188,955 | ||||||||||||||
Readington Township, New Jersey, General Obligation Bonds, General Improvement Series 2011: | ||||||||||||||||||
| 875 | 5.125%, 1/15/28 | 1/21 at 100.00 | AA | 957,583 | ||||||||||||||
| 875 | 5.250%, 1/15/30 | 1/21 at 100.00 | AA | 954,188 | ||||||||||||||
South Brunswick Township Board of Education, Middlesex County, New Jersey, General Obligation Bonds, Refunding Series 2012: | ||||||||||||||||||
| 450 | 4.000%, 12/01/23 | 6/22 at 100.00 | AA+ | 495,653 | ||||||||||||||
| 305 | 4.000%, 12/01/24 | 6/22 at 100.00 | AA+ | 332,609 | ||||||||||||||
| 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+ | 3,909,859 | ||||||||||||||
| 2,515 | Union County Utilities Authority, New Jersey, Solid Waste System County Deficiency Revenue Bonds, Series 2011A, 5.000%, 6/15/41 | 6/21 at 100.00 | AA+ | 2,678,400 | ||||||||||||||
| 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 | 2,276,732 | ||||||||||||||
| 19,000 | Total Tax Obligation/General | 20,573,975 | ||||||||||||||||
| Nuveen Investments | 49 |
Nuveen New Jersey Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited – 19.3% | ||||||||||||||||||
| $ | 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 | $ | 799,520 | ||||||||||||
| 825 | Essex County Improvement Authority, New Jersey, Project Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 – AMBAC Insured | No Opt. Call | Aa2 | 999,628 | ||||||||||||||
| 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 | 3,122,450 | ||||||||||||||
| 1,395 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.250%, 1/01/36 | 1/22 at 100.00 | A | 1,433,237 | ||||||||||||||
New Jersey Economic Development Authority, Cigarette Tax Revenue Refunding Bonds, Series 2012: | ||||||||||||||||||
| 1,310 | 5.000%, 6/15/19 | No Opt. Call | BBB+ | 1,514,491 | ||||||||||||||
| 700 | 5.000%, 6/15/21 | No Opt. Call | BBB+ | 797,272 | ||||||||||||||
| 2,850 | 5.000%, 6/15/25 | 6/22 at 100.00 | BBB+ | 3,069,023 | ||||||||||||||
| 450 | 5.000%, 6/15/28 | No Opt. Call | BBB+ | 475,781 | ||||||||||||||
| 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– | 1,038,030 | ||||||||||||||
| 1,000 | New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A, 5.000%, 7/01/29 – NPFG Insured | 7/14 at 100.00 | A | 1,012,620 | ||||||||||||||
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 | 86,971 | ||||||||||||||
| 145 | 5.125%, 6/15/37 | 6/17 at 100.00 | Baa3 | 146,147 | ||||||||||||||
| 2,000 | New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Refunding Series 2013NN, 5.000%, 3/01/22 | No Opt. Call | A+ | 2,329,400 | ||||||||||||||
| 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+ | 876,862 | ||||||||||||||
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+ | 3,540,717 | ||||||||||||||
| 1,950 | 5.250%, 10/01/38 | 10/18 at 100.00 | A+ | 2,020,610 | ||||||||||||||
| 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+ | 2,263,800 | ||||||||||||||
| 14,635 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital Appreciation Series 2010A, 0.000%, 12/15/30 | No Opt. Call | A+ | 6,447,592 | ||||||||||||||
| 1,900 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding Series 2006A, 5.500%, 12/15/22 | No Opt. Call | A+ | 2,306,068 | ||||||||||||||
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: | ||||||||||||||||||
| 4,000 | 0.000%, 12/15/32 – AGM Insured | No Opt. Call | AA– | 1,555,000 | ||||||||||||||
| 4,000 | 0.000%, 12/15/33 – AGM Insured | No Opt. Call | AA– | 1,447,720 | ||||||||||||||
| 5,450 | 0.000%, 12/15/34 – AGM Insured | No Opt. Call | AA– | 1,828,802 | ||||||||||||||
| 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+ | 561,625 | ||||||||||||||
| 5,505 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2009A, 0.000%, 12/15/39 | No Opt. Call | A+ | 1,334,302 | ||||||||||||||
| 2,750 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2010D, 5.000%, 12/15/24 | No Opt. Call | A+ | 3,217,913 | ||||||||||||||
| 50 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 1,500 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2012AA, 5.000%, 6/15/38 | No Opt. Call | A+ | $ | 1,576,275 | ||||||||||||
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 | 1,692,881 | ||||||||||||||
| 2,000 | 3.500%, 5/01/35 | 5/22 at 100.00 | Aa3 | 1,732,380 | ||||||||||||||
| 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 | BB+ | 349,845 | ||||||||||||||
| 730 | 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+ | 567,692 | ||||||||||||||
| 470 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A, 5.250%, 8/01/57 | 8/17 at 100.00 | AA– | 386,354 | ||||||||||||||
| 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+ | 3,471,420 | ||||||||||||||
| 71,325 | Total Tax Obligation/Limited | 54,002,428 | ||||||||||||||||
Transportation – 15.2% | ||||||||||||||||||
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 | 1,374,302 | ||||||||||||||
| 500 | 5.000%, 1/01/27 – NPFG Insured | 1/15 at 100.00 | A1 | 514,720 | ||||||||||||||
| 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 | 1,168,134 | ||||||||||||||
Delaware River Joint Toll Bridge Commission, Pennsylvania, Revenue Bonds, Refunding Series 2012A: | ||||||||||||||||||
| 500 | 5.000%, 7/01/26 | 7/22 at 100.00 | A2 | 561,140 | ||||||||||||||
| 500 | 3.000%, 7/01/28 | 7/22 at 100.00 | A2 | 459,840 | ||||||||||||||
| 1,760 | Delaware River Port Authority, New Jersey and Pennsylvania, Revenue Bonds, Series 2013, 5.000%, 1/01/40 | 1/24 at 100.00 | A | 1,865,899 | ||||||||||||||
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 | 1,146,717 | ||||||||||||||
| 1,000 | 5.000%, 1/01/27 | No Opt. Call | BBB | 1,039,780 | ||||||||||||||
| 1,255 | New Jersey Economic Development Authority, Private Activity Bonds, The Goethals Bridge Replacement Project, Series 2013, 5.625%, 1/01/52 (Alternative Minimum Tax) | 1/24 at 100.00 | BBB– | 1,285,773 | ||||||||||||||
New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 1999: | ||||||||||||||||||
| 400 | 5.125%, 9/15/23 (Alternative Minimum Tax) | 3/14 at 100.00 | B | 394,796 | ||||||||||||||
| 800 | 5.250%, 9/15/29 (Alternative Minimum Tax) | 9/22 at 101.00 | B | 783,920 | ||||||||||||||
| 195 | New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 2000B, 5.625%, 11/15/30 (Alternative Minimum Tax) | 3/24 at 101.00 | B | 195,000 | ||||||||||||||
| 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 | 1,379,823 | ||||||||||||||
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: | ||||||||||||||||||
| 70 | 6.500%, 1/01/16 | No Opt. Call | A3 | 77,662 | ||||||||||||||
| 340 | 6.500%, 1/01/16 – NPFG Insured | No Opt. Call | A+ | 377,216 | ||||||||||||||
| 1,300 | New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.250%, 1/01/29 – AGM Insured | No Opt. Call | AA– | 1,532,557 | ||||||||||||||
| Nuveen Investments | 51 |
Nuveen New Jersey Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Transportation (continued) | ||||||||||||||||||
| $ | 3,500 | New Jersey Turnpike Authority, Revenue Bonds, Series 2009I, 5.000%, 1/01/35 | 1/20 at 100.00 | A+ | $ | 3,703,910 | ||||||||||||
| 1,380 | New Jersey Turnpike Authority, Revenue Bonds, Series 2012B, 5.000%, 1/01/28 | 1/23 at 100.00 | A+ | 1,544,537 | ||||||||||||||
| 5,000 | New Jersey Turnpike Authority, Revenue Bonds, Series 2013A, 5.000%, 1/01/43 | 7/22 at 100.00 | A+ | 5,276,948 | ||||||||||||||
| 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 | 943,992 | ||||||||||||||
| 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– | 2,174,120 | ||||||||||||||
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– | 2,648,425 | ||||||||||||||
| 500 | 5.000%, 12/01/34 | 6/15 at 101.00 | AA– | 526,440 | ||||||||||||||
| 420 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Forty Eighth Series 2007, Trust 2920, 18.112%, 8/15/32 – AGM Insured (IF) | 8/17 at 100.00 | AA | 574,090 | ||||||||||||||
| 1,810 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Seventy Ninth Series 2013, 5.000%, 12/01/43 | 12/23 at 100.00 | AA– | 1,957,225 | ||||||||||||||
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) | 6/14 at 100.00 | A | 2,012,500 | ||||||||||||||
| 3,125 | 5.750%, 12/01/25 – NPFG Insured (Alternative Minimum Tax) | 6/14 at 100.00 | A | 3,139,688 | ||||||||||||||
South Jersey Port Corporation, New Jersey, Marine Terminal Revenue Refunding Bonds, Series 2012Q: | ||||||||||||||||||
| 810 | 3.000%, 1/01/23 | No Opt. Call | A1 | 804,686 | ||||||||||||||
| 870 | 3.000%, 1/01/24 | 1/23 at 100.00 | A1 | 853,583 | ||||||||||||||
| 1,810 | South Jersey Transportation Authority, New Jersey, Transportation System Revenue Bonds, Refunding Series 2012, 5.000%, 11/01/22 | No Opt. Call | A– | 2,071,708 | ||||||||||||||
| 40,070 | Total Transportation | 42,389,131 | ||||||||||||||||
U.S. Guaranteed – 11.2% (4) | ||||||||||||||||||
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) | 415,955 | ||||||||||||||
| 920 | 5.000%, 4/01/35 (Pre-refunded 4/01/15) – AMBAC Insured | 4/15 at 100.00 | AA– (4) | 968,806 | ||||||||||||||
| 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) | 767,186 | ||||||||||||||
| 2,255 | New Jersey Building Authority, State Building Revenue Bonds, Series 2007A, 5.000%, 6/15/27 (Pre-refunded 6/15/16) | 6/16 at 100.00 | AA+ (4) | 2,496,916 | ||||||||||||||
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 | 1,825,174 | ||||||||||||||
| 2,070 | 5.750%, 6/15/34 (Pre-refunded 6/15/14) | 6/14 at 100.00 | Aaa | 2,104,797 | ||||||||||||||
| 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) | 467,309 | ||||||||||||||
| 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) | 465,347 | ||||||||||||||
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) | 1,940,650 | ||||||||||||||
| 525 | 5.000%, 7/01/32 (Pre-refunded 7/01/15) – FGIC Insured | 7/15 at 100.00 | A1 (4) | 558,269 | ||||||||||||||
| 52 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed (4) (continued) | ||||||||||||||||||
| $ | 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) | $ | 295,240 | ||||||||||||
| 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 | N/R (4) | 3,296,450 | ||||||||||||||
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) | 1,128,236 | ||||||||||||||
| 1,875 | 5.000%, 9/15/24 (Pre-refunded 9/15/15) – AMBAC Insured | 9/15 at 100.00 | A+ (4) | 2,014,706 | ||||||||||||||
| 4,495 | 5.000%, 9/15/26 (Pre-refunded 9/15/15) – AMBAC Insured | 9/15 at 100.00 | A+ (4) | 4,829,922 | ||||||||||||||
| 1,325 | 5.000%, 9/15/28 (Pre-refunded 9/15/15) – AMBAC Insured | 9/15 at 100.00 | A+ (4) | 1,423,726 | ||||||||||||||
| 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) | 1,021,225 | ||||||||||||||
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: | ||||||||||||||||||
| 35 | 6.500%, 1/01/16 (ETM) | No Opt. Call | A3 (4) | 39,013 | ||||||||||||||
| 200 | 6.500%, 1/01/16 – NPFG Insured (ETM) | No Opt. Call | AA– (4) | 222,934 | ||||||||||||||
| 50 | 6.500%, 1/01/16 (ETM) | No Opt. Call | AA+ (4) | 55,734 | ||||||||||||||
| 255 | 6.500%, 1/01/16 – NPFG Insured (ETM) | No Opt. Call | AA– (4) | 284,241 | ||||||||||||||
| 65 | 6.500%, 1/01/16 – AMBAC Insured (ETM) | No Opt. Call | A3 (4) | 68,979 | ||||||||||||||
| 40 | 6.500%, 1/01/16 – NPFG Insured (ETM) | No Opt. Call | AA– (4) | 42,449 | ||||||||||||||
| 5 | 6.500%, 1/01/16 – AMBAC Insured (ETM) | No Opt. Call | AA– (4) | 5,306 | ||||||||||||||
| 4,000 | Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 – AMBAC Insured (ETM) | No Opt. Call | Aaa | 4,650,360 | ||||||||||||||
| 28,365 | Total U.S. Guaranteed | 31,388,930 | ||||||||||||||||
Utilities – 0.9% | ||||||||||||||||||
New Jersey Economic Development Authority, Energy Facilities Revenue Bonds, UMM Energy Partners, LLC Project, Series 2012A: | ||||||||||||||||||
| 500 | 5.000%, 6/15/37 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 493,190 | ||||||||||||||
| 1,000 | 5.125%, 6/15/43 (Alternative Minimum Tax) | 6/22 at 100.00 | Baa3 | 981,330 | ||||||||||||||
| 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 | 1,013,626 | ||||||||||||||
| 2,460 | Total Utilities | 2,488,146 | ||||||||||||||||
Water and Sewer – 3.0% | ||||||||||||||||||
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 | 1,199,578 | ||||||||||||||
| 2,175 | 4.250%, 10/01/47 (Alternative Minimum Tax) | 10/22 at 100.00 | A | 1,997,324 | ||||||||||||||
| 1,770 | New Jersey Environmental Infrastructure Trust, Environmental Infrastructure Bonds, Tender Option Bond Trust 4729, Series A-R, 7.498%, 9/01/21 (IF) (5) | No Opt. Call | AAA | 2,275,123 | ||||||||||||||
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 | 1,669,005 | ||||||||||||||
| 1,210 | 5.000%, 6/01/42 – NPFG Insured | 6/22 at 100.00 | A | 1,270,427 | ||||||||||||||
| 7,695 | Total Water and Sewer | 8,411,457 | ||||||||||||||||
| $ | 296,460 | Total Investments (cost $263,922,191) | 275,103,577 | |||||||||||||||
Other Assets Less Liabilities – 1.4% | 3,806,682 | |||||||||||||||||
Net Assets – 100% | $ | 278,910,259 | ||||||||||||||||
| Nuveen Investments | 53 |
Nuveen New Jersey Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the 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.
| 54 | Nuveen Investments |
Nuveen New York Municipal Bond Fund
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 98.9% | ||||||||||||||||||
MUNICIPAL BONDS – 98.9% | ||||||||||||||||||
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 | $ | 665,219 | ||||||||||||
Consumer Staples – 2.3% | ||||||||||||||||||
| 390 | New York Counties Tobacco Trust II, Tobacco Settlement Pass-Through Bonds, Series 2001, 5.250%, 6/01/25 | 6/14 at 100.00 | A1 | 390,008 | ||||||||||||||
| 155 | Rensselaer Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2001A, 5.200%, 6/01/25 | 5/14 at 100.00 | A1 | 151,950 | ||||||||||||||
| 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– | 6,165,082 | ||||||||||||||
TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006: | ||||||||||||||||||
| 1,815 | 4.750%, 6/01/22 | 6/16 at 100.00 | BBB– | 1,800,807 | ||||||||||||||
| 1,325 | 5.000%, 6/01/26 | 6/16 at 100.00 | BB– | 1,217,516 | ||||||||||||||
| 7,335 | 5.125%, 6/01/42 | 6/16 at 100.00 | B | 5,785,188 | ||||||||||||||
| 17,670 | Total Consumer Staples | 15,510,551 | ||||||||||||||||
Education and Civic Organizations – 16.3% | ||||||||||||||||||
| 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 | 667,036 | ||||||||||||||
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+ | 533,135 | ||||||||||||||
| 1,000 | 5.000%, 4/01/27 | 4/17 at 100.00 | BB+ | 954,620 | ||||||||||||||
| 290 | 5.000%, 4/01/37 | 4/17 at 100.00 | BB+ | 255,969 | ||||||||||||||
| 1,000 | Allegany County Industrial Development Agency, New York, Revenue Bonds, Alfred University, Series 1998, 5.000%, 8/01/28 – NPFG Insured | 8/14 at 100.00 | Baa1 | 1,000,840 | ||||||||||||||
| 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– | 4,173,956 | ||||||||||||||
| 2,190 | Buffalo and Erie County Industrial Land Development Corporation, New York, Revenue Bonds, Enterprise Charter School Project, Series 2011A, 7.500%, 12/01/40 | 12/20 at 100.00 | B | 2,234,829 | ||||||||||||||
| 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+ | 1,077,908 | ||||||||||||||
Build NYC Resource Corporation, New York, Revenue Bonds, Bronx Charter School for Excellence, Series 2013A: | ||||||||||||||||||
| 1,630 | 5.000%, 4/01/33 | 4/23 at 100.00 | BBB– | 1,579,258 | ||||||||||||||
| 1,000 | 5.500%, 4/01/43 | 4/23 at 100.00 | BBB– | 998,500 | ||||||||||||||
| 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– | 217,548 | ||||||||||||||
| 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+ | 1,850,590 | ||||||||||||||
| 2,655 | Dormitory Authority of the State of New York, General Revenue Bonds, Manhattan College, Series 2007A, 5.000%, 7/01/32 – RAAI Insured | 7/17 at 100.00 | N/R | 2,679,214 | ||||||||||||||
| Nuveen Investments | 55 |
Nuveen New York Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 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– | $ | 1,245,174 | ||||||||||||
| 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 | 1,964,393 | ||||||||||||||
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 | 1,843,780 | ||||||||||||||
| 735 | 5.250%, 7/01/34 – FGIC Insured | No Opt. Call | A | 794,079 | ||||||||||||||
| 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 | 7/14 at 100.00 | A | 1,856,235 | ||||||||||||||
| 1,500 | Dormitory Authority of the State of New York, Lease Revenue Bonds, State University Dormitory Facilities, Series 2013A, 5.000%, 7/01/27 | 7/23 at 100.00 | Aa3 | 1,702,860 | ||||||||||||||
| 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 | 444,983 | ||||||||||||||
| 7,740 | 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 | 8,415,160 | ||||||||||||||
| 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– | 829,508 | ||||||||||||||
| 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– | 380,709 | ||||||||||||||
| 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– | 638,867 | ||||||||||||||
| 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– | 1,640,955 | ||||||||||||||
| 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 | 1,317,264 | ||||||||||||||
| 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 | Ba1 | 1,579,136 | ||||||||||||||
| 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 | 645,135 | ||||||||||||||
| 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 | 262,298 | ||||||||||||||
| 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+ | 1,235,148 | ||||||||||||||
| 2,660 | Madison County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Colgate University, Series 2005A, 5.000%, 7/01/40 – AMBAC Insured | 7/15 at 100.00 | AA+ | 2,699,315 | ||||||||||||||
| 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 | AA– | 2,609,575 | ||||||||||||||
| 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 | 1,229,282 | ||||||||||||||
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– | 5,686,649 | ||||||||||||||
| 2,000 | 5.000%, 8/01/36 | 8/16 at 100.00 | A– | 2,018,320 | ||||||||||||||
| 56 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
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 | $ | 3,826,320 | ||||||||||||
| 1,060 | 5.000%, 1/01/39 – AMBAC Insured | 1/17 at 100.00 | Ba1 | 974,490 | ||||||||||||||
| 1,795 | 4.750%, 1/01/42 – AMBAC Insured | 1/17 at 100.00 | Ba1 | 1,554,901 | ||||||||||||||
| 5,170 | 5.000%, 1/01/46 – AMBAC Insured | 1/17 at 100.00 | Ba1 | 4,630,304 | ||||||||||||||
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 | 730,404 | ||||||||||||||
| 2,500 | 5.000%, 3/01/36 – NPFG Insured | 9/16 at 100.00 | A | 2,535,550 | ||||||||||||||
| 2,140 | 4.500%, 3/01/39 – FGIC Insured | 9/16 at 100.00 | BBB | 2,122,538 | ||||||||||||||
| 1,150 | 4.750%, 3/01/46 – NPFG Insured | 9/16 at 100.00 | A | 1,155,773 | ||||||||||||||
| 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+ | 2,080,440 | ||||||||||||||
| 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 | 786,835 | ||||||||||||||
| 5,375 | New York City Trust for Cultural Resources, New York, Revenue Bonds, Wildlife Conservation Society, Series 2013A, 5.000%, 8/01/33 | 8/23 at 100.00 | AA– | 5,835,208 | ||||||||||||||
New York City Trust for Cultural Resources, New York, Revenue Bonds, Wildlife Conservation Society, Series 2014A: | ||||||||||||||||||
| 3,800 | 5.000%, 8/01/38 | 8/23 at 100.00 | AA– | 4,051,256 | ||||||||||||||
| 10,000 | 5.000%, 8/01/43 | 8/23 at 100.00 | AA– | 10,597,100 | ||||||||||||||
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 | 1,031,240 | ||||||||||||||
| 1,745 | 5.000%, 7/01/42 | 7/22 at 100.00 | Baa2 | 1,774,054 | ||||||||||||||
| 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 | 439,757 | ||||||||||||||
| 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– | 1,661,808 | ||||||||||||||
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 | 1,364,790 | ||||||||||||||
| 2,300 | 6.250%, 10/15/40 | 10/20 at 100.00 | BB | 2,334,638 | ||||||||||||||
| 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 | 1,075,520 | ||||||||||||||
| 106,875 | Total Education and Civic Organizations | 109,825,154 | ||||||||||||||||
Financials – 1.7% | ||||||||||||||||||
| 7,110 | New York Liberty Development Corporation, Revenue Bonds, Goldman Sachs Headquarters Issue, Series 2005, 5.250%, 10/01/35 | No Opt. Call | A | 7,815,312 | ||||||||||||||
| 3,475 | New York Liberty Development Corporation, Revenue Bonds, Goldman Sachs Headquarters Issue, Series 2007, 5.500%, 10/01/37 | No Opt. Call | A | 3,930,329 | ||||||||||||||
| 10,585 | Total Financials | 11,745,641 | ||||||||||||||||
Health Care – 9.4% | ||||||||||||||||||
| 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 | 1,117,110 | ||||||||||||||
| Nuveen Investments | 57 |
Nuveen New York Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 8,065 | 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 | $ | 8,414,860 | ||||||||||||
| 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 | 1,974,386 | ||||||||||||||
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 | 3,109,560 | ||||||||||||||
| 1,775 | 5.000%, 2/01/28 – FGIC Insured | 2/15 at 100.00 | A | 1,836,841 | ||||||||||||||
| 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 | 578,435 | ||||||||||||||
| 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– | 2,589,725 | ||||||||||||||
Dormitory Authority of the State of New York, Orange Regional Medical Center Obligated Group Revenue Bonds, Series 2008: | ||||||||||||||||||
| 2,995 | 6.000%, 12/01/14 | No Opt. Call | Ba1 | 3,056,937 | ||||||||||||||
| 5,895 | 6.125%, 12/01/29 | 12/18 at 100.00 | Ba1 | 5,924,475 | ||||||||||||||
| 4,500 | 6.250%, 12/01/37 | 12/18 at 100.00 | Ba1 | 4,444,650 | ||||||||||||||
| 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+ | 1,255,013 | ||||||||||||||
| 2,495 | 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– | 2,552,086 | ||||||||||||||
| 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 | 611,532 | ||||||||||||||
| 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 | 509,610 | ||||||||||||||
| 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– | 1,061,750 | ||||||||||||||
| 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– | 5,860,288 | ||||||||||||||
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– | 589,641 | ||||||||||||||
| 950 | 5.500%, 4/01/34 | 10/20 at 100.00 | AA– | 1,015,921 | ||||||||||||||
Madison County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Oneida Health System, Series 2007A: | ||||||||||||||||||
| 170 | 4.500%, 2/01/17 | No Opt. Call | BBB– | 178,078 | ||||||||||||||
| 710 | 5.250%, 2/01/27 | 2/17 at 100.00 | BBB– | 711,093 | ||||||||||||||
| 635 | 5.500%, 2/01/32 | 2/17 at 100.00 | BBB– | 632,822 | ||||||||||||||
Monroe County Industrial Development Corporation, New York, FHA Insured Mortgage Revenue Bonds, Unity Hospital of Rochester Project, Series 2010: | ||||||||||||||||||
| 2,720 | 5.750%, 8/15/35 | 2/21 at 100.00 | Aa2 | 3,177,042 | ||||||||||||||
| 5,000 | 5.500%, 8/15/40 | 2/21 at 100.00 | Aa2 | 5,593,900 | ||||||||||||||
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– | 1,035,010 | ||||||||||||||
| 500 | 5.250%, 12/01/32 | 12/17 at 100.00 | A– | 513,495 | ||||||||||||||
| 58 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 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+ | $ | 2,062,051 | ||||||||||||
| 2,000 | Yonkers Industrial Development Agency, New York, Revenue Bonds, St. John’s Riverside Hospital, Series 2001A, 7.125%, 7/01/31 | 7/14 at 100.00 | B+ | 2,000,300 | ||||||||||||||
| 1,060 | Yonkers Industrial Development Agency, New York, Revenue Bonds, St. John’s Riverside Hospital, Series 2001B, 7.125%, 7/01/31 | 5/14 at 100.00 | B+ | 1,060,159 | ||||||||||||||
| 60,890 | Total Health Care | 63,466,770 | ||||||||||||||||
Housing/Multifamily – 1.9% | ||||||||||||||||||
| 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– | 1,677,328 | ||||||||||||||
| 255 | East Syracuse Housing Authority, New York, FHA-Insured Section 8 Assisted Revenue Refunding Bonds, Bennet Project, Series 2001A, 6.700%, 4/01/21 | 4/14 at 100.00 | AA | 255,783 | ||||||||||||||
| 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– | 951,740 | ||||||||||||||
| 5 | New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2002A, 5.500%, 11/01/34 (Alternative Minimum Tax) | 5/14 at 100.00 | AA | 5,024 | ||||||||||||||
| 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 | 2,016,000 | ||||||||||||||
| 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 | 542,149 | ||||||||||||||
| 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 | 876,153 | ||||||||||||||
| 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 | 2,559,225 | ||||||||||||||
| 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 | 717,902 | ||||||||||||||
New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A: | ||||||||||||||||||
| 65 | 6.100%, 11/01/15 – AGM Insured | 5/14 at 100.00 | AA– | 65,340 | ||||||||||||||
| 255 | 6.125%, 11/01/20 – AGM Insured | 5/14 at 100.00 | AA– | 255,663 | ||||||||||||||
| 1,715 | 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 | 1,750,809 | ||||||||||||||
| 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) | 8/14 at 100.00 | Aa1 | 1,000,690 | ||||||||||||||
| 12,495 | Total Housing/Multifamily | 12,673,806 | ||||||||||||||||
Housing/Single Family – 0.6% | ||||||||||||||||||
| 2,305 | 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 | 2,319,429 | ||||||||||||||
| 1,455 | 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 | 1,470,816 | ||||||||||||||
| 3,760 | Total Housing/Single Family | 3,790,245 | ||||||||||||||||
| Nuveen Investments | 59 |
Nuveen New York Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Long-Term Care – 2.5% | ||||||||||||||||||
| $ | 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+ | $ | 1,114,737 | ||||||||||||
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 | 319,313 | ||||||||||||||
| 310 | 6.000%, 7/01/27 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 339,069 | ||||||||||||||
| 330 | 6.000%, 7/01/28 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 359,456 | ||||||||||||||
| 350 | 6.000%, 7/01/29 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 379,841 | ||||||||||||||
| 1,460 | 6.000%, 7/01/36 – AMBAC Insured | 7/19 at 100.00 | Aa3 | 1,563,572 | ||||||||||||||
| 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 | 1,105,650 | ||||||||||||||
| 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 | 2,086,480 | ||||||||||||||
| 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 | B1 | 570,700 | ||||||||||||||
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 | 49,371 | ||||||||||||||
| 415 | 5.000%, 7/01/35 – ACA Insured | 7/15 at 100.00 | N/R | 392,080 | ||||||||||||||
| 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 | 1,570,205 | ||||||||||||||
| 2,770 | 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 | 2,641,140 | ||||||||||||||
| 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 | 5/14 at 100.00 | N/R | 155,250 | ||||||||||||||
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 | 935,250 | ||||||||||||||
| 1,175 | 6.100%, 7/01/28 | 7/16 at 101.00 | N/R | 1,073,762 | ||||||||||||||
| 800 | 6.200%, 7/01/33 | 7/16 at 101.00 | N/R | 719,000 | ||||||||||||||
| 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– | 1,305,250 | ||||||||||||||
| 160 | Suffolk County Industrial Development Agency, New York, Revenue Bonds, Special Needs Facilities Pooled Program, Series 2001C-1, 7.250%, 7/01/16 | 7/14 at 100.00 | N/R | 160,595 | ||||||||||||||
| 16,910 | Total Long-Term Care | 16,840,721 | ||||||||||||||||
Tax Obligation/General – 5.8% | ||||||||||||||||||
| 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 | 2,006,460 | ||||||||||||||
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 | 528,830 | ||||||||||||||
| 1,035 | 6.200%, 2/15/16 – AMBAC Insured | No Opt. Call | Aa3 | 1,152,007 | ||||||||||||||
| 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 | 1,513,413 | ||||||||||||||
| 1,240 | New York City, New York, General Obligation Bonds, Fiscal 2008 Series D, 5.125%, 12/01/26 | 12/17 at 100.00 | AA | 1,420,519 | ||||||||||||||
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 | 1,935,243 | ||||||||||||||
| 60 | Nuveen Investments |
| 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 | $ | 2,094,275 | ||||||||||||
| 1,915 | 5.000%, 10/01/31 | No Opt. Call | AA | 2,096,006 | ||||||||||||||
| 3,000 | 5.000%, 10/01/33 | 10/22 at 100.00 | AA | 3,237,720 | ||||||||||||||
| 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 | 6,564,759 | ||||||||||||||
| 2,000 | New York City, New York, General Obligation Bonds, Fiscal 2014 Series D-1, 5.000%, 8/01/30 | 8/23 at 100.00 | AA | 2,214,480 | ||||||||||||||
New York City, New York, General Obligation Bonds, Fiscal Series 2004E: | ||||||||||||||||||
| 1,000 | 5.000%, 11/01/19 – AGM Insured | 11/14 at 100.00 | AA | 1,031,640 | ||||||||||||||
| 925 | 5.000%, 11/01/20 – AGM Insured | 11/14 at 100.00 | AA | 954,202 | ||||||||||||||
| 65 | 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 | 69,568 | ||||||||||||||
| 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 | 628,500 | ||||||||||||||
| 6,670 | New York City, New York, General Obligation Bonds, Series 2011D-I, 5.000%, 10/01/34 | No Opt. Call | AA | 7,132,031 | ||||||||||||||
| 960 | Rensselaer County, New York, General Obligation Bonds, Series 1991, 6.700%, 2/15/15 – AMBAC Insured | No Opt. Call | AA– | 1,018,877 | ||||||||||||||
Yonkers, New York, General Obligation Bonds, Series 2005B: | ||||||||||||||||||
| 1,495 | 5.000%, 8/01/17 | 8/15 at 100.00 | Baa1 | 1,568,225 | ||||||||||||||
| 1,570 | 5.000%, 8/01/18 | 8/15 at 100.00 | Baa1 | 1,641,058 | ||||||||||||||
| 36,205 | Total Tax Obligation/General | 38,807,813 | ||||||||||||||||
Tax Obligation/Limited – 23.6% | ||||||||||||||||||
| 1,160 | Albany Parking Authority, New York, Revenue Refunding Bonds, Series 1992A, 0.000%, 11/01/17 | No Opt. Call | N/R | 990,141 | ||||||||||||||
| 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– | 1,021,770 | ||||||||||||||
Dormitory Authority of the State of New York, Residential Institutions for Children Revenue Bonds, Series 2008-A1: | ||||||||||||||||||
| 2,000 | 5.000%, 6/01/33 | 6/18 at 100.00 | Aa1 | 2,098,640 | ||||||||||||||
| 2,500 | 5.000%, 6/01/38 | 6/18 at 100.00 | Aa1 | 2,599,325 | ||||||||||||||
| 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– | 2,445,885 | ||||||||||||||
| 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– | 1,041,300 | ||||||||||||||
| 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– | 1,634,055 | ||||||||||||||
| 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– | 1,098,130 | ||||||||||||||
| 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 | 4,480,389 | ||||||||||||||
| 5,955 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2011C, 5.000%, 3/15/34 | No Opt. Call | AAA | 6,510,423 | ||||||||||||||
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2012D: | ||||||||||||||||||
| 2,835 | 5.000%, 2/15/33 | No Opt. Call | AAA | 3,092,276 | ||||||||||||||
| 1,000 | 5.000%, 2/15/37 | No Opt. Call | AAA | 1,074,310 | ||||||||||||||
| Nuveen Investments | 61 |
Nuveen New York Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 3,030 | 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 | $ | 3,350,423 | ||||||||||||
| 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 | 36,634 | ||||||||||||||
| 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– | 1,671,598 | ||||||||||||||
| 12,000 | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Senior Fiscal 2012 Series 2011A, 5.250%, 2/15/47 | 2/21 at 100.00 | A | 12,544,784 | ||||||||||||||
| 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 | 11,825,141 | ||||||||||||||
| 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– | 4,458,880 | ||||||||||||||
| 1,680 | Monroe Newpower Corporation, New York, Power Facilities Revenue Bonds, Series 2003, 5.500%, 1/01/34 | 1/15 at 100.00 | A– | 1,682,604 | ||||||||||||||
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 | 5,732,533 | ||||||||||||||
| 3,095 | 5.000%, 10/15/26 – NPFG Insured | 10/14 at 100.00 | AAA | 3,182,991 | ||||||||||||||
| 5,875 | 5.000%, 10/15/29 – AMBAC Insured | 10/14 at 100.00 | AAA | 6,031,099 | ||||||||||||||
| 500 | 5.000%, 10/15/32 – AMBAC Insured | 10/14 at 100.00 | AAA | 512,795 | ||||||||||||||
| 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– | 8,454,030 | ||||||||||||||
| 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– | 5,043,687 | ||||||||||||||
| 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 | 4,138,411 | ||||||||||||||
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 | 11,176,706 | ||||||||||||||
| 9,000 | 5.000%, 11/01/39 | 11/20 at 100.00 | AAA | 9,677,700 | ||||||||||||||
| 1,000 | New York City Transitional Finance Authority, New York, Future Tax Secured Revenue Bonds, Subordinate Series 2011-D1, 5.250%, 2/01/30 | 2/21 at 100.00 | AAA | 1,112,290 | ||||||||||||||
New York Convention Center Development Corporation, Hotel Fee Revenue Bonds, Tender Option Bonds Trust 3095, Series 2005: | ||||||||||||||||||
| 440 | 13.799%, 11/15/30 – AMBAC Insured (IF) (5) | 11/15 at 100.00 | AA+ | 508,442 | ||||||||||||||
| 1,395 | 13.785%, 11/15/44 – AMBAC Insured (IF) (5) | 11/15 at 100.00 | AA+ | 1,464,457 | ||||||||||||||
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 | 5,716,600 | ||||||||||||||
| 60 | 5.000%, 12/15/27 (UB) | 12/17 at 100.00 | AAA | 66,917 | ||||||||||||||
| 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 | 2,206,302 | ||||||||||||||
| 5,500 | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2005B, 5.500%, 4/01/20 – AMBAC Insured (UB) (5) | No Opt. Call | AA | 6,710,825 | ||||||||||||||
| 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 | 5,449,200 | ||||||||||||||
| 62 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 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 | $ | 998,486 | ||||||||||||
| 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– | 688,601 | ||||||||||||||
| 5,000 | Puerto Rico Infrastructure Financing Authority, Special Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/30 – FGIC Insured | No Opt. Call | BB+ | 829,900 | ||||||||||||||
| 10,655 | Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Senior Lien Refunding Series 2009C, 5.750%, 8/01/57 | No Opt. Call | AA– | 9,309,913 | ||||||||||||||
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Series 2007A: | ||||||||||||||||||
| 7,100 | 0.000%, 8/01/45 – NPFG Insured | No Opt. Call | AA– | 900,493 | ||||||||||||||
| 1,150 | 5.250%, 8/01/57 | 8/17 at 100.00 | AA– | 945,335 | ||||||||||||||
| 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+ | 2,358,288 | ||||||||||||||
| 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 | 1,656,735 | ||||||||||||||
| 160,350 | Total Tax Obligation/Limited | 158,529,444 | ||||||||||||||||
Transportation – 16.3% | ||||||||||||||||||
| 2,125 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding Series 2012H, 5.000%, 11/15/31 | No Opt. Call | A+ | 2,290,453 | ||||||||||||||
| 2,000 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2006A, 5.000%, 11/15/31 | 11/16 at 100.00 | A+ | 2,117,360 | ||||||||||||||
| 4,845 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2010D, 5.250%, 11/15/40 | 11/20 at 100.00 | A+ | 5,135,264 | ||||||||||||||
| 3,520 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013A, 5.000%, 11/15/31 | 5/23 at 100.00 | A+ | 3,807,162 | ||||||||||||||
| 1,000 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013C, 5.000%, 11/15/32 | 5/23 at 100.00 | A+ | 1,076,780 | ||||||||||||||
| 2,500 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013E, 5.000%, 11/15/32 | 11/23 at 100.00 | A+ | 2,700,500 | ||||||||||||||
| 3,000 | New York City Industrial Development Agency, New York, American Airlines-JFK International Airport Special Facility Revenue Bonds, Series 2005, 7.750%, 8/01/31 (Alternative Minimum Tax) | 8/16 at 101.00 | N/R | 3,290,130 | ||||||||||||||
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 | 1,090,880 | ||||||||||||||
| 2,000 | 5.875%, 10/01/46 (7) | 10/17 at 102.00 | N/R | 779,200 | ||||||||||||||
| 1,975 | 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) | 6/14 at 100.00 | BB | 1,881,978 | ||||||||||||||
| 4,610 | New York City Industrial Development Agency, New York, Special Facilities Revenue Bonds, British Airways PLC, Series 2002, 7.625%, 12/01/32 (Alternative Minimum Tax) | 5/14 at 100.00 | BB | 4,634,387 | ||||||||||||||
| 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 | 3,731,420 | ||||||||||||||
| Nuveen Investments | 63 |
Nuveen New York Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Transportation (continued) | ||||||||||||||||||
| $ | 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 | $ | 3,929,689 | ||||||||||||
| 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) | 5/14 at 100.00 | B | 39,493 | ||||||||||||||
| 9,500 | New York City, Industrial Development Agency, New York, Senior Airport Facilities Revenue Refunding Bonds, Trips Obligated Group, Series 2012A, 5.000%, 7/01/28 (Alternative Minimum Tax) | No Opt. Call | BBB– | 9,544,365 | ||||||||||||||
| 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+ | 3,142,934 | ||||||||||||||
| 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 | 646,636 | ||||||||||||||
| 95 | New York State Thruway Authority, General Revenue Bonds, Series 2005F, 5.000%, 1/01/30 – AMBAC Insured | 1/15 at 100.00 | A | 98,082 | ||||||||||||||
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– | 1,677,920 | ||||||||||||||
| 3,000 | 5.000%, 1/01/32 – AGM Insured | 7/15 at 100.00 | AA– | 3,135,450 | ||||||||||||||
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) | 4/14 at 100.00 | A | 1,000,630 | ||||||||||||||
| 1,500 | 5.000%, 4/01/28 – FGIC Insured (Alternative Minimum Tax) | 4/14 at 100.00 | A | 1,458,540 | ||||||||||||||
| 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) | 4/14 at 100.00 | A | 4,028,200 | ||||||||||||||
| 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– | 5,300,050 | ||||||||||||||
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– | 534,260 | ||||||||||||||
| 1,725 | 5.000%, 12/01/31 – SYNCORA GTY Insured | 6/15 at 101.00 | AA– | 1,816,667 | ||||||||||||||
| 1,535 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Forty Eighth Series 2007, Trust 2920, 18.112%, 8/15/32 – AGM Insured (IF) | 8/17 at 100.00 | AA | 2,098,161 | ||||||||||||||
| 5,140 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Seventy Ninth Series 2013, 5.000%, 12/01/38 | 12/23 at 100.00 | AA– | 5,597,100 | ||||||||||||||
| 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 | 3,919,086 | ||||||||||||||
| 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) | 6/14 at 100.00 | A | 4,606,550 | ||||||||||||||
| 3,905 | Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, MTA Bridges & Tunnels, Series 2014A, 5.000%, 11/15/39 | 5/24 at 100.00 | AA– | 4,207,481 | ||||||||||||||
| 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– | 16,765,050 | ||||||||||||||
| 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+ | 1,907,864 | ||||||||||||||
| 64 | Nuveen Investments |
| 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, Series 2008C, Tender Option Bond Trust 1184, 9.405%, 5/15/16 (IF) | No Opt. Call | AA– | $ | 1,801,710 | ||||||||||||
| 105,935 | Total Transportation | 109,791,432 | ||||||||||||||||
U.S. Guaranteed – 4.1% (4) | ||||||||||||||||||
| 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– | (4) | 2,413,383 | |||||||||||||
| 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– | (4) | 682,195 | |||||||||||||
| 195 | 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) | 4/14 at 106.27 | Baa1 | (4) | 196,539 | |||||||||||||
| 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– | (4) | 1,110,901 | |||||||||||||
| 3,000 | Erie County, New York, General Obligation Bonds, Series 2005A, 5.000%, 12/01/18 (Pre-refunded 12/01/15) – NPFG Insured | 12/15 at 100.00 | A | (4) | 3,252,900 | |||||||||||||
| 165 | Erie County Water Authority, New York, Water Revenue Bonds, Series 1990B, 6.750%, 12/01/14 – AMBAC Insured (ETM) | No Opt. Call | N/R | (4) | 173,059 | |||||||||||||
Metropolitan Transportation Authority, New York, Commuter Facilities Revenue Bonds, Series 1997B: | ||||||||||||||||||
| 855 | 5.000%, 7/01/20 – AMBAC Insured (ETM) | 5/14 at 100.00 | N/R | (4) | 893,261 | |||||||||||||
| 1,295 | 5.125%, 7/01/24 – AMBAC Insured (ETM) | 5/14 at 100.00 | N/R | (4) | 1,330,884 | |||||||||||||
| 400 | New York City Housing Development Corporation, New York, Capital Fund Program Revenue Bonds, New York Housing Authority Program, Series 2005A, 5.000%, 7/01/14 – NPFG Insured (ETM) | No Opt. Call | AA+ | (4) | 406,700 | |||||||||||||
New York City Housing Development Corporation, New York, Capital Fund Program Revenue Bonds, New York Housing Authority Program, Series 2005A: | ||||||||||||||||||
| 400 | 5.000%, 7/01/16 (Pre-refunded 7/01/15) – FGIC Insured | 7/15 at 100.00 | AA+ | (4) | 425,796 | |||||||||||||
| 4,030 | 5.000%, 7/01/25 (Pre-refunded 7/01/15) – FGIC Insured | 7/15 at 100.00 | AA+ | (4) | 4,289,895 | |||||||||||||
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 | (4) | 619,824 | |||||||||||||
| 125 | 5.000%, 11/01/20 (Pre-refunded 11/01/14) – AGM Insured | 11/14 at 100.00 | Aa2 | (4) | 129,121 | |||||||||||||
| 3,555 | New York City, New York, General Obligation Bonds, Fiscal Series 2005F-1, 5.000%, 9/01/19 (Pre-refunded 9/01/15) – SYNCORA GTY Insured | 9/15 at 100.00 | N/R | (4) | 3,812,311 | |||||||||||||
| 200 | New York State Thruway Authority, General Revenue Bonds, Series 2005F, 5.000%, 1/01/30 (Pre-refunded 1/01/15) – AMBAC Insured | 1/15 at 100.00 | A2 | (4) | 208,164 | |||||||||||||
| 1,000 | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second General, Series 2004A, 5.000%, 4/01/23 (Pre-refunded 4/01/14) – NPFG Insured | 4/14 at 100.00 | AA | (4) | 1,004,500 | |||||||||||||
| 1,500 | New York State Thruway Authority, State Personal Income Tax Revenue Bonds, Series 2004A, 5.000%, 3/15/24 (Pre-refunded 9/15/14) – AMBAC Insured | 9/14 at 100.00 | AAA | 1,540,125 | ||||||||||||||
| 20 | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2003E, 5.000%, 2/01/23 (Pre-refunded 3/06/14) – FGIC Insured | 3/14 at 100.00 | AAA | 20,022 | ||||||||||||||
| 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 | 4,238,640 | ||||||||||||||
| Nuveen Investments | 65 |
Nuveen New York Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed (4) (continued) | ||||||||||||||||||
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 | (4) | $ | 523,776 | |||||||||||
| 515 | 5.000%, 8/01/18 (Pre-refunded 8/01/15) | 8/15 at 100.00 | Baa1 | (4) | 550,499 | |||||||||||||
| 26,455 | Total U.S. Guaranteed | 27,822,495 | ||||||||||||||||
Utilities – 11.3% | ||||||||||||||||||
| 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 | 3,194,037 | ||||||||||||||
| 1,200 | Guam Power Authority, Revenue Bonds, Series 2010A, 5.000%, 10/01/37 – AGM Insured | 10/20 at 100.00 | AA– | 1,230,756 | ||||||||||||||
| 420 | Guam Power Authority, Revenue Bonds, Series 2012A, 5.000%, 10/01/34 | 10/22 at 100.00 | BBB | 419,177 | ||||||||||||||
| 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– | 5,389,560 | ||||||||||||||
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– | 2,054,981 | ||||||||||||||
| 2,000 | 0.000%, 6/01/24 – AGM Insured | No Opt. Call | AA– | 1,436,580 | ||||||||||||||
| 2,000 | 0.000%, 6/01/25 – AGM Insured | No Opt. Call | AA– | 1,360,280 | ||||||||||||||
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 | 9,452,608 | ||||||||||||||
| 1,200 | 5.000%, 12/01/24 – FGIC Insured | 6/16 at 100.00 | A | 1,291,464 | ||||||||||||||
| 2,615 | 5.000%, 12/01/25 – FGIC Insured | 6/16 at 100.00 | A | 2,814,315 | ||||||||||||||
| 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– | 1,101,954 | ||||||||||||||
| 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+ | 5,309,700 | ||||||||||||||
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– | 11,717,903 | ||||||||||||||
| 5,000 | 5.500%, 5/01/33 – BHAC Insured | 5/19 at 100.00 | AA+ | 5,599,600 | ||||||||||||||
| 2,400 | Nassau County Industrial Development Authority, New York, Keyspan Glenwood Energy Project, Series 2003, 5.250%, 6/01/27 (Alternative Minimum Tax) | 5/14 at 100.00 | A– | 2,408,976 | ||||||||||||||
| 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+ | 11,394,327 | ||||||||||||||
| 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 | 561,699 | ||||||||||||||
| 3,720 | Suffolk County Industrial Development Agency, New York, Revenue Bonds, Nissequogue Cogeneration Partners Facility, Series 1998, 5.500%, 1/01/23 (Alternative Minimum Tax) | 7/14 at 100.00 | N/R | 3,691,468 | ||||||||||||||
| 5,095 | Utility Debt Securitization Authority, New York, Restructuring Bonds, Series 2013 TE, 5.000%, 12/15/41 | 12/23 at 100.00 | AAA | 5,571,332 | ||||||||||||||
| 74,430 | Total Utilities | 76,000,717 | ||||||||||||||||
Water and Sewer – 3.0% | ||||||||||||||||||
| 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 | 3,825,238 | ||||||||||||||
| 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 | 2,243,299 | ||||||||||||||
| 66 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||||||||
Water and Sewer (continued) | ||||||||||||||||||||||||
| $ | 10,000 | New York City Municipal Water Finance Authority, New York, Water and Sewer System Second General Resolution Revenue Bonds, Fiscal 2013 Series DD, 5.000%, 6/15/35 | 6/23 at 100.00 | AA+ | $ | 10,952,500 | ||||||||||||||||||
| 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– | 3,000,770 | ||||||||||||||||||||
| 18,455 | Total Water and Sewer | 20,021,807 | ||||||||||||||||||||||
| $ | 651,680 | Total Municipal Bonds (cost $641,475,232) | 665,491,815 | |||||||||||||||||||||
| Shares | Description (1) | Value | ||||||||||||||||||||||
COMMON STOCKS – 0.0% | ||||||||||||||||||||||||
Airlines – 0.0% | ||||||||||||||||||||||||
| 5,706 | American Airlines Group Inc., (8) | $ | 210,723 | |||||||||||||||||||||
Total Common Stocks (cost $166,187) | 210,723 | |||||||||||||||||||||||
| Shares | Description (1) | Coupon | Maturity | Ratings (3) | Value | |||||||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 0.0% | ||||||||||||||||||||||||
Airlines – 0.0% | ||||||||||||||||||||||||
| 5,164 | American Airlines Group Inc., (8) | 6.250 | % | 1/08/64 | N/R | $ | 143,559 | |||||||||||||||||
Total Convertible Preferred Securities (cost $131,764) | 143,559 | |||||||||||||||||||||||
Total Long-Term Investments (cost $641,773,183) | 665,846,097 | |||||||||||||||||||||||
Floating Rate Obligations – (1.2%) | (7,955,000 | ) | ||||||||||||||||||||||
Other Assets Less Liabilities – 2.3% | 15,024,728 | |||||||||||||||||||||||
Net Assets – 100% | $ | 672,915,825 | ||||||||||||||||||||||
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the 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. |
| (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) | On November 28, 2011, AMR Corp. (“AMR”), the parent company of American Airlines Group, Inc. (“AAL”) filed for federal bankruptcy protection. On December 9, 2013, AMR emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement agreement established to meet AMR’s unsecured bond obligations, the bondholders, including the Fund, received a distribution of AAL preferred stock which is to be converted to AAL common stock over a 120-day period. Every 30 days, a quarter of the preferred stock will be converted to AAL common stock based on the 5-day volume-weighted average price and the amount of preferred shares tendered during the optional preferred conversion period. |
| (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.
| Nuveen Investments | 67 |
| Assets and Liabilities | February 28, 2014 |
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Assets | ||||||||||||||||
Investments, at value (cost $270,583,752, $225,360,989, $263,922,191 and $641,773,183, respectively) | $ | 281,619,805 | $ | 235,197,779 | $ | 275,103,577 | $ | 665,846,097 | ||||||||
Cash | 1,199,124 | 4,162,329 | 1,183,353 | 8,462,270 | ||||||||||||
Receivable for: | ||||||||||||||||
Interest | 2,859,118 | 2,881,622 | 3,177,106 | 8,130,798 | ||||||||||||
Investments sold | 148,438 | 1,572,403 | 903,301 | 205,128 | ||||||||||||
Shares sold | 250,243 | 218,012 | 207,199 | 247,642 | ||||||||||||
Other assets | 31,078 | 350 | 4,757 | 84,343 | ||||||||||||
Total assets | 286,107,806 | 244,032,495 | 280,579,293 | 682,976,278 | ||||||||||||
Liabilities | ||||||||||||||||
Floating rate obligations | — | — | — | 7,955,000 | ||||||||||||
Payable for: | ||||||||||||||||
Dividends | 237,269 | 134,154 | 201,157 | 409,549 | ||||||||||||
Investments purchased | — | 1,930,598 | 195,000 | — | ||||||||||||
Shares redeemed | 352,784 | 327,447 | 1,000,346 | 1,003,600 | ||||||||||||
Accrued expenses: | ||||||||||||||||
Management fees | 110,940 | 106,724 | 108,574 | 266,428 | ||||||||||||
Trustees fees | 36,913 | 2,559 | 6,778 | 106,406 | ||||||||||||
12b-1 distribution and service fees | 56,752 | 31,629 | 52,549 | 94,052 | ||||||||||||
Other | 99,353 | 98,301 | 104,630 | 225,418 | ||||||||||||
Total liabilities | 894,011 | 2,631,412 | 1,669,034 | 10,060,453 | ||||||||||||
Net assets | $ | 285,213,795 | $ | 241,401,083 | $ | 278,910,259 | $ | 672,915,825 | ||||||||
Class A Shares(1) | ||||||||||||||||
Net assets | $ | 196,237,582 | $ | 101,648,344 | $ | 153,126,187 | $ | 314,181,965 | ||||||||
Shares outstanding | 18,709,509 | 10,274,031 | 13,790,322 | 29,338,523 | ||||||||||||
Net asset value (“NAV”) per share | $ | 10.49 | $ | 9.89 | $ | 11.10 | $ | 10.71 | ||||||||
Offering price per share (NAV per share plus maximum sales charge of 4.20% of offering price) | $ | 10.95 | $ | 10.32 | $ | 11.59 | $ | 11.18 | ||||||||
Class C Shares(2) | ||||||||||||||||
Net assets | $ | 277,502 | $ | 25,589 | $ | 30,537 | $ | 301,888 | ||||||||
Shares outstanding | 26,486 | 2,607 | 2,761 | 28,209 | ||||||||||||
NAV and offering price per share | $ | 10.48 | $ | 9.81 | $ | 11.06 | $ | 10.70 | ||||||||
Class C2 Shares(3) | ||||||||||||||||
Net assets | $ | 46,264,587 | $ | 28,457,127 | $ | 50,176,449 | $ | 79,435,361 | ||||||||
Shares outstanding | 4,415,664 | 2,899,661 | 4,534,467 | 7,419,828 | ||||||||||||
NAV and offering price per share | $ | 10.48 | $ | 9.81 | $ | 11.07 | $ | 10.71 | ||||||||
Class I Shares | ||||||||||||||||
Net assets | $ | 42,434,124 | $ | 111,270,023 | $ | 75,577,086 | $ | 278,996,611 | ||||||||
Shares outstanding | 4,031,777 | 11,262,467 | 6,783,316 | 26,012,325 | ||||||||||||
NAV and offering price per share | $ | 10.52 | $ | 9.88 | $ | 11.14 | $ | 10.73 | ||||||||
Net assets consist of: | ||||||||||||||||
Capital paid-in | $ | 280,649,983 | $ | 238,762,848 | $ | 267,744,571 | $ | 659,597,013 | ||||||||
Undistrubuted (Over-distribution of) net investment income | 664,310 | 1,034,462 | 1,681,281 | 3,002,948 | ||||||||||||
Accumulated net realized gain (loss) | (7,136,551 | ) | (8,233,017 | ) | (1,696,979 | ) | (13,757,050 | ) | ||||||||
Net unrealized appreciation (depreciation) | 11,036,053 | 9,836,790 | 11,181,386 | 24,072,914 | ||||||||||||
Net assets | $ | 285,213,795 | $ | 241,401,083 | $ | 278,910,259 | $ | 672,915,825 | ||||||||
Authorized shares – per class | Unlimited | Unlimited | Unlimited | Unlimited | ||||||||||||
Par value per share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||||
| (1) | Class B Shares of Connecticut and Massachusetts converted to Class A Shares at the close of business on October 28, 2013, and Class B Shares of New Jersey and New York converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
See accompanying notes to financial statements.
| 68 | Nuveen Investments |
| Operations | Year Ended February 28, 2014 |
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Investment Income | $ | 14,751,216 | $ | 10,962,403 | $ | 13,603,426 | $ | 32,594,624 | ||||||||
Expenses | ||||||||||||||||
Management fees | 1,684,198 | 1,261,997 | 1,518,226 | 3,548,558 | ||||||||||||
12b-1 service fees – Class A(1) | 468,338 | 203,221 | 335,801 | 681,905 | ||||||||||||
12b-1 distribution and service fees – Class C(2) | 30 | 12 | 13 | 63 | ||||||||||||
12b-1 distribution and service fees – Class C2(3) | 406,798 | 237,605 | 398,772 | 654,917 | ||||||||||||
Shareholder servicing agent fees and expenses | 157,524 | 142,532 | 169,624 | 407,249 | ||||||||||||
Interest expense | 20,196 | — | — | 29,495 | ||||||||||||
Custodian fees and expenses | 60,668 | 50,355 | 62,794 | 127,861 | ||||||||||||
Trustees fees and expenses | 8,612 | 6,406 | 7,856 | 18,742 | ||||||||||||
Professional fees | 48,299 | 42,379 | 45,684 | 48,337 | ||||||||||||
Shareholder reporting expenses | 33,528 | 29,657 | 34,427 | 82,683 | ||||||||||||
Federal and state registration fees | 7,425 | 10,307 | 6,464 | 10,637 | ||||||||||||
Other expenses | 12,819 | 10,702 | 12,874 | 22,525 | ||||||||||||
Total expenses | 2,908,435 | 1,995,173 | 2,592,535 | 5,632,972 | ||||||||||||
Net investment income (loss) | 11,842,781 | 8,967,230 | 11,010,891 | 26,961,652 | ||||||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) from investments | (7,152,950 | ) | (5,273,374 | ) | (595,608 | ) | (13,786,009 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of investments | (14,381,560 | ) | (8,423,898 | ) | (15,827,977 | ) | (29,568,192 | ) | ||||||||
Net realized and unrealized gain (loss) | (21,534,510 | ) | (13,697,272 | ) | (16,423,585 | ) | (43,354,201 | ) | ||||||||
Net increase (decrease) in net assets from operations | $ | (9,691,729 | ) | $ | (4,730,042 | ) | $ | (5,412,694 | ) | $ | (16,392,549 | ) | ||||
| (1) | 12b-1 service fees include 12b-1 distribution and service fees incurred on Class B Shares during the period. Class B Shares of Connecticut and Massachusetts converted to Class A Shares at the close of business on October 28, 2013, and Class B Shares of New Jersey and New York converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
See accompanying notes to financial statements.
| Nuveen Investments | 69 |
| Changes in Net Assets |
| Connecticut | Massachusetts | |||||||||||||||||
| Year Ended 2/28/14 | Year Ended 2/28/13 | Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 11,842,781 | $ | 13,454,538 | $ | 8,967,230 | $ | 9,654,149 | ||||||||||
Net realized gain (loss) from investments | (7,152,950 | ) | 262,326 | (5,273,374 | ) | (2,854,151 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) of investments | (14,381,560 | ) | 2,522,770 | (8,423,898 | ) | 6,773,534 | ||||||||||||
Net increase (decrease) in net assets from operations | (9,691,729 | ) | 16,239,634 | (4,730,042 | ) | 13,573,532 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A(1) | (8,428,765 | ) | (9,520,427 | ) | (3,742,219 | ) | (3,571,958 | ) | ||||||||||
Class B | N/A | (39,872 | ) | N/A | (33,655 | ) | ||||||||||||
Class C(2) | (80 | ) | — | (40 | ) | — | ||||||||||||
Class C2(3) | (1,662,385 | ) | (1,876,405 | ) | (1,004,283 | ) | (1,010,707 | ) | ||||||||||
Class I | (1,760,025 | ) | (1,758,284 | ) | (4,556,521 | ) | (3,876,564 | ) | ||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A(1) | (24,325 | ) | (176,115 | ) | — | — | ||||||||||||
Class B | N/A | (775 | ) | N/A | — | |||||||||||||
Class C(2) | — | — | — | — | ||||||||||||||
Class C2(3) | (5,743 | ) | (41,191 | ) | — | — | ||||||||||||
Class I | (4,867 | ) | (31,228 | ) | — | — | ||||||||||||
Decrease in net assets from distributions to shareholders | (11,886,190 | ) | (13,444,297 | ) | (9,303,063 | ) | (8,492,884 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from sale of shares | 54,443,404 | 56,156,930 | 112,381,344 | 36,271,395 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 8,274,303 | 8,732,311 | 7,574,787 | 6,367,725 | ||||||||||||||
| 62,717,707 | 64,889,241 | 119,956,131 | 42,639,120 | |||||||||||||||
Cost of shares redeemed | (139,639,764 | ) | (45,150,991 | ) | (108,614,113 | ) | (27,534,229 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (76,922,057 | ) | 19,738,250 | 11,342,018 | 15,104,891 | |||||||||||||
Net increase (decrease) in net assets | (98,499,976 | ) | 22,533,587 | (2,691,087 | ) | 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 | $ | 285,213,795 | $ | 383,713,771 | $ | 241,401,083 | $ | 244,092,170 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 664,310 | $ | 673,308 | $ | 1,034,462 | $ | 1,370,085 | ||||||||||
| N/A | Fund no longer offers Class B Shares. |
| (1) | Includes distributions to shareholders of Class B Shares during the year ended February 28, 2014. Class B Shares of Connecticut and Massachusetts converted to Class A Shares at the close of business on October 28, 2013. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
See accompanying notes to financial statements.
| 70 | Nuveen Investments |
| New Jersey | New York | |||||||||||||||||
| Year Ended 2/28/14 | Year Ended 2/28/13 | Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 11,010,891 | $ | 10,839,863 | $ | 26,961,652 | $ | 27,270,949 | ||||||||||
Net realized gain (loss) from investments | (595,608 | ) | 1,056,792 | (13,786,009 | ) | 1,731,835 | ||||||||||||
Change in net unrealized appreciation (depreciation) of investments | (15,827,977 | ) | 7,513,749 | (29,568,192 | ) | 7,279,114 | ||||||||||||
Net increase (decrease) in net assets from operations | (5,412,694 | ) | 19,410,404 | (16,392,549 | ) | 36,281,898 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A(1) | (5,848,584 | ) | (5,804,535 | ) | (11,859,220 | ) | (11,592,874 | ) | ||||||||||
Class B | N/A | (68,995 | ) | N/A | (112,943 | ) | ||||||||||||
Class C(2) | (37 | ) | — | (150 | ) | — | ||||||||||||
Class C2(3) | (1,597,417 | ) | (1,676,829 | ) | (2,634,783 | ) | (2,833,694 | ) | ||||||||||
Class I | (3,077,252 | ) | (3,389,400 | ) | (11,187,140 | ) | (12,311,630 | ) | ||||||||||
From accumulated net realized gains: | ||||||||||||||||||
Class A(1) | — | — | (252,570 | ) | (369,596 | ) | ||||||||||||
Class B | N/A | — | N/A | (4,061 | ) | |||||||||||||
Class C(2) | — | — | — | — | ||||||||||||||
Class C2(3) | — | — | (64,387 | ) | (104,903 | ) | ||||||||||||
Class I | — | — | (222,447 | ) | (359,272 | ) | ||||||||||||
Decrease in net assets from distributions to shareholders | (10,523,290 | ) | (10,939,759 | ) | (26,220,697 | ) | (27,688,973 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from sale of shares | 68,617,402 | 67,522,062 | 120,104,376 | 101,731,182 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 7,859,206 | 7,504,416 | 21,052,820 | 21,103,747 | ||||||||||||||
| 76,476,608 | 75,026,478 | 141,157,196 | 122,834,929 | |||||||||||||||
Cost of shares redeemed | (102,943,047 | ) | (35,638,824 | ) | (203,115,365 | ) | (92,216,723 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | (26,466,439 | ) | 39,387,654 | (61,958,169 | ) | 30,618,206 | ||||||||||||
Net increase (decrease) in net assets | (42,402,423 | ) | 47,858,299 | (104,571,415 | ) | 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 | $ | 278,910,259 | $ | 321,312,682 | $ | 672,915,825 | $ | 777,487,240 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 1,681,281 | $ | 1,206,206 | $ | 3,002,948 | $ | 1,749,481 | ||||||||||
| N/A | Fund no longer offers Class B Shares. |
| (1) | Includes distributions to shareholders of Class B Shares during the year ended February 28, 2014. Class B Shares of New Jersey and New York converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
See accompanying notes to financial statements.
| Nuveen Investments | 71 |
Highlights
Connecticut
Selected data for a share outstanding throughout each period:
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended February 28/29, | Beginning NAV | Net Investment | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (7/87) |
| |||||||||||||||||||||||||||||||||
2014 | $ | 11.07 | $ | .38 | $ | (.58 | ) | $ | (.20 | ) | $ | (.38 | ) | $ | — | * | $ | (.38 | ) | $ | 10.49 | |||||||||||||
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 | ||||||||||||||||||||||||
Class C (2/14) |
| |||||||||||||||||||||||||||||||||
2014(e) | 10.41 | .01 | .07 | .08 | (.01 | ) | — | (.01 | ) | 10.48 | ||||||||||||||||||||||||
Class C2 (10/93)(f) |
| |||||||||||||||||||||||||||||||||
2014 | 11.05 | .32 | (.57 | ) | (.25 | ) | (.32 | ) | — | * | (.32 | ) | 10.48 | |||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I (2/97) |
| |||||||||||||||||||||||||||||||||
2014 | 11.11 | .40 | (.58 | ) | (.18 | ) | (.41 | ) | — | * | (.41 | ) | 10.52 | |||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 72 | 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 Investment Income (Loss) | Portfolio Turnover Rate(d) | |||||||||||||||||||
| (1.71 | )% | $ | 196,238 | .82 | % | .81 | % | 3.63 | % | 10 | % | |||||||||||||
| 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 | |||||||||||||||||||
| .81 | 278 | 1.66 | ** | 1.65 | ** | 3.62 | ** | 10 | ||||||||||||||||
| (2.19 | ) | 46,265 | 1.37 | 1.36 | 3.08 | 10 | ||||||||||||||||||
| 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 | |||||||||||||||||||
| (1.58 | ) | 42,434 | .62 | .61 | 3.83 | 10 | ||||||||||||||||||
| 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 | |||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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 period February 10, 2014 (commencement of operations) through February 28, 2014. |
| (f) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
| * | Rounds to less than $.01 per share. |
| ** | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 73 |
Financial Highlights (continued)
Massachusetts
Selected data for a share outstanding throughout each period:
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended February 28/29, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (9/94) | ||||||||||||||||||||||||||||||||||
2014 | $ | 10.44 | $ | .36 | $ | (.54 | ) | $ | (.18 | ) | $ | (.37 | ) | $ | — | $ | (.37 | ) | $ | 9.89 | ||||||||||||||
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 | ||||||||||||||||||||||||
Class C (2/14) | ||||||||||||||||||||||||||||||||||
2014(f) | 9.74 | .02 | .07 | .09 | (.02 | ) | — | (.02 | ) | 9.81 | ||||||||||||||||||||||||
Class C2 (10/94)(g) | ||||||||||||||||||||||||||||||||||
2014 | 10.35 | .30 | (.53 | ) | (.23 | ) | (.31 | ) | — | (.31 | ) | 9.81 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I (12/86) | ||||||||||||||||||||||||||||||||||
2014 | 10.42 | .37 | (.52 | ) | (.15 | ) | (.39 | ) | — | (.39 | ) | 9.88 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 74 | Nuveen Investments |
| Ratios/Supplemental Data | ||||||||||||||||||||||||
| Ratios to Average Net Assets(c) | ||||||||||||||||||||||||
| Total Return(b) | Ending Net Assets (000) | Expenses Including Interest(d) | Expenses Excluding Interest | Net Investment Income (Loss) | Portfolio Turnover Rate(e) | |||||||||||||||||||
| (1.64 | )% | $ | 101,648 | .84 | % | .84 | % | 3.64 | % | 29 | % | |||||||||||||
| 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 | |||||||||||||||||||
| .88 | 26 | 1.62 | * | 1.62 | * | 3.48 | * | 29 | ||||||||||||||||
| (2.15 | ) | 28,457 | 1.38 | 1.38 | 3.06 | 29 | ||||||||||||||||||
| 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 | |||||||||||||||||||
| (1.36 | ) | 111,270 | .63 | .63 | 3.81 | 29 | ||||||||||||||||||
| 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 | |||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. Total returns are not annualized. |
| (c) | 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) | 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 period February 10, 2014 (commencement of operations) through February 28, 2014. |
| (g) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 75 |
Financial Highlights (continued)
New Jersey
Selected data for a share outstanding throughout each period:
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended February 28/29, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (9/94) |
| |||||||||||||||||||||||||||||||||
2014 | $ | 11.63 | $ | .41 | $ | (.55 | ) | $ | (.14 | ) | $ | (.39 | ) | $ | — | $ | (.39 | ) | $ | 11.10 | ||||||||||||||
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 | |||||||||||||||||||||||
Class C (2/14) |
| |||||||||||||||||||||||||||||||||
2014(e) | 10.95 | .02 | .11 | .13 | (.02 | ) | — | (.02 | ) | 11.06 | ||||||||||||||||||||||||
Class C2 (9/94)(f) |
| |||||||||||||||||||||||||||||||||
2014 | 11.59 | .35 | (.54 | ) | (.19 | ) | (.33 | ) | — | (.33 | ) | 11.07 | ||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I (2/92) |
| |||||||||||||||||||||||||||||||||
2014 | 11.67 | .44 | (.55 | ) | (.11 | ) | (.42 | ) | — | (.42 | ) | 11.14 | ||||||||||||||||||||||
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 | |||||||||||||||||||||||
| 76 | 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 Investment Income (Loss) | Portfolio Turnover Rate(d) | |||||||||||||||||||
| (1.08 | )% | $ | 153,126 | .83 | % | .83 | % | 3.75 | % | 13 | % | |||||||||||||
| 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 | |||||||||||||||||||
| 1.15 | 31 | 1.64 | ** | 1.64 | ** | 3.57 | ** | 13 | ||||||||||||||||
| (1.57 | ) | 50,176 | 1.37 | 1.37 | 3.18 | 13 | ||||||||||||||||||
| 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 | |||||||||||||||||||
| (.86 | ) | 75,577 | .62 | .62 | 3.93 | 13 | ||||||||||||||||||
| 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 | |||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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 period February 10, 2014 (commencement of operations) through February 28, 2014. |
| (f) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
| * | Rounds to less than $.01 per share. |
| ** | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 77 |
Financial Highlights (continued)
New York
Selected data for a share outstanding throughout each period:
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended February 28/29, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (9/94) | ||||||||||||||||||||||||||||||||||
2014 | $ | 11.30 | $ | .40 | $ | (.60 | ) | $ | (.20 | ) | $ | (.38 | ) | $ | (.01 | ) | $ | (.39 | ) | $ | 10.71 | |||||||||||||
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 | |||||||||||||||||||||||
Class C (2/14) | ||||||||||||||||||||||||||||||||||
2014(f) | 10.61 | .01 | .10 | .11 | (.02 | ) | — | (.02 | ) | 10.70 | ||||||||||||||||||||||||
Class C2 (9/94)(g) | ||||||||||||||||||||||||||||||||||
2014 | 11.30 | .34 | (.60 | ) | (.26 | ) | (.32 | ) | (.01 | ) | (.33 | ) | 10.71 | |||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I (12/86) | ||||||||||||||||||||||||||||||||||
2014 | 11.32 | .42 | (.60 | ) | (.18 | ) | (.40 | ) | (.01 | ) | (.41 | ) | 10.73 | |||||||||||||||||||||
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 | |||||||||||||||||||||||
| 78 | 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 Investment Income (Loss) | Portfolio Turnover Rate(e) | |||||||||||||||||||
| (1.68 | )% | $ | 314,182 | .81 | % | .81 | % | 3.78 | % | 47 | % | |||||||||||||
| 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 | |||||||||||||||||||
| 1.01 | 302 | 1.59 | ** | 1.59 | ** | 3.38 | ** | 47 | ||||||||||||||||
| (2.23 | ) | 79,435 | 1.35 | 1.35 | 3.20 | 47 | ||||||||||||||||||
| 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 | |||||||||||||||||||
| (1.49 | ) | 278,997 | .60 | .60 | 3.95 | 47 | ||||||||||||||||||
| 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 | |||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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 period February 10, 2014 (commencement of operations) through February 28, 2014. |
| (g) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
| * | Rounds to less than $.01 per share. |
| ** | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 79 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust 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.
Investment Adviser
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.
Investment Objectives
Each Fund’s 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 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 its respective state personal income tax. These municipal bonds include obligations issued by each Fund’s respective state 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 each Fund’s 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.
Class B Shares
During the current fiscal period, the Funds offered Class B Shares. Effective at the close of business on October 28, 2013, Class B Shares of Connecticut and Massachusetts were converted to Class A Shares, and effective at the close of business on February 20, 2014, Class B Shares of New Jersey and New York were converted to Class A Shares.
Class C and C2 Shares
Effective at the close of business on February 10, 2014, Class C Shares of the Funds were renamed to Class C2 Shares, and are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. On February 10, 2014, the Funds began offering a new form of Class C Shares.
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”).
| 80 | 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 February 28, 2014, there were no such outstanding purchase commitments in any of the 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.
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 (“NAV”) 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 issued 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 were not available for new accounts or for additional investment into existing accounts. Class B Shares were sold without an up-front sales charge but incurred a .75% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. Class B Shares were subject to a CDSC of up to 5% depending upon the length of time the shares were held by the investor (CDSC was reduced to 0% at the end of six years). Class B Shares automatically converted to Class A Shares eight years after purchase. Class C Shares are sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. The Funds will issue Class C2 Shares upon the exchange of Class C2 Shares from another Nuveen mutual fund or for the purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. Class C2 Shares incur a .55% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. Class C and C2 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.
| Nuveen Investments | 81 |
Notes to Financial Statements (continued)
Netting Agreements
In the ordinary course of business, the Funds have entered into transactions subject to enforceable 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, each Fund manages its cash collateral and securities collateral on a counterparty basis. As of February 28, 2014, 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
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2.
Prices of fixed-income securities 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 NAV (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. |
| 82 | Nuveen Investments |
| 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 | $ | — | $ | 281,265,523 | $ | — | $ | 281,265,523 | ||||||||
Common Stocks | 210,723 | — | — | 210,723 | ||||||||||||
Convertible Preferred Securities | 143,559 | — | — | 143,559 | ||||||||||||
| Total | $ | 354,282 | $ | 281,265,523 | $ | — | $ | 281,619,805 | ||||||||
| Massachusetts | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 235,197,779 | $ | — | $ | 235,197,779 | ||||||||
| New Jersey | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 275,103,577 | $ | — | $ | 275,103,577 | ||||||||
| New York | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 665,491,815 | $ | — | $ | 665,491,815 | ||||||||
Common Stocks | 210,723 | — | — | 210,723 | ||||||||||||
Convertible Preferred Securities | 143,559 | — | — | 143,559 | ||||||||||||
| Total | $ | 354,282 | $ | 665,491,815 | $ | — | $ | 665,846,097 | ||||||||
| * | 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.
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.
| Nuveen Investments | 83 |
Notes to Financial Statements (continued)
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.
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.
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”). An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” The Fund’s Statement of Assets and Liabilities shows only the inverse floaters and not the underlying bonds as an asset, and does not reflect the short-term floating rate certificates as liabilities. Also, the Fund reflects in “Investment Income” only the net amount of earnings on its inverse floater investment (net of the interest paid to the holders of the short-term floating rate certificates and the expenses of the trust), and does not show the amount of that interest paid as an interest expense on the Statement of Operations.
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 fiscal year ended February 28, 2014, each Fund invested in inverse floaters.
The average floating rate obligations outstanding and average annual interest rate and fees related to the self-deposited inverse floaters the Funds invested in during the fiscal year ended February 28, 2014, were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Average floating rate obligations outstanding | $ | 6,136,986 | $ | — | $ | — | $ | 7,955,000 | ||||||||
Average annual interest rate and fees | .33 | % | — | % | — | % | .37 | % | ||||||||
As of February 28, 2014, the total amount of floating rate obligations issued by each Fund’s self-deposited inverse floaters and externally-deposited inverse floaters was as follows:
Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Floating rate obligations: self-deposited inverse floaters | $ | — | $ | — | $ | — | $ | 7,955,000 | ||||||||
Floating rate obligations: externally-deposited inverse floaters | — | 1,600,000 | 3,030,000 | 9,775,000 | ||||||||||||
Total | $ | — | $ | 1,600,000 | $ | 3,030,000 | $ | 17,730,000 | ||||||||
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse trust” or “credit recovery swap”) (such agreements are 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 denoted as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
| 84 | Nuveen Investments |
As of February 28, 2014, each Fund’s maximum exposure to the floating rate obligations issued by externally-deposited Recourse Trusts were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
Maximum exposure to Recourse Trusts | $ | — | $ | 1,600,000 | $ | 1,770,000 | $ | 3,670,000 | ||||||||
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 fiscal year ended February 28, 2014.
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 | 85 |
Notes to Financial Statements (continued)
4. Fund Shares
Transactions in Fund shares were as follows:
| Connecticut | ||||||||||||||||
| Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 3,432,848 | $ | 36,075,369 | 2,614,964 | $ | 28,910,899 | ||||||||||
Class A – automatic conversion of Class B(1) Shares | 58,803 | 606,784 | 12,825 | 141,148 | ||||||||||||
Class B(1) – exchanges | 51 | 543 | — | — | ||||||||||||
Class C(2) | 26,486 | 276,698 | — | — | ||||||||||||
Class C2(3) | 375,533 | 3,997,991 | 1,033,058 | 11,399,442 | ||||||||||||
Class I | 1,277,148 | 13,486,019 | 1,413,438 | 15,705,441 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 612,086 | 6,421,555 | 624,245 | 6,906,191 | ||||||||||||
Class B(1) | 926 | 9,856 | 3,000 | 33,111 | ||||||||||||
Class C(2) | 4 | 44 | — | — | ||||||||||||
Class C2(3) | 92,306 | 966,914 | 94,101 | 1,039,661 | ||||||||||||
Class I | 83,289 | 875,934 | 67,844 | 753,348 | ||||||||||||
| 5,959,480 | 62,717,707 | 5,863,475 | 64,889,241 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (9,623,646 | ) | (99,897,362 | ) | (2,619,777 | ) | (28,965,373 | ) | ||||||||
Class B(1) | (34,828 | ) | (376,222 | ) | (51,692 | ) | (573,074 | ) | ||||||||
Class B(1) – automatic conversion to Class A Shares | (58,863 | ) | (606,784 | ) | (12,838 | ) | (141,148 | ) | ||||||||
Class C(2) | (4 | ) | (41 | ) | — | — | ||||||||||
Class C2(3) | (1,743,065 | ) | (18,112,640 | ) | (798,522 | ) | (8,818,322 | ) | ||||||||
Class I | (1,972,460 | ) | (20,646,715 | ) | (599,799 | ) | (6,653,074 | ) | ||||||||
| (13,432,866 | ) | (139,639,764 | ) | (4,082,628 | ) | (45,150,991 | ) | |||||||||
| Net increase (decrease) | (7,473,386 | ) | $ | (76,922,057 | ) | 1,780,847 | $ | 19,738,250 | ||||||||
| (1) | Class B Shares of Connecticut converted to Class A Shares at the close of business on October 28, 2013. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
| Massachusetts | ||||||||||||||||
| Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 2,082,589 | $ | 20,486,765 | 1,703,066 | $ | 17,645,560 | ||||||||||
Class A – automatic conversion of Class B(1) Shares | 66,431 | 645,156 | 2,485 | 25,460 | ||||||||||||
Class B(1) – exchanges | 176 | 1,778 | — | — | ||||||||||||
Class C(2) | 2,607 | 25,400 | — | — | ||||||||||||
Class C2(3) | 442,528 | 4,428,045 | 608,224 | 6,257,859 | ||||||||||||
Class I | 8,861,737 | 86,794,200 | 1,190,195 | 12,342,516 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 335,876 | 3,316,536 | 273,050 | 2,838,657 | ||||||||||||
Class B(1) | 907 | 9,077 | 2,587 | 26,845 | ||||||||||||
Class C(2) | — | — | — | — | ||||||||||||
Class C2(3) | 67,333 | 659,824 | 60,585 | 623,778 | ||||||||||||
Class I | 365,399 | 3,589,350 | 277,737 | 2,878,445 | ||||||||||||
| 12,225,583 | 119,956,131 | 4,117,929 | 42,639,120 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (2,125,648 | ) | (20,908,144 | ) | (1,127,484 | ) | (11,703,503 | ) | ||||||||
Class B(1) | (28,180 | ) | (280,266 | ) | (41,965 | ) | (436,004 | ) | ||||||||
Class B(1) – automatic conversion to Class A Shares | (66,358 | ) | (645,156 | ) | (2,483 | ) | (25,460 | ) | ||||||||
Class C(2) | — | — | — | — | ||||||||||||
Class C2(3) | (1,014,995 | ) | (9,809,499 | ) | (306,790 | ) | (3,150,199 | ) | ||||||||
Class I | (7,976,814 | ) | (76,971,048 | ) | (1,180,569 | ) | (12,219,063 | ) | ||||||||
| (11,211,995 | ) | (108,614,113 | ) | (2,659,291 | ) | (27,534,229 | ) | |||||||||
| Net increase (decrease) | 1,013,588 | $ | 11,342,018 | 1,458,638 | $ | 15,104,891 | ||||||||||
| (1) | Class B Shares of Massachusetts converted to Class A Shares at the close of business on October 28, 2013. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
| 86 | Nuveen Investments |
| New Jersey | ||||||||||||||||
| Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 4,490,710 | $ | 49,318,042 | 2,816,526 | $ | 32,502,804 | ||||||||||
Class A – automatic conversion of Class B(1) Shares | 77,333 | 853,089 | 45,874 | 521,481 | ||||||||||||
Class B(1) – exchanges | 205 | 2,279 | — | — | ||||||||||||
Class C(2) | 2,761 | 30,245 | — | — | ||||||||||||
Class C2(3) | 629,889 | 6,937,981 | 1,413,773 | 16,212,215 | ||||||||||||
Class I | 1,037,766 | 11,475,766 | 1,586,534 | 18,285,562 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 455,043 | 5,013,283 | 394,457 | 4,550,274 | ||||||||||||
Class B(1) | 2,109 | 23,358 | 5,155 | 59,283 | ||||||||||||
Class C(2) | — | — | — | — | ||||||||||||
Class C2(3) | 99,250 | 1,090,696 | 96,086 | 1,103,777 | ||||||||||||
Class I | 156,468 | 1,731,869 | 154,868 | 1,791,082 | ||||||||||||
| 6,951,534 | 76,476,608 | 6,513,273 | 75,026,478 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (5,840,963 | ) | (63,284,502 | ) | (1,570,259 | ) | (18,085,189 | ) | ||||||||
Class B(1) | (69,165 | ) | (772,607 | ) | (89,559 | ) | (1,031,017 | ) | ||||||||
Class B(1) – automatic conversion to Class A Shares | (77,265 | ) | (853,089 | ) | (45,847 | ) | (521,481 | ) | ||||||||
Class C(2) | — | — | — | — | ||||||||||||
Class C2(3) | (1,273,322 | ) | (13,905,091 | ) | (432,609 | ) | (4,963,163 | ) | ||||||||
Class I | (2,200,232 | ) | (24,127,758 | ) | (955,069 | ) | (11,037,974 | ) | ||||||||
| (9,460,947 | ) | (102,943,047 | ) | (3,093,343 | ) | (35,638,824 | ) | |||||||||
| Net increase (decrease) | (2,509,413 | ) | $ | (26,466,439 | ) | 3,419,930 | $ | 39,387,654 | ||||||||
| (1) | Class B Shares of New Jersey converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
| New York | ||||||||||||||||
| Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 9,404,327 | $ | 100,158,482 | 5,253,400 | $ | 59,252,847 | ||||||||||
Class A – automatic conversion of Class B(1) Shares | 171,590 | 1,828,128 | 19,383 | 216,740 | ||||||||||||
Class B(1) – exchanges | 373 | 4,017 | — | — | ||||||||||||
Class C(2) | 28,200 | 299,487 | — | — | ||||||||||||
Class C2(3) | 660,572 | 7,120,631 | 1,509,125 | 17,008,247 | ||||||||||||
Class I | 994,853 | 10,693,631 | 2,241,064 | 25,253,348 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 951,888 | 10,161,103 | 817,803 | 9,222,800 | ||||||||||||
Class B(1) | 4,836 | 51,812 | 9,425 | 106,054 | ||||||||||||
Class C(2) | 10 | 109 | — | — | ||||||||||||
Class C2(3) | 171,544 | 1,832,757 | 169,497 | 1,909,899 | ||||||||||||
Class I | 841,335 | 9,007,039 | 874,007 | 9,864,994 | ||||||||||||
| 13,229,528 | 141,157,196 | 10,893,704 | 122,834,929 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (11,657,463 | ) | (123,017,692 | ) | (3,985,681 | ) | (44,931,296 | ) | ||||||||
Class B(1) | (152,391 | ) | (1,630,308 | ) | (89,333 | ) | (1,002,304 | ) | ||||||||
Class B(1) – automatic conversion to Class A Shares | (171,604 | ) | (1,828,128 | ) | (19,402 | ) | (216,740 | ) | ||||||||
Class C(2) | (1 | ) | (17 | ) | — | — | ||||||||||
Class C2(3) | (2,156,517 | ) | (22,876,004 | ) | (1,105,893 | ) | (12,449,842 | ) | ||||||||
Class I | (5,044,931 | ) | (53,763,216 | ) | (2,976,721 | ) | (33,616,541 | ) | ||||||||
| (19,182,907 | ) | (203,115,365 | ) | (8,177,030 | ) | (92,216,723 | ) | |||||||||
| Net increase (decrease) | (5,953,379 | ) | $ | (61,958,169 | ) | 2,716,674 | $ | 30,618,206 | ||||||||
| (1) | Class B Shares of New York converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 Shares are not available for new accounts or for additional investment into existing accounts. |
| Nuveen Investments | 87 |
Notes to Financial Statements (continued)
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments, where applicable) during the fiscal year ended February 28, 2014, were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
| Purchases | $ | 33,804,125 | $ | 83,177,937 | $ | 36,979,647 | $ | 335,080,979 | ||||||||
| Sales and maturities | 115,263,557 | 70,683,381 | 61,512,318 | 399,904,053 | ||||||||||||
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 February 28, 2014, 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 | $ | 270,013,882 | $ | 225,078,787 | $ | 262,893,780 | $ | 633,392,062 | ||||||||
| Gross unrealized: | ||||||||||||||||
Appreciation | $ | 13,425,114 | $ | 12,815,028 | $ | 16,120,198 | $ | 31,783,434 | ||||||||
Depreciation | (1,819,191 | ) | (2,696,036 | ) | (3,910,401 | ) | (7,285,191 | ) | ||||||||
| Net unrealized appreciation (depreciation) of investments | $ | 11,605,923 | $ | 10,118,992 | $ | 12,209,797 | $ | 24,498,243 | ||||||||
Permanent differences, primarily due to federal taxes paid, taxable market discount and distribution character reclassifications resulted in reclassifications among the Funds’ components of net assets as of February 28, 2014, the Funds’ tax year end, as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
| Capital paid-in | $ | (16,337 | ) | $ | — | $ | (65 | ) | $ | — | ||||||
| Undistributed (Over-distribution of) net investment income | (524 | ) | 210 | (12,526 | ) | (26,892 | ) | |||||||||
| Accumulated net realized gain (loss) | 16,861 | (210 | ) | 12,591 | 26,892 | |||||||||||
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of February 28, 2014, the Funds’ tax year end, were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
| Undistributed net tax-exempt income1 | $ | 888,300 | $ | 1,490,899 | $ | 1,451,407 | $ | 4,410,486 | ||||||||
| Undistributed net ordinary income2 | 8,919 | 19,757 | 1,051 | 70,296 | ||||||||||||
| 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, 2014, through February 28, 2014 and paid on March 3, 2014. |
| 2 | Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. |
| 88 | Nuveen Investments |
The tax character of distributions paid during the Funds’ tax years ended February 28, 2014 and February 28, 2013, was designated for purposes of the dividends paid deduction as follows:
| 2014 | Connecticut | Massachusetts | New Jersey | New York | ||||||||||||
| Distributions from net tax-exempt income3 | $ | 12,127,022 | $ | 9,265,464 | $ | 10,623,578 | $ | 25,683,867 | ||||||||
| Distributions from net ordinary income2 | 9,198 | 2,453 | 23,508 | 42,556 | ||||||||||||
| Distributions from net long-term capital gains4 | 34,471 | — | — | 535,841 | ||||||||||||
2013 | 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. |
| 3 | The Funds hereby designate these amounts paid during the fiscal year ended February 28, 2014, as Exempt Interest Dividends. |
| 4 | The Funds designate as long term capital gain dividend, pursuant to the Internal Revenue Code 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for tax year ended February 28, 2014. |
As of February 28, 2014, the Funds’ tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
| Expiration: | ||||||||||||||||
February 28, 2017 | $ | — | $ | 12,497 | $ | — | $ | — | ||||||||
February 28, 2018 | — | 98,330 | — | — | ||||||||||||
February 28, 2019 | — | — | 80,823 | — | ||||||||||||
| Not subject to expiration | 6,075,494 | 7,881,440 | 1,403,435 | 8,775,391 | ||||||||||||
| Total | $ | 6,075,494 | $ | 7,992,267 | $ | 1,484,258 | $ | 8,775,391 | ||||||||
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 following fiscal year. The Funds have elected to defer losses as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
| Post-October capital losses5 | $ | 1,061,060 | $ | 240,752 | $ | 203,510 | $ | 4,752,057 | ||||||||
| Late-year ordinary losses6 | — | — | — | — | ||||||||||||
| 5 | Capital losses incurred from November 1, 2013, through February 28, 2014, the Funds’ tax year end. |
| 6 | Ordinary losses incurred from January 1, 2014, through February 28, 2014, and specified losses incurred from November 1, 2013, through February 28, 2014. |
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 | |||
| Nuveen Investments | 89 |
Notes to Financial Statements (continued)
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 February 28, 2014, the complex-level fee rate for each of these Funds was .1672%. |
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% 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 fiscal year ended February 28, 2014, 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 (Unaudited) | $ | 138,986 | $ | 95,777 | $ | 160,971 | $ | 244,963 | ||||||||
| Paid to financial intermediaries (Unaudited) | 122,233 | 86,246 | 134,351 | 221,073 | ||||||||||||
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 fiscal year ended February 28, 2014, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
| Commission advances (Unaudited) | $ | 57,497 | $ | 74,642 | $ | 73,712 | $ | 157,988 | ||||||||
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 and Class C2 Shares during the first year following a purchase are retained by the Distributor. During the fiscal year ended February 28, 2014, the Distributor retained such 12b-1 fees as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
| 12b-1 fees retained (Unaudited) | $ | 50,100 | $ | 46,038 | $ | 81,375 | $ | 102,335 | ||||||||
The remaining 12b-1 fees charged to the Funds were paid to compensate financial intermediaries for providing services to shareholders relating to their investments.
| 90 | Nuveen Investments |
The Distributor also collected and retained CDSC on share redemptions during the fiscal year ended February 28, 2014, as follows:
| Connecticut | Massachusetts | New Jersey | New York | |||||||||||||
| CDSC retained (Unaudited) | $ | 19,029 | $ | 11,297 | $ | 21,004 | $ | 18,428 | ||||||||
8. Subsequent Events
Agreement and Plan of Merger
On April 14, 2014, TIAA-CREF, a national financial services organization, announced that it had entered into an agreement (the “Purchase Agreement”) to acquire Nuveen Investments, the parent company of the Adviser). The transaction is expected to be completed by the end of the year, subject to customary closing conditions, including obtaining necessary Nuveen Fund and client consents sufficient to satisfy the terms of the Purchase Agreement and obtaining customary regulatory approvals. There can be no assurance that the transaction described above will be consummated as contemplated or that necessary conditions will be satisfied.
The consummation of the transaction will be deemed to be an “assignment” (as defined in the Investment Company Act of 1940) of the investment management agreements between the Nuveen Funds and the Adviser and the investment sub-advisory agreements between the Adviser and each Nuveen Fund’s sub-adviser or sub-advisers, and will result in automatic termination of each agreement. It is anticipated that the Board of Directors/Trustees of the Nuveen Funds (the “Board”) will consider a new investment management agreement with the Adviser and new investment sub-advisory agreements with each sub-adviser. If approved by the Board, the new agreements will be presented to the Nuveen Funds’ shareholders for approval, and, if so approved by shareholders, will take effect upon consummation of the transaction or such later time as shareholder approval is obtained.
The transaction is not expected to result in any change in the portfolio management of the Funds or in the Funds’ investment objectives or policies.
| Nuveen Investments | 91 |
Fund Information (Unaudited) | ||||||||||
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. | ||||||||||||||
| ||||||||||||||
FINRA BrokerCheck: The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. | ||||||||||||||
| 92 | Nuveen Investments |
Used in this Report (Unaudited)
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 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.
Lipper Other States Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper Other States 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.
| Nuveen Investments | 93 |
Glossary of Terms Used in this Report (continued) (Unaudited)
Net Asset Value (NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its 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.
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.
| 94 | 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
| Nuveen Investments | 95 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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.
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.
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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.
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
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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.
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.
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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, 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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and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of directors of the Funds is currently set at ten. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent trustees”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
| Independent Trustee: | ||||||||
William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Chairman of Miller-Valentine Partners Med, a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; owner in several other Miller-Valentine entities; Board Member of Mid-America Health System, Tech Town, Inc., a not-for-profit community development company, and WDPR Public Radio Station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council. | 208 | ||||
Robert P. Bremner 1940 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 208 | ||||
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, member and President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 208 | ||||
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 208 | ||||
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Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
David J. Kundert 1942 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Formerly, Director, Northwestern Mutual Wealth Management Company (2006-2013); retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible. | 208 | ||||
John K. Nelson 1962 333 West Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Senior external advisor to the financial services practice of Deloitte Consulting LLP (since 2012); Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Director of The Curran Center for Catholic American Studies (since 2009) and The President’s Council, Fordham University (since 2010); formerly, Chairman of the Board of Trustees of Marian University (2010 as trustee, 2011-2014 as Chairman); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets—the Americas (2006-2007), CEO of Wholesale Banking—North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading—North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | 208 | ||||
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Board Member, Land Trust Alliance (since June 2013) and U.S. Endowment for Forestry and Communities (since November 2013); Formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 208 | ||||
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006), C2 Options Exchange, Incorporated (since 2009) Director, CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 208 | ||||
Virginia L. Stringer 1944 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 208 |
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Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and a member of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 208 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
| Officers of the Funds: | ||||||||
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 208 | ||||
Margo L. Cook 1964 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 208 | ||||
Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004). | 208 | ||||
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Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
Stephen D. Foy 1954 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Managing Director (since 2014), formerly, Senior Vice President (2013-2014), and Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Senior Vice President (2010-2011), Formerly Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Certified Public Accountant. | 208 | ||||
Scott S. Grace 1970 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 208 | ||||
Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) of Nuveen Investments Holdings, Inc. | 208 | ||||
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President of Nuveen Investment Holdings, Inc. | 208 | ||||
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 208 | ||||
Kathleen L. Prudhomme 1953 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | 208 | ||||
Joel T. Slager 1978 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since May, 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013); Tax Director at PricewaterhouseCoopers LLP (from 2008 to 2010). | 208 |
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Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
Jeffery M. Wilson 1956 333 West Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011); formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 107 |
| (1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
| (2) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen Fund Complex. |
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Notes
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Notes
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Notes
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| Serving Investors for Generations | ||||||||||||||
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| 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. | ||||||||||||||
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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 $221 billion as of December 31, 2013. | ||||||||||||||
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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 | ||||||||||||||
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MAN-MS3-0214D
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| Mutual Funds |
Nuveen Municipal
Bond Funds |
| Dependable, tax-free income because it’s not what you earn, it’s what you keep.® |
| Annual Report February 28, 2014 |
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| Fund Name | Class A | Class C | Class C2 | Class I | ||||||||||
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Nuveen California High Yield Municipal Bond Fund | NCHAX | NAWSX | NCHCX | NCHRX | ||||||||||
Nuveen California Municipal Bond Fund | NCAAX | NAKFX | NCACX | NCSPX | ||||||||||
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| NUVEEN INVESTMENTS TO BE ACQUIRED BY TIAA-CREF | ||||||||||||
On April 14, 2014, TIAA-CREF announced that it had entered into an agreement to acquire Nuveen Investments, the parent company of your fund’s investment adviser, Nuveen Fund Advisors, LLC (“NFAL”) and the Nuveen affiliates that act as sub-advisers to the majority of the Nuveen Funds. TIAA-CREF is a national financial services organization with approximately $569 billion in assets under management (as of March 31, 2014) and is a leading provider of retirement services in the academic, research, medical and cultural fields. Nuveen anticipates that it will operate as a separate subsidiary within TIAA-CREF’s asset management business, and that its current leadership and key investment teams will stay in place.
Your Fund investment will not change as a result of Nuveen’s change of ownership. You will still own the same Fund shares and the underlying value of those shares will not change as a result of the transaction. NFAL and your Fund’s sub-adviser(s) will continue to manage your Fund according to the same objectives and policies as before, and we do not anticipate any significant changes to your Fund’s operations. Under the securities laws, the consummation of the transaction will result in the automatic termination of the investment management agreements between the Funds and NFAL and the investment sub-advisory agreements between NFAL and each Fund’s sub-adviser(s). New agreements will be presented to the Funds’ shareholders for approval, and, if approved, will take effect upon consummation of the transaction or such later time as shareholder approval is obtained.
The transaction, expected to be completed by year end, is subject to customary closing conditions. | ||||||||||||
Must be preceded by or accompanied by a prospectus.
NOT FDIC INSURED MAY LOSE VALUE | ||||||||||||
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to Shareholders
Dear Shareholders,
Despite headwinds from slow growth, fiscal and political uncertainty in many countries and some fragile economies around the world, domestic and international equity markets increased significantly in 2013. The emerging markets equity sector was an exception. Other sectors, such as real estate, were flat to down a bit and commodities were notably negative in total return performance. The fixed income market also experienced losses in many sectors.
U.S. equities in particular hit numerous all-time highs during the past year, exceeding prior rising market trends. Europe and Asia struggled with political and financial stresses but Europe’s improving GDP in the second half provided hope that the region can exit recession. In Japan, the economic policies advocated by Prime Minister Shinzo Abe became a positive influence on the economy as deflationary pressures declined, while the economy in China started to stabilize due to monetary easing and supply side reforms. On the domestic front, the Federal Reserve stimulus continued throughout the year but discussion of reductions in the stimulus program caused historically low rates to rise and added to concern that interest rates could rise quickly in the near future. This provided challenges for fixed income investors.
The Federal Reserve’s decision to slow down its bond buying program beginning in December 2013, and the federal budget compromise over government spending into early 2015 were positive signs that the domestic economy is moving forward. We are beginning to experience an economy that can provide encouraging conditions for GDP growth, job growth and low inflation. Additionally, downward trending unemployment and a continuing rebound in the housing market adds to a positive economic scenario going forward.
However, the current year has experienced a tumultuous start. It is in these particularly volatile markets that professional investment management is most important. Investment teams who have experienced challenging markets in the past understand how their asset class can behave in rapidly changing times. Remaining committed to their investment disciplines during these times is a critical component to achieving long-term success. In fact, many strong investment track records are established during challenging periods because experienced investment teams understand that volatile markets place a premium on companies and investment ideas that can weather the short-term volatility. By maintaining appropriate time horizons, diversification and relying on practiced investment teams, we believe that investors can achieve their long-term investment objectives.
As always, I encourage you to communicate with your financial consultant if you have any questions about your investment in a Nuveen 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
April 22, 2014
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Comments
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 U.S. economic and municipal market conditions at both the national and state level, key investment strategies and the Funds’ performance during the twelve-month reporting period ended February 28, 2014. 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.
What factors affected the U.S. economy, the national municipal bond market and the state municipal bond markets during the twelve-month reporting period ending February 28, 2014?
During this reporting period, the U.S. economy’s progress toward recovery from recession continued, although the economy remained below peak levels. The Federal Reserve (Fed) maintained its efforts to bolster growth and promote progress toward its mandates of maximum employment and price stability by holding the benchmark fed funds rate at the record low level of zero to 0.25% that it established in December 2008. Based on its view that the underlying strength in the broader economy was enough to support ongoing improvement in the labor market, the Fed began to reduce, or taper, its monthly asset purchases in $10 billion increments over the course of three consecutive meetings (December 2013, January 2014, and following the end of this reporting period, March 2014). As of April 2014, the Fed’s monthly purchases will comprise $25 billion in mortgage-backed securities (versus the original $40 billion per month) and $30 billion in longer-term Treasury securities (versus $45 billion). Following the March 2014 meeting, the Fed also stated that it would now look at a wide range of factors, including inflation levels and job creation, in determining future actions and that it would likely maintain the current target range for the fed funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Fed’s 2% longer-run goal.
In the fourth quarter of 2013, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.6%, bringing the annual GDP for 2013 to 1.9% and continuing the pattern of positive economic growth for the eleventh consecutive quarter. The Consumer Price Index (CPI) rose 1.1% year-over-year as of February 2014, while the core CPI (which excludes food and energy) increased 1.6% during the same period, staying within the Fed’s unofficial objective of 2.0% or lower for this inflation measure. As of February 2014, the national unemployment rate was 6.7%, down from the 7.7% reported in February 2013. The housing market continued to post gains, as the average home price in the S&P/Case-Shiller Index of 20 major metropolitan areas rose 13.2% for the twelve months ended January 2014 (most recent data available at the time this report was prepared). This brought the average U.S. home price back to mid-2004 levels, although prices continued to be down approximately 20% from their mid-2006 peak.
As this reporting period began, continued political debate over federal spending clouded the outlook for the U.S. economy, as lawmakers failed to reach a resolution on spending cuts intended to address the federal budget deficit. This triggered a program of automatic spending cuts (or sequestration) that impacted federal programs beginning March 1, 2013. Although Congress later
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 (S&P), Moody’s Investors Service, Inc. (Moody’s), or Fitch, Inc. (Fitch). 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.
Bond insurance guarantees only the payment of principal and interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund. No representation is made as to the insurers’ ability to meet their commitments.
| Nuveen Investments | 5 |
Portfolio Managers’ Comments (continued)
passed legislation that established federal funding levels for the remainder of fiscal 2013, the federal budget for Fiscal 2014 remained under debate well into the new fiscal year. On October 1, 2013, the start date for Fiscal 2014, the federal government shut down for 16 days until an interim appropriations bill was signed into law, funding the government at sequestration levels through January 15, 2014, and suspending the debt limit until February 2014. Consensus on a $1.1 trillion federal spending bill was finally reached in January 2014, and in February 2014, members of Congress agreed to suspend the $16.7 trillion debt ceiling until March 2015.
In June 2013, then-Fed Chairman Ben Bernanke’s remarks about potentially tapering the Fed’s asset purchase program touched off widespread uncertainty about the next step for the Fed’s quantitative easing program and its impact on the economy and financial markets. This led to increased market volatility, which was compounded by headline credit stories involving Detroit’s bankruptcy filing in July 2013, the largest municipal bankruptcy in history and the disappointing news that continued to come out of Puerto Rico, where a struggling economy and years of deficit spending and borrowing resulted in multiple downgrades on the commonwealth’s bonds. In this unsettled environment, the Treasury market traded off, the municipal market followed suit and spreads widened as investor concern grew, prompting increased selling by bondholders across the fixed income markets. During the second half of this reporting period, municipal bonds generally rallied, as higher yields sparked increased demand and improving flows into municipal bond funds while supply continued to drop. However, for the reporting period as a whole, municipal bond prices generally declined, especially at the longer end of the maturity spectrum. At the same time, fundamentals on municipal bonds remained strong, as state governments made good progress in dealing with budget issues. Due to strong growth in personal tax collections, year-over-year totals for state tax revenues have increased for 15 consecutive quarters, while on the expense side, the states made headway in cutting and controlling costs, with more than 40 states implementing some type of pension reform. The current level of municipal issuance reflects the more conservative approach to state budgeting as well as a decrease in refunding activity as municipal market yields rose. Over the twelve months ended February 28, 2014, municipal bond issuance nationwide totaled $315.9 billion, a decrease of 17% from the issuance for the twelve-month reporting period ended February 28, 2013.
California’s economy continues to strengthen with employment growth driven by high technology, international trade and tourism but also supplemented by better residential construction and real estate conditions. Risks to recovery remain with the elevated unemployment rates persisting resulting in slow income and wage growth and negatively impacting broader growth through consumption and investment. As of February 2014, California’s unemployment rate was 8.0%, down from 9.4% from February 2013. According to the S&P/Case-Shiller Index, home prices in San Diego, Los Angeles and San Francisco rose 19.4%, 18.9% and 23.1%, respectively, over the twelve months ended January 2014 (most recent data available at the time this report was prepared) compared with an average increase of 13.2% nationally. On the fiscal front, the Fiscal 2014 general fund budget totaled $97.1 billion and did not require major expenditure cuts and revenue raising. The enacted Fiscal 2014 budget builds a $1.1 billion reserve, continues to pay down inter-year deferrals and introduces a new funding formula for schools. Strong revenue growth due to a recovering economy and the passage of Proposition 30 (increases state sales and personal income taxes temporarily) have aided in the State’s fiscal recovery. For Fiscal 2014-2015, the proposed General Fund Governor’s Budget totals $106.7 billion (up 8.5% over revised 2013-2014 General Fund Budget). The proposed budget is expected to be again balanced, add to reserves, continue to pay down the “Wall of Debt” (education funding deferrals and budgetary obligations), focus on building a strong rainy day fund and introduce a five-year plan for infrastructure improvements. In January 2014, S&P affirmed its A rating on California general obligation (GO) debt but revised the Outlook to Positive from Stable, while Moody’s and Fitch maintained their ratings of A1-rated and A-rated, respectively, as of February 2014, maintaining stable outlooks. For the twelve months ended February 28, 2014, municipal issuance in California totaled $45.6 billion, an increase of 3.7% over the previous twelve months. For this reporting period, California was the largest state issuer in the nation, representing approximately 14.4% of total issuance nationwide.
How did the Funds perform during the twelve-month reporting period ended February 28, 2014?
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 one-year, five-year, ten-year and since inception periods ended February 28, 2014. 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 classification average.
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During the twelve-month reporting period, the Nuveen California High Yield Municipal Bond Fund and the Nuveen California Municipal Bond Fund outpaced their respective S&P indexes as well as the Lipper California Municipal Debt Funds Classification Average.
What strategies were used to manage the Funds during the reporting period? How did these strategies influence performance?
All of the Funds continued to employ the same fundamental investment strategies and tactics long relied upon by Nuveen Asset Management. Our municipal bond portfolios are managed with a value oriented approach and close input from Nuveen Asset Management’s research team.
Below we highlight the specific factors influencing each Fund’s investment strategy, as well as how we managed each portfolio in light of recent market conditions.
Nuveen California High Yield Municipal Bond Fund
Despite generating a modest decline along with the market, the Nuveen California High Yield Municipal Bond Fund outperformed the S&P Municipal Yield Index during the twelve months ending February 28, 2014. During the reporting period, investors encountered three very different sets of market conditions. The first of these, from March through roughly the first half of May 2013, was a favorable span for investors in tax-exempt bonds. Starting in late May and continuing for much of the rest of the year, municipal bond market conditions materially worsened, due to worries about rising interest rates and the well publicized credit problems of Puerto Rico and Detroit. The tables turned once again in the first two months of 2014, thanks to an improving supply/demand balance for municipal bonds and a more favorable interest rate outlook.
On a relative basis, the Fund’s duration positioning, meaning its sensitivity to changes in interest rates, was detrimental, in that the portfolio’s duration was longer than that of our benchmark. As rates rose during the first half of the reporting period, the portfolio’s duration naturally extended, even as we made no conscious effort to increase it. At the same time, we did not believe it would be in our shareholders’ interest to change our strategy by intentionally reducing duration during the height of the market’s selloff. Accordingly, we resisted the temptation to sell some of our longer duration holdings.
This willingness to maintain our approach worked in the Fund’s favor. By maintaining a relatively long duration, the Fund was in a position to make up a significant portion of its prior underperformance when market conditions stabilized in the fourth quarter and turned positive in the first two months of 2014.
The Fund’s relative outperformance was helped by effective credit and sector selection during the reporting period. On the individual credit side, the Fund benefited in relative terms from both the limited amount and the specific composition of our holdings in bonds associated with Puerto Rico. It proved very helpful to have a minimal weighting in the U.S. territory, whose bonds are generally tax-exempt for residents of most states. At the start of the reporting period, just 2.7% of the portfolio was classified as Puerto Rico debt. We lacked any exposure to direct government obligations of Puerto Rico, which were the hardest hit, while those Puerto Rico-associated bonds we did own tended to be relatively resilient. Our largest holdings classified as Puerto Rico debt were bonds directly backed by the revenues of American Airlines but issued by the territory’s airport. Despite their Puerto Rico linkage, the securities generated a positive absolute return during the reporting period. On December 9, 2013, AMR Corp., the parent company of AAL, emerged from federal bankruptcy with the acceptance of its reorganization play by the bankruptcy court. Under the settlement agreement established to meet AMR’s unsecured bond obligations, the bondholders, including the Fund, received a distribution of AAL preferred stock, which is to be converted to AAL common stock over a 120-day period.
The Fund also benefited on a relative basis from a position in bonds issued by University of the Sacred Heart, a private higher education institution that receives very little money from the territorial government. Our other Puerto Rico bond exposures during the reporting period included COFINA sales-tax bonds; a small allocation to Hospital Auxilio Mutuo bonds; and relatively short dated Puerto Rico Electric Power Authority (PREPA) bonds, which were insured by National Public Finance Guarantee.
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Portfolio Managers’ Comments (continued)
At period end, our Puerto Rico exposure was very limited, just 0.5% of the portfolio’s net assets were allocated to the bonds of University of the Sacred Heart, whose credit quality with which we remained confident. During the reporting period, we sold the Fund’s positions in Hospital Auxilio Mutuo, COFINA and PREPA.
During the reporting period, a significant portion of the portfolio was invested, on average, in land-backed securities. These securities, backed by property tax revenues, make up a large portion of the California municipal bond marketplace, and we have traditionally been overweighted in this area of the market, to which we devote substantial research resources to identify securities we believe can provide our shareholders with a particularly compelling risk/reward balance. Our high allocation to this sector proved beneficial, given that this sector generally held up better than the overall municipal bond market during its downturn in the second half of 2013. Two particularly notable contributors included special tax bonds for Lammersville Unified School District Community Facilities District and Roseville Community Facilities District for Diamond Creek. In both cases, as investors grew more confident in the issuers’ credit quality, the bonds generated a positive return, even amid the market’s overall decline.
Also of note, the Fund benefited from our holdings in the Foothill/Eastern toll road project, which serves Orange County as State Route 241. These bonds had struggled because of lower than anticipated traffic and therefore, toll revenue. However, when the issuer had the opportunity to restructure its debt by calling its bonds and using the proceeds to issue new securities, both the old and new debt, each of which we owned, saw favorable price performance.
One source of difficulty in absolute terms was the Fund’s allocation to California tobacco securitization debt. Because these types of securities tend to be highly liquid, they were frequent sale candidates during the market’s selloff, and this pushed the bonds’ prices downward. Our more modest exposure to this category compared with that of the benchmark proved helpful.
The Fund had a modest derivative position in the form of LIBOR swaps, an allocation that we used to keep the portfolio’s duration within our desired range. These securities added mildly to the Fund’s performance during the reporting period.
During the second half of 2013, as investment outflows predominated in the marketplace, we had the periodic need to generate enough proceeds to fund the redemptions. Accordingly, our bond sales emphasized relatively liquid securities, including tobacco bonds and prepaid natural gas bonds, both of which continued to experience relatively strong demand.
On the purchase side, we took advantage of opportunities in both the primary and secondary municipal bond market to buy bonds we believed had good total return prospects and were in stable sectors with good potential for credit quality improvement. During the twelve-month reporting period, our purchases included selected land-backed, charter school and hospital bonds that we believed offered the combination of stable credit quality, prospects for further narrowing of credit spreads, and an attractive risk/reward trade-off for shareholders.
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 Fund’s use of leverage through its investments in inverse floating rate securities, which represent leveraged investments in underlying bonds. The Fund uses leverage because our research has shown that, over time, leveraging provides opportunities for additional income and total returns, 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 exposes the Fund to additional price volatility. When a Fund uses leverage, the Fund will experience a greater increase in its net asset value if the municipal bonds acquired through the use of leverage increase in value, but it will also experience a correspondingly larger decline in its net asset value if the bonds acquired through the use of leverage decline 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 in levered funds will typically decrease unlike unlevered funds, when short-term interest rates increase and increase when short-term interest rates decrease, and leverage would serve to reduce the Fund’s income if short-term interest rates rise such that they exceed the net income earned on the bonds purchased with the proceeds of leverage.
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The Fund’s use of leverage through inverse floating rate securities although generating additional net income for the Fund, detracted modestly to the all-in total return of the Fund over this reporting period.
Nuveen California Municipal Bond Fund
Duration and yield curve positioning were key factors behind the Fund’s performance. The portfolio’s duration was longer than that of the overall municipal bond market. This heightened interest rate sensitivity caused the Fund to lag as rates rose sharply from May through September 2013.
In terms of its yield curve positioning, the Fund was relatively underweighted in bonds with maturities between two and six years and overweighted in securities with maturities of under two years and more than six years. This stance detracted, as issues in the intermediate two- to six-year range did comparatively better. The Fund’s longer duration and yield curve positioning proved advantageous in the final months of the reporting period, when interest rates drifted lower.
Favorable credit quality allocation offset much of the overall weakness resulting from duration and yield curve positioning. In particular, the Fund had significant overweightings in BBB-rated and non-rated bonds and significant underweightings in the highest quality tiers of AA- and AAA-rated bonds. Lower rated credits generally outperformed during the reporting period, helped by investors’ appetite for comparatively high yielding securities in the still historically low interest rate environment.
The Fund’s sector positioning was also beneficial. The Fund remained considerably overweighted in bonds of tax increment financing (TIF) districts, also known as redevelopment districts. We purchased these securities prior to the start of the reporting period, when the bonds were selling at what we believed to be temporarily depressed prices. Since then, the sector recovered and, as investors gradually became more comfortable with the group, it was one of the California market’s best performing segments. The Fund also benefited from its overweighting in the transportation sector (particularly toll road bonds), another category that outpaced the benchmark. By contrast, the Fund’s overweighting in health care bonds detracted, due to that sector’s relative underperformance.
During the reporting period, moderate amounts of investment inflows came into the portfolio and we experienced some bond calls, both of which we used to fund new purchases. Once interest rates began to rise, we started to purchase bonds with the potential to improve the yield generating ability of the portfolio without altering the Fund’s overall risk profile. Higher prevailing interest rates 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. This approach had the added advantage of realizing tax losses that can be applied against future gains, thus reducing future tax liability for shareholders.
Later in the reporting period, we added bonds priced at a premium and offering higher levels of income. These bonds were more defensive than the ones we were selling, which we believed would provide a degree of protection if market conditions remained challenging.
Making swaps among our tobacco holdings was another key strategy. We traded out of very large and liquid tobacco securities and replaced them with those backed by smaller issuers. In doing so, we often improved the overall credit profile of our tobacco holdings, since many of our purchases were securities expected to have short average lives.
We also purchased lower quality, higher yielding securities when they were selling in the fall at what we viewed as attractive prices. At the same time, we sold certain lower yielding, high quality bonds with short call dates, whose price appreciation potential and yield we felt were limited.
Throughout the reporting period, the Fund had less than 1% of its assets in Puerto Rico bonds, resulting in no material impact on the Fund’s absolute performance or relative to the index, even as bonds from the U.S. territory came under severe pressure.
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Portfolio Managers’ Comments (continued)
An Update Involving Puerto Rico
Another factor affecting the municipal bond market were the multiple downgrades to below investment grade debt issued by Puerto Rico in the aftermath of the commonwealth’s continued economic weakening, escalating debt service obligations and longstanding inability to deliver a balanced budget. After the most recent round of downgrades in early February 2014, Moody’s, S&P and Fitch rated Puerto Rico GO debt at Ba2/BB+/BB, respectively, with negative outlooks. Ratings on sales tax bonds issued by Puerto Rico Sales Tax Financing Corporation (COFINA) also were lowered during the reporting period, with senior sales tax revenue bonds rated Baa1/AA-/AA- and subordinate sales tax revenue bonds rated Baa2/A+/A+ by Moody’s, S&P and Fitch, respectively, as of February 2014. 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. For the reporting period ended February 28, 2014, Puerto Rico paper underperformed the municipal market as a whole. A look at Puerto Rico’s tax-supported debt (GO, COFINA, and guaranteed debt) as a whole makes it clear the debt was structured based upon an assumption of a steadily growing economy in the commonwealth. Unfortunately for Puerto Rico, its economy continues to struggle with high unemployment and population loss, among other problems. As a result, we believe that Puerto Rico bonds, particularly bonds that lack a lien on specific revenues (i.e., COFINA sales tax bonds) or are not backed by healthy bond insurers, currently carry significant economic, fiscal and political risks.
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and Dividend Information
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 February 28, 2014, the Funds had positive UNII balances for both tax and financial reporting purposes.
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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 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 February 28, 2014
| Average Annual | ||||||||||||
1-Year | 5-Year | Since | ||||||||||
Class A Shares at NAV | (0.69)% | 12.57% | 3.94% | |||||||||
Class A Shares at maximum Offering Price | (4.91)% | 11.59% | 3.38% | |||||||||
S&P Municipal Yield Index*** | (1.21)% | 10.49% | 4.62% | |||||||||
Lipper California Municipal Debt Funds Classification Average*** | (0.94)% | 6.78% | 4.02% | |||||||||
Class C2 Shares | (1.25)% | 11.96% | 3.37% | |||||||||
Class I Shares | (0.60)% | 12.80% | 4.13% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.85% | |||
Average Annual Total Returns as of March 31, 2014 (Most Recent Calendar Quarter)
| Average Annual | ||||||||||||
1-Year | 5-Year | Since | ||||||||||
Class A Shares at NAV | 0.76% | 13.15% | 4.06% | |||||||||
Class A Shares at maximum Offering Price | (3.45)% | 12.18% | 3.50% | |||||||||
Class C2 Shares | 0.19% | 12.54% | 3.48% | |||||||||
Class I Shares | 0.85% | 13.35% | 4.24% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 3.00% | |||
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 and C2 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
| Share Class | ||||||||||||||||
Class A | Class C | Class C2 | Class I | |||||||||||||
Expense Ratios | 0.89% | 1.69% | 1.44% | 0.69% | ||||||||||||
Effective Leverage Ratio as of February 28, 2014
Effective Leverage Ratio | 11.43% |
| 14 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of February 28, 2014 – Class A Shares
The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| * | Since inception returns are from 3/28/06. |
| ** | Since inception returns for Class C Shares are from 2/10/14. |
| *** | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| Nuveen Investments | 15 |
Fund Performance, Expense and Effective Leverage Ratios (continued)
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 February 28, 2014
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 0.29% | 8.03% | 4.54% | |||||||||
Class A Shares at maximum Offering Price | (3.92)% | 7.12% | 4.10% | |||||||||
S&P Municipal Bond Index** | (0.27)% | 6.11% | 4.45% | |||||||||
S&P Municipal Bond California Index** | 0.77% | 6.73% | 4.77% | |||||||||
Lipper California Municipal Debt Funds Classification Average* | (0.94)% | 6.78% | 3.89% | |||||||||
Class C2 Shares | (0.28)% | 7.44% | 3.98% | |||||||||
Class I Shares | 0.55% | 8.26% | 4.76% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.24% | |||
Average Annual Total Returns as of March 31, 2014 (Most Recent Calendar Quarter)
| Average Annual | ||||||||||||
1-Year | 5-Year | 10-Year | ||||||||||
Class A Shares at NAV | 0.95% | 8.28% | 4.64% | |||||||||
Class A Shares at maximum Offering Price | (3.30)% | 7.35% | 4.19% | |||||||||
Class C2 Shares | 0.37% | 7.69% | 4.07% | |||||||||
Class I Shares | 1.12% | 8.48% | 4.85% | |||||||||
| Cumulative | ||||
Since | ||||
Class C Shares | 1.62% | |||
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 and C2 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
| Share Class | ||||||||||||||||
Class A | Class C | Class C2 | Class I | |||||||||||||
Expense Ratios | 0.80% | 1.60% | 1.35% | 0.60% | ||||||||||||
Effective Leverage Ratio as of February 28, 2014
Effective Leverage Ratio | 0.00% |
| 16 | Nuveen Investments |
Growth of an Assumed $10,000 Investment as of February 28, 2014 – Class A Shares
The graphs do not reflect the deduction of taxes, such as state and local income taxes or capital gains taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.
| * | Since inception returns for Class C Shares are from 2/10/14. |
| ** | Refer to the Glossary of Terms Used in this Report for definitions. Indexes and Lipper averages are not available for direct investment. |
| Nuveen Investments | 17 |
Yields as of February 28, 2014
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
| Share Class | ||||||||||||||||
Class A2 | Class C | Class C2 | Class I | |||||||||||||
Dividend Yield | 4.61% | 3.99% | 4.26% | 5.02% | ||||||||||||
SEC 30-Day Yield | 4.56% | 3.47% | 4.22% | 4.97% | ||||||||||||
Taxable-Equivalent Yield1 | 6.98% | 5.31% | 6.46% | 7.61% | ||||||||||||
Nuveen California Municipal Bond Fund
| Share Class | ||||||||||||||||
Class A2 | Class C | Class C2 | Class I | |||||||||||||
Dividend Yield | 3.98% | 3.37% | 3.59% | 4.32% | ||||||||||||
SEC 30-Day Yield | 3.22% | 2.16% | 2.82% | 3.56% | ||||||||||||
Taxable-Equivalent Yield1 | 4.93% | 3.31% | 4.32% | 5.45% | ||||||||||||
| 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. |
| 18 | Nuveen Investments |
Summaries February 28, 2014
This data relates to the securities held in each Fund’s portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
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
Fund Allocation
(% of net assets)
Municipal Bonds | 99.3% | |||
Common Stocks | 0.6% | |||
Convertible Preferred Securities | 0.4% | |||
Floating Rate Obligations | (0.3)% | |||
Other Assets Less Liabilities | 0.0% |
Portfolio Composition
(% of net assets)
Tax Obligation/Limited | 50.3% | |||
Education and Civic Organizations | 10.3% | |||
Health Care | 10.2% | |||
Consumer Staples | 5.0% | |||
Transportation | 4.9% | |||
Housing/Multifamily | 4.4% | |||
Water and Sewer | 3.9% | |||
Other Industries | 11.0% | |||
Other Assets Less Liabilities | 0.0% |
Bond Credit Quality
(% of total investment exposure)
AAA/U.S. Guaranteed | 1.2% | |||
AA | 16.0% | |||
A | 24.1% | |||
BBB | 15.9% | |||
BB or Lower | 10.8% | |||
N/R (not rated) | 31.5% | |||
N/A (not applicable) | 0.5% |
| Nuveen Investments | 19 |
Holding Summaries February 28, 2014 (continued)
This data relates to the securities held in each Fund’s portfolio of investments as of the end of this reporting period. It should not be construed as a measure of performance for the Fund itself. Holdings are subject to change.
Nuveen California Municipal Bond Fund
Fund Allocation
(% of net assets)
Municipal Bonds | 97.6% | |||
Other Assets Less Liabilities | 2.4% |
Portfolio Composition
(% of net assets)
Tax Obligation/Limited | 33.5% | |||
Health Care | 16.3% | |||
Tax Obligation/General | 15.2% | |||
Education and Civic Organizations | 7.1% | |||
Transportation | 6.1% | |||
Water and Sewer | 5.6% | |||
Consumer Staples | 4.4% | |||
Other Industries | 9.4% | |||
Other Assets Less Liabilities | 2.4% |
Bond Credit Quality
(% of total investment exposure)
AAA/U.S. Guaranteed | 3.8% | |||
AA | 24.7% | |||
A | 33.6% | |||
BBB | 19.7% | |||
BB or Lower | 7.6% | |||
N/R (not rated) | 10.6% |
| 20 | Nuveen Investments |
Examples
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. Since the expense examples for Class C Shares reflect only the first 18 days of the Funds’ operations, they may not provide a meaningful understanding of the Funds’ ongoing expenses.
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
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||
A Shares | C Shares | C2 Shares | I Shares | A Shares | C Shares | C2 Shares | I Shares | |||||||||||||||||||||||||
Beginning Account Value (9/01/13) | $ | 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 (2/28/14) | $ | 1,117.80 | $ | 1,118.50 | $ | 1,114.80 | $ | 1,117.90 | $ | 1,020.43 | $ | 1,001.60 | $ | 1,017.70 | $ | 1,021.42 | ||||||||||||||||
Expenses Incurred During Period | $ | 4.62 | $ | 0.87 | $ | 7.50 | $ | 3.57 | $ | 4.41 | $ | 0.86 | $ | 7.15 | $ | 3.41 | ||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .88%, 1.43% and .68% for Classes A, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). For Class C, expenses are equal to the Fund’s annualized net expense ratio of 1.75%, multiplied by the average account value over the period, multiplied by 18/365 (to reflect the 18 days in the period since commencement of operations).
Nuveen California Municipal Bond Fund
| Actual Performance | Hypothetical Performance | |||||||||||||||||||||||||||||||
A Shares | C Shares | C2 Shares | I Shares | A Shares | C Shares | C2 Shares | I Shares | |||||||||||||||||||||||||
Beginning Account Value (9/01/13) | $ | 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 (2/28/14) | $ | 1,071.20 | $ | 1,012.40 | $ | 1,068.30 | $ | 1,072.20 | $ | 1,020.78 | $ | 1,001.67 | $ | 1,018.05 | $ | 1,021.77 | ||||||||||||||||
Expenses Incurred During Period | $ | 4.16 | $ | 0.80 | $ | 6.97 | $ | 3.13 | $ | 4.06 | $ | 0.80 | $ | 6.80 | $ | 3.06 | ||||||||||||||||
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of .81%, 1.36% and .61% for Classes A, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). For Class C, expenses are equal to the Fund’s annualized net expense ratio of 1.62%, multiplied by the average account value over the period, multiplied by 18/365 (to reflect the 18 days in the period since commencement of operations).
| Nuveen Investments | 21 |
Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Multistate Trust II:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Nuveen California High Yield Municipal Bond Fund and Nuveen California Municipal Bond Fund (each a series of the Nuveen Multistate Trust II, hereinafter referred to as the “Funds”) at February 28, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Chicago, IL
April 28, 2014
| 22 | Nuveen Investments |
Nuveen California High Yield Municipal Bond Fund
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 100.3% | ||||||||||||||||||
MUNICIPAL BONDS – 99.3% | ||||||||||||||||||
Consumer Discretionary – 0.5% | ||||||||||||||||||
| $ | 255 | Austin Convention Enterprises Inc., Texas, Convention Center Hotel Revenue Bonds, Third Tier Series 2001C, 9.750%, 1/01/26 | 7/14 at 100.00 | N/R | $ | 256,584 | ||||||||||||
Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds, Southgate Suites Retail Project, Series 2007A: | ||||||||||||||||||
| 1,000 | 6.750%, 12/15/37 (4) | 12/17 at 100.00 | N/R | 557,480 | ||||||||||||||
| 160 | 6.000%, 12/15/37 | 3/14 at 100.00 | N/R | 89,197 | ||||||||||||||
| 15 | Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds, Southgate Suites Retail Project, Series 2007B, 9.000%, 12/15/14 | No Opt. Call | N/R | 8,362 | ||||||||||||||
| 500 | Morongo Band of Mission Indians, Enterprise Revenue Bonds, California, Series 2008B, 6.500%, 3/01/28 | 3/18 at 100.00 | N/R | 545,385 | ||||||||||||||
| 120 | 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 | 118,961 | ||||||||||||||
| 2,050 | Total Consumer Discretionary | 1,575,969 | ||||||||||||||||
Consumer Staples – 5.0% | ||||||||||||||||||
| 3,045 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Gold Country Settlement Funding Corporation, Series 2006, 0.000%, 6/01/33 | 5/14 at 100.00 | CCC | 693,742 | ||||||||||||||
| 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 | 752,350 | ||||||||||||||
| 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– | 39,158 | ||||||||||||||
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: | ||||||||||||||||||
| 6,250 | 5.000%, 6/01/33 | 6/17 at 100.00 | B | 4,988,688 | ||||||||||||||
| 2,695 | 5.750%, 6/01/47 | 6/17 at 100.00 | B | 2,220,896 | ||||||||||||||
| 500 | 5.125%, 6/01/47 | 6/17 at 100.00 | B | 377,050 | ||||||||||||||
| 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 | 1,960,275 | ||||||||||||||
| 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 | 884,400 | ||||||||||||||
| 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– | 795,830 | ||||||||||||||
Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2006A: | ||||||||||||||||||
| 1,000 | 5.000%, 6/01/37 | 6/14 at 100.00 | BB+ | 774,690 | ||||||||||||||
| 3,845 | 5.125%, 6/01/46 | 6/14 at 100.00 | B+ | 2,842,070 | ||||||||||||||
| 26,885 | Total Consumer Staples | 16,329,149 | ||||||||||||||||
| Nuveen Investments | 23 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations – 10.3% | ||||||||||||||||||
| $ | 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– | $ | 1,976,620 | ||||||||||||
| 1,065 | California Educational Facilities Authority, Revenue Bonds, Dominican University, Series 2006, 5.000%, 12/01/36 | 12/16 at 100.00 | Baa3 | 1,063,477 | ||||||||||||||
| 75 | California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2005A, 5.000%, 10/01/35 | 10/15 at 100.00 | A3 | 76,033 | ||||||||||||||
| 95 | California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006, 5.000%, 11/01/36 | 11/15 at 100.00 | A2 | 96,035 | ||||||||||||||
California Educational Facilities Authority, Revenue Bonds, Woodbury University, Series 2006: | ||||||||||||||||||
| 1,165 | 5.000%, 1/01/30 | 1/15 at 100.00 | Baa3 | 1,148,632 | ||||||||||||||
| 500 | 5.000%, 1/01/36 | 1/15 at 100.00 | Baa3 | 479,445 | ||||||||||||||
| 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 | 930,420 | ||||||||||||||
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+ | 1,162,699 | ||||||||||||||
| 1,850 | 5.250%, 8/01/42 | No Opt. Call | BB+ | 1,572,944 | ||||||||||||||
| 675 | 5.300%, 8/01/47 | 8/22 at 100.00 | BB+ | 569,032 | ||||||||||||||
| 2,000 | California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship Education Multiple Projects, Series 2014A , 7.000%, 6/01/34 | 6/22 at 102.00 | N/R | 2,018,620 | ||||||||||||||
| 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– | 802,030 | ||||||||||||||
| 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 | 1,335,908 | ||||||||||||||
| 1,500 | California Municipal Finance Authority, Revenue Bonds, Biola University, Refunding Series 2008A, 5.875%, 10/01/34 | 4/18 at 100.00 | Baa1 | 1,586,415 | ||||||||||||||
| 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 | 311,277 | ||||||||||||||
| 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– | 526,548 | ||||||||||||||
| 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 | 1,024,370 | ||||||||||||||
| 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+ | 1,278,013 | ||||||||||||||
| 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 | 945,230 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Educational Facilities Reveue Bonds, Huntington Park Charter School Project, Series 2007A, 5.250%, 7/01/42 | 7/17 at 100.00 | N/R | 827,840 | ||||||||||||||
| 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– | 1,116,856 | ||||||||||||||
| 1,000 | California Statewide Communitities 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 | 1,098,490 | ||||||||||||||
| 24 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 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+ | $ | 910,339 | ||||||||||||
| 1,000 | California Statewide Community Development Authority, Revenue Bonds, California Baptist University, Series 2007A, 5.500%, 11/01/38 | 11/17 at 102.00 | N/R | 925,070 | ||||||||||||||
| 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 | 2,019,561 | ||||||||||||||
| 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 | 197,632 | ||||||||||||||
| 380 | 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 | 350,029 | ||||||||||||||
| 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 | 180,966 | ||||||||||||||
| 585 | La Vernia Education Financing Corporation, Texas, Charter School Revenue Bonds, Riverwalk Education Foundation, Series 2007A, 5.450%, 8/15/36 | 8/14 at 100.00 | N/R | 579,150 | ||||||||||||||
California School Finance Authority, Educational Facility Revenue Bonds, Partnership to Uplift Communities Valley Project, Series 2014 | ||||||||||||||||||
| 880 | 6.400%, 8/01/34 (WI/DD, Settling 3/12/14) | 2/24 at 100.00 | BB | 880,000 | ||||||||||||||
| 2,040 | 6.750%, 8/01/44 (WI/DD, Settling 3/12/14) | 2/24 at 100.00 | BB | 2,040,000 | ||||||||||||||
| 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 | 93,575 | ||||||||||||||
| 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 | BB+ | 62,301 | ||||||||||||||
| 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 | 318,799 | ||||||||||||||
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 | 615,449 | ||||||||||||||
| 1,250 | 4.375%, 10/01/31 | No Opt. Call | BBB | 907,763 | ||||||||||||||
| 1,250 | University of California, General Revenue Bonds, Tender Option Bond Trust 2013-24U, 18.331%, 5/15/39 (IF) (5) | 5/23 at 100.00 | AA | 1,674,000 | ||||||||||||||
| 34,850 | Total Education and Civic Organizations | 33,701,568 | ||||||||||||||||
Health Care – 10.2% | ||||||||||||||||||
| 625 | California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Tender Option Bond Trust 1270, 17.779%, 4/01/42 (IF) (5) | 4/22 at 100.00 | A+ | 714,050 | ||||||||||||||
| 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 | 1,254,306 | ||||||||||||||
| 695 | California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children’s Hospital, Tender Option Bond Trust 4726, 18.393%, 8/15/51 (IF) | 8/22 at 100.00 | AA | 773,174 | ||||||||||||||
California Health Facilities Financing Authority, Revenue Bonds, Stanford Hospitals and Clinics, Tender Option Bond Trust 3294: | ||||||||||||||||||
| 250 | 18.453%, 8/15/41 (IF) (5) | 8/22 at 100.00 | AA– | 278,120 | ||||||||||||||
| 1,000 | 18.448%, 8/15/41 (IF) (5) | 8/22 at 100.00 | AA– | 1,112,440 | ||||||||||||||
| 750 | California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, Series 2010A, 5.750%, 7/01/40 | 7/20 at 100.00 | Baa2 | 778,748 | ||||||||||||||
| Nuveen Investments | 25 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 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 | $ | 1,019,160 | ||||||||||||
| 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 | 1,339,710 | ||||||||||||||
| 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 | 530,377 | ||||||||||||||
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 | 251,890 | ||||||||||||||
| 5,000 | 5.000%, 8/15/47 | 8/17 at 100.00 | BBB+ | 4,972,500 | ||||||||||||||
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– | 753,128 | ||||||||||||||
| 515 | 5.250%, 7/01/35 | 7/15 at 100.00 | BBB– | 512,997 | ||||||||||||||
| 715 | California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3048, 19.116%, 11/15/32 (IF) | 5/18 at 100.00 | AA– | 780,008 | ||||||||||||||
| 1,285 | California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 3102, 19.176%, 11/15/48 (IF) (5) | 5/18 at 100.00 | AA– | 1,401,832 | ||||||||||||||
| 1,000 | California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Trust 2554, 18.668%, 7/01/47 – AGM Insured (IF) | 7/18 at 100.00 | AA | 1,101,800 | ||||||||||||||
| 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 | 1,640,475 | ||||||||||||||
| 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+ | 364,168 | ||||||||||||||
| 1,060 | Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 7.000%, 11/01/35 | 11/20 at 100.00 | BB+ | 1,084,751 | ||||||||||||||
Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009: | ||||||||||||||||||
| 1,000 | 5.500%, 11/01/19 | No Opt. Call | Baa3 | 1,071,750 | ||||||||||||||
| 500 | 6.750%, 11/01/39 | 11/19 at 100.00 | Baa3 | 515,335 | ||||||||||||||
| 500 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41 | 11/20 at 100.00 | Baa3 | 490,685 | ||||||||||||||
| 5,500 | Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Series 2007A, 5.000%, 7/01/38 | 7/17 at 100.00 | Baa2 | 5,502,970 | ||||||||||||||
San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011: | ||||||||||||||||||
| 1,000 | 8.000%, 12/01/26 | 12/21 at 100.00 | BB | 1,211,640 | ||||||||||||||
| 500 | 7.500%, 12/01/41 | 12/21 at 100.00 | BB | 564,595 | ||||||||||||||
| 2,500 | Tulare Local Health Care District, California, Revenue Bonds, Series 2007, 5.200%, 11/01/32 | 11/17 at 100.00 | B | 2,099,325 | ||||||||||||||
| 1,000 | Washington Township Health Care District, California, Revenue Bonds, Refunding Series 2007A, 5.000%, 7/01/32 | 7/17 at 100.00 | Baa1 | 1,005,120 | ||||||||||||||
| 60 | Weatherford Hospital Authority, Oklahoma, Sales Tax Revenue Bonds, Series 2006, 6.000%, 5/01/31 | 5/16 at 103.00 | N/R | 58,489 | ||||||||||||||
| 32,500 | Total Health Care | 33,183,543 | ||||||||||||||||
| 26 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Housing/Multifamily – 4.4% | ||||||||||||||||||
| $ | 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 | $ | 1,432,830 | ||||||||||||
| 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 | 493,862 | ||||||||||||||
| 2,000 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Windsor Mobile Country Club, Subordinate Series 2013B, 7.000%, 11/01/48 | 11/23 at 100.00 | N/R | 2,033,500 | ||||||||||||||
| 400 | California Municipal Finance Authority, Revenue Bonds, University Students Coop Association, Series 2007, 4.750%, 4/01/27 | 4/17 at 100.00 | BBB– | 393,096 | ||||||||||||||
| 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 | 932,580 | ||||||||||||||
| 355 | California Statewide Community Development Authority, Multifamily Housing Revenue Bonds, Magnolia City Lights, Series 1999X, 6.650%, 7/01/39 | 5/14 at 100.00 | N/R | 354,993 | ||||||||||||||
Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Augusta Communities Mobile Home Park, Series 2012A: | ||||||||||||||||||
| 740 | 5.000%, 5/15/39 | 5/22 at 100.00 | A– | 745,646 | ||||||||||||||
| 1,010 | 5.000%, 5/15/47 | 5/22 at 100.00 | A– | 1,011,131 | ||||||||||||||
| 1,340 | Independent Cities Lease Finance Authority, California, Mobile Home Park Refunding Bonds, Rancho Feliz and Las Casitas De Sonoma, Series 2012, 5.000%, 10/15/47 | No Opt. Call | BBB | 1,321,160 | ||||||||||||||
| 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 | 1,005,740 | ||||||||||||||
| 1,250 | Richmond, California, Joint Powers Financing Agency Multifamily Housing Revenue Bonds, Westridge Hilltop Apartments, Series 2007, 5.000%, 12/15/33 | 6/14 at 100.00 | Baa2 | 1,096,988 | ||||||||||||||
| 2,571 | 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 | 2,209,950 | ||||||||||||||
| 485 | Santa Clara County Housing Authority, California, Multifamily Housing Revenue Bonds, Blossom River Project, Series 1998A, 6.500%, 9/01/39 | 5/14 at 100.00 | N/R | 484,947 | ||||||||||||||
| 607 | 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) | 7/16 at 100.00 | N/R | 588,760 | ||||||||||||||
| 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 | 358,066 | ||||||||||||||
| 15,123 | Total Housing/Multifamily | 14,463,249 | ||||||||||||||||
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 | A– | 473,720 | ||||||||||||||
| 600 | California Housing Finance Agency, Home Mortgage Revenue Bonds, Tender Option Bond Trust 3206, 9.331%, 8/01/25 (Alternative Minimum Tax) (IF) | 2/17 at 100.00 | A– | 514,362 | ||||||||||||||
| 1,100 | Total Housing/Single Family | 988,082 | ||||||||||||||||
Industrials – 0.0% | ||||||||||||||||||
| 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 | A– | 69,318 | ||||||||||||||
| 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 | 3,860 | ||||||||||||||
| Nuveen Investments | 27 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Industrials (continued) | ||||||||||||||||||
| $ | 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 | $ | 24,675 | ||||||||||||
| 1,815 | Total Industrials | 97,853 | ||||||||||||||||
Long-Term Care – 1.7% | ||||||||||||||||||
California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009: | ||||||||||||||||||
| 500 | 8.000%, 11/01/29 | 11/19 at 100.00 | Baa1 | 588,385 | ||||||||||||||
| 1,040 | 8.500%, 11/01/39 | 11/19 at 100.00 | AA | 1,233,045 | ||||||||||||||
| 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+ | 548,746 | ||||||||||||||
| 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 | 986,340 | ||||||||||||||
| 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 | 866,840 | ||||||||||||||
| 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 | 49,909 | ||||||||||||||
| 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 | 1,151,250 | ||||||||||||||
| 5,110 | Total Long-Term Care | 5,424,515 | ||||||||||||||||
Tax Obligation/General – 3.8% | ||||||||||||||||||
Bakersfield City School District, Kern County, California, General Obligation Bonds, Series 2012C: | ||||||||||||||||||
| 1,700 | 0.000%, 5/01/37 | No Opt. Call | Aa2 | 618,426 | ||||||||||||||
| 5,000 | 0.000%, 5/01/47 | 5/40 at 100.00 | Aa2 | 1,744,250 | ||||||||||||||
| 1,630 | California State, General Obligation Bonds, Various Purpose Series 2013, 5.000%, 4/01/43 | 4/23 at 100.00 | A1 | 1,728,273 | ||||||||||||||
| 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 | 594,217 | ||||||||||||||
| 1,000 | Guam Government, General Obligation Bonds, 2009 Series A, 7.000%, 11/15/39 | 11/19 at 100.00 | BB– | 1,060,030 | ||||||||||||||
| 500 | Guam, General Obligation Bonds, Series 2007A, 5.250%, 11/15/37 | 11/17 at 100.00 | BB– | 461,735 | ||||||||||||||
| 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+ | 557,385 | ||||||||||||||
| 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+ | 545,570 | ||||||||||||||
| 250 | Palomar Pomerado Health, California, General Obligation Bonds, Tender Option Bond Trust 4683, 18.072%, 8/01/37 – NPFG Insured (IF) (5) | 8/17 at 100.00 | AA– | 270,710 | ||||||||||||||
| 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 | 415,017 | ||||||||||||||
| 1,980 | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Tender Option Bond Trust Series 3330, 14.369%, 1/01/21 (IF) (5) | No Opt. Call | AA– | 1,583,050 | ||||||||||||||
| 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– | 1,343,231 | ||||||||||||||
| 28 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 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+ | $ | 504,840 | ||||||||||||
| 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 | 978,296 | ||||||||||||||
| 21,600 | Total Tax Obligation/General | 12,405,030 | ||||||||||||||||
Tax Obligation/Limited – 50.3% | ||||||||||||||||||
Anaheim Public Financing Authority, California, Subordinate Lease Revenue Bonds, Public Improvement Project, Series 1997C: | ||||||||||||||||||
| 300 | 0.000%, 9/01/28 – AGM Insured | No Opt. Call | AA– | 144,684 | ||||||||||||||
| 240 | 0.000%, 9/01/30 – AGM Insured | No Opt. Call | AA– | 101,362 | ||||||||||||||
| 4,475 | 0.000%, 9/01/34 – AGM Insured | No Opt. Call | AA– | 1,393,649 | ||||||||||||||
| 4,305 | 0.000%, 9/01/35 – AGM Insured | No Opt. Call | AA– | 1,242,983 | ||||||||||||||
| 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 | 868,230 | ||||||||||||||
Azusa, California, Special Tax Bonds, Community Facilities District 2005-1 Rosedale Improvement Area 1, Series 2007: | ||||||||||||||||||
| 590 | 5.000%, 9/01/27 | 9/17 at 100.00 | N/R | 600,874 | ||||||||||||||
| 1,000 | 5.000%, 9/01/37 | 9/17 at 100.00 | N/R | 1,001,800 | ||||||||||||||
| 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 | 1,054,344 | ||||||||||||||
| 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 | 1,002,640 | ||||||||||||||
| 1,000 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 8C, Series 2007E, 6.250%, 9/01/38 | 5/14 at 100.00 | N/R | 1,002,450 | ||||||||||||||
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 | 61,351 | ||||||||||||||
| 125 | 8.625%, 9/01/39 | 9/16 at 100.00 | N/R | 127,770 | ||||||||||||||
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– | 726,450 | ||||||||||||||
| 2,300 | 0.000%, 8/01/29 – AMBAC Insured | No Opt. Call | AA– | 1,048,202 | ||||||||||||||
| 6,710 | 0.000%, 8/01/30 – AMBAC Insured | No Opt. Call | AA– | 2,873,759 | ||||||||||||||
| 1,500 | Brentwood Infrastructure Financing Authority, Contra Costa County, California, CIFP 2006-1 Infrastructure Revenue Bonds, Series 2006, 5.200%, 9/02/36 | 5/14 at 100.00 | N/R | 1,496,685 | ||||||||||||||
| 5,600 | California Community College Financing Authority, Lease Revenue Bonds, Refunding Series 2003, 0.000%, 6/01/33 – AMBAC Insured | No Opt. Call | A+ | 1,987,440 | ||||||||||||||
| 2,000 | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2013I, 5.000%, 11/01/38 | 11/23 at 100.00 | A2 | 2,107,300 | ||||||||||||||
| 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 | 960,060 | ||||||||||||||
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 | 967,330 | ||||||||||||||
| 2,000 | 5.125%, 9/01/42 | No Opt. Call | N/R | 1,901,840 | ||||||||||||||
| Nuveen Investments | 29 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 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 | $ | 1,022,710 | ||||||||||||
| 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 | 1,455,059 | ||||||||||||||
| 1,175 | 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 | 1,203,529 | ||||||||||||||
| 1,000 | California Statewide Community Development Authority, Infrastructure Program Revenue Bonds, Series 2006A, 5.200%, 9/02/36 | 9/14 at 100.00 | N/R | 944,680 | ||||||||||||||
| 250 | California Statewide Community Development Authority, Revenue Bonds, Epidaurus Project, Series 2004A, 7.750%, 3/01/34 | 3/16 at 100.00 | N/R | 252,158 | ||||||||||||||
| 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– | 567,370 | ||||||||||||||
| 315 | Chino Public Financing Authority, California, Revenue Refunding Bonds, Series 2012, 5.000%, 9/01/38 | 9/22 at 100.00 | N/R | 315,576 | ||||||||||||||
| 660 | Chula Vista, California, Special Tax Bonds, Community Facilities District 12-1 McMillin Otay Ranch Village Seven, Series 2005, 5.250%, 9/01/30 | 9/14 at 100.00 | N/R | 662,119 | ||||||||||||||
| 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 | 975,160 | ||||||||||||||
| 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 | 514,970 | ||||||||||||||
| 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+ | 1,167,170 | ||||||||||||||
| 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+ | 1,224,019 | ||||||||||||||
| 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 | 913,311 | ||||||||||||||
| 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 | 237,900 | ||||||||||||||
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 | 82,074 | ||||||||||||||
| 10 | 5.000%, 9/01/20 | 9/17 at 100.00 | N/R | 10,161 | ||||||||||||||
| 50 | 5.125%, 9/01/22 | 9/17 at 100.00 | N/R | 50,603 | ||||||||||||||
| 1,200 | 5.250%, 9/01/37 | 9/15 at 102.00 | N/R | 1,180,896 | ||||||||||||||
| 1,000 | Emeryville Public Financing Authority, California, Revenue Bonds, Redevelopment Projects, Series 2001A, 5.125%, 9/01/31 – NPFG Insured | 5/14 at 100.00 | A | 1,000,730 | ||||||||||||||
| 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 | 527,665 | ||||||||||||||
| 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 | 678,661 | ||||||||||||||
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Tender Option Bond Trust 1011: | ||||||||||||||||||
| 750 | 17.669%, 6/01/45 (IF) (5) | 6/15 at 100.00 | A– | 723,990 | ||||||||||||||
| 1,000 | 17.647%, 6/01/45 (IF) (5) | 6/15 at 100.00 | A– | 965,360 | ||||||||||||||
| 30 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 500 | Government of Guam, Business Privilege Tax Bonds, Series 2012B-1, 5.000%, 1/01/42 | 1/22 at 100.00 | A | $ | 504,000 | ||||||||||||
| 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+ | 903,822 | ||||||||||||||
| 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 | 1,022,400 | ||||||||||||||
| 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 | 1,000,600 | ||||||||||||||
| 200 | Hemet Unified School District, California, Community Facilities District 2005-1 Special Tax Bonds, Series 2006, 5.125%, 9/01/36 | 9/14 at 100.00 | N/R | 200,008 | ||||||||||||||
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 | 829,890 | ||||||||||||||
| 500 | 4.750%, 8/01/35 – AMBAC Insured | 8/15 at 100.00 | N/R | 348,615 | ||||||||||||||
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 | 1,297,938 | ||||||||||||||
| 1,000 | 5.500%, 9/01/27 – SYNCORA GTY Insured | No Opt. Call | N/R | 1,011,200 | ||||||||||||||
| 1,080 | 5.000%, 9/01/31 – SYNCORA GTY Insured | 9/17 at 100.00 | N/R | 1,023,656 | ||||||||||||||
| 1,405 | 5.000%, 9/01/37 – SYNCORA GTY Insured | 9/17 at 100.00 | N/R | 1,284,704 | ||||||||||||||
| 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– | 674,316 | ||||||||||||||
Inglewood Public Financing Authority, California, Lease Revenue Bonds, Refunding Series 2012: | ||||||||||||||||||
| 2,530 | 0.000%, 8/01/23 | No Opt. Call | Baa2 | 1,372,753 | ||||||||||||||
| 1,600 | 0.000%, 8/01/25 | No Opt. Call | Baa2 | 737,376 | ||||||||||||||
| 1,050 | 0.000%, 8/01/28 | 8/22 at 66.37 | Baa2 | 380,615 | ||||||||||||||
| 2,430 | 0.000%, 8/01/33 | No Opt. Call | Baa2 | 594,597 | ||||||||||||||
| 1,650 | 0.000%, 8/01/35 | No Opt. Call | Baa2 | 347,639 | ||||||||||||||
| 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 | 120,569 | ||||||||||||||
| 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 | 1,253,661 | ||||||||||||||
| 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 | 769,470 | ||||||||||||||
| 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 | 343,318 | ||||||||||||||
| 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 | 1,220,049 | ||||||||||||||
| 995 | 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 | 996,463 | ||||||||||||||
| 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 | 819,825 | ||||||||||||||
| 1,455 | 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 | 1,455,524 | ||||||||||||||
| Nuveen Investments | 31 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 3,000 | 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 | $ | 3,007,200 | ||||||||||||
| 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 | 1,728,120 | ||||||||||||||
| 710 | Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Series 2009, 6.875%, 8/01/39 | No Opt. Call | BBB | 773,240 | ||||||||||||||
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 | 495,820 | ||||||||||||||
| 1,000 | 4.750%, 8/01/33 – NPFG Insured | 8/15 at 102.00 | A | 938,950 | ||||||||||||||
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 | 1,020,990 | ||||||||||||||
| 500 | 5.250%, 9/01/32 | 9/23 at 100.00 | N/R | 509,995 | ||||||||||||||
| 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– | 1,177,800 | ||||||||||||||
| 1,000 | Los Angeles Community Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Bunker Hill Redevelopment Project, Series 2004L, 5.000%, 3/01/18 | 9/14 at 100.00 | BBB– | 1,012,460 | ||||||||||||||
| 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– | 236,905 | ||||||||||||||
| 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– | 1,511,921 | ||||||||||||||
| 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 | 669,383 | ||||||||||||||
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+ | 340,329 | ||||||||||||||
| 1,550 | 7.500%, 8/01/41 | 8/21 at 100.00 | BBB+ | 1,748,369 | ||||||||||||||
| 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+ | 563,990 | ||||||||||||||
| 1,890 | Merced Redevelopment Agency, California, Tax Allocation Bonds, Merced Redevelopment Project 2, Series 2003A, 0.000%, 12/01/21 – AMBAC Insured | No Opt. Call | N/R | 1,326,459 | ||||||||||||||
| 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 | 98,474 | ||||||||||||||
| 905 | Monrovia Financing Authority, California, Lease Revenue Bonds, Hillside Wilderness Preserve Project, Series 2002, 5.000%, 12/01/20 – AMBAC Insured | 5/14 at 100.00 | A+ | 916,376 | ||||||||||||||
| 1,705 | Moorpark, California, Special Tax Bonds, Community Facilities District 2004-1, Refunding Junior Lien Series 2014B, 5.000%, 9/01/33 | 9/24 at 100.00 | N/R | 1,659,425 | ||||||||||||||
| 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 | 65,342 | ||||||||||||||
| 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 | 1,002,480 | ||||||||||||||
| 32 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 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 | $ | 941,590 | ||||||||||||
| 1,310 | Murrieta Valley Unified School District Public Finance Authority, Riverside County, California, Refunding Bonds Series 2013, 5.000%, 9/01/33 | 9/23 at 100.00 | N/R | 1,337,838 | ||||||||||||||
| 590 | Murrieta, California, Special Tax Bonds, Community Facilities District 2003-3, Creekside Village Improvement Area 1, Series 2005, 5.200%, 9/01/35 | 9/14 at 100.00 | N/R | 590,873 | ||||||||||||||
| 1,250 | Dana Point, California, Special Tax Bonds, Community Facilities District No. 2006-1, Series 2014, 5.000%, 9/01/45 (WI/DD, Settling 3/13/14) | No Opt. Call | N/R | 1,250,000 | ||||||||||||||
| 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+ | 367,749 | ||||||||||||||
| 1,000 | Pacifica, California, Certificates of Participation, Series 2008, 5.375%, 1/01/37 – AMBAC Insured | 1/16 at 102.00 | A– | 1,037,720 | ||||||||||||||
| 3,530 | Palm Desert, California, Limited Obligation Improvement Bonds, Section 29 Assessment District 2004-02, Series 2007, 5.100%, 9/02/37 | 9/14 at 100.00 | N/R | 3,370,268 | ||||||||||||||
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 | 295,362 | ||||||||||||||
| 910 | 5.450%, 9/01/32 | 9/16 at 100.00 | N/R | 894,039 | ||||||||||||||
| 350 | 5.300%, 9/01/32 | 9/16 at 100.00 | N/R | 337,862 | ||||||||||||||
| 1,345 | 5.500%, 9/01/36 | 9/16 at 100.00 | N/R | 1,305,040 | ||||||||||||||
| 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 | 10/14 at 100.00 | BB | 1,632,080 | ||||||||||||||
| 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 | 834,680 | ||||||||||||||
| 500 | Palm Springs Financing Authority, California, Lease Revenue Bonds, Downtown Revitalization Project, Series 2012B, 5.000%, 6/01/35 | No Opt. Call | A+ | 517,575 | ||||||||||||||
| 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 | 1,039,220 | ||||||||||||||
| 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– | 496,280 | ||||||||||||||
| 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 | 1,033,520 | ||||||||||||||
| 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 | 1,078,780 | ||||||||||||||
| 220 | Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011, 6.125%, 9/01/41 | 9/14 at 100.00 | N/R | 227,077 | ||||||||||||||
| 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– | 1,566,765 | ||||||||||||||
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 | 1,476,940 | ||||||||||||||
| 2,500 | 0.000%, 8/01/28 – AMBAC Insured | No Opt. Call | A | 1,167,300 | ||||||||||||||
| Nuveen Investments | 33 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 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– | $ | 1,054,092 | ||||||||||||
| 350 | Poway Redevelopment Agency, California, Tax Allocation Bonds, Paguay Redevelopment Project, Series 2001, 5.125%, 6/15/33 – AMBAC Insured | 6/14 at 100.00 | N/R | 350,063 | ||||||||||||||
| 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 | 2,043,000 | ||||||||||||||
| 500 | Rancho Cordova, California, Special Tax Bonds, Sunridge Anatolia Area Community Facilities District 2003-1, Series 2005, 5.500%, 9/01/37 | 9/14 at 100.00 | N/R | 503,200 | ||||||||||||||
| 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 | 626,702 | ||||||||||||||
| 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+ | 1,110,710 | ||||||||||||||
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– | 753,878 | ||||||||||||||
| 1,260 | 0.000%, 7/15/31 – AMBAC Insured | No Opt. Call | A– | 478,422 | ||||||||||||||
| 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 | 544,220 | ||||||||||||||
| 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+ | 693,783 | ||||||||||||||
| 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 | 1,593,429 | ||||||||||||||
| 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– | 539,610 | ||||||||||||||
| 205 | Riverside County Redevelopment Agency, California, Tax Allocation Housing Bonds, Series 2011A, 7.125%, 10/01/42 | 10/21 at 100.00 | A– | 234,383 | ||||||||||||||
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 | 674,527 | ||||||||||||||
| 2,000 | 5.000%, 9/01/42 | 9/22 at 100.00 | N/R | 2,011,460 | ||||||||||||||
| 870 | 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 | 859,830 | ||||||||||||||
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 | 1,931,180 | ||||||||||||||
| 510 | 5.000%, 8/01/37 – NPFG Insured | 8/17 at 100.00 | A | 510,138 | ||||||||||||||
| 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 | 120,674 | ||||||||||||||
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– | 311,191 | ||||||||||||||
| 1,155 | 0.000%, 9/01/35 – NPFG Insured | No Opt. Call | AA– | 333,795 | ||||||||||||||
| 1,140 | Romoland School District, California, Special Tax Bonds, Community Facilities District 2004-1 Heritage Lake Improvement Area 3, Series 2013, 5.000%, 9/01/43 | 9/23 at 100.00 | N/R | 1,155,504 | ||||||||||||||
| 34 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 1,000 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Diamond Creek, Series 2007, 5.000%, 9/01/37 | 9/14 at 100.00 | N/R | $ | 954,340 | ||||||||||||
| 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 | 1,819,098 | ||||||||||||||
| 1,510 | Sacramento City Financing Authority California, Lease Revenue Bonds, Master Lease Program Facilities Projects, Tender Option Bond Trust 4698, 18.765%, 12/01/33 – AMBAC Insured (IF) (5) | No Opt. Call | A | 2,052,634 | ||||||||||||||
| 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+ | 491,302 | ||||||||||||||
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 | 1,578,069 | ||||||||||||||
| 4,435 | 0.000%, 12/01/32 – FGIC Insured | No Opt. Call | A | 1,527,059 | ||||||||||||||
| 437 | Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, Grace Lofts Redevelopment Projects, Series 2007A, 6.000%, 3/27/26 | 6/14 at 100.00 | N/R | 380,767 | ||||||||||||||
| 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 | 486,840 | ||||||||||||||
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– | 561,655 | ||||||||||||||
| 500 | 6.500%, 8/01/39 | 8/19 at 100.00 | A– | 559,235 | ||||||||||||||
| 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 | 418,555 | ||||||||||||||
| 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 | 372,020 | ||||||||||||||
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 | 516,270 | ||||||||||||||
| 1,000 | 3.750%, 8/01/28 – NPFG Insured | 8/17 at 100.00 | A | 892,700 | ||||||||||||||
| 1,185 | 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 | 1,045,407 | ||||||||||||||
| 400 | 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 | 385,200 | ||||||||||||||
| 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– | 1,015,970 | ||||||||||||||
| 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 | 1,871,695 | ||||||||||||||
| 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 | 559,470 | ||||||||||||||
| 1,000 | South Gate, California, Certificates of Participation, Series 2002A, 5.000%, 9/01/24 – AMBAC Insured | 9/14 at 100.00 | A– | 1,001,660 | ||||||||||||||
Stockton Public Financing Authority, California, Lease Revenue Bonds, Series 2004: | ||||||||||||||||||
| 305 | 5.125%, 9/01/30 – FGIC Insured | 9/14 at 100.00 | A | 270,407 | ||||||||||||||
| 235 | 5.250%, 9/01/34 – FGIC Insured | 9/14 at 100.00 | A | 208,412 | ||||||||||||||
| Nuveen Investments | 35 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
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 | $ | 116,224 | ||||||||||||
| 420 | 5.000%, 9/01/28 – FGIC Insured | 9/14 at 100.00 | A | 374,447 | ||||||||||||||
| 1,700 | 5.000%, 9/01/36 – FGIC Insured | 9/14 at 100.00 | A | 1,465,264 | ||||||||||||||
| 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 | 2,513,000 | ||||||||||||||
| 1,250 | Successor Agency to the Redevelopment Agency of the City and County of San Francisco, California, 2014 Series A Tax Allocation Bonds (Mission Bay South Redevelopment Project), 5.000%, 8/01/43 (WI/DD, Settling 3/11/14) | 8/24 at 100.00 | BBB+ | 1,268,738 | ||||||||||||||
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 | 1,691,833 | ||||||||||||||
| 500 | 5.500%, 9/01/33 | 9/22 at 100.00 | N/R | 512,970 | ||||||||||||||
| 1,000 | Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities District 03-02 Roripaugh, Series 2013, 5.450%, 9/01/26 | 9/14 at 102.00 | N/R | 921,480 | ||||||||||||||
| 1,000 | Tulare Public Financing Authority, California, Lease Revenue Bonds, Series 2008, 5.375%, 4/01/35 | No Opt. Call | AA– | 1,097,730 | ||||||||||||||
| 530 | Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.250%, 9/01/29 | 3/21 at 100.00 | BBB+ | 573,264 | ||||||||||||||
| 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+ | 723,405 | ||||||||||||||
| 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 | 595,580 | ||||||||||||||
| 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 | 473,925 | ||||||||||||||
| 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 | 704,207 | ||||||||||||||
| 2,000 | Virgin Islands Public Finance Authority, Gross Receipts Taxes Loan Note, Refunding Series 2012A, 5.000%, 10/01/32 | No Opt. Call | BBB+ | 2,021,480 | ||||||||||||||
| 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 | 968,350 | ||||||||||||||
| 600 | West Hollywood Community Development Commission, California, Tax Allocation Revenue Bonds, East Side Redevelopment Project Series 2011A, 7.500%, 9/01/42 | 9/21 at 100.00 | A– | 707,958 | ||||||||||||||
| 3,705 | West Sacramento Financing Authority, California, Special Tax Revenue Bonds, Series 2014, 5.500%, 9/01/31 | 9/22 at 102.00 | N/R | 3,729,453 | ||||||||||||||
| 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 | 535,125 | ||||||||||||||
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 | 713,671 | ||||||||||||||
| 1,340 | 5.000%, 9/01/36 | 9/14 at 102.00 | N/R | 1,345,574 | ||||||||||||||
| 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 | 200,584 | ||||||||||||||
| 36 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 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 | $ | 135,045 | ||||||||||||
| 201,924 | Total Tax Obligation/Limited | 164,254,531 | ||||||||||||||||
Transportation – 4.9% | ||||||||||||||||||
| 1,125 | Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Tender Option Bond Trust 2985, 17.952%, 4/01/17 (IF) | No Opt Call | AA | 1,537,076 | ||||||||||||||
| 3,000 | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Junior Lien Series 2013C, 6.250%, 1/15/33 | 1/24 at 100.00 | BB+ | 3,169,530 | ||||||||||||||
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 2013A: | ||||||||||||||||||
| 5,000 | 0.000%, 1/15/37 – AGM Insured | No Opt. Call | AA– | 1,351,550 | ||||||||||||||
| 270 | 5.000%, 1/15/42 – AGM Insured | 1/24 at 100.00 | AA– | 272,924 | ||||||||||||||
| 745 | Guam International Airport Authority, Revenue Bonds, Series 2013C, 6.250%, 10/01/34 (Alternative Minimum Tax) | 10/23 at 100.00 | BBB | 790,445 | ||||||||||||||
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 | 35,158 | ||||||||||||||
| 40 | 5.550%, 7/01/28 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 39,299 | ||||||||||||||
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 | 255,738 | ||||||||||||||
| 450 | 6.500%, 7/01/27 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 459,324 | ||||||||||||||
| 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 (6) | No Opt. Call | N/R | 95,936 | ||||||||||||||
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 | 1,962,909 | ||||||||||||||
| 6,935 | 0.000%, 1/15/26 – NPFG Insured | No Opt. Call | A | 3,526,101 | ||||||||||||||
| 350 | 0.000%, 1/15/27 – NPFG Insured | No Opt. Call | A | 164,983 | ||||||||||||||
| 240 | 5.250%, 1/15/30 – NPFG Insured | 7/14 at 100.00 | A | 236,556 | ||||||||||||||
| 2,035 | 0.000%, 1/15/31 – NPFG Insured | No Opt. Call | A | 733,760 | ||||||||||||||
| 1,275 | 0.000%, 1/15/36 – NPFG Insured | No Opt. Call | A | 320,930 | ||||||||||||||
| 1,000 | San Jose, California, Airport Revenue Bonds, Series 2007B, 5.000%, 3/01/33 – AMBAC Insured | 3/17 at 100.00 | A2 | 1,021,390 | ||||||||||||||
| 26,510 | Total Transportation | 15,973,609 | ||||||||||||||||
U.S. Guaranteed – 1.4% (7) | ||||||||||||||||||
| 500 | ABAG Finance Authority for Nonprofit Corporations, California, Revenue Bonds, Sharp HealthCare, Series 2009B, 6.375%, 8/01/34 (Pre-refunded 8/01/14) | 8/14 at 100.00 | AA– (7) | 513,240 | ||||||||||||||
| 375 | Bessemer, Alabama, General Obligation Warrants, Series 2007, 6.500%, 2/01/37 (Pre-refunded 2/01/17) | 2/17 at 101.00 | N/R (7) | 424,841 | ||||||||||||||
| 5 | California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006, 5.000%, 11/01/36 (Pre-refunded 11/01/15) | 11/15 at 100.00 | N/R (7) | 5,404 | ||||||||||||||
| 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 (7) | 102,855 | ||||||||||||||
| Nuveen Investments | 37 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed (7) (continued) | ||||||||||||||||||
| $ | 955 | Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Series 2009, 6.875%, 8/01/39 (Pre-refunded 8/01/19) | 8/19 at 100.00 | N/R (7) | $ | 1,239,370 | ||||||||||||
| 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 (7) | 113,613 | ||||||||||||||
| 500 | Val Verde Unified School District Financing Authority, California, Special Tax Revenue, Junior Lien Refunding Series 2003, 6.250%, 10/01/28 (Pre-refunded 4/01/14) | 4/14 at 102.00 | N/R (7) | 505,725 | ||||||||||||||
| 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 (7) | 643,488 | ||||||||||||||
| 1,000 | Woodland Finance Authority, California, Lease Revenue Bonds, Series 2002, 5.000%, 3/01/32 (Pre-refunded 4/01/14) – SYNCORA GTY Insured | 4/14 at 101.00 | A2 (7) | 1,008,750 | ||||||||||||||
| 4,120 | Total U.S. Guaranteed | 4,557,286 | ||||||||||||||||
Utilities – 2.5% | ||||||||||||||||||
Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A: | ||||||||||||||||||
| 25 | 5.500%, 11/15/28 | No Opt. Call | A | 27,611 | ||||||||||||||
| 325 | 5.000%, 11/15/29 | No Opt. Call | A | 340,522 | ||||||||||||||
| 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 | 2,240,760 | ||||||||||||||
| 1,000 | M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009B, 6.500%, 11/01/39 | No Opt. Call | A | 1,264,950 | ||||||||||||||
| 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 | 1,069,240 | ||||||||||||||
Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A: | ||||||||||||||||||
| 1,000 | 5.000%, 11/01/29 | No Opt. Call | A | 1,058,050 | ||||||||||||||
| 220 | 5.000%, 11/01/33 | No Opt. Call | A | 224,983 | ||||||||||||||
| 2,500 | 1.630%, 11/01/38 | No Opt. Call | A | 1,908,825 | ||||||||||||||
| 13,960 | Total Utilities | 8,134,941 | ||||||||||||||||
Water and Sewer – 4.0% | ||||||||||||||||||
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, San Diego County Water Authority Desalination Project Pipeline, Series 2012: | ||||||||||||||||||
| 2,000 | 5.000%, 7/01/37 | No Opt. Call | Baa3 | 2,008,720 | ||||||||||||||
| 3,500 | 5.000%, 11/21/45 | No Opt. Call | Baa3 | 3,499,720 | ||||||||||||||
| 500 | Dinuba Financing Authority, California, Wastewater System Revenue Bonds, Series 2007, 5.375%, 9/01/38 | 9/17 at 100.00 | N/R | 460,545 | ||||||||||||||
| 1,000 | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2005, 5.875%, 7/01/35 | 7/15 at 100.00 | A– | 1,008,300 | ||||||||||||||
Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2010: | ||||||||||||||||||
| 1,000 | 5.250%, 7/01/25 | 7/20 at 100.00 | A– | 1,014,725 | ||||||||||||||
| 1,000 | 5.500%, 7/01/30 | 7/20 at 100.00 | A– | 1,026,265 | ||||||||||||||
| 500 | Guam Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2013, 5.250%, 7/01/33 | 7/23 at 100.00 | A– | 511,825 | ||||||||||||||
.
| 38 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Water and Sewer (continued) | ||||||||||||||||||
| $ | 365 | Palmdale Water District Public Financing Authority, California, Water Revenue Bonds, Series 2013A, 5.000%, 10/01/34 – AGM Insured | 10/23 at 100.00 | AA– | $ | 389,180 | ||||||||||||
| 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 | 1,570,513 | ||||||||||||||
| 1,250 | Stockton Public Financing Authority, California, Water Revenue Bonds, Delta Water Supply Project, Series 2010A, 6.250%, 10/01/40 | 10/23 at 100.00 | A– | 1,377,975 | ||||||||||||||
| 12,615 | Total Water and Sewer | 12,867,768 | ||||||||||||||||
| $ | 400,162 | Total Municipal Bonds (cost $319,983,091) | 323,957,093 | |||||||||||||||
| Shares | Description (1) | Value | ||||||||||||||||
COMMON STOCKS – 0.6% | ||||||||||||||||||
Airlines – 0.6% | ||||||||||||||||||
| 54,603 | American Airlines Group Inc., (8) | $ | 2,016,489 | |||||||||||||||
Total Common Stocks (cost $1,590,515) | 2,016,489 | |||||||||||||||||
| Shares | Description (1) | Coupon | Ratings (3) | Value | ||||||||||||||
CONVERTIBLE PREFERRED SECURITIES – 0.4% | ||||||||||||||||||
Airlines – 0.4% | ||||||||||||||||||
| 49,414 | American Airlines Group Inc., (8) | 6.250 | % | N/R | $ | 1,373,709 | ||||||||||||
Total Convertible Preferred Securities (cost $1,261,017) | 1,373,709 | |||||||||||||||||
Total Long-Term Investments (cost $322,834,623) | 327,347,291 | |||||||||||||||||
Floating Rate Obligations – (0.3)% | (915,000 | ) | ||||||||||||||||
Other Assets Less Liabilities – 0.0% (9) | (144,523 | ) | ||||||||||||||||
Net Assets – 100% | $ | 326,287,768 | ||||||||||||||||
Investments in Derivatives as of February 28, 2014:
Interest rate swaps outstanding:
| Counterparty | Notional Amount | Fund Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Effective Date (10) | Termination Date | Unrealized Appreciation (Depreciation) (9) | ||||||||||||||||||||||||
Barclays PLC | $ | 4,600,000 | Receive | 3-Month USD-LIBOR | 2.670% | Semi-Annually | 6/26/14 | 6/26/42 | $ | 819,900 | ||||||||||||||||||||||
| Nuveen Investments | 39 |
Nuveen California High Yield Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the 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 security, 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 or inverse floating rate transactions. |
| (6) | Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees. For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Note 2 – Investment Valuation and Fair Value Measurements for more information. |
| (7) | 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. |
| (8) | On November 28, 2011, AMR Corp. (“AMR”), the parent company of American Airlines Group, Inc. (“AAL”) filed for federal bankruptcy protection. On December 9, 2013, AMR emerged from federal bankruptcy with the acceptance of its reorganization plan by the bankruptcy court. Under the settlement agreement established to meet AMR’s unsecured bond obligations, the bondholders, including the Fund, received a distribution of AAL preferred stock which is to be converted to AAL common stock over a 120-day period. Every 30 days, a quarter of the preferred stock will be converted to AAL common stock based on the 5-day volume-weighted average price and the amount of preferred shares tendered during the optional preferred conversion period. |
| (9) | 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. |
| (10) | Effective date represents the date on which both the Fund and Counterparty commence interest payment accruals on each forward swap contract. |
| WI/DD | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
| (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.
| 40 | Nuveen Investments |
Nuveen California Municipal Bond Fund
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
LONG-TERM INVESTMENTS – 97.6% | ||||||||||||||||||
MUNICIPAL BONDS – 97.6% | ||||||||||||||||||
Consumer Staples – 4.4% | ||||||||||||||||||
| $ | 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 | 5/14 at 100.00 | Baa1 | $ | 2,869,879 | ||||||||||||
| �� | 3,500 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A, 5.650%, 6/01/41 | 12/18 at 100.00 | BB– | 2,834,510 | |||||||||||||
| 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+ | 253,708 | ||||||||||||||
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: | ||||||||||||||||||
| 6,615 | 5.750%, 6/01/47 | 6/17 at 100.00 | B | 5,451,289 | ||||||||||||||
| 13,450 | 5.125%, 6/01/47 | 6/17 at 100.00 | B | 10,142,645 | ||||||||||||||
Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1: | ||||||||||||||||||
| 2,500 | 5.375%, 6/01/38 | 6/15 at 100.00 | B– | 1,989,575 | ||||||||||||||
| 3,105 | 5.500%, 6/01/45 | 6/15 at 100.00 | B– | 2,432,892 | ||||||||||||||
| 3,500 | Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2006A, 5.000%, 6/01/37 | 6/14 at 100.00 | BB+ | 2,711,415 | ||||||||||||||
| 35,840 | Total Consumer Staples | 28,685,913 | ||||||||||||||||
Education and Civic Organizations – 7.1% | ||||||||||||||||||
| 240 | California Educational Facilities Authority, Revenue Bonds, Claremont Graduate University, Series 2007A, 5.000%, 3/01/20 | 3/17 at 100.00 | Baa1 | 259,147 | ||||||||||||||
| 865 | California Educational Facilities Authority, Revenue Bonds, Claremont Graduate University, Series 2008A, 5.000%, 3/01/23 | 3/18 at 100.00 | Baa1 | 937,262 | ||||||||||||||
| 1,000 | California Educational Facilities Authority, Revenue Bonds, Pitzer College, Refunding Series 2009, 5.375%, 4/01/34 | 4/20 at 100.00 | A2 | 1,072,250 | ||||||||||||||
| 1,000 | California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2008A, 5.000%, 8/01/28 | 8/18 at 100.00 | A3 | 1,052,800 | ||||||||||||||
California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006: | ||||||||||||||||||
| 105 | 5.000%, 11/01/21 | 11/15 at 100.00 | A2 | 111,108 | ||||||||||||||
| 1,000 | 5.000%, 11/01/30 | 11/15 at 100.00 | A2 | 1,058,600 | ||||||||||||||
California Educational Facilities Authority, Revenue Bonds, Woodbury University, Series 2006: | ||||||||||||||||||
| 450 | 4.400%, 1/01/15 | No Opt. Call | Baa3 | 454,806 | ||||||||||||||
| 470 | 4.500%, 1/01/16 | 1/15 at 100.00 | Baa3 | 475,762 | ||||||||||||||
| 2,960 | 5.000%, 1/01/36 | 1/15 at 100.00 | Baa3 | 2,838,314 | ||||||||||||||
| 635 | California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program, Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax) | 9/14 at 100.00 | Baa1 | 635,933 | ||||||||||||||
| 1,500 | California Municipal Finance Authority Charter School Revenue Bonds, Albert Einstein Academies Project, Series 2013A , 6.750%, 8/01/33 | 8/23 at 100.00 | BB | 1,542,510 | ||||||||||||||
| 1,125 | California Municipal Finance Authority, Charter School Revenue Bonds, Rocketship Education Multiple Projects, Series 2014A , 7.250%, 6/01/43 | 6/22 at 102.00 | N/R | 1,137,375 | ||||||||||||||
| Nuveen Investments | 41 |
Nuveen California Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Education and Civic Organizations (continued) | ||||||||||||||||||
| $ | 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– | $ | 354,436 | ||||||||||||
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 | 1,001,670 | ||||||||||||||
| 1,500 | 7.000%, 10/01/39 | 10/18 at 100.00 | N/R | 1,501,020 | ||||||||||||||
California Municipal Finance Authority, Revenue Bonds, Biola University, Refunding Series 2008A: | ||||||||||||||||||
| 1,000 | 5.000%, 10/01/18 | No Opt. Call | Baa1 | 1,125,110 | ||||||||||||||
| 500 | 5.625%, 10/01/23 | 4/18 at 100.00 | Baa1 | 543,240 | ||||||||||||||
| 855 | California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento Valley & Northern Nevada Project, Series 2012A, 5.750%, 1/01/22 | No Opt. Call | N/R | 878,530 | ||||||||||||||
| 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+ | 1,656,915 | ||||||||||||||
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+ | 2,040,120 | ||||||||||||||
| 4,040 | 7.000%, 7/01/48 | 7/23 at 100.00 | BB+ | 4,120,679 | ||||||||||||||
| 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 | 778,080 | ||||||||||||||
| 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 | 561,915 | ||||||||||||||
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 | 3,206,730 | ||||||||||||||
| 4,000 | 5.000%, 9/01/34 | No Opt. Call | Aa3 | 4,257,840 | ||||||||||||||
| 1,000 | California State Public Works Board, Lease Revenue Bonds, University of California Department of Education Riverside Campus Project, Series 2009B, 5.750%, 4/01/23 | 4/19 at 100.00 | A2 | 1,138,310 | ||||||||||||||
| 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 | 1,048,941 | ||||||||||||||
| 200 | California State Public Works Board, Lease Revenue Refunding Bonds, Community Colleges Projects, Series 1999A, 4.875%, 12/01/18 | 5/14 at 100.00 | A2 | 200,606 | ||||||||||||||
| 285 | California State University, Systemwide Revenue Bonds, Series 2005C, 5.000%, 11/01/25 | 11/15 at 100.00 | Aa2 | 305,500 | ||||||||||||||
| 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– | 1,825,630 | ||||||||||||||
| 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 | 988,160 | ||||||||||||||
| 5,690 | University of California, General Revenue Bonds, Refunding Series 2009O, 5.250%, 5/15/39 | 5/19 at 100.00 | Aa1 | 6,380,595 | ||||||||||||||
| 43,250 | Total Education and Civic Organizations | 45,489,894 | ||||||||||||||||
Health Care – 16.3% | ||||||||||||||||||
| 2,000 | Antelope Valley Healthcare District, California, Insured Revenue Refunding Bonds, Series 1997A, 5.200%, 1/01/27 – AGM Insured | 7/14 at 100.00 | AA– | 2,002,000 | ||||||||||||||
| 2,000 | Antelope Valley Healthcare District, California, Revenue Bonds, Series 2011A, | 3/21 at 100.00 | Ba2 | 2,172,840 | ||||||||||||||
| 42 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Health Care (continued) | ||||||||||||||||||
| $ | 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– | $ | 2,265,206 | ||||||||||||
| 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 | 564,655 | ||||||||||||||
| 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 | 1,125,060 | ||||||||||||||
| 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 | 3,301,860 | ||||||||||||||
| 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+ | 1,035,650 | ||||||||||||||
| 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 | 1,157,870 | ||||||||||||||
| 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 | 1,801,677 | ||||||||||||||
| 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 | A1 | 6,363,900 | ||||||||||||||
| 200 | California Health Facilities Financing Authority, Revenue Bonds, Scripps Health, Refunding Series 2008A, 5.000%, 10/01/22 | 10/18 at 100.00 | AA– | 231,414 | ||||||||||||||
| 1,830 | California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A, 5.250%, 11/15/46 | 11/16 at 100.00 | AA– | 1,855,565 | ||||||||||||||
| 2,000 | California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42 | 8/20 at 100.00 | AA– | 2,335,560 | ||||||||||||||
| 2,000 | California Municipal Finance Authority, Certificates of Participation, Community Hospitals of Central California Obligated Group, Series 2009, 5.500%, 2/01/39 | 2/19 at 100.00 | BBB | 2,029,160 | ||||||||||||||
| 2,000 | California Statewide Communities Development Authority, Health Facility Revenue Bonds, Community Hospital of the Monterey Peninsula, Series 2011A, 6.000%, 6/01/33 | 6/21 at 100.00 | AA– | 2,260,440 | ||||||||||||||
| 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 | 5,805,410 | ||||||||||||||
| 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 | 1,081,300 | ||||||||||||||
California Statewide Community Development Authority, Health Revenue Bonds, Enloe Medical Center, Refunding Series 2008A: | ||||||||||||||||||
| 125 | 5.250%, 8/15/19 | 8/18 at 100.00 | A | 142,191 | ||||||||||||||
| 500 | 5.500%, 8/15/23 | 8/18 at 100.00 | A | 572,925 | ||||||||||||||
| 2,155 | 6.250%, 8/15/28 | 8/18 at 100.00 | A | 2,503,851 | ||||||||||||||
| 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+ | 520,095 | ||||||||||||||
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– | 2,244,320 | ||||||||||||||
| 1,980 | 5.250%, 7/01/35 | 7/15 at 100.00 | BBB– | 1,972,298 | ||||||||||||||
| 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– | 4,749,764 | ||||||||||||||
| 3,540 | California Statewide Community Development Authority, Revenue Bonds, John Muir Health System, Series 2006A, 5.000%, 8/15/34 | 8/16 at 100.00 | A+ | 3,605,561 | ||||||||||||||
| Nuveen Investments | 43 |
Nuveen California Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| 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+ | $ | 1,663,046 | ||||||||||||
| 3,000 | California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2007B, 0.946%, 4/01/36 | 4/17 at 100.00 | A+ | 2,235,420 | ||||||||||||||
| 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 | 2,371,599 | ||||||||||||||
| 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– | 9,208,381 | ||||||||||||||
| 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– | 1,242,197 | ||||||||||||||
| 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– | 562,870 | ||||||||||||||
| 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 | 3,374,534 | ||||||||||||||
Marysville, California, Revenue Bonds, The Fremont-Rideout Health Group, Series 2011: | ||||||||||||||||||
| 2,015 | 5.250%, 1/01/27 | 1/21 at 100.00 | A | 2,146,962 | ||||||||||||||
| 3,705 | 5.250%, 1/01/35 | 1/21 at 100.00 | A | 3,853,571 | ||||||||||||||
| 2,000 | 5.250%, 1/01/42 | 1/21 at 100.00 | A | 2,068,320 | ||||||||||||||
| 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 | BB+ | 1,449,396 | ||||||||||||||
| 1,580 | Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 7.000%, 11/01/35 | 11/20 at 100.00 | BB+ | 1,616,893 | ||||||||||||||
| 7,600 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39 | 11/19 at 100.00 | Baa3 | 7,833,092 | ||||||||||||||
| 3,625 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41 | 11/20 at 100.00 | Baa3 | 3,557,466 | ||||||||||||||
| 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+ | 4,715,820 | ||||||||||||||
| 3,040 | Upland, California, Certificates of Participation, San Antonio Community Hospital, Series 2011, 6.500%, 1/01/41 | 1/21 at 100.00 | A | 3,353,029 | ||||||||||||||
| 100,435 | Total Health Care | 104,953,168 | ||||||||||||||||
Housing/Multifamily – 2.0% | ||||||||||||||||||
| 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 | 1,570,740 | ||||||||||||||
| 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 | 1,616,940 | ||||||||||||||
| 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 | 1,028,880 | ||||||||||||||
| 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 | 440,004 | ||||||||||||||
| 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) | 6/14 at 100.00 | N/R | 4,062,960 | ||||||||||||||
| 1,970 | San Dimas Housing Authority, California, Mobile Home Park Revenue Bonds, Charter Oak Mobile Home Estates Acquisition Project, Series 1998A, 5.700%, 7/01/28 | 7/14 at 100.00 | N/R | 1,970,493 | ||||||||||||||
| 44 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Housing/Multifamily (continued) | ||||||||||||||||||
| $ | 1,610 | San Jose, California, Multifamily Housing Senior Lien Revenue Bonds, Fallen Leaves Apartments, Series 2002J1, 4.950%, 12/01/22 – AMBAC Insured (Alternative Minimum Tax) | 5/14 at 100.00 | N/R | $ | 1,610,113 | ||||||||||||
| 1,000 | Ventura County Area Housing Authority, California, Multifamily Revenue Bonds, Mira Vista Senior Apartments Project, Series 2006A, 5.150%, 12/01/31 – AMBAC Insured (Alternative Minimum Tax) | 12/16 at 100.00 | N/R | 927,390 | ||||||||||||||
| 13,250 | Total Housing/Multifamily | 13,227,520 | ||||||||||||||||
Housing/Single Family – 0.0% | ||||||||||||||||||
| 185 | California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, | 2/16 at 100.00 | A– | 193,656 | ||||||||||||||
Industrials – 0.2% | ||||||||||||||||||
| 500 | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2002B, 5.000%, 7/01/27 (Alternative Minimum Tax) | 7/15 at 101.00 | A– | 517,100 | ||||||||||||||
| 500 | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste Management Inc., Series 2005A-2, 5.400%, 4/01/25 (Alternative Minimum Tax) | 4/15 at 101.00 | A– | 519,765 | ||||||||||||||
| 1,000 | Total Industrials | 1,036,865 | ||||||||||||||||
Long-Term Care – 1.9% | ||||||||||||||||||
ABAG Finance Authority for Non-Profit Corporations, California, Cal-Mortgage Revenue Bonds, Elder Care Alliance of Union City, Series 2004: | ||||||||||||||||||
| 1,850 | 5.400%, 8/15/24 | 8/14 at 100.00 | A | 1,866,003 | ||||||||||||||
| 2,130 | 5.600%, 8/15/34 | 8/14 at 100.00 | A | 2,142,354 | ||||||||||||||
| 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 | 3,191,640 | ||||||||||||||
| 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 | 1,176,770 | ||||||||||||||
| 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 | 2,150,340 | ||||||||||||||
| 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 | 612,080 | ||||||||||||||
| 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+ | 1,048,160 | ||||||||||||||
| 11,540 | Total Long-Term Care | 12,187,347 | ||||||||||||||||
Tax Obligation/General – 15.2% | ||||||||||||||||||
| 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 | 627,130 | ||||||||||||||
| 4,000 | Alum Rock Union Elementary School District, Santa Clara County, California, General Obligation Bonds, Refunding Series 2013A, 6.000%, 8/01/39 | 8/23 at 100.00 | AA– | 4,728,080 | ||||||||||||||
| 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 | 1,858,343 | ||||||||||||||
| 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+ | 775,150 | ||||||||||||||
California State, General Obligation Bonds, Various Purpose Series 2009: | ||||||||||||||||||
| 600 | 5.625%, 4/01/26 | 4/19 at 100.00 | A1 | 703,674 | ||||||||||||||
| 5,000 | 5.500%, 11/01/34 | 11/19 at 100.00 | A1 | 5,668,500 | ||||||||||||||
| 4,060 | 6.000%, 11/01/39 | 11/19 at 100.00 | A1 | 4,799,082 | ||||||||||||||
| Nuveen Investments | 45 |
Nuveen California Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
California State, General Obligation Bonds, Various Purpose Series 2010: | ||||||||||||||||||
| $ | 5,000 | 5.250%, 3/01/30 | 3/20 at 100.00 | A1 | $ | 5,680,500 | ||||||||||||
| 10,000 | 5.500%, 3/01/40 | 3/20 at 100.00 | A1 | 11,175,700 | ||||||||||||||
| 4,000 | 5.250%, 11/01/40 | 11/20 at 100.00 | A1 | 4,342,600 | ||||||||||||||
| 2,000 | California State, General Obligation Bonds, Various Purpose Series 2011, 5.250%, 10/01/32 | 10/21 at 100.00 | A1 | 2,237,860 | ||||||||||||||
| 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– | 931,035 | ||||||||||||||
| 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– | 7,093,890 | ||||||||||||||
| 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 | 1,100,650 | ||||||||||||||
| 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– | 1,077,310 | ||||||||||||||
| 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 | 489,425 | ||||||||||||||
| 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 | 562,010 | ||||||||||||||
| 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 | AA+ | 693,134 | ||||||||||||||
| 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 | 2,065,625 | ||||||||||||||
| 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 | 418,870 | ||||||||||||||
Golden West Schools Financing Authority, California, General Obligation Revenue Refunding Bonds, School District Program, Series 1999A: | ||||||||||||||||||
| 320 | 5.800%, 8/01/22 – NPFG Insured | No Opt. Call | A | 381,024 | ||||||||||||||
| 345 | 5.800%, 8/01/23 – NPFG Insured | No Opt. Call | A | 409,908 | ||||||||||||||
| 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 | AA– | 1,080,853 | ||||||||||||||
| 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– | 650,934 | ||||||||||||||
| 460 | Jefferson Union High School District, San Mateo County, California, General Obligation Bonds, Series 2000A, 6.250%, 8/01/20 – NPFG Insured | No Opt. Call | A+ | 565,828 | ||||||||||||||
| 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 | 584,400 | ||||||||||||||
| 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 | 163,686 | ||||||||||||||
| 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 | 123,786 | ||||||||||||||
| 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 | 1,821,400 | ||||||||||||||
| 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 | 2,439,392 | ||||||||||||||
| 46 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/General (continued) | ||||||||||||||||||
| $ | 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– | $ | 1,290,378 | ||||||||||||
| 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 | 980,377 | ||||||||||||||
| 3,125 | Rosemead School District, Los Angeles County, California, General Obligation Bonds, Election 2008 Series 2013B, 0.000%, 8/01/43 – AGM Insured | 8/23 at 100.00 | AA– | 2,614,625 | ||||||||||||||
| 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– | 1,621,820 | ||||||||||||||
| 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– | 828,056 | ||||||||||||||
| 1,000 | San Lorenzo Unified School District, Alameda County, California, General Obligation Bonds, Election of 2008 Series 2011B, 6.000%, 8/01/41 | No Opt. Call | A+ | 1,130,430 | ||||||||||||||
| 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– | 1,135,940 | ||||||||||||||
| 1,000 | Santa Barbara Community College District, California, General Obligation Bonds, Series 2008A, 5.250%, 8/01/27 | 8/18 at 100.00 | AA+ | 1,135,030 | ||||||||||||||
| 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 | 3,003,763 | ||||||||||||||
| 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 | 9,473,760 | ||||||||||||||
Tulare Local Health Care District, California, General Obligation Bonds, Series 2009B-1: | ||||||||||||||||||
| 500 | 6.375%, 8/01/25 | 8/19 at 100.00 | Baa1 | 568,555 | ||||||||||||||
| 1,005 | 6.500%, 8/01/26 | 8/19 at 100.00 | Baa1 | 1,143,549 | ||||||||||||||
| 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 | 1,723,889 | ||||||||||||||
| 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– | 1,637,500 | ||||||||||||||
| 645 | Washington Township Health Care District, Alameda County, California, General Obligation Bonds, 2012 Election Series 2013A, 5.500%, 8/01/40 | 8/24 at 100.00 | Aa3 | 721,252 | ||||||||||||||
| 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 | 1,355,409 | ||||||||||||||
| 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+ | 902,694 | ||||||||||||||
| 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– | 312,920 | ||||||||||||||
| 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 | 1,432,585 | ||||||||||||||
| 122,350 | Total Tax Obligation/General | 98,262,311 | ||||||||||||||||
Tax Obligation/Limited – 33.5% | ||||||||||||||||||
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– | 544,946 | ||||||||||||||
| 500 | 5.000%, 9/01/27 – AMBAC Insured | 9/17 at 100.00 | A– | 525,035 | ||||||||||||||
| 55 | Barstow Redevelopment Agency, California, Tax Allocation Bonds, Central Redevelopment Project, Series 1994A, 7.000%, 9/01/14 – NPFG Insured | No Opt. Call | A | 56,466 | ||||||||||||||
| Nuveen Investments | 47 |
Nuveen California Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 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 | $ | 1,033,880 | ||||||||||||
| 2,950 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D, 5.800%, 9/01/35 | 9/14 at 102.00 | N/R | 2,991,448 | ||||||||||||||
| 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 | 1,390,498 | ||||||||||||||
| 2,250 | Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured | 5/14 at 100.00 | AA– | 2,258,685 | ||||||||||||||
Brea Public Finance Authority, California, Revenue Bonds, Series 2008A: | ||||||||||||||||||
| 2,105 | 7.000%, 9/01/23 | 9/16 at 102.00 | BBB+ | 2,245,677 | ||||||||||||||
| 2,000 | 7.125%, 9/01/26 | 9/16 at 102.00 | BBB+ | 2,112,740 | ||||||||||||||
| 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– | 673,286 | ||||||||||||||
| 2,725 | California Community College Financing Authority, Lease Revenue Bonds, Refunding Series 2003, 0.000%, 6/01/33 – AMBAC Insured | No Opt. Call | A+ | 967,103 | ||||||||||||||
| 1,960 | California Infrastructure and Economic Development Bank, Revenue Bonds, North County Center for Self-Sufficiency Corporation, Series 2004, 5.000%, 12/01/25 – AMBAC Insured | 5/14 at 100.00 | AA+ | 1,968,173 | ||||||||||||||
| 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 | 1,096,010 | ||||||||||||||
| 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 | 2,788,025 | ||||||||||||||
| 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 | 2,337,560 | ||||||||||||||
| 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 | 3,534,930 | ||||||||||||||
| 880 | 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 | 901,366 | ||||||||||||||
| 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 | 225,585 | ||||||||||||||
Chula Vista Municipal Finance Authority, California, Special Tax Revenue Bonds, Refunding Series 2013: | ||||||||||||||||||
| 1,975 | 5.500%, 9/01/27 | 9/23 at 100.00 | BBB+ | 2,227,109 | ||||||||||||||
| 2,230 | 5.500%, 9/01/29 | 9/23 at 100.00 | BBB+ | 2,474,698 | ||||||||||||||
| 1,570 | 5.500%, 9/01/30 | 9/23 at 100.00 | BBB+ | 1,730,580 | ||||||||||||||
| 660 | 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 | 643,606 | ||||||||||||||
| 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 | 1,421,879 | ||||||||||||||
| 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+ | 1,249,698 | ||||||||||||||
| 1,500 | Glendale Redevelopment Agency, California, Tax Allocation Bonds, Central Glendale Redevelopment Project, Series 2010, 5.500%, 12/01/24 | 12/16 at 100.00 | A | 1,565,175 | ||||||||||||||
| 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– | 2,191,550 | ||||||||||||||
| 3,965 | 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 | 4,053,816 | ||||||||||||||
| 48 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 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+ | $ | 1,893,832 | ||||||||||||
| 1,660 | Highland, California, Special Tax Bonds, Communitiy Facilities District 01-1, Refunding, Series 2011, 5.500%, 9/01/28 | 9/21 at 100.00 | BBB+ | 1,733,405 | ||||||||||||||
| 1,000 | Huntington Beach, California, Special Tax Bonds, Community Facilities District 2003-1 Huntington Center, Refunding Series 2013, 5.375%, 9/01/33 | 9/23 at 100.00 | N/R | 1,034,220 | ||||||||||||||
| 430 | Inglewood Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Subordinate Lien Series 2007A-1, 5.000%, 5/01/24 – AMBAC Insured | 5/17 at 100.00 | BBB+ | 434,330 | ||||||||||||||
| 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 | 172,914 | ||||||||||||||
| 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 | 813,889 | ||||||||||||||
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 | 1,124,360 | ||||||||||||||
| 3,205 | 8.875%, 9/01/38 | 9/18 at 100.00 | N/R | 3,608,157 | ||||||||||||||
| 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 | 1,333,748 | ||||||||||||||
Lammersville Joint Unified School District, California, Community Facilities District 2007-1, Mountain House – Shea Homes, Improvement Area 1 Special Tax Bonds, Series 2013: | ||||||||||||||||||
| 1,000 | 6.000%, 9/01/38 | 9/23 at 100.00 | N/R | 1,042,390 | ||||||||||||||
| 1,750 | 6.000%, 9/01/43 | 9/23 at 100.00 | N/R | 1,818,040 | ||||||||||||||
| 215 | Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Series 2009, 6.875%, 8/01/39 | No Opt. Call | BBB | 234,150 | ||||||||||||||
| 1,870 | Lancaster Redevelopment Agency, California, Tax Allocation Refunding Bonds, Combined Area Sheriff’s Facilities Projects, Series 2004, 5.000%, 12/01/23 – SYNCORA GTY Insured | 12/14 at 100.00 | A | 1,919,499 | ||||||||||||||
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 | 821,568 | ||||||||||||||
| 1,120 | 5.000%, 12/01/23 – SYNCORA GTY Insured | 12/14 at 100.00 | A | 1,149,646 | ||||||||||||||
| 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+ | 4,563,199 | ||||||||||||||
| 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 | 1,282,632 | ||||||||||||||
| 2,565 | Los Angeles Community Redevelopment Agency, California, Subordinate Lien Tax Allocation Bonds, Bunker Hill Redevelopment Project, Series 2004L, 5.000%, 3/01/17 | 9/14 at 100.00 | BBB– | 2,601,269 | ||||||||||||||
| 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– | 1,028,770 | ||||||||||||||
| 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 | 5/14 at 100.00 | A2 | 331,676 | ||||||||||||||
| 970 | Milpitas, California, Local Improvement District 20 Limited Obligation Bonds, Series 1998A, 5.700%, 9/02/18 | 9/14 at 103.00 | N/R | 1,011,700 | ||||||||||||||
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 | 9/14 at 100.00 | N/R | 1,496,444 | ||||||||||||||
| 1,500 | 5.875%, 9/01/43 | 9/14 at 100.00 | N/R | 1,548,615 | ||||||||||||||
| Nuveen Investments | 49 |
Nuveen California Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 350 | Murrieta, California, Special Tax Bonds, Community Facilities District 2000-2, The Oaks Improvement Area A, Series 2004A, 5.750%, 9/01/20 | 9/14 at 100.00 | N/R | $ | 355,940 | ||||||||||||
| 205 | Murrieta, California, Special Tax Bonds, Community Facilities District 2003-3, Creekside Village Improvement Area 1, Series 2005, 5.200%, 9/01/35 | 9/14 at 100.00 | N/R | 205,303 | ||||||||||||||
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– | 751,513 | ||||||||||||||
| 3,455 | 7.000%, 8/01/32 | 8/21 at 100.00 | A– | 4,133,424 | ||||||||||||||
| 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 | 1,079,560 | ||||||||||||||
| 4,055 | Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40 | 9/21 at 100.00 | BBB+ | 4,518,851 | ||||||||||||||
| 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 | 10/14 at 100.00 | BB | 2,550,125 | ||||||||||||||
Patterson Public Finance Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A: | ||||||||||||||||||
| 2,715 | 5.250%, 9/01/30 | 9/23 at 100.00 | N/R | 2,767,209 | ||||||||||||||
| 2,435 | 5.750%, 9/01/39 | 9/23 at 100.00 | N/R | 2,516,621 | ||||||||||||||
| 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 | 457,335 | ||||||||||||||
Perris Union High School District Financing Authority, Riverside County, California, Revenue Bonds, Series 2011: | ||||||||||||||||||
| 225 | 6.000%, 9/01/33 | 9/14 at 100.00 | N/R | 232,373 | ||||||||||||||
| 490 | 6.125%, 9/01/41 | 9/14 at 100.00 | N/R | 505,763 | ||||||||||||||
| 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– | 3,504,331 | ||||||||||||||
| 750 | Poway Redevelopment Agency, California, Tax Allocation Bonds, Paugay Redevelopment Project, Series 2003A, 5.250%, 6/15/20 – NPFG Insured | 5/14 at 100.00 | A | 752,498 | ||||||||||||||
| 310 | Rancho Cucamonga Redevelopment Agency, California, Tax Allocation Bonds, Housing Set-Aside, Rancho Project, Series 2007A, 4.125%, 9/01/18 – NPFG Insured | 9/17 at 100.00 | A+ | 338,852 | ||||||||||||||
| 1,525 | Rancho Cucamonga, California, Limited Obligation Improvement Bonds, Masi Plaza Assessment District 93-1, Series 1997, 6.250%, 9/02/22 | 9/14 at 100.00 | N/R | 1,541,790 | ||||||||||||||
| 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+ | 1,149,437 | ||||||||||||||
| 2,005 | Richmond Redevelopment Agency, California, Harbour Project Tax Allocation Bonds, Series 1998A Refunding, 5.500%, 7/01/18 – NPFG Insured | 5/14 at 100.00 | AA– | 2,013,401 | ||||||||||||||
| 1,250 | Rio Elementary School District, California, Special Tax Bonds, Community Facilities District 1, Series 2013, 5.500%, 9/01/39 | 9/23 at 100.00 | N/R | 1,306,775 | ||||||||||||||
| 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 | 261,786 | ||||||||||||||
Riverside County Redevelopment Agency, California, Interstate 215 Corridor Redevelopment Project Area Tax Allocation Bonds, Series 2010E: | ||||||||||||||||||
| 2,950 | 6.250%, 10/01/30 | 10/20 at 100.00 | A– | 3,209,954 | ||||||||||||||
| 480 | 6.500%, 10/01/40 | 10/20 at 100.00 | A– | 518,026 | ||||||||||||||
| 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– | 112,634 | ||||||||||||||
| 50 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 5,000 | Riverside County Transportation Commission, California, Sales Tax Revenue Bonds, Limited Tax Series 2013A, 5.250%, 6/01/39 | 6/23 at 100.00 | AA+ | $ | 5,575,600 | ||||||||||||
| 1,000 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Diamond Creek, Series 2007, 5.000%, 9/01/37 | 9/14 at 100.00 | N/R | 954,340 | ||||||||||||||
| 1,700 | Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – AMBAC Insured | No Opt. Call | A | 1,923,210 | ||||||||||||||
Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B: | ||||||||||||||||||
| 575 | 5.000%, 11/01/14 | No Opt. Call | A | 588,679 | ||||||||||||||
| 500 | 5.400%, 11/01/20 | No Opt. Call | A | 565,650 | ||||||||||||||
| 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 | 885,734 | ||||||||||||||
| 1,955 | San Francisco City and County Redevelopment Agency, California, Hotel Occupancy Tax Revenue Bonds, Refunding Series 2011, 5.000%, 6/01/25 – AGM Insured | 6/21 at 100.00 | AA– | 2,137,186 | ||||||||||||||
| 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 | 5,774,982 | ||||||||||||||
| 525 | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2009C, 6.375%, 8/01/32 | 8/19 at 100.00 | A– | 589,738 | ||||||||||||||
| 1,185 | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41 | 2/21 at 100.00 | A– | 1,362,537 | ||||||||||||||
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+ | 88,110 | ||||||||||||||
| 105 | 7.000%, 8/01/41 | 2/21 at 100.00 | BBB+ | 114,057 | ||||||||||||||
| 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 | 3,631,985 | ||||||||||||||
| 2,990 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2003, 5.000%, 8/01/19 – FGIC Insured | 5/14 at 100.00 | A | 2,996,937 | ||||||||||||||
| 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 | 361,687 | ||||||||||||||
| 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 | 606,603 | ||||||||||||||
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 | 2,102,502 | ||||||||||||||
| 645 | 5.000%, 8/01/19 – AMBAC Insured | 8/17 at 100.00 | BBB | 701,483 | ||||||||||||||
| 540 | 5.000%, 8/01/21 – AMBAC Insured | 8/17 at 100.00 | BBB | 571,779 | ||||||||||||||
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 | 1,213,117 | ||||||||||||||
| 480 | 6.500%, 8/01/23 | 8/18 at 100.00 | BBB | 528,226 | ||||||||||||||
| 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 | 1,003,590 | ||||||||||||||
| 5,745 | San Marcos Redevelopment Agency, California, Tax Allocation Bonds, Affordable Housing Project, Series 1997A, 6.000%, 10/01/27 (Alternative Minimum Tax) | 4/14 at 100.00 | AA– | 5,770,623 | ||||||||||||||
| Nuveen Investments | 51 |
Nuveen California Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 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 | $ | 330,942 | ||||||||||||
| 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+ | 2,529,566 | ||||||||||||||
| 3,500 | Santa Clara Redevelopment Agency, California, Tax Allocation Bonds, Bayshore North Project, Series 1999A, 5.500%, 6/01/23 – AMBAC Insured | 6/14 at 100.00 | A | 3,542,665 | ||||||||||||||
Santa Cruz County Redevelopment Agency, California, Tax Allocation Bonds, Live Oak-Soquel Community Improvement Project Area, Series 2009A: | ||||||||||||||||||
| 1,860 | 6.625%, 9/01/29 | 9/19 at 100.00 | A | 2,121,423 | ||||||||||||||
| 2,805 | 7.000%, 9/01/36 | 9/19 at 100.00 | A | 3,147,378 | ||||||||||||||
| 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 | 4,120,445 | ||||||||||||||
| 2,170 | Shafter Joint Powers Financing Authority, California, Lease Revenue Bonds, Community Correctional Facility Acquisition Project, Series 1997A, 6.050%, 1/01/17 | 7/14 at 100.00 | A– | 2,178,420 | ||||||||||||||
| 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 | 194,080 | ||||||||||||||
| 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+ | 204,207 | ||||||||||||||
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 | 126,205 | ||||||||||||||
| 125 | 4.500%, 10/01/16 | 10/15 at 102.00 | N/R | 133,553 | ||||||||||||||
| 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 | 591,255 | ||||||||||||||
| 300 | Travis Unified School District, Solano County, California, Certificates of Participation, Series 2006, 4.500%, 9/01/16 – FGIC Insured | No Opt. Call | Baa1 | 324,219 | ||||||||||||||
| 2,550 | Tulare Public Financing Authority, California, Lease Revenue Bonds, Series 2008, 5.250%, 4/01/27 – AGC Insured | 4/18 at 100.00 | AA– | 2,833,407 | ||||||||||||||
| 1,225 | Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.000%, 9/01/25 | 3/21 at 100.00 | BBB+ | 1,348,970 | ||||||||||||||
| 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 | 2,041,500 | ||||||||||||||
| 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 | 1,153,711 | ||||||||||||||
| 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 | 285,192 | ||||||||||||||
| 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 | 23,783 | ||||||||||||||
Vista Community Development Commission, California, Taxable Non-Housing Tax Allocation Revenue Bonds, Vista Redevlopment Project, Series 2011: | ||||||||||||||||||
| 7,600 | 6.000%, 9/01/33 | 9/21 at 100.00 | A– | 8,429,236 | ||||||||||||||
| 7,920 | 6.125%, 9/01/37 | 9/21 at 100.00 | A– | 8,750,887 | ||||||||||||||
Westminster Redevelopment Agency, California, Tax Allocation Bonds, Commercial Redevelopment Project 1, Police Facility Subordinate Series 2009: | ||||||||||||||||||
| 10,710 | 6.250%, 11/01/39 | �� | 11/19 at 100.00 | AA– | 12,072,415 | |||||||||||||
| 2,395 | 5.750%, 11/01/45 | 11/19 at 100.00 | AA– | 2,548,855 | ||||||||||||||
| 52 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Tax Obligation/Limited (continued) | ||||||||||||||||||
| $ | 1,540 | Westminster Redevelopment Agency, California, Tax Allocation Bonds, Commercial Redevelopment Project 1, Subordinate Lien Series 2011A, 5.875%, 11/01/45 | 11/21 at 100.00 | A | $ | 1,644,612 | ||||||||||||
| 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– | 371,107 | ||||||||||||||
| 1,965 | Yuba City Redevelopment Agency, California, Tax Allocation Bonds, Series 2007A, 6.000%, 9/01/31 | 9/14 at 100.00 | N/R | 1,969,107 | ||||||||||||||
| 205,705 | Total Tax Obligation/Limited | 216,056,973 | ||||||||||||||||
Transportation – 6.1% | ||||||||||||||||||
| 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+ | 996,460 | ||||||||||||||
| 6,525 | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 – NPFG Insured | 7/14 at 100.00 | A | 6,518,671 | ||||||||||||||
| 3,780 | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Junior Lien Series 2013C, 6.500%, 1/15/43 | 1/24 at 100.00 | BB+ | 4,005,742 | ||||||||||||||
Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding Bonds, Series 2013A: | ||||||||||||||||||
| 8,335 | 5.750%, 1/15/46 | 1/24 at 100.00 | BBB– | 8,685,153 | ||||||||||||||
| 8,340 | 6.000%, 1/15/53 | 1/24 at 100.00 | BBB– | 8,770,844 | ||||||||||||||
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 | 286,283 | ||||||||||||||
| 195 | 5.550%, 7/01/28 (Alternative Minimum Tax) | 7/14 at 102.00 | N/R | 191,582 | ||||||||||||||
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– | 1,038,800 | ||||||||||||||
| 8,250 | 5.750%, 6/01/48 | 6/23 at 100.00 | BBB– | 8,544,360 | ||||||||||||||
| 37,710 | Total Transportation | 39,037,895 | ||||||||||||||||
U.S. Guaranteed – 2.8% (4) | ||||||||||||||||||
| 1,015 | ABAG Finance Authority for Non-Profit Corporations, California, Revenue Bonds, The Jackson Laboratory, Series 2007, 5.750%, 7/01/37 (Pre-refunded 7/01/15) | 7/15 at 102.00 | A1 (4) | 1,111,344 | ||||||||||||||
| 110 | Barstow Redevelopment Agency, California, Tax Allocation Bonds, Central Redevelopment Project, Series 1994A, 7.000%, 9/01/14 – NPFG Insured (ETM) | No Opt. Call | AA– (4) | 113,475 | ||||||||||||||
| 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) | 510,925 | ||||||||||||||
| 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) | 463,106 | ||||||||||||||
| 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 | 547,484 | ||||||||||||||
| 1,250 | California State Public Works Board, Lease Revenue Bonds, University of California Regents, Series 2009E, 5.000%, 4/01/34 (Pre-refunded 4/01/19) | 4/19 at 100.00 | Aaa | 1,497,963 | ||||||||||||||
| 2,500 | California State Public Works Board, Lease Revenue Bonds, University of California, Institute Projects, Series 2005C, 5.000%, 4/01/30 (Pre-refunded 4/01/15) – AMBAC Insured | 4/15 at 100.00 | Aa2 (4) | 2,630,650 | ||||||||||||||
| 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) | 870,116 | ||||||||||||||
| Nuveen Investments | 53 |
Nuveen California Municipal Bond Fund (continued)
Portfolio of Investments February 28, 2014
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
U.S. Guaranteed (4) (continued) | ||||||||||||||||||
California Statewide Community Development Authority, Insured Health Facility Revenue Bonds, Henry Mayo Newhall Memorial Hospital, Series 2007A: | ||||||||||||||||||
| $ | 500 | 5.000%, 10/01/20 (Pre-refunded 10/01/17) | 10/17 at 100.00 | A (4) | $ | 578,530 | ||||||||||||
| 400 | 5.000%, 10/01/27 (Pre-refunded 10/01/17) | 10/17 at 100.00 | A (4) | 462,824 | ||||||||||||||
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) | 1,017,160 | ||||||||||||||
| 1,500 | 5.500%, 7/01/24 (Pre-refunded 7/01/14) – FGIC Insured | 7/14 at 100.00 | A+ (4) | 1,525,740 | ||||||||||||||
| 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 (Pre-refunded 10/01/14) – AGM Insured | 10/14 at 100.00 | AA– (4) | 1,219,258 | ||||||||||||||
| 285 | Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Redevelopment Project Areas Housing Programs, Series 2009, 6.875%, 8/01/39 (Pre-refunded 8/01/19) | 8/19 at 100.00 | N/R (4) | 369,864 | ||||||||||||||
| 1,140 | Los Angeles Harbors Department, California, Revenue Bonds, Series 1988, 7.600%, 10/01/18 (ETM) | No Opt. Call | AA+ (4) | 1,337,573 | ||||||||||||||
| 75 | Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 1993X, 5.500%, 7/01/15 – NPFG Insured (ETM) | No Opt. Call | A3 (4) | 77,672 | ||||||||||||||
| 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) | 582,676 | ||||||||||||||
| 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) | 1,577,417 | ||||||||||||||
| 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 | N/R (4) | 1,752,226 | ||||||||||||||
| 16,550 | Total U.S. Guaranteed | 18,246,003 | ||||||||||||||||
Utilities – 2.5% | ||||||||||||||||||
| 2,235 | California Statewide Community Development Authority, Certificates of Participation Refunding, Rio Bravo Fresno Project, Series 1999A, 6.500%, 12/01/18 | 6/14 at 100.00 | N/R | 2,129,642 | ||||||||||||||
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 | 2,617,557 | ||||||||||||||
| 27,110 | 0.000%, 9/01/33 | 9/16 at 32.62 | A | 7,699,240 | ||||||||||||||
| 12,000 | 0.000%, 9/01/38 | 9/16 at 23.21 | A | 2,416,560 | ||||||||||||||
| 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 | 1,217,054 | ||||||||||||||
| 47,090 | Total Utilities | 16,080,053 | ||||||||||||||||
Water and Sewer – 5.6% | ||||||||||||||||||
| 3,000 | Brentwood Infrastructure Financing Authority, California, Water Revenue Bonds, Series 2008, 5.750%, 7/01/38 | 7/18 at 100.00 | AA | 3,218,910 | ||||||||||||||
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside LP Desalination Project, Series 2012: | ||||||||||||||||||
| 5,000 | 5.000%, 7/01/37 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 4,965,600 | ||||||||||||||
| 5,010 | 5.000%, 11/21/45 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 4,779,941 | ||||||||||||||
| 54 | Nuveen Investments |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||||||||||||||
Water and Sewer (continued) | ||||||||||||||||||
| $ | 355 | California Statewide Community Development Authority, Water and Wastewater Revenue Bonds, Pooled Financing Program, Series 2003A, 5.250%, 10/01/23 – AGM Insured | 5/14 at 100.00 | AA– | $ | 356,370 | ||||||||||||
| 1,680 | Castaic Lake Water Agency, California, Certificates of Participation, Series 2004A, 5.000%, 8/01/20 – AMBAC Insured | 8/14 at 100.00 | AA | 1,713,432 | ||||||||||||||
| 1,150 | Compton, California, Sewer Revenue Bonds, Series 1998 Refunding, 5.375%, 9/01/23 – NPFG Insured | 5/14 at 100.00 | A | 1,150,115 | ||||||||||||||
| 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 | 1,300,725 | ||||||||||||||
| 3,745 | Los Angeles, California, Wastewater System Revenue Bonds, Refunding Series 2009A, 5.750%, 6/01/26 | 6/19 at 100.00 | AA+ | 4,380,377 | ||||||||||||||
| 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 | 2,848,898 | ||||||||||||||
| 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 | 5,537,601 | ||||||||||||||
| 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– | 1,081,440 | ||||||||||||||
| 805 | Oakdale Irrigation District, California, Certificates of Participation, Water Facilities Project, Series 2009, 5.500%, 8/01/34 | 8/19 at 100.00 | AA | 870,471 | ||||||||||||||
| 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+ | 1,929,973 | ||||||||||||||
Rowland Water District, California, Certificates of Participation, Recycled Water Project, Series 2008: | ||||||||||||||||||
| 565 | 5.750%, 12/01/24 | 12/18 at 100.00 | AA– | 666,745 | ||||||||||||||
| 480 | 5.750%, 12/01/25 | 12/18 at 100.00 | AA– | 562,368 | ||||||||||||||
| 500 | 6.250%, 12/01/39 | 12/18 at 100.00 | AA– | 575,440 | ||||||||||||||
| 33,965 | Total Water and Sewer | 35,938,406 | ||||||||||||||||
| $ | 668,870 | Total Long-Term Investments (cost $593,022,863) | 629,396,004 | |||||||||||||||
Other Assets Less Liabilities – 2.4% | 15,318,155 | |||||||||||||||||
Net Assets – 100% | $ | 644,714,159 | ||||||||||||||||
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. |
| (2) | Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. |
| (3) | Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investor 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. |
| (ETM) | Escrowed to maturity. |
See accompanying notes to financial statements.
| Nuveen Investments | 55 |
| Assets and Liabilities | February 28, 2014 |
| California High Yield | California | |||||||
Assets | ||||||||
Long-term investments, at value (cost $322,834,623 and $593,022,863, respectively) | $ | 327,347,291 | $ | 629,396,004 | ||||
Cash | 3,057,879 | 5,192,158 | ||||||
Unrealized appreciation on interest rate swaps | 819,900 | — | ||||||
Receivable for: | ||||||||
Interest | 5,202,585 | 8,971,467 | ||||||
Investments sold | 3,162,536 | 2,135,550 | ||||||
Shares sold | 1,627,789 | 1,373,782 | ||||||
Other assets | 3,721 | 51,347 | ||||||
Total assets | 341,221,701 | 647,120,308 | ||||||
Liabilities | ||||||||
Floating rate obligations | 915,000 | — | ||||||
Payables for: | ||||||||
Dividends | 311,231 | 657,608 | ||||||
Investments purchased | 12,490,547 | — | ||||||
Shares redeemed | 932,981 | 1,133,350 | ||||||
Accrued expenses: | ||||||||
Management fees | 145,270 | 299,883 | ||||||
Trustees fees | 5,742 | 41,102 | ||||||
12b-1 distribution and service fees | 56,173 | 76,633 | ||||||
Other | 76,989 | 197,573 | ||||||
Total liabilities | 14,933,933 | 2,406,149 | ||||||
Net assets | $ | 326,287,768 | $ | 644,714,159 | ||||
Class A Shares(1) | ||||||||
Net assets | $ | 173,753,349 | $ | 268,135,937 | ||||
Shares outstanding | 19,888,352 | 25,406,172 | ||||||
Net asset value (“NAV”) per share | $ | 8.74 | $ | 10.55 | ||||
Offering price per share (NAV per share plus maximum sales charge of 4.20% of offering price) | $ | 9.12 | $ | 11.01 | ||||
Class C Shares(2) | ||||||||
Net assets | $ | 248,581 | $ | 309,432 | ||||
Shares outstanding | 28,464 | 29,427 | ||||||
NAV and offering price per share | $ | 8.73 | $ | 10.52 | ||||
Class C2 Shares(3) | ||||||||
Net assets | $ | 55,083,447 | $ | 62,495,433 | ||||
Shares outstanding | 6,311,486 | 5,940,807 | ||||||
NAV and offering price per share | $ | 8.73 | $ | 10.52 | ||||
Class I Shares | ||||||||
Net assets | $ | 97,202,391 | $ | 313,773,357 | ||||
Shares outstanding | 11,141,131 | 29,753,921 | ||||||
NAV and offering price per share | $ | 8.72 | $ | 10.55 | ||||
Net assets consist of: | ||||||||
Capital paid-in | $ | 333,787,639 | $ | 623,294,677 | ||||
Undistributed (Over-distribution of) net investment income | 693,665 | 1,493,285 | ||||||
Accumulated net realized gain (loss) | (13,526,104 | ) | (16,446,944 | ) | ||||
Net unrealized appreciation (depreciation) | 5,332,568 | 36,373,141 | ||||||
Net assets | $ | 326,287,768 | $ | 644,714,159 | ||||
Authorized shares – per class | Unlimited | Unlimited | ||||||
Par value per share | $ | 0.01 | $ | 0.01 | ||||
| (1) | Class B Shares of California converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 shares are not available for new accounts or for additional investment into existing accounts. |
See accompanying notes to financial statements.
| 56 | Nuveen Investments |
| Operations | Year Ended February 28, 2014 |
| California High Yield | California | |||||||
Investment Income | $ | 18,717,604 | $ | 33,761,747 | ||||
Expenses | ||||||||
Management fees | 1,744,562 | 3,359,041 | ||||||
12b-1 service fees – Class A(1) | 326,556 | 540,220 | ||||||
12b-1 distribution and service fees – Class C(2) | 81 | 84 | ||||||
12b-1 distribution and service fees – Class C2(3) | 426,243 | 509,426 | ||||||
Shareholder servicing agent fees and expenses | 107,483 | 303,994 | ||||||
Interest expense | 5,443 | — | ||||||
Custodian fees and expenses | 95,791 | 131,652 | ||||||
Trustees fees and expenses | 8,511 | 17,573 | ||||||
Professional fees | 58,526 | 81,230 | ||||||
Shareholder reporting expenses | 34,584 | 64,223 | ||||||
Federal and state registration fees | 41,967 | 11,789 | ||||||
Other expenses | 15,472 | 22,294 | ||||||
Net expenses | 2,865,219 | 5,041,526 | ||||||
Net investment income (loss) | 15,852,385 | 28,720,221 | ||||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) from investments | (4,537,751 | ) | (8,005,823 | ) | ||||
Change in net unrealized appreciation (depreciation) of: | ||||||||
Investments | (19,387,057 | ) | (21,966,123 | ) | ||||
Swaps | 410,679 | — | ||||||
Net realized and unrealized gain (loss) | (23,514,129 | ) | (29,971,946 | ) | ||||
Net increase (decrease) in net assets from operations | $ | (7,661,744 | ) | $ | (1,251,725 | ) | ||
| (1) | 12b-1 service fees for California include 12b-1 distribution and service fees incurred on Class B Shares during the period. Class B Shares of California converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 shares are not available for new accounts or for additional investment into existing accounts. |
See accompanying notes to financial statements.
| Nuveen Investments | 57 |
| Changes in Net Assets |
| California High Yield | California | |||||||||||||||||
Year Ended | Year Ended 2/28/13 | Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
Operations | ||||||||||||||||||
Net investment income (loss) | $ | 15,852,385 | $ | 11,803,422 | $ | 28,720,221 | $ | 26,254,078 | ||||||||||
Net realized gain (loss) from: | ||||||||||||||||||
Investments | (4,537,751 | ) | 827,773 | (8,005,823 | ) | 1,998,717 | ||||||||||||
Swaps | — | (2,180,247 | ) | — | — | |||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||
Investments | (19,387,057 | ) | 17,214,158 | (21,966,123 | ) | 25,723,789 | ||||||||||||
Swaps | 410,679 | 2,094,994 | — | — | ||||||||||||||
Net increase (decrease) in net assets from operations | (7,661,744 | ) | 29,760,100 | (1,251,725 | ) | 53,976,584 | ||||||||||||
Distributions to Shareholders | ||||||||||||||||||
From net investment income: | ||||||||||||||||||
Class A(1) | (8,065,249 | ) | (6,199,891 | ) | (11,231,958 | ) | (10,072,356 | ) | ||||||||||
Class B | N/A | N/A | N/A | (48,317 | ) | |||||||||||||
Class C(2) | (245 | ) | (2,305,543 | ) | (210 | ) | (2,271,203 | ) | ||||||||||
Class C2(3) | (2,503,672 | ) | — | (2,459,351 | ) | — | ||||||||||||
Class I | (4,792,740 | ) | (4,150,581 | ) | (14,592,904 | ) | (14,316,592 | ) | ||||||||||
Decrease in net assets from distributions to shareholders | (15,361,906 | ) | (12,656,015 | ) | (28,284,423 | ) | (26,708,468 | ) | ||||||||||
Fund Share Transactions | ||||||||||||||||||
Proceeds from Fund reorganization | — | — | — | 272,324,630 | ||||||||||||||
Proceeds from sale of shares | 213,359,348 | 226,301,470 | 186,338,394 | 167,332,759 | ||||||||||||||
Proceeds from shares issued to shareholders due to reinvestment of distributions | 11,278,936 | 8,210,025 | 19,119,660 | 16,938,678 | ||||||||||||||
| 224,638,284 | 234,511,495 | 205,458,054 | 456,596,067 | |||||||||||||||
Cost of shares redeemed | (220,309,156 | ) | (62,941,278 | ) | (246,653,709 | ) | (111,067,241 | ) | ||||||||||
Net increase (decrease) in net assets from Fund share transactions | 4,329,128 | 171,570,217 | (41,195,655 | ) | 345,528,826 | |||||||||||||
Net increase (decrease) in net assets | (18,694,522 | ) | 188,674,302 | (70,731,803 | ) | 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 | $ | 326,287,768 | $ | 344,982,290 | $ | 644,714,159 | $ | 715,445,962 | ||||||||||
Undistributed (Over-distribution of) net investment income at the end of period | $ | 693,665 | $ | 209,562 | $ | 1,493,285 | $ | 1,483,019 | ||||||||||
N/A – Fund does not, or no longer, offers Class B Shares.
| (1) | Includes distributions to shareholders of California’s Class B Shares during the period. Class B Shares of California converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 shares are not available for new accounts or for additional investment into existing accounts. |
See accompanying notes to financial statements.
| 58 | Nuveen Investments |
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| Nuveen Investments | 59 |
Highlights
California High Yield
Selected data for a share outstanding throughout each period:
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date)
Year Ended February 28/29, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (3/06) |
| |||||||||||||||||||||||||||||||||
2014 | $ | 9.25 | $ | .44 | $ | (.52 | ) | $ | (.08 | ) | $ | (.43 | ) | $ | — | $ | (.43 | ) | $ | 8.74 | ||||||||||||||
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 | ||||||||||||||||||||||||
Class C (2/14) |
| |||||||||||||||||||||||||||||||||
2014(f) | 8.59 | .01 | .15 | .16 | (.02 | ) | — | (.02 | ) | 8.73 | ||||||||||||||||||||||||
Class C2 (3/06)(g) |
| |||||||||||||||||||||||||||||||||
2014 | 9.24 | .39 | (.52 | ) | (.13 | ) | (.38 | ) | — | (.38 | ) | 8.73 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I (3/06) |
| |||||||||||||||||||||||||||||||||
2014 | 9.24 | .46 | (.54 | ) | (.08 | ) | (.44 | ) | — | (.44 | ) | 8.72 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 60 | 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 Investment Income (Loss) | Expenses Including Interest(d) | Expenses Excluding Interest | Net (Loss) | Portfolio Turnover Rate(e) | ||||||||||||||||||||||||||||||
| (.69 | )% | $ | 173,753 | .87 | % | .87 | % | 5.09 | % | .87 | % | .87 | % | 5.09 | % | 36 | % | |||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||
| 1.85 | 249 | 1.75 | * | 1.75 | * | 3.30 | * | 1.75 | * | 1.75 | * | 3.30 | * | 36 | ||||||||||||||||||||||||
| (1.25 | ) | 55,083 | 1.43 | 1.43 | 4.58 | 1.43 | 1.43 | 4.58 | 36 | |||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||
| (.60 | ) | 97,202 | .67 | .67 | 5.32 | .67 | .67 | 5.32 | 36 | |||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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 period February 10, 2014 (commencement of operations) through February 28, 2014. |
| (g) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 shares are not available for new accounts or for additional investment into existing accounts. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 61 |
Financial Highlights (continued)
California
Selected data for a share outstanding throughout each period:
| Investment Operations | Less Distributions | |||||||||||||||||||||||||||||||||
Class (Commencement Date) Year Ended February 28/29, | Beginning NAV | Net Investment Income (Loss)(a) | Net Realized/ Unrealized Gain (Loss) | Total | From Net Investment Income | From Accumulated Net Realized Gains | Total | Ending NAV | ||||||||||||||||||||||||||
Class A (9/94) |
| |||||||||||||||||||||||||||||||||
2014 | $ | 10.97 | $ | .44 | $ | (.42 | ) | $ | .02 | $ | (.44 | ) | $ | — | $ | (.44 | ) | $ | 10.55 | |||||||||||||||
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 | ||||||||||||||||||||||||
Class C (2/14) |
| |||||||||||||||||||||||||||||||||
2014(f) | 10.41 | .01 | .12 | .13 | (.02 | ) | — | (.02 | ) | 10.52 | ||||||||||||||||||||||||
Class C2 (9/94)(g) |
| |||||||||||||||||||||||||||||||||
2014 | 10.94 | .38 | (.42 | ) | (.04 | ) | (.38 | ) | — | (.38 | ) | 10.52 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I (7/86) |
| |||||||||||||||||||||||||||||||||
2014 | 10.96 | .46 | (.41 | ) | .05 | (.46 | ) | — | (.46 | ) | 10.55 | |||||||||||||||||||||||
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 | ||||||||||||||||||||||||
| 62 | 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 Investment Income (Loss) | Expenses Including Interest(d) | Expenses Excluding Interest | Net Investment Income (Loss) | Portfolio Turnover Rate(e) | ||||||||||||||||||||||||||||||
| .29 | % | $ | 268,136 | .80 | % | .80 | % | 4.24 | % | .80 | % | .80 | % | 4.24 | % | 41 | % | |||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||
| 1.24 | 309 | 1.62 | * | 1.62 | * | 2.93 | * | 1.62 | * | 1.62 | * | 2.93 | * | 41 | ||||||||||||||||||||||||
| (.28 | ) | 62,495 | 1.34 | 1.34 | 3.68 | 1.34 | 1.34 | 3.68 | 41 | |||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||
| .55 | 313,773 | .59 | .59 | 4.43 | .59 | .59 | 4.43 | 41 | ||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||
| (a) | Per share Net Investment Income (Loss) is calculated using the average daily shares method. |
| (b) | Total return is the combination of changes in NAV without any sales charge, reinvested dividend income at NAV and reinvested capital gains distributions at NAV, 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 period February 10, 2014 (commencement of operations) through February 28, 2014. |
| (g) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 shares are not available for new accounts or for additional investment into existing accounts. |
| * | Annualized. |
See accompanying notes to financial statements.
| Nuveen Investments | 63 |
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust 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.
Investment Adviser
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.
Investment Objectives
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.
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. 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.
| 64 | Nuveen Investments |
Each Fund’s most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Class B Shares
During the current fiscal period, California offered Class B Shares. Effective at the close of business on February 20, 2014, Class B Shares of California converted to Class A Shares.
Class C and C2 Shares
Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 shares are not available for new accounts or for additional investment into existing accounts. On February 10, 2014, the Funds began offering a new form of Class C Shares.
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 February 28, 2014, the Funds’ outstanding when-issued/delayed delivery purchase commitments were as follows:
| California High Yield | California | |||||||
| Outstanding when-issued/delayed delivery purchase commitments | $ | 5,424,963 | $ | — | ||||
Investment Income
Investment income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any.
Professional Fees
Professional fees presented 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 (“NAV”) 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 issued 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 were not available for new accounts or for additional investment into existing accounts. Class B Shares were sold without an up-front sales charge but incurred a .75% annual 12b-1 distribution fee and a ..20% annual 12b-1 service
| Nuveen Investments | 65 |
Notes to Financial Statements (continued)
fee. Class B Shares were subject to a CDSC of up to 5% depending upon the length of time the shares were held by the investor (CDSC was reduced to 0% at the end of six years). Class B Shares automatically converted to Class A Shares eight years after purchase. Class C Shares are sold without an up-front sales charge but incur a .75% annual 12b-1 distribution fee and a .25% annual 12b-1 service fee. Class C Shares are subject to a CDSC of 1% if redeemed within twelve months of purchase. Class C2 Shares will be issued upon the exchange of Class C2 Shares from another Nuveen municipal bond fund or for purposes of dividend reinvestment, but are not available for new accounts or for additional investment into existing accounts. Class C2 Shares incur a .55% annual 12b-1 distribution fee and a .20% annual 12b-1 service fee. Class C2 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 may enter into transactions subject to enforceable 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 February 28, 2014, California High Yield was invested in swap contracts that are subject to netting agreements and further described in Note 3 – Portfolio Securities and Investments in Derivatives. As of February 28, 2014, 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
Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price and are generally classified as Level 2.
Prices of fixed-income securities 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
| 66 | Nuveen Investments |
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 NAV (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 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 | $ | — | $ | 323,861,157 | $ | 95,936 | $ | 323,957,093 | ||||||||
Common Stocks | 2,016,489 | — | — | 2,016,489 | ||||||||||||
Convertible Preferred Securities | 1,373,709 | — | — | 1,373,709 | ||||||||||||
| Investments in Derivatives: | ||||||||||||||||
Interest Rate Swaps** | — | 819,900 | — | 819,900 | ||||||||||||
| Total | $ | 3,390,198 | $ | 324,681,057 | $ | 95,936 | $ | 328,167,191 | ||||||||
| California | ||||||||||||||||
| Long-Term Investments*: | ||||||||||||||||
Municipal Bonds | $ | — | $ | 629,396,004 | $ | — | $ | 629,396,004 | ||||||||
| * | Refer to the Fund’s Portfolio of Investments for industry classifications. |
| ** | 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.
| Nuveen Investments | 67 |
Notes to Financial Statements (continued)
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.
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.
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”). An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as “(IF) – Inverse floating rate investment.” The Fund’s Statement of Assets and Liabilities shows only the inverse floaters and not the underlying bonds as an asset and does not reflect the short-term floating rate certificates as liabilities. Also, the Fund reflects in “Investment Income” only the net amount of earnings on its inverse floater investment (net of the interest paid to the holders of the short-term floating rate certificates and the expenses of the trust), and does not show the amount of that interest paid as an interest expense on the Statement of Operations.
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 fiscal year ended February 28, 2014, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters.
| 68 | Nuveen Investments |
The average floating rate obligations outstanding and average annual interest rate and fees related to the self-deposited inverse floaters California High Yield invested in during the fiscal year ended February 28, 2014, were as follows:
| California High Yield | ||||
| Average floating rate obligations outstanding | $ | 915,000 | ||
| Average annual interest rate and fees | .59 | % | ||
As of February 28, 2014, the total amount of floating rate obligations issued by the Funds’ self-deposited inverse floaters and externally-deposited inverse floaters was as follows:
California High Yield | California | |||||||
| Floating rate obligations: self-deposited inverse floaters | $ | 915,000 | $ | — | ||||
| Floating rate obligations: externally-deposited inverse floaters | 41,190,000 | — | ||||||
| Total | $ | 42,105,000 | $ | — | ||||
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 denoted as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
As of February 28, 2014, 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 | $ | 38,190,000 | $ | — | ||||
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
Interest rate swap contracts involve a Fund’s agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment. Forward interest rate swap contracts involve a Fund’s agreement with a counterparty to pay or receive, in the future, a fixed or variable rate payment in exchange for the counterparty receiving or paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the “effective date”). The amount of the payment obligation is based on the notional amount of the swap contract and the termination date of the swap (which is akin to a bond’s maturity). Swap contracts do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that a Fund is to receive. Swap contracts are valued daily. Upon entering into an interest rate swap contract (and beginning on the effective date for a forward interest rate swap contract), a Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on a daily basis, and recognizes the daily change in the fair value of the Fund’s contractual rights and obligations under the contracts. 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 interest rate 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 swaps.” Income received or
| Nuveen Investments | 69 |
Notes to Financial Statements (continued)
paid by a Fund is recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations, in addition to the net realized gains or losses recognized upon the termination of a swap contract and are equal to the difference between a Fund’s basis in the swap and the proceeds from (or cost of) the closing transaction. Payments received or made at the beginning of the measurement period are recognized as a component of “Interest rate swap premiums paid and/or received” on the Statement of Assets and Liabilities, when applicable. For tax purposes, periodic payments are treated as ordinary income or expense.
During the fiscal year ended February 28, 2014, California High Yield continued to invest in forward interest rate swap contracts to shorten the duration of its 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 fiscal year ended February 28, 2014, 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 amount 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 February 28, 2014, 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 | ||||||||||||||
| Asset Derivatives | (Liability) Derivatives | |||||||||||||
Underlying Risk Exposure | Derivative Instrument | Location | Value | Location | Value | |||||||||
Interest rate | Swaps | Unrealized appreciation on interest rate swaps | $ | 819,900 | — | $ | — | |||||||
The following table presents the Fund’s swap contracts subject to netting agreements and the collateral delivered related to those swap contracts.
| Fund | Counterparty | Gross Unrealized Appreciation on Forward Interest Rate Swaps* | Gross Depreciation on | Amounts Netted on Statement of Assets and Liabilities | Net Unrealized Appreciation (Depreciation) on Forward Interest Rate Swaps | Collateral Pledged to (from) Counterparty | Net Exposure | |||||||||||||||||||
| California High Yield | Barclays PLC | $ | 819,900 | $ | — | $ | — | $ | 819,900 | $ | (819,900 | ) | $ | — | ||||||||||||
| * | 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 on the Statement of Operations during the fiscal year ended February 28, 2014, and the primary risk underlying exposure.
| Fund | Underlying Risk Exposure | Derivative Instrument | Net Realized Gain (Loss) from Swaps | Change in Net Unrealized Appreciation (Depreciation) of Swaps | ||||||||
| California High Yield | Interest | Swaps | $ | — | $ | 410,679 | ||||||
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.
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4. Fund Shares
Transactions in Fund shares were as follows:
| California High Yield | ||||||||||||||||
| Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 14,686,321 | $ | 126,003,326 | 15,386,519 | $ | 139,674,521 | ||||||||||
Class C(1) | 28,449 | 244,839 | — | — | ||||||||||||
Class C2(2) | 1,444,052 | 12,621,302 | 3,376,088 | 30,371,421 | ||||||||||||
Class I | 8,619,938 | 74,489,881 | 6,224,360 | 56,255,528 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 744,205 | 6,375,159 | 452,655 | 4,092,596 | ||||||||||||
Class C(1) | 21 | 179 | — | — | ||||||||||||
Class C2(2) | 225,737 | 1,925,302 | 165,313 | 1,488,649 | ||||||||||||
Class I | 347,456 | 2,978,296 | 292,408 | 2,628,780 | ||||||||||||
| 26,096,179 | 224,638,284 | 25,897,343 | 234,511,495 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (15,718,089 | ) | (132,823,776 | ) | (3,923,408 | ) | (35,651,779 | ) | ||||||||
Class C(1) | (6 | ) | (53 | ) | — | — | ||||||||||
Class C2(2) | (1,996,801 | ) | (16,931,244 | ) | (677,749 | ) | (6,112,678 | ) | ||||||||
Class I | (8,316,412 | ) | (70,554,083 | ) | (2,337,497 | ) | (21,176,821 | ) | ||||||||
| (26,031,308 | ) | (220,309,156 | ) | (6,938,654 | ) | (62,941,278 | ) | |||||||||
| Net increase (decrease) | 64,871 | $ | 4,329,128 | 18,958,689 | $ | 171,570,217 | ||||||||||
| (1) | Class C Shares were established and commenced operations on February 10, 2014. |
| (2) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 shares are not available for new accounts or for additional investment into existing accounts. |
| Nuveen Investments | 71 |
Notes to Financial Statements (continued)
| California | ||||||||||||||||
| Year Ended 2/28/14 | Year Ended 2/28/13 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
| Shares issued in the reorganizations: | ||||||||||||||||
Class A | — | $ | — | 8,288,342 | $ | 87,094,810 | ||||||||||
Class B(1) | — | — | 49,760 | 522,187 | ||||||||||||
Class C2(3) | — | — | 1,237,442 | 12,960,367 | ||||||||||||
Class I | — | — | 16,364,973 | 171,747,266 | ||||||||||||
| Shares sold: | ||||||||||||||||
Class A | 10,531,878 | 109,086,733 | 6,273,575 | 67,875,631 | ||||||||||||
Class A – automatic conversion of Class B(1) Shares | 73,838 | 766,968 | 49,167 | 530,525 | ||||||||||||
Class B(1) – exchanges | 195 | 2,061 | — | — | ||||||||||||
Class C(2) | 29,421 | 307,006 | — | — | ||||||||||||
Class C2(3) | 1,373,973 | 14,519,756 | 2,171,805 | 23,372,639 | ||||||||||||
Class I | 5,878,406 | 61,655,870 | 6,965,996 | 75,553,964 | ||||||||||||
| Shares issued to shareholders due to reinvestment of distributions: | ||||||||||||||||
Class A | 889,905 | 9,286,169 | 672,170 | 7,291,211 | ||||||||||||
Class B(1) | 1,091 | 11,483 | 3,034 | 32,688 | ||||||||||||
Class C(2) | 16 | 164 | — | — | ||||||||||||
Class C2(3) | 154,276 | 1,607,634 | 124,796 | 1,346,293 | ||||||||||||
Class I | 786,662 | 8,214,210 | 765,369 | 8,268,486 | ||||||||||||
| 19,719,661 | 205,458,054 | 42,966,429 | 456,596,067 | |||||||||||||
| Shares redeemed: | ||||||||||||||||
Class A | (11,063,918 | ) | (114,623,630 | ) | (3,865,800 | ) | (41,787,101 | ) | ||||||||
Class B(1) | (13,089 | ) | (133,576 | ) | (41,573 | ) | (447,356 | ) | ||||||||
Class B(1) – automatic conversion to Class A Shares | (73,912 | ) | (766,968 | ) | (49,231 | ) | (530,525 | ) | ||||||||
Class C(2) | (10 | ) | (101 | ) | — | — | ||||||||||
Class C2(3) | (2,341,252 | ) | (24,183,652 | ) | (619,251 | ) | (6,691,753 | ) | ||||||||
Class I | (10,355,969 | ) | (106,945,782 | ) | (5,683,929 | ) | (61,610,506 | ) | ||||||||
| (23,848,150 | ) | (246,653,709 | ) | (10,259,784 | ) | (111,067,241 | ) | |||||||||
| Net increase (decrease) | (4,128,489 | ) | $ | (41,195,655 | ) | 32,706,645 | $ | 345,528,826 | ||||||||
| (1) | Class B Shares converted to Class A Shares at the close of business on February 20, 2014. |
| (2) | Class C Shares were established and commenced operations on February 10, 2014. |
| (3) | Class C2 Shares (formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014) are available only through exchanges from other Nuveen municipal bond funds or for purposes of dividend reinvestment, but Class C2 shares are not available for new accounts or for additional investment into existing accounts. |
5. Investment Transactions
Purchases and sales (including maturities but excluding short-term investments and derivative transactions, where applicable) during the fiscal year ended February 28, 2014, were as follows:
| California High Yield | California | |||||||
| Purchases | $ | 122,347,981 | $ | 275,663,013 | ||||
| Sales and maturities | 113,843,233 | 330,654,279 | ||||||
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.
| 72 | Nuveen Investments |
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 NAVs of the Funds.
As of February 28, 2014, 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 | $ | 321,251,788 | $ | 592,685,512 | ||||
| Gross unrealized: | ||||||||
Appreciation | $ | 16,212,622 | $ | 39,504,886 | ||||
Depreciation | (11,032,119 | ) | (2,794,394 | ) | ||||
| Net unrealized appreciation (depreciation) of investments | $ | 5,180,503 | $ | 36,710,492 | ||||
Permanent differences, primarily due to refund of federal taxes paid and taxable market discount, resulted in reclassifications among the Funds’ components of net assets as of February 28, 2014, the Funds’ tax year end, as follows:
| California High Yield | California | |||||||
| Capital paid-in | $ | — | $ | 337,602 | ||||
| Undistributed (Over-distribution of) net investment income | (6,376 | ) | (425,532 | ) | ||||
| Accumulated net realized gain (loss) | 6,376 | 87,930 | ||||||
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of February 28, 2014, the Funds’ tax year end, were as follows:
| California High Yield | California | |||||||
| Undistributed net tax-exempt income1 | $ | 655,053 | $ | 3,398,202 | ||||
| Undistributed net ordinary income2 | 257,901 | 17,369 | ||||||
| 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, 2014, through February 28, 2014, and paid on March 3, 2014. |
| 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’ tax years ended February 28, 2014 and February 28, 2013, was designated for purposes of the dividends paid deduction as follows:
2014 | California High Yield | California | ||||||
| Distributions from net tax-exempt income3 | $ | 15,296,844 | $ | 28,395,138 | ||||
| Distributions from net ordinary income2 | 135,340 | 37,340 | ||||||
| Distributions from net long-term capital gains | — | — | ||||||
| 2013 | 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. |
| 3 | The Funds hereby designate this amount paid during the fiscal year ended February 28, 2014, as Exempt Interest Dividends. |
| Nuveen Investments | 73 |
Notes to Financial Statements (continued)
As of February 28, 2014, the Funds’ tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.
| California High Yield | California4 | |||||||
| 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 | 5,369,409 | 7,813,420 | ||||||
| Total | $ | 11,580,618 | $ | 16,342,475 | ||||
| 4 | A portion of California’s capital loss carryforward is subject to an annual limitation under the Internal Revenue Code and related regulations. |
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 following fiscal year. The Funds have elected to defer losses as follows:
| California High Yield | California | |||||||
| Post-October capital losses5 | $ | 1,586,080 | $ | 104,473 | ||||
| Late-year ordinary losses6 | — | — | ||||||
| 5 | Capital losses incurred from November 1, 2013 through February 28, 2014, the Funds’ tax year end. |
| 6 | Ordinary losses incurred from January 1, 2014 through February 28, 2014, and specified losses incurred from November 1, 2013 through February 28, 2014. |
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 | ||||||
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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 February 28, 2014, the complex-level fee rate for each of these Funds was as follows: |
| Fund | Complex-Level Fee Rate | |||
| California High Yield | .1672 | % | ||
| California | .1716 | |||
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 fiscal year ended February 28, 2014, 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 (Unaudited) | $ | 531,193 | $ | 401,314 | ||||
| Paid to financial intermediaries (Unaudited) | 491,377 | 350,003 | ||||||
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.
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Notes to Financial Statements (continued)
During the fiscal year ended February 28, 2014, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
California High Yield | California | |||||||
| Commission advances (Unaudited) | $ | 388,606 | $ | 203,081 | ||||
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 and Class C2 Shares during the first year following a purchase are retained by the Distributor. During the fiscal year ended February 28, 2014, the Distributor retained such 12b-1 fees as follows:
California High Yield | California | |||||||
| 12b-1 fees retained (Unaudited) | $ | 152,953 | $ | 145,227 | ||||
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 fiscal year ended February 28, 2014, as follows:
California High Yield | California | |||||||
| CDSC retained (Unaudited) | $ | 141,831 | $ | 55,121 | ||||
8. Subsequent Events
Agreement and Plan of Merger
On April 14, 2014, TIAA-CREF, a national financial services organization, announced that it had entered into an agreement (the “Purchase Agreement”) to acquire Nuveen Investments, the parent company of the Adviser. The transaction is expected to be completed by the end of the year, subject to customary closing conditions, including obtaining necessary Nuveen Fund and client consents sufficient to satisfy the terms of the Purchase Agreement and obtaining customary regulatory approvals. There can be no assurance that the transaction described above will be consummated as contemplated or that necessary conditions will be satisfied.
The consummation of the transaction will be deemed to be an “assignment” (as defined in the Investment Company Act of 1940) of the investment management agreements between the Nuveen Funds and the Adviser and the investment sub-advisory agreements between the Adviser and each Nuveen Fund’s sub-adviser or sub-advisers, and will result in automatic termination of each agreement. It is anticipated that the Board of Directors/Trustees of the Nuveen Funds (the “Board”) will consider a new investment management agreement with the Adviser and new investment sub-advisory agreements with each sub-adviser. If approved by the Board, the new agreements will be presented to the Nuveen Funds’ shareholders for approval, and, if so approved by shareholders, will take effect upon consummation of the transaction or such later time as shareholder approval is obtained.
The transaction is not expected to result in any change in the portfolio management of the Funds or in the Funds’ investment objectives or policies.
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Fund Information (Unaudited)
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 Bostoxn, MA 02266-8530 (800) 257-8787 | ||||||||
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| 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. | ||||||||||||||
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| 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. | ||||||||||||||
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FINRA BrokerCheck: The Financial Industry Regulatory Authority (FINRA) provides information regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or by visiting www.FINRA.org. | ||||||||||||||
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Used in this Report (Unaudited)
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) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash and accrued earnings) less its total liabilities. For funds with multiple classes, Net Assets are determined separately for each share class. NAV per share is equal to the fund’s (or share class’) Net Assets divided by its 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.
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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.
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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
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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.
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.
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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.
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.
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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.
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.
| Nuveen Investments | 83 |
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
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, 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.
| 84 | Nuveen Investments |
and Officers (Unaudited)
The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. The number of directors of the Funds is currently set at ten. None of the trustees who are not “interested” persons of the Funds (referred to herein as “independent trustees”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
The Funds’ Statement of Additional Information (“SAI”) includes more information about the trustees. To request a free copy, call Nuveen Investments at (800) 257-8787 or visit the Funds’ website at www.nuveen.com.
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
| Independent Trustee: | ||||||||
William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman of the Board and Trustee | 1996 | Chairman of Miller-Valentine Partners Med, a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; owner in several other Miller-Valentine entities; Board Member of Mid-America Health System, Tech Town, Inc., a not-for-profit community development company, and WDPR Public Radio Station; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council. | 208 | ||||
Robert P. Bremner 1940 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1996 | Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute. | 208 | ||||
Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, member and President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. | 208 | ||||
William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2004 | Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); formerly, Director (1997-2007), Credit Research Center at Georgetown University. | 208 | ||||
| Nuveen Investments | 85 |
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
David J. Kundert 1942 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2005 | Formerly, Director, Northwestern Mutual Wealth Management Company (2006-2013); retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible. | 208 | ||||
John K. Nelson 1962 333 West Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Senior external advisor to the financial services practice of Deloitte Consulting LLP (since 2012); Member of Board of Directors of Core12 LLC (since 2008), a private firm which develops branding, marketing and communications strategies for clients; Director of The Curran Center for Catholic American Studies (since 2009) and The President’s Council, Fordham University (since 2010); formerly, Chairman of the Board of Trustees of Marian University (2010 as trustee, 2011-2014 as Chairman); formerly, Chief Executive Officer of ABN AMRO N.V. North America, and Global Head of its Financial Markets Division (2007-2008); prior senior positions held at ABN AMRO include Corporate Executive Vice President and Head of Global Markets—the Americas (2006-2007), CEO of Wholesale Banking—North America and Global Head of Foreign Exchange and Futures Markets (2001-2006), and Regional Commercial Treasurer and Senior Vice President Trading—North America (1996-2001); formerly, Trustee at St. Edmund Preparatory School in New York City. | 208 | ||||
Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Board Member, Land Trust Alliance (since June 2013) and U.S. Endowment for Forestry and Communities (since November 2013); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 208 | ||||
Carole E. Stone 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2007 | Director, Chicago Board Options Exchange (since 2006), C2 Options Exchange, Incorporated (since 2009) Director, CBOE Holdings, Inc. (since 2010); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007). | 208 | ||||
Virginia L. Stringer 1944 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2011 | Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc., a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010). | 208 |
| 86 | Nuveen Investments |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (1) | Principal Occupation(s) Including other Directorships During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and a member of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). | 208 |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
| Officers of the Funds: | ||||||||
Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 1988 | Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Vice President and Assistant Secretary (since 2013), formerly, Chief Administrative Officer and Chief Compliance Officer (2006-2013) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. | 208 | ||||
Margo L. Cook 1964 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2009 | Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director – Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. | 208 | ||||
Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004). | 208 | ||||
| Nuveen Investments | 87 |
Trustees and Officers (Unaudited) (continued)
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
Stephen D. Foy 1954 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Controller | 1998 | Managing Director (since 2014), formerly, Senior Vice President (2013-2014), and Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Senior Vice President (2010-2011), Formerly Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Certified Public Accountant. | 208 | ||||
Scott S. Grace 1970 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2009 | Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation. | 208 | ||||
Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Senior Vice President (since 2008) of Nuveen Investments Holdings, Inc. | 208 | ||||
Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Senior Vice President of Nuveen Investment Holdings, Inc. | 208 | ||||
Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 208 | ||||
Kathleen L. Prudhomme 1953 901 Marquette Avenue Minneapolis, MN 55402 | Vice President and Assistant Secretary | 2011 | Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010). | 208 | ||||
Joel T. Slager 1978 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since May, 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013); Tax Director at PricewaterhouseCoopers LLP (from 2008 to 2010). | 208 |
| 88 | Nuveen Investments |
Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (2) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Director | ||||
Jeffery M. Wilson 1956 333 West Wacker Drive Chicago, IL 60606 | Vice President | 2011 | Senior Vice President of Nuveen Securities, LLC (since 2011); formerly, Senior Vice President of FAF Advisors, Inc. (2000-2010). | 107 |
| (1) | Trustees serve an indefinite term until his/her successor is elected or appointed. The year first elected or appointed represents the year in which the trustee was first elected or appointed to any fund in the Nuveen Fund Complex. |
| (2) | Officers serve one year terms through August of each year. The year first elected or appointed represents the year in which the officer was first elected or appointed to any fund in the Nuveen Fund Complex. |
| Nuveen Investments | 89 |
Notes
| 90 | Nuveen Investments |
Notes
| Nuveen Investments | 91 |
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| Nuveen Investments: | ||||||||||||||
| Serving Investors for Generations | ||||||||||||||
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| 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. | ||||||||||||||
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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 $221 billion as of December 31, 2013. | ||||||||||||||
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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 | ||||||||||||||
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| Distributed by Nuveen Securities, LLC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com | ||||||||||||||
MAN-CA-0214D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/MutualFunds/ShareholderResources/FundGovernance.aspx. (To view the code, click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant’s Board of Directors determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant’s audit committee financial expert is Carole E. Stone, who is “independent” for purposes of Item 3 of Form N-CSR.
Ms. Stone served for five years as Director of the New York State Division of the Budget. As part of her role as Director, Ms. Stone was actively involved in overseeing the development of the State’s operating, local assistance and capital budgets, its financial plan and related documents; overseeing the development of the State’s bond-related disclosure documents and certifying that they fairly presented the State’s financial position; reviewing audits of various State and local agencies and programs; and coordinating the State’s system of internal audit and control. Prior to serving as Director, Ms. Stone worked as a budget analyst/examiner with increasing levels of responsibility over a 30 year period, including approximately five years as Deputy Budget Director. Ms. Stone has also served as Chair of the New York State Racing Association Oversight Board, as Chair of the Public Authorities Control Board, as a Commissioner on the New York State Commission on Public Authority Reform and as a member of the Boards of Directors of several New York State public authorities. These positions have involved overseeing operations and finances of certain entities and assessing the adequacy of project/entity financing and financial reporting. Currently, Ms. Stone is on the Board of Directors of CBOE Holdings, Inc., of the Chicago Board Options Exchange, and of C2 Options Exchange. Ms. Stone’s position on the boards of these entities and as a member of both CBOE Holdings’ Audit Committee and its Finance Committee has involved, among other things, the oversight of audits, audit plans and preparation of financial statements.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show the amount of fees that PricewaterhouseCoopers LLP, the Funds’ auditor, billed to the Funds’ during the Funds’ last two full fiscal years. The Audit Committee approved in advance all audit services and non-audit services that PricewaterhouseCoopers LLP provided to the Funds, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The preapproval exception for services provided directly to the Funds waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Funds during the fiscal year in which the services are provided; (B) the Funds did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE AUDITOR BILLED TO THE FUNDS
Fiscal Year Ended February 28, 2014 | Audit Fees Billed to Funds 1 | Audit-Related Fees Billed to Funds 2 | Tax Fees Billed to Funds 3 | All Other Fees Billed to Funds 4 | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Connecticut Municipal Bond Fund | 25,653 | 0 | 0 | 0 | ||||||||||||
Nuveen California Municipal Bond Fund | 27,039 | 2,000 | 6,450 | 0 | ||||||||||||
Nuveen California High Yield Municipal Bond Fund | 25,569 | 0 | 0 | 0 | ||||||||||||
Nuveen New Jersey Municipal Bond Fund | 25,431 | 0 | 0 | 0 | ||||||||||||
Nuveen New York Municipal Bond Fund | 27,263 | 0 | 0 | 0 | ||||||||||||
Nuveen Massachusetts Municipal Bond Fund | 25,120 | 0 | 0 | 0 | ||||||||||||
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Total | $ | 156,075 | $ | 2,000 | $ | 6,450 | $ | 0 | ||||||||
| 1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
| 2 | “Audit-Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage. |
| 3 | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculations performed by the principal accountant. |
| 4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage. |
| Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||||||
| Audit Fees Billed to Funds | Audit-Related Fees Billed to Funds | Tax Fees Billed to Funds | All Other Fees Billed to Funds | |||||||||||||
Fund Name | ||||||||||||||||
Nuveen Connecticut Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen California Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen California High Yield Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen New Jersey Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen New York Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Massachusetts Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Fiscal Year Ended February 28, 2013 | Audit Fees Billed to Funds 1 | Audit-Related Fees Billed to Funds 2 | Tax Fees Billed to Funds 3 | All Other Fees Billed to Funds 4 | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Connecticut Municipal Bond Fund | 24,387 | 0 | 1,180 | 0 | ||||||||||||
Nuveen California Municipal Bond Fund | 24,303 | 0 | 1,180 | 0 | ||||||||||||
Nuveen California High Yield Municipal Bond Fund | 23,457 | 0 | 1,180 | 0 | ||||||||||||
Nuveen New Jersey Municipal Bond Fund | 23,988 | 0 | 1,180 | 0 | ||||||||||||
Nuveen New York Municipal Bond Fund | 26,099 | 0 | 1,760 | 0 | ||||||||||||
Nuveen Massachusetts Municipal Bond Fund | 23,766 | 0 | 1,760 | 0 | ||||||||||||
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Total | $ | 146,000 | $ | 0 | $ | 8,240 | $ | 0 | ||||||||
| 1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
| 2 | “Audit-Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”. These fees include offerings related to the Fund’s common shares and leverage. |
| 3 | “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable basis calculations performed by the principal accountant. |
| 4 | “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”. These fees represent all “Agreed-Upon Procedures” engagements pertaining to the Fund’s use of leverage. |
| Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||||||
| Audit Fees Billed to Funds | Audit-Related Fees Billed to Funds | Tax Fees Billed to Funds | All Other Fees Billed to Funds | |||||||||||||
Fund Name | ||||||||||||||||
Nuveen Connecticut Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen California Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen California High Yield Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen New Jersey Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen New York Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Nuveen Massachusetts Municipal Bond Fund | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
Fiscal Year Ended February 28, 2014 | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | |||||||||
Nuveen Multistate Trust II | $ | 0 | $ | 0 | $ | 0 | ||||||
| Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||
| Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | ||||||||||
| 0 | % | 0 | % | 0 | % | |||||||
Fiscal Year Ended February 28, 2013 | Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | |||||||||
Nuveen Multistate Trust II | $ | 0 | $ | 0 | $ | 0 | ||||||
| Percentage Approved Pursuant to Pre-approval Exception | ||||||||||||
| Audit-Related Fees Billed to Adviser and Affiliated Fund Service Providers | Tax Fees Billed to Adviser and Affiliated Fund Service Providers | All Other Fees Billed to Adviser and Affiliated Fund Service Providers | ||||||||||
| 0 | % | 0 | % | 0 | % | |||||||
Fiscal Year Ended February 28, 2014 | Total Non-Audit Fees Billed to Trust | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Trust) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) | Total | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Connecticut Municipal Bond Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen California Municipal Bond Fund | 6,450 | 0 | 0 | 6,450 | ||||||||||||
Nuveen California High Yield Municipal Bond Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen New Jersey Municipal Bond Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen New York Municipal Bond Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen Massachusetts Municipal Bond Fund | 0 | 0 | 0 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 6,450 | $ | 0 | $ | 0 | $ | 6,450 | ||||||||
“Non-Audit Fees billed to Fund” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.
Less than 50 percent of the hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
Fiscal Year Ended February 28, 2013 | Total Non-Audit Fees Billed to Trust | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Trust) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) | Total | ||||||||||||
Fund Name | ||||||||||||||||
Nuveen Connecticut Municipal Bond Fund | 1,180 | 0 | 0 | 1,180 | ||||||||||||
Nuveen California Municipal Bond Fund | 1,180 | 0 | 0 | 1,180 | ||||||||||||
Nuveen California High Yield Municipal Bond Fund | 1,180 | 0 | 0 | 1,180 | ||||||||||||
Nuveen New Jersey Municipal Bond Fund | 1,180 | 0 | 0 | 1,180 | ||||||||||||
Nuveen New York Municipal Bond Fund | 1,760 | 0 | 0 | 1,760 | ||||||||||||
Nuveen Massachusetts Municipal Bond Fund | 1,760 | 0 | 0 | 1,760 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 8,240 | $ | 0 | $ | 0 | $ | 8,240 | ||||||||
“Non-Audit Fees billed to Fund” for both fiscal year ends represent “Tax Fees” and “All Other Fees” billed to Fund in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Funds by the Funds’ independent accountant and (ii) all audit and non-audit services to be performed by the Funds’ independent accountant for the Affiliated Fund Service Providers with respect to the operations and financial reporting of the Funds. Regarding tax and research projects conducted by the independent accountant for the Funds and Affiliated Fund Service Providers (with respect to operations and financial reports of the Trust), such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee Chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
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 of Trustees 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 because the code is posted on registrant’s website at www.nuveen.com/MutualFunds/ShareholderResources/FundGovernance.aspx and there were no amendments during the period covered by this report. (To view the code, click on Code of Conduct.) | |
| (a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: 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: May 8, 2014
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: May 8, 2014
| By (Signature and Title) | /s/ Stephen D. Foy | |
| Stephen D. Foy | ||
| Vice President and Controller | ||
| (principal financial officer) | ||
Date: May 8, 2014