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)
Kathleen L. Prudhomme
Vice President and Secretary
901 Marquette Avenue
Minneapolis, Minnesota 55402
(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, 2017
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Mutual Funds
Nuveen Municipal
Bond Funds
It's not what you earn, it's what you keep.®
Annual Report February 28, 2017
| Class / Ticker Symbol | |||||||
| Fund Name | Class A | Class C | Class C2 | Class I | |||
| Nuveen California High Yield Municipal Bond Fund | NCHAX | NAWSX | NCHCX | NCHRX | |||
| Nuveen California Municipal Bond Fund | NCAAX | NAKFX | NCACX | NCSPX | |||
| Nuveen California Intermediate Municipal Bond Fund | NUCAX | NUCCX | — | NUCIX | |||
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or
Table
of Contents
NUVEEN 3
Chairman’s Letter
to Shareholders
to Shareholders
Dear Shareholders,
Whether politics or the economy will prevail over the financial markets this year has been a much-analyzed question. After the U.S. presidential election, stocks rallied to new all-time highs, bonds tumbled, and business and consumer sentiment grew pointedly optimistic. But, to what extent the White House can translate rhetoric into stronger economic and corporate earnings growth remains to be seen. Stock prices have experienced upward momentum driven by positive economic news, interest rates are rising in light of the next anticipated Federal Reserve (Fed) rate hikes and inflation is ticking higher.
The Trump administration's early policy decisions have caused the markets to reassess their outlooks, cooling the stock market rally and stabilizing bond prices. The White House's pro-growth agenda of tax reform, infrastructure spending and deregulation remains on the table, but there is growing recognition that it may look different than Wall Street had initially expected.
Nevertheless, there is a case for optimism. The jobs recovery, firming wages, the housing market and confidence measures are supportive of continued expansion in the economy. The Fed enacted its second and third interest rate hikes in December 2016 and March 2017, respectively, a vote of confidence that its employment and inflation targets are on track. Economies outside the U.S. have strengthened in recent months, possibly heralding the beginnings of a global synchronized recovery. Furthermore, the populist/nationalist undercurrent that helped deliver President Trump’s win and the U.K.’s decision to leave the European Union (or “Brexit”) remained in the minority in the Dutch general election in March, easing the political uncertainty surrounding France and Germany’s elections later this year.
In the meantime, the markets will be focused on economic sentiment surveys along with “hard” data such as consumer and business spending to gauge the economy’s progress. With the Fed now firmly in tightening mode, rate moves that are more aggressive than expected could spook the markets and potentially stifle economic growth. On the political economic front, President Trump’s other signature platform plank, protectionism, is arguably anti-growth. We expect some churning in the markets as these issues sort themselves out.
Market volatility readings have been remarkably low of late, but conditions can change quickly. As market conditions evolve, Nuveen remains committed to rigorously assessing opportunities and risks. If you’re concerned about how resilient your investment portfolio might be, we encourage you to talk to your financial advisor. 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 24, 2017
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Portfolio Managers’
Comments
Comments
Nuveen California High Yield Municipal Bond Fund
Nuveen California Municipal Bond Fund
Nuveen California Intermediate Municipal Bond Fund
These Funds feature portfolio management by Nuveen Asset Management, LLC, an affiliate of Nuveen, LLC. Portfolio managers John V. Miller, CFA, and Scott R. Romans, PhD, review market conditions, key investment strategies and the Funds’ performance during the twelve-month reporting period ended February 28, 2017 and the abbreviated reporting period for the Nuveen California Intermediate Municipal Bond Fund since its commencement of operations on October 19, 2016. 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 and the Nuveen California Intermediate Municipal Bond Fund since its inception on October 19, 2016.
What factors affected the U.S. economy and the national municipal bond market during the twelve-month reporting period ended February 28, 2017?
The U.S. economy continued to expand at its below-trend rate but showed some signs of strengthening in the latter months of the reporting period. For 2016 as a whole, the Bureau of Economic Analysis reported that the economy grew at an annual rate of 1.6%, as measured by real gross domestic product (GDP), which is the value of goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes. Despite a boost in third-quarter GDP from a short-term jump in exports, economic activity in the other three calendar quarters of 2016 stayed near or below the 2% growth mark.
However, momentum appeared to be building in the second half of the reporting period. The labor market continued to tighten, inflation ticked higher, and consumer confidence and spending were higher. As reported by the Bureau of Labor Statistics, the unemployment rate fell to 4.7% in February 2017 from 4.9% in February 2016 and job gains averaged around 200,000 per month for the past twelve months. Higher oil prices helped drive a steady increase in inflation over this reporting period. The twelve-month change in the Consumer Price Index (CPI) rose from the low of 0.8% in July 2016 to 2.7% over the twelve-month reporting period ended February 2017 on a seasonally adjusted basis, as reported by the U.S. Bureau of Labor Statistics. The core CPI (which excludes food and energy) increased 2.2% during the same period, slightly above the Federal Reserve’s (Fed) unofficial longer term inflation objective of 2.0% and the fifteenth consecutive month in the range of 2.1% to 2.3%. The housing market also continued to improve, with historically low mortgage rates and low inventory driving home prices higher. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 5.9% annual gain in January 2017 (most recent data available at the time this report was prepared) (effective July 26, 2016, the S&P/Case-Shiller U.S. National Home Price Index was renamed the S&P CoreLogic Case-Shiller U.S. National Home Price Index). The 10-City and 20-City Composites reported year-over-year increases of 4.8% and 5.7%, respectively.
The U.S. economic outlook struck a more optimistic tone, prompting the Fed’s policy making committee to raise its main benchmark interest rate in December 2016 and again in March 2017 (after the close of this reporting period). These moves were widely expected by the markets and additional increases are anticipated in 2017 as the Fed seeks to gradually “normalize” interest rates.
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.
For financial reporting purposes, the ratings disclosed 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). This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
NUVEEN 5
Portfolio Managers’ Comments (continued)
The political environment was another major influence on the markets over the reporting period. In the U.S., the surprising election of Donald Trump boosted consumer, business and market sentiment, on hopes that Trump’s policy agenda of tax reform, infrastructure spending and reduced regulation would reignite the economy. While U.S. stocks rallied particularly strongly in the months following the election, the advance slowed as concerns about the new administration’s immigration policy and the Republican’s health care bill began to weigh on the markets. Prior to the U.S. presidential election, Britain’s vote to leave the European Union, known as Brexit, roiled the markets in late June and July. Although world stock markets largely recovered, sterling dropped to a 31-year low and remained volatile as the U.K. prepared for exit negotiations. Investors also worried whether the undercurrent of populism and nationalism supporting the Trump and Brexit victories could spread across Europe, where several countries have key elections in 2017.
The municipal bond market encountered elevated volatility over the twelve-month reporting period, driven by a sell-off and widening credit spreads following the surprise election results. Prior to the election, municipal bond mutual funds had been drawing steady inflows from September 2015 to October 2016, which kept demand outpacing supply and supported prices. However, beginning in mid-October, demand began to soften in anticipation of a Fed rate hike. Municipal bond prices continued to fall in November after Trump’s win triggered rising inflation and interest rate expectations as well as speculation on tax code changes, and in December due to tax-loss selling. A sharp rise in interest rates after the election fueled a reversal in municipal bond fund flow. Municipal bond funds experienced large outflows in the fourth quarter of 2016, especially in the high yield municipal segment, which drove mutual fund managers to sell positions to help meet investor redemptions. At the same time, new issuance spiked in October 2016, further contributing to excess supply and exacerbating falling prices and credit spread widening.
In the reporting period overall, municipal bond issuance nationwide totaled $442.7 billion, an 11.5% gain from the issuance for the twelve-month period ended February 29, 2016. Gross issuance remains robust as issuers continue to actively and aggressively refund their outstanding debt given the low interest rate environment. In these transactions the issuers are issuing new bonds and taking the bond proceeds and redeeming (calling) old bonds. These refunding transactions have ranged from 40%-60% of total issuance over the past few years. Thus, the net issuance (all bonds issued less bonds redeemed) is actually much lower than the gross issuance. In fact, the total municipal bonds outstanding has actually declined in each of the past four calendar years. So, the gross is surging, but the net is not and this was an overall positive technical factor on municipal bond investment performance in recent years. However, since the low in July 2016, interest rates have moved higher on expectations of additional Fed rate hikes, rising inflation and stronger economic growth. Issuers have begun to pull future refunding deals, as higher interest rates have eroded the potential cost savings of replacing older bonds.
Although the municipal bond market experienced widening credit spreads post-election, the trend was more attributable to technical conditions than a change in the fundamental backdrop. Despite the U.S. economy’s rather sluggish recovery, improving state and local balance sheets have contributed to generally good credit fundamentals. Higher tax revenue growth, better expense management and a more cautious approach to new debt issuance have led to credit upgrades and stable credit outlooks for many state and local issuers. While some pockets of weakness continued to grab headlines, including Illinois, New Jersey and Puerto Rico, their problems were largely contained, with minimal spillover into the broader municipal market.
What were the economic and market environments in California during the twelve-month reporting period ended February 28, 2017?
California’s $2.46 trillion economy is the largest in the United States and ranks sixth in the world according to the International Monetary Fund. California job growth continues to outpace the national average, driven by high technology, international trade and tourism but also supplemented by better residential construction and real estate conditions. As a result, the state’s unemployment rate improved to 5.0% as of February 2017, down from 5.6% the year prior, and the gap between the state’s and the nation’s 4.7% unemployment rate is narrowing. According to the S&P CoreLogic Case-Shiller Index, home prices in San Diego, Los Angeles and San Francisco rose 5.7%, 5.3% and 6.3%, respectively, over the twelve months ended January 2017 (most recent data available at the time this report was prepared) compared with an average increase of 5.9% nationally. Continued winter storms have improved California’s water supply levels and weakened the drought. According to the U.S. Drought Monitor as of March 7, 2017, approximately 8% of California is suffering from the drought. This is a vast improvement from the start of the rainy season in early October 2016, when 83.6% of the state was under drought. Governor Brown has not officially declared the five-year drought over as the emergency drought conservation measures remain in place. The enacted Fiscal 2017 General Fund budget totals $122.5 billion, which is 6% higher than the revised Fiscal Year 2016 budget. Strong revenue growth due to a recovering economy and the additional personal income tax revenue from the passage of Proposition 30 in 2012 have aided in the state’s fiscal recovery. For Fiscal Year 2017-2018, the proposed General Fund
6 NUVEEN
Governor’s Budget totals $122.5 billion and projects a $1.6 billion deficit because of slowed economic growth, resulting in lagging revenues and higher-than-expected expenditures. On July 2, 2015, S&P upgraded its rating on California general obligation (GO) debt to “AA-/STABLE” from “A+/CreditWatch Positive” citing “improved fiscal sustainability.” Moody’s upgraded the state GO to Aa3 with stable outlook from A1 in June 2014 citing “the State’s rapidly improving financial position.” During the twelve months ended February 28, 2017, municipal issuance in California totaled $66.9 billion, a gross issuance increase of 25.6% from the twelve months ended February 29, 2016. For this reporting period, California was the largest state issuer in the nation, representing approximately 14.3% of total issuance nationwide.
How did the Funds perform during the twelve-month reporting period ended February 28, 2017?
The tables in the Fund Performance, Expense Ratios and Effective Leverage Ratios section of this report provide each Fund’s total returns for the one-year, five-year, ten-year and since-inception periods ended February 28, 2017. Each Fund’s Class A Share total returns at net asset value (NAV) are compared with the performance of its benchmark and corresponding Lipper classification average.
During the reporting period, the Nuveen California High Yield Municipal Bond Fund and the Nuveen California Municipal Bond Fund underperformed their respective benchmark indexes, the S&P Municipal Yield Index and the S&P Municipal Bond Index. The Nuveen California Intermediate Municipal Bond Fund underperformed the S&P Municipal Bond Intermediate Index during the abbreviated reporting period between the Fund’s October 19, 2016, inception date and February 28, 2017. Meanwhile, the Nuveen California High Yield Municipal Bond Fund and the Nuveen California Municipal Bond Fund outperformed their Lipper classification average, while the Nuveen California Intermediate Municipal Bond Fund modestly trailed its Lipper classification average.
What strategies were used to manage the Funds during the reporting period and how did these strategies influence performance?
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
The Nuveen California High Yield Municipal Bond Fund underperformed the S&P Municipal Yield Index for the twelve-month reporting period. The main reason behind this performance gap was the Fund’s limited exposure to two investment categories that performed extremely well. We purposely lacked any exposure to bonds affiliated with Puerto Rico, which make up a relatively large stake in the S&P Municipal Yield Index. During the reporting period, bonds associated with this U.S. territory were strong performers, as investors were optimistic about the potential for last summer’s reform legislation to help stabilize the island’s financial difficulties. Even so, we remained cautious about Puerto Rico’s long-term credit outlook and continued to avoid the territory’s bonds throughout the reporting period, which we see as a prudent long-term strategy, even as it was detrimental on a short-term basis. The second factor involved our allocation to tobacco securitization debt, a strong performing category. Although the Fund benefited from those tobacco bonds we did hold, our underweighting in the sector left a performance disadvantage relative to the index. At the end of the reporting period, roughly 10% of the portfolio was invested in the tobacco sector. We remained comfortable with this tobacco sector allocation but did not want to sacrifice the portfolio’s diversification or increase its volatility by adding more to it.
None of the Fund’s holdings encountered material negative credit events during the reporting period. In a volatile market environment characterized by periods of rising interest rates, several longtime holdings held up relatively well and continued to produce steady income in support of the Fund’s dividend.
Our exposure to bonds of Loma Linda University Medical Center, a hospital complex east of Los Angeles, generated positive performance, as their coupon income helped offset a modest decline in the bonds’ prices amid higher rates. We saw similarly favorable results with our investments in bonds for the San Joaquin Hills tollroad and the San Diego County water and sewer project for Poseidon Resources Channelside LP Desalination Project. In all of these cases, we continued to see the issuers’ credit fundamentals on an improving long-term trajectory.
Our management strategy during this reporting period involved maintaining our long-term philosophy and avoiding overreaction to short-term market volatility. Municipal bond investors encountered two significant market moves during this reporting period. First, between March and July 2016, concerns about sluggish global economic growth pushed down municipal interest rates, while credit
NUVEEN 7
Portfolio Managers’ Comments (continued)
spreads narrowed, indicating that investors were increasingly comfortable taking on credit risk. Second, after the U.S. elections in November 2016, we saw an almost-complete reversal in the municipal bond marketplace; with the election of Donald Trump bringing unified Republican control in Washington, D.C., investors began to anticipate economically stimulative policies with the potential to lift inflation. Accordingly, interest rates rose, pressuring municipal bond prices before they began to recover some lost ground late in the reporting period.
In both of these cases, we thought that investors were overreacting to market conditions and keeping a longer-term perspective would better serve shareholders. Accordingly, during the reporting period, we continued to follow our strategy in all types of market conditions: seeking good relative value among the best available bonds for California projects we believe have the opportunity to become essential services over time, while maintaining a diversified portfolio of predominantly high yield bonds offering sufficient income opportunities to our shareholders.
We were active buyers of municipal bonds throughout the reporting period, primarily using the proceeds of new investment inflows and bond calls. New purchases generally focused on issues offering coupons of at least 5%, with a particular focus on areas we have long emphasized, especially land and community facilities district, hospital and charter school bonds. We did not make meaningful structural changes to the portfolio, as we liked its positioning coming into the reporting period, both in terms of diversification and the credit fundamentals of our individual holdings.
As previously mentioned, our concerns about credit quality led us to avoid any exposure to Puerto Rico bonds. Similarly, in September 2016, we liquidated the Fund’s remaining holding in the bonds of another potentially credit challenged U.S. territory, the U.S. Virgin Islands, selling our positions at what we saw as favorable prices. At the end of the reporting period, our only remaining territorial bond exposure was Guam, whose credit quality we saw as solid. Bonds of U.S. territories may offer diversification and triple exemption (i.e., exemption from most federal, state and local taxes).
During the current reporting period the Fund’s interest-rate swaps performed as intended, reducing the Fund's duration and limiting its vulnerability to rising rates. These swap contracts had a positive impact on performance during the reporting period.
Impact of the 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 (more detail is provided later in the report) 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 may provide opportunities for additional income and total returns, particularly in the recent market environment where short-term market rates are 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 the Fund uses leverage, it will experience a greater increase in its NAV if the municipal bonds acquired through the use of leverage increase in value, but it will also experience a correspondingly larger decline in its NAV if the bonds acquired through the use of leverage decline in value, which will make the Fund’s NAV more volatile, and its total return performance more variable over time. In addition, income in levered funds will typically decrease when short-term interest rates increase and increase when short-term interest rates decrease. Leverage would also 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. As of February 28, 2017, the effective leverage was 19.11%, which is within our expected range and regularly monitored.
The Fund’s use of leverage through inverse floating rate securities was negligible to the performance of the Fund during this reporting period.
Nuveen California Municipal Bond Fund
The Nuveen California Municipal Bond Fund underperformed the S&P Municipal Bond Index for the twelve-month reporting period ended February 28, 2017.
Credit positioning was a positive contributor to the Fund’s relative performance. Specifically, underweightings in bonds with the highest credit ratings of AAA and AA coupled with overweightings in lower rated bonds added value, as weaker quality bonds were the better relative performers for the reporting period.
8 NUVEEN
Meanwhile, sector positioning had a mixed performance impact. On the positive side, the Fund was meaningfully helped by its allocation to the strong performing tobacco sector. Exposure to corporate-backed industrial development revenue bonds and housing issues also contributed, although the Fund’s utility bond investments were laggards.
During roughly the first half of the reporting period, and especially in the summer months, we were investing the proceeds of new shareholder inflows and bond calls to purchase large, highly liquid holdings, including AAA rated and AA rated utility bonds and school district general obligation debt. We focused on these and similarly high quality issues as placeholders in the portfolio. In our view, these bonds had good potential to better maintain their value even amid market volatility, and we believed they could be easily exchanged for attractive lower rated, higher yielding bonds should a market correction open up new investment opportunities.
In fact, such a situation presented itself in the fourth quarter of 2016 and especially in the weeks after the November U.S. elections. As bond yields rose while their prices fell accordingly (bond yields and prices move in opposite directions), we took advantage of market conditions to exchange many of the high quality positions we had earlier acquired for newer offerings providing similar risk characteristics but better yields, thus supporting the Fund’s dividends.
Also in the fourth quarter, amid widening credit spreads, we took advantage of Nuveen Asset Management's credit research capabilities to purchase various attractive lower investment grade and below investment grade bonds. Our new purchases during this time, which took place across multiple areas of the California municipal bond market, included health care, land-secured, charter school and tobacco bonds. Many of the purchases were favorable performers in the final months of the reporting period, as spreads narrowed again and the municipal market partially bounced back from its December 2016 lows. To finance these acquisitions, we used the proceeds of bond calls as well as selling some of the liquid placeholder bonds we had earlier purchased.
Nuveen California Intermediate Municipal Bond Fund
During the Fund’s abbreviated reporting period from the Fund’s inception date on October 19, 2016, to the end of the reporting period on February 28, 2017, the Nuveen California Intermediate Municipal Bond Fund trailed the S&P Municipal Bond Intermediate Index. The Fund was incepted in the midst of a sell-off in the municipal bond market, providing a difficult initial performance environment.
During this abbreviated reporting period, the Fund’s duration (interest rate) positioning hampered results. Our initial purchases for the portfolio left us with elevated exposure to longer duration bonds. This positioning proved suboptimal in light of the subsequent rise in interest rates in the fall of 2016, and especially after the U.S. elections in November 2016.
Credit quality positioning proved to be a second, lesser negative factor behind the Fund’s results. Our overweighting in lower rated bonds detracted from performance, as these issues underperformed their higher quality counterparts amid widening credit spreads, meaning that investors were becoming less comfortable with credit risk overall, even as spreads did start to narrow again late. On the positive side, the Fund benefited from favorable sector allocation, particularly from our investments in tobacco securitization bonds, which as a whole enjoyed particularly strong performance.
In making new purchases during this reporting period, our primary objective was to have the Fund fully invested and to achieve the Fund’s duration mandate through an average maturity ranging from three to ten years. We were successful in both respects. To achieve these goals, many purchases consisted of longer intermediate bonds across several predominantly lower rated sectors, such as tobacco, health care and charter schools. Simultaneously, to maintain the portfolio’s desired average maturity, we balanced these purchases with bonds occupying the shorter end of the yield curve, including many pre-refunded issues. These generally high quality, short maturity bonds made up roughly 21% of the portfolio at the end of the reporting period.
A Note About Investment Valuations
The municipal securities held by the Funds are valued by the Funds’ pricing service using a range of market-based inputs and assumptions. A different municipal pricing service might incorporate different assumptions and inputs into its valuation methodology, potentially resulting in different values for the same securities. These differences could be significant, both as to such individual securities, and as to the value of a given Fund’s portfolio in its entirety. Thus, the current net asset value of a Fund’s shares may be impacted, higher or lower, if the Fund were to change pricing service, or if its pricing service were to materially change its valuation methodology. On October 4, 2016, the Funds’ current municipal bond pricing service was acquired by the parent company of another pricing
NUVEEN 9
Portfolio Managers’ Comments (continued)
service. The two services have not yet combined their valuation organizations and process, but they announced in March 2017, that they anticipate doing so sometime in the ensuing months. Such changes could have an impact on the net asset value of the Fund’s shares.
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Risk Considerations
and Dividend Information
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.
Nuveen California Intermediate 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 regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each 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 income actually earned by the Fund during the period. If a 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 a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a 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, 2017, the Funds had positive UNII balances for tax purposes and positive UNII balances for financial reporting purposes.
All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes, the composition and per share amounts of each Fund’s dividends for the reporting period are presented in this report's Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 - Income Tax Information within the Notes to Financial Statements of this report.
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12 NUVEEN
Fund Performance, Expense Ratios
and Effective Leverage Ratios
and Effective Leverage Ratios
The Fund Performance, Expense Ratios and Effective Leverage Ratios for each Fund are shown within this section of the report.
Returns quoted represent past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the performance shown. Total returns for a period of less than one year are not annualized. Returns at net asset value (NAV) would be lower if the sales charge were included. Returns assume reinvestment of dividends and capital gains. For performance, current to the most recent month-end visit Nuveen.com or call (800) 257-8787.
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 fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for Class A Shares at NAV only.
The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any) as shown in the 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 its investment capital. The effective leverage ratio shown for each Fund is the amount of investment exposure created either directly 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. The Funds have not borrowed on a longer-term basis for investment purposes, and do not have any plans to do so. A Fund, however, may from time to time borrow on a typically transient basis in connection with its day-to-day operations, primarily in connection with the need to pay cash out to redeeming shareholders or to settle portfolio trades. Such incidental borrowings, described generally in Notes to Financial Statements, Note 8—Borrowing Arrangements, are excluded from the calculation of a Fund’s effective leverage ratio.
NUVEEN 13
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen California High Yield Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense Ratios and Effective Leverage Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of February 28, 2017
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | 0.25% | 6.73% | 4.31% |
| Class A Shares at maximum Offering Price | (4.00)% | 5.83% | 3.87% |
| S&P Municipal Yield Index | 4.42% | 5.80% | 4.61% |
| Lipper California Municipal Debt Fund Classification Average | 0.03% | 3.70% | 3.89% |
| Class C2 Shares | (0.30)% | 6.14% | 3.75% |
| Class I Shares | 0.44% | 6.95% | 4.52% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.44)% | 6.46% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | (0.36)% | 6.68% | 4.48% |
| Class A Shares at maximum Offering Price | (4.55)% | 5.76% | 4.03% |
| Class C2 Shares | (0.92)% | 6.10% | 3.89% |
| Class I Shares | (0.08)% | 6.90% | 4.67% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (1.16)% | 6.47% |
Since inception returns for Class C Shares are from 2/10/14. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million ($250,000 effective November 1, 2016) 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), of 1% if redeemed within eighteen months of purchase. Class C and Class 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 | 0.85% | 1.65% | 1.41% | 0.65% |
14 NUVEEN
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen California High Yield Municipal Bond Fund
Effective Leverage Ratio as of February 28, 2017
| Effective Leverage Ratio | 19.11% |
Growth of an Assumed $10,000 Investment as of February 28, 2017 – 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 redemptions of Fund shares.
NUVEEN 15
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen California Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense Ratios and Effective Leverage Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of February 28, 2017
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | 0.36% | 4.84% | 4.78% |
| Class A Shares at maximum Offering Price | (3.88)% | 3.95% | 4.33% |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% |
| S&P Municipal Bond California Index | 0.35% | 3.90% | 4.53% |
| Lipper California Municipal Debt Funds Classification Average | 0.03% | 3.70% | 3.89% |
| Class C2 Shares | (0.22)% | 4.28% | 4.21% |
| Class I Shares | 0.61% | 5.07% | 4.99% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.38)% | 4.66% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | (0.20)% | 5.02% | 4.85% |
| Class A Shares at maximum Offering Price | (4.39)% | 4.12% | 4.40% |
| Class C2 Shares | (0.78)% | 4.43% | 4.28% |
| Class I Shares | (0.04)% | 5.21% | 5.05% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (1.12)% | 4.60% |
Since inception returns for Class C Shares are from 2/10/14. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million ($250,000 effective November 1, 2016) 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), of 1% if redeemed within eighteen months of purchase. Class C and Class 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.
16 NUVEEN
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen California Municipal Bond Fund
Expense Ratios as of Most Recent Prospectus
| Share Class | ||||
| Class A | Class C | Class C2 | Class I | |
| Expense Ratios | 0.76% | 1.56% | 1.31% | 0.56% |
Effective Leverage Ratio as of February 28, 2017
| Effective Leverage Ratio | 0.00% |
Growth of an Assumed $10,000 Investment as of February 28, 2017 – 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 redemptions of Fund shares.
NUVEEN 17
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen California Intermediate Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense Ratios and Effective Leverage Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Cumulative Total Returns as of February 28, 2017
| Cumulative | ||
| Since Inception | ||
| Class A Shares at NAV | (1.75)% | |
| Class A Shares at maximum Offering Price | (4.70)% | |
| S&P Municipal Bond Intermediate Index | (1.41)% | |
| S&P Municipal Bond California Index | (1.53)% | |
| Lipper California Intermediate Municipal Debt Classification Average | (1.70)% | |
| Class C Shares | (2.42)% | |
| Class I Shares | (1.69)% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
| Cumulative | ||
| Since Inception | ||
| Class A Shares at NAV | (1.34)% | |
| Class A Shares at maximum Offering Price | (4.30)% | |
| Class C Shares | (2.17)% | |
| Class I Shares | (1.27)% |
Since inception returns are from 10/19/16. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 3.00% 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) of 1% if redeemed within eighteen months of purchase. Class C Shares have a 1% CDSC for redemptions within less than twelve months, which is not reflected in the one-year total return. Class I Shares have no sales charge and may be purchased under limited circumstances or by specified classes of investors.
Expense Ratios as of Most Recent Prospectus
| Share Class | |||
| Class A | Class C | Class I | |
| Gross Expense Ratios | 1.07% | 1.87% | 0.87% |
| Net Expense Ratios | 0.80% | 1.60% | 0.60% |
The Fund’s investment adviser has contractually agreed to waive fees and/or reimburse other Fund expenses through June 30, 2018 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 0.60% of the average daily net assets of any class of Fund shares. Fee waivers and/or expense reimbursements will not be terminated prior to that time without the approval of the Board of Trustees of the Fund.
18 NUVEEN
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen California Intermediate Municipal Bond Fund
Effective Leverage Ratio as of February 28, 2017
| Effective Leverage Ratio | 0.00% |
Growth of an Assumed $10,000 Investment as of February 28, 2017 – 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 redemptions of Fund shares.
NUVEEN 19
Yields as of February 28, 2017
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. Subsidized yields reflect fee waivers and/or expense reimbursements from the investment adviser during the period. If any such waivers and/or reimbursements had not been in place, yields would have been reduced. Unsubsidized yields do not reflect waivers and/or reimbursements from the investment adviser during the period. Refer to the Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for further details on the investment adviser’s most recent agreement with the Fund to waive fees and/or reimburse expenses, where applicable. 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. If the comparison were instead to investments that generate qualified dividend income, which is taxable at a rate lower than an individual’s ordinary graduated tax rate, the fund’s Taxable-Equivalent Yield would be lower.
Nuveen California High Yield Municipal Bond Fund
| Share Class | ||||
| Class A1 | Class C | Class C2 | Class I | |
| Dividend Yield | 3.75% | 3.08% | 3.34% | 4.11% |
| SEC 30-Day Yield - Subsidized | 3.65% | 3.01% | 3.26% | 4.01% |
| SEC 30-Day Yield - Unsubsidized | 3.65% | 3.01% | 3.26% | 4.01% |
| Taxable-Equivalent Yield - Subsidized (34.7)%2 | 5.59% | 4.61% | 4.99% | 6.14% |
| Taxable-Equivalent Yield - Unsubsidized (34.7)%2 | 5.59% | 4.61% | 4.99% | 6.14% |
Nuveen California Municipal Bond Fund
| Share Class | ||||
| Class A1 | Class C | Class C2 | Class I | |
| Dividend Yield | 3.03% | 2.35% | 2.57% | 3.32% |
| SEC 30-Day Yield - Subsidized | 2.22% | 1.53% | 1.78% | 2.52% |
| SEC 30-Day Yield - Unsubsidized | 2.22% | 1.53% | 1.78% | 2.52% |
| Taxable-Equivalent Yield - Subsidized (34.7)%2 | 3.40% | 2.34% | 2.73% | 3.86% |
| Taxable-Equivalent Yield - Unsubsidized (34.7)%2 | 3.40% | 2.34% | 2.73% | 3.86% |
20 NUVEEN
Nuveen California Intermediate Municipal Bond Fund
| Share Class | |||
| Class A1 | Class C | Class I | |
| Dividend Yield | 1.31% | 0.55% | 1.53% |
| SEC 30-Day Yield - Subsidized | 1.80% | 0.08% | 2.05% |
| SEC 30-Day Yield - Unsubsidized | (0.13)% | (1.90)% | 0.06% |
| Taxable-Equivalent Yield - Subsidized (34.7)%2 | 2.76% | 0.12% | 3.14% |
| Taxable-Equivalent Yield - Unsubsidized (34.7)%2 | (0.20)% | (2.91)% | 0.09% |
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 shown in the respective table above.
NUVEEN 21
Holding
Summaries as of February 28, 2017
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.
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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.
Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Nuveen California High Yield Municipal Bond Fund
| Fund Allocation (% of net assets) | |
| Long-Term Municipal Bonds | 106.3% |
| Common Stocks | 0.5% |
| Other Assets Less Liabilities | 4.1% |
| Net Assets Plus Floating Rate Obligations | 110.9% |
| Floating Rate Obligations | (10.9)% |
| Net Assets | 100% |
| Portfolio Composition (% of total investments) | |
| Tax Obligation/Limited | 36.8% |
| Health Care | 13.9% |
| Education and Civic Organizations | 10.1% |
| Consumer Staples | 9.4% |
| Transportation | 8.4% |
| Tax Obligation/General | 6.6% |
| Other | 14.8% |
| Total | 100% |
| Bond Credit Quality (% of total investment exposure) | |
| AAA/U.S. Guaranteed | 4.2% |
| AA | 32.4% |
| A | 9.6% |
| BBB | 9.0% |
| BB or Lower | 16.8% |
| N/R (not rated) | 27.6% |
| N/A (not applicable) | 0.4% |
| Total | 100% |
22 NUVEEN
Nuveen California Municipal Bond Fund
| Fund Allocation (% of net assets) | |
| Long-Term Municipal Bonds | 99.0% |
| Other Assets Less Liabilities | 1.4% |
| Net Assets Plus Borrowings | 100.4% |
| Borrowings | (0.4)% |
| Net Assets | 100% |
| Portfolio Composition (% of total investments) | |
| Tax Obligation/General | 23.8% |
| Tax Obligation/Limited | 23.3% |
| Health Care | 12.2% |
| U.S. Guaranteed | 11.5% |
| Water and Sewer | 9.3% |
| Consumer Staples | 6.5% |
| Transportation | 5.1% |
| Other | 8.3% |
| Total | 100% |
| Bond Credit Quality (% of total investment exposure) | |
| AAA/U.S. Guaranteed | 16.0% |
| AA | 46.5% |
| A | 13.2% |
| BBB | 9.7% |
| BB or Lower | 10.2% |
| N/R (not rated) | 4.4% |
| Total | 100% |
NUVEEN 23
Holding Summaries as of February 28, 2017 (continued)
Nuveen California Intermediate Municipal Bond Fund
| Fund Allocation (% of net assets) | |
| Long-Term Municipal Bonds | 102.5% |
| Other Assets Less Liabilities | (2.5)% |
| Net Assets | 100% |
| Portfolio Composition (% of total investments) | |
| Tax Obligation/Limited | 35.7% |
| U.S. Guaranteed | 20.5% |
| Health Care | 16.8% |
| Water and Sewer | 11.2% |
| Education and Civic Organizations | 6.2% |
| Consumer Staples | 5.9% |
| Other | 3.7% |
| Total | 100% |
| Bond Credit Quality (% of total investment exposure) | |
| AAA/U.S. Guaranteed | 20.5% |
| AA | 27.4% |
| A | 22.6% |
| BBB | 16.3% |
| BB or Lower | 8.0% |
| N/R (not rated) | 5.2% |
| Total | 100% |
24 NUVEEN
Expense
Examples
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 California Intermediate reflect only the first 133 days of the Fund's operations, they may not provide a meaningful understanding of the Fund's ongoing expense.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended February 28, 2017.
The beginning of the period is September 1, 2016. The beginning of the period for California Intermediate is October 19, 2016.
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 each 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 following 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 California High Yield Municipal Bond Fund
| Share Class | ||||
| Class A | Class C | Class C2 | Class I | |
| Actual Performance | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $ 943.30 | $ 940.40 | $ 941.50 | $ 944.20 |
| Expenses Incurred During the Period | $ 4.19 | $ 8.03 | $ 6.84 | $ 3.18 |
| Hypothetical Performance (5% annualized return before expenses) | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $1,020.48 | $1,016.51 | $1,017.75 | $1,021.52 |
| Expenses Incurred During the Period | $ 4.36 | $ 8.35 | $ 7.10 | $ 3.31 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.87%, 1.67%, 1.42% and 0.66% for Classes A, C, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
NUVEEN 25
Expense Examples (continued)
Nuveen California Municipal Bond Fund
| Share Class | ||||
| Class A | Class C | Class C2 | Class I | |
| Actual Performance | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $ 960.90 | $ 957.40 | $ 957.90 | $ 962.50 |
| Expenses Incurred During the Period | $ 3.65 | $ 7.52 | $ 6.31 | $ 2.68 |
| Hypothetical Performance (5% annualized return before expenses) | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $1,021.08 | $1,017.11 | $1,018.35 | $1,022.07 |
| Expenses Incurred During the Period | $ 3.76 | $ 7.75 | $ 6.51 | $ 2.76 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.75%, 1.55%, 1.30% and 0.55% for Classes A, C, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Nuveen California Intermediate Municipal Bond Fund
| Share Class | |||
| Class A | Class C | Class I | |
| Actual Performance | |||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $ 982.50 | $ 975.80 | $ 983.10 |
| Expenses Incurred During the Period | $ 3.74 | $ 7.64 | $ 2.75 |
| Hypothetical Performance (5% annualized return before expenses) | |||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $1,021.03 | $1,017.06 | $1,022.02 |
| Expenses Incurred During the Period | $ 2.80 | $ 5.73 | $ 2.06 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.76%, 1.56% and 0.56% for Classes A, C and I, respectively, multiplied by the average account value over the period, multiplied by 133/365 (to reflect the 133 days in the period since commencement of operations).
26 NUVEEN
Report of
Independent Registered Public Accounting Firm
Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Multistate Trust II:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen California High Yield Municipal Bond Fund, Nuveen California Municipal Bond Fund, and Nuveen California Intermediate Municipal Bond Fund (three of the funds comprising Nuveen Multistate Trust II) (the “Funds”) as of February 28, 2017, and the related statements of operations, the statements of changes in net assets, and the financial highlights for the year or period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets and the financial highlights of Nuveen California High Yield Municipal Bond Fund and Nuveen California Municipal Bond Fund for the periods presented through February 29, 2016 were audited by other auditors whose report dated April 27, 2016 expressed an unqualified opinion on those statements and those financial highlights.
We conducted our audits 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 and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of February 28, 2017, by correspondence with the custodian and brokers or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of February 28, 2017, the results of their operations, the changes in their net assets, and the financial highlights for the year or period then ended, in conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP
Chicago, Illinois
April 26, 2017
NUVEEN 27
Nuveen California High Yield Municipal Bond Fund
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| LONG-TERM INVESTMENTS–106.8% | ||||||
| MUNICIPAL BONDS–106.3% | ||||||
| Consumer Discretionary–0.2% | ||||||
| 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 | $649,900 | ||
| 160 | 6.000%, 12/15/37 (4) | 5/17 at 100.00 | N/R | 79,984 | ||
| 15 | Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds, Southgate Suites Retail Project, Series 2007B, 9.000%, 12/15/14 (4) | No Opt. Call | N/R | 7,499 | ||
| 500 | Morongo Band of Mission Indians, California, Enterprise Revenue Bonds, Series 2008B, 6.500%, 3/01/28 | 3/18 at 100.00 | N/R | 520,270 | ||
| 1,675 | Total Consumer Discretionary | 1,257,653 | ||||
| Consumer Staples–10.1% | ||||||
| 27,000 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Subordinate Series 2006A, 0.000%, 6/01/50 | 5/17 at 13.28 | N/R | 2,381,940 | ||
| 1,155 | 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 | N/R | 1,092,156 | ||
| California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A: | ||||||
| 25 | 5.600%, 6/01/36 | 12/18 at 100.00 | B3 | 25,460 | ||
| 1,000 | 5.650%, 6/01/41 | 12/18 at 100.00 | B2 | 1,018,390 | ||
| 1,205 | 5.700%, 6/01/46 | 12/18 at 100.00 | B2 | 1,206,097 | ||
| 1,860 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Merced County Tobacco Funding Corporation, Series 2005A, 5.125%, 6/01/38 | 5/17 at 100.00 | B1 | 1,810,543 | ||
| 50 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005, 5.250%, 6/01/45 | 5/17 at 100.00 | B- | 48,527 | ||
| 20,000 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Stanislaus County Tobacco Funding Corporation, Series 2006A, 0.000%, 6/01/46 | 5/17 at 100.00 | N/R | 2,690,600 | ||
| Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1: | ||||||
| 10,250 | 5.000%, 6/01/33 | 6/17 at 100.00 | B- | 10,250,205 | ||
| 7,890 | 5.750%, 6/01/47 | 6/17 at 100.00 | B- | 7,930,239 | ||
| 15,250 | 5.125%, 6/01/47 | 6/17 at 100.00 | B- | 15,249,085 | ||
| 14,400 | 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- | 14,448,528 | ||
| 19,050 | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Revenue Bonds, First Subordinate Series 2007B-1, 0.000%, 6/01/47 | 6/17 at 17.48 | CCC+ | 2,589,657 |
28 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Consumer Staples (continued) | ||||||
| $ 2,000 | Guam Economic Development & Commerce Authority, Tobacco Settlement Asset-Backed Bonds, Series 2007A, 5.625%, 6/01/47 | 6/17 at 100.00 | N/R | $1,899,960 | ||
| 22,000 | Inland Empire Tobacco Securitization Authority, California, Tobacco Settlement Asset-Backed Bonds, Series 2007C-2, 0.000%, 6/01/47 | 6/17 at 13.65 | N/R | 2,691,700 | ||
| Silicon Valley Tobacco Securitization Authority, California, Tobacco Settlement Asset-Backed Bonds, Santa Clara County Tobacco Securitization Corporation, Series 2007A: | ||||||
| 1,000 | 0.000%, 6/01/36 | 6/17 at 34.85 | N/R | 341,660 | ||
| 7,500 | 0.000%, 6/01/47 | 6/17 at 18.52 | N/R | 953,475 | ||
| Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1: | ||||||
| 1,800 | 5.375%, 6/01/38 | 5/17 at 100.00 | B- | 1,768,734 | ||
| 460 | 5.500%, 6/01/45 | 5/17 at 100.00 | B- | 444,047 | ||
| Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2006A: | ||||||
| 3,295 | 5.000%, 6/01/37 | 5/17 at 100.00 | BB+ | 3,294,835 | ||
| 10,330 | 5.125%, 6/01/46 | 5/17 at 100.00 | B+ | 10,290,333 | ||
| 167,520 | Total Consumer Staples | 82,426,171 | ||||
| Education and Civic Organizations–10.7% | ||||||
| 1,065 | California Educational Facilities Authority, Revenue Bonds, Dominican University, Series 2006, 5.000%, 12/01/36 | 5/17 at 100.00 | Ba1 | 1,068,280 | ||
| 2,000 | California Infrastructure and Economic Development Bank, Revenue Bonds, Academy of Motion Picture Arts and Sciences Obligated Group, Series 2015A, 5.000%, 11/01/41 | 11/23 at 100.00 | Aa2 | 2,271,340 | ||
| California Municipal Finance Authority Charter School Revenue Bonds, John Adams Academies, Inc. Project, Series 2015A: | ||||||
| 900 | 5.000%, 10/01/35 | 10/22 at 102.00 | BBB- | 927,468 | ||
| 1,335 | 5.250%, 10/01/45 | 10/22 at 102.00 | BBB- | 1,383,087 | ||
| 500 | 5.250%, 10/01/45 | 10/22 at 102.00 | BBB- | 518,010 | ||
| 1,000 | California Municipal Finance Authority, Charter School Lease Revenue Bonds, Nova Academy Project, Series 2016A, 5.000%, 6/15/46 | 6/26 at 100.00 | BB+ | 957,300 | ||
| 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 | 1,069,460 | ||
| California Municipal Finance Authority, Charter School Lease Revenue Bonds, Santa Rosa Academy Project, Series 2015: | ||||||
| 400 | 5.125%, 7/01/35 | 7/25 at 100.00 | BB+ | 411,176 | ||
| 425 | 5.375%, 7/01/45 | 7/25 at 100.00 | BB+ | 437,924 | ||
| California Municipal Finance Authority, Charter School Revenue Bonds, John Adams Academies, Inc. Project, Series 2014A: | ||||||
| 1,400 | 5.000%, 10/01/34 | 10/22 at 102.00 | BBB- | 1,442,728 | ||
| 465 | 5.000%, 10/01/44 | 10/22 at 102.00 | BBB- | 474,398 | ||
| 1,145 | California Municipal Finance Authority, Charter School Revenue Bonds, Palmdale Aerospace Academy Project, Series 2016A, 5.000%, 7/01/46 | 7/26 at 100.00 | BB | 1,150,233 |
NUVEEN 29
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| California Municipal Finance Authority, Charter School Revenue Bonds, Partnerships to Uplift Communities Project, Series 2012A: | ||||||
| $ 1,330 | 5.000%, 8/01/32 | No Opt. Call | BB | $1,357,398 | ||
| 4,580 | 5.250%, 8/01/42 | No Opt. Call | BB | 4,673,661 | ||
| 1,795 | 5.300%, 8/01/47 | 8/22 at 100.00 | BB | 1,831,654 | ||
| 2,245 | 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 | 2,515,814 | ||
| California Municipal Finance Authority, Charter School Revenue Bonds, Urban Discovery Academy Project, Series 2014A: | ||||||
| 875 | 5.500%, 8/01/34 | 8/24 at 100.00 | BB- | 878,010 | ||
| 1,650 | 6.000%, 8/01/44 | 8/24 at 100.00 | BB- | 1,680,310 | ||
| California Municipal Finance Authority, Education Revenue Bonds, American Heritage Foundation Project, Series 2016A: | ||||||
| 840 | 5.000%, 6/01/36 | 6/26 at 100.00 | BBB- | 895,188 | ||
| 1,415 | 5.000%, 6/01/46 | 6/26 at 100.00 | BBB- | 1,492,358 | ||
| 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 | 1,370,551 | ||
| California Municipal Finance Authority, Revenue Bonds, Azusa Pacific University Project, Refunding Series 2015B: | ||||||
| 1,435 | 5.000%, 4/01/35 | 4/25 at 100.00 | Baa3 | 1,516,723 | ||
| 770 | 5.000%, 4/01/41 | 4/25 at 100.00 | Baa3 | 806,783 | ||
| 1,500 | California Municipal Finance Authority, Revenue Bonds, Biola University, Refunding Series 2008A, 5.875%, 10/01/34 | 4/18 at 100.00 | Baa1 | 1,565,835 | ||
| 1,880 | California Municipal Finance Authority, Revenue Bonds, California Baptist University, Series 2016A, 5.000%, 11/01/46 | 11/26 at 100.00 | N/R | 1,869,547 | ||
| California Municipal Finance Authority, Revenue Bonds, Creative Center of Los Altos Project, Pinewood & Oakwood Schools, Series 2016B: | ||||||
| 500 | 4.000%, 11/01/36 | 11/26 at 100.00 | N/R | 457,770 | ||
| 600 | 4.500%, 11/01/46 | 11/26 at 100.00 | N/R | 549,492 | ||
| 1,290 | California Municipal Finance Authority, Revenue Bonds, Emerson College, Series 2011, 5.000%, 1/01/28 | No Opt. Call | BBB+ | 1,417,000 | ||
| 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 | 321,828 | ||
| 3,700 | California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento Valley & Northern Nevada Project, Series 2014A, 5.250%, 1/01/45 | 1/25 at 100.00 | N/R | 3,498,239 | ||
| California Municipal Finance Authority, Revenue Bonds, Touro College and University System, Series 2014A: | ||||||
| 1,245 | 5.250%, 1/01/34 | 7/24 at 100.00 | BBB- | 1,321,779 | ||
| 250 | 5.250%, 1/01/40 | 7/24 at 100.00 | BBB- | 262,523 | ||
| 1,075 | California School Finance Authority Charter School Facility Revenue Bonds, Grimmway Schools-Obligated Group, Series 2016A, 5.000%, 7/01/46 | 7/26 at 100.00 | BB+ | 1,036,870 | ||
| 1,020 | California School Finance Authority Charter School Revenue Bonds, California, ACE Charter Schools, Obligated Group, Series 2016A, 5.000%, 6/01/52 | 6/26 at 100.00 | N/R | 919,020 | ||
| 1,100 | California School Finance Authority, California, Charter School Revenue Bonds, Aspire Public Schools, Refunding Series 2015A, 5.000%, 8/01/45 | 8/25 at 100.00 | BBB | 1,143,241 |
30 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| $ 1,100 | California School Finance Authority, California, Charter School Revenue Bonds, Encore Education Obligated Group, Series 2016A, 5.000%, 6/01/52 | 6/26 at 100.00 | N/R | $998,866 | ||
| 1,300 | California School Finance Authority, California, Charter School Revenue Bonds, TEACH Public Schools Obligated Group, Series 2016A, 5.875%, 6/01/52 | No Opt. Call | N/R | 1,179,685 | ||
| California School Finance Authority, Charter School Revenue Bonds, CIty Charter School Obligated Group, Series 2016A: | ||||||
| 2,520 | 5.000%, 6/01/42 | 6/26 at 100.00 | N/R | 2,463,250 | ||
| 2,930 | 5.000%, 6/01/52 | 6/26 at 100.00 | N/R | 2,794,634 | ||
| 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- | 624,078 | ||
| California School Finance Authority, Charter School Revenue Bonds, Downtown College Prep - Obligated Group, Series 2016: | ||||||
| 1,500 | 4.750%, 6/01/36 | 6/26 at 100.00 | N/R | 1,452,060 | ||
| 1,180 | 5.000%, 6/01/46 | 6/26 at 100.00 | N/R | 1,155,409 | ||
| 2,500 | California School Finance Authority, Charter School Revenue Bonds, Rocketship Education - Obligated Group, Series 2016A, 5.000%, 6/01/46 | 6/25 at 100.00 | N/R | 2,443,425 | ||
| California School Finance Authority, Charter School Revenue Bonds, Rocketship Education Obligated Group, Series 2017A: | ||||||
| 275 | 5.125%, 6/01/47 | 6/26 at 100.00 | N/R | 274,015 | ||
| 1,300 | 5.250%, 6/01/52 | 6/26 at 100.00 | N/R | 1,293,682 | ||
| 1,220 | California School Finance Authority, Educational Facilities Revenue Bonds, Tri-Valley Learning Corporation, Series 2012A, 7.000%, 6/01/47 (4) | 6/20 at 102.00 | N/R | 610,073 | ||
| California School Finance Authority, Educational Facility Revenue Bonds, New Designs Charter School Project, Series 2014A: | ||||||
| 1,000 | 5.750%, 6/01/34 | 6/24 at 100.00 | BB+ | 1,073,390 | ||
| 1,500 | 6.000%, 6/01/44 | 6/24 at 100.00 | BB+ | 1,618,620 | ||
| California School Finance Authority, Educational Facility Revenue Bonds, Partnerships to Uplift Communities Valley Project, Series 2014: | ||||||
| 1,605 | 6.400%, 8/01/34 | 2/24 at 100.00 | BB- | 1,757,202 | ||
| 2,040 | 6.750%, 8/01/44 | 2/24 at 100.00 | BB- | 2,267,399 | ||
| California School finance Authority, School Facility Revenue Bonds, ICEF - View Park Elementary and Middle Schools, Series 2014A: | ||||||
| 575 | 5.625%, 10/01/34 | 10/24 at 100.00 | BB | 602,991 | ||
| 1,000 | 5.875%, 10/01/44 | 10/24 at 100.00 | BB | 1,057,570 | ||
| 520 | 6.000%, 10/01/49 | 10/24 at 100.00 | BB | 552,297 | ||
| 1,000 | California School Finance Authority, School Facility Revenue Bonds, Alliance for College-Ready Public Schools Project, Series 2015A, 4.125%, 7/01/35 | 7/25 at 100.00 | BBB | 899,020 | ||
| 1,015 | California School Finance Authority, School Facility Revenue Bonds, Alta Public Schools Project, Series 2014A, 6.500%, 11/01/34 | 11/24 at 100.00 | N/R | 1,088,253 | ||
| 600 | California School Finance Authority, School Facility Revenue Bonds, KIPP LA Projects, Series 2014A, 5.000%, 7/01/34 | 7/24 at 100.00 | BBB- | 626,094 | ||
| 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+ | 1,393,325 | ||
| 355 | California School Finance Authority, School Facility Revenue Bonds, Value Schools, Series 2016A, 6.000%, 7/01/51 | 7/26 at 100.00 | BB+ | 360,673 |
NUVEEN 31
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| $ 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 | $1,023,510 | ||
| 1,000 | California Statewide Communities Development Authority, Revenue Bonds, Buck Institute for Research on Aging, Tender Option Bond Trust 2015-XF1035, 19.103%, 11/15/49 – AGM Insured (IF) (5) | 11/24 at 100.00 | AA | 1,585,700 | ||
| 850 | California Statewide Communities Development Authority, Revenue Bonds, The Culinary Institute of America, Series 2016B, 5.000%, 7/01/46 | 7/26 at 100.00 | Baa2 | 914,294 | ||
| 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- | 1,172,590 | ||
| 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 | 1,161,610 | ||
| 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+ | 939,100 | ||
| 2,745 | California Statewide Community Development Authority, Revenue Bonds, Bentley School, Series 2010A, 7.000%, 7/01/40 | 7/20 at 101.00 | N/R | 3,116,563 | ||
| 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 | 1,016,050 | ||
| 350 | California Statewide Community Development Authority, Revenue Bonds, Montessori in Redlands School, Series 2007A, 5.125%, 12/01/36 | 4/17 at 100.00 | N/R | 350,231 | ||
| 200 | Hawaii Department of Budget and Finance, Private School Revenue Bonds, Montessori of Maui, Series 2007, 5.500%, 1/01/37 | 8/17 at 100.00 | N/R | 200,610 | ||
| 345 | Pingree Grove Village, Illinois, Charter School Revenue Bonds, Cambridge Lakes Learning Center, Series 2007, 6.000%, 6/01/36 | 6/18 at 100.00 | N/R | 343,403 | ||
| 1,250 | University of California, General Revenue Bonds, Tender Option Bond Trust 2016-XL0001, 16.320%, 5/15/39 (IF) (5) | 5/23 at 100.00 | AA | 1,925,050 | ||
| 84,845 | Total Education and Civic Organizations | 87,827,720 | ||||
| Health Care–14.8% | ||||||
| Antelope Valley Healthcare District, California, Revenue Bonds, Series 2016A: | ||||||
| 815 | 5.000%, 3/01/31 | 3/26 at 100.00 | Ba3 | 824,185 | ||
| 1,250 | 5.250%, 3/01/36 | 3/26 at 100.00 | Ba3 | 1,263,938 | ||
| 3,280 | 5.000%, 3/01/41 | 3/26 at 100.00 | Ba3 | 3,127,939 | ||
| 4,600 | 5.000%, 3/01/46 | 3/26 at 100.00 | Ba3 | 4,367,332 | ||
| 2,000 | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Refunding Series 2016B, 4.000%, 11/15/41 (UB) (5) | 11/26 at 100.00 | AA- | 2,019,180 | ||
| 8,750 | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Series 2016A, 5.000%, 11/15/46 (UB) (5) | 11/25 at 100.00 | AA- | 9,665,687 | ||
| 625 | California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System, Tender Option Bond Trust 2015-XF1002, 15.418%, 4/01/42 (IF) (5) | 4/22 at 100.00 | AA- | 849,525 | ||
| 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 | 1,344,684 | ||
| 7,800 | California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children's Hospital, Series 2016B, 5.000%, 8/15/55 (UB) (5) | 8/26 at 100.00 | AA | 8,622,354 |
32 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children's Hospital, Tender Option Bond Trust 2015-XF0152: | ||||||
| $ 260 | 16.128%, 8/15/43 (IF) (5) | 8/24 at 100.00 | AA | $364,387 | ||
| 695 | 16.151%, 8/15/51 (IF) (5) | 8/22 at 100.00 | AA- | 979,116 | ||
| 80 | California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Tender Option Bond Trust 2015-XF0120, 19.800%, 10/01/38 (IF) (5) | 10/24 at 100.00 | AA- | 129,036 | ||
| California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Tender Option Bond Trust 2015-XF1034: | ||||||
| 3,600 | 19.818%, 10/01/44 (IF) (5) | 10/24 at 100.00 | AA- | 5,360,760 | ||
| 795 | 19.748%, 10/01/44 (IF) (5) | 10/24 at 100.00 | AA- | 1,182,364 | ||
| California Health Facilities Financing Authority, Revenue Bonds, Stanford Hospitals and Clinics, Tender Option Bond Trust 2015-XF0131: | ||||||
| 200 | 19.925%, 8/15/51 (IF) (5) | 8/22 at 100.00 | AA- | 293,750 | ||
| 200 | 19.914%, 8/15/51 (IF) (5) | 8/22 at 100.00 | AA- | 293,698 | ||
| California Health Facilities Financing Authority, Revenue Bonds, Stanford Hospitals and Clinics, Tender Option Bond Trust 2016-XG0049: | ||||||
| 1,000 | 16.088%, 8/15/51 (IF) (5) | 8/22 at 100.00 | AA | 1,374,890 | ||
| 250 | 16.092%, 8/15/51 (IF) (5) | 8/22 at 100.00 | AA | 343,750 | ||
| 750 | California Municipal Finance Authority, Revenue Bonds, Eisenhower Medical Center, Series 2010A, 5.750%, 7/01/40 | 7/20 at 100.00 | Baa2 | 815,085 | ||
| California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 2015: | ||||||
| 200 | 5.000%, 11/01/35 | 11/24 at 100.00 | BBB- | 212,686 | ||
| 750 | 5.000%, 11/01/40 | 11/24 at 100.00 | BBB- | 792,000 | ||
| 1,250 | 5.000%, 11/01/44 | 11/24 at 100.00 | BBB- | 1,319,150 | ||
| 1,000 | California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 2017A, 5.250%, 11/01/47 | 11/26 at 100.00 | BBB- | 1,075,300 | ||
| 1,000 | California Municipal Finance Authority, Reveue Bonds, Community Medical Centers, Series 2015A, 5.000%, 2/01/46 | 2/25 at 100.00 | A- | 1,075,750 | ||
| 1,230 | California Municipal Finance Authority, Reveue Bonds, Community Medical Centers, Series 2017A, 5.000%, 2/01/47 | 2/27 at 100.00 | A- | 1,344,636 | ||
| 1,780 | California Public Finance Authority, Revenue Bonds, Henry Mayo Newhall Hospital, Series 2017, 5.000%, 10/15/47 | 10/26 at 100.00 | BBB- | 1,891,748 | ||
| 1,000 | California Statewide Communities Development Authority, California, Redlands Community Hospital, Revenue Bonds, Series 2016, 4.000%, 10/01/41 | 10/26 at 100.00 | A- | 996,860 | ||
| California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2014A: | ||||||
| 3,800 | 5.250%, 12/01/44 | 12/24 at 100.00 | BB+ | 4,015,194 | ||
| 9,600 | 5.500%, 12/01/54 | 12/24 at 100.00 | BB+ | 10,248,000 | ||
| California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2016A: | ||||||
| 415 | 5.000%, 12/01/46 | 6/26 at 100.00 | BB+ | 431,500 | ||
| 2,795 | 5.250%, 12/01/56 | 6/26 at 100.00 | BB+ | 2,947,775 |
NUVEEN 33
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| California Statewide Communities Development Authority, Revenue Bonds, Cottage Health System Obligated Group, Refunding Series 2015: | ||||||
| $ 200 | 5.000%, 11/01/32 | 11/24 at 100.00 | A+ | $225,916 | ||
| 200 | 5.000%, 11/01/33 | 11/24 at 100.00 | A+ | 225,042 | ||
| California Statewide Communities Development Authority, Revenue Bonds, Henry Mayo Newhall Memorial Hospital, Series 2014: | ||||||
| 2,540 | 5.000%, 10/01/34 – AGM Insured | 10/24 at 100.00 | AA | 2,802,687 | ||
| 1,625 | 5.250%, 10/01/43 – AGM Insured | 10/24 at 100.00 | AA | 1,799,395 | ||
| 9,000 | California Statewide Communities Development Authority, Revenue Bonds, John Muir Health, Series 2016A, 5.000%, 8/15/51 (UB) (5) | 8/26 at 100.00 | A+ | 9,767,340 | ||
| 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 | AA- | 252,803 | ||
| 5,750 | 5.000%, 8/15/47 | 8/17 at 100.00 | BBB+ | 5,799,795 | ||
| California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A: | ||||||
| 3,115 | 5.750%, 7/01/24 (6) | 5/17 at 100.00 | CCC | 3,067,216 | ||
| 2,055 | 5.750%, 7/01/30 (6) | 5/17 at 100.00 | CCC | 1,977,095 | ||
| 2,045 | 5.500%, 7/01/35 (6) | 5/17 at 100.00 | CCC | 1,921,380 | ||
| 9,280 | 5.500%, 7/01/39 (6) | 5/17 at 100.00 | CCC | 8,283,421 | ||
| 230 | California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005H, 5.250%, 7/01/25 (6) | 5/17 at 100.00 | CCC | 225,363 | ||
| 715 | California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 2015-XF2186, 17.235%, 11/15/48 (IF) (5) | 5/18 at 100.00 | AA- | 828,485 | ||
| 1,285 | California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Tender Option Bond Trust 2016-XF2351, 17.522%, 11/15/48 (IF) (5) | 5/18 at 100.00 | AA- | 1,488,955 | ||
| Marysville, California, Revenue Bonds, Fremont-Rideout Health Group, Series 2011: | ||||||
| 500 | 5.125%, 1/01/33 | 1/21 at 100.00 | BBB- | 497,285 | ||
| 650 | 5.250%, 1/01/42 | 1/21 at 100.00 | BBB- | 645,489 | ||
| 1,060 | Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 7.000%, 11/01/35 | 11/20 at 100.00 | BB | 1,096,665 | ||
| 500 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41 | 11/20 at 100.00 | BBB- | 544,400 | ||
| 5,500 | Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical Center, Refunding Series 2007A, 5.000%, 7/01/38 | 7/17 at 100.00 | Baa2 | 5,539,765 | ||
| San Buenaventura, California, Revenue Bonds, Community Memorial Health System, Series 2011: | ||||||
| 1,000 | 8.000%, 12/01/26 | 12/21 at 100.00 | BB+ | 1,241,000 | ||
| 600 | 7.500%, 12/01/41 | 12/21 at 100.00 | BB+ | 700,020 | ||
| 2,500 | Tulare Local Health Care District, California, Revenue Bonds, Series 2007, 5.200%, 11/01/32 | 11/17 at 100.00 | BB- | 2,378,325 | ||
| 150 | Washington Township Health Care District, California, Revenue Bonds, Refunding Series 2007A, 5.000%, 7/01/32 | 7/17 at 100.00 | Baa1 | 151,034 |
34 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| $ 60 | Weatherford Hospital Authority, Oklahoma, Sales Tax Revenue Bonds, Series 2006, 6.000%, 5/01/31 | 5/19 at 100.00 | N/R | $ 61,834 | ||
| 113,800 | Total Health Care | 121,092,969 | ||||
| Housing/Multifamily–3.1% | ||||||
| 2,000 | California Housing Finance Agency, Multifamily Housing Revenue Bonds, Series 2014A-III, 4.600%, 8/01/39 | 2/24 at 100.00 | AA+ | 2,106,520 | ||
| 1,270 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Affordable Housing Inc Projects, Series 2014B, 5.875%, 8/15/49 | 8/24 at 100.00 | N/R | 1,385,671 | ||
| 85 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45 | 8/20 at 100.00 | BBB | 92,576 | ||
| 1,385 | 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 | 1,520,301 | ||
| 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 | 545,635 | ||
| 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 | 2,284,260 | ||
| California Municipal Finance Authority, Mobile Home Park Senior Revenue Bonds, Caritas Affordable Housing, Inc. Projects, Series 2014A: | ||||||
| 1,515 | 5.250%, 8/15/39 | 8/24 at 100.00 | BBB | 1,666,667 | ||
| 575 | 5.250%, 8/15/49 | 8/24 at 100.00 | BBB | 629,033 | ||
| 350 | California Municipal Finance Authority, Student Housing Revenue Bonds, Bowles Hall Foundation, Series 2015A, 5.000%, 6/01/35 | 6/25 at 100.00 | Baa3 | 372,494 | ||
| 2,090 | California Statewide Communities Development Authority, Revenue Bonds, Lancer Educational Student Housing Project, Refunding Series 2016A, 5.000%, 6/01/46 | 6/26 at 100.00 | N/R | 2,046,444 | ||
| 330 | California Statewide Community Development Authority, Multifamily Housing Revenue Bonds, Magnolia City Lights, Series 1999X, 6.650%, 7/01/39 (Alternative Minimum Tax) | 5/17 at 100.00 | N/R | 330,304 | ||
| Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Augusta Communities Mobile Home Park, Series 2012A: | ||||||
| 1,000 | 5.000%, 8/15/36 | 8/26 at 100.00 | A | 1,115,680 | ||
| 740 | 5.000%, 5/15/39 | 5/22 at 100.00 | A+ | 782,121 | ||
| 1,010 | 5.000%, 5/15/47 | 5/22 at 100.00 | A+ | 1,063,085 | ||
| 1,000 | Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Palomar Estates West, Refunding Series 2015, 5.000%, 9/15/36 | 9/25 at 100.00 | N/R | 1,047,420 | ||
| 2,570 | Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Santa Rosa Leisure Mobile Home Park, Refunding Series 2016, 5.000%, 8/15/46 | 8/26 at 100.00 | A | 2,836,843 | ||
| 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 | 1,418,886 | ||
| 315 | La Verne, California, Mobile Home Park Revenue Bonds, Copacabana Mobile Home Park, Refunding Series 2014, 5.000%, 6/15/49 | 6/24 at 100.00 | A | 339,765 | ||
| 2,110 | Palmdale Housing Authority, California, Multifamily Housing Revenue Bonds, Impression, La Quinta, Park Vista & Summerwood Apartments, Series 2015, 5.250%, 6/01/45 | 6/25 at 100.00 | N/R | 2,133,780 | ||
| 465 | Santa Clara County Housing Authority, California, Multifamily Housing Revenue Bonds, Blossom River Project, Series 1998A, 6.500%, 9/01/39 (Alternative Minimum Tax) | 5/17 at 100.00 | N/R | 465,391 | ||
| 542 | Ventura County Area Housing Authority, California, Mira Vista Senior Apartments Project, Junior Subordinate Series 2006C, 6.500%, 12/01/39 (Alternative Minimum Tax) | 12/17 at 100.00 | N/R | 495,063 |
NUVEEN 35
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Housing/Multifamily (continued) | ||||||
| $ 480 | Wilson County Health and Educational Facilities Board, Tennessee, Senior Living Revenue Bonds, Rutland Place Inc. Project, Series 2015A, 5.500%, 1/01/46 | No Opt. Call | N/R | $ 421,152 | ||
| 23,652 | Total Housing/Multifamily | 25,099,091 | ||||
| Housing/Single Family–0.0% | ||||||
| 250 | California Housing Finance Agency, California, Home Mortgage Revenue Bonds, Series 2007E, 4.800%, 8/01/37 (Alternative Minimum Tax) | 5/17 at 100.00 | AA- | 250,220 | ||
| Industrials–0.4% | ||||||
| 3,000 | California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Aemerge Redpak Services, LLC., Series 2016, 7.000%, 12/01/27 (Alternative Minimum Tax) | 12/23 at 102.00 | N/R | 2,880,720 | ||
| 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 | 8 | ||
| 3,750 | Total Industrials | 2,880,728 | ||||
| Long-Term Care–1.2% | ||||||
| 3,000 | ABAG Finance Authority for Nonprofit Corporations, California, Revenue Bonds, Episcopal Senior Communities, Series 2012A, 5.000%, 7/01/47 | No Opt. Call | BBB+ | 3,158,850 | ||
| 3,700 | California Statewide Communities Development Authority, Revenue Bonds, 899 Charleston Project, Refunding Series 2014A, 5.250%, 11/01/44 | 11/24 at 100.00 | N/R | 3,756,906 | ||
| 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+ | 567,122 | ||
| 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 | 1,056,800 | ||
| 450 | California Statewide Community Development Authority, Revenue Bonds, Los Angeles Jewish Home for the Aging-Fountainview Gonda, Series 2014D, 4.750%, 8/01/20 | 11/17 at 100.00 | N/R | 450,198 | ||
| 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 | 1,139,320 | ||
| 9,670 | Total Long-Term Care | 10,129,196 | ||||
| Tax Obligation/General–7.1% | ||||||
| 1,000 | Aromas-San Juan Unified School District, San Benito, Santa Cruz and Monterey Counties, California, General Obligation Bonds, Series 2013B, 0.000%, 8/01/52 – AGM Insured | 8/37 at 100.00 | AA | 527,970 | ||
| Bakersfield City School District, Kern County, California, General Obligation Bonds, Series 2012C: | ||||||
| 1,700 | 0.000%, 5/01/37 (7) | No Opt. Call | Aa2 | 908,038 | ||
| 6,925 | 0.000%, 5/01/42 (7) | 5/40 at 100.00 | Aa2 | 3,859,095 | ||
| 5,500 | 0.000%, 5/01/47 (7) | 5/40 at 100.00 | Aa2 | 3,049,145 | ||
| 1,250 | California State, General Obligation Bonds, Tender Option Bond Trust 2015-XF1039, 16.080%, 10/01/44 (IF) (5) | 10/24 at 100.00 | AA- | 1,909,800 | ||
| 1,630 | California State, General Obligation Bonds, Various Purpose Series 2013, 5.000%, 4/01/43 | 4/23 at 100.00 | AA- | 1,824,671 | ||
| 1,500 | California State, General Obligation Bonds, Various Purpose Series 2015, 5.000%, 3/01/45 (UB) (5) | 3/25 at 100.00 | AA- | 1,684,905 | ||
| 1,250 | California State, General Obligation Bonds, Various Purpose, Tender Option Bond Trust 2015-XF1037, 16.031%, 8/01/35 (IF) (5) | 8/24 at 100.00 | AA- | 1,936,050 |
36 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/General (continued) | ||||||
| California State, General Obligation Bonds, Various Purpose, Tender Option Bond Trust 2015-XF1041: | ||||||
| $ 750 | 12.096%, 11/01/44 (IF) (5) | 11/24 at 100.00 | AA- | $819,600 | ||
| 545 | 11.612%, 11/01/44 (IF) (5) | 11/24 at 100.00 | AA- | 595,576 | ||
| 1,250 | 11.612%, 11/01/44 (IF) (5) | 11/24 at 100.00 | AA- | 1,366,000 | ||
| 1,005 | 11.599%, 11/01/44 (IF) (5) | 11/24 at 100.00 | AA- | 1,098,143 | ||
| 4,610 | Central Unified School District, Fresno County, California, General Obligation Bonds, Election 2008 Series 2013B, 0.000%, 8/01/37 – AGM Insured | 8/22 at 44.31 | AA | 1,706,852 | ||
| 11,090 | Cupertino Union School District, Santa Clara County, California, General Obligation Bonds, Election 2012, Series 2016C, 4.000%, 8/01/40 (UB) (5) | 8/26 at 100.00 | AA+ | 11,558,885 | ||
| 1,115 | Denair Unified School District, Stanislaus County, California, General Obligation Bonds, Series 2002A, 0.000%, 8/01/26 – FGIC Insured | No Opt. Call | AA- | 805,353 | ||
| 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 | AA- | 817,580 | ||
| 1,000 | Montebello Unified School District, Los Angeles County, California, General Obligation Bonds, Election 1998 Series 2004, 0.000%, 8/01/26 – FGIC Insured | No Opt. Call | AA- | 729,360 | ||
| 650 | Newman-Crows Landing Unified School District, Stanislaus County, California, General Obligation Bonds, 2008 Election, Series 2010B, 0.000%, 8/01/49 – AGM Insured | No Opt. Call | AA | 411,327 | ||
| 2,250 | Orland Joint Unified School District, Glenn and Tehama Counties, California, General Obligation Bonds, 2008 Election, Series 2012B, 0.000%, 8/01/51 – AGM Insured (8) | 8/37 at 100.00 | AA | 1,242,675 | ||
| 970 | Orland Joint Unified School District, Glenn and Tehama Counties, California, General Obligation Bonds, 2008 Election, Series 2013C, 0.000%, 8/01/43 – BAM Insured | 8/38 at 100.00 | AA | 506,738 | ||
| 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 | A1 | 650,930 | ||
| 10,000 | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Election of 2012 Series 2013C, 4.000%, 7/01/42 (UB) | 7/23 at 100.00 | Aa2 | 10,173,500 | ||
| 1,980 | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Tender Option Bond 2016-XF2355, 12.490%, 7/01/38 (IF) (5) | 7/23 at 100.00 | AA- | 2,126,362 | ||
| 7,655 | Savanna Elementary School District, Orange County, California, General Obligation Bonds, Election 2008 Series 2012B, 0.000%, 2/01/52 – AGM Insured (7) | No Opt. Call | AA | 4,741,277 | ||
| 5,730 | Southwestern Community College District, San Diego County, California, General Obligation Bonds, Election of 2008, Series 2011C, 0.000%, 8/01/46 | No Opt. Call | Aa2 | 1,550,939 | ||
| 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 | 1,278,287 | ||
| 75,790 | Total Tax Obligation/General | 57,879,058 | ||||
| Tax Obligation/Limited–39.3% | ||||||
| 1,000 | Adelanto Community Facilities District Number 2006-2, San Bernadino County, California, Special Tax Bonds, Series 2015A, 5.000%, 9/01/45 | 9/25 at 100.00 | N/R | 1,024,360 | ||
| 1,650 | Alameda Community Facilities District No. 13-1, California, Alameda Landing Public Improvements, Special Tax Bonds, Series 2016, 5.000%, 9/01/46 | 9/24 at 102.00 | N/R | 1,753,933 | ||
| Anaheim Public Financing Authority, California, Lease Revenue Bonds, Public Improvement Project, Series 1997C: | ||||||
| 330 | 0.000%, 9/01/28 – AGM Insured | No Opt. Call | AA | 216,774 | ||
| 240 | 0.000%, 9/01/30 – AGM Insured | No Opt. Call | AA | 144,240 | ||
| 4,475 | 0.000%, 9/01/34 – AGM Insured | No Opt. Call | AA | 2,204,474 | ||
| 4,305 | 0.000%, 9/01/35 – AGM Insured | No Opt. Call | AA | 2,000,103 |
NUVEEN 37
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 435 | Arvin Community Redevelopment Agency, California, Tax Allocation Bonds, Arvin Redevelopment Project, Series 2005, 5.125%, 9/01/35 | 5/17 at 100.00 | N/R | $435,300 | ||
| 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 | 1,004,230 | ||
| 940 | Azusa, California, Special Tax Bonds, Community Facilities District 2005-1 Rosedale Improvement Area 1, Series 2007, 5.000%, 9/01/37 | 9/17 at 100.00 | N/R | 944,333 | ||
| 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 | 1,089,141 | ||
| 1,875 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 19A, Series 2015B, 5.000%, 9/01/35 | 9/25 at 100.00 | N/R | 2,002,125 | ||
| 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 | 1,095,030 | ||
| 2,600 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 7A-1, Series 2015A, 5.000%, 9/01/45 | 9/25 at 100.00 | N/R | 2,751,320 | ||
| 1,000 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 8C, Series 2007E, 6.250%, 9/01/38 | 5/17 at 100.00 | N/R | 1,001,850 | ||
| Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 8D & 17B, Series 2009B: | ||||||
| 60 | 8.875%, 9/01/34 | 5/17 at 100.00 | N/R | 60,241 | ||
| 125 | 8.625%, 9/01/39 | 5/17 at 100.00 | N/R | 125,465 | ||
| 1,900 | Blythe Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Redevelopment Project 1, Refunding Series 2015, 5.000%, 5/01/38 | 11/25 at 100.00 | N/R | 1,964,733 | ||
| 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- | 947,670 | ||
| 2,300 | 0.000%, 8/01/29 – AMBAC Insured | No Opt. Call | AA- | 1,382,599 | ||
| 6,710 | 0.000%, 8/01/30 – AMBAC Insured | No Opt. Call | AA- | 3,859,458 | ||
| 4,700 | Brentwood Infrastructure Financing Authority, California, Infrastructure Revenue Bonds, Refunding Subordinated Series 2014B, 5.000%, 9/02/36 | 9/24 at 100.00 | N/R | 5,076,141 | ||
| 5,600 | California Community College Financing Authority, Lease Revenue Bonds, Refunding Series 2003, 0.000%, 6/01/33 – AMBAC Insured | No Opt. Call | A+ | 2,503,424 | ||
| 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 | A+ | 2,244,120 | ||
| 2,000 | California Statewide Communities Development Authority, Lease Revenue Bonds, Community Center Project, Series 2014, 5.000%, 10/01/34 – AGM Insured | 10/24 at 100.00 | AA | 2,233,740 | ||
| 2,500 | California Statewide Communities Development Authority, Special Tax Bonds, Community Facilities District 15-2 Rio Bravo, Series 2015A, 5.625%, 9/01/45 | 9/25 at 100.00 | N/R | 2,477,200 | ||
| 1,000 | California Statewide Communities Development Authority, Special Tax Bonds, Community Facilities District 2007-1 Orinda Wilder Project, Refunding Series 2015, 5.000%, 9/01/37 | No Opt. Call | N/R | 1,067,050 | ||
| 1,000 | California Statewide Communities Development Authority, Special Tax Bonds, Community Facilities District 2012-01, Fancher Creek, Series 2013A, 5.700%, 9/01/43 | 9/23 at 100.00 | N/R | 1,075,620 | ||
| California Statewide Communities Development Authority, Special Tax Bonds, Community Facilities District 2012-02, Manteca Lifestyle Center, Series 2013A: | ||||||
| 1,000 | 5.000%, 9/01/33 | No Opt. Call | N/R | 1,059,150 | ||
| 2,000 | 5.125%, 9/01/42 | No Opt. Call | N/R | 2,110,800 |
38 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| California Statewide Communities Development Authority, Statewide Community Infrastructure Program Revenue Bonds, Refunding Series 2015R-1: | ||||||
| $ 3,650 | 5.000%, 9/02/35 | 9/25 at 100.00 | N/R | $3,829,543 | ||
| 1,200 | 5.000%, 9/02/40 | No Opt. Call | N/R | 1,250,064 | ||
| 1,020 | 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 | 1,076,110 | ||
| 2,275 | California Statewide Communities Development Authority, Statewide Community Infrastructure Program Revenue Bonds, Series 2014A, 5.000%, 9/02/43 | 9/22 at 100.00 | N/R | 2,344,888 | ||
| 2,060 | California Statewide Communities Development Authority, Statewide Community Infrastructure Program Revenue Bonds, Series 2014B, 5.000%, 9/02/44 | 9/24 at 100.00 | N/R | 2,141,432 | ||
| California Statewide Communities Development Authority, Statewide Community Infrastructure Program Revenue Bonds, Series 2016A: | ||||||
| 1,030 | 5.000%, 9/02/36 | 9/26 at 100.00 | N/R | 1,083,601 | ||
| 2,250 | 5.000%, 9/02/45 | 9/26 at 100.00 | N/R | 2,327,445 | ||
| California Statewide Communities Development Authority, Statewide Community Infrastructure Program Revenue Bonds, Series 2016B: | ||||||
| 1,690 | 5.000%, 9/02/36 | 9/26 at 100.00 | N/R | 1,749,927 | ||
| 3,310 | 5.000%, 9/02/46 | 9/26 at 100.00 | N/R | 3,398,211 | ||
| 650 | Cathedral City Public Financing Authority, California, Tax Allocation Bonds, Merged Redevelopment Project Area, Series 2007A, 4.500%, 8/01/35 – AMBAC Insured | 8/17 at 100.00 | BBB+ | 650,637 | ||
| 850 | Cathedral City Public Financing Authority, California, Tax Allocation Bonds, Merged Redevelopment Project Area, Series 2007C, 4.500%, 8/01/35 | 5/17 at 100.00 | BBB- | 789,506 | ||
| 315 | Chino Public Financing Authority, California, Revenue Bonds, Refunding Series 2012, 5.000%, 9/01/38 | 9/22 at 100.00 | N/R | 330,911 | ||
| 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 | 1,039,850 | ||
| 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 | 529,495 | ||
| Compton Public Finance Authority, California, Lease Revenue Bonds, Refunding & Various Capital Projects, Series 2008: | ||||||
| 590 | 5.000%, 9/01/22 – AMBAC Insured | 9/18 at 100.00 | N/R | 615,270 | ||
| 500 | 5.250%, 9/01/27 – AMBAC Insured | 9/18 at 100.00 | N/R | 522,470 | ||
| 210 | 5.000%, 9/01/32 – AMBAC Insured | 9/18 at 100.00 | N/R | 216,777 | ||
| 670 | Corona, California, Special Tax Bonds, Community Facilities District 2002-1 Dos Lagos Improvement Area 1, Refunding Series 2017, 5.000%, 9/01/37 | 9/24 at 103.00 | N/R | 713,396 | ||
| 855 | Corona, California, Special Tax Bonds, Community Facilities District 2002-1 Dos Lagos, Refunding Series 2017, 5.000%, 9/01/34 | 9/24 at 103.00 | N/R | 918,142 | ||
| Corona-Norco Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 05-1, Series 2016: | ||||||
| 500 | 5.000%, 9/01/36 | 9/26 at 100.00 | N/R | 536,765 | ||
| 1,000 | 4.000%, 9/01/45 | 9/26 at 100.00 | N/R | 947,830 | ||
| Dana Point, California, Special Tax Bonds, Community Facilities District No. 2006-1, Series 2014: | ||||||
| 250 | 5.000%, 9/01/38 | 9/23 at 100.00 | N/R | 263,760 | ||
| 1,250 | 5.000%, 9/01/45 | 9/23 at 100.00 | N/R | 1,310,050 |
NUVEEN 39
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 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+ | $1,200,900 | ||
| Desert Hot Springs Redevelopment Agency, California, Tax Allocation Bonds, Merged Redevelopment Project, Series 2008A-2: | ||||||
| 1,610 | 5.000%, 9/01/23 | 9/18 at 100.00 | B- | 1,437,859 | ||
| 2,010 | 5.600%, 9/01/38 | 9/18 at 100.00 | B- | 1,665,245 | ||
| 1,800 | Eastern Municipal Water District, California, Special Tax Bonds, Community Facilities District 2001-01 French Valley Improvement Area A, Series 2015, 5.000%, 9/01/36 | 9/25 at 100.00 | N/R | 1,955,700 | ||
| 250 | El Dorado County, California, Special Tax Bonds, Community Facilities District 2005-2, Series 2006, 5.100%, 9/01/36 | 9/17 at 100.00 | N/R | 251,303 | ||
| 430 | 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 | 447,918 | ||
| Fillmore, California, Special Tax Bonds, Community Facilities District 5, Improvement Area, Series 2015A: | ||||||
| 1,500 | 5.000%, 9/01/40 | 9/23 at 102.00 | N/R | 1,591,710 | ||
| 2,530 | 5.000%, 9/01/45 | 9/23 at 102.00 | N/R | 2,677,246 | ||
| 1,350 | Fontana, California, Community Facilities District No. 22, Special Tax Refunding Bonds, Sierra Hills South, Series 2014, 5.000%, 9/01/34 | No Opt. Call | N/R | 1,435,914 | ||
| 1,000 | Fontana, California, Special Tax Bonds, Community Facilities District 31 Citrus Heights North, Series 2006, 5.000%, 9/01/36 | 9/17 at 100.00 | N/R | 1,005,430 | ||
| 2,305 | Fullerton, California, Special Tax Bonds, Community Facilities District 2 Amerige Heights, Series 2014, 5.000%, 9/01/44 | 9/23 at 100.00 | N/R | 2,413,058 | ||
| Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Refunding Series 2015A: | ||||||
| 5,000 | 5.000%, 6/01/40 (UB) (5) | 6/25 at 100.00 | A+ | 5,541,150 | ||
| 2,000 | 5.000%, 6/01/45 (UB) (5) | 6/25 at 100.00 | A+ | 2,208,920 | ||
| 3,750 | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Tender Option Bond Trust 2015-XF1038, 15.268%, 6/01/45 (IF) (5) | 6/25 at 100.00 | A+ | 5,316,787 | ||
| 500 | Government of Guam, Business Privilege Tax Bonds, Series 2012B-1, 5.000%, 1/01/42 | 1/22 at 100.00 | A | 514,025 | ||
| Guam Government Department of Education, Certificates of Participation, John F. Kennedy High School Project, Series 2010A: | ||||||
| 880 | 6.625%, 12/01/30 | 12/20 at 100.00 | B+ | 925,593 | ||
| 1,175 | 6.875%, 12/01/40 | 12/20 at 100.00 | B+ | 1,244,572 | ||
| Hercules Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2005: | ||||||
| 1,000 | 5.000%, 8/01/25 – AMBAC Insured | 5/17 at 100.00 | N/R | 1,002,760 | ||
| 1,000 | 5.000%, 8/01/35 – AMBAC Insured | 5/17 at 100.00 | N/R | 1,002,040 | ||
| Hercules Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series 2007A: | ||||||
| 365 | 4.625%, 8/01/37 – AMBAC Insured | 2/18 at 100.00 | N/R | 365,398 | ||
| 745 | 4.750%, 8/01/42 – AMBAC Insured | 2/18 at 100.00 | N/R | 745,976 | ||
| 150 | 5.000%, 8/01/42 – AMBAC Insured | 2/18 at 100.00 | N/R | 150,330 |
40 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| 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 | $1,270,688 | ||
| 1,000 | 5.500%, 9/01/27 – SYNCORA GTY Insured | No Opt. Call | N/R | 1,013,950 | ||
| 1,105 | 5.000%, 9/01/31 – SYNCORA GTY Insured | 9/17 at 100.00 | N/R | 1,112,978 | ||
| 1,920 | 5.000%, 9/01/37 – SYNCORA GTY Insured | 9/17 at 100.00 | N/R | 1,928,947 | ||
| 3,935 | Hesperia Unified School District, San Bernardino County, California, Certificates of Participation, Refunding Series 2016, 5.000%, 2/01/41 – BAM Insured | 2/26 at 100.00 | AA | 4,403,226 | ||
| 1,990 | Hesperia, California, Special Tax Bonds, Community Facilities District 2005-1 Belgate Development Restructuring Series 2014, 5.000%, 9/01/35 | 9/24 at 100.00 | N/R | 2,111,330 | ||
| 1,035 | Imperial, California, Special Tax Bonds, Community Facilities District 2005-1 Springfield, Series 2015A, 5.000%, 9/01/36 | No Opt. Call | N/R | 1,105,173 | ||
| 500 | Indio Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Subordinate Lien Refunding Series 2008A, 5.250%, 8/15/28 | 8/18 at 100.00 | BBB- | 526,965 | ||
| 625 | Indio, California, Special Tax Bonds, Community Facilities District 2004-3 Terra Lago, Improvement Area 1, Series 2015, 5.000%, 9/01/35 | 9/25 at 100.00 | N/R | 667,375 | ||
| Inglewood Public Financing Authority, California, Lease Revenue Bonds, Refunding Series 2012: | ||||||
| 2,530 | 0.000%, 8/01/23 | No Opt. Call | A2 | 2,074,119 | ||
| 1,600 | 0.000%, 8/01/25 | No Opt. Call | A2 | 1,129,936 | ||
| 1,050 | 0.000%, 8/01/28 | 8/22 at 66.37 | A2 | 589,964 | ||
| 2,430 | 0.000%, 8/01/33 | No Opt. Call | A2 | 920,071 | ||
| 1,650 | 0.000%, 8/01/35 | No Opt. Call | A2 | 531,531 | ||
| 795 | Irvine, California, Limited Obligation Improvement Bonds, Reassessment District 15-2, Series 2015, 5.000%, 9/02/42 | 9/25 at 100.00 | N/R | 843,034 | ||
| 745 | Irvine, California, Special Tax Bonds, Community Facilities District 2004-1 Central Park, Series 2015A, 5.000%, 9/01/45 | 9/25 at 100.00 | N/R | 790,005 | ||
| 500 | Irvine, California, Special Tax Bonds, Community Facilities District 2013-3 Great Park, Improvement Area 1, Refunding Series 2014, 5.000%, 9/01/39 | 9/24 at 100.00 | N/R | 529,160 | ||
| Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 37 Eastvale Improveement Area 1,Series 2016: | ||||||
| 600 | 3.125%, 9/01/40 | 9/21 at 103.00 | N/R | 487,356 | ||
| 500 | 3.250%, 9/01/46 | 9/21 at 103.00 | N/R | 403,370 | ||
| Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 37 Eastvale Improveement Area 2,Series 2016A: | ||||||
| 500 | 3.125%, 9/01/40 | 9/21 at 103.00 | N/R | 406,130 | ||
| 700 | 3.250%, 9/01/46 | 9/21 at 103.00 | N/R | 564,718 | ||
| 1,400 | Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 43, Series 2016, 5.000%, 9/01/45 | 9/26 at 100.00 | N/R | 1,489,306 | ||
| 1,000 | Jurupa Public Financing Authority, California, Special Tax Revenue Bonds, Series 2015A, 5.000%, 9/01/43 | 9/25 at 100.00 | BBB+ | 1,084,270 | ||
| 3,380 | Jurupa Unified School District, California, Special Tax Bonds, Community Facilities District 9, Series 2015A, 5.000%, 9/01/45 | 9/25 at 100.00 | N/R | 3,576,716 | ||
| 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 | 350,236 |
NUVEEN 41
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 1,400 | Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Refunding Series 2015, 5.000%, 9/01/40 | 9/25 at 100.00 | N/R | $1,477,714 | ||
| 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 | 1,227,869 | ||
| 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 | 3,137,940 | ||
| 2,000 | Lammersville School District, California, Special Tax Refunding Bonds, Community Facilities District 2002 Mountain House, Series 2012, 5.375%, 9/01/32 | 9/22 at 100.00 | N/R | 2,082,800 | ||
| 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 | 789,470 | ||
| 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 | 5/17 at 100.00 | AA- | 502,265 | ||
| 1,000 | 4.750%, 8/01/33 – NPFG Insured | 8/17 at 100.00 | AA- | 1,002,760 | ||
| 1,000 | Lathrop, California, Limited Obligation Improvement Bonds, Crossroads Assessment District, Series 2015, 5.000%, 9/02/40 | 9/25 at 100.00 | N/R | 993,160 | ||
| Lee Lake Public Financing Authority, California, Junior Lien Revenue Bonds, Series 2013B: | ||||||
| 795 | 5.125%, 9/01/28 | 9/23 at 100.00 | N/R | 865,906 | ||
| 395 | 5.250%, 9/01/32 | 9/23 at 100.00 | N/R | 425,861 | ||
| Lincoln, California, Special Tax Bonds, Community Facilities District 2005-1 Sorrento Project, Series 2014A: | ||||||
| 600 | 5.000%, 9/01/34 | 9/24 at 100.00 | N/R | 638,184 | ||
| 935 | 5.000%, 9/01/39 | 9/24 at 100.00 | N/R | 987,051 | ||
| 1,825 | 5.000%, 9/01/43 | 9/24 at 100.00 | N/R | 1,904,241 | ||
| 1,545 | Long Beach, California, Marina Revenue Bonds, Alamitos Bay Marina Project, Series 2015, 5.000%, 5/15/45 | 5/25 at 100.00 | BBB | 1,658,882 | ||
| 2,615 | Los Alamitos Unified School District, Orange County, California, Certificates of Participation, Series 2012, 0.000%, 8/01/42 (7) | 8/29 at 100.00 | AA- | 2,193,593 | ||
| 1,715 | Lower Magnolia Green Community Development Authority, Virginia, Special Assessment Bonds, Series 2015, 5.000%, 3/01/45 | 3/25 at 100.00 | N/R | 1,715,772 | ||
| 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- | 1,539,550 | ||
| 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 | AA- | 977,677 | ||
| Menifee Union School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2016A: | ||||||
| 735 | 5.000%, 9/01/36 – BAM Insured | 9/25 at 100.00 | AA | 822,980 | ||
| 1,100 | 5.000%, 9/01/38 – BAM Insured | 9/25 at 100.00 | AA | 1,228,227 | ||
| Menifee Union School District, Riverside County, California, Special Tax Bonds, Community Facilities District 2006-1, Series 2014: | ||||||
| 500 | 4.125%, 9/01/39 | 9/17 at 100.00 | N/R | 493,495 | ||
| 500 | 4.250%, 9/01/44 | 9/44 at 100.00 | N/R | 500,635 |
42 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| Menifee Union School District, Riverside County, California, Special Tax Bonds, Community Facilties District 2011-1, Improvement Area 1, Series 2015: | ||||||
| $ 2,000 | 5.000%, 9/01/39 | No Opt. Call | N/R | $2,111,340 | ||
| 500 | 4.250%, 9/01/44 | 9/24 at 100.00 | N/R | 500,635 | ||
| 1,000 | 5.000%, 9/01/44 | No Opt. Call | N/R | 1,053,030 | ||
| Merced Redevelopment Agency, California, Tax Allocation Bonds, Merced Redevelopment Project 2, Series 2003A: | ||||||
| 1,890 | 0.000%, 12/01/21 – AMBAC Insured | No Opt. Call | N/R | 1,556,982 | ||
| 1,055 | 0.000%, 12/01/23 – AMBAC Insured | No Opt. Call | N/R | 758,102 | ||
| 1,080 | Merced, California, Community Facilities District 2005-1, Improvement Area 1 Special Tax Bonds, Bellevue Ranch West, Series 2006, 5.300%, 9/01/36 | 9/17 at 100.00 | N/R | 1,002,424 | ||
| 945 | 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 | 1,008,296 | ||
| 65 | Moreno Valley Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 2004-5, Series 2006, 5.200%, 9/01/36 | 9/17 at 100.00 | N/R | 65,417 | ||
| 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 | 1,004,660 | ||
| 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 | 1,387,486 | ||
| 825 | Murrieta, California, Special Tax Bonds, Community Facilities District 2005-5 Golden City Improvement Area A, Series 2017, 5.000%, 9/01/46 (WI/DD, Settling 3/08/17) | 9/27 at 100.00 | N/R | 871,167 | ||
| 415 | Novato Redevelopment Agency, California, Tax Allocation Bonds, Hamilton Field Redevelopment Project, Series 2011, 6.750%, 9/01/40 | 9/21 at 100.00 | BBB+ | 487,820 | ||
| 1,265 | Oakdale Public Financing Authority, California, Revenue Bonds, Refunding Series 2015, 5.000%, 9/01/35 | 9/25 at 100.00 | N/R | 1,360,811 | ||
| 2,500 | Oakley Public Financing Authority, Contra Costa County, California, Revenue Bonds, Refundinf Series 2014, 5.000%, 9/02/36 – BAM Insured | 9/24 at 100.00 | AA | 2,789,500 | ||
| 1,250 | Oceanside, California, Special Tax Bonds, Community Facilities District 2006-1, Pacific Coast Business Park, Series 2017, 5.000%, 9/01/38 | 9/25 at 102.00 | N/R | 1,334,250 | ||
| Ontario, California, Special Tax Bonds, Community Facilities District 24 Park Place Facilities Phase I, Series 2016: | ||||||
| 1,000 | 5.000%, 9/01/41 | 9/26 at 100.00 | N/R | 1,066,220 | ||
| 1,300 | 5.000%, 9/01/46 | 9/26 at 100.00 | N/R | 1,381,887 | ||
| 2,000 | Orange County, California, Special Tax Bonds, Community Facilities District 2015-1 Esencia Village, Series 2015A, 5.250%, 8/15/45 | 8/25 at 100.00 | N/R | 2,157,120 | ||
| 3,530 | Palm Desert, California, Limited Obligation Improvement Bonds, Section 29 Assessment District 2004-02, Series 2007, 5.100%, 9/02/37 | 9/17 at 101.00 | N/R | 3,557,640 | ||
| Palm Desert, California, Special Tax Bonds, Community Facilities District 2005-1 University Park, Series 2006: | ||||||
| 235 | 5.000%, 9/01/21 | 9/17 at 100.00 | N/R | 238,353 | ||
| 285 | 5.300%, 9/01/32 | 9/17 at 100.00 | N/R | 287,012 | ||
| 740 | 5.450%, 9/01/32 | 9/17 at 100.00 | N/R | 745,772 | ||
| 1,095 | 5.500%, 9/01/36 | 9/17 at 100.00 | N/R | 1,102,884 | ||
| 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 | 5/17 at 100.00 | CCC+ | 1,505,728 |
NUVEEN 43
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 1,395 | Palm Drive Health Care District, Sonoma County, California, Parcel Tax Revenue Bonds, Series 2005, 5.250%, 4/01/30 | 5/17 at 100.00 | CCC+ | $1,292,021 | ||
| 500 | Palm Springs Financing Authority, California, Lease Revenue Bonds, Downtown Revitalization Project, Series 2012B, 5.000%, 6/01/35 | No Opt. Call | AA | 553,415 | ||
| 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 | 671,986 | ||
| 1,230 | Palmdale, California, Special Tax Bonds, Community Facilities District 2005-1, Series 2005, 6.750%, 9/01/35 | 5/17 at 100.00 | N/R | 1,153,383 | ||
| 985 | Patterson Public Financing Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A, 5.750%, 9/01/39 | 9/23 at 100.00 | N/R | 1,051,123 | ||
| 985 | Perris Joint Powers Authority, California, Local Agency Revenue Bonds, Community Facilities District 2001-1 May Farms Improvement Area 6 &7, Refunding Series 2014E, 4.250%, 9/01/38 | 9/24 at 100.00 | N/R | 990,664 | ||
| 1,110 | Perris Joint Powers Authority, California, Local Agency Revenue Bonds, Community Facilities District 2006-1, Meritage Homes, Refunding Series 2014B, 5.000%, 9/01/38 | 9/23 at 100.00 | N/R | 1,166,555 | ||
| 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+ | 2,064,266 | ||
| 2,500 | 0.000%, 8/01/28 – AMBAC Insured | No Opt. Call | A+ | 1,635,300 | ||
| 1,445 | Poway Unified School District Public Financing Authority, Califirnia, Special Tax Revenue Refunding Bonds, Series 2015B, 4.000%, 9/01/36 – BAM Insured | 9/25 at 100.00 | AA | 1,480,634 | ||
| 1,000 | Poway Unified School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2014, 5.000%, 10/01/41 – BAM Insured | 10/23 at 100.00 | AA | 1,091,890 | ||
| 560 | Poway Unified School District, San Diego County, California, Special Tax Bonds, Community Facilities District 15 Del Sur East Improvement Area C, Series 2016, 5.000%, 9/01/41 | 9/26 at 100.00 | N/R | 594,070 | ||
| 2,000 | Rancho Cardova, California, Special Tax Bonds, Community Facilities District 2004-1 Sunridge Park Area, Series 2007, 6.125%, 9/01/37 | 9/17 at 100.00 | N/R | 2,021,020 | ||
| 1,200 | Rancho Cardova, California, Special Tax Bonds, Community Facilities District 2005-1 Sunridge North Douglas Series 2015, 5.000%, 9/01/40 | 9/25 at 100.00 | N/R | 1,266,612 | ||
| 3,000 | Rancho Cordova, California, Special Tax Bonds, Community Facilities District 2003-1 Sunridge Anatolia Area, Junior Lien Series 2014, 5.650%, 10/01/38 | 5/17 at 100.00 | N/R | 3,003,360 | ||
| 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- | 1,068,058 | ||
| 1,260 | 0.000%, 7/15/31 – AMBAC Insured | No Opt. Call | A- | 699,451 | ||
| 1,250 | Riverside County Asset Leasing Corporation, California, Lease Revenue Bonds, Capital Project, Tender Option Bond Trust 2015-XF1020, 16.494%, 11/01/45 (Alternative Minimum Tax) (IF) (5) | 11/25 at 100.00 | AA- | 1,976,000 | ||
| 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 | AA- | 980,665 | ||
| Riverside County Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Desert Communities Redevelopment Project, Refunding Series 2014A: | ||||||
| 650 | 5.000%, 10/01/30 – AGM Insured | 10/24 at 100.00 | AA | 745,973 | ||
| 1,380 | 5.000%, 10/01/32 – AGM Insured | 10/24 at 100.00 | AA | 1,564,106 |
44 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 3,160 | Riverside County Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Interstate 215 Corridor Redevelopment Project Area, Refunding Series 2014E, 4.000%, 10/01/37 – AGM Insured | 10/24 at 100.00 | AA | $3,232,680 | ||
| 955 | Riverside County Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Redevelopment Project Area 1, Refunding Series 2014A, 5.000%, 10/01/30 – AGM Insured | 10/24 at 100.00 | AA | 1,096,006 | ||
| 2,000 | Riverside County Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Refunding Series 2014A, 5.000%, 10/01/34 – AGM Insured | 10/24 at 100.00 | AA | 2,248,040 | ||
| 500 | Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Interstate 215 Corridor Redevelopment Project Area, Series 2010E, 6.500%, 10/01/40 | 10/20 at 100.00 | A- | 577,400 | ||
| 205 | Riverside County Redevelopment Agency, California, Tax Allocation Housing Bonds, Series 2011A, 7.125%, 10/01/42 | 10/21 at 100.00 | A | 248,485 | ||
| 2,115 | Riverside County, California, Special Tax Bonds, Community Facilities District 03-1 Newport Road, Series 2014, 5.000%, 9/01/30 | 9/24 at 100.00 | N/R | 2,287,563 | ||
| 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 | 910,438 | ||
| Riverside County, California, Special Tax Bonds, Community Facilities District 05-8 Scott Road, Series 2013: | ||||||
| 660 | 5.000%, 9/01/32 | 9/22 at 100.00 | N/R | 696,340 | ||
| 2,000 | 5.000%, 9/01/42 | 9/22 at 100.00 | N/R | 2,082,940 | ||
| Riverside Public Financing Authority, California, Tax Allocation Bonds, University Corridor, Series 2007C: | ||||||
| 2,000 | 4.500%, 8/01/30 – NPFG Insured | No Opt. Call | AA- | 2,021,440 | ||
| 510 | 5.000%, 8/01/37 – NPFG Insured | 8/17 at 100.00 | AA- | 516,278 | ||
| 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- | 454,359 | ||
| 1,155 | 0.000%, 9/01/35 – NPFG Insured | No Opt. Call | AA- | 495,518 | ||
| 1,000 | Rocklin, Placer County, California, Special Tax Bonds, Community Facilities District 10 Whitney Ranch, Series 2015, 5.000%, 9/01/39 | 9/25 at 100.00 | N/R | 1,061,880 | ||
| 935 | Rohnert Park Community Development Agency, California, Tax Allocation Bonds, Series 1999, 0.000%, 8/01/33 | No Opt. Call | AA- | 458,561 | ||
| 3,775 | 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 | 3,954,161 | ||
| 1,000 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Diamond Creek, Series 2007, 5.000%, 9/01/37 | 9/17 at 100.00 | N/R | 1,004,310 | ||
| 1,800 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Fiddyment Ranch, Series 2006, 5.125%, 9/01/26 | 9/17 at 100.00 | N/R | 1,815,390 | ||
| 1,050 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Hewlett Pakard Campus Oaks, Series 2016, 5.500%, 9/01/46 | 9/26 at 100.00 | N/R | 1,106,406 | ||
| 1,645 | Roseville, California, Special Tax Bonds, Community Facilities District 1 The Fountains, Refunding Series 2016, 5.000%, 9/01/38 | 9/26 at 100.00 | N/R | 1,751,267 | ||
| 1,100 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Westbrook, Series 2014, 5.000%, 9/01/34 | 9/24 at 100.00 | N/R | 1,167,309 | ||
| 500 | Roseville, California, Special Tax Bonds, Community Facilities District 1 Westpark, Refunding Series 2015, 5.000%, 9/01/33 | 9/25 at 100.00 | N/R | 535,135 |
NUVEEN 45
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 230 | Sabal Palm Community Development District, Florida, Special Assessment Bonds, Series 2016, 5.500%, 11/01/46 | 11/26 at 100.00 | N/R | $218,643 | ||
| 1,510 | Sacramento City Financing Authority California, Lease Revenue Bonds, Master Lease Program Facilities Projects, Tender Option Bond Trust 2016-XG0100, 16.464%, 12/01/33 – AMBAC Insured (IF) (5) | No Opt. Call | A+ | 2,806,788 | ||
| 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 | AA- | 2,347,647 | ||
| 4,435 | 0.000%, 12/01/32 – FGIC Insured | No Opt. Call | AA- | 2,301,942 | ||
| 1,250 | Sacramento County, California, Special Tax Bonds, Community Facilities District 2005-2 North Vineyard Station 1, Series 2016, 5.000%, 9/01/40 | 9/26 at 100.00 | N/R | 1,323,037 | ||
| 335 | Sacramento, California, Community Facilities District 05-1, College Square Special Tax Bonds, Series 2007, 5.900%, 9/01/37 | 9/17 at 100.00 | N/R | 338,327 | ||
| 428 | Saint Louis, Missouri, Tax Increment Financing Revenue Bonds, Grace Lofts Redevelopment Projects, Series 2007A, 6.000%, 3/27/26 | 6/17 at 100.00 | N/R | 395,712 | ||
| 535 | San Bernardino County Financing Authority, California, Revenue Bonds, Courthouse Facilities Project, Series 2007, 5.500%, 6/01/37 – NPFG Insured | No Opt. Call | AA- | 545,935 | ||
| 550 | San Bernardino County, California, Special Tax Bonds, Community Facilities District 2006-1 Lytle Creek North Improvement Area 1, Series 2015, 5.000%, 9/01/40 | 9/25 at 100.00 | N/R | 583,627 | ||
| 345 | San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/46 | 9/25 at 100.00 | N/R | 363,313 | ||
| 1,000 | San Francisco City and County Redevelopment Agency Successor Agency, California, Special Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements, Refunding Series 2014, 5.000%, 8/01/39 | No Opt. Call | N/R | 1,055,110 | ||
| 1,250 | San Francisco City and County Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series 2014A, 5.000%, 8/01/43 | 8/24 at 100.00 | A- | 1,374,212 | ||
| 22,610 | San Francisco City and County Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Subordinate Series 2016D, 0.000%, 8/01/43 | 8/21 at 33.74 | N/R | 4,782,467 | ||
| 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 | 428,510 | ||
| San Jacinto Unified School District, California, Community Facilities District 2003-1 Infrastructure Projects, Series 2016: | ||||||
| 600 | 3.250%, 9/01/41 | 9/17 at 103.00 | N/R | 494,262 | ||
| 1,000 | 3.375%, 9/01/46 | 9/17 at 103.00 | N/R | 821,490 | ||
| 1,000 | San Jacinto, California, Special Tax Bonds, Community Facilities District 2002-1 Rancho San Jacinto Phase 2, Series 2016, 5.000%, 9/01/34 | 9/26 at 100.00 | N/R | 1,077,620 | ||
| 100 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2003, 4.900%, 8/01/33 – FGIC Insured | 5/17 at 100.00 | AA- | 101,425 | ||
| 360 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2005A, 5.000%, 8/01/20 – NPFG Insured | 5/17 at 100.00 | AA- | 361,310 | ||
| 165 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2006B, 4.500%, 8/01/35 – RAAI Insured | 5/17 at 100.00 | AA | 165,442 |
46 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| 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 | AA- | $508,760 | ||
| 1,000 | 3.750%, 8/01/28 – NPFG Insured | 8/17 at 100.00 | AA- | 1,000,760 | ||
| 320 | 4.250%, 8/01/30 – NPFG Insured | 8/17 at 100.00 | AA- | 323,162 | ||
| 2,025 | 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+ | 2,027,673 | ||
| 500 | San Marcos Public Facilities Authority, California, Revenue Refunding Bonds, Series 2012B, 5.000%, 9/01/32 – AGM Insured | 9/22 at 100.00 | BBB | 544,595 | ||
| 1,000 | San Marcos Public Facilities Authority, California, Special Tax Revenue Bonds, Refunding Series 2014A, 5.000%, 9/01/33 – AGM Insured | 9/24 at 100.00 | AA | 1,136,440 | ||
| 250 | Santa Ana Financing Authority, California, Lease Revenue Bonds, Police Administration and Housing Facility, Series 1994A, 6.250%, 7/01/24 | No Opt. Call | AA- | 306,003 | ||
| 1,245 | Saugus/Hart School Facilities Financing Authority, California, Special Tax Bonds, Community Facilities District 2006-1, Series 2016, 5.000%, 9/01/41 | 3/26 at 100.00 | N/R | 1,333,856 | ||
| 1,000 | South Tahoe Joint Powers Financing Authority, California, Revenue Bonds, South Tahoe Redevelopment Project Area 1, Series 2014A, 4.000%, 10/01/34 – AGM Insured | 10/24 at 100.00 | AA | 1,022,330 | ||
| 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 | 2,571,850 | ||
| 5,000 | Sulphur Springs Union School District, California, Special Tax Bonds, Community Facilities District 2002-1, Series 2014A, 5.000%, 9/01/39 | 3/24 at 100.00 | BBB+ | 5,366,100 | ||
| 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 | 1,776,771 | ||
| 500 | 5.500%, 9/01/33 | 9/22 at 100.00 | N/R | 537,770 | ||
| 2,000 | Tejon Ranch Public Facilities Financing Authority, California, Special Tax Bonds, Community Facilities District 2008-1 Tejon Industrial Complex East 2012B, 5.250%, 9/01/42 | No Opt. Call | N/R | 2,117,020 | ||
| 2,000 | Tejon Ranch Public Facilities Financing Authority, California, Special Tax Bonds, Community Facilities District 2008-1, Tejon Industrial Complex Public Improvements-East, Series 2015A, 5.000%, 9/01/45 | 9/25 at 100.00 | N/R | 2,116,400 | ||
| 1,000 | Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities District 03-02 Roripaugh, Series 2006, 5.450%, 9/01/26 | 3/17 at 100.00 | N/R | 955,660 | ||
| 1,055 | Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities District 16-01, Series 2017, 6.250%, 9/01/47 (WI/DD, Settling 3/16/17) | 9/27 at 100.00 | N/R | 1,059,621 | ||
| Temecula Valley Unified School District Financing Authority, Riverside County, California, Special Tax Revenue Bonds, Series 2015: | ||||||
| 500 | 5.000%, 9/01/34 – BAM Insured | No Opt. Call | AA | 554,935 | ||
| 2,825 | 5.000%, 9/01/40 – BAM Insured | No Opt. Call | AA | 3,100,098 | ||
| 400 | Temecula Valley Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 2011-1, Series 2014, 4.250%, 9/01/44 | 9/24 at 100.00 | N/R | 402,300 | ||
| 605 | Tustin, California, Special Tax Bonds, Community Facilities District 06-1 Tustin Legacy/Columbus Villages, Refunding Series 2015A, 5.000%, 9/01/37 | 9/25 at 100.00 | BBB+ | 657,817 | ||
| 900 | Tustin, California,Special Tax Bonds, Community Facilities District 14-1 Tustin Legacy/Standard Pacific, Refunding Series 2015A, 5.000%, 9/01/45 | 9/25 at 100.00 | N/R | 952,380 |
NUVEEN 47
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 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+ | $788,788 | ||
| 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+ | 603,710 | ||
| 500 | Victor Elementary School District, Los Angeles County, California, Community Facilities District 2005-1 Special Tax Bonds, Series 2007A, 5.500%, 9/01/37 | 9/17 at 100.00 | N/R | 503,575 | ||
| 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 | 733,222 | ||
| 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- | 734,040 | ||
| West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities District 2015-1 Arambel-KDN, Refunding Series 2015: | ||||||
| 350 | 5.250%, 9/01/35 | 9/25 at 100.00 | N/R | 348,222 | ||
| 785 | 5.250%, 9/01/45 | 9/25 at 100.00 | N/R | 771,325 | ||
| 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 | 4,075,611 | ||
| 2,805 | West Sacramento, California, Special Tax Bonds, Community Facilities District 27 Bridge District, Refunding Series 2016, 5.000%, 9/01/40 | 9/26 at 100.00 | N/R | 2,993,019 | ||
| 465 | Western Riverside Water and Wastewater Financing Authority, California, Local Agency Revenue Bonds, Refunding Series 2016A, 5.000%, 9/01/44 | 9/26 at 100.00 | BBB+ | 507,627 | ||
| 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 | 577,700 | ||
| 1,445 | William S. Hart Union High School District, Los Angeles County, California, Special Tax Bonds, Community Facilities District 2015-1, Series 2017, 5.000%, 9/01/47 | 9/26 at 100.00 | N/R | 1,531,122 | ||
| 2,000 | Woodland, California, Special Tax Bonds, Community Facilities District 2004-1 Spring Lake, Refunding & Capital Projects Series 2016, 4.000%, 9/01/45 | 9/26 at 100.00 | N/R | 1,886,260 | ||
| 290 | Yorkville United City Business District, Illinois, Storm Water and Water Improvement Project Revenue Bonds, Series 2007, 6.000%, 1/01/27 (9) | 1/19 at 100.00 | N/R | 173,878 | ||
| 470 | Yuba City Redevelopment Agency, California, Tax Allocation Bonds, Redevelopment Project, Series 2007, 5.250%, 9/01/39 – RAAI Insured | 9/17 at 100.00 | AA | 473,967 | ||
| 135 | Yuba County, California, Special Tax Bonds, Community Facilities District 2004-1 Edgewater, Series 2005, 5.125%, 9/01/35 | 9/17 at 100.00 | N/R | 134,546 | ||
| 352,320 | Total Tax Obligation/Limited | 321,839,850 | ||||
| Transportation–9.0% | ||||||
| 3,000 | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Junior Lien Series 2013C, 6.250%, 1/15/33 | 1/24 at 100.00 | BB+ | 3,523,500 | ||
| Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Senior Lien Series 2015A: | ||||||
| 6,255 | 0.000%, 1/15/33 | No Opt. Call | BBB- | 3,030,798 | ||
| 3,000 | 0.000%, 1/15/35 – AGM Insured | No Opt. Call | AA | 1,400,760 | ||
| Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Series 2013A: | ||||||
| 5,000 | 0.000%, 1/15/37 – AGM Insured | No Opt. Call | AA | 2,152,350 | ||
| 1,775 | 5.000%, 1/15/42 – AGM Insured | 1/24 at 100.00 | AA | 1,958,162 | ||
| 1,030 | 5.750%, 1/15/46 | 1/24 at 100.00 | BBB- | 1,177,135 |
48 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Transportation (continued) | ||||||
| Guam International Airport Authority, Revenue Bonds, Series 2013C: | ||||||
| $ 745 | 6.250%, 10/01/34 (Alternative Minimum Tax) | 10/23 at 100.00 | BBB | $847,214 | ||
| 500 | 6.125%, 10/01/43 – AGM Insured (Alternative Minimum Tax) | 10/23 at 100.00 | AA | 569,075 | ||
| 33,890 | Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Subordinate Lien Series 2016A, 5.000%, 5/15/42 (Alternative Minimum Tax) (UB) | 5/26 at 100.00 | AA- | 37,693,136 | ||
| Palm Springs Financing Authority, California, Palm Springs International Airport Revenue Bonds, Series 2006: | ||||||
| 35 | 5.450%, 7/01/20 (Alternative Minimum Tax) | 5/17 at 100.00 | N/R | 35,023 | ||
| 40 | 5.550%, 7/01/28 (Alternative Minimum Tax) | 5/17 at 100.00 | N/R | 40,029 | ||
| 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) | 5/17 at 100.00 | N/R | 250,365 | ||
| 355 | 6.500%, 7/01/27 (Alternative Minimum Tax) | 5/17 at 100.00 | N/R | 355,550 | ||
| 1,290 | San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Tender Option Bond Trust Series 2015-XF1032, 15.504%, 5/01/44 (IF) (5) | 5/24 at 100.00 | A+ | 1,856,013 | ||
| San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Bonds, Refunding Junior Lien Series 2014B: | ||||||
| 5,000 | 5.250%, 1/15/44 | 1/25 at 100.00 | BB+ | 5,302,400 | ||
| 2,000 | 5.250%, 1/15/49 | 1/25 at 100.00 | BB+ | 2,117,400 | ||
| San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Bonds, Refunding Senior Lien Series 2014A: | ||||||
| 7,250 | 5.000%, 1/15/44 | 1/25 at 100.00 | BBB- | 7,796,505 | ||
| 1,650 | 5.000%, 1/15/50 | 1/25 at 100.00 | BBB- | 1,768,008 | ||
| 50 | San Joaquin Hills Transportation Corridor Agency, Orange County, California, Toll Road Revenue Bonds, Refunding Series 1997A, 0.000%, 1/15/31 – NPFG Insured | No Opt. Call | AA- | 27,309 | ||
| 1,000 | San Jose, California, Airport Revenue Bonds, Series 2007B, 5.000%, 3/01/33 – AMBAC Insured | 3/17 at 100.00 | A2 | 1,003,240 | ||
| Stockton Public Financing Authority, California, Lease Revenue Bonds, Parking & Capital Projects, Series 2004: | ||||||
| 305 | 5.125%, 9/01/30 – FGIC Insured | 5/17 at 100.00 | AA- | 306,495 | ||
| 235 | 5.250%, 9/01/34 – FGIC Insured | 5/17 at 100.00 | AA- | 232,692 | ||
| 74,655 | Total Transportation | 73,443,159 | ||||
| U.S. Guaranteed–4.2% (8) | ||||||
| 865 | Antelope Valley Healthcare District, California, Revenue Bonds, Series 2011A, 6.875%, 3/01/26 (Pre-refunded 3/01/21) | 3/21 at 100.00 | N/R (8) | 992,302 | ||
| 1,125 | Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Tender Option Bond Trust 2015-XF2179, 16.079%, 4/01/34 (Pre-refunded 4/01/19) (IF) (5) | 4/19 at 100.00 | AA (8) | 1,497,341 | ||
| California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009: | ||||||
| 500 | 8.000%, 11/01/29 (Pre-refunded 11/01/19) | 11/19 at 100.00 | A3 (8) | 590,435 | ||
| 1,040 | 8.500%, 11/01/39 (Pre-refunded 11/01/19) | 11/19 at 100.00 | AA (8) | 1,241,770 |
NUVEEN 49
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (8) (continued) | ||||||
| $ 400 | California Municipal Finance Authority, Revenue Bonds, University Students Coop Association, Series 2007, 4.750%, 4/01/27 (Pre-refunded 4/01/17) | 4/17 at 100.00 | N/R (8) | $401,544 | ||
| California Statewide Communities Development Authority, Educational Facilities Revenue Bonds, Huntington Park Charter School Project, Series 2007A: | ||||||
| 2,090 | 5.150%, 7/01/30 (Pre-refunded 7/01/17) | 7/17 at 100.00 | N/R (8) | 2,122,019 | ||
| 1,500 | 5.250%, 7/01/42 (Pre-refunded 7/01/17) | 7/17 at 100.00 | N/R (8) | 1,523,490 | ||
| 1,000 | California Statewide Communities Development Authority, Lancer Educational Student Housing Revenue Bonds, California Baptist University, Series 2007, 5.625%, 6/01/33 (Pre-refunded 6/01/17) | 6/17 at 102.00 | Aaa | 1,032,920 | ||
| 1,000 | California Statewide Communities Development Authority, Recovery Zone Facility Bonds, SunEdison Huntington Beach Solar Projects, Series 2010, 7.500%, 1/01/31 (Pre-refunded 1/01/21) | 1/21 at 100.00 | N/R (8) | 1,231,150 | ||
| 1,380 | California Statewide Communities Development Authority, Recovery Zone Facility Bonds, SunEdison Irvine Unified School District Solar Projects, Series 2010, 7.500%, 7/01/30 (Pre-refunded 1/01/21) | 1/21 at 100.00 | N/R (8) | 1,642,297 | ||
| 1,000 | California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health System, Tender Option Bond Trust 2016-XG0041, 17.332%, 7/01/47 (Pre-refunded 7/01/18) – AGM Insured (IF) | 7/18 at 100.00 | AA (8) | 1,238,120 | ||
| 3,350 | California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31 (Pre-refunded 7/15/17) | 7/17 at 100.00 | AA+ (8) | 3,407,285 | ||
| 480 | California Statewide Community Development Authority, Health Facility Revenue Bonds, Catholic Healthcare West, Series 2008A, 5.500%, 7/01/30 (Pre-refunded 7/01/17) | 7/17 at 100.00 | A (8) | 487,992 | ||
| 750 | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007C, 5.750%, 7/01/47 (Pre-refunded 7/01/18) – FGIC Insured | 7/18 at 100.00 | AA- (8) | 799,643 | ||
| Compton Public Finance Authority, California, Lease Revenue Bonds, Refunding & Various Capital Projects, Series 2008: | ||||||
| 1,500 | 5.250%, 9/01/27 (Pre-refunded 9/01/18) – AMBAC Insured | 9/18 at 100.00 | N/R (8) | 1,598,070 | ||
| 625 | 5.000%, 9/01/32 (Pre-refunded 9/01/18) – AMBAC Insured | 9/18 at 100.00 | N/R (8) | 663,525 | ||
| Guam Government, General Obligation Bonds, 2009 Series A: | ||||||
| 1,000 | 6.750%, 11/15/29 (Pre-refunded 11/15/19) | 11/19 at 100.00 | N/R (8) | 1,148,390 | ||
| 1,500 | 7.000%, 11/15/39 (Pre-refunded 11/15/19) | 11/19 at 100.00 | N/R (8) | 1,732,125 | ||
| 500 | Guam Government, General Obligation Bonds, Series 2007A, 5.250%, 11/15/37 (Pre-refunded 11/15/17) | 11/17 at 100.00 | BB- (8) | 516,055 | ||
| 70 | Irvine Unified School District Financing Authority, Orange County, California, Special Tax Bonds, Group II, Series 2006A, 5.125%, 9/01/36 (Pre-refunded 9/01/18) | 9/18 at 100.00 | N/R (8) | 74,446 | ||
| 1,115 | Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 25 Eastvale Area, Series 2008A, 8.375%, 9/01/28 (Pre-refunded 9/01/18) | 9/18 at 100.00 | N/R (8) | 1,241,073 | ||
| 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 (8) | 1,088,662 | ||
| 1,490 | Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38 (Pre-refunded 12/01/17) | 12/17 at 100.00 | BB (8) | 1,574,155 | ||
| March Joint Powers Redevelopment Agency, California, Tax Allocation Revenue Bonds, March Air Force Base Redevelopment Project, Series 2011A: | ||||||
| 300 | 7.250%, 8/01/31 (Pre-refunded 8/01/21) | 8/21 at 100.00 | A- (8) | 375,870 | ||
| 1,550 | 7.500%, 8/01/41 (Pre-refunded 8/01/21) | 8/21 at 100.00 | A- (8) | 1,958,595 |
50 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (8) (continued) | ||||||
| $ 500 | March Joint Powers Redevelopment Agency, California, Tax Allocation Revenue Bonds, March Air Force Base Redevelopment Project, Series 2011B, 7.500%, 8/01/41 (Pre-refunded 8/01/21) | 8/21 at 100.00 | A- (8) | $631,805 | ||
| Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009: | ||||||
| 25 | 5.500%, 11/01/19 (ETM) | No Opt. Call | Ba1 (8) | 26,619 | ||
| 500 | 6.750%, 11/01/39 (Pre-refunded 11/01/19) | 11/19 at 100.00 | Ba1 (8) | 573,725 | ||
| 250 | Palomar Pomerado Health, California, General Obligation Bonds, Tender Option Bond Trust 2016-XG0017, 16.042%, 8/01/37 (Pre-refunded 8/01/17) – NPFG Insured (IF) (5) | 8/17 at 100.00 | AA- (8) | 269,230 | ||
| 1,500 | Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28 (Pre-refunded 9/01/18) | 9/18 at 100.00 | BB+ (8) | 1,627,440 | ||
| 250 | Santa Ana Financing Authority, California, Lease Revenue Bonds, Police Administration and Housing Facility, Series 1994A, 6.250%, 7/01/24 – NPFG Insured (ETM) | No Opt. Call | AA- (8) | 305,223 | ||
| 530 | Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.250%, 9/01/29 (Pre-refunded 3/01/21) | 3/21 at 100.00 | A- (8) | 652,165 | ||
| 30,640 | Total U.S. Guaranteed | 34,265,481 | ||||
| Utilities–2.1% | ||||||
| 25 | Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007A, 5.500%, 11/15/28 | No Opt. Call | A | 29,823 | ||
| 700 | Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series 2007B, 1.977%, 11/15/26 | No Opt. Call | A | 657,776 | ||
| Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2016B: | ||||||
| 1,790 | 5.000%, 7/01/42 (UB) (5) | 1/26 at 100.00 | Aa2 | 2,048,207 | ||
| 2,240 | 5.000%, 7/01/45 (UB) (5) | 1/26 at 100.00 | Aa2 | 2,557,542 | ||
| 7,565 | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2017A, 5.000%, 7/01/42 (UB) (5) | 1/27 at 100.00 | Aa2 | 8,761,934 | ||
| 50 | M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 2009A, 6.500%, 11/01/39 | No Opt. Call | A | 67,967 | ||
| 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 | 1,359,330 | ||
| Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A: | ||||||
| 1,000 | 5.000%, 11/01/29 | No Opt. Call | A | 1,155,780 | ||
| 720 | 5.000%, 11/01/33 | No Opt. Call | A | 834,689 | ||
| 15,090 | Total Utilities | 17,473,048 | ||||
| Water and Sewer–4.1% | ||||||
| California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, Poseidon Resources Channelside LP Desalination Project, Series 2012: | ||||||
| 200 | 5.000%, 7/01/37 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 207,720 | ||
| 2,000 | 5.000%, 11/21/45 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 2,079,140 |
NUVEEN 51
Nuveen California High Yield Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Water and Sewer (continued) | ||||||
| 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 | $2,004,020 | ||
| 6,250 | 5.000%, 11/21/45 | No Opt. Call | Baa3 | 6,252,937 | ||
| 500 | Dinuba Financing Authority, California, Wastewater System Revenue Bonds, Series 2007, 5.375%, 9/01/38 | 9/17 at 100.00 | N/R | 502,680 | ||
| 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- | 1,068,210 | ||
| 1,000 | 5.500%, 7/01/30 | 7/20 at 100.00 | A- | 1,068,370 | ||
| Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2013: | ||||||
| 500 | 5.250%, 7/01/33 | 7/23 at 100.00 | A- | 546,380 | ||
| 1,000 | 5.500%, 7/01/43 | 7/23 at 100.00 | A- | 1,096,720 | ||
| 500 | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2016, 5.000%, 1/01/46 | 7/26 at 100.00 | A- | 527,455 | ||
| 10,000 | Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series 2016A, 5.000%, 7/01/46 (UB) | 1/26 at 100.00 | AA+ | 11,409,300 | ||
| 2,000 | Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Tender Option Bond Trust 3403. As of 6/4/2015 Converted to Trust 2015-XF2053, 19.963%, 7/01/44 (IF) (5) | 7/24 at 100.00 | AA+ | 3,336,580 | ||
| 1,500 | Pico Rivera Water Authority, California, Revenue Bonds, Refunding Water System Project, Series 1999A, 5.500%, 5/01/29 – NPFG Insured | No Opt. Call | AA- | 1,756,935 | ||
| 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 | 1,496,050 | ||
| 29,700 | Total Water and Sewer | 33,352,497 | ||||
| $ 983,357 | Total Municipal Bonds (cost $847,842,455) | 869,216,841 |
| Shares | Description | Value | ||||
| COMMON STOCKS–0.5% | ||||||
| Airlines–0.5% | ||||||
| 94,060 | American Airlines Group Inc. (10) | $ 4,360,621 | ||||
| Total Common Stocks (cost $94,060) | 4,360,621 | |||||
| Total Long-Term Investments (cost $847,936,515) | 873,577,462 |
| Floating Rate Obligations–(10.9)% | (89,000,000) | |||||
| Other Assets Less Liabilities–4.1% (11) | 33,597,252 | |||||
| Net Assets–100% | $818,174,714 |
See accompanying notes to financial statements.
52 NUVEEN
| Investments in Derivatives as of February 28, 2017 | |||||||||
| Interest Rate Swaps (OTC) | |||||||||
| Counterparty | Notional Amount | Fund Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Effective Date | Optional Termination Date | Termination Date | Unrealized Appreciation (Depreciation) |
| JPMorgan Chase Bank, N.A. | $17,100,000 | Receive | USD-BMA | 1.665% | Quarterly | 11/20/17 | 3/20/18 | 11/20/47 | $2,420,121 |
| Interest Rate Swaps (OTC-Cleared) | |||||||||
| Clearing Broker | Notional Amount | Fund Pay/Receive Floating Rate | Floating Rate Index | Fixed Rate (Annualized) | Fixed Rate Payment Frequency | Effective Date | Termination Date | Variation Margin Receivable/ (Payable) | Unrealized Appreciation (Depreciation) |
| Citigroup Global Markets Inc.* | $38,000,000 | Receive | 3-Month USD-LIBOR-ICE | 1.592% | Quarterly | 9/19/17 | 9/19/28 | $(43,768) | $3,261,129 |
* London Clearing House is the clearing house for this transaction.
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm. | |
| (3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm. | |
| (4) | As of, 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 ceased 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) | The coupon for this security increased 0.25% effective January 1, 2016 and increased an additional 0.25% effective May 11, 2016. | |
| (7) | Step-up coupon. The rate shown is the coupon as of the end of the reporting period. | |
| (8) | Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Certain bonds backed by U.S. Government or agency securities are regarded as having an implied rating equal to the rating of such securities. | |
| (9) | On July 1, 2014, 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 6.000% to 4.200%. | |
| (10) | 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 was converted to AAL common stock over a 120-day period. Every 30 days, a quarter of the preferred stock was 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. | |
| (11) | Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the counter ("OTC") derivatives as presented on the Statement of Assets and Liabilities. The unrealized appreciation (depreciation) of OTC-cleared and exchange-traded derivatives is recognized as part of the cash collateral at brokers and/or the receivable or payable for variation margin as presented on the Statement of Assets and Liabilities, when applicable. | |
| (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. | |
| USD-BMA | United States Dollar-Bond Market Association | |
| USD-LIBOR-ICE | United States Dollar-London Inter-Bank Offered Rate-Intercontinental Exchange | |
| (WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
NUVEEN 53
Nuveen California Municipal Bond Fund
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| LONG-TERM INVESTMENTS–99.0% | ||||||
| MUNICIPAL BONDS–99.0% | ||||||
| Consumer Staples–6.5% | ||||||
| $ 1,995 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Alameda County Tobacco Asset Securitization Corporation, Series 2002, 5.750%, 6/01/29 | 5/17 at 100.00 | Baa1 | $2,008,526 | ||
| 8,000 | California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Gold Country Settlement Funding Corporation, Refunding Series 2006, 5.250%, 6/01/46 | 5/17 at 100.00 | CCC | 7,710,000 | ||
| California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Los Angeles County Securitization Corporation, Series 2006A: | ||||||
| 2,480 | 5.600%, 6/01/36 | 12/18 at 100.00 | B3 | 2,525,607 | ||
| 3,500 | 5.650%, 6/01/41 | 12/18 at 100.00 | B2 | 3,564,365 | ||
| 5,000 | 5.700%, 6/01/46 | 12/18 at 100.00 | B2 | 5,004,550 | ||
| California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma County Tobacco Securitization Corporation, Series 2005: | ||||||
| 170 | 4.250%, 6/01/21 | 5/17 at 100.00 | BBB+ | 170,020 | ||
| 2,315 | 5.125%, 6/01/38 | 5/17 at 100.00 | B- | 2,273,353 | ||
| 34,725 | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.000%, 6/01/33 | 6/17 at 100.00 | B- | 34,725,695 | ||
| 8,000 | 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- | 8,026,960 | ||
| Tobacco Securitization Authority of Northern California, Tobacco Settlement Asset-Backed Bonds, Series 2005A-1: | ||||||
| 9,835 | 5.375%, 6/01/38 | 5/17 at 100.00 | B- | 9,664,166 | ||
| 3,105 | 5.500%, 6/01/45 | 5/17 at 100.00 | B- | 2,997,319 | ||
| 3,700 | 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 | 5/17 at 100.00 | BB+ | 3,699,815 | ||
| 82,825 | Total Consumer Staples | 82,370,376 | ||||
| Education and Civic Organizations–4.7% | ||||||
| 5,000 | California Educational Facilities Authority, Revenue Bonds, Chapman University, Series 2015, 5.000%, 4/01/40 | 4/25 at 100.00 | A2 | 5,546,700 | ||
| 3,915 | California Educational Facilities Authority, Revenue Bonds, Pepperdine University, Series 2015, 5.000%, 9/01/40 | 9/25 at 100.00 | AA | 4,448,732 | ||
| 1,000 | California Educational Facilities Authority, Revenue Bonds, Pitzer College, Refunding Series 2009, 5.375%, 4/01/34 | 4/20 at 100.00 | A2 | 1,098,470 | ||
| 3,000 | California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Refunding Series 2015, 5.000%, 11/01/36 | 11/25 at 100.00 | A2 | 3,365,040 |
54 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| California Infrastructure and Economic Development Bank, Revenue Bonds, The Walt Disney Family Museum, Refunding Series 2016: | ||||||
| $ 250 | 5.000%, 2/01/30 | 2/26 at 100.00 | A+ | $289,278 | ||
| 250 | 5.000%, 2/01/31 | 2/26 at 100.00 | A+ | 287,623 | ||
| 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 | B+ | 1,626,450 | ||
| 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 | 1,271,981 | ||
| California Municipal Finance Authority, Educational Facilities Revenue Bonds, OCEAA Project, Series 2008A: | ||||||
| 865 | 6.750%, 10/01/28 | 10/18 at 100.00 | N/R | 888,294 | ||
| 1,500 | 7.000%, 10/01/39 | 10/18 at 100.00 | N/R | 1,539,945 | ||
| California Municipal Finance Authority, Revenue Bonds, Biola University, Refunding Series 2008A: | ||||||
| 610 | 5.000%, 10/01/18 | No Opt. Call | Baa1 | 638,121 | ||
| 500 | 5.625%, 10/01/23 | 4/18 at 100.00 | Baa1 | 523,740 | ||
| 815 | 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 | 850,004 | ||
| 1,275 | California Municipal Finance Authority, Revenue Bonds, Goodwill Industries of Sacramento Valley & Northern Nevada Project, Series 2014A, 5.000%, 1/01/35 | 1/25 at 100.00 | N/R | 1,225,428 | ||
| 1,500 | California Municipal Finance Authority, Revenue Bonds, University of La Verne, Series 2010A, 6.125%, 6/01/30 | 6/20 at 100.00 | A- | 1,693,845 | ||
| 410 | California School Finance Authority, Charter School Revenue Bonds, Downtown College Prep - Obligated Group, Series 2016, 5.000%, 6/01/46 | 6/26 at 100.00 | N/R | 401,456 | ||
| 285 | California School Finance Authority, Charter School Revenue Bonds, Rocketship Education - Obligated Group, Series 2016A, 5.000%, 6/01/36 | 6/25 at 100.00 | N/R | 283,584 | ||
| 830 | California School Finance Authority, School Facility Revenue Bonds, Alliance for College-Ready Public Schools Project, Series 2016A, 5.000%, 7/01/46 | 7/25 at 100.00 | BBB | 833,602 | ||
| 5,235 | California School Finance Authority, School Facility Revenue Bonds, Alliance for College-Ready Public Schools Project, Series 2016C, 5.250%, 7/01/52 | 7/25 at 101.00 | BBB | 5,297,087 | ||
| 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+ | 2,247,800 | ||
| 4,040 | 7.000%, 7/01/48 | 7/23 at 100.00 | BB+ | 4,552,676 | ||
| 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 | 553,890 | ||
| 1,035 | California State Public Works Board, Lease Revenue Refunding Bonds, Community College Projects, Series 2004B, 5.500%, 6/01/19 | 5/17 at 100.00 | A+ | 1,039,357 | ||
| California State University, Systemwide Revenue Bonds, Refunding Series 2015A: | ||||||
| 2,650 | 5.000%, 11/01/35 | 11/25 at 100.00 | Aa2 | 3,056,457 | ||
| 2,970 | 5.000%, 11/01/38 | 11/25 at 100.00 | Aa2 | 3,405,966 | ||
| California State University, Systemwide Revenue Bonds, Series 2016A: | ||||||
| 3,640 | 5.000%, 11/01/30 | 5/26 at 100.00 | Aa2 | 4,322,755 | ||
| 3,445 | 4.000%, 11/01/38 | 5/26 at 100.00 | Aa2 | 3,581,801 | ||
| 2,000 | 5.000%, 11/01/41 | 5/26 at 100.00 | Aa2 | 2,299,620 |
NUVEEN 55
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| $ 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- | $1,916,733 | ||
| 1,115 | San Diego County, California, Limited Revenue Obligations, Sanford Burnham Prebys Medical Discovery Institute, Series 2015A, 5.000%, 11/01/28 | 11/25 at 100.00 | A3 | 1,258,712 | ||
| 54,960 | Total Education and Civic Organizations | 60,345,147 | ||||
| Health Care–12.1% | ||||||
| 430 | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Refunding Series 2015A, 5.000%, 8/15/43 | 8/25 at 100.00 | AA- | 479,893 | ||
| 15,000 | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Refunding Series 2016B, 5.000%, 11/15/46 | 11/26 at 100.00 | AA- | 16,720,800 | ||
| 10,845 | California Health Facilities Financing Authority, California, Revenue Bonds, Sutter Health, Series 2016A, 5.000%, 11/15/41 | 11/25 at 100.00 | AA- | 12,039,902 | ||
| 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 | 2,311,821 | ||
| 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 | 534,770 | ||
| 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 | 1,054,770 | ||
| 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 | 3,267,690 | ||
| 455 | California Health Facilities Financing Authority, Revenue Bonds, Cedars-Sinai Medical Center, Refunding Series 2015, 5.000%, 11/15/32 | 11/25 at 100.00 | Aa3 | 526,572 | ||
| 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+ | 1,095,940 | ||
| 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 | 1,129,750 | ||
| 3,940 | California Health Facilities Financing Authority, Revenue Bonds, El Camino Hospital, Refunding Series 2015A, 5.000%, 2/01/40 | 2/25 at 100.00 | A+ | 4,291,763 | ||
| 830 | California Health Facilities Financing Authority, Revenue Bonds, Lucile Salter Packard Children's Hospital, Series 2014A, 5.000%, 8/15/43 | 8/24 at 100.00 | AA | 913,440 | ||
| 905 | California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Refunding Series 2014A, 5.000%, 10/01/38 | 10/24 at 100.00 | AA- | 1,015,944 | ||
| 1,825 | California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Series 2014B, 5.000%, 10/01/44 | 10/24 at 100.00 | AA- | 2,003,521 | ||
| 17,345 | California Health Facilities Financing Authority, Revenue Bonds, Providence Saint Joseph Health, Refunding Series 2016A, 4.000%, 10/01/47 | 10/26 at 100.00 | AA- | 17,283,772 | ||
| 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 | Aa3 | 6,664,620 | ||
| 200 | California Health Facilities Financing Authority, Revenue Bonds, Scripps Health, Refunding Series 2008A, 5.000%, 10/01/22 | 10/18 at 100.00 | AA | 212,410 | ||
| 2,000 | California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2011B, 6.000%, 8/15/42 | 8/20 at 100.00 | AA- | 2,277,940 | ||
| California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 2017A: | ||||||
| 1,810 | 5.250%, 11/01/36 | 11/26 at 100.00 | BBB- | 1,964,212 | ||
| 5,310 | 5.250%, 11/01/47 | 11/26 at 100.00 | BBB- | 5,709,843 |
56 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| $ 9,950 | California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2014A, 5.250%, 12/01/34 | 12/24 at 100.00 | BB+ | $10,668,987 | ||
| 13,800 | California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2016A, 5.250%, 12/01/56 | 6/26 at 100.00 | BB+ | 14,554,308 | ||
| California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System/West, Series 2015A: | ||||||
| 1,305 | 5.000%, 3/01/35 | 3/26 at 100.00 | A | 1,465,854 | ||
| 1,000 | 5.000%, 3/01/45 | 3/26 at 100.00 | A | 1,100,430 | ||
| California Statewide Communities Development Authority, Revenue Bonds, Huntington Memorial Hospital, Refunding Series 2014B: | ||||||
| 25 | 5.000%, 7/01/25 | 7/24 at 100.00 | A- | 28,824 | ||
| 1,170 | 5.000%, 7/01/31 | 7/24 at 100.00 | A- | 1,285,093 | ||
| California Statewide Communities Development Authority, Revenue Bonds, John Muir Health, Series 2016A: | ||||||
| 100 | 5.000%, 8/15/46 | 8/26 at 100.00 | A+ | 109,048 | ||
| 235 | 5.000%, 8/15/51 | 8/26 at 100.00 | A+ | 255,036 | ||
| 6,500 | California Statewide Communities Development Authority, Revenue Bonds, Kaiser Permanente, Series 2012A, 5.000%, 4/01/42 | 4/22 at 100.00 | AA- | 7,083,765 | ||
| 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 | 1,043,920 | ||
| 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 | AA- | 132,549 | ||
| 500 | 5.500%, 8/15/23 | 8/18 at 100.00 | AA- | 531,550 | ||
| 2,235 | California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005A, 5.750%, 7/01/30 (4) | 5/17 at 100.00 | CCC | 2,150,271 | ||
| 3,260 | California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity Health System, Series 2005G, 5.000%, 7/01/22 (4) | 5/17 at 100.00 | CCC | 3,191,964 | ||
| 3,000 | California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System, Series 2007B, 1.449%, 4/01/36 | 4/17 at 100.00 | AA- | 2,565,090 | ||
| 3,000 | Kaweah Delta Health Care District, California, Revenue Bonds, Series 2015B, 5.000%, 6/01/40 | 6/25 at 100.00 | A3 | 3,252,960 | ||
| Marysville, California, Revenue Bonds, Fremont-Rideout Health Group, Series 2011: | ||||||
| 2,040 | 5.250%, 1/01/27 | 1/21 at 100.00 | BBB- | 2,053,586 | ||
| 515 | 5.125%, 1/01/33 | 1/21 at 100.00 | BBB- | 512,204 | ||
| 1,260 | 5.200%, 1/01/34 | 1/21 at 100.00 | BBB- | 1,252,919 | ||
| 4,125 | 5.250%, 1/01/35 | 1/21 at 100.00 | BBB- | 4,101,075 | ||
| 275 | 5.250%, 1/01/37 | No Opt. Call | BBB- | 273,303 | ||
| 4,580 | 5.250%, 1/01/42 | 1/21 at 100.00 | BBB- | 4,548,215 | ||
| 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 | 1,424,872 | ||
| 1,580 | Oak Valley Hospital District, Stanislaus County, California, Revenue Bonds, Series 2010A, 7.000%, 11/01/35 | 11/20 at 100.00 | BB | 1,634,652 | ||
| 3,625 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2010, 6.000%, 11/01/41 | 11/20 at 100.00 | BBB- | 3,946,900 |
NUVEEN 57
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| $ 3,040 | Upland, California, Certificates of Participation, San Antonio Community Hospital, Series 2011, 6.500%, 1/01/41 | 1/21 at 100.00 | BBB+ | $ 3,390,451 | ||
| 145,000 | Total Health Care | 154,057,199 | ||||
| Housing/Multifamily–1.2% | ||||||
| 1,450 | California Municipal Finance Authority, Mobile Home Park Revenue Bonds, Caritas Projects Series 2010A, 6.400%, 8/15/45 | 8/20 at 100.00 | BBB | 1,579,238 | ||
| 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 | 1,731,775 | ||
| 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 | 1,136,740 | ||
| California Municipal Finance Authority, Mobile Home Park Senior Revenue Bonds, Caritas Affordable Housing, Inc. Projects, Series 2014A: | ||||||
| 170 | 5.250%, 8/15/39 | 8/24 at 100.00 | BBB | 187,019 | ||
| 455 | 5.250%, 8/15/49 | 8/24 at 100.00 | BBB | 497,756 | ||
| 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) | 6/17 at 100.00 | N/R | 4,182,592 | ||
| 1,800 | Independent Cities Finance Authority, California, Mobile Home Park Revenue Bonds, Palomar Estates West, Refunding Series 2015, 5.000%, 9/15/25 | No Opt. Call | N/R | 1,979,010 | ||
| 1,695 | San Dimas Housing Authority, California, Mobile Home Park Revenue Bonds, Charter Oak Mobile Home Estates Acquisition Project, Series 1998A, 5.700%, 7/01/28 | 7/17 at 100.00 | N/R | 1,697,509 | ||
| 1,155 | San Jose, California, Multifamily Housing Senior Lien Revenue Bonds, Fallen Leaves Apartments, Series 2002J1, 4.950%, 12/01/22 – AMBAC Insured (Alternative Minimum Tax) | 5/17 at 100.00 | N/R | 1,155,993 | ||
| 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) | 5/17 at 100.00 | N/R | 1,001,030 | ||
| 14,485 | Total Housing/Multifamily | 15,148,662 | ||||
| Long-Term Care–0.5% | ||||||
| 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 | AA- | 3,165,480 | ||
| 1,275 | California Health Facilities Financing Authority, Revenue Bonds, Northern California Presbyterian Homes & Services Inc., Refunding Series 2015, 5.000%, 7/01/44 | 7/25 at 100.00 | AA- | 1,410,316 | ||
| 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 | AA- | 582,422 | ||
| 750 | California Statewide Community Development Authority, Revenue Bonds, Los Angeles Jewish Home for the Aging-Fountainview Gonda, Series 2014D, 4.750%, 8/01/20 | 11/17 at 100.00 | N/R | 750,330 | ||
| 5,585 | Total Long-Term Care | 5,908,548 | ||||
| Tax Obligation/General–23.5% | ||||||
| 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 | 752,730 | ||
| 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- | 4,886,120 | ||
| 5,250 | Bakersfield City School District, Kern County, California, General Obligation Bonds, Series 2012C, 0.000%, 5/01/42 (5) | 5/40 at 100.00 | Aa2 | 2,925,668 |
58 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/General (continued) | ||||||
| $ 3,565 | California State, General Obligation Bonds, Refunding Various Purpose Series 2016, 5.000%, 9/01/32 | 9/26 at 100.00 | AA- | $4,157,432 | ||
| California State, General Obligation Bonds, Various Purpose Refunding Series 2014: | ||||||
| 1,265 | 5.000%, 8/01/31 | 8/24 at 100.00 | AA- | 1,463,226 | ||
| 6,780 | 5.000%, 8/01/32 | 8/24 at 100.00 | AA- | 7,802,966 | ||
| 1,205 | 5.000%, 8/01/33 | 8/24 at 100.00 | AA- | 1,380,713 | ||
| California State, General Obligation Bonds, Various Purpose Refunding Series 2015: | ||||||
| 5,275 | 5.000%, 8/01/31 | 2/25 at 100.00 | AA- | 6,086,453 | ||
| 5,000 | 5.000%, 8/01/32 | 2/25 at 100.00 | AA- | 5,738,550 | ||
| 28,370 | 5.000%, 8/01/33 | 2/25 at 100.00 | AA- | 32,409,604 | ||
| California State, General Obligation Bonds, Various Purpose Series 2009: | ||||||
| 600 | 5.625%, 4/01/26 | 4/19 at 100.00 | AA- | 656,838 | ||
| 5,000 | 5.500%, 11/01/34 | 11/19 at 100.00 | AA- | 5,519,550 | ||
| 4,060 | 6.000%, 11/01/39 | 11/19 at 100.00 | AA- | 4,570,261 | ||
| California State, General Obligation Bonds, Various Purpose Series 2010: | ||||||
| 5,000 | 5.250%, 3/01/30 | 3/20 at 100.00 | AA- | 5,553,950 | ||
| 10,000 | 5.500%, 3/01/40 | 3/20 at 100.00 | AA- | 11,129,700 | ||
| 4,000 | 5.250%, 11/01/40 | 11/20 at 100.00 | AA- | 4,491,000 | ||
| 2,000 | California State, General Obligation Bonds, Various Purpose Series 2011, 5.250%, 10/01/32 | 10/21 at 100.00 | AA- | 2,284,720 | ||
| California State, General Obligation Bonds, Various Purpose Series 2013: | ||||||
| 5,860 | 5.000%, 2/01/38 | No Opt. Call | AA- | 6,555,816 | ||
| 1,430 | 5.000%, 2/01/43 | No Opt. Call | AA- | 1,596,495 | ||
| California State, General Obligation Bonds, Various Purpose Series 2014: | ||||||
| 15,000 | 5.000%, 10/01/37 | 10/24 at 100.00 | AA- | 17,066,550 | ||
| 2,470 | 5.000%, 5/01/44 | 5/24 at 100.00 | AA- | 2,779,886 | ||
| California State, General Obligation Bonds, Various Purpose Series 2015: | ||||||
| 5,545 | 5.000%, 3/01/33 | 3/25 at 100.00 | AA- | 6,342,038 | ||
| 3,000 | 5.000%, 3/01/45 | 3/25 at 100.00 | AA- | 3,369,810 | ||
| 3,000 | 5.000%, 8/01/45 | 8/25 at 100.00 | AA- | 3,386,490 | ||
| 3,000 | Coast Community College District, Orange County, California, General Obligation Bonds, Refunding Series 2015, 5.000%, 8/01/33 | 8/25 at 100.00 | AA+ | 3,472,710 | ||
| 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 | 1,085,930 | ||
| 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 (5) | 8/27 at 100.00 | AA | 658,520 | ||
| 18,500 | Desert Community College District, Riverside County, California, General Obligation Bonds, Election 2004 Series 2007C, 0.000%, 8/01/46 – AGM Insured | No Opt. Call | AA | 3,805,820 | ||
| 4,000 | Desert Community College District, Riverside County, California, General Obligation Bonds, Refunding Series 2016, 5.000%, 8/01/37 | 2/26 at 100.00 | AA | 4,575,080 |
NUVEEN 59
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/General (continued) | ||||||
| Fontana Unified School District, San Bernardino County, California, General Obligation Bonds, Refunding Series 2012: | ||||||
| $ 11,200 | 0.000%, 8/01/40 | No Opt. Call | Aa3 | $3,411,744 | ||
| 19,700 | 0.000%, 8/01/41 | 8/22 at 34.18 | Aa3 | 5,641,686 | ||
| 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 | AA- | 382,650 | ||
| 345 | 5.800%, 8/01/23 – NPFG Insured | No Opt. Call | AA- | 419,227 | ||
| 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 | AA- | 506,846 | ||
| 30 | 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 | 32,974 | ||
| Los Angeles Community College District, California, General Obligation Bonds, Refunding Series 2015A: | ||||||
| 32,835 | 5.000%, 8/01/30 | 8/24 at 100.00 | AA+ | 38,580,468 | ||
| 6,000 | 5.000%, 8/01/31 | 8/24 at 100.00 | AA+ | 7,006,200 | ||
| 10,000 | Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds, Refunding Series 2016B, 5.000%, 7/01/28 | 7/26 at 100.00 | AAA | 12,108,100 | ||
| 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 | 162,723 | ||
| 100 | Lucia Mar Unified School District, San Luis Obispo County, California, General Obligation Bonds, Refunding Series 2005, 5.250%, 8/01/22 – FGIC Insured | No Opt. Call | Aa2 | 118,974 | ||
| 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 | Aaa | 2,191,700 | ||
| Oakland Unified School District, Alameda County, California, General Obligation Bonds, Refunding Series 2016: | ||||||
| 4,500 | 5.000%, 8/01/28 | 8/26 at 100.00 | AAA | 5,423,985 | ||
| 4,000 | 5.000%, 8/01/29 | 8/26 at 100.00 | AAA | 4,783,960 | ||
| 9,440 | Paramount Unified School District, Los Angeles County, California, General Obligation Bonds, Election 2006 Series 2011, 0.000%, 8/01/45 | No Opt. Call | A+ | 8,535,459 | ||
| 1,155 | Pittsburg Unified School District, Contra Costa County, California, General Obligation Bonds, Series 2009B, 5.500%, 8/01/34 – AGM Insured | 8/18 at 100.00 | AA | 1,224,647 | ||
| 13,835 | Rio Hondo Community College District, California, General Obligation Bonds, Election of 2004, Series 2010C, 0.000%, 8/01/42 (5) | 8/34 at 100.00 | AA | 13,515,412 | ||
| 3,125 | Rosemead School District, Los Angeles County, California, General Obligation Bonds, Election 2008 Series 2013B, 0.000%, 8/01/43 – AGM Insured (5) | 8/23 at 100.00 | AA | 3,358,219 | ||
| San Diego Community College District, California, General Obligation Bonds, Refunding Series 2016: | ||||||
| 10,000 | 5.000%, 8/01/31 | 8/26 at 100.00 | Aaa | 11,902,400 | ||
| 2,000 | 5.000%, 8/01/41 | 8/26 at 100.00 | Aaa | 2,326,220 | ||
| 1,535 | San Leandro Unified School District, Alameda County, California, General Obligation Bonds, Election 2006 Series 2010C, 0.000%, 8/01/39 – AGC Insured | 8/28 at 100.00 | AA | 1,191,267 | ||
| 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+ | 1,160,180 | ||
| 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 | Aa3 | 1,058,860 |
60 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/General (continued) | ||||||
| Tulare Local Health Care District, California, General Obligation Bonds, Series 2009B-1: | ||||||
| $ 500 | 6.375%, 8/01/25 | 8/19 at 100.00 | Baa3 | $547,055 | ||
| 1,005 | 6.500%, 8/01/26 | 8/19 at 100.00 | Baa3 | 1,100,324 | ||
| 2,000 | Victor Valley Union High School District, San Bernardino County, California, General Obligation Bonds, Series 2009A, 0.000%, 8/01/31 – AGC Insured (5) | 8/26 at 100.00 | AA | 2,105,520 | ||
| 1,395 | Walnut Valley Unified School District, Los Angeles County, California, General Obligation Bonds, Election 2007 Measure S, Series 2014C, 5.000%, 8/01/39 | 8/24 at 100.00 | Aa2 | 1,574,495 | ||
| 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 | 757,230 | ||
| 2,365 | West Contra Costa Unified School District, Contra Costa County, California, General Obligation Bonds, Refunding Series 2016A, 5.000%, 8/01/34 | 8/25 at 100.00 | AA+ | 2,686,498 | ||
| 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 | AA- | 1,397,462 | ||
| 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 | AA- | 855,639 | ||
| 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- | 374,750 | ||
| 3,500 | Yosemite Community College District, California, General Obligation Bonds, Capital Appreciation, Election 2004, Series 2010D, 0.000%, 8/01/42 (5) | No Opt. Call | Aa2 | 2,228,450 | ||
| 4,000 | Yosemite Community College District, California, General Obligation Bonds, Refunding Series 2015, 5.000%, 8/01/32 | No Opt. Call | Aa2 | 4,643,280 | ||
| 316,685 | Total Tax Obligation/General | 299,819,230 | ||||
| Tax Obligation/Limited–23.1% | ||||||
| 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 | 1,113,010 | ||
| 1,000 | Beaumont Financing Authority, California, Local Agency Revenue Bonds, Improvement Area 19A, Series 2015B, 5.000%, 9/01/35 | 9/25 at 100.00 | N/R | 1,067,800 | ||
| 1,655 | Bell Community Housing Authority, California, Lease Revenue Bonds, Series 2005, 5.000%, 10/01/36 – AMBAC Insured | 5/17 at 100.00 | N/R | 1,506,331 | ||
| 2,250 | Brea and Olinda Unified School District, Orange County, California, Certificates of Participation Refunding, Series 2002A, 5.125%, 8/01/26 – AGM Insured | 5/17 at 100.00 | AA | 2,258,482 | ||
| 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- | 855,811 | ||
| 2,725 | California Community College Financing Authority, Lease Revenue Bonds, Refunding Series 2003, 0.000%, 6/01/33 – AMBAC Insured | No Opt. Call | A+ | 1,218,184 | ||
| 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 | 5/17 at 100.00 | AA | 2,023,818 | ||
| 2,000 | California State Public Works Board, Lease Revenue Bonds, Department of Corrections & Rehabilitation, Various Correctional Facilities Series 2014A, 5.000%, 9/01/39 | 9/24 at 100.00 | A+ | 2,251,380 | ||
| 1,000 | California State Public Works Board, Lease Revenue Bonds, Department of Education Riverside Campus Project, Series 2009B, 5.750%, 4/01/23 | 4/19 at 100.00 | A+ | 1,092,510 |
NUVEEN 61
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| California State Public Works Board, Lease Revenue Bonds, Judicial Council of California, New Stockton Courthouse, Series 2014B: | ||||||
| $ 5,120 | 5.000%, 10/01/32 | 10/24 at 100.00 | A+ | $5,870,336 | ||
| 2,600 | 5.000%, 10/01/33 | 10/24 at 100.00 | A+ | 2,967,692 | ||
| 3,820 | 5.000%, 10/01/34 | 10/24 at 100.00 | A+ | 4,343,493 | ||
| 2,000 | 5.000%, 10/01/39 | 10/24 at 100.00 | A+ | 2,253,800 | ||
| 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 | A+ | 1,131,320 | ||
| 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 | A+ | 2,762,475 | ||
| 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 | A+ | 3,398,850 | ||
| 765 | 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 | 807,083 | ||
| Chula Vista Municipal Finance Authority, California, Special Tax Revenue Bonds, Refunding Series 2013: | ||||||
| 1,915 | 5.500%, 9/01/27 | 9/23 at 100.00 | BBB+ | 2,212,859 | ||
| 2,165 | 5.500%, 9/01/29 | 9/23 at 100.00 | BBB+ | 2,483,298 | ||
| 1,520 | 5.500%, 9/01/30 | 9/23 at 100.00 | BBB+ | 1,740,902 | ||
| 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 | 686,301 | ||
| 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 | 1,478,737 | ||
| 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+ | 1,285,812 | ||
| 1,500 | Elk Grove Financing Authority, California, Special Tax Revenue Bonds, Series 2015, 5.000%, 9/01/38 – BAM Insured | 9/25 at 100.00 | AA | 1,674,855 | ||
| 35,000 | Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement Asset-Backed Revenue Bonds, Refunding Series 2015A, 5.000%, 6/01/40 | 6/25 at 100.00 | A+ | 38,788,050 | ||
| 1,650 | 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 | 1,714,614 | ||
| Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D: | ||||||
| 7,500 | 5.000%, 11/15/28 | 11/25 at 100.00 | A | 8,075,400 | ||
| 6,375 | 5.000%, 11/15/29 | No Opt. Call | A | 6,824,692 | ||
| 3,725 | 5.000%, 11/15/39 | 11/25 at 100.00 | A | 3,863,235 | ||
| 2,075 | Hesperia Community Redevelopment Agency, California, Tax Allocation Bonds, Series 2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured | 5/17 at 100.00 | BBB | 2,076,203 | ||
| 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 | A- | 1,783,023 | ||
| 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 | 1,080,480 | ||
| 625 | Indio, California, Special Tax Bonds, Community Facilities District 2004-3 Terra Lago, Improvement Area 1, Series 2015, 5.000%, 9/01/35 | 9/25 at 100.00 | N/R | 667,375 |
62 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 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+ | $431,440 | ||
| 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 | 815,399 | ||
| 1,090 | Irvine, California, Limited Obligation Improvement Bonds, Reassessment District 15-2, Series 2015, 5.000%, 9/02/42 | 9/25 at 100.00 | N/R | 1,155,858 | ||
| Irvine, California, Special Tax Bonds, Community Facilities District 2013-3 Great Park, Improvement Area 1, Refunding Series 2014: | ||||||
| 500 | 5.000%, 9/01/39 | 9/24 at 100.00 | N/R | 529,160 | ||
| 750 | 5.000%, 9/01/44 | 9/24 at 100.00 | N/R | 791,257 | ||
| 150 | Jurupa Public Financing Authority, California, Special Tax Revenue Bonds, Series 2015A, 5.000%, 9/01/23 | No Opt. Call | BBB+ | 171,974 | ||
| 790 | Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Canyon Hills Improvement Area A & C, Series 2014C, 5.000%, 9/01/40 | No Opt. Call | N/R | 833,458 | ||
| 2,000 | Lake Elsinore Public Financing Authority, California, Local Agency Revenue Bonds, Refunding Series 2015, 5.000%, 9/01/40 | 9/25 at 100.00 | N/R | 2,111,020 | ||
| 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 | 1,152,960 | ||
| 1,750 | 6.000%, 9/01/43 | 9/23 at 100.00 | N/R | 2,012,167 | ||
| 1,870 | Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Area Sheriff's Facilities Projects, Refunding Series 2004, 5.000%, 12/01/23 – SYNCORA GTY Insured | 5/17 at 100.00 | A | 1,876,732 | ||
| Lancaster Redevelopment Agency, California, Tax Allocation Bonds, Combined Fire Protection Facilities Project, Refunding Series 2004: | ||||||
| 800 | 5.250%, 12/01/17 – SYNCORA GTY Insured | 5/17 at 100.00 | A | 803,064 | ||
| 1,120 | 5.000%, 12/01/23 – SYNCORA GTY Insured | 5/17 at 100.00 | A | 1,124,032 | ||
| 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 | 239,065 | ||
| 1,000 | Lathrop, California, Limited Obligation Improvement Bonds, Crossroads Assessment District, Series 2015, 5.000%, 9/02/40 | 9/25 at 100.00 | N/R | 993,160 | ||
| 1,875 | Los Angeles County Metropolitan Transportation Authority, California, Measure R Sales Tax Revenue Bonds, Senior Series 2016A, 5.000%, 6/01/36 | 6/26 at 100.00 | AAA | 2,184,337 | ||
| Los Angeles County Metropolitan Transportation Authority, California, Proposition C Sales Tax Revenue Bonds, Senior Lien Series 2017A: | ||||||
| 15,075 | 5.000%, 7/01/39 | 7/27 at 100.00 | AA+ | 17,606,545 | ||
| 5,075 | 5.000%, 7/01/42 | 7/27 at 100.00 | AA+ | 5,912,578 | ||
| Los Angeles County Redevelopment Refunding Authority, California, Tax Allocation Revenue Bonds, Long Beach Redevelopment Agency Successor Agency Project Areas, Refunding Series 2015A: | ||||||
| 5,965 | 5.000%, 8/01/33 | 8/25 at 100.00 | AA- | 6,790,079 | ||
| 5,810 | 5.000%, 8/01/34 | 8/25 at 100.00 | AA- | 6,585,984 | ||
| 7,420 | 5.000%, 8/01/35 | 8/25 at 100.00 | AA- | 8,381,780 |
NUVEEN 63
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 255 | 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 | 5/17 at 100.00 | Aa3 | $256,191 | ||
| Menifee Union School District Public Financing Authority, California, Special Tax Revenue Bonds, Series 2016A: | ||||||
| 435 | 5.000%, 9/01/23 | No Opt. Call | N/R | 495,922 | ||
| 760 | 5.000%, 9/01/33 – BAM Insured | 9/25 at 100.00 | AA | 860,586 | ||
| 1,600 | 5.000%, 9/01/35 – BAM Insured | 9/25 at 100.00 | AA | 1,797,824 | ||
| 115 | 5.000%, 9/01/36 – BAM Insured | 9/25 at 100.00 | AA | 128,766 | ||
| 415 | Milpitas, California, Local Improvement District 20 Limited Obligation Bonds, Series 1998A, 5.700%, 9/02/18 | 3/17 at 103.00 | N/R | 434,501 | ||
| 1,505 | Modesto, California, Speical Tax Bonds, Community Faclities District 2004-1 Village One 2, Refunding Series 2014, 5.000%, 9/01/28 | 9/24 at 100.00 | BBB- | 1,683,102 | ||
| 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 | 9/17 at 100.00 | N/R | 1,504,534 | ||
| 1,500 | 5.875%, 9/01/43 | 9/17 at 100.00 | N/R | 1,557,075 | ||
| 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 | 750,187 | ||
| 5,455 | 7.000%, 8/01/32 | 8/21 at 100.00 | A | 6,547,418 | ||
| 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+ | 1,124,450 | ||
| 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+ | 4,766,531 | ||
| Oakland Redevelopment Successor Agency, California, Tax Allocation Bonds, Refunding Subordinated Series 2015-TE: | ||||||
| 3,250 | 5.000%, 9/01/35 – AGM Insured | 9/25 at 100.00 | AA | 3,626,317 | ||
| 3,215 | 5.000%, 9/01/36 – AGM Insured | 9/25 at 100.00 | AA | 3,577,202 | ||
| 260 | Orange County, California, Special Tax Bonds, Community Facilities District 2015-1 Esencia Village, Series 2015A, 5.250%, 8/15/45 | 8/25 at 100.00 | N/R | 280,426 | ||
| 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 | 5/17 at 100.00 | CCC+ | 2,352,700 | ||
| 430 | 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 | 462,366 | ||
| Patterson Public Financing Authority, California, Revenue Bonds, Community Facilities District 2001-1, Senior Series 2013A: | ||||||
| 2,680 | 5.250%, 9/01/30 | 9/23 at 100.00 | N/R | 2,855,513 | ||
| 2,405 | 5.750%, 9/01/39 | 9/23 at 100.00 | N/R | 2,566,448 | ||
| Rancho Cucamonga Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Rancho Redevelopment Project, Series 2014: | ||||||
| 1,600 | 5.000%, 9/01/30 | 9/24 at 100.00 | AA | 1,819,072 | ||
| 2,800 | 5.000%, 9/01/31 | 9/24 at 100.00 | AA | 3,169,964 | ||
| 2,400 | 5.000%, 9/01/32 | 9/24 at 100.00 | AA | 2,703,360 |
64 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 1,100 | Rancho Cucamonga, California, Limited Obligation Improvement Bonds, Masi Plaza Assessment District 93-1, Series 1997, 6.250%, 9/02/22 | 3/17 at 100.00 | N/R | $1,120,427 | ||
| 1,115 | 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 | 1,202,059 | ||
| Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Interstate 215 Corridor Redevelopment Project Area, Series 2010E: | ||||||
| 2,950 | 6.250%, 10/01/30 | 10/20 at 100.00 | A- | 3,375,744 | ||
| 480 | 6.500%, 10/01/40 | 10/20 at 100.00 | A- | 554,304 | ||
| 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 | 118,631 | ||
| 6,470 | Riverside County Transportation Commission, California, Sales Tax Revenue Bonds, Limited Tax Series 2013A, 5.250%, 6/01/39 | 6/23 at 100.00 | AA+ | 7,482,426 | ||
| Roseville, California, Special Tax Bonds, Community Facilities District 1 Westpark, Refunding Series 2015: | ||||||
| 1,000 | 5.000%, 9/01/28 | 9/25 at 100.00 | N/R | 1,101,300 | ||
| 1,000 | 5.000%, 9/01/29 | 9/25 at 100.00 | N/R | 1,093,890 | ||
| 1,000 | 5.000%, 9/01/30 | 9/25 at 100.00 | N/R | 1,090,830 | ||
| 3,500 | Sacramento Area Flood Control Agency, California, Consolidated Capital Assessment District 2 Bonds, Series 2016A, 5.000%, 10/01/41 | 10/26 at 100.00 | AA | 3,998,085 | ||
| 1,195 | Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A, 5.400%, 11/01/20 – AMBAC Insured | No Opt. Call | A+ | 1,297,531 | ||
| 350 | Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993B, 5.400%, 11/01/20 | No Opt. Call | A+ | 377,370 | ||
| 200 | San Clemente, California, Special Tax Revenue Bonds, Community Facilities District 2006-1 Marblehead Coastal, Series 2015, 5.000%, 9/01/40 | 9/25 at 100.00 | N/R | 211,102 | ||
| 450 | San Francisco City and County Redevelopment Agency Successor Agency, California, Special Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements, Refunding Series 2014, 5.000%, 8/01/39 | No Opt. Call | N/R | 474,799 | ||
| 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 | 2,146,922 | ||
| 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 | 5,868,311 | ||
| 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 | 3,844,260 | ||
| San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Refunding Series 2006D: | ||||||
| 1,900 | 5.000%, 8/01/18 – AMBAC Insured | 8/17 at 100.00 | BBB+ | 1,933,478 | ||
| 645 | 5.000%, 8/01/19 – AMBAC Insured | 8/17 at 100.00 | BBB+ | 656,339 | ||
| 540 | 5.000%, 8/01/21 – AMBAC Insured | 8/17 at 100.00 | BBB+ | 549,461 | ||
| 2,990 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2003, 5.000%, 8/01/19 – FGIC Insured | 5/17 at 100.00 | AA- | 3,000,943 | ||
| 350 | San Jose Redevelopment Agency, California, Tax Allocation Bonds, Merged Area Redevelopment Project, Series 2005A, 5.000%, 8/01/20 – NPFG Insured | 5/17 at 100.00 | AA- | 351,274 | ||
| 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 | AA- | 600,284 |
NUVEEN 65
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| 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+ | $1,151,304 | ||
| 480 | 6.500%, 8/01/23 | 8/18 at 100.00 | BBB+ | 515,789 | ||
| 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 | AA- | 2,501,232 | ||
| 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 | 204,440 | ||
| 105 | Temecula Public Financing Authority, California, Special Tax Bonds, Community Facilities District 16-01, Series 2017, 6.125%, 9/01/37 (WI/DD, Settling 3/16/17) | 9/27 at 100.00 | N/R | 105,196 | ||
| 1,015 | Temecula Redevelopment Agency, California, Redevelopment Project 1 Tax Allocation Housing Bonds Series 2011A, 6.750%, 8/01/31 | 8/21 at 100.00 | BBB+ | 1,212,357 | ||
| Tustin, California, Special Tax Bonds, Community Facilities District 06-1 Tustin Legacy/Columbus Villages, Refunding Series 2015A: | ||||||
| 500 | 5.000%, 9/01/35 | 9/25 at 100.00 | BBB+ | 546,690 | ||
| 395 | 5.000%, 9/01/37 | 9/25 at 100.00 | BBB+ | 429,484 | ||
| Tustin, California,Special Tax Bonds, Community Facilities District 14-1 Tustin Legacy/Standard Pacific, Refunding Series 2015A: | ||||||
| 50 | 5.000%, 9/01/40 | 9/25 at 100.00 | N/R | 53,057 | ||
| 100 | 5.000%, 9/01/45 | 9/25 at 100.00 | N/R | 105,820 | ||
| 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+ | 1,224,040 | ||
| 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+ | 285,540 | ||
| 25 | Vernon Redevelopment Agency, California, Tax Allocation Bonds, Industrial Redevelopment Project, Series 2005, 5.000%, 9/01/35 – NPFG Insured | 5/17 at 100.00 | AA- | 25,015 | ||
| Vista, California, Community Development Commission Taxable Non-Housing Tax Allocation Revenue Bonds, Vista Redevlopment Project, Series 2011: | ||||||
| 7,600 | 6.000%, 9/01/33 | 9/21 at 100.00 | AA- | 8,822,384 | ||
| 7,920 | 6.125%, 9/01/37 | 9/21 at 100.00 | AA- | 9,236,146 | ||
| 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 | 1,779,316 | ||
| 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- | 376,192 | ||
| 1,615 | Yuba City Redevelopment Agency, California, Tax Allocation Bonds, Redevelopment Project, Series 2007, 5.250%, 9/01/39 – RAAI Insured | 9/17 at 100.00 | AA | 1,628,631 | ||
| 268,040 | Total Tax Obligation/Limited | 293,833,118 | ||||
| Transportation–5.1% | ||||||
| Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Second Subordinate Lien Series 2016B: | ||||||
| 2,000 | 5.000%, 10/01/34 | 10/26 at 100.00 | BBB+ | 2,225,340 | ||
| 2,570 | 5.000%, 10/01/37 | 10/26 at 100.00 | BBB+ | 2,835,430 | ||
| 50 | Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Subordinate Lien Series 2016A, 5.000%, 10/01/25 | No Opt. Call | BBB+ | 58,327 |
66 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Transportation (continued) | ||||||
| $ 3,780 | Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Junior Lien Series 2013C, 6.500%, 1/15/43 | 1/24 at 100.00 | BB+ | $4,502,282 | ||
| Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Bonds, Refunding Series 2013A: | ||||||
| 8,335 | 5.750%, 1/15/46 | 1/24 at 100.00 | BBB- | 9,525,655 | ||
| 8,415 | 6.000%, 1/15/53 | 1/24 at 100.00 | BBB- | 9,612,707 | ||
| 4,000 | Guam International Airport Authority, Revenue Bonds, Series 2013C, 5.000%, 10/01/21 (Alternative Minimum Tax) | No Opt. Call | BBB | 4,350,520 | ||
| Long Beach, California, Harbor Revenue Bonds, Series 2015D: | ||||||
| 1,000 | 5.000%, 5/15/33 | 5/25 at 100.00 | AA | 1,154,840 | ||
| 2,785 | 5.000%, 5/15/34 | 5/25 at 100.00 | AA | 3,203,029 | ||
| 3,135 | Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Senior Lien Series 2015D, 5.000%, 5/15/35 (Alternative Minimum Tax) | 5/25 at 100.00 | AA | 3,522,768 | ||
| Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Senior Lien Series 2015E: | ||||||
| 250 | 5.000%, 5/15/32 | 5/25 at 100.00 | AA | 289,900 | ||
| 600 | 5.000%, 5/15/33 | 5/25 at 100.00 | AA | 692,430 | ||
| 1,305 | 5.000%, 5/15/35 | 5/25 at 100.00 | AA | 1,496,770 | ||
| 355 | 5.000%, 5/15/41 | 5/25 at 100.00 | AA | 404,118 | ||
| Palm Springs Financing Authority, California, Palm Springs International Airport Revenue Bonds, Series 2006: | ||||||
| 285 | 5.450%, 7/01/20 (Alternative Minimum Tax) | 5/17 at 100.00 | N/R | 285,188 | ||
| 170 | 5.550%, 7/01/28 (Alternative Minimum Tax) | 5/17 at 100.00 | N/R | 170,122 | ||
| Riverside County Transportation Commission, California, Toll Revenue Senior Lien Bonds, Series 2013A: | ||||||
| 3,500 | 5.750%, 6/01/44 | 6/23 at 100.00 | BBB- | 3,928,505 | ||
| 8,250 | 5.750%, 6/01/48 | 6/23 at 100.00 | BBB- | 9,249,157 | ||
| 6,500 | San Francisco Airports Commission, California, Revenue Bonds, San Francisco International Airport, Second Governmental Purpose Series 2016C, 5.000%, 5/01/46 | 5/26 at 100.00 | A+ | 7,351,825 | ||
| 57,285 | Total Transportation | 64,858,913 | ||||
| U.S. Guaranteed–11.3% (6) | ||||||
| Antelope Valley Healthcare District, California, Revenue Bonds, Series 2011A: | ||||||
| 1,810 | 7.000%, 3/01/31 (Pre-refunded 3/01/21) | 3/21 at 100.00 | N/R (6) | 2,175,023 | ||
| 2,000 | 7.250%, 3/01/36 (Pre-refunded 3/01/21) | 3/21 at 100.00 | N/R (6) | 2,422,600 | ||
| 3,000 | Brentwood Infrastructure Financing Authority, California, Water Revenue Bonds, Series 2008, 5.750%, 7/01/38 (Pre-refunded 7/01/18) | 7/18 at 100.00 | AA (6) | 3,199,830 | ||
| 1,000 | California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series 2008A, 5.000%, 8/01/28 (Pre-refunded 8/01/18) | 8/18 at 100.00 | A3 (6) | 1,059,920 | ||
| 2,010 | California Municipal Finance Authority, Certificates of Participation, Community Hospitals of Central California Obligated Group, Series 2009, 5.500%, 2/01/39 (Pre-refunded 2/01/19) | 2/19 at 100.00 | A- (6) | 2,184,689 | ||
| 1,000 | California Municipal Finance Authority, Revenue Bonds, Harbor Regional Center Project, Series 2009, 8.000%, 11/01/29 (Pre-refunded 11/01/19) | 11/19 at 100.00 | A3 (6) | 1,180,870 |
NUVEEN 67
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (6) (continued) | ||||||
| $ 2,000 | California Municipal Finance Authority, Senior Living Revenue Bonds, Pilgrim Place at Claremont, Series 2009A, 6.125%, 5/15/39 (Pre-refunded 5/15/19) | 5/19 at 100.00 | AA- (6) | $2,225,280 | ||
| 695 | California State Public Works Board, Lease Revenue Bonds, California State University, J. Paul Leonard & Sutro Library, Series 2009J, 5.500%, 11/01/26 (Pre-refunded 11/01/19) | 11/19 at 100.00 | AAA | 776,614 | ||
| California State Public Works Board, Lease Revenue Bonds, California State University, Various University Projects, Series 2012D: | ||||||
| 3,000 | 5.000%, 9/01/33 (Pre-refunded 9/01/22) | 9/22 at 100.00 | AAA | 3,553,110 | ||
| 4,000 | 5.000%, 9/01/34 (Pre-refunded 9/01/22) | 9/22 at 100.00 | Aaa | 4,737,480 | ||
| 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 | 1,353,775 | ||
| 2,000 | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Series 2009-I, 6.375%, 11/01/34 (Pre-refunded 11/01/19) | 11/19 at 100.00 | AAA | 2,280,900 | ||
| 2,000 | California Statewide Communities Development Authority, Health Facility Revenue Bonds, Community Hospital of the Monterey Peninsula, Series 2011A, 6.000%, 6/01/33 (Pre-refunded 6/01/21) | 6/21 at 100.00 | AA- (6) | 2,389,800 | ||
| 6,500 | California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health System, Series 2007A, 5.125%, 7/15/31 (Pre-refunded 7/15/17) | 7/17 at 100.00 | AA+ (6) | 6,611,150 | ||
| 410 | California Statewide Communities Development Authority, Student Housing Revenue Bonds, University of California, Irvine East Campus Apartments, Phase II CHF-Irvine, LLC, Seris 2008, 5.500%, 5/15/26 (Pre-refunded 5/15/18) | 5/18 at 100.00 | Aaa | 433,563 | ||
| 2,155 | California Statewide Community Development Authority, Health Revenue Bonds, Enloe Medical Center, Refunding Series 2008A, 6.250%, 8/15/28 (Pre-refunded 8/15/18) | 8/18 at 100.00 | AA- (6) | 2,325,590 | ||
| 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 | AA- (6) | 512,790 | ||
| 400 | 5.000%, 10/01/27 (Pre-refunded 10/01/17) | 10/17 at 100.00 | AA- (6) | 410,232 | ||
| 2,010 | California Statewide Community Development Authority, Revenue Bonds, Methodist Hospital Project, Series 2009, 6.750%, 2/01/38 (Pre-refunded 8/01/19) | 8/19 at 100.00 | N/R (6) | 2,284,023 | ||
| 8,225 | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007A, 5.750%, 7/01/47 (Pre-refunded 7/01/18) – FGIC Insured | 7/18 at 100.00 | AA- (6) | 8,769,413 | ||
| 1,100 | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007B, 5.500%, 7/01/27 (Pre-refunded 7/01/18) – FGIC Insured | 7/18 at 100.00 | AA- (6) | 1,169,146 | ||
| 500 | California Statewide Community Development Authority, Revenue Bonds, St. Joseph Health System, Series 2007C, 5.500%, 7/01/27 (Pre-refunded 7/01/18) – FGIC Insured | 7/18 at 100.00 | AA- (6) | 531,430 | ||
| 855 | Central Unified School District, Fresno County, California, General Obligation Bonds, Election 2008 Series 2009A, 5.625%, 8/01/33 (Pre-refunded 8/01/19) – AGC Insured | 8/19 at 100.00 | AA (6) | 949,896 | ||
| 500 | Corona-Norco Unified School District, Riverside County, California, General Obligation Bonds, Election 2006 Series 2009B, 5.375%, 2/01/34 (Pre-refunded 8/01/18) – AGC Insured | 8/18 at 100.00 | AA (6) | 532,540 | ||
| 1,705 | Cupertino Union School District, Santa Clara County, California, General Obligation Bonds, Series 2010D, 0.000%, 8/01/30 (Pre-refunded 8/01/20) | 8/20 at 52.75 | AA+ (6) | 859,030 | ||
| Desert Sands Unified School District, Riverside County, California, General Obligation Bonds, Election 2001, Series 2008: | ||||||
| 365 | 5.250%, 8/01/23 (Pre-refunded 8/01/18) | 8/18 at 100.00 | Aa2 (6) | 388,108 | ||
| 100 | 5.000%, 8/01/27 (Pre-refunded 8/01/18) | 8/18 at 100.00 | Aa2 (6) | 105,978 |
68 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (6) (continued) | ||||||
| $ 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 (Pre-refunded 6/01/20) | 6/20 at 100.00 | N/R (6) | $1,153,950 | ||
| 950 | Grossmont Union High School District, San Diego County, California, General Obligation Bonds, Election 2008 Series 2009A, 5.500%, 8/01/31 (Pre-refunded 8/01/19) | 8/19 at 100.00 | A+ (6) | 1,052,600 | ||
| 100 | Irvine Unified School District Financing Authority, Orange County, California, Special Tax Bonds, Group II, Series 2006A, 5.000%, 9/01/26 (Pre-refunded 9/01/18) | 9/18 at 100.00 | N/R (6) | 106,164 | ||
| Jurupa Community Services District, California, Special Tax Bonds, Community Facilities District 25 Eastvale Area, Series 2008A: | ||||||
| 1,000 | 8.375%, 9/01/28 (Pre-refunded 9/01/18) | 9/18 at 100.00 | N/R (6) | 1,113,070 | ||
| 3,205 | 8.875%, 9/01/38 (Pre-refunded 9/01/18) | 9/18 at 100.00 | N/R (6) | 3,591,363 | ||
| 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 (6) | 324,889 | ||
| 3,065 | Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series 2008A, 8.250%, 12/01/38 (Pre-refunded 12/01/17) | 12/17 at 100.00 | BB (6) | 3,238,111 | ||
| 470 | Long Beach Unified School District, Los Angeles County, California, General Obligation Bonds, Election of 2008, Series 2009A, 5.500%, 8/01/29 (Pre-refunded 8/01/19) | 8/19 at 100.00 | N/R (6) | 520,760 | ||
| 510 | Los Angeles Harbors Department, California, Revenue Bonds, Series 1988, 7.600%, 10/01/18 (ETM) | No Opt. Call | AA+ (6) | 544,527 | ||
| 2,080 | Los Angeles, California, Wastewater System Revenue Bonds, Refunding Series 2009A, 5.750%, 6/01/26 (Pre-refunded 6/01/19) | 6/19 at 100.00 | N/R (6) | 2,299,710 | ||
| 805 | Oakdale Irrigation District, California, Certificates of Participation, Water Facilities Project, Series 2009, 5.500%, 8/01/34 (Pre-refunded 8/01/19) | 8/19 at 100.00 | AA (6) | 891,940 | ||
| 7,600 | Palomar Pomerado Health Care District, California, Certificates of Participation, Series 2009, 6.750%, 11/01/39 (Pre-refunded 11/01/19) | 11/19 at 100.00 | Ba1 (6) | 8,720,620 | ||
| 3,355 | Pittsburg Redevelopment Agency, California, Tax Allocation Bonds, Los Medanos Community Development Project, Refunding Series 2008A, 6.500%, 9/01/28 (Pre-refunded 9/01/18) | 9/18 at 100.00 | BB+ (6) | 3,640,041 | ||
| 4,000 | Pittsburg Unified School District Financing Authority, Contra Costa County, California, General Obligation Bonds, Pittsburg Unified School District Bond Program, Series 2011, 0.000%, 9/01/38 (Pre-refunded 9/01/21) – AGM Insured | 9/21 at 27.77 | Aa3 (6) | 1,036,120 | ||
| 1,045 | Rancho Santa Fe CSD Financing Authority, California, Revenue Bonds, Superior Lien Series 2011A, 5.750%, 9/01/30 (Pre-refunded 9/01/21) | 9/21 at 100.00 | A- (6) | 1,246,110 | ||
| Rowland Water District, California, Certificates of Participation, Recycled Water Project, Series 2008: | ||||||
| 565 | 5.750%, 12/01/24 (Pre-refunded 12/01/18) | 12/18 at 100.00 | A+ (6) | 613,341 | ||
| 480 | 5.750%, 12/01/25 (Pre-refunded 12/01/18) | 12/18 at 100.00 | A+ (6) | 521,069 | ||
| 500 | 6.250%, 12/01/39 (Pre-refunded 12/01/18) | 12/18 at 100.00 | A+ (6) | 547,135 | ||
| 1,265 | San Bernardino Community College District, California, General Obligation Bonds, Election 2002 Series 2008A, 6.500%, 8/01/27 (Pre-refunded 8/01/18) | 8/18 at 100.00 | Aa2 (6) | 1,367,263 | ||
| 2,000 | San Diego Unified School District, San Diego County, California, General Obligation Bonds, Series 2009A, 0.000%, 7/01/33 (Pre-refunded 7/01/24) (5) | 7/24 at 100.00 | Aa2 (6) | 2,217,080 | ||
| 525 | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2009C, 6.375%, 8/01/32 (Pre-refunded 8/01/19) | 8/19 at 100.00 | A- (6) | 592,683 |
NUVEEN 69
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (6) (continued) | ||||||
| $ 1,185 | San Francisco Redevelopment Finance Authority, California, Tax Allocation Revenue Bonds, Mission Bay North Redevelopment Project, Series 2011C, 6.750%, 8/01/41 (Pre-refunded 2/01/21) | 2/21 at 100.00 | A- (6) | $1,433,435 | ||
| San Francisco Redevelopment Financing Authority, California, Tax Allocation Revenue Bonds, Mission Bay South Redevelopment Project, Series 2011D: | ||||||
| 80 | 7.000%, 8/01/33 (Pre-refunded 2/01/21) | 2/21 at 100.00 | BBB+ (6) | 97,501 | ||
| 105 | 7.000%, 8/01/41 (Pre-refunded 2/01/21) | 2/21 at 100.00 | BBB+ (6) | 127,970 | ||
| 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 (6) | 1,556,697 | ||
| 1,000 | Santa Barbara Community College District, California, General Obligation Bonds, Election 2008 Series 2008A, 5.250%, 8/01/27 (Pre-refunded 8/01/18) | 8/18 at 100.00 | AA+ (6) | 1,063,310 | ||
| 4,500 | Santa Clara County Financing Authority, California, Insured Revenue Bonds, El Camino Hospital, Series 2007A, 5.750%, 2/01/41 (Pre-refunded 8/01/17) – AMBAC Insured | 8/17 at 100.00 | A+ (6) | 4,597,875 | ||
| 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 (Pre-refunded 9/01/19) | 9/19 at 100.00 | A+ (6) | 2,118,596 | ||
| 2,805 | 7.000%, 9/01/36 (Pre-refunded 9/01/19) | 9/19 at 100.00 | A+ (6) | 3,219,831 | ||
| 3,500 | Santee Community Development Commission, California, Santee Redevelopment Project Tax Allocation Bonds, Series 2011A, 6.500%, 8/01/26 (Pre-refunded 2/01/21) | 2/21 at 100.00 | A (6) | 4,197,375 | ||
| 8,500 | Tahoe Forest Hospital District, Placer and Nevada Counties, California, General Obligation Bonds, Series 2010B, 5.500%, 8/01/35 (Pre-refunded 8/01/18) | 8/18 at 100.00 | Aa3 (6) | 9,066,950 | ||
| 1,225 | Turlock Public Financing Authority, California, Tax Allocation Revenue Bonds, Series 2011, 7.000%, 9/01/25 (Pre-refunded 3/01/21) | 3/21 at 100.00 | A- (6) | 1,495,443 | ||
| 2,000 | Tustin, California, Special Tax Bonds, Community Facilities District 07-1 Tustin Legacy-Retail Center, Series 2007, 6.000%, 9/01/37 (Pre-refunded 9/01/17) | 9/17 at 100.00 | N/R (6) | 2,053,860 | ||
| University of California, General Revenue Bonds, Series 2009O: | ||||||
| 925 | 5.250%, 5/15/39 (Pre-refunded 5/15/19) | 5/19 at 100.00 | N/R (6) | 1,010,868 | ||
| 1,620 | 5.250%, 5/15/39 (Pre-refunded 5/15/19) | 5/19 at 100.00 | N/R (6) | 1,770,385 | ||
| 3,145 | 5.250%, 5/15/39 (Pre-refunded 5/15/19) | 5/19 at 100.00 | AA (6) | 3,436,950 | ||
| 1,555 | Victor Valley Community College District, San Bernardino County, California, General Obligation Bonds, Election of 2008 Series 2009A, 5.000%, 8/01/31 (Pre-refunded 8/01/19) | 8/19 at 100.00 | Aa2 (6) | 1,704,358 | ||
| Westminster Redevelopment Agency, California, Tax Allocation Bonds, Commercial Redevelopment Project 1, Police Facility Subordinate Series 2009: | ||||||
| 10,710 | 6.250%, 11/01/39 (Pre-refunded 11/01/19) | 11/19 at 100.00 | A2 (6) | 12,182,089 | ||
| 2,395 | 5.750%, 11/01/45 (Pre-refunded 11/01/19) | 11/19 at 100.00 | A2 (6) | 2,692,674 | ||
| 134,510 | Total U.S. Guaranteed | 144,587,493 | ||||
| Utilities–1.8% | ||||||
| 1,855 | California Statewide Communities Development Authority, Certificates of Participation, Rio Bravo Fresno Project, Refunding Series 1999A, 6.500%, 12/01/18 | 6/17 at 100.00 | N/R | 1,848,211 | ||
| 1,985 | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2014D, 5.000%, 7/01/44 | 7/24 at 100.00 | Aa2 | 2,250,375 | ||
| 3,300 | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2016A, 5.000%, 7/01/40 | 1/26 at 100.00 | Aa2 | 3,781,503 |
70 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Utilities (continued) | ||||||
| $ 4,165 | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2016B, 5.000%, 7/01/37 | 1/26 at 100.00 | Aa2 | $4,783,127 | ||
| 8,870 | Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series 2017A, 5.000%, 7/01/42 | 1/27 at 100.00 | Aa2 | 10,273,411 | ||
| 20,175 | Total Utilities | 22,936,627 | ||||
| Water and Sewer–9.2% | ||||||
| 2,400 | California Department of Water Resources, Central Valley Project Water System Revenue Bonds, Refunding Series 2016AW, 5.000%, 12/01/35 | 12/26 at 100.00 | AAA | 2,836,776 | ||
| 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 | 5,193,000 | ||
| 5,060 | 5.000%, 11/21/45 (Alternative Minimum Tax) | No Opt. Call | Baa3 | 5,260,224 | ||
| 2,000 | California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, San Diego County Water Authority Desalination Project Pipeline, Series 2012, 5.000%, 11/21/45 | No Opt. Call | Baa3 | 2,000,940 | ||
| 355 | California Statewide Community Development Authority, Water and Wastewater Revenue Bonds, Pooled Financing Program, Series 2003A, 5.250%, 10/01/23 – AGM Insured | 5/17 at 100.00 | AA | 356,374 | ||
| 870 | Compton, California, Sewer Revenue Bonds, Series 1998 Refunding, 5.375%, 9/01/23 – NPFG Insured | 5/17 at 100.00 | AA- | 871,218 | ||
| 5,695 | East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, Water System Revenue Bonds, Refunding Series 2015A, 5.000%, 6/01/37 | 6/25 at 100.00 | AAA | 6,567,474 | ||
| 1,500 | Eastern Municipal Water District Financing Authority, California, Water and Wastewater Revenue Bonds, Series 2015B, 5.000%, 7/01/40 | 7/25 at 100.00 | AA+ | 1,692,720 | ||
| 3,495 | Eastern Municipal Water District, California, Water and Wastewater Revenue Bonds, Refunding Series 2016A, 5.000%, 7/01/42 | 7/26 at 100.00 | AA+ | 4,011,561 | ||
| 6,000 | Irvine Ranch Water District, California, Certificates of Participation, Irvine Ranch Water District Series 2016, 5.000%, 3/01/41 | 9/26 at 100.00 | AAA | 6,954,000 | ||
| Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Refunding Series 2016B: | ||||||
| 5,000 | 5.000%, 7/01/29 | 1/26 at 100.00 | AA+ | 5,942,350 | ||
| 3,460 | 5.000%, 7/01/33 | 1/26 at 100.00 | AA+ | 4,031,765 | ||
| 4,955 | 5.000%, 7/01/35 | 1/26 at 100.00 | AA+ | 5,727,782 | ||
| 10,000 | Los Angeles, California, Wastewater System Revenue Bonds, Green Series 2015C, 5.000%, 6/01/45 | 6/25 at 100.00 | AA+ | 11,320,000 | ||
| Los Angeles, California, Wastewater System Revenue Bonds, Refunding Green Series 2015A: | ||||||
| 5,000 | 5.000%, 6/01/31 | 6/25 at 100.00 | AA+ | 5,841,950 | ||
| 5,000 | 5.000%, 6/01/32 | 6/25 at 100.00 | AA+ | 5,809,800 | ||
| 1,665 | Los Angeles, California, Wastewater System Revenue Bonds, Refunding Series 2009A, 5.750%, 6/01/26 | No Opt. Call | AA+ | 1,824,707 | ||
| 2,600 | Los Angeles, California, Wastewater System Revenue Bonds, Refunding Subordinate Lien Series 2013A, 5.000%, 6/01/35 | 6/23 at 100.00 | AA | 2,943,720 | ||
| 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 | 1,091,750 | ||
| 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+ | 1,782,602 |
NUVEEN 71
Nuveen California Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Water and Sewer (continued) | ||||||
| $ 1,950 | San Diego Public Facilities Financing Authority, California, Sewerage Revenue Bonds, Refunding Senior Lien Series 2016A, 5.000%, 5/15/35 | 5/26 at 100.00 | AA+ | $2,255,039 | ||
| San Diego Public Facilities Financing Authority, California, Water Utility Revenue Bonds, Refunding Subordinate Lien Series 2016B: | ||||||
| 4,000 | 5.000%, 8/01/30 | 8/26 at 100.00 | Aa3 | 4,760,360 | ||
| 6,700 | 5.000%, 8/01/31 | 8/26 at 100.00 | Aa3 | 7,913,504 | ||
| 7,330 | 5.000%, 8/01/32 | 8/26 at 100.00 | Aa3 | 8,611,137 | ||
| 5,245 | San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Refunding Series 2016A, 5.000%, 11/01/35 | 11/26 at 100.00 | AA- | 6,129,622 | ||
| 4,510 | Santa Clara Valley Water District, California, Water System Revenue Bonds, Refunding Series 2016A, 5.000%, 6/01/41 | 12/25 at 100.00 | Aa1 | 5,192,498 | ||
| 102,560 | Total Water and Sewer | 116,922,873 | ||||
| $ 1,202,110 | Total Long-Term Investments (cost $1,197,433,883) | 1,260,788,186 |
| Borrowings–(0.4)% | (5,000,000) | |||||
| Other Assets Less Liabilities–1.4% | 17,714,436 | |||||
| Net Assets–100% | $1,273,502,622 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm. | |
| (3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm. | |
| (4) | The coupon for this security increased 0.25% effective January 1, 2016 and increased an additional 0.25% effective May 11, 2016. | |
| (5) | Step-up coupon. The rate shown is the coupon as of the end of the reporting period. | |
| (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. | |
| (ETM) | Escrowed to maturity. | |
| (WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
72 NUVEEN
Nuveen California Intermediate Municipal Bond Fund
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| LONG-TERM INVESTMENTS–102.5% | ||||||
| MUNICIPAL BONDS–102.5% | ||||||
| Consumer Staples–6.1% | ||||||
| $ 320 | Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed Bonds, Series 2007A-1, 5.000%, 6/01/33 | 6/17 at 100.00 | B- | $ 320,006 | ||
| Education and Civic Organizations–6.4% | ||||||
| 15 | California Educational Facilities Authority, Revenue Bonds, Chapman University, Series 2015, 5.000%, 4/01/27 | 4/25 at 100.00 | A2 | 17,496 | ||
| 175 | California Infrastructure and Economic Development Bank, Revenue Bonds, Salvation Army Western Territory, Refunding Series 2016, 5.000%, 9/01/27 | 9/26 at 100.00 | A1 | 207,800 | ||
| 100 | California School Finance Authority, School Facility Revenue Bonds, Alliance for College-Ready Public Schools Project, Series 2016C, 5.000%, 7/01/21 | No Opt. Call | BBB | 108,692 | ||
| 290 | Total Education and Civic Organizations | 333,988 | ||||
| Health Care–17.2% | ||||||
| 60 | California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 2015, 5.000%, 11/01/22 | No Opt. Call | BBB- | 67,051 | ||
| 100 | California Municipal Finance Authority, Revenue Bonds, NorthBay Healthcare Group, Series 2017A, 5.000%, 11/01/25 | No Opt. Call | BBB- | 111,821 | ||
| 100 | California Public Finance Authority, Revenue Bonds, Henry Mayo Newhall Hospital, Series 2017, 5.000%, 10/15/23 | No Opt. Call | BBB- | 112,016 | ||
| 125 | California Statewide Communities Development Authority, California, Redlands Community Hospital, Revenue Bonds, Series 2016, 5.000%, 10/01/25 | No Opt. Call | A- | 143,044 | ||
| 100 | California Statewide Communities Development Authority, California, Revenue Bonds, Loma Linda University Medical Center, Series 2016A, 5.000%, 12/01/28 | 6/26 at 100.00 | BB+ | 108,070 | ||
| 200 | California Statewide Communities Development Authority, Revenue Bonds, Huntington Memorial Hospital, Refunding Series 2014B, 5.000%, 7/01/25 | 7/24 at 100.00 | A- | 230,590 | ||
| Marysville, California, Revenue Bonds, Fremont-Rideout Health Group, Series 2011: | ||||||
| 100 | 5.250%, 1/01/28 | No Opt. Call | BBB- | 100,666 | ||
| 30 | 5.000%, 1/01/31 | 1/21 at 100.00 | BBB- | 29,411 | ||
| 815 | Total Health Care | 902,669 | ||||
| Tax Obligation/Limited–36.6% | ||||||
| 200 | California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Refunding Series 2016D, 5.000%, 4/01/27 | 10/26 at 100.00 | A+ | 240,328 | ||
| 210 | Corona-Norco Unified School District, Riverside County, California, Special Tax Bonds, Community Facilities District 98-1, Refunding Series 2013, 5.000%, 9/01/27 | 9/23 at 100.00 | A- | 237,491 | ||
| 100 | Indian Wells Redevelopment Agency Sucessor Agency, California, Tax Allocation Bonds, Consolidated Whitewater Project Area, Refunding Subordinate Series 2015A, 5.000%, 9/01/23 – AGM Insured | No Opt. Call | AA | 116,869 | ||
| 50 | Indio, California, Special Tax Bonds, Community Facilities District 2004-3 Terra Lago, Improvement Area 1, Series 2015, 5.000%, 9/01/25 | No Opt. Call | N/R | 56,063 |
NUVEEN 73
Nuveen California Intermediate Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 100 | Jurupa Public Financing Authority, California, Special Tax Revenue Bonds, Series 2015A, 5.000%, 9/01/23 | No Opt. Call | BBB+ | $114,649 | ||
| 100 | Poway Unified School District Public Financing Authority, California, Special Tax Revenue Bonds, Refunding Series 2017A, 5.000%, 9/01/24 | No Opt. Call | BBB+ | 114,973 | ||
| 200 | San Diego Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Refunding Series 2016A, 5.000%, 9/01/25 | No Opt. Call | AA | 243,120 | ||
| 100 | San Francisco City and County Redevelopment Agency Successor Agency, California, Special Tax Bonds, Community Facilities District 7, Hunters Point Shipyard Phase One Improvements, Refunding Series 2014, 5.000%, 8/01/26 | No Opt. Call | N/R | 109,697 | ||
| 65 | San Francisco City and County Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Mission Bay North Redevelopment Project, Refunding Series 2016A, 5.000%, 8/01/26 | No Opt. Call | A | 78,191 | ||
| 25 | San Mateo Redevelopment Agency Successor Agency, California, Tax Allocation Bonds, Refunding Series 2015A, 5.000%, 8/01/27 | 8/25 at 100.00 | A | 29,141 | ||
| 200 | Santee Community Development Commission Successor Agency, California, Tax Allocation Bonds, Santee Community Redevelopment Project, Refunding Series 2016A, 5.000%, 8/01/26 – BAM Insured | No Opt. Call | AA | 235,122 | ||
| 100 | Saugus/Hart School Facilities Financing Authority, California, Special Tax Bonds, Community Facilities District 2006-1, Series 2016, 5.000%, 9/01/26 | 3/26 at 100.00 | N/R | 113,599 | ||
| 200 | Stockton Redevelopment Agency, California, Tax Allocation Bonds, Refunding Series 2016A, 5.000%, 9/01/26 – AGM Insured | No Opt. Call | AA | 233,236 | ||
| 1,650 | Total Tax Obligation/Limited | 1,922,479 | ||||
| Transportation–2.2% | ||||||
| 100 | Alameda Corridor Transportation Authority, California, Revenue Bonds, Refunding Subordinate Lien Series 2016A, 5.000%, 10/01/25 | No Opt. Call | BBB+ | 116,653 | ||
| U.S. Guaranteed–21.0% (4) | ||||||
| 200 | California Health Facilities Financing Authority, Revenue Bonds, Providence Health & Services, Refunding Series 2008C, 6.250%, 10/01/28 (Pre-refunded 10/01/18) | 10/18 at 100.00 | AA- (4) | 216,986 | ||
| 200 | California State University, Systemwide Revenue Bonds, Series 2009A, 5.250%, 11/01/29 (Pre-refunded 5/01/19) | 5/19 at 100.00 | Aa2 (4) | 218,408 | ||
| 200 | Desert Sands Unified School District, Riverside County, California, General Obligation Bonds, Election 2001, Series 2008, 5.000%, 8/01/27 (Pre-refunded 8/01/18) | 8/18 at 100.00 | Aa2 (4) | 211,956 | ||
| 200 | Ohlone Community College District, Alameda County, California, General Obligation Bonds, Election 2010 Series 2011A-1, 5.250%, 8/01/41 (Pre-refunded 8/01/21) | 8/21 at 100.00 | AA (4) | 233,922 | ||
| 200 | San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Refunding Series 2009A, 5.125%, 11/01/39 (Pre-refunded 11/01/19) | 11/19 at 100.00 | AA- (4) | 221,736 | ||
| 1,000 | Total U.S. Guaranteed | 1,103,008 | ||||
| Utilities–1.5% | ||||||
| 40 | Banning Financing Authority, California, Revenue Bonds, Electric System Project, Refudning Series 2015, 5.000%, 6/01/27 – AGM Insured | 6/25 at 100.00 | AA | 46,836 |
74 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Utilities (continued) | ||||||
| $ 30 | Roseville Natural Gas Financing Authority, California, Gas Revenue Bonds, Series 2007, 5.000%, 2/15/23 | No Opt. Call | A | $ 33,549 | ||
| 70 | Total Utilities | 80,385 | ||||
| Water and Sewer–11.5% | ||||||
| 200 | Central Basin Municipal Water District, California, Revenue Bonds, Refunding Series 2016A, 5.000%, 8/01/24 – AGM Insured | No Opt. Call | AA | 237,348 | ||
| 100 | Los Angeles County Sanitation Districts Financing Authority, California, Capital Projects Revenue Bonds, District 20, Refunding Green Series 2016A, 5.000%, 10/01/26 | No Opt. Call | AA- | 121,701 | ||
| 200 | Santa Clara Valley Water District, California, Certificates of Participation, Refunding & Improvement Series 2017A, 5.000%, 2/01/27 (WI/DD, Settling 3/07/17) | 2/26 at 100.00 | Aa1 | 241,888 | ||
| 500 | Total Water and Sewer | 600,937 | ||||
| $ 4,745 | Total Long-Term Investments (cost $5,467,524) | 5,380,125 |
| Other Assets Less Liabilities–(2.5)% | (131,465) | |||||
| Net Assets–100% | $5,248,660 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm. | |
| (3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm. | |
| (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. | |
| (WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
NUVEEN 75
Statement of
Assets and Liabilities
Assets and Liabilities
February 28, 2017
| California High Yield | California | California Intermediate | |
| Assets | |||
| Long-term investments, at value (cost $847,936,515, $1,197,433,883 and $5,467,524, respectively) | $873,577,462 | $1,260,788,186 | $5,380,125 |
| Cash | 14,887,940 | 1,444,884 | 77,651 |
| Cash collateral at brokers(1) | 2,443,154 | — | — |
| Unrealized appreciation on interest rate swaps | 2,420,121 | — | — |
| Receivable for: | |||
| Interest | 12,313,109 | 15,037,429 | 63,751 |
| Investments sold | 1,911,800 | 85,000 | — |
| From Adviser | — | — | 6,111 |
| Shares sold | 5,237,586 | 6,679,197 | — |
| Other assets | 81,378 | 78,809 | 1,271 |
| Total assets | 912,872,550 | 1,284,113,505 | 5,528,909 |
| Liabilities | |||
| Borrowings | — | 5,000,000 | — |
| Floating rate obligations | 89,000,000 | — | — |
| Payable for: | |||
| Dividends | 387,027 | 770,133 | 6,226 |
| Investments purchased | 1,919,072 | 105,000 | 241,442 |
| Shares redeemed | 2,610,042 | 3,754,072 | 149 |
| Variation margin on swap contracts | 43,768 | — | — |
| Accrued expenses: | |||
| Management fees | 334,986 | 471,347 | — |
| Professional fees | 36,150 | 39,276 | 25,525 |
| Trustees fees | 27,706 | 90,066 | 80 |
| 12b-1 distribution and service fees | 139,266 | 162,477 | — |
| Other | 199,819 | 218,512 | 6,827 |
| Total liabilities | 94,697,836 | 10,610,883 | 280,249 |
| Net assets | $818,174,714 | $1,273,502,622 | $5,248,660 |
See accompanying notes to financial statements.
76 NUVEEN
| California High Yield | California | California Intermediate | |
| Class A Shares | |||
| Net assets | $413,223,401 | $ 441,928,189 | $ 300,195 |
| Shares outstanding | 44,180,244 | 40,166,718 | 30,692 |
| Net asset value ("NAV") per share | $ 9.35 | $ 11.00 | $ 9.78 |
| Offering price per share (NAV per share plus maximum sales charge of 4.20%, 4.20% and 3.00%, respectively, of offering price) | $ 9.76 | $ 11.48 | $ 10.08 |
| Class C Shares | |||
| Net assets | $ 68,188,915 | $ 84,320,701 | $ 69,550 |
| Shares outstanding | 7,296,700 | 7,693,836 | 7,124 |
| NAV and offering price per share | $ 9.35 | $ 10.96 | $ 9.76 |
| Class C2 Shares | |||
| Net assets | $ 41,673,194 | $ 51,119,408 | $ — |
| Shares outstanding | 4,461,564 | 4,658,210 | — |
| NAV and offering price per share | $ 9.34 | $ 10.97 | $ — |
| Class I Shares | |||
| Net assets | $295,089,204 | $ 696,134,324 | $4,878,915 |
| Shares outstanding | 31,586,867 | 63,252,437 | 498,877 |
| NAV and offering price per share | $ 9.34 | $ 11.01 | $ 9.78 |
| Net assets consist of: | |||
| Capital paid-in | $813,362,973 | $1,234,537,395 | $5,351,815 |
| Undistributed (Over-distribution of) net investment income | 288,472 | 288,926 | 2,001 |
| Accumulated net realized gain (loss) | (26,798,928) | (24,678,002) | (17,757) |
| Net unrealized appreciation (depreciation) | 31,322,197 | 63,354,303 | (87,399) |
| Net assets | $818,174,714 | $1,273,502,622 | $5,248,660 |
| Authorized shares–per class | Unlimited | Unlimited | Unlimited |
| Par value per share | $ 0.01 | $ 0.01 | $ 0.01 |
| (1) | Cash pledged to collateralize the net payment obligations for investments in derivatives in addition to the Fund’s securities pledged as collateral as noted in the Fund’s Portfolio of Investments. |
See accompanying notes to financial statements.
NUVEEN 77
Statement of
Operations
Operations
Year Ended February 28, 2017
| California High Yield | California | California Intermediate* | |
| Investment Income | $ 43,452,646 | $ 49,235,958 | $ 38,205 |
| Expenses | |||
| Management fees | 4,869,578 | 6,095,061 | 9,399 |
| 12b-1 service fees - Class A Shares | 890,673 | 870,280 | 118 |
| 12b-1 distibution and service fees - Class C Shares | 642,670 | 794,602 | 172 |
| 12b-1 distibution and service fees - Class C2 Shares | 351,062 | 412,871 | — |
| Shareholder servicing agent fees | 331,644 | 398,592 | 133 |
| Interest expense | 857,395 | 12,459 | — |
| Custodian fees | 160,524 | 156,519 | 5,347 |
| Trustees fees | 25,805 | 35,318 | 80 |
| Professional fees | 72,121 | 68,631 | 25,527 |
| Shareholder reporting expenses | 53,382 | 66,700 | 2,920 |
| Federal and state registration fees | 56,880 | 39,544 | 881 |
| Other | 243,207 | 50,710 | 915 |
| Total expenses before fee waiver/expense reimbursement | 8,554,941 | 9,001,287 | 45,492 |
| Fee waiver/expense reimbursement | — | — | (34,883) |
| Net expenses | 8,554,941 | 9,001,287 | 10,609 |
| Net investment income (loss) | 34,897,705 | 40,234,671 | 27,596 |
| Realized and Unrealized Gain (Loss) | |||
| Net realized gain (loss) from: | |||
| Investments | (10,857,879) | (16,589,396) | (17,757) |
| Swaps | (7,547,531) | — | — |
| Change in net unrealized appreciation (depreciation) of: | |||
| Investments | (32,836,761) | (23,867,841) | (87,399) |
| Swaps | 11,406,623 | — | — |
| Net realized and unrealized gain (loss) | (39,835,548) | (40,457,237) | (105,156) |
| Net increase (decrease) in net assets from operations | $ (4,937,843) | $ (222,566) | $ (77,560) |
| * | For the period October 19, 2016 (commencement of operations) through February 28, 2017. |
See accompanying notes to financial statements.
78 NUVEEN
Statement of
Changes in Net Assets
Changes in Net Assets
| California High Yield | California | California Intermediate | |||||
| Year Ended 2/28/17 | Year Ended 2/29/16 | Year Ended 2/28/17 | Year Ended 2/29/16 | Year Ended* 2/28/17 | |||
| Operations | |||||||
| Net investment income (loss) | $ 34,897,705 | $ 28,234,132 | $ 40,234,671 | $ 34,675,930 | $ 27,596 | ||
| Net realized gain (loss) from: | |||||||
| Investments | (10,857,879) | 682,477 | (16,589,396) | (595,007) | (17,757) | ||
| Swaps | (7,547,531) | (4,049,185) | — | — | — | ||
| Change in net unrealized appreciation (depreciation) of: | |||||||
| Investments | (32,836,761) | 13,588,607 | (23,867,841) | 17,575,000 | (87,399) | ||
| Swaps | 11,406,623 | (1,453,413) | — | — | — | ||
| Net increase (decrease) in net assets from operations | (4,937,843) | 37,002,618 | (222,566) | 51,655,923 | (77,560) | ||
| Distributions to Shareholders | |||||||
| From net investment income: | |||||||
| Class A Shares | (17,397,858) | (13,782,480) | (13,993,032) | (12,779,558) | (827) | ||
| Class C Shares | (2,002,137) | (1,170,101) | (1,881,363) | (846,590) | (89) | ||
| Class C2 Shares | (1,580,384) | (1,873,640) | (1,461,590) | (1,800,064) | — | ||
| Class I Shares | (14,402,662) | (11,026,533) | (23,410,622) | (20,412,416) | (24,820) | ||
| Decrease in net assets from distributions to shareholders | (35,383,041) | (27,852,754) | (40,746,607) | (35,838,628) | (25,736) | ||
| Fund Share Transactions | |||||||
| Proceeds from sale of shares | 533,895,681 | 384,605,491 | 586,031,316 | 434,428,097 | 5,351,438 | ||
| Proceeds from shares issued to shareholders due to reinvestment of distributions | 30,132,183 | 22,642,054 | 31,600,266 | 27,111,758 | 831 | ||
| 564,027,864 | 407,247,545 | 617,631,582 | 461,539,855 | 5,352,269 | |||
| Cost of shares redeemed | (489,605,759) | (235,318,163) | (424,764,662) | (180,508,254) | (313) | ||
| Net increase (decrease) in net assets from Fund share transactions | 74,422,105 | 171,929,382 | 192,866,920 | 281,031,601 | 5,351,956 | ||
| Net increase (decrease) in net assets | 34,101,221 | 181,079,246 | 151,897,747 | 296,848,896 | 5,248,660 | ||
| Net assets at the beginning of period | 784,073,493 | 602,994,247 | 1,121,604,875 | 824,755,979 | — | ||
| Net assets at the end of period | $ 818,174,714 | $ 784,073,493 | $1,273,502,622 | $1,121,604,875 | $5,248,660 | ||
| Undistributed (Over-distribution of) net investment income at the end of period | $ 288,472 | $ 934,075 | $ 288,926 | $ 803,807 | $ 2,001 | ||
| * | For the period October 19, 2016 (commencement of operations) through February 28, 2017. |
See accompanying notes to financial statements.
NUVEEN 79
Financial
Highlights
California High Yield
Selected data for a share outstanding throughout each period:
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 (03/06) | |||||||||
| 2017 | $9.70 | $0.38 | $(0.35) | $ 0.03 | $(0.38) | $— | $(0.38) | $9.35 | |
| 2016 | 9.59 | 0.42 | 0.10 | 0.52 | (0.41) | — | (0.41) | 9.70 | |
| 2015 | 8.74 | 0.42 | 0.85 | 1.27 | (0.42) | — | (0.42) | 9.59 | |
| 2014 | 9.25 | 0.44 | (0.52) | (0.08) | (0.43) | — | (0.43) | 8.74 | |
| 2013 | 8.52 | 0.46 | 0.77 | 1.23 | (0.50) | — | (0.50) | 9.25 | |
| Class C (02/14) | |||||||||
| 2017 | 9.69 | 0.30 | (0.34) | (0.04) | (0.30) | — | (0.30) | 9.35 | |
| 2016 | 9.58 | 0.34 | 0.10 | 0.44 | (0.33) | — | (0.33) | 9.69 | |
| 2015 | 8.73 | 0.34 | 0.86 | 1.20 | (0.35) | — | (0.35) | 9.58 | |
| 2014(f) | 8.59 | 0.01 | 0.15 | 0.16 | (0.02) | — | (0.02) | 8.73 | |
| Class C2 (03/06)(g) | |||||||||
| 2017 | 9.69 | 0.32 | (0.34) | (0.02) | (0.33) | — | (0.33) | 9.34 | |
| 2016 | 9.57 | 0.37 | 0.11 | 0.48 | (0.36) | — | (0.36) | 9.69 | |
| 2015 | 8.73 | 0.37 | 0.85 | 1.22 | (0.38) | — | (0.38) | 9.57 | |
| 2014 | 9.24 | 0.39 | (0.52) | (0.13) | (0.38) | — | (0.38) | 8.73 | |
| 2013 | 8.52 | 0.41 | 0.76 | 1.17 | (0.45) | — | (0.45) | 9.24 | |
| Class I (03/06) | |||||||||
| 2017 | 9.69 | 0.39 | (0.34) | 0.05 | (0.40) | — | (0.40) | 9.34 | |
| 2016 | 9.57 | 0.43 | 0.12 | 0.55 | (0.43) | — | (0.43) | 9.69 | |
| 2015 | 8.72 | 0.44 | 0.85 | 1.29 | (0.44) | — | (0.44) | 9.57 | |
| 2014 | 9.24 | 0.46 | (0.54) | (0.08) | (0.44) | — | (0.44) | 8.72 | |
| 2013 | 8.51 | 0.48 | 0.77 | 1.25 | (0.52) | — | (0.52) | 9.24 | |
80 NUVEEN
| 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) | |
| 0.25% | $413,223 | 0.93% | 0.84% | 3.85% | 0.93% | 0.84% | 3.85% | 22% | |
| 5.59 | 384,498 | 0.85 | 0.85 | 4.36 | 0.85 | 0.85 | 4.36 | 9 | |
| 14.83 | 294,922 | 0.85 | 0.85 | 4.56 | 0.85 | 0.85 | 4.56 | 10 | |
| (0.69) | 173,753 | 0.87 | 0.87 | 5.09 | 0.87 | 0.87 | 5.09 | 36 | |
| 14.77 | 186,683 | 0.89 | 0.89 | 5.11 | 0.87 | 0.87 | 5.13 | 7 | |
| (0.44) | 68,189 | 1.73 | 1.64 | 3.08 | 1.73 | 1.64 | 3.08 | 22 | |
| 4.75 | 48,447 | 1.65 | 1.65 | 3.52 | 1.65 | 1.65 | 3.52 | 9 | |
| 13.96 | 21,791 | 1.64 | 1.64 | 3.65 | 1.64 | 1.64 | 3.65 | 10 | |
| 1.85 | 249 | 1.75* | 1.75* | 3.30* | 1.75* | 1.75* | 3.30* | 36 | |
| (0.30) | 41,673 | 1.48 | 1.39 | 3.32 | 1.48 | 1.39 | 3.32 | 22 | |
| 5.12 | 49,296 | 1.41 | 1.41 | 3.84 | 1.41 | 1.41 | 3.84 | 9 | |
| 14.14 | 52,873 | 1.40 | 1.40 | 4.05 | 1.40 | 1.40 | 4.05 | 10 | |
| (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 | |
| 0.44 | 295,089 | 0.73 | 0.64 | 4.04 | 0.73 | 0.64 | 4.04 | 22 | |
| 5.91 | 301,832 | 0.65 | 0.65 | 4.56 | 0.65 | 0.65 | 4.56 | 9 | |
| 15.08 | 233,408 | 0.65 | 0.65 | 4.75 | 0.65 | 0.65 | 4.75 | 10 | |
| (0.60) | 97,202 | 0.67 | 0.67 | 5.32 | 0.67 | 0.67 | 5.32 | 36 | |
| 15.02 | 96,940 | 0.69 | 0.69 | 5.37 | 0.67 | 0.67 | 5.39 | 7 | |
| (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, when 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) | Formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014. |
| * | Annualized. |
See accompanying notes to financial statements.
NUVEEN 81
Financial Highlights (continued)
California
Selected data for a share outstanding throughout each period:
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 (09/94) | |||||||||
| 2017 | $11.32 | $0.36 | $(0.31) | $ 0.05 | $(0.37) | $ — | $(0.37) | $11.00 | |
| 2016 | 11.17 | 0.40 | 0.17 | 0.57 | (0.42) | — | (0.42) | 11.32 | |
| 2015 | 10.55 | 0.44 | 0.62 | 1.06 | (0.44) | — | (0.44) | 11.17 | |
| 2014 | 10.97 | 0.44 | (0.42) | 0.02 | (0.44) | — | (0.44) | 10.55 | |
| 2013 | 10.54 | 0.45 | 0.44 | 0.89 | (0.46) | — | (0.46) | 10.97 | |
| Class C (02/14) | |||||||||
| 2017 | 11.27 | 0.26 | (0.30) | (0.04) | (0.27) | — | (0.27) | 10.96 | |
| 2016 | 11.13 | 0.31 | 0.16 | 0.47 | (0.33) | — | (0.33) | 11.27 | |
| 2015 | 10.52 | 0.35 | 0.61 | 0.96 | (0.35) | — | (0.35) | 11.13 | |
| 2014(f) | 10.41 | 0.01 | 0.12 | 0.13 | (0.02) | — | (0.02) | 10.52 | |
| Class C2 (09/94)(g) | |||||||||
| 2017 | 11.29 | 0.29 | (0.31) | (0.02) | (0.30) | — | (0.30) | 10.97 | |
| 2016 | 11.14 | 0.34 | 0.16 | 0.50 | (0.35) | — | (0.35) | 11.29 | |
| 2015 | 10.52 | 0.38 | 0.62 | 1.00 | (0.38) | — | (0.38) | 11.14 | |
| 2014 | 10.94 | 0.38 | (0.42) | (0.04) | (0.38) | — | (0.38) | 10.52 | |
| 2013 | 10.50 | 0.39 | 0.45 | 0.84 | (0.40) | — | (0.40) | 10.94 | |
| Class I (07/86) | |||||||||
| 2017 | 11.32 | 0.38 | (0.31) | 0.07 | (0.38) | — | (0.38) | 11.01 | |
| 2016 | 11.17 | 0.42 | 0.17 | 0.59 | (0.44) | — | (0.44) | 11.32 | |
| 2015 | 10.55 | 0.47 | 0.61 | 1.08 | (0.46) | — | (0.46) | 11.17 | |
| 2014 | 10.96 | 0.46 | (0.41) | 0.05 | (0.46) | — | (0.46) | 10.55 | |
| 2013 | 10.52 | 0.47 | 0.44 | 0.91 | (0.47) | — | (0.47) | 10.96 | |
82 NUVEEN
| 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) |
| 0.36% | $441,928 | 0.75% | 0.75% | 3.16% | 33% |
| 5.21 | 381,175 | 0.76 | 0.76 | 3.60 | 22 |
| 10.20 | 304,490 | 0.78 | 0.78 | 4.07 | 14 |
| 0.29 | 268,136 | 0.80 | 0.80 | 4.24 | 41 |
| 8.57 | 274,043 | 0.80 | 0.80 | 4.14 | 13 |
| (0.38) | 84,321 | 1.55 | 1.55 | 2.33 | 33 |
| 4.29 | 49,383 | 1.56 | 1.56 | 2.76 | 22 |
| 9.26 | 16,841 | 1.57 | 1.57 | 3.15 | 14 |
| 1.24 | 309 | 1.62* | 1.62* | 2.93* | 41 |
| (0.22) | 51,119 | 1.30 | 1.30 | 2.60 | 33 |
| 4.60 | 56,346 | 1.31 | 1.31 | 3.06 | 22 |
| 9.61 | 59,361 | 1.33 | 1.33 | 3.54 | 14 |
| (0.28) | 62,495 | 1.34 | 1.34 | 3.68 | 41 |
| 8.09 | 73,860 | 1.35 | 1.35 | 3.58 | 13 |
| 0.61 | 696,134 | 0.55 | 0.55 | 3.35 | 33 |
| 5.38 | 634,702 | 0.56 | 0.56 | 3.80 | 22 |
| 10.38 | 444,064 | 0.58 | 0.58 | 4.28 | 14 |
| 0.55 | 313,773 | 0.59 | 0.59 | 4.43 | 41 |
| 8.86 | 366,603 | 0.60 | 0.60 | 4.34 | 13 |
| (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) | Formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014. |
| * | Annualized. |
See accompanying notes to financial statements.
NUVEEN 83
Financial Highlights (continued)
California Intermediate
Selected data for a share outstanding throughout each period:
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 (10/16) | |||||||||
| 2017(f) | $10.00 | $0.06 | $(0.24) | $(0.18) | $(0.04) | $ — | $(0.04) | $9.78 | |
| Class C (10/16) | |||||||||
| 2017(f) | 10.00 | 0.02 | (0.24) | (0.22) | (0.02) | — | (0.02) | 9.76 | |
| Class I (10/16) | |||||||||
| 2017(f) | 10.00 | 0.05 | (0.22) | (0.17) | (0.05) | — | (0.05) | 9.78 | |
84 NUVEEN
| 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) | |
| (1.75)% | $ 300 | 2.60%* | 2.60%* | (0.27)%* | 0.76%* | 0.76%* | 1.57%* | 19% | |
| (2.42) | 70 | 3.28* | 3.28* | (1.18)* | 1.56* | 1.56* | 0.55* | 19 | |
| (1.69) | 4,879 | 2.46* | 2.46* | (0.39)* | 0.56* | 0.56* | 1.51* | 19 | |
| (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, when 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 October 19, 2016 (commencement of operations) through February 28, 2017. |
| * | Annualized. |
See accompanying notes to financial statements.
NUVEEN 85
Notes to
Financial Statements
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust and Fund Information
The Nuveen Multistate Trust II (the “Trust”) is an open-end management 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”), Nuveen California Municipal Bond Fund (“California”), and Nuveen California Intermediate Bond Fund ("California Intermediate") (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 prior to that date.
The end of the reporting period for the Funds is February 28, 2017, and the period covered by these Notes to Financial Statements is the fiscal year ended February 28, 2017 (the "current fiscal period”). The current fiscal period for California Intermediate is the period October 19, 2016 (commencement of operations) through February 28, 2017.
Investment Adviser
The Funds' investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds' portfolios, manages the Funds' business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, 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, California state and, in some cases, California local income taxes as is consistent with preservation of capital. California High Yield’s secondary objective is total return, when consistent with the Fund’s primary objective.
Each Fund’s most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 "Financial Services-Investment Companies." The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S generally accepted accounting principles (“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 earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the Funds’ outstanding when-issued/delayed delivery purchase commitments were as follows:
| California High Yield | California | California Intermediate | |
| Outstanding when-issued/delayed delivery purchase commitments | $1,919,072 | $105,000 | $241,442 |
Investment Income
Interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects paydowns gains and losses, if any.
86 NUVEEN
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. If a refund is received for 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
Dividends from net investment income are declared daily and distributed to 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 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 0.20% annual 12b-1 service fee. Class A Share purchases of $1 million ($250,000 effective November 1, 2016) 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”) of 1% if redeemed within eighteen months of purchase. Class C Shares are sold without an up-front sales charge but incur a 0.75% annual 12b-1 distribution fee and a 0.25% 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 purpose 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 0.55% annual 12b-1 distribution fee and a 0.20% annual 12b-1 service fee. Class C and 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 Fund 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 are recorded to the specific class. Currently, the only expenses that are allocated on a class-specific basis are 12b-1 distribution and service fees.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Compensation
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 Funds' Board of Trustees ("the "Board") 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.
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 certain securities and derivatives with a specific counterparty as well as 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.
The Funds' investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 - Portfolio Securities and Investments in Derivatives.
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 current fiscal period. Actual results may differ from those estimates.
NUVEEN 87
Notes to Financial Statements (continued)
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received 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).
Prices of fixed income securities are provided by an independent pricing service (“pricing service”) approved by the Board. 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. These securities are generally classified as Level 2. 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 observability of the significant inputs.
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. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued 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 swap contracts are also provided by an independent pricing service approved by the Board using the same methods as described above and are generally classified as Level 2.
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 Board and/or its appointee 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 Board and/or its appointee.
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 | $ — | $869,216,841 | $ — | $869,216,841 |
| Common Stocks | 4,360,621 | — | — | 4,360,621 |
| Investments in Derivatives: | ||||
| Interest Rate Swaps** | — | 5,681,250 | — | 5,681,250 |
| Total | $4,360,621 | $874,898,091 | $ — | $879,258,712 |
88 NUVEEN
| California | Level 1 | Level 2 | Level 3 | Total |
| Long-Term Investments*: | ||||
| Municipal Bonds | $ — | $1,260,788,186 | $ — | $1,260,788,186 |
| California Intermediate | Level 1 | Level 2 | Level 3 | Total |
| Long-Term Investments*: | ||||
| Municipal Bonds | $ — | $5,380,125 | $ — | $5,380,125 |
| * | 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 Board is responsible for the valuation process and has appointed 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, is responsible for making fair value determinations, evaluating the effectiveness of the Funds’ pricing policies and reporting to the Board. 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 the pricing service for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing service 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, 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.
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 (referred to as an “Underlying Bond”), typically with a fixed interest rate, into a special purpose tender option bond (“TOB”) trust (referred to as the “TOB Trust”) created by or at the direction of one or more Funds. In turn, the TOB Trust issues (a) floating rate certificates (referred to as “Floaters”), in face amounts equal to some fraction of the Underlying Bond’s par amount or market value, and (b) an inverse floating rate certificate (referred to as an “Inverse Floater”) that represents all remaining or residual interest in the TOB Trust. Floaters typically pay short-term tax-exempt interest rates to third parties who are also provided a right to tender their certificate and receive its par value, which may be paid from the proceeds of a remarketing of the Floaters, by a loan to the TOB Trust from a third party liquidity provider (“Liquidity Provider”), or by the sale of assets from the TOB Trust. The Inverse Floater is issued to a long term investor, such as one or more of the Funds. The income received by the Inverse Floater holder varies inversely with the short-term rate paid to holders of the Floaters, 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 value of an Inverse Floater 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 Floaters, and because the Inverse Floater essentially bears the risk of loss (and possible gain) of the greater face value of the Underlying Bond.
The Inverse Floater held by a Fund gives the Fund the right to (a) cause the holders of the Floaters to tender their certificates at par (or slightly more than par in certain circumstances), and (b) have the trustee of the TOB Trust (the “Trustee”) transfer the Underlying Bond held by the TOB Trust to the Fund, thereby collapsing the TOB Trust.
NUVEEN 89
Notes to Financial Statements (continued)
The Fund may acquire an Inverse Floater in a transaction where it (a) transfers an Underlying Bond that it owns to a TOB Trust created by a third party or (b) transfers an Underlying Bond that it owns, or that it has purchased in a secondary market transaction for the purpose of creating an Inverse Floater, to a TOB Trust created at its direction, and in return receives the Inverse Floater of the TOB Trust (referred to as a “self-deposited Inverse Floater”). A Fund may also purchase an Inverse Floater in a secondary market transaction from a third party creator of the TOB Trust without first owning the Underlying Bond (referred to as an “externally-deposited Inverse Floater”).
An investment in a self-deposited Inverse Floater is accounted for as a “financing” transaction (i.e., a secured borrowing). For a self-deposited Inverse Floater, the Underlying Bond deposited into the TOB Trust is identified in the Fund’s Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund recognizing as liabilities, labeled “Floating rate obligations” on the Statement of Assets and Liabilities, (a) the liquidation value of Floaters issued by the TOB Trust, and (b) the amount of any borrowings by the TOB Trust from a Liquidity Provider to enable the TOB Trust to purchase outstanding Floaters in lieu of a remarketing. In addition, the Fund recognizes in “Investment Income” the entire earnings of the Underlying Bond, and recognizes (a) the interest paid to the holders of the Floaters or on the TOB Trust’s borrowings, and (b) other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust, as a component of “Interest expense” on the Statement of Operations.
In contrast, an investment in an externally-deposited Inverse Floater is accounted for as a purchase of the Inverse Floater and is identified in the Fund’s Portfolio of Investments as “(IF) – Inverse floating rate investment.” For an externally-deposited Inverse Floater, a Fund’s Statement of Assets and liabilities recognizes the Inverse Floater and not the Underlying Bond as an asset, and the Fund does not recognize the Floaters, or any related borrowings from a Liquidity Provider, as a liability. Additionally, the Fund reflects in “Investment Income” only the net amount of earnings on the Inverse Floater (net of the interest paid to the holders of the Floaters or the Liquidity Provider as lender, and the expenses of the Trust), and does not show the amount of that interest paid or the expenses of the TOB Trust as described above as interest expense on the Statement of Operations.
Fees paid upon the creation of a TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters are recognized as part of the cost basis of the Inverse Floater and are capitalized over the term of the TOB Trust.
As of the end of the reporting period, the aggregate value of Floaters issued by each Fund’s TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| Floating Rate Obligations Outstanding | California High Yield | California | California Intermediate |
| Floating rate obligations: self-deposited Inverse Floaters | $ 89,000,000 | $ — | $ — |
| Floating rate obligations: externally-deposited Inverse Floaters | 104,315,000 | — | — |
| Total | $193,315,000 | $ — | $ — |
During the current fiscal period, the average amount of Floaters (including any borrowings from a Liquidity Provider) outstanding, and the average annual interest rates and fees related to self-deposited Inverse Floaters, were as follows:
| Self-Deposited Inverse Floaters | California High Yield | California | California Intermediate |
| Average floating rate obligations outstanding | $67,290,466 | $ — | $ — |
| Average annual interest rate and fees | 1.14% | —% | —% |
TOB Trusts are supported by a liquidity facility provided by a Liquidity Provider pursuant to which the Liquidity Provider agrees, in the event that Floaters are (a) tendered to the Trustee for remarketing and the remarketing does not occur, or (b) subject to mandatory tender pursuant to the terms of the TOB Trust agreement, to either purchase Floaters or to provide the Trustee with an advance from a loan facility to fund the purchase of Floaters by the TOB Trust. In certain circumstances, the Liquidity Provider may otherwise elect to have the Trustee sell the Underlying Bond to retire the Floaters that were tendered and not remarketed prior to providing such a loan. In these circumstances, the Liquidity Provider remains obligated to provide a loan to the extent that the proceeds of the sale of the Underlying Bond are not sufficient to pay the purchase price of the Floaters.
The size of the commitment under the loan facility for a given TOB Trust is at least equal to the balance of that TOB Trust’s outstanding Floaters plus any accrued interest. In consideration of the loan facility, fee schedules are in place and are charged by the Liquidity Provider(s). Any loans made by the Liquidity Provider will be secured by the purchased Floaters held by the TOB Trust. Interest paid on any outstanding loan balances will be effectively borne by the Fund that owns the Inverse Floaters of the TOB Trust that has incurred the borrowing and may be at a rate that is greater than the rate that would have been paid had the Floaters been successfully remarketed.
As described above, any amounts outstanding under a liquidity facility are recognized as a component of “Floating rate obligations” on the Statement of Assets and Liabilities by the Fund holding the corresponding Inverse Floaters issued by the borrowing TOB Trust. As of the end of the reporting period, California High Yield had outstanding borrowings under such liquidity facilities in the amount of $3,839,886, which is recognized as a component of "Floating rate obligations" on the Statement of Assets and Liabilities. There were no loans outstanding under such facilities for California and California Intermediate as of the end of the reporting period.
90 NUVEEN
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse arrangement” or “credit recovery swap”) (TOB Trusts involving such agreements are referred to herein as “Recourse Trusts”), under which a Fund agrees to reimburse the Liquidity Provider for the Trust’s Floaters, in certain circumstances, for the amount (if any) by which the liquidation value of the Underlying Bond held by the TOB Trust may fall short of the sum of the liquidation value of the Floaters issued by the TOB Trust plus any amounts borrowed by the TOB Trust from the Liquidity Provider, plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on an Inverse Floater may increase beyond the value of the Inverse Floater as a Fund may potentially be liable to fulfill all amounts owed to holders of the Floaters or the Liquidity Provider. Any such shortfall amount in the aggregate is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
As of the end of the reporting period, each Fund’s maximum exposure to the Floaters issued by Recourse Trusts for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| Floating Rate Obligations - Recourse Trusts | California High Yield | California | California Intermediate |
| Maximum exposure to Recourse Trusts: self-deposited Inverse Floaters | $ 44,140,000 | $ — | $ — |
| Maximum exposure to Recourse Trusts: externally-deposited Inverse Floaters | 101,315,000 | — | — |
| Total | $145,455,000 | $ — | $ — |
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
In addition to the inverse floating rate securities in which each Fund may invest, which are considered portfolio securities for financial reporting purposes, each Fund is authorized to invest in certain derivative instruments. 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.
Interest Rate 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, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which begin at a specified date in the future (the “effective date”).
The amount of the payment obligation for an interest rate swap is based on the notional amount and the termination date of the contract. Interest rate 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 the Fund is to receive.
Interest rate 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), the Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on the interest rate swap contracts on a daily basis, and recognizes the daily change in the fair value of the Fund’s contractual rights and obligations under the contracts. For an over-the-counter (“OTC”) swap that is not cleared through a clearing house (“OTC Uncleared”), 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).”
Upon the execution of an OTC swap cleared through a clearing house (“OTC Cleared”), the Fund is obligated to deposit cash or eligible securities, also known as “initial margin,” into an account at its clearing broker equal to a specified percentage of the contract amount. Cash deposited by the Fund to cover initial margin requirements on open swap contracts, if any, is recognized as a component of “Cash collateral at brokers” on the Statement of Assets and Liabilities. Investments in OTC Cleared swaps obligate the Fund and the clearing broker to settle monies on a daily basis representing changes in the prior day’s “mark-to-market” of the swap contract. If the Fund has unrealized appreciation, the clearing broker will credit the Fund’s account with an amount equal to the appreciation. Conversely, if the Fund has unrealized depreciation, the clearing broker will debit the Fund’s account with an amount equal to the depreciation. These daily cash settlements are also known as “variation margin.” Variation margin for OTC Cleared swaps is recognized as a receivable and/or payable for “Variation margin on swap contracts” on the Statement of Assets and Liabilities. Upon the execution of an OTC Uncleared swap, neither the Fund nor the counterparty is required to deposit initial margin as the trades are recorded bilaterally between both parties to the swap contract, and the terms of the variation margin are subject to a predetermined threshold negotiated by the Fund and the counterparty. Variation margin for OTC Uncleared swaps is recognized as a component of “Unrealized appreciation or depreciation on interest rate swaps (, net)” as described in the preceding paragraph.
NUVEEN 91
Notes to Financial Statements (continued)
The net amount of periodic payments settled in cash are recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations, in addition to the net realized gain or loss recorded upon the termination of the swap contract. For tax purposes, payments expected to be received or paid on the swap contracts are treated as ordinary income or expense, respectively. Changes in the value of the swap contracts during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of swaps” on the Statement of Operations. In certain instances, payments are made or received upon entering into the swap contract to compensate for differences between the stated terms of the swap agreements and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). Payments received or made at the beginning of the measurement period, if any, are recognized as “Interest rate swaps premiums paid and/or received” on the Statement of Assets and Liabilities.
During the current fiscal period, California High Yield continued to invest in interest rate swap contracts to reduce the duration of its portfolio and limit its vulnerability to rising interest rates.
The average notional amount of interest rate swap contracts outstanding during the current fical period was as follows:
| California High Yield | California | California Intermediate | |
| Average notional amount of interest rate swap contracts outstanding* | $53,680,000 | $ — | $ — |
| * | The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal period and at the end of each fiscal quarter within the current fiscal period. |
The following table presents the fair value of all swap contracts held by California High Yield as of the end of the reporting period, 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 | |
| California High Yield | ||||||
| Interest rate | Swaps (OTC Cleared) | — | $ — | Payable for variation margin on swap contracts** | $3,261,129 | |
| Interest rate | Swaps (OTC) | Unrealized appreciation on interest rate swaps | 2,420,121 | — | — | |
| Total | $2,420,121 | $3,261,129 | ||||
**Value represents the unrealized appreciation (depreciation) of swaps as reported in the Fund’s Portfolio of Investments and not the assets and/or liability derivative location as described in the table above.
The following table presents the Fund's swap contracts subject to netting agreements, and the collateral delivered related to those swap contracts, as of the end of the reporting period.
| Gross Amounts Not Offset on the Statements of Assets and Liabilities | ||||||||
| Fund | Counterparty | Gross Unrealized Appreciation on Interest Rate Swaps*** | Gross Unrealized Depreciation on Interest Rate Swaps*** | Amounts Netted on Statement of Assets and Liabilities | Net Unrealized Appreciation (Depreciation) on Interest Rate Swaps | Financial Instruments**** | Collateral Pledged to (from) Counterparty | Net Exposure |
| California High Yield | JPMorgan Chase Bank, N.A. | $2,420,121 | $ — | $ — | $2,420,121 | $(1,580,121) | $(840,000) | $ — |
*** Represents gross unrealized appreciation (depreciation) for the counterparty as reported in the Fund’s Portfolio of Investments.
****Represents inverse floating rate securities available for offset.
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 current fiscal period, and the primary underlying risk 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 Rate | Swaps | $(7,547,531) | $11,406,623 |
92 NUVEEN
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Transactions in Fund shares during the current and prior fiscal periods were as follows:
| Year Ended 2/28/17 | Year Ended 2/29/16 | ||||
| California High Yield | Shares | Amount | Shares | Amount | |
| Shares sold: | |||||
| Class A | 26,011,336 | $ 254,385,747 | 20,508,997 | $ 195,548,904 | |
| Class C | 3,903,038 | 38,209,720 | 3,171,592 | 30,226,618 | |
| Class C2 | 65,314 | 612,013 | 34,469 | 328,146 | |
| Class I | 24,904,605 | 240,688,201 | 16,609,331 | 158,501,823 | |
| Shares issued to shareholders due to reinvestment of distributions: | |||||
| Class A | 1,622,243 | 15,798,065 | 1,288,898 | 12,288,040 | |
| Class C | 178,019 | 1,726,454 | 97,426 | 928,772 | |
| Class C2 | 130,180 | 1,266,166 | 160,798 | 1,529,068 | |
| Class I | 1,163,166 | 11,341,498 | 829,033 | 7,896,174 | |
| 57,977,901 | 564,027,864 | 42,700,544 | 407,247,545 | ||
| Shares redeemed: | |||||
| Class A | (23,082,008) | (220,644,593) | (12,928,828) | (122,951,620) | |
| Class C | (1,781,662) | (17,044,752) | (546,337) | (5,210,572) | |
| Class C2 | (821,608) | (7,918,269) | (629,815) | (5,985,819) | |
| Class I | (25,629,296) | (243,998,145) | (10,666,974) | (101,170,152) | |
| (51,314,574) | (489,605,759) | (24,771,954) | (235,318,163) | ||
| Net increase (decrease) | 6,663,327 | $ 74,422,105 | 17,928,590 | $ 171,929,382 | |
| Year Ended 2/28/17 | Year Ended 2/29/16 | ||||
| California | Shares | Amount | Shares | Amount | |
| Shares sold: | |||||
| Class A | 19,657,111 | $ 221,446,245 | 11,565,609 | $ 128,646,371 | |
| Class C | 5,150,830 | 58,824,609 | 3,114,504 | 34,598,429 | |
| Class C2 | 104,764 | 1,151,568 | 59,642 | 661,060 | |
| Class I | 27,003,753 | 304,608,894 | 24,332,358 | 270,522,237 | |
| Shares issued to shareholders due to reinvestment of distributions: | |||||
| Class A | 1,097,071 | 12,412,908 | 997,748 | 11,098,140 | |
| Class C | 142,518 | 1,604,278 | 62,321 | 691,662 | |
| Class C2 | 87,694 | 990,855 | 107,249 | 1,189,069 | |
| Class I | 1,466,024 | 16,592,225 | 1,270,529 | 14,132,887 | |
| 54,709,765 | 617,631,582 | 41,509,960 | 461,539,855 | ||
| Shares redeemed: | |||||
| Class A | (14,266,120) | (159,446,229) | (6,139,814) | (68,349,631) | |
| Class C | (1,980,703) | (21,969,341) | (309,266) | (3,420,070) | |
| Class C2 | (526,887) | (5,878,007) | (504,647) | (5,606,130) | |
| Class I | (21,304,242) | (237,471,085) | (9,282,980) | (103,132,423) | |
| (38,077,952) | (424,764,662) | (16,236,707) | (180,508,254) | ||
| Net increase (decrease) | 16,631,813 | $ 192,866,920 | 25,273,253 | $ 281,031,601 | |
NUVEEN 93
Notes to Financial Statements (continued)
| Year Ended 2/28/17 | ||
| California Intermediate | Shares | Amount |
| Shares sold: | ||
| Class A | 30,650 | $ 294,511 |
| Class C | 7,120 | 69,117 |
| Class I | 498,870 | 4,987,810 |
| Shares issued to shareholders due to reinvestment of distributions: | ||
| Class A | 74 | 717 |
| Class C | 4 | 44 |
| Class I | 7 | 70 |
| 536,725 | 5,352,269 | |
| Shares redeemed: | ||
| Class A | (32) | (313) |
| Class C | — | — |
| Class I | — | — |
| (32) | (313) | |
| Net increase (decrease) | 536,693 | $5,351,956 |
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding derivative transactions, where applicable) during the current fiscal period were as follows:
| California High Yield | California | California Intermediate | |
| Purchases | $350,542,965 | $613,525,174 | $6,444,121 |
| Sales and maturities | 200,564,287 | 404,762,661 | 922,949 |
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 NAVs of the Funds.
As of February 28, 2017, 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 | California Intermediate | |
| Cost of investments | $757,902,675 | $1,196,901,026 | $5,467,522 |
| Gross unrealized: | |||
| Appreciation | $ 46,012,127 | $ 68,608,491 | $ 22,541 |
| Depreciation | (19,337,042) | (4,721,331) | (109,938) |
| Net unrealized appreciation (depreciation) of investments | $ 26,675,085 | $ 63,887,160 | $ (87,397) |
94 NUVEEN
Permanent differences, primarily due to treatment of notional principal contracts, expiration of capital loss carryforwards, taxable market discount, nondeductible stock issuance costs and federal taxes paid, resulted in reclassifications among the Funds’ components of net assets as of February 28, 2017, the Funds' tax year end, as follows:
| California High Yield | California | California Intermediate | |
| Capital paid-in | $(3,792,828) | $(3,551,589) | $ (141) |
| Undistributed (Over-distribution of) net investment income | (80,954) | (2,945) | 141 |
| Accumulated net realized gain (loss) | 3,873,782 | 3,554,534 | — |
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of February 28, 2017, the Funds' tax year end, were as follows:
| California High Yield | California | California Intermediate | |
| Undistributed net tax-exempt income1 | $1,400,219 | $2,742,440 | $8,604 |
| Undistributed net ordinary income2 | 120,772 | 5,266 | — |
| 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, 2017 through February 28, 2017, and paid on March 1, 2017. |
| 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, 2017 and February 29, 2016, was designated for purposes of the dividends paid deduction as follows:
| 2017 | California High Yield | California | California Intermediate |
| Distributions from net tax-exempt income3 | $35,237,491 | $40,643,246 | $19,131 |
| Distributions from net ordinary income2 | 171,397 | — | — |
| Distributions from net long-term capital gains | — | — | — |
| 2016 | California High Yield | California | California Intermediate |
| Distributions from net tax-exempt income | $26,735,222 | $35,178,698 | $ — |
| Distributions from net ordinary income2 | 580,572 | 16,786 | — |
| 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 these amounts paid during the fiscal year ended February 28, 2017, as Exempt Interest Dividends. |
As of February 28, 2017, 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 | California 4 | California Intermediate | |
| Expiration: | |||
| February 28, 2018 | $ 2,097,482 | $ 4,974,035 | $ — |
| Not subject to expiration | 24,334,373 | 19,326,581 | 17,757 |
| Total | $26,431,855 | $24,300,616 | $17,757 |
| 4 | A portion of California's capital loss carryforward is subject to an annual limitation under the Internal Revenue Code and related regulations. |
As of February 28, 2017, the Funds' tax year end, the following Funds' capital loss carryforwards expired as follows:
| California High Yield | California | |
| Expired capital loss carryforwards | $3,792,828 | $3,555,020 |
NUVEEN 95
Notes to Financial Statements (continued)
7. Management Fees and Other Transactions with Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for the 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, payable monthly, for each Fund, is calculated according to the following schedule:
| Average Daily Net Assets | California High Yield | California | California Intermediate |
| For the first $125 million | 0.4000% | 0.3500% | 0.3500% |
| For the next $125 million | 0.3875 | 0.3375 | 0.3375 |
| For the next $250 million | 0.3750 | 0.3250 | 0.3250 |
| For the next $500 million | 0.3625 | 0.3125 | 0.3125 |
| For the next $1 billion | 0.3500 | 0.3000 | 0.3000 |
| For net assets over $2 billion | 0.3250 | – | – |
| For the next $3 billion | – | 0.2750 | 0.2750 |
| For net assets over $5 billion | – | 0.2500 | 0.2500 |
The annual complex-level fee for each Fund , payable monthly, is calculated according to the following schedule:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level |
| $55 billion | 0.2000% |
| $56 billion | 0.1996 |
| $57 billion | 0.1989 |
| $60 billion | 0.1961 |
| $63 billion | 0.1931 |
| $66 billion | 0.1900 |
| $71 billion | 0.1851 |
| $76 billion | 0.1806 |
| $80 billion | 0.1773 |
| $91 billion | 0.1691 |
| $125 billion | 0.1599 |
| $200 billion | 0.1505 |
| $250 billion | 0.1469 |
| $300 billion | 0.1445 |
* 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 a determined amount (originally $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 closedend 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, 2017, the complex-level fee for each Fund was as follows:
| Fund | Complex-Level Fee |
| California High Yield | 0.1617% |
| California | 0.1643% |
| California Intermediate | 0.1617% |
The Adviser has agreed to waive fees and/or reimburse expenses (“Expense Cap”) of the Funds 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:
96 NUVEEN
| Fund | Temporary Expense Cap | Temporary Expense Cap Expiration Date | Permanent Expense Cap |
| California High Yield | N/A | N/A | 1.00% |
| California | N/A | N/A | 0.75% |
| California Intermediate | 0.60% | June 30, 2018 | N/A |
Other Transactions with Affiliates
Each Fund is permitted to purchase or sell securities from or to certain other funds managed by the Adviser (“inter-fund trade”) under specified conditions outlined in procedures adopted by the Board. These procedures have been designed to ensure that any inter-fund trade of securities by the Fund from or to another fund that is, or could be, considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser (or affiliated investment adviser), common officer and/or common trustee complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each inter-fund trade is effected at the current market price as provided by an independent pricing service. Unsettled inter-fund trades as of the end of the reporting period are recognized as a component of “Receivable for investment sold” and/or “Payable for investments purchased” on the Statement of Assets and Liabilities, when applicable.
During the current fiscal period, the following Funds engaged in inter-fund trades pursuant to these procedures as follows:
| Inter-Fund Trades | California High Yield | California |
| Purchases | $15,220,852 | $67,615,173 |
| Sales | 8,175,265 | 43,388,917 |
During the current fiscal period, 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 | California Intermediate | |
| Sales charges collected (Unaudited) | $1,499,644 | $1,290,229 | $ — |
| Paid to financial intermediaries (Unaudited) | 1,102,225 | 1,172,413 | — |
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 current fiscal period, the Distributor compensated financial intermediaries directly with commission advances at the time of purchase as follows:
| California High Yield | California | California Intermediate | |
| Commission advances (Unaudited) | $77,038 | $1,122,245 | $ — |
To compensate for commissions advanced to financial intermediaries, 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 current fiscal period, the Distributor retained such 12b-1 fees as follows:
| California High Yield | California | California Intermediate | |
| 12b-1 fees retained (Unaudited) | $358,960 | $546,041 | $319 |
The remaining 12b-1 fees charged to each Fund 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 current fiscal period, as follows:
| California High Yield | California | California Intermediate | |
| CDSC retained (Unaudited) | $95,848 | $151,219 | $ — |
NUVEEN 97
Notes to Financial Statements (continued)
8. Borrowing Arrangements
Uncommitted Line of Credit
During the current fiscal period, the Funds participated in an unsecured bank line of credit (“Unsecured Credit Line”) under which outstanding balances would bear interest at a variable rate. On December 31, 2016, (the only date utilized during the current fiscal period), California borrowed $9,608,742 from the Unsecured Credit Line at an annualized interest rate of 2.02%. None of the other Funds participated in the Unsecured Credit Line during the current fiscal period.
2.5 Billion Committed Line of Credit
The Funds, along with certain other funds managed by the Adviser (“Participating Funds”), have established a 364-day, approximately $2.5 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment purposes. A large portion of this facility’s capacity (and its associated costs as described below) is currently dedicated for use by a small number of Participating Funds, which does not include any of the Funds covered by this shareholder report. The remaining capacity under the facility (and the corresponding portion of the facility’s annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, along with a number of Nuveen closed-end funds, including all of the Funds covered by this shareholder report.
The credit facility expires in July 2017 unless extended or renewed. The credit facility has the following terms: a fee of 0.15% per annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.25% per annum or (b) the Fed Funds rate plus 1.25% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
$96.7 Million Committed Line of Credit
On October 14, 2016, California High Yield, along with certain of the Participating Funds (the “Subset of Participating Funds”), have established a 364-day, $96,687,000 standby credit facility with a lender, under which the Subset of Participating Funds may borrow for various purposes other than leveraging for investment purposes. This standby credit facility is in addition to the $2.5 billion standby credit facility. The Subset of Participating Funds may only borrow from either the $96,687,000 standby credit facility or the $2.5 billion standby credit facility at any one time. This standby credit facility expires in October 2017 unless extended or renewed. This standby credit facility has the following terms: a fee of 0.15% per annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.25% per annum or (b) the Fed Funds rate plus 1.25% per annum on amounts borrowed. Participating Funds will pay administration, legal and arrangement fees, which will be recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, will be allocated among such Subset of Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Subset of Participating Fund.
During the current fiscal period, the following Funds utilized this facility ("Borrowings"). Each following Fund’s maximum outstanding balance on the borrowings during their utilization period were as follows:
| California High Yield | California | |
| Maximum Outstanding Balance | $90,000,000 | $18,000,000 |
During the current fiscal period, and during each Fund's utilization period, the average daily balance outstanding and average annual interest rate on the Borrowings were as follows:
| California High Yield | California | |
| Average daily balance outstanding | $62,241,379 | $9,150,000 |
| Average annual interest rate | 1.84% | 2.03% |
Borrowings outstanding as of the end of the reporting period, if any, are recognized as “Borrowings” on the Statement of Assets and Liabilities.
9. New Accounting Pronouncements
Amendments to Regulation S-X
In October 2016, the Securities and Exchange Commission (SEC) adopted new rules and amended existing rules (together, the “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date of the amendments to Regulation S-X is August 1, 2017. Management is still evaluating the impact of the final rules, if any.
98 NUVEEN
10. Subsequent Events
Fund Shares
The Funds have an effective registration statement on file with the Securities and Exchange Commission (SEC) to issue Class T Shares, which are not yet available for public offering.
NUVEEN 99
Additional
Fund Information (Unaudited)
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
Independent Registered
Public Accounting Firm
KPMG LLP
200 East Randolph Drive
Chicago, IL 60601
Custodian
State Street Bank & Trust Company
One Lincoln Street
Boston, MA 02111
Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
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 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 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.
100 NUVEEN
Glossary of Terms
Used in this Report (Unaudited)
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. The calculation of the Effective Leverage Ratio reflects borrowings effected on a long-term basis for investment purposes, but excludes borrowings that may occur, on a transient basis, in connection with a Fund’s day-to-day operations primarily in connection with the need to pay cash out to redeeming shareholders or to settle portfolio trades.
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.
Industrial Development Revenue Bond (IDR): A unique type of revenue bond issued by a state or local government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment and tools.
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. 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 Intermediate Municipal Debt Funds Classification Average: Represents the average annualized total return for all reporting funds in the Lipper California Intermediate 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 101
Glossary of Terms Used in this Report (Unaudited) (continued)
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 result in lower borrowing costs for bond issuers.
S&P Municipal Bond California Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade California municipal bond market. Index returns assume reinvestment of distributions but do not reflect any applicable sales charges or management fees.
S&P Municipal Bond Intermediate Index: An unleveraged, market value-weighted index containing all bonds in the S&P Municipal Bond Index that mature between 3 and 14.999 years. Index returns assume reinvestment of distributions but do not reflect any applicable sales charges or management fees.
S&P Municipal Bond Index: An unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
S&P Municipal Yield Index: Comprises all of the bonds in the S&P Municipal Bond Index that are non-rated or rated BB+ by S&P and/or Ba1 or lower by Moody’s. 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 fund’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.
102 NUVEEN
Annual Investment Management Agreement
Approval Process (Unaudited)
Approval Process (Unaudited)
The Board of Trustees of each Fund (the “Board,” and each Trustee a “Board Member”), 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 overseeing the performance of the investment adviser and sub-adviser to the respective Fund and determining whether to approve or, after an initial term, to continue, as applicable, such Fund’s advisory agreements. A discussion of the Board’s approval of the renewal of the advisory arrangements for the Nuveen California High Yield Municipal Bond Fund (the “California High Yield Fund”) and the Nuveen California Municipal Bond Fund (the “California Bond Fund”) is set forth in Part I below. The advisory arrangements for the Nuveen California Intermediate Municipal Bond Fund (the “California Intermediate Bond Fund”) have not yet been up for renewal. A discussion of the Board’s initial approval of the advisory arrangements for the California Intermediate Bond Fund is set forth in Part II below.
I. Nuveen California High Yield Municipal Bond Fund
Nuveen California Municipal Bond Fund
The Board is responsible for overseeing the performance of the investment adviser and sub-adviser to the California High Yield Fund and the California Bond Fund (for purposes of this Part I, each, a “Fund”) and determining whether to continue, for each Fund, the advisory agreement (for purposes of this Part I, the “Investment Management Agreement”) between such Fund and Nuveen Fund Advisors, LLC (the “Adviser”) and the sub-advisory agreement (for purposes of this Part I, the “Sub-Advisory Agreement” and, together with the Investment Management Agreement, the “Advisory Agreements”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”). Following an initial term with respect to each Fund upon its commencement of operations, the Board reviews the Investment Management Agreement and the Sub-Advisory Agreement on behalf of such Fund and votes to determine whether the respective Advisory Agreement should be renewed. Accordingly, at an in-person meeting held on May 24-26, 2016 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the existing Advisory Agreements for the Funds.
During the year, the Board and its Committees met regularly to receive materials and discuss a variety of topics impacting the Funds including, among other things, overall market conditions and market performance, Fund investment performance, brokerage execution, valuation of securities, Rule 12b-1 plans and payments, sub-transfer agency and other payments to financial intermediaries, compliance matters, securities lending, risk management and ongoing initiatives. The Board had established several standing Committees, including the Open-end Fund Committee and Closed-end Fund Committee which permit the Board Members to delve further into the topics particularly relevant to the respective product line and enhance the Board’s effectiveness and oversight of the Funds. The Board also seeks to meet with the Sub-Adviser and its investment team at least once over a multiple year rotation through site visits. The information and knowledge the Board gained throughout the year from the Board and Committee meetings, site visits and the related materials were relevant to the Board’s evaluation of the Advisory Agreements, and the Board took such information into account in its review of the Advisory Agreements.
In addition to the materials received throughout the year, the Board received additional materials prepared specifically for its annual review of the Advisory Agreements in response to a request by independent legal counsel on behalf of the Independent Board Members. The materials addressed a variety of topics, including a description of the services provided by the Adviser and the Sub-Adviser (for purposes of this Part I, each, a “Fund Adviser”); a review of fund performance with a detailed focus on any performance outliers; an analysis of the investment teams; an analysis of the fees and expense ratios of the Funds, including information comparing such fees and expenses to that of peer groups; an assessment of shareholder services for the Funds and of the performance of certain service providers; a review of initiatives instituted or continued during the past year; and information regarding the profitability of the Fund Advisers, the compensation of portfolio managers, and compliance and risk matters.
As part of its annual review, the Board held a separate meeting on April 12-13, 2016 to review the Funds’ investment performance and consider an analysis by the Adviser of the Sub-Adviser examining, among other things, the team’s assets under management, investment performance, investment approach, and the stability and structure of the Sub-Adviser’s organization and investment team. During the review, the Independent Board Members requested and received additional information from management. Throughout the year and throughout their review of the Advisory Agreements, the Independent Board Members were assisted by independent legal counsel. The Independent Board Members met separately with independent legal counsel without management present and received a memorandum from such counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreements. The Independent Board Members’ review of the Advisory Agreements reflected an ongoing process that incorporated the information and considerations that occurred over the years, including the most recent year, as well as the information specifically furnished for the re
NUVEEN 103
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
newal process. In deciding to renew the Advisory Agreements, the Independent Board Members did not identify a particular factor as controlling, but rather the decision reflected the comprehensive consideration of all the information presented. The following summarizes the principal factors, but not all the factors, the Board considered in its review of the Advisory Agreements and its conclusions.
A. Nature, Extent and Quality of Services
In evaluating the renewal of the Advisory Agreements, the Independent Board Members received and considered information regarding the nature, extent and quality of the applicable Fund Adviser’s services provided to the respective Fund and the initiatives undertaken during the past year by the Adviser. The Board recognized the comprehensive set of services the Adviser provided to manage and operate the Nuveen funds, including (a) product management (such as setting dividends, positioning the product in the marketplace, managing the relationships with the distribution platforms, maintaining and enhancing shareholder communications and reporting to the Board); (b) investment services (such as overseeing sub-advisers and other service providers; analyzing investment performance and risks; overseeing risk management and disclosure; developing and interpreting investment policies; assisting in the development of products; helping to prepare financial statements and marketing disclosures; and overseeing trade execution); (c) fund administration (such as helping to prepare fund tax returns and complete other tax compliance matters; and helping to prepare regulatory filings and shareholder reports); (d) fund Board administration (such as preparing Board materials and organizing and providing assistance for Board meetings); (e) compliance (such as helping to devise and maintain the funds’ compliance program and related testing); and (f) legal support (such as helping to prepare registration statements and proxy statements, interpreting regulations and policies and overseeing fund activities).
The Board reviewed the continued investment the Adviser had made in its business to continue to strengthen the breadth and quality of its services to the benefit of the Nuveen funds. The Board noted the Adviser’s additional staffing in key areas that support the funds and the Board, including in investment services, operations, fund governance, compliance, fund administration, product management, retail distribution and information technology. Among the enhancements to its services, the Board recognized the Adviser’s (a) expanded activities and support required as a result of regulatory developments, including in areas of compliance and reporting; (b) increased support for dividend management; (c) continued investment in its technical capabilities as the Adviser continued to build out a centralized fund data platform, enhance mobility and remote access capabilities, rationalize and upgrade software platforms, and automate certain regulatory liquidity determinations; (d) continued efforts to rationalize the product line through mergers, liquidations and re-positioning of the Nuveen funds with the goal of increasing efficiencies, reducing costs, improving performance and addressing shareholder needs; (e) continued efforts to develop new lines of business designed to enhance the Nuveen product line and meet investor demands; and (f) continued commitment to enhance risk oversight, including the formation of the operational risk group to provide operational risk assessment, the access to platforms which provide better risk reporting to support investment teams, and the development of a new team to initially review new products and major product initiatives. The Board also recognized the Adviser’s efforts to renegotiate certain fees of other service providers which culminated in reduced expenses for all funds for custody and accounting services without diminishing the breadth and quality of the services provided. The Board considered the Chief Compliance Officer’s report regarding the Adviser’s compliance program, the Adviser’s continued development, execution and management of its compliance program, and the additions to the compliance team to support the continued growth of the Nuveen fund family and address regulatory developments.
The Board also considered information highlighting the various initiatives that the Adviser had implemented or continued during the year to enhance or support the open-end fund product line. The Board noted the Adviser’s continued initiatives (a) to develop and offer new outcome-oriented funds; (b) to refine the reports to the Board, including enhanced reporting regarding payments to intermediaries, as well as provide presentations to the Board to keep it apprised of various topics that are relevant to the open-end fund product line (such as marketing initiatives, portfolio analytics and sales results); (c) to modify the contingent deferred sales load structure for Class A shares to be more competitive with peers; (d) to launch a new share class to attract institutional clients; and (e) to change portfolio managers on various funds. The Board recognized that initiatives that attract assets to the Nuveen family of funds benefited the funds as fixed costs would be spread over a larger asset base and, as described below, through the complex-wide arrangement which generally would provide that the management fees of the funds (subject to limited exceptions) are reduced as asset levels for the complex increase. The Board also considered the Adviser’s review of the pricing on its entire open-end fund line which resulted in either a reduction in the contractual management fee, a reduction in a temporary expense cap or a combination thereof for numerous funds in the complex helping to better position such funds for future growth.
As noted, the Adviser also oversees the Sub-Adviser who primarily provides the portfolio advisory services to the Funds. The Board recognized the skill and competency of the Adviser in monitoring and analyzing the performance of the Sub-Adviser and managing the sub-advisory relationship. The Board noted that the Adviser recommended the renewal of each Sub-Advisory Agreement.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board considered the long-term and short-term performance history of the Nuveen funds. As noted above, the Board reviewed fund performance at its quarterly meetings throughout the year and took into account the information derived from the discussions with representatives of the Adviser about fund performance at these meetings. The Board also considered the Adviser’s analysis of fund performance with particular focus on any perfor
104 NUVEEN
Annual Investment Management Agreement Approval Process (Unaudited) (continued)
mance outliers and the factors contributing to such performance and any steps the investment team had taken to address performance concerns. The Board reviewed, among other things, each Fund’s investment performance both on an absolute basis and in comparison to peer funds (the “Performance Peer Group”) and to 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, 2015, as well as performance information reflecting the first quarter of 2016.
In evaluating performance information, the Board recognized the following factors may impact the performance data as well as the consideration to be given to particular performance data:
| • | The performance data reflected a snapshot in time, in this case as of the end of the most recent calendar year or quarter. A different performance period, however, could generate significantly different results. |
| • | Long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme had the ability to disproportionately affect long-term performance. |
| • | Shareholders evaluate performance based on their own holding period which may differ from the performance period reviewed by the Board, leading to different performance results. |
| • | Open-end funds offered multiple classes and the performance data provided for open-end funds was based on Class A shares. The performance of the other classes of a fund, however, should be substantially similar on a relative basis because all of the classes would be invested in the same portfolio of securities and differences in performance among classes could be principally attributed to the variations in distribution and servicing expenses of each class. |
| • | The Board recognized the difficulty in establishing appropriate peer groups and benchmarks for certain funds, including the California High Yield Fund. The Board noted that management classified the Performance Peer Groups as low, medium and high in relevancy and took the relevancy of the Performance Peer Group into account when considering the comparative performance data. If the Performance Peer Group differed somewhat from a fund, the Board recognized that the comparative performance data may be of limited value. The Board also recognized that each fund operated pursuant to its own investment objective(s), parameters and restrictions which may differ from that of the Performance Peer Group or benchmark and that these variations lead to differences in performance results. |
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. The Board was aware, however, that shareholders chose to invest or remain invested in a fund knowing that the Adviser and applicable sub-adviser manage the fund, knowing the fund’s investment strategy and seeking exposure to that strategy (even if the strategy was “out of favor” in the marketplace) and knowing the fund’s fee structure.
For the California High Yield Fund, the Board noted that the Fund ranked in its Performance Peer Group in the first quartile in the one-, three- and five- year periods and outperformed its benchmark in each of such periods. The Board determined that the Fund’s performance had been favorable.
For the California Bond Fund, the Board noted that the Fund ranked in its Performance Peer Group in the first quartile in the one-, three- and five-year periods and outperformed its benchmark in each of such periods. The Board determined that the Fund’s performance had been favorable.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and other fees and expenses of each Fund. The Board reviewed, among other things, the gross and net management fees and net total expenses of each Fund (expressed as a percentage of average net assets) in absolute terms and also in comparison to the fee and expense levels of a comparable universe of funds (the “Peer Universe”) and to a more focused subset in the Peer Universe (the “Peer Group”), each selected by an independent third-party fund data provider. The Independent Board Members also reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group.
In their evaluation of the management fee schedule, the Independent Board Members considered the fund-level and complex-wide breakpoint schedules, as described in further detail below. The Independent Board Members also took into account any fee waivers and/or expense reimbursements provided by Nuveen. In this regard, as noted above, the Board considered that management recently completed a review of the pricing of its open-end funds which resulted in the reduction of management fees and/or expense caps of various open-end funds. The Independent Board Members considered that the foregoing changes were estimated to result in significant savings to such funds either through a reduction in advisory fees paid or an increase in the fee waivers absorbed by Nuveen.
In reviewing the comparative fee and expense information, the Independent Board Members recognized that 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; differences in services provided; and differences in the states reflected in the Peer Universe or Peer Group can impact the usefulness of the comparative data in helping to assess the appropriateness of a fund’s fees and expenses. In addition, in reviewing a fund’s fees and expenses
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compared to the fees and expenses of its peers, the Board generally considered the fund’s expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were 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. The Board reviewed the net expense ratio in recognition that the net expense ratio generally best represented the net experience of the shareholders of a fund as it directly reflected the costs of investing in the respective fund. The Board noted that the majority of the Nuveen funds had a net expense ratio near or below the average of the respective peers. For funds with a net expense ratio of 6 basis points or higher than their respective peer average, the Independent Board Members reviewed the reasons for the outlier status and were satisfied with the explanation for the difference or with any steps taken to address the difference.
The Board noted that the California Bond Fund had a net management fee in line with its peer average and a net expense ratio below its peer average, and the California High Yield Fund had a net management fee slightly higher than the peer average but a net expense ratio in line with the peer average.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees (as applicable) 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 also reviewed information regarding the fee rates for other types of clients advised or sub-advised by the respective Fund Adviser. For the Adviser and/or the Sub-Adviser, such other clients may include municipal separately managed accounts and passively managed exchange traded funds (ETFs).
The Board recognized that each Fund had an affiliated sub-adviser. With respect to affiliated sub-advisers, including the Sub-Adviser, the Board reviewed, among other things, the range of advisory fee rates and average fee rate assessed for the different types of clients. The Board reviewed information regarding the different types of services provided to the Funds compared to that provided to these other clients which typically did not require the same breadth of day-to-day services required for registered funds. The Board further considered information regarding the differences in, among other things, the distribution systems, investment policies, investor profiles, and account sizes between the Nuveen funds and the other types of clients. In addition, the Independent Board Members also recognized that the management fee rates of the foreign funds advised by the Adviser may also vary due to, among other things, differences in the client base, governing bodies, operational complexities and services covered by the management fee. The Independent Board Members recognized that the foregoing variations resulted in different economics among the product structures and culminated in varying management fees among the types of clients and funds.
The Board also was aware that, since the Funds had a sub-adviser, each Fund’s management fee reflected two components, the fee retained by the Adviser for its services and the fee the Adviser paid to the Sub-Adviser. The Board noted that many of the administrative services provided to support the Funds by the Adviser may not be required to the same extent or at all for the institutional clients or other clients. In general, the Board noted that higher fee levels reflected higher levels of service provided by the Fund Adviser, increased investment management complexity, greater product management requirements and higher levels of business risk or some combination of the foregoing. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members concluded 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 on an absolute basis and in comparison to other investment advisers. The Independent Board Members reviewed, among other things, Nuveen’s adjusted operating margins, the gross and net revenue margins (pre-tax and after-tax) for advisory activities for the Nuveen funds, and the revenues, expenses, and net income (pre-tax and after-tax) of Nuveen for each of the last two calendar years. The Independent Board Members reviewed an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2015. The Independent Board Members also noted that the sub-advisory fees for the Funds are paid by the Adviser, however, the Board recognized that the Sub-Adviser is affiliated with Nuveen. In their review, the Independent Board Members recognized that profitability data is rather subjective as various allocation methodologies may be reasonable to employ but yet yield different results. The Board also reviewed the results of certain alternative methodologies. The Board considered the allocation methodology employed to prepare the profitability data as well as a summary of the refinements to the methodology that had been adopted over the years which may limit some of the comparability of Nuveen’s revenue margins over time. Two Independent Board Members also served as point persons for the Board throughout the year to review and discuss the methodology employed to develop the profitability analysis and any proposed changes thereto and to keep the Board apprised of such changes during the year. In reviewing the profitability data, the Independent Board Members noted that Nuveen’s operating margin as well as its margins for its advisory activities to the Nuveen funds for 2015 were consistent with such margins for 2014.
The Board also considered Nuveen’s adjusted operating margins compared to that of other comparable investment advisers (based on asset size and composition) with publicly available data. The Independent Board Members recognized, however, the limitations of the comparative data as the other advisers may have a different business mix, employ different allocation methodologies, have different capital structure and costs, may not
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be representative of the industry or other factors that limit the comparability of the profitability information. Nevertheless, the Independent Board Members noted that Nuveen’s adjusted operating margins appeared comparable to the adjusted margins of the peers.
Further, as the Adviser is a wholly-owned subsidiary of Nuveen which in turn is an operating division of TIAA Global Asset Management, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA-CREF”), the Board reviewed a balance sheet for TIAA-CREF reflecting its assets, liabilities and capital and contingency reserves for the last two calendar years to have a better understanding of the financial stability and strength of the TIAA-CREF complex, together with Nuveen.
Based on the information provided, the Independent Board Members noted that the Adviser appeared to be sufficiently profitable to operate as a viable investment management firm and to honor its obligations as a sponsor of the Nuveen funds.
With respect to the Sub-Adviser, the Independent Board Members also considered the profitability of the Sub-Adviser from its relationship with the Nuveen funds. The Independent Board Members reviewed the Sub-Adviser’s revenues, expenses and revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 2015. The Independent Board Members also reviewed profitability analysis reflecting the revenues, expenses and revenue margin (pre- and post-tax) by asset type for the Sub-Adviser for the calendar year ending December 31, 2015.
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 received or were expected to receive that were directly attributable to the management of a Fund. 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, the Independent Board Members determined that the Adviser’s and the Sub Adviser’s levels of profitability were reasonable in light of the respective services provided.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
The Independent Board Members recognized that, as the assets of a particular fund or the Nuveen complex in the aggregate increase over time, economies of scale may be realized with respect to the management of the funds, and the Independent Board Members considered the extent to which these economies are shared with the funds and their shareholders. Although the Independent Board Members recognized that economies of scale are difficult to measure with precision, the Board noted that there were several acceptable means to share economies of scale, including through breakpoints in the management fee schedule reducing the fee rates as asset levels grow, fee waiver and expense limitation agreements and the Adviser’s investment in its business which can enhance the services provided to the funds. With respect to breakpoints, the Independent Board Members noted that, subject to certain exceptions, the funds in the Nuveen complex, including the Funds, pay a management fee to the Adviser which is generally comprised of a fund-level component and complex-level component. The fund-level fee component declines as the assets of the particular fund grow and the complex-level fee component declines when eligible assets of all the funds in the Nuveen complex combined grow. The complex-wide fee arrangement was designed to capture economies of scale achieved when total fund complex assets increase, even if the assets of a particular fund are unchanged or decrease. The approach reflected the notion that some of Nuveen’s costs were attributable to services provided to all its funds in the complex, and therefore all funds should benefit if these costs were spread over a larger asset base.
The Independent Board Members reviewed the breakpoint and complex-wide schedules and any savings achieved from expense caps (as applicable), fund-level breakpoints and complex-wide fee reductions for the 2015 calendar year for the funds. In this regard, the Independent Board Members noted that additional economies of scale were shared with shareholders of each Fund through its permanent expense cap.
In addition, the Independent Board Members recognized the Adviser’s ongoing investment in its business to expand or enhance the services provided to the Nuveen funds. The Independent Board Members noted, among other things, the additions to groups who play a key role in supporting the funds including in fund administration, operations, fund governance, investment services, compliance, product management, retail distribution and technology. The Independent Board Members also recognized the investments in systems necessary to manage the funds including in areas of risk oversight, information technology and compliance.
Based on their review, the Independent Board Members concluded that the current fee structure was acceptable and reflected economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
The Independent Board Members received and considered information regarding other additional benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Funds, including compensation paid to affiliates and research received in connection with brokerage transactions (i.e., soft dollar arrangements). In this regard, the Independent Board Members recognized that an affiliate of the Adviser served as the Funds’ principal underwriter and may receive compensation therefore from, among other things, sales charges, distribution fees and shareholder services fees (which included fees received pursuant to any 12b-1 plan). The Independent Board Members therefore took into account, among other things, the 12b-1 fees retained by Nuveen during the last calendar year.
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In addition to the above, the Independent Board Members considered that the Funds’ portfolio transactions are allocated by the Sub-Adviser and the Sub-Adviser may benefit from research received through soft-dollar arrangements. The Board noted, however, that with respect to transactions in fixed income securities, such securities generally trade on a principal basis and do not generate soft dollar credits. Although the Board recognized the Sub-Adviser may benefit from a soft dollar arrangement if it does not have to pay for this research out of its own assets, the Board also recognized that any such research may benefit the Funds to the extent it enhances the ability of the Sub-Adviser to manage the Funds.
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, concluded that the terms of each Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
II. Nuveen California Intermediate Municipal Bond Fund
The Board Members are responsible for approving advisory arrangements and, at a meeting held on October 9, 2016 (the “October Meeting”), were asked to approve the advisory arrangements for the California Intermediate Bond Fund (for purposes of this Part II, the “Fund”). At the October Meeting, the Board Members, including the Independent Board Members, considered and approved the investment management agreement (for purposes of this Part II, the “Investment Management Agreement”) between the Fund and Nuveen Fund Advisors, LLC (the “Adviser”), and the investment sub-advisory agreement (for purposes of this Part II, the “Sub-Advisory Agreement”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”). For purposes of this Part II, the Adviser and the Sub-Adviser are each hereafter a “Fund Adviser” and the Investment Management Agreement and the Sub-Advisory Agreement are each hereafter an “Advisory Agreement.”
To assist the Board in its evaluation of an Advisory Agreement with a Fund Adviser at the October Meeting, the Independent Board Members had received, in adequate time in advance of the October Meeting or at prior meetings, materials which outlined, among other things:
| • | the nature, extent and quality of the services expected to be provided by the Fund Adviser; |
| • | the organization of the Fund Adviser, including the responsibilities of various departments and key personnel; |
| • | the expertise and background of the Fund Adviser with respect to the Fund’s investment strategy; |
| • | certain performance-related information (as described below); |
| • | the profitability of Nuveen and its affiliates for their advisory activities; |
| • | the proposed management fees of the Fund Adviser, including comparisons of such fees with the management fees of comparable funds; |
| • | the expected expenses of the Fund, including comparisons of the Fund’s expected expense ratio with the expense ratios of comparable funds; and |
| • | the soft dollar practices of the Fund Adviser, if any. |
At the October Meeting and/or prior meetings, the Adviser made presentations to and responded to questions from the Board. During the October Meeting and/or prior meetings, the Independent Board Members also met privately with their legal counsel to, among other things, review the Board’s duties under the Investment Company Act of 1940 (the “1940 Act”), the general principles of state law in reviewing and approving advisory contracts, the standards used by courts in determining whether investment company boards of directors have fulfilled their duties, factors to be considered in voting on advisory contracts and an adviser’s fiduciary duty with respect to advisory agreements and compensation. It is with this background that the Independent Board Members considered the Advisory Agreements. As outlined in more detail below, the Independent Board Members considered all factors they believed relevant with respect to the Fund, including, among other things: (a) the nature, extent and quality of the services expected to be provided by the Fund Advisers; (b) investment performance, as described below; (c) the advisory fees and costs of the services expected to be provided to the Fund and the profitability of the Fund Advisers; (d) the extent of any anticipated economies of scale; (e) any benefits expected to be derived by the Fund Advisers from their relationships 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 the Fund’s Advisory Agreements.
A. Nature, Extent and Quality of Services
The Independent Board Members considered the nature, extent and quality of the respective Fund Adviser’s services, including portfolio management services and administrative services. Given that the Adviser and the Sub-Adviser already serve as adviser and sub-adviser, respectively, to other Nuveen funds overseen by the Board Members, the Board has a good understanding of each such Fund Adviser’s organization, operations, personnel and ser
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vices. As the Independent Board Members meet regularly throughout the year to oversee the Nuveen funds, including funds currently advised by the Fund Advisers, the Independent Board Members have relied upon their knowledge from their meetings and any other interactions throughout the year with the respective Fund Adviser in evaluating the Advisory Agreements.
At the October Meeting and/or at prior meetings, the Independent Board Members reviewed materials outlining, among other things, the respective Fund Adviser’s organization and business; the types of services that such Fund Adviser or its affiliates provide to the Nuveen funds (as applicable) and are expected to provide to the Fund; and the experience of the respective Fund Adviser with applicable investment strategies. Further, at the October Meeting and/or at prior meetings, the Independent Board Members have evaluated the background and experience of the relevant investment personnel.
With respect to services, the Board noted that the Fund would be a registered investment company that would operate in a regulated industry. In considering the services that were expected to be provided by the Fund Advisers, the Board recognized that the Adviser provides a comprehensive set of services to manage and operate the Nuveen funds, including: (a) product management (such as setting dividends; positioning the product in the marketplace; managing the relationships with the distribution platforms; maintaining and enhancing shareholder communications; and reporting to the Board); (b) investment services (such as overseeing sub-advisers and other service providers; analyzing investment performance and risks; overseeing risk management and disclosure; developing and interpreting investment policies; assisting in the development of products; helping to prepare financial statements and marketing disclosures; and overseeing trade execution); (c) fund administration (such as helping to prepare fund tax returns and complete other tax compliance matters; and helping to prepare regulatory filings and shareholder reports); (d) fund Board administration (such as preparing Board materials and organizing and providing assistance for Board meetings); (e) compliance (such as helping to devise and maintain the Nuveen funds’ compliance program and related testing); and (f) legal support (such as helping to prepare registration statements and proxy statements; interpreting regulations and policies; and overseeing fund activities).
The Independent Board Members noted that the Adviser would oversee the Sub-Adviser, which was expected to primarily provide the portfolio advisory services to the Fund. In addition, the Board Members recognized the Sub-Adviser’s relevant experience and expertise.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services expected to be provided to the Fund under each Advisory Agreement were satisfactory.
B. Investment Performance
The Fund was new and, therefore, did not have its own performance history. The Independent Board Members, however, were familiar with the performance records of other Nuveen funds advised by the Adviser and sub-advised by the Sub-Adviser, including the California Bond Fund, which is managed by the same portfolio manager that is expected to manage the Fund. In this regard, the Independent Board Members reviewed certain performance information relating to the California Bond Fund for various time periods, including trailing returns for the year-to-date, one-year, three-year, five-year and ten-year periods as of August 31, 2016, and calendar year returns for 2006 through 2015.
C. Fees, Expenses and Profitability
1. Fees and Expenses
In evaluating the management fees and expenses that the Fund was expected to bear, the Independent Board Members considered, among other things, the Fund’s proposed management fee structure, the rationale for its proposed fee levels, and its expected expense ratio in absolute terms as well as compared with the fees and expense ratios of comparable funds. Accordingly, the Independent Board Members reviewed, among other things, the proposed gross management fee and estimated net total expense ratio for the Fund, as well as comparative fee and expense data pertaining to the Fund’s peers in the Lipper category in which the Fund is expected to be classified. The Independent Board Members also considered that the proposed maximum management fee for the Fund was the same as that of the California Bond Fund. Further, the Independent Board Members considered the Fund’s proposed sub-advisory fee rate.
In addition, the Independent Board Members considered the Fund’s fund-level and complex-wide breakpoint schedules (described in further detail below), and any applicable fee waivers and expense reimbursements expected to be provided.
Based on their review of the fee and expense information provided, the Independent Board Members determined that the Fund’s management fees (as applicable) to a Fund Adviser were reasonable in light of the nature, extent and quality of services to be provided to the Fund.
2. Comparisons with the Fees of Other Clients
At the October Meeting and/or at prior meetings, the Board considered information regarding the fees that the Fund Advisers assess to the Nuveen funds compared to those of other clients, as described in further detail below. For the Adviser and/or the Sub-Adviser, such other clients may include municipal separately managed accounts and passively managed exchange-traded funds (ETFs).
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The Board recognized that the Fund would have an affiliated sub-adviser. With respect to affiliated sub-advisers, the Board has previously reviewed, among other things, the range of advisory fee rates and average fee rate assessed for the different types of clients. The Board has also reviewed information regarding the different types of services expected to be provided to the Fund compared to those provided to these other clients, which typically do not require the same breadth of day-to-day services required for registered funds. Further, the Board has previously considered information regarding the differences in, among other things, the distribution systems, investment policies, investor profiles, and account sizes between the Nuveen funds and the other types of clients. In addition, the Independent Board Members have also previously recognized that the management fee rates of the foreign funds advised by the Adviser may also vary due to, among other things, differences in the client base, governing bodies, operational complexities and services covered by the management fee. The Independent Board Members have recognized that the foregoing variations result in different economics among the product structures and culminate in varying management fees among the types of clients and funds.
The Board also was aware that, since the Fund would have a sub-adviser, its management fee reflected two components, the fee that would be retained by the Adviser for its services and the fee the Adviser would pay to the Sub-Adviser. The Board noted that many of the administrative services that the Adviser was expected to provide to support the Fund may not be required to the same extent or at all for the institutional clients or other clients. In general, the Board has noted that higher fee levels reflect higher levels of service provided by the Fund Adviser, increased investment management complexity, greater product management requirements and higher levels of business risk or some combination of the foregoing. Given the inherent differences in the various products, particularly the extensive services expected to be provided to the Fund, the Independent Board Members concluded such facts justify the different levels of fees.
3. Profitability of Fund Advisers
In conjunction with their review of fees at the October Meeting and/or at prior meetings, the Independent Board Members have considered the profitability of Nuveen for its advisory activities on an absolute basis and in comparison to other investment advisers. At the October Meeting and/or at prior meetings, the Independent Board Members have reviewed, among other things, Nuveen’s adjusted operating margins, the gross and net revenue margins (pre-tax and after-tax) for advisory activities for the Nuveen funds, and the revenues, expenses, and net income (pre-tax and after-tax) of Nuveen. The Independent Board Members have also reviewed an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability. Additionally, the Independent Board Members noted that the sub-advisory fee for the Fund would be paid by the Adviser, however, the Board recognized that the Sub-Adviser is affiliated with Nuveen. At the October Meeting and/or at prior meetings, the Independent Board Members have recognized that profitability data is rather subjective as various allocation methodologies may be reasonable to employ but yet yield different results. The Board has also reviewed the results of certain alternative methodologies. The Board has considered the allocation methodology employed to prepare the profitability data as well as a summary of the refinements to the methodology that had been adopted over the years which may limit some of the comparability of Nuveen’s revenue margins over time. Two Independent Board Members have also served as point persons for the Board to review and discuss the methodology employed to develop the profitability analysis and any proposed changes thereto and to keep the Board apprised of such changes.
At the October Meeting and/or at prior meetings, the Board has also considered Nuveen’s adjusted operating margins compared to that of other comparable investment advisers (based on asset size and composition) with publicly available data. The Independent Board Members have recognized, however, the limitations of the comparative data as the other advisers may have a different business mix, employ different allocation methodologies, have different capital structure and costs, may not be representative of the industry or other factors that limit the comparability of the profitability information. Nevertheless, the Independent Board Members have noted that Nuveen’s adjusted operating margins appeared comparable to the adjusted margins of the peers.
Further, as the Adviser is a wholly-owned subsidiary of Nuveen which in turn is an operating division of TIAA Global Asset Management, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA-CREF”), the Board has reviewed a balance sheet for TIAA-CREF reflecting its assets, liabilities and capital and contingency reserves to have a better understanding of the financial stability and strength of the TIAA-CREF complex, together with Nuveen.
Based on the information provided, the Independent Board Members have noted that the Adviser appeared to be sufficiently profitable to operate as a viable investment management firm and to honor its obligations as a sponsor of the Nuveen funds.
With respect to the Sub-Adviser, the Independent Board Members have also considered the profitability of the Sub-Adviser from its relationship with the Nuveen funds. The Independent Board Members have previously reviewed the Sub-Adviser’s revenues, expenses and revenue margins (pre- and post-tax) for its advisory activities. The Independent Board Members have also reviewed profitability analysis reflecting the revenues, expenses and revenue margin (pre- and post-tax) by asset type for the Sub-Adviser.
In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts expected to be paid to a Fund Adviser by the Fund as well as indirect benefits (such as soft dollar arrangements), if any, the Fund Adviser and its affiliates are expected to receive that would be directly attributable to the management of the Fund. See Section E below for additional information on indirect benefits a Fund Adviser may receive as a result of its relationship with the Fund.
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Based on their review, the Independent Board Members have determined that the Adviser’s and the Sub-Adviser’s levels of profitability are reasonable in light of the respective services provided.
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 that, in general, as the assets of a particular fund or the Nuveen complex in the aggregate increase over time, economies of scale may be realized with respect to the management of the funds. In this regard, the Independent Board Members considered whether the Fund could be expected to benefit from any economies of scale. Although the Independent Board Members have recognized that economies of scale are difficult to measure with precision, they have noted that there are several acceptable means to share economies of scale, including through breakpoints in the management fee schedule reducing the fee rates as asset levels grow, fee waiver and expense limitation agreements, and the Adviser’s investment in its business which can enhance the services provided to the Nuveen funds.
Subject to certain exceptions, the funds in the Nuveen complex pay a management fee to the Adviser which is generally comprised of a fund-level component and a complex-level component. Generally, the fund-level fee component declines as the assets of a particular fund grow. Accordingly, the Independent Board Members reviewed and considered the proposed management fee for the Fund, taking into account the fund-level breakpoints. In addition, at the October Meeting and/or at prior meetings, the Board has also considered the Nuveen funds’ complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, generally, the complex-level fee component declines when eligible assets of the funds in the Nuveen complex combined grow. In evaluating the complex-wide fee arrangement, the Independent Board Members have considered that such arrangement was designed to capture economies of scale achieved when total fund complex assets increase, even if the 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 should benefit if these costs are spread over a larger asset base. Additionally, the Independent Board Members considered the Fund’s proposed temporary expense cap.
Further, the Board has noted that economies of scale may be shared through the Adviser’s investment in its business and, at the October Meeting and/or at prior meetings, the Independent Board Members have recognized the Adviser’s ongoing investment in its business to expand or enhance the services provided to the Nuveen funds. In this regard, the Independent Board Members have noted, among other things, the additions to groups who play a key role in supporting the funds including in fund administration, operations, fund governance, investment services, compliance, product management, retail distribution and technology. The Independent Board Members have also recognized the investments in systems necessary to manage the funds including in areas of risk oversight, information technology and compliance.
Based on their review, the Independent Board Members concluded that the proposed fee structure was acceptable and reflected economies of scale to be shared with the Fund’s shareholders when assets under management increase.
E. Indirect Benefits
In evaluating fees, the Independent Board Members considered information received at the October Meeting and/or at prior meetings regarding other additional benefits that a Fund Adviser or its affiliates may receive as a result of their relationship with the Fund, including compensation paid to affiliates and research received in connection with brokerage transactions (i.e., soft dollar arrangements). In this regard, the Independent Board Members considered, among other things, any sales charges, distribution fees and shareholder services fees expected to be received and retained by the Fund’s principal underwriter, an affiliate of the Adviser (including fees to be received pursuant to any 12b-1 plan).
In addition to the above, the Independent Board Members considered that the Fund’s portfolio transactions will be allocated by the Sub Adviser and the Sub Adviser may benefit from research received through soft dollar arrangements. The Board has noted, however, that with respect to transactions in fixed income securities, such securities generally trade on a principal basis and do not generate soft dollar credits. Although the Board recognized that the Sub Adviser may benefit from a soft dollar arrangement if it does not have to pay for this research out of its own assets, the Board also recognized that any such research may benefit the Fund to the extent it enhances the ability of the Sub Adviser to manage the Fund.
Based on their review, the Independent Board Members concluded that any indirect benefits expected to be received by a Fund Adviser as a result of its relationship with the Fund were reasonable and within acceptable parameters.
F. Approval
The Independent Board Members did not identify any single factor discussed previously as all important or controlling. The Board Members, including a majority of the Independent Board Members, concluded that the terms of the Investment Management Agreement and the Sub Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services to be provided to the Fund and that the Investment Management Agreement and Sub Advisory Agreement should be and were approved on behalf of the Fund.
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Trustees
and Officers
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 twelve. 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 Trustee |
| Independent Trustees: | ||||
| William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman and Trustee | 1996 | Chairman of Miller-Valentine Partners, a real estate investment company; Board Member of WDPR Public Radio station; formerly, Senior Partner and Chief Operating Officer (retired (2004) of Miller-Valentine Group; formerly, Board member, Business Advisory Council of the Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council; past Chair and Director, Dayton Development Coalition. | 181 |
| Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; Director, The Gazette Company; Life Trustee of Coe College and the Iowa College Foundation; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; 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. | 181 |
| William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2003 | Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; past Director (2005-2015), and past President (2010- 2014) Beta Gamma Sigma, Inc., The International Business 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. | 181 |
112 NUVEEN
Trustees and Officers (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 Trustee |
| 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 and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible; Board member of Milwaukee Repertory Theatre (since 2016). | 181 |
| Albin F. Moschner(2) 1952 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Founder and Chief Executive Officer, Northcroft Partners, LLC, a management consulting firm (since 2012); previously, held positions at Leap Wireless International, Inc., including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (1996-1997); formerly, various executive positions with Zenith Electronics Corporation (1991-1996). Director, USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions (since 2012); formerly, Director, Wintrust Financial Corporation (1996-2016). | 181 |
| John K. Nelson 1962 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2013 | 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 senior external advisor to the financial services practice of Deloitte Consulting LLP (2012-2014); 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. | 181 |
| Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Board Member, Land Trust Alliance (since 2013) and U.S. Endowment for Forestry and Communities (since 2013); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 181 |
| 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). | 181 |
NUVEEN 113
Trustees and Officers (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 Trustee |
| Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Co-Founding Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010) and Quality Control Corporation (since 2012); member: Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its investment committee; 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); 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). | 181 |
| Margaret L. Wolff 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Member of the Board of Directors (since 2013) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | 181 |
| 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 Trustee |
| Interested Trustees: | ||||
| William Adams IV(3) 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Co-Chief Executive Officer and Co-President (since March 2016), formerly, Senior Executive Vice President, Global Structured Products (2010-2016), prior thereto, Executive Vice President, U.S. Structured Products (1999-2010) of Nuveen Investments, Inc.; Executive Vice President (since February 2017) of Nuveen, LLC; Co-President of Nuveen Fund Advisors, LLC (since 2011); Co-President, Global Products and Solutions (since January 2017), formerly, Co-Chief Executive Officer (2016-2017), formerly, Senior Executive Vice President of Nuveen Securities, LLC; President (since 2011), of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda's Club Chicago. | 181 |
114 NUVEEN
Trustees and Officers (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 Trustee |
| Margo L. Cook(2)(3) 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Co-Chief Executive Officer and Co-President (since March 2016), formerly, Senior Executive Vice President of Nuveen Investments, Inc; Executive Vice President (since February 2017) of Nuveen, LLC; Co-President, Global Products and Solutions (since January 2017), formerly, Co-Chief Executive Officer (2015-2016), formerly, Executive Vice President (2013-2015) of Nuveen Securities, LLC; Co-President (since October 2016), formerly Senior Executive Vice President (2015-2016) of Nuveen Fund Advisors, LLC (Executive Vice President 2011-2015); formerly, Managing Director of Nuveen Commodities Asset Management, LLC (2011- 2016); Chartered Financial Analyst. | 181 |
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer |
| Officers of the Funds: | ||||
| Greg A. Bottjer 1971 333 West Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 2016 | Senior (since 2017) Managing Director (since 2011), formerly, Senior Vice President (2007-2010) of Nuveen; Senior (since 2017) Managing Director (since October 2016) of Nuveen Fund Advisors, LLC; Chartered Financial Analyst. | 98 |
| Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2004) of Nuveen. | 182 |
| 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 (2005-2013) of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Managing Director (since 2016) of Nuveen Securities, LLC; Certified Public Accountant. | 182 |
| Nathaniel T. Jones 1979 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2016 | Managing Director (since January 2017), formerly, Senior Vice President (2016-2017), formerly, Vice President (2011- 2016) of Nuveen; Chartered Financial Analyst. | 182 |
| Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Managing Director (since January 2017), formerly, Senior Vice President (2008-2017) of Nuveen Investments Holdings, Inc. | 182 |
| Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Managing Director (since January 2017), formerly, Senior Vice President (2014-2017) of Nuveen Securities, LLC. | 182 |
NUVEEN 115
Trustees and Officers (continued)
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer |
| Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017), Secretary (since 2016) and General Counsel (since 2016), formerly, Managing Director and Assistant Secretary of Nuveen Investments, Inc.; Senior Managing Director (since January 2017), formerly, Executive Vice President (2016-2017), formerly, Managing Director (2008-2016), and Assistant Secretary (since 2008) of Nuveen Securities, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017), and Secretary (since 2016), formerly, Managing Director (2008-2016) and Assistant Secretary (2007-2016), and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017) and Secretary (since 2016), formerly, Managing Director, Assistant Secretary (2011-2016), and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017) and Secretary (since 2016) of Nuveen Investments Advisers, LLC; Vice President (since 2007) and Secretary (since 2016) of NWQ Investment Management Company, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC and Winslow Capital Management, LLC (since 2010); Vice President (since 2010) and Secretary (since 2016), formerly, Assistant Secretary of Nuveen Commodities Asset Management, LLC. | 182 |
| 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). | 182 |
| Christopher M. Rohrbacher 1971 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2008 | Managing Director (since January 2017) of Nuveen Securities, LLC; Managing Director (Since January 2017), formerly, Senior Vice President (2016-2017) and Assistant Secretary (since October 2016) of Nuveen Fund Advisors, LLC; Vice President and Assistant Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 182 |
| Joel T. Slager 1978 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013). | 182 |
116 NUVEEN
Trustees and Officers (continued)
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer |
| Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 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); Vice President (since February 2017), formerly, Managing Director (2003-2017) and Assistant Secretary (since 2003) of Symphony Asset Management LLC ; Managing Director and Assistant Secretary (since 2002) of Nuveen Investments Advisers, LLC; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Chartered Financial Analyst. | 182 |
(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 director was first elected or appointed to any fund in the Nuveen Fund Complex.
(2) On June 22, 2016, Ms. Cook and Mr. Moschner were appointed as Board Members, effective July 1, 2016.
(3) “Interested persons” of the Trust, as defined in the 1940 Act, by reason of their positions with Nuveen and certain of its subsidiaries.
(4) 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 117
Notes
118 NUVEEN
Notes
NUVEEN 119
Nuveen:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen helps secure the long-term goals of individual investors and the advisors who serve them, providing access to investment expertise from leading asset managers and solutions across traditional and alternative asset classes. Built on more than a century of industry leadership, Nuveen’s teams of experts align with clients’ specific financial needs and goals, demonstrating commitment to advisors and investors through market perspectives and wealth management and portfolio advisory services. Nuveen manages $236 billion in assets as of December 31, 2016.
Find out how we can help you.
To learn more about how the products and services of Nuveen 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, 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
Securities offered through Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com
MAN-CA-0217D138529
Mutual Funds
Nuveen Municipal
Bond Funds
It's not what you earn, it's what you keep.®
Annual Report February 28, 2017
| Class / Ticker Symbol | |||||||
| Fund Name | Class A | Class C | Class C2 | Class I | |||
| 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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or
Table
of Contents
NUVEEN 3
Chairman’s Letter
to Shareholders
to Shareholders
Dear Shareholders,
Whether politics or the economy will prevail over the financial markets this year has been a much-analyzed question. After the U.S. presidential election, stocks rallied to new all-time highs, bonds tumbled, and business and consumer sentiment grew pointedly optimistic. But, to what extent the White House can translate rhetoric into stronger economic and corporate earnings growth remains to be seen. Stock prices have experienced upward momentum driven by positive economic news, interest rates are rising in light of the next anticipated Federal Reserve (Fed) rate hikes and inflation is ticking higher.
The Trump administration's early policy decisions have caused the markets to reassess their outlooks, cooling the stock market rally and stabilizing bond prices. The White House's pro-growth agenda of tax reform, infrastructure spending and deregulation remains on the table, but there is growing recognition that it may look different than Wall Street had initially expected.
Nevertheless, there is a case for optimism. The jobs recovery, firming wages, the housing market and confidence measures are supportive of continued expansion in the economy. The Fed enacted its second and third interest rate hikes in December 2016 and March 2017, respectively, a vote of confidence that its employment and inflation targets are on track. Economies outside the U.S. have strengthened in recent months, possibly heralding the beginnings of a global synchronized recovery. Furthermore, the populist/nationalist undercurrent that helped deliver President Trump’s win and the U.K.’s decision to leave the European Union (or “Brexit”) remained in the minority in the Dutch general election in March, easing the political uncertainty surrounding France and Germany’s elections later this year.
In the meantime, the markets will be focused on economic sentiment surveys along with “hard” data such as consumer and business spending to gauge the economy’s progress. With the Fed now firmly in tightening mode, rate moves that are more aggressive than expected could spook the markets and potentially stifle economic growth. On the political economic front, President Trump’s other signature platform plank, protectionism, is arguably anti-growth. We expect some churning in the markets as these issues sort themselves out.
Market volatility readings have been remarkably low of late, but conditions can change quickly. As market conditions evolve, Nuveen remains committed to rigorously assessing opportunities and risks. If you’re concerned about how resilient your investment portfolio might be, we encourage you to talk to your financial advisor. 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 24, 2017
4 NUVEEN
Portfolio Managers’
Comments
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 management by Nuveen Asset Management, LLC, an affiliate of Nuveen, LLC. Portfolio managers Michael S. Hamilton, Paul L. Brennan, CFA, and Scott R. Romans, PhD, review market conditions, key investment strategies and the Funds’ performance during the twelve-month reporting period ended February 28, 2017.
Since 2011, Michael has managed the Nuveen Connecticut Municipal Bond Fund and the Nuveen Massachusetts Municipal Bond Fund, Paul has managed the Nuveen New Jersey Municipal Bond Fund, and Scott has managed the Nuveen New York Municipal Bond Fund.
What factors affected the U.S. economy and the national municipal bond market during the twelve-month reporting period ended February 28, 2017?
The U.S. economy continued to expand at its below-trend rate but showed some signs of strengthening in the latter months of the reporting period. For 2016 as a whole, the Bureau of Economic Analysis reported that the economy grew at an annual rate of 1.6%, as measured by real gross domestic product (GDP), which is the value of goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes. Despite a boost in third-quarter GDP from a short-term jump in exports, economic activity in the other three calendar quarters of 2016 stayed near or below the 2% growth mark.
However, momentum appeared to be building in the second half of the reporting period. The labor market continued to tighten, inflation ticked higher, and consumer confidence and spending were higher. As reported by the Bureau of Labor Statistics, the unemployment rate fell to 4.7% in February 2017 from 4.9% in February 2016 and job gains averaged around 200,000 per month for the past twelve months. Higher oil prices helped drive a steady increase in inflation over this reporting period. The twelve-month change in the Consumer Price Index (CPI) rose from the low of 0.8% in July 2016 to 2.7% over the twelve-month reporting period ended February 2017 on a seasonally adjusted basis, as reported by the U.S. Bureau of Labor Statistics. The core CPI (which excludes food and energy) increased 2.2% during the same period, slightly above the Federal Reserve’s (Fed) unofficial longer term inflation objective of 2.0% and the fifteenth consecutive month in the range of 2.1% to 2.3%. The housing market also continued to improve, with historically low mortgage rates and low inventory driving home prices higher. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 5.9% annual gain in January 2017 (most recent data available at the time this report was prepared) (effective July 26, 2016, the S&P/Case-Shiller U.S. National Home Price Index was renamed the S&P CoreLogic Case-Shiller U.S. National Home Price Index). The 10-City and 20-City Composites reported year-over-year increases of 4.8% and 5.7%, respectively.
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.
For financial reporting purposes, the ratings disclosed 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). This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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.
Refer to the Glossary of Terms Used in this Report for further definition of the terms used in this section.
NUVEEN 5
Portfolio Managers’ Comments (continued)
The U.S. economic outlook struck a more optimistic tone, prompting the Fed’s policy making committee to raise its main benchmark interest rate in December 2016 and again in March 2017 (after the close of this reporting period). These moves were widely expected by the markets and additional increases are anticipated in 2017 as the Fed seeks to gradually “normalize” interest rates.
The political environment was another major influence on the markets over the reporting period. In the U.S., the surprising election of Donald Trump boosted consumer, business and market sentiment, on hopes that Trump’s policy agenda of tax reform, infrastructure spending and reduced regulation would reignite the economy. While U.S. stocks rallied particularly strongly in the months following the election, the advance slowed as concerns about the new administration’s immigration policy and the Republican’s health care bill began to weigh on the markets. Prior to the U.S. presidential election, Britain’s vote to leave the European Union, known as Brexit, roiled the markets in late June and July. Although world stock markets largely recovered, sterling dropped to a 31-year low and remained volatile as the U.K. prepared for exit negotiations. Investors also worried whether the undercurrent of populism and nationalism supporting the Trump and Brexit victories could spread across Europe, where several countries have key elections in 2017.
The municipal bond market encountered elevated volatility over the twelve-month reporting period, driven by a sell-off and widening credit spreads following the surprise election results. Prior to the election, municipal bond mutual funds had been drawing steady inflows from September 2015 to October 2016, which kept demand outpacing supply and supported prices. However, beginning in mid-October, demand began to soften in anticipation of a Fed rate hike. Municipal bond prices continued to fall in November after Trump’s win triggered rising inflation and interest rate expectations as well as speculation on tax code changes, and in December due to tax-loss selling. A sharp rise in interest rates after the election fueled a reversal in municipal bond fund flow. Municipal bond funds experienced large outflows in the fourth quarter of 2016, especially in the high yield municipal segment, which drove mutual fund managers to sell positions to help meet investor redemptions. At the same time, new issuance spiked in October 2016, further contributing to excess supply and exacerbating falling prices and credit spread widening.
In the reporting period overall, municipal bond issuance nationwide totaled $442.7 billion, an 11.5% gain from the issuance for the twelve-month period ended February 29, 2016. Gross issuance remains robust as issuers continue to actively and aggressively refund their outstanding debt given the low interest rate environment. In these transactions the issuers are issuing new bonds and taking the bond proceeds and redeeming (calling) old bonds. These refunding transactions have ranged from 40%-60% of total issuance over the past few years. Thus, the net issuance (all bonds issued less bonds redeemed) is actually much lower than the gross issuance. In fact, the total municipal bonds outstanding has actually declined in each of the past four calendar years. So, the gross is surging, but the net is not and this was an overall positive technical factor on municipal bond investment performance in recent years. However, since the low in July 2016, interest rates have moved higher on expectations of additional Fed rate hikes, rising inflation and stronger economic growth. Issuers have begun to pull future refunding deals, as higher interest rates have eroded the potential cost savings of replacing older bonds.
Although the municipal bond market experienced widening credit spreads post-election, the trend was more attributable to technical conditions than a change in the fundamental backdrop. Despite the U.S. economy’s rather sluggish recovery, improving state and local balance sheets have contributed to generally good credit fundamentals. Higher tax revenue growth, better expense management and a more cautious approach to new debt issuance have led to credit upgrades and stable credit outlooks for many state and local issuers. While some pockets of weakness continued to grab headlines, including Illinois, New Jersey and Puerto Rico, their problems were largely contained, with minimal spillover into the broader municipal market.
What were the economic and market environments in Connecticut, Massachusetts, New Jersey and New York during the twelve-month reporting period ended February 28, 2017?
The Connecticut economy continues to lag the national recovery. Weakness in the financial services and government sectors are undermining growth. As of February 2017, Connecticut’s unemployment rate was 4.7%, keeping pace with the national rate of 4.7%. Connecticut has a high number of defense-related industries that make it more sensitive to both cuts and increases in federal defense spending. The loss of the headquarters of General Electric, which announced its relocation to Boston on January 14, 2016, is clearly not a positive sign for employment. On June 2, 2015, the Connecticut Legislature adopted the $40.3 billion 2016-2017 biennium budget. It is 6.1% larger than the adopted 2014-2015 biennium budget. It increased taxes on high income individuals from 6.7% to 6.99%. The state sales tax remained at 6.35%, but 0.5% was earmarked for cities and towns. Connecticut’s pensions remain among the worst funded in the nation which are likely to be a source of future financial strain at the state level. According to Moody’s, Connecticut’s per-capita debt burden was the highest in the nation at $6,155 in 2015, in contrast to the national median of $1,025. Connecticut enjoys the highest per-capita income of the 50 states, at 134% of the national average in 2015. Approximately $7.9 billion in Connecticut mu
6 NUVEEN
nicipal bonds were issued during the twelve months ending February 28, 2017, a gross issuance increase of 9.3% year-over-year increase. At reporting period end, Moody’s rated Connecticut “Aa3” with a negative outlook. Moody’s changed its outlook from stable to negative on March 8, 2016 citing the State’s weakening demographics and high fixed costs. S&P rates Connecticut “AA-” with a negative outlook. S&P changed its outlook from stable to negative on November 30, 2016 citing rising fixed costs. S&P downgraded its rating on Connecticut from AA to AA- on May 19, 2016 citing the state's high fixed costs and underperforming revenues.
Massachusetts continues to benefit from a highly diverse economy. Biotechnology, pharmaceuticals and software development are increasingly driving the Massachusetts economy, aided by the Commonwealth’s extensive education and health care sectors. Unemployment in the Commonwealth was 3.4% in February 2017, below the national average of 4.7% for the same period. According to the U.S. Department of Commerce, Bureau of Economic Analysis, Massachusetts’ per capita income is second highest among the 50 states. At $61,032 for calendar year 2015, it is 128% of the national average. The Commonwealth’s proposed $40.5 billion Fiscal Year 2018 budget represents a 3.6% increase over the adopted Fiscal Year 2017 budget. The proposed budget calls for no new taxes or fees, a $51.5 million deposit into the Commonwealth’s rainy day fund, and a reduction in one-time revenue solutions. According to Moody's, Massachusetts' debt burden is second highest in the nation (after Connecticut) on a per capita basis ($5,592 versus the median of $1,025) and third highest as a percentage of the state GDP (9.5% versus the median of 2.5%). As of February 2017, Moody’s rated Massachusetts Aa1 with a stable outlook, and S&P rated the commonwealth AA+ with a negative outlook. S&P changed its outlook from stable to negative on November 23, 2015 citing a reduction in the Commonwealth’s reserve levels. For the twelve months ended February 28, 2017, Massachusetts’ tax-exempt bond supply totaled $14.3 billion, a gross issuance increase of 42.7% increase over the prior twelve months.
New Jersey’s economy has been slow to recover, but in 2016 the state finally regained all of the jobs lost during the recession. While the public sector contracted slightly, the private sector added jobs across a number of industries including construction, health care, manufacturing and transportation. The state has several characteristics that position it to do quite well, such as its proximity to New York City’s extensive job market, a shoreline along the Atlantic coast that benefits a strong tourism industry and two large transportation hubs in the Port of New York and New Jersey and Newark airport. However, for years following the recession, the state’s recovery fell short of many of its peers. New Jersey had the slowest job growth rate in the Northeast until the middle of 2015. As of February 2017, the state’s unemployment rate registered 4.4%, down from 5.0% a year prior. Maintaining and upgrading infrastructure is key to economic growth. To address the dire need to finance infrastructure projects, the New Jersey legislature voted to raise the per-gallon tax on gas and diesel effective November 1, 2016. Prior to this, all revenues coming into the transportation trust fund were needed to cover debt service. While resources dedicated to transportation funding are set to increase, the state reduced its sales tax rate and will phase out the estate tax over two years, so general operating revenues are projected to decline. The sluggishness of the state’s recovery exacerbated fiscal pressures caused by growing pension, retirement health care and debt service payments. In the proposed Fiscal Year 2018 budget, expenditures on these three line items constitutes 24% of revenues. The $2.5 billion pension payment in the Fiscal Year 2018 budget proposed by Governor Christie funds only 50% of the actuarially recommended contribution. The state has been downgraded several times in recent years and now carries an A- rating with negative outlook by S&P, an A3 with stable outlook by Moody’s and an A with stable outlook by Fitch. For the twelve months ending February 28, 2017, the state issued $12.7 billion in tax-exempt debt, a gross issuance, year-over-year increase of 27.8%.
New York State’s $1.4 trillion economy represents 8.1% of U.S. gross domestic product and, according to the International Monetary Fund, would be the eleventh largest economy in the world on a stand-alone basis. As of February 2017, the state’s unemployment rate registered 4.4%, slightly below the national average of 4.7%. 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. On a significant positive note, New York State has collected approximately $8.7 billion in various settlements and assessments from the financial industry over the past two years. Proceeds from those settlements have been used to bolster reserves, foster economic development upstate and provide funds for the replacement of the Tappan Zee Bridge. The adopted $156 billion budget for Fiscal Year 2017 is 9% higher than the adopted Fiscal Year 2016 budget and contains no new taxes. The budget also includes a $1.5 billion increase in education spending. New York is both a high income state, with per-capita income at 121% of the U.S. average, the fourth-highest among the 50 states, and a heavily indebted state. According to Moody's, New York ranked fifth in the nation in debt-per-capita in 2015 (NY: $3,021; median: $1,025), sixth in debt-per-capita as a percentage of personal income (NY: 5.4%; median: 2.5%) and ninth in debt-to-gross state domestic product (NY: 4.3%; median: 2.2%). The state’s pensions have traditionally been well funded, though they did decline with the stock market financial crisis. As of February 2017, Moody’s rates New York “Aa1” with a stable outlook. Moody’s upgraded New York State from Aa2 to Aa1 on June 16, 2014 citing the State’s sustained improvements in fiscal governance. S&P rates the state
NUVEEN 7
Portfolio Managers’ Comments (continued)
“AA+” with a stable outlook. S&P upgraded New York State from AA to AA+ on July 23, 2014, citing the State’s improved budget framework. New York municipal bond supply totaled $43.7 billion for the twelve-month period ended February 28, 2017, a gross issuance increase of 3.1% from the same period a year earlier. This ranked New York third among state issuers behind California and Texas.
How did the Funds perform during the twelve-month reporting period ended February 28, 2017?
The tables in the Fund Performance, Expense Ratios and Effective Leverage Ratios section of this report provide total returns for the Funds for the one-year, five-year, ten-year and since-inception periods ended February 28, 2017. Each Fund’s Class A Share total returns at net asset value (NAV) are compared with the performance of its benchmark and corresponding Lipper classification average.
During the reporting period, all four Funds underperformed the S&P Municipal Bond Index. The Massachusetts Fund outpaced its Lipper classification average, while the New Jersey and New York Funds were in line with their respective Lipper classification averages. The Connecticut Fund underperformed its Lipper classification average.
What strategies were used to manage the Funds during the reporting period and 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 Connecticut Municipal Bond Fund
The Nuveen Connecticut Municipal Bond Index underperformed the S&P Municipal Bond Index for the twelve-month reporting period. One notable factor behind the Fund’s underperformance of this national index was our natural overweighting in Connecticut municipal bonds. In light of increasing concerns about the state’s credit quality, Connecticut debt tended to lag the market’s performance. To the extent we held these state-backed bonds, which make up a relatively high proportion of the state’s municipal bond marketplace, the Fund’s results were hampered.
Another challenge was our duration positioning, especially a relative overweighting in bonds with durations between eight- and twelve-years, which lagged more than any other segment of the marketplace for the reporting period.
Credit quality positioning had a negative impact on relative performance. Underweighting bonds rated AAA, the highest quality securities in the marketplace, added value in light of their relative underperformance. However, overweightings in AA rated and A rated issues had a detrimental performance impact. For the reporting period, lower quality bonds tended to outperform. We were underweighted in lower quality bonds due to the lack of opportunity to invest them in the prevalence of higher quality debt in the Connecticut municipal marketplace.
From a sector standpoint, an underweighting in tax-supported debt added value in light of the category’s underperformance. While the education sector underperformed the index as a whole, an overweight was beneficial as the positions were either at the shorter end or longer end of the duration bandwidths which outperformed the middle. An overweight in health care was positive, however, a vast majority of the overweighting was hospital bonds which underperformed. Similar to education, hospital investments seemed to be at the shorter or longer ends of the maturity range. In addition, the Fund was well positioned in utilities, with an emphasis on lower quality, shorter-call-date resource recovery bonds adding value. In contrast, we saw various bonds advance refunded this reporting period, which contributed to the Fund’s relative overweighting in this underperforming category.
In buying bonds during this reporting period, we continued to prioritize longer dated bonds with maturities ranging from 11 to 30 years and representing a mix of sectors, including health care, higher education, local general obligation and water system bonds. We also bought lower investment grade rated Guam Waterworks Authority bonds, reflecting our only purchase of the reporting period of bonds below A rated.
To finance these new purchases, we primarily used the proceeds of bond calls. We also periodically sold short-dated, advance refunded bonds, as well as bonds affiliated with Puerto Rico and the U.S. Virgin Islands.
8 NUVEEN
Another management theme during this reporting period was to periodically engage in bond swaps. In the second half of 2016, and especially in December 2016 when the municipal market was at a low point, we took advantage of weak conditions to exchange certain portfolio holdings with newer bonds offering similar risk characteristics but better yields. This strategy simultaneously allowed us to support the Fund’s dividend by adding to the Fund’s income-generation capabilities while also allowing us to realize a tax loss that we will be able to apply against any future gains.
Nuveen Massachusetts Municipal Bond Fund
The Nuveen Massachusetts Municipal Bond Fund modestly underperformed the S&P Municipal Bond Index for the twelve-month reporting period ended February 28, 2017.
Our duration positioning proved generally helpful, owing to the Fund’s overweightings in both shorter- and longer-duration bonds. This stance added value, as these duration segments outperformed. Tempering this result, however, was the fact that some of the individual bonds we held in the ten- to twelve-year duration range were weak performers, as a result of purchasing them between August and October 2016, a time of relatively low yields in the marketplace. Because of their original purchase dates, these bonds struggled to a greater extent when rates rose later in 2016.
Credit quality positioning had a mixed performance impact. Underweighting AAA rated bonds added value, as these highly rated issues tended to lag their lower quality counterparts. Simultaneously, however, our relative overweightings in bonds in the next highest credit tiers, AA and A rating, as well as more limited exposure to below investment grade rated issues detracted from results.
From a sector standpoint, our overweighting advance refunded issues hampered relative performance. These securities’ very short durations and high credit quality left them out of favor with investors for much of the reporting period. We also experienced some struggles with our health care bond investments, particularly those bonds purchased between August and October 2016. We were, however, well positioned in the education sector, where our emphasis of longer duration bonds added value.
We were active bond purchasers during the reporting period, investing new shareholder inflows and the proceeds of periodic bond redemptions and bond sales into bonds at both the shorter and longer end of the duration spectrum. This approach reflected the Fund’s dual mandate, which includes generating a sufficient level of income while managing interest rate risk. With our longer dated purchases, we could satisfy the income portion of this mandate, while newly added shorter bonds allowed us to keep the Fund’s duration in line with our target. Our longer dated purchases included health care, higher education, transportation and dedicated-tax bonds, among others, as well as Guam Waterworks Authority bonds. The short duration positions included various advance refunded issues. Also, in late September 2016, we purchased floating-rate bond instruments with extremely short maturities. Due to unusual market conditions, these securities were offering unusually high yields relative to their history and risk. Once this temporary situation began to resolve itself over subsequent weeks, we eliminated this allocation. Other notable sales during the reporting period included Puerto Rico tobacco debt as well as the Fund’s stake in uninsured U.S. Virgin Islands debt.
The market’s struggles in the second half of 2016 and especially in December 2016, provided an opportunity to engage in bond swaps. This entailed exchanging some of our existing holdings for similar bonds offering comparable risk characteristics but better yields. This strategy allowed us to add further support to the Fund’s dividend while simultaneously recording a loss that we can apply to future capital gains.
Nuveen New Jersey Municipal Bond Fund
For the twelve-month period ended February 28, 2017, the Nuveen New Jersey Municipal Bond Fund underperformed the S&P Municipal Bond Index.
The rise in interest rates in the second half of 2016, especially after the November elections, pushed down municipal bond valuations. Nevertheless, the Fund still generated a modestly positive return during the reporting period, given that the interest payments provided by our bond holdings were sufficient to compensate for the decline in their prices. Relative to the national municipal bond market during this reporting period, security selection was a negative factor. Many of the weakest performing bonds in the portfolio were securities we had purchased last summer at a time of low rates and higher bond prices. As rates subsequently rose, these securities were hurt to a greater extent.
NUVEEN 9
Portfolio Managers’ Comments (continued)
On the positive side, a number of bonds in the portfolio were advance refunded during roughly the first half of the reporting period, as issuers sought to take advantage of favorable interest rate conditions. This situation generated a one-time gain in the bonds’ prices, as their credit quality improved. (Pre-refunded bonds are typically backed by U.S. government securities in escrow.)
Credit quality positioning was somewhat additive, as the Fund remained overweighted in lower rated bonds, which generally outperformed their higher quality counterparts during the reporting period. In contrast, duration positioning was slightly negative, meaning our relatively higher exposure to bonds with more interest rate sensitivity was detrimental when rates rose.
The Fund modestly benefited from its sector positioning, primarily due to an overweighting in tobacco bonds, which as a group performed exceptionally well. In the transportation category, exposure to lower investment grade toll road and bridge authority bonds added value, while the Fund also benefited from its allocation to high quality housing issues.
During the reporting period, we maintained a relatively consistent portfolio, keeping duration slightly longer than the benchmark while remaining overweighted among lower rated issues. As the municipal bond market struggled in the second half of the reporting period, our approach was to tactically add credit exposure to the Fund. This entailed taking advantage of lower prices to purchase bonds we believed offered good value relative to their credit risk. New purchases included higher education, transportation and health care issues with lower investment grade credit ratings. We also periodically engaged in bond swaps, which involved exchanging existing portfolio holdings for newer bonds with similar structural characteristics but more attractive yields.
We continued to limit the Fund’s exposure to state-backed bonds in light of New Jersey’s stabilizing but continued fiscal challenges. We instead were favoring indirect ways to gain exposure to New Jersey credit, including investments in state university bonds, whose tuition payments offer a degree of financial security to supplement state tax collections, as well as student housing authority and student loan bonds, which are backed by mortgage and loan payments, respectively.
Throughout the reporting period, the Fund maintained limited exposure to U.S. territorial bonds, which are generally income-tax-exempt for residents of all 50 states. At the end of the reporting period, the Fund had a position in pre-refunded Puerto Rico bonds (which, because they are secured by escrowed U.S. government securities, lack credit risk), a small allocation to Guam-affiliated debt and no exposure to U.S. Virgin Islands debt.
Nuveen New York Municipal Bond Fund
The Nuveen New York Municipal Bond Fund modestly underperformed the S&P Municipal Bond Index for the twelve-month reporting period ended February 28, 2017.
Credit positioning was a positive contributor to the Fund’s relative performance, with the biggest impact coming from the single-B rating tier. In fact, all of this positive influence was the result of our exposure to tobacco securitization bonds, a particularly strong performing category during the reporting period.
Some of our New York tobacco bonds fared especially well after the securities were refunded for an attractive price, although all of the tobacco holdings in the portfolio outperformed during this reporting period. In contrast, the Fund saw relative underperformance from its airport and local general obligation bond investments.
During roughly the first half of the reporting period and especially in the summer months, we were investing the proceeds of new shareholder inflows and bond calls to purchase large, highly liquid holdings, including AAA rated and AA rated utility bonds and school district general obligation debt. We focused on these and similarly high quality issues as placeholders in the portfolio. In our view, these bonds had good potential to better maintain their value even amid market volatility and we believed they could be easily swapped for attractive lower rated, higher yielding bonds should a market correction open up new investment opportunities.
In the fourth quarter of 2016 and especially in the weeks after the November U.S. elections, as bond yields rose while their prices fell accordingly (bond yields and prices move in opposite directions), we took advantage of market conditions to exchange many of the high quality positions we had earlier acquired for newer offerings providing similar risk characteristics but better yields, thus supporting the Fund’s dividend. Another benefit of these bond swaps was that the transactions allowed us to generate a tax loss that we will be able to apply against future capital gains.
Also in the fourth quarter, amid widening credit spreads, we purchased various attractive lower investment grade and below investment grade bonds. Our new purchases during this time, which took place across multiple areas of the New York municipal bond market, included health care, redevelopment district, airport and tobacco bonds, as well as debt issued by the U.S. territory of Guam,
10 NUVEEN
whose credit characteristics we saw as considerably more solid than those of Puerto Rico and the U.S. Virgin Islands, neither of whose bonds we owned in the Fund during the reporting period. Many of the purchases added were favorable performers in the final months of the reporting period, as spreads narrowed again and the municipal market partially bounced back from its December lows. To finance our acquisitions this reporting period, we used the proceeds of bond calls as well as selling some of the liquid placeholder bonds we had earlier purchased.
An Update Involving Puerto Rico
As noted in the Funds’ previous shareholder reports, we continue to monitor situations in the broader municipal market for any impact on the Funds’ holdings and performance: the ongoing economic problems of Puerto Rico is one such case. Puerto Rico’s continued economic weakening, escalating debt service obligations, and long-standing inability to deliver a balanced budget led to multiple downgrades on its debt over the past two years. Puerto Rico has warned investors since 2014 that the island’s debt burden may be unsustainable and the Commonwealth has been exploring various strategies to deal with this burden, including Chapter 9 bankruptcy, which is currently not available by law. On June 30, 2016, President Obama signed the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) into law. The legislation creates a path for Puerto Rico to establish an independent oversight board responsible for managing the government’s financial operations and restructure debt. Implementation is expected to take time, as the law focuses on developing a comprehensive five-year fiscal plan.
In terms of Puerto Rico holdings, shareholders should note that the Nuveen Connecticut Municipal Bond Fund had 2.2%, Nuveen Massachusetts Municipal Bond Fund had 2.0%, Nuveen New Jersey Municipal Bond Fund had 1.5% and it should be noted that this remaining exposure is either pre-refunded or insured. The Nuveen New York Municipal Bond Fund had no exposure at the end of the reporting period. The Puerto Rico credits offered higher yields, added diversification and triple exemption (i.e., exemption from most federal, state and local taxes). Puerto Rico general obligation debt is currently rated Caa2/CC/CC (below investment grade) by Moody’s, S&P and Fitch, respectively, with negative outlooks.
A Note About Investment Valuations
The municipal securities held by the Funds are valued by the Funds’ pricing service using a range of market-based inputs and assumptions. A different municipal pricing service might incorporate different assumptions and inputs into its valuation methodology, potentially resulting in different values for the same securities. These differences could be significant, both as to such individual securities, and as to the value of a given Fund’s portfolio in its entirety. Thus, the current net asset value of a Fund’s shares may be impacted, higher or lower, if the Fund were to change pricing service, or if its pricing service were to materially change its valuation methodology. On October 4, 2016, the Funds’ current municipal bond pricing service was acquired by the parent company of another pricing service. The two services have not yet combined their valuation organizations and process, but they announced in March 2017, that they anticipate doing so sometime in the ensuing months. Such changes could have an impact on the net asset value of the Fund’s shares.
NUVEEN 11
Risk Considerations
and Dividend Information
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. The Funds’ use of inverse floaters creates effective leverage. Leverage involves the risk that the Funds could lose more than its original investment and also increases the Funds’ exposure to volatility and interest rate risk.
Dividend Information
Each Fund seeks to pay regular monthly dividends out of its net investment income at a rate that reflects its past and projected net income performance. To permit each 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 income actually earned by the Fund during the period. If a 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 a Fund has cumulatively paid in dividends more than it has earned, the excess will constitute a 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, 2017, the Funds had positive UNII balances for tax purposes and positive UNII balances for financial reporting purposes.
All monthly dividends paid by each Fund during the current reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions was sourced from or comprised of elements other than net investment income, including capital gains and/or a return of capital, shareholders would have received a notice to that effect. For financial reporting purposes, the composition and per share amounts of each Fund’s dividends for the reporting period are presented in this report's Statement of Changes in Net Assets and Financial Highlights, respectively. For income tax purposes, distribution information for each Fund as of its most recent tax year end is presented in Note 6 – Income Tax Information within the Notes to Financial Statements of this report.
12 NUVEEN
Fund Performance, Expense Ratios
and Effective Leverage Ratios
and Effective Leverage Ratios
The Fund Performance, Expense Ratios and Effective Leverage Ratios for each Fund are shown within this section of the report.
Returns quoted represent past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than their original cost. Current performance may be higher or lower than the performance shown. Total returns for a period of less than one year are not annualized. Returns at net asset value (NAV) would be lower if the sales charge were included. Returns assume reinvestment of dividends and capital gains. For performance, current to the most recent month-end visit Nuveen.com or call (800) 257-8787.
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 fee waivers and/or expense reimbursements by the investment adviser during the periods presented. If any such waivers and/or reimbursements had not been in place, returns would have been reduced. See Notes to Financial Statements, Note 7—Management Fees and Other Transactions with Affiliates for more information.
Returns reflect differences in sales charges and expenses, which are primarily differences in distribution and service fees, and assume reinvestment of dividends and capital gains.
Comparative index and Lipper return information is provided for Class A Shares at NAV only.
The expense ratios shown reflect total operating expenses (before fee waivers and/or expense reimbursements, if any) as shown in the 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 its investment capital. The effective leverage ratio shown for each Fund is the amount of investment exposure created either directly 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. The Funds have not borrowed on a longer-term basis for investment purposes, and do not have any plans to do so. A Fund, however, may from time to time borrow on a typically transient basis in connection with its day-to-day operations, primarily in connection with the need to pay cash out to redeeming shareholders or to settle portfolio trades. Such incidental borrowings, described generally in Notes to Financial Statements, Note 8—Borrowing Arrangements, are excluded from the calculation of a Fund’s effective leverage ratio.
NUVEEN 13
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen Connecticut Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense Ratios and Effective Leverage Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of February 28, 2017
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | (0.15)% | 2.60% | 3.74% |
| Class A Shares at maximum Offering Price | (4.38)% | 1.72% | 3.29% |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% |
| Lipper Other States Municipal Debt Funds Classification Average | 0.04% | 2.34% | 3.27% |
| Class C2 Shares | (0.71)% | 2.03% | 3.18% |
| Class I Shares | 0.07% | 2.80% | 3.95% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.93)% | 2.82% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | (0.45)% | 2.73% | 3.79% |
| Class A Shares at maximum Offering Price | (4.65)% | 1.85% | 3.35% |
| Class C2 Shares | (1.00)% | 2.17% | 3.23% |
| Class I Shares | (0.13)% | 2.95% | 4.01% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (1.22)% | 2.78% |
Since inception returns for Class C Shares are from 2/10/14. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million ($250,000 effective November 1, 2016) 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) of 1% if redeemed within eighteen months of purchase. Class C and Class 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% |
14 NUVEEN
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen Connecticut Municipal Bond Fund
Effective Leverage Ratio as of February 28, 2017
| Effective Leverage Ratio | 0.00% |
Growth of an Assumed $10,000 Investment as of February 28, 2017 – 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 redemptions of Fund shares.
NUVEEN 15
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen Massachusetts Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense Ratios and Effective Leverage Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of February 28, 2017
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | 0.56% | 3.15% | 3.99% |
| Class A Shares at maximum Offering Price | (3.67)% | 2.26% | 3.55% |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% |
| Lipper Massachusetts Municipal Debt Funds Classification Average | (0.07)% | 2.35% | 3.28% |
| Class C2 Shares | (0.03)% | 2.56% | 3.42% |
| Class I Shares | 0.73% | 3.36% | 4.20% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.27)% | 3.24% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | 0.14% | 3.27% | 4.05% |
| Class A Shares at maximum Offering Price | (4.06)% | 2.40% | 3.60% |
| Class C2 Shares | (0.35)% | 2.73% | 3.49% |
| Class I Shares | 0.32% | 3.48% | 4.26% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.69)% | 3.17% |
Since inception returns for Class C Shares are from 2/10/14. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million ($250,000 effective November 1, 2016) 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) of 1% if redeemed within eighteen months of purchase. Class C and Class 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% |
16 NUVEEN
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen Massachusetts Municipal Bond Fund
Effective Leverage Ratio as of February 28, 2017
| Effective Leverage Ratio | 0.50% |
Growth of an Assumed $10,000 Investment as of February 28, 2017 – 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 redemptions of Fund shares.
NUVEEN 17
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen New Jersey Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense Ratios and Effective Leverage Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of February 28, 2017
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | 0.46% | 3.45% | 4.32% |
| Class A Shares at maximum Offering Price | (3.79)% | 2.57% | 3.87% |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% |
| Lipper New Jersey Municipal Debt Funds Classification Average | 0.48% | 2.54% | 3.38% |
| Class C2 Shares | (0.09)% | 2.86% | 3.74% |
| Class I Shares | 0.58% | 3.63% | 4.51% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.35)% | 3.35% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | (0.07)% | 3.58% | 4.37% |
| Class A Shares at maximum Offering Price | (4.28)% | 2.70% | 3.92% |
| Class C2 Shares | (0.62)% | 3.00% | 3.80% |
| Class I Shares | 0.14% | 3.79% | 4.58% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.87)% | 3.32% |
Since inception returns for Class C Shares are from 2/10/14. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million ($250,000 effective November 1, 2016) 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) of 1% if redeemed within eighteen months of purchase. Class C and Class 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% | 1.60% | 1.36% | 0.61% |
18 NUVEEN
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen New Jersey Municipal Bond Fund
Effective Leverage Ratio as of February 28, 2017
| Effective Leverage Ratio | 0.55% |
Growth of an Assumed $10,000 Investment as of February 28, 2017 – 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 redemptions of Fund shares.
NUVEEN 19
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen New York Municipal Bond Fund
Refer to the first page of this Fund Performance, Expense Ratios and Effective Leverage Ratios section for further explanation of the information included within this section. Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Fund Performance
Average Annual Total Returns as of February 28, 2017
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | 0.56% | 3.09% | 4.09% |
| Class A Shares at maximum Offering Price | (3.67)% | 2.21% | 3.64% |
| S&P Municipal Bond Index | 0.76% | 3.25% | 4.22% |
| S&P Municipal Bond New York Index | 0.46% | 3.20% | 4.22% |
| Lipper New York Municipal Debt Funds Classification Average | 0.53% | 2.78% | 3.50% |
| Class C2 Shares | (0.07)% | 2.52% | 3.52% |
| Class I Shares | 0.68% | 3.28% | 4.30% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.34)% | 3.57% |
Average Annual Total Returns as of March 31, 2017 (Most Recent Calendar Quarter)
| Average Annual | |||
| 1-Year | 5-Year | 10-Year | |
| Class A Shares at NAV | 0.46% | 3.31% | 4.18% |
| Class A Shares at maximum Offering Price | (3.75)% | 2.42% | 3.74% |
| Class C2 Shares | (0.08)% | 2.75% | 3.61% |
| Class I Shares | 0.68% | 3.52% | 4.38% |
| Average Annual | ||
| 1-Year | Since Inception | |
| Class C Shares | (0.35)% | 3.63% |
Since inception returns for Class C Shares are from 2/10/14. Indexes and Lipper averages are not available for direct investment.
Class A Shares have a maximum 4.20% sales charge (Offering Price). Class A Share purchases of $1 million ($250,000 effective November 1, 2016) 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) of 1% if redeemed within eighteen months of purchase. Class C and Class 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 | 0.78% | 1.58% | 1.33% | 0.58% |
20 NUVEEN
Fund Performance, Expense Ratios and Effective Leverage Ratios (continued)
Nuveen New York Municipal Bond Fund
Effective Leverage Ratio as of February 28, 2017
| Effective Leverage Ratio | 1.74% |
Growth of an Assumed $10,000 Investment as of February 28, 2017 – 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 redemptions of Fund shares.
NUVEEN 21
Yields as of February 28, 2017
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. If the comparison were instead to investments that generate qualified dividend income, which is taxable at a rate lower than an individual’s ordinary graduated tax rate, the fund’s Taxable-Equivalent Yield would be lower.
Nuveen Connecticut Municipal Bond Fund
| Share Class | ||||
| Class A1 | Class C | Class C2 | Class I | |
| Dividend Yield | 3.01% | 2.35% | 2.57% | 3.36% |
| SEC 30-Day Yield | 2.06% | 1.36% | 1.61% | 2.35% |
| Taxable-Equivalent Yield (32.3)%2 | 3.04% | 2.01% | 2.38% | 3.47% |
Nuveen Massachusetts Municipal Bond Fund
| Share Class | ||||
| Class A1 | Class C | Class C2 | Class I | |
| Dividend Yield | 2.76% | 2.06% | 2.30% | 3.06% |
| SEC 30-Day Yield - Subsidized | 1.96% | 1.25% | 1.50% | 2.24% |
| SEC 30-Day Yield - Unsubsidized | 1.96% | 1.25% | 1.50% | 2.24% |
| Taxable-Equivalent Yield - Subsidized (31.7)%2 | 2.87% | 1.83% | 2.20% | 3.28% |
| Taxable-Equivalent Yield - Unsubsidized (31.7)%2 | 2.87% | 1.83% | 2.20% | 3.28% |
Nuveen New Jersey Municipal Bond Fund
| Share Class | ||||
| Class A1 | Class C | Class C2 | Class I | |
| Dividend Yield | 3.13% | 2.48% | 2.69% | 3.48% |
| SEC 30-Day Yield | 2.36% | 1.67% | 1.92% | 2.66% |
| Taxable-Equivalent Yield (32.6)%2 | 3.50% | 2.48% | 2.85% | 3.95% |
22 NUVEEN
Nuveen New York Municipal Bond Fund
| Share Class | ||||
| Class A1 | Class C | Class C2 | Class I | |
| Dividend Yield | 3.34% | 2.66% | 2.93% | 3.70% |
| SEC 30-Day Yield - Subsidized | 2.34% | 1.65% | 1.90% | 2.64% |
| SEC 30-Day Yield - Unsubsidized | 2.34% | 1.65% | 1.90% | 2.64% |
| Taxable-Equivalent Yield - Subsidized (32.8)%2 | 3.48% | 2.46% | 2.83% | 3.93% |
| Taxable-Equivalent Yield - Unsubsidized (32.8)%2 | 3.48% | 2.46% | 2.83% | 3.93% |
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 shown in the respective table above.
NUVEEN 23
Holding
Summaries as of February 28, 2017
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.
For financial reporting purposes, the ratings disclosed are the highest rating given by one of the following national rating agencies: Standard & Poor’s, Moody’s Investors Service, Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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.
Refer to the Glossary of Terms Used in this Report for definitions of terms used within this section.
Nuveen Connecticut Municipal Bond Fund
| Fund Allocation (% of net assets) | |
| Long-Term Municipal Bonds | 99.2% |
| Other Assets Less Liabilities | 0.8% |
| Net Assets | 100% |
| Portfolio Composition (% of total investments) | |
| Health Care | 22.0% |
| Tax Obligation/General | 17.1% |
| Education and Civic Organizations | 16.2% |
| Water and Sewer | 13.3% |
| Tax Obligation/Limited | 10.9% |
| U.S. Guaranteed | 10.5% |
| Utilities | 8.2% |
| Other | 1.8% |
| Total | 100% |
| Bond Credit Quality (% of total investment exposure) | |
| AAA/U.S. Guaranteed | 14.8% |
| AA | 52.8% |
| A | 29.5% |
| BBB | 0.4% |
| BB or Lower | 0.3% |
| N/R (not rated) | 2.2% |
| Total | 100% |
24 NUVEEN
Nuveen Massachusetts Municipal Bond Fund
| Fund Allocation (% of net assets) | |
| Long-Term Municipal Bonds | 96.5% |
| Other Assets Less Liabilities | 3.5% |
| Net Assets | 100% |
| Portfolio Composition (% of total investments) | |
| Education and Civic Organizations | 26.7% |
| Health Care | 19.2% |
| U.S. Guaranteed | 15.5% |
| Tax Obligation/Limited | 10.9% |
| Water and Sewer | 7.5% |
| Transportation | 7.2% |
| Tax Obligation/General | 7.0% |
| Other | 6.0% |
| Total | 100% |
| Bond Credit Quality (% of total investment exposure) | |
| AAA/U.S. Guaranteed | 20.4% |
| AA | 41.9% |
| A | 25.6% |
| BBB | 7.3% |
| BB or Lower | 1.7% |
| N/R (not rated) | 3.1% |
| Total | 100% |
NUVEEN 25
Holding Summaries as of February 28, 2017 (continued)
Nuveen New Jersey Municipal Bond Fund
| Fund Allocation (% of net assets) | |
| Long-Term Municipal Bonds | 98.7% |
| Other Assets Less Liabilities | 1.3% |
| Net Assets | 100% |
| Portfolio Composition (% of total investments) | |
| Tax Obligation/Limited | 19.4% |
| Education and Civic Organizations | 15.9% |
| Transportation | 15.2% |
| Health Care | 12.3% |
| Tax Obligation/General | 10.5% |
| U.S. Guaranteed | 9.1% |
| Housing/Multifamily | 5.2% |
| Other | 12.4% |
| Total | 100% |
| Bond Credit Quality (% of total investment exposure) | |
| AAA/U.S. Guaranteed | 11.5% |
| AA | 41.7% |
| A | 29.8% |
| BBB | 10.5% |
| BB or Lower | 5.4% |
| N/R (not rated) | 1.1% |
| Total | 100% |
26 NUVEEN
Nuveen New York Municipal Bond Fund
| Fund Allocation (% of net assets) | |
| Long-Term Municipal Bonds | 99.8% |
| Other Assets Less Liabilities | 1.2% |
| Net Assets Plus Floating Rate Obligations | 101.0% |
| Floating Rate Obligations | (1.0)% |
| Net Assets | 100% |
| Portfolio Composition (% of total investments) | |
| Tax Obligation/Limited | 23.0% |
| Transportation | 20.3% |
| Education and Civic Organizations | 15.9% |
| U.S. Guaranteed | 10.0% |
| Utilities | 8.4% |
| Consumer Staples | 5.1% |
| Other | 17.3% |
| Total | 100% |
| Bond Credit Quality (% of total investment exposure) | |
| AAA/U.S. Guaranteed | 25.6% |
| AA | 35.1% |
| A | 16.6% |
| BBB | 8.5% |
| BB or Lower | 8.5% |
| N/R (not rated) | 5.7% |
| Total | 100% |
NUVEEN 27
Expense
Examples
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.
The Examples below are based on an investment of $1,000 invested at the beginning of the period and held through the period ended February 28, 2017.
The beginning of the period is September 1, 2016.
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 each 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 following 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
| Share Class | ||||
| Class A | Class C | Class C2 | Class I | |
| Actual Performance | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $ 967.30 | $ 963.40 | $ 964.50 | $ 967.60 |
| Expenses Incurred During the Period | $ 3.85 | $ 7.74 | $ 6.53 | $ 2.88 |
| Hypothetical Performance (5% annualized return before expenses) | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $1,020.88 | $1,016.91 | $1,018.15 | $1,021.87 |
| Expenses Incurred During the Period | $ 3.96 | $ 7.95 | $ 6.71 | $ 2.96 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.79%, 1.59%, 1.34% and 0.59% for Classes A, C, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
28 NUVEEN
Nuveen Massachusetts Municipal Bond Fund
| Share Class | ||||
| Class A | Class C | Class C2 | Class I | |
| Actual Performance | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $ 971.20 | $ 966.90 | $ 968.10 | $ 972.10 |
| Expenses Incurred During the Period | $ 3.91 | $ 7.80 | $ 6.59 | $ 2.93 |
| Hypothetical Performance (5% annualized return before expenses) | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $1,020.83 | $1,016.86 | $1,018.10 | $1,021.82 |
| Expenses Incurred During the Period | $ 4.01 | $ 8.00 | $ 6.76 | $ 3.01 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.80%, 1.60%, 1.35% and 0.60% for Classes A, C, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Nuveen New Jersey Municipal Bond Fund
| Share Class | ||||
| Class A | Class C | Class C2 | Class I | |
| Actual Performance | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $ 959.00 | $ 955.60 | $ 956.10 | $ 959.30 |
| Expenses Incurred During the Period | $ 3.89 | $ 7.76 | $ 6.55 | $ 2.91 |
| Hypothetical Performance (5% annualized return before expenses) | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $1,020.83 | $1,016.86 | $1,018.10 | $1,021.82 |
| Expenses Incurred During the Period | $ 4.01 | $ 8.00 | $ 6.76 | $ 3.01 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.80%, 1.60%, 1.35% and 0.60% for Classes A, C, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Nuveen New York Municipal Bond Fund
| Share Class | ||||
| Class A | Class C | Class C2 | Class I | |
| Actual Performance | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $ 965.80 | $ 961.80 | $ 963.10 | $ 966.90 |
| Expenses Incurred During the Period | $ 3.75 | $ 7.64 | $ 6.42 | $ 2.78 |
| Hypothetical Performance (5% annualized return before expenses) | ||||
| Beginning Account Value | $1,000.00 | $1,000.00 | $1,000.00 | $1,000.00 |
| Ending Account Value | $1,020.98 | $1,017.01 | $1,018.25 | $1,021.97 |
| Expenses Incurred During the Period | $ 3.86 | $ 7.85 | $ 6.61 | $ 2.86 |
For each class of the Fund, expenses are equal to the Fund’s annualized net expense ratio of 0.77%, 1.57%, 1.32% and 0.57% for Classes A, C, C2 and I, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
NUVEEN 29
Report of
Independent Registered Public Accounting Firm
Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Nuveen Multistate Trust II:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Connecticut Municipal Bond Fund, Nuveen Massachusetts Municipal Bond Fund, Nuveen New Jersey Municipal Bond Fund, and Nuveen New York Municipal Bond Fund (four of the funds comprising Nuveen Multistate Trust II) (the “Funds”) as of February 28, 2017, and the related statements of operations, the statements of changes in net assets, and the financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes in net assets and the financial highlights for the periods presented through February 29, 2016 were audited by other auditors whose report dated April 27, 2016 expressed an unqualified opinion on those statements and those financial highlights.
We conducted our audits 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 and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of February 28, 2017, by correspondence with the custodian and brokers or other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of February 28, 2017, the results of their operations, the changes in their net assets, and the financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.
/s/ KPMG LLP
Chicago, Illinois
April 26, 2017
30 NUVEEN
Nuveen Connecticut Municipal Bond Fund
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| LONG-TERM INVESTMENTS–99.2% | ||||||
| MUNICIPAL BONDS–99.2% | ||||||
| Education and Civic Organizations–16.1% | ||||||
| $ 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 | B | $209,171 | ||
| 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+ | 1,114,720 | ||
| 500 | 5.000%, 7/01/32 | 7/22 at 100.00 | A+ | 555,255 | ||
| 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 | AA | 973,181 | ||
| 400 | 5.000%, 7/01/32 – RAAI Insured | 7/17 at 100.00 | AA | 404,936 | ||
| 2,425 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut College, Refunding Series 2016L-1, 4.000%, 7/01/46 | 7/26 at 100.00 | A2 | 2,400,071 | ||
| 1,185 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut College, Series 2011H, 5.000%, 7/01/41 | 7/21 at 100.00 | A2 | 1,308,975 | ||
| 2,425 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Connecticut State University System, Series 2016P-1, 5.000%, 11/01/28 | 11/26 at 100.00 | AA- | 2,851,800 | ||
| Connecticut Health and Educational Facilities Authority, Revenue Bonds, Fairfield University, Series 2010-O: | ||||||
| 3,205 | 5.000%, 7/01/35 | 7/20 at 100.00 | A- | 3,499,027 | ||
| 1,000 | 5.000%, 7/01/40 | 7/20 at 100.00 | A- | 1,091,740 | ||
| 2,500 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Fairfield University, Series 2016Q-1, 5.000%, 7/01/46 | 7/26 at 100.00 | A- | 2,756,675 | ||
| 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 | 1,082,004 | ||
| 5,095 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac University, Refunding Series 2015L, 5.000%, 7/01/45 | 7/25 at 100.00 | A- | 5,597,112 | ||
| 90 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac University, Series 2007K-2, 5.000%, 7/01/31 – NPFG Insured | 7/18 at 100.00 | AA- | 93,952 | ||
| Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac University, Series 2016M: | ||||||
| 240 | 5.000%, 7/01/34 | 7/26 at 100.00 | A- | 267,857 | ||
| 1,500 | 5.000%, 7/01/36 | 7/26 at 100.00 | A- | 1,665,270 | ||
| 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 | A | 1,093,430 | ||
| 2,500 | 5.625%, 7/01/41 | 7/21 at 100.00 | A | 2,731,100 |
NUVEEN 31
Nuveen Connecticut Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| 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 | $1,394,355 | ||
| 1,750 | 5.000%, 7/01/27 – AGM Insured | 7/22 at 100.00 | AA | 1,936,532 | ||
| 1,400 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity College, Refunding Series 2010M, 4.250%, 7/01/28 | 7/20 at 100.00 | A+ | 1,456,112 | ||
| 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 | AA- | 2,029,738 | ||
| 950 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Westminster School, Series 2014H, 3.250%, 7/01/32 | 7/24 at 100.00 | A | 942,029 | ||
| 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 | 3,041,160 | ||
| 1,100 | Connecticut Higher Education Supplemental Loan Authority, Revenue Bonds, CHELSA Loan Program, Series 2010A, 4.000%, 11/15/30 | 11/20 at 100.00 | Aa3 | 1,118,282 | ||
| 630 | University of Connecticut, Student Fee Revenue Bonds, Refunding Series 2010A, 5.000%, 11/15/27 | 11/19 at 100.00 | Aa2 | 688,193 | ||
| 39,380 | Total Education and Civic Organizations | 42,302,677 | ||||
| Health Care–21.9% | ||||||
| 4,600 | Connecticut Health and Educational Facilities Authority Revenue Bonds, Hartford HealthCare, Series 2015F, 5.000%, 7/01/45 | 7/25 at 100.00 | A | 5,042,934 | ||
| 2,920 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Ascension Health Series 2010A, 5.000%, 11/15/40 | 11/19 at 100.00 | AA+ | 3,118,210 | ||
| Connecticut Health and Educational Facilities Authority, Revenue Bonds, Bristol Hospital, Series 2002B: | ||||||
| 560 | 5.500%, 7/01/21 – RAAI Insured | 5/17 at 100.00 | AA | 562,330 | ||
| 4,025 | 5.500%, 7/01/32 – RAAI Insured | 5/17 at 100.00 | AA | 4,031,963 | ||
| 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 | 7,424,539 | ||
| 500 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hartford HealthCare, Series 2014E, 5.000%, 7/01/42 | No Opt. Call | A | 545,795 | ||
| Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital For Special Care, Series 2007C: | ||||||
| 305 | 5.250%, 7/01/22 – AGC Insured | 7/17 at 100.00 | AA | 309,505 | ||
| 640 | 5.250%, 7/01/32 – AGC Insured | 7/17 at 100.00 | AA | 646,445 | ||
| 1,555 | 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- | 1,660,398 | ||
| Connecticut Health and Educational Facilities Authority, Revenue Bonds, Middlesex Hospital, Series 2011N: | ||||||
| 495 | 5.000%, 7/01/25 | 7/21 at 100.00 | A3 | 542,188 | ||
| 500 | 5.000%, 7/01/27 | 7/21 at 100.00 | A3 | 544,130 | ||
| 1,745 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Middlesex Hospital, Series 2015O, 5.000%, 7/01/36 | 7/25 at 100.00 | A3 | 1,885,629 | ||
| 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 | 4,320,093 | ||
| 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 | 4,239,800 |
32 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| $ 3,765 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Stamford Hospital, Series 2016K, 4.000%, 7/01/46 | 7/26 at 100.00 | A | $3,770,685 | ||
| Connecticut Health and Educational Facilities Authority, Revenue Bonds, Trinity Health Credit Group, Series 2016CT: | ||||||
| 2,350 | 5.000%, 12/01/41 | 6/26 at 100.00 | AA- | 2,593,319 | ||
| 1,195 | 5.000%, 12/01/45 | 6/26 at 100.00 | AA- | 1,314,799 | ||
| 4,160 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Western Connecticut Health, Series 2011M, 5.375%, 7/01/41 | 7/21 at 100.00 | A | 4,511,561 | ||
| 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 | 2,171,400 | ||
| Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale-New Haven Health Issue, Series 2014E: | ||||||
| 2,400 | 5.000%, 7/01/32 | 7/24 at 100.00 | AA- | 2,722,560 | ||
| 2,520 | 5.000%, 7/01/33 | 7/24 at 100.00 | AA- | 2,846,264 | ||
| 830 | 5.000%, 7/01/34 | 7/24 at 100.00 | AA- | 933,385 | ||
| 1,670 | Orange County Health Facilities Authority, Florida, Hospital Revenue Bonds, Orlando Health, Inc., Series 2009, 5.125%, 10/01/26 | 10/19 at 100.00 | A | 1,815,724 | ||
| 53,730 | Total Health Care | 57,553,656 | ||||
| Long-Term Care–1.8% | ||||||
| 1,100 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Duncaster, Inc., Series 2014A, 5.000%, 8/01/44 | 8/24 at 100.00 | BBB- | 1,122,517 | ||
| 570 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Healthcare Facility Expansion Church Home of Hartford Inc. Project, Series 2016A, 5.000%, 9/01/46 | 9/26 at 100.00 | BB | 542,828 | ||
| 2,755 | Connecticut Housing Finance Authority, State Supported Special Obligation Bonds, Refunding Series 2010-16, 5.000%, 6/15/30 | 6/20 at 100.00 | AA- | 3,016,202 | ||
| 4,425 | Total Long-Term Care | 4,681,547 | ||||
| Tax Obligation/General–17.0% | ||||||
| Bridgeport, Connecticut, General Obligation Bonds, Series 2014A: | ||||||
| 600 | 5.000%, 7/01/32 – AGM Insured | 7/24 at 100.00 | AA | 666,408 | ||
| 1,000 | 5.000%, 7/01/33 – AGM Insured | 7/24 at 100.00 | AA | 1,105,870 | ||
| 1,065 | 5.000%, 7/01/34 – AGM Insured | 7/24 at 100.00 | AA | 1,172,661 | ||
| 2,000 | Bridgeport, Connecticut, General Obligation Bonds, Series 2016D, 5.000%, 8/15/41 – AGM Insured | 8/26 at 100.00 | AA | 2,200,940 | ||
| 2,000 | Connecticut State, General Obligation Bonds, Refunding Series 2012E, 5.000%, 9/15/32 | 9/22 at 100.00 | AA- | 2,234,400 | ||
| 2,260 | Connecticut State, General Obligation Bonds, Refunding Series 2016B, 5.000%, 5/15/27 | 5/26 at 100.00 | AA- | 2,626,933 | ||
| Connecticut State, General Obligation Bonds, Series 2008C: | ||||||
| 1,000 | 5.000%, 11/01/26 | 11/18 at 100.00 | AA- | 1,064,190 | ||
| 1,015 | 5.000%, 11/01/27 | 11/18 at 100.00 | AA- | 1,079,970 | ||
| 1,015 | 5.000%, 11/01/28 | 11/18 at 100.00 | AA- | 1,079,798 | ||
| 1,000 | Connecticut State, General Obligation Bonds, Series 2011D, 5.000%, 11/01/31 | 11/21 at 100.00 | AA- | 1,118,280 | ||
| 2,400 | Connecticut State, General Obligation Bonds, Series 2014A, 5.000%, 3/01/31 | 3/24 at 100.00 | AA- | 2,680,464 | ||
| 3,000 | Connecticut State, General Obligation Bonds, Series 2014F, 5.000%, 11/15/34 | 11/24 at 100.00 | AA- | 3,336,060 | ||
| 2,370 | Connecticut State, General Obligation Bonds, Series 2015F, 5.000%, 11/15/34 | 11/25 at 100.00 | AA- | 2,644,327 |
NUVEEN 33
Nuveen Connecticut Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/General (continued) | ||||||
| $ 100 | Greenwich, Connecticut, General Obligation Bonds, Refunding Series 2016, 4.000%, 7/15/33 | 7/24 at 100.00 | Aaa | $106,710 | ||
| 500 | Hamden, Connecticut, General Obligation Bonds, Series 2016, 5.000%, 8/15/33 – BAM Insured | 8/24 at 100.00 | AA | 552,340 | ||
| 1,000 | New Haven, Connecticut, General Obligation Bonds, Refunding Series 2016A, 5.000%, 8/15/36 – AGM Insured | 8/26 at 100.00 | AA | 1,101,310 | ||
| New Haven, Connecticut, General Obligation Bonds, Series 2014A: | ||||||
| 810 | 5.000%, 8/01/30 – AGM Insured | 8/24 at 100.00 | AA | 906,131 | ||
| 700 | 5.000%, 8/01/31 – AGM Insured | 8/24 at 100.00 | AA | 780,220 | ||
| 850 | 5.000%, 8/01/32 – AGM Insured | 8/24 at 100.00 | AA | 943,857 | ||
| 850 | 5.000%, 8/01/34 – AGM Insured | 8/24 at 100.00 | AA | 936,215 | ||
| New Haven, Connecticut, General Obligation Bonds, Series 2015: | ||||||
| 795 | 5.000%, 9/01/32 – AGM Insured | 9/25 at 100.00 | AA | 880,860 | ||
| 1,620 | 5.000%, 9/01/33 – AGM Insured | 9/25 at 100.00 | AA | 1,788,691 | ||
| 500 | 5.000%, 9/01/35 – AGM Insured | 9/25 at 100.00 | AA | 547,840 | ||
| 485 | North Haven, Connecticut, General Obligation Bonds, Series 2006, 5.000%, 7/15/24 | No Opt. Call | Aa1 | 577,291 | ||
| 600 | Stratford, Connecticut, General Obligation Bonds, Series 2014, 5.000%, 12/15/34 | 12/22 at 100.00 | AA | 666,768 | ||
| Waterbury, Connecticut, General Obligation Bonds, Lot A Series 2015: | ||||||
| 555 | 5.000%, 8/01/30 – BAM Insured | 8/25 at 100.00 | AA | 630,813 | ||
| 485 | 5.000%, 8/01/31 – BAM Insured | 8/25 at 100.00 | AA | 549,010 | ||
| 765 | 5.000%, 8/01/32 – BAM Insured | 8/25 at 100.00 | AA | 861,153 | ||
| 555 | 5.000%, 8/01/33 – BAM Insured | 8/25 at 100.00 | AA | 622,155 | ||
| 555 | 5.000%, 8/01/34 – BAM Insured | 8/25 at 100.00 | AA | 618,703 | ||
| 3,000 | Waterbury, Connecticut, General Obligation Bonds, Series 2012A, 5.000%, 8/01/30 | 8/22 at 100.00 | AA- | 3,353,730 | ||
| 2,000 | West Haven, Connecticut, General Obligation Bonds, Series 2012, 5.000%, 8/01/24 – AGM Insured | 8/22 at 100.00 | AA | 2,237,700 | ||
| 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 | 1,480,883 | ||
| 1,415 | 7.000%, 12/01/25 – AGM Insured | 12/20 at 100.00 | AA | 1,637,070 | ||
| 40,145 | Total Tax Obligation/General | 44,789,751 | ||||
| Tax Obligation/Limited–10.8% | ||||||
| 2,500 | Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes Series 2013A, 5.000%, 10/01/33 | 10/23 at 100.00 | AA | 2,841,775 | ||
| 1,390 | Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes Series 2015A, 5.000%, 8/01/33 | 8/25 at 100.00 | AA | 1,558,190 | ||
| Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes Series 2016A: | ||||||
| 925 | 5.000%, 9/01/33 | 9/26 at 100.00 | AA | 1,049,209 | ||
| 5,075 | 5.000%, 9/01/34 | 9/26 at 100.00 | AA | 5,721,200 | ||
| Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purposes, Series 2014A: | ||||||
| 1,165 | 5.000%, 9/01/33 | 9/24 at 100.00 | AA | 1,327,319 | ||
| 1,625 | 5.000%, 9/01/34 | 9/24 at 100.00 | AA | 1,844,375 |
34 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| Government of Guam, Business Privilege Tax Bonds, Series 2011A: | ||||||
| $ 2,400 | 5.250%, 1/01/36 | 1/22 at 100.00 | A | $2,504,952 | ||
| 600 | 5.125%, 1/01/42 | 1/22 at 100.00 | A | 620,730 | ||
| University of Connecticut, General Obligation Bonds, Series 2009A: | ||||||
| 1,000 | 5.000%, 2/15/27 | 2/19 at 100.00 | AA- | 1,069,340 | ||
| 1,000 | 5.000%, 2/15/28 | 2/19 at 100.00 | AA- | 1,069,340 | ||
| 2,500 | University of Connecticut, General Obligation Bonds, Series 2013A, 5.000%, 8/15/32 | 8/23 at 100.00 | AA- | 2,846,875 | ||
| 740 | University of Connecticut, General Obligation Bonds, Series 2014A, 5.000%, 2/15/31 | 2/24 at 100.00 | AA- | 831,390 | ||
| 1,590 | University of Connecticut, General Obligation Bonds, Series 2015A, 5.000%, 2/15/34 | No Opt. Call | AA- | 1,769,686 | ||
| 3,000 | University of Connecticut, General Obligation Bonds, Series 2017A, 5.000%, 1/15/36 | 1/27 at 100.00 | AA- | 3,354,420 | ||
| 25,510 | Total Tax Obligation/Limited | 28,408,801 | ||||
| U.S. Guaranteed–10.4% (4) | ||||||
| 1,135 | Connecticut Health and Educational Facilities Authority, Child Care Facilities Program Revenue Bonds, Series 2008G, 6.000%, 7/01/28 (Pre-refunded 7/01/18) – AGC Insured | 7/18 at 100.00 | AA (4) | 1,213,428 | ||
| Connecticut Health and Educational Facilities Authority, Revenue Bonds, Hospital For Special Care, Series 2007C: | ||||||
| 195 | 5.250%, 7/01/22 (Pre-refunded 7/01/17) – AGC Insured | 7/17 at 100.00 | AA (4) | 198,062 | ||
| 415 | 5.250%, 7/01/32 (Pre-refunded 7/01/17) – AGC Insured | 7/17 at 100.00 | AA (4) | 421,515 | ||
| 375 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Lutheran General Healthcare System - Parkside Lodges Projects, Series 1989, 7.375%, 7/01/19 (ETM) | 5/17 at 100.00 | Aaa | 405,769 | ||
| 2,500 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Quinnipiac University, Series 2007K-2, 5.000%, 7/01/31 (Pre-refunded 7/01/18) – NPFG Insured | 7/18 at 100.00 | AA- (4) | 2,639,125 | ||
| 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) | 400,905 | ||
| 965 | 5.000%, 7/01/37 (Pre-refunded 7/01/17) – AMBAC Insured | 7/17 at 100.00 | N/R (4) | 979,427 | ||
| 3,500 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Wesleyan University, Series 2010G, 5.000%, 7/01/39 (Pre-refunded 7/01/20) | 7/20 at 100.00 | AA (4) | 3,931,865 | ||
| 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) | 2,111,580 | ||
| 60 | 5.125%, 7/01/35 (Pre-refunded 7/01/18) – AGM Insured | 7/18 at 100.00 | AA (4) | 63,447 | ||
| 1,305 | Connecticut Health and Educational Facilities Authority, Revenue Bonds, Yale-New Haven Hospital, Series 2010M, 5.500%, 7/01/40 (Pre-refunded 7/01/20) | 7/20 at 100.00 | Aa3 (4) | 1,487,322 | ||
| 5,000 | Connecticut State, Special Tax Obligation Bonds, Transportation Infrastructure Purpose Series 2008A, 5.000%, 11/01/28 (Pre-refunded 11/01/18) | 11/18 at 100.00 | AA (4) | 5,341,400 | ||
| 2,200 | Guam Government, Limited Obligation Section 30 Revenue Bonds, Series 2009A, 5.750%, 12/01/34 (Pre-refunded 12/01/19) | 12/19 at 100.00 | BBB+ (4) | 2,469,984 | ||
| 1,395 | Puerto Rico, Highway Revenue Bonds, Highway and Transportation Authority, Series 2003AA, 5.500%, 7/01/19 – NPFG Insured (ETM) | No Opt. Call | A3 (4) | 1,538,880 | ||
| 1,720 | Stamford, Connecticut, Special Obligation Revenue Bonds, Mill River Corridor Project, Series 2011aA, 7.000%, 4/01/41 (Pre-refunded 4/01/21) | 4/21 at 100.00 | N/R (4) | 2,093,292 |
NUVEEN 35
Nuveen Connecticut Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (4) (continued) | ||||||
| $ 1,725 | Williamson & Johnson Counties Community Unit School District 2, Marion, Illinois, General Obligation Bonds, Series 2011, 7.000%, 12/01/27 (Pre-refunded 12/01/20) – AGM Insured | 12/20 at 100.00 | AA (4) | $ 2,085,387 | ||
| 24,885 | Total U.S. Guaranteed | 27,381,388 | ||||
| Utilities–8.1% | ||||||
| 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 | 5,665,388 | ||
| 415 | Connecticut Municipal Electric Energy Cooperative, Power Supply System Revenue Bonds, Series 2013A, 5.000%, 1/01/38 | 1/23 at 100.00 | Aa3 | 456,820 | ||
| Connecticut Municipal Electric Energy Cooperative, Transmission Services Revenue Bonds, Series 2012A: | ||||||
| 955 | 5.000%, 1/01/24 | 1/22 at 100.00 | Aa3 | 1,083,257 | ||
| 880 | 5.000%, 1/01/25 | 1/22 at 100.00 | Aa3 | 991,258 | ||
| 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 | 3,497,207 | ||
| 4,360 | Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds, Wheelabrator Lisbon Project, Series 1993A, 5.500%, 1/01/20 (Alternative Minimum Tax) | 7/17 at 100.00 | A- | 4,380,230 | ||
| 1,000 | Guam Power Authority, Revenue Bonds, Series 2014A, 5.000%, 10/01/39 | 10/24 at 100.00 | AA | 1,102,020 | ||
| 4,000 | Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series 2002, 5.000%, 7/01/20 – NPFG Insured | No Opt. Call | AA- | 4,175,920 | ||
| 20,405 | Total Utilities | 21,352,100 | ||||
| Water and Sewer–13.1% | ||||||
| 5,000 | Connecticut, State Revolving Fund General Revenue Bonds, Series 2013A, 5.000%, 3/01/25 | 3/23 at 100.00 | AAA | 5,828,900 | ||
| Greater New Haven Water Pollution Control Authority, Connecticut, Regional Wastewater System Revenue Bonds, Refunding Series 2014B: | ||||||
| 500 | 5.000%, 8/15/30 | 8/24 at 100.00 | AA | 574,625 | ||
| 1,000 | 5.000%, 8/15/32 | 8/24 at 100.00 | AA | 1,134,280 | ||
| 60 | Greater New Haven Water Pollution Control Authority, Connecticut, Regional Wastewater System Revenue Bonds, Series 2005A, 5.000%, 8/15/35 – NPFG Insured | 11/17 at 100.00 | AA | 60,193 | ||
| 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- | 2,491,611 | ||
| 1,040 | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2016, 5.000%, 1/01/46 | 7/26 at 100.00 | A- | 1,097,107 | ||
| 6,085 | Hartford County Metropolitan District, Connecticut, Clean Water Project Revenue Bonds, Refunding Green Bond Series 2014A, 5.000%, 11/01/42 | 11/24 at 100.00 | AA | 6,802,908 | ||
| 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 | 2,783,100 | ||
| 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+ | 1,130,110 | ||
| South Central Connecticut Regional Water Authority Water System Revenue Bonds, Thirtieth Series 2014A: | ||||||
| 1,010 | 5.000%, 8/01/39 | 8/24 at 100.00 | AA- | 1,124,342 | ||
| 1,055 | 5.000%, 8/01/44 | 8/24 at 100.00 | AA- | 1,171,493 |
36 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Water and Sewer (continued) | ||||||
| $ 1,245 | South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Refunding Thirty-Second Series 2016B, 4.000%, 8/01/36 | 8/26 at 100.00 | AA- | $1,282,462 | ||
| 5,130 | South Central Connecticut Regional Water Authority, Water System Revenue Bonds, Twentieth-Sixth Series, 2011, 5.000%, 8/01/41 | 8/21 at 100.00 | AA- | 5,729,543 | ||
| 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 | AA- | 565,570 | ||
| 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 | AAA | 2,284,140 | ||
| 500 | Stamford, Connecticut, Water Pollution Control System and Facility Revenue Bonds, Series 2013A, 5.250%, 8/15/43 | 8/23 at 100.00 | AA+ | 570,380 | ||
| 30,975 | Total Water and Sewer | 34,630,764 | ||||
| $ 239,455 | Total Long-Term Investments (cost $251,923,872) | 261,100,684 |
| Other Assets Less Liabilities–0.8% | 2,055,986 | |||||
| Net Assets–100% | $263,156,670 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm. | |
| (3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm. | |
| (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 37
Nuveen Massachusetts Municipal Bond Fund
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| LONG-TERM INVESTMENTS–96.5% | ||||||
| MUNICIPAL BONDS–96.5% | ||||||
| Education and Civic Organizations–25.8% | ||||||
| $ 1,270 | Massachusetts Development Finance Agency, Revenue Bonds, Bentley University, Series 2010, 5.000%, 7/01/28 | 7/20 at 100.00 | A3 | $1,379,436 | ||
| 2,760 | Massachusetts Development Finance Agency, Revenue Bonds, Berklee College of Music, Series 2016, 5.000%, 10/01/39 | No Opt. Call | A | 3,123,602 | ||
| 1,500 | Massachusetts Development Finance Agency, Revenue Bonds, Boston College, Series 2010R-1, 5.000%, 7/01/40 | 7/20 at 100.00 | AA- | 1,644,735 | ||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Boston College, Series 2013S, 5.000%, 7/01/32 | 7/23 at 100.00 | AA- | 3,431,550 | ||
| 1,020 | Massachusetts Development Finance Agency, Revenue Bonds, Boston College, Series 2017T, 5.000%, 7/01/42 | 7/27 at 100.00 | AA- | 1,167,951 | ||
| 5,000 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2013X, 5.000%, 10/01/48 | 10/23 at 100.00 | A+ | 5,556,200 | ||
| 2,230 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2016BB-1, 5.000%, 10/01/46 | 10/26 at 100.00 | A+ | 2,512,095 | ||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Brandeis University, Series 2008N, 5.000%, 10/01/39 | 10/18 at 100.00 | A1 | 3,159,390 | ||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Emerson College, Series 2010A, 5.000%, 1/01/40 | 1/20 at 100.00 | BBB+ | 1,041,570 | ||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Emerson College, Series 2015, 5.000%, 1/01/35 | 1/25 at 100.00 | BBB+ | 3,175,230 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, Emerson College, Series 2016A: | ||||||
| 1,510 | 5.250%, 1/01/42 | 1/27 at 100.00 | BBB+ | 1,667,402 | ||
| 1,500 | 5.000%, 1/01/47 | 1/27 at 100.00 | BBB+ | 1,614,645 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, Lesley University, Series 2016: | ||||||
| 2,055 | 5.000%, 7/01/36 | 7/26 at 100.00 | A- | 2,293,524 | ||
| 810 | 5.000%, 7/01/39 | 7/26 at 100.00 | A- | 901,287 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, MCPHS University Issue, Series 2015H: | ||||||
| 550 | 3.500%, 7/01/35 | 7/25 at 100.00 | AA | 544,918 | ||
| 235 | 5.000%, 7/01/37 | 7/25 at 100.00 | AA | 263,733 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, Northeastern University, Series 2014A: | ||||||
| 1,125 | 5.000%, 3/01/39 | 3/24 at 100.00 | A2 | 1,239,356 | ||
| 1,850 | 5.000%, 3/01/44 | 3/24 at 100.00 | A2 | 2,033,206 | ||
| 1,550 | Massachusetts Development Finance Agency, Revenue Bonds, Phillips Academy , Series 2014A, 5.000%, 9/01/43 | 9/23 at 100.00 | AAA | 1,776,409 |
38 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| $ 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Simmons College, Series 2013J, 5.250%, 10/01/39 | No Opt. Call | BBB+ | $1,097,250 | ||
| 2,495 | Massachusetts Development Finance Agency, Revenue Bonds, Sterling and Francine Clark Art Institute, Series 2015, 5.000%, 7/01/33 | 7/25 at 100.00 | AA | 2,864,709 | ||
| 2,000 | Massachusetts Development Finance Agency, Revenue Bonds, Sterling and Francine Clark Art Institute, Series 2016, 4.000%, 7/01/41 | 1/27 at 100.00 | AA | 2,045,720 | ||
| 3,500 | Massachusetts Development Finance Agency, Revenue Bonds, The Broad Institute, Series 2011A, 5.250%, 4/01/37 | 4/21 at 100.00 | AA- | 3,916,570 | ||
| 875 | Massachusetts Development Finance Agency, Revenue Bonds, Tufts University, Series 2015Q, 5.000%, 8/15/38 | 8/25 at 100.00 | Aa2 | 993,738 | ||
| 215 | Massachusetts Development Finance Agency, Revenue Bonds, Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37 – NPFG Insured | 9/17 at 100.00 | AA- | 218,928 | ||
| 2,400 | Massachusetts Development Finance Agency, Revenue Bonds, Worcester Polytechnic Institute, Series 2012, 5.000%, 9/01/50 | 9/22 at 100.00 | A1 | 2,621,640 | ||
| 545 | Massachusetts Development Finance Agency, Revenue Bonds, Worcester Polytechnic Institute, Series 2016, 5.000%, 9/01/37 | 9/26 at 100.00 | A1 | 614,395 | ||
| 2,100 | Massachusetts Development Finance Authority, Revenue Bonds, WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 – AMBAC Insured | No Opt. Call | A+ | 2,757,342 | ||
| Massachusetts Development Finance Authority, Revenue Bonds, WGBH Educational Foundation, Series 2016: | ||||||
| 2,360 | 4.000%, 1/01/38 | 7/26 at 100.00 | A+ | 2,417,277 | ||
| 1,820 | 5.000%, 1/01/40 | 7/26 at 100.00 | A+ | 2,043,569 | ||
| 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 | 2,723,425 | ||
| 1,710 | 5.250%, 7/01/29 (Alternative Minimum Tax) | 7/22 at 100.00 | AA | 1,871,681 | ||
| 820 | 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 | 858,679 | ||
| 895 | Massachusetts Educational Financing Authority, Education Loan Revenue Bonds, Series 2009I, 6.000%, 1/01/28 | 1/20 at 100.00 | AA | 946,543 | ||
| 950 | Massachusetts Educational Financing Authority, Educational Loan Revenue, Series 2011J, 5.625%, 7/01/33 (Alternative Minimum Tax) | 7/21 at 100.00 | AA | 1,017,165 | ||
| 1,000 | Massachusetts Educational Financing Authority, Student Loan Revenue Bonds, Issue I Series 2014, 5.000%, 1/01/27 (Alternative Minimum Tax) | 1/25 at 100.00 | AA | 1,117,300 | ||
| 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 | 1,615,860 | ||
| 7,500 | University of Massachusetts Building Authority, Project Revenue Bonds, Senior Lien Series 2013-1, 5.000%, 11/01/39 | 11/22 at 100.00 | Aa2 | 8,517,150 | ||
| 2,500 | University of Massachusetts Building Authority, Project Revenue Bonds, Senior Series 2015-1, 5.000%, 11/01/40 | 11/25 at 100.00 | Aa2 | 2,836,400 | ||
| 73,650 | Total Education and Civic Organizations | 81,621,580 | ||||
| Health Care–18.6% | ||||||
| 5,000 | Massachusetts Development Finance Agency Revenue Bonds, Children's Hospital Issue, Series 2014P, 5.000%, 10/01/46 | 10/24 at 100.00 | AA | 5,630,900 | ||
| 1,660 | Massachusetts Development Finance Agency Revenue Bonds, South Shore Hospital, Series 2016I, 5.000%, 7/01/41 | 7/26 at 100.00 | A- | 1,819,443 |
NUVEEN 39
Nuveen Massachusetts Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| $ 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 | $2,599,272 | ||
| 3,200 | Massachusetts Development Finance Agency, Revenue Bonds, Baystate Medical Center Issue, Series 2014N, 5.000%, 7/01/44 | 7/24 at 100.00 | A+ | 3,490,944 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, Berkshire Health Systems, Series 2012G: | ||||||
| 3,005 | 5.000%, 10/01/28 | 10/21 at 100.00 | A | 3,280,468 | ||
| 500 | 5.000%, 10/01/30 | 10/21 at 100.00 | A | 542,470 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, Boston Medical Center Issue, Series 2016E: | ||||||
| 360 | 5.000%, 7/01/36 | 7/26 at 100.00 | BBB | 385,495 | ||
| 1,150 | 5.000%, 7/01/37 | 7/26 at 100.00 | BBB | 1,229,592 | ||
| 540 | 4.000%, 7/01/38 | 7/26 at 100.00 | BBB | 525,593 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, CareGroup Issue, Refunding Series 2016-I: | ||||||
| 2,135 | 5.000%, 7/01/29 | 7/26 at 100.00 | A- | 2,475,874 | ||
| 1,935 | 5.000%, 7/01/38 | 7/26 at 100.00 | A- | 2,159,595 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, CareGroup Issue, Series 2015H-1: | ||||||
| 900 | 5.000%, 7/01/30 | 7/25 at 100.00 | A- | 1,021,977 | ||
| 1,000 | 5.000%, 7/01/32 | 7/25 at 100.00 | A- | 1,116,090 | ||
| 500 | 5.000%, 7/01/33 | 7/25 at 100.00 | A- | 553,830 | ||
| 6,100 | Massachusetts Development Finance Agency, Revenue Bonds, Dana-Farber Cancer Institute Issue, Series 2016N, 5.000%, 12/01/46 | 12/26 at 100.00 | A1 | 6,744,221 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, Lahey Health System Obligated Group Issue, Series 2015F: | ||||||
| 1,300 | 5.000%, 8/15/35 | 8/25 at 100.00 | A+ | 1,446,796 | ||
| 5,325 | 5.000%, 8/15/45 | 8/25 at 100.00 | A+ | 5,848,394 | ||
| 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- | 1,453,571 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, Partners HealthCare System Issue, Series 2016Q: | ||||||
| 1,250 | 4.000%, 7/01/41 | 7/26 at 100.00 | AA- | 1,269,450 | ||
| 2,250 | 5.000%, 7/01/41 | 7/26 at 100.00 | AA- | 2,490,390 | ||
| 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 | A3 | 1,088,160 | ||
| 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+ | 3,991,254 | ||
| 890 | Massachusetts Development Finance Agency, Revenue Bonds, UMass Memorial Health Care Obligated Group Issue, Series 2017K, 5.000%, 7/01/38 | 1/27 at 100.00 | A- | 967,813 | ||
| 555 | Massachusetts Development Finance Agency, Revenue Bonds, UMass Memorial Health Care, Series 2016I, 5.000%, 7/01/36 | 7/26 at 100.00 | A- | 598,778 | ||
| 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+ | 2,261,650 |
40 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| $ 735 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard Pilgrim Healthcare, Series 1998A, 4.750%, 7/01/22 – AGM Insured | 7/17 at 100.00 | AA | $736,860 | ||
| 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- | 2,058,646 | ||
| 1,000 | 5.000%, 7/15/37 | 7/17 at 100.00 | BBB- | 1,008,410 | ||
| 53,855 | Total Health Care | 58,795,936 | ||||
| Housing/Multifamily–1.4% | ||||||
| 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 | 1,599,946 | ||
| 3,010 | Massachusetts Development Finance Authority, Multifamily Housing Revenue Bonds, Emerson Manor Project, Series 2007, 4.800%, 7/20/48 | 7/17 at 100.00 | BB- | 3,020,023 | ||
| 4,545 | Total Housing/Multifamily | 4,619,969 | ||||
| Long-Term Care–2.3% | ||||||
| 560 | Massachusetts Development Finance Agency, Revenue Bonds, Berkshire Retirement Community Lennox, Series 2015, 5.000%, 7/01/31 | No Opt. Call | A- | 623,285 | ||
| 240 | Massachusetts Development Finance Agency, Revenue Bonds, Carleton-Willard Village, Series 2010, 5.625%, 12/01/30 | 12/19 at 100.00 | A- | 259,006 | ||
| Massachusetts Development Finance Agency, Revenue Bonds, Loomis Communities, Series 2013A: | ||||||
| 240 | 5.250%, 1/01/26 | 1/23 at 100.00 | BBB- | 263,467 | ||
| 790 | 5.750%, 1/01/28 | 1/23 at 100.00 | BBB- | 862,198 | ||
| 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 | 1,059,350 | ||
| 4,220 | Massachusetts Development Finance Agency, Revenue Bonds, Orchard Cove, Series 2007, 5.250%, 10/01/26 | 4/17 at 101.00 | N/R | 4,241,944 | ||
| 7,050 | Total Long-Term Care | 7,309,250 | ||||
| Tax Obligation/General–6.7% | ||||||
| 1,045 | Boston, Massachusetts, General Obligation Bonds, Series 2013A, 4.000%, 3/01/25 | 3/23 at 100.00 | AAA | 1,159,877 | ||
| 1,750 | Hudson, Massachusetts, General Obligation Bonds, Municipal Purpose Loan Series 2011, 5.000%, 2/15/32 | 2/20 at 100.00 | AA | 1,910,930 | ||
| 1,005 | Massachusetts Bay Transportation Authority, General Obligation Transportation System Bonds, Series 1991A, 7.000%, 3/01/21 | No Opt. Call | AA+ | 1,142,595 | ||
| 1,220 | Massachusetts State, General Obligation Bonds, Consolidated Loan, Refunding Series 2014C, 5.000%, 8/01/22 | No Opt. Call | AA+ | 1,436,501 | ||
| 5,000 | Massachusetts State, General Obligation Bonds, Consolidated Loan, Series 2015C, 5.000%, 7/01/45 | 7/25 at 100.00 | AA+ | 5,677,650 | ||
| 1,190 | Massachusetts State, General Obligation Bonds, Consolidated Loan, Series 2016A, 5.000%, 3/01/46 | 3/24 at 100.00 | AA+ | 1,334,633 | ||
| 1,000 | North Reading, Massachusetts, General Obligation Bonds, Municipal Purpose Loan Series 2012, 5.000%, 5/15/35 – AMBAC Insured | 5/22 at 100.00 | Aa2 | 1,119,390 | ||
| 1,490 | Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A, 5.500%, 7/01/17 – AGM Insured | No Opt. Call | AA | 1,509,891 | ||
| 2,000 | Quincy, Massachusetts, General Obligation Bonds, State Qualified Municipal Purpose Loan Series 2011, 5.125%, 12/01/33 | 12/20 at 100.00 | Aa2 | 2,217,720 |
NUVEEN 41
Nuveen Massachusetts Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/General (continued) | ||||||
| $ 3,685 | Springfield, Massachusetts, General Obligation Bonds, Municipal Purpose Loan Series 2007, 5.000%, 8/01/18 – AGM Insured | 8/17 at 100.00 | AA | $3,698,671 | ||
| 120 | Worcester, Massachusetts, General Obligation Bonds, Series 2001A, 5.500%, 8/15/18 – FGIC Insured | 8/17 at 100.00 | AA | 120,499 | ||
| 19,505 | Total Tax Obligation/General | 21,328,357 | ||||
| Tax Obligation/Limited–10.6% | ||||||
| 1,505 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.125%, 1/01/42 | 1/22 at 100.00 | A | 1,556,998 | ||
| 805 | Government of Guam, Business Privilege Tax Bonds, Series 2012B-1, 5.000%, 1/01/37 | 1/22 at 100.00 | A | 823,346 | ||
| 1,010 | Martha's Vineyard Land Bank, Massachusetts, Revenue Bonds, Refunding Green Series 2014, 5.000%, 5/01/33 – BAM Insured | 11/24 at 100.00 | AA | 1,138,664 | ||
| 500 | Martha's Vineyard Land Bank, Massachusetts, Revenue Refunding Bonds, Green Bonds, Series 2017, 5.000%, 5/01/36 – BAM Insured (WI/DD, Settling 3/01/17) | 5/27 at 100.00 | AA | 562,305 | ||
| 2,545 | Massachusetts Bay Transportation Authority, Assessment Bonds, Series 2012A, 5.000%, 7/01/41 | 7/22 at 100.00 | AAA | 2,859,867 | ||
| 2,500 | Massachusetts Bay Transportation Authority, Sales Tax Revenue Bonds, Senior Lien Series 2015A, 5.000%, 7/01/45 | 7/25 at 100.00 | AA+ | 2,825,100 | ||
| 1,890 | Massachusetts College Building Authority, Project Revenue Bonds, Green Series 2014B, 5.000%, 5/01/44 | 5/24 at 100.00 | AA | 2,115,477 | ||
| Massachusetts College Building Authority, Project Revenue Refunding Bonds, Series 2003B: | ||||||
| 2,025 | 5.375%, 5/01/22 – SYNCORA GTY Insured | No Opt. Call | Aa2 | 2,402,845 | ||
| 1,125 | 5.375%, 5/01/23 – SYNCORA GTY Insured | No Opt. Call | Aa2 | 1,363,703 | ||
| 1,310 | Massachusetts College Building Authority, Revenue Bonds, Refunding Series 2011A, 5.000%, 5/01/24 | No Opt. Call | AA | 1,562,109 | ||
| 1,145 | Massachusetts College Building Authority, Revenue Bonds, Refunding Series 2012B, 5.000%, 5/01/37 | 5/22 at 100.00 | AA | 1,277,797 | ||
| 1,650 | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Senior Refunding Series 2015C, 5.000%, 8/15/37 | 8/25 at 100.00 | AA+ | 1,875,225 | ||
| 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+ | 3,516,375 | ||
| 1,650 | Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2011B, 5.000%, 10/15/41 | 10/21 at 100.00 | AA+ | 1,858,428 | ||
| 1,130 | Massachusetts State, Special Obligation Dedicated Tax Revenue Bonds, Series 2005, 5.000%, 1/01/20 – FGIC Insured | No Opt. Call | AA- | 1,245,915 | ||
| 800 | Massachusetts, Transportation Fund Revenue Bonds, Accelerated Bridge Program, Series 2012A, 4.000%, 6/01/35 | 6/21 at 100.00 | AAA | 832,376 | ||
| 3,500 | Massachusetts, Transportation Fund Revenue Bonds, Rail Enhancement Program, Series 2015A, 5.000%, 6/01/45 | 6/25 at 100.00 | AAA | 3,994,760 | ||
| 1,650 | Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2004J, 5.000%, 7/01/18 – NPFG Insured | 7/17 at 100.00 | AA- | 1,654,092 | ||
| 29,865 | Total Tax Obligation/Limited | 33,465,382 | ||||
| Transportation–6.9% | ||||||
| 1,840 | Massachusetts Department of Transportation, Metropolitan Highway System Revenue Bonds, Refunding Senior Lien Series 2010B, 5.000%, 1/01/32 | 1/20 at 100.00 | A+ | 2,007,716 | ||
| 2,000 | Massachusetts Port Authority, Airport System Revenue Bonds, Series 2010A, 5.000%, 7/01/30 | 7/20 at 100.00 | AA | 2,212,120 |
42 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Transportation (continued) | ||||||
| $ 2,750 | Massachusetts Port Authority, Revenue Bonds, Series 2012B, 5.000%, 7/01/32 | No Opt. Call | AA | $3,121,167 | ||
| 1,780 | Massachusetts Port Authority, Revenue Bonds, Series 2014A, 5.000%, 7/01/34 | 7/24 at 100.00 | AA | 2,031,834 | ||
| Massachusetts Port Authority, Revenue Bonds, Series 2015A: | ||||||
| 1,425 | 5.000%, 7/01/40 | 7/25 at 100.00 | AA | 1,623,731 | ||
| 2,000 | 5.000%, 7/01/45 | 7/25 at 100.00 | AA | 2,271,060 | ||
| 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 | AA- | 2,625,792 | ||
| 500 | Massachusetts Port Authority, Special Facilities Revenue Bonds, ConRac Project, Series 2011A, 5.125%, 7/01/41 | 7/21 at 100.00 | A | 541,445 | ||
| 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) | 7/17 at 100.00 | N/R | 4,095,144 | ||
| 840 | 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+ | 933,736 | ||
| 395 | Virgin Islands Port Authority, Marine Revenue Bonds, Refunding Series 2014B, 5.000%, 9/01/44 | 9/24 at 100.00 | BBB+ | 410,757 | ||
| 20,185 | Total Transportation | 21,874,502 | ||||
| U.S. Guaranteed–14.9% (4) | ||||||
| 1,000 | Boston Water and Sewer Commission, Massachusetts, General Revenue Bonds, Refunding Senior Lien Series 2010A, 5.000%, 11/01/30 (Pre-refunded 11/01/19) | 11/19 at 100.00 | AA+ (4) | 1,103,150 | ||
| Massachusetts Bay Transportation Authority, Sales Tax Revenue Bonds, Senior Lien Series 2006C: | ||||||
| 75 | 5.000%, 7/01/26 (Pre-refunded 7/01/18) | 7/18 at 100.00 | AA+ (4) | 79,184 | ||
| 1,805 | 5.000%, 7/01/34 (Pre-refunded 7/01/18) | 7/18 at 100.00 | AA+ (4) | 1,905,701 | ||
| 2,500 | Massachusetts College Building Authority, Project Revenue Bonds, Series 2008A, 5.000%, 5/01/33 (Pre-refunded 5/01/18) – AGC Insured | 5/18 at 100.00 | AA (4) | 2,622,225 | ||
| 1,015 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2008U-4, 5.600%, 10/01/35 (Pre-refunded 10/01/19) | 10/19 at 100.00 | A1 (4) | 1,131,512 | ||
| 4,150 | Massachusetts Development Finance Agency, Revenue Bonds, Boston University, Series 2009V-1, 5.000%, 10/01/29 (Pre-refunded 10/01/19) | 10/19 at 100.00 | A+ (4) | 4,562,925 | ||
| 6,000 | Massachusetts Development Finance Agency, Revenue Bonds, Draper Laboratory, Series 2008, 5.875%, 9/01/30 (Pre-refunded 9/01/18) | 9/18 at 100.00 | Aa3 (4) | 6,443,640 | ||
| 3,000 | Massachusetts Development Finance Agency, Revenue Bonds, Harvard University, Series 2010B-1, 5.000%, 10/15/40 (Pre-refunded 10/15/20) | 10/20 at 100.00 | Aaa | 3,400,740 | ||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, SABIS International Charter School, Series 2009A, 8.000%, 4/15/39 (Pre-refunded 10/15/19) | 10/19 at 100.00 | N/R (4) | 1,177,530 | ||
| 1,000 | Massachusetts Development Finance Agency, Revenue Bonds, Sterling and Francine Clark Art Institute, Series 2011A, 5.000%, 7/01/41 (Pre-refunded 7/01/21) | 7/21 at 100.00 | AA (4) | 1,152,940 | ||
| 680 | Massachusetts Development Finance Agency, Revenue Bonds, Worcester Polytechnic Institute, Series 2007, 5.000%, 9/01/37 (Pre-refunded 9/01/17) – NPFG Insured | 9/17 at 100.00 | AA- (4) | 695,021 | ||
| 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 (4) | 550,360 | ||
| Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Boston Medical Center, Series 2008B: | ||||||
| 315 | 5.250%, 7/01/38 (Pre-refunded 7/01/18) | 7/18 at 100.00 | N/R (4) | 333,273 | ||
| 2,575 | 5.250%, 7/01/38 (Pre-refunded 7/01/18) | 7/18 at 100.00 | BBB (4) | 2,724,376 |
NUVEEN 43
Nuveen Massachusetts Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (4) (continued) | ||||||
| $ 1,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Cape Cod Healthcare Obligated Group, Series 2004D, 5.125%, 11/15/35 (Pre-refunded 11/15/19) – AGC Insured | 11/19 at 100.00 | AA (4) | $1,107,810 | ||
| 1,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, CareGroup Inc., Auction Rate Series 2004D, 5.250%, 7/01/24 (Pre-refunded 7/01/18) – NPFG Insured | 7/18 at 100.00 | AA- (4) | 1,058,700 | ||
| 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 | AA- (4) | 333,589 | ||
| 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 (Pre-refunded 8/01/18) – NPFG Insured | 8/18 at 100.00 | AA- (4) | 372,355 | ||
| 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 (Pre-refunded 8/01/18) – NPFG Insured | 8/18 at 100.00 | AA- (4) | 529,285 | ||
| 100 | 5.375%, 2/01/27 (Pre-refunded 8/01/18) – NPFG Insured | 8/18 at 100.00 | AA- (4) | 106,387 | ||
| 800 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Harvard University, Tender Option Bond Trust 2016-XL0017, 12.406%, 12/15/34 (Pre-refunded 12/15/19) (IF) (5) | 12/19 at 100.00 | AAA | 1,057,584 | ||
| 2,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lahey Medical Center, Series 2007D, 5.250%, 8/15/28 (Pre-refunded 8/15/17) | 8/17 at 100.00 | A+ (4) | 2,042,640 | ||
| 1,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Lesley University, Series 2009A, 5.000%, 7/01/29 (Pre-refunded 7/01/19) – AGC Insured | 7/19 at 100.00 | AA (4) | 1,091,610 | ||
| 3,000 | Massachusetts Health and Educational Facilities Authority, Revenue Bonds, Tufts University, Series 2008O, 5.375%, 8/15/38 (Pre-refunded 8/15/18) | 8/18 at 100.00 | AA- (4) | 3,194,010 | ||
| Massachusetts School Building Authority, Dedicated Sales Tax Revenue Bonds, Series 2007A: | ||||||
| 2,955 | 5.000%, 8/15/19 (Pre-refunded 8/15/17) – AMBAC Insured | 8/17 at 100.00 | AA+ (4) | 3,015,134 | ||
| 1,400 | 5.000%, 8/15/22 (Pre-refunded 8/15/17) – AMBAC Insured | 8/17 at 100.00 | AA+ (4) | 1,428,490 | ||
| 5 | 5.000%, 8/15/37 (Pre-refunded 8/15/17) – AMBAC Insured | 8/17 at 100.00 | AA+ (4) | 5,102 | ||
| 995 | 5.000%, 8/15/37 (Pre-refunded 8/15/17) – AMBAC Insured | 8/17 at 100.00 | Aa2 (4) | 1,015,248 | ||
| Massachusetts Water Resources Authority, General Revenue Bonds, Series 2005A: | ||||||
| 1,165 | 5.250%, 8/01/17 – NPFG Insured (ETM) | No Opt. Call | AA- (4) | 1,187,799 | ||
| 100 | 5.000%, 8/01/27 (Pre-refunded 8/01/17) | 8/17 at 100.00 | AA- (4) | 101,868 | ||
| 45 | 5.000%, 8/01/28 (Pre-refunded 8/01/17) | 8/17 at 100.00 | AA- (4) | 45,841 | ||
| 130 | 5.000%, 8/01/29 (Pre-refunded 8/01/17) | 8/17 at 100.00 | AA- (4) | 132,428 | ||
| 155 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2005B, 5.000%, 8/01/35 (Pre-refunded 8/01/17) – NPFG Insured | 8/17 at 100.00 | AA- (4) | 157,896 | ||
| 1,390 | Massachusetts Water Resources Authority, General Revenue Refunding Bonds, Series 2006B, 5.000%, 8/01/22 (Pre-refunded 8/01/18) – AMBAC Insured | 8/18 at 100.00 | Aa1 (4) | 1,471,412 | ||
| 44,000 | Total U.S. Guaranteed | 47,337,765 | ||||
| Utilities–2.1% | ||||||
| 1,435 | Guam Power Authority, Revenue Bonds, Series 2010A, 5.000%, 10/01/37 – AGM Insured | 10/20 at 100.00 | AA | 1,571,956 | ||
| 2,060 | 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+ | 2,063,214 |
44 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Utilities (continued) | ||||||
| $ 2,900 | Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 2004PP, 5.000%, 7/01/22 – NPFG Insured | 7/17 at 100.00 | AA- | $ 2,904,785 | ||
| 6,395 | Total Utilities | 6,539,955 | ||||
| Water and Sewer–7.2% | ||||||
| 1,700 | Atlanta, Georgia, Water and Wastewater Revenue Bonds, Refunding Series 2009B, 5.375%, 11/01/39 – AGM Insured | 11/19 at 100.00 | AA | 1,873,927 | ||
| 1,170 | Guam Government Waterworks Authority, Water and Wastewater System Revenue Bonds, Series 2016, 5.000%, 1/01/46 | 7/26 at 100.00 | A- | 1,234,245 | ||
| 2,700 | Massachusetts Clean Water Trust, State Revolving Fund Bonds, Green 18 Series 2015, 5.000%, 2/01/45 | 2/24 at 100.00 | AAA | 3,058,803 | ||
| 60 | Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Series 2003-9, 5.000%, 8/01/22 | 8/17 at 100.00 | AAA | 60,224 | ||
| 4,000 | Massachusetts Water Resources Authority, General Revenue Bonds, Refunding Green Series 2016C, 5.000%, 8/01/40 | 8/26 at 100.00 | AA+ | 4,606,360 | ||
| Massachusetts Water Resources Authority, General Revenue Bonds, Refunding Series 2016B: | ||||||
| 1,345 | 4.000%, 8/01/40 | 8/26 at 100.00 | AA+ | 1,397,468 | ||
| 1,045 | 5.000%, 8/01/40 | 8/26 at 100.00 | AA+ | 1,203,412 | ||
| 1,000 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2002J, 5.250%, 8/01/19 – AGM Insured | No Opt. Call | AA+ | 1,101,680 | ||
| Massachusetts Water Resources Authority, General Revenue Bonds, Series 2005A: | ||||||
| 1,550 | 5.000%, 8/01/27 | 8/17 at 100.00 | AA+ | 1,576,613 | ||
| 705 | 5.000%, 8/01/28 | 8/17 at 100.00 | AA+ | 717,056 | ||
| 1,950 | 5.000%, 8/01/29 | 8/17 at 100.00 | AA+ | 1,983,189 | ||
| 2,345 | Massachusetts Water Resources Authority, General Revenue Bonds, Series 2005B, 5.000%, 8/01/35 – NPFG Insured | 8/17 at 100.00 | AA+ | 2,382,426 | ||
| 1,500 | Springfield Water and Sewer Commission, Massachusetts, General Revenue Bonds, Refunding Series 2010B, 5.000%, 11/15/30 – AGC Insured | 11/20 at 100.00 | AA | 1,665,945 | ||
| 21,070 | Total Water and Sewer | 22,861,348 | ||||
| $ 280,120 | Total Long-Term Investments (cost $292,960,793) | 305,754,044 |
| Other Assets Less Liabilities–3.5% | 11,004,087 | |||||
| Net Assets–100% | $316,758,131 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm. | |
| (3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm. | |
| (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. | |
| (WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
NUVEEN 45
Nuveen New Jersey Municipal Bond Fund
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| LONG-TERM INVESTMENTS–98.7% | ||||||
| MUNICIPAL BONDS–98.7% | ||||||
| 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 | 7/17 at 100.00 | Caa1 | $205,923 | ||
| 240 | 5.125%, 1/01/37 | 7/17 at 100.00 | Caa1 | 170,376 | ||
| 520 | Total Consumer Discretionary | 376,299 | ||||
| Consumer Staples–3.9% | ||||||
| Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A: | ||||||
| 2,755 | 4.500%, 6/01/23 | 6/17 at 100.00 | Baa2 | 2,789,162 | ||
| 7,900 | 4.750%, 6/01/34 | 6/17 at 100.00 | B- | 7,570,570 | ||
| 2,300 | 5.000%, 6/01/41 | 6/17 at 100.00 | B- | 2,227,895 | ||
| 12,955 | Total Consumer Staples | 12,587,627 | ||||
| Education and Civic Organizations–15.7% | ||||||
| 870 | New Jersey Economic Development Authority, Revenue Bonds, The Seeing Eye Inc., Refunding Series 2015, 5.000%, 3/01/25 | No Opt. Call | A | 1,024,469 | ||
| 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- | 849,880 | ||
| 1,015 | 5.000%, 7/01/43 | 7/23 at 100.00 | AA- | 1,116,013 | ||
| New Jersey Educational Facilities Authority, Revenue Bonds, College of New Jersey, Refunding Series 2016F: | ||||||
| 750 | 4.000%, 7/01/35 | 7/26 at 100.00 | AA- | 759,315 | ||
| 1,805 | 3.000%, 7/01/40 | 7/26 at 100.00 | AA- | 1,524,413 | ||
| 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 | 1,999,142 | ||
| 1,800 | New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Refunding Series 2015H, 4.000%, 7/01/39 – AGM Insured | 7/25 at 100.00 | AA | 1,799,928 | ||
| New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2015D: | ||||||
| 2,000 | 5.000%, 7/01/31 | 7/25 at 100.00 | AA- | 2,267,920 | ||
| 1,055 | 3.750%, 7/01/33 | 7/25 at 100.00 | AA- | 1,053,787 | ||
| 1,725 | New Jersey Educational Facilities Authority, Revenue Bonds, New Jersey City University, Series 2015A, 5.000%, 7/01/45 | 7/25 at 100.00 | AA | 1,873,005 | ||
| New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo College, Refunding Series 2012B: | ||||||
| 525 | 5.000%, 7/01/37 | 7/22 at 100.00 | A | 573,195 | ||
| 100 | 5.000%, 7/01/42 | 7/22 at 100.00 | A | 108,949 |
46 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| New Jersey Educational Facilities Authority, Revenue Bonds, Rider University, Series 2012A: | ||||||
| $ 250 | 5.000%, 7/01/32 | 7/21 at 100.00 | Baa2 | $265,593 | ||
| 230 | 5.000%, 7/01/37 | 7/21 at 100.00 | Baa2 | 241,502 | ||
| 470 | New Jersey Educational Facilities Authority, Revenue Bonds, Rowan College, Series 2007B, 4.250%, 7/01/34 – NPFG Insured | 7/17 at 100.00 | AA- | 471,283 | ||
| 1,225 | New Jersey Educational Facilities Authority, Revenue Bonds, Seton Hall University, Refunding Series 2015C, 5.000%, 7/01/32 | 7/25 at 100.00 | A- | 1,362,506 | ||
| 740 | New Jersey Educational Facilities Authority, Revenue Bonds, Seton Hall University, Series 2013D, 5.000%, 7/01/38 | 7/23 at 100.00 | A- | 816,768 | ||
| New Jersey Educational Facilities Authority, Revenue Bonds, Seton Hall University, Series 2016C: | ||||||
| 220 | 3.000%, 7/01/37 | 7/26 at 100.00 | A- | 191,094 | ||
| 1,425 | 3.000%, 7/01/41 | 7/26 at 100.00 | A- | 1,209,711 | ||
| 2,630 | 3.000%, 7/01/46 | 7/26 at 100.00 | A- | 2,170,013 | ||
| 3,200 | 4.000%, 7/01/46 | 7/26 at 100.00 | A- | 3,212,256 | ||
| 590 | New Jersey Educational Facilities Authority, Revenue Bonds, Stockton University Issue, Refunding Series 2016A, 5.000%, 7/01/41 | 7/26 at 100.00 | A | 631,306 | ||
| New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Senior Lien Series 2016-1A: | ||||||
| 2,470 | 3.500%, 12/01/32 (Alternative Minimum Tax) | 12/25 at 100.00 | AA | 2,230,731 | ||
| 570 | 4.000%, 12/01/39 (Alternative Minimum Tax) | 12/25 at 100.00 | AA | 531,177 | ||
| 2,475 | 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 | 2,571,772 | ||
| 380 | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2010-1A, 5.000%, 12/01/25 | 12/19 at 100.00 | AA | 402,063 | ||
| 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 | 539,687 | ||
| 1,455 | 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 | 1,538,182 | ||
| 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 | 428,752 | ||
| New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2013-1A: | ||||||
| 1,695 | 3.625%, 12/01/25 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 1,675,270 | ||
| 885 | 4.000%, 12/01/28 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 903,912 | ||
| 1,400 | 4.000%, 12/01/31 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 1,409,968 | ||
| 1,475 | 4.125%, 12/01/35 (Alternative Minimum Tax) | 12/22 at 100.00 | AA | 1,476,047 | ||
| New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2014-1A-1: | ||||||
| 1,500 | 4.250%, 12/01/32 (Alternative Minimum Tax) | 12/23 at 100.00 | AA | 1,526,385 | ||
| 1,500 | 4.500%, 12/01/36 (Alternative Minimum Tax) | 12/23 at 100.00 | AA | 1,534,125 | ||
| 2,230 | New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2015-1A, 4.000%, 12/01/30 (Alternative Minimum Tax) | 12/24 at 100.00 | AA | 2,258,499 |
NUVEEN 47
Nuveen New Jersey Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| $ 1,425 | New Jersey Institute of Technology, New Jersey, General Obligation Bonds, Series 2012A, 5.000%, 7/01/42 | 7/22 at 100.00 | A1 | $1,570,564 | ||
| 3,000 | New Jersey Institute of Technology, New Jersey, General Obligation Bonds, Series 2015A, 5.000%, 7/01/45 | 7/25 at 100.00 | A1 | 3,279,840 | ||
| 1,000 | Rutgers State University, New Jersey, Revenue Bonds, Refunding Series 2013L, 5.000%, 5/01/43 | 5/23 at 100.00 | Aa3 | 1,116,710 | ||
| 49,605 | Total Education and Civic Organizations | 50,515,732 | ||||
| Financials–0.5% | ||||||
| New Jersey Economic Development Authority, Revenue Refunding Bonds, Kapkowski Road Landfill Project, Series 2002: | ||||||
| 905 | 5.750%, 10/01/21 | No Opt. Call | Ba2 | 948,431 | ||
| 500 | 6.500%, 4/01/28 | No Opt. Call | Ba2 | 579,895 | ||
| 1,405 | Total Financials | 1,528,326 | ||||
| Health Care–12.2% | ||||||
| Camden County Improvement Authority, New Jersey, Health Care Redevelopment Revenue Bonds, Cooper Health System Obligated Group Issue, Refunding Series 2014A: | ||||||
| 1,720 | 5.000%, 2/15/25 | No Opt. Call | BBB+ | 1,909,337 | ||
| 2,000 | 5.000%, 2/15/33 | No Opt. Call | BBB+ | 2,104,340 | ||
| 840 | 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+ | 932,341 | ||
| 195 | New Jersey Health Care Facilities Finance Authority, Revenue Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 | 7/18 at 100.00 | AA- | 203,722 | ||
| 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+ | 850,360 | ||
| 75 | 6.250%, 7/01/35 | 7/21 at 100.00 | BB+ | 80,149 | ||
| 545 | New Jersey Health Care Facilities Financing Authority, New Jersey, Revenue Bonds, Saint Peters University Hospital, Series 2007, 5.750%, 7/01/37 | 7/18 at 100.00 | BB+ | 560,511 | ||
| 400 | New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, Barnabas Health, Series 2012A, 5.000%, 7/01/24 | No Opt. Call | A+ | 450,876 | ||
| New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, Palisades Medical Center Obligated Group Issue, Series 2013: | ||||||
| 660 | 5.250%, 7/01/31 | 7/23 at 100.00 | A- | 728,303 | ||
| 360 | 5.500%, 7/01/43 | 7/23 at 100.00 | A- | 396,313 | ||
| 490 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, AHS Hospital Corporation, Refunding Series 2016, 4.000%, 7/01/41 | 1/27 at 100.00 | AA- | 493,156 | ||
| 1,000 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Barnabas Health, Refunding Series 2014A, 5.000%, 7/01/44 | 7/24 at 100.00 | A+ | 1,086,880 | ||
| 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 | AA | 1,512,555 |
48 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Hunterdon Medical Center, Refunding Series 2014A: | ||||||
| $ 595 | 5.000%, 7/01/45 | 7/24 at 100.00 | A+ | $646,295 | ||
| 1,000 | 4.000%, 7/01/45 | 7/24 at 100.00 | A+ | 980,000 | ||
| New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Kennedy Health System Obligated Group Issue, Refunding Series 2012: | ||||||
| 1,420 | 4.000%, 7/01/17 | No Opt. Call | A3 | 1,435,166 | ||
| 10 | 3.750%, 7/01/27 | No Opt. Call | A3 | 10,100 | ||
| 1,125 | 5.000%, 7/01/31 | 7/22 at 100.00 | A3 | 1,222,504 | ||
| 1,080 | 5.000%, 7/01/42 | 7/22 at 100.00 | A3 | 1,146,355 | ||
| 570 | 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+ | 631,549 | ||
| New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Meridian Health, Series 2007: | ||||||
| 5,175 | 5.000%, 7/01/38 – AGC Insured | 7/18 at 100.00 | AA | 5,362,594 | ||
| 1,185 | 5.000%, 7/01/38 | 7/18 at 100.00 | AA | 1,230,836 | ||
| New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Princeton HealthCare System, Series 2016A: | ||||||
| 460 | 5.000%, 7/01/32 | 7/26 at 100.00 | Baa2 | 518,461 | ||
| 575 | 5.000%, 7/01/33 | 7/26 at 100.00 | Baa2 | 642,712 | ||
| 200 | 5.000%, 7/01/34 | 7/26 at 100.00 | Baa2 | 222,036 | ||
| New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Robert Wood Johnson University Hospital Issue, Series 2014A: | ||||||
| 2,000 | 5.000%, 7/01/39 | 7/24 at 100.00 | A+ | 2,185,880 | ||
| 630 | 5.000%, 7/01/43 | 7/24 at 100.00 | A+ | 687,280 | ||
| 505 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, RWJ Barnabas Health Obligated Group, Refunding Series 2016A, 5.000%, 7/01/43 | 7/26 at 100.00 | A+ | 555,172 | ||
| New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Joseph's Healthcare System Obligated Group Issue, Refunding Series 2016: | ||||||
| 600 | 3.000%, 7/01/32 | 7/26 at 100.00 | BBB- | 509,388 | ||
| 4,395 | 5.000%, 7/01/41 | 7/26 at 100.00 | BBB- | 4,605,257 | ||
| 2,050 | 4.000%, 7/01/48 | 7/26 at 100.00 | BBB- | 1,861,789 | ||
| 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 | A- | 553,818 | ||
| New Jersey Health Care Facilities Financing Authority, Revenue Bonds, University Hospital Issue, Refunding Series 2015A: | ||||||
| 1,500 | 4.125%, 7/01/38 – AGM Insured | 7/25 at 100.00 | AA | 1,523,235 | ||
| 1,255 | 5.000%, 7/01/46 – AGM Insured | 7/25 at 100.00 | AA | 1,345,962 | ||
| 37,475 | Total Health Care | 39,185,232 | ||||
| Housing/Multifamily–5.2% | ||||||
| 600 | New Jersey Economic Development Authority, Revenue Bonds, Provident Group - Rowan Properties LLC - Rowan University Student Housing Project, Series 2017A, 5.000%, 7/01/47 | 1/27 at 100.00 | BBB- | 628,008 |
NUVEEN 49
Nuveen New Jersey Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Housing/Multifamily (continued) | ||||||
| $ 1,770 | New Jersey Economic Development Authority, Revenue Bonds, West Campus Housing LLC - New Jersey City University Student Housing Project, Series 2015, 5.000%, 7/01/47 | 7/25 at 100.00 | BBB- | $1,817,861 | ||
| 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 | 2,229,079 | ||
| 1,100 | 5.875%, 6/01/42 | 6/20 at 100.00 | Baa3 | 1,189,056 | ||
| New Jersey Housing and Mortgage Finance Agency, Multifamily Housing Revenue Bonds, Series 2013-2: | ||||||
| 1,770 | 4.350%, 11/01/33 (Alternative Minimum Tax) | 11/22 at 100.00 | AA | 1,845,827 | ||
| 1,015 | 4.600%, 11/01/38 (Alternative Minimum Tax) | 11/22 at 100.00 | AA | 1,048,201 | ||
| 1,010 | 4.750%, 11/01/46 (Alternative Minimum Tax) | 11/22 at 100.00 | AA | 1,047,026 | ||
| 3,000 | New Jersey Housing and Mortgage Finance Agency, Multifamily Revenue Bonds, Series 2009A, 4.950%, 5/01/41 | 11/19 at 100.00 | AA- | 3,101,490 | ||
| 660 | New Jersey Housing and Mortgage Finance Agency, Multifamily Revenue Bonds, Series 2015A, 4.000%, 11/01/45 | 11/24 at 100.00 | AA- | 661,703 | ||
| 1,135 | New Jersey Housing and Mortgage Finance Agency, Multifamily Revenue Bonds, Series 2016A, 3.750%, 11/01/45 | 11/25 at 100.00 | AA- | 1,073,823 | ||
| 2,040 | New Jersey Housing and Mortgage Finance Agency, Multifamily Revenue Bonds, Series 2016B, 3.600%, 11/01/40 | 11/25 at 100.00 | AA- | 1,967,315 | ||
| 16,155 | Total Housing/Multifamily | 16,609,389 | ||||
| Housing/Single Family–1.3% | ||||||
| 2,900 | New Jersey Housing and Mortgage Finance Agency, Single Family Housing Revenue Bonds, Series 2005O, 0.710%, 10/01/26 (Alternative Minimum Tax) | No Opt. Call | AA | 2,900,000 | ||
| 920 | 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 | 920,497 | ||
| 300 | 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 | 309,657 | ||
| 4,120 | Total Housing/Single Family | 4,130,154 | ||||
| Industrials–0.5% | ||||||
| 1,660 | Gloucester County Improvement Authority, New Jersey, Solid Waste Resource Recovery Revenue Refunding Bonds, Waste Management Inc. Project, Series 1999B, 2.125%, 12/01/29 (Mandatory Put 12/01/17) | No Opt. Call | A- | 1,671,703 | ||
| Long-Term Care–1.5% | ||||||
| 2,965 | 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 | 3,031,208 | ||
| 150 | New Jersey Economic Development Authority, Fixed Rate Revenue Bonds, Lions Gate Project, Series 2014, 5.250%, 1/01/44 | 1/24 at 100.00 | N/R | 153,975 | ||
| 1,205 | 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- | 1,258,803 |
50 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Long-Term Care (continued) | ||||||
| $ 405 | New Jersey Economic Development Authority, Revenue Bonds, United Methodist Homes of New Jersey Obligated Group Issue, Refunding Series 2014A, 5.000%, 7/01/29 | 7/24 at 100.00 | BBB- | $ 434,124 | ||
| 4,725 | Total Long-Term Care | 4,878,110 | ||||
| Tax Obligation/General–10.4% | ||||||
| Cumberland County Improvement Authority, New Jersey, County General Obligation Revenue Bonds, Technical High School Project, Series 2014: | ||||||
| 1,175 | 3.000%, 9/01/30 – AGM Insured | 9/24 at 100.00 | AA | 1,144,344 | ||
| 1,775 | 5.000%, 9/01/39 – AGM Insured | 9/24 at 100.00 | AA | 1,982,977 | ||
| 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- | 816,714 | ||
| 1,270 | 4.000%, 9/15/27 | 9/22 at 100.00 | AA- | 1,366,761 | ||
| Medford Township Board of Education, Burlington County, New Jersey, General Obligation Bonds, Refunding Series 2015: | ||||||
| 215 | 5.000%, 3/01/22 | No Opt. Call | Aa2 | 246,575 | ||
| 235 | 5.000%, 3/01/24 | No Opt. Call | Aa2 | 274,064 | ||
| 525 | Middletown Township Board of Education, Monmouth County, New Jersey, Refunding Series 2010, 5.000%, 8/01/27 | 8/20 at 100.00 | AA | 588,767 | ||
| 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- | 1,090,270 | ||
| 610 | Monroe Township Board of Education, Middlesex County, New Jersey, General Obligation Bonds, Refunding Series 2015, 5.000%, 3/01/38 | 3/25 at 100.00 | AA- | 684,280 | ||
| Montclair Township, Essex County, New Jersey, General Obligation Bonds, Parking Utility, Refunding Series 2014A: | ||||||
| 330 | 3.750%, 1/01/33 | 1/24 at 100.00 | AAA | 332,967 | ||
| 220 | 5.000%, 1/01/37 | 1/24 at 100.00 | AAA | 246,446 | ||
| 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+ | 633,498 | ||
| New Brunswick Parking Authority, Middlesex County, New Jersey, Guaranteed Parking Revenue Bonds, Refunding Series 2016A: | ||||||
| 3,140 | 5.000%, 9/01/29 – BAM Insured | 9/26 at 100.00 | AA | 3,657,095 | ||
| 1,325 | 5.000%, 9/01/39 – BAM Insured | No Opt. Call | AA | 1,496,004 | ||
| New Brunswick Parking Authority, Middlesex County, New Jersey, Guaranteed Parking Revenue Bonds, Refunding Series 2016B: | ||||||
| 680 | 3.000%, 9/01/39 – AGM Insured | 9/26 at 100.00 | AA | 591,824 | ||
| 1,655 | 4.000%, 9/01/40 – AGM Insured | 9/26 at 100.00 | AA | 1,677,243 | ||
| 1,735 | Passaic County, New Jersey, General Obligation Bonds, Refunding Series 2015, 5.000%, 2/01/20 | No Opt. Call | AA | 1,923,820 | ||
| Readington Township, New Jersey, General Obligation Bonds, General Improvement Series 2011: | ||||||
| 875 | 5.125%, 1/15/28 | 1/21 at 100.00 | AA | 956,288 | ||
| 875 | 5.250%, 1/15/30 | 1/21 at 100.00 | AA | 955,981 | ||
| 1,280 | Ridgewood Township Board of Education, Bergen County, New Jersey, General Obligation Bonds, Refunding Series 2016A, 3.000%, 3/15/35 | 3/27 at 100.00 | AA+ | 1,185,472 |
NUVEEN 51
Nuveen New Jersey Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/General (continued) | ||||||
| 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+ | $495,009 | ||
| 305 | 4.000%, 12/01/24 | 6/22 at 100.00 | AA+ | 332,255 | ||
| 1,010 | Sparta Township Board of Education, Sussex County, New Jersey, General Obligation Bonds, Refunding Series 2015, 5.000%, 2/15/33 | 2/25 at 100.00 | AA- | 1,152,137 | ||
| 1,630 | Sussex County, New Jersey, General Obligation Bonds, Refunding Series 2014, 4.000%, 2/15/21 | No Opt. Call | AA+ | 1,791,207 | ||
| 3,685 | Union County Utilities Authority, New Jersey, Resource Recovery Facility Lease Revenue Bonds, Covantan Union Inc. Lessee, Refunding Series 2011B, 5.250%, 12/01/31 (Alternative Minimum Tax) | 12/21 at 100.00 | AA+ | 3,966,866 | ||
| 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 | Aaa | 2,726,838 | ||
| 1,000 | West Deptford Township, Gloucester County, New Jersey, General Obligation Bonds, Refunding Series 2014, 4.000%, 9/01/28 – BAM Insured | 9/24 at 100.00 | AA | 1,067,470 | ||
| 30,840 | Total Tax Obligation/General | 33,383,172 | ||||
| Tax Obligation/Limited–19.2% | ||||||
| 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 | 801,346 | ||
| Burlington County Bridge Commission, New Jersey, Governmental Leasing Program Revenue Bonds, County Guaranteed, Series 2016A: | ||||||
| 200 | 5.000%, 10/01/22 | No Opt. Call | AA | 232,192 | ||
| 390 | 2.500%, 10/01/31 | 4/26 at 100.00 | AA | 347,962 | ||
| 820 | Essex County Improvement Authority, New Jersey, Project Consolidation Revenue Bonds, Refunding Series 2007, 5.250%, 12/15/22 – AMBAC Insured | No Opt. Call | AA+ | 967,477 | ||
| 2,395 | Garden State Preservation Trust, New Jersey, Open Space and Farmland Preservation Bonds, Series 2005A, 5.750%, 11/01/28 – AGM Insured | No Opt. Call | AA | 2,929,133 | ||
| 1,050 | Government of Guam, Business Privilege Tax Bonds, Series 2011A, 5.250%, 1/01/36 | 1/22 at 100.00 | A | 1,095,916 | ||
| Hudson County Improvement Authority, New Jersey, County Secured Lease Revenue Bonds, Hudson County Vocational Technical Schools Project, Series 2016: | ||||||
| 6,490 | 5.000%, 5/01/46 | 5/26 at 100.00 | AA | 7,313,192 | ||
| 1,080 | 5.250%, 5/01/51 | 5/26 at 100.00 | AA | 1,232,626 | ||
| New Jersey Economic Development Authority, Cigarette Tax Revenue Refunding Bonds, Series 2012: | ||||||
| 1,385 | 5.000%, 6/15/19 | No Opt. Call | BBB+ | 1,466,119 | ||
| 350 | 5.000%, 6/15/21 | No Opt. Call | BBB+ | 380,457 | ||
| 2,850 | 5.000%, 6/15/25 | 6/22 at 100.00 | BBB+ | 3,044,227 | ||
| 450 | 5.000%, 6/15/28 | No Opt. Call | BBB+ | 476,185 | ||
| 1,000 | New Jersey Economic Development Authority, Revenue Bonds, Motor Vehicle Surcharge, Series 2004A, 5.000%, 7/01/29 – NPFG Insured | No Opt. Call | AA- | 1,025,030 | ||
| New Jersey Economic Development Authority, Revenue Bonds, Newark Downtown District Management Corporation Project, Series 2007: | ||||||
| 85 | 5.125%, 6/15/27 | 6/17 at 100.00 | Baa3 | 85,480 | ||
| 145 | 5.125%, 6/15/37 | 6/17 at 100.00 | Baa3 | 145,574 |
52 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| $ 1,500 | New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Refunding Series 2014PP, 5.000%, 6/15/26 | 6/24 at 100.00 | A3 | $1,561,530 | ||
| 4,000 | New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Refunding Series 2015WW, 5.250%, 6/15/40 | 6/25 at 100.00 | A3 | 4,066,920 | ||
| 2,000 | New Jersey Economic Development Authority, Sublease Revenue Bonds, New Jersey Transit Corporation Projects, Refunding Series 2017B, 5.000%, 11/01/25 | No Opt. Call | A3 | 2,103,540 | ||
| New Jersey Health Care Facilities Financing Authority, State Contract Bonds, Hospital Asset Transformation Program, Series 2008A: | ||||||
| 2,520 | 5.000%, 10/01/28 | 10/18 at 100.00 | A3 | 2,547,947 | ||
| 1,515 | 5.250%, 10/01/38 | 10/18 at 100.00 | A3 | 1,525,484 | ||
| 2,010 | 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 | A3 | 2,152,067 | ||
| New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Revenue Notes, Series 2016A-1: | ||||||
| 225 | 5.000%, 6/15/29 | 6/26 at 100.00 | A+ | 239,843 | ||
| 125 | 5.000%, 6/15/30 | 6/26 at 100.00 | A+ | 132,534 | ||
| 14,305 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Capital Appreciation Series 2010A, 0.000%, 12/15/30 | No Opt. Call | A3 | 7,243,337 | ||
| 1,900 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding Series 2006A, 5.500%, 12/15/22 | No Opt. Call | A3 | 2,095,225 | ||
| New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Refunding Series 2006C: | ||||||
| 6,220 | 0.000%, 12/15/32 – AGM Insured | No Opt. Call | AA | 3,015,954 | ||
| 4,765 | 0.000%, 12/15/33 – AGM Insured | No Opt. Call | AA | 2,181,798 | ||
| 1,790 | 0.000%, 12/15/34 – AGM Insured | No Opt. Call | AA | 774,229 | ||
| 500 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2007A, 5.000%, 12/15/26 – AMBAC Insured | 12/17 at 100.00 | A3 | 513,485 | ||
| 1,510 | New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2010D, 5.000%, 12/15/24 | No Opt. Call | A3 | 1,609,751 | ||
| 1,140 | Passaic County Improvement Authority, New Jersey, Lease Revenue Bonds, Preakness Healthcare Center Expansion Project, Refunding Series 2015, 3.750%, 5/01/36 | 5/25 at 100.00 | AA | 1,151,970 | ||
| 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 | 1,670,041 | ||
| 1,970 | 3.500%, 5/01/35 | 5/22 at 100.00 | Aa3 | 1,949,000 | ||
| 3,000 | Union County Improvement Authority, New Jersey, Lease Revenue Bonds, Plainfield - Park Madison Redevelopment Project, Refunding Series 2013A, 5.000%, 3/01/34 | No Opt. Call | AA+ | 3,689,160 | ||
| 71,800 | Total Tax Obligation/Limited | 61,766,731 | ||||
| Transportation–14.9% | ||||||
| 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 | 1,199,792 |
NUVEEN 53
Nuveen New Jersey Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Transportation (continued) | ||||||
| Delaware River and Bay Authority, Delaware and New Jersey, Revenue Bonds, Series 2014A: | ||||||
| $ 360 | 5.000%, 1/01/34 | 1/24 at 100.00 | A1 | $399,053 | ||
| 1,510 | 4.125%, 1/01/39 | 1/24 at 100.00 | A1 | 1,552,099 | ||
| 2,000 | 5.000%, 1/01/44 | 1/24 at 100.00 | A1 | 2,195,060 | ||
| 1,635 | Delaware River Joint Toll Bridge Commission, New Jersey and Pennsylvania, Bridge System Revenue Bonds, Refunding Series 2015, 4.000%, 7/01/35 – BAM Insured | 7/25 at 100.00 | AA | 1,691,244 | ||
| Delaware River Joint Toll Bridge Commission, New Jersey and Pennsylvania, Bridge System Revenue Bonds, Series 2017: | ||||||
| 1,000 | 5.000%, 7/01/42 (WI/DD, Settling 3/01/17) | 7/27 at 100.00 | A1 | 1,129,080 | ||
| 2,860 | 5.000%, 7/01/47 (WI/DD, Settling 3/01/17) | 7/27 at 100.00 | A1 | 3,215,040 | ||
| Delaware River Joint Toll Bridge Commission, Pennsylvania, Bridge System Revenue Bonds, Refunding Series 2012A: | ||||||
| 500 | 5.000%, 7/01/26 | 7/22 at 100.00 | A1 | 568,425 | ||
| 500 | 3.000%, 7/01/28 | 7/22 at 100.00 | A1 | 503,200 | ||
| 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 | 1,933,906 | ||
| Delaware River Port Authority, Pennsylvania and New Jersey, Revenue Refunding Bonds, Port District Project, Series 2012: | ||||||
| 1,000 | 5.000%, 1/01/24 | No Opt. Call | A- | 1,109,400 | ||
| 1,095 | 5.000%, 1/01/26 | No Opt. Call | A- | 1,206,821 | ||
| 1,100 | 5.000%, 1/01/27 | No Opt. Call | A- | 1,205,611 | ||
| New Jersey Economic Development Authority, Private Activity Bonds, The Goethals Bridge Replacement Project, Series 2013: | ||||||
| 1,465 | 5.000%, 1/01/31 – AGM Insured (Alternative Minimum Tax) | 1/24 at 100.00 | AA | 1,609,288 | ||
| 515 | 5.125%, 7/01/42 – AGM Insured (Alternative Minimum Tax) | 1/24 at 100.00 | AA | 561,412 | ||
| 1,255 | 5.625%, 1/01/52 (Alternative Minimum Tax) | 1/24 at 100.00 | BBB | 1,387,402 | ||
| New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 1999: | ||||||
| 400 | 5.125%, 9/15/23 (Alternative Minimum Tax) | 3/17 at 100.00 | BB- | 423,980 | ||
| 800 | 5.250%, 9/15/29 (Alternative Minimum Tax) | 9/22 at 101.00 | BB- | 844,872 | ||
| 300 | New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental Airlines Inc., Series 2000A & 2000B, 5.625%, 11/15/30 (Alternative Minimum Tax) | 3/24 at 101.00 | BB- | 326,943 | ||
| 2,000 | New Jersey Turnpike Authority, Revenue Bonds, Refunding Series 2016A, 5.000%, 1/01/34 | 1/26 at 100.00 | A+ | 2,263,720 | ||
| 1,300 | New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 5.250%, 1/01/29 – AGM Insured | No Opt. Call | AA | 1,604,291 | ||
| 3,500 | New Jersey Turnpike Authority, Revenue Bonds, Series 2009I, 5.000%, 1/01/35 | 1/20 at 100.00 | A+ | 3,792,600 | ||
| 1,380 | New Jersey Turnpike Authority, Revenue Bonds, Series 2012B, 5.000%, 1/01/28 | 1/23 at 100.00 | A+ | 1,565,582 | ||
| 5,000 | New Jersey Turnpike Authority, Revenue Bonds, Series 2013A, 5.000%, 1/01/43 | 7/22 at 100.00 | A+ | 5,502,950 | ||
| 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 | 980,514 | ||
| 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- | 2,100,800 |
54 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Transportation (continued) | ||||||
| $ 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- | $2,049,988 | ||
| 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) | 6/17 at 100.00 | AA- | 2,029,360 | ||
| 3,125 | 5.750%, 12/01/25 – NPFG Insured (Alternative Minimum Tax) | 6/17 at 100.00 | AA- | 3,175,469 | ||
| 44,170 | Total Transportation | 48,127,902 | ||||
| U.S. Guaranteed–8.9% (4) | ||||||
| 5 | Essex County Improvement Authority, New Jersey, Project Consolidation Revenue Bonds, Refunding Series 2007, 5.250%, 12/15/22 – AMBAC Insured (ETM) | No Opt. Call | Aa2 (4) | 5,999 | ||
| 35 | Monmouth County Improvement Authority, New Jersey, Governmental Loan Revenue Bonds, Series 2005, 4.000%, 12/01/17 (Pre-refunded 6/01/17) – AMBAC Insured | 6/17 at 100.00 | N/R (4) | 35,080 | ||
| 175 | 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) | 186,904 | ||
| New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Series 2007U: | ||||||
| 525 | 5.000%, 9/01/37 (Pre-refunded 9/01/17) – AMBAC Insured | 9/17 at 100.00 | AA+ (4) | 536,351 | ||
| 305 | 5.000%, 9/01/37 (Pre-refunded 9/01/17) – AMBAC Insured | 9/17 at 100.00 | BBB+ (4) | 311,594 | ||
| 1,195 | New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Series 2007D, 5.000%, 7/01/32 (Pre-refunded 7/01/17) – FGIC Insured | 7/17 at 100.00 | AA- (4) | 1,212,782 | ||
| 2,000 | New Jersey Educational Facilities Authority, Revenue Bonds, Richard Stockton College of New Jersey, Refunding Series 2008A, 5.375%, 7/01/38 (Pre-refunded 7/01/18) | 7/18 at 100.00 | Baa1 (4) | 2,121,560 | ||
| 30 | New Jersey Educational Facilities Authority, Revenue Bonds, Rowan College, Series 2007B, 4.250%, 7/01/34 (Pre-refunded 7/01/17) – NPFG Insured | 7/17 at 100.00 | AA- (4) | 30,370 | ||
| 2,520 | 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) | 2,879,503 | ||
| 4,260 | New Jersey Health Care Facilities Finance Authority, Revenue Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 (Pre-refunded 7/01/18) | 7/18 at 100.00 | N/R (4) | 4,495,280 | ||
| New Jersey Health Care Facilities Financing Authority, Revenue and Refunding Bonds, Palisades Medical Center Obligated Group Issue, Series 2013: | ||||||
| 140 | 5.250%, 7/01/31 (Pre-refunded 7/01/23) | 7/23 at 100.00 | N/R (4) | 168,591 | ||
| 80 | 5.500%, 7/01/43 (Pre-refunded 7/01/23) | 7/23 at 100.00 | N/R (4) | 97,530 | ||
| 1,170 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%, 7/01/37 (Pre-refunded 7/01/17) | 7/17 at 100.00 | N/R (4) | 1,186,918 | ||
| 360 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Saint Barnabas Health Care System, Refunding Series 2011A, 5.625%, 7/01/37 (Pre-refunded 7/01/21) | 7/21 at 100.00 | A+ (4) | 423,680 | ||
| 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 (Pre-refunded 7/01/18) | 7/18 at 100.00 | Baa3 (4) | 3,281,647 | ||
| 845 | New Jersey Health Care Facilities Financing Authority, Revenue Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 – AGC Insured (ETM) | No Opt. Call | AA (4) | 954,377 | ||
| New Jersey Health Care Facilities Financing Authority, State Contract Bonds, Hospital Asset Transformation Program, Series 2008A: | ||||||
| 725 | 5.000%, 10/01/28 (Pre-refunded 10/01/18) | 10/18 at 100.00 | N/R (4) | 772,756 | ||
| 440 | 5.250%, 10/01/38 (Pre-refunded 10/01/18) | 10/18 at 100.00 | N/R (4) | 470,721 |
NUVEEN 55
Nuveen New Jersey Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (4) (continued) | ||||||
| $ 2,750 | Newark Housing Authority, New Jersey, City-Secured Police Facility Revenue Bonds, South Ward Police Facility, Series 2009A, 6.750%, 12/01/38 (Pre-refunded 12/01/19) – AGC Insured | 12/19 at 100.00 | A3 (4) | $3,168,605 | ||
| 120 | North Hudson Sewerage Authority, New Jersey, Gross Revenue Senior Lien Lease Certificates, Series 2012A, 5.000%, 6/01/27 (Pre-refunded 6/01/22) | 6/22 at 100.00 | N/R (4) | 140,695 | ||
| 1,680 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Forty Eighth Series 2007, 5.000%, 8/15/32 (Pre-refunded 8/15/17) – AGM Insured | 8/17 at 100.00 | AA (4) | 1,714,154 | ||
| 4,000 | Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 – AMBAC Insured (ETM) | No Opt. Call | Aaa | 4,626,120 | ||
| 26,410 | Total U.S. Guaranteed | 28,821,217 | ||||
| Utilities–1.8% | ||||||
| 2,430 | Essex County Improvement Authority, New Jersey, Solid Waste Disposal Revenue Bonds, Covanta Project, Series 2015, 5.250%, 7/01/45 (Alternative Minimum Tax) | 7/20 at 100.00 | Ba2 | 2,419,162 | ||
| 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 | 514,125 | ||
| 1,000 | 5.125%, 6/15/43 (Alternative Minimum Tax) | 6/22 at 100.00 | Baa3 | 1,026,970 | ||
| 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 | A+ | 1,020,144 | ||
| 640 | Salem County Pollution Control Financing Authority, New Jersey, Pollution Control Revenue Bonds, Chambers Project, Refunding Series 2014A, 5.000%, 12/01/23 (Alternative Minimum Tax) | No Opt. Call | BBB- | 702,515 | ||
| 5,530 | Total Utilities | 5,682,916 | ||||
| Water and Sewer–2.6% | ||||||
| New Jersey Economic Development Authority, Water Facilities Revenue Bonds, Middlesex Water Company, Series 2012C: | ||||||
| 1,045 | 5.000%, 10/01/23 | No Opt. Call | A+ | 1,212,994 | ||
| 2,175 | 4.250%, 10/01/47 (Alternative Minimum Tax) | 10/22 at 100.00 | A+ | 2,207,147 | ||
| 1,770 | New Jersey Environmental Infrastructure Trust, Environmental Infrastructure Bonds, Tender Option Bond Trust 2016-XF0395, 6.797%, 9/01/21 (IF) (5) | No Opt. Call | AAA | 2,167,507 | ||
| North Hudson Sewerage Authority, New Jersey, Gross Revenue Senior Lien Lease Certificates, Series 2012A: | ||||||
| 1,380 | 5.000%, 6/01/27 | 6/22 at 100.00 | A | 1,530,351 | ||
| 1,215 | 5.000%, 6/01/42 – NPFG Insured | 6/22 at 100.00 | A | 1,320,012 | ||
| 7,585 | Total Water and Sewer | 8,438,011 | ||||
| $ 314,955 | Total Long-Term Investments (cost $308,708,645) | 317,702,521 |
| Other Assets Less Liabilities–1.3% | 4,313,801 | |||||
| Net Assets–100% | $322,016,322 |
56 NUVEEN
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm. | |
| (3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm. | |
| (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. | |
| (WI/DD) | Investment, or portion of investment, purchased on a when-issued or delayed delivery basis. |
See accompanying notes to financial statements.
NUVEEN 57
Nuveen New York Municipal Bond Fund
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| LONG-TERM INVESTMENTS–99.8% | ||||||
| MUNICIPAL BONDS–99.8% | ||||||
| Consumer Staples–5.1% | ||||||
| $ 15,870 | Erie County Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, 1st Subordinate Series 2005B, 0.000%, 6/01/47 | 5/17 at 17.71 | N/R | $1,938,838 | ||
| Erie County Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2005A: | ||||||
| 15,010 | 5.000%, 6/01/38 | 5/17 at 100.00 | BB | 15,011,201 | ||
| 1,055 | 5.000%, 6/01/45 | 5/17 at 100.00 | BB- | 1,021,873 | ||
| 99,680 | Erie County Tobacco Asset Securitization Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2005C, 0.000%, 6/01/50 | 5/17 at 12.68 | N/R | 7,338,442 | ||
| 1,850 | Nassau County Tobacco Settlement Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Refunding Series 2006A-2, 5.250%, 6/01/26 | 5/17 at 100.00 | B- | 1,849,945 | ||
| 4,450 | Nassau County Tobacco Settlement Corporation, New York, Tobacco Settlement Asset-Backed Bonds, Series 2006A-3, 5.000%, 6/01/35 | 5/17 at 100.00 | B- | 4,340,930 | ||
| 1,565 | New York Counties Tobacco Trust VI, New York, Tobacco Settlement Pass-Through Bonds, Turbo Term Series 2016A. Including 2016A-1, 2016A-2A and 2016A-2B, 5.000%, 6/01/51 | 6/26 at 100.00 | N/R | 1,607,380 | ||
| 6,970 | TSASC Inc., New York, Tobacco Asset-Backed Bonds, Series 2006, 5.000%, 6/01/48 | No Opt. Call | N/R | 7,121,040 | ||
| 146,450 | Total Consumer Staples | 40,229,649 | ||||
| Education and Civic Organizations–15.9% | ||||||
| 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 | 666,237 | ||
| 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 | B | 517,946 | ||
| 1,000 | 5.000%, 4/01/27 | 4/17 at 100.00 | B | 915,130 | ||
| 290 | 5.000%, 4/01/37 | 4/17 at 100.00 | B | 239,874 | ||
| 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 | 2,191,029 | ||
| Build New York City 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- | 1,675,705 | ||
| 1,250 | 5.500%, 4/01/43 | 4/23 at 100.00 | BBB- | 1,305,187 | ||
| Build New York City Resource Corporation, New York, Revenue Bonds, Children's Aid Society Project, Series 2015: | ||||||
| 2,500 | 5.000%, 7/01/40 | 7/25 at 100.00 | A+ | 2,761,525 | ||
| 2,500 | 5.000%, 7/01/45 | 7/25 at 100.00 | A+ | 2,753,950 |
58 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| Build New York City Resource Corporation, New York, Revenue Bonds, City University of New York - Queens College, Q Student Residences, LLC Project, Refunding Series 2014A: | ||||||
| $ 1,000 | 5.000%, 6/01/38 | 6/24 at 100.00 | Aa2 | $1,132,320 | ||
| 4,050 | 5.000%, 6/01/43 | 6/24 at 100.00 | Aa2 | 4,557,748 | ||
| Build New York City Resource Corporation, New York, Revenue Bonds, South Bronx Charter School for International Cultures and the Arts Project, Series 2013A: | ||||||
| 1,050 | 5.000%, 4/15/33 | 4/23 at 100.00 | BB+ | 1,033,945 | ||
| 1,875 | 5.000%, 4/15/43 | 4/23 at 100.00 | BB+ | 1,790,700 | ||
| 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 | Baa1 | 1,885,170 | ||
| 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 | AA | 2,688,533 | ||
| 595 | Dormitory Authority of the State of New York, General Revenue Bonds, Saint Johns University, Series 2015A, 5.000%, 7/01/37 | 7/25 at 100.00 | A- | 659,058 | ||
| 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 | AA- | 1,930,837 | ||
| 735 | 5.250%, 7/01/34 – FGIC Insured | No Opt. Call | AA- | 847,073 | ||
| 1,500 | Dormitory Authority of the State of New York, Lease Revenue Bonds, State University Dormitory Facilities, Refunding Series 2013A, 5.000%, 7/01/27 | 7/23 at 100.00 | Aa3 | 1,723,845 | ||
| 1,600 | Dormitory Authority of the State of New York, Revenue Bonds, Barnard College, Refunding Series 2015A, 5.000%, 7/01/43 | 7/25 at 100.00 | A1 | 1,793,152 | ||
| 85 | Dormitory Authority of the State of New York, Revenue Bonds, Barnard College, Series 2007A, 5.000%, 7/01/37 – NPFG Insured | 7/17 at 100.00 | AA- | 86,068 | ||
| 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 | 8,663,227 | ||
| 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 | 856,425 | ||
| 2,760 | Dormitory Authority of the State of New York, Revenue Bonds, Icahn School of Medicine at Mount Sinai, Refunding Series 2015A, 5.000%, 7/01/40 | 7/25 at 100.00 | A- | 3,000,920 | ||
| 4,590 | Dormitory Authority of the State of New York, Revenue Bonds, New School University, Series 2015A, 5.000%, 7/01/45 | 7/25 at 100.00 | A- | 5,087,648 | ||
| 1,055 | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 – AMBAC Insured | No Opt. Call | AA- | 1,364,590 | ||
| 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- | 1,618,185 | ||
| 3,450 | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series 2015A, 5.000%, 7/01/35 | No Opt. Call | AA- | 3,912,162 | ||
| 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 | 1,330,992 | ||
| 5,000 | Dormitory Authority of the State of New York, Revenue Bonds, Pratt Institute, Series 2015A, 5.000%, 7/01/44 | 7/24 at 100.00 | A3 | 5,444,500 | ||
| 3,450 | Dormitory Authority of the State of New York, Revenue Bonds, Vaughn College of Aeronautics & Technology, Series 2016A, 5.500%, 12/01/36 | 12/26 at 100.00 | BB- | 3,472,977 |
NUVEEN 59
Nuveen New York Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| $ 3,040 | Glen Cove Local Economic Assistance Corporation, New York, Revenue Bonds, Garvies Point Public Improvement Project, Capital Appreciation Series 2016C, 0.000%, 1/01/55 | 1/34 at 100.00 | N/R | $2,033,760 | ||
| 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- | 266,365 | ||
| 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 | 1,261,574 | ||
| New Rochelle Corporation, New York, Local Development Revenue Bonds, Iona College Project, Series 2015A: | ||||||
| 160 | 5.000%, 7/01/40 | 7/25 at 100.00 | BBB | 171,363 | ||
| 175 | 5.000%, 7/01/45 | 7/25 at 100.00 | BBB | 187,044 | ||
| 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- | 2,565,925 | ||
| 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 | 5/17 at 100.00 | BBB | 4,009,640 | ||
| 1,060 | 5.000%, 1/01/39 – AMBAC Insured | 5/17 at 100.00 | BBB | 1,062,406 | ||
| 1,795 | 4.750%, 1/01/42 – AMBAC Insured | 5/17 at 100.00 | BBB | 1,796,239 | ||
| 5,170 | 5.000%, 1/01/46 – AMBAC Insured | 5/17 at 100.00 | BBB | 5,181,788 | ||
| New York City Industrial Development Authority, New York, PILOT Revenue Bonds, Yankee Stadium Project, Series 2006: | ||||||
| 720 | 5.000%, 3/01/31 – FGIC Insured | 5/17 at 100.00 | Baa1 | 721,735 | ||
| 2,500 | 5.000%, 3/01/36 – NPFG Insured | 5/17 at 100.00 | AA- | 2,538,550 | ||
| 2,140 | 4.500%, 3/01/39 – FGIC Insured | 5/17 at 100.00 | Baa1 | 2,144,943 | ||
| 1,150 | 4.750%, 3/01/46 – NPFG Insured | 5/17 at 100.00 | AA- | 1,153,335 | ||
| 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+ | 2,168,300 | ||
| 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 | 818,499 | ||
| 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- | 6,167,920 | ||
| 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- | 4,346,022 | ||
| 10,000 | 5.000%, 8/01/43 | 8/23 at 100.00 | AA- | 11,105,100 | ||
| 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 | 1,060,450 | ||
| 1,745 | 5.000%, 7/01/42 | 7/22 at 100.00 | Baa2 | 1,828,097 | ||
| 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 | A3 | 1,763,616 |
60 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Education and Civic Organizations (continued) | ||||||
| Yonkers Economic Development Corporation, New York, Revenue Bonds, Charter School Educational Excellence Project, Series 2010A: | ||||||
| $ 1,285 | 6.000%, 10/15/30 | 10/20 at 100.00 | BB+ | $1,345,755 | ||
| 2,300 | 6.250%, 10/15/40 | 10/20 at 100.00 | BB+ | 2,405,064 | ||
| 118,280 | Total Education and Civic Organizations | 126,010,148 | ||||
| Financials–1.4% | ||||||
| 5,710 | New York Liberty Development Corporation, Revenue Bonds, Goldman Sachs Headquarters Issue, Series 2005, 5.250%, 10/01/35 | No Opt. Call | A | 6,840,466 | ||
| 3,475 | New York Liberty Development Corporation, Revenue Bonds, Goldman Sachs Headquarters Issue, Series 2007, 5.500%, 10/01/37 | No Opt. Call | A | 4,301,980 | ||
| 9,185 | Total Financials | 11,142,446 | ||||
| Health Care–4.1% | ||||||
| 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 | A | 593,158 | ||
| 2,500 | Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish Obligated Group, Series 2011A, 5.000%, 5/01/41 | 5/21 at 100.00 | A | 2,719,300 | ||
| 2,300 | Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish Obligated Group, Series 2015A, 5.000%, 5/01/43 | 5/25 at 100.00 | A | 2,505,758 | ||
| 1,000 | Dormitory Authority of the State of New York, Revenue Bonds, Orange Regional Medical Center Obligated Group, Series 2015, 5.000%, 12/01/29 | No Opt. Call | Baa3 | 1,092,900 | ||
| 200 | Dormitory Authority of the State of New York, Revenue Bonds, Orange Regional Medical Center Obligated Group, Series 2017, 5.000%, 12/01/36 | 6/27 at 100.00 | Baa3 | 214,246 | ||
| 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 | 603,092 | ||
| 950 | 5.500%, 4/01/34 | 10/20 at 100.00 | AA | 1,043,860 | ||
| 6,430 | Dutchess County Local Development Corporation, New York, Revenue Bonds, Health Quest Systems, Inc. Project, Series 2016B, 5.000%, 7/01/46 | 7/26 at 100.00 | A- | 7,042,265 | ||
| 375 | Monroe County Industrial Development Corporation Tax-Exempt Revenue Bonds, New York, Highland Hospital of Rochester Project, Series 2015, 5.000%, 7/01/34 | 7/25 at 100.00 | A | 416,805 | ||
| 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 | AA | 3,134,746 | ||
| 5,000 | 5.500%, 8/15/40 | 2/21 at 100.00 | AA | 5,696,200 | ||
| 1,395 | Monroe County Industrial Development Corporation, New York, Revenue Bonds, Rochester General Hospital Project, Series 2013A, 5.000%, 12/01/42 | 12/22 at 100.00 | A- | 1,498,676 | ||
| 1,715 | Suffolk County Economic Development Corporation, New York, Revenue Bonds, Catholic Health Services of Long Island Obligated Group Project, Refunding Series 2011, 5.000%, 7/01/28 | 7/21 at 100.00 | BBB+ | 1,844,911 | ||
| 1,000 | Westchester County Local Development Corporation, New York, Revenue Bonds, Westchester Medical Center Obligated Group Project, Refunding Series 2016, 5.000%, 11/01/46 | 11/25 at 100.00 | BBB | 1,057,600 | ||
| 2,000 | Yonkers Industrial Development Agency, New York, Revenue Bonds, St. John's Riverside Hospital, Series 2001A, 7.125%, 7/01/31 | 7/17 at 100.00 | BB- | 2,003,400 |
NUVEEN 61
Nuveen New York Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Health Care (continued) | ||||||
| $ 1,060 | Yonkers Industrial Development Agency, New York, Revenue Bonds, St. John's Riverside Hospital, Series 2001B, 7.125%, 7/01/31 | 5/17 at 100.00 | BB- | $ 1,061,802 | ||
| 29,740 | Total Health Care | 32,528,719 | ||||
| Housing/Multifamily–0.9% | ||||||
| 170 | East Syracuse Housing Authority, New York, FHA-Insured Section 8 Assisted Revenue Refunding Bonds, Bennet Project, Series 2001A, 6.700%, 4/01/21 | 4/17 at 100.00 | AA | 170,631 | ||
| 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+ | 923,725 | ||
| 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 | 2,519,300 | ||
| 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 | 709,695 | ||
| 30 | New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 – AGM Insured | 5/17 at 100.00 | AA | 30,095 | ||
| 1,605 | 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) | 8/17 at 100.00 | Aa1 | 1,613,266 | ||
| 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) | 8/17 at 100.00 | Aa1 | 1,001,160 | ||
| 6,865 | Total Housing/Multifamily | 6,967,872 | ||||
| Industrials–1.9% | ||||||
| 2,145 | Build New York City Resource Corporation, New York, Solid Waste Disposal Revenue Bonds, Pratt Paper NY, Inc. Project, Series 2014, 5.000%, 1/01/35 (Alternative Minimum Tax) | 1/25 at 100.00 | N/R | 2,257,935 | ||
| 12,520 | New York Liberty Development Corporation, New York, Liberty Revenue Bonds, 3 World Trade Center Project, Class 1 Series 2014, 5.000%, 11/15/44 | 11/24 at 100.00 | N/R | 13,125,467 | ||
| 14,665 | Total Industrials | 15,383,402 | ||||
| Long-Term Care–0.8% | ||||||
| 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 | 2/20 at 100.00 | AA+ | 1,105,759 | ||
| 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 | 5/17 at 100.00 | Baa1 | 650,578 | ||
| 1,700 | East Rochester Housing Authority, New York, Senior Living Revenue Bonds, Woodland Village Project, Series 2006, 5.500%, 8/01/33 | 8/18 at 100.00 | N/R | 1,701,071 | ||
| New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Special Needs Facilities Pooled Program, Series 2008A-1: | ||||||
| 630 | 5.800%, 7/01/23 | 5/17 at 101.00 | N/R | 612,751 | ||
| 975 | 6.100%, 7/01/28 | 5/17 at 101.00 | N/R | 931,983 | ||
| 210 | 6.200%, 7/01/33 | 5/17 at 101.00 | N/R | 198,253 | ||
| 1,225 | Suffolk County Economic Development Corporation, New York, Revenue Bonds, Peconic Landing At Southold, Inc. Project, Refunding Series 2010, 6.000%, 12/01/40 | 12/20 at 100.00 | BBB- | 1,327,410 | ||
| 6,460 | Total Long-Term Care | 6,527,805 | ||||
| Tax Obligation/General–4.6% | ||||||
| 3,000 | Nassau County, New York, General Obligation Bonds, General Improvement Series 2016C, 5.000%, 4/01/35 | 4/26 at 100.00 | A+ | 3,375,090 |
62 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/General (continued) | ||||||
| $ 505 | New York City, New York, General Obligation Bonds, Fiscal 2008 Series D-1, 5.125%, 12/01/26 | 12/17 at 100.00 | AA | $521,175 | ||
| New York City, New York, General Obligation Bonds, Fiscal 2012 Series A-1: | ||||||
| 1,900 | 5.000%, 10/01/30 | No Opt. Call | AA | 2,175,196 | ||
| 1,915 | 5.000%, 10/01/31 | No Opt. Call | AA | 2,192,369 | ||
| 3,000 | 5.000%, 10/01/33 | 10/22 at 100.00 | AA | 3,426,060 | ||
| New York City, New York, General Obligation Bonds, Fiscal 2013 Series F-1: | ||||||
| 1,810 | 5.000%, 3/01/32 | 3/23 at 100.00 | AA | 2,045,897 | ||
| 6,100 | 5.000%, 3/01/37 | 3/23 at 100.00 | AA | 6,787,470 | ||
| 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 | 2,294,840 | ||
| 2,500 | New York City, New York, General Obligation Bonds, Fiscal 2015 Series A, 5.000%, 8/01/32 | 8/24 at 100.00 | AA | 2,855,550 | ||
| 1,650 | New York City, New York, General Obligation Bonds, Fiscal 2017 Series B-1, 5.000%, 12/01/41 | 12/26 at 100.00 | AA | 1,885,273 | ||
| 6,670 | New York City, New York, General Obligation Bonds, Series 2011D-I, 5.000%, 10/01/34 | No Opt. Call | AA | 7,510,020 | ||
| 1,680 | Poughkeepsie City, New York, Bond Anticipation Notes, Series 2016A, 3.750%, 5/07/17 | No Opt. Call | N/R | 1,682,520 | ||
| 32,730 | Total Tax Obligation/General | 36,751,460 | ||||
| Tax Obligation/Limited–23.0% | ||||||
| 255 | Albany Parking Authority, New York, Revenue Refunding Bonds, Series 1992A, 0.000%, 11/01/17 | No Opt. Call | N/R | 252,348 | ||
| 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 | 2,083,020 | ||
| 2,500 | 5.000%, 6/01/38 | 6/18 at 100.00 | Aa1 | 2,603,775 | ||
| 20 | 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 | 21,812 | ||
| 485 | Dormitory Authority of the State of New York, Revenue Bonds, State University Educational Facilities, Series 1993C, 5.250%, 5/15/19 | No Opt. Call | AA | 509,817 | ||
| 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 | 6,658,941 | ||
| 1,000 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2012D, 5.000%, 2/15/37 | No Opt. Call | AAA | 1,124,970 | ||
| 3,000 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2014C, Group C, 5.000%, 3/15/44 | 3/24 at 100.00 | AAA | 3,352,290 | ||
| 6,000 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2015A, 5.000%, 3/15/31 | 3/25 at 100.00 | AAA | 6,954,480 | ||
| 2,835 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2015B Group B, 5.000%, 2/15/32 | 2/25 at 100.00 | AAA | 3,264,332 | ||
| 1,000 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2015B Group C, 5.000%, 2/15/38 | 2/25 at 100.00 | AAA | 1,128,650 | ||
| 7,120 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose Series 2016A Group A, 5.000%, 2/15/36 | 8/26 at 100.00 | AAA | 8,184,369 | ||
| 3,025 | 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 | 3,243,617 |
NUVEEN 63
Nuveen New York Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| Dormitory Authority of the State of New York, State Sales Tax Revenue Bonds, Series 2014A: | ||||||
| $ 5,000 | 5.000%, 3/15/33 | 3/24 at 100.00 | AAA | $5,716,200 | ||
| 2,500 | 5.000%, 3/15/37 | 3/24 at 100.00 | AAA | 2,827,325 | ||
| 2,825 | Dormitory Authority of the State of New York, State Sales Tax Revenue Bonds, Series 2015B. Group A,B&C, 5.000%, 3/15/35 | 9/25 at 100.00 | AAA | 3,266,604 | ||
| 4,000 | Dormitory Authority of the State of New York, State Sales Tax Revenue Bonds, Series 2016A, Groups A,B&C, 5.000%, 3/15/29 | No Opt. Call | AAA | 4,797,960 | ||
| Government of Guam, Business Privilege Tax Bonds, Refunding Series 2015D: | ||||||
| 2,000 | 5.000%, 11/15/28 | 11/25 at 100.00 | A | 2,153,440 | ||
| 2,000 | 5.000%, 11/15/32 | 11/25 at 100.00 | A | 2,109,660 | ||
| 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 | 13,318,800 | ||
| 11,675 | Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 5.000%, 2/15/47 – FGIC Insured | 5/17 at 100.00 | A | 11,765,364 | ||
| 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 | 4,594,280 | ||
| 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 | 5/17 at 100.00 | AA | 7,829,094 | ||
| 4,520 | New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Fiscal Series 2009-S1, 5.500%, 7/15/31 | 7/18 at 100.00 | AA | 4,788,443 | ||
| 8,500 | New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Fiscal Series 2015S-2, 5.000%, 7/15/40 | 7/25 at 100.00 | AA | 9,603,300 | ||
| 3,950 | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Subordinate Fiscal 2013 Series I, 5.000%, 5/01/38 | 5/23 at 100.00 | AAA | 4,470,610 | ||
| 2,500 | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Subordinate Fiscal 2014 Series B-1, 5.000%, 11/01/36 | 5/24 at 100.00 | AAA | 2,825,675 | ||
| 5,715 | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Subordinate Fiscal 2014 Series D-1, 5.000%, 2/01/35 | 2/24 at 100.00 | AAA | 6,462,979 | ||
| 10,000 | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Subordinate Fiscal 2015 Series E-1, 5.000%, 2/01/41 | 2/25 at 100.00 | AAA | 11,273,300 | ||
| 5,000 | New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Subordinate Fiscal 2017 Series B-1, 5.000%, 8/01/36 | 8/26 at 100.00 | AAA | 5,753,550 | ||
| 9,000 | New York City Transitional Finance Authority, New York, Future Tax Secured Revenue Bonds, Subordinate Lien Series 2011C, 5.000%, 11/01/39 | 11/20 at 100.00 | AAA | 10,014,840 | ||
| 5,500 | New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2005B, 5.500%, 4/01/20 – AMBAC Insured (UB) (4) | No Opt. Call | AA+ | 6,227,265 | ||
| 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+ | 5,571,350 | ||
| 2,000 | Suffolk County Judicial Facilities Agency, New York, Lease Revenue Bonds, H. Lee Dennison Building, Series 2013, 5.000%, 11/01/33 | 11/23 at 100.00 | A- | 2,162,260 |
64 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Tax Obligation/Limited (continued) | ||||||
| Syracuse Industrial Development Authority, New York, PILOT Revenue Bonds, Carousel Center Project, Refunding Series 2016A: | ||||||
| $ 3,000 | 5.000%, 1/01/30 (Alternative Minimum Tax) | 1/26 at 100.00 | A- | $3,344,370 | ||
| 2,900 | 5.000%, 1/01/31 (Alternative Minimum Tax) | 1/26 at 100.00 | A- | 3,214,244 | ||
| 1,250 | 5.000%, 1/01/34 (Alternative Minimum Tax) | 1/26 at 100.00 | A- | 1,363,650 | ||
| 1,000 | 5.000%, 1/01/35 (Alternative Minimum Tax) | 1/26 at 100.00 | A- | 1,087,000 | ||
| 5,430 | 5.000%, 1/01/36 (Alternative Minimum Tax) | 1/26 at 100.00 | A- | 5,881,233 | ||
| 164,260 | Total Tax Obligation/Limited | 181,805,217 | ||||
| Transportation–20.3% | ||||||
| 2,125 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding Series 2012H, 5.000%, 11/15/31 | No Opt. Call | AA- | 2,412,215 | ||
| 4,845 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2010D, 5.250%, 11/15/40 | 11/20 at 100.00 | AA- | 5,405,809 | ||
| 3,520 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013A, 5.000%, 11/15/31 | 5/23 at 100.00 | AA- | 3,977,987 | ||
| 1,000 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013C, 5.000%, 11/15/32 | 5/23 at 100.00 | AA- | 1,124,030 | ||
| 2,500 | Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2013E, 5.000%, 11/15/32 | 11/23 at 100.00 | AA- | 2,832,775 | ||
| Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2014B: | ||||||
| 2,000 | 5.250%, 11/15/38 | 5/24 at 100.00 | AA- | 2,288,460 | ||
| 1,000 | 5.250%, 11/15/44 | 5/24 at 100.00 | AA- | 1,140,750 | ||
| Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Series 2015C-1: | ||||||
| 5,000 | 5.250%, 11/15/29 | 11/25 at 100.00 | AA- | 5,932,200 | ||
| 8,610 | 5.250%, 11/15/31 | 11/25 at 100.00 | AA- | 10,216,023 | ||
| 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 (5) | 10/17 at 100.00 | N/R | 901,404 | ||
| 2,000 | 5.875%, 10/01/46 (5) | 10/17 at 102.00 | N/R | 643,860 | ||
| 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 | 10,102,680 | ||
| 3,370 | New York Liberty Development Corporation, New York, Liberty Revenue Bonds, 4 World Trade Center Project, Series 2011, 5.000%, 11/15/44 | 11/21 at 100.00 | A+ | 3,723,378 | ||
| New York State Thruway Authority, General Revenue Junior Indebtedness Obligations, Series 2016A: | ||||||
| 2,225 | 5.000%, 1/01/36 | 1/26 at 100.00 | A- | 2,494,804 | ||
| 8,515 | 5.000%, 1/01/46 | 1/26 at 100.00 | A- | 9,471,831 | ||
| New York Transportation Development Corporation, New York, Special Facility Revenue Bonds, American Airlines, Inc. John F Kennedy International Airport Project, Refunding Series 2016: | ||||||
| 3,285 | 5.000%, 8/01/26 (Alternative Minimum Tax) | 8/21 at 100.00 | BB | 3,460,222 | ||
| 12,260 | 5.000%, 8/01/31 (Alternative Minimum Tax) | 8/21 at 100.00 | BB | 12,787,670 |
NUVEEN 65
Nuveen New York Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Transportation (continued) | ||||||
| $ 13,685 | New York Transportation Development Corporation, Special Facilities Bonds, LaGuardia Airport Terminal B Redevelopment Project, Series 2016A, 5.000%, 7/01/46 (Alternative Minimum Tax) | 7/24 at 100.00 | BBB | $14,408,663 | ||
| 3,330 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Eighty-Forth Series 2014, 5.000%, 9/01/39 | 9/24 at 100.00 | AA- | 3,777,152 | ||
| Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Eighty-Ninth Series 2015: | ||||||
| 2,520 | 5.000%, 5/01/40 | 5/25 at 100.00 | AA- | 2,845,836 | ||
| 480 | 5.000%, 5/01/45 | 5/25 at 100.00 | AA- | 539,491 | ||
| 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- | 5,225,800 | ||
| 3,730 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Ninety-Eighth Series 2016, 5.000%, 11/15/46 | 11/26 at 100.00 | AA- | 4,253,133 | ||
| 10,000 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Ninety-Fourth Series 2015, 5.250%, 10/15/55 | 10/25 at 100.00 | AA- | 11,428,700 | ||
| 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 | Baa1 | 4,045,744 | ||
| 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) | 6/17 at 100.00 | AA- | 4,659,048 | ||
| 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- | 4,391,875 | ||
| 19,500 | Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, MTA Bridges & Tunnels, Series 2017A, 5.000%, 11/15/37 | No Opt. Call | AA- | 22,499,880 | ||
| 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 | AA- | 1,809,085 | ||
| 1,500 | Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Refunding Bonds, Tender Option Bond Trust 2016-XG0004, 8.725%, 11/15/33 (IF) (4) | 11/18 at 100.00 | AA- | 1,695,030 | ||
| 147,935 | Total Transportation | 160,495,535 | ||||
| U.S. Guaranteed–10.0% (6) | ||||||
| 1,000 | Albany Capital Resource Corporation, New York, St. Peter's Hospital Project, Series 2011, 6.125%, 11/15/30 (Pre-refunded 11/15/20) | 11/20 at 100.00 | N/R (6) | 1,175,460 | ||
| 8,065 | Albany Industrial Development Agency, New York, Revenue Bonds, Saint Peter's Hospital, Series 2008A, 5.250%, 11/15/32 (Pre-refunded 11/15/17) | 11/17 at 100.00 | N/R (6) | 8,326,064 | ||
| 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 (Pre-refunded 1/15/20) | 1/20 at 100.00 | AA+ (6) | 4,448,810 | ||
| 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 (Pre-refunded 5/01/20) | 5/20 at 100.00 | AA (6) | 1,789,888 | ||
| 1,880 | Dormitory Authority of the State of New York, General Revenue Bonds, Saint Johns University, Series 2007A, 5.250%, 7/01/32 (Pre-refunded 7/01/17) – NPFG Insured | 7/17 at 100.00 | AA- (6) | 1,909,516 |
66 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (6) (continued) | ||||||
| Dormitory Authority of the State of New York, Insured Revenue Bonds, NYSARC Inc. Projects, Series 2007B: | ||||||
| $ 290 | 6.000%, 7/01/26 (Pre-refunded 7/01/19) – AMBAC Insured | 7/19 at 100.00 | Aa2 (6) | $323,330 | ||
| 310 | 6.000%, 7/01/27 (Pre-refunded 7/01/19) – AMBAC Insured | 7/19 at 100.00 | Aa2 (6) | 345,628 | ||
| 330 | 6.000%, 7/01/28 (Pre-refunded 7/01/19) – AMBAC Insured | 7/19 at 100.00 | Aa2 (6) | 367,927 | ||
| 350 | 6.000%, 7/01/29 (Pre-refunded 7/01/19) – AMBAC Insured | 7/19 at 100.00 | Aa2 (6) | 390,226 | ||
| 1,460 | 6.000%, 7/01/36 (Pre-refunded 7/01/19) – AMBAC Insured | 7/19 at 100.00 | Aa2 (6) | 1,627,798 | ||
| 1,000 | Dormitory Authority of the State of New York, Insured Revenue Bonds, NYSARC Inc. Projects, Series 2009A, 6.000%, 7/01/38 (Pre-refunded 7/01/19) | 7/19 at 100.00 | Aa2 (6) | 1,114,930 | ||
| Dormitory Authority of the State of New York, Orange Regional Medical Center Obligated Group Revenue Bonds, Series 2008: | ||||||
| 6,895 | 6.125%, 12/01/29 (Pre-refunded 12/01/18) | 12/18 at 100.00 | Baa3 (6) | 7,515,343 | ||
| 4,500 | 6.250%, 12/01/37 (Pre-refunded 12/01/18) | 12/18 at 100.00 | Baa3 (6) | 4,914,675 | ||
| 350 | Dormitory Authority of the State of New York, Revenue Bonds, Barnard College, Series 2007A, 5.000%, 7/01/37 (Pre-refunded 7/01/17) – NPFG Insured | 7/17 at 100.00 | AA- (6) | 355,198 | ||
| 350 | Dormitory Authority of the State of New York, Revenue Bonds, New School University, Series 2010, 5.250%, 7/01/30 (Pre-refunded 7/01/20) | 7/20 at 100.00 | A- (6) | 396,288 | ||
| 585 | Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series 2007, 5.000%, 7/01/32 (Pre-refunded 7/01/17) – AMBAC Insured | 7/17 at 100.00 | AA- (6) | 593,687 | ||
| 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 (Pre-refunded 5/01/19) | 5/19 at 100.00 | A- (6) | 1,096,800 | ||
| 5,600 | Dormitory Authority of the State of New York, Revenue Bonds, NYU Hospitals Center, Series 2007B, 5.625%, 7/01/37 (Pre-refunded 7/01/17) | 7/17 at 100.00 | N/R (6) | 5,696,264 | ||
| 1,480 | Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing Program, Series 2009C, 5.125%, 10/01/36 (Pre-refunded 10/01/19) – AGC Insured | 10/19 at 100.00 | AA (6) | 1,633,979 | ||
| 4,025 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Education Series 2008A, 5.000%, 3/15/28 (Pre-refunded 3/15/18) | 3/18 at 100.00 | AAA | 4,203,267 | ||
| 5 | Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, General Purpose, Series 2009A, 5.000%, 2/15/34 (Pre-refunded 2/15/19) | 2/19 at 100.00 | N/R (6) | 5,389 | ||
| 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 (Pre-refunded 5/01/18) – AGM Insured | 5/18 at 100.00 | AA (6) | 1,545,103 | ||
| 1,250 | Long Island Power Authority, New York, Electric System Revenue Bonds, Refunding Series 2009A, 6.250%, 4/01/33 (Pre-refunded 4/01/19) | 4/19 at 100.00 | A- (6) | 1,385,637 | ||
| Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2008A: | ||||||
| 5,000 | 5.500%, 5/01/33 (Pre-refunded 5/01/19) – BHAC Insured | 5/19 at 100.00 | AA+ (6) | 5,481,700 | ||
| 10,250 | 6.000%, 5/01/33 (Pre-refunded 5/01/19) | 5/19 at 100.00 | A- (6) | 11,347,467 | ||
| 735 | New York City, New York, General Obligation Bonds, Fiscal 2008 Series D-1, 5.125%, 12/01/26 (Pre-refunded 12/01/17) | 12/17 at 100.00 | N/R (6) | 759,586 | ||
| New York State Environmental Facilities Corporation, State Personal Income Tax Revenue Bonds, Series 2008A: | ||||||
| 5,050 | 5.000%, 12/15/26 (Pre-refunded 12/15/17) (UB) | 12/17 at 100.00 | AAA | 5,223,468 | ||
| 60 | 5.000%, 12/15/27 (Pre-refunded 12/15/17) (UB) | 12/17 at 100.00 | AAA | 62,061 | ||
| 1,535 | Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Forty Eighth Series 2008, Tender Option Bond Trust 2015-XF2178, 16.229%, 8/15/32 (Pre-refunded 8/15/17) – AGM Insured (IF) (4) | 8/17 at 100.00 | AA (6) | 1,659,826 |
NUVEEN 67
Nuveen New York Municipal Bond Fund (continued)
| Portfolio of Investments | February 28, 2017 |
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| U.S. Guaranteed (6) (continued) | ||||||
| Saratoga County Industrial Development Agency, New York, Civic Facility Revenue Bonds, Saratoga Hospital Project, Series 2007B: | ||||||
| $ 1,000 | 5.125%, 12/01/27 (Pre-refunded 12/01/17) | 12/17 at 100.00 | A- (6) | $1,033,450 | ||
| 500 | 5.250%, 12/01/32 (Pre-refunded 12/01/17) | 12/17 at 100.00 | A- (6) | 517,195 | ||
| 615 | Seneca County Industrial Development Authority, New York, Revenue Bonds, New York Chiropractic College, Series 2007, 5.000%, 10/01/27 (Pre-refunded 10/01/17) | 10/17 at 100.00 | N/R (6) | 630,695 | ||
| 290 | Suffolk County Economic Development Corporation, New York, Revenue Bonds, Catholic Health Services of Long Island Obligated Group Project, Refunding Series 2011, 5.000%, 7/01/28 (Pre-refunded 7/01/21) | 7/21 at 100.00 | N/R (6) | 334,486 | ||
| 1,000 | Yonkers Industrial Development Agency, New York, Civic Facility Revenue Bonds, Sarah Lawrence College Project, Series 2001A Remarketed, 6.000%, 6/01/41 (Pre-refunded 6/01/19) | 6/19 at 100.00 | BBB (6) | 1,110,280 | ||
| 73,695 | Total U.S. Guaranteed | 79,321,421 | ||||
| Utilities–8.4% | ||||||
| 7,075 | 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 | 7,402,714 | ||
| 1,200 | Guam Power Authority, Revenue Bonds, Series 2010A, 5.000%, 10/01/37 – AGM Insured | 10/20 at 100.00 | AA | 1,314,528 | ||
| 420 | Guam Power Authority, Revenue Bonds, Series 2012A, 5.000%, 10/01/34 | 10/22 at 100.00 | BBB | 437,850 | ||
| 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 | 5,740,080 | ||
| 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 | 2,222,912 | ||
| 2,000 | 0.000%, 6/01/24 – AGM Insured | No Opt. Call | AA | 1,669,480 | ||
| 2,000 | 0.000%, 6/01/25 – AGM Insured | No Opt. Call | AA | 1,596,160 | ||
| 2,980 | Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2014A, 5.000%, 9/01/44 | 9/24 at 100.00 | A- | 3,299,843 | ||
| 10,000 | Long Island Power Authority, New York, Electric System Revenue Bonds, Series 2011A, 5.000%, 5/01/38 | 5/21 at 100.00 | A- | 10,681,700 | ||
| 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 (Alternative Minimum Tax) | No Opt. Call | BB+ | 11,863,488 | ||
| 2,780 | Suffolk County Industrial Development Agency, New York, Revenue Bonds, Nissequogue Cogeneration Partners Facility, Series 1998, 5.500%, 1/01/23 (Alternative Minimum Tax) | 7/17 at 100.00 | N/R | 2,774,301 | ||
| 10,000 | Utility Debt Securitization Authority, New York, Restructuring Bonds, Refunding Series 2015, 5.000%, 12/15/32 | 12/25 at 100.00 | AAA | 11,755,700 | ||
| 5,095 | Utility Debt Securitization Authority, New York, Restructuring Bonds, Series 2013TE, 5.000%, 12/15/41 | 12/23 at 100.00 | AAA | 5,835,100 | ||
| 63,685 | Total Utilities | 66,593,856 | ||||
| Water and Sewer–3.4% | ||||||
| 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+ | 11,373,000 | ||
| 4,465 | New York City Municipal Water Finance Authority, New York, Water and Sewer System Second General Resolution Revenue Bonds, Fiscal 2017 Series CC-1, 5.000%, 6/15/46 | 6/26 at 100.00 | AA+ | 5,045,361 |
68 NUVEEN
| Principal Amount (000) | Description (1) | Optional Call Provisions (2) | Ratings (3) | Value | ||
| Water and Sewer (continued) | ||||||
| $ 500 | New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds, New York City Municipal Water Finance Authority Projects, Second Resolution Subordinated Series 2014A, 5.000%, 6/15/30 | 6/24 at 100.00 | AAA | $589,130 | ||
| 6,675 | New York State Environmental Facilities Corporation, State Clean Water and Drinking Water Revolving Funds Revenue Bonds, New York City Municipal Water Finance Authority Projects, Second Resolution Subordinated SRF Series, 5.000%, 6/15/34 | 6/25 at 100.00 | AAA | 7,755,282 | ||
| Water Authority of Western Nassau County, New York, Water System Revenue Bonds, Series 2015A: | ||||||
| 675 | 5.000%, 4/01/40 | 4/25 at 100.00 | AA- | 748,298 | ||
| 1,050 | 5.000%, 4/01/45 | 4/25 at 100.00 | AA- | 1,160,901 | ||
| 23,365 | Total Water and Sewer | 26,671,972 | ||||
| $ 837,315 | Total Long-Term Investments (cost $757,497,259) | 790,429,502 |
| Floating Rate Obligations–(1.0)% | (7,955,000) | |||||
| Other Assets Less Liabilities–1.2% | 9,396,523 | |||||
| Net Assets–100% | $791,871,025 |
| (1) | All percentages shown in the Portfolio of Investments are based on net assets. | |
| (2) | Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions are not covered by the report of independent registered public accounting firm. | |
| (3) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. 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. Ratings are not covered by the report of independent registered public accounting firm. | |
| (4) | Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. | |
| (5) | As of, 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 ceased accruing additional income on the Fund’s records. | |
| (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. | |
| (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 69
Statement of
Assets and Liabilities
Assets and Liabilities
February 28, 2017
| Connecticut | Massachusetts | New Jersey | New York | |
| Assets | ||||
| Long-term investments, at value (cost $251,923,872, $292,960,793, $308,708,645 and $757,497,259, respectively) | $261,100,684 | $305,754,044 | $317,702,521 | $790,429,502 |
| Cash | — | 6,914,092 | 5,137,201 | 1,371,710 |
| Receivable for: | ||||
| Interest | 2,714,801 | 3,348,987 | 3,288,706 | 8,895,340 |
| Investments sold | — | 1,135,604 | 600,272 | — |
| Shares sold | 305,821 | 1,071,039 | 654,952 | 1,396,962 |
| Other assets | 40,672 | 2,261 | 11,700 | 107,898 |
| Total assets | 264,161,978 | 318,226,027 | 327,395,352 | 802,201,412 |
| Liabilities | ||||
| Cash overdraft | 239,188 | — | — | — |
| Floating rate obligations | — | — | — | 7,955,000 |
| Payable for: | ||||
| Dividends | 170,954 | 107,548 | 167,910 | 397,917 |
| Investments purchased | — | 559,580 | 4,295,519 | — |
| Shares redeemed | 323,994 | 539,343 | 609,941 | 1,263,777 |
| Accrued expenses: | ||||
| Management fees | 101,809 | 120,177 | 122,752 | 295,075 |
| Trustees fees | 43,136 | 4,503 | 14,426 | 115,093 |
| 12b-1 distribution and service fees | 48,546 | 35,234 | 56,793 | 109,130 |
| Other | 77,681 | 101,511 | 111,689 | 194,395 |
| Total liabilities | 1,005,308 | 1,467,896 | 5,379,030 | 10,330,387 |
| Net assets | $263,156,670 | $316,758,131 | $322,016,322 | $791,871,025 |
| Class A Shares | ||||
| Net assets | $154,143,066 | $117,804,811 | $154,594,645 | $320,116,005 |
| Shares outstanding | 14,667,301 | 11,772,061 | 13,821,236 | 29,506,872 |
| Net asset value ("NAV") per share | $ 10.51 | $ 10.01 | $ 11.19 | $ 10.85 |
| Offering price per share (NAV per share plus maximum sales charge of 4.20% of offering price) | $ 10.97 | $ 10.45 | $ 11.68 | $ 11.33 |
| Class C Shares | ||||
| Net assets | $ 5,781,784 | $ 7,681,681 | $ 16,453,259 | $ 32,295,780 |
| Shares outstanding | 551,251 | 774,312 | 1,477,558 | 2,981,414 |
| NAV and offering price per share | $ 10.49 | $ 9.92 | $ 11.14 | $ 10.83 |
| Class C2 Shares | ||||
| Net assets | $ 35,338,219 | $ 20,013,374 | $ 35,993,477 | $ 62,247,108 |
| Shares outstanding | 3,365,714 | 2,015,192 | 3,231,679 | 5,741,179 |
| NAV and offering price per share | $ 10.50 | $ 9.93 | $ 11.14 | $ 10.84 |
| Class I Shares | ||||
| Net assets | $ 67,893,601 | $171,258,265 | $114,974,941 | $377,212,132 |
| Shares outstanding | 6,440,016 | 17,128,323 | 10,242,932 | 34,725,228 |
| NAV and offering price per share | $ 10.54 | $ 10.00 | $ 11.22 | $ 10.86 |
| Net assets consist of: | ||||
| Capital paid-in | $258,288,296 | $313,178,356 | $310,769,377 | $772,973,847 |
| Undistributed (Over-distribution of) net investment income | 617,261 | 92,087 | 997,079 | 1,127,715 |
| Accumulated net realized gain (loss) | (4,925,699) | (9,305,563) | 1,255,990 | (15,162,780) |
| Net unrealized appreciation (depreciation) | 9,176,812 | 12,793,251 | 8,993,876 | 32,932,243 |
| Net assets | $263,156,670 | $316,758,131 | $322,016,322 | $791,871,025 |
| Authorized shares–per class | Unlimited | Unlimited | Unlimited | Unlimited |
| Par value per share | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
See accompanying notes to financial statements.
70 NUVEEN
Statement of
Operations
Operations
Year Ended February 28, 2017
| Connecticut | Massachusetts | New Jersey | New York | |
| Investment Income | $11,149,215 | $11,016,027 | $ 12,821,585 | $ 32,133,406 |
| Expenses | �� | |||
| Management fees | 1,429,689 | 1,486,449 | 1,627,802 | 3,799,325 |
| 12b-1 service fees - Class A Shares | 329,400 | 194,279 | 310,596 | 614,877 |
| 12b-1 distibution and service fees - Class C Shares | 60,156 | 77,180 | 147,208 | 284,926 |
| 12b-1 distibution and service fees - Class C2 Shares | 285,261 | 163,213 | 298,116 | 501,585 |
| Shareholder servicing agent fees | 94,215 | 131,634 | 156,820 | 314,007 |
| Interest expense | — | — | — | 69,957 |
| Custodian fees | 55,637 | 58,742 | 66,064 | 102,597 |
| Trustees fees | 8,059 | 8,256 | 9,168 | 22,128 |
| Professional fees | 34,425 | 35,063 | 36,313 | 59,221 |
| Shareholder reporting expenses | 23,635 | 31,439 | 30,258 | 62,910 |
| Federal and state registration fees | 6,349 | 15,439 | 7,267 | 15,600 |
| Other | 15,586 | 14,579 | 19,842 | 32,206 |
| Total expenses | 2,342,412 | 2,216,273 | 2,709,454 | 5,879,339 |
| Net investment income (loss) | 8,806,803 | 8,799,754 | 10,112,131 | 26,254,067 |
| Realized and Unrealized Gain (Loss) | ||||
| Net realized gain (loss) from investments | (295,191) | (1,422,446) | 1,468,072 | (3,314,285) |
| Change in net unrealized appreciation (depreciation) of investments | (9,147,917) | (6,333,373) | (11,261,584) | (19,355,211) |
| Net realized and unrealized gain (loss) | (9,443,108) | (7,755,819) | (9,793,512) | (22,669,496) |
| Net increase (decrease) in net assets from operations | $ (636,305) | $ 1,043,935 | $ 318,619 | $ 3,584,571 |
See accompanying notes to financial statements.
NUVEEN 71
Statement of
Changes in Net Assets
Changes in Net Assets
| Connecticut | Massachusetts | ||||
| Year Ended 2/28/17 | Year Ended 2/29/16 | Year Ended 2/28/17 | Year Ended 2/29/16 | ||
| Operations | |||||
| Net investment income (loss) | $ 8,806,803 | $ 9,387,300 | $ 8,799,754 | $ 8,706,110 | |
| Net realized gain (loss) from investments | (295,191) | 572,501 | (1,422,446) | (696,370) | |
| Change in net unrealized appreciation (depreciation) of investments | (9,147,917) | (424,125) | (6,333,373) | 1,599,247 | |
| Net increase (decrease) in net assets from operations | (636,305) | 9,535,676 | 1,043,935 | 9,608,987 | |
| Distributions to Shareholders | |||||
| From net investment income: | |||||
| Class A Shares | (5,291,761) | (5,711,855) | (2,930,946) | (2,887,286) | |
| Class C Shares | (146,096) | (85,490) | (170,257) | (95,689) | |
| Class C2 Shares | (1,012,961) | (1,145,645) | (534,859) | (677,247) | |
| Class I Shares | (2,581,338) | (2,487,618) | (5,402,001) | (5,283,569) | |
| From accumulated net realized gains: | |||||
| Class A Shares | — | — | — | — | |
| Class C Shares | — | — | — | — | |
| Class C2 Shares | — | — | — | — | |
| Class I Shares | — | — | — | — | |
| Decrease in net assets from distributions to shareholders | (9,032,156) | (9,430,608) | (9,038,063) | (8,943,791) | |
| Fund Share Transactions | |||||
| Proceeds from sale of shares | 34,791,224 | 32,103,130 | 130,740,463 | 42,244,619 | |
| Proceeds from shares issued to shareholders due to reinvestment of distributions | 6,736,461 | 6,901,872 | 7,617,057 | 7,363,215 | |
| 41,527,685 | 39,005,002 | 138,357,520 | 49,607,834 | ||
| Cost of shares redeemed | (52,239,149) | (42,534,577) | (80,076,969) | (39,109,377) | |
| Net increase (decrease) in net assets from Fund share transactions | (10,711,464) | (3,529,575) | 58,280,551 | 10,498,457 | |
| Net increase (decrease) in net assets | (20,379,925) | (3,424,507) | 50,286,423 | 11,163,653 | |
| Net assets at the beginning of period | 283,536,595 | 286,961,102 | 266,471,708 | 255,308,055 | |
| Net assets at the end of period | $263,156,670 | $283,536,595 | $316,758,131 | $266,471,708 | |
| Undistributed (Over-distribution of) net investment income at the end of period | $ 617,261 | $ 871,960 | $ 92,087 | $ 334,142 | |
See accompanying notes to financial statements.
72 NUVEEN
| New Jersey | New York | ||||
| Year Ended 2/28/17 | Year Ended 2/29/16 | Year Ended 2/28/17 | Year Ended 2/29/16 | ||
| Operations | |||||
| Net investment income (loss) | $ 10,112,131 | $ 9,914,203 | $ 26,254,067 | $ 25,439,145 | |
| Net realized gain (loss) from investments | 1,468,072 | 499,481 | (3,314,285) | 129,743 | |
| Change in net unrealized appreciation (depreciation) of investments | (11,261,584) | 1,118,562 | (19,355,211) | 2,941,453 | |
| Net increase (decrease) in net assets from operations | 318,619 | 11,532,246 | 3,584,571 | 28,510,341 | |
| Distributions to Shareholders | |||||
| From net investment income: | |||||
| Class A Shares | (5,145,088) | (4,799,872) | (10,634,400) | (10,189,925) | |
| Class C Shares | (369,560) | (213,655) | (754,004) | (368,200) | |
| Class C2 Shares | (1,105,156) | (1,317,535) | (1,957,132) | (2,227,504) | |
| Class I Shares | (4,043,055) | (3,927,357) | (13,784,756) | (13,659,182) | |
| From accumulated net realized gains: | |||||
| Class A Shares | (346,645) | (43,566) | — | — | |
| Class C Shares | (36,954) | (2,532) | — | — | |
| Class C2 Shares | (84,569) | (13,614) | — | — | |
| Class I Shares | (251,043) | (33,660) | — | — | |
| Decrease in net assets from distributions to shareholders | (11,382,070) | (10,351,791) | (27,130,292) | (26,444,811) | |
| Fund Share Transactions | |||||
| Proceeds from sale of shares | 98,388,776 | 57,321,858 | 177,554,161 | 101,860,345 | |
| Proceeds from shares issued to shareholders due to reinvestment of distributions | 9,162,951 | 8,124,140 | 22,273,750 | 21,622,321 | |
| 107,551,727 | 65,445,998 | 199,827,911 | 123,482,666 | ||
| Cost of shares redeemed | (77,850,443) | (52,070,915) | (119,922,021) | (89,313,356) | |
| Net increase (decrease) in net assets from Fund share transactions | 29,701,284 | 13,375,083 | 79,905,890 | 34,169,310 | |
| Net increase (decrease) in net assets | 18,637,833 | 14,555,538 | 56,360,169 | 36,234,840 | |
| Net assets at the beginning of period | 303,378,489 | 288,822,951 | 735,510,856 | 699,276,016 | |
| Net assets at the end of period | $322,016,322 | $303,378,489 | $ 791,871,025 | $735,510,856 | |
| Undistributed (Over-distribution of) net investment income at the end of period | $ 997,079 | $ 1,728,875 | $ 1,127,715 | $ 2,101,056 | |
See accompanying notes to financial statements.
NUVEEN 73
Financial
Highlights
Connecticut
Selected data for a share outstanding throughout each period:
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 (07/87) | |||||||||
| 2017 | $10.87 | $0.34 | $(0.35) | $(0.01) | $(0.35) | $ — | $(0.35) | $10.51 | |
| 2016 | 10.86 | 0.36 | 0.01 | 0.37 | (0.36) | — | (0.36) | 10.87 | |
| 2015 | 10.49 | 0.37 | 0.36 | 0.73 | (0.36) | — | (0.36) | 10.86 | |
| 2014 | 11.07 | 0.38 | (0.58) | (0.20) | (0.38) | —** | (0.38) | 10.49 | |
| 2013 | 10.98 | 0.40 | 0.10 | 0.50 | (0.40) | (0.01) | (0.41) | 11.07 | |
| Class C (02/14) | |||||||||
| 2017 | 10.85 | 0.25 | (0.35) | (0.10) | (0.26) | — | (0.26) | 10.49 | |
| 2016 | 10.84 | 0.27 | 0.02 | 0.29 | (0.28) | — | (0.28) | 10.85 | |
| 2015 | 10.48 | 0.28 | 0.36 | 0.64 | (0.28) | — | (0.28) | 10.84 | |
| 2014(e) | 10.41 | 0.01 | 0.07 | 0.08 | (0.01) | — | (0.01) | 10.48 | |
| Class C2 (10/93)(f) | |||||||||
| 2017 | 10.86 | 0.28 | (0.35) | (0.07) | (0.29) | — | (0.29) | 10.50 | |
| 2016 | 10.85 | 0.30 | 0.01 | 0.31 | (0.30) | — | (0.30) | 10.86 | |
| 2015 | 10.48 | 0.31 | 0.36 | 0.67 | (0.30) | — | (0.30) | 10.85 | |
| 2014 | 11.05 | 0.32 | (0.57) | (0.25) | (0.32) | —** | (0.32) | 10.48 | |
| 2013 | 10.97 | 0.34 | 0.09 | 0.43 | (0.34) | (0.01) | (0.35) | 11.05 | |
| Class I (02/97) | |||||||||
| 2017 | 10.90 | 0.36 | (0.35) | 0.01 | (0.37) | — | (0.37) | 10.54 | |
| 2016 | 10.90 | 0.38 | 0.01 | 0.39 | (0.39) | — | (0.39) | 10.90 | |
| 2015 | 10.52 | 0.39 | 0.37 | 0.76 | (0.38) | — | (0.38) | 10.90 | |
| 2014 | 11.11 | 0.40 | (0.58) | (0.18) | (0.41) | —** | (0.41) | 10.52 | |
| 2013 | 11.02 | 0.43 | 0.09 | 0.52 | (0.42) | (0.01) | (0.43) | 11.11 | |
74 NUVEEN
| 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) |
| (0.15)% | $154,143 | 0.79% | 0.79% | 3.14% | 22% |
| 3.50 | 166,511 | 0.79 | 0.79 | 3.34 | 12 |
| 7.06 | 176,461 | 0.79 | 0.79 | 3.45 | 16 |
| (1.71) | 196,238 | 0.82 | 0.81 | 3.63 | 10 |
| 4.56 | 268,189 | 0.80 | 0.79 | 3.65 | 12 |
| (0.93) | 5,782 | 1.59 | 1.59 | 2.33 | 22 |
| 2.70 | 4,646 | 1.59 | 1.59 | 2.53 | 12 |
| 6.13 | 2,295 | 1.59 | 1.59 | 2.61 | 16 |
| 0.81 | 278 | 1.66* | 1.65* | 3.62* | 10 |
| (0.71) | 35,338 | 1.34 | 1.34 | 2.59 | 22 |
| 2.93 | 39,682 | 1.34 | 1.34 | 2.80 | 12 |
| 6.47 | 43,580 | 1.34 | 1.34 | 2.91 | 16 |
| (2.19) | 46,265 | 1.37 | 1.36 | 3.08 | 10 |
| 3.90 | 62,912 | 1.35 | 1.34 | 3.10 | 12 |
| 0.07 | 67,894 | 0.59 | 0.59 | 3.35 | 22 |
| 3.63 | 72,697 | 0.59 | 0.59 | 3.54 | 12 |
| 7.37 | 64,625 | 0.59 | 0.59 | 3.65 | 16 |
| (1.58) | 42,434 | 0.62 | 0.61 | 3.83 | 10 |
| 4.77 | 51,588 | 0.60 | 0.59 | 3.85 | 12 |
| (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) | Formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014. |
| * | Annualized. |
| ** | Rounds to less than $.01 per share. |
See accompanying notes to financial statements.
NUVEEN 75
Financial Highlights (continued)
Massachusetts
Selected data for a share outstanding throughout each period:
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 (09/94) | |||||||||
| 2017 | $10.26 | $0.30 | $(0.24) | $ 0.06 | $(0.31) | $ — | $(0.31) | $10.01 | |
| 2016 | 10.24 | 0.34 | 0.03 | 0.37 | (0.35) | — | (0.35) | 10.26 | |
| 2015 | 9.89 | 0.36 | 0.36 | 0.72 | (0.37) | — | (0.37) | 10.24 | |
| 2014 | 10.44 | 0.36 | (0.54) | (0.18) | (0.37) | — | (0.37) | 9.89 | |
| 2013 | 10.21 | 0.42 | 0.19 | 0.61 | (0.38) | — | (0.38) | 10.44 | |
| Class C (02/14) | |||||||||
| 2017 | 10.17 | 0.21 | (0.23) | (0.02) | (0.23) | — | (0.23) | 9.92 | |
| 2016 | 10.15 | 0.25 | 0.03 | 0.28 | (0.26) | — | (0.26) | 10.17 | |
| 2015 | 9.81 | 0.27 | 0.36 | 0.63 | (0.29) | — | (0.29) | 10.15 | |
| 2014(f) | 9.74 | 0.02 | 0.07 | 0.09 | (0.02) | — | (0.02) | 9.81 | |
| Class C2 (10/94)(g) | |||||||||
| 2017 | 10.18 | 0.24 | (0.24) | — | (0.25) | — | (0.25) | 9.93 | |
| 2016 | 10.15 | 0.28 | 0.04 | 0.32 | (0.29) | — | (0.29) | 10.18 | |
| 2015 | 9.81 | 0.30 | 0.35 | 0.65 | (0.31) | — | (0.31) | 10.15 | |
| 2014 | 10.35 | 0.30 | (0.53) | (0.23) | (0.31) | — | (0.31) | 9.81 | |
| 2013 | 10.13 | 0.36 | 0.18 | 0.54 | (0.32) | — | (0.32) | 10.35 | |
| Class I (12/86) | |||||||||
| 2017 | 10.25 | 0.32 | (0.24) | 0.08 | (0.33) | — | (0.33) | 10.00 | |
| 2016 | 10.22 | 0.36 | 0.04 | 0.40 | (0.37) | — | (0.37) | 10.25 | |
| 2015 | 9.88 | 0.38 | 0.35 | 0.73 | (0.39) | — | (0.39) | 10.22 | |
| 2014 | 10.42 | 0.37 | (0.52) | (0.15) | (0.39) | — | (0.39) | 9.88 | |
| 2013 | 10.19 | 0.44 | 0.18 | 0.62 | (0.39) | — | (0.39) | 10.42 | |
76 NUVEEN
| 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) |
| 0.56% | $117,805 | 0.80% | 0.80% | 2.93% | 15% |
| 3.68 | 86,136 | 0.81 | 0.81 | 3.32 | 12 |
| 7.42 | 84,367 | 0.81 | 0.81 | 3.52 | 11 |
| (1.64) | 101,648 | 0.84 | 0.84 | 3.64 | 29 |
| 6.01 | 103,508 | 0.82 | 0.82 | 4.08 | 11 |
| (0.27) | 7,682 | 1.60 | 1.60 | 2.10 | 15 |
| 2.86 | 5,769 | 1.61 | 1.61 | 2.51 | 12 |
| 6.50 | 2,382 | 1.61 | 1.61 | 2.65 | 11 |
| 0.88 | 26 | 1.62* | 1.62* | 3.48* | 29 |
| (0.03) | 20,013 | 1.35 | 1.35 | 2.37 | 15 |
| 3.20 | 22,641 | 1.36 | 1.36 | 2.78 | 12 |
| 6.74 | 25,254 | 1.36 | 1.36 | 2.97 | 11 |
| (2.15) | 28,457 | 1.38 | 1.38 | 3.06 | 29 |
| 5.34 | 35,247 | 1.37 | 1.37 | 3.53 | 11 |
| 0.73 | 171,258 | 0.60 | 0.60 | 3.12 | 15 |
| 3.97 | 151,925 | 0.61 | 0.61 | 3.52 | 12 |
| 7.52 | 143,304 | 0.62 | 0.62 | 3.72 | 11 |
| (1.36) | 111,270 | 0.63 | 0.63 | 3.81 | 29 |
| 6.20 | 104,360 | 0.62 | 0.62 | 4.29 | 11 |
| (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) | Formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014. |
| * | Annualized. |
See accompanying notes to financial statements.
NUVEEN 77
Financial Highlights (continued)
New Jersey
Selected data for a share outstanding throughout each period:
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 (09/94) | |||||||||
| 2017 | $11.54 | $0.36 | $(0.31) | $ 0.05 | $(0.38) | $(0.02) | $(0.40) | $11.19 | |
| 2016 | 11.50 | 0.39 | 0.05 | 0.44 | (0.40) | —** | (0.40) | 11.54 | |
| 2015 | 11.10 | 0.41 | 0.38 | 0.79 | (0.39) | — | (0.39) | 11.50 | |
| 2014 | 11.63 | 0.41 | (0.55) | (0.14) | (0.39) | — | (0.39) | 11.10 | |
| 2013 | 11.29 | 0.43 | 0.34 | 0.77 | (0.43) | — | (0.43) | 11.63 | |
| Class C (02/14) | |||||||||
| 2017 | 11.49 | 0.27 | (0.31) | (0.04) | (0.29) | (0.02) | (0.31) | 11.14 | |
| 2016 | 11.45 | 0.30 | 0.05 | 0.35 | (0.31) | —** | (0.31) | 11.49 | |
| 2015 | 11.06 | 0.32 | 0.37 | 0.69 | (0.30) | — | (0.30) | 11.45 | |
| 2014(e) | 10.95 | 0.02 | 0.11 | 0.13 | (0.02) | — | (0.02) | 11.06 | |
| Class C2 (09/94)(f) | |||||||||
| 2017 | 11.49 | 0.30 | (0.31) | (0.01) | (0.32) | (0.02) | (0.34) | 11.14 | |
| 2016 | 11.46 | 0.33 | 0.04 | 0.37 | (0.34) | —** | (0.34) | 11.49 | |
| 2015 | 11.07 | 0.35 | 0.37 | 0.72 | (0.33) | — | (0.33) | 11.46 | |
| 2014 | 11.59 | 0.35 | (0.54) | (0.19) | (0.33) | — | (0.33) | 11.07 | |
| 2013 | 11.26 | 0.36 | 0.34 | 0.70 | (0.37) | — | (0.37) | 11.59 | |
| Class I (02/92) | |||||||||
| 2017 | 11.58 | 0.39 | (0.32) | 0.07 | (0.41) | (0.02) | (0.43) | 11.22 | |
| 2016 | 11.54 | 0.41 | 0.06 | 0.47 | (0.43) | —** | (0.43) | 11.58 | |
| 2015 | 11.14 | 0.44 | 0.38 | 0.82 | (0.42) | — | (0.42) | 11.54 | |
| 2014 | 11.67 | 0.44 | (0.55) | (0.11) | (0.42) | — | (0.42) | 11.14 | |
| 2013 | 11.33 | 0.45 | 0.35 | 0.80 | (0.46) | — | (0.46) | 11.67 | |
78 NUVEEN
| 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) |
| 0.46% | $154,595 | 0.80% | 0.80% | 3.14% | 15% |
| 3.99 | 142,413 | 0.81 | 0.81 | 3.42 | 16 |
| 7.22 | 130,664 | 0.81 | 0.81 | 3.60 | 11 |
| (1.08) | 153,126 | 0.83 | 0.83 | 3.75 | 13 |
| 6.93 | 169,891 | 0.81 | 0.81 | 3.71 | 12 |
| (0.35) | 16,453 | 1.60 | 1.60 | 2.35 | 15 |
| 3.18 | 9,912 | 1.60 | 1.60 | 2.61 | 16 |
| 6.31 | 6,690 | 1.61 | 1.61 | 2.81 | 11 |
| 1.15 | 31 | 1.64* | 1.64* | 3.57* | 13 |
| (0.09) | 35,993 | 1.35 | 1.35 | 2.59 | 15 |
| 3.37 | 41,354 | 1.36 | 1.36 | 2.88 | 16 |
| 6.59 | 46,892 | 1.36 | 1.36 | 3.05 | 11 |
| (1.57) | 50,176 | 1.37 | 1.37 | 3.18 | 13 |
| 6.30 | 58,848 | 1.36 | 1.36 | 3.15 | 12 |
| 0.58 | 114,975 | 0.60 | 0.60 | 3.35 | 15 |
| 4.19 | 109,699 | 0.61 | 0.61 | 3.62 | 16 |
| 7.42 | 104,578 | 0.61 | 0.61 | 3.81 | 11 |
| (0.86) | 75,577 | 0.62 | 0.62 | 3.93 | 13 |
| 7.13 | 90,896 | 0.61 | 0.61 | 3.91 | 12 |
| (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) | Formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014. |
| * | Annualized. |
| ** | Rounds to less than $.01 per share. |
See accompanying notes to financial statements.
NUVEEN 79
Financial Highlights (continued)
New York
Selected data for a share outstanding throughout each period:
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 (09/94) | |||||||||
| 2017 | $11.17 | $0.37 | $(0.30) | $ 0.07 | $(0.39) | $ — | $(0.39) | $10.85 | |
| 2016 | 11.14 | 0.39 | 0.05 | 0.44 | (0.41) | — | (0.41) | 11.17 | |
| 2015 | 10.71 | 0.41 | 0.43 | 0.84 | (0.41) | — | (0.41) | 11.14 | |
| 2014 | 11.30 | 0.40 | (0.60) | (0.20) | (0.38) | (0.01) | (0.39) | 10.71 | |
| 2013 | 11.17 | 0.40 | 0.14 | 0.54 | (0.40) | (0.01) | (0.41) | 11.30 | |
| Class C (02/14) | |||||||||
| 2017 | 11.16 | 0.28 | (0.31) | (0.03) | (0.30) | — | (0.30) | 10.83 | |
| 2016 | 11.13 | 0.30 | 0.05 | 0.35 | (0.32) | — | (0.32) | 11.16 | |
| 2015 | 10.70 | 0.31 | 0.45 | 0.76 | (0.33) | — | (0.33) | 11.13 | |
| 2014(f) | 10.61 | 0.01 | 0.10 | 0.11 | (0.02) | — | (0.02) | 10.70 | |
| Class C2 (09/94)(g) | |||||||||
| 2017 | 11.17 | 0.31 | (0.31) | — | (0.33) | — | (0.33) | 10.84 | |
| 2016 | 11.14 | 0.33 | 0.05 | 0.38 | (0.35) | — | (0.35) | 11.17 | |
| 2015 | 10.71 | 0.35 | 0.43 | 0.78 | (0.35) | — | (0.35) | 11.14 | |
| 2014 | 11.30 | 0.34 | (0.60) | (0.26) | (0.32) | (0.01) | (0.33) | 10.71 | |
| 2013 | 11.17 | 0.34 | 0.14 | 0.48 | (0.34) | (0.01) | (0.35) | 11.30 | |
| Class I (12/86) | |||||||||
| 2017 | 11.19 | 0.40 | (0.32) | 0.08 | (0.41) | — | (0.41) | 10.86 | |
| 2016 | 11.16 | 0.42 | 0.04 | 0.46 | (0.43) | — | (0.43) | 11.19 | |
| 2015 | 10.73 | 0.43 | 0.43 | 0.86 | (0.43) | — | (0.43) | 11.16 | |
| 2014 | 11.32 | 0.42 | (0.60) | (0.18) | (0.40) | (0.01) | (0.41) | 10.73 | |
| 2013 | 11.19 | 0.43 | 0.13 | 0.56 | (0.42) | (0.01) | (0.43) | 11.32 | |
80 NUVEEN
| 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) |
| 0.56% | $320,116 | 0.78% | 0.77% | 3.35% | 24% |
| 4.03 | 287,008 | 0.78 | 0.77 | 3.56 | 25 |
| 7.95 | 269,664 | 0.78 | 0.78 | 3.76 | 23 |
| (1.68) | 314,182 | 0.81 | 0.81 | 3.78 | 47 |
| 4.89 | 344,364 | 0.79 | 0.79 | 3.57 | 18 |
| (0.34) | 32,296 | 1.58 | 1.57 | 2.55 | 24 |
| 3.20 | 19,044 | 1.58 | 1.57 | 2.72 | 25 |
| 7.13 | 7,209 | 1.58 | 1.58 | 2.83 | 23 |
| 1.01 | 302 | 1.59* | 1.59* | 3.38* | 47 |
| (0.07) | 62,247 | 1.33 | 1.32 | 2.80 | 24 |
| 3.47 | 69,616 | 1.33 | 1.32 | 3.01 | 25 |
| 7.36 | 74,707 | 1.33 | 1.33 | 3.20 | 23 |
| (2.23) | 79,435 | 1.35 | 1.35 | 3.20 | 47 |
| 4.34 | 98,792 | 1.34 | 1.34 | 3.02 | 18 |
| 0.68 | 377,212 | 0.58 | 0.57 | 3.55 | 24 |
| 4.25 | 359,843 | 0.58 | 0.57 | 3.76 | 25 |
| 8.16 | 347,696 | 0.58 | 0.58 | 3.94 | 23 |
| (1.49) | 278,997 | 0.60 | 0.60 | 3.95 | 47 |
| 5.10 | 330,733 | 0.59 | 0.59 | 3.78 | 18 |
| (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) | Formerly Class C Shares and renamed to Class C2 Shares on February 10, 2014. |
| * | Annualized. |
See accompanying notes to financial statements.
NUVEEN 81
Notes to
Financial Statements
Financial Statements
1. General Information and Significant Accounting Policies
General Information
Trust and Fund Information
The Nuveen Multistate Trust II (the “Trust”) is an open-end investment company registered under the Investment Company Act of 1940, as amended. The Trust is comprised of the Nuveen Connecticut Municipal Bond Fund (“Connecticut”), Nuveen Massachusetts Municipal Bond Fund (“Massachusetts”), Nuveen New Jersey Municipal Bond Fund (“New Jersey”) and Nuveen New York Municipal Bond Fund (“New York”) (each a “Fund” and collectively, the “Funds”), as diversified funds, among others. The Trust was organized as a Massachusetts business trust on July 1, 1996. The Funds were each organized as a series of predecessor trusts or corporations prior to that date.
The end of the reporting period for the Funds is February 28, 2017, and the period covered by these Notes to Financial Statements is the fiscal year ended February 28, 2017 (the "current fiscal period").
Investment Adviser
The Funds' investment adviser is Nuveen Fund Advisors, LLC (the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Funds, oversees the management of the Funds' portfolios, manages the Funds' business affairs and provides certain clerical, bookkeeping and other administrative services, and, if necessary, 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.
The Funds’ most recent prospectus provides further descriptions of each Fund’s investment objective, principal investment strategies and principal risks.
Significant Accounting Policies
Each Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946 "Financial Services-Investment Companies." The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S generally accepted accounting principles (“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 earmarked securities in their portfolios with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments.
As of the end of the reporting period, the Funds’ outstanding when-issued/delayed delivery purchase commitments were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |
| Outstanding when-issued/delayed delivery purchase commitments | $ — | $559,580 | $4,295,519 | $ — |
Investment Income
Interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects paydowns 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. If a refund is received for workout expenditures paid in a prior reporting period, such amounts will be recognized as “Legal fee refund” on the Statement of Operations.
82 NUVEEN
Dividends and Distributions to Shareholders
Dividends from net investment income are declared daily and distributed to 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 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 0.20% annual 12b-1 service fee. Class A Share purchases of $1 million ($250,000 effective November 1, 2016) 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”) of 1% if redeemed within eighteen months of purchase. Class C Shares are sold without an up-front sales charge but incur a 0.75% annual 12b-1 distribution fee and a 0.25% 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 purpose 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 0.55% annual 12b-1 distribution fee and a 0.20% annual 12b-1 service fee. Class C and 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 Fund 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 are recorded to the specific class. Currently, the only expenses that are allocated on a class-specific basis are 12b-1 distribution and service fees.
Realized and unrealized capital gains and losses of the Funds are prorated among the classes based on the relative net assets of each class.
Compensation
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 Funds' Board of Trustees ("the "Board") 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.
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 Derivatives Association, Inc. (“ISDA”) master agreements or other similar arrangements (“netting agreements”). Generally, the right to offset in netting agreements allows each Fund to offset certain securities and derivatives with a specific counterparty as well as 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.
The Funds' investments subject to netting agreements as of the end of the reporting period, if any, are further described in Note 3 - Portfolio Securities and Investments in Derivatives.
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 current fiscal period. Actual results may differ from those estimates.
2. Investment Valuation and Fair Value Measurements
The fair valuation input levels as described below are for fair value measurement purposes.
Fair value is defined as the price that would be received 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
NUVEEN 83
Notes to Financial Statements (continued)
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).
Prices of fixed income securities are provided by an independent pricing service (“pricing service”) approved by the Board. 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. These securities are generally classified as Level 2. 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 observability 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 Board and/or its appointee 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 observability of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the the Board and/or its appointee.
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:
| Connecticut | Level 1 | Level 2 | Level 3 | Total |
| Long-Term Investments*: | ||||
| Municipal Bonds | $ — | $261,100,684 | $ — | $261,100,684 |
| Massachusetts | Level 1 | Level 2 | Level 3 | Total |
| Long-Term Investments*: | ||||
| Municipal Bonds | $ — | $305,754,044 | $ — | $305,754,044 |
| New Jersey | Level 1 | Level 2 | Level 3 | Total |
| Long-Term Investments*: | ||||
| Municipal Bonds | $ — | $317,702,521 | $ — | $317,702,521 |
| New York | Level 1 | Level 2 | Level 3 | Total |
| Long-Term Investments*: | ||||
| Municipal Bonds | $ — | $790,429,502 | $ — | $790,429,502 |
| * | Refer to the Fund's Portfolio of Investments for industry classifications. |
The Board is responsible for the valuation process and has appointed 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, is responsible for making fair value determinations, evaluating the effectiveness of the Funds’ pricing policies and reporting to the Board. 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 ap
84 NUVEEN
proved by the Valuation Committee. When determining the reliability of the pricing service for investments owned by the Funds, the Valuation Committee, among other things, conducts due diligence reviews of the pricing service 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, 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.
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 (referred to as an “Underlying Bond”), typically with a fixed interest rate, into a special purpose tender option bond (“TOB”) trust (referred to as the “TOB Trust”) created by or at the direction of one or more Funds. In turn, the TOB Trust issues (a) floating rate certificates (referred to as “Floaters”), in face amounts equal to some fraction of the Underlying Bond’s par amount or market value, and (b) an inverse floating rate certificate (referred to as an “Inverse Floater”) that represents all remaining or residual interest in the TOB Trust. Floaters typically pay short-term tax-exempt interest rates to third parties who are also provided a right to tender their certificate and receive its par value, which may be paid from the proceeds of a remarketing of the Floaters, by a loan to the TOB Trust from a third party liquidity provider (“Liquidity Provider”), or by the sale of assets from the TOB Trust. The Inverse Floater is issued to a long term investor, such as one or more of the Funds. The income received by the Inverse Floater holder varies inversely with the short-term rate paid to holders of the Floaters, 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 value of an Inverse Floater 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 Floaters, and because the Inverse Floater essentially bears the risk of loss (and possible gain) of the greater face value of the Underlying Bond.
The Inverse Floater held by a Fund gives the Fund the right to (a) cause the holders of the Floaters to tender their certificates at par (or slightly more than par in certain circumstances), and (b) have the trustee of the TOB Trust (the “Trustee”) transfer the Underlying Bond held by the TOB Trust to the Fund, thereby collapsing the TOB Trust.
The Fund may acquire an Inverse Floater in a transaction where it (a) transfers an Underlying Bond that it owns to a TOB Trust created by a third party or (b) transfers an Underlying Bond that it owns, or that it has purchased in a secondary market transaction for the purpose of creating an Inverse Floater, to a TOB Trust created at its direction, and in return receives the Inverse Floater of the TOB Trust (referred to as a “self-deposited Inverse Floater”). A Fund may also purchase an Inverse Floater in a secondary market transaction from a third party creator of the TOB Trust without first owning the Underlying Bond (referred to as an “externally-deposited Inverse Floater”).
An investment in a self-deposited Inverse Floater is accounted for as a “financing” transaction (i.e., a secured borrowing). For a self-deposited Inverse Floater, the Underlying Bond deposited into the TOB Trust is identified in the Fund’s Portfolio of Investments as “(UB) – Underlying bond of an inverse floating rate trust reflected as a financing transaction,” with the Fund recognizing as liabilities, labeled “Floating rate obligations” on the Statement of Assets and Liabilities, (a) the liquidation value of Floaters issued by the TOB Trust, and (b) the amount of any borrowings by the TOB Trust from a Liquidity Provider to enable the TOB Trust to purchase outstanding Floaters in lieu of a remarketing. In addition, the Fund recognizes in “Investment Income” the entire earnings of the Underlying Bond, and recognizes (a) the interest paid to the holders of the Floaters or on the TOB Trust’s borrowings, and (b) other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust, as a component of “Interest expense” on the Statement of Operations.
NUVEEN 85
Notes to Financial Statements (continued)
In contrast, an investment in an externally-deposited Inverse Floater is accounted for as a purchase of the Inverse Floater and is identified in the Fund’s Portfolio of Investments as “(IF) – Inverse floating rate investment.” For an externally-deposited Inverse Floater, a Fund’s Statement of Assets and liabilities recognizes the Inverse Floater and not the Underlying Bond as an asset, and the Fund does not recognize the Floaters, or any related borrowings from a Liquidity Provider, as a liability. Additionally, the Fund reflects in “Investment Income” only the net amount of earnings on the Inverse Floater (net of the interest paid to the holders of the Floaters or the Liquidity Provider as lender, and the expenses of the Trust), and does not show the amount of that interest paid or the expenses of the TOB Trust as described above as interest expense on the Statement of Operations.
Fees paid upon the creation of a TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters are recognized as part of the cost basis of the Inverse Floater and are capitalized over the term of the TOB Trust.
As of the end of the reporting period, the aggregate value of Floaters issued by each Fund’s TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| Floating Rate Obligations Outstanding | 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 | 1,770,000 | 6,105,000 |
| Total | $ — | $1,600,000 | $1,770,000 | $14,060,000 |
During the current fiscal period, the average amount of Floaters (including any borrowings from a Liquidity Provider) outstanding, and the average annual interest rates and fees related to self-deposited Inverse Floaters, were as follows:
| Self-Deposited Inverse Floaters | Connecticut | Massachusetts | New Jersey | New York |
| Average floating rate obligations outstanding | $ — | $ — | $ — | $6,350,205 |
| Average annual interest rate and fees | —% | —% | —% | 1.10% |
TOB Trusts are supported by a liquidity facility provided by a Liquidity Provider pursuant to which the Liquidity Provider agrees, in the event that Floaters are (a) tendered to the Trustee for remarketing and the remarketing does not occur, or (b) subject to mandatory tender pursuant to the terms of the TOB Trust agreement, to either purchase Floaters or to provide the Trustee with an advance from a loan facility to fund the purchase of Floaters by the TOB Trust. In certain circumstances, the Liquidity Provider may otherwise elect to have the Trustee sell the Underlying Bond to retire the Floaters that were tendered and not remarketed prior to providing such a loan. In these circumstances, the Liquidity Provider remains obligated to provide a loan to the extent that the proceeds of the sale of the Underlying Bond are not sufficient to pay the purchase price of the Floaters.
The size of the commitment under the loan facility for a given TOB Trust is at least equal to the balance of that TOB Trust’s outstanding Floaters plus any accrued interest. In consideration of the loan facility, fee schedules are in place and are charged by the Liquidity Provider(s). Any loans made by the Liquidity Provider will be secured by the purchased Floaters held by the TOB Trust. Interest paid on any outstanding loan balances will be effectively borne by the Fund that owns the Inverse Floaters of the TOB Trust that has incurred the borrowing and may be at a rate that is greater than the rate that would have been paid had the Floaters been successfully remarketed.
As described above, any amounts outstanding under a liquidity facility are recognized as a component of “Floating rate obligations” on the Statement of Assets and Liabilities by the Fund holding the corresponding Inverse Floaters issued by the borrowing TOB Trust. As of the end of the reporting period, there were no loans outstanding under any such facility.
Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a “recourse arrangement” or “credit recovery swap”) (TOB Trusts involving such agreements are referred to herein as “Recourse Trusts”), under which a Fund agrees to reimburse the Liquidity Provider for the Trust’s Floaters, in certain circumstances, for the amount (if any) by which the liquidation value of the Underlying Bond held by the TOB Trust may fall short of the sum of the liquidation value of the Floaters issued by the TOB Trust plus any amounts borrowed by the TOB Trust from the Liquidity Provider, plus any shortfalls in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on an Inverse Floater may increase beyond the value of the Inverse Floater as a Fund may potentially be liable to fulfill all amounts owed to holders of the Floaters or the Liquidity Provider. Any such shortfall amount in the aggregate is recognized as “Unrealized depreciation on Recourse Trusts” on the Statement of Assets and Liabilities.
As of the end of the reporting period, each Fund’s maximum exposure to the Floaters issued by Recourse Trusts for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| Floating Rate Obligations - Recourse Trusts | Connecticut | Massachusetts | New Jersey | New York |
| Maximum exposure to Recourse Trusts: self-deposited Inverse Floaters | $ — | $ — | $ — | $ 4,125,000 |
| Maximum exposure to Recourse Trusts: externally-deposited Inverse Floaters | — | 1,600,000 | 1,770,000 | 6,105,000 |
| Total | $ — | $1,600,000 | $1,770,000 | $10,230,000 |
86 NUVEEN
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
In addition to the inverse floating rate securities in which each Fund may invest, which are considered portfolio securities for financial reporting purposes, each Fund is authorized to invest in certain other derivative instruments. 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 current fiscal period.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the pre-determined threshold amount.
4. Fund Shares
Transactions in Fund shares during the current and prior fiscal periods were as follows:
| Year Ended 2/28/17 | Year Ended 2/29/16 | ||||
| Connecticut | Shares | Amount | Shares | Amount | |
| Shares sold: | |||||
| Class A | 1,068,501 | $ 11,563,567 | 1,081,769 | $ 11,636,539 | |
| Class C | 252,566 | 2,751,759 | 251,832 | 2,716,235 | |
| Class C2 | 18,642 | 199,476 | 18,800 | 201,965 | |
| Class I | 1,870,862 | 20,276,422 | 1,625,081 | 17,548,391 | |
| Shares issued to shareholders due to reinvestment of distributions: | |||||
| Class A | 377,744 | 4,081,118 | 402,837 | 4,335,923 | |
| Class C | 9,866 | 106,231 | 5,316 | 57,169 | |
| Class C2 | 59,889 | 646,482 | 66,081 | 710,587 | |
| Class I | 175,540 | 1,902,630 | 166,503 | 1,798,193 | |
| 3,833,610 | 41,527,685 | 3,618,219 | 39,005,002 | ||
| Shares redeemed: | |||||
| Class A | (2,103,222) | (22,550,853) | (2,409,009) | (25,911,785) | |
| Class C | (139,505) | (1,472,342) | (40,453) | (435,330) | |
| Class C2 | (368,330) | (3,965,329) | (446,303) | (4,798,496) | |
| Class I | (2,275,171) | (24,250,625) | (1,053,631) | (11,388,966) | |
| (4,886,228) | (52,239,149) | (3,949,396) | (42,534,577) | ||
| Net increase (decrease) | (1,052,618) | $(10,711,464) | (331,177) | $ (3,529,575) | |
NUVEEN 87
Notes to Financial Statements (continued)
| Year Ended 2/28/17 | Year Ended 2/29/16 | ||||
| Massachusetts | Shares | Amount | Shares | Amount | |
| Shares sold: | |||||
| Class A | 5,220,061 | $ 52,982,595 | 1,101,121 | $ 11,184,598 | |
| Class C | 414,058 | 4,250,813 | 388,569 | 3,920,376 | |
| Class C2 | 18,425 | 187,675 | 16,448 | 165,610 | |
| Class I | 7,180,901 | 73,319,380 | 2,653,923 | 26,974,035 | |
| Shares issued to shareholders due to reinvestment of distributions: | |||||
| Class A | 257,922 | 2,635,613 | 244,004 | 2,478,943 | |
| Class C | 13,360 | 135,571 | 7,807 | 78,659 | |
| Class C2 | 36,312 | 369,396 | 45,205 | 455,558 | |
| Class I | 437,451 | 4,476,477 | 428,740 | 4,350,055 | |
| 13,578,490 | 138,357,520 | 4,885,817 | 49,607,834 | ||
| Shares redeemed: | |||||
| Class A | (2,103,874) | (21,340,229) | (1,189,868) | (12,089,411) | |
| Class C | (220,411) | (2,207,096) | (63,811) | (641,240) | |
| Class C2 | (264,162) | (2,683,621) | (324,108) | (3,264,215) | |
| Class I | (5,317,682) | (53,846,023) | (2,273,552) | (23,114,511) | |
| (7,906,129) | (80,076,969) | (3,851,339) | (39,109,377) | ||
| Net increase (decrease) | 5,672,361 | $ 58,280,551 | 1,034,478 | $ 10,498,457 | |
| Year Ended 2/28/17 | Year Ended 2/29/16 | ||||
| New Jersey | Shares | Amount | Shares | Amount | |
| Shares sold: | |||||
| Class A | 5,039,153 | $ 57,777,692 | 2,823,279 | $ 32,072,532 | |
| Class C | 862,869 | 9,965,133 | 421,805 | 4,798,160 | |
| Class C2 | 19,646 | 225,398 | 17,826 | 201,971 | |
| Class I | 2,642,498 | 30,420,553 | 1,771,727 | 20,249,195 | |
| Shares issued to shareholders due to reinvestment of distributions: | |||||
| Class A | 416,484 | 4,797,962 | 363,731 | 4,139,807 | |
| Class C | 26,257 | 300,249 | 13,392 | 151,772 | |
| Class C2 | 77,582 | 890,540 | 86,152 | 976,204 | |
| Class I | 274,577 | 3,174,200 | 250,057 | 2,856,357 | |
| 9,359,066 | 107,551,727 | 5,747,969 | 65,445,998 | ||
| Shares redeemed: | |||||
| Class A | (3,975,510) | (44,927,540) | (2,206,637) | (25,090,930) | |
| Class C | (274,295) | (3,083,539) | (156,535) | (1,770,473) | |
| Class C2 | (463,994) | (5,296,652) | (597,998) | (6,785,895) | |
| Class I | (2,147,462) | (24,542,712) | (1,609,772) | (18,423,617) | |
| (6,861,261) | (77,850,443) | (4,570,942) | (52,070,915) | ||
| Net increase (decrease) | 2,497,805 | $ 29,701,284 | 1,177,027 | $ 13,375,083 | |
88 NUVEEN
| Year Ended 2/28/17 | Year Ended 2/29/16 | ||||
| New York | Shares | Amount | Shares | Amount | |
| Shares sold: | |||||
| Class A | 8,176,612 | $ 90,390,847 | 4,088,266 | $ 45,196,330 | |
| Class C | 1,631,271 | 18,361,832 | 1,157,215 | 12,789,173 | |
| Class C2 | 51,677 | 574,867 | 91,050 | 1,007,474 | |
| Class I | 6,135,683 | 68,226,615 | 3,863,757 | 42,867,368 | |
| Shares issued to shareholders due to reinvestment of distributions: | |||||
| Class A | 795,490 | 8,861,417 | 762,116 | 8,432,975 | |
| Class C | 51,216 | 568,229 | 23,594 | 260,939 | |
| Class C2 | 121,994 | 1,359,559 | 138,161 | 1,527,665 | |
| Class I | 1,029,606 | 11,484,545 | 1,029,044 | 11,400,742 | |
| 17,993,549 | 199,827,911 | 11,153,203 | 123,482,666 | ||
| Shares redeemed: | |||||
| Class A | (5,153,666) | (57,037,304) | (3,358,191) | (37,120,470) | |
| Class C | (408,171) | (4,430,829) | (121,635) | (1,349,244) | |
| Class C2 | (666,365) | (7,398,394) | (701,049) | (7,744,241) | |
| Class I | (4,603,042) | (51,055,494) | (3,880,790) | (43,099,401) | |
| (10,831,244) | (119,922,021) | (8,061,665) | (89,313,356) | ||
| Net increase (decrease) | 7,162,305 | $ 79,905,890 | 3,091,538 | $ 34,169,310 | |
5. Investment Transactions
Long-term purchases and sales (including maturities but excluding derivative transactions, where applicable) during the current fiscal period were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |
| Purchases | $60,210,914 | $99,862,533 | $81,069,822 | $264,775,075 |
| Sales and maturities | 68,767,202 | 43,304,053 | 48,806,057 | 184,431,267 |
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 NAVs of the Funds.
As of February 28, 2017, 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 | $251,316,710 | $292,691,239 | $308,217,775 | $749,570,656 |
| Gross unrealized: | ||||
| Appreciation | $ 11,790,987 | $ 14,413,015 | $ 13,630,352 | $ 39,757,574 |
| Depreciation | (2,007,013) | (1,350,210) | (4,145,606) | (6,853,939) |
| Net unrealized appreciation (depreciation) of investments | $ 9,783,974 | $ 13,062,805 | $ 9,484,746 | $ 32,903,635 |
NUVEEN 89
Notes to Financial Statements (continued)
Permanent differences, primarily due to taxable market discount, expiration of capital loss carryforwards and distribution reallocations, resulted in reclassifications among the Funds’ components of net assets as of February 28, 2017, the Funds' tax year end, as follows:
| Connecticut | Massachusetts | New Jersey | New York | |
| Capital paid-in | $ — | $(12,497) | $ — | $ — |
| Undistributed (Over-distribution of) net investment income | (29,346) | (3,746) | (181,068) | (97,115) |
| Accumulated net realized gain (loss) | 29,346 | 16,243 | 181,068 | 97,115 |
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains as of February 28, 2017, the Funds' tax year end, were as follows:
| Connecticut | Massachusetts | New Jersey | New York | |
| Undistributed net tax-exempt income1 | $560,056 | $582,779 | $1,122,480 | $2,478,178 |
| Undistributed net ordinary income2 | 64,201 | — | 227,098 | 25,938 |
| Undistributed net long-term capital gains | — | — | 1,276,827 | — |
| 1 | Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividends declared during the period February 1, 2017 through February 28, 2017, and paid on March 1, 2017. |
| 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, 2017 and February 29, 2016, was designated for purposes of the dividends paid deduction as follows:
| 2017 | Connecticut | Massachusetts | New Jersey | New York |
| Distributions from net tax-exempt income3 | $9,066,341 | $8,906,966 | $10,600,112 | $27,033,304 |
| Distributions from net ordinary income2 | 58,525 | 73,694 | 288,840 | 35,407 |
| Distributions from net long-term capital gains4 | — | — | 470,809 | — |
| 2016 | Connecticut | Massachusetts | New Jersey | New York |
| Distributions from net tax-exempt income | $9,398,708 | $8,983,817 | $9,899,024 | $26,318,883 |
| Distributions from net ordinary income2 | 32,984 | 7,690 | 324,992 | 25,958 |
| Distributions from net long-term capital gains | — | — | 93,372 | — |
| 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, 2017, as Exempt Interest Dividends. |
| 4 | The Funds hereby designate as long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended February 28, 2017. |
As of February 28, 2017, the Funds’ tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration will be utilized first by a Fund.
| Connecticut | Massachusetts | New York | |
| Expiration: | |||
| February 28, 2018 | $ — | $ 98,330 | $ — |
| Not subject to expiration | 4,858,658 | 9,207,233 | 14,202,298 |
| Total | $4,858,658 | $9,305,563 | $14,202,298 |
As of February 28, 2017, the Funds' tax year end, $12,497 of Massachussetts's capital loss carryforward expired.
7. Management Fees and Other Transactions with Affiliates
Management Fees
Each Fund’s management fee compensates the Adviser for the 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, payable monthly, for each Fund, is calculated according to the following schedule:
90 NUVEEN
| Average Daily Net Assets | Connecticut | Massachusetts | New Jersey | New York |
| For the first $125 million | 0.3500% | 0.3500% | 0.3500% | 0.3500% |
| For the next $125 million | 0.3375 | 0.3375 | 0.3375 | 0.3375 |
| For the next $250 million | 0.3250 | 0.3250 | 0.3250 | 0.3250 |
| For the next $500 million | 0.3125 | 0.3125 | 0.3125 | 0.3125 |
| For the next $1 billion | 0.3000 | 0.3000 | 0.3000 | 0.3000 |
| For the next $3 billion | 0.2750 | 0.2750 | 0.2750 | 0.2750 |
| For net assets over $5 billion | 0.2500 | 0.2500 | 0.2500 | 0.2500 |
The annual complex-level fee for each Fund , payable monthly, is calculated according to the following schedule:
| Complex-Level Asset Breakpoint Level* | Effective Rate at Breakpoint Level |
| $55 billion | 0.2000% |
| $56 billion | 0.1996 |
| $57 billion | 0.1989 |
| $60 billion | 0.1961 |
| $63 billion | 0.1931 |
| $66 billion | 0.1900 |
| $71 billion | 0.1851 |
| $76 billion | 0.1806 |
| $80 billion | 0.1773 |
| $91 billion | 0.1691 |
| $125 billion | 0.1599 |
| $200 billion | 0.1505 |
| $250 billion | 0.1469 |
| $300 billion | 0.1445 |
* 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 a determined amount (originally $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, 2017, the complex-level fee rate for each Fund was 0.1617%.
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 0.75% of the average daily net assets of any class of Fund shares. These expense limitations may be terminated or modified only with the approval of the Funds' shareholders.
Other Transactions with Affiliates
Each Fund is permitted to purchase or sell securities from or to certain other funds managed by the Adviser (“inter-fund trade”) under specified conditions outlined in procedures adopted by the Board. These procedures have been designed to ensure that any inter-fund trade of securities by the Fund from or to another fund that is, or could be, considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser (or affiliated investment adviser), common officer and/or common trustee complies with Rule 17a-7 of the 1940 Act. Further, as defined under these procedures, each inter-fund trade is effected at the current market price as provided by an independent pricing service. Unsettled inter-fund trades as of the end of the reporting period are recognized as a component of “Receivable for investment sold” and/or “Payable for investments purchased” on the Statement of Assets and Liabilities, when applicable.
During the current fiscal period, the following Funds engaged in inter-fund trades pursuant to these procedures as follows:
| Inter-Fund Trades | Connecticut | Massachusetts | New Jersey | New York |
| Purchases | $ 3,989,654 | $3,296,925 | $2,236,787 | $15,266,502 |
| Sales | 10,267,674 | 1,067,618 | — | 13,960,201 |
During the current fiscal period, 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) | $136,425 | $133,328 | $317,400 | $819,127 |
| Paid to financial intermediaries (Unaudited) | 122,412 | 118,256 | 283,179 | 720,653 |
NUVEEN 91
Notes to Financial Statements (continued)
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 current fiscal period, 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) | $82,004 | $80,365 | $172,864 | $363,209 |
To compensate for commissions advanced to financial intermediaries, 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 current fiscal period, the Distributor retained such 12b-1 fees as follows:
| Connecticut | Massachusetts | New Jersey | New York | |
| 12b-1 fees retained (Unaudited) | $34,031 | $45,916 | $81,822 | $167,959 |
The remaining 12b-1 fees charged to each Fund 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 current fiscal period, as follows:
| Connecticut | Massachusetts | New Jersey | New York | |
| CDSC retained (Unaudited) | $7,340 | $8,603 | $32,849 | $61,044 |
8. Borrowing Arrangements
Uncommitted Line of Credit
During the current fiscal period, the Funds participated in an unsecured bank line of credit (“Unsecured Credit Line”) under which outstanding balances would bear interest at a variable rate. On December 31, 2016, (the only date utilized during the current fiscal period) Connecticut and New Jersey borrowed $1,061,986 and $378,678, respectively, from the Unsecured Credit Line at an annualized interest rate of 2.02%. None of the other Funds participated in the Unsecured Credit Line during the current fiscal period.
Committed Line of Credit
The Funds, along with certain other funds managed by the Adviser (“Participating Funds”), have established a 364-day, approximately $2.5 billion standby credit facility with a group of lenders, under which the Participating Funds may borrow for various purposes other than leveraging for investment purposes. A large portion of this facility’s capacity (and its associated costs as described below) is currently dedicated for use by a small number of Participating Funds, which does not include any of the Funds covered by this shareholder report. The remaining capacity under the facility (and the corresponding portion of the facility’s annual costs) is separately dedicated to most of the other open-end funds in the Nuveen fund family, including all the Funds covered by this shareholder report, along with a number of Nuveen closed-end funds. The credit facility expires in July 2017 unless extended or renewed.
The credit facility has the following terms: a fee of 0.15% per annum on unused commitment amounts, and interest at a rate equal to the higher of (a) one-month LIBOR (London Inter-Bank Offered Rate) plus 1.25% per annum or (b) the Fed Funds rate plus 1.25% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are recognized as a component of “Other expenses” on the Statement of Operations, and along with commitment fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, none of the Funds utilized this facility.
9. New Accounting Pronouncements
Amendments to Regulation S-X
In October 2016, the Securities and Exchange Commission (SEC) adopted new rules and amended existing rules (together, the “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date of the amendments to Regulation S-X is August 1, 2017. Management is still evaluating the impact of the final rules, if any.
92 NUVEEN
10. Subsequent Events
Fund Shares
The Funds have an effective registration statement on file with the Securities and Exchange Commission (SEC) to issue Class T Shares, which are not yet available for public offering.
NUVEEN 93
Additional
Fund Information (Unaudited)
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
Independent Registered
Public Accounting Firm
KPMG LLP
200 East Randolph Drive
Chicago, IL 60601
Custodian
State Street Bank & Trust Company
One Lincoln Steet
Boston, MA 02111
Legal Counsel
Chapman and Cutler LLP
Chicago, IL 60603
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 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 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.
94 NUVEEN
Glossary of Terms
Used in this Report (Unaudited)
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. The calculation of the Effective Leverage Ratio reflects borrowings effected on a long-term basis for investment purposes, but excludes borrowings that may occur, on a transient basis, in connection with a Fund’s day-to-day operations primarily in connection with the need to pay cash out to redeeming shareholders or to settle portfolio trades.
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. 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.
NUVEEN 95
Glossary of Terms Used in this Report (Unaudited) (continued)
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. Shareholders should note that the performance of the Lipper Other States Classification represents the overall average of returns for funds from ten states with a wide variety of municipal market conditions, making direct comparisons less meaningful. 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 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 fund’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.
96 NUVEEN
Annual Investment Management Agreement
Approval Process (Unaudited)
Approval Process (Unaudited)
The Board of Trustees of each Fund (the “Board,” and each Trustee a “Board Member”), 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 overseeing the performance of the investment adviser and sub-adviser to the respective Fund and determining whether to continue such Fund’s advisory agreement (the “Investment Management Agreement”) between the Fund and Nuveen Fund Advisors, LLC (the “Adviser”) and the sub-advisory agreement (the “Sub-Advisory Agreement” and, together with the Investment Management Agreement, the “Advisory Agreements”) between the Adviser and Nuveen Asset Management, LLC (the “Sub-Adviser”). Following an initial term with respect to each Fund upon its commencement of operations, the Board reviews the Investment Management Agreement and the Sub-Advisory Agreement on behalf of such Fund and votes to determine whether the respective Advisory Agreement should be renewed. Accordingly, at an in-person meeting held on May 24-26, 2016 (the “May Meeting”), the Board, including a majority of the Independent Board Members, considered and approved the existing Advisory Agreements for the Funds.
During the year, the Board and its Committees met regularly to receive materials and discuss a variety of topics impacting the Funds including, among other things, overall market conditions and market performance, Fund investment performance, brokerage execution, valuation of securities, Rule 12b-1 plans and payments, sub-transfer agency and other payments to financial intermediaries, compliance matters, securities lending, risk management and ongoing initiatives. The Board had established several standing Committees, including the Open-end Fund Committee and Closed-end Fund Committee which permit the Board Members to delve further into the topics particularly relevant to the respective product line and enhance the Board’s effectiveness and oversight of the Funds. The Board also seeks to meet with the Sub-Adviser and its investment team at least once over a multiple year rotation through site visits. The information and knowledge the Board gained throughout the year from the Board and Committee meetings, site visits and the related materials were relevant to the Board’s evaluation of the Advisory Agreements, and the Board took such information into account in its review of the Advisory Agreements.
In addition to the materials received throughout the year, the Board received additional materials prepared specifically for its annual review of the Advisory Agreements in response to a request by independent legal counsel on behalf of the Independent Board Members. The materials addressed a variety of topics, including a description of the services provided by the Adviser and the Sub-Adviser (each, a “Fund Adviser”); a review of fund performance with a detailed focus on any performance outliers; an analysis of the investment teams; an analysis of the fees and expense ratios of the Funds, including information comparing such fees and expenses to that of peer groups; an assessment of shareholder services for the Funds and of the performance of certain service providers; a review of initiatives instituted or continued during the past year; and information regarding the profitability of the Fund Advisers, the compensation of portfolio managers, and compliance and risk matters.
As part of its annual review, the Board held a separate meeting on April 12-13, 2016 to review the Funds’ investment performance and consider an analysis by the Adviser of the Sub-Adviser examining, among other things, the team’s assets under management, investment performance, investment approach, and the stability and structure of the Sub-Adviser’s organization and investment team. During the review, the Independent Board Members requested and received additional information from management. Throughout the year and throughout their review of the Advisory Agreements, the Independent Board Members were assisted by independent legal counsel. The Independent Board Members met separately with independent legal counsel without management present and received a memorandum from such counsel outlining their fiduciary duties and legal standards in reviewing the Advisory Agreements. The Independent Board Members’ review of the Advisory Agreements reflected an ongoing process that incorporated the information and considerations that occurred over the years, including the most recent year, as well as the information specifically furnished for the renewal process. In deciding to renew the Advisory Agreements, the Independent Board Members did not identify a particular factor as controlling, but rather the decision reflected the comprehensive consideration of all the information presented. The following summarizes the principal factors, but not all the factors, the Board considered in its review of the Advisory Agreements and its conclusions.
A. Nature, Extent and Quality of Services
In evaluating the renewal of the Advisory Agreements, the Independent Board Members received and considered information regarding the nature, extent and quality of the applicable Fund Adviser’s services provided to the respective Fund and the initiatives undertaken during the past year by the Adviser. The Board recognized the comprehensive set of services the Adviser provided to manage and operate the Nuveen funds, including (a) product management (such as setting dividends, positioning the product in the marketplace, managing the relationships with the distribution platforms, maintaining and enhancing shareholder communications and reporting to the Board); (b) investment services (such as overseeing sub-advisers and other service providers; analyzing investment performance and risks; overseeing risk management and disclosure; developing and interpreting investment policies; assisting in the development of products; helping to prepare financial statements and marketing disclosures; and overseeing trade execution); (c) fund administration (such as helping to prepare fund tax returns and complete other tax compliance matters; and helping to prepare regulatory filings and shareholder reports); (d) fund Board administration (such as preparing Board materials and organizing and providing assistance for Board
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
meetings); (e) compliance (such as helping to devise and maintain the funds’ compliance program and related testing); and (f) legal support (such as helping to prepare registration statements and proxy statements, interpreting regulations and policies and overseeing fund activities).
The Board reviewed the continued investment the Adviser had made in its business to continue to strengthen the breadth and quality of its services to the benefit of the Nuveen funds. The Board noted the Adviser’s additional staffing in key areas that support the funds and the Board, including in investment services, operations, fund governance, compliance, fund administration, product management, retail distribution and information technology. Among the enhancements to its services, the Board recognized the Adviser’s (a) expanded activities and support required as a result of regulatory developments, including in areas of compliance and reporting; (b) increased support for dividend management; (c) continued investment in its technical capabilities as the Adviser continued to build out a centralized fund data platform, enhance mobility and remote access capabilities, rationalize and upgrade software platforms, and automate certain regulatory liquidity determinations; (d) continued efforts to rationalize the product line through mergers, liquidations and re-positioning of the Nuveen funds with the goal of increasing efficiencies, reducing costs, improving performance and addressing shareholder needs; (e) continued efforts to develop new lines of business designed to enhance the Nuveen product line and meet investor demands; and (f) continued commitment to enhance risk oversight, including the formation of the operational risk group to provide operational risk assessment, the access to platforms which provide better risk reporting to support investment teams, and the development of a new team to initially review new products and major product initiatives. The Board also recognized the Adviser’s efforts to renegotiate certain fees of other service providers which culminated in reduced expenses for all funds for custody and accounting services without diminishing the breadth and quality of the services provided. The Board considered the Chief Compliance Officer’s report regarding the Adviser’s compliance program, the Adviser’s continued development, execution and management of its compliance program, and the additions to the compliance team to support the continued growth of the Nuveen fund family and address regulatory developments.
The Board also considered information highlighting the various initiatives that the Adviser had implemented or continued during the year to enhance or support the open-end fund product line. The Board noted the Adviser’s continued initiatives (a) to develop and offer new outcome-oriented funds; (b) to refine the reports to the Board, including enhanced reporting regarding payments to intermediaries, as well as provide presentations to the Board to keep it apprised of various topics that are relevant to the open-end fund product line (such as marketing initiatives, portfolio analytics and sales results); (c) to modify the contingent deferred sales load structure for Class A shares to be more competitive with peers; (d) to launch a new share class to attract institutional clients; and (e) to change portfolio managers on various funds. The Board recognized that initiatives that attract assets to the Nuveen family of funds benefited the funds as fixed costs would be spread over a larger asset base and, as described below, through the complex-wide arrangement which generally would provide that the management fees of the funds (subject to limited exceptions) are reduced as asset levels for the complex increase. The Board also considered the Adviser’s review of the pricing on its entire open-end fund line which resulted in either a reduction in the contractual management fee, a reduction in a temporary expense cap or a combination thereof for numerous funds in the complex helping to better position such funds for future growth.
As noted, the Adviser also oversees the Sub-Adviser who primarily provides the portfolio advisory services to the Funds. The Board recognized the skill and competency of the Adviser in monitoring and analyzing the performance of the Sub-Adviser and managing the sub-advisory relationship. The Board noted that the Adviser recommended the renewal of each Sub-Advisory Agreement.
Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided to the respective Funds under each applicable Advisory Agreement were satisfactory.
B. The Investment Performance of the Funds and Fund Advisers
The Board considered the long-term and short-term performance history of the Nuveen funds. As noted above, the Board reviewed fund performance at its quarterly meetings throughout the year and took into account the information derived from the discussions with representatives of the Adviser about fund performance at these meetings. The Board also considered the Adviser’s analysis of fund performance with particular focus on any performance outliers and the factors contributing to such performance and any steps the investment team had taken to address performance concerns. The Board reviewed, among other things, each Fund’s investment performance both on an absolute basis and in comparison to peer funds (the “Performance Peer Group”) and to 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, 2015, as well as performance information reflecting the first quarter of 2016.
In evaluating performance information, the Board recognized the following factors may impact the performance data as well as the consideration to be given to particular performance data:
| • | The performance data reflected a snapshot in time, in this case as of the end of the most recent calendar year or quarter. A different performance period, however, could generate significantly different results. |
| • | Long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme had the ability to disproportionately affect long-term performance. |
| • | Shareholders evaluate performance based on their own holding period which may differ from the performance period reviewed by the Board, leading to different performance results. |
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Annual Investment Management Agreement Approval Process (Unaudited) (continued)
| • | Open-end funds offered multiple classes and the performance data provided for open-end funds was based on Class A shares. The performance of the other classes of a fund, however, should be substantially similar on a relative basis because all of the classes would be invested in the same portfolio of securities and differences in performance among classes could be principally attributed to the variations in distribution and servicing expenses of each class. |
| • | The Board recognized the difficulty in establishing appropriate peer groups and benchmarks for certain funds. The Board noted that management classified the Performance Peer Groups as low, medium and high in relevancy and took the relevancy of the Performance Peer Group into account when considering the comparative performance data. If the Performance Peer Group differed somewhat from a fund, the Board recognized that the comparative performance data may be of limited value. The Board also recognized that each fund operated pursuant to its own investment objective(s), parameters and restrictions which may differ from that of the Performance Peer Group or benchmark and that these variations lead to differences in performance results. |
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. The Board was aware, however, that shareholders chose to invest or remain invested in a fund knowing that the Adviser and applicable sub-adviser manage the fund, knowing the fund’s investment strategy and seeking exposure to that strategy (even if the strategy was “out of favor” in the marketplace) and knowing the fund’s fee structure.
For Nuveen Connecticut Municipal Bond Fund (the “Connecticut Fund”), the Board considered that, although Fund underperformed its benchmark in the one-, three- and five-year periods, the Fund ranked in its Performance Peer Group in the third quartile in the five-year period and the second quartile for the one- and three-year periods. The Board determined that the Fund’s performance had been satisfactory.
For Nuveen Massachusetts Municipal Bond Fund (the “Massachusetts Fund”), the Board noted that the Fund ranked in its Performance Peer Group in the first quartile in the one-, three- and five-year periods and, although the Fund narrowly underperformed its benchmark in the three- and five-year periods, the Fund outperformed its benchmark in the one-year period. The Board determined that the Fund’s performance had been favorable.
For Nuveen New Jersey Municipal Bond Fund (the “New Jersey Fund”), the Board noted that the Fund ranked in its Performance Peer Group in the first quartile in the one-, three- and five-year periods and, although the Fund narrowly underperformed its benchmark in the one- and three-year periods, the Fund outperformed its benchmark in the five-year period. The Board determined that the Fund’s performance had been favorable.
For Nuveen New York Municipal Bond Fund (the “New York Fund”), the Board noted that the Fund ranked in its Performance Peer Group in the second quartile in the one and five year periods and first quartile in the three-year period. The Fund also outperformed its benchmark in the one-, three- and five-year periods. The Board determined that the Fund’s performance had been favorable.
C. Fees, Expenses and Profitability
1. Fees and Expenses
The Board evaluated the management fees and other fees and expenses of each Fund. The Board reviewed, among other things, the gross and net management fees and net total expenses of each Fund (expressed as a percentage of average net assets) in absolute terms and also in comparison to the fee and expense levels of a comparable universe of funds (the “Peer Universe”) and to a more focused subset in the Peer Universe (the “Peer Group”), each selected by an independent third-party fund data provider. The Independent Board Members also reviewed the methodology regarding the construction of the applicable Peer Universe and Peer Group.
In their evaluation of the management fee schedule, the Independent Board Members considered the fund-level and complex-wide breakpoint schedules, as described in further detail below. The Independent Board Members also took into account any fee waivers and/or expense reimbursements provided by Nuveen. In this regard, as noted above, the Board considered that management recently completed a review of the pricing of its open-end funds which resulted in the reduction of management fees and/or expense caps of various open-end funds. The Independent Board Members considered that the foregoing changes were estimated to result in significant savings to such funds either through a reduction in advisory fees paid or an increase in the fee waivers absorbed by Nuveen.
In reviewing the comparative fee and expense information, the Independent Board Members recognized that 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; differences in services provided; and differences in the states reflected in the Peer Universe or Peer Group can impact the usefulness of the comparative data in helping to assess the appropriateness of a fund’s fees and expenses. In addition, in reviewing a fund’s fees and expenses compared to the fees and expenses of its peers, the Board generally considered the fund’s expenses and fees to be higher if they were over 10 basis points higher, slightly higher if they were 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. The Board reviewed the net expense ratio in recognition that the net expense ratio generally best represented the net experience of the shareholders of a fund as it directly reflected the costs of investing in the respective fund. The Board noted that the majority of the Nuveen funds had a net expense ratio near or below the average of the respective peers.
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For funds with a net expense ratio of 6 basis points or higher than their respective peer average, the Independent Board Members reviewed the reasons for the outlier status and were satisfied with the explanation for the difference or with any steps taken to address the difference.
The Board noted that the Massachusetts Fund, the New Jersey Fund and the New York Fund had net management fees and net expense ratios in line with the respective peer averages, and the Connecticut Fund had a net management fee slightly higher than the peer average but a net expense ratio below the peer average.
Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund’s management fees (as applicable) 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 also reviewed information regarding the fee rates for other types of clients advised or sub-advised by the respective Fund Adviser. For the Adviser and/or the Sub-Adviser, such other clients may include municipal separately managed accounts and passively managed exchange traded funds (ETFs).
The Board recognized that each Fund had an affiliated sub-adviser. With respect to affiliated sub-advisers, including the Sub-Adviser, the Board reviewed, among other things, the range of advisory fee rates and average fee rate assessed for the different types of clients. The Board reviewed information regarding the different types of services provided to the Funds compared to that provided to these other clients which typically did not require the same breadth of day-to-day services required for registered funds. The Board further considered information regarding the differences in, among other things, the distribution systems, investment policies, investor profiles, and account sizes between the Nuveen funds and the other types of clients. In addition, the Independent Board Members also recognized that the management fee rates of the foreign funds advised by the Adviser may also vary due to, among other things, differences in the client base, governing bodies, operational complexities and services covered by the management fee. The Independent Board Members recognized that the foregoing variations resulted in different economics among the product structures and culminated in varying management fees among the types of clients and funds.
The Board also was aware that, since the Funds had a sub-adviser, each Fund’s management fee reflected two components, the fee retained by the Adviser for its services and the fee the Adviser paid to the Sub-Adviser. The Board noted that many of the administrative services provided to support the Funds by the Adviser may not be required to the same extent or at all for the institutional clients or other clients. In general, the Board noted that higher fee levels reflected higher levels of service provided by the Fund Adviser, increased investment management complexity, greater product management requirements and higher levels of business risk or some combination of the foregoing. Given the inherent differences in the various products, particularly the extensive services provided to the Funds, the Independent Board Members concluded 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 on an absolute basis and in comparison to other investment advisers. The Independent Board Members reviewed, among other things, Nuveen’s adjusted operating margins, the gross and net revenue margins (pre-tax and after-tax) for advisory activities for the Nuveen funds, and the revenues, expenses, and net income (pre-tax and after-tax) of Nuveen for each of the last two calendar years. The Independent Board Members reviewed an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2015. The Independent Board Members also noted that the sub-advisory fees for the Funds are paid by the Adviser, however, the Board recognized that the Sub-Adviser is affiliated with Nuveen. In their review, the Independent Board Members recognized that profitability data is rather subjective as various allocation methodologies may be reasonable to employ but yet yield different results. The Board also reviewed the results of certain alternative methodologies. The Board considered the allocation methodology employed to prepare the profitability data as well as a summary of the refinements to the methodology that had been adopted over the years which may limit some of the comparability of Nuveen’s revenue margins over time. Two Independent Board Members also served as point persons for the Board throughout the year to review and discuss the methodology employed to develop the profitability analysis and any proposed changes thereto and to keep the Board apprised of such changes during the year. In reviewing the profitability data, the Independent Board Members noted that Nuveen’s operating margin as well as its margins for its advisory activities to the Nuveen funds for 2015 were consistent with such margins for 2014.
The Board also considered Nuveen’s adjusted operating margins compared to that of other comparable investment advisers (based on asset size and composition) with publicly available data. The Independent Board Members recognized, however, the limitations of the comparative data as the other advisers may have a different business mix, employ different allocation methodologies, have different capital structure and costs, may not be representative of the industry or other factors that limit the comparability of the profitability information. Nevertheless, the Independent Board Members noted that Nuveen’s adjusted operating margins appeared comparable to the adjusted margins of the peers.
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Further, as the Adviser is a wholly-owned subsidiary of Nuveen which in turn is an operating division of TIAA Global Asset Management, the investment management arm of Teachers Insurance and Annuity Association of America (“TIAA-CREF”), the Board reviewed a balance sheet for TIAA-CREF reflecting its assets, liabilities and capital and contingency reserves for the last two calendar years to have a better understanding of the financial stability and strength of the TIAA-CREF complex, together with Nuveen.
Based on the information provided, the Independent Board Members noted that the Adviser appeared to be sufficiently profitable to operate as a viable investment management firm and to honor its obligations as a sponsor of the Nuveen funds.
With respect to the Sub-Adviser, the Independent Board Members also considered the profitability of the Sub-Adviser from its relationship with the Nuveen funds. The Independent Board Members reviewed the Sub-Adviser’s revenues, expenses and revenue margins (pre- and post-tax) for its advisory activities for the calendar year ended December 31, 2015. The Independent Board Members also reviewed profitability analysis reflecting the revenues, expenses and revenue margin (pre- and post-tax) by asset type for the Sub-Adviser for the calendar year ending December 31, 2015.
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 received or were expected to receive that were directly attributable to the management of a Fund. 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, the Independent Board Members determined that the Adviser’s and the Sub-Adviser’s levels of profitability were reasonable in light of the respective services provided.
D. Economies of Scale and Whether Fee Levels Reflect These Economies of Scale
The Independent Board Members recognized that, as the assets of a particular fund or the Nuveen complex in the aggregate increase over time, economies of scale may be realized with respect to the management of the funds, and the Independent Board Members considered the extent to which these economies are shared with the funds and their shareholders. Although the Independent Board Members recognized that economies of scale are difficult to measure with precision, the Board noted that there were several acceptable means to share economies of scale, including through breakpoints in the management fee schedule reducing the fee rates as asset levels grow, fee waiver and expense limitation agreements and the Adviser’s investment in its business which can enhance the services provided to the funds. With respect to breakpoints, the Independent Board Members noted that, subject to certain exceptions, the funds in the Nuveen complex, including the Funds, pay a management fee to the Adviser which is generally comprised of a fund-level component and complex-level component. The fund-level fee component declines as the assets of the particular fund grow and the complex-level fee component declines when eligible assets of all the funds in the Nuveen complex combined grow. The complex-wide fee arrangement was designed to capture economies of scale achieved when total fund complex assets increase, even if the assets of a particular fund are unchanged or decrease. The approach reflected the notion that some of Nuveen’s costs were attributable to services provided to all its funds in the complex, and therefore all funds should benefit if these costs were spread over a larger asset base.
The Independent Board Members reviewed the breakpoint and complex-wide schedules and any savings achieved from expense caps (as applicable), fund-level breakpoints and complex-wide fee reductions for the 2015 calendar year for the funds. In this regard, the Independent Board Members noted that additional economies of scale were shared with shareholders of the Massachusetts Fund and the New York Fund through their permanent expense caps.
In addition, the Independent Board Members recognized the Adviser’s ongoing investment in its business to expand or enhance the services provided to the Nuveen funds. The Independent Board Members noted, among other things, the additions to groups who play a key role in supporting the funds including in fund administration, operations, fund governance, investment services, compliance, product management, retail distribution and technology. The Independent Board Members also recognized the investments in systems necessary to manage the funds including in areas of risk oversight, information technology and compliance.
Based on their review, the Independent Board Members concluded that the current fee structure was acceptable and reflected economies of scale to be shared with shareholders when assets under management increase.
E. Indirect Benefits
The Independent Board Members received and considered information regarding other additional benefits the respective Fund Adviser or its affiliates may receive as a result of their relationship with the Funds, including compensation paid to affiliates and research received in connection with brokerage transactions (i.e., soft dollar arrangements). In this regard, the Independent Board Members recognized that an affiliate of the Adviser served as the Funds’ principal underwriter and may receive compensation therefore from, among other things, sales charges, distribution fees and shareholder services fees (which included fees received pursuant to any 12b-1 plan). The Independent Board Members therefore took into account, among other things, the 12b-1 fees retained by Nuveen during the last calendar year.
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In addition to the above, the Independent Board Members considered that the Funds’ portfolio transactions are allocated by the Sub-Adviser and the Sub-Adviser may benefit from research received through soft-dollar arrangements. The Board noted, however, that with respect to transactions in fixed income securities, such securities generally trade on a principal basis and do not generate soft dollar credits. Although the Board recognized the Sub-Adviser may benefit from a soft dollar arrangement if it does not have to pay for this research out of its own assets, the Board also recognized that any such research may benefit the Funds to the extent it enhances the ability of the Sub-Adviser to manage the Funds.
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, concluded that the terms of each Advisory Agreement were fair and reasonable, that the respective Fund Adviser’s fees were reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed.
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Trustees
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 twelve. 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 Trustee |
| Independent Trustees: | ||||
| William J. Schneider 1944 333 W. Wacker Drive Chicago, IL 60606 | Chairman and Trustee | 1996 | Chairman of Miller-Valentine Partners, a real estate investment company; Board Member of WDPR Public Radio station; formerly, Senior Partner and Chief Operating Officer (retired (2004) of Miller-Valentine Group; formerly, Board member, Business Advisory Council of the Cleveland Federal Reserve Bank and University of Dayton Business School Advisory Council; past Chair and Director, Dayton Development Coalition. | 181 |
| Jack B. Evans 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1999 | President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Chairman, United Fire Group, a publicly held company; Director, The Gazette Company; Life Trustee of Coe College and the Iowa College Foundation; formerly, President Pro-Tem of the Board of Regents for the State of Iowa University System; 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. | 181 |
| William C. Hunter 1948 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2003 | Dean Emeritus, formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; past Director (2005-2015), and past President (2010- 2014) Beta Gamma Sigma, Inc., The International Business 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. | 181 |
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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 Trustee |
| 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 and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible; Board member of Milwaukee Repertory Theatre (since 2016). | 181 |
| Albin F. Moschner(2) 1952 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Founder and Chief Executive Officer, Northcroft Partners, LLC, a management consulting firm (since 2012); previously, held positions at Leap Wireless International, Inc., including Consultant (2011-2012), Chief Operating Officer (2008-2011), and Chief Marketing Officer (2004-2008); formerly, President, Verizon Card Services division of Verizon Communications, Inc. (2000-2003); formerly, President, One Point Services at One Point Communications (1999-2000); formerly, Vice Chairman of the Board, Diba, Incorporated (1996-1997); formerly, various executive positions with Zenith Electronics Corporation (1991-1996). Director, USA Technologies, Inc., a provider of solutions and services to facilitate electronic payment transactions (since 2012); formerly, Director, Wintrust Financial Corporation (1996-2016). | 181 |
| John K. Nelson 1962 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2013 | 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 senior external advisor to the financial services practice of Deloitte Consulting LLP (2012-2014); 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. | 181 |
| Judith M. Stockdale 1947 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 1997 | Board Member, Land Trust Alliance (since 2013) and U.S. Endowment for Forestry and Communities (since 2013); formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation; prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994). | 181 |
| 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). | 181 |
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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 Trustee |
| Terence J. Toth 1959 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2008 | Co-Founding Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010) and Quality Control Corporation (since 2012); member: Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and chair of its investment committee; 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); 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). | 181 |
| Margaret L. Wolff 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Member of the Board of Directors (since 2013) of Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company (each, a part of Travelers Canada, the Canadian operation of The Travelers Companies, Inc.); formerly, Of Counsel, Skadden, Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions Group) (2005-2014); Member of the Board of Trustees of New York-Presbyterian Hospital (since 2005); Member (since 2004) and Chair (since 2015) of the Board of Trustees of The John A. Hartford Foundation (a philanthropy dedicated to improving the care of older adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) of the Board of Trustees of Mt. Holyoke College. | 181 |
| 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 Trustee |
| Interested Trustees: | ||||
| William Adams IV(3) 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2013 | Co-Chief Executive Officer and Co-President (since March 2016), formerly, Senior Executive Vice President, Global Structured Products (2010-2016), prior thereto, Executive Vice President, U.S. Structured Products (1999-2010) of Nuveen Investments, Inc.; Executive Vice President (since February 2017) of Nuveen, LLC; Co-President of Nuveen Fund Advisors, LLC (since 2011); Co-President, Global Products and Solutions (since January 2017), formerly, Co-Chief Executive Officer (2016-2017), formerly, Senior Executive Vice President of Nuveen Securities, LLC; President (since 2011), of Nuveen Commodities Asset Management, LLC; Board Member of the Chicago Symphony Orchestra and of Gilda's Club Chicago. | 181 |
NUVEEN 105
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 Trustee |
| Margo L. Cook(2)(3) 1955 333 W. Wacker Drive Chicago, IL 60606 | Trustee | 2016 | Co-Chief Executive Officer and Co-President (since March 2016), formerly, Senior Executive Vice President of Nuveen Investments, Inc; Executive Vice President (since February 2017) of Nuveen, LLC; Co-President, Global Products and Solutions (since January 2017), formerly, Co-Chief Executive Officer (2015-2016), formerly, Executive Vice President (2013-2015) of Nuveen Securities, LLC; Co-President (since October 2016), formerly Senior Executive Vice President (2015-2016) of Nuveen Fund Advisors, LLC (Executive Vice President 2011-2015); formerly, Managing Director of Nuveen Commodities Asset Management, LLC (2011- 2016); Chartered Financial Analyst. | 181 |
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer |
| Officers of the Funds: | ||||
| Greg A. Bottjer 1971 333 West Wacker Drive Chicago, IL 60606 | Chief Administrative Officer | 2016 | Senior (since 2017) Managing Director (since 2011), formerly, Senior Vice President (2007-2010) of Nuveen; Senior (since 2017) Managing Director (since October 2016) of Nuveen Fund Advisors, LLC; Chartered Financial Analyst. | 98 |
| Lorna C. Ferguson 1945 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 1998 | Managing Director (since 2004) of Nuveen. | 182 |
| 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 (2005-2013) of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Managing Director (since 2016) of Nuveen Securities, LLC; Certified Public Accountant. | 182 |
| Nathaniel T. Jones 1979 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Treasurer | 2016 | Managing Director (since January 2017), formerly, Senior Vice President (2016-2017), formerly, Vice President (2011- 2016) of Nuveen; Chartered Financial Analyst. | 182 |
| Walter M. Kelly 1970 333 W. Wacker Drive Chicago, IL 60606 | Chief Compliance Officer and Vice President | 2003 | Managing Director (since January 2017), formerly, Senior Vice President (2008-2017) of Nuveen Investments Holdings, Inc. | 182 |
| Tina M. Lazar 1961 333 W. Wacker Drive Chicago, IL 60606 | Vice President | 2002 | Managing Director (since January 2017), formerly, Senior Vice President (2014-2017) of Nuveen Securities, LLC. | 182 |
106 NUVEEN
Trustees and Officers (Unaudited) (continued)
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer |
| Kevin J. McCarthy 1966 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Secretary | 2007 | Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017), Secretary (since 2016) and General Counsel (since 2016), formerly, Managing Director and Assistant Secretary of Nuveen Investments, Inc.; Senior Managing Director (since January 2017), formerly, Executive Vice President (2016-2017), formerly, Managing Director (2008-2016), and Assistant Secretary (since 2008) of Nuveen Securities, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017), and Secretary (since 2016), formerly, Managing Director (2008-2016) and Assistant Secretary (2007-2016), and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017) and Secretary (since 2016), formerly, Managing Director, Assistant Secretary (2011-2016), and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Senior Managing Director (since February 2017), formerly, Executive Vice President (2016-2017) and Secretary (since 2016) of Nuveen Investments Advisers, LLC; Vice President (since 2007) and Secretary (since 2016) of NWQ Investment Management Company, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC and Winslow Capital Management, LLC (since 2010); Vice President (since 2010) and Secretary (since 2016), formerly, Assistant Secretary of Nuveen Commodities Asset Management, LLC. | 182 |
| 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). | 182 |
| Christopher M. Rohrbacher 1971 333 West Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2008 | Managing Director (since January 2017) of Nuveen Securities, LLC; Managing Director (Since January 2017), formerly, Senior Vice President (2016-2017) and Assistant Secretary (since October 2016) of Nuveen Fund Advisors, LLC; Vice President and Assistant Secretary (since 2010) of Nuveen Commodities Asset Management, LLC. | 182 |
| Joel T. Slager 1978 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 2013 | Fund Tax Director for Nuveen Funds (since 2013); previously, Vice President of Morgan Stanley Investment Management, Inc., Assistant Treasurer of the Morgan Stanley Funds (from 2010 to 2013). | 182 |
NUVEEN 107
Trustees and Officers (Unaudited) (continued)
| Name, Year of Birth & Address | Position(s) Held with the Funds | Year First Elected or Appointed (4) | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Officer |
| Gifford R. Zimmerman 1956 333 W. Wacker Drive Chicago, IL 60606 | Vice President and Assistant Secretary | 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); Vice President (since February 2017), formerly, Managing Director (2003-2017) and Assistant Secretary (since 2003) of Symphony Asset Management LLC ; Managing Director and Assistant Secretary (since 2002) of Nuveen Investments Advisers, LLC; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Santa Barbara Asset Management, LLC (since 2006) and of Winslow Capital Management, LLC, (since 2010); Chartered Financial Analyst. | 182 |
(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 director was first elected or appointed to any fund in the Nuveen Fund Complex.
(2) On June 22, 2016, Ms. Cook and Mr. Moschner were appointed as Board Members, effective July 1, 2016.
(3) “Interested persons” of the Trust, as defined in the 1940 Act, by reason of their positions with Nuveen and certain of its subsidiaries.
(4) 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.
108 NUVEEN
Notes
NUVEEN 109
Notes
110 NUVEEN
Notes
NUVEEN 111
Nuveen:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen helps secure the long-term goals of individual investors and the advisors who serve them, providing access to investment expertise from leading asset managers and solutions across traditional and alternative asset classes. Built on more than a century of industry leadership, Nuveen’s teams of experts align with clients’ specific financial needs and goals, demonstrating commitment to advisors and investors through market perspectives and wealth management and portfolio advisory services. Nuveen manages $236 billion in assets as of December 31, 2016.
Find out how we can help you.
To learn more about how the products and services of Nuveen 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, 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
Securities offered through Nuveen Securities, LLC, member FINRA and SIPC | 333 West Wacker Drive Chicago, IL 60606 | www.nuveen.com
MAN-MS3-0217D138532
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 or Trustees (“Board”) 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 experts are Carole E. Stone and Jack B. Evans, who are “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.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser (“SCI”). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the “CFO”) and actively supervised the CFO’s preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI’s financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show the amount of fees that KPMG LLP (engaged on February 22, 2017), the Funds’ current auditor, and PricewaterhouseCoopers LLP, the Funds’ former 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 & KPMG 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).
Fiscal Year Ended February 28, 2017 5 | 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 | 25,500 | 0 | 0 | 0 | ||||||||||||
Nuveen California Municipal Bond Fund | 25,500 | 0 | 0 | 0 | ||||||||||||
Nuveen California High Yield Municipal Bond Fund | 25,500 | 0 | 0 | 0 | ||||||||||||
Nuveen California Intermediate Municipal Bond Fund 6 | 25,500 | 0 | 0 | 0 | ||||||||||||
Nuveen New Jersey Municipal Bond Fund | 25,500 | 0 | 0 | 0 | ||||||||||||
Nuveen New York Municipal Bond Fund | 25,500 | 0 | 0 | 0 | ||||||||||||
Nuveen Massachusetts Municipal Bond Fund | 25,500 | 0 | 0 | 0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 178,500 | $ | 0 | $ | 0 | $ | 0 | ||||||||
| 1 | “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. |
| 2 | “Audit-Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements 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. |
| 5 | Funds changed audit firm from PricewaterHouseCoopers LLP to KPMG LLP starting 2017. |
| 6 | Fund commenced operations on 10/19/2016. |
| 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 California Intermediate Municipal Bond Fund 1 | 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 | % | ||||||||
| 1 | Fund commenced operations on 10/19/2016. |
February 29, 2016 | 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 | 26,995 | 0 | 29 | 0 | ||||||||||||
Nuveen California Municipal Bond Fund | 29,189 | 0 | 68 | 0 | ||||||||||||
Nuveen California High Yield Municipal Bond Fund | 28,267 | 0 | 39 | 1,289 | ||||||||||||
Nuveen New Jersey Municipal Bond Fund | 27,005 | 0 | 29 | 47 | ||||||||||||
Nuveen New York Municipal Bond Fund | 28,633 | 0 | 69 | 265 | ||||||||||||
Nuveen Massachusetts Municipal Bond Fund | 26,869 | 0 | 25 | 28 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 166,958 | $ | 0 | $ | 259 | $ | 1,629 | ||||||||
| 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, 2017 | 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 29, 2016 | 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, 2017 | 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 | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen California High Yield Municipal Bond Fund | 0 | 0 | 0 | 0 | ||||||||||||
Nuveen California Intermediate Municipal Bond Fund 1 | 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 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
“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.
| 1 | Fund commenced operations on 10/19/2016. |
Fiscal Year Ended February 29, 2016 | 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 | 29 | 0 | 0 | 29 | ||||||||||||
Nuveen California Municipal Bond Fund | 68 | 0 | 0 | 68 | ||||||||||||
Nuveen California High Yield Municipal Bond Fund | 1,328 | 0 | 0 | 1,328 | ||||||||||||
Nuveen New Jersey Municipal Bond Fund | 76 | 0 | 0 | 76 | ||||||||||||
Nuveen New York Municipal Bond Fund | 334 | 0 | 0 | 334 | ||||||||||||
Nuveen Massachusetts Municipal Bond Fund | 53 | 0 | 0 | 53 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,888 | $ | 0 | $ | 0 | $ | 1,888 | ||||||||
“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/ Kathleen L. Prudhomme | |
| Kathleen L. Prudhomme | ||
| Vice President and Secretary | ||
Date: May 5, 2017
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/ Greg A. Bottjer | |
| Greg A. Bottjer | ||
| Chief Administrative Officer | ||
| (principal executive officer) | ||
Date: May 5, 2017
| By (Signature and Title) | /s/ Stephen D. Foy | |
| Stephen D. Foy | ||
| Vice President and Controller | ||
| (principal financial officer) | ||
Date: May 5, 2017